II

Calendar No. 158

107TH CONGRESS

1ST SESSION S. 1419

To authorize appropriations for fiscal year 2002 for military activities of

the Department of Defense, to prescribe personnel strengths for such

fiscal year for the Armed Forces, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 12, 2001

Mr. LEVIN, from the Committee on Armed Services, reported the following

original bill; which was read twice and placed on the calendar

A BILL

To authorize appropriations for fiscal year 2002 for military

activities of the Department of Defense, to prescribe

personnel strengths for such fiscal year for the Armed

Forces, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Department of Defense

5 Authorization Act for Fiscal Year 2002’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents for this Act is as follows:
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Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Congressional defense committees defined.

TITLE I—PROCUREMENT

Subtitle A—Authorization of Appropriations

Sec. 101. Army.

Sec. 102. Navy and Marine Corps.

Sec. 103. Air Force.

Sec. 104. Defense-wide activities.

Sec. 105. Defense Inspector General.

Sec. 106. Chemical agents and munitions destruction, Defense.

Sec. 107. Defense health programs.

Subtitle B—Army Programs

(Reserved)

Subtitle C—Navy Programs

Sec. 121. Virginia class submarine program.

Sec. 122. Multiyear procurement authority for F/A–18E/F aircraft engines.

Sec. 123. V–22 Osprey aircraft program.

Subtitle D—Air Force Programs

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

Subtitle E—Other Matters

Sec. 141. Extension of pilot program on sales of manufactured articles and

services of certain Army industrial facilities without regard to

availability from domestic sources.

TITLE II—RESEARCH, DEVELOPMENT, TEST, AND

EVALUATION

Subtitle A—Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for basic and applied research.

Subtitle B—Program Requirements, Restrictions, and

Limitations

Sec. 211. F–22 aircraft program.

Sec. 212. C–5 aircraft reliability enhancement and reengining.

Sec. 213. Review of alternatives to the V–22 Osprey aircraft.

Sec. 214. Joint biological defense program.

Subtitle C—Missile Defense

Sec. 221. Presidential certification and expedited congressional approval process

for certain uses of ballistic missile defense funds.

Sec. 222. Program elements and procurement budget displays for ballistic missile defense programs.
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Sec. 223. Ballistic missile defense research and development program baseline

document.

Sec. 224. Annual program plan for ballistic missile defense research and development program.

Subtitle D—Other Matters

Sec. 231. Technology Transition Initiative.

Sec. 232. Communication of safety concerns between operational testing and

evaluation officials and 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. Assistance to local educational agencies that benefit dependents of

members of the Armed Forces and Department of Defense civilian employees.

Sec. 305. Amount for impact aid for children with severe disabilities.

Subtitle B—Environmental Provisions

Sec. 311. Establishment in environmental restoration accounts of sub-accounts

for unexploded ordnance and related constituents.

Sec. 312. Assessment of environmental remediation of unexploded ordnance and

related constituents.

Sec. 313. Department of Defense energy efficiency program.

Sec. 314. Extension of pilot program for sale of air pollution emission reduction

incentives.

Sec. 315. Reimbursement of Environmental Protection Agency for certain response costs in connection with Hooper Sands Site, South Berwick, Maine.

Sec. 316. Conformity of surety authority under environmental restoration program with surety authority under superfund.

Sec. 317. Procurement of alternative fueled and hybrid electric light duty

trucks.

Subtitle C—Commissaries and Nonappropriated Fund

Instrumentalities

Sec. 321. Rebate agreements with producers of foods provided under the special

supplemental food program.

Sec. 322. Reimbursement for use of commissary facilities by military departments for purposes other than commissary sales.

Sec. 323. Public releases of commercially valuable information of commissary

stores.

Subtitle D—Other Matters

Sec. 331. Codification of authority for Department of Defense support for

counter-drug activities of other governmental agencies.

Sec. 332. Exclusion of certain expenditures from limitation on private sector

performance of depot-level maintenance.

Sec. 333. Repair, restoration, and preservation of Lafayette Escadrille Memorial, Marnes la-Coguette, France.
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Sec. 334. Implementation of the Navy-Marine Corps Intranet contract.

TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A—Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Authorized daily average active duty strength for Navy enlisted members in pay grade E–8.

Subtitle B—Reserve Forces

Sec. 411. End strengths for Selected Reserve.

Sec. 412. End strengths for Reserves on active duty in support of the reserves.

Sec. 413. End strengths for military technicians (dual status).

Sec. 414. Fiscal year 2002 limitation on non-dual status technicians.

Sec. 415. Limitations on numbers of reserve personnel serving on active duty

or full-time National Guard duty in certain grades for administration of reserve components.

Sec. 416. Strength and grade limitation accounting for reserve component

members on active duty in support of a contingency operation.

Subtitle C—Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

TITLE V—MILITARY PERSONNEL POLICY

Subtitle A—Officer Personnel Policy

Sec. 501. General officer positions.

Sec. 502. Reduction of time-in-grade requirement for eligibility for promotion

of first lieutenants and lieutenants (junior grade).

Sec. 503. Promotion of officers to the grade of captain in the Army, Air Force,

or Marine Corps or to the grade of lieutenant in the Navy

without selection board action.

Sec. 504. Authority to adjust date of rank.

Sec. 505. Extension of deferments of retirement or separation for medical reasons.

Sec. 506. Exemption from administrative limitations of retired members ordered to active duty as defense and service attache ́s.

Sec. 507. Certifications of satisfactory performance for retirements of officers

in grades above major general and rear admiral.

Sec. 508. Effective date of mandatory separation or retirement of regular officer delayed by a suspension of certain laws under emergency

authority of the President.

Sec. 509. Detail and grade of officer in charge of the United States Navy

Band.

Subtitle B—Reserve Component Personnel Policy

Sec. 511. Reauthorization and expansion of temporary waiver of the requirement for a baccalaureate degree for promotion of certain reserve officers of the Army.

Sec. 512. Status list of reserve officers on active duty for a period of three

years or less.

Sec. 513. Equal treatment of Reserves and full-time active duty members for

purposes of managing deployments of personnel.
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Sec. 514. Modification of physical examination requirements for members of the

Individual Ready Reserve.

Sec. 515. Members of reserve components afflicted while remaining overnight at

duty station within commuting distance of home.

Sec. 516. Retirement of reserve personnel without request.

Sec. 517. Space-required travel by Reserves on military aircraft.

Subtitle C—Education and Training

Sec. 531. Improved benefits under the Army College First program.

Sec. 532. Repeal of limitation on number of Junior Reserve Officers’ Training

Corps units.

Sec. 533. Acceptance of fellowships, scholarships, or grants for legal education

of officers participating in the funded legal education program.

Sec. 534. Grant of degree by Defense Language Institute Foreign Language

Center.

Sec. 535. Authority for the Marine Corps University to award the degree of

master of strategic studies.

Sec. 536. Foreign persons attending the service academies.

Sec. 537. Expansion of financial assistance program for health-care professionals in reserve components to include students in programs

of education leading to initial degree in medicine or dentistry.

Sec. 538. Pilot program for Department of Veterans Affairs support for graduate medical education and training of medical personnel of the

Armed Forces.

Sec. 539. Transfer of entitlement to educational assistance under Montgomery

GI Bill by members of the Armed Forces with critical military

skills.

Subtitle D—Decorations, Awards, and Commendations

Sec. 551. Authority for award of the Medal of Honor to Humbert R. Versace

for valor during the Vietnam War.

Sec. 552. Review regarding award of Medal of Honor to certain Jewish American war veterans.

Sec. 553. Issuance of duplicate and replacement Medals of Honor.

Sec. 554. Waiver of time limitations for award of certain decorations to certain

persons.

Sec. 555. Sense of Senate on issuance of Korea Defense Service Medal.

Subtitle E—Funeral Honors Duty

Sec. 561. Active duty end strength exclusion for Reserves on active duty or fulltime National Guard duty for funeral honors duty.

Sec. 562. Participation of retirees in funeral honors details.

Sec. 563. Benefits and protections for members in a funeral honors duty status.

Sec. 564. Military leave for civilian employees serving as military members of

funeral honors detail.

