[House Report 107-333]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-333
_______________________________________________________________________

                                     




                    NATIONAL DEFENSE AUTHORIZATION


                       ACT FOR FISCAL YEAR 2002

                               __________

                           CONFERENCE REPORT

                              to accompany

                                S. 1438




               December 12, 2001.--Ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
76-910 STAR                WASHINGTON : 2002

                            C O N T E N T S

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                                                                   Page
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE.......   387
    Summary Statement of Conference Action.......................   387
    Summary Table of Authorizations..............................   387
    Congressional Defense Committees.............................   394
    Committee Reports............................................   394
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS.................   394
Title I--Procurement.............................................   394
            Procurement overview.................................   394
            Management reform initiatives........................   396
            Aircraft Procurement, Army--Overview.................   396
            Missile Procurement, Army--Overview..................   400
            Procurement of Weapons and Tracked Combat Vehicles, 
              Army--Overview.....................................   404
            Procurement of Ammunition, Army--Overview............   409
            Other Procurement, Army--Overview....................   415
            Chemical Agents and Munitions Destruction, Army--
              Overview...........................................   432
            Aircraft Procurement, Navy--Overview.................   434
            Weapons Procurement, Navy--Overview..................   440
            Procurement of Ammunition, Navy and Marine Corps--
              Overview...........................................   445
            Shipbuilding and Conversion, Navy--Overview..........   449
            Other Procurement, Navy--Overview....................   452
            Procurement, Marine Corps--Overview..................   466
            Aircraft Procurement, Air Force--Overview............   473
            High altitude endurance unmanned aerial vehicle......   482
            Missile Procurement, Air Force--Overview.............   482
            Procurement of Ammunition, Air Force--Overview.......   486
            Other Procurement, Air Force--Overview...............   489
            Procurement, Defense-Wide--Overview..................   498
            Chemical Agents and Munitions Destruction, Defense--
              Overview...........................................   505
    Items of Special Interest....................................   507
            Acquisition programs at the National Reconnaissance 
              Office.............................................   507
            Acquisition programs at the National Security Agency.   508
            Airborne signals intelligence recapitalization and 
              modernization......................................   509
            Arleigh Burke-class destroyer procurement............   510
            Attack submarine force structure study...............   510
    Legislative Provisions Adopted...............................   511
        Subtitle A--Authorization of Appropriations..............   511
            Authorization of appropriations (secs. 101-107)......   511
            Chemical agents and munitions destruction, Defense 
              (sec. 106).........................................   511
        Subtitle B--Army Programs................................   511
            Repeal of limitations on bunker defeat munitions 
              program (sec. 111).................................   511
            Extension of pilot program on sales of manufactured 
              articles and services of certain Army industrial 
              facilities without regard to availability from 
              domestic sources (sec. 112)........................   512
            Limitations on acquisition of interim armored 
              vehicles and deployment of interim brigade combat 
              teams (sec. 113)...................................   512
        Subtitle C--Navy Programs................................   513
            Virginia class submarine program (sec. 121)..........   513
            Multiyear procurement authority for F/A-18E/F 
              aircraft engines (sec. 122)........................   513
            V-22 Osprey aircraft program (sec. 123)..............   514
            Report on status of V-22 Osprey aircraft before 
              resumption of flight testing (sec. 124)............   514
        Subtitle D--Air Force Programs...........................   514
            Multiyear procurement authority for C-17 aircraft 
              (sec. 131).........................................   514
    Legislative Provisions Not Adopted...........................   515
            Additional amount for Shipbuilding and Conversion, 
              Navy...............................................   515
            Destruction of existing stockpile of lethal chemical 
              agents and munitions...............................   515
            Extension of multiyear contract for Family of Medium 
              Tactical Vehicles..................................   515
            Procurement of additional M291 skin decontamination 
              kits...............................................   515
Title II--Research, Development, Test, and Evaluation............   516
            Research, Development, Test, and Evaluation overview.   516
            Management reform initiatives........................   518
            Research, Development, Test and Evaluation Army--
              Overview...........................................   518
            Army missile defense technology......................   535
            Comanche.............................................   535
            Rapid acquisition program for transformation.........   536
            Tactical high energy laser...........................   536
            Thermionics technology...............................   536
            Research, Development, Test and Evaluation, Navy--
              Overview...........................................   536
            Follow-on support jamming aircraft...................   557
            Future destroyer program.............................   557
            Littoral support craft-experimental..................   557
            Research, Development, Test and Evaluation, Air 
              Force--Overview....................................   558
            Joint Strike Fighter.................................   574
            Low cost launch technologies.........................   574
            Special aerospace materials and materials 
              manufacturing processes............................   575
            Research, Development, Test and Evaluation, Defense-
              Wide--Overview.....................................   575
            Arrow missile defense system.........................   592
            Ballistic missile defense advanced technology........   592
            Common database asset for biological security........   592
    Items of Special Interest....................................   593
            Navy research and development budget exhibits........   593
    Legislative Provisions Adopted...............................   593
        Subtitle A--Authorization of Appropriations..............   593
            Authorization of appropriations (secs. 201-202)......   593
            Supplemental authorization of appropriations for 
              fiscal year 2001 for Research, Development, Test, 
              and Evaluation Defense-Wide (sec. 203).............   593
        Subtitle B--Program Requirements, Restrictions, and 
          Limitations............................................   594
            Naval surface fire support assessment (sec. 211).....   594
            Collaborative program for development of advanced 
              radar systems (sec. 212)...........................   594
            Repeal of limitations on total cost of engineering 
              and manufacturing development for F-22 aircraft 
              program (sec. 213).................................   595
            Joint biological defense program (sec. 214)..........   595
            Cooperative Department of Defense-Department of 
              Veterans Affairs Medical Research Program (sec. 
              215)...............................................   595
            C-5 aircraft reliability enhancement and reengining 
              program (sec. 216).................................   595
        Subtitle C--Ballistic Missile Defense....................   596
            Transfer of responsibility for procurement for 
              missile defense programs from Ballistic Missile 
              Defense Organization to military departments (sec. 
              231)...............................................   596
            Program elements for Ballistic Missile Defense 
              Organization (sec. 232)............................   596
            Ballistic missile defense budget justification.......   597
            Support of ballistic missile defense activities of 
              the Department of Defense by the National Defense 
              Laboratories of the Department of Energy (sec. 233)   598
            Missile defense testing initiative (sec. 234)........   599
            Construction of test bed facilities for missile 
              defense system (sec. 235)..........................   599
        Subtitle D--Air Force Science and Technology for the 21st 
          Century................................................   599
            Air Force science and technology for the 21st Century 
              Act (sec. 251-252).................................   599
            Study and report on effectiveness of Air Force 
              science and technology program changes (sec. 253)..   600
        Subtitle E--Other Matters................................   600
            Establishment of unmanned aerial vehicle joint 
              operational test bed system (sec. 261).............   600
            Demonstration project to increase small business and 
              university participation in Office of Naval 
              Research efforts to extend benefits of science and 
              technology research to fleet (sec. 262)............   600
            Communication of safety concerns from operational 
              test and evaluation officials to program managers 
              (sec. 263).........................................   601
    Legislative Provisions Not Adopted...........................   601
            Big Crow.............................................   601
            C-5 aircraft modernization...........................   601
            Enhanced scramjet mixing.............................   601
            Management responsibility for Navy mine 
              countermeasures programs...........................   601
            Review of alternatives to the V-22 Osprey aircraft...   602
            Special operations forces command, control, 
              communications, computers, and intelligence systems 
              threat warning and situational awareness program...   602
            Technology ``Challenge'' program.....................   602
            Technology transition initiative.....................   602
Title III--Operation and Maintenance.............................   602
            Overview.............................................   602
            Management reform initiatives........................   633
            Combating terrorism initiative.......................   633
            Commercial imagery to support military requirements..   634
    Legislative Provisions Adopted...............................   634
        Subtitle A--Authorization of Appropriations..............   634
            Authorization of appropriations (secs. 301-302)......   634
            Armed Forces Retirement Home (sec. 303)..............   634
            Transfer from National Defense Stockpile Transaction 
              Fund (sec. 304)....................................   635
            Funds for renovation of Department of Veterans 
              Affairs facilities adjacent to Naval Training 
              Center Great Lakes, Illinois (sec. 305)............   635
            Defense Language Institute Foreign Language Center 
              expanded Arabic language program (sec. 306)........   635
        Subtitle B--Environmental Provisions.....................   635
            Inventory of unexploded ordnance, discarded military 
              munitions, and munitions constituents at defense 
              sites (other than operational ranges) (sec. 311)...   635
            Establishment of new program element for remediation 
              of unexploded ordnance, discarded military 
              munitions, and munitions constituents (sec. 312)...   636
            Assessment of environmental remediation of unexploded 
              ordnance, discarded military munitions, and 
              munitions constituents (sec. 313)..................   636
            Conformity of surety authority under environmental 
              restoration program with surety authority under 
              CERCLA (sec. 314)..................................   636
            Elimination of annual report on contractor 
              reimbursement for costs of environmental response 
              actions (sec. 315).................................   636
            Pilot program for sale of air pollution emission 
              reduction incentives (sec. 316)....................   636
            Department of Defense energy efficiency program (sec. 
              317)...............................................   637
            Procurement of alternative fueled and hybrid light 
              duty trucks (sec. 318).............................   637
            Reimbursement of Environmental Protection Agency for 
              certain response costs in connection with Hooper 
              Sands site, South Berwick, Maine (sec. 319)........   637
            River mitigation studies (sec. 320)..................   637
        Subtitle C--Commissaries and Nonappropriated Fund 
          Instrumentalities......................................   638
            Commissary benefits for new members of the Ready 
              Reserve (sec. 331).................................   638
            Reimbursement for use of commissary facilities by 
              military departments for purposes other than 
              commissary sales (sec. 332)........................   638
            Public releases of commercially valuable information 
              commissary stores (sec. 333).......................   638
            Rebate agreements with procedures of foods provided 
              under special supplemental food program (sec. 334).   638
            Civil recovery for nonappropriated fund 
              instrumentality costs related to shoplifting (sec. 
              335)...............................................   639
        Subtitle D--Workforce and Depot Issues...................   639
            Revision of authority to waive limitation on 
              performance of depot-level maintenance (sec. 341)..   639
            Exclusion of certain expenditures from limitation on 
              private sector performance of depot-level 
              maintenance (sec. 342).............................   639
            Protections for purchasers of articles and services 
              manufactured or performed by working-capital funded 
              industrial facilities of the Department of Defense 
              (sec. 343).........................................   639
            Revision of deadline for annual report on commercial 
              and industrial activities (sec. 344)...............   640
            Pilot manpower reporting system in Department of the 
              Army (sec. 345)....................................   640
            Development of Army Workload and Performance System 
              and Wholesale Logistics Modernization Program (sec. 
              346)...............................................   640
        Subtitle E--Defense Dependents Education.................   641
            Assistance to local educational agencies that benefit 
              dependents of members of the armed forces and 
              Department of Defense civilian employees (sec. 351)   641
            Impact aid for children with severe disabilities 
              (sec. 352).........................................   641
            Availability of auxiliary services of defense 
              dependents' education system for dependents who are 
              home school students (sec. 353)....................   641
            Comptroller General study of adequacy of compensation 
              provided for teachers in the Department of Defense 
              overseas dependents' schools (sec. 354)............   641
        Subtitle F--Other Matters................................   642
            Availability of excess defense personal property to 
              support Department of Veterans Affairs initiative 
              to assist homeless veterans (sec. 361).............   642
            Incremental implementation of Navy-Marine Corps 
              Intranet contract (sec. 362).......................   642
            Comptroller General Study and Report of National 
              Guard Distributive Training Technology Project 
              (sec. 363).........................................   643
            Reauthorization of warranty claims recovery pilot 
              program (sec. 364).................................   644
            Evaluation of current demonstration programs to 
              improve quality of personal property shipments of 
              members (sec. 365).................................   644
            Sense of Congress regarding security to be provided 
              at 2002 Winter Olympic Games (sec. 366)............   644
        Legislative Provisions Not Adopted.......................   645
            Applicability of core logistics capability 
              requirements to nuclear aircraft carriers..........   645
            Authorization of additional funds....................   645
            Consequence management training......................   645
            Critical infrastructure protection initiative of the 
              Navy...............................................   645
            Environmental restoration, Formerly Used Defense 
              Sites..............................................   645
            Expansion of entities eligible for loan, gift, and 
              exchange of documents, historical artifacts, and 
              obsolete combat materiel...........................   646
            Funding for land forces information operations 
              sustainment........................................   646
            Improvements in instrumentation and targets at Army 
              live-fire training ranges..........................   646
            Limitation on workforce reviews......................   646
Title IV--Military Personnel Authorizations......................   647
    Legislative Provisions Adopted...............................   647
        Subtitle A--Active Forces................................   647
            End strengths for active forces (sec. 401)...........   647
            Revision in permanent end strength minimum levels 
              (sec. 402).........................................   647
            Increase in senior enlisted active duty grade limit 
              for Navy, Marine Corps, and Air Force (sec. 403)...   647
        Subtitle B--Reserve Forces...............................   647
            End strengths for Selected Reserve (sec. 411)........   647
            End strengths for reserves on active duty in support 
              of the reserves (sec. 412).........................   648
            End strengths for military technicians (dual status 
              sec. 413)..........................................   648
            Fiscal year 2002 limitation on non-dual status 
              technicians (sec. 414).............................   649
            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. 415)..............................   649
        Subtitle C--Other Matters Relating to Personnel Strengths   649
            Administration of end strengths (sec. 421)...........   649
            Active duty end strength exemption for National Guard 
              and reserve personnel performing funeral honors 
              functions (sec. 422)...............................   649
        Subtitle D--Authorization of Appropriations..............   650
            Authorization of appropriations for military 
              personnel (sec. 431)...............................   650
    Legislative Provisions Not Adopted...........................   650
            Increase in authorized strengths for Air Force 
              officers on active duty in the grade of major......   650
            Strength and grade limitation accounting for reserve 
              component members on active duty in support of a 
              contingency operation..............................   650
Title V--Military Personnel Policy...............................   651
    Legislative Provisions Adopted...............................   651
        Subtitle A--Officer Personnel Policy.....................   651
            Enhanced flexibility for management of senior general 
              and flag officer positions (sec. 501)..............   651
            Certifications of satisfactory performance for 
              retirement of officers in grades above major 
              general and rear admiral (sec. 502)................   651
            Review of actions of selection boards (sec. 503).....   652
            Temporary reduction of time-in-grade requirement for 
              eligibility for promotion for certain active-duty 
              list officers in grades of first lieutenant and 
              lieutenant (junior grade) (sec. 504)...............   652
            Authority for promotion without selection board 
              consideration for all fully qualified officers in 
              grade of first lieutenant or lieutenant (junior 
              grade) in the Navy (sec. 505)......................   652
            Authority to adjust date of rank of certain 
              promotions delayed by reason of unusual 
              circumstances (sec. 506)...........................   653
            Authority for limited extension of medical deferment 
              of mandatory retirement or separation (sec. 507)...   653
            Authority for limited extension on active duty of 
              members subject to mandatory retirement or 
              separation (sec. 508)..............................   653
            Exemption from certain administrative limitations for 
              retired officers ordered to active duty as defense 
              or service attaches (sec. 509).....................   653
            Officer in charge of United States Navy Band (sec. 
              510)...............................................   654
        Subtitle B--Reserve Component Personnel Policy...........   654
            Placement on active-duty list of certain reserve 
              officers on active duty for a period of three years 
              or less (sec. 511).................................   654
            Exception to baccalaureate degree requirement for 
              appointment of reserve officers to grades above 
              first lieutenant (sec. 512)........................   654
            Improved disability benefits for certain reserve 
              component members (sec. 513).......................   654
            Time-in-grade requirement for reserve component 
              officers retired with a nonservice-connected 
              disability (sec. 514)..............................   655
            Equal treatment of reserves and full-time active duty 
              members for purposes of managing personnel 
              deployments (sec. 515).............................   655
            Modification of physical examination requirements for 
              members of the Individual Ready Reserve (sec. 516).   655
            Retirement of reserve members without requirement for 
              formal application or request (sec. 517)...........   655
            Space-required travel by reserves on military 
              aircraft (sec. 518)................................   655
            Payment of Federal Employee Health Benefit Program 
              premiums for certain reservists called to active 
              duty in support of contingency operations (sec. 
              519)...............................................   656
        Subtitle C--Joint Specialty Officers and Joint 
          Professional Military Education........................   656
            Nominations and promotions for joint specialty 
              officers (sec. 521)................................   656
            Joint duty credit (sec. 522).........................   656
            Retroactive joint service credit for duty in certain 
              joint task forces (sec. 523).......................   656
            Revision to annual report on joint officer management 
              (sec. 524).........................................   657
            Requirement for selection for joint specialty before 
              promotion to general of flag officer grade (sec. 
              525)...............................................   657
            Independent study of joint officer management and 
              joint professional military education reforms (sec. 
              526)...............................................   658
            Professional development education (sec. 527)........   658
            Authority for National Defense University to enroll 
              certain private sector civilians (sec. 528)........   658
            Continuation of reserve component professional 
              military education test (sec. 529).................   658
        Subtitle D--Military Education and Training..............   658
            Defense Language Institute Foreign Language Center 
              (sec. 531).........................................   658
            Authority for the Marine Corps University to award 
              degree of master of strategic studies (sec. 532)...   659
            Foreign students attending the service academies 
              (sec. 533).........................................   659
            Increase in maximum age for appointment as a cadet or 
              midshipman in Senior Reserve Officers' Training 
              Corps scholar ship programs (sec. 534).............   659
            Participation of regular enlisted members of the 
              armed forces in Senior Reserve Officers' Training 
              Corps program (sec. 535)...........................   659
            Authority to modify the service obligation of certain 
              ROTC cadets in military junior colleges receiving 
              financial assistance (sec. 536)....................   660
            Repeal of limitation on number of Junior Reserve 
              Officers' Training Corps units (sec. 537)..........   660
            Modification of nurse officer candidate accession 
              program restriction on students attending 
              educational institutions with Senior Reserve 
              Officers' Training programs (sec. 538).............   660
            Reserve health professionals stipend program 
              expansion (sec. 539)...............................   660
            Housing allowance for the chaplain for the Corps of 
              Cadets at the United States Military Academy (sec. 
              540)...............................................   660
        Subtitle E-- Recruiting and Accession Programs...........   660
            18-month enlistment pilot program (sec. 541).........   660
            Improved benefits under the Army College First 
              program (sec. 542).................................   661
            Correction and extension of certain Army recruiting 
              pilot program authorities (sec. 543)...............   661
            Military recruiter access to secondary school 
              students (sec. 544)................................   661
            Permanent authority for use of military recruiting 
              funds for certain expenses at Department of Defense 
              recruiting functions (sec. 545)....................   662
            Report on health and disability benefits for pre-
              accession training and education programs (sec. 
              546)...............................................   662
        Subtitle F--Decorations, Awards, and Posthumous 
          Commission.............................................   662
            Authority for award of the Medal of Honor to Humbert 
              R. Versace, Jon E. Swanson, and Ben L. Salomon for 
              valor (sec. 551)...................................   662
            Review regarding award of Medal of Honor to certain 
              Jewish American and Hispanic American war veterans 
              (sec. 552).........................................   662
            Authority to issue duplicate Medals of Honor and to 
              replace stolen military decorations (sec. 553).....   663
            Retroactive Medal of Honor special pension (sec. 554)   663
            Waiver of time limitations for award of certain 
              decorations to certain persons (sec. 555)..........   663
            Sense of Congress on issuance of certain medals (sec. 
              556)...............................................   663
            Sense of Congress on development of a more 
              comprehensive, uniform policy for the award of 
              decorations to military and civilian personnel of 
              the Department of Defense (sec. 557)...............   664
            Posthumous Army commission in the grade of captain in 
              the Chaplains Corps to Ella E. Gibson for service 
              as chaplain of the First Wisconsin Heavy Artillery 
              Regiment during the Civil War (sec. 558)...........   664
        Subtitle G--Funeral Honors Duty..........................   664
            Participation of military retirees in funeral honors 
              details (sec. 561).................................   664
            Funeral honors duty performed by reserve and guard 
              members to be treated as inactive-duty training for 
              certain purposes (sec. 562)........................   664
            Use of military leave for funeral honors duty by 
              reserve members and National Guardsman (sec. 563)..   664
            Authority to provide appropriate articles of clothing 
              as a civilian uniform for civilians participating 
              in funeral honor details (sec. 564)................   665
        Subtitle H--Military Spouses and Family Members..........   665
            Improved financial and other assistance to military 
              spouses for job training and education (sec. 571)..   665
            Persons authorized to be included in surveys of 
              military families regarding federal programs (sec. 
              572)...............................................   665
            Clarification of treatment of classified information 
              concerning persons in a missing status (sec. 573)..   665
            Transportation to annual meeting of next-of-kin of 
              persons unaccounted for from conflicts after World 
              War II (sec. 574)..................................   666
            Amendments to charter of Defense Task Force on 
              Domestic Violence (sec. 575).......................   666
        Subtitle I--Military Justice and Legal Assistance Matters   666
            Blood alcohol content limit for the offense under the 
              Uniform Code of Military Justice of drunken 
              operation of a vehicle, aircraft, or vessel (sec. 
              581)...............................................   666
            Requirement that courts-martial consist of not less 
              than 12 members in capital cases (sec. 582)........   666
            Acceptance of voluntary legal assistance for the 
              civil affairs of members and former members of the 
              uniformed services and their dependents (sec. 583).   667
        Subtitle J--Other Matters................................   667
            Congressionl review period for change in ground 
              combat exclusion policy (sec. 591).................   667
            Per diem allowance for lengthy or numerous 
              deployments (sec. 592).............................   667
            Clarification of disability severance pay computation 
              (sec. 593).........................................   668
            Transportation or storage of privately owned vehicles 
              on change or permanent station (sec. 594)..........   668
             Repeal of requirement for final Comptroller General 
              report relating to Army end strength allocations 
              (sec. 595).........................................   668
            Continued Department of Defense administration of 
              National Guard Challenge Program and Department of 
              Defense STARBASE Program (sec. 596)................   668
            Report on Defense Science Board recommendation on 
              original appointments in regular grades for academy 
              graduates and certain other new officers (sec. 597)   669
            Sense of Congress regarding the selection of officers 
              for recommendation for appointment as Commander, 
              United States Transportation Command (Sec. 598)....   669
    Legislative Provisions Not Adopted...........................   670
            Acceptance of fellowships, scholarships, or grants 
              for legal education of officer participating in the 
              Funded Legal Education Program.....................   670
            Codification of requirement for regulations for 
              delivery of military personnel to civil authorities 
              when charged with certain offenses.................   670
            Expanded application of reserve special selection 
              board..............................................   670
            Members of the National Guard Performing funeral 
              honors duty while in non-federal status............   670
            One-year extension of expiration data for certain 
              force management authorities.......................   671
            Preparation for, participation in, and conduct of 
              athletic competitions by the National Guard and 
              members of the National Guard......................   671
            Right of convicted accused to request sentencing by 
              military judge.....................................   671
Title VI--Compensation and Other Personnel Benefits..............   671
    Items of Special Interest....................................   671
            Personal and Family financial management programs....   671
    Legislative Provisions Adopted...............................   672
        Subtitle A--Pay and Allowances...........................   672
            Increase in basic pay for fiscal year 2002 (sec. 601)   672
            Basic pay rate for certain reserve commissioned 
              officers with prior service as an enlisted member 
              or warrant officer (sec. 602)......................   672
            Reserve component compensation for distributed 
              learning activities performed as inactive-duty 
              training (sec. 603)................................   672
            Subsistence allowances (sec. 604)....................   672
            Eligibility for temporary housing allowance while in 
              travel or leave status between permanent duty 
              stations (sec. 605)................................   673
            Uniform allowance for officers (sec. 606)............   673
            Family separation allowance for members electing 
              unaccompanied tour by reason of health limitations 
              of dependents (sec. 607)...........................   673
        Subtitle B--Bonuses and Special Incentive Pays...........   673
            One-year extension of certain bonus and special pay 
              authorities for reserve forces (sec. 611)..........   673
            One-year extension of certain bonus and special pay 
              authorities for nurse officer candidates, 
              registered nurses, and nurse anesthetists (sec. 
              612)...............................................   673
            One-year extension of special pay and bonus 
              authorities (sec. 613-614).........................   674
            Hazardous duty pay for members of maritime visit, 
              board, search, and seizure teams (sec. 615)........   674
            Eligibility for certain career continuation bonuses 
              for early commitment to remain on active duty (sec. 
              616)...............................................   674
            Secretarial discretion in prescribing submarine duty 
              incentive pay rates (sec. 617).....................   674
            Conforming accession bonus for dental offices 
              authority with authorities for other special pay 
              and bonus (sec. 618)...............................   674
            Modification of eligibility requirements for 
              Individual Ready Reserve bonus for reenlistment, 
              enlistment, or extension of enlistment (sec. 619)..   675
            Installation payment authority for 15 years career 
              status bonus (sec. 620)............................   675
            Accession bonus for new officers in critical skills 
              (sec. 621).........................................   675
            Education savings plan to encourage reenlistments and 
              extensions of service in critical specialities 
              (sec. 622).........................................   675
            Continuation of payment of special and incentive pay 
              at unreduced rates during stop loss periods (sec. 
              623)...............................................   675
            Retroactive authorization for imminent danger pay for 
              service in connection with Operation Enduring 
              Freedom (sec. 624).................................   675
        Subtitle C--Travel and Transportation Allowances.........   676
            Minimum per diem rate for travel and transportation 
              allowance for travel performed upon a change of 
              permanent station and certain other travel (sec. 
              631)...............................................   676
            Eligibility for payment of subsistence expenses 
              associated with occupancy of temporary lodging 
              incident to reporting to first permanent duty 
              station (sec. 632).................................   676
            Reimbursement of members for mandatory pet quarantine 
              fees for household pets (sec. 633).................   676
            Increased weight allowance for transportation of 
              baggage and household effects for junior enlisted 
              members (sec. 634).................................   676
            Eligibility of additional members for dislocation 
              allowance (sec. 635)...............................   676
            Partial dislocation allowance authorized for housing 
              moves ordered for government convenience (sec. 636)   677
            Allowances for travel performed in connection with 
              members taking authorized leave between consecutive 
              overseas tours (sec. 637)..........................   677
            Travel and transportation allowances for family 
              members to attend burial of a deceased member of 
              the uniformed services (sec. 638)..................   677
            Funded student travel for foreign study under an 
              education program approved by a United States 
              school (sec. 639)..................................   677
        Subtitle D--Retirement and Survivor Benefit Matters......   678
            Contingent authority for concurrent receipt of 
              military retired pay and veterans' disability 
              compensation and enhancement of special 
              compensation authority (sec. 641)..................   678
            Survivor Benefit Plan annuities for surviving spouses 
              of members who die while on active duty and not 
              eligible for retirement (sec. 642).................   678
        Subtitle E--Other Matters................................   678
            Payment for unused leave in excess of 60 days accrued 
              by members of reserve components on active duty for 
              one year or less (sec. 651)........................   678
            Additional authority to provide assistance for 
              families of members of the armed forces (sec. 652).   679
            Authorization of transitional compensation and 
              commissary and exchange benefits for dependents of 
              commissioned officers of the Public Health Service 
              and the National Oceanic and Atmospheric 
              Administration who are separated for dependent 
              abuse (sec. 653)...................................   679
            Transfer of entitlement to educational assistance 
              under Montgomery GI Bill by members of the Armed 
              Forces with critical military skills (sec. 654)....   680
    Legislative Provisions Not Adopted...........................   680
            Career sea pay.......................................   680
            Equal treatment of reservists performing inactive-
              duty training for receipt of aviation career 
              incentive pay......................................   680
            Increase in basic allowance for housing in the United 
              States.............................................   680
Title VII--Health Care Provisions................................   681
    Legislative Provisions Adopted...............................   681
        Subtitle A--Tricare Program Improvements.................   681
            Sub-acute and long-term care program reform (sec. 
              701)...............................................   681
            Prosthetics and hearing aids (sec. 702)..............   681
            Durable medical equipment (sec. 703).................   681
            Rehabilitative therapy (sec. 704)....................   681
            Report on mental health benefits (sec. 705)..........   681
            Clarification of eligibility for reimbursement of 
              travel expenses of adult accompanying patient in 
              travel for specialty care (sec. 706)...............   681
            TRICARE program limitations on payment rates for 
              institutional health care providers and on balance 
              billing by institutional and noninstitutional 
              health care providers (sec. 707)...................   682
            Improvements in administration of the TRICARE program 
              (sec. 708).........................................   682
        Subtitle B--Senior Health Care...........................   682
            Clarifications and improvements regarding the 
              Department of Defense Medicare-Eligible Retiree 
              Health Care Fund (sec. 711)........................   682
        Subtitle C--Studies and Reports..........................   683
            Comptroller General study of health care coverage of 
              members of the reserve components of the Armed 
              Forces and the National Guard (sec. 721)...........   683
            Comptroller General study of adequacy and quality of 
              health care provided to women under the Defense 
              Health Program (sec. 722)..........................   683
            Repeal of obsolete report requirement (sec. 723).....   683
            Comptroller General report on requirement to provide 
              screenings, physical examinations, and other care 
              for certain members (sec. 724).....................   683
        Subtitle D--Other Matters................................   684
            Prohibition against requiring military retirees to 
              receive health care solely through the Department 
              of Defense (sec. 731)..............................   684
            Fees for trauma and other medical care provided to 
              civilians (sec. 732)...............................   684
            Enhancement of medical product development (sec. 733)   684
            Pilot program providing for Department of Veterans 
              Affairs support in the performance of separation 
              physical examinations (sec. 734)...................   685
            Modification of prohibition on requirement of 
              nonavailability statement or preauthorization (sec. 
              735)...............................................   685
            Transitional health care for members separated from 
              active duty (sec. 736).............................   685
            Two-year extension of health care management 
              demonstration program (sec. 737)...................   686
            Joint DOD-VA pilot program for providing graduate 
              medical education and training for physicians (sec. 
              738)...............................................   686
    Legislative Provisions Not Adopted...........................   686
            Effective date.......................................   686
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   686
    Items of Special Interest....................................   686
            Management reform initiatives........................   686
    Legislative Provisions Adopted...............................   687
        Subtitle A--Procurement Management and Administration....   687
            Management of procurement of services (sec. 801).....   687
            Savings goals for procurement of services (sec. 802).   687
            Competition requirement for purchase of services 
              pursuant to multiple award contracts (sec. 803)....   688
            Reports on maturity of technology at initiation of 
              Major Defense Acquisition Programs (sec. 804)......   688
        Subtitle B--Use of Preferred Sources.....................   689
            Applicability of competition requirements to 
              purchases from a required source (sec. 811)........   689
            Extension of mentor-protege program (sec. 812).......   689
            Increase of assistance limitation regarding 
              Procurement Technical Assistance Program (sec. 813)   689
        Subtitle C--Amendments to General Contracting 
          Authorities, Procedures, and Related Matters...........   689
        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. 821)..............   689
            Follow-on production contracts for products developed 
              pursuant to prototype projects (sec. 822)..........   690
            One-year extension of program applying simplified 
              procedures to certain commercial items (sec. 823)..   690
            Acquisition workforce qualifications (sec. 824)......   690
            Report on implementation of recommendations of the 
              Acquisition 2005 Task Force (sec. 825).............   690
        Subtitle D--Other Matters................................   691
            Identification of errors made by executive agencies 
              in payments to contractors and recovery of amounts 
              erroneously paid (sec. 831)........................   691
            Codification and modification of provision of law 
              known as the ``Berry Amendment'' (sec. 832)........   691
            Personal services contracts to be performed by 
              individuals or organizations abroad (sec. 833).....   691
            Requirements regarding insensitive munitions (sec. 
              834)...............................................   691
            Inapplicability of limitation to small purchases of 
              miniature or instrument ball or roller bearings 
              under certain circumstances (sec. 835).............   692
            Temporary emergency procurement authority to 
              facilitate the defense against terrorism or 
              biological or chemical attack (sec. 836)...........   692
    Legislative Provisions Not Adopted...........................   693
            Consolidation of defense contracts...................   693
            HUBzone small business concerns......................   693
            Small business procurement competition...............   693
Title IX--Department of Defense Organization and Management......   693
    Items of Special Interest....................................   693
            Organizational changes to the Office of the Secretary 
              of Defense.........................................   693
    Legislative Provisions Adopted...............................   694
        Subtitle A--Duties and Functions of Department of Defense 
          Officers...............................................   694
            Deputy Under Secretary of Defense for Personnel and 
              Readiness (sec. 901)...............................   694
            Sense of Congress on functions of new Office of Force 
              Transformation in the Office of the Secretary of 
              Defense (sec. 902).................................   694
            Suspension of reorganization of engineering and 
              technical authority policy within the Naval Sea 
              Systems Command pending report to congressional 
              committees (sec. 903)..............................   695
        Subtitle B--Space Activities.............................   695
            Space Activities (secs. 911-915).....................   695
        Subtitle C--Reports......................................   698
            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. 921)..................................   698
            Revised requirements for content of annual report on 
              joint warfighting experimentation (sec. 922).......   699
            Repeal of requirement for one of three remaining 
              required reports on activities of Joint 
              Requirements Oversight Council (sec. 923)..........   699
            Revised joint report on establishment of national 
              collaborative information analysis capability (sec. 
              924)...............................................   699
        Subtitle D--Other Matters................................   700
            Conforming amendments relating to change of name of 
              Military Airlift Command to Air Mobility Command 
              (sec. 931).........................................   700
            Organizational realignment for Navy Director for 
              Expeditionary Warfare (sec. 932)...................   700
    Legislative Provisions Not Adopted...........................   700
            Reductions in acquisition and support workforce......   700
            Responsibility of the Under Secretary of the Air 
              Force for Acquisition of space launch vehicles and 
              space launch services..............................   700
Title X--General Provisions......................................   701
            Counter-Drug Activities..............................   701
            National Guard Counter-drug activities...............   701
            Operation Caper Focus................................   701
            Tethered Aerostat Radar System.......................   701
    Items of Special Interest....................................   701
            Automobile Safety Program............................   701
    Legislative Provisions Adopted...............................   702
        Subtitle A--Financial Matters............................   702
            Transfer authority (sec. 1001).......................   702
            Incorporation of classified annex (sec. 1002)........   702
            Authorization of supplemental appropriations for 
              fiscal year 2001 (sec. 1003).......................   702
            United States contribution to NATO common-funded 
              budgets in fiscal year 2002 (sec. 1004)............   702
            Limitation on funds for Bosnia and Kosovo 
              Peacekeeping Operations for fiscal year 2002 (sec. 
              1005)..............................................   703
            Maximum amount for National Foreign Intelligence 
              Program (sec. 1006)................................   703
            Clarification of applicability of interest penalties 
              for late payment of interim payments due under 
              contracts for services (sec. 1007).................   703
            Reliability of Department of Defense financial 
              statements (sec. 1008).............................   703
            Financial Management Modernization Executive 
              Committee and financial feeder systems compliance 
              process (sec. 1009)................................   704
            Authorization of funds for ballistic missile defense 
              programs or combating terrorism programs of the 
              Department of Defense (sec. 1010)..................   704
        Subtitle B--Naval Vessels and Shipyards..................   704
            Authority to transfer naval vessels to certain 
              foreign countries (sec. 1011)......................   704
            Sale of Glomar Explorer to the lessee (sec. 1012)....   705
            Leasing of Navy ships for Universary National 
              Oceanographic Laboratory System (sec. 1013)........   705
            Increase in limitations on administrative authority 
              of the Navy to settle admiralty claims (sec. 1014).   705
        Subtitle C--Counter-Drug Activities......................   705
            Extension and restatement of authority to provide 
              Department of Defense support for counter-drug 
              activities of other governmental agencies (sec. 
              1021)..............................................   705
            Extension of reporting requirement regarding 
              Department of Defense expenditures to support 
              foreign counter-drug activities (sec. 1022)........   706
            Authority to transfer Tracker aircraft currently used 
              by Armed Forces for counter-drug purposes (sec. 
              1023)..............................................   706
            Limitation on use of funds for operation of Tethered 
              Aerostat Radar System pending submission of 
              required report (sec. 1024)........................   706
        Subtitle D--Strategic Forces.............................   707
            Repeal of limitation on retirement or dismantlement 
              of strategic nuclear delivery systems (sec. 1031)..   707
            Air Force bomber force structure (sec. 1032).........   707
            Additional element for revised nuclear posture review 
              (sec. 1033)........................................   707
            Report on options for modernization and enhancement 
              of missile wing helicopter support (sec. 1034).....   708
        Subtitle E--Other Department of Defense Provisions.......   708
            Secretary of Defense recommendation on need for 
              Department of Defense review of proposed federal 
              agency actions to consider possible impact on 
              national defense (sec. 1041).......................   708
            Department of Defense reports to Congress to be 
              accompanied by electronic version upon request 
              (sec. 1042)........................................   708
            Department of Defense gift authorities (sec. 1043)...   709
            Acceleration of research, development, and production 
              of medical countermeasures for defense against 
              biological warfare agents (sec. 1044)..............   709
            Chemical and biological protective equipment for 
              military personnel and civilian employees of the 
              Department of Defense (sec. 1045)..................   710
            Sale of goods and services by Naval Magazine, Indian 
              Island, Alaska (sec. 1046).........................   710
            Report on procedures and guidelines for embarkation 
              of civilian guests on naval vessels for public 
              affairs purposes (sec. 1047).......................   710
            Technical and clerical amendments (sec. 1048)........   711
            Termination of referendum requirement regarding 
              continuation of military training on the island of 
              Vieques, Puerto Rico, and imposition of additional 
              conditions on closure of training range (sec. 1049)   711
        Subtitle F--Other Matters................................   712
            Assistance for firefighters (sec. 1061)..............   712
            Extension of times for Commission on the Future of 
              the United States Aerospace Industry to report and 
              to terminate (sec. 1062)...........................   712
            Appropriations to Radiation Exposure Compensation 
              Trust Fund (sec. 1063).............................   712
            Waiver of vehicle weight limits during periods of 
              national emergency (sec. 1064).....................   712
            Repair, restoration, and preservation of Lafayette 
              Escadrille Memorial, Marnes-la-Coquette, France 
              (sec. 1065)........................................   713
    Legislative Provisions Not Adopted...........................   713
            Action to promote national defense features program..   713
            Assignment of members to assist border patrol and 
              control............................................   714
            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.............................................   714
            Contingent authorization of appropriations...........   714
            Demilitarization of significant military equipment...   714
            Information and recommendations and congressional 
              reporting requirements applicable to the Department 
              of Defense.........................................   714
            Reductions in authorizations of appropriations for 
              Department of Defense for management efficiencies..   715
            Release of restriction on use of certain vessels 
              previously authorized to be sold...................   715
            Revision in types of excess naval vessels for which 
              approval by law is required for disposal to foreign 
              nations............................................   715
            Revision of annual report to Congress on National 
              Guard and reserve component equipment..............   715
            Sense of the Senate that the Secretary of the 
              Treasury should immediately issue savings bonds, to 
              be designated as ``Unity Bonds''...................   715
            Transfer of Vietnam-era F-4 to non-profit museum.....   716
Title XI--Civilian Personnel.....................................   716
    Legislative Provisions Adopted...............................   716
        Subtitle A--Department of Defense Civilian Personnel.....   716
            Personnel pay and qualifications authority for 
              Department of Defense Pentagon Reservation civilian 
              law enforcement and security force (sec. 1101).....   716
            Pilot program for payment of retraining expenses 
              (sec. 1102)........................................   716
            Authority of civilian employees to act as notaries 
              (sec. 1103)........................................   716
            Authority to appoint certain health care 
              professionals in the excepted service (sec. 1104)..   716
        Subtitle B--Civilian Personnel Management Generally......   717
            Authority to provide hostile fire pay (sec. 1111)....   717
            Payment of expenses to obtain professional 
              credentials (sec. 1112)............................   717
            Parity in establishment of wage schedules and rates 
              for prevailing rate employees (sec. 1113)..........   717
            Modification of limitation on premium pay (sec. 1114)   717
            Participation of personnel in technical standards 
              development activities (sec. 1115).................   718
            Retention of travel promotional items (sec. 1116)....   718
            Applicability of certain laws to certain individuals 
              assigned to work in the Federal Government (sec. 
              1117)..............................................   718
        Subtitle C--Intelligence Civilian Personnel..............   718
            Authority to increase maximum number of positions in 
              the Defense Intelligence Senior Executive Service 
              (sec. 1121)........................................   718
        Subtitle D--Matters Relating to Retirement...............   719
            Improved portability of retirement coverage for 
              employees moving between civil service employment 
              and employment by nonapproporiated fund 
              instrumentalities (sec. 1131)......................   719
            Federal employment retirement credit for 
              nonappropriated fund instrumentality service (sec. 
              1132)..............................................   719
            Modification of limitations on exercise of voluntary 
              separation incentive pay authority and voluntary 
              early retirement authority (sec. 1133).............   719
    Legislative Provisions Not Adopted...........................   719
            Continued applicability of certain civil service 
              protections for employees integrated into the 
              National Imagery and Mapping Agency from the 
              Defense Mapping Agency.............................   719
            Removal of requirement that granting civil service 
              compensatory time be based on amount of irregular 
              or occasional overtime work........................   720
            Undergraduate training program for employees of the 
              National Imagery and Mapping Agency................   720
            Use of common occupational and health standards as a 
              basis for differential payments made as a 
              consequence of exposure to asbestos................   720
Title XII--Matters Relating to Other Nations.....................   720
    Legislative Provisions Adopted...............................   720
        Subtitle A--Matters Related to Arms control and 
          Monitoring.............................................   720
            Clarification of authority to furnish nuclear test 
              monitoring equipment to foreign governments (sec. 
              1201)..............................................   720
            Limitation on funding for Joint Data Exchange Center 
              in Moscow (sec. 1202)..............................   721
            Support of United Nations-sponsored efforts to 
              inspect and monitor Iraqi weapons activities (sec. 
              1203)..............................................   721
            Authority for employees of Federal Government 
              contractors to accompany chemical weapons 
              inspection teams at government-owned facilities 
              (sec. 1204)........................................   721
            Plan for securing nuclear weapons, material, and 
              expertise of the states of the former Soviet Union 
              (sec. 1205)........................................   721
        Subtitle B--Matters Relating to Allies and Friendly 
          Foreign Nations........................................   722
            Acquisition of logistical support for security forces 
              (sec. 1211)........................................   722
            Extension of authority for international cooperative 
              research and development projects (sec. 1212)......   722
            Cooperative agreements with foreign countries and 
              international organizations for reciprocal use of 
              test facilities (sec. 1213)........................   723
            Sense of Congress on allied defense burdensharing 
              (sec. 1214)........................................   723
        Subtitle C--Reports......................................   723
            Report on significant sales and transfers of military 
              hardware, expertise, and technology to the People's 
              Republic of China (sec. 1221)......................   723
            Repeal of requirement for reporting to Congress on 
              military deployments to Haiti (sec. 1222)..........   724
            Report by comptroller General on provision of defense 
              articles, services, and military education and 
              training to foreign countries and international 
              organizations (sec. 1223)..........................   724
    Legislative Provisions Not Adopted...........................   724
            Limitation on number of military personnel in 
              Columbia...........................................   724
Title XIII--Cooperative Threat Reduction With States of the 
  Former Soviet Union............................................   724
    Legislative Provisions Adopted...............................   724
            Specification of Cooperative Threat Reduction 
              programs and funds (sec. 1301).....................   724
            Funding allocations (sec. 1302)......................   725
            Limitation on use of funds until submission of 
              reports (sec. 1303)................................   725
            Requirement to consider use of revenue generated by 
              activities carried out under Cooperative Threat 
              Reduction programs (sec. 1304).....................   725
            Prohibition against use of funds for second wing of 
              fissile material storage facility (sec. 1305)......   725
            Prohibition against use of funds for certain 
              construction activities (sec. 1306)................   726
            Reports on activities and assistance under 
              Cooperative Threat Reduction programs (sec. 1307)..   726
            Chemical weapons destruction (sec. 1308).............   726
            Additional matter in annual report on activities and 
              assistance under Cooperative Threat Reduction 
              programs (sec. 1309)...............................   727
    Legislative Provisions Not Adopted...........................   727
            Report on responsibility for carrying out Cooperative 
              Threat Reduction programs..........................   727
Title XIV--Armed Forces Retirement Home..........................   728
    Legislative Provisions Adopted...............................   728
            Amendment of Armed Forces Retirement Home Act of 1991 
              (sec. 1401)........................................   728
            Definitions (sec. 1402)..............................   728
            Revision of authority establishing the Armed Forces 
              Retirement Home (sec. 1403)........................   728
            Chief Operating Officer (sec. 1404)..................   729
            Residents of Retirement Home (sec. 1405).............   729
            Local boards of trustees (sec. 1406).................   729
            Directors, Deputy Directors, Associate Directors, and 
              staff of facilities (sec. 1407)....................   729
            Disposition of effects of deceased persons and 
              unclaimed property (sec. 1408).....................   729
            Transitional provisions (sec. 1409)..................   729
            Conforming and clerical amendments and repeals of 
              obsolete provisions (sec. 1410)....................   730
    Legislative Provisions Not Adopted...........................   730
            Amendments of other laws.............................   730
Title XV--Activities Relating to Combating Terrorism.............   730
    Legislative Provisions Adopted...............................   730
        Subtitle A--Increased Funding for Combating Terrorism....   730
            Authoriation of emergency appropriations under the 
              2001 Emergency Supplemental Appropriations Act for 
              Recovering From and Response to Terrorist Attacks 
              on the United States. (secs. 1501-1506)............   730
        Subtitle B--Policy Matters Relating to Combating 
          Terrorism..............................................   731
             Study and report on the role of the Department of 
              Defense with respect to homeland security (sec. 
              1511)..............................................   731
            Combating Terrorism Readiness Initiatives Fund for 
              combatant commands (sec. 1512).....................   732
            Conveyances of equipment and related materials loaned 
              to state and local governments as assistance for 
              emergency response to a use of threatened use of a 
              weapon of mass destruction (sec. 1513).............   732
            Two-year extension of the Advisory Panel to Assess 
              Domestic Response Capabilities for Terrorism 
              Involving Weapons of Mass Destruction (sec. 1514)..   732
    Legislative Provisions Not Adopted...........................   733
            Establishment of combating terrorism as a national 
              security mission...................................   733
Title XVI--Uniformed Services Voting.............................   733
    Legislative Provisions Adopted...............................   733
            Sense of Congress regarding the important of voting 
              (sec. 1601)........................................   733
            Voting assistance programs (sec. 1602)...............   733
            Guarantee of residency for military personnel (sec. 
              1603)..............................................   734
            Electronic voting demonstration project (sec. 1604)..   734
            Governors' reports on implementation of 
              recommendations for changes in state law made under 
              Federal Voting Assistance Program (sec. 1605)......   734
            Simplification of voter registration and absentee 
              ballot application procedures for absent uniformed 
              services and overseas voters (sec. 1606)...........   734
            Use of certain Department of Defense facilities as 
              polling places (sec. 1607).........................   735
    Legislative Provisions Not Adopted...........................   735
            Extension of registration and balloting rights for 
              absent uniformed services voters to state and local 
              elections..........................................   735
            Maximization of access of recently separated 
              uniformed service voters to the polls..............   735
            Standard for invalidation of ballots cast by absent 
              uniformed services voters in federal elections.....   735
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATION..................   735
            Overview.............................................   735
            Short title; definition (sec. 2001)..................   758
Title XXI--Army..................................................   758
            Overview.............................................   758
    Items of Special Interest....................................   758
            Renovation of Womack Army Medical Center, Fort Bragg 
              North Carolina.....................................   758
    Legislative Provisions Adopted...............................   759
            Authorized Army Construction and land acquisition 
              projects (sec. 2101)...............................   759
            Family housing (sec. 2102)...........................   759
            Improvements to military family housing units (sec. 
              2103)..............................................   759
            Authorization of appropriations, Army (sec. 2104)....   759
            Modification of authority to carry out certain fiscal 
              year 2001 projects (sec. 2105).....................   759
            Modification of authority to carry out certain fiscal 
              year 2002 projects (sec. 2106).....................   760
Title XXIII--Navy................................................   760
            Overview.............................................   760
    Legislative Provisions Adopted...............................   760
            Authorized Navy construction and land acquisition 
              projects (sec. 2201)...............................   760
            Family housing (sec. 2202)...........................   761
            Improvements to military family housing units (sec. 
              2203)..............................................   761
            Authorization of appropriations, Navy (sec. 2204)....   761
            Modification of authority to carry out certain fiscal 
              year 2001 projects (sec. 2205).....................   761
            Modification of authority to carry out certain fiscal 
              year 2000 project (sec. 2206)......................   762
Title XXIII--Air Force...........................................   762
            Overview.............................................   762
    Legislative Provisions Adopted...............................   762
            Authorized Air Force construction and land 
              acquisition projects (sec. 2301)...................   762
            Family housing (sec. 2302)...........................   763
            Improvements to military family housing units (sec. 
              2303)..............................................   763
            Authorization of appropriations, Air Force (sec. 
              2304)..............................................   763
            Modification of authority to carry out certain fiscal 
              year 2001 projects (sec. 2305).....................   763
Title XXIV--Defense Agencies.....................................   763
            Overview.............................................   763
    Legislative Provisions Adopted...............................   764
            Authorized Defense Agencies construction and land 
              acquisition projects (sec. 2401)...................   764
            Energy conservation projects (sec. 2402).............   764
            Authorization of appropriations, Defense Agencies 
              (sec. 2403)........................................   764
            Cancellation of authority to carry out certain fiscal 
              year 2001 projects (sec. 2404).....................   765
            Modification of authority to carry out certain fiscal 
              year 2000 projects (sec. 2405).....................   765
            Modification of authority to carry out certain fiscal 
              year 1999 project (sec. 2406)......................   766
            Modification of authority to carry out certain fiscal 
              year 1995 project (sec. 2407)......................   766
            Prohibition on expenditures to develop forward 
              operating location on Aruba (sec. 2408)............   766
    Legislative Provisions Not Adopted...........................   766
            Cancellation of authority to carry out additional 
              fiscal year 2001 project...........................   766
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   766
            Overview.............................................   766
    Legislative Provisions Adopted...............................   768
            Authorized NATO construction and land acquisition 
              projects (sec. 2501)...............................   767
            Authorization of appropriations, NATO (sec. 2502)....   767
Title XXVI--Guard and Reserve Facilities.........................   767
            Overview.............................................   767
    Items of Special Interest....................................   767
            Improvement of National Guard infrastructure.........   767
            Planning and design, Army National Guard.............   768
    Legislative Provisions Adopted...............................   768
            Authorized guard and reserve construction and land 
              acquisition projects (sec. 2601)...................   768
Title XXVII--Expiration and Extension of Authorizations..........   768
    Legislative Provisions Adopted...............................   768
            Expiration of authorizations and amounts required to 
              be specified by law (sec. 2701)....................   768
            Extension of authorizations of certain fiscal year 
              1999 projects (sec. 2702)..........................   769
            Extension of authorizations of certain fiscal year 
              1998 projects (sec. 2703)..........................   769
            Effective date (sec. 2704)...........................   769
Title XXVIII--General Provisions.................................   769
    Items of Special Interest....................................   769
            Remediation of former Fort Ord, California...........   769
    Legislative Provisions Adopted...............................   770
        Subtitle A--Military Construction Program and Military 
          Family Housing Changes.................................   770
            Increase in thresholds for certain unspecified minor 
              military construction projects (sec. 2801).........   770
            Exclusion of unforseen environmental hazard 
              remediation from limitation on authorized cost 
              variations (sec. 2802).............................   770
            Repeal of annual reporting requirement on military 
              construction and military family housing activities 
              (sec. 2803)........................................   770
            Funds for housing allowances of members assigned to 
              military family housing under alternative authority 
              for acquisition and improvement of military housing 
              (sec. 2804)........................................   770
            Extension of alternative authority for acquisition 
              and improvement of military housing (sec. 2805)....   771
            Treatment of financing costs as allowable expenses 
              under contracts for utility services from utility 
              systems conveyed under privatization initiative 
              (sec. 2806)........................................   771
        Subtitle B--Real Property and Facilities Administration..   771
            Use of military installations for certain 
              recreational activities (sec. 2811)................   771
            Availability of proceeds of sales of Department of 
              Defense property from certain closed military 
              installations (sec. 2812)..........................   772
            Pilot program to provide additional tools for 
              efficient operation of military installations (sec. 
              2813)..............................................   772
            Demonstration program on reduction in long-term 
              facility maintenance costs (sec. 2814).............   772
            Base efficiency project at Brooks Air Force Base, 
              Texas (sec. 2815)..................................   773
        Subtitle C--Implementation of Prior Base Closure and 
          Realignment Rounds.....................................   773
            Lease back of base closure property (sec. 2821)......   773
        Subtitle D--Land Conveyances.............................   774
        Part I--Army Conveyances.................................   774
            Land conveyance, Whittier-Anchorage Pipeline Tank 
              Farm, Anchorage, Alaska (sec. 2831)................   774
            Lease authority, Fort DeRussy, Hawaii (sec. 2832)....   774
            Modification of land exchange, Rock Island Arsenal, 
              Illinois (sec. 2833)...............................   775
            Land conveyance, Fort Des Moines, Iowa (sec. 2834)...   775
            Modification of land conveyances, Fort Dix, New 
              Jersey (sec. 2835).................................   775
            Land conveyance, Engineer Proving Ground Fort 
              Belvoir, Virginia (sec. 2836)......................   776
            Land exchange and consolidation, Fort Lewis, 
              Washington (sec. 2837).............................   776
            Land conveyance, Army Reserve Center, Kewaunee, 
              Wisconsin (sec. 2838)..............................   776
        Part II--Navy Conveyances................................   777
            Transfer of jurisdiction, Centerville Beach Naval 
              Station, Humbolt County, California (sec. 2841)....   777
            Land conveyance, Port of Long Beach, California (sec. 
              2842)..............................................   777
            Conveyance of Pier, Naval Base, San Diego, California 
              (sec. 2843)........................................   777
            Modification of authority for conveyance of Naval 
              Computer and Telecommunications Station, Cutler, 
              Maine (sec. 2844)..................................   778
            Land transfer and conveyance, Naval Security Group 
              Activity, Winter Harbor, Maine (sec. 2845).........   778
            Land acquisition, Perquimans County, North Carolina 
              (sec. 2846)........................................   778
            Land conveyance, Naval Weapons Industrial Reserve 
              Plant, Toledo, Ohio (sec. 2847)....................   779
            Modification of land conveyance, former United States 
              Marine Corps Air Station, Eagle Mountain Lake, 
              Texas (sec. 2848)..................................   779
        Part III--Air Force Conveyances..........................   779
            Conveyance of avigation easements, former Norton Air 
              Force Base, California (sec. 2851).................   779
            Reexamination of land conveyance, Lowry Air Force 
              Base, Colorado (sec. 2852).........................   780
            Water rights conveyance, Andersen Air Force Base, 
              Guam (sec. 2853)...................................   780
            Conveyance of segment of Loring Petroleum Pipeline, 
              Maine, and related easements (sec. 2854)...........   780
            Land conveyance, petroleum terminal serving former 
              Loring Air Force Base and Bangor Air National Guard 
              Base, Maine (sec. 2855)............................   781
            Land conveyances, certain former Minuteman III ICBM 
              facilities in North Dakota (sec. 2856).............   781
            Land conveyances, Charleston Air Force Base, South 
              Carolina (sec. 2857)...............................   782
            Transfer of jurisdiction, Mukilteo Tank Farm, 
              Everett, Washington (sec. 2858)....................   782
        Subtitle E--Other Matters................................   782
            Management of the Presidio of San Francisco (sec. 
              2861)..............................................   782
            Transfer of jurisdiction for development of Air Force 
              morale, welfare, and recreation facility, Park 
              City, Utah (sec. 2862).............................   782
            Alternative site for United States Air Force 
              Memorial, preservation of open space on Arlington 
              Ridge Tract, and related land transfer at Arlington 
              National Cemetery, Virginia (sec. 2863)............   783
            Establishment of memorial to victims of terrorist 
              attack on Pentagon Reservation and authority to 
              accept monetary contributions for memorial and 
              repair of Pentagon (sec. 2864).....................   785
            Repeal of limitation on cost of renovation of 
              Pentagon Reservation (sec. 2865)...................   785
            Development of United States Army Heritage and 
              Education Center at Carlisle Barracks, Pennsylvania 
              (sec. 2866)........................................   785
            Effect of limitation on construction of roads or 
              highways, Marine Corps Base, Camp Pendleton, 
              California (sec. 2867).............................   786
            Establishment of World War II Memorial at additional 
              location on Guam (sec. 2868).......................   786
            Demonstration project for purchase of fire, security, 
              police, public works, and utility services from 
              local government agencies (sec. 2869)..............   786
            Report on future land needs of United States Military 
              Academy, New York, and adjacent community (sec. 
              2870)..............................................   787
            Naming of Patricia C. Lamar Army National Guard 
              Readiness Center, Oxford, Mississippi (sec. 2871)..   787
    Legislative Provisions Not Adopted...........................   787
            Authority available for lease of property and 
              facilities under alternative authority for 
              acquisition and improvement of military housing....   787
            Land conveyance, Defense Fuel Support Point, Lynn 
              Haven, Florida.....................................   787
            Payment for certain services provided by 
              redevelopment authorities for property leased back 
              by the United States...............................   788
            Treatment of amounts received........................   788
Title XXIX--Fort Irwin Military Land Withdrawal..................   788
            Short title (sec. 2901)..............................   788
            Withdrawal and reservation of lands for National 
              Training Center (sec. 2902)........................   789
            Map and legal description (sec. 2903)................   789
            Management of withdrawn and reserved lands (sec. 
              2904)..............................................   789
            Water rights (sec. 2905).............................   789
            Environmental compliance and environmental response 
              requirements (sec. 2906)...........................   789
            West Mojave Coordinated Management Plan (sec. 2907)..   790
            Release of wilderness study areas (sec. 2908)........   790
            Training activity separation from utility corridors 
              (sec. 2909)........................................   790
            Duration of withdrawal and reservation (sec. 2910)...   790
            Extension of initial withdrawal and reservation (sec. 
              2911)..............................................   790
            Termination and relinquishment (sec. 2912)...........   790
            Delegation of Authority (sec. 2913)..................   791
Title XXX--Realignment and Closure of Military Installations and 
  Preparation of Infrastructure Plan for the Nuclear Weapons 
  Complex........................................................   791
            Procedures for the Department of Defense (secs. 3001-
              3007)..............................................   792
            Preparation of infrastructure plan for the nuclear 
              weapons complex (sec. 3008)........................   793
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS.......................................   794
    Title XXXI--Department of Energy National Security Programs..   794
            Overview.............................................   794
    Legislative Provisions Adopted...............................   812
        Subtitle A--National Security Programs Authorizations....   812
            National Nuclear Security Administration (sec. 3101).   812
            Defense environmental restoration and waste 
              management (sec. 3102).............................   812
            Other defense activities (sec. 3103).................   813
            Defense environmental management privatization (sec. 
              3104)..............................................   813
            Defense nuclear waste disposal (sec. 3105)...........   813
        Subtitle B--Recurring General Provisions.................   814
            Reprogramming (sec. 3121)............................   814
            Limits on minor construction projects (sec. 3122)....   814
            Limits on construction projects (sec. 3123)..........   814
            Fund transfer authority (sec. 3124)..................   815
            Authority for conceptual and construction design 
              (sec. 3125)........................................   815
            Authority for emergency planning, design, and 
              construction activities (sec. 3126)................   815
            Funds available for all national security programs of 
              the Department of Energy (sec. 3127)...............   815
            Availability of funds (sec. 3128)....................   816
            Transfer of defense environmental management funds 
              (sec. 3129)........................................   816
            Transfer of weapons activities funds (sec. 3130).....   816
        Subtitle C--Program Authorizations, Restrictions, and 
          Limitations............................................   816
            Consolidation of Nuclear Cities Initiative program 
              with Initiatives for Proliferation Prevention 
              program (sec. 3131)................................   816
            Nuclear Cities Initiative (sec. 3132)................   817
            Limitation on availability of funds for weapons 
              activities for facilities and infrastructure (sec. 
              3133)..............................................   817
            Limitation on availability of funds for other defense 
              activities for national security programs 
              administrative support (sec. 3134).................   818
            Termination date of Office of River Protection, 
              Richland, Washington (sec. 3135)...................   818
            Support for public education in the vicinity of Los 
              Alamos National Laboratory, New Mexico (sec. 3136).   818
            Reports on achievement of milestones for National 
              Ignition Facility (sec. 3137)......................   819
        Subtitle D--Matters Relating to Management of the 
          National Nuclear Security Administration...............   819
            Establishment of Principal Deputy Administrator of 
              National Nuclear Security Administration (sec. 
              3141)..............................................   819
            Elimination of requirement that national security 
              laboratories and nuclear weapons production 
              facilities report to Deputy Administrator for 
              Defense Programs (sec. 3142).......................   820
            Repeal of duplicative provision relating to dual 
              office holding by personnel of National Nuclear 
              Security Administration (sec. 3143)................   820
            Report on adequacy of federal pay and hiring 
              authorities to meet personnel requirements of 
              National Nuclear Security Administration (sec. 
              3144)..............................................   820
        Subtitle E--Other Matters................................   820
            Improvements to energy employees occupational illness 
              compensation program (sec. 3151)...................   820
            Department of Energy counterintelligence polygraph 
              program (sec. 3152)................................   823
            One-year extension of authority of Department of 
              Energy to pay voluntary separation incentive 
              payments (sec. 3153)...............................   823
            Annual assessment and report on vulnerability of 
              Department of Energy facilities to terrorist attack 
              (sec. 3154)........................................   823
            Disposition of surplus defense plutonium at Savannah 
              River Site, Aiken, South Carolina (sec. 3155)......   823
            Modification of date of report of Panel to Assess the 
              Reliability, Safety, and Security of the United 
              States Nuclear Stockpile (sec. 3156)...............   824
        Subtitle F--Rocky Flats National Wildlife Refuge.........   824
            Rocky Flats National Wildlife Refuge (sec. 3171-3182)   824
    Legislative Provisions Not Adopted...........................   826
            Additional objective for Department of Energy defense 
              nuclear facility workforce restructuring plan......   826
            Clarification of status within the Department of 
              Energy of Administration and contractor personnel 
              of the National Nuclear Security Administration....   826
            Construction of Department of Energy operations 
              office complex.....................................   826
            Improvements to Corral Hollow Road, Livermore, 
              California.........................................   827
            Increased amount for nonproliferation and 
              verification.......................................   827
Title XXXII--Defense Nuclear Facilities Safety Board.............   827
    Legislative Provisions Adopted...............................   827
            Authorization (sec. 3201)............................   827
Title XXXIII--National Defense Stockpile.........................   827
    Legislative Provisions Adopted...............................   827
            Definitions (sec. 3301)..............................   827
            Authorized uses of stockpile funds (sec. 3302).......   827
            Authority to dispose of certain materials in National 
              Defense Stockpile (sec. 3303)......................   828
            Revision of limitations on required disposals of 
              certain materials in National Defense Stockpile 
              (sec. 3304)........................................   828
            Acceleration of required disposal of cobalt in 
              National Defense Stockpile (sec. 3305).............   828
            Restriction on disposal of mangenese ferro (sec. 
              3306)..............................................   828
Title XXXIV--Naval Petroleum Reserves............................   828
    Legislative Provisions Adopted...............................   828
            Authorization of appropriations (sec. 3401)..........   828
Title XXXV--Maritime Administration..............................   829
    Legislative Provisions Adopted...............................   829
            Authorization of appropriations for fiscal year 2002 
              (sec. 3501)........................................   829
            Define ``war risks'' to vessels to include 
              confiscation, expropriation, nationalization, and 
              deprivation of the vessels (sec. 3502).............   829
            Holding obligor's cash as collateral under title XI 
              Merchant Marine act, 1936 (sec. 3503)..............   829
107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-333

======================================================================



 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002

                                _______
                                

               December 12, 2001.--Ordered to be printed

                                _______
                                

  Mr. Stump, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany S. 1438]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendment of the House to the bill (S. 1438), 
to authorize appropriations for fiscal year 2002 for military 
activities of the Department of Defense, for military 
construction, and for defense activities of the Department of 
Energy, to prescribe personnel strengths for such fiscal year 
for the Armed Forces, and for other purposes, having met, after 
full and free conference, have agreed to recommend and do 
recommend to their respective Houses as follows:
    That the Senate recede from its disagreement to the 
amendment of the House and agree to the same with an amendment 
as follows:
    In lieu of the matter proposed to be inserted by the House 
amendment, insert the following:

SECTION 1. SHORT TITLE.

