[Congressional Record (Bound Edition), Volume 147 (2001), Part 13]
[Senate]
[Pages 18490-18577]
[From the U.S. Government Publishing Office, www.gpo.gov]



        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002

  On October 2, 2001, the Senate passed S. 1438, as follows:

                                S. 1438

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

     SECTION 1. SHORT TITLE.

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

[[Page 18491]]



     SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF 
                   CONTENTS.

       (a) Divisions.--This Act is organized into three divisions 
     as follows:
       (1) Division A--Department of Defense Authorizations.
       (2) Division B--Military Construction Authorizations.
       (3) Division C--Department of Energy National Security 
     Authorizations and Other Authorizations.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
Sec. 4. Applicability of report of Committee on Armed Services of the 
              Senate.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

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

                       Subtitle B--Army Programs

                               (Reserved)

                       Subtitle C--Navy Programs

Sec. 121. Virginia class submarine program.
Sec. 122. Multiyear procurement author-
              ity for F/A-18E/F aircraft engines.
Sec. 123. V-22 Osprey aircraft program.
Sec. 124. Additional matter relating to V-22 Osprey aircraft.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement author-
              ity for C-17 aircraft.

                       Subtitle E--Other Matters

Sec. 141. Extension of pilot program on sales of manufactured articles 
              and services of certain Army industrial facilities 
              without regard to availability from domestic sources.
Sec. 142. Procurement of additional M291 skin decontamination kits.

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

              Subtitle A--Authorization of Appropriations

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

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

                       Subtitle C--Other Matters

Sec. 231. Technology Transition Initiative.
Sec. 232. Communication of safety concerns between operational testing 
              and evaluation officials and program managers.
Sec. 233. Supplemental Authorization of Appropriations for Fiscal Year 
              2001 for Research, Development, Test, and Evaluation 
              Defense-wide.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 305. Amount for impact aid for children with severe disabilities.
Sec. 306. Improvements in instrumentation and targets at Army live fire 
              training ranges.
Sec. 307. Environmental Restoration, Formerly Used Defense Sites.
Sec. 308. Authorization of additional funds.
Sec. 309. Funds for renovation of Department of Veterans Affairs 
              facilities adjacent to Naval Training Center, Great 
              Lakes, Illinois.

                  Subtitle B--Environmental Provisions

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

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

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

                       Subtitle D--Other Matters

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

[[Page 18492]]

             Subtitle B--Reserve Component Personnel Policy

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

                   Subtitle C--Education and Training

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

           Subtitle D--Decorations, Awards, and Commendations

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

                    Subtitle E--Funeral Honors Duty

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

             Subtitle F--Uniformed Services Overseas Voting

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

                       Subtitle G--Other Matters

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Eligibility for temporary housing allowance while in travel 
              or leave status between permanent duty stations.
Sec. 632. Eligibility for payment of subsistence expenses associated 
              with occupancy of temporary lodging incident to reporting 
              to first permanent duty station.
Sec. 633. Eligibility for dislocation allowance.
Sec. 634. Allowance for dislocation for the convenience of the 
              Government at home station.
Sec. 635. Travel and transportation allowances for family members to 
              attend the burial of a deceased member of the uniformed 
              services.
Sec. 636. Family separation allowance for members electing 
              unaccompanied tour by reason of health limitations of 
              dependents.

[[Page 18493]]

Sec. 637. Funded student travel for foreign study under an education 
              program approved by a United States school.
Sec. 638. Transportation or storage of privately owned vehicles on 
              change of permanent station.

    Subtitle D--Matters Relating to Retirement and Survivor Benefits

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

                       Subtitle E--Other Matters

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

             Subtitle F--National Emergency Family Support

Sec. 681. Child care and youth assistance.
Sec. 682. Family education and support services.

                         TITLE VII--HEALTH CARE

               Subtitle A--TRICARE Benefits Modernization

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

                       Subtitle B--Other Matters

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

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

         Subtitle A--Procurement Management and Administration

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

         Subtitle B--Defense Acquisition and Support Workforce

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

                  Subtitle C--Use of Preferred Sources

Sec. 821. Applicability of competition requirements to purchases from a 
              required source.
Sec. 822. Consolidation of contract requirements.
Sec. 823. Codification and continuation of Mentor-Protege Program as 
              permanent program.
Sec. 824. Hubzone small business concerns.

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

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

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                Subtitle A--Organization and Management

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

      Subtitle B--Organization and Management of Space Activities

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

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

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

                      Subtitle B--Strategic Forces

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

                   Subtitle C--Reporting Requirements

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

[[Page 18494]]

Sec. 1027. Comptroller General study and report on interconnectivity of 
              National Guard Distributive Training Technology Project 
              networks and related public and private networks.

                Subtitle D--Armed Forces Retirement Home

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

                       Subtitle E--Other Matters

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

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

                   Subtitle A--Intelligence Personnel

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

               Subtitle B--Matters Relating to Retirement

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

                       Subtitle C--Other Matters

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

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

                       Subtitle B--Other Matters

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

         TITLE XIII--CONTINGENT AUTHORIZATION OF APPROPRIATIONS

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                            TITLE XXI--ARMY

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

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Cancellation of authority to carry out certain fiscal year 
              2001 projects.
Sec. 2405. Cancellation of authority to carry out additional fiscal 
              year 2001 project.

[[Page 18495]]

Sec. 2406. Modification of authority to carry out certain fiscal year 
              2000 projects.
Sec. 2407. Modification of authority to carry out certain fiscal year 
              1999 project.
Sec. 2408. Modification of authority to carry out certain fiscal year 
              1995 project.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in thresholds for certain unspecified minor 
              military construction projects.
Sec. 2802. Unforeseen environmental hazard remediation as basis for 
              authorized cost variations for military construction and 
              family housing construction projects.
Sec. 2803. Repeal of requirement for annual reports to Congress on 
              military construction and military family housing 
              activities.
Sec. 2804. Authority available for lease of property and facilities 
              under alternative authority for acquisition and 
              improvement of military housing.
Sec. 2805. Funds for housing allowances of members assigned to military 
              family housing under alternative authority for 
              acquisition and improvement of military housing.
Sec. 2806. Amendment of Federal Acquisition Regulation to treat 
              financing costs as allowable expenses under contracts for 
              utility services from utility systems conveyed under 
              privatization initiative.

        Subtitle B--Real Property and Facilities Administration

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

                      Subtitle C--Land Conveyances

Sec. 2821. Land conveyance, Engineer Proving Ground, Fort Belvoir, 
              Virginia.
Sec. 2822. Modification of authority for conveyance of Naval Computer 
              and Telecommunications Station, Cutler, Maine.
Sec. 2823. Land transfer and conveyance, Naval Security Group Activity, 
              Winter Harbor, Maine.
Sec. 2824. Conveyance of segment of Loring Petroleum Pipeline, Maine, 
              and related easements.
Sec. 2825. Land conveyance, petroleum terminal serving former Loring 
              Air Force Base and Bangor Air National Guard Base, Maine.
Sec. 2826. Land conveyance, Naval Weapons Industrial Reserve Plant, 
              Toledo, Ohio.
Sec. 2827. Modification of land conveyance, Mukilteo Tank Farm, 
              Everett, Washington.
Sec. 2828. Land conveyances, Charleston Air Force Base, South Carolina.
Sec. 2829. Land conveyance, Fort Des Moines, Iowa.
Sec. 2830. Land conveyances, certain former Minuteman III ICBM 
              facilities in North Dakota.
Sec. 2831. Land acquisition, Perquimans County, North Carolina.
Sec. 2832. Land conveyance, Army Reserve Center, Kewaunee, Wisconsin.
Sec. 2833. Treatment of amounts received.

                       Subtitle D--Other Matters

Sec. 2841. Development of United States Army Heritage and Education 
              Center at Carlisle Barracks, Pennsylvania.
Sec. 2842. Repeal of limitation on cost of renovation of Pentagon 
              Reservation.
Sec. 2843. Naming of Patricia C. Lamar Army National Guard Readiness 
              Center, Oxford, Mississippi.
Sec. 2844. Construction of parking garage at Fort DeRussy, Hawaii.
Sec. 2845. Acceptance of contributions to repair or establishment 
              memorial at Pentagon Reservation.

            TITLE XXIX--DEFENSE BASE CLOSURE AND REALIGNMENT

           Subtitle A--Modifications of 1990 Base Closure Law

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

           Subtitle B--Modification of 1988 Base Closure Law

Sec. 2911. Payment for certain services provided by redevelopment 
              authorities for property leased back by the United 
              States.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

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

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Limitation on availability of funds for weapons activities 
              for facilities and infrastructure.
Sec. 3132. Limitation on availability of funds for other defense 
              activities for national security programs administrative 
              support.
Sec. 3133. Nuclear Cities Initiative.
Sec. 3134. Construction of Department of Energy operations office 
              complex.

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

Sec. 3141. Establishment of position of Deputy Administrator for 
              Nuclear Security.
Sec. 3142. Responsibility for national security laboratories and 
              weapons production facilities of Deputy Administrator of 
              National Nuclear Security Administration for Defense 
              Programs.
Sec. 3143. Clarification of status within the Department of Energy of 
              administration and contractor personnel of the National 
              Nuclear Security Administration.
Sec. 3144. Modification of authority of Administrator for Nuclear 
              Security to establish scientific, engineering, and 
              technical positions.

                       Subtitle E--Other Matters

Sec. 3151. Improvements to Energy Employees Occupational Illness 
              Compensation Program.
Sec. 3152. Department of Energy counterintelligence polygraph program.
Sec. 3153. One-year extension of authority of Department of Energy to 
              pay voluntary separation incentive payments.
Sec. 3154. Additional objective for Department of Energy defense 
              nuclear facility work force restructuring plan.
Sec. 3155. Modification of date of report of Panel to Assess the 
              Reliability, Safety, and Security of the United States 
              Nuclear Stockpile.
Sec. 3156. Reports on achievement of milestones for National Ignition 
              Facility.
Sec. 3157. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3158. Improvements to Corral Hollow Road, Livermore, California.
Sec. 3159. Annual assessment and report on vulnerability of Department 
              of Energy facilities to terrorist attack.

            Subtitle F--Rocky Flats National Wildlife Refuge

Sec. 3171. Short title.

[[Page 18496]]

Sec. 3172. Findings and purposes.
Sec. 3173. Definitions.
Sec. 3174. Future ownership and management.
Sec. 3175. Transfer of management responsibilities and jurisdiction 
              over Rocky Flats.
Sec. 3176. Continuation of environmental cleanup and closure.
Sec. 3177. Rocky Flats National Wildlife Refuge.
Sec. 3178. Comprehensive conservation plan.
Sec. 3179. Property rights.
Sec. 3180. Rocky Flats Museum.
Sec. 3181. Report on funding.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

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

     SEC. 102. NAVY AND MARINE CORPS.

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

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 for procurement for the Air Force as follows:
       (1) For aircraft, $10,892,957,000.
       (2) For ammunition, $885,344,000.
       (3) For missiles, $3,286,136,000.
       (4) For other procurement, $8,081,721,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

     SEC. 105. DEFENSE INSPECTOR GENERAL.

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

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

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

     SEC. 107. DEFENSE HEALTH PROGRAMS.

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

                       Subtitle B--Army Programs

                               (Reserved)

                       Subtitle C--Navy Programs

     SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.

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

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

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

     SEC. 123. V-22 OSPREY AIRCRAFT PROGRAM.

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

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

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

                     Subtitle D--Air Force Programs

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

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

                       Subtitle E--Other Matters

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

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

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

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

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

              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $6,899,170,000.

[[Page 18497]]

       (2) For the Navy, $11,134,806,000.
       (3) For the Air Force, $14,459,457,000.
       (4) For Defense-wide activities, $14,099,702,000, of which 
     $221,355,000 is authorized for the Director of Operational 
     Test and Evaluation.
       (5) For the Defense Health Program, $65,304,000.

     SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

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

     SEC. 203. AUTHORIZATION OF ADDITIONAL FUNDS.

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

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

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. F-22 AIRCRAFT PROGRAM.

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

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

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

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

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

     SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.

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

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

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

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

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

                       Subtitle C--Other Matters

     SEC. 231. TECHNOLOGY TRANSITION INITIATIVE.

       (a) Establishment and Conduct.--Chapter 139 of title 10, 
     United States Code, is amended by inserting after section 
     2354 the following new section 2355:

     ``Sec. 2355. Technology Transition Initiative

       ``(a) Requirement for Program.--The Secretary of Defense 
     shall carry out a Technology Transition Initiative to 
     facilitate the rapid transition of new technologies from 
     science and technology programs of the Department of Defense 
     into acquisition programs for the production of the 
     technologies.
       ``(b) Objectives.--The objectives of the Initiative are as 
     follows:
       ``(1) To successfully demonstrate new technologies in 
     relevant environments.
       ``(2) To ensure that new technologies are sufficiently 
     mature for production.
       ``(c) Management.--(1) The Secretary of Defense shall 
     designate a senior official in the Office of the Secretary of 
     Defense to manage the Initiative.
       ``(2) In administering the Initiative, the Initiative 
     Manager shall report directly to the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics.
       ``(3) The Initiative Manager shall--
       ``(A) in consultation with the Commander of the Joint 
     Forces Command, identify promising technologies that have 
     been demonstrated in science and technology programs of the 
     Department of Defense;
       ``(B) identify potential sponsors in the Department of 
     Defense to undertake the transition of such technologies into 
     production;
       ``(C) work with the science and technology community and 
     the acquisition community to develop memoranda of agreement, 
     joint funding agreements, and other cooperative arrangements 
     to provide for the transition of the technologies into 
     production; and
       ``(D) provide funding support for selected projects as 
     provided under subsection (d).
       ``(d) Jointly Funded Projects.--(1) The senior procurement 
     executive of each military department shall select technology 
     projects of the military department to recommend for funding 
     support under the Initiative and shall submit a list of the 
     recommended projects, ranked in order of priority, to the 
     Initiative Manager. The projects shall be selected, in a 
     competitive process, on the basis of the highest potential 
     benefits in areas of interest identified by the Secretary of 
     that military department.
       ``(2) The Initiative Manager, in consultation with the 
     Commander of the Joint Forces Command, shall select projects 
     for funding support from among the projects on the lists 
     submitted under paragraph (1). The Initiative Manager shall 
     provide funds, out of the Technology Transition Fund, for 
     each

[[Page 18498]]

     selected project. The total amount provided for a project 
     shall be an amount that equals or exceeds 50 percent of the 
     total cost of the project.
       ``(3) The senior procurement executive of the military 
     department shall manage each project selected under paragraph 
     (2) that is undertaken by the military department. Memoranda 
     of agreement, joint funding agreements, and other cooperative 
     arrangements between the science and technology community and 
     the acquisition community shall be used in carrying out the 
     project if the senior procurement executive determines that 
     it is appropriate to do so to achieve the objectives of the 
     project.
       ``(e) Technology Transition Fund.--(1) There is established 
     in the Treasury of the United States a fund to be known as 
     the `Technology Transition Fund'.
       ``(2) Subject to the authority, direction, and control of 
     the Secretary of Defense, the Initiative Manager shall 
     administer the Fund consistent with the provisions of this 
     section.
       ``(3) Amounts appropriated for the Initiative shall be 
     deposited in the Fund.
       ``(4) Amounts in the Fund shall be available, to the extent 
     provided in appropriations Acts, for carrying out the 
     Initiative.
       ``(5) The President shall specify in the budget submitted 
     for a fiscal year pursuant to section 1105(a) of title 31 the 
     amount provided in that budget for the Initiative.
       ``(f) Definitions.--In this section:
       ``(1) The term `Initiative' means the Technology Transition 
     Initiative carried out under this section.
       ``(2) The term `Initiative Manager' means the official 
     designated to manage the Initiative under subsection (c).
       ``(3) The term `Fund' means the Technology Transition Fund 
     established under subsection (e).
       ``(4) The term `senior procurement executive', with respect 
     to a military department, means the official designated as 
     the senior procurement executive for that military department 
     under section 16(3) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 414(3)).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2354 the following new item:

``2355. Technology Transition Initiative.''.

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

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

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

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

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     expenses, not otherwise provided for, for operation and 
     maintenance, in amounts as follows:
       (1) For the Army, $21,134,982,000.
       (2) For the Navy, $26,927,931,000.
       (3) For the Marine Corps, $2,911,339,000.
       (4) For the Air Force, $25,993,582,000.
       (5) For Defense-wide activities, $12,482,532,000.
       (6) For the Army Reserve, $1,803,146,000.
       (7) For the Naval Reserve, $1,000,369,000.
       (8) For the Marine Corps Reserve, $142,956,000.
       (9) For the Air Force Reserve, $2,029,866,000.
       (10) For the Army National Guard, $3,697,659,000.
       (11) For the Air National Guard, $4,037,161,000.
       (12) For the Defense Inspector General, $149,221,000.
       (13) For the United States Court of Appeals for the Armed 
     Forces, $9,096,000.
       (14) For Environmental Restoration, Army, $389,800,000.
       (15) For Environmental Restoration, Navy, $257,517,000.
       (16) For Environmental Restoration, Air Force, 
     $385,437,000.
       (17) For Environmental Restoration, Defense-wide, 
     $23,492,000.
       (18) For Environmental Restoration, Formerly Used Defense 
     Sites, $190,255,000.
       (19) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $49,700,000.
       (20) For Drug Interdiction and Counterdrug Activities, 
     Defense-wide, $860,381,000.
       (21) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $60,000,000.
       (22) For the Defense Health Program, $17,546,750,000.
       (23) For Cooperative Threat Reduction programs, 
     $403,000,000.
       (24) For Overseas Contingency Operations Transfer Fund, 
     $2,844,226,000.
       (25) For Support for International Sporting Competitions, 
     Defense, $15,800,000.

     SEC. 302. WORKING CAPITAL FUNDS.

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

     SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

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

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

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

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

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

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

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

     SEC. 308. AUTHORIZATION OF ADDITIONAL FUNDS.

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

[[Page 18499]]



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

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

                  Subtitle B--Environmental Provisions

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

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

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

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

     SEC. 313. DEPARTMENT OF DEFENSE ENERGY EFFICIENCY PROGRAM.

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

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

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

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

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

[[Page 18500]]

     Navy to the Environmental Protection Agency for the response 
     costs described in that subsection.
       (c) Source of Funds.--Payment under subsection (a) shall be 
     made using amounts authorized to be appropriated by section 
     301(15) to the Environmental Restoration Account, Navy, 
     established by section 2703(a)(3) of title 10, United States 
     Code.

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

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

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

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

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

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

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

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

       (a) Requirement.--Chapter 147 of title 10, United States 
     Code, is amended by inserting after section 2482a the 
     following new section:

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

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

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

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

       (a) Limitations and Authority.--Section 2487 of title 10, 
     United States Code, is amended to read as follows:

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

       ``(a) Authority To Limit Release.--(1) The Secretary of 
     Defense may limit the release to the public of any 
     information described in paragraph (2) if the Secretary 
     determines that it is in the best interest of the Department 
     of Defense to limit the release of such information. If the 
     Secretary determines to limit the release of any such 
     information, the Secretary may provide for limited release of 
     such information in accordance with subsection (b).
       ``(2) Paragraph (1) applies to the following:
       ``(A) Information contained in the computerized business 
     systems of commissary stores or the Defense Commissary Agency 
     that is collected through or in connection with the use of 
     electronic scanners in commissary stores, including the 
     following information:
       ``(i) Data relating to sales of goods or services.
       ``(ii) Demographic information on customers.
       ``(iii) Any other information pertaining to commissary 
     transactions and operations.
       ``(B) Business programs, systems, and applications 
     (including software) relating to commissary operations that 
     were developed with funding derived from commissary 
     surcharges.
       ``(b) Release Authority.--(1) The Secretary of Defense may, 
     using competitive procedures, enter into a contract to sell 
     information described in subsection (a)(2).
       ``(2) The Secretary of Defense may release, without charge, 
     information on an item sold in commissary stores to--
       ``(A) the manufacturer or producer of that item; or
       ``(B) the manufacturer or producer's agent when necessary 
     to accommodate electronic ordering of the item by commissary 
     stores.
       ``(3) The Secretary of Defense may, by contract entered 
     into with a business, grant to the business a license to use 
     business programs referred to in subsection (a)(2)(B), 
     including software used in or comprising any such program. 
     The fee charged for the license shall be based on the costs 
     of similar

[[Page 18501]]

     programs developed and marketed by businesses in the private 
     sector, determined by means of surveys.
       ``(4) Each contract entered into under this subsection 
     shall specify the amount to be paid for information released 
     or a license granted under the contract, as the case may be.
       ``(c) Form of Release.--Information described in subsection 
     (a)(2) may not be released, under subsection (b) or 
     otherwise, in a form that identifies any customer or that 
     provides information making it possible to identify any 
     customer.
       ``(d) Receipts.--Amounts received by the Secretary under 
     this section shall be credited to funds derived from 
     commissary surcharges, shall be merged with those funds, and 
     shall be available for the same purposes as the funds with 
     which merged.
       ``(e) Definitions.--In this section, the term `commissary 
     surcharge' means any adjustment or surcharge applied under 
     section 2486(c) of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 147 of such title is amended to read as 
     follows:

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

                       Subtitle D--Other Matters

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

       (a) Authority.--(1) Chapter 18 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 383. Additional support for counterdrug activities of 
       other agencies

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

``383. Additional support for counterdrug activities of other 
              agencies.''.

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

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

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

[[Page 18502]]



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

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

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

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

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

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

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

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

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

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

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

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

     SEC. 339. CONSEQUENCE MANAGEMENT TRAINING.

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

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

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

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

                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

       (a) In General.--The Armed Forces are authorized strengths 
     for Selected Reserve personnel of the reserve components as 
     of September 30, 2002, as follows:
       (1) The Army National Guard of the United States, 350,000.
       (2) The Army Reserve, 205,000.
       (3) The Naval Reserve, 87,000.
       (4) The Marine Corps Reserve, 39,558.
       (5) The Air National Guard of the United States, 108,400.
       (6) The Air Force Reserve, 74,700.
       (7) The Coast Guard Reserve, 8,000.
       (b) Adjustments.--The end strengths prescribed by 
     subsection (a) for the Selected Reserve of any reserve 
     component shall be proportionately reduced by--
       (1) the total authorized strength of units organized to 
     serve as units of the Selected Reserve of such component 
     which are on active duty (other than for training) at the end 
     of the fiscal year; and
       (2) the total number of individual members not in units 
     organized to serve as units of

[[Page 18503]]

     the Selected Reserve of such component who are on active duty 
     (other than for training or for unsatisfactory participation 
     in training) without their consent at the end of the fiscal 
     year.
     Whenever such units or such individual members are released 
     from active duty during any fiscal year, the end strength 
     prescribed for such fiscal year for the Selected Reserve of 
     such reserve component shall be proportionately increased by 
     the total authorized strengths of such units and by the total 
     number of such individual members.

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

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

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

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

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

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

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

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


----------------------------------------------------------------------------------------------------------------
                                                         Number of officers of that reserve component who may be
                                                                        serving in the grade of:
   ``Total number of members of a reserve component    ---------------------------------------------------------
     serving on full-time reserve component duty:                              Lieutenant
                                                              Major             Colonel             Colonel
----------------------------------------------------------------------------------------------------------------
Army Reserve:
10,000................................................              1,390                740             230
11,000................................................              1,529                803             242
12,000................................................              1,668                864             252
13,000................................................              1,804                924             262
14,000................................................              1,940                984             272
15,000................................................              2,075              1,044             282
16,000................................................              2,210              1,104             291
17,000................................................              2,345              1,164             300
18,000................................................              2,479              1,223             309
19,000................................................              2,613              1,282             318
20,000................................................              2,747              1,341             327
21,000................................................              2,877              1,400             336
 
Army National Guard:
20,000................................................              1,500                850             325
22,000................................................              1,650                930             350
24,000................................................              1,790              1,010             370
26,000................................................              1,930              1,085             385
28,000................................................              2,070              1,160             400
30,000................................................              2,200              1,235             405
32,000................................................              2,330              1,305             408
34,000................................................              2,450              1,375             411
36,000................................................              2,570              1,445             411
38,000................................................              2,670              1,515             411
40,000................................................              2,770              1,580             411
42,000................................................              2,837              1,644             411
 
Marine Corps Reserve:
1,100.................................................                106                 56              20
1,200.................................................                110                 60              21
1,300.................................................                114                 63              22
1,400.................................................                118                 66              23
1,500.................................................                121                 69              24
1,600.................................................                124                 72              25
1,700.................................................                127                 75              26
1,800.................................................                130                 78              27
1,900.................................................                133                 81              28
2,000.................................................                136                 84              29
2,100.................................................                139                 87              30
2,200.................................................                141                 90              31
2,300.................................................                143                 92              32
2,400.................................................                145                 94              33
2,500.................................................                147                 96              34
2,600.................................................                149                 98              35
 
Air Force Reserve:
500...................................................                 83                 85              50
1,000.................................................                155                165              95
1,500.................................................                220                240             135
2,000.................................................                285                310             170
2,500.................................................                350                369             203
3,000.................................................                413                420             220
3,500.................................................                473                464             230
4,000.................................................                530                500             240
4,500.................................................                585                529             247
5,000.................................................                638                550             254
5,500.................................................                688                565             261

[[Page 18504]]

 
6,000.................................................                735                575             268
7,000.................................................                770                595             280
8,000.................................................                805                615             290
10,000................................................                835                635             300
 
Air National Guard:
5,000.................................................                333                335             251
6,000.................................................                403                394             260
7,000.................................................                472                453             269
8,000.................................................                539                512             278
9,000.................................................                606                571             287
10,000................................................                673                630             296
11,000................................................                740                688             305
12,000................................................                807                742             314
13,000................................................                873                795             323
14,000................................................                939                848             332
15,000................................................              1,005                898             341
16,000................................................              1,067                948             350
17,000................................................              1,126                998             359
18,000................................................              1,185              1,048             368
19,000................................................              1,235              1,098             377
20,000................................................              1,283              1,148              380.
----------------------------------------------------------------------------------------------------------------

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


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

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


------------------------------------------------------------------------
                                     Number of members of that reserve
  ``Total number of members of a    component who may be serving in the
reserve component serving on full-               grade of:
   time reserve component duty:   --------------------------------------
                                          E-8                 E-9
------------------------------------------------------------------------
Army Reserve:
10,000...........................              1,052             154
11,000...........................              1,126             168
12,000...........................              1,195             180
13,000...........................              1,261             191
14,000...........................              1,327             202
15,000...........................              1,391             213
16,000...........................              1,455             224
17,000...........................              1,519             235
18,000...........................              1,583             246
19,000...........................              1,647             257
20,000...........................              1,711             268
21,000...........................              1,775             278
 
Army National Guard:
20,000...........................              1,650             550
22,000...........................              1,775             615
24,000...........................              1,900             645
26,000...........................              1,945             675

[[Page 18505]]

 
28,000...........................              1,945             705
30,000...........................              1,945             725
32,000...........................              1,945             730
34,000...........................              1,945             735
36,000...........................              1,945             738
38,000...........................              1,945             741
40,000...........................              1,945             743
42,000...........................              1,945             743
 
Naval Reserve:
10,000...........................                340             143
11,000...........................                364             156
12,000...........................                386             169
13,000...........................                407             182
14,000...........................                423             195
15,000...........................                435             208
16,000...........................                447             221
17,000...........................                459             234
18,000...........................                471             247
19,000...........................                483             260
20,000...........................                495             273
21,000...........................                507             286
22,000...........................                519             299
23,000...........................                531             312
24,000...........................                540             325
 
Marine Corps Reserve:
1,100............................                 50              11
1,200............................                 55              12
1,300............................                 60              13
1,400............................                 65              14
1,500............................                 70              15
1,600............................                 75              16
1,700............................                 80              17
1,800............................                 85              18
1,900............................                 89              19
2,000............................                 93              20
2,100............................                 96              21
2,200............................                 99              22
2,300............................                101              23
2,400............................                103              24
2,500............................                105              25
2,600............................                107              26
 
Air Force Reserve:
500..............................                 75              40
1,000............................                145              75
1,500............................                208             105
2,000............................                270             130
2,500............................                325             150
3,000............................                375             170
3,500............................                420             190
4,000............................                460             210
4,500............................                495             230
5,000............................                530             250
5,500............................                565             270
6,000............................                600             290
7,000............................                670             330
8,000............................                740             370
10,000...........................                800             400
 
Air National Guard
5,000............................              1,020             405
6,000............................              1,070             435
7,000............................              1,120             465
8,000............................              1,170             490
9,000............................              1,220             510
10,000...........................              1,270             530
11,000...........................              1,320             550
12,000...........................              1,370             570
13,000...........................              1,420             589
14,000...........................              1,470             608
15,000...........................              1,520             626
16,000...........................              1,570             644
17,000...........................              1,620             661
18,000...........................              1,670             678
19,000...........................              1,720             695
20,000...........................              1,770              712.
------------------------------------------------------------------------

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

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

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

              Subtitle C--Authorization of Appropriations

     SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 
                   PERSONNEL.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

     SEC. 501. GENERAL OFFICER POSITIONS.

       (a) Increased Grade for Vice Chief of National Guard 
     Bureau.--Section 10505(c) of title 10, United States Code, is 
     amended by striking ``major general'' and inserting 
     ``lieutenant general''.

[[Page 18506]]

       (b) Increased Grade for Heads of Nurse Corps of the Armed 
     Forces.--(1) Section 3069(b) of title 10, United States Code, 
     is amended by striking ``brigadier general'' in the second 
     sentence and inserting ``major general''.
       (2) The first sentence of section 5150(c) of such title is 
     amended--
       (A) by inserting ``rear admiral (upper half) in the case of 
     an officer in the Nurse Corps or'' after ``for promotion to 
     the grade of''; and
       (B) by inserting ``in the case of an officer in the Medical 
     Service Corps'' after ``rear admiral (lower half)''.
       (3) Section 8069(b) of such title is amended by striking 
     ``brigadier general'' in the second sentence and inserting 
     ``major general''.
       (c) Appointment and Grade of Chief of Army Veterinary 
     Corps.--(1) Chapter 307 of title 10, United States Code, is 
     amended by inserting after section 3070 the following new 
     section 3071:

     ``Sec. 3071. Veterinary Corps: composition; Chief and 
       assistant chief; appointment; grade

       ``(a) Composition.--The Veterinary Corps consists of the 
     Chief and assistant chief of that corps and other officers in 
     grades prescribed by the Secretary of the Army.
       ``(b) Chief.--The Secretary of the Army shall appoint the 
     Chief from the officers of the Regular Army in that corps 
     whose regular grade is above lieutenant colonel and who are 
     recommended by the Surgeon General. An appointee who holds a 
     lower regular grade shall be appointed in the regular grade 
     of brigadier general. The Chief serves during the pleasure of 
     the Secretary, but not for more than four years, and may not 
     be reappointed to the same position.
       ``(c) Assistant Chief.--The Surgeon General shall appoint 
     the assistant chief from the officers of the Regular Army in 
     that corps whose regular grade is above lieutenant colonel. 
     The assistant chief serves during the pleasure of the Surgeon 
     General, but not for more than four years and may not be 
     reappointed to the same position.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     3070 the following new item:

``3071. Veterinary Corps: composition; Chief and assistant chief; 
              appointment; grade.''.

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

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

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

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

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

     SEC. 504. AUTHORITY TO ADJUST DATE OF RANK.

       (a) Active Duty Officers.--Subsection 741(d) of title 10, 
     United States Code, is amended, by adding at the end the 
     following new paragraph (4):
       ``(4)(A) The Secretary concerned may adjust the date of 
     rank of an officer appointed to a higher grade under section 
     624(a) of this title if the appointment is to a grade below 
     O-7 and is delayed by reason of unusual circumstances that 
     cause an unintended delay in the processing or approval of--
       ``(i) a report of a selection board recommending the 
     appointment of the officer to that grade; or
       ``(ii) the promotion list established on the basis of that 
     report.
       ``(B) The adjusted date of rank applicable to the grade of 
     an officer under subparagraph (A) shall be consistent with 
     the officer's position on the promotion list for that grade

[[Page 18507]]

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

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

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

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

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

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

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

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

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

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

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

             Subtitle B--Reserve Component Personnel Policy

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

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

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

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

[[Page 18508]]

     section 12301(d) of title 10, United States Code, other than 
     as described under section 641(1)(C) of such title, under a 
     call or order to active duty specifying a period of three 
     years or less.

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

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

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

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

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

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

     SEC. 516. RETIREMENT OF RESERVE PERSONNEL WITHOUT REQUEST.

       (a) Retired Reserve.--Section 10154(2) of title 10, United 
     States Code, is amended by striking ``upon their request''.
       (b) Retirement for Failure of Selection of Promotion.--(1) 
     Paragraph (2) of section 14513 of such title is amended by 
     striking ``, if the officer is qualified and applies for such 
     transfer'' and inserting ``if the officer is qualified for 
     the transfer and does not request (in accordance with 
     regulations prescribed by the Secretary concerned) not to be 
     transferred to the Retired Reserve''.
       (2)(A) The heading for such section is amended to read as 
     follows:

     ``Sec. 14513. Transfer, retirement, or discharge for failure 
       of selection of promotion''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 1407 of title 10, United 
     States Code, is amended to read as follows:

``14513. Transfer, retirement, or discharge for failure of selection 
              for promotion.''.

       (c) Retirement for Years of Service or After Selection for 
     Early Removal.--Section 14514 of such title is amended--
       (1) in paragraph (1), by striking ``, if the officer is 
     qualified and applies for such transfer'' and inserting ``if 
     the officer is qualified for the transfer and does not 
     request (in accordance with regulations prescribed by the 
     Secretary concerned) not to be transferred to the Retired 
     Reserve''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) be discharged from the officer's reserve appointment 
     if the officer is not qualified for transfer to the Retired 
     Reserve or has requested (in accordance with regulations 
     prescribed by the Secretary concerned) not to be so 
     transferred.''.
       (d) Retirement for Age.--Section 14515 of such title is 
     amended--
       (1) in paragraph (1), by striking ``, if the officer is 
     qualified and applies for such transfer'' and inserting ``if 
     the officer is qualified for the transfer and does not 
     request (in accordance with regulations prescribed by the 
     Secretary concerned) not to be transferred to the Retired 
     Reserve''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) be discharged from the officer's reserve appointment 
     if the officer is not qualified for transfer to the Retired 
     Reserve or has requested (in accordance with regulations 
     prescribed by the Secretary concerned) not to be so 
     transferred.''.
       (e) Discharge or Retirement of Warrant Officers for Years 
     of Service or Age.--(1) Chapter 1207 of such title is amended 
     by adding at the end the following new section:

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

       ``Each reserve warrant officer of the Army, Navy, Air 
     Force, or Marine Corps who is in an active status and has 
     reached the maximum years of service or age prescribed by the 
     Secretary concerned shall--
       ``(1) be transferred to the Retired Reserve if the warrant 
     officer is qualified for the transfer and does not request 
     (in accordance with regulations prescribed by the Secretary 
     concerned) not to be transferred to the Retired Reserve; or
       ``(2) be discharged if the warrant officer is not qualified 
     for transfer to the Retired Reserve or has requested (in 
     accordance with regulations prescribed by the Secretary 
     concerned) not to be so transferred.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

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

       (f) Discharge or Retirement of Enlisted Members for Years 
     of Service or Age.--(1) Chapter 1203 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:


     ``Sec. 12108. Enlisted members: discharge or retirement for 
       years of service or for age

       ``Each reserve enlisted member of the Army, Navy, Air 
     Force, or Marine Corps who is in an active status and has 
     reached the maximum years of service or age prescribed by the 
     Secretary concerned shall--
       ``(1) be transferred to the Retired Reserve if the member 
     is qualified for the transfer and does not request (in 
     accordance with regulations prescribed by the Secretary 
     concerned) not to be transferred to the Retired Reserve; or
       ``(2) be discharged if the member is not qualified for 
     transfer to the Retired Reserve or has requested (in 
     accordance with regulations prescribed by the Secretary 
     concerned) not to be so transferred.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``12108. Enlisted members: discharge or retirement for years of service 
              or for age.''.

       (g) Effective Date.--This section and the amendments made 
     by this section shall take effect on the first day of the 
     first month that is more than 180 days after the date of the 
     enactment of this Act.

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

       (a) Correction of Impairment to Authorized Travel With 
     Allowances.--Section 18505(a) of title 10, United States 
     Code, is amended by striking ``annual training duty or'' each 
     place it appears.
       (b) Conforming Amendments.--(1) The heading for such 
     section is amended to read as follows:

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

       (2) The item relating to such section in the table of 
     contents at the beginning of chapter 1805 of title 10, United 
     States Code, is amended to read as follows:


[[Page 18509]]


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

                   Subtitle C--Education and Training

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

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

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

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

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

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

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

       (a) Authority.--Chapter 108 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

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

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

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

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

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

     ``Sec. 7102. Marine Corps University: masters degrees''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 609 of title 10, United 
     States Code, is amended to read as follows:

``7102. Marine Corps University: masters degrees.''.

