To amend the Defense Base Closure and Realignment Act of 1990 to authorize an additional round of military base closures and realignments using a two-step process that first identifies those military bases that may not be considered for closure or realignment.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Infrastructure 
Transformation Act of 2001''.

SEC. 2. ADDITIONAL ROUND OF DEFENSE BASE CLOSURES AND REALIGNMENTS IN 
              2003.

    (a) Additional Round of Closures Authorized.--The Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 
101-501; 10 U.S.C. 2687 note) is amended by adding at the end the 
following new section:

``SEC. 2912. BASE REINVESTMENT AND COMMUNITY ENTERPRISE INITIATIVE FOR 
              2003.

    ``(a) Authorization of Additional Base Closure Round.--(1) During 
the period between January 15, 2003, and January 31, 2003, the 
President may elect to commence an additional round of base closures 
and realignments by transmitting to the Senate nominations for the 
appointment of new members to the Defense Base Closure and Realignment 
Commission. If the President does not transmit to Congress the 
nominations during that period, the process by which military 
installations may be selected for closure or realignment under this 
section shall be terminated.
    ``(2) As part of the submission of the nominations under paragraph 
(1), the Secretary of Defense may submit to Congress a report 
explaining the military necessity for further base closures and 
realignments.
    ``(3) Notwithstanding section 2902(d), the term of the Commission 
required for the round of base closures and realignment authorized by 
this section shall continue until the disposal of property at all 
military installations approved for closure under this section is 
completed. Notwithstanding section 2902(i), the Commission may only 
maintain 15 staff members after December 31, 2003.
    ``(b) Selection Criteria.--(1) The Secretary shall amend the 
criteria to be used in making recommendations for the closure or 
realignment of military installations inside the United States to 
reflect the requirement to develop a list of those military 
installations to be excluded from the base closure and realignment 
process, as provided in subsection (c). The Secretary shall comply with 
section 2903(b)(2)(B) in amending the criteria, except that the 
Secretary shall publish the proposed amendments in the Federal Register 
and transmit them to the congressional defense committees not later 
than December 1, 2002, and publish the final criteria in the Federal 
Register and transmit to such committees not later than January 15, 
2003. The Secretary shall comply with section 2903(a) in preparing the 
budget justification documents submitted to Congress in support of the 
budget for the Department of Defense for fiscal year 2004.
    ``(2) It is the sense of Congress that the national security needs 
of the United States in the future will be best met by a military force 
that operates on the principle of jointness, and, therefore, the 
Secretary and the Commission should consider jointness when performing 
their duties in the additional round of base closures and realignments 
authorized by this section.
    ``(c) List of Installations Excluded From Consideration for Closure 
or Realignment.--(1) Before preparing the list of military 
installations inside the United States that the Secretary recommends 
for closure or realignment, the Secretary shall prepare a list of core 
military installations that the Secretary considers absolutely 
essential to the national defense and that should not be considered for 
closure.
    ``(2) Not later than February 15, 2003, the Secretary shall submit 
to the congressional defense committees, publish in the Federal 
Register, and send to the Commission the list required by paragraph 
(1). The list shall contain not more than 50 percent of the military 
installations inside the United States.
    ``(3) The Commission shall consider the list based on the amended 
criteria developed under subsection (b). The Commission may modify this 
list, in the manner provided in section 2903(d), if the Commission 
finds that the inclusion of a military installation on the list 
substantially violates the criteria. Except as provided in subsection 
(d), the Commission shall forward to the President, not later  than 
April 15, 2003, a report containing its recommendations regarding the 
list, which must comply with the percentages specified in paragraph 
(2). The Comptroller General shall also comply with section 2904(d)(5) 
by that date.
    ``(4) If the Commission submits a report to the President under 
paragraph (3), the President shall notify Congress, not later than 
April 30, 2003, regarding whether the President approves or disapproves 
the report. If the President disapproves the report, the Commission 
shall have until May 15, 2003, to submit a modified report, after which 
the President shall have until May 22, 2003, to transmit the modified 
report to Congress. If the President fails to do so or does not approve 
the modified list, the Commission shall be dissolved, and the process 
by which military installations may be selected for closure or 
realignment under this section shall be terminated.
    ``(5) A military installation included on the exclusion list 
approved under this subsection may not be included on the closure and 
realignment list prepared under subsection (e) or otherwise considered 
for closure or realignment as part of the base closure process under 
this section.
    ``(d) Commission Review of Need for Further Closures.--As part of 
its activities under subsection (c), the Commission shall determine 
whether there exists a military necessity for further base closures. In 
making this determination, the Commission may take such testimony and 
consider such submitted documentation and statements as the Commission 
considers appropriate. If the Commission determines that further 
closures are not militarily necessary, and transmits this determination 
to the President, the Commission shall be dissolved, and the process by 