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

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

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

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Ballistic Missile Defense

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

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

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

                        Subtitle E--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

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

                 Subtitle D--Workforce and Depot Issues

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

                Subtitle E--Defense Dependents Education

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

                        Subtitle F--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

        Subtitle C--Other Matters Relating to Personnel Strengths

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

               Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

             Subtitle B--Reserve Component Personnel Policy

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

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

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

               Subtitle D--Military Education and Training

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

              Subtitle E--Recruiting and Accession Programs

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

       Subtitle F--Decorations, Awards, and Posthumous Commissions

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

                     Subtitle G--Funeral Honors Duty

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

             Subtitle H--Military Spouses and Family Members

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

        Subtitle I--Military Justice and Legal Assistance Matters

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

                        Subtitle J--Other Matters

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

           Subtitle D--Retirement and Survivor Benefit Matters

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

                        Subtitle E--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

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

                     Subtitle B--Senior Health Care

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

                     Subtitle C--Studies and Reports

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

                        Subtitle D--Other Matters

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

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

          Subtitle A--Procurement Management and Administration

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

                  Subtitle B--Use of Preferred Sources

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

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

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

                        Subtitle D--Other Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

                      Subtitle B--Space Activities

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

                           Subtitle C--Reports

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

                        Subtitle D--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

                   Subtitle C--Counter-Drug Activities

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

                      Subtitle D--Strategic Forces

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

           Subtitle E--Other Department of Defense Provisions

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

                        Subtitle F--Other Matters

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

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

          Subtitle A--Department of Defense Civilian Personnel

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

           Subtitle B--Civilian Personnel Management Generally

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

               Subtitle C--Intelligence Civilian Personnel

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

               Subtitle D--Matters Relating To Retirement

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

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

       Subtitle A--Matters Related to Arms Control and Monitoring

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

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

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

                           Subtitle C--Reports

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

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

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

                 TITLE XIV--ARMED FORCES RETIREMENT HOME

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

          TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM

          Subtitle A--Increased Funding for Combating Terrorism

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

       Subtitle B--Policy Matters Relating to Combating Terrorism

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

                  TITLE XVI--UNIFORMED SERVICES VOTING

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title; definition.

                             TITLE XXI--ARMY

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

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

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

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

                TITLE XXVI--GUARD AND RESERVE FACILITIES

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

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

         Subtitle B--Real Property and Facilities Administration

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

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

Sec. 2821. Lease back of base closure property.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                        Subtitle E--Other Matters

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

             TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL

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

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

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

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

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

    Subtitle C--Program Authorizations, Restrictions, and Limitations

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

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

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

                        Subtitle E--Other Matters

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

            Subtitle F--Rocky Flats National Wildlife Refuge

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT



               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

SEC. 105. DEFENSE INSPECTOR GENERAL.

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

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

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

SEC. 107. DEFENSE HEALTH PROGRAM.

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

                       Subtitle B--Army Programs

SEC. 111. REPEAL OF LIMITATIONS ON BUNKER DEFEAT MUNITIONS PROGRAM.

    Section 116 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2682) is 
repealed.

SEC. 112. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES 
                    AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES 
                    WITHOUT REGARD TO AVAILABILITY FROM DOMESTIC 
                    SOURCES.

    Section 141(a) of the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 4543 note) 
is amended--
            (1) by striking ``through 2001'' and inserting 
        ``through 2002''; and
            (2) by inserting before the period at the end the 
        following: ``, except that during fiscal year 2002 the 
        Secretary may only use articles manufactured at, and 
        services provided by, not more than one Army industrial 
        facility''.

SEC. 113. LIMITATIONS ON ACQUISITION OF INTERIM ARMORED VEHICLES AND 
                    DEPLOYMENT OF INTERIM BRIGADE COMBAT TEAMS.

    Section 113 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-23) is amended--
            (1) by redesignating subsection (f) as subsection 
        (j); and
            (2) by inserting after subsection (e) the following 
        new subsections:
    ``(f) Waiver of Comparison Requirement.--The Secretary of 
Defense may waive subsections (c) and (e)(1) and submit to the 
congressional defense committees a certification under 
subsection (e)(2) without regard to the requirement in that 
subsection for the completion of a comparison of costs and 
operational effectiveness if the Secretary includes in the 
submittal a certification of each of the following:
            ``(1) That the results of executed tests and 
        existing analyses are sufficient for making a 
        meaningful comparison of the costs and operational 
        effectiveness of the interim armored vehicles referred 
        to in subparagraph (A) of subsection (c)(1) and the 
        medium armored vehicles referred to in subparagraph (B) 
        of such subsection.
            ``(2) That the conduct of a comparative evaluation 
        of those vehicles in a realistic field environment 
        would provide no significant additional data relevant 
        to that comparison.
            ``(3) That the Secretary has evaluated the existing 
        data on cost and operational effectiveness of those 
        vehicles and, taking that data into consideration, 
        approves the obligation of funds for the acquisition of 
        additional interim armored vehicles.
            ``(4) That sufficient resources will be requested 
        in the future-years defense program to fully fund the 
        Army's requirements for interim brigade combat teams.
            ``(5) That the force structure resulting from the 
        establishment of the interim brigade combat teams and 
        the subsequent achievement of operational capability by 
        those teams will not diminish the combat power of the 
        Army.
    ``(g) Experimentation Program.--The Secretary of the Army 
shall develop and provide resources for an experimentation 
program that will--
            ``(1) provide information as to the design of the 
        objective force; and
            ``(2) include a formal linkage of the interim 
        brigade combat teams to that experimentation.
    ``(h) Operational Evaluation.--(1) The Secretary of the 
Army shall conduct an operational evaluation of the initial 
interim brigade combat team. The evaluation shall include 
deployment of the team to the evaluation site and team 
execution of combat missions across the full spectrum of 
potential threats and operational scenarios.
    ``(2) The operational evaluation under paragraph (1) may 
not be conducted until the plan for such evaluation is approved 
by the Director of Operational Test and Evaluation of the 
Department of Defense.
    ``(i) Limitation on Procurement of Interim Armored Vehicles 
and Deployment of IBCTs.--(1) The actions described in 
paragraph (2) may not be taken until the date that is 30 days 
after the date on which the Secretary of Defense--
            ``(A) submits to Congress a report on the 
        operational evaluation carried out under subsection 
        (h); and
            ``(B) certifies to Congress that the results of 
        that operational evaluation indicate that the design 
        for the interim brigade combat team is operationally 
        effective and operationally suitable.
    ``(2) The limitation in paragraph (1) applies to the 
following actions:
            ``(A) Procurement of interim armored vehicles in 
        addition to those necessary for equipping the first 
        three interim brigade combat teams.
            ``(B) Deployment of any interim brigade combat team 
        outside the United States.
    ``(3) The Secretary of Defense may waive the applicability 
of paragraph (1) to a deployment described in paragraph (2)(B) 
if the Secretary--
            ``(A) determines that the deployment is in the 
        national security interests of the United States; and
            ``(B) submits to Congress, in writing, a 
        notification of the waiver together with a discussion 
        of the reasons for the waiver.''.

                       Subtitle C--Navy Programs

SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.

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

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

    (a) Multiyear Authority.--Beginning with the 2002 program 
year, the Secretary of the Navy may, in accordance with section 
2306b of title 10, United States Code, enter into a multiyear 
contract for the procurement of engines for F/A-18E/F aircraft.
    (b) Required Certifications.--In the case of a contract 
authorized by subsection (a) of this section, a certification 
under subsection (i)(1)(A) of section 2306b of title 10, United 
States Code, with respect to that contract may only be 
submitted if the certification includes an additional 
certification that each of the conditions specified in 
subsection (a) of that section has been satisfied with respect 
to that contract.
    (c) Congressional Notice-and-Wait Period.--Upon 
transmission to Congress of a certification referred to in 
subsection (b) with respect to a contract authorized by 
subsection (a), the contract may then be entered into only 
after a period of 30 days has elapsed after the date of the 
transmission of such certification.

SEC. 123. V-22 OSPREY AIRCRAFT PROGRAM.

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

SEC. 124. REPORT ON STATUS OF V-22 OSPREY AIRCRAFT BEFORE RESUMPTION OF 
                    FLIGHT TESTING.

    Not later than 30 days before the resumption of flight 
testing of the V-22 Osprey aircraft, the Secretary of Defense 
shall submit to Congress a report containing the following:
            (1) A comprehensive description of the status of 
        the hydraulics system and flight control software of 
        the V-22 Osprey aircraft, including--
                    (A) a description and analysis of any 
                deficiencies in the hydraulics system and 
                flight control software of the V-22 Osprey 
                aircraft; and
                    (B) a description and assessment of the 
                actions taken to redress each such deficiency.
            (2) A description of the current actions, and any 
        proposed actions, of the Department of Defense to 
        implement the recommendations of the panel appointed by 
        the Secretary of Defense on January 5, 2001, to review 
        the V-22 aircraft program.
            (3) An assessment of the recommendations of the 
        National Aeronautics and Space Administration on 
        tiltrotor aeromechanics provided in a briefing to the 
        Undersecretary of Defense for Acquisition, Logistics, 
        and Technology on August 14, 2001.
            (4) Notice of the waiver, if any, of any item 
        capability or any other requirement specified in the 
        Joint Operational Requirements Document for the V-22 
        Osprey aircraft, including a justification of each such 
        waiver.

                     Subtitle D--Air Force Programs

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

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Ballistic Missile Defense

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

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

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

                        Subtitle E--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 2002.--Of the amounts authorized to be 
appropriated by section 201, $5,070,605,000 shall be available 
for basic research and applied research projects.
    (b) Basic Research and Applied Research Defined.--For 
purposes of this section, the term ``basic research and applied 
research'' means work funded in program elements for defense 
research and development under Department of Defense category 
6.1 or 6.2.

SEC. 203. SUPPLEMENTAL AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
                    2001 FOR RESEARCH, DEVELOPMENT, TEST, AND 
                    EVALUATION, DEFENSE-WIDE.

    In addition to the funds authorized to be appropriated 
under section 201(4) of Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-32), there is hereby 
authorized to be appropriated $1,000,000 for fiscal year 2001 
for the use of the Department of Defense for research, 
development, test, and evaluation, for Defense-wide activities.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. NAVAL SURFACE FIRE SUPPORT ASSESSMENT.

    (a) Assessment Required.--The Secretary of Defense shall 
carry out an assessment of the requirements for naval surface 
fire support of ground forces operating in the littoral 
environment, including the role of an advanced fire support 
missile system for Navy combatant vessels. The matters assessed 
shall include the Secretary of the Navy's program plan, 
schedule, and funding for meeting such requirements.
    (b) Report.--Not later than March 31, 2002, the Secretary 
of Defense shall submit to the congressional defense committees 
a report containing the results of the assessment required by 
subsection (a).

SEC. 212. COLLABORATIVE PROGRAM FOR DEVELOPMENT OF ADVANCED RADAR 
                    SYSTEMS.

    (a) Program Required.--The Secretary of Defense shall carry 
out a program to develop and demonstrate advanced technologies 
and concepts leading to advanced radar systems for naval and 
other applications.
    (b) Description of Program.--The program under subsection 
(a) shall be carried out collaboratively by the Director of 
Defense Research and Engineering, the Secretary of the Navy, 
the Director of the Defense Advanced Research Projects Agency, 
and other appropriate elements of the Department of Defense. 
The program shall include the following activities:
            (1) Activities needed for development and 
        maturation of the technologies for advanced electronics 
        materials to extend the range and sensitivity of 
        radars.
            (2) Identification of acquisition systems for use 
        of the new technology.
    (c) Report.--Not later than March 31, 2002, the Director of 
Defense Research and Engineering shall submit to the 
congressional defense committees a report on the implementation 
of the program under subsection (a). The report shall include 
the following:
            (1) A description of the management plan for the 
        program and any agreements relating to that plan.
            (2) A schedule for the program.
            (3) Identification of the funding required for 
        fiscal year 2003 and for the future-years defense 
        program to carry out the program.
            (4) A list of program capability goals and 
        objectives.

SEC. 213. REPEAL OF LIMITATIONS ON TOTAL COST OF ENGINEERING AND 
                    MANUFACTURING DEVELOPMENT FOR F-22 AIRCRAFT 
                    PROGRAM.

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

SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.

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

SEC. 215. COOPERATIVE DEPARTMENT OF DEFENSE-DEPARTMENT OF VETERANS 
                    AFFAIRS MEDICAL RESEARCH PROGRAM.

    Of the funds authorized to be appropriated by section 
201(4), $2,500,000 shall be available for the cooperative 
Department of Defense/Department of Veterans Affairs medical 
research program. The Secretary of Defense shall transfer such 
amount to the Secretary of Veterans Affairs for such purpose 
not later than 30 days after the date of the enactment of this 
Act.

SEC. 216. C-5 AIRCRAFT RELIABILITY ENHANCEMENT AND REENGINING PROGRAM.

    (a) Kit Development.--The Secretary of the Air Force shall 
ensure that engineering manufacturing and development under the 
C-5 aircraft reliability enhancement and reengining program 
includes kit development for at least one C-5A aircraft.
    (b) Aircraft To Be Used for Kit Development.--The C-5A 
aircraft to be used for purposes of the kit development under 
subsection (a) shall be an aircraft from among the 74 C-5A 
aircraft of the Air Force.

                 Subtitle C--Ballistic Missile Defense

SEC. 231. TRANSFER OF RESPONSIBILITY FOR PROCUREMENT FOR MISSILE 
                    DEFENSE PROGRAMS FROM BALLISTIC MISSILE DEFENSE 
                    ORGANIZATION TO MILITARY DEPARTMENTS.

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

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

    (2) The item relating to that section in the table of 
sections at the beginning of chapter 9 of such title is amended 
to read as follows:

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

SEC. 232. PROGRAM ELEMENTS FOR BALLISTIC MISSILE DEFENSE ORGANIZATION.

    (a) Revision in Program Elements.--Subsection (a) of 
section 223 of title 10, United States Code, is amended--
            (1) by striking ``in accordance with the following 
        program elements:'' and inserting ``in accordance with 
        program elements governing functional areas as 
        follows:''; and
            (2) by striking paragraphs (1) through (12) and 
        inserting the following:
            ``(1) Technology.
            ``(2) Ballistic Missile Defense System.
            ``(3) Terminal Defense Segment.
            ``(4) Midcourse Defense Segment.
            ``(5) Boost Defense Segment.
            ``(6) Sensors Segment.''.
    (b) Additional Requirements.--Subsection (b) of such 
section is amended to read as follows:
    ``(b) Separate Program Elements for Programs Entering 
Engineering and Manufacturing Development.--(1) The Secretary 
of Defense shall ensure that each ballistic missile defense 
program that enters engineering and manufacturing development 
is assigned a separate, dedicated program element.
    ``(2) In this subsection, the term `engineering and 
manufacturing development' means the development phase whose 
primary objectives are to--
            ``(A) translate the most promising design approach 
        into a stable, interoperable, producible, supportable, 
        and cost-effective design;
            ``(B) validate the manufacturing or production 
        process; and
            ``(C) demonstrate system capabilities through 
        testing.''.
    (c) Requirement for Annual Program Goals.--(1) The 
Secretary of Defense shall each year establish cost, schedule, 
testing, and performance goals for the ballistic missile 
defense programs of the Department of Defense for the period 
covered by the future-years defense program that is submitted 
to Congress that year under section 221 of title 10, United 
States Code. Not later than February 1 each year, the Secretary 
shall submit to the congressional defense committees a 
statement of the goals so established.
    (2) The statement of goals submitted under paragraph (1) 
for any year after 2002 shall be an update of the statement 
submitted under that paragraph for the preceding year.
    (3) Each statement of goals submitted under paragraph (1) 
shall set forth cost, schedule, testing, and performance goals 
that pertain to each functional area program element identified 
in subsection (a), and each program element identified in 
subsection (b), of section 223 of title 10, United States Code.
    (d) Annual Program Plan.--(1) With the submission of the 
statement of goals under subsection (c) for any year, the 
Secretary of Defense shall submit to the congressional defense 
committees a program of activities planned to be carried out 
for each missile defense program that enters engineering and 
manufacturing development (as defined in section 223(b)(2) of 
title 10, United States Code, as added by subsection (b)).
    (2) Each program plan under paragraph (1) shall include the 
following:
            (A) A funding profile that includes an estimate 
        of--
                    (i) the total expenditures to be made in 
                the fiscal year in which the plan is submitted 
                and the following fiscal year, together with 
                the estimated total life-cycle costs of the 
                program; and
                    (ii) a display of such expenditures (shown 
                for significant procurement, construction, and 
                research and development) for the fiscal year 
                in which the plan is submitted and the 
                following fiscal year.
            (B) A program schedule for the fiscal year in which 
        the plan is submitted and the following fiscal year for 
        each of the following:
                    (i) Significant procurement.
                    (ii) Construction.
                    (iii) Research and development.
                    (iv) Flight tests.
                    (v) Other significant testing activities.
    (3) Information specified in paragraph (2) need not be 
included in the plan for any year under paragraph (1) to the 
extent such information has already been provided, or will be 
provided in the current fiscal year, in annual budget 
justification documents of the Department of Defense submitted 
to Congress or in other required reports to Congress.
    (e) Internal DOD Reviews.--(1) The officials and elements 
of the Department of Defense specified in paragraph (2) shall 
on an ongoing basis--
            (A) review the development of goals under 
        subsection (c) and the annual program plan under 
        subsection (d); and
            (B) provide to the Secretary of Defense and the 
        Director of the Ballistic Missile Defense Organization 
        any comments on such matters as considered appropriate.
    (2) Paragraph (1) applies with respect to the following:
            (A) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
            (B) The Director of Operational Test and 
        Evaluation.
            (C) The Director of Program Analysis and 
        Evaluation.
            (D) The Joint Requirements Oversight Council.
            (E) The Cost Analysis and Improvement Group.
    (f) Demonstration of Critical Technologies.--(1) The 
Director of the Ballistic Missile Defense Organization shall 
develop a plan for ensuring that each critical technology for a 
missile defense program is successfully demonstrated in an 
appropriate environment before that technology enters into 
operational service as part of a missile defense program.
    (2) The Director of Operational Test and Evaluation of the 
Department of Defense shall monitor the development of the plan 
under paragraph (1) and shall submit to the Director of the 
Ballistic Missile Defense Organization any comments regarding 
that plan that the Director of Operational Test and Evaluation 
considers appropriate.
    (g) Comptroller General Assessment.--(1) At the conclusion 
of each of fiscal years 2002 and 2003, the Comptroller General 
of the United States shall assess the extent to which the 
Ballistic Missile Defense Organization achieved the goals 
established under subsection (c) for such fiscal year.
    (2) Not later than February 15, 2003, and February 15, 
2004, the Comptroller General shall submit to the congressional 
defense committees a report on the Comptroller General's 
assessment under paragraph (1) with respect to the preceding 
fiscal year.
    (h) Annual OT&E Assessment of Test Program.--(1) The 
Director of Operational Test and Evaluation shall each year 
assess the adequacy and sufficiency of the Ballistic Missile 
Defense Organization test program during the preceding fiscal 
year.
    (2) Not later than February 15 each year the Director shall 
submit to the congressional defense committees a report on the 
assessment under paragraph (1) with respect to the preceding 
fiscal year.

SEC. 233. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF THE 
                    DEPARTMENT OF DEFENSE BY THE NATIONAL DEFENSE 
                    LABORATORIES OF THE DEPARTMENT OF ENERGY.

    (a) Funds To Carry Out Certain Ballistic Missile Defense 
Activities.--Of the amounts authorized to be appropriated to 
the Department of Defense pursuant to section 201(4), 
$25,000,000 shall be available, subject to subsection (b) and 
at the discretion of the Director of the Ballistic Missile 
Defense Organization, for research, development, and 
demonstration activities at the national laboratories of the 
Department of Energy in support of the missions of the 
Ballistic Missile Defense Organization, including the following 
activities:
            (1) Technology development, concept demonstration, 
        and integrated testing to enhance performance, reduce 
        risk, and improve reliability in hit-to-kill 
        interceptors for ballistic missile defense.
            (2) Support for science and engineering teams to 
        assess critical technical problems and prudent 
        alternative approaches as agreed upon by the Director 
        of the Ballistic Missile Defense Organization and the 
        Administrator for Nuclear Security.
    (b) Requirement for Matching Funds From NNSA.--Funds shall 
be available as provided in subsection (a) only if the 
Administrator for Nuclear Security makes available matching 
funds for the activities referred to in subsection (a).
    (c) Memorandum of Understanding.--The activities referred 
to in subsection (a) shall be carried out under the memorandum 
of understanding entered into by the Secretary of Energy and 
the Secretary of Defense for the use of national laboratories 
for ballistic missile defense programs, as required by section 
3131 of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85; 111 Stat. 2034) and modified pursuant 
to section 3132 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-455) to provide for jointly 
funded projects.

SEC. 234. MISSILE DEFENSE TESTING INITIATIVE.

    (a) Testing Infrastructure.--(1) The Secretary of Defense 
shall ensure that each annual budget request of the Department 
of Defense--
            (A) is designed to provide for comprehensive 
        testing of ballistic missile defense programs during 
        early stages of development; and
            (B) includes necessary funding to support and 
        improve test infrastructure and provide adequate test 
        assets for the testing of such programs.
    (2) The Secretary shall ensure that ballistic missile 
defense programs incorporate, to the greatest possible extent, 
operationally realistic test configurations (referred to as 
``test bed'' configurations) to demonstrate system performance 
across a broad range of capability and, during final stages of 
operational testing, to demonstrate reliable performance.
    (3) The Secretary shall ensure that the test infrastructure 
for ballistic missile defense programs is capable of supporting 
continued testing of ballistic missile defense systems after 
deployment.
    (b) Requirements for Early Stages of System Development.--
In order to demonstrate acceptable risk and developmental 
stability, the Secretary of Defense shall ensure that any 
ballistic missile defense program incorporates, to the maximum 
extent practicable, the following elements during the early 
stages of system development:
            (1) Pursuit of parallel conceptual approaches and 
        technological paths for all critical problematic 
        components until effective and reliable solutions can 
        be demonstrated.
            (2) Comprehensive ground testing in conjunction 
        with flight-testing for key elements of the proposed 
        system that are considered to present high risk, with 
        such ground testing to make use of existing facilities 
        and combinations of facilities that support testing at 
        the highest possible levels of integration.
            (3) Where appropriate, expenditures to enhance the 
        capabilities of existing test facilities, or to 
        construct new test facilities, to support alternative 
        complementary test methodologies.
            (4) Sufficient funding of test instrumentation to 
        ensure accurate measurement of all critical test 
        events.
            (5) Incorporation into the program of sufficient 
        schedule flexibility and expendable test assets, 
        including missile interceptors and targets, to ensure 
        that failed or aborted tests can be repeated in a 
        prudent, but expeditious manner.
            (6) Incorporation into flight-test planning for the 
        program, where possible, of--
                    (A) methods that make the most cost-
                effective use of test opportunities;
                    (B) events to demonstrate engagement of 
                multiple targets, ``shoot-look-shoot'', and 
                other planned operational concepts; and
                    (C) exploitation of opportunities to 
                facilitate early development and demonstration 
                of ``family of systems'' concepts.
    (c) Specific Requirements for Ground-Based Mid-Course 
Interceptor Systems.--For ground-based mid-course interceptor 
systems, the Secretary of Defense shall initiate steps during 
fiscal year 2002 to establish a flight-test capability of 
launching not less than three missile defense interceptors and 
not less than two ballistic missile targets to provide a 
realistic test infrastructure.

SEC. 235. CONSTRUCTION OF TEST BED FACILITIES FOR MISSILE DEFENSE 
                    SYSTEM.

    (a) Authority To Acquire or Construct Facilities.--(1) The 
Secretary of Defense, using funds appropriated to the 
Department of Defense for research, development, test, and 
evaluation for fiscal years after fiscal year 2001 that are 
available for programs of the Ballistic Missile Defense 
Organization, may carry out all construction projects, or 
portions of construction projects, including projects for the 
acquisition, improvement, or construction of facilities, 
necessary to establish and operate the Missile Defense System 
Test Bed.
    (2) The authority provided in subsection (a) may be used to 
acquire, improve, or construct facilities at a total cost not 
to exceed $500,000,000.
    (b) Authority To Provide Assistance to Local Communities.--
(1) Subject to paragraph (2), the Secretary of Defense, using 
funds appropriated to the Department of Defense for research, 
development, test, and evaluation for fiscal year 2002 that are 
available for programs of the Ballistic Missile Defense 
Organization, may provide assistance to local communities to 
meet the need for increased municipal or community services or 
facilities resulting from the construction, installation, or 
operation of the Missile Defense System Test Bed Facilities. 
Such assistance may be provided by grant or otherwise.
    (2) Assistance may be provided to a community under 
paragraph (1) only if the Secretary of Defense determines that 
there is an immediate and substantial increase in the need for 
municipal or community services or facilities as a direct 
result of the construction, installation, or operation of the 
Missile Defense System Test Bed Facilities.

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

SEC. 251. SHORT TITLE.

    This subtitle may be cited as the ``Air Force Science and 
Technology for the 21st Century Act''.

SEC. 252. SCIENCE AND TECHNOLOGY INVESTMENT AND DEVELOPMENT PLANNING.

    (a) Sense of Congress.--It is the sense of Congress that 
the Secretary of the Air Force should carry out each of the 
following:
            (1) Continue and improve efforts to ensure that--
                    (A) the Air Force science and technology 
                community is represented, and the 
                recommendations of that community are 
                considered, at all levels of program planning 
                and budgetary decisionmaking within the Air 
                Force;
                    (B) advocacy for science and technology 
                development is institutionalized across all 
                levels of Air Force management in a manner that 
                is not dependent on individuals; and
                    (C) the value of Air Force science and 
                technology development is made increasingly 
                apparent to the warfighters, by linking the 
                needs of those warfighters with decisions on 
                science and technology development.
            (2) Complete and adopt a policy directive that 
        provides for changes in how the Air Force makes 
        budgetary and nonbudgetary decisions with respect to 
        its science and technology development programs and how 
        it carries out those programs.
            (3) At least once every five years, conduct a 
        review of the long-term challenges and short-term 
        objectives of the Air Force science and technology 
        programs that is consistent with the review specified 
        in section 252 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted into 
        law by Public Law 106-398; 114 Stat. 1654A-46).
            (4) Ensure that development and science and 
        technology planning and investment activities are 
        carried out for future space warfighting systems and 
        for future nonspace warfighting systems in an 
        integrated manner.
            (5) Elevate the position within the Office of the 
        Secretary of the Air Force that has primary 
        responsibility for budget and policy decisions for 
        science and technology programs.
    (b) Reinstatement of Development Planning.--(1) The 
Secretary of the Air Force shall reinstate and implement a 
revised development planning process that provides for each of 
the following:
            (A) Coordinating the needs of Air Force warfighters 
        with decisions on science and technology development.
            (B) Giving input into the establishment of 
        priorities among science and technology programs.
            (C) Analyzing Air Force capability options for the 
        allocation of Air Force resources.
            (D) Developing concepts for technology, warfighting 
        systems, and operations with which the Air Force can 
        achieve its critical future goals.
            (E) Evaluating concepts for systems and operations 
        that leverage technology across Air Force 
        organizational boundaries.
            (F) Ensuring that a ``system-of-systems'' approach 
        is used in carrying out the various Air Force 
        capability planning exercises.
            (G) Utilizing existing analysis capabilities within 
        the Air Force product centers in a collaborative and 
        integrated manner.
    (2) Not later than one year after the date of the enactment 
of this Act, the Secretary of the Air Force shall submit to 
Congress a report on the implementation of the planning process 
required by paragraph (1). The report shall include the annual 
amount that the Secretary considers necessary to carry out 
paragraph (1).

SEC. 253. STUDY AND REPORT ON EFFECTIVENESS OF AIR FORCE SCIENCE AND 
                    TECHNOLOGY PROGRAM CHANGES.

    (a) Requirement.--The Secretary of the Air Force, in 
cooperation with the National Research Council of the National 
Academy of Sciences, shall carry out a study to determine how 
the changes to the Air Force science and technology program 
implemented during the past two years affect the future 
capabilities of the Air Force.
    (b) Matters Studied.--(1) The study shall review and assess 
whether such changes as a whole are sufficient to ensure the 
following:
            (A) That the concerns about the management of the 
        science and technology program that have been raised by 
        Congress, the Defense Science Board, the Air Force 
        Science Advisory Board, and the Air Force Association 
        have been adequately addressed.
            (B) That appropriate and sufficient technology is 
        available to ensure the military superiority of the 
        United States and counter future high-risk threats.
            (C) That the science and technology investments are 
        balanced to meet the near-, mid-, and long-term needs 
        of the Air Force.
            (D) That technologies are made available that can 
        be used to respond flexibly and quickly to a wide range 
        of future threats.
            (E) That the Air Force organizational structure 
        provides for a sufficiently senior level advocate of 
        science and technology to ensure an ongoing, effective 
        presence of the science and technology community during 
        the budget and planning process.
    (2) In addition, the study shall assess the specific 
changes to the Air Force science and technology program as 
follows:
            (A) Whether the biannual science and technology 
        summits provide sufficient visibility into, and 
        understanding and appreciation of, the value of the 
        science and technology program to the senior level of 
        Air Force budget and policy decisionmakers.
            (B) Whether the applied technology councils are 
        effective in contributing the input of all levels 
        beneath the senior leadership into the coordination, 
        focus, and content of the science and technology 
        program.
            (C) Whether the designation of the commander of the 
        Air Force Materiel Command as the science and 
        technology budget advocate is effective to ensure that 
        an adequate Air Force science and technology budget is 
        requested.
            (D) Whether the revised development planning 
        process is effective to aid in the coordination of the 
        needs of the Air Force warfighters with decisions on 
        science and technology investments and the 
        establishment of priorities among different science and 
        technology programs.
            (E) Whether the implementation of section 252 of 
        the Floyd D. Spence National Defense Authorization Act 
        for Fiscal Year 2001 (as enacted into law by Public Law 
        106-398; 114 Stat. 1654A-46) is effective to identify 
        the basis for the appropriate science and technology 
        program funding level and investment portfolio.
    (c) Report.--Not later than May 1, 2003, the Secretary of 
the Air Force shall submit to Congress the results of the 
study.

                       Subtitle E--Other Matters

SEC. 261. ESTABLISHMENT OF UNMANNED AERIAL VEHICLE JOINT OPERATIONAL 
                    TEST BED SYSTEM.

    (a) Establishment of Test Bed System.--The commander of the 
United States Joint Forces Command shall establish a government 
flight activity capability (referred to as a ``test bed'') 
within the facilities and resources of that command to evaluate 
and ensure joint interoperability of unmanned aerial vehicle 
systems. That capability shall be independent of the military 
departments and shall be managed directly by the Joint Forces 
Command.
    (b) Priority for Use of Predator Assets.--The Secretary of 
the Navy shall ensure that the commander of the United States 
Joint Forces Command controls the priority for use of the two 
Predator unmanned aerial vehicles currently undergoing 
operational testing by the Navy, together with associated 
payloads and antennas and the associated tactical control 
system (TCS) ground station.
    (c) Use by Joint Forces Command.--The items specified to in 
subsection (b) may be used by the commander of the United 
States Joint Forces Command only through the independent joint 
operational test bed system established pursuant to subsection 
(a) for testing of those items, including further development 
of the associated tactical control system (TCS) ground station, 
other aspects of unmanned aerial vehicle interoperability, and 
participation in such experiments and exercises as the 
commander considers appropriate to the mission of that command.

SEC. 262. DEMONSTRATION PROJECT TO INCREASE SMALL BUSINESS AND 
                    UNIVERSITY PARTICIPATION IN OFFICE OF NAVAL 
                    RESEARCH EFFORTS TO EXTEND BENEFITS OF SCIENCE AND 
                    TECHNOLOGY RESEARCH TO FLEET.

    (a) Project Required.--The Secretary of the Navy, acting 
through the Chief of Naval Research, shall carry out a 
demonstration project to increase access to Navy facilities of 
small businesses and universities that are engaged in science 
and technology research beneficial to the fleet.
    (b) Project Elements.--In carrying out the demonstration 
project, the Secretary shall--
            (1) establish and operate a Navy Technology 
        Extension Center at a location to be selected by the 
        Secretary;
            (2) permit participants in the Small Business 
        Innovation Research Program (SBIR) and Small Business 
        Technology Transfer Program (STTR) that are awarded 
        contracts by the Office of Naval Research to access and 
        use Navy Major Range Test Facilities Base (MRTFB) 
        facilities selected by the Secretary for purposes of 
        carrying out such contracts, and charge such 
        participants for such access and use at the same 
        established rates that Department of Defense customers 
        are charged; and
            (3) permit universities, institutions of higher 
        learning, and federally funded research and development 
        centers collaborating with participants referred to in 
        paragraph (2) to access and use such facilities for 
        such purposes, and charge such entities for such access 
        and use at such rates.
    (c) Period of Project.--The demonstration project shall be 
carried out during the three-year period beginning on the date 
of the enactment of this Act.
    (d) Report.--Not later than February 1, 2004, the Secretary 
shall submit to Congress a report on the demonstration project. 
The report shall include a description of the activities 
carried out under the demonstration project and any 
recommendations for the improvement or expansion of the 
demonstration project that the Secretary considers appropriate.

SEC. 263. COMMUNICATION OF SAFETY CONCERNS FROM OPERATIONAL TEST AND 
                    EVALUATION OFFICIALS TO PROGRAM MANAGERS.

    Section 139 of title 10, United States Code, is amended--
            (1) by redesignating subsections (f) through (i) as 
        subsections (g) through (j), respectively; and
            (2) by inserting after subsection (e) the following 
        new subsection:
    ``(f) The Director shall ensure that safety concerns 
developed during the operational test and evaluation of a 
weapon system under a major defense acquisition program are 
communicated in a timely manner to the program manager for that 
program for consideration in the acquisition decisionmaking 
process.''.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

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

                 Subtitle D--Workforce and Depot Issues

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

                Subtitle E--Defense Dependents Education

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

                        Subtitle F--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

SEC. 302. WORKING CAPITAL FUNDS.

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

SEC. 303. ARMED FORCES RETIREMENT HOME.

    (a) Amount for Fiscal Year 2002.--There is hereby 
authorized to be appropriated for fiscal year 2002 from the 
Armed Forces Retirement Home Trust Fund the sum of $71,440,000 
for the operation of the Armed Forces Retirement Home.
    (b) Availability of Amounts Previously Appropriated.--Of 
amounts appropriated from the Armed Forces Retirement Home 
Trust Fund for fiscal year 2002 (and previous fiscal years to 
the extent such amounts remain unobligated), $22,400,000 shall 
be available, subject to the review and approval of the 
Secretary of Defense, for the development and construction of a 
blended use, multicare facility at the Naval Home and for the 
acquisition of a parcel of real property adjacent to the Naval 
Home consisting of approximately 15 acres.

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

    (a) Transfer Authority.--To the extent provided in 
appropriations Acts, not more than $150,000,000 is authorized 
to be transferred from the National Defense Stockpile 
Transaction Fund to operation and maintenance accounts for 
fiscal year 2002 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.
    (b) Treatment of Transfers.--Amounts transferred under this 
section--
            (1) shall be merged with, and be available for the 
        same purposes and the same period as, the amounts in 
        the accounts to which transferred; and
            (2) may not be expended for an item that has been 
        denied authorization of appropriations by Congress.
    (c) Relationship to Other Transfer Authority.--The transfer 
authority provided in this section is in addition to the 
transfer authority provided in section 1001.

SEC. 305. FUNDS FOR RENOVATION OF DEPARTMENT OF VETERANS AFFAIRS 
                    FACILITIES ADJACENT TO NAVAL TRAINING CENTER, GREAT 
                    LAKES, ILLINOIS.

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

SEC. 306. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER EXPANDED 
                    ARABIC LANGUAGE PROGRAM.

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

                  Subtitle B--Environmental Provisions

SEC. 311. INVENTORY OF UNEXPLODED ORDNANCE, DISCARDED MILITARY 
                    MUNITIONS, AND MUNITIONS CONSTITUENTS AT DEFENSE 
                    SITES (OTHER THAN OPERATIONAL RANGES).

    (a) Inventory Required.--(1) Chapter 160 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

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

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

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

    (b) Initial Inventory.--The requirements of section 2710 of 
title 10, United States Code, as added by subsection (a), shall 
be implemented as follows:
            (1) The initial inventory required by subsection 
        (a) of such section shall be completed not later than 
        May 31, 2003.
            (2) The proposed prioritization protocol required 
        by subsection (b) of such section shall be available 
        for public comment not later than November 30, 2002.

SEC. 312. ESTABLISHMENT OF NEW PROGRAM ELEMENT FOR REMEDIATION OF 
                    UNEXPLODED ORDNANCE, DISCARDED MILITARY MUNITIONS, 
                    AND MUNITIONS CONSTITUENTS.

    Section 2703 of title 10, United States Code, is amended--
            (1) by redesignating subsections (b) through (f) as 
        subsections (c) through (g), respectively; and
            (2) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) Program Elements for Ordnance Remediation.--The 
Secretary of Defense shall establish a program element for 
remediation of unexploded ordnance, discarded military 
munitions, and munitions constituents within each environmental 
restoration account established under subsection (a). The terms 
`unexploded ordnance', `discarded military munitions', and 
`munitions constituents' have the meanings given such terms in 
section 2710 of this title.''.

SEC. 313. ASSESSMENT OF ENVIRONMENTAL REMEDIATION OF UNEXPLODED 
                    ORDNANCE, DISCARDED MILITARY MUNITIONS, AND 
                    MUNITIONS CONSTITUENTS.

    (a) Inclusion in 2003 Report on Environmental Restoration 
Activities.--The Secretary of Defense shall include in the 
report submitted to Congress under section 2706(a) of title 10, 
United States Code, in 2003 a comprehensive assessment of 
unexploded ordnance, discarded military munitions, and 
munitions constituents located at current and former facilities 
of the Department of Defense. The assessment shall include, at 
a minimum, the following:
            (1) Separate estimates of the aggregate projected 
        costs of the remediation of unexploded ordnance, 
        discarded military munitions, and munitions 
        constituents at--
                    (A) all operational ranges; and
                    (B) all other defense sites.
            (2) A comprehensive plan for addressing the 
        remediation of unexploded ordinance, discarded military 
        munitions, and munitions constituents at defense sites, 
        including an assessment of the funding required and the 
        period of time over which such funding will be 
        required.
            (3) An assessment of the technology currently 
        available for the remediation of unexploded ordnance, 
        discarded military munitions, and munitions 
        constituents.
            (4) An assessment of the impact of improved 
        technology on the cost of such remediation and a plan 
        for the development and use of such improved 
        technology.
    (b) Requirements for Cost Estimates.--(1) The estimates of 
aggregate projected costs required by subsection (a)(1) shall--
            (A) be stated as a range of aggregate projected 
        costs, including a low estimate and a high estimate;
            (B) set forth the differing assumptions underlying 
        each such low estimate and high estimate, including--
                    (i) any public uses for the operational 
                ranges and other defense sites concerned that 
                will be available after the remediation is 
                completed;
                    (ii) the extent of the remediation required 
                to make the operational ranges and other 
                defense sites concerned available for such 
                uses; and
                    (iii) the technologies to be applied to 
                achieve such level of remediation; and
            (C) include, and identify separately, an estimate 
        of the aggregate projected costs of the remediation of 
        any ground water contamination that may be caused by 
        unexploded ordnance, discarded military munitions, or 
        munitions constituents at the operational ranges and 
        other defense sites concerned.
    (2) The high estimate of the aggregate projected costs 
shall be based on the assumption that all unexploded ordnance, 
discarded military munitions, and munitions constituents at 
each operational range and other defense site will be 
addressed, regardless of whether there are any current plans to 
close the range or site or discontinue training at the range or 
site.
    (3) The estimate of the aggregate projected costs of 
remediation of ground water contamination under paragraph 
(1)(C) shall be based on a comprehensive assessment of the risk 
of such contamination and of the actions required to protect 
the ground water supplies concerned.
    (4) The standards for the report of liabilities of the 
Department of Defense shall not apply to the cost estimates 
required by subsection (a)(1).
    (c) Interim Assessment.--The report submitted to Congress 
under section 2706(a) of title 10, United States Code, in 2002 
shall include the assessment required by subsection (a) to the 
extent that the information required to be provided as part of 
the assessment is available. The Secretary shall include an 
explanation of any limitations on the information available or 
qualifications on the information provided.
    (d) Definitions.--In this section, the terms ``unexploded 
ordnance'', ``discarded military munitions'', ``munitions 
constituents'', ``operational range'', and ``defense site'' 
have the meanings given such terms in section 2710 of title 10, 
United States Code, as added by section 311.

SEC. 314. CONFORMITY OF SURETY AUTHORITY UNDER ENVIRONMENTAL 
                    RESTORATION PROGRAM WITH SURETY AUTHORITY UNDER 
                    CERCLA.

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

SEC. 315. ELIMINATION OF ANNUAL REPORT ON CONTRACTOR REIMBURSEMENT FOR 
                    COSTS OF ENVIRONMENTAL RESPONSE ACTIONS.

    (a) Report Elimination.--Section 2706 of title 10, United 
States Code, is amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsections (d) and (e) as 
        subsections (c) and (d), respectively.
    (b) Conforming Amendments.--Subsection (d) of such section, 
as redesignated by subsection (a) of this section, is amended--
            (1) by striking paragraphs (1) and (3); and
            (2) by redesignating paragraphs (2), (4), and (5) 
        as paragraphs (1), (2), and (3), respectively.

SEC. 316. PILOT PROGRAM FOR SALE OF AIR POLLUTION EMISSION REDUCTION 
                    INCENTIVES.

    (a) Extension.--Section 351(a)(2) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 10 
U.S.C. 2701 note) is amended by striking ``September 30, 2001'' 
and inserting ``September 30, 2003''.
    (b) Report Required.--(1) The Secretary of Defense shall 
prepare a report concerning the operation of the pilot program 
for the sale of economic incentives for the reduction of 
emission of air pollutants attributable to military facilities, 
as authorized by section 351 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 10 
U.S.C. 2701 note). The report shall--
            (A) detail all transactions that have been 
        completed under the pilot program, the dollar amount of 
        each transaction, and the number and type of air 
        pollutants involved in each transaction;
            (B) evaluate the extent to which retention of the 
        proceeds of sales under the pilot program, as required 
        by subsection (c) of such section, has provided 
        incentives for such sales;
            (C) evaluate the extent of any loss to the United 
        States Treasury associated with the pilot program; and
            (D) evaluate the environmental impact of the pilot 
        program.
    (2) Not later than March 1, 2003, the Secretary shall 
submit the report required by paragraph (1) to the Committee on 
Energy and Commerce and the Committee on Armed Services of the 
House of Representatives and the Committee on Environment and 
Public Works and the Committee on Armed Services of the Senate.

SEC. 317. DEPARTMENT OF DEFENSE ENERGY EFFICIENCY PROGRAM.

    (a) Sense of Congress.--It is the sense of Congress that 
the Secretary of Defense should work to implement fuel 
efficiency reforms that allow for investment decisions based on 
the true cost of delivered fuel, strengthen the linkage between 
warfighting capability and fuel logistics requirements, provide 
high-level leadership encouraging fuel efficiency, target fuel 
efficiency improvements through science and technology 
investment, and include fuel efficiency in requirements and 
acquisition processes.
    (b) Energy Efficiency Program.--The Secretary shall carry 
out a program to significantly improve the energy efficiency of 
facilities of the Department of Defense through 2010. The 
Secretary shall designate a senior official of the Department 
of Defense to be responsible for managing the program for the 
Department and a senior official of each military department to 
be responsible for managing the program for such department.
    (c) Energy Efficiency Goals.--The goal of the energy 
efficiency program shall be to achieve reductions in energy 
consumption by facilities of the Department of Defense as 
follows:
            (1) In the case of industrial and laboratory 
        facilities, reductions in the average energy 
        consumption per square foot of such facilities, per 
        unit of production or other applicable unit, relative 
        to energy consumption in 1990--
                    (A) by 20 percent by 2005; and
                    (B) by 25 percent by 2010.
            (2) In the case of other facilities, reductions in 
        average energy consumption per gross square foot of 
        such facilities, relative to energy consumption per 
        gross square foot in 1985--
                    (A) by 30 percent by 2005; and
                    (B) by 35 percent by 2010.
    (d) Strategies for Improving Energy Efficiency.--In order 
to achieve the goals set forth in subsection (c), the Secretary 
shall, to the maximum extent practicable--
            (1) purchase energy-efficient products, as so 
        designated by the Environmental Protection Agency and 
        the Department of Energy, and other products that are 
        energy-efficient;
            (2) utilize energy savings performance contracts, 
        utility energy-efficiency service contracts, and other 
        contracts designed to achieve energy conservation;
            (3) use life-cycle cost analysis, including 
        assessment of life-cycle energy costs, in making 
        decisions about investments in products, services, 
        construction, and other projects;
            (4) conduct energy efficiency audits for 
        approximately 10 percent of all Department of Defense 
        facilities each year;
            (5) explore opportunities for energy efficiency in 
        industrial facilities for steam systems, boiler 
        operation, air compressor systems, industrial 
        processes, and fuel switching; and
            (6) retire inefficient equipment on an accelerated 
        basis where replacement results in lower life-cycle 
        costs.
    (e) Reporting Requirements.--Not later than January 1, 
2002, and each January 1 thereafter through 2010, the Secretary 
shall submit to the congressional defense committees the report 
required to be prepared by the Secretary pursuant to section 
303 of Executive Order 13123 (64 Fed. Reg. 30851; 42 U.S.C. 
8251 note) regarding the progress made toward achieving the 
energy efficiency goals of the Department of Defense.

SEC. 318. PROCUREMENT OF ALTERNATIVE FUELED AND HYBRID LIGHT DUTY 
                    TRUCKS.

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

SEC. 319. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
                    RESPONSE COSTS IN CONNECTION WITH HOOPER SANDS 
                    SITE, SOUTH BERWICK, MAINE.

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

SEC. 320. RIVER MITIGATION STUDIES.

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

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 331. COMMISSARY BENEFITS FOR NEW MEMBERS OF THE READY RESERVE.

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

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

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

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

SEC. 332. REIMBURSEMENT FOR USE OF COMMISSARY FACILITIES BY MILITARY 
                    DEPARTMENTS FOR PURPOSES OTHER THAN COMMISSARY 
                    SALES.

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

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

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

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

SEC. 333. PUBLIC RELEASES OF COMMERCIALLY VALUABLE INFORMATION OF 
                    COMMISSARY STORES.

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

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

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

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

SEC. 334. REBATE AGREEMENTS WITH PRODUCERS OF FOODS PROVIDED UNDER 
                    SPECIAL SUPPLEMENTAL FOOD PROGRAM.

    Section 1060a of title 10, United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as 
        subsections (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following 
        new subsection:
    ``(e) Rebate Agreements With Food Producers.--(1) In the 
administration of the program under this section, the Secretary 
of Defense may enter into a contract with a producer of a 
particular brand of food that provides for--
            ``(A) the Secretary of Defense to procure that 
        particular brand of food, exclusive of other brands of 
        the same or similar food, for the purpose of providing 
        the food in commissary stores of the Department of 
        Defense as a supplemental food under the program; and
            ``(B) the producer to rebate to the Secretary 
        amounts equal to agreed portions of the amounts paid by 
        the Secretary for the procurement of that particular 
        brand of food for the program.
    ``(2) The Secretary of Defense shall use competitive 
procedures under chapter 137 of this title to enter into 
contracts under this subsection.
    ``(3) The period covered by a contract entered into under 
this subsection may not exceed one year. No such contract may 
be extended by a modification of the contract, by exercise of 
an option, or by any other means. Nothing in this paragraph 
prohibits a contractor under a contract entered into under this 
subsection for any year from submitting an offer for, and being 
awarded, a contract that is to be entered into under this 
subsection for a successive year.
    ``(4) Amounts rebated under a contract entered into under 
paragraph (1) shall be credited to the appropriation available 
for carrying out the program under this section in the fiscal 
year in which rebated, shall be merged with the other sums in 
that appropriation, and shall be available for the program for 
the same period as the other sums in the appropriation.''.

SEC. 335. CIVIL RECOVERY FOR NONAPPROPRIATED FUND INSTRUMENTALITY COSTS 
                    RELATED TO SHOPLIFTING.

    Section 3701(b)(1)(B) of title 31, United States Code, is 
amended by inserting before the comma at the end the following: 
``, including actual and administrative costs related to 
shoplifting, theft detection, and theft prevention''.

                 Subtitle D--Workforce and Depot Issues

SEC. 341. REVISION OF AUTHORITY TO WAIVE LIMITATION ON PERFORMANCE OF 
                    DEPOT-LEVEL MAINTENANCE.

    Section 2466 of title 10, United States Code, is amended--
            (1) by striking subsection (c); and
            (2) by inserting after subsection (a) the following 
        new subsections:
    ``(b) Waiver of Limitation.--The Secretary of Defense may 
waive the limitation in subsection (a) for a fiscal year if--
            ``(1) the Secretary determines that the waiver is 
        necessary for reasons of national security; and
            ``(2) the Secretary submits to Congress a 
        notification of the waiver together with the reasons 
        for the waiver.
    ``(c) Prohibition on Delegation of Waiver Authority.--The 
authority to grant a waiver under subsection (b) may not be 
delegated.''.

SEC. 342. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION ON PRIVATE 
                    SECTOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

    Section 2474 of title 10, United States Code, is amended--
            (1) by redesignating subsection (f) as subsection 
        (g); and
            (2) by inserting after subsection (e) the following 
        new subsection (f):
    ``(f) Exclusion of Certain Expenditures From Percentage 
Limitation.--(1) Amounts expended out of funds described in 
paragraph (2) for the performance of a depot-level maintenance 
and repair workload by non-Federal Government personnel at a 
Center of Industrial and Technical Excellence shall not be 
counted for purposes of applying the percentage limitation in 
section 2466(a) of this title if the personnel are provided by 
private industry or other entities outside the Department of 
Defense pursuant to a public-private partnership.
    ``(2) The funds referred to in paragraph (1) are funds 
available to the military departments and Defense Agencies for 
depot-level maintenance and repair workloads for fiscal years 
2002 through 2005.
    ``(3) All funds covered by paragraph (1) shall be included 
as a separate item in the reports required under paragraphs 
(1), (2), and (3) of section 2466(e) of this title.''.

SEC. 343. PROTECTIONS FOR PURCHASERS OF ARTICLES AND SERVICES 
                    MANUFACTURED OR PERFORMED BY WORKING-CAPITAL FUNDED 
                    INDUSTRIAL FACILITIES OF THE DEPARTMENT OF DEFENSE.

    (a) General Rule.--Section 2563(c) of title 10, United 
States Code, is amended--
            (1) in paragraph (1)(B), by striking ``in any case 
        of willful misconduct or gross negligence'' and 
        inserting ``as provided in paragraph (3)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(3) Paragraph (1)(B) does not apply in any case of 
willful misconduct or gross negligence or in the case of a 
claim by a purchaser of articles or services under this section 
that damages or injury arose from the failure of the Government 
to comply with quality, schedule, or cost performance 
requirements in the contract to provide the articles or 
services.''.
    (b) Conforming Amendment.--Section 2474(e)(2)(B)(i) of such 
title is amended by striking ``in a case of willful conduct or 
gross negligence'' and inserting ``under the circumstances 
described in section 2563(c)(3) of this title''.

SEC. 344. REVISION OF DEADLINE FOR ANNUAL REPORT ON COMMERCIAL AND 
                    INDUSTRIAL ACTIVITIES.

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

SEC. 345. PILOT MANPOWER REPORTING SYSTEM IN DEPARTMENT OF THE ARMY.

    (a) Annual Reporting Requirement.--Not later than March 1 
of each of the fiscal years 2002 through 2004, the Secretary of 
the Army shall submit to Congress a report describing the use 
during the previous fiscal year of non-Federal entities to 
provide services to the Department of the Army.
    (b) Content of Report.--Using information available from 
existing data collection and reporting systems available to the 
Department of the Army and the non-Federal entities referred to 
in subsection (a), the report shall--
            (1) specify the number of work year equivalents 
        performed by individuals employed by non-Federal 
        entities in providing services to the Department;
            (2) categorize the information by Federal supply 
        class or service code; and
            (3) indicate the appropriation from which the 
        services were funded and the major organizational 
        element of the Department procuring the services.
    (c) Limitation on Requirement for Non-Federal Entities to 
Provide Information.--For the purposes of meeting the 
requirements set forth in subsection (b), the Secretary of the 
Army may not require the provision of information beyond the 
information that is currently provided to the Department of the 
Army by the non-Federal entities referred to in subsection (a), 
except for the number of work year equivalents associated with 
Department of the Army contracts, identified by contract 
number, to the extent this information is available to the 
contractor from existing data collection systems.
    (d) Repeal of Obsolete Reporting Requirement.--Section 343 
of the National Defense Authorization Act for Fiscal Year 2000 
(Public Law 106-65; 113 Stat. 569) is repealed.

SEC. 346. DEVELOPMENT OF ARMY WORKLOAD AND PERFORMANCE SYSTEM AND 
                    WHOLESALE LOGISTICS MODERNIZATION PROGRAM.

    (a) Relationship Between Systems.--(1) The Army Workload 
and Performance System, including all applications in the 
master plan submitted to Congress on June 8, 2001, and any 
revisions to the master plan, shall be developed in such a 
manner that its functionality and identity are in compliance 
with all statutory requirements. The Army Workload and 
Performance System shall continue as a standard Army-wide 
manpower system under the supervision and management of the 
Secretary of the Army.
    (2) The requirement in paragraph (1) is intended to 
encourage the sharing of data between the Army Workload and 
Performance System and the Wholesale Logistics Modernization 
Program and the development of the processes necessary to 
permit or enhance such data sharing.
    (b) Annual Progress Reports.--(1) Not later than February 1 
of each year, the Secretary of the Army shall submit to 
Congress a progress report on the implementation of the master 
plan for the Army Workload and Performance System during the 
preceding year. The report shall specifically address any 
changes made to the master plan since the previous report.
    (2) The reporting requirement shall terminate when the 
Secretary certifies to Congress that the Army Workload and 
Performance System is fully implemented.
    (c) GAO Evaluation.--Not later than 60 days after the 
Secretary of the Army submits to Congress a progress report 
under subsection (b), the Comptroller General shall submit to 
Congress an evaluation of the report.
    (d) Army Workload and Performance System Defined.--The term 
``Army Workload and Performance System'' includes all 
applications in the master plan for the System submitted to 
Congress on June 8, 2001, and any revision of such master plan.

                Subtitle E--Defense Dependents Education

SEC. 351. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
                    DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND 
                    DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

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

SEC. 352. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated pursuant to 
section 301(a)(5) for operation and maintenance for Defense-
wide activities, $5,000,000 shall be available for payments 
under section 363 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-77; 20 U.S.C. 7703a).

SEC. 353. AVAILABILITY OF AUXILIARY SERVICES OF DEFENSE DEPENDENTS' 
                    EDUCATION SYSTEM FOR DEPENDENTS WHO ARE HOME SCHOOL 
                    STUDENTS.

    Section 1407 of the Defense Dependents' Education Act of 
1978 (20 U.S.C. 926) is amended--
            (1) by redesignating subsection (d) as subsection 
        (e); and
            (2) by inserting after subsection (c) the following 
        new subsection:
    ``(d) Auxiliary Services Available to Home School 
Students.--(1) A dependent who is educated in a home school 
setting, but who is eligible to enroll in a school of the 
defense dependents' education system, shall be permitted to use 
or receive auxiliary services of that school without being 
required to either enroll in that school or register for a 
minimum number of courses offered by that school. The dependent 
may be required to satisfy other eligibility requirements and 
comply with standards of conduct applicable to students 
actually enrolled in that school who use or receive the same 
auxiliary services.
    ``(2) For purposes of paragraph (1), the term `auxiliary 
services' includes use of academic resources, access to the 
library of the school, after hours use of school facilities, 
and participation in music, sports, and other extracurricular 
and interscholastic activities.''.

SEC. 354. COMPTROLLER GENERAL STUDY OF ADEQUACY OF COMPENSATION 
                    PROVIDED FOR TEACHERS IN THE DEPARTMENT OF DEFENSE 
                    OVERSEAS DEPENDENTS' SCHOOLS.

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

                       Subtitle F--Other Matters

SEC. 361. AVAILABILITY OF EXCESS DEFENSE PERSONAL PROPERTY TO SUPPORT 
                    DEPARTMENT OF VETERANS AFFAIRS INITIATIVE TO ASSIST 
                    HOMELESS VETERANS.

    (a) Transfer Authority.--Subsection (a) of section 2557 of 
title 10, United States Code, is amended--
            (1) by striking ``The Secretary'' and inserting 
        ``(1) The Secretary''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The Secretary of Defense may make excess clothing, 
shoes, sleeping bags, and related nonlethal excess supplies 
available to the Secretary of Veterans Affairs for distribution 
to homeless veterans and programs assisting homeless veterans. 
The transfer of nonlethal excess supplies to the Secretary of 
Veterans Affairs under this paragraph shall be without 
reimbursement.''.
    (b) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

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

    (2) The table of sections at the beginning of chapter 152 
of such title is amended by striking the item relating to 
section 2557 and inserting the following new item:

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

SEC. 362. INCREMENTAL IMPLEMENTATION OF NAVY-MARINE CORPS INTRANET 
                    CONTRACT.