Subtitle F—Uniformed Services Overseas Voting

Sec. 571. Sense of the Senate regarding the importance of voting by members

of the uniformed services.

Sec. 572. Uniform nondiscriminatory voting standards for administration of

elections under State and local election systems.

Sec. 573. Guarantee of residency for military personnel.
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Sec. 574. Extension of registration and balloting rights for absent uniformed

services voters to State and local elections.

Sec. 575. Use of single application as a simultaneous absentee voter registration application and absentee ballot application.

Sec. 576. Use of single application for absentee ballots for all Federal elections.

Sec. 577. Electronic voting demonstration project.

Sec. 578. Federal voting assistance program.

Subtitle G—Other Matters

Sec. 581. Persons authorized to be included in surveys of military families regarding Federal programs.

Sec. 582. Correction and extension of certain Army recruiting pilot program

authorities.

Sec. 583. Offense of drunken operation of a vehicle, aircraft, or vessel under

the Uniform Code of Military Justice.

Sec. 584. Authority of civilian employees to act as notaries.

Sec. 585. Review of actions of selection boards.

Sec. 586. Acceptance of voluntary legal assistance for the civil affairs of members and former members of the uniformed services and their

dependents.

Sec. 587. Extension of Defense Task Force on Domestic Violence.

Sec. 588. Transportation to annual meeting of next-of-kin of persons unaccounted for from conflicts after World War II.

TITLE VI—COMPENSATION AND OTHER PERSONNEL

BENEFITS

Subtitle A—Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2002.

Sec. 602. Basic pay rate for certain reserve commissioned officers with prior

service as an enlisted member or warrant officer.

Sec. 603. Reserve component compensation for distributed learning activities

performed as inactive-duty training.

Sec. 604. Clarifications for transition to reformed basic allowance for subsistence.

Sec. 605. Increase of basic allowance for housing in the United States.

Sec. 606. Clarification of eligibility for supplemental subsistence allowance.

Sec. 607. Correction of limitation on additional uniform allowance for officers.

Sec. 608. Payment for unused leave in excess of 60 days accrued by members

of reserve components on active duty for one year or less.

Subtitle B—Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonuses and special pay authorities for reserve

forces.

Sec. 612. Extension of certain bonuses and special pay authorities for nurse officer candidates, registered nurses, and nurse anesthetists.

Sec. 613. Extension of special pay and bonus authorities for nuclear officers.

Sec. 614. Extension of authorities relating to payment of other bonuses and

special pays.

Sec. 615. Hazardous duty pay for members of maritime visit, board, search,

and seizure teams.

Sec. 616. Submarine duty incentive pay rates.

Sec. 617. Career sea pay.
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Sec. 618. Modification of eligibility requirements for Individual Ready Reserve

bonus for reenlistment, enlistment, or extension of enlistment.

Sec. 619. Accession bonus for officers in critical skills.

Sec. 620. Modification of the nurse officer candidate accession program restriction on students attending civilian educational institutions with

Senior Reserve Officers’ Training Programs.

Subtitle C—Travel and Transportation Allowances

Sec. 631. Eligibility for temporary housing allowance while in travel or leave

status between permanent duty stations.

Sec. 632. Eligibility for payment of subsistence expenses associated with occupancy of temporary lodging incident to reporting to first permanent duty station.

Sec. 633. Eligibility for dislocation allowance.

Sec. 634. Allowance for dislocation for the convenience of the Government at

home station.

Sec. 635. Travel and transportation allowances for family members to attend

the burial of a deceased member of the uniformed services.

Sec. 636. Family separation allowance for members electing unaccompanied

tour by reason of health limitations of dependents.

Sec. 637. Funded student travel for foreign study under an education program

approved by a United States school.

Sec. 638. Transportation or storage of privately owned vehicles on change of

permanent station.

Subtitle D—Matters Relating to Retirement and Survivor

Benefits

Sec. 651. Payment of retired pay and compensation to disabled military retirees.

Subtitle E—Other Matters

Sec. 661. Education savings plan for reenlistments and extensions of service in

critical specialties.

Sec. 662. Commissary benefits for new members of the Ready Reserve.

