--S.1438--

S.1438

Begun and held at the City of Washington on Wednesday,

the third day of January, two thousand and one

An Act

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

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

SECTION 1. SHORT TITLE.

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

(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.

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

Section 116 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2682) is repealed.

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'.

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'.

(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.

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

(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.

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

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. NAVAL SURFACE FIRE SUPPORT ASSESSMENT.

(a) ASSESSMENT REQUIRED- The Secretary of Defense shall carry out an assessment of the requirements for naval surface fire support of ground forces operating in the littoral environment, including the role of an advanced fire support missile system for Navy combatant vessels. The matters assessed shall include the Secretary of the Navy's program plan, schedule, and funding for meeting such requirements.

(b) REPORT- Not later than March 31, 2002, the Secretary of Defense shall submit to the congressional defense committees a report containing the results of the assessment required by subsection (a).

(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.

(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'.

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.

(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

(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.'.

(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.

(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.

(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'.

(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).

(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

(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.

(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.

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.

(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.

(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.

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

(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.

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.'.

(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.

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

(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.

(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.

(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.

(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).

(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

(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.'.

(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.'.

(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.'.

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.'.

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

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.'.

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.'.

(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'.

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

(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.

(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

(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)).

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).

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.'.

(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

(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.'.

(a) ADDITIONAL PHASE-IN AUTHORITY- Section 814 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-215) is amended--

(1) by redesignating subsections (c), (d), (e), and (f) as subsections (f), (g), (h), and (i), respectively; and

(2) by inserting after subsection (b) the following new subsections:

`(c) ADDITIONAL PHASE-IN AUTHORITY PENDING SECOND JOINT CERTIFICATION- (1)(A) Notwithstanding subsection (b)(3), the Secretary of the Navy may order additional work stations under the Navy-Marine Corps Intranet contract in excess of the number provided in the first increment of the contract under subsection (b)(2), but not to exceed an additional 100,000 work stations. The authority of the Secretary of the Navy to order additional work stations under this paragraph is subject to approval by both the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Chief Information Officer of the Department of Defense.

`(B) The Under Secretary of Defense for Acquisition, Technology, and Logistics and the Chief Information Officer of the Department of Defense may not grant approval to the Secretary of the Navy to order additional work stations under subparagraph (A) until a three-phase customer test and evaluation, observed by the Department of Defense, is completed for a statistically significant representative sample of the work stations operating on the Navy-Marine Corps Intranet. The test and evaluation shall include end user testing of day-to-day operations (including e-mail capability and performance), scenario-driven events, and scenario-based interoperability testing.

`(2)(A) Notwithstanding subsection (b)(3), the Secretary of the Navy may order additional work stations under the Navy-Marine Corps Intranet contract in excess of the number provided in the first increment of the contract under subsection (b)(2) and the number ordered under the authority of paragraph (1), but not to exceed an additional 150,000 work stations. The authority of the Secretary of the Navy to order additional work stations under this paragraph is also subject to approval by both the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Chief Information Officer of the Department of Defense.

`(B) The Under Secretary of Defense for Acquisition, Technology, and Logistics and the Chief Information Officer of the Department of Defense may not grant approval to the Secretary of the Navy to order additional work stations under subparagraph (A) until each of the following occurs:

`(i) There has been a full transition of not less than 20,000 work stations to the Navy-Marine Corps Intranet.

`(ii) The work stations referred to in clause (i) have met applicable service-level agreements specified in the Navy-Marine Corps Intranet contract, as determined by contractor performance measurement under oversight by the Department of the Navy.

`(iii) The Chief Information Officer of the Navy certifies to the Secretary of the Navy and the Chief Information Officer of the Department of Defense that the results of the performance evaluation referred to in clause (ii) are acceptable.

`(3) Of the work stations ordered under the authority provided by paragraph (2), not more than 50 percent may reach the major milestone known as `assumption of responsibility' until each of the following occurs:

`(A) All work stations for the headquarters of the Naval Air Systems Command have met applicable service-level agreements specified in the Navy-Marine Corps Intranet contract, as determined by contractor performance measurement under oversight by the Department of the Navy.