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

     SEC. 536. FOREIGN PERSONS ATTENDING THE SERVICE ACADEMIES.

       (a) United States Military Academy.--(1) Subsection (a)(1) 
     of section 4344 of title 10, United States Code, is amended 
     by striking ``not more than 40 persons'' and inserting ``not 
     more than 60 persons''.
       (2) Subsection (b) of such section is amended--

[[Page 18510]]

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

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

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

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

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

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

       (a) Authority To Transfer to Family Members.--(1) 
     Subchapter II of chapter 30 of title 38, United States Code, 
     is amended by adding at the end the following new section:

[[Page 18511]]



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

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

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

       (b) Treatment Under Department of Defense Education 
     Benefits Fund.--Section 2006(b)(2) of title 10, United States 
     Code, is amended by adding at the end the following:
       ``(D) The present value of future benefits payable from the 
     Fund for the Department of Defense portion of payments of 
     educational assistance under subchapter II of chapter 30 of 
     title 38 attributable to increased usage of benefits as a 
     result of transfers of entitlement to basic educational 
     assistance under section 3020 of that title during such 
     period.''.

[[Page 18512]]

       (c) Plan for Implementation.--Not later than June 30, 2002, 
     the Secretary of Defense shall submit to Congress a report 
     describing the manner in which the Secretaries of the 
     military departments and the Secretary of Transportation 
     propose to exercise the authority granted by section 3020 of 
     title 38, United States Code, as added by subsection (a). The 
     report shall include the regulations prescribed under 
     subsection (k) of that section for purposes of the exercise 
     of the authority.
       (d) Funding for Fiscal Year 2002.--Of the amount authorized 
     to be appropriated to the Department of Defense for military 
     personnel for fiscal year 2002 by section 421, $30,000,000 
     may be available in fiscal year 2002 for deposit into the 
     Department of Defense Education Benefits Fund under section 
     2006 of title 10, United States Code, for purposes of 
     covering payments of amounts under subparagraph (D) of 
     section 2006(b)(2) of title 10, United States Code (as added 
     by subsection (b)), as a result of transfers of entitlement 
     to basic educational assistance under section 3020 of title 
     38, United States Code (as added by subsection (a)).

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

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

           Subtitle D--Decorations, Awards, and Commendations

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

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

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

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

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

       (a) Army.--(1)(A) Chapter 357 of title 10, United States 
     Code, is amended by inserting after section 3747 the 
     following new section:

     ``Sec. 3747a. Medal of honor: issuance of duplicate

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

``3747a. Medal of honor: issuance of duplicate.''.

       (2) Section 3747 of title 10, United States Code, is 
     amended by striking ``lost'' and inserting ``stolen, lost,''.
       (b) Navy and Marine Corps.--(1)(A) Chapter 567 of such 
     title is amended by inserting after section 6253 the 
     following new section:

     ``Sec. 6253a. Medal of honor: issuance of duplicate

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

``6253a. Medal of honor: issuance of duplicate.''.

       (2) Section 6253 of title 10, United States Code, is 
     amended by striking ``lost'' and inserting ``stolen, lost,''.
       (c) Air Force.--(1)(A) Chapter 857 of such title is amended 
     by inserting after section 8747 the following new section:

     ``Sec. 8747a. Medal of honor: issuance of duplicate

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

``8747a. Medal of honor: issuance of duplicate.''.

       (2) Section 8747 of title 10, United States Code, is 
     amended by striking ``lost'' and inserting ``stolen, lost,''.

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

       (a) Waiver.--Any limitation established by law or policy 
     for the time within which a recommendation for the award of a 
     military decoration or award must be submitted shall not 
     apply to awards of decorations described in this section, the 
     award of each such decoration having been determined by the 
     Secretary concerned to be warranted in accordance with 
     section 1130 of title 10, United States Code.
       (b) Silver Star.--Subsection (a) applies to the award of 
     the Silver Star to Wayne T. Alderson, of Glassport, 
     Pennsylvania, for

[[Page 18513]]

     gallantry in action from March 15 to March 18, 1945, while 
     serving as a member of the Army.
       (c) Distinguished Flying Cross.--Subsection (a) applies to 
     the award of the Distinguished Flying Cross for service 
     during World War II (including multiple awards to the same 
     individual) in the case of each individual concerning whom 
     the Secretary of the Navy (or an officer of the Navy acting 
     on behalf of the Secretary) submitted to the Committee on 
     Armed Services of the House of Representatives and the 
     Committee on Armed Services of the Senate, during the period 
     beginning on October 30, 2000, and ending on the day before 
     the date of the enactment of this Act, a notice as provided 
     in section 1130(b) of title 10, United States Code, that the 
     award of the Distinguished Flying Cross to that individual is 
     warranted and that a waiver of time restrictions prescribed 
     by law for recommendation for such award is recommended.

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

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

     SEC. 556. RETROACTIVE MEDAL OF HONOR SPECIAL PENSION.

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

                    Subtitle E--Funeral Honors Duty

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

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

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

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

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

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

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

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

             Subtitle F--Uniformed Services Overseas Voting

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

       (a) Sense of the Senate.--It is the sense of the Senate 
     that each administrator of a Federal, State, or local 
     election should--
       (1) be aware of the importance of the ability of each 
     uniformed services voter to exercise their right to vote; and
       (2) perform their duties with the intent to ensure that--
       (A) each uniformed services voter receives the utmost 
     consideration and cooperation when voting;
       (B) each valid ballot cast by such a voter is duly counted; 
     and
       (C) all eligible American voters, regardless of race, 
     ethnicity, disability, the language they speak, or the 
     resources of the community in which they live should have an 
     equal

[[Page 18514]]

     opportunity to cast a vote and have that vote counted.
       (b) Uniformed Services Voter Defined.--In this section, the 
     term ``uniformed services voter'' means--
       (1) a member of a uniformed service (as defined in section 
     101(a)(5) of title 10, United States Code) in active service;
       (2) a member of the merchant marine (as defined in section 
     107 of the Uniformed and Overseas Citizens Absentee Voting 
     Act (42 U.S.C. 1973ff-6)); and
       (3) a spouse or dependent of a member referred to in 
     subparagraph (A) or (B) who is qualified to vote.

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

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

     SEC. 573. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

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

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

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

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

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

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

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

     SEC. 577. ELECTRONIC VOTING DEMONSTRATION PROJECT.

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

     SEC. 578. FEDERAL VOTING ASSISTANCE PROGRAM.

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

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

       (a) Absentee Registration.--For purposes of voting in any 
     primary, special, general, or runoff election for Federal 
     office (as defined in section 301 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431)), each State shall, with 
     respect to any uniformed services voter (as defined in 
     section 571(b)) requesting to vote in the State accept and 
     process, with respect to any primary, special, general, or 
     runoff election, any otherwise valid voter registration 
     application submitted by such voter.
       (b) Voting by Recently Separated Uniformed Services 
     Voters.--Each State shall permit each recently separated 
     uniformed services voter to vote in any election for which a 
     voter registration application has been accepted and 
     processed under subsection (a) if that voter--
       (1) has registered to vote under such subsection; and
       (2) is eligible to vote in that election under State law.

[[Page 18515]]

       (c) Definitions.--In this section:
       (1) The term ``State'' means a State of the United States, 
     the District of Columbia, the Commonwealth of Puerto Rico, or 
     a territory or possession of the United States.
       (2) The term ``recently separated uniformed services 
     voter'' means any individual who was a uniformed services 
     voter (as defined in section 571(b)) on the date that is 60 
     days before the date on which the individual seeks to vote 
     and who--
       (A) presents to the election official Department of Defense 
     form 214 evidencing their former status as such a voter, or 
     any other official proof of such status; and
       (B) is no longer such a voter; and
       (C) is otherwise qualified to vote.

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

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

                       Subtitle G--Other Matters

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

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

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

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

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

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

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

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

     SEC. 585. REVIEW OF ACTIONS OF SELECTION BOARDS.

       (a) In General.--(1) Chapter 79 of title 10, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1558. Exclusive remedies in cases involving selection 
       boards

       ``(a) Correction of Military Records.--The Secretary 
     concerned may correct a person's military records in 
     accordance with a recommendation made by a special board. Any 
     such correction shall be effective, retroactively, as of the 
     effective date of the action taken on a report of a previous 
     selection board that resulted in the action corrected in the 
     person's military records.
       ``(b) Relief Associated With Corrections of Certain 
     Actions.--(1) The Secretary concerned shall ensure that a 
     person receives relief under paragraph (2) or (3), as the 
     person may elect, if the person--
       ``(A) was separated or retired from an armed force, or 
     transferred to the retired reserve or to inactive status in a 
     reserve component, as a result of a recommendation of a 
     selection board; and
       ``(B) becomes entitled to retention on or restoration to 
     active duty or active status in a reserve component as a 
     result of a correction of the person's military records under 
     subsection (a).
       ``(2)(A) With the consent of a person referred to in 
     paragraph (1), the person shall be retroactively and 
     prospectively restored to the same status, rights, and 
     entitlements (less appropriate offsets against back pay and 
     allowances) in the person's armed force as the person would 
     have had if the person had not been selected to be separated, 
     retired, or transferred to the retired reserve or to inactive 
     status in a reserve component, as the case may be, as a 
     result of an action corrected under subsection (a). An action 
     under this subparagraph is subject to subparagraph (B).
       ``(B) Nothing in subparagraph (A) shall be construed to 
     permit a person to be on active duty or in an active status 
     in a reserve component after the date on which the person 
     would have been separated, retired, or transferred to the 
     retired reserve or to inactive status in a reserve component 
     if the person had not been selected to be separated, retired, 
     or transferred to the retired reserve or to inactive status 
     in a reserve component, as the case may be, in an action of a 
     selection board that is corrected under subsection (a).
       ``(3) If the person does not consent to a restoration of 
     status, rights, and entitlements under paragraph (2), the 
     person shall receive back pay and allowances (less 
     appropriate offsets) and service credit for the period 
     beginning on the date of the person's separation, retirement, 
     or transfer to the retired reserve or to inactive status in a 
     reserve component, as the case may be, and ending on the 
     earlier of--
       ``(A) the date on which the person would have been so 
     restored under paragraph (2), as determined by the Secretary 
     concerned; or
       ``(B) the date on which the person would otherwise have 
     been separated, retired, or transferred to the retired 
     reserve or to inactive status in a reserve component, as the 
     case may be.
       ``(c) Finality of Unfavorable Action.--If a special board 
     makes a recommendation not to correct the military records of 
     a person regarding action taken in the case of that person on 
     the basis of a previous report of a selection board, the 
     action previously taken on that report shall be considered as 
     final as of the date of the action taken on that report.
       ``(d) Regulations.--(1) The Secretary concerned may 
     prescribe regulations to carry out this section (other than 
     subsection (e)) with respect to the armed force or armed 
     forces under the jurisdiction of the Secretary.
       ``(2) The Secretary may prescribe in the regulations the 
     circumstances under which consideration by a special board 
     may be provided for under this section, including the 
     following:
       ``(A) The circumstances under which consideration of a 
     person's case by a special board is contingent upon 
     application by or for that person.
       ``(B) Any time limits applicable to the filing of an 
     application for consideration.
       ``(3) Regulations prescribed by the Secretary of a military 
     department under this subsection shall be subject to the 
     approval of the Secretary of Defense.
       ``(e) Judicial Review.--(1) A person challenging for any 
     reason the action or recommendation of a selection board, or 
     the action taken by the Secretary concerned on the report of 
     a selection board, is not entitled to relief in any judicial 
     proceeding unless the person has first been considered by a

[[Page 18516]]

     special board under this section or the Secretary concerned 
     has denied such consideration.
       ``(2) A court of the United States may review a 
     determination by the Secretary concerned not to convene a 
     special board in the case of any person. In any such case, a 
     court may set aside the Secretary's determination only if the 
     court finds the determination to be arbitrary or capricious, 
     not based on substantial evidence, or otherwise contrary to 
     law. If a court sets aside a determination not to convene a 
     special board, it shall remand the case to the Secretary 
     concerned, who shall provide for consideration of the person 
     by a special board.
       ``(3) A court of the United States may review a 
     recommendation of a special board or an action of the 
     Secretary concerned on the report of a special board convened 
     for consideration of a person. In any such case, a court may 
     set aside the recommendation or action, as the case may be, 
     only if the court finds that the recommendation or action was 
     contrary to law or involved a material error of fact or a 
     material administrative error. If a court sets aside the 
     recommendation of a special board, it shall remand the case 
     to the Secretary concerned, who shall provide for 
     reconsideration of the person by another special board. If a 
     court sets aside the action of the Secretary concerned on the 
     report of a special board, it shall remand the case to the 
     Secretary concerned for a new action on the report of the 
     special board.
       ``(4)(A) If, not later than six months after receiving a 
     complete application for consideration by a special board in 
     any case, the Secretary concerned has not convened a special 
     board and has not denied consideration by a special board in 
     that case, the Secretary shall be deemed to have denied the 
     consideration of the case for the purposes of this 
     subsection.
       ``(B) If, not later than one year after the convening of a 
     special board in any case, the Secretary concerned has not 
     taken final action on the report of the special board, the 
     Secretary shall be deemed to have denied relief in such case 
     for the purposes of this subsection.
       ``(C) Under regulations prescribed under subsection (d), 
     the Secretary concerned may waive the applicability of 
     subparagraph (A) or (B) in a case if the Secretary determines 
     that a longer period for consideration of the case is 
     warranted. The Secretary of a military department may not 
     delegate authority to make a determination under this 
     subparagraph.
       ``(f) Exclusivity of Remedies.--Notwithstanding any other 
     provision of law, but subject to subsection (g), the remedies 
     provided under this section are the only remedies available 
     to a person for correcting an action or recommendation of a 
     selection board regarding that person or an action taken on 
     the report of a selection board regarding that person.
       ``(g) Existing Jurisdiction.--(1) Nothing in this section 
     limits the jurisdiction of any court of the United States 
     under any provision of law to determine the validity of any 
     statute, regulation, or policy relating to selection boards, 
     except that, in the event that any such statute, regulation, 
     or policy is held invalid, the remedies prescribed in this 
     section shall be the sole and exclusive remedies available to 
     any person challenging the recommendation of a special board 
     on the basis of the invalidity.
       ``(2) Nothing in this section limits authority to correct a 
     military record under section 1552 of this title.
       ``(h) Inapplicability to Coast Guard.--This section does 
     not apply to the Coast Guard when it is not operating as a 
     service in the Navy.
       ``(i) Definitions.--In this section:
       ``(1) The term `special board'--
       ``(A) means a board that the Secretary concerned convenes 
     under any authority to consider whether to recommend a person 
     for appointment, enlistment, reenlistment, assignment, 
     promotion, retention, separation, retirement, or transfer to 
     inactive status in a reserve component instead of referring 
     the records of that person for consideration by a previously 
     convened selection board which considered or should have 
     considered that person;
       ``(B) includes a board for the correction of military or 
     naval records convened under section 1552 of this title, if 
     designated as a special board by the Secretary concerned; and
       ``(C) does not include a promotion special selection board 
     convened under section 628 or 14502 of this title.
       ``(2) The term `selection board'--
       ``(A) means a selection board convened under section 
     573(c), 580, 580a, 581, 611(b), 637, 638, 638a, 14101(b), 
     14701, 14704, or 14705 of this title, and any other board 
     convened by the Secretary concerned under any authority to 
     recommend persons for appointment, enlistment, reenlistment, 
     assignment, promotion, or retention in the armed forces or 
     for separation, retirement, or transfer to inactive status in 
     a reserve component for the purpose of reducing the number of 
     persons serving in the armed forces; and
       ``(B) does not include--
       ``(i) a promotion board convened under section 573(a), 
     611(a), or 14101(a) of this title;
       ``(ii) a special board;
       ``(iii) a special selection board convened under section 
     628 of this title; or
       ``(iv) a board for the correction of military records 
     convened under section 1552 of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following:

``1558. Exclusive remedies in cases involving selection boards .''.

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

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

       (a) Authority.--Subsection (a) of section 1588 of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(5) Legal services voluntarily provided as legal 
     assistance under section 1044 of this title.''.

[[Page 18517]]

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

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

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

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

       (a) In General.--(1) Chapter 157 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2647. Transportation to annual meeting of next-of-kin 
       of persons unaccounted for from conflicts after World War 
       II

       ``The Secretary of Defense may provide transportation for 
     the next-of-kin of persons who are unaccounted for from the 
     Korean conflict, the Cold War, Vietnam War era, or the 
     Persian Gulf War to and from those annual meetings sanctioned 
     by the Department of Defense in the United States. Such 
     transportation shall be provided under such regulations as 
     the Secretary of Defense may prescribe.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2647. Transportation to annual meeting of next-of-kin of persons 
              unaccounted for from conflicts after World War II.''.

       (b) Effective Date.--Section 2647 of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     October 1, 2001, or the date of the enactment of this Act, 
     whichever is later.

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

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

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

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

[[Page 18518]]

 
\3\ This table does not apply to commissioned officers in pay grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


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


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


                          ENLISTED MEMBERS \1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9 \2\..........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   1,986.90   2,169.00   2,251.50   2,332.50   2,417.40
E-6..............   1,701.00   1,870.80   1,953.60   2,033.70   2,117.40
E-5..............   1,561.50   1,665.30   1,745.70   1,828.50   1,912.80
E-4..............   1,443.60   1,517.70   1,599.60   1,680.30   1,752.30
E-3..............   1,303.50   1,385.40   1,468.50   1,468.50   1,468.50
E-2..............   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30
E-1..............        \3\   1,105.50   1,105.50   1,105.50   1,105.50
                    1,105.50
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9 \2\..........      $0.00  $3,423.90   3,501.30   3,599.40   3,714.60
E-8..............   2,858.10   2,940.60   3,017.70   3,110.10   3,210.30
E-7..............   2,562.90   2,645.10   2,726.40   2,808.00   2,892.60
E-6..............   2,254.50   2,337.30   2,417.40   2,499.30   2,558.10
E-5..............   2,030.10   2,110.20   2,193.30   2,193.30   2,193.30
E-4..............   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30
E-3..............   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50
E-2..............   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30
E-1..............   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9 \2\..........  $3,830.40   3,944.10   4,098.30   4,251.30   4,467.00
E-8..............   3,314.70   3,420.30   3,573.00   3,724.80   3,937.80
E-7..............   2,975.10   3,057.30   3,200.40   3,292.80   3,526.80
E-6..............   2,602.80   2,602.80   2,602.80   2,602.80   2,602.80
E-5..............   2,193.30   2,193.30   2,193.30   2,193.30   2,193.30
E-4..............   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30
E-3..............   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50
E-2..............   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30
E-1..............   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for enlisted members may not exceed the rate
  of pay for level V of the Executive Schedule.

[[Page 18519]]

 
\2\ Subject to the preceding footnote, while serving as Sergeant Major
  of the Army, Master Chief Petty Officer of the Navy, Chief Master
  Sergeant of the Air Force, Sergeant Major of the Marine Corps, or
  Master Chief Petty Officer of the Coast Guard, basic pay for this
  grade is $5,382.90, regardless of cumulative years of service computed
  under section 205 of title 37, United States Code.
\3\ In the case of members in pay grade E-1 who have served less than 4
  months on active duty, the rate of basic pay is $1,022.70.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

[[Page 18520]]



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

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

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

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

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

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

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

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

     SEC. 616. SUBMARINE DUTY INCENTIVE PAY RATES.

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

     SEC. 617. CAREER SEA PAY.

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

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

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

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

       (a) In General.--(1) Chapter 5 of title 37, United States 
     Code, is amended by inserting after section 323 the following 
     new section:

     ``Sec. 324. Special pay: critical officer skills accession 
       bonus

       ``(a) Accession Bonus Authorized.--A person who executes a 
     written agreement to accept a commission as an officer of an 
     armed force and serve on active duty in a designated critical 
     officer skill for the period specified in the agreement may 
     be paid an accession bonus upon acceptance of the written 
     agreement by the Secretary concerned.
       ``(b) Designation of Critical Officer Skills.--(1) The 
     Secretary of Defense, or the Secretary of Transportation with 
     respect to the Coast Guard when it is not operating as a 
     service in the Navy, shall designate the critical officer 
     skills for the purposes of this section. The Secretary of 
     Defense may so designate a skill for any one or more of the 
     armed forces.
       ``(2) A skill may be designated as a critical officer skill 
     for an armed force for the purposes of this section if--
       ``(A) in order to meet requirements of the armed force, it 
     is critical for the armed force to have a sufficient number 
     of officers who are qualified in that skill; and
       ``(B) in order to mitigate a current or projected 
     significant shortage of personnel in the armed force who are 
     qualified in that skill, it is critical to access into that 
     armed force in sufficient numbers persons who are qualified 
     in that skill or are to be trained in that skill.
       ``(c) Amount of Bonus.--The amount of a bonus paid with 
     respect to a critical officer skill shall be determined under 
     regulations jointly prescribed by the Secretary of Defense 
     and the Secretary of Transportation, but may not exceed 
     $20,000.
       ``(d) Limitation on Eligibility for Bonus.--An individual 
     may not be paid a bonus under subsection (a) if the 
     individual has received, or is receiving, an accession bonus 
     for the same period of service under section 302d, 302h, or 
     312b of this title.
       ``(e) Payment Method.--Upon acceptance of a written 
     agreement referred to in subsection (a) by the Secretary 
     concerned, the total amount payable pursuant to the agreement 
     under this section becomes fixed and may be paid by the 
     Secretary in either a lump sum or installments.
       ``(f) Repayment for Failure To Complete Obligated 
     Service.--(1) A person who, after having received all or part 
     of the bonus under this section pursuant to an agreement 
     referred to in subsection (a), fails to accept an appointment 
     as a commissioned officer or to commence or complete the 
     total period of active duty service in a designated critical 
     officer skill as provided in the agreement shall refund to 
     the United States the amount that bears the same ratio to the 
     total amount of the bonus authorized for such person as the 
     unserved part of the period of agreed active duty service in 
     a designated critical officer skill bears to the total period 
     of the agreed active duty service, but not more than the 
     amount that was paid to the person.
       ``(2) Subject to paragraph (3), an obligation to reimburse 
     the United States imposed under paragraph (1) is for all 
     purposes a debt owed to the United States.

[[Page 18521]]

       ``(3) The Secretary concerned may waive, in whole or in 
     part, a refund required under paragraph (1) if the Secretary 
     concerned determines that recovery would be against equity 
     and good conscience or would be contrary to the best 
     interests of the United States.
       ``(4) A discharge in bankruptcy under title 11 that is 
     entered less than five years after the termination of a 
     written agreement entered into under subsection (a) does not 
     discharge the person signing the agreement from a debt 
     arising under such agreement or under paragraph (1).
       ``(g) Termination of Authority.--No bonus may be paid under 
     this section with respect to an agreement entered into after 
     December 31, 2002.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     323 the following new item:

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

       (b) Effective Date.--Section 324 of title 37, United States 
     Code (as added by subsection (a)), shall take effect on 
     October 1, 2001.

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

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

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

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

     SEC. 622. HOSTILE FIRE OR IMMINENT DANGER PAY.

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

     ``Sec. 5949 Hostile fire or imminent danger pay

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

``5949. Hostile fire or imminent danger pay.''.

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

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

     SEC. 633. ELIGIBILITY FOR DISLOCATION ALLOWANCE.

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

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

       (a) Authority.--(1) Chapter 7 of title 37, United States 
     Code is amended by inserting after section 407 the following 
     new section:

     ``Sec. 407a. Travel and transportation: allowance for 
       dislocation for the convenience of the Government at home 
       station

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

``407a. Travel and transportation: allowance for dislocation for the 
              convenience of the Government at home station.''.

       (b) Effective Date.--Section 407a of title 37, United 
     States Code, shall take effect on October 1, 2001.

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

       (a) Consolidation of Authorities.--Section 411f of title 
     37, United States Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``Allowances Authorized.--(1)'' after 
     ``(a)'';
       (B) by striking ``the dependents of a member'' and 
     inserting ``eligible members of the

[[Page 18522]]

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

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

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

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

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

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

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

    Subtitle D--Matters Relating to Retirement and Survivor Benefits

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

       (a) Restoration of Retired Pay Benefits.--Chapter 71 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

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

       ``(a) Payment of Both Retired Pay and Compensation.--Except 
     as provided in subsection (b), a member or former member of 
     the uniformed services who is entitled to retired pay (other 
     than as specified in subsection (c)) and who is also entitled 
     to veterans' disability compensation is entitled to be paid 
     both without regard to sections 5304 and 5305 of title 38.
       ``(b) Special Rule for Chapter 61 Career Retirees.--The 
     retired pay of a member retired under chapter 61 of this 
     title with 20 years or more of service otherwise creditable 
     under section 1405 of this title at the time of the member's 
     retirement is subject to reduction under sections 5304 and 
     5305 of title 38, but only to the extent that the amount of

[[Page 18523]]

     the member's retired pay under chapter 61 of this title 
     exceeds the amount of retired pay to which the member would 
     have been entitled under any other provision of law based 
     upon the member's service in the uniformed services if the 
     member had not been retired under chapter 61 of this title.
       ``(c) Exception.--Subsection (a) does not apply to a member 
     retired under chapter 61 of this title with less than 20 
     years of service otherwise creditable under section 1405 of 
     this title at the time of the member's retirement.
       ``(d) Definitions.--In this section:
       ``(1) The term `retired pay' includes retainer pay, 
     emergency officers' retirement pay, and naval pension.
       ``(2) The term `veterans' disability compensation' has the 
     meaning given the term `compensation' in section 101(13) of 
     title 38.''.
       (b) Repeal of Special Compensation Program.--Section 1413 
     of such title is repealed.
       (c) Clerical Amendments.--The table of sections at the 
     beginning of such chapter is amended--
       (1) by striking the item relating to section 1413; and
       (2) by adding at the end the following new item:

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

       (d) Effective Date.--(1) The amendments made by this 
     section shall take effect on October 1, 2002.
       (2) No benefits may be paid to any person by reason of 
     section 1414 of title 10, United States Code, as added by the 
     amendment made by subsection (a), for any period before the 
     effective date under paragraph (1).

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

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

                       Subtitle E--Other Matters

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

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

     ``Sec. 324. Incentive bonus: savings plan for education 
       expenses and other contingencies

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

[[Page 18524]]

     section is in addition to any other bonus or incentive or 
     special pay that is paid or payable to a member under any 
     other provision of this chapter for any portion of the same 
     qualifying service.
       ``(i) Regulations.--This section shall be administered 
     under regulations prescribed by the Secretary of Defense for 
     the armed forces under his jurisdiction and by the Secretary 
     of Transportation for the Coast Guard when the Coast Guard is 
     not operating as a service in the Navy.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

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

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

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

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

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

       (2) Subsection (a) of such section is amended by striking 
     ``of Ready Reserve'' and inserting ``With 50 or More 
     Creditable Points''.
       (3) The item relating to such section in the table of 
     sections at the beginning of chapter 54 of title 10, United 
     States Code, is amended to read as follows:

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

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

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

             Subtitle F--National Emergency Family Support

     SEC. 681. CHILD CARE AND YOUTH ASSISTANCE.

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

     SEC. 682. FAMILY EDUCATION AND SUPPORT SERVICES.

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

                         TITLE VII--HEALTH CARE

               Subtitle A--TRICARE Benefits Modernization

     SEC. 701. REQUIREMENT FOR INTEGRATION OF BENEFITS.

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

     SEC. 702. DOMICILIARY AND CUSTODIAL CARE.

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

     SEC. 703. LONG TERM CARE.

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

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

       ``(a) Requirement for Program.--The Secretary of Defense 
     shall provide long term health care benefits under the 
     TRICARE program in an effective and efficient manner that 
     integrates those benefits with the benefits provided on a 
     less than a long term basis under the TRICARE program.
       ``(b) Authorized Care.--The types of health care authorized 
     to be provided under this section shall include the 
     following:
       ``(1) The types of health care authorized to be acquired by 
     contract under section 1079 of this title.
       ``(2) Extended care services.
       ``(3) Post-hospital extended care services.
       ``(4) Comprehensive intermittent home health services.
       ``(c) Duration of Post-Hospital Extended Care Services.--
     The post-hospital extended care services provided in a 
     skilled nursing facility to a patient during a spell of 
     illness under subsection (b)(3) shall continue for as long as 
     is medically necessary and appropriate. The limitation on the 
     number of days of coverage under subsections (a)(2) and 
     (b)(2)(A) of section 1812 of the Social Security Act (42 
     U.S.C. 1395d) shall not apply with respect to the care 
     provided that patient.

[[Page 18525]]

       ``(d) Regulations.--The Secretary of Defense shall, after 
     consultation with the other administering Secretaries, 
     prescribe regulations to carry out this section.
       ``(e) Definitions.--In this section:
       ``(1) The term `extended care services' has the meaning 
     given the term in subsection (h) of section 1861 of the 
     Social Security Act (42 U.S.C. 1395x).
       ``(2) The term `post-hospital extended services' has the 
     meaning given the term in subsection (i) of section 1861 of 
     the Social Security Act (42 U.S.C. 1395x).
       ``(3) The term `home health services' has the meaning given 
     the term in subsection (m) of section 1861 of the Social 
     Security Act (42 U.S.C. 1395x).
       ``(4) The term `skilled nursing facility' has the meaning 
     given the term in section 1819(a) of the Social Security Act 
     (42 U.S.C. 1395i-3(a)).
       ``(5) The term `spell of illness' has the meaning given the 
     term in subsection (a) of section 1861 of the Social Security 
     Act (42 U.S.C. 1395x).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1074i the following new item:

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

     SEC. 704. EXTENDED BENEFITS FOR DISABLED BENEFICIARIES.

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

     SEC. 705. CONFORMING REPEALS.

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

     SEC. 706. PROSTHETICS AND HEARING AIDS.

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

     SEC. 707. DURABLE MEDICAL EQUIPMENT.

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

     SEC. 708. REHABILITATIVE THERAPY.

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

[[Page 18526]]

     minimize or prevent deterioration of function, of a patient 
     when prescribed by a physician.''.

     SEC. 709. MENTAL HEALTH BENEFITS.

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

     SEC. 710. EFFECTIVE DATE.

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

                       Subtitle B--Other Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

       (a) Authority.--The Secretary of Defense and the Secretary 
     of Veterans Affairs may jointly carry out a pilot program for 
     the performance of the physical examinations required in 
     connection with the separation of members of the uniformed 
     services. The requirements of this section shall apply to a 
     pilot program, if any, that is carried out under the 
     authority of this subsection.
       (b) Performance of Physical Examinations by Department of 
     Veterans Affairs.--Under the pilot program, the Secretary of 
     Veterans Affairs shall perform the physical examinations of 
     members of the uniformed services separating from the 
     uniformed services who are in one or more geographic areas 
     designated for the pilot program by the Secretaries.
       (c) Reimbursement.--The Secretary of Defense shall provide 
     for reimbursing the Secretary of Veterans Affairs for the 
     cost incurred by the Secretary of Veterans Affairs in 
     performing, under the pilot program, the items of physical 
     examination that are required by the Secretary concerned in 
     connection with the separation of a member of a uniformed 
     service. Reimbursements shall be paid out of funds available 
     for the performance of separation physical examinations of 
     members of that uniformed service in facilities of the 
     uniformed services.
       (d) Agreement.--(1) The Secretary of Defense and the 
     Secretary of Veterans Affairs shall enter into an agreement 
     for carrying out a pilot program established under this 
     section. The agreement shall specify the geographic area in 
     which the pilot program is carried out and the means for 
     making reimbursement payments.
       (2) The other administering Secretaries shall also enter 
     into the agreement to the extent that the Secretary of 
     Defense determines necessary to apply the pilot program, 
     including the requirement for reimbursement, to the uniformed 
     services not under the jurisdiction of the Secretary of a 
     military department.
       (e) Consultation Requirement.--In developing and carrying 
     out the pilot program,

[[Page 18527]]

     the Secretary of Defense shall consult with the other 
     administering Secretaries.
       (f) Period of Program.--Any pilot program established under 
     this section shall begin not later than July 1, 2002, and 
     terminate on December 31, 2005.
       (g) Reports.--(1) Not later than January 31, 2004, the 
     Secretary of Defense and the Secretary of Veterans Affairs 
     shall jointly submit to Congress an interim report on the 
     conduct of the pilot program.
       (2) Not later than March 1, 2005, the Secretary of Defense 
     and the Secretary of Veterans Affairs shall jointly submit to 
     Congress a final report on the conduct of the pilot program.
       (3) Each report under this subsection shall include the 
     Secretaries' assessment, as of the date of such report, of 
     the efficacy of the performance of separation physical 
     examinations as provided for under the pilot program.
       (h) Definitions.--In this section:
       (1) The term ``administering Secretaries'' has the meaning 
     given the term in section 1072(3) of title 10, United States 
     Code.
       (2) The term ``Secretary concerned'' has the meaning given 
     the term in section 101(5) of title 37, United States Code.

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

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

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

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

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

         Subtitle A--Procurement Management and Administration

     SEC. 801. MANAGEMENT OF PROCUREMENTS OF SERVICES.