Sec. 663. Authorization of transitional compensation and commissary and exchange benefits for dependents of commissioned officers of the

Public Health Service and the National Oceanic and Atmospheric Administration who are separated for dependent abuse.

TITLE VII—HEALTH CARE

Subtitle A—TRICARE Benefits Modernization

Sec. 701. Requirement for integration of benefits.

Sec. 702. Domiciliary and custodial care.

Sec. 703. Long term care.

Sec. 704. Extended benefits for disabled beneficiaries.

Sec. 705. Conforming repeals.

Sec. 706. Effective date.

Subtitle B—Other Matters

Sec. 711. Repeal of requirement for periodic screenings and examinations and

related care for members of Army Reserve units scheduled for

early deployment.
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Sec. 712. Clarification of eligibility for reimbursement of travel expenses of

adult accompanying patient in travel for specialty care.

Sec. 713. TRICARE program limitations on payment rates for institutional

health care providers and on balance billing by institutional

and noninstitutional health care providers.

Sec. 714. Two-year extension of health care management demonstration program.

Sec. 715. Study of health care coverage of members of the Selected Reserve.

Sec. 716. Study of adequacy and quality of health care provided to women

under the defense health program.

Sec. 717. Pilot program for Department of Veterans Affairs support for Department of Defense in the performance of separation physical

examinations.

TITLE VIII—ACQUISITION POLICY, ACQUISITION

MANAGEMENT, AND RELATED MATTERS

Subtitle A—Procurement Management and Administration

Sec. 801. Management of procurements of services.

Sec. 802. Savings goals for procurements of services.

Sec. 803. Competition requirement for purchases pursuant to multiple award

contracts.

Sec. 804. Risk reduction at initiation of major defense acquisition program.

Sec. 805. Follow-on production contracts for products developed pursuant to

prototype projects.

Subtitle B—Defense Acquisition and Support Workforce

Sec. 811. Report on implementation of recommendations of the Acquisition

2005 Task Force.

Sec. 812. Moratorium on reduction of the defense acquisition and support

workforce.

Sec. 813. Revision of acquisition workforce qualification requirements.

Subtitle C—Use of Preferred Sources

Sec. 821. Applicability of competition requirements to purchases from a required source.

Sec. 822. Consolidation of contract requirements.

Sec. 823. Codification and continuation of Mentor-Protege Program as permanent program.

Subtitle D—Amendments to General Contracting Authorities,

Procedures, and Related Matters

Sec. 831. Amendments to conform with administrative changes in acquisition

phase and milestone terminology and to make related adjustments in certain requirements applicable at milestone transition points.

Sec. 832. Inapplicability of limitation to small purchases of miniature or instrument ball or roller bearings under certain circumstances.

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION

AND MANAGEMENT

Sec. 901. Deputy Under Secretary of Defense for Personnel and Readiness.
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Sec. 902. Responsibility of Under Secretary of the Air Force for acquisition of

space launch vehicles and services.

Sec. 903. Sense of Congress regarding the selection of officers for assignment

as the Commander in Chief, United States Transportation

Command.

Sec. 904. Organizational realignment for Navy Director for Expeditionary Warfare.

Sec. 905. Revised requirements for content of annual report on joint

warfighting experimentation.

Sec. 906. Suspension of reorganization of engineering and technical authority

policy within the Naval Sea Systems Command.

Sec. 907. Conforming amendments relating to change of name of Air Mobility

Command.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters

Sec. 1001. Transfer authority.

Sec. 1002. Reduction in authorizations of appropriations for Department of Defense for management efficiencies.

Sec. 1003. Authorization of supplemental appropriations for fiscal year 2001.

Sec. 1004. United States contribution to NATO common-funded budgets in fiscal year 2002.

Sec. 1005. Clarification of applicability of interest penalties for late payment of

interim payments due under contracts for services.

Sec. 1006. Reliability of Department of Defense financial statements.

Sec. 1007. Senior Financial Management Oversight Council and financial feeder systems compliance process.

Sec. 1008. Combating Terrorism Readiness Initiatives Fund for combatant

commands.

Subtitle B—Strategic Forces

Sec. 1011. Repeal of limitation on retirement or dismantlement of strategic nuclear delivery systems.