`(B) The Chief Information Officer of the Navy certifies to the Secretary of the Navy and the Chief Information Officer of the Department of Defense that the results of the performance evaluation referred to in subparagraph (B) are acceptable.

`(4) For the purposes of this section, when the information infrastructure and systems of a user of a work station are transferred into Navy-Marine Corps Intranet infrastructure and systems under the Navy-Marine Corps Intranet contract consistent with the applicable service-level agreements specified in the Navy-Marine Corps Intranet contract, the work station shall be considered as having been provided for the Navy-Marine Corps Intranet.

`(d) REPORTING AND REVIEW REQUIREMENTS- (1) If work stations are ordered using the authority provided by paragraph (1) or (2) of subsection (c), the Secretary of the Navy shall submit to Congress a report, current as of the date the determination is made to order the work stations, on the following:

`(A) The number of work stations operating on the Navy-Marine Corps Intranet, including the number of work stations regarding which assumption of responsibility has occurred.

`(B) The status of testing and implementation of the Navy-Marine Corps Intranet program.

`(C) The number of work stations to be ordered under paragraph (1) or (2) of subsection (c), whichever applies.

`(2) A report containing the information required by paragraph (1) shall also be submitted to Congress when the requirements of paragraph (3) of subsection (c) are satisfied and additional work stations under the Navy-Marine Corps Intranet contract are authorized to reach assumption of responsibility.

`(3) The Comptroller General shall conduct a review of the impact that participation in the Navy-Marine Corps Intranet program has on information technology costs of working capital funded industrial facilities of the Department of the Navy and submit the results of the review to Congress.'.

(b) NAVY-MARINE CORPS INTRANET MANAGER- Such section is further amended by inserting after subsection (d), as added by subsection (a)(2) of this section, the following new subsection:

`(e) ASSIGNMENT OF NAVY-MARINE CORPS INTRANET MANAGER- The Secretary of the Navy shall assign an employee of the Department of the Navy to the Navy-Marine Corps Intranet program whose sole responsibility will be to oversee and direct the program. The employee so assigned may not also be the program executive officer.'.

(c) DEFINITIONS- Subsection (i) of such section, as redesignated by subsection (a)(1) of this section, is amended--

(1) by striking `NAVY-MARINE CORPS INTRANET CONTRACT DEFINED- ' and inserting `DEFINITIONS- (1)'; and

(2) by adding at the end the following new paragraph:

`(2) In this section, the term `assumption of responsibility', with respect to a work station, means the point at which the contractor team under the Navy-Marine Corps Intranet contract assumes operational control of, and responsibility for, the existing information infrastructure and systems of a work station, in order to prepare for ultimate transition of the work station to the Navy-Marine Corps Intranet.'.

(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.

(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'.

(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.

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.

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'.

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.

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.

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.

(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.

(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:

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`Total number of members of a reserve component serving on full-time reserve component duty: Number of officers of that reserve component who may be serving in the grade of:                            

                                                                                                                                                                        Major Lieutenant Colonel Colonel 

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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 

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 

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 

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 

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. 

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`(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:

----------------------------------------------------------------------------------------------------------------------------------------------------------------

`Total number of members of Naval Reserve serving on full-time reserve component duty: Number of officers who may be serving in the grade of:                   

                                                                                                                         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:

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`Total number of members of a reserve component serving on full-time reserve component duty: Number of members of that reserve component who may be serving in the grade of:      

                                                                                                                                                                         E-8  E-9 

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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 

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 

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 

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 

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 

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.'.

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

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

(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.

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.

(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)'.

(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.

(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).

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.'.

(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.'.

(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.

(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

(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).

(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.

(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'.

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.'.

(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.

(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'.

(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.

(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.

(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

(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.'.

(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.

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)'.

(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).

(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.

(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.

(a) CONTINUATION OF CONCEPT VALIDATION TEST- During fiscal year 2002, the Secretary of Defense shall continue the concept validation test of Reserve component joint professional military education that was begun in fiscal year 2001 at the National Defense University.