       (a) Responsibility of Under Secretary of Defense for 
     Acquisition, Technology, and Logistics.--Section 133(b) of 
     title 10, United States Code, is amended--
       (1) by striking ``and'' at the end of paragraph (4);
       (2) by redesignating paragraph (5) as paragraph (6); and
       (3) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) managing the procurements of services for the 
     Department of Defense; and''.
       (b) Requirement for Management Structure.--(1) Chapter 137 
     of such title is amended by inserting after section 2328 the 
     following new section:

     ``Sec. 2330. Procurements of services: management structure

       ``(a) Requirement for Management Structure.--The Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics shall establish a structure for the management of 
     procurements of services for the Department of Defense.
       ``(b) Delegation of Authority.--(1) The management 
     structure shall provide for a designated official in each 
     Defense Agency, military department, and command to exercise 
     the responsibility for the management of the procurements of 
     services for the official's Defense Agency, military 
     department, or command, respectively.
       ``(2) For the exercise of the responsibility under 
     paragraph (1), a designated official shall report, and be 
     accountable, to--
       ``(A) the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics; and
       ``(B) such other officials as the Under Secretary may 
     prescribe for the management structure.
       ``(3) Paragraph (2) shall not affect the responsibility of 
     a designated official for a military department who is not 
     the Secretary of that military department to report, and be 
     accountable, to the Secretary of the military department.
       ``(c) Contracting Responsibilities of Designated 
     Officials.--The responsibilities of an official designated 
     under subsection (b) shall include, with respect to the 
     procurements of services for the Defense Agency, military 
     department, or command of that official, the following:
       ``(1) Ensuring that the services are procured by means of 
     contracts or task orders that are in the best interests of 
     the Department of Defense and are entered into or issued and 
     managed in compliance with the applicable statutes, 
     regulations, directives, and other requirements, regardless 
     of whether the services are procured through a contract of 
     the Department of Defense or through a contract entered into 
     by an official of the United States outside the Department of 
     Defense.
       ``(2) Establishing within the Department of Defense 
     appropriate contract vehicles for use in the procurement of 
     services so as to ensure that officials of the Department of 
     Defense are accountable for the procurement of the services 
     in accordance with the requirements of paragraph (1).
       ``(3) Analyzing data collected under section 2330a of this 
     title on contracts that are entered into for the procurement 
     of services.
       ``(4) Approving, in advance, any procurement of services 
     that is to be made through the use of--

[[Page 18528]]

       ``(A) a contract or task order that is not a performance-
     based contract or task order; or
       ``(B) a contract entered into, or a task order issued, by 
     an official of the United States outside the Department of 
     Defense.
       ``(d) Definition.--In this section, the term `performance-
     based', with respect to a contract or a task order means that 
     the contract or task- order, respectively, includes the use 
     of performance work statements that set forth contract 
     requirements in clear, specific, and objective terms with 
     measurable outcomes.''.
       (2) Not later than 180 days after the date of the enactment 
     of this Act, the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics shall issue guidance for officials 
     in the management structure established under section 2330 of 
     title 10, United States Code (as added by paragraph (1)), 
     regarding how to carry out their responsibilities under that 
     section. The guidance shall include, at a minimum, the 
     following:
       (A) Specific dollar thresholds, approval levels, and 
     criteria for advance approvals under subsection (c)(4) of 
     such section 2330.
       (B) A prohibition on the procurement of services through 
     the use of a contract entered into, or a task order issued, 
     by an official of the United States outside the Department of 
     Defense that is not a performance-based contract or task 
     order, unless an appropriate official in the management 
     structure established under such section 2330 determines in 
     writing that the use of that means for the procurement is 
     justified on the basis of exceptional circumstances as being 
     in the best interests of the Department of Defense.
       (c) Tracking of Procurements of Services.--Chapter 137 of 
     title 10, United States Code, as amended by subsection (b), 
     is further amended by inserting after section 2330 the 
     following new section:

     ``Sec. 2330a. Procurements of services: tracking

       ``(a) Data Collection Required.--The Secretary of Defense 
     shall establish a data collection system to provide 
     management information with regard to each purchase of 
     services by a military department or Defense Agency in excess 
     of the simplified acquisition threshold, regardless of 
     whether such a purchase is made in the form of a contract, 
     task order, delivery order, military interdepartmental 
     purchase request, or any other form of interagency agreement.
       ``(b) Data To Be Collected.--The data required to be 
     collected under subsection (a) includes the following:
       ``(1) The services purchased.
       ``(2) The total dollar amount of the purchase.
       ``(3) The form of contracting action used to make the 
     purchase.
       ``(4) Whether the purchase was made through--
       ``(A) a performance-based contract, performance-based task 
     order, or other performance-based arrangement that contains 
     firm fixed prices for the specific tasks to be performed;
       ``(B) any other performance-based contract, performance-
     based task order, or performance-based arrangement; or
       ``(C) any contract, task order, or other arrangement that 
     is not performance based.
       ``(5) In the case of a purchase made through an agency 
     other than the Department of Defense--
       ``(A) the agency through which the purchase is made; and
       ``(B) the reasons for making the purchase through that 
     agency.
       ``(6) The extent of competition provided in making the 
     purchase (including the number of offerors).
       ``(7) whether the purchase was made from--
       ``(A) a small business concern;
       ``(B) a small business concern owned and controlled by 
     socially and economically disadvantaged individuals; or
       ``(C) a small business concern owned and controlled by 
     women.
       ``(c) Compatibility With Data Collection System for 
     Information Technology Purchases.--To the maximum extent 
     practicable, a single data collection system shall be used to 
     collect data under this section and information under section 
     2225 of this title.
       ``(d) Definitions.--In this section:
       ``(1) The term `performance-based', with respect to a 
     contract, task order, or arrangement, means that the 
     contract, task order, or arrangement, respectively, includes 
     the use of performance work statements that set forth 
     contract requirements in clear, specific, and objective terms 
     with measurable outcomes.
       ``(2) The definitions set forth in section 2225(f) of this 
     title for the terms `simplified acquisition threshold', 
     `small business concern', `small business concern owned and 
     controlled by socially and economically disadvantaged 
     individuals', and `small business concern owned and 
     controlled by women' shall apply.''.
       (d) Requirement for Program Review Structure.--(1) Not 
     later than 180 days after the date of the enactment of this 
     Act, the Secretary of Defense shall issue and implement a 
     policy that applies to the procurement of services by the 
     Department of Defense a program review structure that is 
     similar to the one developed for and applied to the 
     procurement of systems by the Department of Defense.
       (2) The program review structure for the procurement of 
     services shall, at a minimum, include the following:
       (A) Standards for determining which procurements should be 
     subject to review by either the senior procurement executive 
     of a military department or the senior procurement executive 
     of the Department of Defense under such section, including 
     criteria based on dollar thresholds, program criticality, or 
     other appropriate measures.
       (B) Appropriate milestones at which those reviews should 
     take place.
       (C) A description of the specific matters that should be 
     reviewed.
       (e) Comptroller General Review.--Not later than 90 days 
     after the date on which the Secretary issues the policy 
     required by subsection (d) and the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics issues the 
     guidance required by subsection (b)(2), the Comptroller 
     General shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives an assessment of 
     the compliance with the requirements of this section and the 
     amendments made by this section.
       (f) Definitions.--In this section:
       (1) The term ``senior procurement executive'' means the 
     official designated as the senior procurement executive under 
     section 16(3) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 414(3)).
       (2) The term ``performance-based'', with respect to a 
     contract or a task order means that the contract or task 
     order, respectively, includes the use of performance work 
     statements that set forth contract requirements in clear, 
     specific, and objective terms with measurable outcomes.
       (g) Clerical Amendments.--(1) The heading for section 2331 
     of title 10, United States Code, is amended to read as 
     follows:

     ``Sec. 2331. Procurements of services: contracts for 
       professional and technical services''.

       (2) The table of sections at the beginning of chapter 137 
     of such title is amended by striking the item relating to 
     section 2331 and inserting the following new items:

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

     SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERVICES.

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

[[Page 18529]]

     goals established by subsection (a). In each report the 
     Comptroller General shall, at a minimum, address--
       (1) the accuracy and reliability of the estimates included 
     in the Secretary's report; and
       (2) the effectiveness of the improvements in management 
     practices that have been taken, and those that are planned to 
     be taken, in the Department of Defense to achieve savings in 
     procurements of services by the Department.

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

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

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

       (a) Standard for Technological Maturity.--(1) Chapter 144 
     of title 10, United States Code, is amended by inserting 
     after section 2431 the following new section:

     ``Sec. 2431a. Risk reduction at program initiation

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

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

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

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

         Subtitle B--Defense Acquisition and Support Workforce

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

       (a) Requirement for Report.--Not later than March 1, 2002, 
     the Secretary of Defense shall submit to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     a report on the extent of the implementation of the 
     recommendations set forth in the final report of the 
     Department of Defense Acquisition 2005 Task Force, entitled 
     ``Shaping the Civilian Acquisition Workforce of the Future''.
       (b) Content of Report.--The report shall include the 
     following:

[[Page 18530]]

       (1) For each recommendation in the final report that is 
     being implemented or that the Secretary plans to implement--
       (A) a summary of all actions that have been taken to 
     implement the recommendation; and
       (B) a schedule, with specific milestones, for completing 
     the implementation of the recommendation.
       (2) For each recommendation in the final report that the 
     Secretary does not plan to implement--
       (A) the reasons for the decision not to implement the 
     recommendation; and
       (B) a summary of any alternative actions the Secretary 
     plans to take to address the purposes underlying the 
     recommendation.
       (3) A summary of any additional actions the Secretary plans 
     to take to address concerns raised in the final report about 
     the size and structure of the acquisition workforce of the 
     Department of Defense.
       (c) Comptroller General Review.--Not later than 60 days 
     after the date on which the Secretary submits the report 
     required by subsection (a), the Comptroller General shall--
       (1) review the report; and
       (2) submit to the committees referred to in subsection (a) 
     the Comptroller General's assessment of the extent to which 
     the report--
       (A) complies with the requirements of this section; and
       (B) addresses the concerns raised in the final report about 
     the size and structure of the acquisition workforce of the 
     Department of Defense.

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

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

     SEC. 813. REVISION OF ACQUISITION WORKFORCE QUALIFICATION 
                   REQUIREMENTS.

       (a) Special Requirements for Members of a Contingency 
     Contracting Force.--(1) Subchapter II of chapter 87 of title 
     10, United States Code, is amended by inserting after section 
     1724 the following new section:

     ``Sec. 1724a. Contingency contracting force: qualification 
       requirements

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

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

                  Subtitle C--Use of Preferred Sources

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

       (a) Conditions for Competition.--(1) Chapter 141 of title 
     10, United States Code, is amended by adding at the end the 
     following:

     ``Sec. 2410n. Products of Federal Prison Industries: 
       procedural requirements

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

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

[[Page 18531]]



     SEC. 822. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       (a) Amendment to Title 10.--(1) Chapter 141 of title 10, 
     United States Code, is amended by inserting after section 
     2381 the following new section:

     ``Sec. 2382. Consolidation of contract requirements: policy 
       and restrictions

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

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

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

       (a) In General.--(1) Chapter 141 of title 10, United States 
     Code, is amended by inserting after section 2402 the 
     following new section:

     ``Sec. 2403. Mentor-Protege Program

       ``(a) Establishment of Program.--The Secretary of Defense 
     shall carry out a program known as the `Mentor-Protege 
     Program'.
       ``(b) Purpose.--The purpose of the program is to provide 
     incentives for major Department of Defense contractors to 
     furnish eligible small business concerns (as defined in 
     subsection (l)(2)) with assistance designed to enhance the 
     capabilities of eligible small business concerns to perform 
     as subcontractors and suppliers under Department of Defense 
     contracts and other contracts and subcontracts in order to 
     increase the participation of such business concerns as 
     subcontractors and suppliers under Department of Defense 
     contracts, other Federal Government contracts, and commercial 
     contracts.
       ``(c) Program Participants.--(1) A business concern meeting 
     the eligibility requirements set out in subsection (d) may 
     enter into agreements under subsection (e) and furnish 
     assistance to eligible small business concerns upon making 
     application to the Secretary of Defense and being approved 
     for participation in the program by the Secretary. A business 
     concern participating in the program pursuant to such an 
     approval shall be known, for the purposes of the program, as 
     a `mentor firm'.
       ``(2) An eligible small business concern may obtain 
     assistance from a mentor firm upon entering into an agreement 
     with the mentor firm as provided in subsection (e). An 
     eligible small business concern may not be a party to more 
     than one agreement to receive such assistance at any time. An 
     eligible small business concern receiving such assistance 
     shall be known, for the purposes of the program, as a 
     `protege firm'.
       ``(3) In entering into an agreement pursuant to subsection 
     (e), a mentor firm may rely in good faith on a written 
     representation of a business concern that such business 
     concern is a small business concern described in subsection 
     (l)(2)(A). The Administrator of the Small Business 
     Administration shall determine the status of such business 
     concern as such a small business concern in the event of a 
     protest regarding the status of the business concern. If at 
     any time the business concern is determined by the 
     Administrator not to be such a small business concern, 
     assistance furnished to the business concern by

[[Page 18532]]

     the mentor firm after the date of the determination may not 
     be considered assistance furnished under the program.
       ``(d) Mentor Firm Eligibility.--Subject to subsection 
     (c)(1), a mentor firm eligible for award of Federal contracts 
     may enter into an agreement with one or more protege firms 
     under subsection (e) and provide assistance under the program 
     pursuant to that agreement if--
       ``(1) during the fiscal year preceding the fiscal year in 
     which the mentor firm enters into the agreement, the total 
     amount of the Department of Defense contracts awarded such 
     mentor firm and the subcontracts awarded such mentor firm 
     under Department of Defense contracts was equal to or greater 
     than $100,000,000; or
       ``(2) the mentor firm demonstrates the capability to assist 
     in the development of protege firms, and is approved by the 
     Secretary of Defense pursuant to criteria specified in the 
     regulations prescribed pursuant to subsection (k).
       ``(e) Mentor-Protege Agreement.--Before providing 
     assistance to a protege firm under the program, a mentor firm 
     shall enter into a mentor-protege agreement with the protege 
     firm regarding the assistance to be provided by the mentor 
     firm. The agreement shall include the following:
       ``(1) A developmental program for the protege firm, in such 
     detail as may be reasonable, including--
       ``(A) factors to assess the protege firm's developmental 
     progress under the program; and
       ``(B) the anticipated number and type of subcontracts to be 
     awarded the protege firm.
       ``(2) A program participation term for any period of not 
     more than three years, except that the term may be a period 
     of up to five years if the Secretary of Defense determines in 
     writing that unusual circumstances justify a program 
     participation term in excess of three years.
       ``(3) Procedures for the protege firm to terminate the 
     agreement voluntarily and for the mentor firm to terminate 
     the agreement for cause.
       ``(f) Forms of Assistance.--A mentor firm may provide a 
     protege firm the following:
       ``(1) Assistance, by using mentor firm personnel, in--
       ``(A) general business management, including organizational 
     management, financial management, and personnel management, 
     marketing, business development, and overall business 
     planning;
       ``(B) engineering and technical matters such as production, 
     inventory control, and quality assurance; and
       ``(C) any other assistance designed to develop the 
     capabilities of the protege firm under the developmental 
     program referred to in subsection (e).
       ``(2) Award of subcontracts on a noncompetitive basis to 
     the protege firm under the Department of Defense or other 
     contracts.
       ``(3) Payment of progress payments for performance of the 
     protege firm under such a subcontract in amounts as provided 
     for in the subcontract, but in no event may any such progress 
     payment exceed 100 percent of the costs incurred by the 
     protege firm for the performance.
       ``(4) Advance payments under such subcontracts.
       ``(5) Loans.
       ``(6) Cash in exchange for an ownership interest in the 
     protege firm, not to exceed 10 percent of the total ownership 
     interest.
       ``(7) Assistance obtained by the mentor firm for the 
     protege firm from one or more of the following:
       ``(A) Small business development centers established 
     pursuant to section 21 of the Small Business Act (15 U.S.C. 
     648).
       ``(B) Entities providing procurement technical assistance 
     pursuant to chapter 142 of this title.
       ``(C) A historically Black college or university or a 
     minority institution of higher education.
       ``(g) Incentives for Mentor Firms.--(1) The Secretary of 
     Defense may provide to a mentor firm reimbursement for the 
     total amount of any progress payment or advance payment made 
     under the program by the mentor firm to a protege firm in 
     connection with a Department of Defense contract awarded the 
     mentor firm.
       ``(2)(A) The Secretary of Defense may provide to a mentor 
     firm reimbursement for the costs of the assistance furnished 
     to a protege firm pursuant to paragraphs (1) and (7) of 
     subsection (f) as provided for in a line item in a Department 
     of Defense contract under which the mentor firm is furnishing 
     products or services to the Department, subject to a maximum 
     amount of reimbursement specified in such contract. The 
     preceding sentence does not apply in a case in which the 
     Secretary of Defense determines in writing that unusual 
     circumstances justify reimbursement using a separate 
     contract.
       ``(B) The determinations made in annual performance reviews 
     of a mentor firm's mentor-protege agreement under subsection 
     (j)(2) shall be a major factor in the determinations of 
     amounts of reimbursement, if any, that the mentor firm is 
     eligible to receive in the remaining years of the program 
     participation term under the agreement.
       ``(C) The total amount reimbursed under this paragraph to a 
     mentor firm for costs of assistance furnished in a fiscal 
     year to a protege firm may not exceed $1,000,000, except in a 
     case in which the Secretary of Defense determines in writing 
     that unusual circumstances justify a reimbursement of a 
     higher amount.
       ``(3)(A) Costs incurred by a mentor firm in providing 
     assistance to a protege firm that are not reimbursed pursuant 
     to paragraph (2) shall be recognized as credit in lieu of 
     subcontract awards for purposes of determining whether the 
     mentor firm attains a subcontracting participation goal 
     applicable to such mentor firm under a Department of Defense 
     contract, under a contract with another executive agency, or 
     under a divisional or company-wide subcontracting plan 
     negotiated with the Department of Defense or another 
     executive agency.
       ``(B) The amount of the credit given a mentor firm for any 
     such unreimbursed costs shall be equal to--
       ``(i) four times the total amount of such costs 
     attributable to assistance provided by entities described in 
     subsection (f)(7);
       ``(ii) three times the total amount of such costs 
     attributable to assistance furnished by the mentor firm's 
     employees; and
       ``(iii) two times the total amount of any other such costs.
       ``(C) Under regulations prescribed pursuant to subsection 
     (k), the Secretary of Defense shall adjust the amount of 
     credit given a mentor firm pursuant to subparagraphs (A) and 
     (B) if the Secretary determines that the firm's performance 
     regarding the award of subcontracts to eligible small 
     business concerns has declined without justifiable cause.
       ``(4) A mentor firm shall receive credit toward the 
     attainment of a subcontracting participation goal applicable 
     to such mentor firm for each subcontract for a product or 
     service awarded under such contract by a mentor firm to a 
     business concern that, except for its size, would be a small 
     business concern owned and controlled by socially and 
     economically disadvantaged individuals, but only if--
       ``(A) the size of such business concern is not more than 
     two times the maximum size specified by the Administrator of 
     the Small Business Administration for purposes of determining 
     whether a business concern furnishing such product or service 
     is a small business concern; and
       ``(B) the business concern formerly had a mentor-protege 
     agreement with such mentor firm that was not terminated for 
     cause.
       ``(h) Relationship to Small Business Act.--(1) For purposes 
     of the Small Business Act, no determination of affiliation or 
     control (either direct or indirect) may be found between a 
     protege firm and its mentor firm on the basis that the mentor 
     firm has agreed to furnish (or has furnished) to its protege 
     firm pursuant to a mentor-protege agreement any form of 
     developmental assistance described in subsection (f).
       ``(2) Notwithstanding section 8 of the Small Business Act 
     (15 U.S.C. 637), the Small Business Administration may not 
     determine an eligible small business concern to be ineligible 
     to receive any assistance authorized under the Small Business 
     Act on the basis that such business concern has participated 
     in the Mentor-Protege Program or has received assistance 
     pursuant to any developmental assistance agreement authorized 
     under such program.
       ``(3) The Small Business Administration may not require a 
     firm that is entering into, or has entered into, an agreement 
     under subsection (e) as a protege firm to submit the 
     agreement, or any other document required by the Secretary of 
     Defense in the administration of the Mentor-Protege Program, 
     to the Small Business Administration for review, approval, or 
     any other purpose.
       ``(i) Participation in Mentor-Protege Program Not To Be a 
     Condition for Award of a Contract or Subcontract.--A mentor 
     firm may not require a business concern to enter into an 
     agreement with the mentor firm pursuant to subsection (e) as 
     a condition for being awarded a contract by the mentor firm, 
     including a subcontract under a contract awarded to the 
     mentor firm.
       ``(j) Reports and Reviews.--(1) The mentor firm and protege 
     firm under a mentor-protege agreement shall submit to the 
     Secretary of Defense an annual report on the progress made by 
     the protege firm in employment, revenues, and participation 
     in Department of Defense contracts during the fiscal year 
     covered by the report. The requirement for submission of an 
     annual report applies with respect to each fiscal year 
     covered by the program participation term under the agreement 
     and each of the two fiscal years following the expiration of 
     the program participation term. The Secretary shall prescribe 
     the timing and form of the annual report.
       ``(2)(A) The Secretary shall conduct an annual performance 
     review of each mentor-protege agreement that provides for 
     reimbursement of costs. The Secretary shall determine on the 
     basis of the review whether--
       ``(i) all costs reimbursed to the mentor firm under the 
     agreement were reasonably incurred to furnish assistance to 
     the protege firm in accordance with the requirements of this 
     section and applicable regulations; and

[[Page 18533]]

       ``(ii) the mentor firm and protege firm accurately reported 
     progress made by the protege firm in employment, revenues, 
     and participation in Department of Defense contracts during 
     the program participation term covered by the mentor-protege 
     agreement and the two fiscal years following the expiration 
     of the program participation term.
       ``(B) The Secretary shall act through the Commander of the 
     Defense Contract Management Command in carrying out the 
     reviews and making the determinations under subparagraph (A).
       ``(k) Regulations and Policies.--(1) The Secretary of 
     Defense shall prescribe regulations to carry out the Mentor-
     Protege Program. The regulations shall include the following:
       ``(A) The requirements set forth in section 8(d) of the 
     Small Business Act (15 U.S.C. 673(d)).
       ``(B) Procedures by which mentor firms may terminate 
     participation in the program.
       ``(2) The Department of Defense policy regarding the 
     Mentor-Protege Program shall be published and maintained as 
     an appendix to the Department of Defense Supplement to the 
     Federal Acquisition Regulation.
       ``(l) Definitions.--In this section:
       ``(1) The term `small business concern' means a business 
     concern that meets the requirements of section 3(a) of the 
     Small Business Act (15 U.S.C. 632(a)) and the regulations 
     promulgated pursuant thereto.
       ``(2) The term `eligible small business concern' is a small 
     business concern that--
       ``(A) is either--
       ``(i) a disadvantaged small business concern; or
       ``(ii) a small business concern owned and controlled by 
     women; and
       ``(B) is eligible for the award of Federal contracts.
       ``(3) The term `disadvantaged small business concern' 
     means--
       ``(A) a small business concern owned and controlled by 
     socially and economically disadvantaged individuals, as 
     defined in section 8(d)(3)(C) of the Small Business Act (15 
     U.S.C. 637(d)(3)(C));
       ``(B) a business entity owned and controlled by an Indian 
     tribe as defined by section 8(a)(13) of the Small Business 
     Act (15 U.S.C. 637(a)(13));
       ``(C) a business entity owned and controlled by a Native 
     Hawaiian Organization as defined by section 8(a)(15) of the 
     Small Business Act (15 U.S.C. 637(a)(15)); or
       ``(D) a qualified organization employing the severely 
     disabled.
       ``(4) The term `small business concern owned and controlled 
     by women' has the meaning given such term in section 
     8(d)(3)(D) of the Small Business Act (15 U.S.C. 
     637(d)(3)(D)).
       ``(5) The term `historically Black college and university' 
     means any of the historically Black colleges and universities 
     referred to in section 2323 of this title.
       ``(6) The term `minority institution of higher education' 
     means an institution of higher education with a student body 
     that reflects the composition specified in paragraphs (3), 
     (4), and (5) of section 312(b) of the Higher Education Act of 
     1965 (20 U.S.C. 1058(b)), as in effect on September 30, 1992.
       ``(7) The term `subcontracting participation goal', with 
     respect to a Department of Defense contract, means a goal for 
     the extent of the participation by eligible small business 
     concerns in the subcontracts awarded under such contract, as 
     established pursuant to section 2323 of this title and 
     section 8(d) of the Small Business Act (15 U.S.C. 637(d)).
       ``(8) The term `qualified organization employing the 
     severely disabled' means a business entity operated on a for-
     profit or nonprofit basis that--
       ``(A) uses rehabilitative engineering to provide employment 
     opportunities for severely disabled individuals and 
     integrates severely disabled individuals into its workforce;
       ``(B) employs severely disabled individuals at a rate that 
     averages not less than 20 percent of its total workforce;
       ``(C) employs each severely disabled individual in its 
     workforce generally on the basis of 40 hours per week; and
       ``(D) pays not less than the minimum wage prescribed 
     pursuant to section 6 of the Fair Labor Standards Act of 1938 
     (29 U.S.C. 206) to those employees who are severely disabled 
     individuals.
       ``(9) The term `severely disabled individual' means an 
     individual who has a physical or mental disability which 
     constitutes a substantial handicap to employment and which, 
     in accordance with criteria prescribed by the Committee for 
     Purchase From People Who Are Blind or Severely Disabled 
     established by the first section of the Javits-Wagner-O'Day 
     Act (41 U.S.C. 46), is of such a nature that the individual 
     is otherwise prevented from engaging in normal competitive 
     employment.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2402 the following new item:

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

     SEC. 824. HUBZONE SMALL BUSINESS CONCERNS.

       Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) 
     is amended--
       (1) by redesignating paragraphs (4) through (7) as 
     paragraphs (5) through (8), respectively; and
       (2) by inserting after paragraph (3) the following:
       ``(4) Rule of construction relating to citizenship.--

[[Page 18534]]

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

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

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

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


       (c) Adjustments to Requirement for Determination of 
     Quantity for Low-Rate Initial Production.--Section 2400(a) of 
     title 10, United States Code, is amended--
       (1) by striking ``milestone II'' each place it appears in 
     paragraphs (1)(A), (2), (4) and (5) and inserting ``milestone 
     B''; and
       (2) in paragraph (2), by striking ``engineering and 
     manufacturing development'' and inserting ``system 
     development and demonstration''.
       (d) Adjustments to Requirements for Baseline Description 
     and the Related Limitation.--Section 2435 of title 10, United 
     States Code, is amended--
       (1) in subsection (b), by striking ``engineering and 
     manufacturing development'' and inserting ``system 
     development and demonstration''; and
       (2) in subsection (c)--
       (A) in paragraph (1), by striking ``demonstration and 
     validation'' and inserting ``system development and 
     demonstration'';
       (B) in paragraph (2), by striking ``engineering and 
     manufacturing development'' and inserting ``production and 
     deployment''; and
       (C) in paragraph (3), by striking ``production and 
     deployment'' and inserting ``full rate production''.

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

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

     SEC. 833. INSENSITIVE MUNITIONS PROGRAM.

       (a) Requirement for Program.--Chapter 141 of title 10, 
     United States Code, is amended by inserting after section 
     2404 the following new section 2405:

     ``Sec. 2405. Insensitive munitions program

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

``2405. Insensitive munitions program.''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                Subtitle A--Organization and Management

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

       (a) Establishment of Position.--(1) Chapter 4 of title 10, 
     United States Code, is amended by inserting after section 136 
     the following new section:

     ``Sec. 136a. Deputy Under Secretary of Defense for Personnel 
       and Readiness

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

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

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

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

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

       (a) Findings.--Congress makes the following findings:
       (1) The Goldwater-Nichols Department of Defense 
     Reorganization Act of 1986 envisioned that an officer would 
     be assigned to serve as the commander of a combatant command 
     on the basis of being the best qualified officer for the 
     assignment rather than the best qualified officer of the 
     armed force that has historically supplied an officer to 
     serve in that assignment.
       (2) In order to provide for greater competition among the 
     Armed Forces for selection of officers for assignment as the 
     commanders of the combatant commands and assignment to 
     certain other joint positions in the grade of general or 
     admiral, Congress provided

[[Page 18535]]

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

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

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

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

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

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

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

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

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

      Subtitle B--Organization and Management of Space Activities

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

       (a) Authority of Secretary of Defense To Establish 
     Position.--Upon the direction of the President, the Secretary 
     of Defense may, subject to subsection (b), establish in the 
     Office of the Secretary of Defense the position of Under 
     Secretary of Defense for Space, Intelligence, and 
     Information. If the position is so established, the Under 
     Secretary of Defense for Space, Intelligence, and Information 
     shall perform duties and exercise powers as set forth under 
     section 137 of title 10, United States Code, as amended by 
     subsection (d).
       (b) Deadline for Exercise of Authority.--The Secretary may 
     not exercise the authority in subsection (a) after December 
     31, 2003.
       (c) Notice of Exercise of Authority.--If the authority in 
     subsection (a) is exercised, the Secretary shall immediately 
     notify Congress of the establishment of the position of Under 
     Secretary of Defense for Space, Intelligence, and 
     Information, together with the date on which the position is 
     established.
       (d) Nature of Position.--
       (1) In general.--Effective as of the date provided for in 
     paragraph (7), chapter 4 of title 10, United States Code, is 
     amended--
       (A) by redesignating section 137 as section 139a and by 
     transferring such section (as so redesignated) within such 
     chapter so as to appear after section 139; and
       (B) by inserting after section 136 the following new 
     section 137:

     ``Sec. 137. Under Secretary of Defense for Space, 
       Intelligence, and Information

       ``(a) There is an Under Secretary of Defense for Space, 
     Intelligence, and Information, appointed from civilian life 
     by the President, by and with the advice and consent of the 
     Senate.
       ``(b) Subject to the authority, direction, and control of 
     the Secretary of Defense, the Under Secretary of Defense for 
     Space, Intelligence, and Information shall perform such 
     duties and exercise such powers relating to the space, 
     intelligence, and information programs and activities of the 
     Department of Defense as the Secretary of Defense may 
     prescribe. The duties and powers prescribed for the Under 
     Secretary shall include the following:
       ``(1) In coordination with the Under Secretary of Defense 
     for Policy, the establishment of policy on space.
       ``(2) In coordination with the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics, the acquisition 
     of space systems.
       ``(3) The deployment and use of space assets.
       ``(4) The oversight of research, development, acquisition, 
     launch, and operation of space, intelligence, and information 
     assets.
       ``(5) The coordination of military intelligence activities 
     within the Department.
       ``(6) The coordination of intelligence activities of the 
     Department and the intelligence community in order to meet 
     the long-term intelligence requirements of the United States.
       ``(7) The coordination of space activities of the 
     Department with commercial and civilian space activities.
       ``(c) The Secretary of Defense shall designate the Under 
     Secretary of Defense for Space, Intelligence, and Information 
     as the Chief Information Officer of the Department of Defense 
     under section 3506(a)(2)(B) of title 44.
       ``(d) The Under Secretary of Defense for Space, 
     Intelligence, and Information takes precedence in the 
     Department of Defense after the Under Secretary of Defense 
     for Personnel and Readiness.''.
       (2) Additional assistant secretary of defense.--Section 
     138(a) of that title is amended by striking ``nine Assistant 
     Secretaries of Defense'' and inserting ``ten Assistant 
     Secretaries of Defense''.
       (3) Duties of assistant secretaries of defense for space, 
     intelligence, and information.--Section 138(b) of that title 
     is amended by adding at the end the following new paragraph:
       ``(7) Two of the Assistant Secretaries shall have as their 
     principal duties supervision of activities relating to space, 
     intelligence, and information. The Assistant Secretaries 
     shall each report to the Under Secretary of Defense for 
     Space, Intelligence, and Information in the performance of 
     such duties.''.
       (4) Conforming amendments.--Section 131(b) of that title is 
     amended--
       (A) by redesignating paragraphs (6) through (11) as 
     paragraphs (7) through (12), respectively; and
       (B) by inserting after paragraph (5) the following new 
     paragraph (6):
       ``(6) The Under Secretary of Defense for Space, 
     Intelligence, and Information.''.
       (5) Pay levels.--(A) Section 5314 of title 5, United States 
     Code, is amended by inserting after ``Under Secretary of 
     Defense for Personnel and Readiness'' the following:
       ``Under Secretary of Defense for Space, Intelligence, and 
     Information.''.
       (B) Section 5315 of title 5, United States Code, is amended 
     in the item relating to Assistant Secretaries of Defense by 
     striking ``(9)'' and inserting ``(10)''.
       (6) Clerical amendments.--The table of sections at the 
     beginning of chapter 4 of title 10, United States Code, is 
     amended--
       (A) by striking the item relating to section 137 and 
     inserting the following new item:

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

``139a. Director of Defense Research and Engineering.''.
       (7) Effective date.--The amendments made by this subsection 
     shall take effect as of the date specified in the 
     notification provided by the Secretary of Defense to Congress 
     under subsection (c) of the exercise of the authority in 
     subsection (a).
       (e) Report.--(1) Not later than 30 days before an exercise 
     of the authority provided in subsection (a), the President 
     shall submit to Congress a report on the proposed 
     organization of the office of the Under Secretary of Defense 
     for Space, Intelligence, and Information.
       (2) If the Secretary of Defense has not exercised the 
     authority granted in subsection (a)

[[Page 18536]]

     on the date that is one year after the date of the enactment 
     of this Act, the Secretary shall submit to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     on that date a report describing the actions taken by the 
     Secretary to address the problems in the management and 
     organization of the Department of Defense for space 
     activities that are identified by the Commission To Assess 
     United States National Security Space Management and 
     Organization in the report of the Commission submitted under 
     section 1623 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 113 Stat. 815).

     SEC. 912. RESPONSIBILITY FOR SPACE PROGRAMS.

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

                     ``CHAPTER 135--SPACE PROGRAMS

``Sec.
``2271. Responsibility for space programs.

     ``Sec. 2271. Responsibility for space programs

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

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

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

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

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

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

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

       (a) In General.--Chapter 845 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

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

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

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

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

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

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

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

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

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

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

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

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

       (a) Fiscal Year 2002 Limitation.--The total amount 
     contributed by the Secretary of Defense in fiscal year 2002 
     for the common-funded budgets of NATO may be any amount up 
     to, but not in excess of, the amount specified in subsection 
     (b) (rather than the maximum amount that would otherwise be 
     applicable to those contributions under the fiscal year 1998 
     baseline limitation).
       (b) Total Amount.--The amount of the limitation applicable 
     under subsection (a) is the sum of the following:

[[Page 18537]]

       (1) The amounts of unexpended balances, as of the end of 
     fiscal year 2001, of funds appropriated for fiscal years 
     before fiscal year 2002 for payments for those budgets.
       (2) The amount specified in subsection (c)(1).
       (3) The amount specified in subsection (c)(2).
       (4) The total amount of the contributions authorized to be 
     made under section 2501.
       (c) Authorized Amounts.--Amounts authorized to be 
     appropriated by titles II and III of this Act are available 
     for contributions for the common-funded budgets of NATO as 
     follows:
       (1) Of the amount provided in section 201(1), $708,000 for 
     the Civil Budget.
       (2) Of the amount provided in section 301(1), $175,849,000 
     for the Military Budget.
       (d) Definitions.--For purposes of this section:
       (1) Common-funded budgets of nato.--The term ``common-
     funded budgets of NATO'' means the Military Budget, the 
     Security Investment Program, and the Civil Budget of the 
     North Atlantic Treaty Organization (and any successor or 
     additional account or program of NATO).
       (2) Fiscal year 1998 baseline limitation.--The term 
     ``fiscal year 1998 baseline limitation'' means the maximum 
     annual amount of Department of Defense contributions for 
     common-funded budgets of NATO that is set forth as the annual 
     limitation in section 3(2)(C)(ii) of the resolution of the 
     Senate giving the advice and consent of the Senate to the 
     ratification of the Protocols to the North Atlantic Treaty of 
     1949 on the Accession of Poland, Hungary, and the Czech 
     Republic (as defined in section 4(7) of that resolution), 
     approved by the Senate on April 30, 1998.

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

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

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

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

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

       (a) Establishment of Financial Management Modernization 
     Executive Committee.--(1) The Secretary of Defense shall 
     establish a Financial Management Modernization Executive 
     Committee.
       (2) The Committee shall be composed of the Under Secretary 
     of Defense (Comptroller), the Under Secretary of Defense 
     (Acquisition, Technology, and Logistics), the Under Secretary 
     of Defense (Personnel and Readiness), the chief information 
     officer of the Department of Defense, and other key managers 
     of the Department of Defense (including key managers in 
     Defense Agencies and military departments) who are designated 
     by the Secretary.
       (3) The Under Secretary of Defense (Comptroller) shall be 
     the Chairman of the Committee.
       (4) The Committee shall be accountable to the Senior 
     Executive Council composed of

[[Page 18538]]

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

     ``Sec. 2222. Annual financial management improvement plan''.

       (B) The table of sections at the beginning of chapter 131 
     of such title is amended by striking the item relating to 
     section 2222 and inserting the following new item:

``2222. Annual financial management improvement plan.''.

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

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

       (a) Funding for Initiatives.--Chapter 6 of title 10, United 
     States Code, is amended by inserting after section 166a the 
     following new section:

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

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

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

     SEC. 1009. AUTHORIZATION OF ADDITIONAL FUNDS.

       (a) Authorization.--$1,300,000,000 is hereby authorized, in 
     addition to the funds authorized elsewhere in division A of 
     this Act, for whichever of the following purposes the 
     President determines to be in the national security interests 
     of the United States--

[[Page 18539]]

       (1) research, development, test and evaluation for 
     ballistic missile defense; and
       (2) activities for combating terrorism.

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

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

                      Subtitle B--Strategic Forces

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

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

     SEC. 1012. BOMBER FORCE STRUCTURE.

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

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

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

                   Subtitle C--Reporting Requirements

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

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

     SEC. 1022. REPORT ON COMBATING TERRORISM.

       (a) Requirement for Report.--The Secretary of Defense shall 
     submit to Congress a report on the Department of Defense 
     policies, plans, and procedures for combating terrorism.
       (b) Content.--(1) The Secretary shall identify and explain 
     in the report the Department of Defense structure, strategy, 
     roles, relationships, and responsibilities for combating 
     terrorism.
       (2) The report shall also include a discussion of the 
     following matters:
       (A) The policies, plans, and procedures relating to how the 
     Assistant Secretary of Defense for Special Operations and Low 
     Intensity Conflict and the Joint Task Force-Civil Support of 
     the Joint Forces Command are to perform, and coordinate the 
     performance of, their functions for combating terrorism 
     with--
       (i) the various teams in the Department of Defense that 
     have responsibilities to respond to acts or threats of 
     terrorism, including--
       (I) the weapons of mass destruction civil support teams 
     when operating as the National Guard under the command of the 
     Governor of a State, the Governor of Puerto Rico, or the 
     Commanding General of the District of Columbia National 
     Guard, as the case may be; and
       (II) the weapons of mass destruction civil support teams 
     when operating as the Army National Guard of the United 
     States or the Air National Guard of the United States under 
     the command of the President;
       (ii) the Army's Director of Military Support;
       (iii) the various teams in other departments and agencies 
     of the Federal Government that have responsibilities to 
     respond to acts or threats of terrorism;
       (iv) the organizations outside the Federal Government, 
     including any private sector entities, that are to function 
     as first responders to acts or threats of terrorism; and
       (v) the units and organizations of the reserve components 
     of the Armed Forces that have missions relating to combating 
     terrorism.
       (B) Any preparedness plans to combat terrorism that are 
     developed for installations of the Department of Defense by 
     the commanders of the installations and the integration of 
     those plans with the plans of the teams and other 
     organizations described in subparagraph (A).
       (C) The policies, plans, and procedures for using and 
     coordinating the Joint Staff's integrated vulnerability 
     assessment teams inside the United States and outside the 
     United States.