Sec. 1012. Bomber force structure.

Sec. 1013. Additional element for revised nuclear posture review.

Subtitle C—Reporting Requirements

Sec. 1021. Information and recommendations on congressional reporting requirements applicable to the Department of Defense.

Sec. 1022. Report on combating terrorism.

Sec. 1023. Revised requirement for Chairman of the Joint Chiefs of Staff to

advise Secretary of Defense on the assignment of roles and

missions to the Armed Forces.

Sec. 1024. Revision of deadline for annual report on commercial and industrial

activities.

Sec. 1025. Production and acquisition of vaccines for defense against biological

warfare agents.

Sec. 1026. Extension of times for Commission on the Future of the United

States Aerospace Industry to report and to terminate.

Subtitle D—Armed Forces Retirement Home

Sec. 1041. Amendment of Armed Forces Retirement Home Act of 1991.
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Sec. 1042. Definitions.

Sec. 1043. Revision of authority establishing the Armed Forces Retirement

Home.

Sec. 1044. Chief Operating Officer.

Sec. 1045. Residents of Retirement Home.

Sec. 1046. Local boards of trustees.

Sec. 1047. Directors, Deputy Directors, and staff of facilities.

Sec. 1048. Disposition of effects of deceased persons and unclaimed property.

Sec. 1049. Transitional provisions.

Sec. 1050. Conforming and clerical amendments and repeals of obsolete provisions.

Sec. 1051. Amendments of other laws.

Subtitle E—Other Matters

Sec. 1061. Requirement to conduct certain previously authorized educational

programs for children and youth.

Sec. 1062. Authority to ensure demilitarization of significant military equipment formerly owned by the Department of Defense.

Sec. 1063. Conveyances of equipment and related materials loaned to State and

local governments as assistance for emergency response to a

use or threatened use of a weapon of mass destruction.

Sec. 1064. Authority to pay gratuity to members of the Armed Forces and civilian employees of the United States for slave labor performed

for Japan during World War II.

Sec. 1065. Retention of travel promotional items.

TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN

PERSONNEL POLICY

Subtitle A—Intelligence Personnel

Sec. 1101. Authority to increase maximum number of positions in the Defense

Intelligence Senior Executive Service.

Sec. 1102. Continued applicability of certain civil service protections for employees integrated into the National Imagery and Mapping

Agency from the Defense Mapping Agency.

Subtitle B—Matters Relating to Retirement

Sec. 1111. Federal employment retirement credit for nonappropriated fund instrumentality service.

Sec. 1112. Improved portability of retirement coverage for employees moving

between civil service employment and employment by nonappropriated fund instrumentalities.

Sec. 1113. Repeal of fiscal year 2003 limitations on exercise of voluntary separation incentive pay authority and voluntary early retirement

authority.

Subtitle C—Other Matters

Sec. 1121. Housing allowance for the chaplain for the Corps of Cadets at the

United States Military Academy.

Sec. 1122. Study of adequacy of compensation provided for teachers in the Department of Defense overseas dependents’ schools.
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Sec. 1123. Pilot program for payment of retraining expenses incurred by employers of persons involuntarily separated from employment by

the Department of Defense.

TITLE XII—MATTERS RELATING TO OTHER NATIONS

Subtitle A—Cooperative Threat Reduction With States of the

Former Soviet Union

Sec. 1201. Specification of Cooperative Threat Reduction programs and funds.

Sec. 1202. Funding allocations.

Sec. 1203. Chemical weapons destruction.

Sec. 1204. Management of Cooperative Threat Reduction programs and funds.

Sec. 1205. Additional matter in annual report on activities and assistance

under Cooperative Threat Reduction programs.

Subtitle B—Other Matters

Sec. 1211. Support of United Nations-sponsored efforts to inspect and monitor

Iraqi weapons activities.

Sec. 1212. Cooperative research and development projects with NATO and

other countries.

Sec. 1213. International cooperative agreements on use of ranges and other facilities for testing of defense equipment.

Sec. 1214. Clarification of authority to furnish nuclear test monitoring equipment to foreign governments.

Sec. 1215. Participation of government contractors in chemical weapons inspections at United States Government facilities under the Chemical Weapons Convention.