(b) PILOT PROGRAM- If the Secretary of Defense determines that the results of the concept validation test referred to in subsection (a) warrant conducting a pilot program of the concept that was the subject of the test, the Secretary shall conduct such a pilot program during fiscal year 2003.

(c) FUNDING- The Secretary shall provide funds for the concept validation test under subsection (a) and for any pilot program under subsection (b) from funds appropriated to the Secretary of Defense in addition to those appropriated for operations of the National Defense University.

Subtitle D--Military Education and Training

(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.'.

(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.

(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.

(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.

(a) ELIGIBILITY- Section 2104(b)(3) of title 10, United States Code, is amended by striking `a reserve component of'.

(b) PAY RATE WHILE ON FIELD TRAINING OR PRACTICE CRUISE- Section 209(c) of title 37, United States Code, is amended by inserting before the period at the end the following: `, except that the rate for a cadet or midshipman who is a member of the regular component of an armed force shall be the rate of basic pay applicable to the member under section 203 of this title'.

(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'.

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

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'.

(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)'.

(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.

(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.

(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'.

(a) ACCESS TO SECONDARY SCHOOLS- Paragraph (1) of section 503(c) of title 10, United States Code, is amended to read as follows:

`(c) ACCESS TO SECONDARY SCHOOLS- (1)(A) Each local educational agency receiving assistance under the Elementary and Secondary Education Act of 1965--

`(i) shall provide to military recruiters the same access to secondary school students as is provided generally to postsecondary educational institutions or to prospective employers of those students; and

`(ii) shall, upon a request made by military recruiters for military recruiting purposes, provide access to secondary school student names, addresses, and telephone listings, notwithstanding section 444(a)(5)(B) of the General Education Provisions Act (20 U.S.C. 1232g(a)(5)(B)).

`(B) A local educational agency may not release a student's name, address, and telephone listing under subparagraph (A)(ii) without the prior written consent of a parent of the student if the student, or a parent of the student, has submitted a request to the local educational agency that the student's information not be released for a purpose covered by that subparagraph without prior written parental consent. Each local education agency shall notify parents of the rights provided under the preceding sentence.'.

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on July 1, 2002, immediately after the amendment to section 503(c) of title 10, United States Code, made, effective that date, by section 563(a) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-131).

(c) NOTIFICATION- The Secretary of Education shall provide to local educational agencies notice of the provisions of subsection (c) of section 503 of title 10, United States Code, as in effect upon the amendments made by subsection (a). Such notice shall be provided not later than 120 days after the date of the enactment of this Act and shall be provided in consultation with the Secretary of Defense.

(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'.

(a) STUDY- The Secretary of Defense shall conduct a review of the health and disability benefit programs available to recruits and officer candidates engaged in training, education, or other types of programs while not yet on active duty and to cadets and midshipmen attending the service academies. The review shall be conducted with the participation of the Secretaries of the military departments.

(b) REPORT- Not later than March 1, 2002, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the findings of the review. The report shall include the following with respect to persons described in subsection (a):

(1) A statement of the process and detailed procedures followed by each of the Armed Forces under the jurisdiction of the Secretary of a military department to provide health care and disability benefits to all such persons injured in training, education, or other types of programs conducted by the Secretary of a military department.

(2) Information on the total number of cases of such persons requiring health care and disability benefits and the total number of cases and average value of health care and disability benefits provided under the authority for each source of benefits available to those persons.

(3) A discussion of the issues regarding health and disability benefits for such persons that are encountered by the Secretary during the review, to include discussions with individuals who have received those benefits.

(4) A statement of the processes and detailed procedures followed by each of the Armed Forces under the jurisdiction of the Secretary of a military department to provide recruits and officer candidates with succinct information on the eligibility requirements (including information on when they become eligible) for health care benefits under the Defense health care program, and the nature and availability of the benefits under the program.

(5) A discussion of the necessity for legislative changes and specific legislative proposals needed to improve the benefits provided those persons.