[[Page 18540]]

       (D) The missions of Fort Leonard Wood and other 
     installations for training units, weapons of mass destruction 
     civil support teams and other teams, and individuals in 
     combating terrorism.
       (3) The report shall also include the Secretary's views on 
     the appropriate number and missions of the Department of 
     Defense teams referred to in paragraph (2)(A)(i).
       (c) Time for Submittal.--The Secretary shall submit the 
     report under this section not later than 180 days after the 
     date of the enactment of this Act.

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

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

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

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

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

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

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

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

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

       (a) Study Required.--The Comptroller General of the United 
     States shall conduct a study of the interconnectivity between 
     the voice, data, and video networks of the National Guard 
     Distributive Training Technology Project (DTTP) and other 
     Department of Defense, Federal, State, and private voice, 
     data, and video networks, including the networks of the 
     distance learning project of the Army known as Classroom XXI, 
     networks of public and private institutions of higher 
     education, and networks of the Federal Emergency Management 
     Agency and other Federal, State, and local emergency 
     preparedness and response agencies.
       (b) Purposes.--The purposes of the study under subsection 
     (a) are as follows:
       (1) To identify existing capabilities, and future 
     requirements, for transmission of voice, data, and video for 
     purposes of operational support of disaster response, 
     homeland defense, command and control of premobilization 
     forces, training of military personnel, training of first 
     responders, and shared use of the networks of the 
     Distributive Training Technology Project by government and 
     members of the networks.
       (2) To identify appropriate connections between the 
     networks of the Distributive Training Technology Project and 
     networks of the Federal Emergency Management Agency, State 
     emergency management agencies, and other Federal and State 
     agencies having disaster response functions.
       (3) To identify requirements for connectivity between the 
     networks of the Distributive Training Technology Project and 
     other Department of Defense, Federal, State, and private 
     networks referred to in subsection (a) in the event of a 
     significant disruption of providers of public services.
       (4) To identify means of protecting the networks of the 
     Distributive Training Technology Project from outside 
     intrusion, including an assessment of the manner in which so 
     protecting the networks facilitates the mission of the 
     National Guard and homeland defense.
       (5) To identify impediments to interconnectivity between 
     the networks of the Distributive Training Technology Project 
     and such other networks.
       (6) To identify means of improving interconnectivity 
     between the networks of the Distributive Training Technology 
     Project and such other networks.
       (c) Particular Matters.--In conducting the study, the 
     Comptroller General shall consider, in particular, the 
     following:
       (1) Whether, and to what extent, national security concerns 
     impede interconnectivity between the networks of the 
     Distributive Training Technology Project and other Department 
     of Defense, Federal, State, and private networks referred to 
     in subsection (a).
       (2) Whether, and to what extent, limitations on the 
     technological capabilities of the Department of Defense 
     impede interconnectivity between the networks of the 
     Distributive Training Technology Project and such other 
     networks.
       (3) Whether, and to what extent, other concerns or 
     limitations impede interconnectivity between the networks of 
     the Distributive Training Technology Project and such other 
     networks.
       (4) Whether, and to what extent, any national security, 
     technological, or other concerns justify limitations on 
     interconnectivity between the networks of the Distributive 
     Training Technology Project and such other networks.
       (5) Potential improvements in National Guard or other 
     Department technologies in order to improve interconnectivity 
     between the networks of the Distributive Training Technology 
     Project and such other networks.

[[Page 18541]]

       (d) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives a report on the study conducted 
     under subsection (a). The report shall describe the results 
     of the study, and include any recommendations that the 
     Comptroller General considers appropriate in light of the 
     study.

                Subtitle D--Armed Forces Retirement Home

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

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

     SEC. 1042. DEFINITIONS.

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

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

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

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

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

     SEC. 1044. CHIEF OPERATING OFFICER.

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

     ``SEC. 1515. CHIEF OPERATING OFFICER.

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

[[Page 18542]]

       (2) Section 1519(c) (24 U.S.C. 419(c)), relating to 
     authority to invest funds in the Armed Forces Retirement Home 
     Trust Fund, is amended by striking ``Director'' and inserting 
     ``Chief Operating Officer''.
       (3) Section 1521(a) (24 U.S.C. 421(a)), relating to payment 
     of residents for services, is amended by striking ``Chairman 
     of the Armed Forces Retirement Board'' and inserting ``Chief 
     Operating Officer''.
       (4) Section 1522 (24 U.S.C. 422), relating to authority to 
     accept certain uncompensated services, is amended--
       (A) in subsection (a)--
       (i) by striking ``Chairman of the Retirement Home Board or 
     the Director of each establishment'' and inserting ``Chief 
     Operating Officer or the Director of a facility''; and
       (ii) by striking ``unless'' and all that follows through 
     ``Retirement Home Board'';
       (B) in subsection (b)(1)--
       (i) by striking ``Chairman of the Retirement Home Board or 
     the Director of the establishment'' and inserting ``Chief 
     Operating Officer or the Director of a facility''; and
       (ii) by inserting ``offering the services'' after ``notify 
     the person'';
       (C) in subsection (b)(2), by striking ``Chairman'' and 
     inserting ``Chief Operating Officer'';
       (D) in subsection (c), by striking ``Chairman of the 
     Retirement Home Board or the Director of an establishment'' 
     and inserting ``Chief Operating Officer or the Director of a 
     facility''; and
       (E) in subsection (e)--
       (i) by striking ``Chairman of the Retirement Board or the 
     Director of the establishment'' in the first sentence and 
     inserting ``Chief Operating Officer or the Director of a 
     facility''; and
       (ii) by striking ``Chairman'' in the second sentence and 
     inserting ``Chief Operating Officer''.
       (5) Section 1523(b) (24 U.S.C. 423(b)), relating to 
     preservation of historic buildings and grounds at the Armed 
     Forces Retirement Home--Washington, is amended by striking 
     ``Chairman of the Retirement Home Board'' and inserting 
     ``Chief Operating Officer''.

     SEC. 1045. RESIDENTS OF RETIREMENT HOME.

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

     ``SEC. 1514. FEES PAID BY RESIDENTS.

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

     SEC. 1046. LOCAL BOARDS OF TRUSTEES.

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

     ``SEC. 1516. LOCAL BOARDS OF TRUSTEES.

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

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

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

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

       ``(a) Appointment.--The Secretary of Defense shall appoint 
     a Director and a Deputy

[[Page 18543]]

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

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

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

     SEC. 1049. TRANSITIONAL PROVISIONS.

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

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

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

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

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

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

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

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

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

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

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

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

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

``Sec. 1501. Short title.
``Sec. 1502. Definitions.

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

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

                   ``Part B--Transitional Provisions

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

     SEC. 1051. AMENDMENTS OF OTHER LAWS.

       (a) Employee Performance Appraisals.--Section 4301(2) of 
     title 5, United States Code, is amended--
       (1) by striking ``or'' at the end of subparagraph (G);
       (2) by striking ``and'' at the end of subparagraph (H) and 
     inserting ``or''; and
       (3) by inserting at the end the following new subparagraph:
       ``(I) the Chief Operating Officer and the Deputy Directors 
     of the Armed Forces Retirement Home; and''.
       (b) Exclusion of Certain Officers From Certain Limitations 
     Applicable to General and Flag Officers on Active Duty.--(1) 
     Section 525 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(e) An officer while serving as a Director of the Armed 
     Forces Retirement Home, if serving in the grade of major 
     general or rear admiral, is in addition to the number that 
     would otherwise be permitted for that officer's armed force 
     for that grade under subsection (a).''.

[[Page 18544]]

       (2)(A) Section 526 of such title is amended by adding at 
     the end the following new subsection:
       ``(e) Exclusion of Directors of Armed Forces Retirement 
     Home.--The limitations of this section do not apply to a 
     general or flag officer while the officer is assigned as the 
     Director of a facility of the Armed Forces Retirement 
     Home.''.
       (B) Subsection (d) of such section is amended by inserting 
     ``Reserve Component'' after ``Exclusion of Certain''.
       (3) Section 688(e)(2) of such title is amended by adding at 
     the end the following new subparagraph:
       ``(D) A general officer or flag officer assigned as the 
     Director of a facility of the Armed Forces Retirement Home 
     for the period of active duty to which ordered.''.
       (4) Section 690 of title 10, United States Code, is 
     amended--
       (A) in subsection (a)--
       (i) by striking the second sentence and inserting the 
     following: ``The following officers are not counted for the 
     purposes of this subsection:''; and
       (ii) by adding at the end the following:
       ``(1) A retired officer ordered to active duty for a period 
     of 60 days or less.
       ``(2) A general or flag officer who is assigned as the 
     Director of a facility of the Armed Forces Retirement Home 
     for the period of active duty to which ordered.''; and
       (B) in subsection (b), by adding at the end of paragraph 
     (2) the following new subparagraph:
       ``(E) A general officer or flag officer assigned as the 
     Director of a facility of the Armed Forces Retirement Home 
     for the period of active duty to which ordered.''.

                       Subtitle E--Other Matters

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

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

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

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

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

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

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

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

     SEC. 1065. RETENTION OF TRAVEL PROMOTIONAL ITEMS.

       (a) In General.--To the extent provided in subsection (b), 
     a Federal employee, member of the foreign service, member of 
     a uniformed service, any family member or dependent of such 
     an employee or member, or other individual traveling at 
     Government expense who receives a promotional item (including 
     frequent flyer miles, upgrades, or access to carrier clubs or 
     facilities) as a result of using travel or transportation 
     services procured by the United States or accepted under 
     section 1353 of title 31, United States Code, may retain the 
     promotional item for personal use if the promotional item is 
     obtained under the same terms as those offered to the general 
     public and at no additional cost to the Government.
       (b) Applicability to Executive Branch Only.--Subsection 
     (a)--

[[Page 18545]]

       (1) applies only to travel that is at the expense of the 
     executive branch; and
       (2) does not apply to travel by any officer, employee, or 
     other official of the Government outside the executive 
     branch.
       (c) Conforming Amendment.--Section 6008 of the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355; 5 
     U.S.C. 5702 note) is amended by adding at the end the 
     following new subsection:
       ``(d) Inapplicability to Executive Branch.--The guidelines 
     issued under subsection (a) and the requirement under 
     subsection (b) shall not apply to any agency of the executive 
     branch or to any Federal employee or other personnel in the 
     executive branch.''.
       (d) Applicability.--This section shall apply with respect 
     to promotional items received before, on, or after the date 
     of enactment of this Act.

     SEC. 1066. RADIATION EXPOSURE COMPENSATION ACT MANDATORY 
                   APPROPRIATIONS.

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

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

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

     SEC. 1068. SMALL BUSINESS PROCUREMENT COMPETITION.

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

[[Page 18546]]



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

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

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

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

     SEC. 1071. ASSISTANCE FOR FIREFIGHTERS.

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

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

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

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

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

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

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

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

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

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

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

[[Page 18547]]

       ``(2) Applicability.--Emergency limits established under 
     paragraph (1) shall preempt any inconsistent State vehicle 
     weight limits.''.

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

                   Subtitle A--Intelligence Personnel

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

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

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

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

               Subtitle B--Matters Relating to Retirement

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

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

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

       (C) The item relating to such section in the table of 
     contents at the beginning of chapter 84 of title 5, United 
     States Code, is amended to read as follows:

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

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

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

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

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

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

                       Subtitle C--Other Matters

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

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

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

       (a) Requirement for Study.--The Comptroller General shall 
     carry out a study of the adequacy of the pay and other 
     elements of the compensation provided for teachers in the 
     defense dependents' education system established under the 
     Defense Dependents' Education Act of 1978 (20 U.S.C. 921 et 
     seq.).

[[Page 18548]]

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

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

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

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

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

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

       (a) Authority To Exempt.--Chapter 81 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

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

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

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

     SEC. 1126. PROFESSIONAL CREDENTIALS.

       (a) In General.--Chapter 57 of title 5, United States Code, 
     as amended by this Act, is amended by adding at the end the 
     following:

     ``Sec. 5758. Expenses for credentials

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

``5758. Expenses for credentials.''.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

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

[[Page 18549]]

     Threat Reduction programs shall be available for obligation 
     for three fiscal years.

     SEC. 1202. FUNDING ALLOCATIONS.

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

     SEC. 1203. CHEMICAL WEAPONS DESTRUCTION.

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

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

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

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

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

                       Subtitle B--Other Matters

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

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

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

       (a) Eligibility of Friendly Foreign Countries.--Section 
     2350a of title 10, United States Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``(1)'' after ``(a) Authority To Engage in 
     Cooperative R&D Proj-
     ects.--'';
       (B) by striking ``major allies of the United States or NATO 
     organizations'' and inserting ``countries or organizations 
     referred to in paragraph (2)''; and
       (C) by adding at the end the following new paragraph:
       ``(2) The countries and organizations with which the 
     Secretary may enter into a memorandum of agreement (or other 
     formal agreement) under paragraph (1) are as follows:
       ``(A) The North Atlantic Treaty Organization.
       ``(B) A NATO organization.
       ``(C) A member nation of the North Atlantic Treaty 
     Organization.
       ``(D) A major non-NATO ally.
       ``(E) Any other friendly foreign country.'';
       (2) in subsection (b), by striking ``its major non-NATO 
     allies'' and inserting ``a country or organization referred 
     to in subsection (a)(2)'';
       (3) in subsection (d)--
       (A) in paragraph (1), by striking ``the major allies of the 
     United States'' and inserting ``countries and organizations 
     referred to in subsection (a)(2)''; and
       (B) in paragraph (2)--
       (i) by striking ``major ally of the United States'' and 
     inserting ``country or organization referred to in subsection 
     (a)(2)''; and
       (ii) by striking ``ally's'' and inserting ``country's or 
     organization's'';
       (4) in subsection (e)(2)--
       (A) in subparagraph (A), by striking ``one or more of the 
     major allies of the United States'' and inserting ``any 
     country or organization referred to in subsection (a)(2)'';
       (B) in subparagraph (B), by striking ``major allies of the 
     United States or NATO organizations'' and inserting 
     ``countries and organizations referred to in subsection 
     (a)(2)'';
       (C) in subparagraph (C), by striking ``major allies of the 
     United States'' and inserting ``countries and organizations 
     referred to in subsection (a)(2)''; and
       (D) in subparagraph (D), by striking ``major allies of the 
     United States'' and inserting ``countries and organizations 
     referred to in subsection (a)(2)'';
       (5) paragraphs (1)(A) and (4)(A) of subsection (g), by 
     striking ``major allies of the United States and other 
     friendly foreign

[[Page 18550]]

     countries'' and inserting ``countries referred to in 
     subsection (a)(2)''; and
       (6) in subsection (i)--
       (A) in paragraph (1), by striking ``major allies of the 
     United States or NATO organizations'' and inserting 
     ``countries and organizations referred to in subsection 
     (a)(2)'';
       (B) by striking paragraph (2); and
       (C) by redesignating paragraph (4) as paragraph (2), and by 
     transferring that paragraph, as so redesignated, within that 
     subsection and inserting the paragraph after paragraph (1).
       (b) Delegation of Authority To Determine Eligibility of 
     Projects.--Subsection (b)(2) of such section is amended by 
     striking ``or the Under Secretary of Defense for Acquisition 
     and Technology'' and inserting ``and to one other official of 
     the Department of Defense''.
       (c) Revision of Requirement for Annual Report on Eligible 
     Countries.--Subsection (f)(2) of such section is amended to 
     read as follows:
       ``(2) Not later than January 1 of each year, the Secretary 
     of Defense shall submit to the Committees on Armed Services 
     and on Foreign Relations of the Senate and to the Committees 
     on Armed Services and on International Relations of the House 
     of Representatives a report specifying--
       ``(A) the countries that are eligible to participate in a 
     cooperative project agreement under this section; and
       ``(B) the criteria used to determine the eligibility of 
     such countries.''.
       (d) Conforming Amendments.--(1) The heading of such section 
     is amended to read as follows:

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

       (2) The item relating to such section in the table of 
     sections at the beginning of subchapter II of chapter 138 of 
     title 10, United States Code, is amended to read as follows:

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

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

       (a) Authority.--Chapter 138 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

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

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

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

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

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

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

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

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

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

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

       (a) Transfers by Grant.--The President is authorized to 
     transfer vessels to foreign countries on a grant basis under 
     section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321j) as follows:
       (1) Poland.--To the Government of Poland, the OLIVER HAZARD 
     PERRY class guided missile frigate WADSWORTH (FFG 9).
       (2) Turkey.--To the Government of Turkey, the KNOX class 
     frigates CAPODANNO (FF 1093), THOMAS C. HART (FF 1092), 
     DONALD B. BEARY (FF 1085), McCANDLESS (FF 1084), REASONER (FF 
     1063), and BOWEN (FF 1079).
       (b) Transfers by Sale.--The President is authorized to 
     transfer vessels to foreign governments and foreign 
     governmental entities on a sale basis under section 21 of the 
     Arms Export Control Act (22 U.S.C. 2761) as follows:
       (1) Taiwan.--To the Taipei Economic and Cultural 
     Representative Office in the United States (which is the 
     Taiwan instrumentality designated pursuant to section 10(a) 
     of the Taiwan Relations Act), the KIDD class guided missile 
     destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT (DDG 
     995), and CHANDLER (DDG 996).
       (2) Turkey.--To the Government of Turkey, the OLIVER HAZARD 
     PERRY class

[[Page 18551]]

     guided missile frigates ESTOCIN (FFG 15) and SAMUEL ELIOT 
     MORISON (FFG 13).
       (c) Additional Congressional Notification Not Required.--
     Except as provided in subsection (d), the following 
     provisions do not apply with respect to transfers authorized 
     by this section:
       (1) Section 516(f) of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2321j(f)).
       (2) Section 524 of the Foreign Operations, Export 
     Financing, and Related Programs Appropriation Act, 2001 (as 
     enacted by Public Law 106-429; 114 Stat. 1900A-30) and any 
     similar successor provision.
       (d) Grants Not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to another country on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to 
     authority provided by subsection (a) shall not be counted for 
     the purposes of subsection (g) of that section in the 
     aggregate value of excess defense articles transferred to 
     countries under that section in any fiscal year.
       (e) Costs of Transfers on Grant Basis.--Any expense 
     incurred by the United States in connection with a transfer 
     authorized by this section shall be charged to the recipient 
     (notwithstanding section 516(e)(1) of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2321j(e)(1))) in the case of a 
     transfer authorized to be made on a grant basis under 
     subsection (a).
       (f) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, that the country to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that country, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (g) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the 2-
     year period beginning on the date of the enactment of this 
     Act.

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

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

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

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

     SEC. 1219. ALLIED DEFENSE BURDENSHARING.

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

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

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

         TITLE XIII--CONTINGENT AUTHORIZATION OF APPROPRIATIONS

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

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

     SEC. 1302. REDUCTIONS.

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

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

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

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

                            TITLE XXI--ARMY

     SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(1), the Secretary of the Army may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:

                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                      State                                 Installation or location                 Amount
----------------------------------------------------------------------------------------------------------------
Alabama.........................................  Anniston Army Depot........................         $5,150,000
                                                  Fort Rucker................................        $11,400,000

[[Page 18552]]

 
                                                  Redstone Arsenal...........................         $7,200,000
Alaska..........................................  Fort Richardson............................       $115,000,000
                                                  Fort Wainwright............................        $27,200,000
Arizona.........................................  Fort Huachuca..............................         $6,100,000
Colorado........................................  Fort Carson................................        $66,000,000
District of Columbia............................  Fort McNair................................        $11,600,000
Georgia.........................................  Fort Benning...............................        $23,900,000
                                                  Fort Gillem................................        $34,600,000
                                                  Fort Gordon................................        $34,000,000
                                                  Fort Stewart/Hunter Army Air Field.........        $39,800,000
Hawaii..........................................  Navy Public Works Center, Pearl Harbor.....        $11,800,000
                                                  Pohakuloa Training Facility................         $6,600,000
                                                  Wheeler Army Air Field.....................        $50,000,000
Illinois........................................  Rock Island Arsenal........................         $3,500,000
Kansas..........................................  Fort Riley.................................        $10,900,000
Kentucky........................................  Fort Campbell..............................        $88,900,000
                                                  Fort Knox..................................        $11,600,000
Louisiana.......................................  Fort Polk..................................        $21,200,000
Maryland........................................  Aberdeen Proving Ground....................        $58,300,000
                                                  Fort Meade.................................         $5,800,000
Missouri........................................  Fort Leonard Wood..........................         $7,850,000
New Jersey......................................  Fort Monmouth..............................        $20,000,000
New Mexico......................................  White Sands Missile Range..................         $7,600,000
New York........................................  Fort Drum..................................        $37,850,000
North Carolina..................................  Fort Bragg.................................        $21,300,000
                                                  Sunny Point Military Ocean Terminal........        $11,400,000
Oklahoma........................................  Fort Sill..................................        $40,100,000
South Carolina..................................  Fort Jackson...............................        $62,000,000
Texas...........................................  Fort Hood..................................        $86,200,000
                                                  Fort Sam Houston...........................         $2,250,000
Virginia........................................  Fort Belvoir...............................        $35,950,000
                                                  Fort Eustis................................        $34,650,000
                                                  Fort Lee...................................        $23,900,000
Washington......................................  Fort Lewis.................................       $238,200,000
                                                                                              ------------------
                                                    Total:...................................     $1,279,500,000
----------------------------------------------------------------------------------------------------------------


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

                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Area Support Group,         $36,000,000
                                  Bamberg.
                                 Area Support Group,         $13,500,000
                                  Darmstadt.
                                 Baumholder.............      $9,000,000
                                 Hanau..................      $7,200,000
                                 Heidelberg.............     $15,300,000
                                 Mannheim...............     $16,000,000
                                 Wiesbaden Air Base.....     $26,300,000
Korea..........................  Camp Carroll...........     $16,593,000
                                 Camp Casey.............      $8,500,000
                                 Camp Hovey.............     $35,750,000
                                 Camp Humphreys.........     $14,500,000
                                 Camp Jackson...........      $6,100,000
                                 Camp Stanley...........     $28,000,000
Kwajalein......................  Kwajalein Atoll........     $11,000,000
                                                         ---------------
                                   Total:...............    $243,743,000
------------------------------------------------------------------------

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

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

     SEC. 2102. FAMILY HOUSING.

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

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or county              Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Alaska................................  Fort Wainwright..........  32 Units.....................     $12,000,000
Arizona...............................  Fort Huachuca............  72 Units.....................     $10,800,000
Kansas................................  Fort Leavenworth.........  40 Units.....................     $20,000,000
Texas.................................  Fort Bliss...............  76 Units.....................     $13,600,000
                                        Fort Sam Houston.........  80 Units.....................     $11,200,000
Korea.................................  Camp Humphreys...........  54 Units.....................     $12,800,000
                                                                                                 ---------------

[[Page 18553]]

 
                                          Total:.................  .............................     $80,400,000
----------------------------------------------------------------------------------------------------------------


       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(6)(A), the Secretary of the Army may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of family housing units in an amount not to 
     exceed $12,702,000.

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2104(a)(6)(A), the Secretary of 
     the Army may improve existing military family housing units 
     in an amount not to exceed $220,750,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2001, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Army in the total amount of $3,068,303,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $1,027,300,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $243,743,000.
       (3) For military construction projects at unspecified 
     worldwide locations authorized by section 2101(c), 
     $4,000,000.
       (4) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $18,000,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $142,198,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $313,852,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $1,108,991,000.
       (7) For the Homeowners Assistance Program, as authorized by 
     section 2832 of title 10, United States Code, $10,119,000, to 
     remain available until expended.
       (8) For the construction of the Cadet Development Center, 
     United States Military Academy, West Point, New York, 
     authorized in section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 1999 (division B of Public 
     Law 105-261; 112 Stat. 2182), $37,900,000.
       (9) For the construction of a Barracks Complex--Tagaytay 
     Street Phase 2C, Fort Bragg, North Carolina, authorized in 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2000 (division B of Public Law 106-65; 
     113 Stat. 824), $17,500,000.
       (10) For the construction of a Barracks Complex--Wilson 
     Street, Phase 1C, Schofield Barracks, Hawaii, authorized in 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2000 (113 Stat. 824), $23,000,000.
       (11) For construction of a Basic Combat Training Complex 
     Phase 2, Fort Leonard Wood, Missouri, authorized in section 
     2101(a) of the Military Construction Authorization Act for 
     Fiscal Year 2001 (division B of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (as enacted by 
     Public Law 106-398); 114 Stat. 1654A-389), $27,000,000.
       (12) For the construction of the Battle Simulation Center 
     Phase 2, Fort Drum, New York, authorized in section 2101(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 2001 (114 Stat. 1654A-389), $9,000,000.
       (13) For the construction of a Barracks Complex--Bunter 
     Road Phase 2, Fort Bragg, North Carolina, authorized in 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2001 (114 Stat. 1654A-389), $49,000,000.
       (14) For the construction of a Barracks Complex--Longstreet 
     Road Phase 2, Fort Bragg, North Carolina, authorized in 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2001 (114 Stat. 1654A-389), $27,000,000.
       (15) For the construction of a Multipurpose Digital 
     Training Range, Fort Hood, Texas, authorized in section 
     2101(a) of the Military Construction Authorization Act for 
     Fiscal Year 2001 (114 Stat. 1654A-389), $13,000,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2101 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1), (2), and (3) of subsection (a);
       (2) $52,000,000 (the balance of the amount authorized under 
     section 2101(a) for Barracks Complex D Street Phase at Fort 
     Richardson, Alaska);
       (3) $41,000,000 (the balance of the amount authorized under 
     section 2101(a) for Barracks Complex--Nelson Boulevard (Phase 
     I) at Fort Carson, Colorado);
       (4) $36,000,000 (the balance of the amount authorized under 
     section 2101(a) for Basic Combat Training Complex (Phase I) 
     at Fort Jackson, South Carolina);
       (5) $102,000,000 (the balance of the amount authorized 
     under section 2101(a) for Barracks Complex--17th & B Street 
     (Phase I) at Fort Lewis, Washington); and
       (6) $21,500,000 (the balance of the amount authorized under 
     section 2101(a) for Consolidated Logistics Complex (Phase I) 
     at Fort Sill, Oklahoma).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (7) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs reduced by $3,300,000, which 
     represents savings resulting from adjustments to foreign 
     currency exchange rates for military family housing 
     construction and military family housing support outside the 
     United States.

     SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2001 PROJECTS.

       (a) Modification.--The table in section 2101(a) of the 
     Military Construction Authorization Act for Fiscal Year 2001 
     (division B of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted by Public 
     Law 106-398); 114 Stat. 1654A-389) is amended--
       (1) in the item relating to Fort Leonard Wood, Missouri, by 
     striking ``$65,400,000'' in the amount column and inserting 
     ``$69,800,000'';
       (2) in the item relating to Fort Drum, New York, by 
     striking ``$18,000,000'' in the amount column and inserting 
     ``$21,000,000'';
       (3) in the item relating to Fort Hood, Texas, by striking 
     ``$36,492,000'' in the amount column and inserting 
     ``$39,492,000''; and
       (4) by striking the amount identified as the total in the 
     amount column and inserting ``$626,374,000''.
       (b) Conforming Amendments.--Section 2104 of that Act (114 
     Stat. 1654A-391) is amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``$1,925,344,000'' and inserting 
     ``$1,935,744,000''; and
       (2) in subsection (b)--
       (A) in paragraph (2), by striking ``$22,600,000'' and 
     inserting ``$27,000,000'';
       (B) in paragraph (3), by striking ``$10,000,000'' and 
     inserting ``$13,000,000''; and
       (C) in paragraph (6), by striking ``$6,000,000'' and 
     inserting ``$9,000,000''.

                            TITLE XXII--NAVY

     SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(1), the Secretary of the Navy may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:

                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air            $22,570,000
                                  Station, Yuma.
California.....................  Marine Air-Ground Task      $75,125,000
                                  Force Training Center,
                                  Twentynine Palms.
                                 Marine Corps Air             $4,470,000
                                  Station, Camp
                                  Pendleton.
                                 Marine Corps Base, Camp     $96,490,000
                                  Pendleton.
                                 Naval Air Facility, El      $23,520,000
                                  Centro.
                                 Naval Air Station,          $10,010,000
                                  Lemoore.
                                 Naval Air Warfare           $13,730,000
                                  Center, Point Mugu,
                                  San Nicholas Island.
                                 Naval Amphibious Base,       $8,610,000
                                  Coronado.

[[Page 18554]]

 
                                 Naval Construction          $12,400,000
                                  Battalion Center, Port
                                  Hueneme.
                                 Naval Construction           $3,780,000
                                  Training Center, Port
                                  Hueneme.
                                 Naval Station, San          $47,240,000
                                  Diego.
District of Columbia...........  Naval Air Facility,          $9,810,000
                                  Washington.
Florida........................  Naval Air Station, Key      $11,400,000
                                  West.
                                 Naval Air Station,           $3,700,000
                                  Pensacola.
                                 Naval Air Station,           $2,140,000
                                  Whiting Field, Milton.
                                 Naval Station, Mayport.     $16,420,000
Hawaii.........................  Marine Corps Base,          $24,920,000
                                  Kaneohe.
                                 Naval Magazine,              $6,000,000
                                  Lualualei.
                                 Naval Shipyard, Pearl       $20,000,000
                                  Harbor.
                                 Naval Station, Pearl        $54,700,000
                                  Harbor.
                                 Navy Public Works           $16,900,000
                                  Center, Pearl Harbor.
Illinois.......................  Naval Training Center,      $82,260,000
                                  Great Lakes.
Indiana........................  Naval Surface Warfare        $5,820,000
                                  Center, Crane.
Maine..........................  Naval Air Station,          $67,395,000
                                  Brunswick.
                                 Naval Shipyard, Kittery-    $14,620,000
                                  Portsmouth.
Maryland.......................  Naval Air Warfare            $2,260,000
                                  Center, Patuxent River.
                                 Naval Explosive              $1,250,000
                                  Ordinance Disposal
                                  Technology Center,
                                  Indian Head.
Mississippi....................  Naval Construction          $21,660,000
                                  Battalion Center,
                                  Gulfport.
                                 Naval Air Station,           $3,370,000
                                  Meridian.
                                 Naval Station,               $4,680,000
                                  Pascagoula.
Missouri.......................  Marine Corp Support          $9,010,000
                                  Activity, Kansas City.
Nevada.........................  Naval Air Station,           $6,150,000
                                  Fallon.
New Jersey.....................  Naval Weapons Station,       $4,370,000
                                  Earle.
North Carolina.................  Marine Corps Air             $4,050,000
                                  Station, New River.
                                 Marine Corps Base, Camp     $67,070,000
                                  LeJeune.
Rhode Island...................  Naval Station, Newport.     $15,290,000
                                 Naval Undersea Warfare       $9,370,000
                                  Center, Newport.
South Carolina.................  Marine Corps Air             $8,020,000
                                  Station, Beaufort.
                                 Marine Corps Recruit         $5,430,000
                                  Depot, Parris Island.
Tennessee......................  Naval Support Activity,      $3,900,000
                                  Millington.
Texas..........................  Naval Air Station,           $6,160,000
                                  Kingsville.
Virginia.......................  Marine Corps Air             $3,790,000
                                  Facility, Quantico.
                                 Marine Corps Combat          $9,390,000
                                  Development Command,
                                  Quantico.
                                 Naval Station, Norfolk.    $139,270,000
Washington.....................  Naval Air Station,           $7,370,000
                                  Whidbey Island.
                                 Naval Station, Everett.      $6,820,000
                                 Strategic Weapons            $3,900,000
                                  Facility, Bangor.
                                                         ---------------
                                   Total:...............    $996,610,000
------------------------------------------------------------------------

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

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

     SEC. 2202. FAMILY HOUSING.

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

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
           State or country              Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Arizona...............................  Marine Corps Air Station,  51 Units.....................      $9,017,000
                                         Yuma.
California............................  Marine Air-Ground Task     74 Units.....................     $16,250,000
                                         Force Training Center,
                                         Twentynine Palms.
Hawaii................................  Marine Corps Base,         172 Units....................     $55,187,000
                                         Kaneohe.
                                        Naval Station, Pearl       70 Units.....................     $16,827,000
                                         Harbor.
Mississippi...........................  Naval Construction         160 Units....................     $23,354,000
                                         Battalion Center,
                                         Gulfport.
Italy.................................  Naval Air Station,         10 Units.....................      $2,403,000
                                         Sigonella.
                                                                                                 ---------------
                                                                     Total:.....................    $123,038,000
----------------------------------------------------------------------------------------------------------------


       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(5)(A), the Secretary of the Navy may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $6,499,000.

     SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2204(a)(5)(A), the Secretary of 
     the Navy may improve existing military family housing units 
     in an amount not to exceed $183,054,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2001, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Navy in the total amount of $2,377,634,000, as follows:

[[Page 18555]]

       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $963,370,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $47,670,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $10,546,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $35,752,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $312,591,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $918,095,000.
       (6) For replacement of a pier at Naval Station, San Diego, 
     California, authorized in section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of the Floyd D. Spence National Defense Authorization Act 
     for Fiscal Year 2001 (as enacted by Public Law 106-398); 114 
     Stat. 1654A-395), $17,500,000.
       (7) For replacement of Pier Delta at Naval Station, 
     Bremerton, Washington, authorized in section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 2001, 
     $24,460,000.
       (8) For construction of the Commander-in-Chief 
     Headquarters, Pacific Command, Camp Smith, Hawaii, authorized 
     in section 2201(a) of the Military Construction Authorization 
     Act for Fiscal Year 2000 (division B of Public Law 106-65; 
     113 Stat. 828), $37,580,000.
       (9) For construction of an Advanced Systems Integration 
     Facility, phase 6, at Naval Air Warfare Center, Patuxent 
     River, Maryland, authorized in section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 1993 
     (division B of Public Law 102-484; 106 Stat. 2590), 
     $10,770,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2201 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a); and
       (2) $33,240,000 (the balance of the amount authorized under 
     section 2201(a) for Pier Replacement (Increment I), Naval 
     Station, Norfolk, Virginia).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (5) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs reduced by $700,000, which 
     represents savings resulting from adjustments to foreign 
     currency exchange rates for military family housing 
     construction and military family housing support outside the 
     United States.

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

       The table in section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2001 (division B of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted by Public Law 106-398); 114 Stat. 
     1654A-395) is amended--
       (1) in the item relating to Naval Shipyard, Bremerton, 
     Puget Sound, Washington, by striking ``$100,740,000'' in the 
     amount column and inserting ``$98,740,000'';
       (2) in the item relating to Naval Station, Bremerton, 
     Washington, by striking ``$11,930,000'' in the amount column 
     and inserting ``$1,930,000''; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$799,497,000''.

     SEC. 2206. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   2000 PROJECT.

       (a) Modification.--The table in section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (division B of Public Law 106-65; 113 Stat. 828) is amended--
       (1) in the item relating to Camp Smith, Hawaii, by striking 
     ``$86,050,000'' in the amount column and inserting 
     ``$89,050,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$820,230,000''.
       (b) Conforming Amendment.--Section 2204(b)(3) of that Act 
     (113 Stat. 831) is amended by striking ``$70,180,000'' and 
     inserting ``$73,180,000''.