Sec. 1216. Authority to transfer naval vessels to certain foreign countries.

TITLE XIII—CONTINGENT AUTHORIZATION OF

APPROPRIATIONS

Sec. 1301. Authorization of appropriations contingent on increased allocation of

new budget authority.

Sec. 1302. Reductions.

Sec. 1303. Reference to Concurrent Resolution on the Budget for Fiscal Year

2002.

1 SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

2 For purposes of this Act, the term ‘‘congressional de3 fense committees’’ means—

4 (1) the Committee on Armed Services and the

5 Committee on Appropriations of the Senate; and

6 (2) the Committee on Armed Services and the

7 Committee on Appropriations of the House of Rep8 resentatives.
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1 TITLE I—PROCUREMENT

2 Subtitle A—Authorization of

3 Appropriations

4 SEC. 101. ARMY.

5 Funds are hereby authorized to be appropriated for

6 fiscal year 2002 for procurement for the Army as follows:

7 (1) For aircraft, $2,123,391,000.

8 (2) For missiles, $1,807,384,000.

9 (3) For weapons and tracked combat vehicles,

10 $2,276,746,000.

11 (4) For ammunition, $1,187,565,000.

12 (5) For other procurement, $4,024,486,000.

13 SEC. 102. NAVY AND MARINE CORPS.

14 (a) NAVY.—Funds are hereby authorized to be appro15 priated for fiscal year 2002 for procurement for the Navy

16 as follows:

17 (1) For aircraft, $8,169,043,000.

18 (2) For weapons, including missiles and tor19 pedoes, $1,503,475,000.

20 (3) For shipbuilding and conversion,

21 $9,522,121,000.

22 (4) For other procurement, $4,293,476,000.

23 (b) MARINE CORPS.—Funds are hereby authorized to

24 be appropriated for fiscal year 2002 for procurement for

25 the Marine Corps in the amount of $981,724,000.
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1 (c) NAVY AND MARINE CORPS AMMUNITION.—Funds

2 are hereby authorized to be appropriated for fiscal year

3 2002 for procurement of ammunition for the Navy and

4 the Marine Corps in the amount of $476,099,000.

5 SEC. 103. AIR FORCE.

6 Funds are hereby authorized to be appropriated for

7 fiscal year 2002 for procurement for the Air Force as fol8 lows:

9 (1) For aircraft, $10,892,957,000.

10 (2) For ammunition, $865,344,000.

11 (3) For missiles, $3,263,436,000.

12 (4) For other procurement, $8,081,721,000.

13 SEC. 104. DEFENSE-WIDE ACTIVITIES.

14 Funds are hereby authorized to be appropriated for

15 fiscal year 2002 for Defense-wide procurement in the

16 amount of $1,594,325,000.

17 SEC. 105. DEFENSE INSPECTOR GENERAL.

18 Funds are hereby authorized to be appropriated for

19 fiscal year 2002 for procurement for the Inspector General

20 of the Department of Defense in the amount of

21 $2,800,000.
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1 SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUC2 TION, DEFENSE.

3 There is hereby authorized to be appropriated for the

4 Office of the Secretary of Defense for fiscal year 2002

5 the amount of $1,153,557,000 for—

6 (1) the destruction of lethal chemical agents

7 and munitions in accordance with section 1412 of

8 the Department of Defense Authorization Act, 1986

9 (50 U.S.C. 1521); and

10 (2) the destruction of chemical warfare materiel

11 of the United States that is not covered by section

12 1412 of such Act.

13 SEC. 107. DEFENSE HEALTH PROGRAMS.

14 Funds are hereby authorized to be appropriated for

15 fiscal year 2002 for the Department of Defense for pro16 curement for carrying out health care programs, projects,

17 and activities of the Department of Defense in the total

18 amount of $267,915,000.

19 Subtitle B—Army Programs

20 (RESERVED)

21 Subtitle C—Navy Programs

22 SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.

23 Section 123(b)(1) of the Floyd D. Spence National

24 Defense Authorization Act for Fiscal Year 2001 (as en25 acted into law by Public Law 106–398; 114 Stat. 1654A–

26 25) is amended—
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1 (1) by striking ‘‘five Virginia class submarines’’

2 and inserting ‘‘seven Virginia class submarines’’;

3 and

4 (2) by striking ‘‘through 2006’’ and inserting

5 ‘‘2007’’.