(6) An analysis of health and disability benefits under laws administered by the Department of Veterans Affairs and the Department of Labor for which those persons become eligible upon being injured in training or education and a discussion of how those benefits compare to the benefits those persons would receive if retired for physical disability by the Department of Defense.

Subtitle F--Decorations, Awards, and Posthumous Commissions

(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.

(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.

(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.'.

(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).

(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.

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.

(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.

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

(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.'.

(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.

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),'.

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

(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.'.

(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.'.

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.'.

(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.'.

(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

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.'.

(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.

(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

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.'.

(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.'.

(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.

(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.

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.

(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.

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.

(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

(a) WAIVER OF SECTION 1009 ADJUSTMENT- The adjustment to become effective during fiscal year 2002 required by section 1009 of title 37, United States Code, in the rates of monthly basic pay authorized members of the uniformed services shall not be made.

(b) INCREASE IN BASIC PAY- Effective on January 1, 2002, the rates of monthly basic pay for members of the uniformed services within each pay grade are as follows:

COMMISSIONED OFFICERS 1 

Years of service computed under section 205 of title 37, United States Code

----------------------------------------------------------------

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

----------------------------------------------------------------

O-10 2        $0.00      $0.00      $0.00      $0.00      $0.00 

O-9            0.00       0.00       0.00       0.00       0.00 

O-8        7,180.20   7,415.40   7,571.10   7,614.90   7,809.30 

O-7        5,966.40   6,371.70   6,371.70   6,418.20   6,657.90 

O-6        4,422.00   4,857.90   5,176.80   5,176.80   5,196.60 

O-5        3,537.00   4,152.60   4,440.30   4,494.30   4,673.10 

O-4        3,023.70   3,681.90   3,927.60   3,982.50   4,210.50 

O-3 3      2,796.60   3,170.40   3,421.80   3,698.70   3,875.70 

O-2 3      2,416.20   2,751.90   3,169.50   3,276.30   3,344.10 

O-1 3      2,097.60   2,183.10   2,638.50   2,638.50   2,638.50 

             Over 8    Over 10    Over 12    Over 14    Over 16 

O-10 2        $0.00      $0.00      $0.00      $0.00      $0.00 

O-9            0.00       0.00       0.00       0.00       0.00 

O-8        8,135.10   8,210.70   8,519.70   8,608.50   8,874.30 

O-7        6,840.30   7,051.20   7,261.80   7,472.70   8,135.10 

O-6        5,418.90   5,448.60   5,448.60   5,628.60   6,305.70 

O-5        4,673.10   4,813.50   5,073.30   5,413.50   5,755.80 

O-4        4,395.90   4,696.20   4,930.20   5,092.50   5,255.70 

O-3 3      4,070.10   4,232.40   4,441.20   4,549.50   4,549.50 

O-2 3      3,344.10   3,344.10   3,344.10   3,344.10   3,344.10 

O-1 3      2,638.50   2,638.50   2,638.50   2,638.50   2,638.50 

            Over 18    Over 20    Over 22    Over 24    Over 26 

O-10 2        $0.00 $11,601.90 $11,659.20 $11,901.30 $12,324.00 

O-9            0.00  10,147.50  10,293.60  10,504.80  10,873.80 

O-8        9,259.50   9,614.70   9,852.00   9,852.00   9,852.00 

O-7        8,694.90   8,694.90   8,694.90   8,694.90   8,738.70 

O-6        6,627.00   6,948.30   7,131.00   7,316.10   7,675.20 

O-5        5,919.00   6,079.80   6,262.80   6,262.80   6,262.80 

O-4        5,310.60   5,310.60   5,310.60   5,310.60   5,310.60 

O-3 3      4,549.50   4,549.50   4,549.50   4,549.50   4,549.50 

O-2 3      3,344.10   3,344.10   3,344.10   3,344.10   3,344.10 

O-1 3      2,638.50   2,638.50   2,638.50   2,638.50   2,638.50 