                         TITLE XXIII--AIR FORCE

     SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(1), the Secretary of the Air Force may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:

                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $34,400,000
Alaska.........................  Eareckson Air Force          $4,600,000
                                  Base.
                                 Elmendorf Air Force         $32,200,000
                                  Base.
Arizona........................  Davis-Monthan Air Force     $17,300,000
                                  Base.
Arkansas.......................  Little Rock Air Force       $18,100,000
                                  Base.
California.....................  Edwards Air Force Base.     $16,300,000
                                 Los Angeles Air Force       $23,000,000
                                  Base.
                                 Travis Air Force Base..     $16,400,000
                                 Vandenberg Air Force        $11,800,000
                                  Base.
Colorado.......................  Buckley Air Force Base.     $23,200,000
                                 Schriever Air Force         $19,000,000
                                  Base.
                                 United States Air Force     $25,500,000
                                  Academy.
Delaware.......................  Dover Air Force Base...      $7,300,000
District of Columbia...........  Bolling Air Force Base.      $2,900,000
Florida........................  Cape Canaveral Air           $7,800,000
                                  Force Station.
                                 Eglin Air Force Base...     $11,400,000
                                 Hurlburt Field.........     $10,400,000
                                 MacDill Air Force Base.     $10,000,000
                                 Tyndall Air Force Base.     $15,050,000
Georgia........................  Moody Air Force Base...      $8,600,000
                                 Robins Air Force Base..     $14,650,000
Idaho..........................  Mountain Home Air Force     $14,600,000
                                  Base.
Louisiana......................  Barksdale Air Force          $5,000,000
                                  Base.
Maryland.......................  Andrews Air Force Base.     $19,420,000
Massachusetts..................  Hanscom Air Force Base.      $9,400,000
Mississippi....................  Columbus Air Force Base      $5,000,000
                                 Keesler Air Force Base.     $28,600,000
Montana........................  Malmstrom Air Force          $4,650,000
                                  Base.
Nebraska.......................  Offet Air Force Base...     $10,400,000
Nevada.........................  Nellis Air Force Base..     $31,600,000
New Jersey.....................  McGuire Air Force Base.     $36,550,000
New Mexico.....................  Cannon Air Force Base..      $9,400,000
                                 Kirtland Air Force Base     $15,500,000
North Carolina.................  Pope Air Force Base....     $17,800,000
North Dakota...................  Grand Forks Air Force        $7,800,000
                                  Base.
Ohio...........................  Wright-Patterson Air        $24,850,000
                                  Force Base.
Oklahoma.......................  Altus Air Force Base...     $20,200,000
                                 Tinker Air Force Base..     $21,400,000
                                 Vance Air Force Base...      $4,800,000
South Carolina.................  Shaw Air Force Base....      $5,800,000
South Dakota...................  Ellsworth Air Force         $12,000,000
                                  Base.
Tennessee......................  Arnold Air Force Base..     $24,400,000
Texas..........................  Lackland Air Force Base     $12,800,000
                                 Laughlin Air Force Base     $12,000,000
                                 Sheppard Air Force Base     $37,000,000

[[Page 18556]]

 
Utah...........................  Hill Air Force Base....     $14,000,000
Virginia.......................  Langley Air Force Base.     $47,300,000
Washington.....................  Fairchild Air Force          $2,800,000
                                  Base.
                                 McChord Air Force Base.     $20,700,000
Wyoming........................  F.E. Warren Air Force       $10,200,000
                                  Base.
                                                         ---------------
                                   Total:...............    $811,370,000
------------------------------------------------------------------------

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

                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Ramstein Air Force Base     $42,900,000
                                 Spangdahlem Air Base...      $8,700,000
Guam...........................  Andersen Air Force Base     $10,150,000
Italy..........................  Aviano Air Base........     $11,800,000
Korea..........................  Kunsan Air Base........     $12,000,000
                                 Osan Air Base..........    $101,142,000
Oman...........................  Masirah Island.........      $8,000,000
Turkey.........................  Eskisehir..............      $4,000,000
United Kingdom.................  Royal Air Force,            $11,300,000
                                  Lakenheath.
                                 Royal Air Force,            $22,400,000
                                  Mildenhall.
Wake Island....................  Wake Island............     $25,000,000
                                                         ---------------
                                   Total:...............    $257,392,000
------------------------------------------------------------------------

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

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

     SEC. 2302. FAMILY HOUSING.

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

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
           State or country              Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Arizona...............................  Luke Air Force Base......  120 Units....................     $15,712,000
California............................  Travis Air Force Base....  118 Units....................     $18,150,000
Colorado..............................  Buckley Air Force Base...  55 Units.....................     $11,400,000
Delaware..............................  Dover Air Force Base.....  120 Units....................     $18,145,000
District of Columbia..................  Bolling Air Force Base...  136 Units....................     $16,926,000
Hawaii................................  Hickam Air Force Base....  102 Units....................     $25,037,000
Louisiana.............................  Barksdale Air Force Base.  56 Units.....................      $7,300,000
South Dakota..........................  Ellsworth Air Force Base.  78 Units.....................     $13,700,000
Virginia..............................  Langley Air Force Base...  4 Units......................      $1,200,000
Portugal..............................  Lajes Field, Azores......  64 Units.....................     $13,230,000
                                                                                                 ---------------
                                                                     Total:.....................    $140,800,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(6)(A), the Secretary of the Air Force may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $24,558,000.

     SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2304(a)(6)(A), the Secretary of 
     the Air Force may improve existing military family housing 
     units in an amount not to exceed $375,379,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2001, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Air Force in the total amount of $2,587,791,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $816,070,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $257,392,000.
       (3) For the military construction projects at unspecified 
     worldwide locations authorized by section 2301(c), 
     $4,458,000.
       (4) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $11,250,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $90,419,000.
       (6) For military housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $542,381,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $869,121,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2301 of this Act may not exceed the 
     total amount authorized to be appropriated under paragraphs 
     (1), (2), and (3) of subsection (a).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (6) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs reduced by $3,300,000, which 
     represents savings resulting from adjustments to foreign 
     currency exchange rates for military family housing 
     construction and military family housing support outside the 
     United States.

[[Page 18557]]



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

       The table in section 2302(a) of the Military Construction 
     Authorization Act for Fiscal Year 2001 (division B of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted by Public Law 106-398); 114 Stat. 
     1654A-400) is amended in the item relating to Mountain Home 
     Air Force Base, Idaho, by striking ``119 Units'' in the 
     purpose column and inserting ``46 Units''.

                      TITLE XXIV--DEFENSE AGENCIES

     SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

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

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

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

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

     SEC. 2402. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2405(a)(6), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code, in the amount 
     of $35,600,000.

     SEC. 2403. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2001, for military construction, land acquisition, and 
     military family housing functions of the Department of 
     Defense (other than the military departments), in the total 
     amount of $1,492,956,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $391,308,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $140,162,000.
       (3) For unspecified minor construction projects under 
     section 2805 of title 10, United States Code, $24,492,000.

[[Page 18558]]

       (4) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $10,000,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $87,382,000.
       (6) For energy conservation projects authorized by section 
     2402 of this Act, $35,600,000.
       (7) For base closure and realignment activities as 
     authorized by the Defense Base Closure and Realignment Act of 
     1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687 note), $592,200,000.
       (8) For military family housing functions:
       (A) For improvement of military family housing and 
     facilities, $250,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $43,762,000 of which not more than $37,298,000 
     may be obligated or expended for the leasing of military 
     family housing units worldwide.
       (C) For credit to the Department of Defense Family Housing 
     Improvement Fund established by section 2883(a)(1) of title 
     10, United States Code, $2,000,000.
       (9) For construction of the Ammunition Demilitarization 
     Facility Phase 6, Pine Bluff Arsenal, Arkansas, authorized in 
     section 2401(a) of the Military Construction Authorization 
     Act for Fiscal Year 1995 (division B of Public Law 103-337; 
     108 Stat. 3040), as amended by section 2407 of the Military 
     Construction Authorization Act for Fiscal Year 1996 (division 
     B of Public Law 104-106; 110 Stat. 538), section 2408 of the 
     Military Construction Authorization Act for Fiscal Year 1998 
     (division B of Public Law 105-85; 111 Stat. 1982), section 
     2406 of the Military Construction Authorization Act for 
     Fiscal Year 1999 (division B of Public Law 105-261; 112 Stat. 
     2197), and section 2408 of this Act, $26,000,000.
       (10) For construction of the Ammunition Demilitarization 
     Facility Phase 3, Pueblo Army Depot, Colorado, authorized in 
     section 2401(a) of the Military Construction Authorization 
     Act for Fiscal Year 1997 (division B of Public Law 104-201; 
     110 Stat. 2775), as amended by section 2406 of the Military 
     Construction Authorization Act for Fiscal Year 2000 (division 
     B of Public Law 106-65; 113 Stat. 839), $11,000,000.
       (11) For construction of the Ammunition Demilitarization 
     Facility Phase 4, Newport Army Depot, Indiana, authorized in 
     section 2401(a) of the Military Construction Authorization 
     Act for Fiscal Year 1999 (division B of Public Law 105-261; 
     112 Stat. 2193), $66,000,000.
       (12) For construction of the Ammunition Demilitarization 
     Facility phase 4, Aberdeen Proving Ground, Maryland, 
     authorized in section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1999 (112 Stat. 2193), as 
     amended by section 2407 of this Act, $66,500,000.
       (13) For construction of the Ammunition Demilitarization 
     Facility Phase 2, Blue Grass Army Depot, Kentucky, authorized 
     in section 2401(a) of the Military Construction Authorization 
     Act for Fiscal Year 2000 (division B of Public Law 106-65; 
     113 Stat. 835), as amended by section 2406 of this Act, 
     $3,000,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2401 of this Act may not exceed the 
     total amount authorized to be appropriated under paragraphs 
     (1) and (2) of subsection (a).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (8) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs reduced by $1,700,000, which 
     represents savings resulting from adjustments to foreign 
     currency exchange rates for military family housing 
     construction and military family housing support outside the 
     United States.

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

       (a) Cancellation of Projects at Camp Pendleton, 
     California.--(1) The table in section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of the Floyd D. Spence National Defense Authorization Act 
     for Fiscal Year 2001 (as enacted by Public Law 106-398); 114 
     Stat. 1654A-402) is amended--
       (A) by striking the item relating to Marine Corps Base, 
     Camp Pendleton, California, under the heading TRICARE 
     Management Activity; and
       (B) by striking the amount identified as the total in the 
     amount column and inserting ``$242,756,000''.
       (2) Of the amount authorized to be appropriated by section 
     2403(a) of that Act (114 Stat. 1654A-404), and paragraph (1) 
     of that section, $14,150,000 shall be available for purposes 
     relating to construction of the Portsmouth Naval Hospital, 
     Virginia, as authorized by section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Years 1990 and 1991 
     (division B of Public Law 101-189). Such amount is the amount 
     authorized to be appropriated by section 2403(a) of the 
     Military Construction Authorization Act for Fiscal Year 2001 
     for purposes authorized in section 2401(a) of that Act 
     relating to Marine Corps Base, Camp Pendleton, California.
       (b) Conforming Amendments.--Section 2403(a) of that Act is 
     amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``$1,883,902,000'' and inserting ``$1,828,902,000''; and
       (2) in paragraph (3), by striking ``$85,095,000'' and 
     inserting ``$30,095,000''.

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

       (a) Cancellation of Authority.--Section 2401(c) the 
     Military Construction Authorization Act for Fiscal Year 2001 
     (division B of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted by Public 
     Law 106-398); 114 Stat. 1654A-404) is amended by striking 
     ``$451,135,000'' and inserting ``$30,095,000''.
       (b) Conforming Amendments.--Section 2403 of that Act is 
     amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``$1,883,902,000'' and inserting ``$1,828,902,000''; and
       (B) in paragraph (3), by striking ``$85,095,000'' and 
     inserting ``$30,095,000''; and
       (2) in subsection (b), by striking ``may not exceed--'' and 
     all that follows through the end of the subsection and 
     inserting ``may not exceed the total amount authorized to be 
     appropriated under paragraphs (1) and (2) of subsection 
     (a).''.

     SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2000 PROJECTS.

       (a) Modification.--The table in section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (division B of Public Law 106-65; 113 Stat. 835) is amended--
       (1) in the item under the heading Chemical Demilitarization 
     relating to Blue Grass Army Depot, Kentucky, by striking 
     ``$206,800,000'' and inserting ``$254,030,000'';
       (2) under the heading relating to TRICARE Management 
     Agency--
       (A) in the item relating to Fort Wainwright, Alaska, by 
     striking ``$133,000,000'' and inserting ``$215,000,000''; and
       (B) by striking the item relating to Naval Air Station, 
     Whidbey Island, Washington; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$711,950,000''.
       (b) Conforming Amendments.--Section 2405(b) of that Act 
     (113 Stat. 839) is amended--
       (1) in paragraph (2), by striking ``$115,000,000'' and 
     inserting ``$197,000,000''; and
       (2) in paragraph (3), by striking ``$184,000,000'' and 
     inserting ``$231,230,000''.
       (c) Treatment of Authorization of Appropriations for 
     Canceled Project.--Of the amount authorized to be 
     appropriated by section 2405(a) of that Act (113 Stat. 837), 
     and paragraph (1) of that section, $4,700,000 shall be 
     available for purposes relating to construction of the 
     Portsmouth Naval Hospital, Virginia, as authorized by section 
     2401(a) of the Military Construction Authorization Act for 
     Fiscal Years 1990 and 1991 (division B of Public Law 101-
     189). Such amount is the amount authorized to be appropriated 
     by section 2405(a) of the Military Construction Authorization 
     Act for Fiscal Year 2000 for purposes authorized in section 
     2401(a) of that Act relating to Naval Air Station, Whidbey 
     Island, Washington.

     SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 1999 PROJECT.

       (a) Modification.--The table in section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 1999 
     (division B of Public Law 105-261; 112 Stat. 2193) is 
     amended--
       (1) in the item under the agency heading Chemical 
     Demilitarization relating to Aberdeen Proving Ground, 
     Maryland, by striking ``$186,350,000'' in the amount column 
     and inserting ``$223,950,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$727,616,000''.
       (b) Conforming Amendment.--Section 2404(b)(3) of that Act 
     (112 Stat. 2196) is amended by striking ``$158,000,000'' and 
     inserting ``$195,600,000''.

     SEC. 2408. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 1995 PROJECT.

       The table in section 2401 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337; 108 Stat. 3040), as amended by section 2407 of 
     the Military Construction Authorization Act for Fiscal Year 
     1996 (division B of Public Law 104-106; 110 Stat. 539), 
     section 2408 of the Military Construction Authorization Act 
     for Fiscal Year 1998 (division B of Public Law 105-85; 111 
     Stat. 1982), and section 2406 of the Military Construction 
     Authorization Act for Fiscal Year 1999 (division B of Public 
     Law 105-261; 112 Stat. 2197), is further amended under the 
     agency heading relating to Chemical Weapons and Munitions 
     Destruction in the item relating to Pine Bluff Arsenal, 
     Arkansas, by striking ``$154,400,000'' in the amount column 
     and inserting ``$177,400,000''.

[[Page 18559]]



   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

     SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       The Secretary of Defense may make contributions for the 
     North Atlantic Treaty Organization Security Investment 
     program as provided in section 2806 of title 10, United 
     States Code, in an amount not to exceed the sum of the amount 
     authorized to be appropriated for this purpose in section 
     2502 and the amount collected from the North Atlantic Treaty 
     Organization as a result of construction previously financed 
     by the United States.

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2001, for contributions 
     by the Secretary of Defense under section 2806 of title 10, 
     United States Code, for the share of the United States of the 
     cost of projects for the North Atlantic Treaty Organization 
     Security Investment program authorized by section 2501, in 
     the amount of $162,600,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

       There are authorized to be appropriated for fiscal years 
     beginning after September 30, 2001, for the costs of 
     acquisition, architectural and engineering services, and 
     construction of facilities for the Guard and Reserve Forces, 
     and for contributions therefor, under chapter 1803 of title 
     10, United States Code (including the cost of acquisition of 
     land for those facilities), the following amounts:
       (1) For the Department of the Army--
       (A) for the Army National Guard of the United States, 
     $365,240,000; and
       (B) for the Army Reserve, $111,404,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $33,641,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $227,232,000; and
       (B) for the Air Force Reserve, $53,732,000.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

     SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED 
                   TO BE SPECIFIED BY LAW.

       (a) Expiration of Authorizations After Three Years.--Except 
     as provided in subsection (b), all authorizations contained 
     in titles XXI through XXVI for military construction 
     projects, land acquisition, family housing projects and 
     facilities, and contributions to the North Atlantic Treaty 
     Organization Security Investment program (and authorizations 
     of appropriations therefor) shall expire on the later of--
       (1) October 1, 2004; or
       (2) the date of the enactment of an Act authorizing funds 
     for military construction for fiscal year 2005.
       (b) Exception.--Subsection (a) shall not apply to 
     authorizations for military construction projects, land 
     acquisition, family housing projects and facilities, and 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program (and authorizations of 
     appropriations therefor) for which appropriated funds have 
     been obligated before the later of--
       (1) October 1, 2004; or
       (2) the date of the enactment of an Act authorizing funds 
     for fiscal year 2005 for military construction projects, land 
     acquisition, family housing projects and facilities, or 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program.

     SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1999 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1999 
     (division B of Public Law 105-261; 112 Stat. 2199), 
     authorizations set forth in the tables in subsection (b), as 
     provided in section 2302 or 2601 of that Act, shall remain in 
     effect until October 1, 2002, or the date of the enactment of 
     an Act authorizing funds for military construction for fiscal 
     year 2003, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:

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



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

     SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1998 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1998 
     (division B of Public Law 105-85; 111 Stat. 1984), 
     authorizations set forth in the tables in subsection (b), as 
     provided in section 2102, 2202, or 2302 of that Act and 
     extended by section 2702 of the Military Construction 
     Authorization Act for Fiscal Year 2001 (division B of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted by Public Law 106-398; 114 Stat. 1654A-
     408)), shall remain in effect until October 1, 2002, or the 
     date of the enactment of an Act authorizing funds for 
     military construction for fiscal year 2003, whichever is 
     later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:

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



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



[[Page 18560]]


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

     SEC. 2704. EFFECTIVE DATE.

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

                    TITLE XXVIII--GENERAL PROVISIONS

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

     SEC. 2801. INCREASE IN THRESHOLDS FOR CERTAIN UNSPECIFIED 
                   MINOR MILITARY CONSTRUCTION PROJECTS.

       (a) Projects Requiring Advance Approval of Secretary 
     Concerned.--Subsection (b)(1) of section 2805 of title 10, 
     United States Code, amended by striking ``$500,000'' and 
     inserting ``$750,000''.
       (b) Projects Using Amounts for Operation and Maintenance.--
     Subsection (c)(1) of that section is amended--
       (1) in subparagraph (A), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (2) in subparagraph (B), by striking ``$500,000'' and 
     inserting ``$750,000''.

     SEC. 2802. UNFORESEEN ENVIRONMENTAL HAZARD REMEDIATION AS 
                   BASIS FOR AUTHORIZED COST VARIATIONS FOR 
                   MILITARY CONSTRUCTION AND FAMILY HOUSING 
                   CONSTRUCTION PROJECTS.

       Subsection (d) of section 2853 of title 10, United States 
     Code, is amended to read as follows:
       ``(d) The limitation on cost increases in subsection (a) 
     does not apply to the following:
       ``(1) The settlement of a contractor claim under a 
     contract.
       ``(2) The cost of any environmental hazard remediation 
     required by law, including asbestos removal, radon abatement, 
     and lead-based paint removal or abatement, if such 
     remediation could not have reasonably been anticipated at the 
     time the project was approved originally by Congress.''.

     SEC. 2803. REPEAL OF REQUIREMENT FOR ANNUAL REPORTS TO 
                   CONGRESS ON MILITARY CONSTRUCTION AND MILITARY 
                   FAMILY HOUSING ACTIVITIES.

       (a) Repeal.--Section 2861 of title 10, United States Code 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of subchapter III of chapter 169 of such title is 
     amended by striking the item relating to section 2861.

     SEC. 2804. AUTHORITY AVAILABLE FOR LEASE OF PROPERTY AND 
                   FACILITIES UNDER ALTERNATIVE AUTHORITY FOR 
                   ACQUISITION AND IMPROVEMENT OF MILITARY 
                   HOUSING.

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

     SEC. 2805. FUNDS FOR HOUSING ALLOWANCES OF MEMBERS ASSIGNED 
                   TO MILITARY FAMILY HOUSING UNDER ALTERNATIVE 
                   AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
                   MILITARY HOUSING.

       (a) In General.--Subchapter IV of chapter 169 of title 10, 
     United States Code, is amended by inserting after section 
     2883 the following new section:

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

       ``To the extent provided in advance in appropriations Acts, 
     the Secretary of Defense may, during the fiscal year in which 
     a contract is awarded for the acquisition or construction of 
     military family housing units under this subchapter that are 
     not to be owned by the United States, transfer from 
     appropriations available for support of military housing for 
     the armed force concerned for that fiscal year to 
     appropriations available for pay and allowances of military 
     personnel of that armed force for that fiscal year amounts 
     equal to any additional amounts payable during that fiscal 
     year to members of that armed force assigned to such housing 
     units as basic allowance for housing under section 403 of 
     title 37 that would not otherwise have been payable to such 
     members if not for assignment to such housing units.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of that subchapter is amended by inserting after 
     the item relating to section 2883 the following new item:

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

     SEC. 2806. AMENDMENT OF FEDERAL ACQUISITION REGULATION TO 
                   TREAT FINANCING COSTS AS ALLOWABLE EXPENSES 
                   UNDER CONTRACTS FOR UTILITY SERVICES FROM 
                   UTILITY SYSTEMS CONVEYED UNDER PRIVATIZATION 
                   INITIATIVE.

       (a) Determination of Advisability of Amendment.--Not later 
     than 90 days after the date of the enactment of this Act, the 
     Secretary of Defense shall determine whether or not it is 
     advisable to modify the Federal Acquisition Regulation in 
     order to provide that a contract for utility services from a 
     utility system conveyed under section 2688(a) of title 10, 
     United States Code, may include terms and conditions that 
     recognize financing costs, such as return on equity and 
     interest on debt, as an allowable expense when incurred by 
     the conveyee of the utility system to acquire, operate, 
     renovate, replace, upgrade, repair, and expand the utility 
     system.
       (b) Report.--If as of the date that is 180 days after the 
     date of the enactment of this Act, the Federal Acquisition 
     Regulatory Council has not modified the Federal Acquisition 
     Regulation to provide that a contract described in subsection 
     (a) may include terms and conditions described in that 
     subsection, or otherwise taken action to provide that a 
     contract referred to in that subsection may include terms and 
     conditions described in that subsection, the Secretary shall 
     submit to Congress on that date a report setting forth a 
     justification for the failure to take such actions.

        Subtitle B--Real Property and Facilities Administration

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

       Section 204(h)(2) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)) is 
     amended by striking subparagraphs (A) and (B) and inserting 
     the following new subparagraphs:
       ``(A) In the case of property located at a military 
     installation that is closed, such amount shall be available 
     for facility maintenance and repair or environmental 
     restoration by the military department that had jurisdiction 
     over such property before the closure of the military 
     installation.
       ``(B) In the case of property located at any other military 
     installation--
       ``(i) 50 percent of such amount shall be available for 
     facility maintenance and repair or environmental restoration 
     at the military installation where such property was located 
     before it was disposed of or transferred; and
       ``(ii) 50 percent of such amount shall be available for 
     facility maintenance and repair and for environmental 
     restoration by the military department that had jurisdiction 
     over such property before it was disposed of or 
     transferred.''.

     SEC. 2812. PILOT EFFICIENT FACILITIES INITIATIVE.

       (a) Initiative Authorized.--The Secretary of Defense may 
     carry out a pilot program for purposes of determining the 
     potential for increasing the efficiency and effectiveness of 
     the operation of military installations. The pilot program 
     shall be known as the ``Pilot Efficient Facilities 
     Initiative'' (in this section referred to as the 
     ``Initiative'').
       (b) Designation of Participating Facilities.--(1) The 
     Secretary may designate up to two installations of each 
     military department for participation in the Initiative.
       (2) The Secretary shall transmit to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     written notification of each installation proposed to be 
     included in the Initiative not less than 30 days before 
     taking any action to carry out the Initiative at such 
     installation.
       (3) The Secretary shall include in the notification 
     regarding an installation designated for participation in the 
     Initiative a management plan for the Initiative at the 
     installation. Each management plan for an installation shall 
     include the following:
       (A) A description of--
       (i) each proposed lease of real or personal property 
     located at the installation;
       (ii) each proposed disposal of real or personal property 
     located at the installation;

[[Page 18561]]

       (iii) each proposed leaseback of real or personal property 
     leased or disposed of at the installation;
       (iv) each proposed conversion of services at the 
     installation from Federal Government performance to non-
     Federal Government performance, including performance by 
     contract with a State or local government or private entity 
     or performance as consideration for the lease or disposal of 
     property at the installation; and
       (v) each other action proposed to be taken to improve 
     mission effectiveness and reduce the cost of providing 
     quality installation support at the installation.
       (B) With respect to each proposed action described under 
     subparagraph (A)--
       (i) an estimate of the savings expected to be achieved as a 
     result of the action;
       (ii) each regulation not required by statute that is 
     proposed to be waived to implement the action; and
       (iii) each statute or regulation required by statute that 
     is proposed to be waived to implement the action, including--
       (I) an explanation of the reasons for the proposed waiver; 
     and
       (II) a description of the action to be taken to protect the 
     public interests served by the statute or regulation, as the 
     case may be, proposed to be waived in the event of the 
     waiver.
       (C) A description of the steps taken by the Secretary to 
     consult with employees at the facility, and communities in 
     the vicinity of the facility, regarding the Initiative at the 
     installation.
       (D) Measurable criteria for the evaluation of the effects 
     of the actions to be taken pursuant to the Initiative at the 
     installation.
       (c) Waiver of Statutory Requirements.--The Secretary of 
     Defense may waive any statute or regulation required by 
     statute for purposes of carrying out the Initiative only if 
     specific authority for the waiver of such statute or 
     regulation is provided in an Act that is enacted after the 
     date of the enactment of this Act.
       (d) Installation Efficiency Project Fund.--(1) There is 
     established on the books of the Treasury a fund to be known 
     as the ``Installation Efficiency Project Fund'' (in this 
     subsection referred to as the ``Fund'').
       (2) There shall be deposited in the Fund all cash rents, 
     payments, reimbursements, proceeds and other amounts from 
     leases, sales, or other conveyances or transfers, joint 
     activities, and other actions taken under the Initiative.
       (3) To the extent provided in advance in authorization Acts 
     and appropriations Acts, amounts in the Fund shall be 
     available to the Secretary concerned for purposes of managing 
     capital assets and providing support services at 
     installations participating in the Initiative. Amounts in the 
     Fund may be used for such purposes in addition to, or in 
     combination with, other amounts authorized to appropriated 
     for such purposes. Amounts in the Fund shall be available for 
     such purposes for five years.
       (4) Subject to applicable financial management regulations, 
     the Secretary of Defense shall structure the Fund, and 
     provide administrative policies and procedures, in order 
     provide proper control of deposits in and disbursements from 
     the Fund.
       (e) Termination.--The authority of the Secretary to carry 
     out the Initiative shall terminate four years after the date 
     of the enactment of this Act.
       (f) Report.--Not later than three years after the date of 
     the enactment of this Act, the Secretary shall submit to the 
     committees of Congress referred to in subsection (b)(2) a 
     report on the Initiative. The report shall contain a 
     description of the actions taken under the Initiative and 
     include such other information, including recommendations, as 
     the Secretary considers appropriate in light of the 
     Initiative.

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

       (a) Authority To Carry Out Program.--Subject to the 
     provisions of this section, the Secretary of the Army may 
     conduct a demonstration program to assess the feasibility and 
     desirability of including facility maintenance requirements 
     in construction contracts for military construction projects. 
     The purpose of the demonstration program is to determine 
     whether or not such requirements facilitate reductions in the 
     long-term facility maintenance costs of the military 
     departments.
       (b) Contracts.--(1) The demonstration program shall cover 
     contracts entered into on or after the date of the enactment 
     of this Act.
       (2) Not more than three contracts entered into in any year 
     may contain requirements referred to in subsection (a) for 
     the purpose of the demonstration program.
       (c) Effective Period of Requirements.--The effective period 
     of a requirement referred to in subsection (a) that is 
     included in a contract for the purpose of the demonstration 
     program shall be any period elected by the Secretary not in 
     excess of five years.
       (d) Reports.--(1) Not later than January 31, 2003, and 
     annually thereafter until the year following the cessation of 
     effectiveness of any requirements referred to in subsection 
     (a) in contracts under the demonstration program, the 
     Secretary shall submit to the congressional defense 
     committees a report on the demonstration program.
       (2) Each report under paragraph (1) shall include, for the 
     year covered by such report, the following:
       (A) A description of the contracts entered into during the 
     year that contain requirements referred to in subsection (a) 
     for the purpose of the demonstration program.
       (B) The experience of the Secretary during the year with 
     respect to any contracts containing requirements referred to 
     in subsection (a) for the purpose of the demonstration 
     program that were in force during the year.
       (3) The final report under this subsection shall include, 
     in addition to the matters required under paragraph (2), an 
     evaluation of the demonstration program and any 
     recommendations, including recommendations for the 
     termination, continuation, or expansion of the demonstration 
     program, that the Secretary considers appropriate.
       (e) Expiration.--The authority under subsection (a) to 
     include requirements referred to in that subsection in 
     contracts under the demonstration program shall expire on 
     September 30, 2006.
       (f) Funding.--Amounts authorized to be appropriated for the 
     Army for a fiscal year for military construction shall be 
     available for the demonstration program under this section in 
     such fiscal year.

                      Subtitle C--Land Conveyances

     SEC. 2821. LAND CONVEYANCE, ENGINEER PROVING GROUND, FORT 
                   BELVOIR, VIRGINIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the Commonwealth of Virginia (in this section 
     referred to as the ``Commonwealth'') all right, title, and 
     interest of United States in and to two parcels of real 
     property, including any improvements thereon, located at the 
     Engineer Proving Ground, Fort Belvoir, Virginia, as follows:
       (1) The parcel, consisting of approximately 170 acres, that 
     is to be used for a portion of the Fairfax County Parkway, 
     including for construction of that portion of the parkway.
       (2) The parcel, consisting of approximately 11.45 acres, 
     that is subject to an easement previously granted to the 
     Commonwealth as Army easement DACA 31-3-96-440 for the 
     construction of a portion of Interstate Highway 95.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the Commonwealth shall--
       (1) design and construct, at its expense and for public 
     benefit, the portion of the Fairfax County Parkway through 
     the Engineer Proving Ground;
       (2) provide a conceptual design for eventual incorporation 
     and construction by others of access into the Engineer 
     Proving Ground at the Rolling Road Interchange from Fairfax 
     County Parkway as specified in Virginia Department of 
     Transportation Project #R000-029-249, C514;
       (3) provide such easements or rights of way for utilities 
     under or across the Fairfax County Parkway as the Secretary 
     considers appropriate for the optimum development of the 
     Engineer Proving Ground; and
       (4) pay the United States an amount, jointly determined by 
     the Secretary and the Commonwealth, appropriate to cover the 
     costs of constructing a replacement building for building 
     5089 located on the Engineer Proving Ground.
       (c) Responsibility for Environmental Cleanup.--The 
     Secretary shall retain liability under the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.), and any other applicable 
     environmental statute or regulation, for any environmental 
     hazard on the property conveyed under subsection (a) as of 
     the date of the conveyance under that subsection.
       (d) Acceptance and Disposition of Funds.--(1) The Secretary 
     of the Army may accept the funds paid by the Commonwealth as 
     consideration under subsection (b)(4) and shall credit the 
     accepted funds to the appropriation or appropriations that 
     are appropriate for paying the costs of the replacement of 
     Building 5089, located on the Engineer Proving Ground, Fort 
     Belvoir, Virginia, consistent with paragraphs (2) and (3) of 
     this subsection.
       (2) Funds accepted under paragraph (1) shall be available, 
     until expended, for the replacement of Building 5089.
       (3) Funds appropriated pursuant to the authorization of 
     appropriations in section 301(1), and funds appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(4), shall be available in accordance with section 
     2805 of title 10, United States Code, for the excess, if any, 
     of the cost of the replacement of Building 5089 over the 
     amount available for such project under paragraph (2).
       (e) Description of Property.--(1) The exact acreage and 
     legal description of the real property to be conveyed under 
     subsection (a)(1) shall be determined by a survey 
     satisfactory to the Secretary. The cost of the survey shall 
     be borne by the Commonwealth.
       (2) The exact acreage and legal description of the real 
     property to be conveyed under subsection (a)(2) are as set 
     forth in Army easement DACA 31-3-96-440.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional

[[Page 18562]]

     terms and conditions in connection with the conveyance under 
     subsection (a) as the Secretary considers appropriate to 
     protect the interests of the United States.


     SEC. 2822. MODIFICATION OF AUTHORITY FOR CONVEYANCE OF NAVAL 
                   COMPUTER AND TELECOMMUNICATIONS STATION, 
                   CUTLER, MAINE.

       Section 2853(a) of the Military Construction Authorization 
     Act for Fiscal Year 2001 (division B of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted by Public Law 106-398); 114 Stat. 1654A-430) is 
     amended by inserting ``any or'' before ``all right''.

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

       (a) Transfer of Administrative Jurisdiction.--(1) The 
     Secretary of the Navy may transfer to the Secretary of the 
     Interior administrative jurisdiction of a parcel of real 
     property, including any improvements thereon and 
     appurtenances thereto, consisting of approximately 26 acres 
     as generally depicted as Tract 15-116 on the map entitled 
     ``Acadia National Park Schoodic Point Area'', numbered 123/
     80,418 and dated May 2001. The map shall be on file and 
     available for inspection in the appropriate offices of the 
     National Park Service.
       (2) The transfer authorized by this subsection shall occur, 
     if at all, concurrently with the reversion of administrative 
     jurisdiction of a parcel of real property consisting of 
     approximately 71 acres, as depicted as Tract 15-115 on the 
     map referred to in paragraph (1), from the Secretary of the 
     Navy to the Secretary of the Interior as authorized by Public 
     Law 80-260 (61 Stat. 519) and to be executed on or about June 
     30, 2002.
       (b) Conveyance Authorized.--The Secretary of the Navy may 
     convey, without consideration, to the State of Maine, any 
     political subdivision of the State of Maine, or any tax-
     supported agency in the State of Maine, all right, title, and 
     interest of the United States in and to any of the parcels of 
     real property, including any improvements thereon and 
     appurtenances thereto, consisting of approximately 485 acres 
     and comprising the former facilities of the Naval Security 
     Group Activity, Winter Harbor, Maine, located in Hancock 
     County, Maine, less the real property described in subsection 
     (a)(1), for the purpose of economic redevelopment.
       (c) Transfer of Personal Property.--The Secretary of the 
     Navy may transfer, without consideration, to the Secretary of 
     the Interior in the case of the real property transferred 
     under subsection (a), or to any recipient of such real 
     property in the case of real property conveyed under 
     subsection (b), any or all personal property associated with 
     such real property so transferred or conveyed, including any 
     personal property required to continue the maintenance of the 
     infrastructure of such real property (including the 
     generators for an uninterrupted power supply in building 154 
     at the Corea site).
       (d) Maintenance of Property Pending Conveyance.--(1) The 
     Secretary of the Navy shall maintain any real property, 
     including any improvements thereon, appurtenances thereto, 
     and supporting infrastructure, to be conveyed under 
     subsection (b) in accordance with the protection and 
     maintenance standards specified in section 101-47.4913 of 
     title 41, Code of Federal Regulations, until the earlier of--
       (A) the date of the conveyance of such real property under 
     subsection (b); or
       (B) September 30, 2003.
       (2) The requirement in paragraph (1) shall not be construed 
     as authority to improve the real property, improvements, and 
     infrastructure referred to in that paragraph so as to bring 
     such real property, improvements, or infrastructure into 
     compliance with any zoning or property maintenance codes or 
     to repair any damage to such improvements and infrastructure 
     through an Act of God.
       (e) Interim Lease.--(1) Until such time as any parcel of 
     real property to be conveyed under subsection (b) is conveyed 
     by deed under that subsection, the Secretary of the Navy may 
     lease such parcel to any person or entity determined by the 
     Secretary to be an appropriate lessee of such parcel.
       (2) The amount of rent for a lease under paragraph (1) 
     shall be the amount determined by the Secretary to be 
     appropriate, and may be an amount less than the fair market 
     value of the lease.
       (3) Notwithstanding any other provision of law, the 
     Secretary shall credit any amount received for a lease of 
     real property under paragraph (1) to the appropriation or 
     account providing funds for the operation and maintenance of 
     such property or for the procurement of utility services for 
     such property. Amounts so credited shall be merged with funds 
     in the appropriation or account to which credited, and shall 
     be available for the same purposes, and subject to the same 
     conditions and limitations, as the funds with which merged.
       (f) Reimbursement for Environmental and Other 
     Assessments.--(1) The Secretary of the Navy may require each 
     recipient of real property conveyed under subsection (b) to 
     reimburse the Secretary for the costs incurred by the 
     Secretary for any environmental assessment, study, or 
     analysis carried out by the Secretary with respect to such 
     property before completing the conveyance under that 
     subsection.
       (2) The amount of any reimbursement required under 
     paragraph (1) shall be determined by the Secretary, but may 
     not exceed the cost of the assessment, study, or analysis for 
     which reimbursement is required.
       (3) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received by the Secretary under this 
     subsection.
       (g) Description of Property.--The exact acreage and legal 
     description of the real property transferred under subsection 
     (a), and each parcel of real property conveyed under 
     subsection (b), shall be determined by a survey satisfactory 
     to the Secretary of the Navy. The cost of any survey under 
     the preceding sentence for real property conveyed under 
     subsection (b) shall be borne by the recipient of the real 
     property.
       (h) Additional Terms and Conditions.--The Secretary of the 
     Navy may require such additional terms and conditions in 
     connection with any conveyance under subsection (b), and any 
     lease under subsection (e), as the Secretary considers 
     appropriate to protect the interests of the United States.