    (a) Additional Phase-In Authority.--Section 814 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 
1654A-215) is amended--
            (1) by redesignating subsections (c), (d), (e), and 
        (f) as subsections (f), (g), (h), and (i), 
        respectively; and
            (2) by inserting after subsection (b) the following 
        new subsections:
    ``(c) Additional Phase-In Authority Pending Second Joint 
Certification.--(1)(A) Notwithstanding subsection (b)(3), the 
Secretary of the Navy may order additional work stations under 
the Navy-Marine Corps Intranet contract in excess of the number 
provided in the first increment of the contract under 
subsection (b)(2), but not to exceed an additional 100,000 work 
stations. The authority of Secretary of the Navy to order 
additional work stations under this paragraph is subject to 
approval by both the Under Secretary of Defense for 
Acquisition, Technology, and Logistics and the Chief 
Information Officer of the Department of Defense.
    ``(B) The Under Secretary of Defense for Acquisition, 
Technology, and Logistics and the Chief Information Officer of 
the Department of Defense may not grant approval to the 
Secretary of the Navy to order additional work stations under 
subparagraph (A) until a three-phase customer test and 
evaluation, observed by the Department of Defense, is completed 
for a statistically significant representative sample of the 
work stations operating on the Navy-Marine Corps Intranet. The 
test and evaluation shall include end user testing of day-to-
day operations (including e-mail capability and performance), 
scenario-driven events, and scenario-based interoperability 
testing.
    ``(2)(A) Notwithstanding subsection (b)(3), the Secretary 
of the Navy may order additional work stations under the Navy-
Marine Corps Intranet contract in excess of the number provided 
in the first increment of the contract under subsection (b)(2) 
and the number ordered under the authority of paragraph (1), 
but not to exceed an additional 150,000 work stations. The 
authority of Secretary of the Navy to order additional work 
stations under this paragraph is also subject to approval by 
both the Under Secretary of Defense for Acquisition, 
Technology, and Logistics and the Chief Information Officer of 
the Department of Defense.
    ``(B) The Under Secretary of Defense for Acquisition, 
Technology, and Logistics and the Chief Information Officer of 
the Department of Defense may not grant approval to the 
Secretary of the Navy to order additional work stations under 
subparagraph (A) until each of the following occurs:
            ``(i) There has been a full transition of not less 
        than 20,000 work stations to the Navy-Marine Corps 
        Intranet.
            ``(ii) The work stations referred to in clause (i) 
        have met applicable service-level agreements specified 
        in the Navy-Marine Corps Intranet contract, as 
        determined by contractor performance measurement under 
        oversight by the Department of the Navy.
            ``(iii) The Chief Information Officer of the Navy 
        certifies to the Secretary of the Navy and the Chief 
        Information Officer of the Department of Defense that 
        the results of the performance evaluation referred to 
        in clause (ii) are acceptable.
    ``(3) Of the work stations ordered under the authority 
provided by paragraph (2), not more than 50 percent may reach 
the major milestone known as `assumption of responsibility' 
until each of the following occurs:
            ``(A) All work stations for the headquarters of the 
        Naval Air Command have met applicable service-level 
        agreements specified in the Navy-Marine Corps Intranet 
        contract, as determined by contractor performance 
        measurement under oversight by the Department of the 
        Navy.
            ``(B) The Chief Information Officer of the Navy 
        certifies to the Secretary of the Navy and the Chief 
        Information Officer of the Department of Defense that 
        the results of the performance evaluation referred to 
        in subparagraph (B) are acceptable.
    ``(4) For the purposes of this section, when the 
information infrastructure and systems of a user of a work 
station are transferred into Navy-Marine Corps Intranet 
infrastructure and systems under the Navy-Marine Corps Intranet 
contract consistent with the applicable service-level 
agreements specified in the Navy-Marine Corps Intranet 
contract, the work station shall be considered as having been 
provided for the Navy-Marine Corps Intranet.
    ``(d) Reporting and Review Requirements.--(1) If work 
stations are ordered using the authority provided by paragraph 
(1) or (2) of subsection (c), the Secretary of the Navy shall 
submit to Congress a report, current as of the date the 
determination is made to order the work stations, on the 
following:
            ``(A) The number of work stations operating on the 
        Navy-Marine Corps Intranet, including the number of 
        work stations regarding which assumption of 
        responsibility has occurred.
            ``(B) The status of testing and implementation of 
        the Navy-Marine Corps Intranet program.
            ``(C) The number of work stations to be ordered 
        under paragraph (1) or (2) of subsection (c), whichever 
        applies.
    ``(2) A report containing the information required by 
paragraph (1) shall also be submitted to Congress when the 
requirements of paragraph (3) of subsection (c) are satisfied 
and additional work stations under the Navy-Marine Corps 
Intranet contract are authorized to reach assumption of 
responsibility.
    ``(3) The Comptroller General shall conduct a review of the 
impact that participation in the Navy-Marine Corps Intranet 
program has on information technology costs of working capital 
funded industrial facilities of the Department of the Navy and 
submit the results of the review to Congress.''.
    (b) Navy-Marine Corps Intranet Manager.--Such section is 
further amended by inserting after subsection (d), as added by 
subsection (a)(2) of this section, the following new 
subsection:
    ``(e) Assignment of Navy-Marine Corps Intranet Manager.--
The Secretary of the Navy shall assign an employee of the 
Department of the Navy to the Navy-Marine Corps Intranet 
program whose sole responsibility will be to oversee and direct 
the program. The employee so assigned may not also be the 
program executive officer.''.
    (c) Definitions.--Subsection (i) of such section, as 
redesignated by subsection (a)(1) of this section, is amended--
            (1) by striking ``Navy-Marine Corps Intranet 
        Contract Defined.--'' and inserting ``Definitions.--
        (1)''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(2) In this section, the term `assumption of 
        responsibility', with respect to a work station, means 
        the point at which the contractor team under the Navy-
        Marine Corps Intranet contract assumes operational 
        control of, and responsibility for, the existing 
        information infrastructure and systems of a work 
        station, in order to prepare for ultimate transition of 
        the work station to the Navy-Marine Corps Intranet.''.

SEC. 363. COMPTROLLER GENERAL STUDY AND REPORT OF NATIONAL GUARD 
                    DISTRIBUTIVE TRAINING TECHNOLOGY PROJECT.

    (a) Study Required.--The Comptroller General of the United 
States shall conduct a study of the Distributive Training 
Technology Project of the National Guard. The study shall 
examine--
            (1) current requirements of the National Guard for 
        interconnection of networks of the Distributive 
        Training Technology Project with other networks, 
        including networks of the Federal Emergency Management 
        Agency and other Federal, State, and local emergency 
        preparedness and response agencies; and
            (2) future requirements of the National Guard for 
        interconnection of networks of the Project with other 
        networks, including those Federal and State agencies 
        having disaster response functions.
    (b) Elements of Study.--For both the current requirements 
identified under subsection (a)(1) and future requirements 
identified under subsection (a)(2), the study shall examine the 
following:
            (1) Appropriate connections between the Project and 
        other networks.
            (2) Means of protecting the Project from outside 
        intrusion.
            (3) Impediments to interconnectivity, including the 
        extent to which national security concerns affect 
        interconnectivity and the technological capability of 
        the Department of Defense to impede interconnectivity, 
        as well as other concerns or limitations that affect 
        interconnectivity.
            (4) Means of improving interconnectivity.
    (c) Report.--Not later than 270 days after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Committee on Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives a report on 
the study conducted under subsection (a). The report shall 
describe the results of the study and shall include any 
recommendations that the Comptroller General considers 
appropriate in light of the study.

SEC. 364. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

    (a) Extension of Authority.--Subsection (f) of section 391 
of the National Defense Authorization Act for Fiscal Year 1998 
(Public Law 105-85; 10 U.S.C. 2304 note) is amended by striking 
``September 30, 2000'' and inserting ``September 30, 2003''.
    (b) Reporting Requirements.--Subsection (g) of such section 
is amended--
            (1) in paragraph (1), by striking ``January 1, 
        2001'' and inserting ``January 1, 2003''; and
            (2) in paragraph (2), by striking ``March 1, 2001'' 
        and inserting ``March 1, 2003''.

SEC. 365. EVALUATION OF CURRENT DEMONSTRATION PROGRAMS TO IMPROVE 
                    QUALITY OF PERSONAL PROPERTY SHIPMENTS OF MEMBERS.

    (a) Completion of Evaluation; Report.--Not later than March 
31, 2002, the Secretary of Defense shall complete the ongoing 
evaluation of all test programs regarding the transportation of 
household goods for members of the Armed Forces and submit to 
Congress a report containing the results of such evaluation.
    (b) Contents of Report.--The report shall include--
            (1) the results of each test program evaluated, 
        including whether the test program satisfied the goals 
        for the movement of such household goods (as contained 
        in the General Accounting Report NSIAD 97-49) and 
        whether current business processes and information 
        technology capabilities require upgrading or other 
        changes to improve the transportation of such household 
        goods; and
            (2) recommendations for policy improvements for 
        military household moves worldwide, including an 
        estimate of the cost to implement each recommendation.

SEC. 366. SENSE OF CONGRESS REGARDING SECURITY TO BE PROVIDED AT 2002 
                    WINTER OLYMPIC GAMES.

    It is the sense of Congress that the Secretary of Defense, 
upon receipt of the certification of the Attorney General 
required by section 2564(a) of title 10, United States Code, 
should authorize the provision of assistance in support of 
essential security and safety at the 2002 Winter Olympic Games 
to be held in Salt Lake City, Utah, and other locations in the 
State of Utah.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS



                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

        Subtitle C--Other Matters Relating to Personnel Strengths

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

               Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

    Section 691(b) of title 10, United States Code, is 
amended--
            (1) in paragraph (2), by striking ``372,000'' and 
        inserting ``376,000''; and
            (2) in paragraph (4), by striking ``357,000'' and 
        inserting ``358,800''.

SEC. 403. INCREASE IN SENIOR ENLISTED ACTIVE DUTY GRADE LIMIT FOR NAVY, 
                    MARINE CORPS, AND AIR FORCE.

    Section 517(a) of title 10, United States Code, is amended 
by striking ``2 percent (or, in the case of the Army, 2.5 
percent)'' and inserting ``2.5 percent''.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

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

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

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

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

    (a) Limitation.--The number of non-dual status technicians 
employed by the reserve components of the Army and the Air 
Force as of September 30, 2002, may not exceed the following:
            (1) For the Army Reserve, 1,095.
            (2) For the Army National Guard of the United 
        States, 1,600.
            (3) For the Air Force Reserve, 90.
            (4) For the Air National Guard of the United 
        States, 350.
    (b) Non-Dual Status Technicians Defined.--In this section, 
the term ``non-dual status technician'' has the meaning given 
that term in section 10217(a) of title 10, United States Code.

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

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


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

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

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

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

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

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


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

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



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

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

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

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

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

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

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

       Subtitle C--Other Matters Relating to Personnel Strengths

SEC. 421. ADMINISTRATION OF END STRENGTHS.

    (a) Increase in Percentage by Which Active Component End 
Strengths May Be Increased.--Section 115(c)(1) of title 10, 
United States Code, is amended by striking ``1 percent'' and 
inserting ``2 percent''.
    (b) Waiver of End Strengths During National Emergency.--The 
text of section 123a of such title is amended to read as 
follows:
    ``(a) During War or National Emergency.--If at the end of 
any fiscal year there is in effect a war or national emergency, 
the President may waive any statutory end strength with respect 
to that fiscal year. Any such waiver may be issued only for a 
statutory end strength that is prescribed by law before the 
waiver is issued.
    ``(b) Upon Termination of War or National Emergency.--Upon 
the termination of a war or national emergency with respect to 
which the President has exercised the authority provided by 
subsection (a), the President may defer the effectiveness of 
any statutory end strength with respect to the fiscal year 
during which the termination occurs. Any such deferral may not 
extend beyond the last day of the sixth month beginning after 
the date of such termination.
    ``(c) Statutory End Strength.--In this section, the term 
`statutory end strength' means any end-strength limitation with 
respect to a fiscal year that is prescribed by law for any 
military or civilian component of the armed forces or of the 
Department of Defense.''.

SEC. 422. ACTIVE DUTY END STRENGTH EXEMPTION FOR NATIONAL GUARD AND 
                    RESERVE PERSONNEL PERFORMING FUNERAL HONORS 
                    FUNCTIONS.

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

              Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

             Subtitle B--Reserve Component Personnel Policy

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

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

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

               Subtitle D--Military Education and Training

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

              Subtitle E--Recruiting and Accession Programs

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

       Subtitle F--Decorations, Awards, and Posthumous Commissions

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

                     Subtitle G--Funeral Honors Duty

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

             Subtitle H--Military Spouses and Family Members

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

        Subtitle I--Military Justice and Legal Assistance Matters

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

                        Subtitle J--Other Matters

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

                  Subtitle A--Officer Personnel Policy

SEC. 501. ENHANCED FLEXIBILITY FOR MANAGEMENT OF SENIOR GENERAL AND 
                    FLAG OFFICER POSITIONS.

    (a) Repeal of Limit on Number of Officers on Active Duty in 
Grades of General and Admiral.--Section 528 of title 10, United 
States Code, is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 32 of such title is amended by striking 
the item relating to section 528.

SEC. 502. CERTIFICATIONS OF SATISFACTORY PERFORMANCE FOR RETIREMENT OF 
                    OFFICERS IN GRADES ABOVE MAJOR GENERAL AND REAR 
                    ADMIRAL.

    Section 1370(c) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(3)(A) The Secretary of Defense may delegate authority to 
make a certification with respect to an officer under paragraph 
(1) only to the Under Secretary of Defense for Personnel and 
Readiness or the Deputy Under Secretary of Defense for 
Personnel and Readiness.
    ``(B) If authority is delegated under subparagraph (A) and, 
in the course of consideration of an officer for a 
certification under paragraph (1), the Under Secretary or (if 
such authority is delegated to both the Under and Deputy Under 
Secretary) the Deputy Under Secretary makes a determination 
described in subparagraph (C) with respect to that officer, the 
Under Secretary or Deputy Under Secretary, as the case may be, 
may not exercise the delegated authority in that case, but 
shall refer the matter to the Secretary of Defense, who shall 
personally determine whether to issue a certification under 
paragraph (1) with respect to that officer.
    ``(C) A determination referred to in subparagraph (B) is a 
determination that there is potentially adverse information 
concerning an officer and that such information has not 
previously been submitted to the Senate in connection with the 
consideration by the Senate of a nomination of that officer for 
an appointment for which the advice and consent of the Senate 
is required.''.

SEC. 503. REVIEW OF ACTIONS OF SELECTION BOARDS.

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

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

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

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

    (b) Special Selection Boards.--Section 628 of such title is 
amended--
            (1) by redesignating subsection (g) as subsection 
        (k); and
            (2) by inserting after subsection (f) the following 
        new subsections:
    ``(g) Judicial Review.--(1)(A) A court of the United States 
may review a determination by the Secretary of a military 
department under subsection (a)(1) or (b)(1) not to convene a 
special selection board in the case of any person. In any such 
case, the court may set aside the Secretary's determination 
only if the court finds the determination to be--
            ``(i) arbitrary or capricious;
            ``(ii) not based on substantial evidence;
            ``(iii) a result of material error of fact or 
        material administrative error; or
            ``(iv) otherwise contrary to law.
    ``(B) If a court sets aside a determination by the 
Secretary of a military department not to convene a special 
selection board under this section, it shall remand the case to 
the Secretary concerned, who shall provide for consideration by 
such a board.
    ``(2) A court of the United States may review the action of 
a special selection board convened under this section or an 
action of the Secretary of the military department concerned on 
the report of such a board. In any such case, a court may set 
aside the action only if the court finds that the action was--
            ``(A) arbitrary or capricious;
            ``(B) not based on substantial evidence;
            ``(C) a result of material error of fact or 
        material administrative error; or
            ``(D) otherwise contrary to law.
    ``(3)(A) If, six months after receiving a complete 
application for consideration by a special selection board 
under this section in any case, the Secretary concerned has not 
convened such a board and has not denied consideration by such 
a board in that case, the Secretary shall be deemed for the 
purposes of this subsection to have denied the consideration of 
the case by such a board.
    ``(B) If, six months after the convening of a special 
selection board under this section in any case, the Secretary 
concerned has not taken final action on the report of the 
board, the Secretary shall be deemed for the purposes of this 
subsection to have denied relief in such case.
    ``(C) Under regulations prescribed under subsection (j), 
the Secretary of a military department may waive the 
applicability of subparagraph (A) or (B) in a case if the 
Secretary determines that a longer period for consideration of 
the case is warranted. Such a waiver may be for an additional 
period of not more than six months. The Secretary concerned may 
not delegate authority to make a determination under this 
subparagraph.
    ``(h) Limitations of Other Jurisdiction.--No official or 
court of the United States may, with respect to a claim based 
to any extent on the failure of a person to be selected for 
promotion by a promotion board--
            ``(1) consider the claim unless the person has 
        first been referred by the Secretary concerned to a 
        special selection board convened under this section and 
        acted upon by that board and the report of the board 
        has been approved by the President; or
            ``(2) except as provided in subsection (g), grant 
        any relief on the claim unless the person has been 
        selected for promotion by a special selection board 
        convened under this section to consider the person for 
        recommendation for promotion and the report of the 
        board has been approved by the President.
    ``(i) Existing Jurisdiction.--Nothing in this section 
limits--
            ``(1) the jurisdiction of any court of the United 
        States under any provision of law to determine the 
        validity of any law, regulation, or policy relating to 
        selection boards; or
            ``(2) the authority of the Secretary of a military 
        department to correct a military record under section 
        1552 of this title.
    ``(j) Regulations.--(1) The Secretary of each military 
department shall prescribe regulations to carry out this 
section. Regulations under this subsection may not apply to 
subsection (g), other than to paragraph (3)(C) of that 
subsection.
    ``(2) The Secretary may prescribe in the regulations under 
paragraph (1) the circumstances under which consideration by a 
special selection board may be provided for under this section, 
including the following:
            ``(A) The circumstances under which consideration 
        of a person's case by a special selection board is 
        contingent upon application by or for that person.
            ``(B) Any time limits applicable to the filing of 
        an application for such consideration.
    ``(3) Regulations prescribed by the Secretary of a military 
department under this subsection may not take effect until 
approved by the Secretary of Defense.''.
    (c) Effective Date.--(1) Except as provided in paragraph 
(2), the amendments made by this section shall apply with 
respect to any proceeding pending on or after the date of the 
enactment of this Act without regard to whether a challenge to 
an action of a selection board of any of the Armed Forces being 
considered in the proceeding was initiated before, on, or after 
that date.
    (2) The amendments made by this section shall not apply 
with respect to any action commenced in a court of the United 
States before the date of the enactment of this Act.

SEC. 504. TEMPORARY REDUCTION OF TIME-IN-GRADE REQUIREMENT FOR 
                    ELIGIBILITY FOR PROMOTION FOR CERTAIN ACTIVE-DUTY 
                    LIST OFFICERS IN GRADES OF FIRST LIEUTENANT AND 
                    LIEUTENANT (JUNIOR GRADE).

    (a) Authority.--Subsection (a)(1)(B) of section 619 of 
title 10, United States Code, is amended by inserting before 
the period at the end the following: ``, except that the 
minimum period of service in effect under this subparagraph 
before October 1, 2005, shall be eighteen months''.
    (b) Stylistic Amendments.--Such section is further amended 
as follows:
            (1) Subsection (a) is amended by striking 
        ``(a)(1)'' and inserting ``(a) Time-in-Grade 
        Requirements.--(1)''.
            (2) Subsection (b) is amended by striking 
        ``(b)(1)'' and inserting ``(b) Continued Eligibility 
        for Consideration for Promotion of Officers Who Have 
        Previously Failed of Selection.--(1)''.
            (3) Subsection (c) is amended by striking 
        ``(c)(1)'' and inserting ``(c) Officers To Be 
        Considered by Promotion Boards.--(1)''.
            (4) Subsection (d) is amended by inserting 
        ``Certain Officers Not To Be Considered.--'' after 
        ``(d)''.
    (c) Technical Amendment.--Subsection (a)(4) of such section 
is amended by striking ``clause (A)'' and inserting 
``subparagraph (A)''.

SEC. 505. AUTHORITY FOR PROMOTION WITHOUT SELECTION BOARD CONSIDERATION 
                    FOR ALL FULLY QUALIFIED OFFICERS IN GRADE OF FIRST 
                    LIEUTENANT OR LIEUTENANT (JUNIOR GRADE) IN THE 
                    NAVY.

    (a) Active-Duty List Promotions.--(1) Section 624(a) of 
title 10, United States Code, is amended by adding at the end 
the following new paragraph:
    ``(3)(A) Except as provided in subsection (d), officers on 
the active-duty list in the grade of first lieutenant or, in 
the case of the Navy, lieutenant (junior grade) who are on an 
approved all-fully-qualified-officers list shall be promoted to 
the next higher grade in accordance with regulations prescribed 
by the Secretary concerned.
    ``(B) An all-fully-qualified-officers list shall be 
considered to be approved for purposes of subparagraph (A) when 
the list is approved by the President. When so approved, such a 
list shall be treated in the same manner as a promotion list 
under this chapter.
    ``(C) The Secretary of a military department may make a 
recommendation to the President for approval of an all-fully-
qualified-officers list only when the Secretary determines that 
all officers on the list are needed in the next higher grade to 
accomplish mission objectives.
    ``(D) For purposes of this paragraph, an all-fully-
qualified-officers list is a list of all officers on the 
active-duty list in a grade who the Secretary of the military 
department concerned determines--
            ``(i) are fully qualified for promotion to the next 
        higher grade; and
            ``(ii) would be eligible for consideration for 
        promotion to the next higher grade by a selection board 
        convened under section 611(a) of this title upon the 
        convening of such a board.''.
    (2) Section 631 of such title is amended by adding at the 
end the following new subsection:
    ``(d) For the purposes of this chapter, an officer of the 
Army, Air Force, or Marine Corps who holds the grade of first 
lieutenant, and an officer of the Navy who holds the grade of 
lieutenant (junior grade), shall be treated as having failed of 
selection for promotion if the Secretary of the military 
department concerned determines that the officer would be 
eligible for consideration for promotion to the next higher 
grade by a selection board convened under section 611(a) of 
this title if such a board were convened but is not fully 
qualified for promotion when recommending for promotion under 
section 624(a)(3) of this title all fully qualified officers of 
the officer's armed force in such grade who would be eligible 
for such consideration.''.
    (3) Section 611 of such title is amended--
            (A) in subsection (a)--
                    (i) by striking ``Under'' and all that 
                follows through ``require,'' and inserting 
                ``Whenever the needs of the service require, 
                the Secretary of the military department 
                concerned''; and
                    (ii) by adding at the end the following new 
                sentence: ``The preceding sentence does not 
                require the convening of a selection board in 
                the case of officers in the permanent grade of 
                first lieutenant or, in the case of the Navy, 
                lieutenant (junior grade) when the Secretary 
                concerned recommends for promotion to the next 
                higher grade under section 624(a)(3) of this 
                title all such officers whom the Secretary 
                finds to be fully qualified for promotion.'';
            (B) in subsection (b), by striking ``Under'' and 
        all that follows through ``require,'' and inserting 
        ``Whenever the needs of the service require, the 
        Secretary of the military department concerned''; and
            (C) by adding at the end the following new 
        subsection:
    ``(c) The convening of selection boards under subsections 
(a) and (b) shall be under regulations prescribed by the 
Secretary of Defense.''.
    (b) Reserve Active-Status List Promotions.--(1) Section 
14308(b) of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
    ``(4)(A) Officers in the permanent grade of first 
lieutenant or, in the case of the Navy, lieutenant (junior 
grade) who are on an approved all-fully-qualified-officers list 
shall be promoted to the next higher grade in accordance with 
regulations prescribed by the Secretary concerned. Such 
promotions shall be in the manner specified in section 12203 of 
this title.
    ``(B) An all-fully-qualified-officers list shall be 
considered to be approved for purposes of subparagraph (A) when 
the list is approved by the President. When so approved, such a 
list shall be treated in the same manner as a promotion list 
under this chapter and chapter 1403 of this title.
    ``(C) The Secretary of a military department may make a 
recommendation to the President for approval of an all-fully-
qualified-officers list only when the Secretary determines that 
all officers on the list are needed in the next higher grade to 
accomplish mission objectives.
    ``(D) For purposes of this paragraph, an all-fully-
qualified-officers list is a list of all officers on the 
reserve active-status list in a grade who the Secretary of the 
military department concerned determines--
            ``(i) are fully qualified for promotion to the next 
        higher grade; and
            ``(ii) would be eligible for consideration for 
        promotion to the next higher grade by a selection board 
        convened under section 14101(a) of this title upon the 
        convening of such a board.''.
    (2) Section 14504 of such title is amended by adding at the 
end the following new subsection:
    ``(c) Officers in Grade of First Lieutenant or Lieutenant 
(Junior Grade) Found Not Fully Qualified for Promotion.--For 
the purposes of this chapter, an officer of the Army, Air 
Force, or Marine Corps on a reserve active-status list who 
holds the grade of first lieutenant, and an officer of the Navy 
on a reserve active-status list who holds the grade of 
lieutenant (junior grade), shall be treated as having failed of 
selection for promotion if the Secretary of the military 
department concerned determines that the officer would be 
eligible for consideration for promotion to the next higher 
grade by a selection board convened under section 14101(a) of 
this title if such a board were convened but is not fully 
qualified for promotion when recommending for promotion under 
section 14308(b)(4) of this title all fully qualified officers 
of the officer's armed force in such grade who would be 
eligible for such consideration.''.
    (3) Section 14101(a) of such title is amended by adding at 
the end the following new paragraph:
    ``(3) Paragraph (1) does not require the convening of a 
selection board in the case of officers in the permanent grade 
of first lieutenant or, in the case of the Navy, lieutenant 
(junior grade) when the Secretary concerned recommends for 
promotion to the next higher grade under section 14308(b)(4) of 
this title all such officers whom the Secretary finds to be 
fully qualified for promotion.''.
    (c) Conforming Amendments.--Title 10, United States Code, 
is amended as follows:
            (1)(A) Section 619(d) is amended by adding at the 
        end the following new paragraph:
            ``(4) An officer in the grade of first lieutenant 
        or, in the case of the Navy, lieutenant (junior grade) 
        who is on an approved all-fully-qualified-officers list 
        under section 624(a)(3) of this title.''.
            (B) Section 14301(c) is amended by adding at the 
        end the following new paragraph:
            ``(5) An officer in the grade of first lieutenant 
        or, in the case of the Navy, lieutenant (junior grade) 
        who is on an approved all-fully-qualified-officers list 
        under section 14308(b)(4) of this title.''.
            (2)(A) Section 624(d) is amended--
                    (i) in the second sentence of paragraph 
                (1), by inserting after ``on the promotion 
                list'' the following: ``(including an approved 
                all-fully-qualified-officers list, if 
                applicable)''; and
                    (ii) in the second sentence of paragraph 
                (2), by inserting after ``to such grade, the 
                officer'' the following: ``shall be retained on 
                the promotion list (including an approved all-
                fully-qualified-officers list, if applicable) 
                and''.
            (B) Section 14311 is amended--
                    (i) in subsection (a)(2), by inserting 
                after ``on the promotion list'' the following: 
                ``(including an approved all-fully-qualified-
                officers list, if applicable)''; and
                    (ii) in subsection (b), by inserting in the 
                second sentence after ``on the promotion list'' 
                the following: ``(including an approved all-
                fully-qualified-officers list, if 
                applicable)''.
            (3)(A) Section 628(a)(1) is amended by inserting 
        after ``not so considered,'' the following: ``or the 
        name of a person that should have been placed on an 
        all-fully-qualified-officers list under section 
        624(a)(3) of this title was not so placed,''.
            (B) Section 14502(a)(1) is amended by inserting 
        after ``because of administrative error,'' the 
        following: ``or whose name was not placed on an all-
        fully-qualified-officers list under section 14308(b)(4) 
        of this title because of administrative error,''.
            (4) Section 1211(e) is amended by inserting after 
        ``a promotion list,'' the following: ``an approved all-
        fully-qualified-officers list,''.
    (d) Technical Amendments To Strike Certain DOPMA References 
to Regular Officers.--Chapter 36 of such title is amended as 
follows:
            (1) Section 624(c) is amended--
                    (A) by inserting ``, in the case of 
                officers of the Army, Air Force, or Marine 
                Corps,'' after ``captain''; and
                    (B) by inserting ``, in the case of 
                officers of the Navy,'' after ``or lieutenant'' 
                the second place it appears.
            (2) Section 630 is amended by striking ``regular'' 
        both places it appears.
            (3) Sections 631(a) and 632(a) are each amended--
                    (A) by striking ``Regular Army, Regular Air 
                Force, or Regular Marine Corps'' and inserting 
                ``Army, Air Force, or Marine Corps on the 
                active-duty list'';
                    (B) by striking ``Regular Navy'' and 
                inserting ``Navy on the active-duty list''; and
                    (C) by striking ``regular'' each place it 
                appears.
            (4)(A) The heading of section 630 and the item 
        relating to that section in the table of sections at 
        the beginning of subchapter III are each amended by 
        striking the third word.
            (B) The heading of section 631 and the item 
        relating to that section in the table of sections at 
        the beginning of subchapter III are each amended by 
        striking the eighth word.
            (C) The heading of section 632 and the item 
        relating to that section in the table of sections at 
        the beginning of subchapter III are each amended by 
        striking the eighth and twenty-first words.

SEC. 506. AUTHORITY TO ADJUST DATE OF RANK OF CERTAIN PROMOTIONS 
                    DELAYED BY REASON OF UNUSUAL CIRCUMSTANCES.

    (a) Active Duty Officers.--Subsection 741(d) of title 10, 
United States Code, is amended by adding at the end the 
following new paragraph:
    ``(4)(A) The Secretary concerned may adjust the date of 
rank of an officer appointed under section 624(a) of this title 
to a higher grade that is not a general officer or flag officer 
grade if the appointment of that officer to that grade is 
delayed from the date on which (as determined by the Secretary) 
it would otherwise have been made by reason of unusual 
circumstances (as determined by the Secretary) that cause an 
unintended delay in--
            ``(i) the processing or approval of the report of 
        the selection board recommending the appointment of 
        that officer to that grade; or
            ``(ii) the processing or approval of the promotion 
        list established on the basis of that report.
    ``(B) The adjusted date of rank applicable to the grade of 
an officer under subparagraph (A) shall be consistent--
            ``(i) with the officer's position on the promotion 
        list for that grade and competitive category when 
        additional officers in that grade and competitive 
        category were needed; and
            ``(ii) with compliance with the applicable 
        authorized strengths for officers in that grade and 
        competitive category.
    ``(C) The adjusted date of rank applicable to the grade of 
an officer under subparagraph (A) shall be the effective date 
for--
            ``(i) the officer's pay and allowances for that 
        grade; and
            ``(ii) the officer's position on the active-duty 
        list.
    ``(D) When under subparagraph (A) the Secretary concerned 
adjusts the date of rank of an officer in a grade to which the 
officer was appointed by and with the advice and consent of the 
Senate and the adjustment is to a date before the date of the 
advice and consent of the Senate to that appointment, the 
Secretary shall promptly transmit to the Committee on Armed 
Services of the Senate a notification of that adjustment. Any 
such notification shall include the name of the officer and a 
discussion of the reasons for the adjustment of date of rank.
    ``(E) Any adjustment in date of rank under this paragraph 
shall be made under regulations prescribed by the Secretary of 
Defense, which shall apply uniformly among the Army, Navy, Air 
Force, and Marine Corps.''.
    (b) Reserve Officers.--(1) Section 14308(c) of such title 
is amended--
            (A) by redesignating paragraph (2) as paragraph 
        (3); and
            (B) by inserting after paragraph (1) the following 
        new paragraph (2):
    ``(2) The date of rank of an officer appointed to a higher 
grade under this section may be adjusted in the same manner as 
an adjustment may be made under section 741(d)(4) of this title 
in the date of rank of an officer appointed to a higher grade 
under section 624(a) of this title. In any use of the authority 
under the preceding sentence, subparagraph (C)(ii) of such 
section shall be applied by substituting `reserve active-status 
list' for `active-duty list'.''.
    (2) Paragraph (3) of such section, as redesignated by 
paragraph (1)(A), is amended by inserting ``provided in 
paragraph (2) or as otherwise'' after ``Except as''.
    (c) Effective Date.--(1) Paragraph (4) of section 741(d) of 
title 10, United States Code, as added by subsection (a), and 
paragraph (2) of section 14308(c) of such title, as added by 
subsection (b), shall apply with respect to any report of a 
selection board recommending officers for promotion to the next 
higher grade that is submitted to the Secretary of the military 
department concerned on or after the date of the enactment of 
this Act.
    (2) The Secretary of the military department concerned may 
apply the applicable paragraph referred to in paragraph (1) in 
the case of an appointment of an officer to a higher grade 
resulting from a report of a selection board submitted to the 
Secretary before the date of the enactment of this Act if the 
Secretary determines that such appointment would have been made 
on an earlier date that is on or after October 1, 2001, and was 
delayed under the circumstances specified in paragraph (4) of 
section 741(d) of title 10, United States Code, as added by 
subsection (a).

SEC. 507. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL DEFERMENT OF 
                    MANDATORY RETIREMENT OR SEPARATION.

    The text of section 640 of title 10, United States Code, is 
amended to read as follows:
    ``(a) If the Secretary of the military department concerned 
determines that the evaluation of the physical condition of an 
officer and determination of the officer's entitlement to 
retirement or separation for physical disability require 
hospitalization or medical observation and that such 
hospitalization or medical observation cannot be completed with 
confidence in a manner consistent with the member's well being 
before the date on which the officer would otherwise be 
required to retire or be separated under this title, the 
Secretary may defer the retirement or separation of the officer 
under this title.
    ``(b) A deferral of retirement or separation under 
subsection (a) may not extend for more than 30 days after 
completion of the evaluation requiring hospitalization or 
medical observation.''.

SEC. 508. AUTHORITY FOR LIMITED EXTENSION ON ACTIVE DUTY OF MEMBERS 
                    SUBJECT TO MANDATORY RETIREMENT OR SEPARATION.

    (a) Section 12305 Stop-Loss Authority.--Section 12305 of 
title 10, United States Code, is amended by adding at the end 
the following new subsection:
    ``(c) Upon the termination of a suspension made under the 
authority of subsection (a) of a provision of law otherwise 
requiring the separation or retirement of officers on active 
duty because of age, length of service or length of service in 
grade, or failure of selection for promotion, the Secretary 
concerned shall extend by up to 90 days the otherwise required 
separation or retirement date of any officer covered by the 
suspended provision whose separation or retirement date, but 
for the suspension, would have been before the date of the 
termination of the suspension or within 90 days after the date 
of such termination.''.
    (b) Section 123 Stop-Loss Authority.--Section 123 of such 
title is amended by adding at the end the following new 
subsection:
    ``(d) Upon the termination of a suspension made under the 
authority of subsection (a) of a provision of law otherwise 
requiring the separation or retirement of officers on active 
duty because of age, length of service or length of service in 
grade, or failure of selection for promotion, the Secretary 
concerned shall extend by up to 90 days the otherwise required 
separation or retirement date of any officer covered by the 
suspended provision whose separation or retirement date, but 
for the suspension, would have been before the date of the 
termination of the suspension or within 90 days after the date 
of such termination.''.

SEC. 509. EXEMPTION FROM CERTAIN ADMINISTRATIVE LIMITATIONS FOR RETIRED 
                    OFFICERS ORDERED TO ACTIVE DUTY AS DEFENSE OR 
                    SERVICE ATTACHES.

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

SEC. 510. OFFICER IN CHARGE OF UNITED STATES NAVY BAND.

    (a) Detail and Grade.--Section 6221 of title 10, United 
States Code, is amended to read as follows:

Sec. 6221. United States Navy Band; officer in charge

    ``(a) There is a Navy band known as the United States Navy 
Band.
    ``(b)(1) An officer of the Navy designated for limited duty 
under section 5589 or 5596 of this title who is serving in a 
grade above lieutenant may be detailed by the Secretary of the 
Navy as Officer in Charge of the United States Navy Band.
    ``(2) While serving as Officer in Charge of the United 
States Navy Band, an officer shall hold the grade of captain if 
appointed to that grade by the President, by and with the 
advice and consent of the Senate. Such an appointment may be 
made notwithstanding section 5596(d) of this title.''.
    (b) Clerical Amendment.--The item relating to such section 
in the table of sections at the beginning of chapter 565 of 
such title is amended to read as follows:

``6221. United States Navy Band; officer in charge.''.

             Subtitle B--Reserve Component Personnel Policy

SEC. 511. PLACEMENT ON ACTIVE-DUTY LIST OF CERTAIN RESERVE OFFICERS ON 
                    ACTIVE DUTY FOR A PERIOD OF THREE YEARS OR LESS.

    (a) Clarification of Exemption.--Section 641(1)(D) of title 
10, United States Code, is amended to read as follows:
                    ``(D) on active duty under section 12301(d) 
                of this title, other than as provided under 
                subparagraph (C), if the call or order to 
                active duty, under regulations prescribed by 
                the Secretary concerned, specifies a period of 
                three years or less and continued placement on 
                the reserve active-status list;''.
    (b) Retroactive Application.--(1) The Secretary of the 
military department concerned may provide that an officer who 
was excluded from the active-duty list under section 641(1)(D) 
of title 10, United States Code, as amended by section 521 of 
the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
114 Stat. 1654A-108), shall be considered to have been on the 
active-duty list during the period beginning on the date on 
which the officer was so excluded and ending on the date of the 
enactment of this Act.
    (2) The Secretary of the military department concerned may 
provide that a Reserve officer who was placed on the active-
duty list on or after October 30, 1997, shall be placed on the 
reserve active-status list if the officer otherwise meets the 
conditions specified in section 641(1)(D) of title 10, United 
States Code, as amended by subsection (a).

SEC. 512. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR APPOINTMENT 
                    OF RESERVE OFFICERS TO GRADES ABOVE FIRST 
                    LIEUTENANT.

    (a) Reauthorization of Waiver Authority for Army OCS 
Graduates and Inclusion of Certain Marine Officers.--Section 
12205 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(d) Waiver Authority for Army OCS Graduates and Certain 
Marine Corps Officers.--(1) The Secretary of the Army may waive 
the applicability of subsection (a) to any officer whose 
original appointment in the Army as a Reserve officer is 
through the Army Officer Candidate School program.
    ``(2) The Secretary of the Navy may waive the applicability 
of subsection (a) to any officer whose original appointment in 
the Marine Corps as a Reserve officer is through the Marine 
Corps meritorious commissioning program.
    ``(3) Any such waiver shall be made on a case-by-case 
basis, considering the individual circumstances of the officer 
involved, and may continue in effect for no more than two years 
after the waiver is granted. The Secretary concerned may 
provide for such a waiver to be effective before the date of 
the waiver, as appropriate in an individual case.''.
    (b) Effective Date.--Subsection (d) of section 12205 of 
title 10, United States Code, as added by subsection (a), shall 
apply with respect to officers appointed before, on, or after 
the date of the enactment of this Act.

SEC. 513. IMPROVED DISABILITY BENEFITS FOR CERTAIN RESERVE COMPONENT 
                    MEMBERS.

    (a) Medical and Dental Care.--Sections 1074a(a)(3) and 
1076(a)(2)(C) of title 10, United States Code, are each amended 
by striking ``, if the'' and all that follows through 
``member's residence''.
    (b) Eligibility for Disability Retirement or Separation.--
Sections 1204(2)(B)(iii) and 1206(2)(B)(iii) of title 10, 
United States Code, are each amended by striking ``, if the'' 
and all that follows through ``member's residence''.
    (c) Recovery, Care, and Disposition of Remains.--Section 
1481(a)(2)(D) of title 10, United States Code, is amended by 
striking ``, if the site is outside reasonable commuting 
distance from the member's residence''.
    (d) Entitlement to Basic Pay.--Subsections (g)(1)(D) and 
(h)(1)(D) of section 204 of title 37, United States Code, are 
amended by striking ``, if the site is outside reasonable 
commuting distance from the member's residence''.
    (e) Compensation for Inactive-Duty Training.--Section 
206(a)(3)(C) of title 37, United States Code, is amended by 
striking ``, if the site is outside reasonable commuting 
distance from the member's residence''.

SEC. 514. TIME-IN-GRADE REQUIREMENT FOR RESERVE COMPONENT OFFICERS 
                    RETIRED WITH A NONSERVICE CONNECTED DISABILITY.

    Section 1370(d)(3)(B) of title 10, United States Code, is 
amended to read as follows:
    ``(B) A person covered by subparagraph (A) who has 
completed at least six months of satisfactory service in grade 
may be credited with satisfactory service in the grade in which 
serving at the time of transfer or discharge, notwithstanding 
failure of the person to complete three years of service in 
that grade, if that person is transferred from an active status 
or discharged as a reserve commissioned officer--
            ``(i) solely due to the requirements of a 
        nondiscretionary provision of law requiring that 
        transfer or discharge due to the person's age or years 
        of service; or
            ``(ii) because the person no longer meets the 
        qualifications for membership in the Ready Reserve 
        solely because of a physical disability, as determined, 
        at a minimum, by a medical evaluation board and at the 
        time of such transfer or discharge such person 
        (pursuant to section 12731b of this title or otherwise) 
        meets the service requirements established by section 
        12731(a) of this title for eligibility for retired pay 
        under chapter 1223 of this title, unless the disability 
        is described in section 12731b of this title.''.

SEC. 515. EQUAL TREATMENT OF RESERVES AND FULL-TIME ACTIVE DUTY MEMBERS 
                    FOR PURPOSES OF MANAGING PERSONNEL DEPLOYMENTS.

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

SEC. 516. MODIFICATION OF PHYSICAL EXAMINATION REQUIREMENTS FOR MEMBERS 
                    OF THE INDIVIDUAL READY RESERVE.

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

SEC. 517. RETIREMENT OF RESERVE MEMBERS WITHOUT REQUIREMENT FOR FORMAL 
                    APPLICATION OR REQUEST.

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 518. SPACE-REQUIRED TRAVEL BY RESERVES ON MILITARY AIRCRAFT.

    (a) Correction of Impairment to Authorized Travel With 
Allowances.--Subsection (a) of section 18505 of title 10, 
United States Code, is amended by striking ``annual training 
duty or'' each place it appears.
    (b) Conforming Amendments.--The heading for such section, 
and the item relating to such section in the table of sections 
at the beginning of chapter 1805 of such title, are each 
amended by striking the fourth, fifth, sixth, and seventh 
words.

SEC. 519. PAYMENT OF FEDERAL EMPLOYEE HEALTH BENEFIT PROGRAM PREMIUMS 
                    FOR CERTAIN RESERVISTS CALLED TO ACTIVE DUTY IN 
                    SUPPORT OF CONTINGENCY OPERATIONS.

    (a) In General.--Subsection (e) of section 8906 of title 5, 
United States Code, is amended by adding at the end the 
following new paragraph:
    ``(3)(A) An employing agency may pay both the employee and 
Government contributions, and any additional administrative 
expenses otherwise chargeable to the employee, with respect to 
health care coverage for an employee described in subparagraph 
(B) and the family of such employee.
    ``(B) An employee referred to in subparagraph (A) is an 
employee who--
            ``(i) is enrolled in a health benefits plan under 
        this chapter;
            ``(ii) is a member of a reserve component of the 
        armed forces;
            ``(iii) is called or ordered to active duty in 
        support of a contingency operation (as defined in 
        section 101(a)(13) of title 10);
            ``(iv) is placed on leave without pay or separated 
        from service to perform active duty; and
            ``(v) serves on active duty for a period of more 
        than 30 consecutive days.
    ``(C) Notwithstanding the one-year limitation on coverage 
described in paragraph (1)(A), payment may be made under this 
paragraph for a period not to exceed 18 months.''.
    (b) Conforming Amendment.--The matter preceding paragraph 
(1) in subsection (f) of such section is amended to read as 
follows:
    ``(f) The Government contribution, and any additional 
payments under subsection (e)(3)(A), for health benefits for an 
employee shall be paid--''.
    (c) Applicability.--The amendments made by this section 
apply with respect to employees called to active duty on or 
after December 8, 1995, and an agency may make retroactive 
payments to such employees for premiums paid on or after such 
date.

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

SEC. 521. NOMINATIONS AND PROMOTIONS FOR JOINT SPECIALTY OFFICERS.

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

SEC. 522. JOINT DUTY CREDIT.

    Paragraph (4) of section 664(i) of title 10, United States 
Code, is amended--
            (1) in subparagraph (E), by striking ``The'' and 
        inserting ``Except as provided in subparagraph (F), 
        the''; and
            (2) by adding at the end the following new 
        subparagraph:
            ``(F) Service in a temporary joint task force 
        assignment not involved in combat or combat-related 
        operations may not be credited for the purposes of 
        joint duty, unless, and only if--
                    ``(i) the service of the officer and the 
                nature of the joint task force not only meet 
                all criteria of this section, except 
                subparagraph (E), but also any additional 
                criteria the Secretary may establish;
                    ``(ii) the Secretary has specifically 
                approved the operation conducted by the joint 
                task force as one that qualifies for joint 
                service credit, and notifies Congress upon each 
                approval, providing the criteria that led to 
                that approval; and
                    ``(iii) the operation is conducted by the 
                joint task force in an environment where an 
                extremely fragile state of peace and high 
                potential for hostilities coexist.''.

SEC. 523. RETROACTIVE JOINT SERVICE CREDIT FOR DUTY IN CERTAIN JOINT 
                    TASK FORCES.

    (a) Authority.--In accordance with section 664(i) of title 
10, United States Code, as amended by section 522, the 
Secretary of Defense may award joint service credit to any 
officer who served on the staff of a United States joint task 
force headquarters in an operation and during the period set 
forth in subsection (b) and who meets the criteria specified in 
such section. To determine which officers qualify for such 
retroactive credit, the Secretary shall undertake a case-by-
case review of the records of officers.
    (b) Eligible Operations.--Service in the following 
operations, during the specified periods, may be counted for 
credit under subsection (a):
            (1) Operation Northern Watch, during the period 
        beginning on August 1, 1992, and ending on a date to be 
        determined.
            (2) Operation Southern Watch, during the period 
        beginning on August 27, 1992, and ending on a date to 
        be determined.
            (3) Operation Able Sentry, during the period 
        beginning on June 26, 1993, and ending on February 28, 
        1999.
            (4) Operation Joint Endeavor, during the period 
        beginning on December 25, 1995, and ending on December 
        19, 1996.
            (5) Operation Joint Guard, during the period 
        beginning on December 20, 1996, and ending on June 20, 
        1998.
            (6) Operation Desert Thunder, beginning on January 
        24, 1998, and ending on December 15, 1998.
            (7) Operation Joint Forge, beginning on June 20, 
        1998, and ending on June 10, 1999.
            (8) Operation Noble Anvil, beginning on March 24, 
        1999, and ending on July 20, 1999.
            (9) Operation Joint Guardian, beginning on June 11, 
        1999, and ending on a date to be determined.
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report of the numbers, by service, grade, and 
operation, of the officers given joint service credit in 
accordance with this section.

SEC. 524. REVISION TO ANNUAL REPORT ON JOINT OFFICER MANAGEMENT.

    Section 667 of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``(A)'' after ``(1)''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(B) The number of officers who meet the criteria 
        for selection for the joint specialty but were not 
        selected, together with the reasons why.'';
            (2) by amending paragraph (2) to read as follows:
            ``(2) The number of officers with the joint 
        specialty, shown by grade and branch or specialty and 
        by education.'';
            (3) in paragraph (3)--
                    (A) in subparagraph (A) and (B), by 
                striking ``nominated'' and inserting 
                ``selected'';
                    (B) by inserting ``and'' at the end of 
                subparagraph (D);
                    (C) by striking subparagraph (E); and
                    (D) by redesignating subparagraph (F) as 
                subparagraph (E);
            (4) in paragraph (4)(A), by striking ``nominated'' 
        and inserting ``selected'';
            (5) in paragraph (14)--
                    (A) by inserting ``(A)'' after ``(14)''; 
                and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(B) An assessment of the extent to which the 
        Secretary of each military department is assigning 
        personnel to joint duty assignments in accordance with 
        this chapter and the policies, procedures, and 
        practices established by the Secretary of Defense under 
        section 661(a) of this title.''; and
            (6) in paragraph (16), by striking ``section 
        664(i)'' in the matter preceding subparagraph (A) and 
        in subparagraph (B) and inserting ``subparagraphs (E) 
        and (F) of section 664(i)(4)''.

SEC. 525. REQUIREMENT FOR SELECTION FOR JOINT SPECIALTY BEFORE 
                    PROMOTION TO GENERAL OR FLAG OFFICER GRADE.

    (a) Requirement.--Subsection (a) of section 619a of title 
10, United States Code, is amended by striking ``unless'' and 
all that follows and inserting ``unless--
            ``(1) the officer has completed a full tour of duty 
        in a joint duty assignment (as described in section 
        664(f) of this title); and
            ``(2) for appointments after September 30, 2007, 
        the officer has been selected for the joint specialty 
        in accordance with section 661 of this title.''.
    (b) Waiver Authority.--Subsection (b) of that section is 
amended by striking ``may waive subsection (a) in the following 
circumstances:'' and inserting ``may waive paragraph (1) or 
paragraph (2) of subsection (a), or both paragraphs (1) and (2) 
of subsection (a), in the following circumstances:''.
    (c) Proposed Legislative Changes.--Not later than December 
1, 2002, the Secretary of Defense shall submit to Congress a 
draft proposal for such legislative changes as the Secretary 
considers needed to implement the amendment made by subsections 
(a) and (b).

SEC. 526. INDEPENDENT STUDY OF JOINT OFFICER MANAGEMENT AND JOINT 
                    PROFESSIONAL MILITARY EDUCATION REFORMS.

    (a) Study.--The Secretary of Defense shall provide for an 
independent study of the joint officer management system and 
the joint professional military education system. The Secretary 
shall ensure that the entity conducting the study is provided 
such information and support as required. The Secretary shall 
include in the contract for the study a requirement that the 
entity conducting the study submit a report to Congress on the 
study not later than one year after the date of the enactment 
of this Act.
    (b) Matters To Be Included With Respect to Joint Officer 
Management.--With respect to the joint officer management 
system, the entity conducting the independent study shall 
provide for the following:
            (1) Assessment of implications for joint officer 
        education, development, and management that would 
        result from proposed joint organizational operational 
        concepts (such as standing joint task forces) and from 
        emerging officer management and personnel reforms (such 
        as longer careers and more stabilization), that are 
        under consideration by the Secretary of Defense.
            (2) Assessment of the effectiveness of the current 
        joint officer management system to develop and use 
        joint specialty qualified officers in meeting both 
        current and future requirements for joint specialty 
        officers.
            (3) Recommendations, based on empirical and other 
        data, to improve the effectiveness of the joint officer 
        management system, especially with regard to the 
        following:
                    (A) The proper mix and sequencing of 
                education assignments and experience 
                assignments (to include, with respect to both 
                types of assignments, consideration of the type 
                and quality, and the length, of such 
                assignments) to qualify an officer as a joint 
                specialty officer, as well as the implications 
                of adopting a variable joint duty tour length 
                and the advisability and implications of a 
                system of qualifying officers as joint 
                specialty officers that uses multiple shorter 
                qualification tracks to selection as a joint 
                specialty officer than are now codified.
                    (B) The system of using joint specialty 
                officers, including the continued utility of 
                such measures as--
                            (i) the required fill of positions 
                        on the joint duty assignment list, as 
                        specified in paragraphs (1) and (4) of 
                        section 661(d) of title 10, United 
                        States Code;
                            (ii) the fill by such officers of a 
                        required number of critical billets, as 
                        prescribed by section 661(d)(2) of such 
                        title;
                            (iii) the mandated fill by general 
                        and flag officers of a minimum number 
                        of critical billets, as prescribed by 
                        section 661(d)(3) of such title; and
                            (iv) current promotion policy 
                        objectives for officers with the joint 
                        specialty, officers serving on the 
                        Joint Staff, and officers serving in 
                        joint duty assignment list positions, 
                        as prescribed by section 662 of such 
                        title.
                    (C) Changes in policy and law required to 
                provide officers the required joint specialty 
                qualification before promotion to general or 
                flag officer grade.
                    (D) A determination of the number of 
                reserve component officers who would be 
                qualified for designation as a joint specialty 
                officer by reason of experience or education if 
                the standards of existing law, including waiver 
                authorities, were applied to them, and 
                recommendations for a process for qualifying 
                and employing future reserve component officers 
                as joint specialty officers.
    (c) Matters To Be Included With Respect to Joint 
Professional Military Education.--With respect to the joint 
professional military education system, the entity conducting 
the independent study shall provide for the following:
            (1) The number of officers who under the current 
        system (A) qualified as joint specialty officers by 
        attending joint professional military education 
        programs before their first joint duty assignment, (B) 
        qualified as joint specialty officers after arriving at 
        their first joint duty assignment but before completing 
        that assignment, and (C) qualified as joint specialty 
        officers without any joint professional military 
        education.
            (2) Recommended initiatives (include changes in 
        officer personnel management law, if necessary) to 
        provide incentives and otherwise facilitate attendance 
        at joint professional military education programs 
        before an officer's first joint duty assignment.
            (3) Recommended goals for attendance at the Joint 
        Forces Staff College en route to a first joint duty 
        assignment.
            (4) An assessment of the continuing utility of 
        statutory requirements for use of officers following 
        joint professional military education, as prescribed by 
        section 662(d) of title 10, United States Code.
            (5) Determination of whether joint professional 
        military education programs should remain principally 
        an in-resident, multi-service experience and what role 
        non-resident or distributive learning can or should 
        play in future joint professional military education 
        programs.
            (6) Examination of options for the length of and 
        increased capacity at Joint Forces Staff College, and 
        whether other in-resident joint professional military 
        education sources should be opened, and if opened, how 
        they might be properly accredited and overseen to 
        provide instruction at the level of the program 
        designated as ``joint professional military 
        education''.
    (d) Chairman of Joint Chiefs of Staff.--With respect to the 
roles of the Secretary of Defense and the Chairman of the Joint 
Chiefs of Staff, the entity conducting the independent study 
shall--
            (1) provide for an evaluation of the current roles 
        of the Secretary of Defense, the Chairman of the Joint 
        Chiefs of Staff, and joint staff in law, policy, and 
        implementation with regard to establishing and 
        maintaining oversight of joint officer management, 
        career guidelines, and joint professional military 
        education; and
            (2) make recommendations to improve and strengthen 
        those roles.
    (e) Requirements for Study Entity.--In providing for the 
independent study required by subsection (a), the Secretary of 
Defense shall ensure that the entity conducting the study--
            (1) is not a Department of Defense organization; 
        and
            (2) shall, at a minimum, involve in the study, in 
        an integral way, the following persons:
                    (A) The Chairman of the Joint Chiefs of 
                Staff and available former Chairmen of the 
                Joint Chiefs of Staff.
                    (B) Members and former members of the Joint 
                Staff, the Armed Forces, the Congress, and 
                congressional staff who are or who have been 
                significantly involved in the development, 
                implementation, or modification of joint 
                officer management and joint professional 
                military education.
                    (C) Experts in joint officer management and 
                education from civilian academic and research 
                centers.

SEC. 527. PROFESSIONAL DEVELOPMENT EDUCATION.

    (a) Executive Agent for Funding.--(1) Effective beginning 
with fiscal year 2003, the Secretary of Defense shall be the 
executive agent for funding professional development education 
operations of all components of the National Defense 
University, including the Joint Forces Staff College. The 
Secretary may not delegate the Secretary's functions and 
responsibilities under the preceding sentence to the Secretary 
of a military department.
    (2) Nothing in this subsection affects policies in effect 
on the date of the enactment of this Act with respect to--
            (A) the reporting of the President of the National 
        Defense University to the Chairman of the Joint Chiefs 
        of Staff; or
            (B) provision of logistical and base operations 
        support for components of the National Defense 
        University by the military departments.
    (b) Preparation of Budget Requests.--Section 2162(b) of 
title 10, United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph 
        (3); and
            (2) by inserting after paragraph (1) the following 
        new paragraph:
    ``(2) As executive agent for funding professional 
development education at the National Defense University, 
including the Joint Forces Staff College, the Secretary of 
Defense, with the advice of the Chairman of the Joint Chiefs of 
Staff, shall prepare the annual budget for professional 
development education operations at the National Defense 
University and set forth that request as a separate budget 
request in the materials submitted to Congress in support of 
the budget request for the Department of Defense. Nothing in 
the preceding sentence affects policies in effect on the date 
of the enactment of this paragraph with respect to budgeting 
for the funding of logistical and base operations support for 
components of the National Defense University through the 
military departments.''.
    (c) Funding Source.--(1) Section 2165 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(d) Source of Funds for Professional Development 
Education Operations.--Funding for the professional development 
education operations of the National Defense University shall 
be provided from funds made available to the Secretary of 
Defense from the annual appropriation `Operation and 
Maintenance, Defense-wide'.''.
    (2) Subsection (d) of section 2165 of title 10, United 
States Code, as added by paragraph (1), shall become effective 
beginning with fiscal year 2003.

SEC. 528. AUTHORITY FOR NATIONAL DEFENSE UNIVERSITY TO ENROLL CERTAIN 
                    PRIVATE SECTOR CIVILIANS.

    (a) In General.--(1) Chapter 108 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

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

    ``(a) Authority for Admission.--The Secretary of Defense 
may permit eligible private sector employees who work in 
organizations relevant to national security to receive 
instruction at the National Defense University in accordance 
with this section. No more than the equivalent of 10 full-time 
student positions may be filled at any one time by private 
sector employees enrolled under this section. Upon successful 
completion of the course of instruction in which enrolled, any 
such private sector employee may be awarded an appropriate 
diploma or degree under section 2165 of this title.
    ``(b) Eligible Private Sector Employees.--For purposes of 
this section, an eligible private sector employee is an 
individual employed by a private firm that is engaged in 
providing to the Department of Defense or other Government 
departments or agencies significant and substantial defense-
related systems, products, or services or whose work product is 
relevant to national security policy or strategy. A private 
sector employee admitted for instruction at the National 
Defense University remains eligible for such instruction only 
so long as that person remains employed by the same firm.
    ``(c) Annual Certification by Secretary of Defense.--
Private sector employees may receive instruction at the 
National Defense University during any academic year only if, 
before the start of that academic year, the Secretary of 
Defense determines, and certifies to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives, that providing instruction to 
private sector employees under this section during that year 
will further national security interests of the United States.
    ``(d) Program Requirements.--The Secretary of Defense shall 
ensure that--
            ``(1) the curriculum for the professional military 
        education program in which private sector employees may 
        be enrolled under this section is not readily available 
        through other schools and concentrates on national 
        security relevant issues; and
            ``(2) the course offerings at the National Defense 
        University continue to be determined solely by the 
        needs of the Department of Defense.
    ``(e) Tuition.--The President of the National Defense 
University shall charge students enrolled under this section a 
rate--
            ``(1) that is at least the rate charged for 
        employees of the United States outside the Department 
        of Defense, less infrastructure costs, and
            ``(2) that considers the value to the school and 
        course of the private sector student.
    ``(f) Standards of Conduct.--While receiving instruction at 
the National Defense University, students enrolled under this 
section, to the extent practicable, are subject to the same 
regulations governing academic performance, attendance, norms 
of behavior, and enrollment as apply to Government civilian 
employees receiving instruction at the university.
    ``(g) Use of Funds.--Amounts received by the National 
Defense University for instruction of students enrolled under 
this section shall be retained by the university to defray the 
costs of such instruction. The source, and the disposition, of 
such funds shall be specifically identified in records of the 
university.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

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

    (b) Effective Date.--Section 2167 of title 10, United 
States Code, as added by subsection (a), shall take effect on 
January 1, 2002.

SEC. 529. CONTINUATION OF RESERVE COMPONENT PROFESSIONAL MILITARY 
                    EDUCATION TEST.

    (a) Continuation of Concept Validation Test.--During fiscal 
year 2002, the Secretary of Defense shall continue the concept 
validation test of Reserve component joint professional 
military education that was begun in fiscal year 2001 at the 
National Defense University.
    (b) Pilot Program.--If the Secretary of Defense determines 
that the results of the concept validation test referred to in 
subsection (a) warrant conducting a pilot program of the 
concept that was the subject of the test, the Secretary shall 
conduct such a pilot program during fiscal year 2003.
    (c) Funding.--The Secretary shall provide funds for the 
concept validation test under subsection (a) and for any pilot 
program under subsection (b) from funds appropriated to the 
Secretary of Defense in addition those appropriated for 
operations of the National Defense University.

              Subtitle D--Military Education and Training

SEC. 531. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER.

    (a) Authority To Confer Associate of Arts Degree.--Chapter 
108 of title 10, United States Code, is amended by adding after 
section 2167, as added by section 528(a)(1), the following new 
section:

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

    ``(a) Subject to subsection (b), the Commandant of the 
Defense Language Institute may confer an Associate of Arts 
degree in a foreign language upon any graduate of the Foreign 
Language Center of the Institute who fulfills the requirements 
for that degree.
    ``(b) A degree may be conferred upon a student under this 
section only if the Provost of the Center certifies to the 
Commandant that the student has satisfied all the requirements 
prescribed for the degree.
    ``(c) The authority provided by subsection (a) shall be 
exercised under regulations prescribed by the Secretary of 
Defense.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding after the item 
relating to section 2167, as added by section 528(a)(2), the 
following new item:

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

SEC. 532. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD DEGREE OF 
                    MASTER OF STRATEGIC STUDIES.

    (a) Marine Corps War College Degree.--Section 7102 of title 
10, United States Code, is amended--
            (1) by redesignating subsection (b) as subsection 
        (c); and
            (2) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) Marine Corps War College.--Upon the recommendation of 
the Director and faculty of the Marine Corps War College of the 
Marine Corps University, the President of the Marine Corps 
University may confer the degree of master of strategic studies 
upon graduates of the Marine Corps War College who fulfill the 
requirements for that degree.''.
    (b) Conforming Amendments.--(1) Subsection (a) of such 
section is amended by striking ``upon graduates'' and all that 
follows and inserting ``upon graduates of the Command and Staff 
College who fulfill the requirements for that degree.''.
    (2) Subsection (c) of such section, as redesignated by 
subsection (a)(1), is amended by striking ``subsection (a)'' 
and inserting ``subsections (a) and (b)''.
    (3)(A) The heading of such section is amended to read as 
follows:

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

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

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

    (c) Codification of Requirement for Board of Advisors.--(1) 
Section 7102 of title 10, United States Code, as amended by 
subsections (a) and (b), is further amended by adding at the 
end the following new subsection:
    ``(d) Board of Advisors.--The Secretary of the Navy shall 
establish a board of advisors for the Marine Corps University. 
The Secretary shall ensure that the board is established so as 
to meet all requirements of the appropriate regional 
accrediting association.''.
    (2) Section 912 of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 7102 note) 
is repealed.
    (d) Effective Date.--The authority to confer the degree of 
master of strategic studies under section 7102(b) of title 10, 
United States Code (as added by subsection (a)) may not be 
exercised until the Secretary of Education determines, and 
certifies to the President of the Marine Corps University, that 
the requirements established by the Marine Corps War College of 
the Marine Corps University for that degree are in accordance 
with generally applicable requirements for a degree of master 
of arts. Upon receipt of such a certification, the President of 
the University shall promptly transmit a copy of the 
certification to the Committee on Armed Services of the Senate 
and Committee on Armed Services of the House of 
Representatives.