----------------------------------------------------------------

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER

Years of service computed under section 205 of title 37, United States Code

------------------------------------------------------------

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

------------------------------------------------------------

O-3E          $0.00     $0.00     $0.00 $3,698.70 $3,875.70 

O-2E           0.00      0.00      0.00  3,276.30  3,344.10 

O-1E           0.00      0.00      0.00  2,638.50  2,818.20 

             Over 8   Over 10   Over 12   Over 14   Over 16 

O-3E      $4,070.10 $4,232.40 $4,441.20 $4,617.00 $4,717.50 

O-2E       3,450.30  3,630.00  3,768.90  3,872.40  3,872.40 

O-1E       2,922.30  3,028.50  3,133.20  3,276.30  3,276.30 

            Over 18   Over 20   Over 22   Over 24   Over 26 

O-3E      $4,855.20 $4,855.20 $4,855.20 $4,855.20 $4,855.20 

O-2E       3,872.40  3,872.40  3,872.40  3,872.40  3,872.40 

O-1E       3,276.30  3,276.30  3,276.30  3,276.30  3,276.30 

------------------------------------------------------------

WARRANT OFFICERS 1 

Years of service computed under section 205 of title 37, United States Code

------------------------------------------------------------

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

------------------------------------------------------------

W-5           $0.00     $0.00     $0.00     $0.00     $0.00 

W-4        2,889.60  3,108.60  3,198.00  3,285.90  3,437.10 

W-3        2,638.80  2,862.00  2,862.00  2,898.90  3,017.40 

W-2        2,321.40  2,454.00  2,569.80  2,654.10  2,726.40 

W-1        2,049.90  2,217.60  2,330.10  2,402.70  2,511.90 

             Over 8   Over 10   Over 12   Over 14   Over 16 

W-5           $0.00     $0.00     $0.00     $0.00     $0.00 

W-4        3,586.50  3,737.70  3,885.30  4,038.00  4,184.40 

W-3        3,152.40  3,330.90  3,439.50  3,558.30  3,693.90 

W-2        2,875.20  2,984.40  3,093.90  3,200.40  3,318.00 

W-1        2,624.70  2,737.80  2,850.00  2,963.70  3,077.10 

            Over 18   Over 20   Over 22   Over 24   Over 26 

W-5           $0.00 $4,965.60 $5,136.00 $5,307.00 $5,478.60 

W-4        4,334.40  4,480.80  4,632.60  4,782.00  4,935.30 

W-3        3,828.60  3,963.60  4,098.30  4,233.30  4,368.90 

W-2        3,438.90  3,559.80  3,680.10  3,801.30  3,801.30 

W-1        3,189.90  3,275.10  3,275.10  3,275.10  3,275.10 

------------------------------------------------------------

ENLISTED MEMBERS 1 

Years of service computed under section 205 of title 37, United States Code

---------------------------------------------------------------

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

---------------------------------------------------------------

E-9 2            $0.00     $0.00     $0.00     $0.00     $0.00 

E-8               0.00      0.00      0.00      0.00      0.00 

E-7           1,986.90  2,169.00  2,251.50  2,332.50  2,417.40 

E-6           1,701.00  1,870.80  1,953.60  2,033.70  2,117.40 

E-5           1,561.50  1,665.30  1,745.70  1,828.50  1,912.80 

E-4           1,443.60  1,517.70  1,599.60  1,680.30  1,752.30 

E-3           1,303.50  1,385.40  1,468.50  1,468.50  1,468.50 

E-2           1,239.30  1,239.30  1,239.30  1,239.30  1,239.30 

E-1        3  1,105.50  1,105.50  1,105.50  1,105.50  1,105.50 

                Over 8   Over 10   Over 12   Over 14   Over 16 

E-9 2            $0.00 $3,423.90 $3,501.30 $3,599.40 $3,714.60 

E-8           2,858.10  2,940.60  3,017.70  3,110.10  3,210.30 

E-7           2,562.90  2,645.10  2,726.40  2,808.00  2,892.60 

E-6           2,254.50  2,337.30  2,417.40  2,499.30  2,558.10 

E-5           2,030.10  2,110.20  2,193.30  2,193.30  2,193.30 

E-4           1,752.30  1,752.30  1,752.30  1,752.30  1,752.30 

E-3           1,468.50  1,468.50  1,468.50  1,468.50  1,468.50 

E-2           1,239.30  1,239.30  1,239.30  1,239.30  1,239.30 

E-1           1,105.50  1,105.50  1,105.50  1,105.50  1,105.50 

               Over 18   Over 20   Over 22   Over 24   Over 26 

E-9 2        $3,830.40 $3,944.10 $4,098.30 $4,251.30 $4,467.00 

E-8           3,314.70  3,420.30  3,573.00  3,724.80  3,937.80 

E-7           2,975.10  3,057.30  3,200.40  3,292.80  3,526.80 

E-6           2,602.80  2,602.80  2,602.80  2,602.80  2,602.80 

E-5           2,193.30  2,193.30  2,193.30  2,193.30  2,193.30 

E-4           1,752.30  1,752.30  1,752.30  1,752.30  1,752.30 

E-3           1,468.50  1,468.50  1,468.50  1,468.50  1,468.50 

E-2           1,239.30  1,239.30  1,239.30  1,239.30  1,239.30 

E-1           1,105.50  1,105.50  1,105.50  1,105.50  1,105.50 

---------------------------------------------------------------

(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.