     SEC. 2824. CONVEYANCE OF SEGMENT OF LORING PETROLEUM 
                   PIPELINE, MAINE, AND RELATED EASEMENTS.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to the Loring Development 
     Authority, Maine (in this section referred to as the 
     ``Authority''), all right, title, and interest of the United 
     States in and to the segment of the Loring Petroleum (POL) 
     Pipeline, Maine, consisting of approximately 27 miles in 
     length and running between the Searsport terminal and Bangor 
     Air National Guard Base.
       (b) Related Easements.--As part of the conveyance 
     authorized by subsection (a), the Secretary may convey to the 
     Authority, without consideration, all right, title, and 
     interest of the United States in and to any easements or 
     rights-of-way necessary for the operation or maintenance of 
     the segment of pipeline conveyed under that subsection.
       (c) Reimbursement for Costs of Conveyance.--(1) The 
     Authority shall reimburse the Secretary for the costs 
     incurred by the Secretary for any environmental assessment, 
     study, or analysis, or for any other expense incurred by the 
     Secretary, for a conveyance authorized by this section.
       (2) The amount of the reimbursement under paragraph (1) for 
     an activity shall be determined by the Secretary, but may not 
     exceed the cost of the activity.
       (3) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received by the Secretary under this 
     subsection.
       (d) Description of Property.--The exact acreage and legal 
     description of the segment of pipeline conveyed under 
     subsection (a), and of any easements or rights-of-way 
     conveyed under subsection (b), shall be determined by surveys 
     and other means satisfactory to the Secretary. The cost of 
     any survey or other services performed at the direction of 
     the Secretary under the preceding sentence shall be borne by 
     the Authority.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2825. LAND CONVEYANCE, PETROLEUM TERMINAL SERVING FORMER 
                   LORING AIR FORCE BASE AND BANGOR AIR NATIONAL 
                   GUARD BASE, MAINE.

       (a) Conveyance Authorized.--(1) The Secretary of the Air 
     Force may convey to the Maine Port Authority of the State of 
     Maine (in this section referred to as the ``Authority'') all 
     right, title, and interest of the United States in and to the 
     Petroleum Terminal (POL) at Mack Point, Searsport, Maine, 
     which served former Loring Air Force Base and Bangor Air 
     National Guard Base, Maine.
       (2) The conveyance under paragraph (1) may include the 
     following:
       (A) A parcel of real property, including any improvements 
     thereon, consisting of approximately 20 acres and comprising 
     a portion of the Petroleum Terminal.
       (B) Any additional fuel tanks, other improvements, and 
     equipment located on the 43-acre parcel of property adjacent 
     to the property described in subparagraph (A), and currently 
     leased by the Secretary, which constitutes the remaining 
     portion of the Petroleum Terminal.
       (b) Condition of Conveyance.--The Secretary may not make 
     the conveyance under subsection (a) unless the Authority 
     agrees to utilize the property to be conveyed under that 
     subsection solely for economic development purposes.
       (c) Consideration.--(1) As consideration for the conveyance 
     under subsection (a), the Authority shall lease to the Air 
     Force approximately one acre of the real property conveyed 
     under that subsection, together with any improvements 
     thereon, that constitutes the Aerospace Fuels Laboratory 
     (also known as Building 14).
       (2) The real property leased under this subsection shall 
     include the parking lot, outbuildings, and other improvements 
     associated with the Aerospace Fuels Laboratory and such 
     easements of ingress and egress to the real property, 
     including easements for utilities, as are required for the 
     operations of the Aerospace Fuels Laboratory.
       (3) As part of the lease of real property under this 
     subsection, the Authority shall

[[Page 18563]]

     maintain around the real property for the term of the lease a 
     zone, not less than 75 feet in depth, free of improvements or 
     encumbrances.
       (4) The lease under this subsection shall be without cost 
     to the United States.
       (5) The term of the lease under this subsection may not 
     exceed 25 years. If operations at the Aerospace Fuels 
     Laboratory cease before the expiration of the term of the 
     lease otherwise provided for under this subsection, the lease 
     shall be deemed to have expired upon the cessation of such 
     operations.
       (d) Conveyance Contingent on Expiration of Lease of Fuel 
     Tanks.--The Secretary may not make the conveyance under 
     subsection (a) until the expiration of the lease referred to 
     in paragraph (2)(B) of that subsection.
       (e) Environmental Remediation.--The Secretary may not make 
     the conveyance under subsection (a) until the completion of 
     any environmental remediation required by law with respect to 
     the property to be conveyed under that subsection.
       (f) Reimbursement for Costs of Conveyance.--(1) The 
     Authority shall reimburse the Secretary for the costs 
     incurred by the Secretary for any environmental assessment, 
     study, or analysis, or for any other expense incurred by the 
     Secretary, for the conveyance authorized by subsection (a).
       (2) The amount of the reimbursement under paragraph (1) for 
     an activity shall be determined by the Secretary, but may not 
     exceed the cost of the activity.
       (3) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received by the Secretary under this 
     subsection.
       (g) Description of Property.--The exact acreage and legal 
     description of the real property conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the 
     Authority.
       (h) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a), and the lease under 
     subsection (c), as the Secretary considers appropriate to 
     protect the interests of the United States.

     SEC. 2826. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE 
                   PLANT, TOLEDO, OHIO.

       (a) Conveyance Authorized.--(1) The Secretary of the Navy 
     may convey, without consideration, to the Toledo-Lucas County 
     Port Authority, Ohio (in this section referred to as the 
     ``Port Authority''), any or all right, title, and interest of 
     the United States in and to a parcel of real property, 
     including any improvements thereon, consisting of 
     approximately 29 acres and comprising the Naval Weapons 
     Industrial Reserve Plant, Toledo, Ohio.
       (2) The Secretary may include in the conveyance under 
     paragraph (1) such facilities, equipment, fixtures, and other 
     personal property located or based on the parcel conveyed 
     under that paragraph, or used in connection with the parcel, 
     as the Secretary determines to be excess to the Navy.
       (b) Lease Authority.--Until such time as the real property 
     described in subsection (a)(1) is conveyed by deed, the 
     Secretary may lease such real property, and any personal 
     property described in subsection (a)(2), to the Port 
     Authority in exchange for such security, fire protection, and 
     maintenance services as the Secretary considers appropriate.
       (c) Conditions of Conveyance.--The conveyance under 
     subsection (a), and any lease under subsection (b), shall be 
     subject to the conditions that the Port Authority--
       (1) accept the real and personal property concerned in 
     their condition at the time of the conveyance or lease, as 
     the case may be; and
       (2) except as provided in subsection (d), use the real and 
     personal property concerned, whether directly or through an 
     agreement with a public or private entity, for economic 
     development or such other public purposes as the Port 
     Authority considers appropriate.
       (d) Subsequent Use.--(1) The Port Authority may, following 
     entry into a lease under subsection (b) for real property, 
     personal property, or both, sublease such property for a 
     purpose set forth in subsection (c)(2) if the Secretary 
     approves the sublease of such property for that purpose.
       (2) The Port Authority may, following the conveyance of 
     real property under subsection (a), lease or reconvey such 
     real property, and any personal property conveyed with such 
     real property under that subsection, for a purpose set forth 
     in subsection (c)(2).
       (e) Reimbursement for Costs of Conveyance and Lease.--(1) 
     The Port Authority shall reimburse the Secretary for the 
     costs incurred by the Secretary for any environmental 
     assessment, study, or analysis, or for any other expense 
     incurred by the Secretary, for the conveyance authorized by 
     subsection (a) or any lease authorized by subsection (b).
       (2) The amount of the reimbursement under paragraph (1) for 
     an activity shall be determined by the Secretary, but may not 
     exceed the cost of the activity.
       (3) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received by the Secretary under this 
     subsection.
       (f) Description of Property.--The exact acreage and legal 
     of the real property to be conveyed under subsection (a)(1), 
     and an appropriate inventory or other description of the 
     personal property to be conveyed under subsection (a)(2), 
     shall be determined by a survey and other means satisfactory 
     to the Secretary.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a)(1), and any lease 
     under subsection (b), as the Secretary considers appropriate 
     to protect the interests of the United States.

     SEC. 2827. MODIFICATION OF LAND CONVEYANCE, MUKILTEO TANK 
                   FARM, EVERETT, WASHINGTON.

       (a) Modification.--Section 2866 of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of the Floyd D. Spence National Defense Authorization Act 
     for Fiscal Year 2001 (as enacted by Public Law 106-398); 114 
     Stat. 436) is amended--
       (1) in subsection (a), by striking ``22 acres'' and 
     inserting ``20.9 acres'';
       (2) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (c), (d), (e), and (f), respectively; and
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Transfer of Jurisdiction.--(1) At the same time the 
     Secretary of the Air Force makes the conveyance authorized by 
     subsection (a), the Secretary shall transfer to the Secretary 
     of Commerce administrative jurisdiction over a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 1.1 acres located at the Mukilteo Tank Farm and 
     including the National Marine Fisheries Service Mukilteo 
     Research Center facility.
       ``(2) The Secretary of Commerce may, with the consent of 
     the Port, exchange with the Port all or any portion of the 
     property received under paragraph (1) for a parcel of real 
     property of equal area at the Mukilteo Tank Farm that is 
     owned by the Port.
       ``(3) The Secretary of Commerce shall administer the 
     property under the jurisdiction of the Secretary under this 
     subsection through the Administrator of the National Oceanic 
     and Atmospheric Administration as part of the Administration.
       ``(4) The Administrator shall use the property under the 
     jurisdiction of the Secretary of Commerce under this 
     subsection as the location of a research facility, and may 
     construct a new facility on the property for such research 
     purposes as the Administrator considers appropriate.
       ``(5)(A) If after the 12-year period beginning on the date 
     of the enactment of the National Defense Authorization Act 
     for Fiscal Year 2002, the Administrator is not using any 
     portion of the real property under the jurisdiction of the 
     Secretary of Commerce under this subsection, the 
     Administrator shall convey, without consideration, to the 
     Port all right, title, and interest in and to such portion of 
     the real property, including improvements thereon.
       ``(B) The Port shall use any real property conveyed to the 
     Port under this paragraph for the purpose specified in 
     subsection (a).''.
       (b) Conforming Amendment.--The section heading for that 
     section is amended to read as follows:

     ``SEC. 2866. LAND CONVEYANCE AND TRANSFER, MUKILTEO TANK 
                   FARM, EVERETT, WASHINGTON.''.

     SEC. 2828. LAND CONVEYANCES, CHARLESTON AIR FORCE BASE, SOUTH 
                   CAROLINA.

       (a) Conveyance to State of South Carolina Authorized.--The 
     Secretary of the Air Force may convey, without consideration, 
     to the State of South Carolina (in this section referred to 
     as the ``State''), all right, title, and interest of the 
     United States in and to a portion (as determined under 
     subsection (c)) of the real property, including any 
     improvements thereon, consisting of approximately 24 acres at 
     Charleston Air Force Base, South Carolina, and comprising the 
     Air Force Family Housing Annex. The purpose of the conveyance 
     is to facilitate the Remount Road Project.
       (b) Conveyance to City of North Charleston Authorized.--The 
     Secretary may convey, without consideration, to the City of 
     North Charleston, South Carolina (in this section referred to 
     as the ``City''), all right, title, and interest of the 
     United States in and to a portion (as determined under 
     subsection (c)) of the real property, including any 
     improvements thereon, referred to in subsection (a). The 
     purpose of the conveyance is to permit the use of the 
     property by the City for municipal purposes.
       (c) Determination of Portions of Property To Be Conveyed.--
     (1) Subject to paragraph (2), the Secretary, the State, and 
     the City shall jointly determine the portion of the property 
     referred to in subsection (a) that is to be conveyed to the 
     State under subsection (a) and the portion of the property 
     that is to be conveyed to the City under subsection (b).
       (2) In determining under paragraph (1) the portions of 
     property to be conveyed under this section, the portion to be 
     conveyed to the State shall be the minimum portion of the 
     property required by the State for the purpose specified in 
     subsection (a), and the portion to be conveyed to the City 
     shall be the balance of the property.
       (d) Limitation on Conveyances.--The Secretary may not carry 
     out the conveyance of property authorized by subsection (a) 
     or subsection (b) until the completion of an assessment of 
     environmental contamination of the

[[Page 18564]]

     property authorized to be conveyed by such subsection for 
     purposes of determining responsibility for environmental 
     remediation of such property.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsections (a) and (b) shall be determined by surveys 
     satisfactory to the Secretary. The cost of the survey for the 
     property to be conveyed under subsection (a) shall be borne 
     by the State, and the cost of the survey for the property to 
     be conveyed under subsection (b) shall be borne by the City.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsections (a) and (b) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2829. LAND CONVEYANCE, FORT DES MOINES, IOWA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to Fort Des Moines Memorial 
     Park, Inc., a nonprofit organization (in this section 
     referred to as the ``Memorial Park''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 4.6 acres located at Fort Des Moines United 
     States Army Reserve Center, Des Moines, Iowa, for the purpose 
     of the establishment of the Fort Des Moines Memorial Park and 
     Education Center.
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     Memorial Park use the property for museum and park purposes.
       (c) Reversion.--If the Secretary determines at any time 
     that the real property conveyed under subsection (a) is not 
     being used for museum and park purposes, all right, title, 
     and interest in and to the real property, including any 
     improvements thereon, shall revert to the United States, and 
     the United States shall have the right of immediate entry 
     thereon.
       (d) Reimbursement for Costs of Conveyance.--(1) The 
     Memorial Park shall reimburse the Secretary for the costs 
     incurred by the Secretary for any environmental assessment, 
     study, or analysis, or for any other expenses incurred by the 
     Secretary, for the conveyance authorized in (a).
       (2) The amount of the reimbursement under paragraph (1) for 
     any activity shall be determined by the Secretary, but may 
     not exceed the cost of such activity.
       (3) Section 2695(c) of title 10 United States Code, shall 
     apply to any amount received under this subsection.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by survey satisfactory to 
     the Secretary. The cost of the survey shall be borne by the 
     Memorial Park.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2830. LAND CONVEYANCES, CERTAIN FORMER MINUTEMAN III 
                   ICBM FACILITIES IN NORTH DAKOTA.

       (a) Conveyances Required.--(1) The Secretary of the Air 
     Force may convey, without consideration, to the State 
     Historical Society of North Dakota (in this section referred 
     to as the ``Historical Society'') all right, title, and 
     interest of the United States in and to parcels of real 
     property, together with any improvements thereon, of the 
     Minuteman III ICBM facilities of the former 321st Missile 
     Group at Grand Forks Air Force Base, North Dakota, as 
     follows:
       (A) The parcel consisting of the launch facility designated 
     ``November-33''.
       (B) The parcel consisting of the missile alert facility and 
     launch control center designated ``Oscar-O''.
       (2) The purpose of the conveyance of the facilities is to 
     provide for the establishment of an historical site allowing 
     for the preservation, protection, and interpretation of the 
     facilities.
       (b) Consultation.--The Secretary shall consult with the 
     Secretary of State and the Secretary of Defense in order to 
     ensure that the conveyances required by subsection (a) are 
     carried out in accordance with applicable treaties.
       (c) Historic Site.--The Secretary may, in cooperation with 
     the Historical Society, enter into one or more cooperative 
     agreements with appropriate public or private entities or 
     individuals in order to provide for the establishment and 
     maintenance of the historic site referred to in subsection 
     (a)(2).

     SEC. 2831. LAND ACQUISITION, PERQUIMANS COUNTY, NORTH 
                   CAROLINA.

       The Secretary of the Navy may, using funds previously 
     appropriated for such purpose, acquire any and all right, 
     title, and interest in and to a parcel of real property, 
     including improvements thereon, consisting of approximately 
     240 acres, or any portion thereof, in Perquimans County, 
     North Carolina, for purposes of including such parcel in the 
     Harvey Point Defense Testing Activity, Hertford, North 
     Carolina.

     SEC. 2832. LAND CONVEYANCE, ARMY RESERVE CENTER, KEWAUNEE, 
                   WISCONSIN.

       (a) Conveyance Required.--The Administrator of General 
     Services may convey, without consideration, to the City of 
     Kewaunee, Wisconsin (in this section referred to as the 
     ``City''), all right, title, and interest of the United 
     States in and to a parcel of Federal real property, including 
     improvements thereon, that is located at 401 5th Street in 
     Kewaunee, Wisconsin, and contains an excess Army Reserve 
     Center. After such conveyance, the property may be used and 
     occupied only by the City, or by another local or State 
     government entity approved by the City.
       (b) 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.
       (c) Reversionary Interest.--During the 20-year period 
     beginning on the date the Administrator makes the conveyance 
     under subsection (a), if the Administrator determines that 
     the conveyed property is not being used and occupied in 
     accordance with such subsection, all right, title, and 
     interest in and to the property, including any improvements 
     thereon, shall revert to the United States. Upon reversion, 
     the United States shall immediately proceed to a public sale 
     of the property.
       (d) Additional Terms and Conditions.--(1) The property 
     shall not be used for commercial purposes.
       (2) 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.

     SEC. 2833. TREATMENT OF AMOUNTS RECEIVED.

       Any net proceeds received by the United States as payment 
     under subsection (c) of section 2832 shall be deposited into 
     the Land and Water Conservation Fund.

                       Subtitle D--Other Matters

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

       (a) Authority To Enter into Agreement.--(1) The Secretary 
     of the Army may enter into an agreement with the Military 
     Heritage Foundation, a not-for-profit organization, for the 
     design, construction, and operation of a facility for the 
     United States Army Heritage and Education Center at Carlisle 
     Barracks, Pennsylvania.
       (2) The facility referred to in paragraph (1) is to be used 
     for curation and storage of artifacts, research facilities, 
     classrooms, and offices, and for education and other 
     activities, agreed to by the Secretary, relating to the 
     heritage of the Army. The facility may also be used to 
     support such education and training as the Secretary 
     considers appropriate.
       (b) Design and Construction.--The Secretary may, at the 
     election of the Secretary--
       (1) accept funds from the Military Heritage Foundation for 
     the design and construction of the facility referred to in 
     subsection (a); or
       (2) permit the Military Heritage Foundation to contract for 
     the design and construction of the facility.
       (c) Acceptance of Facility.--(1) Upon satisfactory 
     completion, as determined by the Secretary, of the facility 
     referred to in subsection (a), and upon the satisfaction of 
     any and all financial obligations incident thereto by the 
     Military Heritage Foundation, the Secretary shall accept the 
     facility from the Military Heritage Foundation, and all 
     right, title, and interest in and to the facility shall vest 
     in the United States.
       (2) Upon becoming property of the United States, the 
     facility shall be under the jurisdiction of the Secretary.
       (d) Use of Certain Gifts.--(1) Under regulations prescribed 
     by the Secretary, the Commandant of the Army War College may, 
     without regard to section 2601 of title 10, United States 
     Code, accept, hold, administer, invest, and spend any gift, 
     devise, or bequest of personnel property of a value of 
     $250,000 or less made to the United States if such gift, 
     devise, or bequest is for the benefit of the United States 
     Army Heritage and Education Center.
       (2) The Secretary may pay or authorize the payment of any 
     reasonable and necessary expense in connection with the 
     conveyance or transfer of a gift, devise, or bequest under 
     this subsection.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the agreement authorized to be entered into by 
     subsection (a) as the Secretary considers appropriate to 
     protect the interest of the United States.

     SEC. 2842. REPEAL OF LIMITATION ON COST OF RENOVATION OF 
                   PENTAGON RESERVATION.

       Section 2864 of the Military Construction Authorization Act 
     for Fiscal Year 1997 (division B of Public Law 104-201; 110 
     Stat. 2806) is repealed.

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

       (a) Designation.--The Oxford Army National Guard Readiness 
     Center, Oxford, Mississippi, shall be known and designated as 
     the ``Patricia C. Lamar Army National Guard Readiness 
     Center''.

[[Page 18565]]

       (b) Reference to Readiness Center.--Any reference to the 
     Oxford Army National Guard Readiness Center, Oxford, 
     Mississippi, in any law, regulation, map, document, record, 
     or other paper of the United States shall be considered to be 
     a reference to the Patricia C. Lamar Army National Guard 
     Readiness Center.

     SEC. 2844. CONSTRUCTION OF PARKING GARAGE AT FORT DERUSSY, 
                   HAWAII.

       (a) Authority To Enter Into Agreement for Construction.--
     The Secretary of the Army may authorize the Army Morale, 
     Welfare, and Recreation Fund, a non-appropriated fund 
     instrumentality of the Department of Defense (in this section 
     referred to as the ``Fund''), to enter into an agreement with 
     a governmental, quasi-governmental, or commercial entity for 
     the construction of a parking garage at Fort DeRussy, Hawaii.
       (b) Form of Agreement.--The agreement under subsection (a) 
     may take the form of a non-appropriated fund contract, 
     conditional gift, or other agreement determined by the Fund 
     to be appropriate for purposes of construction of the parking 
     garage.
       (c) Use of Parking Garage by Public.--The agreement under 
     subsection (a) may permit the use by the general public of 
     the parking garage constructed under the agreement if the 
     Fund determines that use of the parking garage by the general 
     public will be advantageous to the Fund.
       (d) Treatment of Revenues of Fund Parking Garages at Fort 
     DeRussy.--Notwithstanding any other provision of law, amounts 
     received by the Fund by reason of operation of parking 
     garages at Fort DeRussy, including the parking garage 
     constructed under the agreement under subsection (a), shall 
     be treated as non-appropriated funds, and shall accrue to the 
     benefit of the Fund or its component funds, including the 
     Armed Forces Recreation Center-Hawaii (Hale Koa Hotel).

     SEC. 2845. ACCEPTANCE OF CONTRIBUTIONS TO REPAIR OR 
                   ESTABLISHMENT MEMORIAL AT PENTAGON RESERVATION.

       (a) Authority To Accept Contributions.--The Secretary of 
     Defense may accept contributions made for the purpose of 
     establishing a memorial or assisting in the repair of the 
     damage caused to the Pentagon Reservation by the terrorist 
     attack that occurred on September 11, 2001.
       (b) Deposit of Contributions.--The Secretary shall deposit 
     contributions accepted under subsection (a) in the Pentagon 
     Reservation Maintenance Revolving Fund established by section 
     2674(e) of title 10, United States Code.

            TITLE XXIX--DEFENSE BASE CLOSURE AND REALIGNMENT

           Subtitle A--Modifications of 1990 Base Closure Law

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

       (a) Commission Matters.--
       (1) Appointment.--Section 2902(c)(1) of the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note) is amended--
       (A) in subparagraph (B)--
       (i) by striking ``and'' at the end of clause (ii);
       (ii) by striking the period at the end of clause (iii) and 
     inserting ``; and''; and
       (iii) by adding at the end the following new clause:
       ``(iv) by no later than January 24, 2003, in the case of 
     members of the Commission whose terms will expire at the end 
     of the first session of the 108th Congress.''; and
       (B) in subparagraph (C), by striking ``or for 1995 in 
     clause (iii) of such subparagraph'' and inserting ``, for 
     1995 in clause (iii) of that subparagraph, or for 2003 in 
     clause (iv) of that subparagraph''.
       (2) Meetings.--Section 2902(e) of that Act is amended by 
     striking ``and 1995'' and inserting ``1995, and 2003''.
       (3) Funding.--Section 2902(k) of that Act is amended by 
     adding at the end the following new paragraph (4):
       ``(4) If no funds are appropriated to the Commission by the 
     end of the second session of the 107th Congress for the 
     activities of the Commission in 2003, the Secretary may 
     transfer to the Commission for purposes of its activities 
     under this part in that year such funds as the Commission may 
     require to carry out such activities. The Secretary may 
     transfer funds under the preceding sentence from any funds 
     available to the Secretary. Funds so transferred shall remain 
     available to the Commission for such purposes until 
     expended.''.
       (4) Termination.--Section 2902(l) of that Act is amended by 
     striking ``December 31, 1995'' and inserting ``December 31, 
     2003''.
       (b) Procedures.--
       (1) Force-structure plan.--Section 2903(a) of that Act is 
     amended--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (B) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2)(A) As part of the budget justification documents 
     submitted to Congress in support of the budget for the 
     Department of Defense for fiscal year 2003, the Secretary 
     shall include a force-structure plan for the Armed Forces 
     based on the assessment of the Secretary in the quadrennial 
     defense review under section 118 of title 10, United States 
     Code, in 2001 of the probable threats to the national 
     security during the twenty-year period beginning with fiscal 
     year 2003.
       ``(B) The Secretary may revise the force-structure plan 
     submitted under subparagraph (A). If the Secretary revises 
     the force-structure plan, the Secretary shall submit the 
     revised force-structure plan to Congress as part of the 
     budget justification documents submitted to Congress in 
     support of the budget for the Department of Defense for 
     fiscal year 2004.''; and
       (C) in paragraph (3), as redesignated by subparagraph (A) 
     of this paragraph--
       (i) in the matter preceding subparagraph (A), by striking 
     ``Such plan'' and inserting ``Each force-structure plan under 
     this subsection''; and
       (ii) in subparagraph (A), by striking ``referred to in 
     paragraph (1)'' and inserting ``on which such force-structure 
     plan is based''.
       (2) Selection criteria.--Section 2903(b) of that Act is 
     amended--
       (A) in paragraph (1), by inserting ``and by no later than 
     December 31, 2001, for purposes of activities of the 
     Commission under this part in 2003,'' after ``December 31, 
     1990,''; and
       (B) in paragraph (2)(A)--
       (i) in the first sentence, by inserting ``and by no later 
     than February 15, 2002, for purposes of activities of the 
     Commission under this part in 2003,'' after ``February 15, 
     1991,''; and
       (ii) in the second sentence, by inserting ``, or enacted on 
     or before March 31, 2002, in the case of criteria published 
     and transmitted under the preceding sentence in 2001'' after 
     ``March 15, 1991''.
       (3) Department of defense recommendations.--Section 
     2903(c)(1) of that Act is amended by striking ``and March 1, 
     1995'' and inserting ``March 1, 1995, and March 14, 2003''.
       (4) Commission review and recommendations.--Section 2903(d) 
     of that Act is amended--
       (A) in paragraph (2)(A), by inserting ``or by no later than 
     July 7 in the case of recommendations in 2003,'' after 
     ``pursuant to subsection (c),'';
       (B) in paragraph (4), by inserting ``or after July 7 in the 
     case of recommendations in 2003,'' after ``under this 
     subsection,''; and
       (C) in paragraph (5)(B), by inserting ``or by no later than 
     May 1 in the case of such recommendations in 2003,'' after 
     ``such recommendations,''.
       (5) Review by president.--Section 2903(e) of that Act is 
     amended--
       (A) in paragraph (1), by inserting ``or by no later than 
     July 22 in the case of recommendations in 2003,'' after 
     ``under subsection (d),'';
       (B) in the second sentence of paragraph (3), by inserting 
     ``or by no later than August 18 in the case of 2003,'' after 
     ``the year concerned,''; and
       (C) in paragraph (5), by inserting ``or by September 3 in 
     the case of recommendations in 2003,'' after ``under this 
     part,''.
       (c) Relationship to Other Base Closure Authority.--Section 
     2909(a) of that Act is amended by striking ``December 31, 
     1995,'' and inserting ``December 31, 2003,''.

     SEC. 2902. BASE CLOSURE ACCOUNT 2003.

       (a) Establishment.--The Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) is amended by inserting after 
     section 2906 the following new section:

     ``SEC. 2906A. BASE CLOSURE ACCOUNT 2003.

       ``(a) In General.--(1) There is hereby established on the 
     books of the Treasury an account to be known as the 
     `Department of Defense Base Closure Account 2003' (in this 
     section referred to as the `Account'). The Account shall be 
     administered by the Secretary as a single account.
       ``(2) There shall be deposited into the Account--
       ``(A) funds authorized for and appropriated to the Account;
       ``(B) any funds that the Secretary may, subject to approval 
     in an appropriation Act, transfer to the Account from funds 
     appropriated to the Department of Defense for any purpose, 
     except that such funds may be transferred only after the date 
     on which the Secretary transmits written notice of, and 
     justification for, such transfer to the congressional defense 
     committees; and
       ``(C) except as provided in subsection (d), proceeds 
     received from the lease, transfer, or disposal of any 
     property at a military installation that is closed or 
     realigned under this part pursuant to a closure or 
     realignment the date of approval of which is after September 
     30, 2003.
       ``(3) The Account shall be closed at the time and in the 
     manner provided for appropriation accounts under section 1555 
     of title 31, United States Code. Unobligated funds which 
     remain in the Account upon closure shall be held by the 
     Secretary of the Treasury until transferred by law after the 
     congressional defense committees receive the final report 
     transmitted under subsection (c)(2).
       ``(b) Use of Funds.--(1) The Secretary may use the funds in 
     the Account only for the purposes described in section 2905 
     with respect to military installations the date of approval 
     of closure or realignment of which is after September 30, 
     2003.
       ``(2) When a decision is made to use funds in the Account 
     to carry out a construction project under section 2905(a) and 
     the cost of the project will exceed the maximum amount 
     authorized by law for a minor military construction project, 
     the Secretary

[[Page 18566]]

     shall notify in writing the congressional defense committees 
     of the nature of, and justification for, the project and the 
     amount of expenditures for such project. Any such 
     construction project may be carried out without regard to 
     section 2802(a) of title 10, United States Code.
       ``(c) Reports.--(1)(A) No later than 60 days after the end 
     of each fiscal year in which the Secretary carries out 
     activities under this part using amounts in the Account, the 
     Secretary shall transmit a report to the congressional 
     defense committees of the amount and nature of the deposits 
     into, and the expenditures from, the Account during such 
     fiscal year and of the amount and nature of other 
     expenditures made pursuant to section 2905(a) during such 
     fiscal year.
       ``(B) The report for a fiscal year shall include the 
     following:
       ``(i) The obligations and expenditures from the Account 
     during the fiscal year, identified by subaccount, for each 
     military department and Defense Agency.
       ``(ii) The fiscal year in which appropriations for such 
     expenditures were made and the fiscal year in which funds 
     were obligated for such expenditures.
       ``(iii) Each military construction project for which such 
     obligations and expenditures were made, identified by 
     installation and project title.
       ``(iv) A description and explanation of the extent, if any, 
     to which expenditures for military construction projects for 
     the fiscal year differed from proposals for projects and 
     funding levels that were included in the justification 
     transmitted to Congress under section 2907(1), or otherwise, 
     for the funding proposals for the Account for such fiscal 
     year, including an explanation of--
       ``(I) any failure to carry out military construction 
     projects that were so proposed; and
       ``(II) any expenditures for military construction projects 
     that were not so proposed.
       ``(2) No later than 60 days after the termination of the 
     authority of the Secretary to carry out a closure or 
     realignment under this part with respect to military 
     installations the date of approval of closure or realignment 
     of which is after September 30, 2003, and no later than 60 
     days after the closure of the Account under subsection 
     (a)(3), the Secretary shall transmit to the congressional 
     defense committees a report containing an accounting of--
       ``(A) all the funds deposited into and expended from the 
     Account or otherwise expended under this part with respect to 
     such installations; and
       ``(B) any amount remaining in the Account.
       ``(d) Disposal or Transfer of Commissary Stores and 
     Property Purchased With Nonappropriated Funds.--(1) If any 
     real property or facility acquired, constructed, or improved 
     (in whole or in part) with commissary store funds or 
     nonappropriated funds is transferred or disposed of in 
     connection with the closure or realignment of a military 
     installation under this part the date of approval of closure 
     or realignment of which is after September 30, 2003, a 
     portion of the proceeds of the transfer or other disposal of 
     property on that installation shall be deposited in the 
     reserve account established under section 204(b)(7)(C) of the 
     Defense Authorization Amendments and Base Closure and 
     Realignment Act (10 U.S.C. 2687 note).
       ``(2) The amount so deposited shall be equal to the 
     depreciated value of the investment made with such funds in 
     the acquisition, construction, or improvement of that 
     particular real property or facility. The depreciated value 
     of the investment shall be computed in accordance with 
     regulations prescribed by the Secretary of Defense.
       ``(3) The Secretary may use amounts in the account (in such 
     an aggregate amount as is provided in advance in 
     appropriation Acts) for the purpose of acquiring, 
     constructing, and improving--
       ``(A) commissary stores; and
       ``(B) real property and facilities for nonappropriated fund 
     instrumentalities.
       ``(4) In this subsection, the terms `commissary store 
     funds', `nonappropriated funds', and `nonappropriated fund 
     instrumentality' shall have the meaning given those terms in 
     section 2906(d)(4).
       ``(e) Account Exclusive Source of Funds for Environmental 
     Restoration Projects.--Except as provided in section 2906(e) 
     with respect to funds in the Department of Defense Base 
     Closure Account 1990 under section 2906 and except for funds 
     deposited into the Account under subsection (a), funds 
     appropriated to the Department of Defense may not be used for 
     purposes described in section 2905(a)(1)(C). The prohibition 
     in this subsection shall expire upon the closure of the 
     Account under subsection (a)(3).''.
       (b) Conforming Amendments.--Section 2906 of that Act is 
     amended--
       (1) in subsection (a)(2)(C), by inserting ``the date of 
     approval of closure or realignment of which is before 
     September 30, 2003'' after ``under this part'';
       (2) in subsection (b)(1), by inserting ``with respect to 
     military installations the date of approval of closure or 
     realignment of which is before September 30, 2003,'' after 
     ``section 2905'';
       (3) in subsection (c)(2)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``with respect to military installations the date of approval 
     of closure or realignment of which is before September 30, 
     2003,'' after ``under this part''; and
       (B) in subparagraph (A), by inserting ``with respect to 
     such installations'' after ``under this part'';
       (4) in subsection (d)(1), by inserting ``the date of 
     approval of closure or realignment of which is before 
     September 30, 2003'' after ``under this part''; and
       (5) in subsection (e), by striking ``Except for'' and 
     inserting ``Except as provided in section 2906A(e) with 
     respect to funds in the Department of Defense Base Closure 
     Account 2001 under section 2906A and except for''.
       (c) Clerical Amendment.--The section heading of section 
     2906 of that Act is amended to read as follows:

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

     SEC. 2903. ADDITIONAL MODIFICATIONS OF BASE CLOSURE 
                   AUTHORITIES.