SEC. 533. FOREIGN STUDENTS ATTENDING THE SERVICE ACADEMIES.

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

SEC. 534. INCREASE IN MAXIMUM AGE FOR APPOINTMENT AS A CADET OR 
                    MIDSHIPMAN IN SENIOR RESERVE OFFICERS' TRAINING 
                    CORPS SCHOLARSHIP PROGRAMS.

    (a) General ROTC Scholarship Program.--Section 2107(a) of 
title 10, United States Code, is amended--
            (1) by striking ``27 years of age on June 30'' and 
        inserting ``31 years of age on December 31''; and
            (2) by striking ``, except that'' and all that 
        follows through ``on such date'' the second place it 
        appears.
    (b) Army Reserve and Army National Guard ROTC Scholarship 
Program.--Section 2107a(a)(1) of such title is amended--
            (1) by striking ``27 years of age on June 30'' and 
        inserting ``31 years of age on December 31''; and
            (2) by striking ``, except that'' and all that 
        follows through ``on such date'' the second place it 
        appears.

SEC. 535. PARTICIPATION OF REGULAR ENLISTED MEMBERS OF THE ARMED FORCES 
                    IN SENIOR RESERVE OFFICERS' TRAINING CORPS PROGRAM.

    (a) Eligibility.--Section 2104(b)(3) of title 10, United 
States Code, is amended by striking ``a reserve component of''.
    (b) Pay Rate While on Field Training or Practice Cruise.--
Section 209(c) of title 37, United States Code, is amended by 
inserting before the period at the end the following: ``, 
except that the rate for a cadet or 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''.

SEC. 536. AUTHORITY TO MODIFY THE SERVICE OBLIGATION OF CERTAIN ROTC 
                    CADETS IN MILITARY JUNIOR COLLEGES RECEIVING 
                    FINANCIAL ASSISTANCE.

    (a) Authority To Modify Agreements.--Subsection (b) of 
section 2107a of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by redesignating paragraphs (1), (2), (3), (4), 
        (5), and (6) as subparagraphs (A), (B), (C), (D), (E), 
        and (F), respectively;
            (3) by designating the sentence following 
        subparagraph (F), as so redesignated, as paragraph (2); 
        and
            (4) by adding at the end the following new 
        paragraph:
    ``(3) In the case of a cadet under this section at a 
military junior college, the Secretary may, at any time and 
with the consent of the cadet concerned, modify an agreement 
described in paragraph (1)(F) submitted by the cadet to reduce 
or eliminate the troop program unit service obligation 
specified in the agreement and to establish, in lieu of that 
obligation, an active duty service obligation. Such a 
modification may be made only if the Secretary determines that 
it is in the best interests of the United States to do so.''.
    (b) Retroactive Application.--The authority of the 
Secretary of Defense under paragraph (3) of section 2107a(b) of 
title 10, United States Code, as added by subsection (a), may 
be exercised with regard to any agreement described in 
paragraph (1)(F) of such section (including agreements related 
to participation in the Advanced Course of the Army Reserve 
Officers' Training Corps at a military college or civilian 
institution) that was entered into during the period beginning 
on January 1, 1991, and ending on July 12, 2000 (in addition to 
any agreement described in that paragraph that is entered into 
on or after the date of the enactment of this Act).
    (c) Technical Amendment.--Subsection (h) of such section is 
amended by striking ``military college'' in the second sentence 
and inserting ``military junior college''.

SEC. 537. REPEAL OF LIMITATION ON NUMBER OF JUNIOR RESERVE OFFICERS' 
                    TRAINING CORPS UNITS.

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

SEC. 538. MODIFICATION OF NURSE OFFICER CANDIDATE ACCESSION PROGRAM 
                    RESTRICTION ON STUDENTS ATTENDING EDUCATIONAL 
                    INSTITUTIONS WITH SENIOR RESERVE OFFICERS' TRAINING 
                    PROGRAMS.

    Section 2130a of title 10, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``that does 
        not have a Senior Reserve Officers' Training Program 
        established under section 2102 of this title''; and
            (2) in subsection (b)(1), by inserting before the 
        semicolon at the end ``or that has a Senior Reserve 
        Officers' Training Program for which the student is 
        ineligible''.

SEC. 539. RESERVE HEALTH PROFESSIONALS STIPEND PROGRAM EXPANSION.

    (a) Purpose of Program.--Subsection (a) of section 16201 of 
title 10, United States Code, is amended--
            (1) by striking ``specialties critically needed in 
        wartime'';
            (2) by striking ``training in such specialties'' 
        and inserting ``training that leads to a degree in 
        medicine or dentistry or training in a health 
        professions specialty that is critically needed in 
        wartime''; and
            (3) by striking ``training in certain health care 
        specialties'' and inserting ``health care education and 
        training''.
    (b) Medical and Dental Student Stipend.--Such section is 
further amended--
            (1) by redesignating subsections (b), (c), (d), and 
        (e) as subsections (c), (d), (e), and (f), 
        respectively; and
            (2) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) Medical and Dental School Students.--(1) Under the 
stipend program under this chapter, the Secretary of the 
military department concerned may enter into an agreement with 
a person who--
            ``(A) is eligible to be appointed as an officer in 
        a reserve component;
            ``(B) is enrolled or has been accepted for 
        enrollment in an institution in a course of study that 
        results in a degree in medicine or dentistry;
            ``(C) signs an agreement that, unless sooner 
        separated, the person will--
                    ``(i) complete the educational phase of the 
                program;
                    ``(ii) accept a reappointment or 
                redesignation within the person's reserve 
                component, if tendered, based upon the person's 
                health profession, following satisfactory 
                completion of the educational and intern 
                programs; and
                    ``(iii) participate in a residency program; 
                and
            ``(D) if required by regulations prescribed by the 
        Secretary of Defense, agrees to apply for, if eligible, 
        and accept, if offered, residency training in a health 
        profession skill which has been designated by the 
        Secretary of Defense as a critically needed wartime 
        skill.
    ``(2) Under the agreement--
            ``(A) the Secretary of the military department 
        concerned shall agree to pay the participant a stipend, 
        in the amount determined under subsection (f), for the 
        period or the remainder of the period that the student 
        is satisfactorily progressing toward a degree in 
        medicine or dentistry while enrolled in an accredited 
        medical or dental school;
            ``(B) the participant shall not be eligible to 
        receive such stipend before appointment, designation, 
        or assignment as an officer for service in the Ready 
        Reserve;
            ``(C) the participant shall be subject to such 
        active duty requirements as may be specified in the 
        agreement and to active duty in time of war or national 
        emergency as provided by law for members of the Ready 
        Reserve; and
            ``(D) the participant shall agree to serve in the 
        Selected Reserve, upon successful completion of the 
        program, for the period of service applicable under 
        paragraph (3).
    ``(3)(A) Subject to subparagraph (B), the period for which 
a participant is required to serve in the Selected Reserve 
under the agreement pursuant to paragraph (2)(D) shall be one 
year for each period of six months, or part thereof, for which 
the participant is provided a stipend pursuant to the 
agreement.
    ``(B) In the case of a participant who enters into a 
subsequent agreement under subsection (c) and successfully 
completes residency training in a specialty designated by the 
Secretary of Defense as a specialty critically needed by the 
military department in wartime, the requirement to serve in the 
Selected Reserve may be reduced to one year for each year, or 
part thereof, for which the stipend was provided while enrolled 
in medical or dental school.''.
    (c) Wartime Critical Skills.--Subsection (c) of such 
section (as redesignated by subsection (b)(1)) is amended--
            (1) by inserting ``Wartime'' after ``Critical'' in 
        the heading; and
            (2) by inserting ``or has been appointed as a 
        medical or dental officer in the Reserve of the armed 
        force concerned'' in paragraph (1)(B) before the 
        semicolon at the end.
    (d) Service Obligation Requirement.--Paragraph (2)(D) of 
subsection (c) of such section (as redesignated by subsection 
(b)(1)) and paragraph (2)(D) of subsection (d) of such section 
(as so redesignated) are amended by striking ``two years in the 
Ready Reserve for each year,'' and inserting ``one year in the 
Ready Reserve for each six months,''.
    (e) Cross-Reference.--Paragraph (2)(A) of subsection (c) of 
such section (as redesignated by subsection (b)(1)) and 
paragraph (2)(A) of subsection (d) of such section (as so 
redesignated) are amended by striking ``subsection (e)'' and 
inserting ``subsection (f)''.

SEC. 540. HOUSING ALLOWANCE FOR THE CHAPLAIN FOR THE CORPS OF CADETS AT 
                    THE UNITED STATES MILITARY ACADEMY.

    (a) Authority.--The second sentence of section 4337 of 
title 10, United States Code, is amended by striking ``the same 
allowances'' and all that follows through ``captain'' and 
inserting ``a monthly housing allowance in the same amount as 
the basic allowance for housing allowed to a lieutenant 
colonel''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on the first day of the first month beginning 
on or after the date of the enactment of this Act.

             Subtitle E--Recruiting and Accession Programs

SEC. 541. 18-MONTH ENLISTMENT PILOT PROGRAM.

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

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

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

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

    (b) Implementation Report.--The Secretary of the Army shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a 
report on the Secretary's plan for implementation of section 
3264 of title 10, United States Code, as added by subsection 
(a). Such report shall be submitted not later than March 1, 
2002.

SEC. 542. IMPROVED BENEFITS UNDER THE ARMY COLLEGE FIRST PROGRAM.

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

SEC. 543. CORRECTION AND EXTENSION OF CERTAIN ARMY RECRUITING PILOT 
                    PROGRAM AUTHORITIES.

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

SEC. 544. MILITARY RECRUITER ACCESS TO SECONDARY SCHOOL STUDENTS.

    (a) Access to Secondary Schools.--Paragraph (1) of section 
503(c) of title 10, United States Code, is amended to read as 
follows:
    ``(c) Access to Secondary Schools.--(1)(A) Each local 
educational agency receiving assistance under the Elementary 
and Secondary Education Act of 1965--
            ``(i) shall provide to military recruiters the same 
        access to secondary school students as is provided 
        generally to postsecondary educational institutions or 
        to prospective employers of those students; and
            ``(ii) shall, upon a request made by military 
        recruiters for military recruiting purposes, provide 
        access to secondary school student names, addresses, 
        and telephone listings, notwithstanding section 
        444(a)(5)(B) of the General Education Provisions Act 
        (20 U.S.C. 1232g(a)(5)(B)).
    ``(B) A local educational agency may not release a 
student's name, address, and telephone listing under 
subparagraph (A)(ii) without the prior written consent of a 
parent of the student if the student, or a parent of the 
student, has submitted a request to the local educational 
agency that the student's information not be released for a 
purpose covered by that subparagraph without prior written 
parental consent. Each local education agency shall notify 
parents of the rights provided under the preceding sentence.''.
    (b) Effective Date.--The amendment made by subsections (a) 
shall take effect on July 1, 2002, immediately after the 
amendment to section 503(c) of title 10, United States Code, 
made, effective that date, by section 563(a) of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-
131).
    (c) Notification.--The Secretary of Education shall provide 
to local educational agencies notice of the provisions of 
subsection (c) of section 503 of title 10, United States Code, 
as in effect upon the amendments made by subsection (a). Such 
notice shall be provided not later than 120 days after the date 
of the enactment of this Act and shall be provided in 
consultation with the Secretary of Defense.

SEC. 545. PERMANENT AUTHORITY FOR USE OF MILITARY RECRUITING FUNDS FOR 
                    CERTAIN EXPENSES AT DEPARTMENT OF DEFENSE 
                    RECRUITING FUNCTIONS.

    (a) Repeal of Termination Provision.--Section 520c of title 
10, United States Code, is amended by striking subsection (c).
    (b) Technical Amendments.--Subsection (a) of such section 
is amended--
            (1) in paragraph (4), by striking ``recruiting 
        events'' and inserting ``recruiting functions''; and
            (2) in paragraph (5), by striking ``recruiting 
        efforts'' the first place it appears and inserting 
        ``recruiting functions''.

SEC. 546. REPORT ON HEALTH AND DISABILITY BENEFITS FOR PRE-ACCESSION 
                    TRAINING AND EDUCATION PROGRAMS.

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

      Subtitle F--Decorations, Awards, and Posthumous Commissions

SEC. 551. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO HUMBERT R. 
                    VERSACE, JON E. SWANSON, AND BEN L. SALOMON FOR 
                    VALOR.

    (a) Waiver of Time Limitations.--Notwithstanding the time 
limitations specified in section 3744 of title 10, United 
States Code, or any other time limitation with respect to the 
awarding of certain medals to persons who served in the 
military service, the President may award the Medal of Honor 
under section 3741 of that title to any of the persons named in 
subsections (b), (c), and (d) for the acts of valor referred to 
in those respective subsections.
    (b) Humbert R. Versace.--Subsection (a) applies with 
respect to Humbert R. Versace, for conspicuous acts of 
gallantry and intrepidity at the risk of his life and beyond 
the call of duty between October 29, 1963, and September 26, 
1965, while interned as a prisoner of war by the Vietnamese 
Communist National Liberation Front (Viet Cong) in the Republic 
of Vietnam.
    (c) Jon E. Swanson.--Subsection (a) applies with respect to 
Jon E. Swanson, for conspicuous acts of gallantry and 
intrepidity at the risk of his life and beyond the call of duty 
on February 26, 1971, while piloting a Scout helicopter on a 
close-support reconnaissance mission in support of the Army of 
the Republic of Vietnam Task Force 333 in the Kingdom of 
Cambodia.
    (d) Ben L. Salomon.--Subsection (a) applies with respect to 
Ben L. Salomon, for conspicuous acts of gallantry and 
intrepidity at the risk of his life and beyond the call of duty 
on July 7, 1944, while defending the soldiers under his care as 
the Surgeon, 2d Battalion, 105th Infantry Regiment, 27th 
Infantry Division against an overwhelming enemy force at 
Saipan, Marianas Islands.

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

    (a) Review Required.--The Secretary of each military 
department shall review the service records of each Jewish 
American war veteran or Hispanic American war veteran described 
in subsection (b) to determine whether that veteran should be 
awarded the Medal of Honor.
    (b) Covered Jewish American War Veterans and Hispanic 
American War Veterans.--The Jewish American war veterans and 
Hispanic American war veterans whose service records are to be 
reviewed under subsection (a) are the following:
            (1) Any Jewish American war veteran or Hispanic 
        American war veteran who was awarded the Distinguished 
        Service Cross, the Navy Cross, or the Air Force Cross 
        before the date of the enactment of this Act.
            (2) Any other Jewish American war veteran or 
        Hispanic American war veteran whose name is submitted 
        to the Secretary concerned for such purpose before the 
        end of the one-year period beginning on the date of the 
        enactment of this Act.
    (c) Consultations.--In carrying out the review under 
subsection (a), the Secretary of each military department shall 
consult with the Jewish War Veterans of the United States of 
America and with such other veterans service organizations as 
the Secretary considers appropriate.
    (d) Recommendation Based on Review.--If the Secretary 
concerned determines, based upon the review under subsection 
(a) of the service records of any Jewish American war veteran 
or Hispanic American war veteran, that the award of the Medal 
of Honor to that veteran is warranted, the Secretary shall 
submit to the President a recommendation that the President 
award the Medal of Honor to that veteran.
    (e) Authority To Award Medal of Honor.--A Medal of Honor 
may be awarded to a Jewish American war veteran or Hispanic 
American war veteran in accordance with a recommendation of the 
Secretary concerned under subsection (d).
    (f) Waiver of Time Limitations.--An award of the Medal of 
Honor may be made under subsection (e) without regard to--
            (1) section 3744, 6248, or 8744 of title 10, United 
        States Code, as applicable; and
            (2) any regulation or other administrative 
        restriction on--
                    (A) the time for awarding the Medal of 
                Honor; or
                    (B) the awarding of the Medal of Honor for 
                service for which a Distinguished Service 
                Cross, Navy Cross, or Air Force Cross has been 
                awarded.
    (g) Definition.--For purposes of this section, the term 
``Jewish American war veteran'' means any person who served in 
the Armed Forces during World War II or a later period of war 
and who identified himself or herself as Jewish on his or her 
military personnel records.

SEC. 553. AUTHORITY TO ISSUE DUPLICATE MEDALS OF HONOR AND TO REPLACE 
                    STOLEN MILITARY DECORATIONS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (2) Section 501 of such title is amended by inserting 
``stolen,'' before ``lost,''.
    (e) Definition of Medal of Honor for Purposes of Federal 
Unauthorized-Use Crime.--Section 704(b)(2)(B) of title 18, 
United States Code, is amended to read as follows:
            ``(B) As used in this subsection, `Congressional 
        Medal of Honor' means--
                    ``(i) a medal of honor awarded under 
                section 3741, 6241, or 8741 of title 10 or 
                section 491 of title 14;
                    ``(ii) a duplicate medal of honor issued 
                under section 3754, 6256, or 8754 of title 10 
                or section 504 of title 14; or
                    ``(iii) a replacement of a medal of honor 
                provided under section 3747, 6253, or 8747 of 
                title 10 or section 501 of title 14.''.

SEC. 554. RETROACTIVE MEDAL OF HONOR SPECIAL PENSION.

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

SEC. 555. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
                    TO CERTAIN PERSONS.

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

SEC. 556. SENSE OF CONGRESS ON ISSUANCE OF CERTAIN MEDALS.

    It is the sense of Congress that the Secretary of Defense 
should consider authorizing--
            (1) the issuance of a campaign medal, to be known 
        as the Korea Defense Service Medal, to each person who 
        while a member of the Armed Forces served in the 
        Republic of Korea, or the waters adjacent thereto, 
        during the period beginning on July 28, 1954, and 
        ending on such date thereafter as the Secretary 
        considers appropriate;
            (2) the issuance of a campaign medal, to be known 
        as the Cold War Service Medal, to each person who while 
        a member of the Armed Forces served satisfactorily on 
        active duty during the Cold War; and
            (3) the award of the Vietnam Service Medal to any 
        member or former member of the Armed Forces who was 
        awarded the Armed Forces Expeditionary Medal for 
        participation in military operations designated as 
        Operation Frequent Wind arising from the evacuation of 
        Vietnam on April 29 and 30, 1975.

SEC. 557. SENSE OF CONGRESS ON DEVELOPMENT OF A MORE COMPREHENSIVE, 
                    UNIFORM POLICY FOR THE AWARD OF DECORATIONS TO 
                    MILITARY AND CIVILIAN PERSONNEL OF THE DEPARTMENT 
                    OF DEFENSE.

    (a) Findings.--Congress makes the following findings:
            (1) The role and importance of civilian nationals 
        of the United States as Federal employees and 
        contractors in support of operations of the Armed 
        Forces worldwide has continued to expand.
            (2) The expanded role performed by those civilians, 
        both in the United States and overseas, has greatly 
        increased the risk to those civilians of injury and 
        death from hostile actions taken against United States 
        Armed Forces, as demonstrated by the terrorist attack 
        on the Pentagon on September 11, 2001, in which scores 
        of Department of Defense civilian and contractor 
        personnel were killed or wounded.
            (3) On September 20, 2001, the Deputy Secretary of 
        Defense approved the creation of a new award, a medal 
        for the defense of freedom, to be awarded to civilians 
        employed by the Department of Defense who are killed or 
        wounded as a result of hostile action and at the same 
        time directed that a comprehensive review be conducted 
        to develop a more uniform approach to the award of 
        decorations to military and civilian personnel of the 
        Department of Defense.
    (b) Commendation of Creation of New Award.--Congress 
commends the decision announced by the Deputy Secretary of 
Defense on September 20, 2001, to approve the creation of a new 
award, a medal for the defense of freedom, to be awarded to 
civilians employed by the Department of Defense who are killed 
or wounded as a result of hostile action.
    (c) Sense of Congress.--It is the sense of Congress that 
the Secretary of Defense should act expeditiously to develop a 
more comprehensive, uniform policy for the award of decorations 
to military and civilian personnel of the Department of 
Defense.

SEC. 558. POSTHUMOUS ARMY COMMISSION IN THE GRADE OF CAPTAIN IN THE 
                    CHAPLAINS CORPS TO ELLA E. GIBSON FOR SERVICE AS 
                    CHAPLAIN OF THE FIRST WISCONSIN HEAVY ARTILLERY 
                    REGIMENT DURING THE CIVIL WAR.

    The President is authorized and requested to posthumously 
appoint Ella E. Gibson to the grade of captain in the Chaplains 
Corps of the Army, the commission to issue as of the date of 
her appointment as chaplain to the First Wisconsin Heavy 
Artillery regiment during the Civil War and to be considered to 
have been in effect during the time during which she faithfully 
performed the services of a chaplain to that regiment and for 
which Congress by law (Private Resolution 31 of the 40th 
Congress, approved March 3, 1869) previously provided for her 
to be paid the full pay and emoluments of a chaplain in the 
United States Army as if she had been regularly commissioned 
and mustered into service.

                    Subtitle G--Funeral Honors Duty

SEC. 561. PARTICIPATION OF MILITARY RETIREES IN FUNERAL HONORS DETAILS.

    (a) Authority.--Subsection (b)(2) of section 1491 of title 
10, United States Code, is amended--
            (1) in the first sentence, by inserting ``(other 
        than members in a retired status)'' after ``members of 
        the armed forces''; and
            (2) in the second sentence, by inserting 
        ``(including members in a retired status),'' after 
        ``members of the armed forces''.
    (b) Funeral Honors Duty Allowance.--Section 435(a) of title 
37, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a) Allowance 
        Authorized.--''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The Secretary concerned may also authorize payment of 
that allowance to a member of the armed forces in a retired 
status for any day on which the member serves in a funeral 
honors detail under section 1491 of title 10, if the time 
required for service in such detail (including time for 
preparation) is not less than two hours. The amount of an 
allowance paid to a member under this paragraph shall be in 
addition to any other compensation to which the member may be 
entitled under this title or title 10 or 38.''.

SEC. 562. FUNERAL HONORS DUTY PERFORMED BY RESERVE AND GUARD MEMBERS TO 
                    BE TREATED AS INACTIVE-DUTY TRAINING FOR CERTAIN 
                    PURPOSES.

    (a) Reserve Members.--Section 12503(a) of title 10, United 
States Code, is amended by adding at the end the following new 
sentence: ``Performance of funeral honors duty by a Reserve not 
on active duty shall be treated as inactive-duty training 
(including with respect to travel to and from such duty) for 
purposes of any provision of law other than sections 206 and 
435 of title 37.''.
    (b) National Guard Members.--Section 115(a) of title 32, 
United States Code, is amended by adding at the end the 
following new sentence: ``Performance of funeral honors duty by 
such a member not on active duty or full-time National Guard 
duty shall be treated as inactive-duty training (including with 
respect to travel to and from such duty) for purposes of any 
provision of law other than sections 206 and 435 of title 
37.''.
    (c) Effective Date.--The amendments made by this section 
shall apply to funeral honors duty performed on or after 
October 30, 2000.

SEC. 563. USE OF MILITARY LEAVE FOR FUNERAL HONORS DUTY BY RESERVE 
                    MEMBERS AND NATIONAL GUARDSMEN.

    Section 6323(a)(1) of title 5, United States Code, is 
amended by inserting ``funeral honors duty (as described in 
section 12503 of title 10 and section 115 of title 32),'' after 
``(as defined in section 101 of title 37),''.

SEC. 564. AUTHORITY TO PROVIDE APPROPRIATE ARTICLES OF CLOTHING AS A 
                    CIVILIAN UNIFORM FOR CIVILIANS PARTICIPATING IN 
                    FUNERAL HONOR DETAILS.

    Section 1491(d) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
            ``(3) Articles of clothing for members of a 
        veterans organization or other organization referred to 
        in subsection (b)(2) that, as determined by the 
        Secretary concerned, are appropriate as a civilian 
        uniform for persons participating in a funeral honors 
        detail.''.

            Subtitle H--Military Spouses and Family Members

SEC. 571. IMPROVED FINANCIAL AND OTHER ASSISTANCE TO MILITARY SPOUSES 
                    FOR JOB TRAINING AND EDUCATION.

    (a) Examination of Existing Employment Assistance 
Programs.--(1) The Secretary of Defense shall examine existing 
Department of Defense and other Federal, State, and 
nongovernmental programs with the objective of improving 
retention of military personnel by increasing the employability 
of military spouses and assisting those spouses in gaining 
access to financial and other assistance for job training and 
education.
    (2) In conducting the examination, the Secretary shall give 
priority to facilitating and increasing access of military 
spouses to existing Department of Defense, Federal, State, and 
nongovernmental sources for the types of financial assistance 
set forth in paragraph (3), but shall also specifically assess 
whether the Department of Defense should begin a program for 
direct financial assistance to military spouses for some or all 
of those types of assistance and whether such a program of 
direct financial assistance would enhance retention.
    (3) In conducting the examination pursuant to paragraph 
(1), the Secretary should focus on financial assistance for 
military spouses for one or more of the following purposes:
            (A) Career-related education.
            (B) Certification and license fees for employment-
        related purposes.
            (C) Apprenticeships and internships.
            (D) Technical training.
            (E) Training to improve job skills.
            (F) Career counseling.
            (G) Skills assessment.
            (H) Job-search skills.
            (I) Job-related transportation.
            (J) Child care.
            (K) Any additional employment-related purpose 
        specified by the Secretary for the purposes of the 
        examination under paragraph (1).
    (4) Not later than March 30, 2002, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report on the results of the examination 
under paragraph (1).
    (b) Review of Department of Defense Policies.--(1) The 
Secretary of Defense shall review Department of Defense 
policies that affect employment and education opportunities for 
military spouses in the Department of Defense in order to 
further expand those opportunities. The review shall include 
the consideration of providing, to the extent authorized by 
law, separate spouse preferences for employment by appropriated 
and nonappropriated fund operations.
    (2) Not later than March 30, 2002, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report on the results of the review under 
paragraph (1).
    (c) Spouse Employment Assistance.--Section 1784 of title 
10, United States Code, is amended by adding at the end the 
following new subsections:
    ``(d) Space-Available Use of Facilities for Spouse Training 
Purposes.--Under regulations prescribed by the Secretary of 
Defense, the Secretary of a military department may make 
available to a non-Department of Defense entity space in non-
excess facilities controlled by that Secretary for the purpose 
of the non-Department of Defense entity providing employment-
related training for military spouses.
    ``(e) Employment by Other Federal Agencies.--The Secretary 
of Defense shall work with the Director of the Office of 
Personnel Management and the heads of other Federal departments 
and agencies to expand and facilitate the use of existing 
Federal programs and resources in support of military spouse 
employment.
    ``(f) Private-Sector Employment.--The Secretary of 
Defense--
            ``(1) shall seek to develop partnerships with firms 
        in the private sector to enhance employment 
        opportunities for spouses of members of the armed 
        forces and to provide for improved job portability for 
        such spouses, especially in the case of the spouse of a 
        member of the armed forces accompanying the member to a 
        new geographical area because of a change of permanent 
        duty station of the member; and
            ``(2) shall work with the United States Chamber of 
        Commerce and other appropriate private-sector entities 
        to facilitate the formation of such partnerships.
    ``(g) Employment With DOD Contractors.--The Secretary of 
Defense shall examine and seek ways for incorporating hiring 
preferences for qualified spouses of members of the armed 
forces into contracts between the Department of Defense and 
private-sector entities.''.

SEC. 572. PERSONS AUTHORIZED TO BE INCLUDED IN SURVEYS OF MILITARY 
                    FAMILIES REGARDING FEDERAL PROGRAMS.

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

SEC. 573. CLARIFICATION OF TREATMENT OF CLASSIFIED INFORMATION 
                    CONCERNING PERSONS IN A MISSING STATUS.

    Section 1506(b)(2) of title 10, United States Code, is 
amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by striking the period at the end and inserting 
        ``of all missing persons from the conflict or period of 
        war to which the classified information pertains.''; 
        and
            (3) by adding at the end the following new 
        subparagraph:
    ``(B) For purposes of subparagraph (A), information shall 
be considered to be made reasonably accessible if placed in a 
separate and distinct file that is available for review by 
persons specified in subparagraph (A) upon the request of any 
such person either to review the separate file or to review the 
personnel file of the missing person concerned.''.

SEC. 574. TRANSPORTATION TO ANNUAL MEETING OF NEXT-OF-KIN OF PERSONS 
                    UNACCOUNTED FOR FROM CONFLICTS AFTER WORLD WAR II.

    (a) Authority for Department of Defense To Provide 
Transportation.--Chapter 157 of title 10, United States Code, 
is amended by adding at the end the following new section:

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

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

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

SEC. 575. AMENDMENTS TO CHARTER OF DEFENSE TASK FORCE ON DOMESTIC 
                    VIOLENCE.

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

       Subtitle I--Military Justice and Legal Assistance Matters

SEC. 581. BLOOD ALCOHOL CONTENT LIMIT FOR THE OFFENSE UNDER THE UNIFORM 
                    CODE OF MILITARY JUSTICE OF DRUNKEN OPERATION OF A 
                    VEHICLE, AIRCRAFT, OR VESSEL.

    Section 911 of title 10, United States Code (article 111 of 
the Uniform Code of Military Justice), is amended--
            (1) by inserting ``(a)'' before `` Any person'';
            (2) by striking ``0.10 grams'' the first place it 
        appears and all that follows through ``chemical 
        analysis'' and inserting ``in excess of the applicable 
        limit under subsection (b)''; and
            (3) by adding at the end the following:
    ``(b)(1) For purposes of subsection (a), the applicable 
limit on the alcohol concentration in a person's blood or 
breath is as follows:
            ``(A) In the case of the operation or control of a 
        vehicle, aircraft, or vessel in the United States, such 
        limit is the blood alcohol content limit under the law 
        of the State in which the conduct occurred, except as 
        may be provided under paragraph (2) for conduct on a 
        military installation that is in more than one State 
        and subject to the maximum blood alcohol content limit 
        specified in paragraph (3).
            ``(B) In the case of the operation or control of a 
        vehicle, aircraft, or vessel outside the United States, 
        the applicable blood alcohol content limit is the 
        maximum blood alcohol content limit specified in 
        paragraph (3) or such lower limit as the Secretary of 
        Defense may by regulation prescribe.
    ``(2) In the case of a military installation that is in 
more than one State, if those States have different blood 
alcohol content limits under their respective State laws, the 
Secretary may select one such blood alcohol content limit to 
apply uniformly on that installation.
    ``(3) For purposes of paragraph (1), the maximum blood 
alcohol content limit with respect to alcohol concentration in 
a person's blood is 0.10 grams of alcohol per 100 milliliters 
of blood and with respect to alcohol concentration in a 
person's breath is 0.10 grams of alcohol per 210 liters of 
breath, as shown by chemical analysis.
    ``(4) In this subsection:
            ``(A) The term `blood alcohol content limit' means 
        the maximum permissible alcohol concentration in a 
        person's blood or breath for purposes of operation or 
        control of a vehicle, aircraft, or vessel.
            ``(B) The term `United States' includes the 
        District of Columbia, the Commonwealth of Puerto Rico, 
        the Virgin Islands, Guam, and American Samoa and the 
        term `State' includes each of those jurisdictions.''.

SEC. 582. REQUIREMENT THAT COURTS-MARTIAL CONSIST OF NOT LESS THAN 12 
                    MEMBERS IN CAPITAL CASES.

    (a) Classification of General Court-Martial in Capital 
Cases.--Section 816(1)(A) of title 10, United States Code 
(article 16(1)(A) of the Uniform Code of Military Justice) is 
amended by inserting after ``five members'' the following: 
``or, in a case in which the accused may be sentenced to a 
penalty of death, the number of members determined under 
section 825a of this title (article 25a)''.
    (b) Number of Members Required.--(1) Chapter 47 of title 
10, United States Code (the Uniform Code of Military Justice), 
is amended by inserting after section 825 (article 25) the 
following new section:

``Sec. 825a. Art. 25a. Number of members in capital cases

    ``In a case in which the accused may be sentenced to a 
penalty of death, the number of members shall be not less than 
12, unless 12 members are not reasonably available because of 
physical conditions or military exigencies, in which case the 
convening authority shall specify a lesser number of members 
not less than five, and the court may be assembled and the 
trial held with not less than the number of members so 
specified. In such a case, the convening authority shall make a 
detailed written statement, to be appended to the record, 
stating why a greater number of members were not reasonably 
available.''.
    (2) The table of sections at the beginning of subchapter V 
of such chapter is amended by inserting after the item relating 
to section 825 (article 25) the following new item:

``825a. 25a. Number of members in capital cases.''.

    (c) Absent and Additional Members.--Section 829(b) of such 
title (article 29 of the Uniform Code of Military Justice) is 
amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by striking ``five members'' both places it 
        appears and inserting ``the applicable minimum number 
        of members''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(2) In this section, the term `applicable minimum number 
of members' means five members or, in a case in which the death 
penalty may be adjudged, the number of members determined under 
section 825a of this title (article 25a).''.
    (d) Effective Date.--The amendments made by this section 
shall apply with respect to offenses committed after December 
31, 2002.

SEC. 583. ACCEPTANCE OF VOLUNTARY LEGAL ASSISTANCE FOR THE CIVIL 
                    AFFAIRS OF MEMBERS AND FORMER MEMBERS OF THE 
                    UNIFORMED SERVICES AND THEIR DEPENDENTS.

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

                       Subtitle J--Other Matters

SEC. 591. CONGRESSIONAL REVIEW PERIOD FOR CHANGE IN GROUND COMBAT 
                    EXCLUSION POLICY.

    Section 542(b) of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 113 note) 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``not less than 90 days''; 
                and
                    (B) by adding at the end the following new 
                sentence: ``Such a change may then be 
                implemented only after the end of a period of 
                30 days of continuous session of Congress 
                (excluding any day on which either House of 
                Congress is not in session) following the date 
                on which the report is received.''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(5) For purposes of this subsection, the continuity of a 
session of Congress is broken only by an adjournment of the 
Congress sine die.''.

SEC. 592. PER DIEM ALLOWANCE FOR LENGTHY OR NUMEROUS DEPLOYMENTS.

    (a) Funding Source for Allowance.--Section 436(a) of title 
37, United States Code, is amended by adding at the end the 
following new sentence: ``The Secretary shall pay the allowance 
from appropriations available for operation and maintenance for 
the armed force in which the member serves.''.
    (b) Expanded Report Regarding Management of Individual 
Member Deployments.--Section 574(d) of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-138) is 
amended in the second sentence by striking paragraphs (1) and 
(2) and inserting the following new paragraphs:
            ``(1) a discussion of the experience in tracking 
        and recording the deployments of members of the Armed 
        Forces and the payment of the per diem allowance for 
        lengthy or numerous deployments in accordance with 
        section 436 of title 37, United States Code;
            ``(2) specific comments regarding the effect of 
        section 991 of title 10, United States Code, and 
        section 436 of title 37, United States Code, on the 
        readiness of the Navy and Marine Corps given the 
        deployment intensive mission of these services; and
            ``(3) any recommendations for revision of section 
        991 of title 10, United States Code, or section 436 of 
        title 37, United States Code, that the Secretary 
        considers appropriate.''.

SEC. 593. CLARIFICATION OF DISABILITY SEVERANCE PAY COMPUTATION.

    (a) Clarification.--Section 1212(a)(2) of title 10, United 
States Code, is amended by striking ``for promotion'' in 
subparagraph (C) and the first place it appears in subparagraph 
(D).
    (b) Effective Date.--The amendments made by subsection (a) 
shall apply with respect to members separated under section 
1203 or 1206 of title 10, United States Code, on or after date 
of the enactment of this Act.

SEC. 594. TRANSPORTATION OR STORAGE OF PRIVATELY OWNED VEHICLES ON 
                    CHANGE OF PERMANENT STATION.

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

SEC. 595. REPEAL OF REQUIREMENT FOR FINAL COMPTROLLER GENERAL REPORT 
                    RELATING TO ARMY END STRENGTH ALLOCATIONS.

    Section 552 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 319; 10 U.S.C. 
115 note) is repealed.

SEC. 596. CONTINUED DEPARTMENT OF DEFENSE ADMINISTRATION OF NATIONAL 
                    GUARD CHALLENGE PROGRAM AND DEPARTMENT OF DEFENSE 
                    STARBASE PROGRAM.

    (a) National Guard Challenge Program.--Section 509(b) of 
title 32, United States Code, is amended--
            (1) in paragraph (2)(A), by striking ``in a fiscal 
        year'' and inserting ``in fiscal year 2001 or 2002''; 
        and
            (2) by adding at the end the following new 
        paragraph:
    ``(4) The Secretary of Defense shall remain the executive 
agent to carry out the National Guard Challenge Program 
regardless of the source of funds for the program or any 
transfer of jurisdiction over the program within the executive 
branch. As provided in subsection (a), the Secretary may use 
the National Guard to conduct the program.''.
    (b) STARBASE Program.--Section 2193b(f) of title 10, United 
States Code, is amended--
            (1) by inserting ``(1)'' before ``The Secretary''; 
        and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The Secretary of Defense shall remain the executive 
agent to carry out the program regardless of the source of 
funds for the program or any transfer of jurisdiction over the 
program within the executive branch.''.
    (c) Repeal of Contingent Funding for JROTC.--(1) Section 
2033 of title 10, United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 102 
of such title is amended by striking the item relating to 
section 2033.
    (3) The amendments made by this subsection shall take 
effect on October 1, 2002.

SEC. 597. REPORT ON DEFENSE SCIENCE BOARD RECOMMENDATION ON ORIGINAL 
                    APPOINTMENTS IN REGULAR GRADES FOR ACADEMY 
                    GRADUATES AND CERTAIN OTHER NEW OFFICERS.

    The Secretary of Defense shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the 
legislative and policy changes required to implement the 
recommendation of the Defense Science Board (made in its report 
entitled ``Final Report on Human Resources Strategy'' and dated 
February 28, 2000) that all officers be given initial regular 
commissions. The Secretary shall include in that report a 
description of the measures necessary to transition the current 
active-duty officer corps to an all-regular status, if the 
Board's recommendation were adopted, and shall provide the 
Secretary's position with regard to implementing that 
recommendation. The report shall be submitted not later than 
six months after the date of the enactment of this Act.

SEC. 598. SENSE OF CONGRESS REGARDING THE SELECTION OF OFFICERS FOR 
                    RECOMMENDATION FOR APPOINTMENT AS COMMANDER, UNITED 
                    STATES TRANSPORTATION COMMAND.

    (a) Findings.--Congress makes the following findings:
            (1) The Goldwater-Nichols Department of Defense 
        Reorganization Act of 1986 (Public Law 99-433) 
        envisioned that officers would be selected for 
        recommendation to the President for appointment as the 
        commander of a combatant command under chapter 6 of 
        title 10, United States Code (as added by that Act), on 
        the basis of being the best qualified officer for that 
        position, rather than the best qualified officer of the 
        armed force that had historically supplied officers to 
        serve in that position.
            (2) In order to provide for greater competition 
        among the Armed Forces for selection of officers for 
        assignment as the commanders of the combatant commands 
        and assignment to certain other joint positions in the 
        grade of general or admiral, Congress provided 
        temporary relief from the limitation on the number of 
        officers serving on active duty in the grade of general 
        or admiral in section 405 of the National Defense 
        Authorization Act for Fiscal Year 1995 and thereafter 
        extended that relief until September 30, 2003, but has 
        also required that the Secretary of Defense be 
        furnished the name of at least one officer from each of 
        the Armed Forces for consideration for appointment to 
        each such position.
            (3) Most of the positions of commanders of the 
        combatant commands have been filled successively by 
        officers of more than one of the Armed Forces since the 
        enactment of the Goldwater-Nichols Department of 
        Defense Reorganization Act of 1986.
            (4) However, general officers of the Air Force with 
        only limited experience in the transportation services 
        have usually filled the position of commander of the 
        United States Transportation Command.
            (5) The United States Transportation Command could 
        benefit from the appointment of future commanders 
        selected from the Army, Navy and Marine Corps, in 
        addition to the Air Force.
    (b) Sense of Congress.--It is the sense of Congress that 
the Secretary of Defense, when considering officers for 
recommendation to the President for appointment as commander of 
the United States Transportation Command, should not rely upon 
officers of one service which has traditionally provided 
officers to fill that position but should select for such 
recommendation the best qualified officer of the Army, Navy, 
Air Force, or Marine Corps.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

           Subtitle D--Retirement and Survivor Benefit Matters

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

                        Subtitle E--Other Matters

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

                     Subtitle A--Pay and Allowances

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

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

                                            COMMISSIONED OFFICERS \1\
                   Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
Pay                                               2 or less      Over 2       Over 3       Over 4       Over 6
Grade
----------------------------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------------------


                                      COMMISSIONED OFFICERS \1\--Continued
                   Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------

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


     COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
                   Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------

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

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

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

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

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

SEC. 604. SUBSISTENCE ALLOWANCES.

    (a) Baseline Amount for Calculating Allowance for Enlisted 
Members.--Section 402(b) of title 37, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(4) For purposes of implementing paragraph (2), the 
monthly rate of basic allowance for subsistence that was in 
effect for an enlisted member for calendar year 2001 is deemed 
to be $233.''.
    (b) Rate for Enlisted Members When Messing Facilities Not 
Available.--(1) Notwithstanding section 402 of title 37, United 
States Code, the Secretary of Defense, and the Secretary of 
Transportation with respect to the Coast Guard when it is not 
operating as a service in the Navy, may prescribe a rate of 
basic allowance for subsistence to apply to enlisted members of 
the uniformed services when messing facilities of the United 
States are not available. The rate may be higher than the rate 
of basic allowance for subsistence that would otherwise be 
applicable to the members under that section, but may not be 
higher than the highest rate that was in effect for enlisted 
members of the uniformed services under those circumstances 
before the date of the enactment of this Act.
    (2) Paragraph (1) shall cease to be effective on the first 
day of the first month for which the basic allowance for 
subsistence calculated for enlisted members of the uniformed 
services under section 402 of title 37, United States Code, 
exceeds the rate of the basic allowance for subsistence 
prescribed under paragraph (1).
    (c) Continuation of BAS Transitional Authority.--
Notwithstanding the repeal of subsections (c) through (f) of 
section 602 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 37 U.S.C. 402 note) by 
section 603(c) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-145), the basic allowance 
for subsistence shall be paid in accordance with such 
subsections for October, November, and December of 2001.
    (d) Eligibility for Supplemental Subsistence Allowance.--
Section 402a(b)(1) of title 37, United States Code, is amended 
by inserting ``with dependents'' after ``a member of the armed 
forces''.

SEC. 605. ELIGIBILITY FOR TEMPORARY HOUSING ALLOWANCE WHILE IN TRAVEL 
                    OR LEAVE STATUS BETWEEN PERMANENT DUTY STATIONS.

    (a) Repeal of Pay Grade Limitation.--Section 403(i) of 
title 37, United States Code, is amended by striking ``who is 
in a pay grade E-4 (4 or more years of service) or above''.
    (b) Effective Date; Application.--The amendment made by 
this section shall take effect on January 1, 2003, and apply to 
members of the uniformed services in a travel or leave status 
between permanent duty stations on or after that date.

SEC. 606. UNIFORM ALLOWANCE FOR OFFICERS.

    (a) Relation to Initial Uniform Allowance.--Section 
416(b)(1) of title 37, United States Code, is amended by 
striking ``$200'' and inserting ``$400''.
    (b) Effective Date.--The amendment made by this section 
shall take effect as of October 1, 2000.

SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS ELECTING 
                    UNACCOMPANIED TOUR BY REASON OF HEALTH LIMITATIONS 
                    OF DEPENDENTS.

    (a) Entitlement to Allowance.--Section 427(c) of title 37, 
United States Code, is amended--
            (1) by striking ``A member'' in the first sentence 
        and inserting ``(1) Except as provided in paragraph (2) 
        or (3), a member'';
            (2) in the second sentence, by striking ``The 
        Secretary concerned may waive the preceding sentence'' 
        and inserting the following:
    ``(3) The Secretary concerned may waive paragraph (1)''; 
and
            (3) by inserting after the first sentence the 
        following new paragraph:
    ``(2) The prohibition in the first sentence of paragraph 
(1) does not apply to a member who elects to serve an 
unaccompanied tour of duty because a dependent cannot accompany 
the member to or at that permanent station for certified 
medical reasons.''.
    (b) Application of Amendment.--Paragraph (2) of section 
427(c) of title 37, United States Code, as added by subsection 
(a)(3), shall apply with respect to pay periods beginning on or 
after January 1, 2002, for a member of the uniformed services 
covered by such paragraph regardless of the date on which the 
member first made the election to serve an unaccompanied tour 
of duty.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
                    AUTHORITIES FOR RESERVE FORCES.

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

SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
                    AUTHORITIES FOR NURSE OFFICER CANDIDATES, 
                    REGISTERED NURSES, AND NURSE ANESTHETISTS.

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

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

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

SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY 
                    AUTHORITIES.

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

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

    (a) Additional Type of Duty Eligible for Pay.--Section 
301(a) of title 37, United States Code, is amended--
            (1) in paragraph (10), by striking ``or'' at the 
        end;
            (2) by redesignating paragraph (11) as paragraph 
        (12); and
            (3) by inserting after paragraph (10) the following 
        new paragraph:
            ``(11) involving regular participation as a member 
        of a team conducting visit, board, search, and seizure 
        operations aboard vessels in support of maritime 
        interdiction operations; or''.
    (b) Monthly Amount.--Subsection (c) of such section is 
amended--
            (1) in paragraph (1), by striking ``(10)'' and 
        inserting ``(11)''; and
            (2) in paragraph (2)(A), by striking ``(11)'' and 
        inserting ``(12)''.
    (c) Application of Amendment.--Paragraph (11) of section 
301(a) of title 37, United States Code, as added by subsection 
(a)(3), shall apply to duty described in such paragraph that is 
performed on or after January 1, 2002.

SEC. 616. ELIGIBILITY FOR CERTAIN CAREER CONTINUATION BONUSES FOR EARLY 
                    COMMITMENT TO REMAIN ON ACTIVE DUTY.

    (a) Aviation Officers.--Section 301b(b)(4) of title 37, 
United States Code, is amended by inserting before the period 
at the end the following: ``or is within one year of completing 
such commitment''.
    (b) Surface Warfare Officers.--Section 319(a)(3) of such 
title is amended by inserting before the period at the end the 
following: ``or is within one year of completing such 
commitment''.

SEC. 617. SECRETARIAL DISCRETION IN PRESCRIBING SUBMARINE DUTY 
                    INCENTIVE PAY RATES.

    (a) Authority of Secretary of the Navy; Maximum Rate.--
Subsection (b) of section 301c of title 37, United States Code, 
is amended to read as follows:
    ``(b) Monthly Rates.--The Secretary of the Navy shall 
prescribe the monthly rates of submarine duty incentive pay, 
except that the maximum monthly rate may not exceed $1,000.''.
    (b) Conforming and Clerical Amendments.--Such section is 
further amended--
            (1) in subsection (a)--
                    (A) by inserting ``Eligibility 
                Requirements.--'' after ``(a)''; and
                    (B) by striking ``set forth in'' each place 
                it appears and inserting ``prescribed pursuant 
                to'';
            (2) in subsection (c), by inserting ``Exceptions.--
        '' after ``(c)''; and
            (3) in subsection (d)--
                    (A) by inserting ``Applicability to Certain 
                Naval Reserve Duty.--'' after ``(d)''; and
                    (B) by striking ``authorized by'' and 
                inserting ``prescribed pursuant to''.
    (c) Transition.--The tables set forth in subsection (b) of 
section 301c of title 37, United States Code, as in effect on 
the day before the date of the enactment of this Act, shall 
continue to apply until the later of the following:
            (1) January 1, 2002.
            (2) The date on which the Secretary of the Navy 
        prescribes new submarine duty incentive pay rates as 
        authorized by the amendment made by subsection (a).

SEC. 618. CONFORMING ACCESSION BONUS FOR DENTAL OFFICERS AUTHORITY WITH 
                    AUTHORITIES FOR OTHER SPECIAL PAY AND BONUSES.

    Section 302h(a)(1) of title 37, United States Code, is 
amended by striking ``the date of the enactment of this 
section, and ending on September 30, 2002'' and inserting 
``September 23, 1996, and ending on December 31, 2002''.

SEC. 619. MODIFICATION OF ELIGIBILITY REQUIREMENTS FOR INDIVIDUAL READY 
                    RESERVE BONUS FOR REENLISTMENT, ENLISTMENT, OR 
                    EXTENSION OF ENLISTMENT.

    (a) Eligibility Based on Qualifications in Critically Short 
Wartime Skills or Specialties.--Subsection (a) of section 308h 
of title 37, United States Code, is amended to read as follows:
    ``(a) Authority and Eligibility Requirements.--(1) The 
Secretary concerned may pay a bonus as provided in subsection 
(b) to an eligible person who reenlists, enlists, or 
voluntarily extends an enlistment in a reserve component of an 
armed force for assignment to an element (other than the 
Selected Reserve) of the Ready Reserve of that armed force if 
the reenlistment, enlistment, or extension is for a period of 
three years, or for a period of six years, beyond any other 
period the person is obligated to serve.
    ``(2) A person is eligible for a bonus under this section 
if the person--
            ``(A) is or has been a member of an armed force;
            ``(B) is qualified in a skill or specialty 
        designated by the Secretary concerned as a critically 
        short wartime skill or critically short wartime 
        specialty; and
            ``(C) has not failed to complete satisfactorily any 
        original term of enlistment in the armed forces.
    ``(3) For the purposes of this section, the Secretary 
concerned may designate a skill or specialty as a critically 
short wartime skill or critically short wartime specialty for 
an armed force under the jurisdiction of the Secretary if the 
Secretary determines that--
            ``(A) the skill or specialty is critical to meet 
        wartime requirements of the armed force; and
            ``(B) there is a critical shortage of personnel in 
        that armed force who are qualified in that skill or 
        specialty.''.
    (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (b), by inserting ``Bonus 
        Amounts; Payment.--'' after ``(b)'';
            (2) in subsection (c), by inserting ``Repayment of 
        Bonus.--'' after ``(c)'';
            (3) in subsection (d), by inserting ``Treatment of 
        Reimbursement Obligation.--'' after ``(d)'';
            (4) in subsection (e), by inserting ``Effect of 
        Bankruptcy.--'' after ``(e)'';
            (5) in subsection (f), by inserting 
        ``Regulations.--'' after ``(f)''; and
            (6) in subsection (g), by inserting ``Termination 
        of Authority.--'' after ``(g)''.
    (c) Regulations.--Not later than 180 days after the date of 
the enactment of this Act, the Secretaries of the military 
departments shall prescribe such regulations as may be 
necessary for administering subsection (a) of section 308h of 
title 37, United States Code, as amended by this section.
    (d) Application of Amendment.--Subsection (a) of section 
308h of title 37, United States Code, as amended by this 
section, shall apply with respect to reserve component 
reenlistments, enlistments, and extensions of enlistments that 
are executed on or after the first day of the first month that 
begins more than 180 days after the date of the enactment of 
this Act. Subsection (a) of such section 308h, as in effect on 
the day before the date of the enactment of this Act, shall 
continue to apply with respect to reserve component 
reenlistments, enlistments, and extensions of enlistments that 
are executed before the first day of that first month.

SEC. 620. INSTALLMENT PAYMENT AUTHORITY FOR 15-YEAR CAREER STATUS 
                    BONUS.

    (a) Member Election.--Section 322(d) of title 37, United 
States Code, is amended--
            (1) in paragraph (1), by striking ``paid in a 
        single lump sum of'' and inserting ``equal to'';
            (2) by redesignating paragraph (2) as paragraph 
        (4), and in such paragraph, by striking ``The bonus'' 
        and inserting ``The lump sum payment of the bonus, and 
        the first installment payment in the case of members 
        who elect to receive the bonus in installments,''; and
            (3) by inserting after paragraph (1) the following 
        new paragraphs:
    ``(2) A member electing to receive the bonus under this 
section shall elect one of the following payment options:
            ``(A) A single lump sum of $30,000.
            ``(B) Two installments of $15,000 each.
            ``(C) Three installments of $10,000 each.
            ``(D) Four installments of $7,500 each.
            ``(E) Five installments of $6,000 each.
    ``(3) If a member elects installment payments under 
paragraph (2), the second installment (and subsequent 
installments, as applicable) shall be paid on the earlier of 
the following dates:
            ``(A) The annual anniversary date of the payment of 
        the first installment.
            ``(B) January 15 of each succeeding calendar 
        year.''.
    (b) Application to Existing Agreements.--The Secretary 
concerned (as defined in section 101(5) of title 37, United 
States Code) shall extend to each member of the uniformed 
services who has executed the written agreement required by 
subsection (a)(2) of section 322 of such title before the date 
of the enactment of this Act, but who has not received the lump 
sum payment by that date, an opportunity to make the election 
authorized by subsection (d) of such section, as amended by 
this section.

SEC. 621. ACCESSION BONUS FOR NEW OFFICERS IN CRITICAL SKILLS.

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

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

    ``(a) Accession Bonus Authorized.--Under regulations 
prescribed by the Secretary concerned, a person who executes a 
written agreement to accept a commission as an officer of the 
armed forces and serve on active duty in a designated critical 
officer skill for the period specified in the agreement may, 
upon acceptance of the agreement by the Secretary concerned, be 
paid an accession bonus in an amount determined by the 
Secretary concerned.
    ``(b) Designation of Critical Officer Skills.--(1) The 
Secretary concerned shall designate the critical officer skills 
for the purposes of this section. A skill may be designated as 
a critical officer skill for an armed force under this 
subsection if--
            ``(1) in order to meet requirements of the armed 
        force, it is critical for the armed force to have a 
        sufficient number of officers who are qualified in that 
        skill; and
            ``(2) in order to mitigate a current or projected 
        significant shortage of personnel in the armed force 
        who are qualified in that skill, it is critical to 
        access into that armed force in sufficient numbers 
        persons who are qualified in that skill or are to be 
        trained in that skill.
    ``(c) Limitation on Amount of Bonus.--The amount of an 
accession bonus under subsection (a) may not exceed $60,000.
    ``(d) Payment Method.--Upon acceptance of a written 
agreement under subsection (a) by the Secretary concerned, the 
total amount of the accession bonus payable under the agreement 
becomes fixed. The agreement shall specify whether the 
accession bonus will be paid by the Secretary in a lump sum or 
installments.
    ``(e) Relation to Other Accession Bonus Authority.--An 
individual may not receive an accession bonus under this 
section and section 302d, 302h, 302j, or 312b of this title for 
the same period of service.
    ``(f) Repayment for Failure To Commence or Complete 
Obligated Service.--(1) An individual who, after having 
received all or part of the accession bonus under an agreement 
referred to in subsection (a), fails to accept a commission as 
an officer or to commence or complete the total period of 
active duty service specified in the agreement shall repay to 
the United States the amount that bears the same ratio to the 
total amount of the bonus authorized for such person as the 
unserved part of the period of agreed active duty service bears 
to the total period of the agreed active duty service. However, 
the amount required to be repaid by the individual may not 
exceed the amount of the accession bonus that was paid to the 
individual.
    ``(2) Subject to paragraph (3), an obligation to repay the 
United States imposed under paragraph (1) is for all purposes a 
debt owed to the United States. A discharge in bankruptcy under 
title 11 that is entered less than five years after the 
termination of an agreement entered into under subsection (a) 
does not discharge the individual signing the agreement from a 
debt arising under such agreement or under paragraph (1).
    ``(3) The Secretary concerned may waive, in whole or in 
part, the repayment requirement under paragraph (1) on a case-
by-case basis if the Secretary concerned determines that 
repayment would be against equity and good conscience or would 
be contrary to the best interests of the United States.
    ``(g) Termination of Authority.--No agreement under this 
section may be entered into after December 31, 2002.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

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

SEC. 622. EDUCATION SAVINGS PLAN TO ENCOURAGE REENLISTMENTS AND 
                    EXTENSIONS OF SERVICE IN CRITICAL SPECIALTIES.

    (a) Establishment of Savings Plan.--(1) Chapter 5 of title 
37, United States Code, is amended by inserting after section 
324, as added by section 621, the following new section:

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

    ``(a) Benefit and Eligibility.--The Secretary concerned may 
purchase United States savings bonds under this section for a 
member of the armed forces who is eligible as follows:
            ``(1) A member who, before completing three years 
        of service on active duty, enters into a commitment to 
        perform qualifying service.
            ``(2) A member who, after completing three years of 
        service on active duty, but not more than nine years of 
        service on active duty, enters into a commitment to 
        perform qualifying service.
            ``(3) A member who, after completing nine years of 
        service on active duty, enters into a commitment to 
        perform qualifying service.
    ``(b) Qualifying Service.--For the purposes of this 
section, qualifying service is service on active duty in a 
specialty designated by the Secretary concerned as critical to 
meet requirements (whether or not such specialty is designated 
as critical to meet wartime or peacetime requirements) for a 
period that--
            ``(1) is not less than six years; and
            ``(2) does not include any part of a period for 
        which the member is obligated to serve on active duty 
        under an enlistment or other agreement for which a 
        benefit has previously been paid under this section.
    ``(c) Forms of Commitment to Additional Service.--For the 
purposes of this section, a commitment means--
            ``(1) in the case of an enlisted member, a 
        reenlistment; and
            ``(2) in the case of a commissioned officer, an 
        agreement entered into with the Secretary concerned.
    ``(d) Amounts of Bonds.--The total of the face amounts of 
the United States savings bonds authorized to be purchased for 
a member under this section for a commitment shall be as 
follows:
            ``(1) In the case of a purchase for a member under 
        paragraph (1) of subsection (a), $5,000.
            ``(2) In the case of a purchase for a member under 
        paragraph (2) of subsection (a), the amount equal to 
        the excess of $15,000 over the total of the face 
        amounts of any United States savings bonds previously 
        purchased for the member under this section.
            ``(3) In the case of a purchase for a member under 
        paragraph (3) of subsection (a), the amount equal to 
        the excess of $30,000 over the total of the face 
        amounts of any United States savings bonds previously 
        purchased for the member under this section.
    ``(e) Total Amount of Benefit.--The total amount of the 
benefit authorized for a member when United States savings 
bonds are purchased for the member under this section by reason 
of a commitment by that member shall be the sum of--
            ``(1) the purchase price of the United States 
        savings bonds; and
            ``(2) the amounts that would be deducted and 
        withheld for the payment of individual income taxes if 
        the total amount computed under this subsection for 
        that commitment were paid to the member as a bonus.
    ``(f) Amount Withheld for Taxes.--The total amount payable 
for a member under subsection (e)(2) for a commitment by that 
member shall be withheld, credited, and otherwise treated in 
the same manner as amounts deducted and withheld from the basic 
pay of the member.
    ``(g) Repayment for Failure To Complete Obligated 
Service.--(1) If a person fails to complete the qualifying 
service for which the person is obligated under a commitment 
for which a benefit has been paid under this section, the 
person shall refund to the United States the amount that bears 
the same ratio to the total amount paid for the person (as 
computed under subsection (e)) for that particular commitment 
as the uncompleted part of the period of qualifying service 
bears to the total period of the qualifying service for which 
obligated.
    ``(2) Subject to paragraph (3), an obligation to reimburse 
the United States imposed under paragraph (1) is for all 
purposes a debt owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in 
part, a refund required under paragraph (1) if the Secretary 
concerned determines that recovery would be against equity and 
good conscience or would be contrary to the best interests of 
the United States.
    ``(4) A discharge in bankruptcy under title 11 that is 
entered less than five years after the termination of an 
enlistment or other agreement under this section does not 
discharge the person signing such enlistment or other agreement 
from a debt arising under the enlistment or agreement, 
respectively, or this subsection.
    ``(h) Relationship to Other Special Pays.--The benefit 
authorized under this section is in addition to any other bonus 
or incentive or special pay that is paid or payable to a member 
under any other provision of this chapter for any portion of 
the same qualifying service.
    ``(i) Regulations.--This section shall be administered 
under regulations prescribed by the Secretary of Defense for 
the armed forces under his jurisdiction and by the Secretary of 
Transportation for the Coast Guard when the Coast Guard is not 
operating as a service in the Navy.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 324, 
as added by section 621(b), the following new item:

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

    (b) Application of Amendment.--Section 325 of title 37, 
United States Code, as added by subsection (a), shall apply 
with respect to reenlistments and other agreements for 
qualifying service, as described in that section, that are 
entered into on or after October 1, 2001.
    (c) Funding For Fiscal Year 2002.--Of the amount authorized 
to be appropriated to the Department of Defense for military 
personnel for fiscal year 2002 by section 421, $20,000,000 may 
be available in that fiscal year for the purchase of United 
States savings bonds under section 325 of title 37, United 
States Code, as added by subsection (a).

SEC. 623. CONTINUATION OF PAYMENT OF SPECIAL AND INCENTIVE PAY AT 
                    UNREDUCED RATES DURING STOP LOSS PERIODS.

    (a) Authority To Continue.--(1) Chapter 17 of title 37, 
United States Code, is amended by adding at the end the 
following new section:

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

    ``(a) Authority To Continue Payment at Unreduced Rates.--To 
ensure fairness and recognize the contributions of members of 
the armed forces to military essential missions, the Secretary 
of the military department concerned may authorize members who 
are involuntarily retained on active duty under section 123 or 
12305 of title 10 or any other provision of law and who, 
immediately before retention on active duty, were entitled or 
eligible for special pay or incentive pay under chapter 5 of 
this title, to receive that special pay or incentive pay for 
qualifying service performed during the retention period, 
without a reduction in the payment rate below the rate the 
members received immediately before retention on active duty, 
notwithstanding any requirement otherwise applicable to that 
special pay or incentive pay that would reduce the payment rate 
by reason of the years of service of the members.
    ``(b) Suspension During Time of War.--Subsection (a) does 
not apply with respect to a special pay or incentive pay under 
chapter 5 of this title, whenever the authority to provide that 
special pay or incentive pay is suspended by the President or 
the Secretary of Defense during a time of war.
    ``(c) Qualifying Service Defined.--In this section, the 
term `qualifying service' means service for which a particular 
special pay or incentive pay is payable under the authority of 
a provision of chapter 5 of this title.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

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

    (b) Application of Amendments.--Section 909 of title 37, 
United States Code, as added by subsection (a)(1), shall apply 
with respect to pay periods beginning after September 11, 2001.