(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'.

(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.

(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

(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'.

(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'.

(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'.

(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'.

(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.

(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'.

(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).

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'.

(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.

(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.

(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.'.

(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).

(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.

(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

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.'.

(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.

(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.

(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.

(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.

(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.

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'.

(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.

(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

(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.

(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

(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.

(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.

(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.'.

(a) AUTHORITY TO TRANSFER TO FAMILY MEMBERS- (1) Subchapter II of chapter 30 of title 38, United States Code, is amended by adding at the end the following new section:

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

`(a) IN GENERAL- Subject to the provisions of this section, each Secretary concerned may, for the purpose of enhancing recruitment and retention of members of the Armed Forces with critical military skills and at such Secretary's sole discretion, permit an individual described in subsection (b) who is entitled to basic educational assistance under this subchapter to elect to transfer to one or more of the dependents specified in subsection (c) a portion of such individual's entitlement to such assistance, subject to the limitation under subsection (d).

`(b) ELIGIBLE INDIVIDUALS- An individual referred to in subsection (a) is any member of the Armed Forces who, at the time of the approval by the Secretary concerned of the member's request to transfer entitlement to basic educational assistance under this section--

`(1) has completed six years of service in the Armed Forces;

`(2) either--

`(A) has a critical military skill designated by the Secretary concerned for purposes of this section; or

`(B) is in a military specialty designated by the Secretary concerned for purposes of this section as requiring critical military skills; and

`(3) enters into an agreement to serve at least four more years as a member of the Armed Forces.

`(c) ELIGIBLE DEPENDENTS- An individual approved to transfer an entitlement to basic educational assistance under this section may transfer the individual's entitlement as follows:

`(1) To the individual's spouse.

`(2) To one or more of the individual's children.

`(3) To a combination of the individuals referred to in paragraphs (1) and (2).

`(d) LIMITATION ON MONTHS OF TRANSFER- The total number of months of entitlement transferred by an individual under this section may not exceed 18 months.

`(e) DESIGNATION OF TRANSFEREE- An individual transferring an entitlement to basic educational assistance under this section shall--

`(1) designate the dependent or dependents to whom such entitlement is being transferred;

`(2) designate the number of months of such entitlement to be transferred to each such dependent; and

`(3) specify the period for which the transfer shall be effective for each dependent designated under paragraph (1).

`(f) TIME FOR TRANSFER; REVOCATION AND MODIFICATION- (1) Subject to the time limitation for use of entitlement under section 3031 of this title, an individual approved to transfer entitlement to basic educational assistance under this section may transfer such entitlement at any time after the approval of the individual's request to transfer such entitlement without regard to whether the individual is a member of the Armed Forces when the transfer is executed.

`(2)(A) An individual transferring entitlement under this section may modify or revoke at any time the transfer of any unused portion of the entitlement so transferred.