       (a) Increase in Members of Commission.--Section 
     2902(c)(1)(A) of the Defense Base Closure and Realignment Act 
     of 1990 (part A of title XXIX of Public Law 101-510; 10 
     U.S.C. 2867 note) is amended by striking ``eight members'' 
     and inserting ``nine members''.
       (b) Selection Criteria.--Section 2903(b) of that Act is 
     amended by adding at the end the following new paragraphs:
       ``(3) The selection criteria shall ensure that military 
     value is the primary consideration in the making of 
     recommendations for the closure or realignment of military 
     installations under this part.
       ``(4) Any selection criteria proposed by the Secretary 
     relating to the cost savings or return on investment from the 
     proposed closure or realignment of a military installation 
     shall take into account the effect of the proposed closure or 
     realignment on the costs of any other Federal agency that may 
     be required to assume responsibility for activities at the 
     military installation.''.
       (c) Department of Defense Recommendations to Commission.--
     Section 2903(c) of that Act is amended--
       (1) by redesignating paragraphs (1), (2), (3), (4), (5), 
     and (6) as paragraphs (2), (3), (4), (6), (7), and (8), 
     respectively;
       (2) by inserting before paragraph (2), as so redesignated, 
     by the following new paragraph (1):
       ``(1) The Secretary shall carry out a comprehensive review 
     of the military installations of the Department of Defense 
     inside the United States based on the force-structure plan 
     submitted under subsection (a)(2), and the final criteria 
     transmitted under subsection (b)(2), in 2002. The review 
     shall cover every type of facility or other infrastructure 
     operated by the Department of Defense.'';
       (3) in paragraph (4), as so redesignated--
       (A) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively;
       (B) by inserting after subparagraph (A) the following new 
     subparagraph (B):
       ``(B) In considering military installations for closure or 
     realignment under this part in any year after 2001, the 
     Secretary shall consider the anticipated continuing need for 
     and availability of military installations worldwide. In 
     evaluating the need for military installations inside the 
     United States, the Secretary shall take into account current 
     restrictions on the use of military installations outside the 
     United States and the potential for future prohibitions or 
     restrictions on the use of such military installations.''; 
     and
       (C) in subparagraph (D), as so redesignated, by striking 
     ``subparagraph (B)'' and inserting ``subparagraph (C)'';
       (4) by inserting after paragraph (4), as so redesignated, 
     the following new paragraph (5):
       ``(5)(A) In making recommendations to the Commission under 
     this subsection in any year after 2001, the Secretary shall 
     consider any notice received from a local government in the 
     vicinity of a military installation that the government would 
     approve of the closure or realignment of the installation.
       ``(B) Notwithstanding the requirement in subparagraph (A), 
     the Secretary shall make the recommendations referred to in 
     that subparagraph based on the force-structure plan and final 
     criteria otherwise applicable to such recommendations under 
     this section.
       ``(C) The recommendations made by the Secretary under this 
     subsection in any year after 2001 shall include a statement 
     of the result of the consideration of any notice described in 
     subparagraph (A) that is received with respect to an 
     installation covered by such recommendations. The statement 
     shall set forth the reasons for the result.''; and
       (5) in paragraph (8), as so redesignated--
       (A) in the first sentence, by striking ``paragraph (5)(B)'' 
     and inserting ``paragraph (7)(B)''; and
       (B) in the second sentence, by striking ``24 hours'' and 
     inserting ``48 hours''.
       (d) Commission Changes in Recommendations of Secretary.--
     Section 2903(d)(2) of that Act is amended--
       (1) in subparagraph (B), by striking ``if'' and inserting 
     ``only if'';
       (2) in subparagraph (C)--
       (A) in clause (iii), by striking ``and'' at the end;
       (B) in clause (iv), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following new clause:

[[Page 18567]]

       ``(v) invites the Secretary to testify at a public hearing, 
     or a closed hearing if classified information is involved, on 
     the proposed change.'';
       (3) by redesignating subparagraph (E) as subparagraph (F); 
     and
       (4) by inserting after subparagraph (D) the following new 
     subparagraph (E):
       ``(E) In the case of a change not described in subparagraph 
     (D) in the recommendations made by the Secretary, the 
     Commission may make the change only if the Commission--
       ``(i) makes the determination required by subparagraph (B);
       ``(ii) determines that the change is consistent with the 
     force-structure plan and final criteria referred to in 
     subsection (c)(1); and
       ``(iii) invites the Secretary to testify at a public 
     hearing, or a closed hearing if classified information is 
     involved, on the proposed change.''.
       (e) Privatization in Place.--Section 2904(a) of that Act is 
     amended--
       (1) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (2) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) carry out the privatization in place of a military 
     installation recommended for closure or realignment by the 
     Commission in each such report after 2001 only if 
     privatization in place is a method of closure or realignment 
     of the installation specified in the recommendation of the 
     Commission in such report and is determined by the Commission 
     to be the most-cost effective method of implementation of the 
     recommendation;''.
       (f) Implementation.--
       (1) Payment for certain services for property leased back 
     by the united states.--Section 2905(b)(4)(E) of that Act is 
     amended--
       (1) in clause (iii), by striking ``A lease'' and inserting 
     ``Except as provided in clause (v), a lease''; and
       (2) by adding at the end the following new clause (v):
       ``(v)(I) Notwithstanding clause (iii), a lease under clause 
     (i) may require the United States to pay the redevelopment 
     authority concerned, or the assignee of the redevelopment 
     authority, for facility services and common area maintenance 
     provided for the leased property by the redevelopment 
     authority or assignee, as the case may be.
       ``(II) The rate charged the United States for services and 
     maintenance provided by a redevelopment authority or assignee 
     under subclause (I) may not exceed the rate charged non-
     Federal tenants leasing property at the installation for such 
     services and maintenance.
       ``(III) For purposes of this clause, facility services and 
     common area maintenance shall not include municipal services 
     that the State or local government concerned is required by 
     law to provide without direct charge to landowners, or 
     firefighting or security-guard functions.''.
       (2) Transfers in connection with payment of environmental 
     remediation.--Section 2905(e) of that Act is amended--
       (A) in paragraph (1)(B), by adding at the end the following 
     new sentence: ``The real property and facilities referred to 
     in subparagraph (A) are also the real property and facilities 
     located at an installation approved for closure or 
     realignment under this part after 2001 that are available for 
     purposes other than to assist the homeless.'';
       (B) in paragraph (2)(A), by striking ``to be paid by the 
     recipient of the property or facilities'' and inserting 
     ``otherwise to be paid by the Secretary with respect to the 
     property or facilities'';
       (C) by striking paragraph (6);
       (D) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), (6), respectively; and
       (E) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) In the case of property or facilities covered by a 
     certification under paragraph (2)(A), the Secretary may pay 
     the recipient of such property or facilities an amount equal 
     to the lesser of--
       ``(A) the amount by which the costs incurred by the 
     recipient of such property or facilities for all 
     environmental restoration, waste, management, and 
     environmental compliance activities with respect to such 
     property or facilities exceed the fair market value of such 
     property or facilities as specified in such certification; or
       ``(B) the amount by which the costs (as determined by the 
     Secretary) that would otherwise have been incurred by the 
     Secretary for such restoration, management, and activities 
     with respect to such property or facilities exceed the fair 
     market value of such property or facilities as so 
     specified.''.
       (3) Scope of indemnification of transferees in connection 
     with payment of environmental remediation.--Paragraph (6) of 
     section 2905(e) of that Act, as redesignated by paragraph (1) 
     of this subsection, is further amended by inserting before 
     the period the following: ``, except in the case of releases 
     or threatened releases not disclosed pursuant to paragraph 
     (4)''.

     SEC. 2904. TECHNICAL AND CLARIFYING AMENDMENTS.

       (a) Commencement of Period for Notice of Interest in 
     Property for Homeless.--Section 2905(b)(7)(D)(ii)(I) of the 
     Defense Base Closure and Realignment Act of 1990 (part A of 
     title XXIX of Public Law 101-510; 10 U.S.C. 2867 note) is 
     amended by striking ``that date'' and inserting ``the date of 
     publication of such determination in a newspaper of general 
     circulation in the communities in the vicinity of the 
     installation under subparagraph (B)(i)(IV)''.
       (b) Other Clarifying Amendments.--(1) That Act is further 
     amended by inserting ``or realignment'' after ``closure'' 
     each place it appears in the following provisions:
       (A) Section 2905(b)(3).
       (B) Section 2905(b)(5).
       (C) Section 2905(b)(7)(B)(iv).
       (D) Section 2905(b)(7)(N).
       (E) Section 2910(10)(B).
       (2) That Act is further amended by inserting ``or 
     realigned'' after ``closed'' each place it appears in the 
     following provisions:
       (A) Section 2905(b)(3)(C)(ii).
       (B) Section 2905(b)(3)(D).
       (C) Section 2905(b)(3)(E).
       (D) Section 2905(b)(4)(A).
       (E) Section 2905(b)(5)(A).
       (F) Section 2910(9).
       (G) Section 2910(10).
       (3) Section 2905(e)(1)(B) of that Act is amended by 
     inserting ``, or realigned or to be realigned,'' after 
     ``closed or to be closed''.

           Subtitle B--Modification of 1988 Base Closure Law

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

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

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

     SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       (a) In General.--Subject to subsection (b), funds are 
     hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 2002 for the activities of the 
     National Nuclear Security Administration in carrying out 
     programs necessary for national security in the amount of 
     $7,351,721,000, to be allocated as follows:
       (1) Weapons activities.--For weapons activities, 
     $5,481,795,000, to be allocated as follows:
       (A) For stewardship operation and maintenance, 
     $4,687,443,000, to be allocated as follows:
       (i) For directed stockpile work, $1,016,922,000.
       (ii) For campaigns, $2,137,300,000, to be allocated as 
     follows:

       (I) For operation and maintenance, $1,767,328,000.

[[Page 18568]]

       (II) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $369,972,000, to be allocated as follows:

       Project 01-D-101, distributed information systems 
     laboratory, Sandia National Laboratories, Livermore, 
     California, $5,400,000.
       Project 00-D-103, terascale simulation facility, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $22,000,000.
       Project 00-D-105, strategic computing complex, Los Alamos 
     National Laboratory, Los Alamos, New Mexico, $11,070,000.
       Project 00-D-107, joint computational engineering 
     laboratory, Sandia National Laboratories, Albuquerque, New 
     Mexico, $5,377,000.
       Project 98-D-125, tritium extraction facility, Savannah 
     River Plant, Aiken, South Carolina, $81,125,000.
       Project 96-D-111, national ignition facility (NIF), 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $245,000,000.
       (iii) For readiness in technical base and facilities, 
     $1,533,221,000, to be allocated as follows:

       (I) For operation and maintenance, $1,356,107,000.
       (II) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $177,114,000, to be allocated as follows:

       Project 02-D-101, microsystems and engineering sciences 
     applications (MESA), Sandia National Laboratories, 
     Albuquerque, New Mexico, $39,000,000.
       Project 02-D-103, project engineering and design (PE&D), 
     various locations, $31,130,000.
       Project 02-D-107, electrical power systems safety 
     communications and bus upgrades, Nevada Test Site, Nevada, 
     $3,507,000.
       Project 01-D-103, preliminary project design and 
     engineering, various locations, $16,379,000.
       Project 01-D-124, highly enriched uranium (HEU) materials 
     storage facility, Y-12 Plant, Oak Ridge, Tennessee, $0.
       Project 01-D-126, weapons evaluation test laboratory, 
     Pantex Plant, Amarillo, Texas, $7,700,000.
       Project 01-D-800, sensitive compartmented information 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $12,993,000.
       Project 99-D-103, isotope sciences facilities, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $4,400,000.
       Project 99-D-104, protection of real property (roof 
     reconstruction, phase II), Lawrence Livermore National 
     Laboratory, Livermore, California, $2,800,000.
       Project 99-D-106, model validation and system certification 
     center, Sandia National Laboratories, Albuquerque, New 
     Mexico, $4,955,000.
       Project 99-D-108, renovation of existing roadways, Nevada 
     Test Site, Nevada, $2,000,000.
       Project 99-D-125, replace boilers and controls, Kansas City 
     Plant, Kansas City, Missouri, $300,000.
       Project 99-D-127, stockpile management restructuring 
     initiative, Kansas City Plant, Kansas City, Missouri, 
     $22,200,000.
       Project 99-D-128, stockpile management restructuring 
     initiative, Pantex Plant, Amarillo, Texas, $3,300,000.
       Project 98-D-123, stockpile management restructuring 
     initiative, tritium facility modernization and consolidation, 
     Savannah River Plant, Aiken, South Carolina, $13,700,000.
       Project 98-D-124, stockpile management restructuring 
     initiative, Y-12 Plant consolidation, Oak Ridge, Tennessee, 
     $6,850,000.
       Project 97-D-123, structural upgrades, Kansas City Plant, 
     Kansas City, Missouri, $3,000,000.
       Project 96-D-102, stockpile stewardship facilities 
     revitalization, Phase VI, various locations, $2,900,000.
       (B) For secure transportation asset, $77,571,000, to be 
     allocated for operation and maintenance.
       (C) For safeguards and security, $448,881,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $439,281,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $9,600,000, to be allocated as follows:

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

       (D) For facilities and infrastructure, $267,900,000.
       (2) Defense nuclear nonproliferation.--For other nuclear 
     security activities, $872,500,000, to be allocated as 
     follows:
       (A) For nonproliferation and verification research and 
     development, $258,161,000, to be allocated as follows:
       (i) For operation and maintenance, $222,355,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $35,806,000, to be allocated as follows:

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

       (B) For arms control, $138,000,000.
       (C) For international materials protection, control, and 
     accounting, $143,800,000.
       (D) For highly enriched uranium transparency 
     implementation, $13,950,000.
       (E) For international nuclear safety, $19,500,000.
       (F) For fissile materials control and disposition, 
     $299,089,000, to be allocated as follows:
       (i) For United States surplus fissile materials 
     disposition, $233,089,000, to be allocated as follows:

       (I) For operation and maintenance, $130,089,000.
       (II) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $103,000,000, to be allocated as follows:

       Project 01-D-142, immobilization and associated processing 
     facility, (Title I and II design), Savannah River Site, 
     Aiken, South Carolina, $0.
       Project 01-D-407, highly enriched uranium blend-down, 
     Savannah River Site, Aiken, South Carolina, $24,000,000.
       Project 99-D-141, pit disassembly and conversion facility 
     (Title I and II design), Savannah River Site, Aiken, South 
     Carolina, $16,000,000.
       Project 99-D-143, mixed oxide fuel fabrication facility 
     (Title I and II design), Savannah River Site, Aiken, South 
     Carolina, $63,000,000.
       (ii) For Russian fissile materials disposition, 
     $66,000,000.
       (3) Naval reactors.--For naval reactors, $688,045,000, to 
     be allocated as follows:
       (A) For naval reactors development, $665,445,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $652,245,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $13,200,000, to be allocated as follows:

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

       (B) For program direction, $22,600,000.
       (4) Office of administrator for nuclear security.--For the 
     Office of the Administrator for Nuclear Security, and for 
     program direction for the National Nuclear Security 
     Administration (other than for naval reactors), $380,366,000.
       (b) Adjustments.--The amount authorized to be appropriated 
     by subsection (a) is hereby reduced by $70,985,000, as 
     follows:
       (1) The amount authorized to be appropriated by paragraph 
     (1) of that subsection is hereby reduced by $28,985,000, 
     which is to be derived from offsets and use of prior year 
     balances.
       (2) The amount authorized to be appropriated by paragraph 
     (2) of that subsection is hereby reduced by $42,000,000, 
     which is to be derived from use of prior year balances.

     SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE 
                   MANAGEMENT.

       (a) In General.--Subject to subsection (b), funds are 
     hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 2002 for environmental restoration and 
     waste management activities in carrying out programs 
     necessary for national security in the amount of 
     $6,047,617,000, to be allocated as follows:
       (1) Closure projects.--For closure projects carried out in 
     accordance with section 3143 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2836; 42 U.S.C. 7277n), $1,080,538,000.
       (2) Site/project completion.--For site completion and 
     project completion in carrying out environmental management 
     activities necessary for national security programs, 
     $943,196,000, to be allocated as follows:
       (A) For operation and maintenance, $919,030,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $24,166,000, to be allocated as follows:
       Project 02-D-402, Intec cathodic protection system 
     expansion, Idaho National Engineering and Environmental 
     Laboratory, Idaho Falls, Idaho, $3,256,000.
       Project 01-D-414, preliminary project engineering and 
     design (PE&D), various locations, $6,254,000.
       Project 99-D-402, tank farm support services, F&H areas, 
     Savannah River Site, Aiken, South Carolina, $5,040,000.

[[Page 18569]]

       Project 99-D-404, health physics instrumentation 
     laboratory, Idaho National Engineering and Environmental 
     Laboratories, Idaho Falls, Idaho, $2,700,000.
       Project 98-D-453, plutonium stabilization and handling 
     system for plutonium finishing plant, Richland, Washington, 
     $1,910,000.
       Project 96-D-471, chlorofluorocarbon heating, ventilation, 
     and air conditioning and chiller retrofit, Savannah River 
     Site, Aiken, South Carolina, $4,244,000.
       Project 92-D-140, F&H canyon exhaust upgrades, Savannah 
     River Site, Aiken, South Carolina, $0.
       Project 86-D-103, decontamination and waste treatment 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $762,000.
       (3) Post-2006 completion.--For post-2006 completion in 
     carrying out environmental restoration and waste management 
     activities necessary for national security programs, 
     $3,245,201,000, to be allocated as follows:
       (A) For operation and maintenance, $1,955,979,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $6,754,000, to be allocated as follows:
       Project 93-D-187, high-level waste removal from filled 
     waste tanks, Savannah River Site, Aiken, South Carolina, 
     $6,754,000.
       (C) For the Office of River Protection in carrying out 
     environmental restoration and waste management activities 
     necessary for national security programs, $862,468,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $322,151,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $540,317,000, to be allocated as follows:

       Project 01-D-416, waste treatment and immobilization plant, 
     Richland, Washington, $500,000,000.
       Project 97-D-402, tank farm restoration and safe 
     operations, Richland, Washington, $33,473,000.
       Project 94-D-407, initial tank retrieval systems, Richland, 
     Washington, $6,844,000.

       (4) Science and technology development.--For science and 
     technology development in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs, $216,000,000.
       (5) Excess facilities.--For excess facilities in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs, $1,300,000.
       (6) Safeguards and security.--For safeguards and security 
     in carrying out environmental restoration and waste 
     management activities necessary for national security 
     programs, $205,621,000.
       (7) Program direction.--For program direction in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs, $355,761,000.
       (b) Adjustment.--The total amount authorized to be 
     appropriated by subsection (a) is the sum of the amounts 
     authorized to be appropriated by paragraphs (2) through (7) 
     of that subsection, reduced by $42,161,000, to be derived 
     from offsets and use of prior year balances.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       (a) In General.--Subject to subsection (b), funds are 
     hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 2002 for other defense activities in 
     carrying out programs necessary for national security in the 
     amount of $512,195,000, to be allocated as follows:
       (1) Intelligence.--For intelligence, $40,844,000.
       (2) Counterintelligence.--For counterintelligence, 
     $46,389,000.
       (3) Security and emergency operations.--For security and 
     emergency operations, $247,565,000, to be allocated as 
     follows:
       (A) For nuclear safeguards and security, $121,188,000.
       (B) For security investigations, $44,927,000.
       (C) For program direction, $81,450,000.
       (4) Independent oversight and performance assurance.--For 
     independent oversight and performance assurance, $14,904,000.
       (5) Environment, safety, and health.--For the Office of 
     Environment, Safety, and Health, $114,600,000, to be 
     allocated as follows:
       (A) For environment, safety, and health (defense), 
     $91,307,000.
       (B) For program direction, $23,293,000.
       (6) Worker and community transition assistance.--For worker 
     and community transition assistance, $20,000,000, to be 
     allocated as follows:
       (A) For worker and community transition, $18,000,000.
       (B) For program direction, $2,000,000.
       (7) Office of hearings and appeals.--For the Office of 
     Hearings and Appeals, $2,893,000.
       (8) National security programs administrative support.--For 
     national security programs administrative support, 
     $25,000,000.
       (b) Adjustments.--
       (1) Security and emergency operations, for program 
     direction.--The amount authorized to be appropriated pursuant 
     to subsection (a)(3)(B) is reduced by $712,000 to reflect an 
     offset provided by user organizations for security 
     investigations.
       (2) Other.--The total amount authorized to be appropriated 
     pursuant to paragraphs (1), (2), (4), (5), (6), (7), and (8) 
     of subsection (a) is hereby reduced by $10,000,000 to reflect 
     use of prior year balances.

     SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2002 for privatization 
     initiatives in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $157,537,000, to be allocated as 
     follows:
       Project 02-PVT-1, Paducah disposal facility, Paducah, 
     Kentucky, $13,329,000.
       Project 02-PVT-2, Portsmouth disposal facility, Portsmouth, 
     Ohio, $2,000,000.
       Project 98-PVT-2, spent nuclear fuel dry storage, Idaho 
     Falls, Idaho, $49,332,000.
       Project 98-PVT-5, environmental management/waste management 
     disposal, Oak Ridge, Tennessee, $26,065,000.
       Project 97-PVT-2, advanced mixed waste treatment project, 
     Idaho Falls, Idaho, $56,000,000.
       Project 97-PVT-3, transuranic waste treatment, Oak Ridge, 
     Tennessee, $10,826,000.

     SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2002 for payment to the 
     Nuclear Waste Fund established in section 302(C) of the 
     Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the 
     amount of $250,000,000.

                Subtitle B--Recurring General Provisions

     SEC. 3121. REPROGRAMMING.

       (a) In General.--Until the Secretary of Energy submits to 
     the congressional defense committees the report referred to 
     in subsection (b) and a period of 30 days has elapsed after 
     the date on which such committees receive the report, the 
     Secretary may not use amounts appropriated pursuant to this 
     title for any program--
       (1) in amounts that exceed, in a fiscal year--
       (A) 110 percent of the amount authorized for that program 
     by this title; or
       (B) $2,000,000 more than the amount authorized for that 
     program by this title; or
       (2) which has not been presented to, or requested of, 
     Congress.
       (b) Report.--(1) The report referred to in subsection (a) 
     is a report containing a full and complete statement of the 
     action proposed to be taken and the facts and circumstances 
     relied upon in support of the proposed action.
       (2) In the computation of the 30-day period under 
     subsection (a), there shall be excluded any day on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain.
       (c) Limitations.--(1) In no event may the total amount of 
     funds obligated pursuant to this title exceed the total 
     amount authorized to be appropriated by this title.
       (2) Funds appropriated pursuant to this title may not be 
     used for an item for which Congress has specifically denied 
     funds.

     SEC. 3122. LIMITS ON MINOR CONSTRUCTION PROJECTS.

       (a) In General.--The Secretary of Energy may carry out any 
     minor construction project using operation and maintenance 
     funds, or facilities and infrastructure funds, authorized by 
     this title.
       (b) Annual Report.--The Secretary shall submit to the 
     congressional defense committees on an annual basis a report 
     on each exercise of the authority in subsection (a) during 
     the preceding year. Each report shall give a brief 
     description of each minor construction project covered by 
     such report.
       (c) Minor Construction Project Defined.--In this section, 
     the term ``minor construction project'' means any plant 
     project not specifically authorized by law if the approved 
     total estimated cost of the plant project does not exceed 
     $5,000,000.

     SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

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

[[Page 18570]]

     day on which either House of Congress is not in session 
     because of an adjournment of more than 3 days to a day 
     certain.
       (b) Exception.--Subsection (a) does not apply to a 
     construction project with a current estimated cost of less 
     than $5,000,000.

     SEC. 3124. FUND TRANSFER AUTHORITY.

       (a) Transfer to Other Federal Agencies.--The Secretary of 
     Energy may transfer funds authorized to be appropriated to 
     the Department of Energy pursuant to this title to other 
     Federal agencies for the performance of work for which the 
     funds were authorized. Funds so transferred may be merged 
     with and be available for the same purposes and for the same 
     time period as the authorizations of the Federal agency to 
     which the amounts are transferred.
       (b) Transfer Within Department of Energy.--(1) Subject to 
     paragraph (2), the Secretary of Energy may transfer funds 
     authorized to be appropriated to the Department of Energy 
     pursuant to this title between any such authorizations. 
     Amounts of authorizations so transferred may be merged with 
     and be available for the same purposes and for the same 
     period as the authorization to which the amounts are 
     transferred.
       (2) Not more than 5 percent of any such authorization may 
     be transferred between authorizations under paragraph (1). No 
     such authorization may be increased or decreased by more than 
     5 percent by a transfer under such paragraph.
       (c) Limitations.--The authority provided by this subsection 
     to transfer authorizations--
       (1) may be used only to provide funds for items relating to 
     activities necessary for national security programs that have 
     a higher priority than the items from which the funds are 
     transferred; and
       (2) may not be used to provide funds for an item for which 
     Congress has specifically denied funds.
       (d) Notice to Congress.--The Secretary of Energy shall 
     promptly notify the Committees on Armed Services of the 
     Senate and House of Representatives of any transfer of funds 
     to or from authorizations under this title.

     SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

       (a) Requirement of Conceptual Design.--(1) Subject to 
     paragraph (2) and except as provided in paragraph (3), before 
     submitting to Congress a request for funds for a construction 
     project that is in support of a national security program of 
     the Department of Energy, the Secretary of Energy shall 
     complete a conceptual design for that project.
       (2) If the estimated cost of completing a conceptual design 
     for a construction project exceeds $3,000,000, the Secretary 
     shall submit to Congress a request for funds for the 
     conceptual design before submitting a request for funds for 
     the construction project.
       (3) The requirement in paragraph (1) does not apply to a 
     request for funds--
       (A) for a minor construction project the total estimated 
     cost of which is less than $5,000,000; or
       (B) for emergency planning, design, and construction 
     activities under section 3126.
       (b) Authority for Construction Design.--(1) Within the 
     amounts authorized by this title, the Secretary of Energy may 
     carry out construction design (including architectural and 
     engineering services) in connection with any proposed 
     construction project if the total estimated cost for such 
     design does not exceed $600,000.
       (2) If the total estimated cost for construction design in 
     connection with any construction project exceeds $600,000, 
     funds for that design must be specifically authorized by law.

     SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND 
                   CONSTRUCTION ACTIVITIES.

       (a) Authority.--The Secretary of Energy may use any funds 
     available to the Department of Energy pursuant to an 
     authorization in this title, including funds authorized to be 
     appropriated for advance planning, engineering, and 
     construction design, and for plant projects, under sections 
     3101, 3102, 3103, and 3104 to perform planning, design, and 
     construction activities for any Department of Energy national 
     security program construction project that, as determined by 
     the Secretary, must proceed expeditiously in order to protect 
     public health and safety, to meet the needs of national 
     defense, or to protect property.
       (b) Limitation.--The Secretary may not exercise the 
     authority under subsection (a) in the case of any 
     construction project until the Secretary has submitted to the 
     congressional defense committees a report on the activities 
     that the Secretary intends to carry out under this section 
     and the circumstances making those activities necessary.
       (c) Specific Authority.--The requirement of section 
     3125(b)(2) does not apply to emergency planning, design, and 
     construction activities conducted under this section.

     SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
                   OF THE DEPARTMENT OF ENERGY.

       Subject to the provisions of appropriation Acts and section 
     3121, amounts appropriated pursuant to this title for 
     management and support activities and for general plant 
     projects are available for use, when necessary, in connection 
     with all national security programs of the Department of 
     Energy.

     SEC. 3128. AVAILABILITY OF FUNDS.

       (a) In General.--Except as provided in subsection (b), when 
     so specified in an appropriations Act, amounts appropriated 
     for operation and maintenance or for plant projects may 
     remain available until expended.
       (b) Exception for Program Direction Funds.--Amounts 
     appropriated for program direction pursuant to an 
     authorization of appropriations in subtitle A shall remain 
     available to be expended only until the end of fiscal year 
     2004.

     SEC. 3129. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT 
                   FUNDS.

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

     SEC. 3130. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

       (a) Transfer Authority for Weapons Activities Funds.--The 
     Secretary of Energy shall provide the manager of each field 
     office of the Department of Energy with the authority to 
     transfer weapons activities funds from a program or project 
     under the jurisdiction of the office to another such program 
     or project.
       (b) Limitations.--(1) Not more than three transfers may be 
     made to or from any program or project under subsection (a) 
     in a fiscal year.
       (2) The amount transferred to or from a program or project 
     in any one transfer under subsection (a) may not exceed 
     $5,000,000.
       (3) A transfer may not be carried out by a manager of a 
     field office under subsection (a) unless the manager 
     determines that the transfer is necessary to address a risk 
     to health, safety, or the environment or to assure the most 
     efficient use of weapons activities funds at the field 
     office.
       (4) Funds transferred pursuant to subsection (a) may not be 
     used for an item for which Congress has specifically denied 
     funds or for a new program or project that has not been 
     authorized by Congress.
       (c) Exemption From Reprogramming Requirements.--The 
     requirements of section 3121 shall not apply to transfers of 
     funds pursuant to subsection (a).
       (d) Notification.--The Secretary, acting through the 
     Administrator for Nuclear Security, shall notify Congress of 
     any transfer of funds pursuant to subsection (a) not later 
     than 30 days after such transfer occurs.
       (e) Definitions.--In this section:
       (1) The term ``program or project'' means, with respect to 
     a field office of the Department of Energy, any of the 
     following:

[[Page 18571]]

       (A) A program referred to or a project listed in 3101(1).
       (B) A program or project not described in subparagraph (A) 
     that is for weapons activities necessary for national 
     security programs of the Department, that is being carried 
     out by the office, and for which weapons activities funds 
     have been authorized and appropriated before the date of the 
     enactment of this Act.
       (2) The term ``weapons activities funds'' means funds 
     appropriated to the Department of Energy pursuant to an 
     authorization for carrying out weapons activities necessary 
     for national security programs.
       (f) Duration of Authority.--The managers of the field 
     offices of the Department may exercise the authority provided 
     under subsection (a) during the period beginning on October 
     1, 2001, and ending on September 30, 2002.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

     SEC. 3131. LIMITATION ON AVAILABILITY OF FUNDS FOR WEAPONS 
                   ACTIVITIES FOR FACILITIES AND INFRASTRUCTURE.

       Not more than 50 percent of the funds authorized to be 
     appropriated by section 3101(a)(1)(D) for the National 
     Nuclear Security Administration for weapons activities for 
     facilities and infrastructure may be obligated or expended 
     until the Administrator for Nuclear Security submits to the 
     congressional defense committees a report setting forth the 
     following:
       (1) Criteria for the selection of projects to be carried 
     out using such funds.
       (2) Criteria for establishing priorities among projects so 
     selected.
       (3) A list of the projects so selected, including the 
     priority assigned to each such project.

     SEC. 3132. LIMITATION ON AVAILABILITY OF FUNDS FOR OTHER 
                   DEFENSE ACTIVITIES FOR NATIONAL SECURITY 
                   PROGRAMS ADMINISTRATIVE SUPPORT.

       Not more than $5,000,000 of the funds authorized to be 
     appropriated by section 3103(a)(8) for other defense 
     activities for national security programs administrative 
     support may be obligated or expended until the later of the 
     following:
       (1) The date on which the Secretary of Energy submits to 
     Congress a report setting forth the purposes for which such 
     funds will be obligated and expended.
       (2) The date on which the Administrator for Nuclear 
     Security submits to Congress the future-years nuclear 
     security program for fiscal year 2002 required by section 
     3253 of the National Nuclear Security Administration Act 
     (title XXXII of Public Law 106-35; 50 U.S.C. 2453).

     SEC. 3133. NUCLEAR CITIES INITIATIVE.

       (a) Limitations on Use of Funds.--No funds authorized to be 
     appropriated for the Nuclear Cities Initiative after fiscal 
     year 2001 may be obligated or expended with respect to more 
     than three nuclear cities, or more than two serial production 
     facilities in Russia, until 30 days after the Administrator 
     for Nuclear Security submits to the appropriate congressional 
     committees an agreement signed by the Russian Federation on 
     access under the Nuclear Cities Initiative to the ten closed 
     nuclear cities and four serial production facilities of the 
     Nuclear Cities Initiative.
       (b) Annual Report.--(1) Not later than the first Monday in 
     February each year, the Administrator shall submit to the 
     appropriate congressional committees a report on financial 
     and programmatic activities with respect to the Nuclear 
     Cities Initiative during the preceding fiscal year.
       (2) Each report shall include, for the fiscal year covered 
     by such report, the following:
       (A) A list of each project that is or was completed, 
     ongoing, or planned under the Nuclear Cities Initiative 
     during such fiscal year.
       (B) For each project listed under subparagraph (A), 
     information, current as of the end of such fiscal year, on 
     the following:
       (i) The purpose of such project.
       (ii) The budget for such project.
       (iii) The life-cycle costs of such project.
       (iv) Participants in such project.
       (v) The commercial viability of such project.
       (vi) The number of jobs in Russia created or to be created 
     by or through such project.
       (vii) Of the total amount of funds spent on such project, 
     the percentage of such amount spent in the United States and 
     the percentage of such amount spent overseas.
       (C) A certification by the Administrator that each project 
     listed under subparagraph (A) did contribute, is 
     contributing, or will contribute, as the case may be, to the 
     downsizing of the nuclear weapons complex in Russia, together 
     with a description of the evidence utilized to make such 
     certification.
       (c) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees means'' the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives.
       (2) Nuclear cities initiative.--The term ``Nuclear Cities 
     Initiative'' means the initiative arising pursuant to the 
     March 1998 discussion between the Vice President of the 
     United States and the Prime Minister of the Russian 
     Federation and between the Secretary of Energy of the United 
     States and the Minister of Atomic Energy of the Russian 
     Federation.
       (3) Nuclear city.--The term ``nuclear city'' means any of 
     the nuclear cities within the complex of the Russia Ministry 
     of Atomic Energy (MINATOM) as follows:
       (A) Sarov (Arzamas-16 and Avangard).
       (B) Zarechnyy (Penza-19).
       (C) Novoural'sk (Sverdlovsk-44).
       (D) Lesnoy (Sverdlovsk-45).
       (E) Ozersk (Chelyabinsk-65).
       (F) Snezhinsk (Chelyabinsk-70).
       (G) Trechgornyy (Zlatoust-36).
       (H) Seversk (Tomsk-7).
       (I) Zhelenznogorsk (Krasnoyarsk-26).
       (J) Zelenogorsk (Krasnoyarsk-45).

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

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

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

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

       (a) Establishment of Position.--Subtitle A of the National 
     Nuclear Security Administration Act (title XXXII of Public 
     Law 106-65; 50 U.S.C. 2401 et seq.) is amended--
       (1) by redesignating section 3213 as section 3219 and 
     transferring such section, as so redesignated, to the end of 
     the subtitle; and
       (2) by inserting after section 3212 the following new 
     section 3213:

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

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

     SEC. 3142. RESPONSIBILITY FOR NATIONAL SECURITY LABORATORIES 
                   AND WEAPONS PRODUCTION FACILITIES OF DEPUTY 
                   ADMINISTRATOR OF NATIONAL NUCLEAR SECURITY 
                   ADMINISTRATION FOR DEFENSE PROGRAMS.

       Section 3214 of the National Nuclear Security 
     Administration Act (title XXXII of Public Law 106-65; 113 
     Stat. 959; 50 U.S.C. 2404) is amended by striking subsection 
     (c).

     SEC. 3143. CLARIFICATION OF STATUS WITHIN THE DEPARTMENT OF 
                   ENERGY OF ADMINISTRATION AND CONTRACTOR 
                   PERSONNEL OF THE NATIONAL NUCLEAR SECURITY 
                   ADMINISTRATION.