SEC. 624. RETROACTIVE AUTHORIZATION FOR IMMINENT DANGER PAY FOR SERVICE 
                    IN CONNECTION WITH OPERATION ENDURING FREEDOM.

    (a) Retroactive Authorization.--The Secretary of Defense 
may provide for the payment of imminent danger pay under 
section 310 of title 37, United States Code, to members of the 
Armed Forces assigned to duty in the areas specified in 
subsection (b) in connection with the contingency operation 
known as Operation Enduring Freedom with respect to periods of 
duty served in those areas during the period beginning on 
September 19, 2001, and ending October 31, 2001.
    (b) Specified Areas.--The areas referred to in subsection 
(a) are the following:
            (1) The land areas of Kyrgyzstan, Oman, the United 
        Arab Emirates, and Uzbekistan.
            (2) The Red Sea, the Gulf of Aden, the Gulf of 
        Oman, and the Arabian Sea (that portion north of 10+ 
        north latitude and west of 68+ east longitude).

            Subtitle C--Travel and Transportation Allowances

SEC. 631. MINIMUM PER DIEM RATE FOR TRAVEL AND TRANSPORTATION ALLOWANCE 
                    FOR TRAVEL PERFORMED UPON A CHANGE OF PERMANENT 
                    STATION AND CERTAIN OTHER TRAVEL.

    Section 404(d) of title 37, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(5) Effective January 1, 2003, the per diem rates 
established under paragraph (2)(A) for travel performed in 
connection with a change of permanent station or for travel 
described in paragraph (2) or (3) of subsection (a) shall be 
equal to the standard per diem rates established in the Federal 
travel regulation for travel within the continental United 
States of civilian employees and their dependents, unless the 
Secretaries concerned determine that a higher rate for members 
is more appropriate.''.

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

    (a) Inclusion of Officers.--Subsection (a)(2)(C) of section 
404a of title 37, United States Code, is amended by striking 
``an enlisted member'' and inserting ``a member''.
    (b) Increase in Maximum Daily Authorized Rate.--Subsection 
(e) of such section is amended by striking ``$110'' and 
inserting ``$180''.
    (c) Effective Date; Application.--The amendments made by 
this section shall take effect on January 1, 2002, and apply 
with respect to an order issued on or after that date to a 
member of the uniformed services to report to the member's 
first permanent duty station.

SEC. 633. REIMBURSEMENT OF MEMBERS FOR MANDATORY PET QUARANTINE FEES 
                    FOR HOUSEHOLD PETS.

    (a) Increase in Maximum Reimbursement Amount.--Section 
406(a)(1) of title 37, United States Code, is amended in the 
last sentence by striking ``$275'' and inserting ``$550''.
    (b) Application of Amendment.--The amendment made by 
subsection (a) shall apply with respect to the reimbursement of 
members of the uniformed services for mandatory pet quarantine 
fees incurred in connection with the mandatory quarantine of a 
household pet underway on the date of the enactment of this Act 
or beginning on or after that date.

SEC. 634. INCREASED WEIGHT ALLOWANCE FOR TRANSPORTATION OF BAGGAGE AND 
                    HOUSEHOLD EFFECTS FOR JUNIOR ENLISTED MEMBERS.

    (a) Increased Weight Allowances.--The table in section 
406(b)(1)(C) of title 37, United States Code, is amended--
            (1) by striking the two footnotes; and
            (2) by striking the items relating to pay grade E-1 
        through E-4 and inserting the following new items:

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


    (b) Effective Date; Application.--The amendments made by 
this section shall take effect on January 1, 2003, and apply 
with respect to an order in connection with a change of 
temporary or permanent station issued on or after that date.

SEC. 635. ELIGIBILITY OF ADDITIONAL MEMBERS FOR DISLOCATION ALLOWANCE.

    (a) Eligibility for Primary Dislocation Allowance.--
Subsection (a) of section 407 of title 37, United States Code, 
is amended--
            (1) in paragraph (2), by adding at the end the 
        following new subparagraphs:
            ``(F) A member whose dependents actually move from 
        the member's place of residence in connection with the 
        performance of orders for the member to report to the 
        member's first permanent duty station if the move--
                    ``(i) is to the permanent duty station or a 
                designated location; and
                    ``(ii) is an authorized move.
            ``(G) Each of two members married to each other 
        who--
                    ``(i) is without dependents;
                    ``(ii) actually moves with the member's 
                spouse to a new permanent duty station; and
                    ``(iii) is assigned to family quarters of 
                the United States at or in the vicinity of the 
                new duty station.''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(4) If a primary dislocation allowance is payable to two 
members described in paragraph (2)(G) who are married to each 
other, the amount of the allowance payable to such members 
shall be the amount otherwise payable under this subsection to 
the member in the higher pay grade, or to either member if both 
members are in the same pay grade. The allowance shall be paid 
jointly to both members.''.
    (b) Conforming Amendment.--Subsection (e) of such section 
is amended by inserting ``(except as provided in subsection 
(a)(2)(F))'' after ``first duty station''.
    (c) Application of Amendments.--The amendments made by this 
section shall apply with respect to an order issued on or after 
January 1, 2002, in connection with a change of permanent 
station or for a member of the uniformed services to report to 
the member's first permanent duty station.

SEC. 636. PARTIAL DISLOCATION ALLOWANCE AUTHORIZED FOR HOUSING MOVES 
                    ORDERED FOR GOVERNMENT CONVENIENCE.

    (a) Authorization of Partial Dislocation Allowance.--
Section 407 of title 37, United States Code is amended--
            (1) by redesignating subsections (f) and (g) as 
        subsections (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following 
        new subsection:
    ``(f) Partial Dislocation Allowance.--(1) Under regulations 
prescribed by the Secretary concerned, a member ordered to 
occupy or vacate family housing provided by the United States 
to permit the privatization or renovation of housing or for any 
other reason (other than pursuant to a permanent change of 
station) may be paid a partial dislocation allowance of $500.
    ``(2) Effective on the same date that the monthly rates of 
basic pay for all members are increased under section 1009 of 
this title or another provision of law, the Secretary of 
Defense shall adjust the rate of the partial dislocation 
allowance authorized by this subsection by the percentage equal 
to the average percentage increase in the rates of basic pay.
    ``(3) Subsections (c) and (d) do not apply to the partial 
dislocation allowance authorized by this subsection.''.
    (b) Application of Amendment.--Subsection (f) of title 37, 
United States Code, as added by subsection (a)(2), shall apply 
with respect to an order to move for a member of a uniformed 
service that is issued on or after the date of the enactment of 
this Act.

SEC. 637. ALLOWANCES FOR TRAVEL PERFORMED IN CONNECTION WITH MEMBERS 
                    TAKING AUTHORIZED LEAVE BETWEEN CONSECUTIVE 
                    OVERSEAS TOURS.

    Section 411b(a)(1) of title 37, United States Code, is 
amended by striking ``, or his designee, or to a place no 
farther distant than his home of record''.

SEC. 638. TRAVEL AND TRANSPORTATION ALLOWANCES FOR FAMILY MEMBERS TO 
                    ATTEND BURIAL OF A DECEASED MEMBER OF THE UNIFORMED 
                    SERVICES.

    (a) Consolidation of Authorities.--Section 411f of title 
37, United States Code, is amended to read as follows:

``Sec. 411f. Travel and transportation allowances: transportation for 
                    survivors of deceased member to attend the member's 
                    burial ceremonies

    ``(a) Allowances Authorized.--(1) The Secretary concerned 
may provide round trip travel and transportation allowances to 
eligible relatives of a member of the uniformed services who 
dies while on active duty or inactive duty in order that the 
eligible relatives may attend the burial ceremony of the 
deceased member.
    ``(2) The Secretary concerned may also provide round trip 
travel and transportation allowances to an attendant who 
accompanies an eligible relative provided travel and 
transportation allowances under paragraph (1) for travel to the 
burial ceremony if the Secretary concerned determines that--
            ``(A) the accompanied eligible relative is unable 
        to travel unattended because of age, physical 
        condition, or other justifiable reason; and
            ``(B) there is no other eligible relative of the 
        deceased member traveling to the burial ceremony who is 
        eligible for travel and transportation allowances under 
        paragraph (1) and is qualified to serve as the 
        attendant.
    ``(b) Limitations.--(1) Except as provided in paragraphs 
(2) and (3), allowances under subsection (a) are limited to 
travel and transportation to a location in the United States, 
Puerto Rico, and the possessions of the United States and may 
not exceed the rates for two days and the time necessary for 
such travel.
    ``(2) If a deceased member was ordered or called to active 
duty from a place outside the United States, Puerto Rico, or 
the possessions of the United States, the allowances authorized 
under subsection (a) may be provided to and from such place and 
may not exceed the rates for two days and the time necessary 
for such travel.
    ``(3) If a deceased member is interred in a cemetery 
maintained by the American Battle Monuments Commission, the 
travel and transportation allowances authorized under 
subsection (a) may be provided to and from such cemetery and 
may not exceed the rates for two days and the time necessary 
for such travel.
    ``(c) Eligible Relatives.--(1) The following members of the 
family of a deceased member of the uniformed services are 
eligible for the travel and transportation allowances under 
subsection (a)(1):
            ``(A) The surviving spouse (including a remarried 
        surviving spouse) of the deceased member.
            ``(B) The unmarried child or children of the 
        deceased member referred to in section 401(a)(2) of 
        this title.
            ``(C) If no person described in subparagraph (A) or 
        (B) is provided travel and transportation allowances 
        under subsection (a)(1), the parent or parents of the 
        deceased member (as defined in section 401(b)(2) of 
        this title).
    ``(2) If no person described in paragraph (1) is provided 
travel and transportation allowances under subsection (a)(1), 
the travel and transportation allowances may be provided to--
            ``(A) the person who directs the disposition of the 
        remains of the deceased member under section 1482(c) of 
        title 10, or, in the case of a deceased member whose 
        remains are commingled and buried in a common grave in 
        a national cemetery, the person who would have been 
        designated under such section to direct the disposition 
        of the remains if individual identification had been 
        made; and
            ``(B) up to two additional persons closely related 
        to the deceased member who are selected by the person 
        referred to in subparagraph (A).
    ``(d) Expanded Allowances Related to Recovery of Remains 
From Vietnam Conflict.--(1) The Secretary of Defense may 
provide round trip travel and transportation allowances for the 
family of a deceased member of the armed forces who died while 
classified as a prisoner of war or as missing in action during 
the Vietnam conflict and whose remains are returned to the 
United States in order that the family members may attend the 
burial ceremony of the deceased member.
    ``(2) The allowances under paragraph (1) shall include 
round trip transportation from the places of residence of such 
family members to the burial ceremony and such living expenses 
and other allowances as the Secretary of Defense considers 
appropriate.
    ``(3) For purposes of paragraph (1), eligible family 
members of the deceased member of the armed forces include the 
following:
            ``(A) The surviving spouse (including a remarried 
        surviving spouse) of the deceased member.
            ``(B) The child or children, including children 
        described in section 401(b)(1) of this title, of the 
        deceased member.
            ``(C) The parent or parents of the deceased member 
        (as defined in section 401(b)(2) of this title).
            ``(D) If no person described in subparagraph (A), 
        (B), or (C) is provided travel and transportation 
        allowances under paragraph (1), any brothers, sisters, 
        halfbrothers, halfsisters, stepbrothers, and 
        stepsisters of the deceased member.
    ``(e) Burial Ceremony Defined.--In this section, the term 
`burial ceremony' includes the following:
            ``(1) An interment of casketed or cremated remains.
            ``(2) A placement of cremated remains in a 
        columbarium.
            ``(3) A memorial service for which reimbursement is 
        authorized under section 1482(d)(2) of title 10.
            ``(4) A burial of commingled remains that cannot be 
        individually identified in a common grave in a national 
        cemetery.
    ``(f) Regulations.--The Secretaries concerned shall 
prescribe uniform regulations to carry out this section.''.
    (b) Repeal of Superseded Laws; Conforming Amendment.--(1) 
Section 1482 of title 10, United States Code, is amended by 
striking subsection (d) and redesignating subsections (e), (f), 
and (g) as subsections (d), (e), and (f), respectively.
    (2) Section 1481(a)(9) of such title is amended by striking 
``section 1482(g)'' and inserting ``section 1482(f)''.
    (3) The Funeral Transportation and Living Expense Benefits 
Act of 1974 (Public Law 93-257; 37 U.S.C. 406 note) is 
repealed.
    (c) Application of Amendment.--Section 411f of title 37, 
United States Code, as amended by subsection (a), shall apply 
with respect to burial ceremonies of deceased members of the 
uniformed services that occur on or after the date of the 
enactment of this Act.

SEC. 639. FUNDED STUDENT TRAVEL FOR FOREIGN STUDY UNDER AN EDUCATION 
                    PROGRAM APPROVED BY A UNITED STATES SCHOOL.

    (a) Availability of Allowance.--Subsection (a) of section 
430 of title 37, United States Code, is amended to read as 
follows:
    ``(a) Availability of Allowance.--(1) Under regulations 
prescribed by the Secretary of Defense, a member of a uniformed 
service may be paid the allowance set forth in subsection (b) 
if the member--
            ``(A) is assigned to a permanent duty station 
        outside the continental United States;
            ``(B) is accompanied by the member's dependents at 
        or near that duty station (unless the member's only 
        dependents are in the category of dependent described 
        in paragraph (2)); and
            ``(C) has an eligible dependent child described in 
        paragraph (2).
    ``(2) An eligible dependent child of a member referred to 
in paragraph (1)(C) is a child who--
            ``(A) is under 23 years of age and unmarried;
            ``(B) is enrolled in a school in the continental 
        United States for the purpose of obtaining a formal 
        education; and
            ``(C) is attending that school or is participating 
        in a foreign study program approved by that school and, 
        pursuant to that foreign study program, is attending a 
        school outside the United States for a period of not 
        more than one year.''.
    (b) Type of Allowance Authorized.--Subsection (b) of such 
section is amended--
            (1) by inserting ``Allowance Authorized.--'' after 
        ``(b)'';
            (2) in the first sentence of paragraph (1), by 
        striking ``each unmarried dependent child,'' and all 
        that follows through ``the school being attended'' and 
        inserting ``each eligible dependent child of the member 
        of one annual trip between the school being attended by 
        that child''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(3) The transportation allowance paid under paragraph (1) 
for an annual trip of an eligible dependent child who is 
attending a school outside the United States may not exceed the 
transportation allowance that would be paid under this section 
for the annual trip of that child between the child's school in 
the continental United States and the member's duty station 
outside the continental United States and return.''.
    (c) Clerical and Conforming Amendments.--Such section is 
further amended--
            (1) in subsection (c), by inserting ``Use of 
        Airlift and Sealift Command.--'' after ``(c)'';
            (2) in subsection (d)--
                    (A) by inserting ``Attendance at School in 
                Alaska or Hawaii.--'' after ``(d)''; and
                    (B) by striking ``subsection (a)(3)'' and 
                inserting ``subsection (a)(2)'';
            (3) in subsection (e), by inserting ``Exception.--
        '' after ``(e)''; and
            (4) in subsection (f), by inserting 
        ``Definitions.--'' after ``(f)''.
    (d) Application of Amendments.--The amendments made by this 
section shall apply with respect to travel described in 
subsection (b) of section 430 of title 37, United States Code, 
as amended by this section, that commences on or after the date 
of the enactment of this Act.

          Subtitle D--Retirement and Survivor Benefit Matters

SEC. 641. CONTINGENT AUTHORITY FOR CONCURRENT RECEIPT OF MILITARY 
                    RETIRED PAY AND VETERANS' DISABILITY COMPENSATION 
                    AND ENHANCEMENT OF SPECIAL COMPENSATION AUTHORITY.

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

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

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

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

    (d) Prohibition of Retroactive Benefits.--If the provisions 
of subsection (a) of section 1414 of title 10, United States 
Code, becomes effective in accordance with subsection (f) of 
that section, no benefit may be paid to any person by reason of 
those provisions for any period before the effective date 
specified in subsection (e) of that section.
    (e) Enhancement of Special Compensation Authority.--(1) 
Subsection (b) of section 1413 of title 10, United States Code, 
is amended by striking paragraphs (1), (2), and (3) and 
inserting the following:
            ``(1) For payments for months beginning with 
        February 2002 and ending with December 2002, the 
        following:
                    ``(A) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as total, $300.
                    ``(B) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 90 percent, $200.
                    ``(C) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 80 percent or 70 percent, $100.
                    ``(D) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 60 percent, $50.
            ``(2) For payments for months beginning with 
        January 2003 and ending with September 2004, the 
        following:
                    ``(A) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as total, $325.
                    ``(B) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 90 percent, $225.
                    ``(C) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 80 percent, $125.
                    ``(D) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 70 percent, $100.
                    ``(E) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 60 percent, $50.
            ``(3) For payments for months after September 2004, 
        the following:
                    ``(A) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as total, $350.
                    ``(B) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 90 percent, $250.
                    ``(C) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 80 percent, $150.
                    ``(D) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 70 percent, $125.
                    ``(E) For any month for which the retiree 
                has a qualifying service-connected disability 
                rated as 60 percent, $50.''.
    (2) Subsection (d)(2) of such section is amended by 
striking ``70 percent'' and inserting ``60 percent''.
    (3) The amendments made by this subsection shall take 
effect on February 1, 2002.

SEC. 642. SURVIVOR BENEFIT PLAN ANNUITIES FOR SURVIVING SPOUSES OF 
                    MEMBERS WHO DIE WHILE ON ACTIVE DUTY AND NOT 
                    ELIGIBLE FOR RETIREMENT.

    (a) Surviving Spouse Annuity.--Paragraph (1) of section 
1448(d) of title 10, United States Code, is amended to read as 
follows:
            ``(1) Surviving spouse annuity.--The Secretary 
        concerned shall pay an annuity under this subchapter to 
        the surviving spouse of--
                    ``(A) a member who dies while on active 
                duty after--
                            ``(i) becoming eligible to receive 
                        retired pay;
                            ``(ii) qualifying for retired pay 
                        except that the member has not applied 
                        for or been granted that pay; or
                            ``(iii) completing 20 years of 
                        active service but before the member is 
                        eligible to retire as a commissioned 
                        officer because the member has not 
                        completed 10 years of active 
                        commissioned service; or
                    ``(B) a member not described in 
                subparagraph (A) who dies in line of duty while 
                on active duty.''.
    (b) Computation of Annuity.--Section 1451(c)(1) of such 
title is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``based upon his years of 
                active service when he died.'' and inserting 
                ``when he died determined as follows:
                            ``(i) In the case of an annuity 
                        provided under section 1448(d) of this 
                        title (other than in a case covered by 
                        clause (ii)), such retired pay shall be 
                        computed as if the member had been 
                        retired under section 1201 of this 
                        title on the date of the member's death 
                        with a disability rated as total.
                            ``(ii) In the case of an annuity 
                        provided under section 1448(d)(1)(A) of 
                        this title by reason of the death of a 
                        member not in line of duty, such 
                        retired pay shall be computed based 
                        upon the member's years of active 
                        service when he died.
                            ``(iii) In the case of an annuity 
                        provided under section 1448(f) of this 
                        title, such retired pay shall be 
                        computed based upon the member or 
                        former member's years of active service 
                        when he died computed under section 
                        12733 of this title.''; and
            (2) in subparagraph (B)(i), by striking ``if the 
        member or former member'' and all that follows and 
        inserting ``as determined under subparagraph (A).''.
    (c) Conforming Amendments.--(1) The heading for subsection 
(d) of section 1448 of such title is amended by striking 
``Retirement-Eligible''.
    (2) Subsection (c)(3) of section 1451 of such title is 
amended by striking ``1448(d)(1)(B) or 1448(d)(1)(C)'' and 
inserting ``clause (ii) or (iii) of section 1448(d)(1)(A)''.
    (d) Effective Date.--The amendments made by this section 
shall take effect as of September 10, 2001, and shall apply 
with respect to deaths of members of the Armed Forces occurring 
on or after that date.

                       Subtitle E--Other Matters

SEC. 651. PAYMENT FOR UNUSED LEAVE IN EXCESS OF 60 DAYS ACCRUED BY 
                    MEMBERS OF RESERVE COMPONENTS ON ACTIVE DUTY FOR 
                    ONE YEAR OR LESS.

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

SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR FAMILIES OF 
                    MEMBERS OF THE ARMED FORCES.

    (a) Authority.--During fiscal year 2002, the Secretary of 
Defense may provide assistance for families of members of the 
Armed Forces serving on active duty in order to ensure that the 
children of such members obtain needed child care, education, 
and other youth services.
    (b) Primary Purpose of Assistance.--The assistance 
authorized by this section should be directed primarily toward 
providing needed family support, including child care, 
education, and other youth services, for children of members of 
the Armed Forces who are deployed, assigned to duty, or ordered 
to active duty in connection with the contingency operation 
known as Operation Enduring Freedom.

SEC. 653. AUTHORIZATION OF TRANSITIONAL COMPENSATION AND COMMISSARY AND 
                    EXCHANGE BENEFITS FOR DEPENDENTS OF COMMISSIONED 
                    OFFICERS OF THE PUBLIC HEALTH SERVICE AND THE 
                    NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION WHO 
                    ARE SEPARATED FOR DEPENDENT ABUSE.

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

SEC. 654. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE UNDER 
                    MONTGOMERY GI BILL BY MEMBERS OF THE ARMED FORCES 
                    WITH CRITICAL MILITARY SKILLS.

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

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

    ``(a) In General.--Subject to the provisions of this 
section, each Secretary concerned may, for the purpose of 
enhancing recruitment and retention of members of the Armed 
Forces with critical military skills and at such Secretary's 
sole discretion, permit an individual described in subsection 
(b) who is entitled to basic educational assistance under this 
subchapter to elect to transfer to one or more of the 
dependents specified in subsection (c) a portion of such 
individual's entitlement to such assistance, subject to the 
limitation under subsection (d).
    ``(b) Eligible Individuals.--An individual referred to in 
subsection (a) is any member of the Armed Forces who, at the 
time of the approval by the Secretary concerned of the member's 
request to transfer entitlement to basic educational assistance 
under this section--
            ``(1) has completed six years of service in the 
        Armed Forces;
            ``(2) either--
                    ``(A) has a critical military skill 
                designated by the Secretary concerned for 
                purposes of this section; or
                    ``(B) is in a military specialty designated 
                by the Secretary concerned for purposes of this 
                section as requiring critical military skills; 
                and
            ``(3) enters into an agreement to serve at least 
        four more years as a member of the Armed Forces.
    ``(c) Eligible Dependents.--An individual approved to 
transfer an entitlement to basic educational assistance under 
this section may transfer the individual's entitlement as 
follows:
            ``(1) To the individual's spouse.
            ``(2) To one or more of the individual's children.
            ``(3) To a combination of the individuals referred 
        to in paragraphs (1) and (2).
    ``(d) Limitation on Months of Transfer.--The total number 
of months of entitlement transferred by an individual under 
this section may not exceed 18 months.
    ``(e) Designation of Transferee.--An individual 
transferring an entitlement to basic educational assistance 
under this section shall--
            ``(1) designate the dependent or dependents to whom 
        such entitlement is being transferred;
            ``(2) designate the number of months of such 
        entitlement to be transferred to each such dependent; 
        and
            ``(3) specify the period for which the transfer 
        shall be effective for each dependent designated under 
        paragraph (1).
    ``(f) Time for Transfer; Revocation and Modification.--(1) 
Subject to the time limitation for use of entitlement under 
section 3031 of this title, an individual approved to transfer 
entitlement to basic educational assistance under this section 
may transfer such entitlement at any time after the approval of 
the individual's request to transfer such entitlement without 
regard to whether the individual is a member of the Armed 
Forces when the transfer is executed.
    ``(2)(A) An individual transferring entitlement under this 
section may modify or revoke at any time the transfer of any 
unused portion of the entitlement so transferred.
    ``(B) The modification or revocation of the transfer of 
entitlement under this paragraph shall be made by the submittal 
of written notice of the action to both the Secretary concerned 
and the Secretary of Veterans Affairs.
    ``(g) Commencement of Use.--A dependent to whom entitlement 
to basic educational assistance is transferred under this 
section may not commence the use of the transferred entitlement 
until--
            ``(1) in the case of entitlement transferred to a 
        spouse, the completion by the individual making the 
        transfer of six years of service in the Armed Forces; 
        or
            ``(2) in the case of entitlement transferred to a 
        child, both--
                    ``(A) the completion by the individual 
                making the transfer of 10 years of service in 
                the Armed Forces; and
                    ``(B) either--
                            ``(i) the completion by the child 
                        of the requirements of a secondary 
                        school diploma (or equivalency 
                        certificate); or
                            ``(ii) the attainment by the child 
                        of 18 years of age.
    ``(h) Additional Administrative Matters.--(1) The use of 
any entitlement to basic educational assistance transferred 
under this section shall be charged against the entitlement of 
the individual making the transfer at the rate of one month for 
each month of transferred entitlement that is used.
    ``(2) Except as provided under subsection (e)(2) and 
subject to paragraphs (4) and (5), a dependent to whom 
entitlement is transferred under this section is entitled to 
basic educational assistance under this subchapter in the same 
manner and at the same rate as the individual from whom the 
entitlement was transferred.
    ``(3) The death of an individual transferring an 
entitlement under this section shall not affect the use of the 
entitlement by the dependent to whom the entitlement is 
transferred.
    ``(4) Notwithstanding section 3031 of this title, a child 
to whom entitlement is transferred under this section may not 
use any entitlement so transferred after attaining the age of 
26 years.
    ``(5) The administrative provisions of this chapter 
(including the provisions set forth in section 3034(a)(1) of 
this title) shall apply to the use of entitlement transferred 
under this section, except that the dependent to whom the 
entitlement is transferred shall be treated as the eligible 
veteran for purposes of such provisions.
    ``(6) The purposes for which a dependent to whom 
entitlement is transferred under this section may use such 
entitlement shall include the pursuit and completion of the 
requirements of a secondary school diploma (or equivalency 
certificate).
    ``(i) Overpayment.--(1) In the event of an overpayment of 
basic educational assistance with respect to a dependent to 
whom entitlement is transferred under this section, the 
dependent and the individual making the transfer shall be 
jointly and severally liable to the United States for the 
amount of the overpayment for purposes of section 3685 of this 
title.
    ``(2) Except as provided in paragraph (3), if an individual 
transferring entitlement under this section fails to complete 
the service agreed to by the individual under subsection (b)(3) 
in accordance with the terms of the agreement of the individual 
under that subsection, the amount of any transferred 
entitlement under this section that is used by a dependent of 
the individual as of the date of such failure shall be treated 
as an overpayment of basic educational assistance under 
paragraph (1).
    ``(3) Paragraph (2) shall not apply in the case of an 
individual who fails to complete service agreed to by the 
individual--
            ``(A) by reason of the death of the individual; or
            ``(B) for a reason referred to in section 
        3011(a)(1)(A)(ii)(I) of this title.
    ``(j) Approvals of Transfer Subject to Availability of 
Appropriations.--The Secretary concerned may approve transfers 
of entitlement to basic educational assistance under this 
section in a fiscal year only to the extent that appropriations 
for military personnel are available in that fiscal year for 
purposes of making deposits in the Department of Defense 
Education Benefits Fund under section 2006 of title 10 in that 
fiscal year to cover the present value of future benefits 
payable from the Fund for the Department of Defense portion of 
payments of basic educational assistance attributable to 
increased usage of benefits as a result of such transfers of 
entitlement in that fiscal year.
    ``(k) Regulations.--The Secretary of Defense shall 
prescribe regulations for purposes of this section. Such 
regulations shall specify the manner and effect of an election 
to modify or revoke a transfer of entitlement under subsection 
(f)(2) and shall specify the manner of the applicability of the 
administrative provisions referred to in subsection (h)(5) to a 
dependent to whom entitlement is transferred under this 
section.
    ``(l) Annual Report.--(1) Not later than January 31 each 
year (beginning in 2003), the Secretary of Defense shall submit 
to the Committees on Armed Services and the Committees on 
Veterans' Affairs of the Senate and House of Representatives a 
report on the transfers of entitlement to basic educational 
assistance under this section that were approved by each 
Secretary concerned during the preceding fiscal year.
    ``(2) Each report shall set forth--
            ``(A) the number of transfers of entitlement under 
        this section that were approved by such Secretary 
        during the preceding fiscal year; or
            ``(B) if no transfers of entitlement under this 
        section were approved by such Secretary during that 
        fiscal year, a justification for such Secretary's 
        decision not to approve any such transfers of 
        entitlement during that fiscal year.
    ``(m) Secretary Concerned Defined.--Notwithstanding section 
101(25) of this title, in this section, the term `Secretary 
concerned' means--
            ``(1) the Secretary of the Army with respect to 
        matters concerning the Army;
            ``(2) the Secretary of the Navy with respect to 
        matters concerning the Navy or the Marine Corps;
            ``(3) the Secretary of the Air Force with respect 
        to matters concerning the Air Force; and
            ``(4) the Secretary of 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 new 
subparagraph:
                    ``(D) The present value of future benefits 
                payable from the Fund for the Department of 
                Defense portion of payments of educational 
                assistance under subchapter II of chapter 30 of 
                title 38 attributable to increased usage of 
                benefits as a result of transfers of 
                entitlement to basic educational assistance 
                under section 3020 of that title during such 
                period.''.
    (c) Plan for Implementation.--Not later than June 30, 2002, 
the Secretary of Defense shall submit to Congress a report 
describing the manner in which the Secretaries of the military 
departments and the Secretary of Transportation propose to 
exercise the authority granted by section 3020 of title 38, 
United States Code, as added by subsection (a). The report 
shall include the regulations prescribed under subsection (k) 
of that section for purposes of the exercise of the authority.
    (d) Funding for Fiscal Year 2002.--Of the amount authorized 
to be appropriated to the Department of Defense for military 
personnel for fiscal year 2002 by section 421, $30,000,000 may 
be available in fiscal year 2002 for deposit into the 
Department of Defense Education Benefits Fund under section 
2006 of title 10, United States Code, for purposes of covering 
payments of amounts under subparagraph (D) of section 
2006(b)(2) of such title (as added by subsection (b)), as a 
result of transfers of entitlement to basic educational 
assistance under section 3020 of title 38, United States Code 
(as added by subsection (a)).

                   TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

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

                     Subtitle B--Senior Health Care

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

                     Subtitle C--Studies and Reports

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

                        Subtitle D--Other Matters

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

                Subtitle A--TRICARE Program Improvements

SEC. 701. SUB-ACUTE AND LONG-TERM CARE PROGRAM REFORM.

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

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

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

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

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

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

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

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

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

SEC. 702. PROSTHETICS AND HEARING AIDS.

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

SEC. 703. DURABLE MEDICAL EQUIPMENT.

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

SEC. 704. REHABILITATIVE THERAPY.

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

SEC. 705. REPORT ON MENTAL HEALTH BENEFITS.

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

SEC. 706. CLARIFICATION OF ELIGIBILITY FOR REIMBURSEMENT OF TRAVEL 
                    EXPENSES OF ADULT ACCOMPANYING PATIENT IN TRAVEL 
                    FOR SPECIALTY CARE.

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

SEC. 707. TRICARE PROGRAM LIMITATIONS ON PAYMENT RATES FOR 
                    INSTITUTIONAL HEALTH CARE PROVIDERS AND ON BALANCE 
                    BILLING BY INSTITUTIONAL AND NONINSTITUTIONAL 
                    HEALTH CARE PROVIDERS.

    (a) Institutional Providers.--Section 1079(j) of title 10, 
United States Code, is amended--
            (1) in paragraph (2)(A)--
                    (A) by striking ``(A)''; and
                    (B) by striking ``may be determined under 
                joint regulations'' and inserting ``shall be 
                determined under joint regulations'';
            (2) by redesignating subparagraph (B) of paragraph 
        (2) as paragraph (4), and, in such paragraph, as so 
        redesignated, by striking ``subparagraph (A),'' and 
        inserting ``this subsection,''; and
            (3) by inserting before paragraph (4), as 
        redesignated by paragraph (2), the following new 
        paragraph (3):
    ``(3) A contract for a plan covered by this section shall 
include a clause that prohibits each provider of services under 
the plan from billing any person covered by the plan for any 
balance of charges for services in excess of the amount paid 
for those services under the joint regulations referred to in 
paragraph (2), except for any unpaid amounts of deductibles or 
copayments that are payable directly to the provider by the 
person.''.
    (b) Noninstitutional Providers.--Section 1079(h)(4) of such 
title is amended--
            (1) by inserting ``(A)'' after ``(4)''; and
            (2) by adding at the end the following new 
        subparagraph:
    ``(B) The regulations shall include a restriction that 
prohibits an individual health care professional (or other 
noninstitutional health care provider) from billing a 
beneficiary for services for more than the amount that is equal 
to--
            ``(i) the excess of the limiting charge (as defined 
        in section 1848(g)(2) of the Social Security Act (42 
        U.S.C. 1395w-4(g)(2))) that would be applicable if the 
        services had been provided by the professional (or 
        other provider) as an individual health care 
        professional (or other noninstitutional health care 
        provider) on a nonassignment-related basis under part B 
        of title XVIII of such Act over the amount that is 
        payable by the United States for those services under 
        this subsection, plus
            ``(ii) any unpaid amounts of deductibles or 
        copayments that are payable directly to the 
        professional (or other provider) by the beneficiary.''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on the date that is 90 days after the date of 
the enactment of this Act.

SEC. 708. IMPROVEMENTS IN ADMINISTRATION OF THE TRICARE PROGRAM.

    (a) Flexibility in Contracting.--(1) During the one-year 
period following the date of the enactment of this Act, section 
1072(7) of title 10, United States Code, shall be deemed to be 
amended by striking ``the competitive selection of contractors 
to financially underwrite''.
    (2) The terms and conditions of any contract to provide 
health care services under the TRICARE program entered into 
during the period described in paragraph (1) shall not be 
considered to be modified or terminated as a result of the 
termination of such period.
    (b) Reduction of Contract Start-Up Time.--Section 1095c(b) 
of such title is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The'' and inserting 
                ``Except as provided in paragraph (3), the''; 
                and
                    (B) by striking ``contract.'' and all that 
                follows through ``as soon as practicable after 
                the award of the''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(3) The Secretary may reduce the nine-month start-up 
period required under paragraph (1) if--
            ``(A) the Secretary--
                    ``(i) determines that a shorter period is 
                sufficient to ensure effective implementation 
                of all contract requirements; and
                    ``(ii) submits notification to the 
                Committees on Armed Services of the House of 
                Representatives and the Senate of the 
                Secretary's intent to reduce the nine-month 
                start-up period; and
            ``(B) 60 days have elapsed since the date of such 
        notification.''.

                     Subtitle B--Senior Health Care

SEC. 711. CLARIFICATIONS AND IMPROVEMENTS REGARDING THE DEPARTMENT OF 
                    DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND.

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

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

    (3) The item relating to section 1111 in the table of 
sections at the beginning of chapter 56 of such title is 
amended to read as follows:

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

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

                    Subtitle C--Studies and Reports

SEC. 721. COMPTROLLER GENERAL STUDY OF HEALTH CARE COVERAGE OF MEMBERS 
                    OF THE RESERVE COMPONENTS OF THE ARMED FORCES AND 
                    THE NATIONAL GUARD.

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

SEC. 722. COMPTROLLER GENERAL STUDY OF ADEQUACY AND QUALITY OF HEALTH 
                    CARE PROVIDED TO WOMEN UNDER THE DEFENSE HEALTH 
                    PROGRAM.

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

SEC. 723. REPEAL OF OBSOLETE REPORT REQUIREMENT.

    Section 701 of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 10 U.S.C. 1074g note) is 
amended by striking subsection (d).

SEC. 724. COMPTROLLER GENERAL REPORT ON REQUIREMENT TO PROVIDE 
                    SCREENINGS, PHYSICAL EXAMINATIONS, AND OTHER CARE 
                    FOR CERTAIN MEMBERS.

    (a) Report Required.--The Comptroller General shall prepare 
a report on the advisability, need, and cost effectiveness of 
the requirements under section 1074a(d) of title 10, United 
States Code, that the Secretary of the Army provide medical and 
dental screenings, physical examinations, and certain dental 
care for early deploying members of the Selected Reserve. The 
report shall include any recommendations for changes to such 
requirements based on the most current information available on 
the value of periodic physical examinations and any role such 
examinations play in monitoring force and individual member 
pre-deployment and post-deployment health status.
    (b) Deadline for Submission.--The report required by 
subsection (a) shall be provided to the Committees on Armed 
Services of the Senate and the House of Representatives not 
later than June 1, 2002.

                       Subtitle D--Other Matters

SEC. 731. PROHIBITION AGAINST REQUIRING MILITARY RETIREES TO RECEIVE 
                    HEALTH CARE SOLELY THROUGH THE DEPARTMENT OF 
                    DEFENSE.

    (a) Prohibition.--Chapter 55 of title 10, United States 
Code, is amended by inserting after section 1086a the following 
new section:

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

    ``The Secretary of Defense may not take any action that 
would require, or have the effect of requiring, a member or 
former member of the armed forces who is entitled to retired or 
retainer pay to enroll to receive health care from the Federal 
Government only through the Department of Defense.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 1086a the following new item:

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

SEC. 732. FEES FOR TRAUMA AND OTHER MEDICAL CARE PROVIDED TO CIVILIANS.

    (a) Requirement To Implement Procedures.--(1) Chapter 55 of 
title 10, United States Code, is amended by inserting after 
section 1079a the following new section:

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

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

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

    (b) Deadline for Implementation.--The Secretary of Defense 
shall begin to implement the procedures required by section 
1079b(a) of title 10, United States Code (as added by 
subsection (a)), not later than one year after the date of the 
enactment of this Act.

SEC. 733. ENHANCEMENT OF MEDICAL PRODUCT DEVELOPMENT.

    Section 980 of title 10, United States Code, is amended--
            (1) by inserting ``(a)'' before ``Funds''; and
            (2) by adding at the end the following new 
        subsection:
    ``(b) The Secretary of Defense may waive the prohibition in 
this section with respect to a specific research project to 
advance the development of a medical product necessary to the 
armed forces if the research project may directly benefit the 
subject and is carried out in accordance with all other 
applicable laws.''.

SEC. 734. PILOT PROGRAM PROVIDING FOR DEPARTMENT OF VETERANS AFFAIRS 
                    SUPPORT IN THE PERFORMANCE OF SEPARATION PHYSICAL 
                    EXAMINATIONS.

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

SEC. 735. MODIFICATION OF PROHIBITION ON REQUIREMENT OF NONAVAILABILITY 
                    STATEMENT OR PREAUTHORIZATION.

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

SEC. 736. TRANSITIONAL HEALTH CARE FOR MEMBERS SEPARATED FROM ACTIVE 
                    DUTY.

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

SEC. 737. TWO-YEAR EXTENSION OF HEALTH CARE MANAGEMENT DEMONSTRATION 
                    PROGRAM.

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

SEC. 738. JOINT DOD-VA PILOT PROGRAM FOR PROVIDING GRADUATE MEDICAL 
                    EDUCATION AND TRAINING FOR PHYSICIANS.

    (a) In General.--The Secretary of Defense and the Secretary 
of Veterans Affairs may jointly carry out a pilot program under 
which graduate medical education and training is provided to 
military physicians and physician employees of the Department 
of Defense and the Department of Veterans Affairs through one 
or more programs carried out in military medical treatment 
facilities of the Department of Defense and medical centers of 
the Department of Veterans Affairs.
    (b) Cost-Sharing Agreement.--If the Secretary of Defense 
and the Secretary of Veterans Affairs carry out a pilot program 
under subsection (a), the Secretaries shall enter into an 
agreement for carrying out the pilot program under which means 
are established for each respective Secretary to assist in 
paying the costs, with respect to individuals under the 
jurisdiction of such Secretary, incurred by the other Secretary 
in providing medical education and training under the pilot 
program.
    (c) Use of Existing Authorities.--To carry out the pilot 
program, the Secretary of Defense and the Secretary of Veterans 
Affairs shall exercise authorities provided to the Secretaries, 
respectively, under other laws relating to the furnishing or 
support of medical education and the cooperative use of 
facilities.
    (d) Period of Program.--If the Secretary of Defense and the 
Secretary of Veterans Affairs carry out a pilot program under 
subsection (a), such pilot program shall begin not later than 
August 1, 2002, and shall terminate on July 31, 2007.
    (e) Reports.--If the Secretary of Defense and the Secretary 
of Veterans Affairs carry out a pilot program under subsection 
(a), not later than January 31, 2003, and January 31 of each 
year thereafter through 2008, the Secretaries shall jointly 
submit to Congress a report on the pilot program. The report 
shall cover the preceding year and shall include each 
Secretary's assessment of the efficacy of providing education 
and training under the program.

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

          Subtitle A--Procurement Management and Administration

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

                  Subtitle B--Use of Preferred Sources

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

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

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

                        Subtitle D--Other Matters

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

         Subtitle A--Procurement Management and Administration

SEC. 801. MANAGEMENT OF PROCUREMENT OF SERVICES.

    (a) Responsibility of Under Secretary of Defense for 
Acquisition, Technology, and Logistics.--Section 133(b)(2) of 
title 10, United States Code, is amended by inserting ``of 
goods and services'' after ``procurement''.
    (b) Requirement for Management Structure.--(1) Chapter 137 
of such title is amended by inserting after section 2328 the 
following new section:

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

    ``(a) Requirement for Management Structure.--(1) The 
Secretary of Defense shall establish and implement a management 
structure for the procurement of services for the Department of 
Defense. The management structure shall be comparable to the 
management structure that applies to the procurement of 
products by the Department.
    ``(2) The management structure required by paragraph (1) 
shall--
            ``(A) provide for a designated official in each 
        military department to exercise responsibility for the 
        management of the procurement of services for such 
        department;
            ``(B) provide for a designated official for Defense 
        Agencies and other defense components outside the 
        military departments to exercise responsibility for the 
        management of the procurement of services for such 
        Defense Agencies and components;
            ``(C) include a means by which employees of the 
        departments, Defense Agencies, and components are 
        accountable to such designated officials for carrying 
        out the requirements of subsection (b); and
            ``(D) establish specific dollar thresholds and 
        other criteria for advance approvals of purchases under 
        subsection (b)(1)(C) and delegations of activity under 
        subsection (b)(2).
    ``(b) Contracting Responsibilities of Designated 
Officials.--(1) The responsibilities of an official designated 
under subsection (a) shall include, with respect to the 
procurement of services for the military department or Defense 
Agencies and components by that official, the following:
            ``(A) Ensuring that the services are procured by 
        means of contracts or task orders that are in the best 
        interests of the Department of Defense and are entered 
        into or issued and managed in compliance with 
        applicable statutes, regulations, directives, and other 
        requirements, regardless of whether the services are 
        procured through a contract or task order of the 
        Department of Defense or through a contract entered 
        into or task order issued by an official of the United 
        States outside the Department of Defense.
            ``(B) Analyzing data collected under section 2330a 
        of this title on contracts that are entered into for 
        the procurement of services.
            ``(C) Approving, in advance, any procurement of 
        services above the thresholds established pursuant to 
        subsection (a)(2)(D) that is to be made through the use 
        of--
                    ``(i) a contract or task order that is not 
                a performance-based contract or task order; or
                    ``(ii) a contract entered into, or a task 
                order issued, by an official of the United 
                States outside the Department of Defense.
    ``(2) The responsibilities of a designated official may be 
delegated to other employees of the Department of Defense in 
accordance with the criteria established by the Secretary of 
Defense.
    ``(c) Definition.--In this section, the term `performance-
based', with respect to a contract or a task order means that 
the contract or task order, respectively, includes the use of 
performance work statements that set forth requirements in 
clear, specific, and objective terms with measurable 
outcomes.''.
    (2) Not later than 180 days after the date of the enactment 
of this Act--
            (A) the Secretary of Defense shall establish and 
        implement the management structure required under 
        section 2330 of title 10, United States Code (as added 
        by paragraph (1)); and
            (B) the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics shall issue guidance for 
        officials in the management structure established under 
        such section 2330 regarding how to carry out their 
        responsibilities under that section.
    (c) Tracking of Procurement of Services.--Chapter 137 of 
title 10, United States Code, as amended by subsection (b), is 
further amended by inserting after section 2330 the following 
new section:

``Sec. 2330a. Procurement of services: tracking of purchases

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

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

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

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

SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERVICES.

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

SEC. 803. COMPETITION REQUIREMENT FOR PURCHASE OF SERVICES PURSUANT TO 
                    MULTIPLE AWARD CONTRACTS.

    (a) Regulations Required.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall promulgate in the Department of Defense Supplement to the 
Federal Acquisition Regulation regulations requiring 
competition in the purchase of services by the Department of 
Defense pursuant to multiple award contracts.
    (b) Content of Regulations.--(1) The regulations required 
by subsection (a) shall provide, at a minimum, that each 
individual purchase of services in excess of $100,000 that is 
made under a multiple award contract shall be made on a 
competitive basis unless a contracting officer of the 
Department of Defense--
            (A) waives the requirement on the basis of a 
        determination that--
                    (i) one of the circumstances described in 
                paragraphs (1) through (4) of section 2304c(b) 
                of title 10, United States Code, applies to 
                such individual purchase; or
                    (ii) a statute expressly authorizes or 
                requires that the purchase be made from a 
                specified source; and
            (B) justifies the determination in writing.
    (2) For purposes of this subsection, an individual purchase 
of services is made on a competitive basis only if it is made 
pursuant to procedures that--
            (A) require fair notice of the intent to make that 
        purchase (including a description of the work to be 
        performed and the basis on which the selection will be 
        made) to be provided to all contractors offering such 
        services under the multiple award contract; and
            (B) afford all contractors responding to the notice 
        a fair opportunity to make an offer and have that offer 
        fairly considered by the official making the purchase.
    (3) Notwithstanding paragraph (2), notice may be provided 
to fewer than all contractors offering such services under a 
multiple award contract described in subsection (c)(2)(A) if 
notice is provided to as many contractors as practicable.
    (4) A purchase may not be made pursuant to a notice that is 
provided to fewer than all contractors under paragraph (3) 
unless--
            (A) offers were received from at least three 
        qualified contractors; or
            (B) a contracting officer of the Department of 
        Defense determines in writing that no additional 
        qualified contractors were able to be identified 
        despite reasonable efforts to do so.
    (c) Definitions.--In this section:
            (1) The term ``individual purchase'' means a task 
        order, delivery order, or other purchase.
            (2) The term ``multiple award contract'' means--
                    (A) a contract that is entered into by the 
                Administrator of General Services under the 
                multiple award schedule program referred to in 
                section 2302(2)(C) of title 10, United States 
                Code;
                    (B) a multiple award task order contract 
                that is entered into under the authority of 
                sections 2304a through 2304d of title 10, 
                United States Code, or sections 303H through 
                303K of the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 253h through 
                253k); and
                    (C) any other indefinite delivery, 
                indefinite quantity contract that is entered 
                into by the head of a Federal agency with two 
                or more sources pursuant to the same 
                solicitation.
            (3) The term ``Defense Agency'' has the meaning 
        given that term in section 101(a)(11) of title 10, 
        United States Code.
    (d) Applicability.--The regulations promulgated by the 
Secretary pursuant to subsection (a) shall take effect not 
later than 180 days after the date of the enactment of this Act 
and shall apply to all individual purchases of services that 
are made under multiple award contracts on or after the 
effective date, without regard to whether the multiple award 
contracts were entered into before, on, or after such effective 
date.

SEC. 804. REPORTS ON MATURITY OF TECHNOLOGY AT INITIATION OF MAJOR 
                    DEFENSE ACQUISITION PROGRAMS.

    (a) Reports Required.--Not later than March 1 of each of 
years 2003 through 2006, the Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the implementation of the 
requirement in paragraph 4.7.3.2.2.2 of Department of Defense 
Instruction 5000.2, as in effect on the date of enactment of 
this Act, that technology must have been demonstrated in a 
relevant environment (or, preferably, in an operational 
environment) to be considered mature enough to use for product 
development in systems integration.
    (b) Contents of Reports.--Each report required by 
subsection (a) shall--
            (1) identify each case in which a major defense 
        acquisition program entered system development and 
        demonstration during the preceding calendar year and 
        into which key technology has been incorporated that 
        does not meet the technological maturity requirement 
        described in subsection (a), and provide a 
        justification for why such key technology was 
        incorporated; and
            (2) identify any determination of technological 
        maturity with which the Deputy Under Secretary of 
        Defense for Science and Technology did not concur and 
        explain how the issue has been or will be resolved.
    (c) Major Defense Acquisition Program Defined.--In this 
section, the term ``major defense acquisition program'' has the 
meaning given that term in section 139(a)(2) of title 10, 
United States Code.

                  Subtitle B--Use of Preferred Sources

SEC. 811. APPLICABILITY OF COMPETITION REQUIREMENTS TO PURCHASES FROM A 
                    REQUIRED SOURCE.

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

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

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

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

    (b) Applicability.--Section 2410n of title 10, United 
States Code (as added by subsection (a)), shall apply to 
purchases initiated on or after October 1, 2001.

SEC. 812. EXTENSION OF MENTOR-PROTEGE PROGRAM.

    Section 831 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2302 note) is 
amended--
            (1) in subsection (j)--
                    (A) in paragraph (1), by striking 
                ``September 30, 2002'' and inserting 
                ``September 30, 2005''; and
                    (B) in paragraph (2), by striking 
                ``September 30, 2005'' and inserting 
                ``September 30, 2008''; and
            (2) in subsection (l)(3), by striking ``2004'' and 
        inserting ``2007''.

SEC. 813. INCREASE OF ASSISTANCE LIMITATION REGARDING PROCUREMENT 
                    TECHNICAL ASSISTANCE PROGRAM.

    Section 2414(a)(1) of title 10, United States Code, is 
amended by striking ``$300,000'' and inserting ``$600,000''.

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

SEC. 821. AMENDMENTS TO CONFORM WITH ADMINISTRATIVE CHANGES IN 
                    ACQUISITION PHASE AND MILESTONE TERMINOLOGY AND TO 
                    MAKE RELATED ADJUSTMENTS IN CERTAIN REQUIREMENTS 
                    APPLICABLE AT MILESTONE TRANSITION POINTS.

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

SEC. 822. FOLLOW-ON PRODUCTION CONTRACTS FOR PRODUCTS DEVELOPED 
                    PURSUANT TO PROTOTYPE PROJECTS.

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

SEC. 823. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED PROCEDURES 
                    TO CERTAIN COMMERCIAL ITEMS.

    Section 4202 of the Clinger-Cohen Act of 1996 (divisions D 
and E of Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 
note) is amended in subsection (e) by striking ``January 1, 
2002'' and inserting ``January 1, 2003''.

SEC. 824. ACQUISITION WORKFORCE QUALIFICATIONS.

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

SEC. 825. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE 
                    ACQUISITION 2005 TASK FORCE.

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

                       Subtitle D--Other Matters

SEC. 831. IDENTIFICATION OF ERRORS MADE BY EXECUTIVE AGENCIES IN 
                    PAYMENTS TO CONTRACTORS AND RECOVERY OF AMOUNTS 
                    ERRONEOUSLY PAID.

    (a) Program Required.--(1) Chapter 35 of title 31, United 
States Code, is amended by adding at the end the following new 
subchapter:

                    ``SUBCHAPTER VI--RECOVERY AUDITS

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

    ``(a) Program Required.--The head of each executive agency 
that enters into contracts with a total value in excess of 
$500,000,000 in a fiscal year shall carry out a cost-effective 
program for identifying any errors made in paying the 
contractors and for recovering any amounts erroneously paid to 
the contractors.
    ``(b) Recovery Audits and Activities.--A program of an 
executive agency under subsection (a) shall include recovery 
audits and recovery activities. The head of the executive 
agency shall determine, in accordance with guidance provided 
under subsection (c), the classes of contracts to which 
recovery audits and recovery activities are appropriately 
applied.
    ``(c) OMB Guidance.--The Director of the Office of 
Management and Budget shall issue guidance for the conduct of 
programs under subsection (a). The guidance shall include the 
following:
            ``(1) Definitions of the terms `recovery audit' and 
        `recovery activity' for the purposes of the programs.
            ``(2) The classes of contracts to which recovery 
        audits and recovery activities are appropriately 
        applied under the programs.
            ``(3) Protections for the confidentiality of--
                    ``(A) sensitive financial information that 
                has not been released for use by the general 
                public; and
                    ``(B) information that could be used to 
                identify a person.
            ``(4) Policies and procedures for ensuring that the 
        implementation of the programs does not result in 
        duplicative audits of contractor records.
            ``(5) Policies regarding the types of contracts 
        executive agencies may use for the procurement of 
        recovery services, including guidance for use, in 
        appropriate circumstances, of a contingency contract 
        pursuant to which the head of an executive agency may 
        pay a contractor an amount equal to a percentage of the 
        total amount collected for the United States pursuant 
        to that contract.
            ``(6) Protections for a contractor's records and 
        facilities through restrictions on the authority of a 
        contractor under a contract for the procurement of 
        recovery services for an executive agency--
                    ``(A) to require the production of any 
                record or information by any person other than 
                an officer, employee, or agent of the executive 
                agency;
                    ``(B) to establish, or otherwise have, a 
                physical presence on the property or premises 
                of any private sector entity for the purposes 
                of performing the contract; or
                    ``(C) to act as agents for the Government 
                in the recovery of funds erroneously paid to 
                contractors.
            ``(7) Policies for the appropriate types of 
        management improvement programs authorized by section 
        3564 of this title that executive agencies may carry 
        out to address overpayment problems and the recovery of 
        overpayments.

``Sec. 3562. Disposition of recovered funds

    ``(a) Availability of Funds for Recovery Audits and 
Activities Program.--Funds collected under a program carried 
out by an executive agency under section 3561 of this title 
shall be available to the executive agency for the following 
purposes:
            ``(1) To reimburse the actual expenses incurred by 
        the executive agency in the administration of the 
        program.
            ``(2) To pay contractors for services under the 
        program in accordance with the guidance issued under 
        section 3561(c)(5) of this title.
    ``(b) Funds Not Used for Program.--Any amounts erroneously 
paid by an executive agency that are recovered under such a 
program of an executive agency and are not used to reimburse 
expenses or pay contractors under subsection (a)--
            ``(1) shall be credited to the appropriations from 
        which the erroneous payments were made, shall be merged 
        with other amounts in those appropriations, and shall 
        be available for the purposes and period for which such 
        appropriations are available; or
            ``(2) if no such appropriation remains available, 
        shall be deposited in the Treasury as miscellaneous 
        receipts.
    ``(c) Priority of Other Authorized Dispositions.--
Notwithstanding subsection (b), the authority under such 
subsection may not be exercised to use, credit, or deposit 
funds collected under such a program as provided in that 
subsection to the extent that any other provision of law 
requires or authorizes the crediting of such funds to a 
nonappropriated fund instrumentality, revolving fund, working-
capital fund, trust fund, or other fund or account.

``Sec. 3563. Sources of recovery services

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

``Sec. 3564. Management improvement programs

    ``In accordance with guidance provided by the Director of 
the Office of Management and Budget under section 3561 of this 
title, the head of an executive agency required to carry out a 
program under such section 3561 may carry out a program for 
improving management processes within the executive agency--
            ``(1) to address problems that contribute directly 
        to the occurrence of errors in the paying of 
        contractors of the executive agency; or
            ``(2) to improve the recovery of overpayments due 
        to the agency.

``Sec. 3565. Relationship to authority of inspectors general

    ``Nothing in this subchapter shall be construed as 
impairing the authority of an Inspector General under the 
Inspector General Act of 1978 or any other provision of law.

``Sec. 3566. Privacy protections

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

``Sec. 3567. Definition of executive agency

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

                    ``SUBCHAPTER VI--RECOVERY AUDITS

``3561. Identification of errors made by executive agencies in payments 
          to contractors and recovery of amounts erroneously paid.
``3562. Disposition of recovered funds.
``3563. Sources of recovery services.
``3564. Management improvement programs.
``3565. Relationship to authority of inspectors general.
``3566. Privacy protections.
``3567. Definition of executive agency.''.

    (b) Reports.--(1) Not later than 30 months after the date 
of the enactment of this Act, and annually for each of the 
first two years following the year of the first report, the 
Director of the Office of Management and Budget shall submit to 
the Committee on Government Reform of the House of 
Representatives and the Committee on Governmental Affairs of 
the Senate, a report on the implementation of subchapter VI of 
chapter 35 of title 31, United States Code (as added by 
subsection (a)).
    (2) Each report shall include--
            (A) a general description and evaluation of the 
        steps taken by the heads of executive agencies to carry 
        out the programs under such subchapter, including any 
        management improvement programs carried out under 
        section 3564 of such title 31;
            (B) the costs incurred by executive agencies to 
        carry out the programs under such subchapter; and
            (C) the amounts recovered under the programs under 
        such subchapter.
    (c) Conforming Amendment.--Section 3501 of such title is 
amended by inserting ``and subchapter VI'' after ``section 
3513''.

SEC. 832. CODIFICATION AND MODIFICATION OF PROVISION OF LAW KNOWN AS 
                    THE ``BERRY AMENDMENT''.

    (a) Buy American Requirements.--(1) Chapter 148 of title 
10, United States Code, is amended by inserting after section 
2533 the following new section:

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

    ``(a) Requirement.--Except as provided in subsections (c) 
through (h), funds appropriated or otherwise available to the 
Department of Defense may not be used for the procurement of an 
item described in subsection (b) if the item is not grown, 
reprocessed, reused, or produced in the United States.
    ``(b) Covered Items.--An item referred to in subsection (a) 
is any of the following:
            ``(1) An article or item of--
                    ``(A) food;
                    ``(B) clothing;
                    ``(C) tents, tarpaulins, or covers;
                    ``(D) cotton and other natural fiber 
                products, woven silk or woven silk blends, spun 
                silk yarn for cartridge cloth, synthetic fabric 
                or coated synthetic fabric (including all 
                textile fibers and yarns that are for use in 
                such fabrics), canvas products, or wool 
                (whether in the form of fiber or yarn or 
                contained in fabrics, materials, or 
                manufactured articles); or
                    ``(E) any item of individual equipment 
                manufactured from or containing such fibers, 
                yarns, fabrics, or materials.
            ``(2) Specialty metals, including stainless steel 
        flatware.
            ``(3) Hand or measuring tools.
    ``(c) Availability Exception.--Subsection (a) does not 
apply to the extent that the Secretary of Defense or the 
Secretary of the military department concerned determines that 
satisfactory quality and sufficient quantity of any such 
article or item described in subsection (b)(1) or specialty 
metals (including stainless steel flatware) grown, reprocessed, 
reused, or produced in the United States cannot be procured as 
and when needed at United States market prices.
    ``(d) Exception for Certain Procurements Outside the United 
States.--Subsection (a) does not apply to the following:
            ``(1) Procurements outside the United States in 
        support of combat operations.
            ``(2) Procurements by vessels in foreign waters.
            ``(3) Emergency procurements or procurements of 
        perishable foods by an establishment located outside 
        the United States for the personnel attached to such 
        establishment.
    ``(e) Exception for Specialty Metals and Chemical Warfare 
Protective Clothing.--Subsection (a) does not preclude the 
procurement of specialty metals or chemical warfare protective 
clothing produced outside the United States if--
            ``(1) such procurement is necessary--
                    ``(A) to comply with agreements with 
                foreign governments requiring the United States 
                to purchase supplies from foreign sources for 
                the purposes of offsetting sales made by the 
                United States Government or United States firms 
                under approved programs serving defense 
                requirements; or
                    ``(B) in furtherance of agreements with 
                foreign governments in which both such 
                governments agree to remove barriers to 
                purchases of supplies produced in the other 
                country or services performed by sources of the 
                other country; and
            ``(2) any such agreement with a foreign government 
        complies, where applicable, with the requirements of 
        section 36 of the Arms Export Control Act (22 U.S.C. 
        2776) and with section 2457 of this title.
    ``(f) Exception for Certain Foods.--Subsection (a) does not 
preclude the procurement of foods manufactured or processed in 
the United States.
    ``(g) Exception for Commissaries, Exchanges, and Other 
Nonappropriated Fund Instrumentalities.--Subsection (a) does 
not apply to items purchased for resale purposes in 
commissaries, exchanges, or nonappropriated fund 
instrumentalities operated by the Department of Defense.
    ``(h) Exception for Small Purchases.--Subsection (a) does 
not apply to purchases for amounts not greater than the 
simplified acquisition threshold referred to in section 2304(g) 
of this title.
    ``(i) Applicability to Contracts and Subcontracts for 
Procurement of Commercial Items.--This section is applicable to 
contracts and subcontracts for the procurement of commercial 
items notwithstanding section 34 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 430).
    ``(j) Geographic Coverage.--In this section, the term 
`United States' includes the possessions of the United 
States.''.
    (2) The table of sections at the beginning of subchapter V 
of such chapter is amended by inserting after the item relating 
to section 2533 the following new item:

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

    (b) Repeal of Source Provisions.--The following provisions 
of law are repealed:
            (1) Section 9005 of the Department of Defense 
        Appropriations Act, 1993 (Public Law 102-396; 10 U.S.C. 
        2241 note).
            (2) Section 8109 of the Department of Defense 
        Appropriations Act, 1997 (as contained in section 
        101(b) of Public Law 104-208; 110 Stat. 3009-111; 10 
        U.S.C. 2241 note).