which military installations may be selected for closure or realignment 
under this section shall be terminated.
    ``(e) Preparation and Consideration of Closure and Realignment 
List.--(1) Not later than 15 days after that date on which the 
President approves the list prepared under subsection (c), the 
Secretary shall publish in the Federal Register, transmit to the 
congressional defense committees, and send to the Commission, a list of 
military installations recommended for closure or realignment. The 
Commission shall consider this list in the manner provided in section 
2903(d), except that the Commission's report shall be transmitted to 
the President not later than October 15, 2003.
    ``(2) Not later than October 30, 2003, the President shall notify 
Congress regarding whether the President approves or disapproves the 
report. If the President disapproves the closure list, the Commission 
shall have until November 15, 2003, to submit a revised list. If the 
President does not approve the revised list by November 30, 2003, or 
does not transmit approval or disapproval of the revised list to 
Congress by that date, the Commission shall be dissolved, and the 
process by which military installations may be selected for closure or 
realignment under this section shall be terminated. If the President 
approves the original or revised list, the President shall transmit to 
Congress a copy of the Commission's report, together with the 
certification of such approval.
    ``(f) Congressional Disapproval.--Section 2904(b)(1) shall apply to 
the base closure process required by this section, except that the date 
otherwise determined under subparagraph (A) of such section is deemed 
to be December 31, 2003.
    ``(g) Implementation.--Within three years after the date of the 
enactment of this section, the Secretary shall initiate the closure or 
realignment, as the case may be, of all military installations 
recommended for closure or realignment by the Commission in the report 
transmitted to the Congress by the President pursuant to subsection 
(e), unless Congress disapproves of the report as provided in 
subsection (f).
    ``(h) Commission's Role During Closure.--(1) During the Secretary's 
implementation of base closures and realignments approved under this 
section, the Commission shall serve as an Ombudsman, to which any 
affected community (containing or bordering a military installation to 
be closed) or redevelopment authority may appeal regarding problems or 
disputes with the Secretary in the process of closure or realignment. 
Appeals may be submitted to the Commission regarding any dispute 
between the affected parties (the Secretary, redevelopment authorities, 
and local communities) after approval of the closure list.
    ``(2) The Commission is authorized, but not required, to issue a 
decision on an appeal submitted under paragraph (1). Any such decision 
shall be made by majority vote. The decision shall be binding on the 
Secretary unless the Secretary overrules the decision of the 
Commission. If the Secretary overrules a decision, the Secretary shall 
provide written notice, including the reasons why the Secretary is 
overruling the decision, to the Chairman of the Commission, the 
affected community or redevelopment authority, and the Chairmen and 
ranking minority members of the Committees on Armed Services of the 
Senate and House of Representatives.
    ``(3) The Commission may not take a military installation off the 
closure list, change a closure to a realignment (or vice versa), or 
make any other substantive changes to the list, but the Commission 
shall have jurisdiction over solely procedural matters.''.
    (b) Adjustment and Diversification Assistance.--Section 2391(b)(1) 
of title 10, United States Code, is amended by inserting after ``the 
affected community'' the following: ``or the community contains an 
economically distressed area''.
    (c) Report on Expediting Base Closure Property Transfers.--Not 
later than December 31, 2003, the Secretary of Defense shall submit to 
Congress a report evaluating the feasibility of permitting local 
communities and redevelopment authorities to take possession of 
individual structures on military installations approved for closure, 
when such structures are no longer needed for military purposes, 
without waiting for the closure of the installation.

Summary: Military Infrastructure Transformation Act of 2001 - Amends the Defense Base Closure and Realignment Act of 1990 to authorize the President to elect to commence an additional round of military base closures and realignments by transmitting to the Senate nominations for the appointment of new members to the Defense Base Closure and Realignment Commission. Allows the Secretary of Defense, as part of such submission, to explain to Congress the military necessity for further base closures and realignments. Requires the Secretary to amend the criteria to be used in making recommendations to develop a list of those installations to be excluded from the closure and realignment process. Expresses the sense of Congress that the Secretary and the Commission should consider military force jointness when performing their base closure and realignment duties. Requires the Secretary, before preparing a list of recommended closures or realignments, to submit a list of core military installations considered absolutely essential to the national defense that should not be considered for closure which shall contain not more than 50 percent of the military installations inside the United States. Requires the Commission to consider such list, to determine whether there exists a military necessity for further base closures, and to submit its recommendations to the President for approval. Requires the Secretary to publish and transmit to the congressional defense committees and the Commission a final list of installations recommended for closure or realignment. Provides for presidential approval or disapproval, and eventual implementation, of such list. Directs the Commission to serve as an ombudsman during implementation.