`(B) The modification or revocation of the transfer of entitlement under this paragraph shall be made by the submittal of written notice of the action to both the Secretary concerned and the Secretary of Veterans Affairs.

`(g) COMMENCEMENT OF USE- A dependent to whom entitlement to basic educational assistance is transferred under this section may not commence the use of the transferred entitlement until--

`(1) in the case of entitlement transferred to a spouse, the completion by the individual making the transfer of six years of service in the Armed Forces; or

`(2) in the case of entitlement transferred to a child, both--

`(A) the completion by the individual making the transfer of 10 years of service in the Armed Forces; and

`(B) either--

`(i) the completion by the child of the requirements of a secondary school diploma (or equivalency certificate); or

`(ii) the attainment by the child of 18 years of age.

`(h) ADDITIONAL ADMINISTRATIVE MATTERS- (1) The use of any entitlement to basic educational assistance transferred under this section shall be charged against the entitlement of the individual making the transfer at the rate of one month for each month of transferred entitlement that is used.

`(2) Except as provided under subsection (e)(2) and subject to paragraphs (4) and (5), a dependent to whom entitlement is transferred under this section is entitled to basic educational assistance under this subchapter in the same manner and at the same rate as the individual from whom the entitlement was transferred.

`(3) The death of an individual transferring an entitlement under this section shall not affect the use of the entitlement by the dependent to whom the entitlement is transferred.

`(4) Notwithstanding section 3031 of this title, a child to whom entitlement is transferred under this section may not use any entitlement so transferred after attaining the age of 26 years.

`(5) The administrative provisions of this chapter (including the provisions set forth in section 3034(a)(1) of this title) shall apply to the use of entitlement transferred under this section, except that the dependent to whom the entitlement is transferred shall be treated as the eligible veteran for purposes of such provisions.

`(6) The purposes for which a dependent to whom entitlement is transferred under this section may use such entitlement shall include the pursuit and completion of the requirements of a secondary school diploma (or equivalency certificate).

`(i) OVERPAYMENT- (1) In the event of an overpayment of basic educational assistance with respect to a dependent to whom entitlement is transferred under this section, the dependent and the individual making the transfer shall be jointly and severally liable to the United States for the amount of the overpayment for purposes of section 3685 of this title.

`(2) Except as provided in paragraph (3), if an individual transferring entitlement under this section fails to complete the service agreed to by the individual under subsection (b)(3) in accordance with the terms of the agreement of the individual under that subsection, the amount of any transferred entitlement under this section that is used by a dependent of the individual as of the date of such failure shall be treated as an overpayment of basic educational assistance under paragraph (1).

`(3) Paragraph (2) shall not apply in the case of an individual who fails to complete service agreed to by the individual--

`(A) by reason of the death of the individual; or

`(B) for a reason referred to in section 3011(a)(1)(A)(ii)(I) of this title.

`(j) APPROVALS OF TRANSFER SUBJECT TO AVAILABILITY OF APPROPRIATIONS- The Secretary concerned may approve transfers of entitlement to basic educational assistance under this section in a fiscal year only to the extent that appropriations for military personnel are available in that fiscal year for purposes of making deposits in the Department of Defense Education Benefits Fund under section 2006 of title 10 in that fiscal year to cover the present value of future benefits payable from the Fund for the Department of Defense portion of payments of basic educational assistance attributable to increased usage of benefits as a result of such transfers of entitlement in that fiscal year.

`(k) REGULATIONS- The Secretary of Defense shall prescribe regulations for purposes of this section. Such regulations shall specify the manner and effect of an election to modify or revoke a transfer of entitlement under subsection (f)(2) and shall specify the manner of the applicability of the administrative provisions referred to in subsection (h)(5) to a dependent to whom entitlement is transferred under this section.

`(l) ANNUAL REPORT- (1) Not later than January 31 each year (beginning in 2003), the Secretary of Defense shall submit to the Committees on Armed Services and the Committees on Veterans' Affairs of the Senate and House of Representatives a report on the transfers of entitlement to basic educational assistance under this section that were approved by each Secretary concerned during the preceding fiscal year.