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

[[Page 18572]]



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

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

                       Subtitle E--Other Matters

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

       (a) Certain Leukemia as Specified Cancer.--Section 3621(17) 
     of the Energy Employees Occupational Illness Compensation 
     Program Act of 2000 (title XXXVI of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted by Public Law 106-398); 114 Stat. 1654A-502), as 
     amended by section 2403 of the Supplemental Appropriations 
     Act, 2001 (Public Law 107-20), is further amended by adding 
     at the end the following new subparagraph:
       ``(D) Leukemia (other than chronic lymphocytic leukemia), 
     if initial occupation exposure occurred before 21 years of 
     age and onset occurred more than two years after initial 
     occupational exposure.''.
       (b) Additional Members of Special Exposure Cohort.--Section 
     3626(b) of that Act (114 Stat. 1654A-505) is amended in the 
     matter preceding paragraph (1) by inserting after 
     ``Department of Energy facility'' the following: ``, or at an 
     atomic weapons employer facility,''.
       (c) Establishment of Chronic Silicosis.--Section 
     3627(e)(2)(A) of that Act (114 Stat. 1654A-506) is amended by 
     striking ``category 1/1'' and inserting ``category 1/0''.
       (d) Survivors.--
       (1) In general.--Subsection (e) of section 3628 of that Act 
     (114 Stat. 1654A-506) is amended to read as follows:
       ``(e) Survivors.--(1) If a covered employee dies before 
     accepting payment of compensation under this section, whether 
     or not the death is the result of the covered employee's 
     occupational illness, the survivors of the covered employee 
     who are living at the time of payment of compensation under 
     this section shall receive payment of compensation under this 
     section in lieu of the covered employee as follows:
       ``(A) If such living survivors of the covered employee 
     include a spouse and one or more children--
       ``(i) the spouse shall receive one-half of the amount of 
     compensation provided for the covered employee under this 
     section; and
       ``(ii) each child shall receive an equal share of the 
     remaining one-half of the amount of the compensation provided 
     for the covered employee under this section.
       ``(B) If such living survivors of the covered employee 
     include a spouse or one or more children, but not both a 
     spouse and one or more children--
       ``(i) the spouse shall receive the amount of compensation 
     provided for the covered employee under this section; or
       ``(ii) each child shall receive an equal share of the 
     amount of the compensation provided for the covered employee 
     under this section.
       ``(C) If such living survivors of the covered employee do 
     not include a spouse or any children, but do include one or 
     both parents, one or more grandparents, one or more 
     grandchildren, or any combination of such individuals, each 
     such individual shall receive an equal share of the amount of 
     the compensation provided for the covered employee under this 
     section.
       ``(2) For purposes of this subsection, the term `child', in 
     the case of a covered employee, means any child of the 
     covered employee, including a natural child, adopted child, 
     or step-child who lived with the covered employee in a 
     parent-child relationship.''.
       (2) Uranium employees.--Subsection (e) of section 3630 of 
     that Act (114 Stat. 1654A-507) is amended to read as follows:
       ``(e) Survivors.--(1) If a covered uranium employee dies 
     before accepting payment of compensation under this section, 
     whether or not the death is the result of the covered uranium 
     employee's occupational illness, the survivors of the covered 
     uranium employee who are living at the time of payment of 
     compensation under this section shall receive payment of 
     compensation under this section in lieu of the covered 
     uranium employee as follows:
       ``(A) If such living survivors of the covered uranium 
     employee include a spouse and one or more children--
       ``(i) the spouse shall receive one-half of the amount of 
     compensation provided for the covered uranium employee under 
     this section; and
       ``(ii) each child shall receive an equal share of the 
     remaining one-half of the amount of the compensation provided 
     for the covered uranium employee under this section.
       ``(B) If such living survivors of the covered uranium 
     employee include a spouse or one or more children, but not 
     both a spouse and one or more children--
       ``(i) the spouse shall receive the amount of compensation 
     provided for the covered uranium employee under this section; 
     or
       ``(ii) each child shall receive an equal share of the 
     amount of the compensation provided for the covered uranium 
     employee under this section.
       ``(C) If such living survivors of the covered uranium 
     employee do not include a spouse or any children, but do 
     include one or both parents, one or more grandparents, one or 
     more grandchildren, or any combination of such individuals, 
     each such individual shall receive an equal share of the 
     amount of the compensation provided for the covered uranium 
     employee under this section.
       ``(2) For purposes of this subsection, the term `child', in 
     the case of a covered uranium employee, means any child of 
     the covered employee, including a natural child, adopted 
     child, or step-child who lived with the covered employee in a 
     parent-child relationship.''.
       (3) Repeal of superseded provision.--Paragraph (18) of 
     section 3621 of that Act (114 Stat. 1654A-502) is repealed.
       (4) Effective date.--The amendments made by this subsection 
     shall take effect on July 1, 2001.
       (e) Dismissal of Pending Suits.--Section 3645(d) of that 
     Act (114 Stat. 1654A-510) is amended by striking ``the 
     plaintiff shall not'' and all that follows through the end 
     and inserting ``and was not dismissed as of the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2002, the plaintiff shall be eligible for 
     compensation or benefits under subtitle B only if the 
     plaintiff dismisses such case not later than December 31, 
     2003.''.
       (f) Attorney Fees.--Section 3648 of that Act (114 Stat. 
     1654A-511) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following new paragraph (3):
       ``(3) 10 percent of any compensation paid under the claim 
     for assisting with or representing a claimant seeking such 
     compensation by the provision of services other than, or in 
     addition to, services in connection with the filing of an 
     initial claim covered by paragraph (1).'';
       (2) by redesignating subsection (c) and subsection (d); and
       (3) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Inapplicability to Services Provided After Award of 
     Compensation.--This section shall not apply with respect to 
     any representation or assistance provided to an individual 
     awarded compensation under subtitle B after the award of 
     compensation.''.
       (g) Study of Residual Contamination of Facilities.--(1) The 
     National Institute for Occupational Safety and Health shall, 
     with the cooperation of the Department of Energy and the 
     Department of Labor, conduct a study on the following:
       (A) Whether or not significant contamination remained in 
     any atomic weapons employer facility or facility of a 
     beryllium vendor after such facility discontinued activities 
     relating to the production of nuclear weapons.
       (B) If so, whether or not such contamination could have 
     caused or substantially contributed to the cancer of a 
     covered employee with cancer or a covered beryllium illness, 
     as the case may be.
       (2)(A) Not later than 180 days after the date of the 
     enactment of this Act, the National Institute for 
     Occupational Safety and Health shall submit to the 
     congressional defense committees a report on the progress 
     made as of the date of the report on the study under 
     paragraph (1).
       (B) Not later than one year after the date of the enactment 
     of this Act, the National Institute shall submit to the 
     congressional defense committees a final report on the study 
     under paragraph (1).
       (3) Amounts for the study under paragraph (1) shall be 
     derived from amounts authorized to be appropriated by section 
     3614(a) of the Energy Employees Occupational Illness 
     Compensation Program Act of 2000 (114 Stat. 1654A-498).
       (4) In this subsection:
       (A) The terms ``atomic weapons employer facility'', 
     ``beryllium vendor'', ``covered employee with cancer'', and 
     ``covered beryllium illness'' have the meanings given those 
     terms in section 3621 of the Energy Employees Occupational 
     Illness Compensation Program Act of 2000 (114 Stat. 1654A-
     498).

[[Page 18573]]

       (B) The term ``contamination'' means the presence of any 
     material exposure to which could cause or substantially 
     contribute to the cancer of a covered employee with cancer or 
     a covered beryllium illness, as the case may be.

     SEC. 3152. DEPARTMENT OF ENERGY COUNTERINTELLIGENCE POLYGRAPH 
                   PROGRAM.

       (a) Interim Counterintelligence Polygraph Program.--(1) Not 
     later than 120 days after the date of enactment of this Act, 
     the Secretary of Energy shall submit to the congressional 
     defense committees a plan for conducting, as part of the 
     Department of Energy personnel assurance programs, an interim 
     counterintelligence polygraph program consisting of polygraph 
     examinations of Department of Energy employees, or contractor 
     employees, at Department facilities. The purpose of 
     examinations under the interim program is to minimize the 
     potential for release or disclosure of classified data, 
     materials, or information until the program required under 
     subsection (b) is in effect.
       (2) The Secretary may exclude from examinations under the 
     interim program any position or class of positions (as 
     determined by the Secretary) for which the individual or 
     individuals in such position or class of positions--
       (A) either--
       (i) operate in a controlled environment that does not 
     afford an opportunity, through action solely by the 
     individual or individuals, to inflict damage on or impose 
     risks to national security; and
       (ii) have duties, functions, or responsibilities which are 
     compartmentalized or supervised such that the individual or 
     individuals do not impose risks to national security; or
       (B) do not have routine access to top secret Restricted 
     Data.
       (3) The plan shall ensure that individuals who undergo 
     examinations under the interim program receive protections as 
     provided under part 40 of title 49, Code of Federal 
     Regulations.
       (4) To ensure that administration of the interim program 
     does not disrupt safe operations of a facility, the plan 
     shall insure notification of the management of the facility 
     at least 14 days in advance of any examination scheduled 
     under the interim program for any employees of the facility.
       (5) The plan shall include procedures under the interim 
     program for--
       (A) identifying and addressing so-called ``false positive'' 
     results of polygraph examinations; and
       (B) ensuring that adverse personnel actions not be taken 
     against an individual solely by reason of the individual's 
     physiological reaction to a question in a polygraph 
     examination, unless reasonable efforts are first made to 
     independently determine through alternative means the 
     veracity of the individual's response to the question.
       (b) New Counterintelligence Polygraph Program.--(1) Not 
     later than six months after obtaining the results of the 
     Polygraph Review, the Secretary shall prescribe a proposed 
     rule containing requirements for a counterintelligence 
     polygraph program for the Department of Energy. The purpose 
     of the program is to minimize the potential for release or 
     disclosure of classified data, materials, or information.
       (2) The Secretary shall prescribe the proposed rule under 
     this subsection in accordance with the provisions of 
     subchapter II of chapter 5 of title 5, United States Code 
     (commonly referred to as the Administrative Procedures Act).
       (3) In prescribing the proposed rule under this subsection, 
     the Secretary may include in requirements under the proposed 
     rule any requirement or exclusion provided for in paragraphs 
     (2) through (5) of subsection (a).
       (4) In prescribing the proposed rule under this subsection, 
     the Secretary shall take into account the results of the 
     Polygraph Review.
       (c) Repeal of Existing Polygraph Program.--Section 3154 of 
     the Department of Energy Facilities Safeguards, Security, and 
     Counterintelligence Enhancement Act of 1999 (subtitle D of 
     title XXXI of Public Law 106-65; 42 U.S.C. 7383h) is 
     repealed.
       (d) Report on Further Enhancement of Personnel Security 
     Program.--(1) Not later than December 31, 2002, the 
     Administrator for Nuclear Security shall submit to Congress a 
     report setting forth the recommendations of the Administrator 
     for any legislative action that the Administrator considers 
     appropriate in order to enhance the personnel security 
     program of the Department of Energy.
       (2) Any recommendations under paragraph (1) regarding the 
     use of polygraphs shall take into account the results of the 
     Polygraph Review.
       (e) Definitions.--In this section:
       (1) The term ``Polygraph Review'' means the review of the 
     Committee to Review the Scientific Evidence on the Polygraph 
     of the National Academy of Sciences.
       (2) The term ``Restricted Data'' has the meaning given that 
     term in section 11 y. of the Atomic Energy Act of 1954 (42 
     U.S.C. 2014(y)).

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

       Section 3161(a) of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 942; 5 
     U.S.C. 5597 note) is amended by striking ``January 1, 2003'' 
     and inserting ``January 1, 2004''.

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

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

     SEC. 3155. MODIFICATION OF DATE OF REPORT OF PANEL TO ASSESS 
                   THE RELIABILITY, SAFETY, AND SECURITY OF THE 
                   UNITED STATES NUCLEAR STOCKPILE.

       Section 3159(d) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     42 U.S.C. 2121 note) is amended by striking ``of each year, 
     beginning with 1999,'' and inserting ``of 1999 and 2000, and 
     not later than February 1, 2002,''.

     SEC. 3156. REPORTS ON ACHIEVEMENT OF MILESTONES FOR NATIONAL 
                   IGNITION FACILITY.

       (a) Notification of Achievement.--The Administrator for 
     Nuclear Security shall notify the congressional defense 
     committees when the National Ignition Facility (NIF), 
     Lawrence Livermore National Laboratory, California, achieves 
     each Level one milestone and Level two milestone for the 
     National Ignition Facility.
       (b) Report on Failure of Timely Achievement.--Not later 
     than 10 days after the date on which the National Ignition 
     Facility fails to achieve a Level one milestone or Level two 
     milestone for the National Ignition Facility in a timely 
     manner, the Administrator shall submit to the congressional 
     defense committees a report on the failure. The report on a 
     failure shall include--
       (1) a statement of the failure of the National Ignition 
     Facility to achieve the milestone concerned in a timely 
     manner;
       (2) an explanation for the failure; and
       (3) either--
       (A) an estimate when the milestone will be achieved; or
       (B) if the milestone will not be achieved--
       (i) a statement that the milestone will not be achieved;
       (ii) an explanation why the milestone will not be achieved; 
     and
       (iii) the implications for the overall scope, schedule, and 
     budget of the National Ignition Facility project of not 
     achieving the milestone.
       (c) Milestones.--For purposes of this section, the Level 
     one milestones and Level two milestones for the National 
     Ignition Facility are as established in the August 2000 
     revised National Ignition Facility baseline document.

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

       (a) Support in Fiscal Year 2002.--From amounts authorized 
     to be appropriated or otherwise made available to the 
     Secretary of Energy by this title--
       (1) $6,900,000 shall be available for payment by the 
     Secretary for fiscal year 2002 to the Los Alamos National 
     Laboratory Foundation, a not-for-profit educational 
     foundation chartered in accordance with section 3167(a) of 
     the National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 2052); and
       (2) $8,000,000 shall be available for extension of the 
     contract between the Department of Energy and the Los Alamos 
     Public Schools through fiscal year 2002.
       (b) Support Through Fiscal Year 2004.--Subject to the 
     availability of appropriations for such purposes, the 
     Secretary may--
       (1) make a payment for each of fiscal years 2003 and 2004 
     similar in amount to the payment referred to in subsection 
     (a)(1) for fiscal year 2002; and
       (2) provide for a contract extension through fiscal year 
     2004 similar to the contract extension referred to in 
     subsection (a)(2), including the use of an amount for that 
     purpose in each of fiscal years 2003 and 2004 similar to the 
     amount available for that purpose in fiscal year 2002 under 
     that subsection.
       (c) Use of Funds.--The Los Alamos National Laboratory 
     Foundation shall--
       (1) use funds provided the Foundation under this section as 
     a contribution to the endowment fund of the Foundation; and
       (2) use the income generated from investments in the 
     endowment fund that are attributable to payments made under 
     this section to fund programs to support the educational 
     needs of children in public schools in the vicinity of Los 
     Alamos National Laboratory.
       (d) Report.--Not later than March 1, 2003, the 
     Administrator for Nuclear Security shall submit to the 
     congressional defense committees a report setting for the 
     following:
       (1) An evaluation of the requirements for continued 
     payments after fiscal year 2004

[[Page 18574]]

     into the endowment fund of the Los Alamos Laboratory 
     Foundation to enable the Foundation to meet the goals of the 
     Department of Energy to support the recruitment and retention 
     of staff at the Los Alamos National Laboratory.
       (2) Recommendations regarding the advisability of any 
     further direct support after fiscal year 2004 for the Los 
     Alamos Public Schools.

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

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

     SEC. 3159. ANNUAL ASSESSMENT AND REPORT ON VULNERABILITY OF 
                   DEPARTMENT OF ENERGY FACILITIES TO TERRORIST 
                   ATTACK.

       (a) In General.--Part C of title VI of the Department of 
     Energy Organization Act (42 U.S.C. 7251 et seq.) is amended 
     by adding at the end the following new section:


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

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

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

            Subtitle F--Rocky Flats National Wildlife Refuge

     SEC. 3171. SHORT TITLE.

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

     SEC. 3172. FINDINGS AND PURPOSES.

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

     SEC. 3173. DEFINITIONS.

       In this subtitle:
       (1) Cleanup and closure.--The term ``cleanup and closure'' 
     means the response actions and decommissioning activities 
     being carried out at Rocky Flats by the Department of Energy 
     under the 1996 Rocky Flats Cleanup Agreement, the closure 
     plans and baselines, and any other relevant documents or 
     requirements.
       (2) Coalition.--The term ``Coalition'' means the Rocky 
     Flats Coalition of Local Governments established by the 
     Intergovernmental Agreement, dated February 16, 1999, among--
       (A) the city of Arvada, Colorado;
       (B) the city of Boulder, Colorado;
       (C) the city of Broomfield, Colorado;
       (D) the city of Westminster, Colorado;
       (E) the town of Superior, Colorado;
       (F) Boulder County, Colorado; and
       (G) Jefferson County, Colorado.
       (3) Hazardous substance.--The term ``hazardous substance'' 
     means--
       (A) any hazardous substance, pollutant, or contaminant 
     regulated under the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.); and
       (B) any--
       (i) petroleum (including any petroleum product or 
     derivative);
       (ii) unexploded ordnance;
       (iii) military munition or weapon; or
       (iv) nuclear or radioactive material;
     not otherwise regulated as a hazardous substance under any 
     law in effect on the date of enactment of this Act.
       (4) Pollutant or contaminant.--The term ``pollutant or 
     contaminant'' has the meaning given the term in section 101 
     of the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9601).
       (5) Refuge.--The term ``refuge'' means the Rocky Flats 
     National Wildlife Refuge established under section 3177.
       (6) Response action.--The term ``response action'' has the 
     meaning given the term ``response'' in section 101 of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601) or any similar 
     requirement under State law.
       (7) RFCA.--The term ``RFCA'' means the Rocky Flats Cleanup 
     Agreement, an intergovernmental agreement, dated July 19, 
     1996, among--
       (A) the Department of Energy;
       (B) the Environmental Protection Agency; and
       (C) the Department of Public Health and Environment of the 
     State of Colorado.
       (8) Rocky flats.--
       (A) In general.--The term ``Rocky Flats'' means the Rocky 
     Flats Environmental Technology Site, Colorado, a defense 
     nuclear facility, as depicted on the map entitled ``Rocky 
     Flats Environmental Technology Site'', dated July 15, 1998, 
     and available for inspection in the appropriate offices of 
     the United States Fish and Wildlife Service.
       (B) Exclusions.--The term ``Rocky Flats'' does not 
     include--
       (i) land and facilities of the Department of Energy's 
     National Wind Technology Center; or
       (ii) any land and facilities not within the boundaries 
     depicted on the map identified in subparagraph (A).
       (9) Rocky flats trustees.--The term ``Rocky Flats 
     Trustees'' means the Federal and State of Colorado entities 
     that have been identified as trustees for Rocky Flats under 
     section 107(f)(2) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607(f)(2)).
       (10) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 3174. FUTURE OWNERSHIP AND MANAGEMENT.

       (a) Federal Ownership.--Except as expressly provided in 
     this subtitle or any Act enacted after the date of enactment 
     of this Act, all right, title, and interest of the United 
     States, held on or acquired after the date of enactment of 
     this Act, to land or interest therein, including minerals, 
     within the boundaries of Rocky Flats shall be retained by the 
     United States.
       (b) Lindsay Ranch.--The structures that comprise the former 
     Lindsay Ranch homestead site in the Rock Creek Reserve area 
     of the buffer zone, as depicted on the map referred to in 
     section 3173(8), shall be permanently preserved and 
     maintained in accordance with the National Historic 
     Preservation Act (16 U.S.C. 470 et seq.).
       (c) Prohibition on Annexation.--Neither the Secretary nor 
     the Secretary of the Interior shall allow the annexation of 
     land within the refuge by any unit of local government.
       (d) Prohibition on Through Roads.--Except as provided in 
     subsection (e), no public road shall be constructed through 
     Rocky Flats.
       (e) Transportation Right-of-Way.--
       (1) In general.--
       (A) Availability of land.--On submission of an application 
     meeting each of the conditions specified in paragraph (2), 
     the Secretary, in consultation with the Secretary of the 
     Interior, shall make available land along the eastern 
     boundary of Rocky Flats for the sole purpose of 
     transportation improvements along Indiana Street.
       (B) Boundaries.--Land made available under this paragraph 
     may not extend more than 300 feet from the west edge of the 
     Indiana Street right-of-way, as that right-of-way exists as 
     of the date of enactment of this Act.
       (C) Easement or sale.--Land may be made available under 
     this paragraph by easement or sale to 1 or more appropriate 
     entities.
       (D) Compliance with applicable law.--Any action under this 
     paragraph shall be taken in compliance with applicable law.
       (2) Conditions.--An application for land under this 
     subsection may be submitted by any county, city, or other 
     political subdivision of the State of Colorado and shall 
     include documentation demonstrating that--

[[Page 18575]]

       (A) the transportation project is constructed so as to 
     minimize adverse effects on the management of Rocky Flats as 
     a wildlife refuge; and
       (B) the transportation project is included in the regional 
     transportation plan of the metropolitan planning organization 
     designated for the Denver metropolitan area under section 
     5303 of title 49, United States Code.

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

       (a) In General.--
       (1) Memorandum of understanding.--
       (A) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary and the Secretary of the 
     Interior shall publish in the Federal Register a draft 
     memorandum of understanding under which--
       (i) the Secretary shall provide for the subsequent transfer 
     of administrative jurisdiction over Rocky Flats to the 
     Secretary of the Interior; and
       (ii) the Secretary of the Interior shall manage natural 
     resources at Rocky Flats until the date on which the transfer 
     becomes effective.
       (B) Required elements.--
       (i) In general.--Subject to clause (ii), the memorandum of 
     understanding shall--

       (I) provide for the division of responsibilities between 
     the Secretary and the Secretary of the Interior necessary to 
     carry out the proposed transfer of land;
       (II) for the period ending on the date of the transfer--

       (aa) provide for the division of responsibilities between 
     the Secretary and the Secretary of the Interior; and
       (bb) provide for the management of the land proposed to be 
     transferred by the Secretary of the Interior as a national 
     wildlife refuge, for the purposes provided under section 
     3177(d)(2);

       (III) provide for the annual transfer of funds from the 
     Secretary to the Secretary of the Interior for the management 
     of the land proposed to be transferred; and
       (IV) subject to subsection (b)(1), identify the land 
     proposed to be transferred to the Secretary of the Interior.

       (ii) No reduction in funds.--The memorandum of 
     understanding and the subsequent transfer shall not result in 
     any reduction in funds available to the Secretary for cleanup 
     and closure of Rocky Flats.
       (C) Deadline.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary and Secretary of the 
     Interior shall finalize and implement the memorandum of 
     understanding.
       (2) Exclusions.--The transfer under paragraph (1) shall not 
     include the transfer of any property or facility over which 
     the Secretary retains jurisdiction, authority, and control 
     under subsection (b)(1).
       (3) Condition.--The transfer under paragraph (1) shall 
     occur--
       (A) not earlier than the date on which the Administrator of 
     the Environmental Protection Agency certifies to the 
     Secretary and to the Secretary of the Interior that the 
     cleanup and closure and all response actions at Rocky Flats 
     have been completed, except for the operation and maintenance 
     associated with those actions; but
       (B) not later than 30 business days after that date.
       (4) Cost; improvements.--The transfer--
       (A) shall be completed without cost to the Secretary of the 
     Interior; and
       (B) may include such buildings or other improvements as the 
     Secretary of the Interior has requested in writing for refuge 
     management purposes.
       (b) Property and Facilities Excluded From Transfers.--
       (1) In general.--The Secretary shall retain jurisdiction, 
     authority, and control over all real property and facilities 
     at Rocky Flats that are to be used for--
       (A) any necessary and appropriate long-term operation and 
     maintenance facility to intercept, treat, or control a 
     radionuclide or any other hazardous substance, pollutant, or 
     contaminant; and
       (B) any other purpose relating to a response action or any 
     other action that is required to be carried out at Rocky 
     Flats.
       (2) Consultation.--
       (A) Identification of property.--
       (i) In general.--The Secretary shall consult with the 
     Secretary of the Interior, the Administrator of the 
     Environmental Protection Agency, and the State of Colorado on 
     the identification of all property to be retained under this 
     subsection to ensure the continuing effectiveness of response 
     actions.
       (ii) Amendment to memorandum of understanding.--

       (I) In general.--After the consultation, the Secretary and 
     the Secretary of the Interior shall by mutual consent amend 
     the memorandum of understanding required under subsection (a) 
     to specifically identify the land for transfer and provide 
     for determination of the exact acreage and legal description 
     of the property to be transferred by a survey mutually 
     satisfactory to the Secretary and the Secretary of the 
     Interior.
       (II) Council on environmental quality.--In the event the 
     Secretary and the Secretary of the Interior cannot agree on 
     the land to be retained or transferred, the Secretary or the 
     Secretary of the Interior may refer the issue to the Council 
     on Environmental Quality, which shall decide the issue within 
     45 days of such referral, and the Secretary and the Secretary 
     of the Interior shall then amend the memorandum of 
     understanding required under subsection (a) in conformity 
     with the decision of the Council on Environmental Quality.

       (B) Management of property.--
       (i) In general.--The Secretary shall consult with the 
     Secretary of the Interior on the management of the retained 
     property to minimize any conflict between the management of 
     property transferred to the Secretary of the Interior and 
     property retained by the Secretary for response actions.
       (ii) Conflict.--In the case of any such conflict, 
     implementation and maintenance of the response action shall 
     take priority.
       (3) Access.--As a condition of the transfer under 
     subsection (a), the Secretary shall be provided such 
     easements and access as are reasonably required to carry out 
     any obligation or address any liability.
       (c) Administration.--
       (1) In general.--On completion of the transfer under 
     subsection (a), the Secretary of the Interior shall 
     administer Rocky Flats in accordance with this subtitle 
     subject to--
       (A) any response action or institutional control at Rocky 
     Flats carried out by or under the authority of the Secretary 
     under the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9601 et seq.); and
       (B) any other action required under any other Federal or 
     State law to be carried out by or under the authority of the 
     Secretary.
       (2) Conflict.--In the case of any conflict between the 
     management of Rocky Flats by the Secretary of the Interior 
     and the conduct of any response action or other action 
     described in subparagraph (A) or (B) of paragraph (1), the 
     response action or other action shall take priority.
       (3) Continuing actions.--Except as provided in paragraph 
     (1), nothing in this subsection affects any response action 
     or other action initiated at Rocky Flats on or before the 
     date of the transfer under subsection (a).
       (d) Liability.--
       (1) In general.--The Secretary shall retain any obligation 
     or other liability for land transferred under subsection (a) 
     under--
       (A) the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9601 et seq.); or
       (B) any other applicable law.
       (2) Response actions.--
       (A) In general.--The Secretary shall be liable for the cost 
     of any necessary response actions, including any costs or 
     claims asserted against the Secretary, for any release, or 
     substantial threat of release, of a hazardous substance, if 
     the release, or substantial threat of release, is--
       (i) located on or emanating from land--

       (I) identified for transfer by this section; or
       (II) subsequently transferred under this section;

       (ii)(I) known at the time of transfer; or
       (II) subsequently discovered; and
       (iii) attributable to--

       (I) management of the land by the Secretary; or
       (II) the use, management, storage, release, treatment, or 
     disposal of a hazardous substance on the land by the 
     Secretary.

       (B) Recovery from third party.--Nothing in this paragraph 
     precludes the Secretary, on behalf of the United States, from 
     bringing a cost recovery, contribution, or other action 
     against a third party that the Secretary reasonably believes 
     may have contributed to the release, or substantial threat of 
     release, of a hazardous substance.

     SEC. 3176. CONTINUATION OF ENVIRONMENTAL CLEANUP AND CLOSURE.

       (a) Ongoing Cleanup and Closure.--
       (1) In general.--The Secretary shall--
       (A) carry out to completion cleanup and closure at Rocky 
     Flats; and
       (B) conduct any necessary operation and maintenance of 
     response actions.
       (2) No restriction on use of new technologies.--Nothing in 
     this subtitle, and no action taken under this subtitle, 
     restricts the Secretary from using at Rocky Flats any new 
     technology that may become available for remediation of 
     contamination.
       (b) Rules of Construction.--
       (1) No relief from obligations under other law.--
       (A) In general.--Nothing in this subtitle, and no action 
     taken under this subtitle, relieves the Secretary, the 
     Administrator of the Environmental Protection Agency, or any 
     other person from any obligation or other liability with 
     respect to Rocky Flats under the RFCA or any applicable 
     Federal or State law.
       (B) No effect on rfca.--Nothing in this subtitle impairs or 
     alters any provision of the RFCA.
       (2) Required cleanup levels.--
       (A) In general.--Except as provided in subparagraph (B), 
     nothing in this subtitle affects the level of cleanup and 
     closure at Rocky Flats required under the RFCA or any Federal 
     or State law.
       (B) No effect from establishment as national wildlife 
     refuge.--
       (i) In general.--The requirements of this subtitle for 
     establishment and management of Rocky Flats as a national 
     wildlife refuge shall not reduce the level of cleanup and 
     closure.

[[Page 18576]]

       (ii) Cleanup levels.--The Secretary shall conduct cleanup 
     and closure of Rocky Flats to the levels established for 
     soil, water, and other media, following a thorough review, by 
     the parties to the RFCA and the public (including the United 
     States Fish and Wildlife Service and other interested 
     government agencies), of the appropriateness of the interim 
     levels in the RFCA.
       (3) No effect on obligations for measures to control 
     contamination.--Nothing in this subtitle, and no action taken 
     under this subtitle, affects any long-term obligation of the 
     United States, acting through the Secretary, relating to 
     funding, construction, monitoring, or operation and 
     maintenance of--
       (A) any necessary intercept or treatment facility; or
       (B) any other measure to control contamination.
       (c) Payment of Response Action Costs.--Nothing in this 
     subtitle affects the obligation of a Federal department or 
     agency that had or has operations at Rocky Flats resulting in 
     the release or threatened release of a hazardous substance or 
     pollutant or contaminant to pay the costs of response actions 
     carried out to abate the release of, or clean up, the 
     hazardous substance or pollutant or contaminant.
       (d) Consultation.--In carrying out a response action at 
     Rocky Flats, the Secretary shall consult with the Secretary 
     of the Interior to ensure that the response action is carried 
     out in a manner that--
       (1) does not impair the attainment of the goals of the 
     response action; but
       (2) minimizes, to the maximum extent practicable, adverse 
     effects of the response action on the refuge.

     SEC. 3177. ROCKY FLATS NATIONAL WILDLIFE REFUGE.

       (a) Establishment.--Not later than 30 days after the 
     transfer of jurisdiction under section 3175(a), the Secretary 
     of the Interior shall establish at Rocky Flats a national 
     wildlife refuge to be known as the ``Rocky Flats National 
     Wildlife Refuge''.
       (b) Composition.--The refuge shall consist of the real 
     property subject to the transfer of administrative 
     jurisdiction under section 3175(a)(1).
       (c) Notice.--The Secretary of the Interior shall publish in 
     the Federal Register a notice of the establishment of the 
     refuge.
       (d) Administration and Purposes.--
       (1) In general.--The Secretary of the Interior shall manage 
     the refuge in accordance with applicable law, including this 
     subtitle, the National Wildlife Refuge System Administration 
     Act of 1966 (16 U.S.C. 668dd et seq.), and the purposes 
     specified in that Act.
       (2) Refuge purposes.--At the conclusion of the transfer 
     under section 3175(a)(3), the refuge shall be managed for the 
     purposes of--
       (A) restoring and preserving native ecosystems;
       (B) providing habitat for, and population management of, 
     native plants and migratory and resident wildlife;
       (C) conserving threatened and endangered species (including 
     species that are candidates for listing under the Endangered 
     Species Act of 1973 (16 U.S.C. 1531 et seq.)); and
       (D) providing opportunities for compatible, wildlife-
     dependent environmental scientific research.
       (3) Management.--In managing the refuge, the Secretary 
     shall ensure that wildlife-dependent recreation and 
     environmental education and interpretation are the priority 
     public uses of the refuge.

     SEC. 3178. COMPREHENSIVE CONSERVATION PLAN.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, in developing a comprehensive 
     conservation plan in accordance with section 4(e) of the 
     National Wildlife Refuge System Administration Act of 1966 
     (16 U.S.C. 668dd(e)), the Secretary of the Interior, in 
     consultation with the Secretary, the members of the 
     Coalition, the Governor of the State of Colorado, and the 
     Rocky Flats Trustees, shall establish a comprehensive 
     planning process that involves the public and local 
     communities.
       (b) Other Participants.--In addition to the entities 
     specified in subsection (a), the comprehensive planning 
     process shall include the opportunity for direct involvement 
     of entities not members of the Coalition as of the date of 
     enactment of this Act, including the Rocky Flats Citizens' 
     Advisory Board and the cities of Thornton, Northglenn, 
     Golden, Louisville, and Lafayette, Colorado.
       (c) Dissolution of Coalition.--If the Coalition dissolves, 
     or if any Coalition member elects to leave the Coalition 
     during the comprehensive planning process under this 
     section--
       (1) the comprehensive planning process under this section 
     shall continue; and
       (2) an opportunity shall be provided to each entity that is 
     a member of the Coalition as of September 1, 2000, for direct 
     involvement in the comprehensive planning process.
       (d) Contents.--In addition to the requirements under 
     section 4(e) of the National Wildlife Refuge System 
     Administration Act of 1966 (16 U.S.C. 668dd(e)), the 
     comprehensive conservation plan required by this section 
     shall address and make recommendations on the following:
       (1) The identification of any land described in section 
     3174(e) that could be made available for transportation 
     purposes.
       (2) The potential for leasing any land in Rocky Flats for 
     the National Renewable Energy Laboratory to carry out 
     projects relating to the National Wind Technology Center.
       (3) The characteristics and configuration of any perimeter 
     fencing that may be appropriate or compatible for cleanup and 
     closure, refuge, or other purposes.
       (4) The feasibility of locating, and the potential location 
     for, a visitor and education center at the refuge.
       (5) Any other issues relating to Rocky Flats.
       (e) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary of the Interior shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Resources of the House of Representatives--
       (1) the comprehensive conservation plan prepared under this 
     section; and
       (2) a report that--
       (A) outlines the public involvement in the comprehensive 
     planning process; and
       (B) to the extent that any input or recommendation from the 
     comprehensive planning process is not accepted, clearly 
     states the reasons why the input or recommendation is not 
     accepted.

     SEC. 3179. PROPERTY RIGHTS.

       (a) In General.--Except as provided in subsection (c), 
     nothing in this subtitle limits any valid, existing property 
     right at Rocky Flats that is owned by any person or entity, 
     including, but not limited to--
       (1) any mineral right;
       (2) any water right or related easement; and
       (3) any facility or right-of-way for a utility.
       (b) Access.--Except as provided in subsection (c), nothing 
     in this subtitle affects any right of an owner of a property 
     right described in subsection (a) to access the owner's 
     property.
       (c) Reasonable Conditions.--
       (1) In general.--The Secretary or the Secretary of the 
     Interior may impose such reasonable conditions on access to 
     property rights described in subsection (a) as are 
     appropriate for the cleanup and closure of Rocky Flats and 
     for the management of the refuge.
       (2) No effect on applicable law.--Nothing in this subtitle 
     affects any other applicable Federal, State, or local law 
     (including any regulation) relating to the use, development, 
     and management of property rights described in subsection 
     (a).
       (3) No effect on access rights.--Nothing in this subsection 
     precludes the exercise of any access right, in existence on 
     the date of enactment of this Act, that is necessary to 
     perfect or maintain a water right in existence on that date.
       (d) Purchase of Mineral Rights.--
       (1) In general.--The Secretary shall seek to acquire any 
     and all mineral rights at Rocky Flats through donation or 
     through purchase or exchange from willing sellers for fair 
     market value.
       (2) Funding.--The Secretary and the Secretary of the 
     Interior--
       (A) may use for the purchase of mineral rights under 
     paragraph (1) funds specifically provided by Congress; but
       (B) shall not use for such purchase funds appropriated by 
     Congress for the cleanup and closure of Rocky Flats.
       (e) Utility Extension.--
       (1) In general.--The Secretary or the Secretary of the 
     Interior may allow not more than one extension from an 
     existing utility right-of-way on Rocky Flats, if necessary.
       (2) Conditions.--An extension under paragraph (1) shall be 
     subject to the conditions specified in subsection (c).
       (f) Easement Surveys.--
       (1) In general.--Subject to paragraph (2), until the date 
     that is 180 days after the date of enactment of this Act, an 
     entity that possesses a decreed water right or prescriptive 
     easement relating to land at Rocky Flats may carry out such 
     surveys at Rocky Flats as the entity determines are necessary 
     to perfect the right or easement.
       (2) Limitation on conditions.--An activity carried out 
     under paragraph (1) shall be subject only to such conditions 
     as are imposed--
       (A) by the Secretary of Energy, before the date on which 
     the transfer of management responsibilities under section 
     3175(a)(3) is completed, to minimize interference with the 
     cleanup and closure of Rocky Flats; and
       (B) by the Secretary of the Interior, on or after the date 
     on which the transfer of management responsibilities under 
     section 3175(a)(3) is completed, to minimize adverse effects 
     on the management of the refuge.

     SEC. 3180. ROCKY FLATS MUSEUM.

       (a) Museum.--In order to commemorate the contribution that 
     Rocky Flats and its worker force provided to the winning of 
     the Cold War and the impact that the contribution has had on 
     the nearby communities and the State of Colorado, the 
     Secretary may establish a Rocky Flats Museum.
       (b) Location.--The Rocky Flats Museum shall be located in 
     the city of Arvada, Colorado, unless, after consultation 
     under subsection (c), the Secretary determines otherwise.

[[Page 18577]]

       (c) Consultation.--The Secretary shall consult with the 
     city of Arvada, other local communities, and the Colorado 
     State Historical Society on--
       (1) the development of the museum;
       (2) the siting of the museum; and
       (3) any other issues relating to the development and 
     construction of the museum.
       (d) Report.--Not later than three years after the date of 
     enactment of this Act, the Secretary, in coordination with 
     the city of Arvada, shall submit to the Committee on Armed 
     Services of the Senate and the appropriate committee of the 
     House of Representatives a report on the costs associated 
     with the construction of the museum and any other issues 
     relating to the development and construction of the museum.

     SEC. 3181. REPORT ON FUNDING.

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

     SEC. 3201. AUTHORIZATION.

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

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

     SEC. 3301. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN THE 
                   NATIONAL DEFENSE STOCKPILE.

       (a) Disposal Required.--Subject to the conditions specified 
     in subsection (b), the President may dispose of obsolete and 
     excess materials currently contained in the National Defense 
     Stockpile provided for in section 4 of the Strategic and 
     Critical Materials Stock Piling Act (50 U.S.C. 98c). The 
     materials subject to disposal under this subsection and the 
     quantity of each material authorized to be disposed of by the 
     President are set forth in the following table:


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

       (b) Minimization of Disruption and Loss.--The President may 
     not dispose of materials under subsection (a) to the extent 
     that the disposal will result in--
       (1) undue disruption of the usual markets of producers, 
     processors, and consumers of the materials proposed for 
     disposal; or
       (2) avoidable loss to the United States.
       (c) Relationship to Other Disposal Authority.--The disposal 
     authority provided in subsection (a) is new disposal 
     authority and is in addition to, and shall not affect, any 
     other disposal authority provided by law regarding the 
     materials specified in such subsection.

     SEC. 3302. REVISION OF LIMITATIONS ON REQUIRED DISPOSALS OF 
                   COBALT IN THE NATIONAL DEFENSE STOCKPILE.

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

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

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

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

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

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization of Appropriations.--There is hereby 
     authorized to be appropriated to the Secretary of Energy 
     $17,371,000 for fiscal year 2002 for the purpose of carrying 
     out activities under chapter 641 of title 10, United States 
     Code, relating to the naval petroleum reserves (as defined in 
     section 7420(2) of such title).
       (b) Availability.--The amount authorized to be appropriated 
     by subsection (a) shall remain available until expended.

                          ____________________