SEC. 833. PERSONAL SERVICES CONTRACTS TO BE PERFORMED BY INDIVIDUALS OR 
                    ORGANIZATIONS ABROAD.

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

SEC. 834. REQUIREMENTS REGARDING INSENSITIVE MUNITIONS.

    (a) Requirement To Ensure Safety.--(1) Chapter 141 of title 
10, United States Code, is amended by inserting after section 
2388 the following new section:

``Sec. 2389. Ensuring safety regarding insensitive munitions

    ``The Secretary of Defense shall ensure, to the extent 
practicable, that insensitive munitions under development or 
procurement are safe throughout development and fielding when 
subject to unplanned stimuli.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2388 
the following new item:

``2389. Ensuring safety regarding insensitive munitions.''.

    (b) Report Requirement.--At the same time that the budgets 
for fiscal years 2003 through 2005 are submitted to Congress 
under section 1105(a) of title 31, United States Code, the 
Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report on insensitive munitions. The reports shall include the 
following:
            (1) The number of waivers granted pursuant to 
        Department of Defense Regulation 5000.2-R (June 2001) 
        during the preceding fiscal year, together with a 
        discussion of the justifications for the waivers.
            (2) Identification of the funding proposed for 
        insensitive munitions in the budget with which the 
        report is submitted, together with an explanation of 
        the proposed funding.

SEC. 835. INAPPLICABILITY OF LIMITATION TO SMALL PURCHASES OF MINIATURE 
                    OR INSTRUMENT BALL OR ROLLER BEARINGS UNDER CERTAIN 
                    CIRCUMSTANCES.

    (a) In General.--Section 2534 of title 10, United States 
Code, is amended by adding at the end the following new 
subsection:
    ``(j) Inapplicability to Certain Contracts To Purchase Ball 
Bearings or Roller Bearings.--(1) This section does not apply 
with respect to a contract or subcontract to purchase items 
described in subsection (a)(5) (relating to ball bearings and 
roller bearings) for which--
            ``(A) the amount of the purchase does not exceed 
        $2,500;
            ``(B) the precision level of the ball or roller 
        bearings to be procured under the contract or 
        subcontract is rated lower than the rating known as 
        Annual Bearing Engineering Committee (ABEC) 5 or Roller 
        Bearing Engineering Committee (RBEC) 5, or an 
        equivalent of such rating;
            ``(C) at least two manufacturers in the national 
        technology and industrial base that are capable of 
        producing the ball or roller bearings have not 
        responded to a request for quotation issued by the 
        contracting activity for that contract or subcontract; 
        and
            ``(D) no bearing to be procured under the contract 
        or subcontract has a basic outside diameter (exclusive 
        of flange diameters) in excess of 30 millimeters.
    ``(2) Paragraph (1) does not apply to a purchase if such 
purchase would result in the total amount of purchases of ball 
bearings and roller bearings to satisfy requirements under 
Department of Defense contracts, using the authority provided 
in such paragraph, to exceed $200,000 during the fiscal year of 
such purchase.''.
    (b) Applicability.--Subsection (j) of such section 2534 (as 
added by subsection (a)) shall apply with respect to a contract 
or subcontract to purchase ball bearings or roller bearings 
entered into after the date of the enactment of this Act.

SEC. 836. TEMPORARY EMERGENCY PROCUREMENT AUTHORITY TO FACILITATE THE 
                    DEFENSE AGAINST TERRORISM OR BIOLOGICAL OR CHEMICAL 
                    ATTACK.

    (a) Increased Flexibility for Use of Streamlined 
Procedures.--The following special authorities apply to 
procurements of property and services by or for the Department 
of Defense for which funds are obligated during fiscal year 
2002 and 2003:
            (1) Micropurchase and simplified acquisition 
        thresholds.--For any procurement of property or 
        services for use (as determined by the Secretary of 
        Defense) to facilitate the defense against terrorism or 
        biological or chemical attack against the United 
        States--
                    (A) the amount specified in subsections 
                (c), (d), and (f) of section 32 of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 
                428) shall be deemed to be $15,000 in the 
                administration of that section with respect to 
                such procurement; and
                    (B) the term ``simplified acquisition 
                threshold'' means, in the case of any contract 
                to be awarded and performed, or purchase to be 
                made--
                            (i) inside the United States in 
                        support of a contingency operation, 
                        $250,000; or
                            (ii) outside the United States in 
                        support of a contingency operation, 
                        $500,000.
            (2) Commercial item treatment for procurements of 
        biotechnology.--For any procurement of biotechnology 
        property or biotechnology services for use (as 
        determined by the Secretary of Defense) to facilitate 
        the defense against terrorism or biological attack 
        against the United States, the procurement shall be 
        treated as being a procurement of commercial items.
    (b) Recommendations for Additional Emergency Procurement 
Authority To Support Anti-Terrorism Operations.--Not later than 
March 1, 2002, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report containing the Secretary's 
recommendations for additional emergency procurement authority 
that the Secretary (subject to the direction of the President) 
determines necessary to support operations carried out to 
combat terrorism.
    (c) Termination of Authority.--No contract may be entered 
into pursuant to the authority provided in subsection (a) after 
September 30, 2003.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

                      Subtitle B--Space Activities

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

                           Subtitle C--Reports

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

                        Subtitle D--Other Matters

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

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

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

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

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

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

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

    (b) Executive Level IV.--Section 5315 of title 5, United 
States Code, is amended by inserting after ``Deputy Under 
Secretary of Defense for Policy.'' the following:
            ``Deputy Under Secretary of Defense for Personnel 
        and Readiness.''.
    (c) Reduction in Number of Assistant Secretaries of 
Defense.--(1) Section 138(a) of title 10, United States Code, 
is amended by striking ``nine'' and inserting ``eight''.
    (2) Section 5315 of title 5, United States Code, is amended 
by striking ``(9)'' after ``Assistant Secretaries of Defense'' 
and inserting ``(8)''.
    (d) Effective Date.--The amendments made by subsection (c) 
shall take effect on the date on which a person is first 
appointed as Deputy Under Secretary of Defense for Personnel 
and Readiness.

SEC. 902. SENSE OF CONGRESS ON FUNCTIONS OF NEW OFFICE OF FORCE 
                    TRANSFORMATION IN THE OFFICE OF THE SECRETARY OF 
                    DEFENSE.

    (a) Findings.--Congress finds the following:
            (1) The Armed Forces should give careful 
        consideration to implementing transformation to meet 
        operational challenges and exploit opportunities 
        resulting from changes in the threat environment and 
        the emergence of new technologies.
            (2) The Department of Defense 2001 Quadrennial 
        Defense Review Report, issued by the Secretary of 
        Defense on September 30, 2001, states that `The purpose 
        of transformation is to maintain or improve U.S. 
        military preeminence in the face of potential 
        disproportionate discontinuous changes in the strategic 
        environment. Transformation must therefore be focused 
        on emerging strategic and operational challenges and 
        the opportunities created by these challenges.''.
            (3) That report further states that ``To support 
        the transformation effort, and to foster innovation and 
        experimentation, the Department will establish a new 
        office reporting directly to the Secretary and Deputy 
        Secretary of Defense.''.
    (b) Sense of Congress on Functions of Office of Force 
Transformation.--It is the sense of Congress that the Director 
of the Office of Force Transformation within the Office of the 
Secretary of Defense should advise the Secretary on--
            (1) development of force transformation strategies 
        to ensure that the military of the future is prepared 
        to dissuade potential military competitors and, if that 
        fails, to fight and win decisively across the spectrum 
        of future conflict;
            (2) ensuring a continuous and broadly focused 
        transformation process;
            (3) service and joint acquisition and 
        experimentation efforts, funding for experimentation 
        efforts, promising operational concepts and 
        technologies, and other transformation activities, as 
        appropriate; and
            (4) development of service and joint operational 
        concepts, transformation implementation strategies, and 
        risk management strategies.
    (c) Sense of Congress on Funding.--It is the sense of 
Congress that the Secretary of Defense should consider 
providing funding adequate for sponsoring selective prototyping 
efforts, war games, and studies and analyses and for 
appropriate staffing, as recommended by the Director of the 
Office of Force Transformation referred to in subsection (b).

SEC. 903. SUSPENSION OF REORGANIZATION OF ENGINEERING AND TECHNICAL 
                    AUTHORITY POLICY WITHIN THE NAVAL SEA SYSTEMS 
                    COMMAND PENDING REPORT TO CONGRESSIONAL COMMITTEES.

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

                      Subtitle B--Space Activities

SEC. 911. JOINT MANAGEMENT OF SPACE PROGRAMS.

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

                     ``CHAPTER 135--SPACE PROGRAMS

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

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

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

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

SEC. 912. REQUIREMENT TO ESTABLISH IN THE AIR FORCE AN OFFICER CAREER 
                    FIELD FOR SPACE.

    (a) In General.--Chapter 807 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 8084. Officer career field for space

    ``The Secretary of the Air Force shall establish and 
implement policies and procedures to develop a career field for 
officers in the Air Force with technical competence in space-
related matters to have the capabilty to--
            ``(1) develop space doctrine and concepts of space 
        operations;
            ``(2) develop space systems; and
            ``(3) operate space systems.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``8084. Officer career field for space.''.

SEC. 913. SECRETARY OF DEFENSE REPORT ON SPACE ACTIVITIES.

    (a) Report.--(1) Not later than March 15, 2002, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives a report on problems in the 
management and organization of the Department of Defense for 
space activities that were identified in the report of the 
Space Commission, including a description of the actions taken 
by the Secretary to address those problems.
    (2) For purposes of paragraph (1), the term ``report of the 
Space Commission'' means the report of the Commission To Assess 
United States National Security Space Management and 
Organization, dated January 11, 2001, and submitted to Congress 
under section 1623 of the National Defense Authorization Act 
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 815).
    (b) Matters To Be Included.--The report of the Secretary of 
Defense under subsection (a) shall include a description of, 
and rationale for, each of the following:
            (1) Actions taken by the Secretary of Defense to 
        realign management authorities and responsibilities for 
        space programs of the Department of Defense.
            (2) Steps taken to--
                    (A) establish a career field for officers 
                in the Air Force with technical competence in 
                space-related matters, in accordance with 
                section 8084 of title 10, United States Code, 
                as added by section 912;
                    (B) ensure that officers in that career 
                field are treated fairly and objectively within 
                the overall Air Force officer personnel system; 
                and
                    (C) ensure that the primary responsibility 
                for management of that career field is assigned 
                appropriately.
            (3) Other steps taken within the Air Force to 
        ensure proper priority for development of space 
        systems.
            (4) Steps taken to ensure that the interests of the 
        Army, the Navy, and the Marine Corps in development and 
        acquisition of space systems, and in the operations of 
        space systems, are protected.
            (5) Steps taken by the Office of the Secretary of 
        Defense and the military departments to ensure that the 
        Army, Navy, and Marine Corps continue to develop 
        military and civilian personnel with the required 
        expertise in space system development, acquisition, 
        management, and operation.
            (6) Steps taken to ensure adequate oversight by the 
        Office of the Secretary of Defense of the actions of 
        the Under Secretary of the Air Force as the acquisition 
        executive for Department of Defense space programs.
            (7) Steps taken to improve oversight of the level 
        of funding provided for space programs and the level of 
        personnel resources provided for space programs.

SEC. 914. COMPTROLLER GENERAL ASSESSMENT OF IMPLEMENTATION OF 
                    RECOMMENDATIONS OF SPACE COMMISSION.

    (a) Assessment.--(1) The Comptroller General shall carry 
out an assessment through February 15, 2003, of the actions 
taken by the Secretary of Defense in implementing the 
recommendations in the report of the Space Commission that are 
applicable to the Department of Defense.
    (2) For purposes of paragraph (1), the term ``report of the 
Space Commission'' means the report of the Commission To Assess 
United States National Security Space Management and 
Organization, dated January 11, 2001, and submitted to Congress 
under section 1623 of the National Defense Authorization Act 
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 815).
    (b) Reports.--Not later than February 15 of each of 2002 
and 2003, the Comptroller General shall submit to the Committee 
on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the 
assessment carried out under subsection (a). Each report shall 
set forth the results of the assessment as of the date of such 
report.

SEC. 915. SENSE OF CONGRESS REGARDING OFFICERS RECOMMENDED TO BE 
                    APPOINTED TO SERVE AS COMMANDER OF UNITED STATES 
                    SPACE COMMAND.

    It is the sense of Congress that the position of commander 
of the United States Space Command, a position of importance 
and responsibility designated by the President under section 
601 of title 10, United States Code, to carry the grade of 
general or admiral and covered by section 604 of that title, 
relating to recommendations by the Secretary of Defense for 
appointment of officers to certain four-star joint officer 
positions, should by filled by the best qualified officer of 
the Army, Navy, Air Force, or Marine Corps, rather than by 
officers from the same armed force that has traditionally 
provided officers for that position.

                          Subtitle C--Reports

SEC. 921. REVISED REQUIREMENT FOR CHAIRMAN OF THE JOINT CHIEFS OF STAFF 
                    TO ADVISE SECRETARY OF DEFENSE ON THE ASSIGNMENT OF 
                    ROLES AND MISSIONS TO THE ARMED FORCES.

    (a) Assessment During Quadrennial Defense Review.--Section 
118(e) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(e) CJCS Review.--
        '';
            (2) by designating the second and third sentences 
        as paragraph (3); and
            (3) by inserting after paragraph (1), as designated 
        by paragraph (1) of this subsection, the following new 
        paragraph:
    ``(2) The Chairman shall include as part of that assessment 
the Chairman's assessment of the assignment of functions (or 
roles and missions) to the armed forces, together with any 
recommendations for changes in assignment that the Chairman 
considers necessary to achieve maximum efficiency of the armed 
forces. In preparing the assessment under this paragraph, the 
Chairman shall consider (among other matters) the following:
            ``(A) Unnecessary duplication of effort among the 
        armed forces.
            ``(B) Changes in technology that can be applied 
        effectively to warfare.''.
    (b) Repeal of Requirement for Triennial Report on 
Assignment of Roles and Missions.--Section 153 of such title is 
amended--
            (1) by striking ``(a) Planning; Advice; Policy 
        Formulation.--''; and
            (2) by striking subsection (b).
    (c) Assessment With Respect to 2001 QDR.--With respect to 
the 2001 Quadrennial Defense Review, the Chairman of the Joint 
Chiefs of Staff shall submit to Congress a separate assessment 
of functions (or roles and missions) of the Armed Forces in 
accordance with paragraph (2) of section 118(e) of title 10, 
United States Code, as added by subsection (a)(3). Such 
assessment shall be based on the findings in the 2001 
Quadrennial Defense Review, issued by the Secretary of Defense 
on September 30, 2001, and shall be submitted to Congress not 
later than one year after the date of the enactment of this 
Act.

SEC. 922. REVISED REQUIREMENTS FOR CONTENT OF ANNUAL REPORT ON JOINT 
                    WARFIGHTING EXPERIMENTATION.

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

SEC. 923. REPEAL OF REQUIREMENT FOR ONE OF THREE REMAINING REQUIRED 
                    REPORTS ON ACTIVITIES OF JOINT REQUIREMENTS 
                    OVERSIGHT COUNCIL.

    Section 916 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-231) is amended--
            (1) in the section heading, by striking 
        ``Semiannual Report'' and inserting ``Reports'';
            (2) in subsection (a)--
                    (A) by striking ``Semiannual Report'' in 
                the subsection heading and inserting ``Reports 
                Required''; and
                    (B) by striking ``five semiannual''; and
            (3) in subsection (b)--
                    (A) by striking ``September 1, 2002,''; and
                    (B) by striking the period at the end of 
                the last sentence and inserting ``, except that 
                the last report shall cover all of the 
                preceding fiscal year.''.

SEC. 924. REVISED JOINT REPORT ON ESTABLISHMENT OF NATIONAL 
                    COLLABORATIVE INFORMATION ANALYSIS CAPABILITY.

    (a) Revised Report.--At the same time as the submission of 
the budget for fiscal year 2003 under section 1105 of title 31, 
United States Code, the Secretary of Defense and the Director 
of Central Intelligence shall submit to the congressional 
defense committees and the congressional intelligence 
committees a revised report assessing alternatives for the 
establishment of a national collaborative information analysis 
capability.
    (b) Matters Included.--The revised report shall cover the 
same matters required to be included in the DOD/CIA report, 
except that the alternative architectures assessed in the 
revised report shall be limited to architectures that include 
the participation of all Federal agencies involved in the 
collection of intelligence. The revised report shall also 
identify any issues that would require legislative or 
regulatory changes in order to implement the preferred 
architecture identified in the revised report.
    (c) Officials To Be Consulted.--The revised report shall be 
prepared after consultation with all appropriate Federal 
officials, including the following:
            (1) The Secretary of the Treasury.
            (2) The Secretary of Commerce.
            (3) The Secretary of State.
            (4) The Attorney General.
            (5) The Director of the Federal Bureau of 
        Investigation.
            (6) The Administrator of the Drug Enforcement 
        Administration.
    (d) Definitions.--In this section:
            (1) Dod/cia report.--The term ``DOD/CIA report'' 
        means the joint report required by section 933 of the 
        Floyd D. Spence National Defense Authorization Act for 
        Fiscal Year 2001 (as enacted into law by Public Law 
        106-398; 114 Stat. 1654A-237).
            (2) Congressional intelligence committees.--The 
        term ``congressional intelligence committees'' means 
        the Select Committee on Intelligence of the Senate and 
        the Permanent Select Committee on Intelligence of the 
        House of Representatives.

                       Subtitle D--Other Matters

SEC. 931. CONFORMING AMENDMENTS RELATING TO CHANGE OF NAME OF MILITARY 
                    AIRLIFT COMMAND TO AIR MOBILITY COMMAND.

    (a) Current References in Title 10, United States Code.--
Section 2554(d) of title 10, United States Code, and section 
2555(a) of such title (relating to transportation services for 
international Girl Scout events) are amended by striking 
``Military Airlift Command'' and inserting ``Air Mobility 
Command''.
    (b) Repeal of Obsolete Provision.--Section 8074 of such 
title is amended by striking subsection (c).
    (c) References in Title 37, United States Code.--Sections 
430(c) and 432(b) of title 37, United States Code, are amended 
by striking ``Military Airlift Command'' and inserting ``Air 
Mobility Command''.

SEC. 932. ORGANIZATIONAL REALIGNMENT FOR NAVY DIRECTOR FOR 
                    EXPEDITIONARY WARFARE.

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

                      TITLE X--GENERAL PROVISIONS

          Subtitle A--Department of Defense Civilian Personnel

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

                 Subtitle B--Naval Vessels and Shipyards

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

                   Subtitle C--Counter-Drug Activities

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

                      Subtitle D--Strategic Forces

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

           Subtitle E--Other Department of Defense Provisions

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

                        Subtitle F--Other Matters

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

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

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

SEC. 1002. [H1002]. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex 
prepared by the committee of conference to accompany the 
conference report on the bill S. 1438 of the One Hundred 
Seventh Congress and transmitted to the President is hereby 
incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to 
amounts authorized to be appropriated by other provisions of 
this Act.
    (c) Limitation on Use of Funds.--Funds appropriated 
pursuant to an authorization contained in this Act that are 
made available for a program, project, or activity referred to 
in the Classified Annex may only be expended for such program, 
project, or activity in accordance with such terms, conditions, 
limitations, restrictions, and requirements as are set out for 
that program, project, or activity in the Classified Annex.
    (d) Distribution of Classified Annex.--The President shall 
provide for appropriate distribution of the Classified Annex, 
or of appropriate portions of the annex, within the executive 
branch of the Government.

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

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

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

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

SEC. 1005. LIMITATION ON FUNDS FOR BOSNIA AND KOSOVO PEACEKEEPING 
                    OPERATIONS FOR FISCAL YEAR 2002.

    (a) Limitation.--Of the amounts authorized to be 
appropriated by section 301(a)(24) for the Overseas Contingency 
Operations Transfer Fund--
            (1) no more than $1,315,600,000 may be obligated 
        for incremental costs of the Armed Forces for Bosnia 
        peacekeeping operations; and
            (2) no more than $1,528,600,000 may be obligated 
        for incremental costs of the Armed Forces for Kosovo 
        peacekeeping operations.
    (b) Presidential Waiver.--The President may waive the 
limitation in subsection (a)(1), or the limitation in 
subsection (a)(2), after submitting to Congress the following:
            (1) The President's written certification that the 
        waiver is necessary in the national security interests 
        of the United States.
            (2) The President's written certification that 
        exercising the waiver will not adversely affect the 
        readiness of United States military forces.
            (3) A report setting forth the following:
                    (A) The reasons that the waiver is 
                necessary in the national security interests of 
                the United States.
                    (B) The specific reasons that additional 
                funding is required for the continued presence 
                of United States military forces participating 
                in, or supporting, Bosnia peacekeeping 
                operations, or Kosovo peacekeeping operations, 
                as the case may be, for fiscal year 2002.
                    (C) A discussion of the impact on the 
                military readiness of United States Armed 
                Forces of the continuing deployment of United 
                States military forces participating in, or 
                supporting, Bosnia peacekeeping operations, or 
                Kosovo peacekeeping operations, as the case may 
                be.
            (4) A supplemental appropriations request for the 
        Department of Defense for such amounts as are necessary 
        for the additional fiscal year 2002 costs associated 
        with United States military forces participating in, or 
        supporting, Bosnia or Kosovo peacekeeping operations.
    (c) Peacekeeping Operations Defined.--For the purposes of 
this section:
            (1) The term ``Bosnia peacekeeping operations'' has 
        the meaning given such term in section 1004(e) of the 
        Strom Thurmond National Defense Authorization Act for 
        Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2112).
            (2) The term ``Kosovo peacekeeping operations''--
                    (A) means the operation designated as 
                Operation Joint Guardian and any other 
                operation involving the participation of any of 
                the Armed Forces in peacekeeping or peace 
                enforcement activities in and around Kosovo; 
                and
                    (B) includes, with respect to Operation 
                Joint Guardian or any such other operation, 
                each activity that is directly related to the 
                support of the operation.

SEC. 1006. MAXIMUM AMOUNT FOR NATIONAL FOREIGN INTELLIGENCE PROGRAM.

    The total amount authorized to be appropriated for the 
National Foreign Intelligence Program for fiscal year 2002 is 
the sum of the following:
            (1) The total amount set forth for the National 
        Foreign Intelligence Program for fiscal year 2002 in 
        the message of the President to Congress transmitted by 
        the President on June 27, 2001, and printed as House 
        Document 107-92, captioned ``Communication of the 
        President of the United States Transmitting Requests 
        for Fiscal Year 2002 Budget Amendments for the 
        Department of Defense''.
            (2) The total amount, if any, appropriated for the 
        National Foreign Intelligence Program for fiscal year 
        2002 pursuant to the 2001 Emergency Supplemental 
        Appropriations Act for Recovery from and Response to 
        Terrorist Attacks on the United States (Public Law 107-
        38; 115 Stat. 220-221).
            (3) The total amount, if any, appropriated for the 
        National Foreign Intelligence Program for fiscal year 
        2002 in any law making supplemental appropriations for 
        fiscal year 2002 that is enacted during the second 
        session of the 107th Congress.

SEC. 1007. CLARIFICATION OF APPLICABILITY OF INTEREST PENALTIES FOR 
                    LATE PAYMENT OF INTERIM PAYMENTS DUE UNDER 
                    CONTRACTS FOR SERVICES.

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

SEC. 1008. RELIABILITY OF DEPARTMENT OF DEFENSE FINANCIAL STATEMENTS.

    (a) Annual Report on Reliability.--(1) Not later than 
September 30 of each year but subject to subsection (f), the 
Secretary of Defense shall submit to the recipients specified 
in paragraph (3) a report on the reliability of the Department 
of Defense financial statements, including the financial 
statements of each component of the Department that is required 
to prepare a financial statement under section 3515(c) of title 
31, United States Code.
    (2) The annual report shall contain the following:
            (A) A conclusion regarding whether the policies and 
        procedures of the Department of Defense, and the 
        systems used within the Department of Defense, for the 
        preparation of financial statements allow the 
        achievement of reliability in those financial 
        statements.
            (B) For each of the financial statements prepared 
        for the Department of Defense for the fiscal year in 
        which the report is submitted, a conclusion regarding 
        the expected reliability of the financial statement 
        (evaluated on the basis of Office of Management and 
        Budget guidance on financial statements), together with 
        a discussion of the major deficiencies to be expected 
        in the statement.
            (C) A summary of the specific sections of the 
        annual Financial Management Improvement Plan of the 
        Department of Defense, current as of the date of the 
        report, that--
                    (i) detail the priorities, milestones, and 
                measures of success that apply to the 
                preparation of the financial statements;
                    (ii) detail the planned improvements in the 
                process for the preparation of financial 
                statements that are to be implemented within 12 
                months after the date on which the plan is 
                issued; and
                    (iii) provide an estimate of when each 
                financial statement will convey reliable 
                information.
    (3) The annual report shall be submitted to the following:
            (A) The Committee on Armed Services and the 
        Committee on Governmental Affairs of the Senate.
            (B) The Committee on Armed Services and the 
        Committee on Government Reform of the House of 
        Representatives.
            (C) The Director of the Office of Management and 
        Budget.
            (D) The Secretary of the Treasury.
            (E) The Comptroller General of the United States.
    (4) The Secretary of Defense shall make a copy of the 
annual report available to the Inspector General of the 
Department of Defense.
    (b) Minimization of Use of Resources for Unreliable 
Financial Statements.--(1) With respect to each financial 
statement for a fiscal year that the Secretary of Defense 
assesses as being expected to be unreliable in the annual 
report under subsection (a), the Under Secretary of Defense 
(Comptroller) shall take appropriate actions to minimize, 
consistent with the benefits to be derived, the resources 
(including contractor support) that are used to develop, 
compile, and report the financial statement.
    (2) With the annual budget justifications for the 
Department of Defense submitted to Congress each year, the 
Under Secretary of Defense (Comptroller) shall submit, with 
respect to the fiscal year in which submitted, the preceding 
fiscal year, and the following fiscal year, the following 
information:
            (A) An estimate of the resources that the 
        Department of Defense is saving or expects to save as a 
        result of actions taken and to be taken under paragraph 
        (1) with respect to the preparation of financial 
        statements.
            (B) A discussion of how the resources saved as 
        estimated under subparagraph (A) have been redirected 
        or are to be redirected from the preparation of 
        financial statements to the improvement of systems 
        underlying financial management within the Department 
        of Defense and to the improvement of financial 
        management policies, procedures, and internal controls 
        within the Department of Defense.
    (c) Information to Auditors.--Not later than October 31 of 
each year, the Under Secretary of Defense (Comptroller) and the 
Assistant Secretary of each military department with 
responsibility for financial management and comptroller 
functions shall each provide to the auditors of the financial 
statement of that official's department for the fiscal year 
ending during the preceding month that official's preliminary 
management representation, in writing, regarding the expected 
reliability of the financial statement. The representation 
shall be consistent with guidance issued by the Director of the 
Office of Management and Budget and shall include the basis for 
the reliability assessment stated in the representation.
    (d) Limitation on Inspector General Audits.--(1) On each 
financial statement that an official asserts is unreliable 
under subsection (b) or (c), the Inspector General of the 
Department of Defense shall only perform the audit procedures 
required by generally accepted government auditing standards 
consistent with any representation made by management.
    (2) With the annual budget justifications for the 
Department of Defense submitted to Congress each year, the 
Under Secretary of Defense (Comptroller) shall submit, with 
respect to the fiscal year in which submitted, the preceding 
fiscal year, and the following fiscal year, information which 
the Inspector General shall report to the Under Secretary, as 
follows:
            (A) An estimate of the resources that the Inspector 
        General is saving or expects to save as a result of 
        actions taken and to be taken under paragraph (1) with 
        respect to the auditing of financial statements.
            (B) A discussion of how the resources saved as 
        estimated under subparagraph (A) have been redirected 
        or are to be redirected from the auditing of financial 
        statements to the oversight and improvement of systems 
        underlying financial management within the Department 
        of Defense and to the oversight and improvement of 
        financial management policies, procedures, and internal 
        controls within the Department of Defense.
    (e) Effective Date.--The requirements of this section shall 
apply with respect to financial statements for fiscal years 
after fiscal year 2001 and to the auditing of those financial 
statements.
    (f) Termination of Applicability.--If the Secretary of 
Defense certifies to the Inspector General of the Department of 
Defense that the financial statement for the Department of 
Defense, or a financial statement for a component of the 
Department of Defense, for a fiscal year is reliable, this 
section shall not apply with respect to that financial 
statement or to any successive financial statement for the 
Department of Defense, or for that component, as the case may 
be, for any later fiscal year.

SEC. 1009. FINANCIAL MANAGEMENT MODERNIZATION EXECUTIVE COMMITTEE AND 
                    FINANCIAL FEEDER SYSTEMS COMPLIANCE PROCESS.

    (a) Executive Committee.--(1) Chapter 7 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 185. Financial Management Modernization Executive Committee

    ``(a) Establishment of Financial Management Modernization 
Executive Committee.--(1) The Secretary of Defense shall 
establish a Financial Management Modernization Executive 
Committee.
    ``(2) The Committee shall be composed of the following:
            ``(A) The Under Secretary of Defense (Comptroller), 
        who shall be the chairman of the committee.
            ``(B) The Under Secretary of Defense for 
        Acquisition, Technology, and Logistics.
            ``(C) The Under Secretary of Defense for Personnel 
        and Readiness.
            ``(D) The Chief Information Officer of the 
        Department of Defense.
            ``(E) Such additional personnel of the Department 
        of Defense (including appropriate personnel of the 
        military departments and Defense Agencies) as are 
        designated by the Secretary.
    ``(3) The Committee shall be accountable to the Senior 
Executive Council (composed of the Secretary of Defense, the 
Deputy Secretary of Defense, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, the Secretary of the 
Army, the Secretary of the Navy, and the Secretary of the Air 
Force).
    ``(b) Duties.--In addition to other matters assigned to it 
by the Secretary of Defense, the Committee shall have the 
following duties:
            ``(1) To establish a process that ensures that each 
        critical accounting system, financial management 
        system, and data feeder system of the Department of 
        Defense is compliant with applicable Federal financial 
        management and reporting requirements.
            ``(2) To develop a management plan for the 
        implementation of the financial and data feeder systems 
        compliance process established pursuant to paragraph 
        (1).
            ``(3) To supervise and monitor the actions that are 
        necessary to implement the management plan developed 
        pursuant to paragraph (2), as approved by the Secretary 
        of Defense.
            ``(4) To ensure that a Department of Defense 
        financial management enterprise architecture is 
        developed and maintained in accordance with--
                    ``(A) the overall business process 
                transformation strategy of the Department; and
                    ``(B) the architecture framework of the 
                Department for command, control, 
                communications, computers, intelligence, 
                surveillance, and reconnaissance functions.
            ``(5) To ensure that investments in existing or 
        proposed financial management systems for the 
        Department comply with the overall business practice 
        transformation strategy of the Department and the 
        financial management enterprise architecture developed 
        under paragraph (4).
            ``(6) To provide an annual accounting of each 
        financial and data feeder system investment technology 
        project to ensure that each such project is being 
        implemented at acceptable cost and within a reasonable 
        schedule and is contributing to tangible, observable 
        improvements in mission performance.
    ``(c) Management Plan for Implementation of Financial Data 
Feeder Systems Compliance Process.--The management plan 
developed under subsection (b)(2) shall include among its 
principal elements at least the following elements:
            ``(1) A requirement for the establishment and 
        maintenance of a complete inventory of all budgetary, 
        accounting, finance, and data feeder systems that 
        support the transformed business processes of the 
        Department and produce financial statements.
            ``(2) A phased process (consisting of the 
        successive phases of Awareness, Evaluation, Renovation, 
        Validation, and Compliance) for improving systems 
        referred to in paragraph (1) that provides for mapping 
        financial data flow from the cognizant Department 
        business function source (as part of the overall 
        business process transformation strategy of the 
        Department) to Department financial statements.
            ``(3) Periodic submittal to the Secretary of 
        Defense, the Deputy Secretary of Defense, and the 
        Senior Executive Council (or any combination thereof) 
        of reports on the progress being made in achieving 
        financial management transformation goals and 
        milestones included in the annual financial management 
        improvement plan in 2002.
            ``(4) Documentation of the completion of each phase 
        specified in paragraph (2) of improvements made to each 
        accounting, finance, and data feeder system of the 
        Department.
            ``(5) Independent audit by the Inspector General of 
        the Department, the audit agencies of the military 
        departments, and private sector firms contracted to 
        conduct validation audits (or any combination thereof) 
        at the validation phase for each accounting, finance, 
        and data feeder system.
    ``(d) Data Feeder Systems.--In this section, the term `data 
feeder system' has the meaning given that term in section 
2222(c)(2) of this title.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

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

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

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

    (B) The item relating to section 2222 in the table of 
sections at the beginning of chapter 131 of such title is 
amended to read as follows:

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

    (c) Additional Elements for Financial Management 
Improvement Plan in 2002.--In the annual financial management 
improvement plan submitted under section 2222 of title 10, 
United States Code, in 2002, the Secretary of Defense shall 
include the following:
            (1) Measurable annual performance goals for 
        improvement of the financial management of the 
        Department of Defense.
            (2) Performance milestones for initiatives under 
        that plan for transforming the financial management 
        operations of the Department of Defense and for 
        implementing a financial management architecture for 
        the Department.
            (3) An assessment of the anticipated annual cost of 
        any plans for transforming the financial management 
        operations of the Department of Defense and for 
        implementing a financial management architecture for 
        the Department.
            (4) A discussion of the following:
                    (A) The roles and responsibilities of 
                appropriate Department officials to ensure the 
                supervision and monitoring of the compliance of 
                each accounting, finance, and data feeder 
                system of the Department with--
                            (i) the business practice 
                        transformation strategy of the 
                        Department;
                            (ii) the financial management 
                        architecture of the Department; and
                            (iii) applicable Federal financial 
                        management systems and reporting 
                        requirements.
                    (B) A summary of the actions taken by the 
                Financial Management Modernization Executive 
                Committee to ensure that such systems comply 
                with--
                            (i) the business practice 
                        transformation strategy of the 
                        Department;
                            (ii) the financial management 
                        architecture of the Department; and
                            (iii) applicable Federal financial 
                        management systems and reporting 
                        requirements.
    (d) Effective Date.--Paragraph (2) of section 2222(c) of 
title 10, United States Code, as added by subsection (b)(2), 
shall not apply with respect to the annual financial management 
improvement plan submitted under section 2222 of title 10, 
United States Code, in 2002.

SEC. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE DEFENSE 
                    PROGRAMS OR COMBATING TERRORISM PROGRAMS OF THE 
                    DEPARTMENT OF DEFENSE.

    (a) Authorization.--There is hereby authorized to be 
appropriated for fiscal year 2002 for the military functions of 
the Department of Defense, in addition to amounts authorized to 
be appropriated in titles I, II, and III, the amount of 
$1,300,000,000, to be available, in accordance with subsection 
(b), for the following purposes:
            (1) Research, development, test, and evaluation for 
        ballistic missile defense programs of the Ballistic 
        Missile Defense Organization.
            (2) Activities of the Department of Defense for 
        combating terrorism.
    (b) Allocation by President.--(1) The amount authorized to 
be appropriated by subsection (a) shall be allocated between 
the purposes stated in paragraphs (1) and (2) of that 
subsection in such manner as may be determined by the President 
based upon the national security interests of the United 
States. The amount authorized in subsection (a) shall not be 
available for any other purpose.
    (2) Upon an allocation of such amount by the President, the 
amount so allocated shall be transferred to the appropriate 
regular authorization account under this division in the same 
manner as provided in section 1001. Transfers under this 
paragraph shall not be counted for the purposes of section 
1001(a)(2).
    (3) Not later than 15 days after an allocation is made 
under this subsection, the Secretary of Defense shall submit to 
the congressional defense committees a report describing the 
allocation and the Secretary's plan for the use by the 
Department of Defense of the funds made available pursuant to 
such allocation.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN 
                    COUNTRIES.

    (a) Transfers by Grant.--The President is authorized to 
transfer vessels to foreign countries on a grant basis under 
section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j) as follows:
            (1) Poland.--To the Government of Poland, the 
        OLIVER HAZARD PERRY class guided missile frigate 
        WADSWORTH (FFG 9).
            (2) Turkey.--To the Government of Turkey, the KNOX 
        class frigates CAPODANNO (FF 1093), THOMAS C. HART (FF 
        1092), DONALD B. BEARY (FF 1085), McCANDLESS (FF 1084), 
        REASONER (FF 1063), and BOWEN (FF 1079).
    (b) Transfers by Sale.--The President is authorized to 
transfer vessels to foreign governments and foreign 
governmental entities on a sale basis under section 21 of the 
Arms Export Control Act (22 U.S.C. 2761) as follows:
            (1) Taiwan.--To the Taipei Economic and Cultural 
        Representative Office in the United States (which is 
        the Taiwan instrumentality designated pursuant to 
        section 10(a) of the Taiwan Relations Act), the KIDD 
        class guided missile destroyers KIDD (DDG 993), 
        CALLAGHAN (DDG 994), SCOTT (DDG 995), and CHANDLER (DDG 
        996).
            (2) Turkey.--To the Government of Turkey, the 
        OLIVER HAZARD PERRY class guided missile frigates 
        ESTOCIN (FFG 15) and SAMUEL ELIOT MORISON (FFG 13).
    (c) Grants Not Counted in Annual Total of Transferred 
Excess Defense Articles.--The value of a vessel transferred to 
another country on a grant basis under section 516 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to 
authority provided by subsection (a) shall not be counted for 
the purposes of subsection (g) of that section in the aggregate 
value of excess defense articles transferred to countries under 
that section in any fiscal year.
    (d) Costs of Transfers on Grant Basis.--Any expense 
incurred by the United States in connection with a transfer 
authorized by this section shall be charged to the recipient 
(notwithstanding section 516(e)(1) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2321j(e)(1))) in the case of a transfer 
authorized to be made on a grant basis under subsection (a).
    (e) Waiver Authority.--For a vessel transferred on a grant 
basis pursuant to authority provided by subsection (a)(2), the 
President may waive reimbursement of charges for the lease of 
that vessel under section 61(a) of the Arms Export Control Act 
(22 U.S.C. 2796(a)) for a period of one year before the date of 
the transfer of that vessel.
    (f) Repair and Refurbishment in United States Shipyards.--
To the maximum extent practicable, the President shall require, 
as a condition of the transfer of a vessel under this section, 
that the country to which the vessel is transferred have such 
repair or refurbishment of the vessel as is needed, before the 
vessel joins the naval forces of that country, performed at a 
shipyard located in the United States, including a United 
States Navy shipyard.
    (g) Expiration of Authority.--The authority to transfer a 
vessel under this section shall expire at the end of the two-
year period beginning on the date of the enactment of this Act.

SEC. 1012. SALE OF GLOMAR EXPLORER TO THE LESSEE.

    (a) Authority.--The Secretary of the Navy may convey by 
sale all right, title, and interest of the United States in and 
to the vessel GLOMAR EXPLORER (AG 193) to the person who, on 
the date of the enactment of this Act, is the lessee of the 
vessel.
    (b) Consideration.--The price for which the vessel is sold 
under subsection (a) shall be a fair and reasonable amount 
determined by the Secretary of the Navy.
    (c) Additional Terms.--The Secretary may require such 
additional terms in connection with the conveyance authorized 
by this section as the Secretary considers appropriate.
    (d) Proceeds of Sale.--Amounts received by the Secretary 
from the sale under this section may, to the extent provided in 
an appropriations Act, be credited to the appropriation 
available for providing salvage facilities under section 7361 
of title 10, United States Code, and are authorized to remain 
available until expended for that purpose.

SEC. 1013. LEASING OF NAVY SHIPS FOR UNIVERSITY NATIONAL OCEANOGRAPHIC 
                    LABORATORY SYSTEM.

    Subsection (g) of section 2667 of title 10, United States 
Code, is amended by adding at the end the following new 
paragraph:
    ``(3) Paragraph (1) does not apply to a renewal or 
extension of a lease by the Secretary of the Navy with a 
selected institution for operation of a ship within the 
University National Oceanographic Laboratory System if, under 
the lease, each of the following applies:
            ``(A) Use of the ship is restricted to federally 
        supported research programs and to non-Federal uses 
        under specific conditions with approval by the 
        Secretary of the Navy.
            ``(B) Because of the anticipated value to the Navy 
        of the oceanographic research and training that will 
        result from the ship's operation, no monetary lease 
        payments are required from the lessee under the initial 
        lease or under any renewal or extension.
            ``(C) The lessee is required to maintain the ship 
        in a good state of repair, readiness, and efficient 
        operating condition, conform to all applicable 
        regulatory requirements, and assume full responsibility 
        for the safety of the ship, its crew, and scientific 
        personnel aboard.''.

SEC. 1014. INCREASE IN LIMITATIONS ON ADMINISTRATIVE AUTHORITY OF THE 
                    NAVY TO SETTLE ADMIRALTY CLAIMS.

    (a) Admiralty Claims Against the United States.--Section 
7622 of title 10, United States Code, is amended--
            (1) in subsections (a) and (b), by striking 
        ``$1,000,000'' and inserting ``$15,000,000''; and
            (2) in subsection (c), by striking ``$100,000'' and 
        inserting ``$1,000,000''.
    (b) Admiralty Claims by the United States.--Section 7623 of 
such title is amended--
            (1) in subsection (a)(2), by striking 
        ``$1,000,000'' and inserting ``$15,000,000''; and
            (2) in subsection (c), by striking ``$100,000'' and 
        inserting ``$1,000,000''.
    (c) Effective Date.--The amendments made by this section 
shall apply with respect to any claim accruing on or after 
February 1, 2001.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. EXTENSION AND RESTATEMENT OF AUTHORITY TO PROVIDE DEPARTMENT 
                    OF DEFENSE SUPPORT FOR COUNTER-DRUG ACTIVITIES OF 
                    OTHER GOVERNMENTAL AGENCIES.

    Section 1004 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 374 note) is 
amended to read as follows:

``SEC. 1004. ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES

    ``(a) Support to Other Agencies.--During fiscal years 2002 
through 2006, the Secretary of Defense may provide support for 
the counter-drug activities of any other department or agency 
of the Federal Government or of any State, local, or foreign 
law enforcement agency for any of the purposes set forth in 
subsection (b) if such support is requested--
            ``(1) by the official who has responsibility for 
        the counter-drug activities of the department or agency 
        of the Federal Government, in the case of support for 
        other departments or agencies of the Federal 
        Government;
            ``(2) by the appropriate official of a State or 
        local government, in the case of support for State or 
        local law enforcement agencies; or
            ``(3) by an appropriate official of a department or 
        agency of the Federal Government that has counter-drug 
        responsibilities, in the case of support for foreign 
        law enforcement agencies.
    ``(b) Types of Support.--The purposes for which the 
Secretary of Defense may provide support under subsection (a) 
are the following:
            ``(1) The maintenance and repair of equipment that 
        has been made available to any department or agency of 
        the Federal Government or to any State or local 
        government by the Department of Defense for the 
        purposes of--
                    ``(A) preserving the potential future 
                utility of such equipment for the Department of 
                Defense; and
                    ``(B) upgrading such equipment to ensure 
                compatibility of that equipment with other 
                equipment used by the Department of Defense.
            ``(2) The maintenance, repair, or upgrading of 
        equipment (including computer software), other than 
        equipment referred to in paragraph (1) for the purpose 
        of--
                    ``(A) ensuring that the equipment being 
                maintained or repaired is compatible with 
                equipment used by the Department of Defense; 
                and
                    ``(B) upgrading such equipment to ensure 
                the compatibility of that equipment with 
                equipment used by the Department of Defense.
            ``(3) The transportation of personnel of the United 
        States and foreign countries (including per diem 
        expenses associated with such transportation), and the 
        transportation of supplies and equipment, for the 
        purpose of facilitating counter-drug activities within 
        or outside the United States.
            ``(4) The establishment (including an unspecified 
        minor military construction project) and operation of 
        bases of operations or training facilities for the 
        purpose of facilitating counter-drug activities of the 
        Department of Defense or any Federal, State, or local 
        law enforcement agency within or outside the United 
        States or counter-drug activities of a foreign law 
        enforcement agency outside the United States.
            ``(5) Counter-drug related training of law 
        enforcement personnel of the Federal Government, of 
        State and local governments, and of foreign countries, 
        including associated support expenses for trainees and 
        the provision of materials necessary to carry out such 
        training.
            ``(6) The detection, monitoring, and communication 
        of the movement of--
                    ``(A) air and sea traffic within 25 miles 
                of and outside the geographic boundaries of the 
                United States; and
                    ``(B) surface traffic outside the 
                geographic boundary of the United States and 
                within the United States not to exceed 25 miles 
                of the boundary if the initial detection 
                occurred outside of the boundary.
            ``(7) Construction of roads and fences and 
        installation of lighting to block drug smuggling 
        corridors across international boundaries of the United 
        States.
            ``(8) Establishment of command, control, 
        communications, and computer networks for improved 
        integration of law enforcement, active military, and 
        National Guard activities.
            ``(9) The provision of linguist and intelligence 
        analysis services.
            ``(10) Aerial and ground reconnaissance.
    ``(c) Limitation on Counter-Drug Requirements.--The 
Secretary of Defense may not limit the requirements for which 
support may be provided under subsection (a) only to critical, 
emergent, or unanticipated requirements.
    ``(d) Contract Authority.--In carrying out subsection (a), 
the Secretary of Defense may acquire services or equipment by 
contract for support provided under that subsection if the 
Department of Defense would normally acquire such services or 
equipment by contract for the purpose of conducting a similar 
activity for the Department of Defense.
    ``(e) Limited Waiver of Prohibition.--Notwithstanding 
section 376 of title 10, United States Code, the Secretary of 
Defense may provide support pursuant to subsection (a) in any 
case in which the Secretary determines that the provision of 
such support would adversely affect the military preparedness 
of the United States in the short term if the Secretary 
determines that the importance of providing such support 
outweighs such short-term adverse effect.
    ``(f) Conduct of Training or Operation To Aid Civilian 
Agencies.--In providing support pursuant to subsection (a), the 
Secretary of Defense may plan and execute otherwise valid 
military training or operations (including training exercises 
undertaken pursuant to section 1206(a) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 103 Stat. 1564)) for the purpose of aiding civilian 
law enforcement agencies.
    ``(g) Relationship to Other Laws.--(1) The authority 
provided in this section for the support of counter-drug 
activities by the Department of Defense is in addition to, and 
except as provided in paragraph (2), not subject to the 
requirements of chapter 18 of title 10, United States Code.
    ``(2) Support under this section shall be subject to the 
provisions of section 375 and, except as provided in subsection 
(e), section 376 of title 10, United States Code.
    ``(h) Congressional Notification of Facilities Projects.--
(1) When a decision is made to carry out a military 
construction project described in paragraph (2), the Secretary 
of Defense shall submit to the congressional defense committees 
written notice of the decision, including the justification for 
the project and the estimated cost of the project. The project 
may be commenced only after the end of the 21-day period 
beginning on the date on which the written notice is received 
by Congress.
    ``(2) Paragraph (1) applies to an unspecified minor 
military construction project that--
            ``(A) is intended for the modification or repair of 
        a Department of Defense facility for the purpose set 
        forth in subsection (b)(4); and
            ``(B) has an estimated cost of more than 
        $500,000.''.

SEC. 1022. EXTENSION OF REPORTING REQUIREMENT REGARDING DEPARTMENT OF 
                    DEFENSE EXPENDITURES TO SUPPORT FOREIGN COUNTER-
                    DRUG ACTIVITIES.

    Section 1022 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-255) is amended--
            (1) by inserting ``and April 15, 2002,'' after 
        ``January 1, 2001,''; and
            (2) by striking ``fiscal year 2000'' and inserting 
        ``the preceding fiscal year''.

SEC. 1023. AUTHORITY TO TRANSFER TRACKER AIRCRAFT CURRENTLY USED BY 
                    ARMED FORCES FOR COUNTER-DRUG PURPOSES.

    (a) Transfer Authority.--The Secretary of Defense may 
transfer to the administrative jurisdiction and operational 
control of another Federal agency all Tracker aircraft in the 
inventory of the Department of Defense.
    (b) Effect of Failure To Transfer.--If the transfer 
authority provided by subsection (a) is not exercised by the 
Secretary of Defense by September 30, 2002, any Tracker 
aircraft remaining in the inventory of the Department of 
Defense may not be used by the Armed Forces for counter-drug 
purposes after that date.

SEC. 1024. LIMITATION ON USE OF FUNDS FOR OPERATION OF TETHERED 
                    AEROSTAT RADAR SYSTEM PENDING SUBMISSION OF 
                    REQUIRED REPORT.

    Not more than 50 percent of the funds appropriated or 
otherwise made available for fiscal year 2002 for operation of 
the Tethered Aerostat Radar System, which is used by the Armed 
Forces in maritime, air, and land counter-drug detection and 
monitoring, may be obligated or expended until such time as the 
Secretary of Defense submits to Congress the report on the 
status of the Tethered Aerostat Radar System required by 
section 1025 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-256).

                      Subtitle D--Strategic Forces

SEC. 1031. REPEAL OF LIMITATION ON RETIREMENT OR DISMANTLEMENT OF 
                    STRATEGIC NUCLEAR DELIVERY SYSTEMS.

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

SEC. 1032. AIR FORCE BOMBER FORCE STRUCTURE.

    (a) Limitation.--None of the funds available to the 
Department of Defense for fiscal year 2002 may be obligated or 
expended for retiring or dismantling any of the 93 B-1B Lancer 
bombers in service as of June 1, 2001, or for transferring or 
reassigning any of those aircraft from the unit or facility to 
which assigned as of that date, until 15 days after the 
Secretary of the Air Force submits to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives a report on the Air Force bomber 
force structure.
    (b) Matters To Be Included.--The report under subsection 
(a) shall set forth the following:
            (1) The Air Force plan for the modernization of the 
        B1-B aircraft fleet, including a transition plan for 
        implementation of that modernization plan and a 
        description of the basing options for the aircraft in 
        that fleet.
            (2) The amount and type of bomber force structure 
        in the Air Force appropriate to meet the requirements 
        of the national security strategy of the United States.
            (3) Specifications of new missions to be assigned 
        to the National Guard units that currently fly B-1 
        aircraft and the transition of those units and their 
        facilities from the current B-1 mission to their future 
        missions.
            (4) A description of the potential effect of the 
        proposed consolidation and reduction of the B-1 fleet 
        on other National Guard units in the affected States.
            (5) A justification of the cost and projected 
        savings of consolidating and reducing the B-1 fleet.
    (c) Amount and Type of Bomber Force Structure Defined.--In 
this section, the term ``amount and type of bomber force 
structure'' means the number of B-2 aircraft, B-52 aircraft, 
and B-1 aircraft that are required to carry out the current 
national security strategy.

SEC. 1033. ADDITIONAL ELEMENT FOR REVISED NUCLEAR POSTURE REVIEW.

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

SEC. 1034. REPORT ON OPTIONS FOR MODERNIZATION AND ENHANCEMENT OF 
                    MISSILE WING HELICOPTER SUPPORT.

    (a) Report Required.--The Secretary of Defense shall 
prepare a report regarding the options for providing the 
helicopter support missions for the Air Force intercontinental 
ballistic missile wings at Minot Air Force Base, North Dakota, 
Malmstrom Air Force Base, Montana, and F.E. Warren Air Force 
Base, Wyoming, for as long as these missions are required. The 
report shall include the Secretary's recommendations on a 
preferred option.
    (b) Options.--Options to be reviewed under subsection (a) 
include the following:
            (1) The current plan of the Air Force for 
        replacement or modernization of UH-1N helicopters 
        currently flown by the Air Force at the missile wings.
            (2) Replacement of the UH-1N helicopters currently 
        flown by the Air Force with UH-60 Black Hawk 
        helicopters, the UH-1Y helicopter, or another platform.
            (3) Replacement of the UH-1N helicopters with UH-60 
        helicopters and transition of the mission to the Army 
        National Guard, as detailed in the Air Force Space 
        Command/Army National Guard plan entitled ``ARNG 
        Helicopter Support to Air Force Space Command'' and 
        dated November 2000.
            (4) Replacement of the UH-1N helicopters with UH-60 
        helicopters or another platform, and establishment of 
        composite units combining active duty Air Force and 
        Army National Guard personnel.
            (5) Such other options as the Secretary of Defense 
        considers appropriate.
    (c) Factors.--Factors to be considered in preparing the 
report under subsection (a) include the following:
            (1) Any implications of transferring the helicopter 
        support missions on the command and control of, and 
        responsibility for, missile field force protection.
            (2) Current and future operational requirements, 
        and the capabilities of the UH-1N or UH-60 helicopter 
        or other aircraft to meet such requirements.
            (3) Cost, with particular attention to 
        opportunities to realize efficiencies over the long 
        run.
            (4) Implications for personnel training and 
        retention.
            (5) Evaluation of the assumptions used in the plan 
        specified in subsection (b)(3).
    (d) Consideration.--In preparing the report under 
subsection (a), the Secretary of Defense shall consider 
carefully the views of the Secretary of the Army, the Secretary 
of the Air Force, the commander of the United States Strategic 
Command, and the Chief of the National Guard Bureau.
    (e) Submission of Report.--The report required by 
subsection (a) shall be submitted to the congressional defense 
committees not later than the date on which the President 
submits to Congress the budget under section 1105 of title 31, 
United States Code, for fiscal year 2003.

           Subtitle E--Other Department of Defense Provisions

SEC. 1041. SECRETARY OF DEFENSE RECOMMENDATION ON NEED FOR DEPARTMENT 
                    OF DEFENSE REVIEW OF PROPOSED FEDERAL AGENCY 
                    ACTIONS TO CONSIDER POSSIBLE IMPACT ON NATIONAL 
                    DEFENSE.

    (a) Recommendation on Need for Defense Impact Review 
Process.--The Secretary of Defense shall submit to the 
President the Secretary's recommendation as to whether there 
should be established within the executive branch a defense 
impact review process. The Secretary shall submit a copy of 
such recommendation to Congress.
    (b) Defense Impact Review Process.--(1) For purposes of 
this section, the term ``defense impact review process'' means 
a formal process within the executive branch--
            (A) to provide for review by the Department of 
        Defense of certain proposed actions of other Federal 
        departments and agencies to identify any reasonably 
        foreseeable significant adverse impact of such a 
        proposed action on national defense; and
            (B) when such a review indicates that a proposed 
        agency action may have such an adverse impact--
                    (i) to afford the Secretary of Defense a 
                timely opportunity to make recommendations for 
                means to eliminate or mitigate any such adverse 
                impact; and
                    (ii) to afford an opportunity for those 
                recommendations to be given reasonable and 
                timely consideration by the agency to which 
                provided.
    (2) For purposes of such a review process, the proposed 
agency actions subject to review would be those for which a 
significant adverse impact on national defense is reasonably 
foreseeable and that meet such additional criteria as may be 
specified by the Secretary of Defense.
    (c) Time for Submission of Recommendation.--The Secretary 
shall submit the Secretary's recommendation under subsection 
(a) not later than 180 days after the date of the enactment of 
this Act.

SEC. 1042. DEPARTMENT OF DEFENSE REPORTS TO CONGRESS TO BE ACCOMPANIED 
                    BY ELECTRONIC VERSION UPON REQUEST.

    (a) In General.--Chapter 23 of title 10, United States 
Code, is amended by inserting after the table of sections the 
following new section:

``Sec. 480. Reports to Congress: submission in electronic form

    ``(a) Requirement.--Whenever the Secretary of Defense or 
any other official of the Department of Defense submits to 
Congress (or any committee of either House of Congress) a 
report that the Secretary (or other official) is required by 
law to submit, the Secretary (or other official) shall, upon 
request by any committee of Congress to which the report is 
submitted or referred, provide to Congress (or each such 
committee) a copy of the report in an electronic medium.
    ``(b) Exception.--Subsection (a) does not apply to a report 
submitted in classified form.
    ``(c) Definition.--In this section, the term `report' 
includes any certification, notification, or other 
communication in writing.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting before the 
item relating to section 481 the following new item:

``480. Reports to Congress: submission in electronic form.''.

SEC. 1043. DEPARTMENT OF DEFENSE GIFT AUTHORITIES.

    (a) Authority To Make Loans and Gifts.--(1) Subsection (a) 
of section 7545 of title 10, United States Code, is amended by 
striking ``(a) Subject to'' and all that follows through ``to--
'' and inserting the following:
    ``(a) Authority To Make Loans and Gifts.--The Secretary of 
the Navy may lend or give, without expense to the United 
States, items described in subsection (b) that are not needed 
by the Department of the Navy to any of the following:''.
    (2) Such subsection is further amended--
            (A) by capitalizing the first letter after the 
        paragraph designation in each of paragraphs (1) through 
        (12);
            (B) by striking the semicolon at the end of 
        paragraphs (1) through (10) and inserting a period;
            (C) by striking ``; or'' at the end of paragraph 
        (11) and inserting a period;
            (D) in paragraph (5), by striking ``World War I or 
        World War II'' and inserting ``a foreign war'';
            (E) in paragraph (6), by striking ``soldiers' 
        monument'' and inserting ``servicemen's monument''; and
            (F) in paragraph (8), by inserting ``or memorial'' 
        after ``museum''.
    (b) Additional Items Authorized To Be Donated by Secretary 
of the Navy.--Such section is further amended--
            (1) by redesignating subsections (b) and (c) as 
        subsections (d) and (e), respectively;
            (2) by inserting after subsection (a) the following 
        new subsections:
    ``(b) Items Eligible for Disposal.--This section applies to 
the following types of property held by the Department of the 
Navy:
            ``(1) Captured, condemned, or obsolete ordnance 
        material.
            ``(2) Captured, condemned, or obsolete combat or 
        shipboard material.
    ``(c) Regulations.--A loan or gift made under this section 
shall be subject to regulations prescribed by the Secretary and 
to regulations under section 205 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 486).''; and
            (3) by adding at the end the following new 
        subsection:
    ``(f) Authority To Transfer a Portion of a Vessel.--The 
Secretary may lend, give, or otherwise transfer any portion of 
the hull or superstructure of a vessel stricken from the Naval 
Vessel Register and designated for scrapping to a qualified 
organization specified in subsection (a). The terms and 
conditions of an agreement for the transfer of a portion of a 
vessel under this section shall include a requirement that the 
transferee will maintain the material conveyed in a condition 
that will not diminish the historical value of the material or 
bring discredit upon the Navy.''.
    (c) Clerical Amendments.--Such section is further amended--
            (1) in subsection (d) (as redesignated by 
        subsection (b)(1)), by inserting ``Maintenance of the 
        Records of the Government.--'' after the subsection 
        designation; and
            (2) in subsection (e) (as redesignated by 
        subsection (b)(1)), by inserting ``Alternative 
        Authorities To Make Gifts or Loans.--'' after the 
        subsection designation.
    (d) Conforming Amendments.--Section 2572(a) of such title 
is amended--
            (1) in paragraph (1), by inserting ``, county, or 
        other political subdivision of a State'' before the 
        period at the end;
            (2) in paragraph (2), by striking ``soldiers' 
        monument'' and inserting ``servicemen's monument''; and
            (3) in paragraph (4), by inserting ``or memorial'' 
        after ``An incorporated museum''.

SEC. 1044. ACCELERATION OF RESEARCH, DEVELOPMENT, AND PRODUCTION OF 
                    MEDICAL COUNTERMEASURES FOR DEFENSE AGAINST 
                    BIOLOGICAL WARFARE AGENTS.