`(2) Each report shall set forth--

`(A) the number of transfers of entitlement under this section that were approved by such Secretary during the preceding fiscal year; or

`(B) if no transfers of entitlement under this section were approved by such Secretary during that fiscal year, a justification for such Secretary's decision not to approve any such transfers of entitlement during that fiscal year.

`(m) SECRETARY CONCERNED DEFINED- Notwithstanding section 101(25) of this title, in this section, the term `Secretary concerned' means--

`(1) the Secretary of the Army with respect to matters concerning the Army;

`(2) the Secretary of the Navy with respect to matters concerning the Navy or the Marine Corps;

`(3) the Secretary of the Air Force with respect to matters concerning the Air Force; and

`(4) the Secretary of Defense with respect to matters concerning the Coast Guard, or the Secretary of Transportation when it is not operating as a service in the Navy.'.

(2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 3019 the following new item:

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

(b) TREATMENT UNDER DEPARTMENT OF DEFENSE EDUCATION BENEFITS FUND- Section 2006(b)(2) of title 10, United States Code, is amended by adding at the end the following new subparagraph:

`(D) The present value of future benefits payable from the Fund for the Department of Defense portion of payments of educational assistance under subchapter II of chapter 30 of title 38 attributable to increased usage of benefits as a result of transfers of entitlement to basic educational assistance under section 3020 of that title during such period.'.

(c) PLAN FOR IMPLEMENTATION- Not later than June 30, 2002, the Secretary of Defense shall submit to Congress a report describing the manner in which the Secretaries of the military departments and the Secretary of Transportation propose to exercise the authority granted by section 3020 of title 38, United States Code, as added by subsection (a). The report shall include the regulations prescribed under subsection (k) of that section for purposes of the exercise of the authority.

(d) FUNDING FOR FISCAL YEAR 2002- Of the amount authorized to be appropriated to the Department of Defense for military personnel for fiscal year 2002 by section 421, $30,000,000 may be available in fiscal year 2002 for deposit into the Department of Defense Education Benefits Fund under section 2006 of title 10, United States Code, for purposes of covering payments of amounts under subparagraph (D) of section 2006(b)(2) of such title (as added by subsection (b)), as a result of transfers of entitlement to basic educational assistance under section 3020 of title 38, United States Code (as added by subsection (a)).

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--TRICARE Program Improvements

Sec. 701. Sub-acute and long-term care program reform.

Sec. 702. Prosthetics and hearing aids.

Sec. 703. Durable medical equipment.

Sec. 704. Rehabilitative therapy.

Sec. 705. Report on mental health benefits.

Sec. 706. Clarification of eligibility for reimbursement of travel expenses of adult accompanying patient in travel for specialty care.

Sec. 707. TRICARE program limitations on payment rates for institutional health care providers and on balance billing by institutional and noninstitutional health care providers.

Sec. 708. Improvements in administration of the TRICARE program.

Subtitle B--Senior Health Care

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

Subtitle C--Studies and Reports

Sec. 721. Comptroller General study of health care coverage of members of the reserve components of the Armed Forces and the National Guard.

Sec. 722. Comptroller General study of adequacy and quality of health care provided to women under the defense health program.

Sec. 723. Repeal of obsolete report requirement.

Sec. 724. Comptroller General report on requirement to provide screenings, physical examinations, and other care for certain members.

Subtitle D--Other Matters

Sec. 731. Prohibition against requiring military retirees to receive health care solely through the Department of Defense.

Sec. 732. Fees for trauma and other medical care provided to civilians.

Sec. 733. Enhancement of medical product development.

Sec. 734. Pilot program providing for Department of Veterans Affairs support in the performance of separation physical examinations.

Sec. 735. Modification of prohibition on requirement of nonavailability statement or preauthorization.

Sec. 736. Transitional health care for members separated from active duty.

Sec. 737. Two-year extension of health care management demonstration program.

Sec. 738. Joint DOD-VA pilot program for providing graduate medical education and training for physicians.

Subtitle A--TRICARE Program Improvements

(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.

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'.

(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.'.