    (a) Aggressive Program Required.--(1) The Secretary of 
Defense shall carry out a program to aggressively accelerate 
the research, development, testing, and licensure of new 
medical countermeasures for defense against the biological 
warfare agents that are the highest threat.
    (2) The program shall include the following activities:
            (A) As the program's first priority, investment in 
        multiple new technologies for medical countermeasures 
        for defense against the biological warfare agents that 
        are the highest threat, including for the prevention 
        and treatment of anthrax.
            (B) Leveraging of ideas and technologies from the 
        biological technology industry.
    (b) Study Required.--(1) The Secretary of Defense shall 
enter into a contract with the Institute of Medicine and the 
National Research Council under which the Institute and 
Council, in consultation with the Secretary, shall carry out a 
study of the review and approval process for new medical 
countermeasures for biological warfare agents. The purpose of 
the study shall be to identify--
            (A) new approaches to accelerating such process; 
        and
            (B) definitive and reasonable methods for assuring 
        the agencies responsible for regulating such 
        countermeasures that such countermeasures will be 
        effective in preventing disease in humans or in 
        providing safe and effective therapy against such 
        agents.
    (2) Not later than June 1, 2002, the Institute and Council 
shall jointly submit to Congress a report on the results of the 
study.
    (c) Facility for Production of Vaccines.--(1) Subject to 
paragraph (2) and to the availability of funds for such 
purposes appropriated pursuant to an authorization of 
appropriations, the Secretary of Defense may--
            (A) design and construct a facility on a Department 
        of Defense installation for the production of vaccines 
        to meet the requirements of the Department of Defense 
        to prevent or mitigate the physiological effects of 
        exposure to biological warfare agents;
            (B) operate that facility;
            (C) qualify and validate that facility for the 
        production of vaccines in accordance with the 
        requirements of the Food and Drug Administration; and
            (D) contract with a private-sector source for the 
        production of vaccines in that facility.
    (2) The authority under paragraph (1)(A) to construct a 
facility may be exercised only to the extent that a project for 
such construction is authorized by law in accordance with 
section 2802 of title 10, United States Code.
    (3) The Secretary shall use competitive procedures under 
chapter 137 of title 10, United States Code, to enter into 
contracts to carry out subparagraphs (A), (B), and (D) of 
paragraph (1).
    (d) Plan Required.--(1) The Secretary shall develop a long-
range plan to provide for the production and acquisition of 
vaccines to meet the requirements of the Department of Defense 
to prevent or mitigate the physiological effects of exposure to 
biological warfare agents.
    (2) The plan shall include the following:
            (A) An evaluation of the need for one or more 
        vaccine production facilities that are specifically 
        dedicated to meeting the requirements of the Department 
        of Defense and other national interests.
            (B) An evaluation of the options for the means of 
        production of such vaccines, including--
                    (i) use of public facilities, private 
                facilities, or a combination of public and 
                private facilities; and
                    (ii) management and operation of the 
                facilities by the Federal Government, one or 
                more private persons, or a combination of the 
                Federal Government and one or more private 
                persons.
            (C) A specification of the means that the Secretary 
        determines is most appropriate for the production of 
        such vaccines.
    (3) The Secretary shall ensure that the plan is consistent 
with the requirement for safe and effective vaccines approved 
by the Food and Drug Administration.
    (4) In preparing the plan, the Secretary shall--
            (A) consider and, as the Secretary determines 
        appropriate, include the information compiled and the 
        analyses developed in preparing the reports required by 
        sections 217 and 218 of the Floyd D. Spence National 
        Defense Authorization Act for Fiscal Year 2001 (as 
        enacted into law by Public Law 106-398; 114 Stat. 
        1654A-36, 1654A-37); and
            (B) consult with the heads of other appropriate 
        departments and agencies of the Federal Government.
    (e) Report.--Not later than February 1, 2002, the Secretary 
shall submit to the congressional defense committees a report 
on the plan required by subsection (d). The report shall 
include, at a minimum, the contents of the plan and the 
following matters:
            (1) A description of the policies and requirements 
        of the Department of Defense regarding acquisition and 
        use of such vaccines.
            (2) The estimated schedule for the acquisition of 
        such vaccines in accordance with the plan.
            (3) A discussion of the options considered under 
        subsection (d)(2)(B) for the means of production of 
        such vaccines.
            (4) The Secretary's recommendations for the most 
        appropriate course of action to meet the requirements 
        specified in subsection (d)(1), together with the 
        justification for such recommendations and the long-
        term cost of implementing such recommendations.
    (f) Funding.--Of the amount authorized to be appropriated 
under section 201(4) for research, development, test, and 
evaluation, Defense-wide, $5,000,000 may be available in 
Program Element 62384BP, and $5,000,000 may be available in 
Program Element 63384BP, for the program required by subsection 
(a).

SEC. 1045. CHEMICAL AND BIOLOGICAL PROTECTIVE EQUIPMENT FOR MILITARY 
                    PERSONNEL AND CIVILIAN EMPLOYEES OF THE DEPARTMENT 
                    OF DEFENSE.

    Not later than 120 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report on the requirements of the Department of Defense, 
including the reserve components, regarding chemical and 
biological protective equipment. The report shall set forth the 
following:
            (1) A description of any current shortfalls with 
        respect to requirements regarding chemical and 
        biological protective equipment for military personnel, 
        whether for individuals or units.
            (2) An assessment of what should be the appropriate 
        level of protection for civilian employees of the 
        Department of Defense against chemical and biological 
        attack.
            (3) A plan for providing required chemical and 
        biological protective equipment for military personnel 
        and civilian employees of the Department of Defense.
            (4) An assessment of the costs associated with 
        carrying out the plan described in paragraph (3).

SEC. 1046. SALE OF GOODS AND SERVICES BY NAVAL MAGAZINE, INDIAN ISLAND, 
                    ALASKA.

    (a) Sale Authorized.--Subject to subsections (c) and (d) of 
section 2563 of title 10, United States Code, the Secretary of 
the Navy may sell to a person outside the Department of Defense 
any article or service provided by the Naval Magazine, Indian 
Island, Alaska, that is not available from a United States 
commercial source.
    (b) Crediting of Proceeds.--The proceeds from the sale of 
any article or service under this section shall be credited to 
the appropriation supporting the maintenance and operation of 
the Naval Magazine, Indian Island, for the fiscal year in which 
the proceeds are received.

SEC. 1047. REPORT ON PROCEDURES AND GUIDELINES FOR EMBARKATION OF 
                    CIVILIAN GUESTS ON NAVAL VESSELS FOR PUBLIC AFFAIRS 
                    PURPOSES.

    Not later than February 1, 2002, the Secretary of the Navy 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report setting forth in detail the procedures 
and guidelines of the Navy for the embarkation of civilian 
guests on naval vessels for public affairs purposes. The report 
shall include the following:
            (1) Procedures for nominating and approving 
        civilian guests for embarkation on naval vessels.
            (2) Procedures for ensuring that civilian guest 
        embarkations are conducted only as part of regularly 
        scheduled operations.
            (3) Guidelines regarding the operation of equipment 
        by civilian guests on naval vessels.
            (4) Any other procedures or guidelines the 
        Secretary considers necessary or appropriate to ensure 
        that operational readiness and safety are not hindered 
        by activities related to the embarkation of civilian 
        guests on naval vessels.

SEC. 1048. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States 
Code, is amended as follows:
            (1) The tables of chapters at the beginning of 
        subtitle A, and at the beginning of part II of subtitle 
        A, are each amended by striking the period after 
        ``1111'' in the item relating to chapter 56.
            (2) Section 119(g)(2) is amended by striking 
        ``National Security Subcommittee'' and inserting 
        ``Subcommittee on Defense''.
            (3) Section 130c(b)(3)(C) is amended by striking 
        ``subsection (f)'' and inserting ``subsection (g)''.
            (4) Section 176(a)(3) is amended by striking 
        ``Chief Medical Director'' and inserting ``Under 
        Secretary for Health''.
            (5)(A) Section 503(c) is amended in paragraph 
        (6)(A)(i) by striking ``14101(18)'' and ``8801(18)'' 
        and inserting ``14101'' and ``8801'', respectively.
            (B) The amendment made by subparagraph (A) shall 
        take effect on July 1, 2002, immediately after the 
        amendment to such section effective that date by 
        section 563(a) of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted into 
        law by Public Law 106-398; 114 Stat. 1654A-131).
            (6) Section 663(e) is amended--
                    (A) by striking ``Armed Forces Staff 
                College'' in paragraph (1) and inserting 
                ``Joint Forces Staff College''; and
                    (B) by striking ``Armed Forces Staff 
                College'' and inserting ``Joint Forces Staff 
                College''.
            (7) Section 667(17) is amended by striking ``Armed 
        Forces Staff College'' both places it appears and 
        inserting ``Joint Forces Staff College''.
            (8) Section 874(a) is amended by inserting after 
        ``a sentence of confinement for life without 
        eligibility for parole'' the following: ``that is 
        adjudged for an offense committed after October 29, 
        2000''.
            (9) Section 1056(c)(2) is amended by striking ``, 
        not later than September 30, 1991,''.
            (10) The table of sections at the beginning of 
        chapter 55 is amended by transferring the item relating 
        to section 1074i, as inserted by section 758(b) of the 
        Floyd D. Spence National Defense Authorization Act for 
        Fiscal Year 2001 (as enacted by Public Law 106-398; 114 
        Stat. 1654A-200), so as to appear after the item 
        relating to section 1074h.
            (11) Section 1097a(e) is amended by striking 
        ``section 1072'' and inserting ``section 1072(2)''.
            (12) Sections 1111(a) and 1114(a)(1) are each 
        amended by striking ``hereafter'' and inserting 
        ``hereinafter''.
            (13) Section 1116 is amended--
                    (A) in subsection (a)(2)(B), by inserting 
                an open parenthesis before ``other than for 
                training''; and
                    (B) in subsection (b)(2)(D), by striking 
                ``section 111(c)(4)'' and inserting ``section 
                1115(c)(4)''.
            (14) The heading for subchapter II of chapter 75 is 
        transferred within that chapter so as to appear before 
        the table of sections at the beginning of that 
        subchapter (as if the amendment made by section 
        721(c)(1) of the National Defense Authorization Act for 
        Fiscal Year 2000 (Public Law 106-65; 113 Stat. 694) had 
        inserted that heading following section 1471 instead of 
        before section 1475).
            (15) Section 1611(d) is amended by striking 
        ``with''.
            (16) Section 2166(e)(9) is amended by striking 
        ``App. 2'' and inserting ``App.''.
            (17) Section 2323(a)(1)(C) is amended--
                    (A) by striking ``section 1046(3)'' and 
                inserting ``section 365(3)'';
                    (B) by striking ``20 U.S.C. 1135d-5(3)'' 
                and inserting ``20 U.S.C. 1067k''; and
                    (C) by striking ``, which, for the purposes 
                of this section'' and all that follows through 
                the period at the end and inserting a period.
            (18) Section 2375(b) is amended by inserting ``(41 
        U.S.C. 430)'' after ``section 34 of the Office of 
        Federal Procurement Policy Act''.
            (19) Section 2376(1) is amended by inserting ``(41 
        U.S.C. 403)'' after ``section 4 of the Office of 
        Federal Procurement Policy Act''.
            (20) Section 2410f(a) is amended by inserting after 
        ``inscription'' the following: ``, or another 
        inscription with the same meaning,''.
            (21) Section 2461a(a)(2) is amended by striking 
        ``effeciency'' and inserting ``efficiency''.
            (22) Section 2467 is amended--
                    (A) in subsection (a)(2)--
                            (i) by striking ``, United States 
                        Code'' in subparagraph (A); and
                            (ii) by striking ``such'' in 
                        subparagraphs (B) and (C); and
                    (B) in subsection (b)(2)(A), by striking 
                ``United States Code,''.
            (23) Section 2535 is amended--
                    (A) in subsection (a)--
                            (i) by striking ``intent of 
                        Congress'' and inserting ``intent of 
                        Congress--'';
                            (ii) by realigning clauses (1), 
                        (2), (3), and (4) so that each such 
                        clause appears as a separate paragraph 
                        indented two ems from the left margin; 
                        and
                            (iii) in paragraph (1), as so 
                        realigned, by striking ``Armed Forces'' 
                        and inserting ``armed forces'';
                    (B) in subsection (b)(1)--
                            (i) by striking ``in this section, 
                        the Secretary is authorized and 
                        directed to--'' and inserting ``in 
                        subsection (a), the Secretary of 
                        Defense shall--''; and
                            (ii) by striking ``defense 
                        industrial reserve'' in subparagraph 
                        (A) and inserting ``Defense Industrial 
                        Reserve''; and
                    (C) in subsection (c)--
                            (i) by striking paragraph (1);
                            (ii) by redesignating paragraph (2) 
                        as paragraph (1) and in that 
                        paragraph--
                                    (I) by striking ``means'' 
                                and inserting ``means--'';
                                    (II) by realigning clauses 
                                (A), (B), and (C) so that each 
                                such clause appears as a 
                                separate subparagraph indented 
                                four ems from the left margin; 
                                and
                                    (III) by inserting ``and'' 
                                at the end of subparagraph (B), 
                                as so realigned; and
                            (iii) by redesignating paragraph 
                        (3) as paragraph (2).
            (24) Section 2541c is amended by striking 
        ``subtitle'' both places it appears in the matter 
        preceding paragraph (1) and inserting ``subchapter''.
            (25) The second section 2582, added by section 1(a) 
        of Public Law 106-446 (114 Stat. 1932), is redesignated 
        as section 2583, and the item relating to that section 
        in the table of sections at the beginning of chapter 
        153 is revised to conform to such redesignation.
            (26)(A) Section 2693(a) is amended--
                    (i) in the matter preceding paragraph (1), 
                by inserting ``of Defense'' after 
                ``Secretary''; and
                    (ii) in paragraph (3)--
                            (I) by inserting ``to the Secretary 
                        of Defense'' after ``certifies'';
                            (II) by inserting ``(42 U.S.C. 
                        3762a)'' after ``of 1968''; and
                            (III) by striking ``to the public 
                        agencies referred to in section 
                        515(a)(1) or 515(a)(3) of title I of 
                        such Act'' and inserting ``to a public 
                        agency referred to in paragraph (1) or 
                        (3) of subsection (a) of such 
                        section''.
            (B)(i) The heading of such section is amended to 
        read as follows:

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

            (ii) The item relating to such section in the table 
        of sections at the beginning of chapter 159 is amended 
        to read as follows:

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

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

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

            (B) The item relating to section 1702 in the table 
        of sections at the beginning of subchapter I of chapter 
        87 is amended to read as follows:

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

            (4) Section 2503(b) is amended by striking ``Under 
        Secretary of Defense for Acquisition'' and inserting 
        ``Under Secretary of Defense for Acquisition, 
        Technology, and Logistics''.
    (c) Amendments To Substitute Calendar Dates for Date-of-
Enactment References.--Title 10, United States Code, is further 
amended as follows:
            (1) Section 130c(d)(1) is amended by striking ``the 
        date of the enactment of the Floyd D. Spence National 
        Defense Authorization Act for Fiscal Year 2001'' and 
        inserting ``October 30, 2000,''.
            (2) Section 184(a) is amended by striking ``the 
        date of the enactment of this section,'' and inserting 
        ``October 30, 2000,''.
            (3) Section 986(a) is amended by striking ``the 
        date of the enactment of this section,'' and inserting 
        ``October 30, 2000,''.
            (4) Section 1074g(a)(8) is amended by striking 
        ``the date of the enactment of this section'' and 
        inserting ``October 5, 1999,''.
            (5) Section 1079(h)(2) is amended by striking ``the 
        date of the enactment of this paragraph'' and inserting 
        ``February 10, 1996,''.
            (6) Section 1206(5) is amended by striking ``the 
        date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 2000,'' and inserting 
        ``October 5, 1999,''.
            (7) Section 1405(c)(1) is amended by striking ``the 
        date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 1995,'' and inserting 
        ``October 5, 1994,''.
            (8) Section 1407(f)(2) is amended by striking ``the 
        date of the enactment of this subsection--'' and 
        inserting ``October 30, 2000--''.
            (9) Section 1408(d)(6) is amended by striking ``the 
        date of the enactment of this paragraph'' and inserting 
        ``August 22, 1996,''.
            (10) Section 1511(b) is amended by striking ``the 
        date of the enactment of this chapter.'' and inserting 
        ``February 10, 1996.''.
            (11) Section 2461a(b)(1) is amended by striking 
        ``the date of the enactment of this section,'' and 
        inserting ``October 30, 2000,''.
            (12) Section 4021(c)(1) is amended by striking 
        ``the date of the enactment of this section.'' and 
        inserting ``November 29, 1989.''.
            (13) Section 6328(a) is amended by striking ``the 
        date of the enactment of this section'' and inserting 
        ``February 10, 1996,''.
            (14) Section 7439 is amended--
                    (A) in subsection (a)(2), by striking ``one 
                year after the date of the enactment of this 
                section,'' and inserting ``November 18, 
                1998,'';
                    (B) in subsection (b)(1), by striking ``the 
                date of the enactment of this section,'' and 
                inserting ``November 18, 1997,'';
                    (C) in subsection (b)(2), by striking ``the 
                end of the one-year period beginning on the 
                date of the enactment of this section.'' and 
                inserting ``November 18, 1998.''; and
                    (D) in subsection (f)(2), by striking ``the 
                date of the enactment of this section'' and 
                inserting ``November 18, 1997,''.
            (15) Section 12533 is amended--
                    (A) in each of subsections (b) and (c)(1), 
                by striking ``the date of the enactment of this 
                section.'' and inserting ``November 18, 
                1997.''; and
                    (B) in each of subsections (c)(2) and (d), 
                by striking ``the date of the enactment of this 
                section'' and inserting ``November 18, 1997,''.
            (16) Section 12733(3) is amended--
                    (A) in subparagraph (B), by striking ``the 
                date of the enactment of the Floyd D. Spence 
                National Defense Authorization Act for Fiscal 
                Year 2001;'' and inserting ``October 30, 
                2000;''; and
                    (B) in subparagraph (C), by striking ``the 
                date of the enactment of the Floyd D. Spence 
                National Defense Authorization Act for Fiscal 
                Year 2001'' and inserting ``October 30, 
                2000,''.
    (d) Amendments Relating to Change in Title of McKinney-
Vento Homeless Assistance Act.--The following provisions are 
each amended by striking ``Stewart B. McKinney Homeless 
Assistance Act'' and inserting ``McKinney-Vento Homeless 
Assistance Act'':
            (1) Sections 2814(j)(2), 2854a(d)(2), and 
        2878(d)(4) of title 10, United States Code.
            (2) Sections 2905(b)(6)(A) and 2910(11) of the 
        Defense Base Closure and Realignment Act of 1990 (part 
        A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note).
            (3) Section 204(b)(6)(A) of the Defense 
        Authorization Amendments and Base Closure and 
        Realignment Act (Public Law 100-526; 10 U.S.C. 2687 
        note).
            (4) Section 2915(c)(10) of the National Defense 
        Authorization Act for Fiscal Year 1994 (10 U.S.C. 2687 
        note).
            (5) Section 2(e)(4)(A) of the Base Closure 
        Community Redevelopment and Homeless Assistance Act of 
        1994 (Public Law 103-421; 10 U.S.C. 2687 note).
            (6) Section 1053(a) of the National Defense 
        Authorization Act for Fiscal Year 1997 (110 Stat. 
        2650).
    (e) Amendments To Repeal Obsolete Provisions.--Title 10, 
United States Code, is further amended as follows:
            (1) Section 1144 is amended--
                    (A) in subsection (a)(3), by striking the 
                second sentence; and
                    (B) by striking subsection (e).
            (2) Section 1581(b) is amended--
                    (A) by striking ``(1)'' and all that 
                follows through ``The Secretary of Defense 
                shall deposit'' and inserting ``The Secretary 
                of Defense shall deposit''; and
                    (B) by striking ``on or after December 5, 
                1991,''.
            (3) Subsection (e) of section 1722 is repealed.
            (4) Subsection 1732(a) is amended by striking the 
        second sentence.
            (5) Section 1734 is amended--
                    (A) in subsection (b)(1)(B), by striking 
                ``on and after October 1, 1991,''; and
                    (B) in subsection (e)(2), by striking the 
                last sentence.
            (6)(A) Section 1736 is repealed.
            (B) The table of sections at the beginning of 
        subchapter III of chapter 87 is amended by striking the 
        item relating to section 1736.
            (7)(A) Sections 1762 and 1764 are repealed.
            (B) The table of sections at the beginning of 
        subchapter V of chapter 87 is amended by striking the 
        items relating to sections 1762 and 1764.
            (8) Section 2112(a) is amended by striking ``, with 
        the first class graduating not later than September 21, 
        1982''.
            (9) Section 2218(d)(1) is amended by striking ``for 
        fiscal years after fiscal year 1993''.
            (10)(A) Section 2468 is repealed.
            (B) The table of sections at the beginning of 
        chapter 146 is amended by striking the item relating to 
        section 2468.
            (11) Section 2832 is amended--
                    (A) by striking ``(a)'' before ``The 
                Secretary of Defense''; and
                    (B) by striking subsection (b).
            (12) Section 7430(b)(2) is amended--
                    (A) by striking ``at a price less than'' 
                and all that follows through ``the current 
                sales price'' and inserting ``at a price less 
                than the current sales price'';
                    (B) by striking ``; or'' and inserting a 
                period; and
                    (C) by striking subparagraph (B).
    (f) Public Law 106-398.--Effective as of October 30, 2000, 
and as if included therein as enacted, the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398) is amended as follows:
            (1) Section 525(b)(1) (114 Stat. 1654A-109) is 
        amended by striking ``subsection (c)'' and inserting 
        ``subsections (a) and (b)''.
            (2) Section 1152(c)(2) (114 Stat. 1654A-323) is 
        amended by inserting ``inserting'' after ``and''.
    (g) Public Law 106-65.--Effective as of October 5, 1999, 
and as if included therein as enacted, the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65) is 
amended as follows:
            (1) Section 531(b)(2)(A) (113 Stat. 602) is amended 
        by inserting ``in subsection (a),'' after ``(A)''.
            (2) Section 549(a)(2) (113 Stat. 611) is amended by 
        striking ``such chapter'' and inserting ``chapter 49 of 
        title 10, United States Code,''.
            (3) Section 576(a)(3) (10 U.S.C. 1501 note; 113 
        Stat. 625) is amended by adding a period at the end.
            (4) Section 577(a)(2) (113 Stat. 625) is amended by 
        striking ``bad conduct'' in the first quoted matter and 
        inserting ``bad-conduct''.
            (5) Section 811(d)(3)(B)(v) (10 U.S.C. 2302 note; 
        113 Stat. 709) is amended by striking ``Mentor-
        Protegee'' and inserting ``Mentor-Protege''.
            (6) Section 1052(b)(1) (113 Stat. 764) is amended 
        by striking `` `The Department'' and inserting ``the 
        `Department''.
            (7) Section 1053(a)(5) (10 U.S.C. 113 note; 113 
        Stat. 764) is amended by inserting ``and'' before 
        ``Marines''.
            (8) Section 1402(f)(2)(A) (22 U.S.C. 2778 note; 113 
        Stat. 799) is amended by striking ``3201 note'' and 
        inserting ``6305(4)''.
            (9) Section 2902(d) (10 U.S.C. 111 note; 113 Stat. 
        882) is amended by striking ``section 2871(b)'' and 
        inserting ``section 2881(b)''.
    (h) Public Law 102-484.--The National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102-484) is amended as 
follows:
            (1) Section 3161(c)(6)(C) (42 U.S.C. 
        7274h(c)(6)(C)) is amended by striking ``title IX of 
        the Public Works and Economic Development Act of 1965 
        (42 U.S.C. 3241 et seq.)'' and inserting ``title II of 
        the Public Works and Economic Development Act of 1965 
        (42 U.S.C. 3141 et seq.)''.
            (2) Section 4416(b)(1) (10 U.S.C. 12681 note) is 
        amended by striking ``force reduction period'' and 
        inserting ``force reduction transition period''.
            (3) Section 4461(5) (10 U.S.C. 1143 note) is 
        amended by adding a period at the end.
    (i) Other Laws.--
            (1) Section 1083(c) of the National Defense 
        Authorization Act for Fiscal Year 1998 (Public Law 105-
        85; 10 U.S.C. 113 note) is amended by striking 
        ``Names'' and inserting ``Name''.
            (2) Section 845(d)(1)(B)(ii) of the National 
        Defense Authorization Act for Fiscal Year 1994 (Public 
        Law 103-160; 10 U.S.C. 2371 note) is amended by 
        inserting a closed parenthesis after ``41 U.S.C. 
        414(3))''.
            (3) Section 1123(b) of the National Defense 
        Authorization Act for Fiscal Years 1990 and 1991 
        (Public Law 101-189; 103 Stat. 1556) is amended by 
        striking ``Armed Forces Staff College'' each place it 
        appears and inserting ``Joint Forces Staff College''.
            (4) Section 1412(g)(2)(C)(vii) of the Department of 
        Defense Authorization Act, 1986 (50 U.S.C. 
        1521(g)(2)(C)(vii)) is amended by striking ``(c)(3)'' 
        and inserting ``(c)(4)''.
            (5) Section 8336 of title 5, United States Code, is 
        amended--
                    (A) in subsection (d)(2), by striking 
                ``subsection (o)'' and inserting ``subsection 
                (p)''; and
                    (B) by redesignating the second subsection 
                (o), added by section 1152(a)(2) of the Floyd 
                D. Spence National Defense Authorization Act 
                for Fiscal Year 2001 (as enacted by Public Law 
                106-398; 114 Stat. 1654A-320), as subsection 
                (p).
            (6) Section 9001(3) of title 5, United States Code, 
        is amended by striking ``and'' at the end of 
        subparagraph (A) and inserting ``or''.
            (7) Section 318(h)(3) of title 37, United States 
        Code, is amended by striking ``subsection (a)'' and 
        inserting ``subsection (b)''.
            (8) Section 3695(a)(5) of title 38, United States 
        Code, is amended by striking ``1610'' and inserting 
        ``1611''.
            (9) Section 13(b) of the Peace Corps Act (22 U.S.C. 
        2512(b)) is amended by striking ``, subject to section 
        5532 of title 5, United States Code''.
            (10) Section 127(g)(6) of the Trade Deficit Review 
        Commission Act (19 U.S.C. 2213 note), as amended by 
        section 311(b) of the Legislative Branch Appropriations 
        Act, 2000 (Public Law 106-57; 113 Stat. 428), is 
        amended--
                    (A) by striking ``authorities.--'' and all 
                that follows through ``An individual'' and 
                inserting ``authorities.--An individual''; and
                    (B) by striking subparagraph (B).
            (11) Section 28 of the Atomic Energy Act of 1954 
        (42 U.S.C. 2038) is amended in the last sentence by 
        striking '', subject to'' and all that follows through 
        the period at the end and inserting a period.
            (12) Section 3212 of the National Nuclear Security 
        Administration Act (50 U.S.C. 2402) is amended by 
        redesignating the second subsection (e), added by 
        section 3159(a) of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted by 
        Public Law 106-398; 114 Stat. 1654A-469), as subsection 
        (f).
    (j) Coordination With Other Amendments.--For purposes of 
applying amendments made by provisions of this Act other than 
provisions of this section, this section shall be treated as 
having been enacted immediately before the other provisions of 
this Act.

SEC. 1049. TERMINATION OF REFERENDUM REQUIREMENT REGARDING CONTINUATION 
                    OF MILITARY TRAINING ON ISLAND OF VIEQUES, PUERTO 
                    RICO, AND IMPOSITION OF ADDITIONAL CONDITIONS ON 
                    CLOSURE OF TRAINING RANGE.

    (a) In General.--Title XV of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (as enacted into 
law by Public Law 106-398; 114 Stat. 1654A-348) is amended by 
striking sections 1503, 1504, and 1505 and inserting the 
following new sections:

``SEC. 1503. CONDITIONS ON CLOSURE OF VIEQUES NAVAL TRAINING RANGE.

    ``(a) Conditional Authority to Close.--The Secretary of the 
Navy may close the Vieques Naval Training Range on the island 
of Vieques, Puerto Rico, and discontinue training at that range 
only if the Secretary certifies to the President and Congress 
that both of the following conditions are satisfied:
            ``(1) One or more alternative training facilities 
        exist that, individually or collectively, provide an 
        equivalent or superior level of training for units of 
        the Navy and the Marine Corps stationed or deployed in 
        the eastern United States.
            ``(2) The alternative facility or facilities are 
        available and fully capable of supporting such Navy and 
        Marine Corps training immediately upon cessation of 
        training on Vieques.
    ``(b) Consultation Required.--In determining whether the 
conditions specified in paragraphs (1) and (2) of subsection 
(a) are satisfied, the Secretary of the Navy shall take into 
account the written views and recommendations of the Chief of 
Naval Operations and the Commandant of the Marine Corps. The 
Secretary shall submit these written views and recommendations 
to Congress with the certification submitted under subsection 
(a).

``SEC. 1504. CLOSURE OF VIEQUES NAVAL TRAINING RANGE AND DISPOSAL OF 
                    CLOSED RANGE.

    ``(a) Termination of Training and Related Closures.--If the 
conditions specified in section 1503(a) are satisfied and the 
Secretary of the Navy makes a determination to close the 
Vieques Naval Training Range and discontinue live-fire training 
at that range the Secretary of the Navy shall--
            ``(1) terminate all Navy and Marine Corps training 
        operations on the island of Vieques;
            ``(2) terminate all Navy and Marine Corps 
        operations at Naval Station Roosevelt Roads, Puerto 
        Rico, that are related exclusively to the use of the 
        training range on the island of Vieques by the Navy and 
        the Marine Corps; and
            ``(3) close the Navy installations and facilities 
        on the island of Vieques, other than properties exempt 
        from conveyance and transfer under section 1506.
    ``(b) Transfer to Secretary of the Interior.--Upon 
termination of Navy and Marine Corps training operations on the 
island of Vieques, the Secretary of the Navy shall transfer, 
without reimbursement, to the administrative jurisdiction of 
the Secretary of the Interior--
            ``(1) the Live Impact Area on the island of 
        Vieques;
            ``(2) all Department of Defense real properties on 
        the eastern side of the island that are identified as 
        conservation zones; and
            ``(3) all other Department of Defense real 
        properties on the eastern side of the island.
    ``(c) Administration by Secretary of the Interior.--
            ``(1) Retention and administration.--The Secretary 
        of the Interior shall retain, and may not dispose of 
        any of, the properties transferred under paragraphs (2) 
        and (3) of subsection (b) and shall administer such 
        properties as wildlife refuges under the National 
        Wildlife Refuge System Administration Act of 1966 (16 
        U.S.C. 668dd et seq.) pending the enactment of a law 
        that addresses the disposition of such properties.
            ``(2) Live impact area.--The Secretary of the 
        Interior shall assume responsibility for the 
        administration of the Live Impact Area upon transfer 
        under paragraph (1) of subsection (b), administer that 
        area as a wilderness area under the Wilderness Act (16 
        U.S.C. 1131 et seq.), and deny public access to the 
        area.
    ``(d) Live Impact Area Defined.--In this section, the term 
`Live Impact Area' means the parcel of real property, 
consisting of approximately 900 acres (more or less), on the 
island of Vieques that is designated by the Secretary of the 
Navy for targeting by live ordnance in the training of forces 
of the Navy and Marine Corps.''.
    (b) Conforming Amendment.--Section 1507(c) of such Act (114 
Stat. 1654A-355) is amended by striking ``the issuance of a 
proclamation described in section 1504(a) or''.

                       Subtitle F--Other Matters

SEC. 1061. ASSISTANCE FOR FIREFIGHTERS.

    (a) Authorization of Appropriations.--Subsection (e) of 
section 33 of the Federal Fire Prevention and Control Act of 
1974 (15 U.S.C. 2229) is amended to read as follows:
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be 
        appropriated $900,000,000 for each of the fiscal years 
        2002 through 2004 for the purposes of this section.
            ``(2) Administrative expenses.--Of the funds 
        appropriated pursuant to paragraph (1) for a fiscal 
        year, the Director may use not more than three percent 
        of the funds to cover salaries and expenses and other 
        administrative costs incurred by the Director to 
        operate the office established under subsection (b)(2) 
        and make grants and provide assistance under this 
        section.''.
    (b) Response to Terrorism or Use of Weapons of Mass 
Destruction.--Subsection (b)(3) of such section is amended--
            (1) in subparagraph (B), by inserting ``(including 
        response to a terrorism incident or use of a weapon of 
        mass destruction)'' after ``response'';
            (2) in subparagraph (H), by striking ``and 
        monitoring'' and inserting ``, monitoring, and response 
        to a terrorism incident or use of a weapon of mass 
        destruction''; and
            (3) in subparagraph (I), by inserting ``, including 
        protective equipment to respond to a terrorism incident 
        or the use of a weapon of mass destruction'' after 
        ``personnel'' the second place it appears.
    (c) Technical Amendments.--Subsection (b)(3) of such 
section is further amended--
            (1) by striking ``the grant funds--'' in the matter 
        preceding subparagraph (A) and inserting ``the grant 
        funds for one or more of the following purposes:'';
            (2) by capitalizing the initial letter of the first 
        word of each of subparagraphs (A) through (N);
            (3) by striking the semicolon at the end of each of 
        subparagraphs (A) through (L) and inserting a period; 
        and
            (4) by striking ``; or'' at the end of subparagraph 
        (M) and inserting a period.

SEC. 1062. EXTENSION OF TIMES FOR COMMISSION ON THE FUTURE OF THE 
                    UNITED STATES AEROSPACE INDUSTRY TO REPORT AND TO 
                    TERMINATE.

    (a) Deadline for Report.--Subsection (d)(1) of section 1092 
of the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
114 Stat. 1654A-302) is amended by striking ``March 1, 2002'' 
and inserting ``one year after the date of the first official 
meeting of the Commission''.
    (b) Termination of Commission.--Subsection (g) of such 
section is amended by striking ``30 days'' and inserting ``60 
days''.

SEC. 1063. APPROPRIATIONS TO RADIATION EXPOSURE COMPENSATION TRUST 
                    FUND.

    Section 3(e) of the Radiation Exposure Compensation Act (42 
U.S.C. 2210 note) is amended to read as follows:
    ``(e) Appropriation.--
            ``(1) In general.--There are appropriated to the 
        Fund, out of any money in the Treasury not otherwise 
        appropriated, for fiscal year 2002 and each fiscal year 
        thereafter through fiscal year 2011, such sums as may 
        be necessary, not to exceed the applicable maximum 
        amount specified in paragraph (2), to carry out the 
        purposes of the Fund.
            ``(2) Limitation.--Appropriation of amounts to the 
        Fund pursuant to paragraph (1) is subject to the 
        following maximum amounts:
                    ``(A) For fiscal year 2002, $172,000,000.
                    ``(B) For fiscal year 2003, $143,000,000.
                    ``(C) For fiscal year 2004, $107,000,000.
                    ``(D) For fiscal year 2005, $65,000,000.
                    ``(E) For fiscal year 2006, $47,000,000.
                    ``(F) For fiscal year 2007, $29,000,000.
                    ``(G) For fiscal year 2008, $29,000,000.
                    ``(H) For fiscal year 2009, $23,000,000.
                    ``(I) For fiscal year 2010, $23,000,000.
                    ``(J) For fiscal year 2011, $17,000,000.''.

SEC. 1064. WAIVER OF VEHICLE WEIGHT LIMITS DURING PERIODS OF NATIONAL 
                    EMERGENCY.

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

SEC. 1065. REPAIR, RESTORATION, AND PRESERVATION OF LAFAYETTE 
                    ESCADRILLE MEMORIAL, MARNES-LA-COQUETTE, FRANCE.

    (a) Authority To Make Grant.--(1) Subject to subsections 
(b) and (c), the Secretary of the Air Force may make a grant to 
the Lafayette Escadrille Memorial Foundation, Inc., to be used 
solely for the purpose of repairing, restoring, and preserving 
the structure, plaza, and surrounding grounds of the Lafayette 
Escadrille Memorial in Marnes la-Coquette, France.
    (2) The amount of the grant may not exceed $2,000,000.
    (b) Contribution of Funds by France.--The Secretary of the 
Air Force may not make the grant authorized by subsection (a) 
until 30 days after the Secretary submits to Congress a report 
indicating that the government of France has also contributed 
funds toward the repair, restoration, and preservation of the 
memorial. The report shall specify the amount of the funds 
contributed by the government of France and describe the 
purpose for which the funds are to be used.
    (c) Conditions on Receipt of Grant.--(1) The grant under 
subsection (a) shall be subject to the following conditions:
            (A) That the Lafayette Escadrille Memorial 
        Foundation submit to the Secretary of the Air Force an 
        annual report, until the grant funds are fully 
        expended, containing an itemized accounting of 
        expenditures of grant funds and describing the progress 
        made to repair, restore, and preserve the memorial.
            (B) That the Secretary and the Comptroller General 
        of the United States, or any of their duly authorized 
        representatives, be given access for the purpose of 
        audit and examination to any books, documents, papers, 
        and records of the Lafayette Escadrille Memorial 
        Foundation.
            (C) That none of the grant funds be used for 
        remuneration of any entity or individual associated 
        with fundraising for any project in connection with the 
        repair, restoration, and preservation of the memorial.
    (2) The Secretary shall transmit to Congress a copy of each 
report received under paragraph (1)(A).
    (d) Report on Architectural and Engineering Costs.--Not 
later than one year after the date of the enactment of this 
Act, the Secretary of the Air Force shall submit to Congress a 
report containing an estimate of the architectural and 
engineering costs to be incurred to fully repair, restore, and 
preserve the memorial and ensure the long-term structural 
integrity of the memorial. The estimate shall be prepared by a 
private United States entity, under contract with the 
Secretary. Funds for the contract shall also be derived from 
the amount specified in subsection (e).
    (e) Funds for Grant.--Funds for the grant under subsection 
(a) shall be derived only from amounts authorized to be 
appropriated under section 301(a)(4) for operation and 
maintenance for the Air Force.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

          Subtitle A--Department of Defense Civilian Personnel

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

           Subtitle B--Civilian Personnel Management Generally

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

               Subtitle C--Intelligence Civilian Personnel

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

               Subtitle D--Matters Relating To Retirement

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

          Subtitle A--Department of Defense Civilian Personnel

SEC. 1101. PERSONNEL PAY AND QUALIFICATIONS AUTHORITY FOR DEPARTMENT OF 
                    DEFENSE PENTAGON RESERVATION CIVILIAN LAW 
                    ENFORCEMENT AND SECURITY FORCE.

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

SEC. 1102. PILOT PROGRAM FOR PAYMENT OF RETRAINING EXPENSES.

    (a) Authority To Carry Out Pilot Program.--(1) The 
Secretary of Defense may establish a pilot program to 
facilitate the reemployment of eligible employees of the 
Department of Defense who are involuntarily separated due to a 
reduction in force, relocation as a result of a transfer of 
function, realignment, or change of duty station. Under the 
pilot program, the Secretary may pay retraining incentives to 
encourage non-Federal employers to hire and retain such 
eligible employees.
    (2) Under the pilot program, the Secretary may enter into 
an agreement with a non-Federal employer under which the 
employer agrees--
            (A) to employ an eligible employee for at least 12 
        months at a salary that is mutually agreeable to the 
        employer and the eligible employee; and
            (B) to certify to the Secretary the amount of costs 
        incurred by the employer for any necessary training (as 
        defined by the Secretary) provided to such eligible 
        employee in connection with the employment.
    (3) The Secretary may pay a retraining incentive to the 
non-Federal employer upon the employee's completion of 12 
months of continuous employment with that employer. The 
Secretary shall determine the amount of the incentive, except 
that in no event may such amount exceed the lesser of the 
amount certified with respect to such eligible employee under 
paragraph (2)(B), or $10,000.
    (4) In a case in which an eligible employee does not remain 
employed by the non-Federal employer for at least 12 months, 
the Secretary may pay to the employer a prorated amount of what 
would have been the full retraining incentive if the eligible 
employee had remained employed for such 12-month period.
    (b) Eligible Employees.--For purposes of this section, an 
eligible employee is an employee of the Department of Defense, 
serving under an appointment without time limitation, who has 
been employed by the Department for a continuous period of at 
least 12 months and who has been given notice of separation 
pursuant to a reduction in force, relocation as a result of a 
transfer of function, realignment, or change of duty station, 
except that such term does not include--
            (1) a reemployed annuitant under the retirement 
        systems described in subchapter III of chapter 83 of 
        title 5, United States Code, or chapter 84 of such 
        title, or another retirement system for employees of 
        the Federal Government;
            (2) an employee who, upon separation from Federal 
        service, is eligible for an immediate annuity under 
        subchapter III of chapter 83 of such title, or 
        subchapter II of chapter 84 of such title; or
            (3) an employee who is eligible for disability 
        retirement under any of the retirement systems referred 
        to in paragraph (1).
    (c) Duration.--No incentive may be paid under the pilot 
program for training commenced after September 30, 2005.
    (d) Definitions.--In this section:
            (1) The term ``non-Federal employer'' means an 
        employer that is not an Executive agency, as defined in 
        section 105 of title 5, United States Code, or an 
        entity in the legislative or judicial branch of the 
        Federal Government.
            (2) The term ``reduction in force'' has the meaning 
        of that term as used in chapter 35 of such title 5.
            (3) The term ``realignment'' has the meaning given 
        that term in section 2910 of the Defense Base Closure 
        and Realignment Act of 1990 (title XXIX of Public Law 
        101-510; 10 U.S.C. 2687 note).

SEC. 1103. AUTHORITY OF CIVILIAN EMPLOYEES TO ACT AS NOTARIES.

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

SEC. 1104. AUTHORITY TO APPOINT CERTAIN HEALTH CARE PROFESSIONALS IN 
                    THE EXCEPTED SERVICE.

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

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

    ``(a) Authority.--The Secretary of Defense may appoint in 
the excepted service without regard to the provisions of 
subchapter I of chapter 33 of title 5 (except as provided in 
section 3328 of such title and in subsection (c) of this 
section) an individual who has--
            ``(1) a recognized degree or certificate from an 
        accredited institution in a covered health care 
        profession or occupation; and
            ``(2) successfully completed a clinical education 
        program affiliated with the Department of Defense or 
        the Department of Veterans Affairs.
    ``(b) Covered Health Care Profession or Occupation.--For 
purposes of subsection (a), a covered health care profession or 
occupation is any of the following:
            ``(1) Physician.
            ``(2) Dentist.
            ``(3) Podiatrist.
            ``(4) Optometrist.
            ``(5) Nurse.
            ``(6) Physician assistant.
            ``(7) Expanded-function dental auxiliary.
    ``(c) Preferences in Hiring.--In using the authority 
provided by this section, the Secretary shall apply the 
principles of preference for the hiring of veterans and other 
individuals established in subchapter I of chapter 33 of title 
5.
    ``(d) Probationary Period.--There shall be an initial 
probationary period of two years for appointments made under 
the authority of this section.
    ``(e) Promotions and Advancement.--(1) Promotions of 
individuals appointed under the authority of this section shall 
be made only after an examination performed in accordance with 
regulations prescribed by the Secretary.
    ``(2) Advancement of such individuals within a pay grade 
may be made in increments of the minimum rate of basic pay of 
the grade in accordance with regulations prescribed by the 
Secretary.
    ``(f) Review of Records by Board.--The record of each 
individual appointed under the authority of this section in the 
medical, dental, and nursing services shall be reviewed 
periodically by a board, which shall be appointed in accordance 
with regulations prescribed by the Secretary. If such board 
finds that such individual is not fully qualified and 
satisfactory, such individual shall be separated from service.
    ``(g) Adjustment of Pay.--In accordance with regulations 
prescribed by the Secretary, the grade and annual rate of basic 
pay of an individual appointed under this section whose level 
of assignment is changed from a level of assignment in which 
the grade level is based on both the nature of the assignment 
and qualifications may be adjusted to the grade and annual rate 
of basic pay otherwise appropriate.
    ``(h) Appointment to Additional Positions.--(1) The 
Secretary may use the authority of this subsection (subject to 
paragraph (2)) to establish the qualifications for, and appoint 
and advance an individual in the Department of Defense as--
            ``(A) a clinical or counseling psychologist (if 
        such psychologist holds a diploma as a diplomate in 
        psychology from an accrediting authority approved by 
        the Secretary);
            ``(B) a certified or registered respiratory 
        therapist;
            ``(C) a licensed physical therapist;
            ``(D) a licensed practical or vocational nurse;
            ``(E) a pharmacist; or
            ``(F) an occupational therapist.
    ``(2) Notwithstanding any other provision of this title or 
any other law, all matters relating to adverse actions, 
disciplinary actions, and grievance procedures involving an 
individual appointed to a position described in paragraph (1) 
(including such actions and procedures involving an employee in 
a probationary status) shall be resolved under the provisions 
of title 5 as though such individual had been appointed under 
such title.
    ``(i) Reinstatement.--In determining eligibility for 
reinstatement in the civil service of individuals appointed to 
positions in the Department of Defense under this section who 
at the time of appointment have a civil service status and 
whose employment in the Department of Defense is terminated, 
the period of service performed in the Department shall be 
included in computing the period of service under applicable 
civil service regulations.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

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

          Subtitle B--Civilian Personnel Management Generally

SEC. 1111. AUTHORITY TO PROVIDE HOSTILE FIRE PAY.

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

``Sec. 5949. Hostile fire pay

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

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

SEC. 1112. PAYMENT OF EXPENSES TO OBTAIN PROFESSIONAL CREDENTIALS.

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

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

    ``(a) An agency may use appropriated funds or funds 
otherwise available to the agency to pay for--
            ``(1) expenses for employees to obtain professional 
        credentials, including expenses for professional 
        accreditation, State-imposed and professional licenses, 
        and professional certification; and
            ``(2) examinations to obtain such credentials.
    ``(b) The authority under subsection (a) may not be 
exercised on behalf of any employee occupying or seeking to 
qualify for appointment to any position that is excepted from 
the competitive service because of the confidential, policy-
determining, policy-making, or policy-advocating character of 
the position.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

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

SEC. 1113. PARITY IN ESTABLISHMENT OF WAGE SCHEDULES AND RATES FOR 
                    PREVAILING RATE EMPLOYEES.

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

SEC. 1114. MODIFICATION OF LIMITATION ON PREMIUM PAY.

    (a) In General.--Section 5547 of title 5, United States 
Code, is amended to read as follows:

``Sec. 5547. Limitation on premium pay

    ``(a) An employee may be paid premium pay under sections 
5542, 5545(a), (b), and (c), 5545a, and 5546(a) and (b) only to 
the extent that the payment does not cause the aggregate of 
basic pay and such premium pay for any pay period for such 
employee to exceed the greater of--
            ``(1) the maximum rate of basic pay payable for GS-
        15 (including any applicable locality-based 
        comparability payment under section 5304 or similar 
        provision of law and any applicable special rate of pay 
        under section 5305 or similar provision of law); or
            ``(2) the rate payable for level V of the Executive 
        Schedule.
    ``(b)(1) Subject to regulations prescribed by the Office of 
Personnel Management, subsection (a) shall not apply to an 
employee who is paid premium pay by reason of work in 
connection with an emergency (including a wildfire emergency) 
that involves a direct threat to life or property, including 
work performed in the aftermath of such an emergency.
    ``(2) Notwithstanding paragraph (1), no employee referred 
to in such paragraph may be paid premium pay under the 
provisions of law cited in subsection (a) if, or to the extent 
that, the aggregate of the basic pay and premium pay under 
those provisions for such employee would, in any calendar year, 
exceed the greater of--
            ``(A) the maximum rate of basic pay payable for GS-
        15 in effect at the end of such calendar year 
        (including any applicable locality-based comparability 
        payment under section 5304 or similar provision of law 
        and any applicable special rate of pay under section 
        5305 or similar provision of law); or
            ``(B) the rate payable for level V of the Executive 
        Schedule in effect at the end of such calendar year.
    ``(3) Subject to regulations prescribed by the Office of 
Personnel Management, the head of an agency may determine that 
subsection (a) shall not apply to an employee who is paid 
premium pay to perform work that is critical to the mission of 
the agency. Such employees may be paid premium pay under the 
provisions of law cited in subsection (a) if, or to the extent 
that, the aggregate of the basic pay and premium pay under 
those provisions for such employee would not, in any calendar 
year, exceed the greater of--
            ``(A) the maximum rate of basic pay payable for GS-
        15 in effect at the end of such calendar year 
        (including any applicable locality-based comparability 
        payment under section 5304 or similar provision of law 
        and any applicable special rate of pay under section 
        5305 or similar provision of law); or
            ``(B) the rate payable for level V of the Executive 
        Schedule in effect at the end of such calendar year.
    ``(c) The Office of Personnel Management shall prescribe 
regulations governing the methods of applying subsection (b)(2) 
and (b)(3) to employees who receive premium pay under section 
5545(c) or 5545a, or to firefighters covered by section 5545b 
who receive overtime pay for hours in their regular tour of 
duty, and the method of payment to such employees. Such 
regulations may limit the payment of such premium pay on a 
biweekly basis.
    ``(d) This section shall not apply to any employee of the 
Federal Aviation Administration or the Department of Defense 
who is paid premium pay under section 5546a.''.
    (b) Conforming Amendment.--Section 118 of the Treasury and 
General Government Appropriations Act, 2001 (as enacted into 
law by section 1(3) of Public Law 106-554; 114 Stat. 2763A-134) 
is amended by striking ``limitation on the rate of pay payable 
during a pay period contained in section 5547(c)(2)'' and 
inserting ``restrictions contained in section 5547''.
    (c) Effective Date.--The amendments made by subsections (a) 
and (b) shall take effect on the first day of the first pay 
period beginning on or after the date that is 120 days 
following the date of enactment of this Act.

SEC. 1115. PARTICIPATION OF PERSONNEL IN TECHNICAL STANDARDS 
                    DEVELOPMENT ACTIVITIES.

    Subsection (d) of section 12 of the National Technology 
Transfer and Advancement Act of 1995 (Pub. Law 104-113; 15 
U.S.C. 272 note) is amended--
            (1) by redesignating paragraph (4) as paragraph 
        (5); and
            (2) by inserting after paragraph (3) the following 
        new paragraph (4):
            ``(4) Expenses of government personnel.--Section 
        5946 of title 5, United States Code, shall not apply 
        with respect to any activity of an employee of a 
        Federal agency or department that is determined by the 
        head of that agency or department as being an activity 
        undertaken in carrying out this subsection.''.

SEC. 1116. RETENTION OF TRAVEL PROMOTIONAL ITEMS.

    (a) Definition.--In this section, the term ``agency'' has 
the meaning given that term under section 5701 of title 5, 
United States Code.
    (b) Retention of Travel Promotional Items.--To the extent 
provided under subsection (c), a Federal employee, member of 
the Foreign Service, member of a uniformed service, any family 
member or dependent of such an employee or member, or other 
individual who receives a promotional item (including frequent 
flyer miles, upgrade, or access to carrier clubs or facilities) 
as a result of using travel or transportation services obtained 
at Federal Government expense or accepted under section 1353 of 
title 31, United States Code, may retain the promotional item 
for personal use if the promotional item is obtained under the 
same terms as those offered to the general public and at no 
additional cost to the Federal Government.
    (c) Limitation.--Subsection (b)--
            (1) applies only to travel that--
                    (A) is at the expense of an agency; or
                    (B) is accepted by an agency under section 
                1353 of title 31, United States Code; and
            (2) does not apply to travel by any officer, 
        employee, or other official of the Government who is 
        not in or under any agency.
    (d) Regulatory Authority.--Any agency with authority to 
prescribe regulations governing the acquisition, acceptance, 
use, or disposal of any travel or transportation services 
obtained at Government expense or accepted under section 1353 
of title 31, United States Code, may prescribe regulations to 
carry out subsection (b) with respect to those travel or 
transportation services.
    (e) Repeal of Superseded Law.--Section 6008 of the Federal 
Acquisition Streamlining Act of 1994 (5 U.S.C. 5702 note; 
Public Law 103-355) is repealed.
    (f) Applicability.--This section shall apply with respect 
to promotional items received before, on, or after the date of 
enactment of this Act.

SEC. 1117. APPLICABILITY OF CERTAIN LAWS TO CERTAIN INDIVIDUALS 
                    ASSIGNED TO WORK IN THE FEDERAL GOVERNMENT.

    Section 3374(c)(2) of title 5, United States Code, is 
amended by inserting ``the Ethics in Government Act of 1978, 
section 27 of the Office of Federal Procurement Policy Act,'' 
after ``chapter 73 of this title,''.

              Subtitle C--Intelligence Civilian Personnel

SEC. 1121. AUTHORITY TO INCREASE MAXIMUM NUMBER OF POSITIONS IN THE 
                    DEFENSE INTELLIGENCE SENIOR EXECUTIVE SERVICE.

    Section 1606(a) of title 10, United States Code, is amended 
by striking ``517'' and inserting ``544''.

               Subtitle D--Matters Relating To Retirement

SEC. 1131. IMPROVED PORTABILITY OF RETIREMENT COVERAGE FOR EMPLOYEES 
                    MOVING BETWEEN CIVIL SERVICE EMPLOYMENT AND 
                    EMPLOYMENT BY NONAPPROPRIATED FUND 
                    INSTRUMENTALITIES.

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

SEC. 1132. FEDERAL EMPLOYMENT RETIREMENT CREDIT FOR NONAPPROPRIATED 
                    FUND INSTRUMENTALITY SERVICE.

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

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

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

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

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

SEC. 1133. MODIFICATION OF LIMITATIONS ON EXERCISE OF VOLUNTARY 
                    SEPARATION INCENTIVE PAY AUTHORITY AND VOLUNTARY 
                    EARLY RETIREMENT AUTHORITY.

    (a) In General.--Section 1153(b) of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-323) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``(1) Subject to paragraph 
                (2), the'' and inserting ``The'';
                    (B) by striking ``in each of fiscal years 
                2002 and 2003, not more than 4000 employees of 
                the Department of Defense are'' and inserting 
                ``in fiscal year 2002 not more than 2000 
                employees of the Department of Defense are, and 
                in fiscal year 2003 not more than 6000 
                employees of the Department of Defense are''; 
                and
                    (C) by redesignating subparagraphs (A) and 
                (B) as paragraphs (1) and (2), respectively; 
                and
            (2) by striking paragraph (2).
    (b) Construction.--The amendments made by subsection (a) 
may be superceded by another provision of law that takes effect 
after the date of the enactment of this Act, and before October 
1, 2003, establishing a uniform system of providing voluntary 
separation incentives (including a system for requiring 
approval of plans by the Office of Management and Budget) for 
employees of the Federal Government.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

       Subtitle A--Matters Related to Arms Control and Monitoring

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

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

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

                           Subtitle C--Reports

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

       Subtitle A--Matters Related to Arms Control and Monitoring

SEC. 1201. CLARIFICATION OF AUTHORITY TO FURNISH NUCLEAR TEST 
                    MONITORING EQUIPMENT TO FOREIGN GOVERNMENTS.

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

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

SEC. 1202. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE CENTER IN 
                    MOSCOW.

    (a) Limitation.--Not more than 50 percent of the funds made 
available to the Department of Defense for fiscal year 2002 for 
activities associated with the Joint Data Exchange Center in 
Moscow, Russia, may be obligated for any such activity until--
            (1) the United States and the Russian Federation 
        enter into a cost-sharing agreement as described in 
        subsection (d) of section 1231 of the Floyd D. Spence 
        National Defense Authorization Act for Fiscal Year 
        2001, as enacted into law by Public Law 106-398 (114 
        Stat. 1654A-329);
            (2) the United States and the Russian Federation 
        enter into an agreement or agreements exempting the 
        United States and any United States person from Russian 
        taxes, and from liability under Russian laws, with 
        respect to activities associated with the Joint Data 
        Exchange Center;
            (3) the Secretary of Defense submits to the 
        Committee on Armed Services of the Senate and the 
        Committee on Armed Services of the House of 
        Representatives a copy of each agreement referred to in 
        paragraphs (1) and (2); and
            (4) a period of 30 days has expired after the date 
        of the final submission under paragraph (3).
    (b) Joint Data Exchange Center.--For purposes of this 
section, the term ``Joint Data Exchange Center'' means the 
United States-Russian Federation joint center for the exchange 
of data to provide early warning of launches of ballistic 
missiles and for notification of such launches that is provided 
for in a joint United States-Russian Federation memorandum of 
agreement signed in Moscow in June 2000.

SEC. 1203. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND 
                    MONITOR IRAQI WEAPONS ACTIVITIES.

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

SEC. 1204. AUTHORITY FOR EMPLOYEES OF FEDERAL GOVERNMENT CONTRACTORS TO 
                    ACCOMPANY CHEMICAL WEAPONS INSPECTION TEAMS AT 
                    GOVERNMENT-OWNED FACILITIES.

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

SEC. 1205. PLAN FOR SECURING NUCLEAR WEAPONS, MATERIAL, AND EXPERTISE 
                    OF THE STATES OF THE FORMER SOVIET UNION.

    (a) Plan Required.--Not later than June 15, 2002, the 
President shall submit to Congress a plan, that has been 
developed in coordination with all relevant Federal agencies--
            (1) for cooperating with Russia on disposing, as 
        soon as practicable, of nuclear weapons and weapons-
        usable nuclear material in Russia that Russia does not 
        retain in its nuclear arsenals;
            (2) for assisting Russia in downsizing its nuclear 
        weapons research and production complex;
            (3) for cooperating with the other states of the 
        former Soviet Union on disposing, as soon as 
        practicable, of all nuclear weapons and weapons-usable 
        nuclear material in such states; and
            (4) for preventing the outflow from the states of 
        the former Soviet Union of scientific expertise that 
        could be used for developing nuclear weapons, other 
        weapons of mass destruction, and delivery systems for 
        such weapons.
    (b) Content of Plan.--The plan required by subsection (a) 
shall include the following:
            (1) Specific goals and measurable objectives for 
        programs that are designed to carry out the objectives 
        described in subsection (a).
            (2) Criteria for success for such programs, and a 
        strategy for eventual termination of United States 
        contributions to such programs and assumption of the 
        ongoing support of those programs by others.
            (3) A description of any administrative and 
        organizational changes necessary to improve the 
        coordination and effectiveness of such programs. In 
        particular, the plan shall include consideration of the 
        creation of an interagency committee that would have 
        primary responsibilities within the executive branch 
        for--
                    (A) monitoring United States 
                nonproliferation efforts in the states of the 
                former Soviet Union;
                    (B) coordinating the implementation of 
                United States policy with respect to such 
                efforts; and
                    (C) recommending to the President 
                integrated policies, budget options, and 
                private sector and international contributions 
                for such programs.
            (4) An estimate of the cost of carrying out such 
        programs.
    (c) Consultation.--In developing the plan required by 
subsection (a), the President--
            (1) is encouraged to consult with the relevant 
        states of the former Soviet Union regarding the 
        practicality of various options; and
            (2) shall consult with the majority and minority 
        leadership of the appropriate committees of Congress.

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

SEC. 1211. ACQUISITION OF LOGISTICAL SUPPORT FOR SECURITY FORCES.

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

SEC. 1212. EXTENSION OF AUTHORITY FOR INTERNATIONAL COOPERATIVE 
                    RESEARCH AND DEVELOPMENT PROJECTS.

    (a) Eligibility of Friendly Foreign Countries.--Section 
2350a of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``(a) 
                Authority To Engage in Cooperative R&D 
                Projects.--';
                    (B) by striking ``major allies of the 
                United States or NATO organizations'' and 
                inserting ``countries or organizations referred 
                to in paragraph (2)''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(2) The countries and organizations with which the 
Secretary may enter into a memorandum of agreement (or other 
formal agreement) under paragraph (1) are as follows:
            ``(A) The North Atlantic Treaty Organization.
            ``(B) A NATO organization.
            ``(C) A member nation of the North Atlantic Treaty 
        Organization.
            ``(D) A major non-NATO ally.
            ``(E) Any other friendly foreign country.'';
            (2) in subsection (b)(1)--
                    (A) by striking ``its major non-NATO 
                allies'' and inserting ``a country or 
                organization referred to in subsection 
                (a)(2)''; and
                    (B) by striking ``(NATO)'';
            (3) in subsection (d)--
                    (A) in paragraph (1), by striking ``the 
                major allies of the United States'' and 
                inserting ``countries and organizations 
                referred to in subsection (a)(2)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``major ally of the 
                        United States'' and inserting ``country 
                        or organization referred to in 
                        subsection (a)(2)''; and
                            (ii) by striking ``that ally's 
                        contribution'' and inserting ``the 
                        contribution of that country or 
                        organization'';
            (4) in subsection (e)(2)--
                    (A) in subparagraph (A), by striking ``one 
                or more of the major allies of the United 
                States'' and inserting ``any country or 
                organization referred to in subsection 
                (a)(2)'';
                    (B) in subparagraph (B), by striking 
                ``major allies of the United States or NATO 
                organizations'' and inserting ``countries and 
                organizations referred to in subsection 
                (a)(2)'';
                    (C) in subparagraph (C), by striking 
                ``major allies of the United States'' and 
                inserting ``countries and organizations 
                referred to in subsection (a)(2)''; and
                    (D) in subparagraph (D), by striking 
                ``major allies of the United States'' and 
                inserting ``countries and organizations 
                referred to in subsection (a)(2)'';
            (5) paragraphs (1)(A) and (4)(A) of subsection (g), 
        by striking ``major allies of the United States and 
        other friendly foreign countries'' and inserting 
        ``countries referred to in subsection (a)(2)'';
            (6) in subsection (h), by striking ``major allies 
        of the United States'' and inserting ``member nations 
        of the North Atlantic Treaty Organization, major non-
        NATO allies, and other friendly foreign countries''; 
        and
            (7) in subsection (i)--
                    (A) in paragraph (1), by striking ``major 
                allies of the United States or NATO 
                organizations'' and inserting ``countries and 
                organizations referred to in subsection 
                (a)(2)'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraphs (3) and (4) 
                as paragraphs (2) and (3), respectively.
    (b) Notice-and-Wait Requirement.--Subsection (a) of such 
section is further amended by adding at the end the following 
new paragraph:
    ``(3) If such a memorandum of understanding (or other 
formal agreement) is with a country referred to in subparagraph 
(E) of paragraph (2), such memorandum (or agreement) may go 
into effect only after the Secretary submits to the Committees 
on Armed Services and on Foreign Relations of the Senate and to 
the Committees on Armed Services and on International Relations 
of the House of Representatives a report with respect to the 
proposed memorandum (or agreement) and a period of 30 days has 
passed after the report has been submitted.''.
    (c) Delegation of Authority To Determine Eligibility of 
Projects.--Subsection (b)(2) of such section is amended by 
striking ``to the Deputy Secretary of Defense'' and all that 
follows through the period at the end and inserting ``to the 
Deputy Secretary of Defense and to one other official of the 
Department of Defense.''.
    (d) Revision of Requirement for Annual Report on Eligible 
Countries.--Subsection (f)(2) of such section is amended to 
read as follows:
    ``(2) Not later than January 1 of each year, the Secretary 
of Defense shall submit to the Committees on Armed Services and 
on Foreign Relations of the Senate and to the Committees on 
Armed Services and on International Relations of the House of 
Representatives a report specifying--
            ``(A) the countries that are eligible to 
        participate in a cooperative project agreement under 
        this section; and
            ``(B) the criteria used to determine the 
        eligibility of such countries.''.
    (e) Conforming Amendments.--(1) The heading of such section 
is amended to read as follows:

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

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

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

SEC. 1213. COOPERATIVE AGREEMENTS WITH FOREIGN COUNTRIES AND 
                    INTERNATIONAL ORGANIZATIONS FOR RECIPROCAL USE OF 
                    TEST FACILITIES.

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

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

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

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

SEC. 1214. SENSE OF CONGRESS ON ALLIED DEFENSE BURDENSHARING.

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

                          Subtitle C--Reports

SEC. 1221. REPORT ON SIGNIFICANT SALES AND TRANSFERS OF MILITARY 
                    HARDWARE, EXPERTISE, AND TECHNOLOGY TO THE PEOPLE'S 
                    REPUBLIC OF CHINA.

    Section 1202 of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 781; 10 U.S.C. 
113 note) is amended by adding at the end the following new 
subsection:
    ``(d) Report on Significant Sales and Transfers to China.--
(1) The report to be submitted under this section not later 
than March 1, 2002, shall include in a separate section a 
report describing any significant sale or transfer of military 
hardware, expertise, and technology to the People's Republic of 
China. The report shall set forth the history of such sales and 
transfers since 1995, forecast possible future sales and 
transfers, and address the implications of those sales and 
transfers for the security of the United States and its friends 
and allies in Asia.
    ``(2) The report shall include analysis and forecasts of 
the following matters related to military cooperation between 
selling states and the People's Republic of China:
            ``(A) The extent in each selling state of 
        government knowledge, cooperation, or condoning of 
        sales or transfers of military hardware, expertise, or 
        technology to the People's Republic of China.
            ``(B) An itemization of significant sales and 
        transfers of military hardware, expertise, or 
        technology from each selling state to the People's 
        Republic of China that have taken place since 1995, 
        with a particular focus on command, control, 
        communications, and intelligence systems.
            ``(C) Significant assistance by any selling state 
        to key research and development programs of China, 
        including programs for development of weapons of mass 
        destruction and delivery vehicles for such weapons, 
        programs for development of advanced conventional 
        weapons, and programs for development of unconventional 
        weapons.
            ``(D) The extent to which arms sales by any selling 
        state to the People's Republic of China are a source of 
        funds for military research and development or 
        procurement programs in the selling state.
    ``(3) The report under paragraph (1) shall include, with 
respect to each area of analysis and forecasts specified in 
paragraph (2)--
            ``(A) an assessment of the military effects of such 
        sales or transfers to entities in the People's Republic 
        of China;
            ``(B) an assessment of the ability of the People's 
        Liberation Army to assimilate such sales or transfers, 
        mass produce new equipment, or develop doctrine for 
        use; and
            ``(C) the potential threat of developments related 
        to such effects on the security interests of the United 
        States and its friends and allies in Asia.''.

SEC. 1222. REPEAL OF REQUIREMENT FOR REPORTING TO CONGRESS ON MILITARY 
                    DEPLOYMENTS TO HAITI.

    Section 1232(b) of the National Defense Authorization Act 
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 788; 50 
U.S.C. 1541 note) is repealed.

SEC. 1223. REPORT BY COMPTROLLER GENERAL ON PROVISION OF DEFENSE 
                    ARTICLES, SERVICES, AND MILITARY EDUCATION AND 
                    TRAINING TO FOREIGN COUNTRIES AND INTERNATIONAL 
                    ORGANIZATIONS.

    (a) Study.--The Comptroller General shall conduct a study 
of the following:
            (1) The benefits derived by each foreign country or 
        international organization from the receipt of defense 
        articles, defense services, or military education and 
        training provided after December 31, 1989, pursuant to 
        the drawdown of such articles, services, or education 
        and training from the stocks of the Department of 
        Defense under section 506, 516, or 552 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2318, 2321j, or 
        2348a) or any other provision of law.
            (2) Any benefits derived by the United States from 
        the provision of defense articles, defense services, 
        and military education and training described in 
        paragraph (1).
            (3) The effect on the readiness of the Armed Forces 
        as a result of the provision by the United States of 
        defense articles, defense services, and military 
        education and training described in paragraph (1).
            (4) The cost to the Department of Defense with 
        respect to the provision of defense articles, defense 
        services, and military education and training described 
        in paragraph (1).
    (b) Reports.--(1) Not later than April 15, 2002, the 
Comptroller General shall submit to Congress an interim report 
containing the results to that date of the study conducted 
under subsection (a).
    (2) Not later than August 1, 2002, the Comptroller General 
shall submit to Congress a final report containing the results 
of the study conducted under subsection (a).

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

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

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
                    FUNDS.

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

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $403,000,000 
authorized to be appropriated to the Department of Defense for 
fiscal year 2002 in section 301(23) for Cooperative Threat 
Reduction programs, not more than the following amounts may be 
obligated for the purposes specified:
            (1) For strategic offensive arms elimination in 
        Russia, $133,405,000.
            (2) For strategic nuclear arms elimination in 
        Ukraine, $51,500,000.
            (3) For nuclear weapons transportation security in 
        Russia, $9,500,000.
            (4) For nuclear weapons storage security in Russia, 
        $56,000,000.
            (5) For biological weapons proliferation prevention 
        activities in the former Soviet Union, $17,000,000.
            (6) For activities designated as Other Assessments/
        Administrative Support, $13,221,000.
            (7) For defense and military contacts, $18,650,000.
            (8) For chemical weapons destruction in Russia, 
        $50,000,000.
            (9) For weapons of mass destruction infrastructure 
        elimination activities in Kazakhstan, $6,000,000.
            (10) For weapons of mass destruction infrastructure 
        elimination activities in Ukraine, $6,024,000.
            (11) For activities to assist Russia in the 
        elimination of plutonium production reactors, 
        $41,700,000.
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2002 Cooperative Threat Reduction 
funds may be obligated or expended for a purpose other than a 
purpose listed in paragraphs (1) through (11) of subsection (a) 
until 30 days after the date that the Secretary of Defense 
submits to Congress a report on the purpose for which the funds 
will be obligated or expended and the amount of funds to be 
obligated or expended. Nothing in the preceding sentence shall 
be construed as authorizing the obligation or expenditure of 
fiscal year 2002 Cooperative Threat Reduction funds for a 
purpose for which the obligation or expenditure of such funds 
is specifically prohibited under this title or any other 
provision of law.
    (c) Limited Authority To Vary Individual Amounts.--(1) 
Subject to paragraphs (2) and (3), in any case in which the 
Secretary of Defense determines that it is necessary to do so 
in the national interest, the Secretary may obligate amounts 
appropriated for fiscal year 2002 for a purpose listed in any 
of the paragraphs in subsection (a) in excess of the amount 
specifically authorized for such purpose.
    (2) An obligation of funds for a purpose stated in any of 
the paragraphs in subsection (a) in excess of the specific 
amount authorized for such purpose may be made using the 
authority provided in paragraph (1) only after--
            (A) the Secretary submits to Congress notification 
        of the intent to do so together with a complete 
        discussion of the justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.
    (3) The Secretary may not, under the authority provided in 
paragraph (1), obligate amounts for the purposes stated in 
paragraph (6), (7), or (11) of subsection (a) in excess of 115 
percent of the amount specifically authorized for such 
purposes.
    (d) Modification of Authority To Vary Individual Amounts of 
FY 2001 Funds.--Section 1302(c)(3) of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-340) is 
amended by striking ``(4),''.

SEC. 1303. LIMITATION ON USE OF FUNDS UNTIL SUBMISSION OF REPORTS.

    Not more than 50 percent of fiscal year 2002 Cooperative 
Threat Reduction funds may be obligated or expended until 30 
days after the date of the submission of--
            (1) the report required to be submitted in fiscal 
        year 2001 under section 1308(a) of the Floyd D. Spence 
        National Defense Authorization Act for Fiscal Year 2001 
        (as enacted into law by Public Law 106-398; 114 Stat. 
        1654A-341); and
            (2) the multiyear plan required to be submitted for 
        fiscal year 2001 under section 1308(h) of such Act.

SEC. 1304. REQUIREMENT TO CONSIDER USE OF REVENUE GENERATED BY 
                    ACTIVITIES CARRIED OUT UNDER COOPERATIVE THREAT 
                    REDUCTION PROGRAMS.

    The Secretary of Defense shall consider the use of revenue 
generated by activities carried out under Cooperative Threat 
Reduction programs in negotiating and executing contracts with 
Russia to carry out such programs.

SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING OF FISSILE 
                    MATERIAL STORAGE FACILITY.

    (a) Prohibition.--No fiscal year 2002 Cooperative Threat 
Reduction funds and no funds authorized to be appropriated for 
Cooperative Threat Reduction programs for any prior fiscal year 
may be used for the construction of a second wing for a storage 
facility for Russian fissile material.
    (b) Conforming Amendment.--Section 1304 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-
341) is amended to read as follows:

``SEC. 1304. LIMITATION ON USE OF FUNDS FOR FISSILE MATERIAL STORAGE 
                    FACILITY.

    ``Out of funds authorized to be appropriated for 
Cooperative Threat Reduction programs for fiscal year 2001 or 
any other fiscal year, not more than $412,600,000 may be used 
for planning, design, or construction of the first wing for the 
storage facility for Russian fissile material referred to in 
section 1302(a)(5) other than planning, design, or construction 
to improve security at such first wing.''.

SEC. 1306. PROHIBITION AGAINST USE OF FUNDS FOR CERTAIN CONSTRUCTION 
                    ACTIVITIES.

    No fiscal year 2002 Cooperative Threat Reduction funds may 
be used for construction activities carried out under Russia's 
program to eliminate the production of weapons grade plutonium.

SEC. 1307. REPORTS ON ACTIVITIES AND ASSISTANCE UNDER COOPERATIVE 
                    THREAT REDUCTION PROGRAMS.

    Section 1308(c)(4) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-342) is amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by striking ``audits'' and all that 
                follows through ``conducted'' and inserting 
                ``means (including program management, audits, 
                examinations, and other means) used''; and
                    (B) by striking ``and that such assistance 
                is being used for its intended purpose'' and 
                inserting ``, that such assistance is being 
                used for its intended purpose, and that such 
                assistance is being used efficiently and 
                effectively'';
            (2) in subparagraph (C), by inserting ``and an 
        assessment of whether the assistance being provided is 
        being used effectively and efficiently'' before the 
        semicolon; and
            (3) in subparagraph (D), by striking ``audits, 
        examinations, and other''.

SEC. 1308. CHEMICAL WEAPONS DESTRUCTION.

    Section 1305 of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 794; 22 U.S.C. 
5952 note) is amended by inserting before the period at the end 
the following: ``until the Secretary of Defense submits to 
Congress a certification that there has been--
            ``(1) information provided by Russia, that the 
        United States assesses to be full and accurate, 
        regarding the size of the chemical weapons stockpile of 
        Russia;
            ``(2) a demonstrated annual commitment by Russia to 
        allocate at least $25,000,000 to chemical weapons 
        elimination;
            ``(3) development by Russia of a practical plan for 
        destroying its stockpile of nerve agents;
            ``(4) enactment of a law by Russia that provides 
        for the elimination of all nerve agents at a single 
        site;
            ``(5) an agreement by Russia to destroy or convert 
        its chemical weapons production facilities at Volgograd 
        and Novocheboksark; and
            ``(6) a demonstrated commitment from the 
        international community to fund and build 
        infrastructure needed to support and operate the 
        facility.''.

SEC. 1309. ADDITIONAL MATTER IN ANNUAL REPORT ON ACTIVITIES AND 
                    ASSISTANCE UNDER COOPERATIVE THREAT REDUCTION 
                    PROGRAMS.

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

                TITLE XIV--ARMED FORCES RETIREMENT HOME

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

SEC. 1401. AMENDMENT OF ARMED FORCES RETIREMENT HOME ACT OF 1991.

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

SEC. 1402. DEFINITIONS.

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

SEC. 1403. REVISION OF AUTHORITY ESTABLISHING THE ARMED FORCES 
                    RETIREMENT HOME.

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

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

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

SEC. 1404. CHIEF OPERATING OFFICER.

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

``SEC. 1515. CHIEF OPERATING OFFICER.

    ``(a) Appointment.--(1) The Secretary of Defense shall 
appoint the Chief Operating Officer of the Retirement Home.
    ``(2) The Chief Operating Officer shall serve at the 
pleasure of the Secretary of Defense.
    ``(3) The Secretary of Defense shall evaluate the 
performance of the Chief Operating Officer at least once each 
year.
    ``(b) Qualifications.--To qualify for appointment as the 
Chief Operating Officer, a person shall--
            ``(1) be a continuing care retirement community 
        professional;
            ``(2) have appropriate leadership and management 
        skills; and
            ``(3) have experience and expertise in the 
        operation and management of retirement homes and in the 
        provision of long-term medical care for older persons.
    ``(c) Responsibilities.--(1) The Chief Operating Officer 
shall be responsible to the Secretary of Defense for the 
overall direction, operation, and management of the Retirement 
Home and shall report to the Secretary on those matters.
    ``(2) The Chief Operating Officer shall supervise the 
operation and administration of the Armed Forces Retirement 
Home--Washington and the Armed Forces Retirement Home--
Gulfport, including the Local Boards of those facilities.
    ``(3) The Chief Operating Officer shall perform the 
following duties:
            ``(A) Issue, and ensure compliance with, 
        appropriate rules for the operation of the Retirement 
        Home.
            ``(B) Periodically visit, and inspect the operation 
        of, the facilities of the Retirement Home.
            ``(C) Periodically examine and audit the accounts 
        of the Retirement Home.
            ``(D) Establish any advisory body or bodies that 
        the Chief Operating Officer considers to be necessary.
    ``(d) Compensation.--(1) The Secretary of Defense may 
prescribe the pay of the Chief Operating Officer, except that 
the annual rate of basic pay, including locality pay, of the 
Chief Operating Officer may not exceed the annual rate of basic 
pay payable for level III of the Executive Schedule under 
section 5314 of title 5, United States Code.
    ``(2) In addition to basic pay and any locality pay 
prescribed for the Chief Operating Officer, the Secretary may 
award the Chief Operating Officer, not more than once each 
year, a bonus based on the performance of the Chief Operating 
Officer for the year. The Secretary shall prescribe the amount 
of any such bonus.
    ``(3) The total amount of the basic pay and bonus paid the 
Chief Operating Officer for a year under this section may not 
exceed the annual rate of basic pay payable for level I of the 
Executive Schedule under section 5312 of title 5, United States 
Code.
    ``(e) Administrative Staff.--(1) The Chief Operating 
Officer may, subject to the approval of the Secretary of 
Defense, appoint a staff to assist in the performance of the 
Chief Operating Officer's duties in the overall administration 
of the Retirement Home.
    ``(2) The Chief Operating Officer shall prescribe the rates 
of pay applicable to the members of the staff appointed under 
paragraph (1), except that--
            ``(A) a staff member who is a member of the Armed 
        Forces on active duty or who is a full-time officer or 
        employee of the United States may not receive 
        additional pay by reason of service on the 
        administrative staff; and
            ``(B) the limitations in section 5373 of title 5, 
        United States Code, relating to pay set by 
        administrative action, shall apply to the rates of pay 
        prescribed under this paragraph.
    ``(f) Acceptance of Gifts.--(1) The Chief Operating Officer 
may accept gifts of money, property, and facilities on behalf 
of the Retirement Home.
    ``(2) Monies received as gifts, or realized from the 
disposition of property and facilities received as gifts, shall 
be deposited in the Armed Forces Retirement Home Trust Fund.''.
    (b) Transfer of Authorities.--(1) The following provisions 
are amended by striking ``Retirement Home Board'' each place it 
appears and inserting ``Chief Operating Officer'':
            (A) Section 1512 (24 U.S.C. 412), relating to 
        eligibility and acceptance for residence in the Armed 
        Forces Retirement Home.
            (B) Section 1513(a) (24 U.S.C. 412(a)), relating to 
        services provided to residents of the Armed Forces 
        Retirement Home.
            (C) Section 1518(c) (24 U.S.C. 418(c)), relating to 
        inspection of the Armed Forces Retirement Home.
    (2) Section 1519(c) (24 U.S.C. 419(c)), relating to 
authority to invest funds in the Armed Forces Retirement Home 
Trust Fund, is amended by striking ``Director'' and inserting 
``Chief Operating Officer''.
    (3) Section 1521(a) (24 U.S.C. 421(a)), relating to payment 
of residents for services, is amended by striking ``Chairman of 
the Armed Forces Retirement Board'' and inserting ``Chief 
Operating Officer''.
    (4) Section 1522 (24 U.S.C. 422), relating to authority to 
accept certain uncompensated services, is amended--
            (A) in subsection (a)--
                    (i) by striking ``Chairman of the 
                Retirement Home Board or the Director of each 
                establishment'' and inserting ``Chief Operating 
                Officer or the Director of a facility''; and
                    (ii) by striking ``unless'' and all that 
                follows through ``Retirement Home Board'';
            (B) in subsection (b)(1)--
                    (i) by striking ``Chairman of the 
                Retirement Home Board or the Director of the 
                establishment'' and inserting ``Chief Operating 
                Officer or the Director of a facility''; and
                    (ii) by inserting ``offering the services'' 
                after ``notify the person'';
            (C) in subsection (b)(2), by striking ``Chairman'' 
        and inserting ``Chief Operating Officer'';
            (D) in subsection (c), by striking ``Chairman of 
        the Retirement Home Board or the Director of an 
        establishment'' and inserting ``Chief Operating Officer 
        or the Director of a facility''; and
            (E) in subsection (e)--
                    (i) by striking ``Chairman of the 
                Retirement Board or the Director of the 
                establishment'' in the first sentence and 
                inserting ``Chief Operating Officer or the 
                Director of a facility''; and
                    (ii) by striking ``Chairman'' in the second 
                sentence and inserting ``Chief Operating 
                Officer''.
    (5) Section 1523(b) (24 U.S.C. 423(b)), relating to 
preservation of historic buildings and grounds at the Armed 
Forces Retirement Home--Washington, is amended by striking 
``Chairman of the Retirement Home Board'' and inserting ``Chief 
Operating Officer''.

SEC. 1405. RESIDENTS OF RETIREMENT HOME.

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

``SEC. 1514. FEES PAID BY RESIDENTS.

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

SEC. 1406. LOCAL BOARDS OF TRUSTEES.

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

``SEC. 1516. LOCAL BOARDS OF TRUSTEES.

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

SEC. 1407. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE DIRECTORS, AND STAFF 
                    OF FACILITIES.

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

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

    ``(a) Appointment.--The Secretary of Defense shall appoint 
a Director, a Deputy Director, and an Associate Director for 
each facility of the Retirement Home.
    ``(b) Director.--The Director of a facility shall--
            ``(1) be a civilian with experience as a continuing 
        care retirement community professional or a member of 
        the Armed Forces serving on active duty in a grade 
        below brigadier general or, in the case of the Navy, 
        rear admiral (lower half);
            ``(2) have appropriate leadership and management 
        skills; and
            ``(3) be required to pursue a course of study to 
        receive certification as a retirement facilities 
        director by an appropriate civilian certifying 
        organization, if the Director is not so certified at 
        the time of appointment.
    ``(c) Duties of Director.--(1) The Director of a facility 
shall be responsible for the day-to-day operation of the 
facility, including the acceptance of applicants to be 
residents of that facility.
    ``(2) The Director of a facility shall keep accurate and 
complete records of the facility.
    ``(d) Deputy Director.--(1) The Deputy Director of a 
facility shall--
            ``(A) be a civilian with experience as a continuing 
        care retirement community professional or a member of 
        the Armed Forces serving on active duty in a grade 
        below colonel or, in the case of the Navy, captain; and
            ``(B) have appropriate leadership and management 
        skills.
    ``(2) The Deputy Director of a facility shall serve at the 
pleasure of the Secretary of Defense.
    ``(e) Duties of Deputy Director.--The Deputy Director of a 
facility shall, under the authority, direction, and control of 
the Director of the facility, perform such duties as the 
Director may assign.
    ``(f) Associate Director.--(1) The Associate Director of a 
facility shall--
            ``(A) be a member of the Armed Forces serving on 
        active duty in the grade of Sergeant Major, Master 
        Chief Petty Officer, or Chief Master Sergeant or a 
        member or former member retired in that grade; and
            ``(B) have appropriate leadership and management 
        skills.
    ``(2) The Associate Director of a facility shall serve at 
the pleasure of the Secretary of Defense.
    ``(g) Duties of Associate Director.--The Associate Director 
of a facility shall, under the authority, direction, and 
control of the Director and Deputy Director of the facility, 
serve as ombudsman for the residents and perform such other 
duties as the Director may assign.
    ``(h) Staff.--(1) The Director of a facility may, subject 
to the approval of the Chief Operating Officer, appoint and 
prescribe the pay of such principal staff as the Director 
considers appropriate to assist the Director in operating the 
facility.
    ``(2) The principal staff of a facility shall include 
persons with experience and expertise in the operation and 
management of retirement homes and in the provision of long-
term medical care for older persons.
    ``(i) Annual Evaluation of Directors.--(1) The Chief 
Operating Officer shall evaluate the performance of each of the 
Directors of the facilities of the Retirement Home each year.
    ``(2) The Chief Operating Officer shall submit to the 
Secretary of Defense any recommendations regarding a Director 
that the Chief Operating Officer determines appropriate taking 
into consideration the annual evaluation.''.

SEC. 1408. DISPOSITION OF EFFECTS OF DECEASED PERSONS AND UNCLAIMED 
                    PROPERTY.

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

SEC. 1409. TRANSITIONAL PROVISIONS.

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

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

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

``SEC. 1532. DIRECTORS OF FACILITIES.

    ``(a) Active Duty Officers.--During the three-year period 
beginning on the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2002, the Directors and 
Deputy Directors of the facilities shall be members of the 
Armed Forces serving on active duty, notwithstanding the 
authority in subsections (b) and (d) of section 1517 for the 
Directors and Deputy Directors to be civilians.
    ``(b) Temporary Continuation of Director of the Armed 
Forces Retirement Home--Washington.--The person serving as the 
Director of the Armed Forces Retirement Home--Washington on the 
day before the enactment of the National Defense Authorization 
Act for Fiscal Year 2002 may continue to serve as the Director 
of that facility until April 2, 2002.

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

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

SEC. 1410. CONFORMING AND CLERICAL AMENDMENTS AND REPEALS OF OBSOLETE 
                    PROVISIONS.

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

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

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

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

    (5) Section 1524 (24 U.S.C. 424), relating to conditional 
supervisory control of the Retirement Home Board, is repealed.
    (b) Repeal of Obsolete Provisions.--The following 
provisions are repealed:
            (1) Section 1512(f) (24 U.S.C. 412(f)), relating to 
        the applicability of certain eligibility requirements.
            (2) Section 1519(d) (24 U.S.C. 419(d)), relating to 
        transitional accounts in the Armed Forces Retirement 
        Home Trust Fund.
            (3) Part C, relating to effective date and 
        authorization of appropriations.
    (c) Addition of Table of Contents.--Section 1501 (24 U.S.C. 
401 note) is amended--
            (1) by inserting ``(a) Short Title.--'' before 
        ``This title''; and
            (2) by adding at the end the following new 
        subsection:
    ``(b) Table of Contents.--The table of contents for this 
title is as follows:

``Sec. 1501. Short title; table of contents.
``Sec. 1502. Definitions.

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

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

                    ``Part B--Transitional Provisions

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

          TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM

          Subtitle A--Increased Funding for Combating Terrorism

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

       Subtitle B--Policy Matters Relating to Combating Terrorism

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

         Subtitle A--Increased Funding for Combating Terrorism

SEC. 1501. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``ETR Supplemental Appropriations Act, 
        2001'' means the 2001 Emergency Supplemental 
        Appropriations Act for Recovery from and Response to 
        Terrorist Attacks on the United States (Public Law 107-
        38).
            (2) The term ``Emergency Supplemental 
        Appropriations Act, 2002'' means an Act (or a portion 
        of an Act) making available for obligation emergency 
        appropriations that were provided, subject to enactment 
        in a subsequent appropriation Act, in the ETR 
        Supplemental Appropriations Act, 2001.

SEC. 1502. AUTHORIZATION OF EMERGENCY APPROPRIATIONS FOR FISCAL YEAR 
                    2001 MADE BY PUBLIC LAW 107-38 AND ALLOCATED FOR 
                    NATIONAL DEFENSE FUNCTIONS.

    (a) Adjustment in Authorization Amounts.--(1) Subject to 
paragraph (2), amounts authorized to be appropriated for fiscal 
year 2001 in the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted into law by Public Law 
106-398) are hereby increased, with respect to any such 
authorized amount, by the amount (if any) by which 
appropriations pursuant to such authorization are increased by 
amounts appropriated in the ETR Supplemental Appropriations 
Act, 2001, and transferred by the President (before the date of 
the enactment of this Act) to the Department of Defense or the 
National Nuclear Security Administration and subsequently 
allocated to such appropriations.
    (2) Authorization amounts may not be increased under 
paragraph (1) in excess of amounts derived from allocation of 
the amounts specified in subsection (b), for the Department of 
Defense, and in subsection (c), for the National Nuclear 
Security Administration.
    (b) Department of Defense.--Amounts referred to in 
subsection (a)(2) for the Department of Defense are amounts for 
emergency expenses to respond to the terrorist attacks on the 
United States that occurred on September 11, 2001, allocated to 
the Department of Defense for fiscal year 2001 for the use of 
the Armed Forces and other activities and agencies of the 
Department of Defense, including the purposes stated in section 
1504, in the total amount of $13,741,000,000, as follows:
            (1) Increased situational awareness.--For Increased 
        Situational Awareness, $4,272,000,000.
            (2) Enhanced force protection.--For Enhanced Force 
        Protection, $1,509,000,000.
            (3) Improved command and control.--For Improved 
        Command and Control, $1,403,000,000.
            (4) Increased worldwide posture.--For Increased 
        Worldwide Posture, $3,603,000,000.
            (5) Offensive counterterrorism.--For Offensive 
        Counterterrorism, $1,459,000,000.
            (6) Initial crisis response.--For Initial Crisis 
        Response, $637,000,000.
            (7) Pentagon repair and upgrade.--For Pentagon 
        Repair and Upgrade Activities, $530,000,000.
            (8) Fuel costs.--For increased fuel costs, 
        $100,000,000.
            (9) Airport and border security.--For airport and 
        border security, $228,000,000.
    (c) NNSA.--The amount referred to in subsection (a)(2) for 
the National Nuclear Security Administration is the amount of 
$5,000,000 for emergency expenses to respond to the terrorist 
attacks on the United States that occurred on September 11, 
2001, allocated for fiscal year 2001 atomic energy defense 
activities of the National Nuclear Security Administration for 
weapons activities.
    (d) Treatment as Additional Authorizations.--The amounts 
authorized to be appropriated by this section are in addition 
to amounts otherwise authorized to be appropriated by the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 
2001 (as enacted into law by Public Law 106-398) or any other 
Act, for fiscal year 2001 for the use of the Armed Forces and 
other activities and agencies of the Department of Defense and 
for the use of the National Nuclear Security Administration.

SEC. 1503. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR 
                    FISCAL YEAR 2002.

    (a) Department of Defense.--For emergency expenses to 
respond to the September 11, 2001, terrorist attacks on the 
United States, funds are hereby authorized to be appropriated 
to the Defense Emergency Response Fund for fiscal year 2002 for 
the use of the Armed Forces and other activities and agencies 
of the Department of Defense, including the purposes stated in 
section 1504, in the total amount of $7,349,000,000, as 
follows:
            (1) Increased situational awareness.--For Increased 
        Situational Awareness, $1,735,000,000.
            (2) Enhanced force protection.--For Enhanced Force 
        Protection, $881,000,000.
            (3) Improved command and control.--For Improved 
        Command and Control, $219,000,000.
            (4) Increased worldwide posture.--For Increased 
        Worldwide Posture, $2,938,000,000.
            (5) Offensive counterterrorism.--For Offensive 
        Counterterrorism, $545,000,000.
            (6) Initial crisis response.--For Initial Crisis 
        Response, $106,000,000.
            (7) Pentagon repair and upgrade.--For Pentagon 
        Repair and Upgrade Activities, $925,000,000.
    (b) NNSA.--For emergency expenses to respond to the 
September 11, 2001, terrorist attacks on the United States and 
for other expenses to increase the security of the Nation's 
nuclear weapons complex, funds are hereby authorized to be 
appropriated for fiscal year 2002 for the atomic energy defense 
activities of the National Nuclear Security Administration in 
the amount of $106,000,000, to be available for weapons 
activities.
    (c) Department of Energy.--For emergency expenses to 
respond to the September 11, 2001, terrorist attacks on the 
United States, funds are hereby authorized to be appropriated 
for fiscal year 2002 to the Department of Energy in the total 
amount of $11,700,000, as follows:
            (1) For Defense Environmental Restoration and Waste 
        Management, $8,200,000.
            (2) For Other Defense Activities, $3,500,000.
    (d) Transfer of Defense Funds.--In order to carry out the 
specified purposes in subsection (a), the Secretary of Defense 
may transfer amounts authorized by subsection (a) from the 
Defense Emergency Response Fund to any other defense 
appropriations account, including the account ``Support for 
International Sporting Events, Defense'' and any military 
construction account as provided in section 1504.
    (e) Availability.--Amounts appropriated pursuant to 
authorizations in this section may remain available until 
expended, if so provided in appropriations Acts.
    (f) Source of Funds.--Amounts appropriated pursuant to 
authorizations in this section shall be derived from amounts 
provided, subject to subsequent appropriation, in the ETR 
Supplemental Appropriations Act, 2001.
    (g) Treatment as Additional Authorizations.--The amounts 
authorized to be appropriated by this section are in addition 
to amounts otherwise authorized to be appropriated, by the 
other provisions of this Act or by any other Act, for fiscal 
year 2001 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense and for the use of 
the National Nuclear Security Administration.

SEC. 1504. AUTHORIZATION OF USE OF FUNDS FOR MILITARY CONSTRUCTION 
                    PROJECTS.

    (a) Authority for Use of Funds.--Qualified emergency 
defense appropriations may be used to acquire real property and 
carry out military construction projects not otherwise 
authorized by law that the Secretary of Defense determines are 
necessary to respond to or protect against acts or threatened 
acts of terrorism or to respond to the terrorist attacks on the 
United States that occurred on September 11, 2001.
    (b) Project Authorization.--Any project with respect to 
which the Secretary makes a determination under subsection (a) 
and that is to be carried out using qualified emergency defense 
appropriations is hereby authorized for purposes of section 
2802 of title 10, United States Code.
    (c) Qualified Emergency Defense Appropriations.--For 
purposes of this subsection, the term ``qualified emergency 
defense appropriations'' means emergency appropriations 
available to the Department of Defense that are authorized by 
section 1502 or 1503.

SEC. 1505. TREATMENT OF TRANSFERRED AMOUNTS.

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

SEC. 1506. QUARTERLY REPORTS.

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

       Subtitle B--Policy Matters Relating to Combating Terrorism

SEC. 1511. STUDY AND REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE 
                    WITH RESPECT TO HOMELAND SECURITY.

    (a) Study Required.--The Secretary of Defense shall conduct 
a study on the appropriate role of the Department of Defense 
with respect to homeland security. The study shall identify and 
describe the policies, plans, and procedures of the Department 
of Defense for combating terrorism, including for the provision 
of support for the consequence management activities of other 
Federal, State, and local agencies. The study shall 
specifically identify the following:
            (1) The strategy, roles, and responsibilities of 
        the Department of Defense for combating terrorism.
            (2) How the Department of Defense will interact 
        with the Office of Homeland Security and how 
        intelligence sharing efforts of the Department of 
        Defense will be organized relative to other Federal 
        agencies and departments and State and local 
        governments.
            (3) The ability of the Department of Defense to 
        protect the United States from airborne threats, 
        including threats originating from within the borders 
        of the United States.
            (4) Improvements that could be made to enhance the 
        security of the people of the United States against 
        terrorist threats and recommended actions (including 
        legislative action) and programs to address and 
        overcome existing vulnerabilities.
            (5) The policies, plans, and procedures relating to 
        how the civilian official in the Department of Defense 
        responsible for combating terrorism and the Joint Task 
        Force Civil Support of the Joint Forces Command will 
        coordinate the performance of functions for combating 
        terrorism with--
                    (A) teams in the Department of Defense that 
                have responsibilities for responding to acts or 
                threats of terrorism, including--
                            (i) weapons of mass destruction 
                        civil support teams when operating as 
                        the National Guard under the command of 
                        the Governor of a State, the Governor 
                        of Puerto Rico, or the Commanding 
                        General of the District of Columbia 
                        National Guard;
                            (ii) weapons of mass destruction 
                        civil support teams when operating as 
                        the Army National Guard of the United 
                        States or the Air National Guard of the 
                        United States under the command of the 
                        President;
                            (iii) teams in the departments and 
                        agencies of the Federal Government 
                        other than the Department of Defense 
                        that have responsibilities for 
                        responding to acts or threats of 
                        terrorism;
                            (iv) organizations outside the 
                        Federal Government, including any 
                        State, local and private entities, that 
                        function as first responders to acts or 
                        threats of terrorism; and
                            (v) units and organizations of the 
                        Reserve Components of the Armed Forces 
                        that have missions relating to 
                        combating terrorism;
                    (B) the Director of Military Support of the 
                Department of the Army;
                    (C) any preparedness plans to combat 
                terrorism that are developed for installations 
                of the Department of Defense by the commanders 
                of the installations and the integration of 
                those plans with the plans of the teams and 
                organizations described in subparagraph (A);
                    (D) the policies, plans and procedures for 
                using and coordinating the integrated 
                vulnerability assessment teams of the Joint 
                Staff inside and outside the United States; and
                    (E) the missions of Fort Leonard Wood and 
                other installations for training units, weapons 
                of mass destruction civil support teams and 
                other teams, and individuals in combating 
                terrorism.
            (6) The appropriate number and missions of the 
        teams referred to in paragraph (5)(A)(i).
            (7) How the Department of Defense Weapons of Mass 
        Destruction Civil Support Teams should interact with 
        the Federal Bureau of Investigation and the Federal 
        Emergency Management Agency during crisis response and 
        consequence management situations.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to Congress a 
report including the findings of the study conducted under 
subsection (a).

SEC. 1512. COMBATING TERRORISM READINESS INITIATIVES FUND FOR COMBATANT 
                    COMMANDS.

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

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

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

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

SEC. 1513. CONVEYANCES OF EQUIPMENT AND RELATED MATERIALS LOANED TO 
                    STATE AND LOCAL GOVERNMENTS AS ASSISTANCE FOR 
                    EMERGENCY RESPONSE TO A USE OR THREATENED USE OF A 
                    WEAPON OF MASS DESTRUCTION.

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

SEC. 1514. TWO-YEAR EXTENSION OF ADVISORY PANEL TO ASSESS DOMESTIC 
                    RESPONSE CAPABILITIES FOR TERRORISM INVOLVING 
                    WEAPONS OF MASS DESTRUCTION.

    (a) Extension of Advisory Panel.--Section 1405 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 
1999 (50 U.S.C. 2301 note) is amended--
            (1) in subsection (h)(2), by striking ``2001'' and 
        inserting ``2003''; and
            (2) in subsection (l), by striking ``three years'' 
        and inserting ``five years''.
    (b) Pay and Expenses of Members.--(1) Subsection (k) of 
such section is amended to read as follows:
    ``(k) Compensation of Panel Members.--The provisions of 
paragraph (4) of section 591(c) of the Foreign Operations, 
Export Financing, and Related Programs Appropriations Act, 1999 
(as contained in section 101(d) of division A of the Omnibus 
Consolidated and Emergency Supplemental Appropriations Act, 
1999 (Public Law 105-277; 112 Stat. 2681-212)), shall apply to 
members of the panel in the same manner as to members of the 
National Commission on Terrorism under that paragraph.''.
    (2) The amendment made by paragraph (1) shall apply with 
respect to periods of service on the advisory panel under 
section 1405 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 on or after the date of 
the enactment of this Act.

                  TITLE XVI--UNIFORMED SERVICES VOTING

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

SEC. 1601. SENSE OF CONGRESS REGARDING THE IMPORTANCE OF VOTING.

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

SEC. 1602. VOTING ASSISTANCE PROGRAMS.

    (a) In General.--(1) Chapter 80 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

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

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

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

    (b) Initial Report.--The first report under section 
1566(c)(3) of title 10, United States Code, as added by 
subsection (a), shall be submitted not later than March 31, 
2003.

SEC. 1603. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

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

SEC. 1604. ELECTRONIC VOTING DEMONSTRATION PROJECT.

    (a) Establishment of Demonstration Project.--
            (1) In general.--Subject to paragraph (2), the 
        Secretary of Defense shall carry out a demonstration 
        project under which absent uniformed services voters 
        are permitted to cast ballots in the regularly 
        scheduled general election for Federal office for 
        November 2002 through an electronic voting system. The 
        project shall be carried out with participation of 
        sufficient numbers of absent uniformed services voters 
        so that the results are statistically relevant.
            (2) Authority to delay implementation.--If the 
        Secretary of Defense determines that the implementation 
        of the demonstration project under paragraph (1) with 
        respect to the regularly scheduled general election for 
        Federal office for November 2002 may adversely affect 
        the national security of the United States, the 
        Secretary may delay the implementation of such 
        demonstration project until the regularly scheduled 
        general election for Federal office for November 2004. 
        The Secretary shall notify the Committee on Armed 
        Services and the Committee on Rules and Administration 
        of the Senate and the Committee on Armed Services and 
        the Committee on House Administration of the House of 
        Representatives of any decision to delay implementation 
        of the demonstration project.
    (b) Coordination With State Election Officials.--The 
Secretary shall carry out the demonstration project under this 
section through cooperative agreements with State election 
officials of States that agree to participate in the project.
    (c) Report to Congress.--Not later than June 1 of the year 
following the year in which the demonstration project is 
conducted under this section, the Secretary of Defense shall 
submit to Congress a report analyzing the demonstration 
project. The Secretary shall include in the report any 
recommendations the Secretary considers appropriate for 
continuing the project on an expanded basis for absent 
uniformed services voters during the next regularly scheduled 
general election for Federal office.
    (d) Definitions.--In this section:
            (1) Absent uniformed services voter.--The term 
        ``absent uniformed services voter'' has the meaning 
        given that term in section 107(1) of the Uniformed and 
        Overseas Citizens Absentee Voting Act (42 U.S.C. 
        1973ff-6(1)).
            (2) State.--The term ``State'' includes the 
        District of Columbia, the Commonwealth of Puerto Rico, 
        Guam, the Virgin Islands, and American Samoa.

SEC. 1605. GOVERNORS' REPORTS ON IMPLEMENTATION OF RECOMMENDATIONS FOR 
                    CHANGES IN STATE LAW MADE UNDER FEDERAL VOTING 
                    ASSISTANCE PROGRAM.

    (a) Reports.--(1) Whenever a State receives a uniformed 
services voting assistance legislative recommendation from the 
Secretary of Defense, acting as the Presidential designee, the 
chief executive authority of that State shall, not later than 
90 days after receipt of that recommendation, provide a report 
on the status of implementation of that recommendation by that 
State.
    (2) If a legislative recommendation referred to in 
paragraph (1) has been implemented, in whole or in part, by a 
State, the report of the chief executive authority of that 
State under that paragraph with respect to that recommendation 
shall include a description of the changes made to State law to 
implement the recommendation. If the recommendation has not 
been implemented, the report shall include a statement of the 
status of the recommendation before the State legislature and a 
statement of any recommendation the chief executive officer has 
made or intends to make to the legislature with respect to that 
recommendation.
    (3) Any report under paragraph (1) shall be transmitted to 
the Secretary of Defense, acting as the Presidential designee. 
The Secretary shall transmit a copy of the response to each 
Member of Congress who represents that State.
    (b) Period of Applicability.--This section applies with 
respect to any uniformed services voting assistance legislative 
recommendation transmitted to a State by the Secretary of 
Defense, acting as the Presidential designee, during the three-
year period beginning on the date of the enactment of this Act.
    (c) Definitions.--In this section:
            (1) The term ``uniformed services voting assistance 
        legislative recommendation'' means a recommendation of 
        the Presidential designee for a modification in the 
        laws of a State for the purpose of improving the access 
        to the polls of absent uniformed services voters and 
        overseas voters.
            (2) The term ``Presidential designee'' means the 
        head of the executive department designated by the 
        President under section 101(a) of the Uniformed and 
        Overseas Citizens Absentee Voting Act (42 U.S.C. 
        1973ff(a)).
            (3) The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, Guam, the 
        Virgin Islands, and American Samoa.
            (4) The term ``Member of Congress'' includes a 
        Delegate or Resident Commissioner to the Congress.

SEC. 1606. SIMPLIFICATION OF VOTER REGISTRATION AND ABSENTEE BALLOT 
                    APPLICATION PROCEDURES FOR ABSENT UNIFORMED 
                    SERVICES AND OVERSEAS VOTERS.

    (a) Requirement for States To Accept Official Form for 
Simultaneous Voter Registration and Absentee Ballot 
Application.--
            (1) In general.--Section 102 of the Uniformed and 
        Overseas Citizens Absentee Voting Act (42 U.S.C. 
        1973ff-1) is amended--
                    (A) in paragraph (2)--
                            (i) by striking ``general, special, 
                        primary, or runoff'';
                            (ii) by inserting ``and absentee 
                        ballot application'' after ``voter 
                        registration application'';
                            (iii) by striking ``and'' after the 
                        semicolon at the end;
                    (B) by striking the period at the end of 
                paragraph (3) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) use the official post card form (prescribed 
        under section 101) for simultaneous voter registration 
        application and absentee ballot application.''.
            (2) Conforming amendment.--Section 101(b)(2) of 
        such Act (42 U.S.C. 1973ff(b)(2)) is amended by 
        striking ``as recommended in section 104'' and 
        inserting ``as required under section 102(4)''.
    (b) Use of Single Application for All Subsequent 
Elections.--Section 104 of such Act (42 U.S.C. 1973ff-3) is 
amended to read as follows:

``SEC. 104. USE OF SINGLE APPLICATION FOR ALL SUBSEQUENT ELECTIONS.

    ``(a) In General.--If a State accepts and processes an 
official post card form (prescribed under section 101) 
submitted by an absent uniformed services voter or overseas 
voter for simultaneous voter registration and absentee ballot 
application (in accordance with section 102(a)(4)) and the 
voter requests that the application be considered an 
application for an absentee ballot for each subsequent election 
for Federal office held in the State during that year, the 
State shall provide an absentee ballot to the voter for each 
subsequent election for Federal office held in the State during 
that year.
    ``(b) Exception for Voters Changing Registration.--
Subsection (a) shall not apply with respect to a voter 
registered to vote in a State for any election held after the 
voter notifies the State that the voter no longer wishes to be 
registered to vote in the State or after the State determines 
that the voter has registered to vote in another State.
    ``(c) Revision of Official Post Card Form.--The 
Presidential designee shall revise the official post card form 
(prescribed under section 101) to enable a voter using the form 
to--
            ``(1) request an absentee ballot for each election 
        for Federal office held in a State during a year; or
            ``(2) request an absentee ballot for only the next 
        scheduled election for Federal office held in a State.
    ``(d) No Effect on Voter Removal Programs.--Nothing in this 
section may be construed to prevent a State from removing any 
voter from the rolls of registered voters in the State under 
any program or method permitted under section 8 of the National 
Voter Registration Act of 1993.''.

SEC. 1607. USE OF CERTAIN DEPARTMENT OF DEFENSE FACILITIES AS POLLING 
                    PLACES.

    (a) Use of Military Facilities.--Section 2670 of title 10, 
United States Code, is amended by adding at the end the 
following new subsection:
    ``(b) Use of Certain Facilities as Polling Places.--(1) 
Notwithstanding chapter 29 of title 18 (including sections 592 
and 593 of such title) or any other provision of law, the 
Secretary of Defense or Secretary of a military department may 
not (except as provided in paragraph (3)) prohibit the 
designation or use of a qualifying facility under the 
jurisdiction of the Secretary as an official polling place for 
local, State, or Federal elections.
    ``(2) A Department of Defense facility is a qualifying 
facility for purposes of this subsection if as of December 31, 
2000--
            ``(A) the facility is designated as an official 
        polling place by a State or local election official; or
            ``(B) the facility has been used as such an 
        official polling place since January 1, 1996.
    ``(3) The limitation in paragraph (1) may be waived by the 
Secretary of Defense or Secretary of the military department 
concerned with respect to a particular Department of Defense 
facility if the Secretary of Defense or Secretary concerned 
determines that local security conditions require prohibition 
of the designation or use of that facility as an official 
polling place for any election.''.
    (b) Conforming and Clerical Amendments.--(1) Such section 
is further amended--
            (A) by striking ``Under'' and inserting ``(a) Use 
        by Red Cross.--Under''; and
            (B) by striking ``this section'' and inserting 
        ``this subsection''.
    (2) The heading of such section is amended to read as 
follows:

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

    (3) The item relating to such section in the table of 
sections at the beginning of chapter 159 of such title is 
amended to read as follows:

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE; DEFINITION.

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

                            TITLE XXI--ARMY

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

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

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

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

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

                     Army: Outside the United States
------------------------------------------------------------------------
                                     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
Japan..........................  Camp Schab.............      $3,800,000
Korea..........................  Camp Carroll...........     $16,593,000
                                 Camp Casey.............      $8,500,000
                                 Camp Hovey.............     $35,750,000
                                 Camp Humphreys.........     $14,500,000
                                 Camp Jackson...........      $6,100,000
                                 Camp Stanley...........     $28,000,000
                                 Camp Yongsan...........     $12,800,000
Kwajalein......................  Kwajalein Atoll........     $11,000,000
                                                         ---------------
                                   Total:...............    $260,343,000
------------------------------------------------------------------------

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

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

SEC. 2102. FAMILY HOUSING.

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

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

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(6)(A), the Secretary of the Army may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
family housing units in an amount not to exceed $11,592,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2104(a)(6)(A), the Secretary of the 
Army may improve existing military family housing units in an 
amount not to exceed $220,750,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2001, for military construction, land acquisition, and military 
family housing functions of the Department of the Army in the 
total amount of $3,155,594,000, as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2101(a), 
        $1,127,750,000.
            (2) For military construction projects outside the 
        United States authorized by section 2101(b), 
        $260,343,000.
            (3) For a military construction project at an 
        unspecified worldwide location authorized by section 
        2101(c), $4,000,000.
            (4) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $18,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $159,533,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $312,742,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $1,089,573,000.
            (7) For the construction of a cadet development 
        center at the United States Military Academy, West 
        Point, New York, authorized by section 2101(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        1999 (division B of Public Law 105-261; 112 Stat. 
        2182), $37,900,000.
            (8) For the construction of phase 2C of a barracks 
        complex, Tagaytay Street, at Fort Bragg, North 
        Carolina, authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2000 
        (division B of Public Law 106-65; 113 Stat. 825), 
        $17,500,000.
            (9) For the construction of phase 1C of a barracks 
        complex, Wilson Street, at Schofield Barracks, Hawaii, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2000 
        (division B of Public Law 106-65; 113 Stat. 825), 
        $23,000,000.
            (10) For construction of phase 2 of a basic combat 
        training complex at Fort Leonard Wood, Missouri, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2001 
        (division B of the Spence Act; 114 Stat. 1654A-389), as 
        amended by section 2105 of this Act, $27,000,000.
            (11) For the construction of phase 2 of a battle 
        simulation center at Fort Drum, New York, authorized by 
        section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 2001 (division B of 
        the Spence Act; 114 Stat. 1654A-389), as amended by 
        section 2105 of this Act, $9,000,000.
            (12) For the construction of phase 1 of a barracks 
        complex, Butner Road, at Fort Bragg, North Carolina, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2001 
        (division B of the Spence Act; 114 Stat. 1654A-389), 
        $49,000,000.
            (13) For the construction of phase 1 of a barracks 
        complex, Longstreet Road, at Fort Bragg, North 
        Carolina, authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2001 
        (division B of the Spence Act; 114 Stat. 1654A-389), 
        $27,000,000.
            (14) For the construction of a multipurpose digital 
        training range at Fort Hood, Texas, authorized by 
        section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 2001 (division B of 
        the Spence Act; 114 Stat. 1654A-389), as amended by 
        section 2105 of this Act, $13,000,000.
            (15) For the homeowners assistance program, as 
        authorized by section 2832(a) of title 10, United 
        States Code, $10,119,000, to remain available until 
        expended.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2101 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1), (2), and (3) of subsection (a);
            (2) $52,000,000 (the balance of the amount 
        authorized under section 2201(a) for construction of a 
        barracks complex, D Street, at Fort Richardson, 
        Alaska);
            (3) $41,000,000 (the balance of the amount 
        authorized under section 2201 (a) for construction of 
        phase 1 of a barracks complex, Nelson Boulevard, at 
        Fort Carson, Colorado);
            (4) $36,000,000 (the balance of the amount 
        authorized under section 2201(a) for construction of 
        phase 1 of a basic combat training complex at Fort 
        Jackson, South Carolina); and
            (5) $102,000,000 (the balance of the amount 
        authorized under section 2201(a) for construction of a 
        barracks complex, 17th & B Streets, at Fort Lewis, 
        Washington).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (15) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $29,866,000, which 
represents the combination of savings resulting from 
adjustments to foreign currency exchange rates for military 
construction, military family housing construction, and 
military family housing support outside the United States and 
savings resulting from favorable bids, reduced overhead 
charges, and cancellations due to force structure changes.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2001 PROJECTS.

    (a) Modification.--The table in section 2101(a) of the 
Military Construction Authorization Act for Fiscal Year 2001 
(division B of the Spence Act; 114 Stat. 1654A-389) is 
amended--
            (1) in the item relating to Fort Leonard Wood, 
        Missouri, by striking ``$65,400,000'' in the amount 
        column and inserting ``$69,800,000'';
            (2) in the item relating to Fort Drum, New York, by 
        striking ``$18,000,000'' in the amount column and 
        inserting ``$21,000,000'';
            (3) in the item relating to Fort Hood, Texas, by 
        striking ``$36,492,000'' in the amount column and 
        inserting ``$39,492,000''; and
            (4) by striking the amount identified as the total 
        in the amount column and inserting ``$626,374,000''.
    (b) Conforming Amendments.--Section 2104 of that Act (114 
Stat. 1654A-391) is amended--
            (1) in subsection (a), in the matter preceding 
        paragraph (1), by striking ``$1,925,344,000'' and 
        inserting ``$1,935,744,000''; and
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking 
                ``$22,600,000'' and inserting ``$27,000,000'';
                    (B) in paragraph (3), by striking 
                ``$10,000,000'' and inserting ``$13,000,000''; 
                and
                    (C) in paragraph (6), by striking 
                ``$6,000,000'' and inserting ``$9,000,000''.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2000 PROJECTS.

    Section 2104 of the Military Construction Authorization Act 
for Fiscal Year 2000 (division B of Public Law 106-65; 113 
Stat. 826), as amended by section 2105(c) of the Spence Act; 
114 Stat. 1654A-393), is amended --
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), 
                by striking ``$2,358,331,000'' and inserting 
                ``$2,321,931,000''; and
                    (B) in paragraph (1), by striking 
                ``$930,058,000'' and inserting 
                ``$893,658,000''; and
            (2) in subsection (b)(7), by striking 
        ``$102,500,000'' and inserting ``$138,900,000''.

                            TITLE XXII--NAVY

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

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(1), the Secretary of the Navy may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:

                     Navy: Inside the United States
------------------------------------------------------------------------
                                     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,          $96,490,000
                                  Camp Pendleton.......
                                 Naval Air Facility, El      $23,520,000
                                  Centro...............
                                 Naval Air Station,          $10,010,000
                                  Lemoore..............
                                 Naval Air Warfare           $30,200,000
                                  Center, China Lake...
                                 Naval Air Warfare           $13,730,000
                                  Center, Point Mugu,
                                  San Nicholas Island..
                                 Naval Amphibious Base,       $8,610,000
                                  Coronado.............
                                 Naval Construction          $12,400,000
                                  Battalion Center,
                                  Port Hueneme.........
                                 Naval Construction           $3,780,000
                                  Training Center, Port
                                  Hueneme..............
                                 Naval Station, San          $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,           $2,140,000
                                  Whiting Field, Milton
                                 Naval Station, Mayport      $16,420,000
                                 Naval Station,               $3,700,000
                                  Pensacola.
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       $14,930,000
                                  Center, Crane........
Maine..........................  Naval Air Station,          $67,395,000
                                  Brunswick.
                                 Naval Shipyard,             $14,620,000
                                  Portsmouth...........
Maryland.......................  Naval Air Warfare            $2,260,000
                                  Center, Patuxent
                                  River................
                                 Naval Air Warfare            $5,100,000
                                  Center, St. Inigoes..
                                 Naval Explosive              $1,250,000
                                  Ordinance Disposal
                                  Technology Center,
                                  Indian Head..........
Mississippi....................  Naval Air Station,           $3,370,000
                                  Meridian.
                                 Naval Construction          $21,660,000
                                  Battalion Center,
                                  Gulfport.............
                                 Naval Station,               $4,680,000
                                  Pascaguola...........
Missouri.......................  Marine Corps Support         $9,010,000
                                  Activity, Kansas City
Nevada.........................  Naval Air Station,           $6,150,000
                                  Fallon...............
New Jersey.....................  Naval Weapons Station,       $4,370,000
                                  Earle................
North Carolina.................  Marine Corps Air             $4,050,000
                                  Station, New River...
                                 Marine Corps Base,          $67,070,000
                                  Camp Lejeune.........
Pennsylvania...................  Naval Foundry and           $14,800,000
                                  Propeller Center,
                                  Philadelphia.........
Rhode Island...................  Naval Station, Newport      $15,290,000
                                 Naval Underwater             $9,370,000
                                  Warfare Center,
                                  Newport..............
South Carolina.................  Marine Corps Air             $8,020,000
                                  Station, Beaufort....
                                 Marine Corps Recruit         $5,430,000
                                  Depot, Parris Island.
Tennessee......................  Naval Support                $3,900,000
                                  Activity, Millington.
Virginia.......................  Marine Corps Air             $3,790,000
                                  Facility, Quantico...
                                 Marine Corps Combat          $9,390,000
                                  Dev Com..............
                                 Naval Amphibious Base,       $9,090,000
                                  Little Creek.........
                                 Naval Station, Norfolk     $139,270,000
Washington.....................  Naval Air Station,           $7,370,000
                                  Whidbey Island.......
                                 Naval Station, Everett       $6,820,000
                                 Strategic Weapons            $3,900,000
                                  Facility, Bangor.....
                                                        ----------------
                                   Total:..............   $1,058,750,000
------------------------------------------------------------------------

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

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

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$6,499,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2204(a)(5)(A), the Secretary of the 
Navy may improve existing military family housing units in an 
amount not to exceed $203,434,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2001, for military construction, land acquisition, and military 
family housing functions of the Department of the Navy in the 
total amount of $2,366,742,000, as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2201(a), 
        $1,005,410,000.
            (2) For military construction projects outside the 
        United States authorized by section 2201(b), 
        $47,670,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $10,546,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $39,557,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $331,780,000.
                    (B) For support of military housing 
                (including functions described in section 2833 
                of title 10, United States Code), $910,095,000.
            (6) For construction of phase 6 of a large anachoic 
        chamber facility at the Patuxent River Naval Air 
        Warfare Center, Maryland, authorized by section 2201(a) 
        of the Military Construction Authorization Act for 
        Fiscal Year 1993 (division B of Public Law 102-484; 106 
        Stat. 2590), $10,770,000.
            (7) For construction of the Commander-in-Chief 
        Headquarters, Pacific Command, Camp H.M. Smith, Hawaii, 
        authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2000 
        (division B of Public Law 106-65; 113 Stat. 828), as 
        amended by section 2206 of this Act, $37,580,000.
            (8) For repair of a pier at Naval Station, San 
        Diego, California, authorized by section 2201(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        2001 (division B of the Spence Act; 114 Stat. 1654A-
        396), $17,500,000.
            (9) For replacement of a pier at Naval Station, 
        Bremerton, Washington, formerly Naval Shipyard, 
        Bremerton, Puget Sound, Washington, authorized by 
        section 2201(a) of the Military Construction 
        Authorization Act for Fiscal Year 2001 (division B of 
        the Spence Act; 114 Stat. 1654A-396), as amended by 
        section 2205 of this Act, $24,460,000.
            (10) For construction of an industrial skills 
        center at Puget Sound Naval Shipyard, Bremerton, 
        Washington, formerly Naval Shipyard, Bremerton, Puget 
        Sound, Washington, authorized by section 2201(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        2001 (division B of the Spence Act; 114 Stat. 1654A-
        396), as amended by section 2205 of this Act, 
        $14,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2201 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a);
            (2) $33,240,000 (the balance of the amount 
        authorized under section 2201(a) for replacement of a 
        pier, increment I, at Naval Station, Norfolk, 
        Virginia); and
            (3) $20,100,000 (the balance of the amount 
        authorized under section 2201(a) for a combined 
        propulsion and explosives lab at Naval Air Warfare 
        Center, China Lake, California).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (10) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $82,626,000, which 
represents the combination of savings resulting from 
adjustments to foreign currency exchange rates for military 
construction, military family housing construction, and 
military family housing support outside the United States and 
savings resulting from favorable bids, reduced overhead 
charges, and cancellations due to force structure changes.

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

    (a) Authorized Construction and Land Acquisition.--The 
table in section 2201(a) of the Military Construction 
Authorization Act for Fiscal Year 2001 (division B of the 
Spence Act; 114 Stat. 1654A-395) is amended--
            (1) in the item relating to Naval Shipyard, 
        Bremerton, Puget Sound, Washington, by striking 
        ``$100,740,000'' in the amount column and inserting 
        ``$102,460,000'';
            (2) in the item relating to Naval Station, 
        Bremerton, Washington, by striking ``$11,930,000'' in 
        the amount column and inserting ``$1,930,000''; and
            (3) by striking the amount identified as the total 
        in the amount column and inserting ``$803,217,000''.
    (b) Planning and Design.--Section 2204(a) of that Act (114 
Stat. 1654A-398) is amended--
            (1) in the matter preceding paragraph (1), by 
        striking ``$2,227,995,000'' and inserting 
        ``$2,208,407,000''; and
            (2) in paragraph (4), by striking ``$73,335,000'' 
        and inserting ``$53,747,000''.
    (c) Conforming Amendment.--Section 2204(b)(4) of that Act 
(114 Stat. 1654A-398) is amended by striking ``$10,280,000'' 
and inserting ``$14,000,000''.

SEC. 2206. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2000 PROJECT.

    (a) Modification.--The table in section 2201(a) of the 
Military Construction Authorization Act for Fiscal Year 2000 
(division B of Public Law 106-65; 113 Stat. 828) is amended--
            (1) in the item relating to Camp H.M. Smith, 
        Hawaii, by striking ``$86,050,000'' in the amount 
        column and inserting ``$89,050,000''; and
            (2) by striking the amount identified as the total 
        in the amount column and inserting ``$820,230,000''.
    (b) Conforming Amendment.--Section 2204(b)(3) of that Act 
(113 Stat. 831) is amended by striking ``$70,180,000'' and 
inserting ``$73,180,000''.

                         TITLE XXIII--AIR FORCE

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

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
                    PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(1), the Secretary of the Air Force may acquire real 
property and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:


                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     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     $23,500,000
                                  Base..................
                                 Luke Air Force Base....      $4,500,000
Arkansas.......................  Little Rock Air Force       $18,100,000
                                  Base..................
California.....................  Beale Air Force Base...      $7,900,000
                                 Edwards Air Force Base.     $16,300,000
                                 Los Angeles Air Force       $23,000,000
                                  Base.
                                 Travis Air Force Base..     $10,100,000
                                 Vandenberg Air Force        $11,800,000
                                  Base.
Colorado.......................  Buckley Air Force Base.     $23,200,000
                                 Schriever Air Force         $30,400,000
                                  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
                                 Tyndall Air Force Base.     $20,350,000
Georgia........................  Moody Air Force Base...      $8,600,000
                                 Robins Air Force Base..     $14,650,000
Idaho..........................  Mountain Home Air Force     $14,600,000
                                  Base..................
Kansas.........................  McConnell Air Force          $5,100,000
                                  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.
Nevada.........................  Nellis Air Force Base..     $31,600,000
New Jersey.....................  McGuire Air Force Base.     $36,550,000
New Mexico.....................  Cannon Air Force Base..      $9,400,000
                                 Kirtland Air Force Base     $19,800,000
North Carolina.................  Pope Air Force Base....     $17,800,000
North Dakota...................  Grand Forks Air Force        $7,800,000
                                  Base.
Ohio...........................  Wright-Patterson Air        $28,250,000
                                  Force Base............
Oklahoma.......................  Altus Air Force Base...     $20,200,000
                                 Tinker Air Force Base..     $21,400,000
South Carolina.................  Shaw Air Force Base....      $5,800,000
South Dakota...................  Ellsworth Air Force         $12,200,000
                                  Base.
Tennessee......................  Arnold Air Force Base..     $24,400,000
Texas..........................  Dyess Air Force Base...     $16,800,000
                                 Lackland Air Force Base     $12,800,000
                                 Laughlin Air Force Base     $15,600,000
                                 Sheppard Air Force Base     $45,200,000
Utah...........................  Hill Air Force Base....     $44,000,000
Virginia.......................  Langley Air Force Base.     $47,300,000
Washington.....................  Fairchild Air Force          $2,800,000
                                  Base.
                                 McChord Air Force Base.     $20,700,000
Wyoming........................  F. E. Warren Air Force      $10,200,000
                                  Base.
                                                         ---------------
                                   Total:...............    $891,270,000
------------------------------------------------------------------------

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

                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     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................      $8,000,000
Turkey.........................  Eskisehir..............      $4,000,000
                                 Incirlik...............      $5,500,000
United Kingdom.................  Royal Air Force,            $11,300,000
                                  Lakenheath.
                                 Royal Air Force,            $22,400,000
                                  Mildenhall.
Wake Island....................  Wake Island............     $25,000,000
                                                         ---------------
                                   Total:...............    $262,892,000
------------------------------------------------------------------------

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


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

SEC. 2302. FAMILY HOUSING.

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


                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
                 State                     Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona................................  Luke Air Force Base........  120 Units.................     $15,712,000
California.............................  Travis Air Force Base......  118 Units.................     $18,150,000
Colorado...............................  Buckley Air Force Base.....  55 Units..................     $11,400,000
Delaware...............................  Dov