6 SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR

7 F/A–18E/F AIRCRAFT ENGINES.

8 Beginning with the 2002 program year, the Secretary

9 of the Navy may, in accordance with section 2306b of title

10 10, United States Code, enter into a multiyear contract

11 for the procurement of engines for F/A–18E/F aircraft.

12 SEC. 123. V–22 OSPREY AIRCRAFT PROGRAM.

13 The production rate for V–22 Osprey aircraft may

14 not be increased above the minimum sustaining produc15 tion rate for which funds are authorized to be appro16 priated by this Act until the Secretary of Defense certifies

17 to Congress that successful operational testing of the air18 craft demonstrates that—

19 (1) the solutions to the problems regarding the

20 reliability of hydraulic system components and flight

21 control software that were identified by the panel

22 appointed by the Secretary of Defense on January

23 5, 2001, to review the V–22 aircraft program are

24 adequate to achieve low risk for crews and pas-
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1 sengers aboard V–22 aircraft that are operating

2 under operational conditions;

3 (2) the V–22 aircraft can achieve reliability and

4 maintainability levels that are sufficient for the air5 craft to achieve operational availability at the level

6 required for fleet aircraft;

7 (3) the V–22 aircraft will be operationally

8 effective—

9 (A) when employed in operations with

10 other V–22 aircraft; and

11 (B) when employed in operations with

12 other types of aircraft; and

13 (4) the V–22 aircraft can be operated effec14 tively, taking into consideration the downwash ef15 fects inherent in the operation of the aircraft, when

16 the aircraft—

17 (A) is operated in remote areas with unim18 proved terrain and facilities;

19 (B) is deploying and recovering

20 personnel—

21 (i) while hovering within the zone of

22 ground effect; and

23 (ii) while hovering outside the zone of

24 ground effect; and

25 (C) is operated with external loads.
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1 Subtitle D—Air Force Programs

2 SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR

3 C–17 AIRCRAFT.

4 Beginning with the 2002 program year, the Secretary

5 of the Air Force may, in accordance with section 2306b

6 of title 10, United States Code, enter into a multiyear con7 tract for the procurement of up to 60 C–17 aircraft.

8 Subtitle E—Other Matters

9 SEC. 141. EXTENSION OF PILOT PROGRAM ON SALES OF

10 MANUFACTURED ARTICLES AND SERVICES

11 OF CERTAIN ARMY INDUSTRIAL FACILITIES

12 WITHOUT REGARD TO AVAILABILITY FROM

13 DOMESTIC SOURCES.

14 Section 141(a) of the National Defense Authorization

15 Act for Fiscal Year 1998 (Public Law 105–85; 10 U.S.C.

16 4543 note) is amended by striking ‘‘through 2001’’ and

17 inserting ‘‘through 2002’’.
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1 TITLE II—RESEARCH, DEVELOP2 MENT, TEST, AND EVALUA3 TION

4 Subtitle A—Authorization of

5 Appropriations

6 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

7 Funds are hereby authorized to be appropriated for

8 fiscal year 2002 for the use of the Department of Defense

9 for research, development, test, and evaluation as follows:

10 (1) For the Army, $6,899,170,000.

11 (2) For the Navy, $11,135,806,000.

12 (3) For the Air Force, $14,481,157,000.

13 (4) For Defense-wide activities,

14 $14,099,702,000, of which $221,355,000 is author15 ized for the Director of Operational Test and Eval16 uation.

17 (5) For the Defense Health Program,

18 $65,304,000.

19 SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

20 (a) FISCAL YEAR 2002.—Of the amounts authorized

21 to be appropriated by section 201, $5,093,605,000 shall

22 be available for basic research and applied research

23 projects.

24 (b) BASIC RESEARCH AND APPLIED RESEARCH DE25 FINED.—For purposes of this section, the term ‘‘basic re-
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1 search and applied research’’ means work funded in pro2 gram elements for defense research and development

3 under Department of Defense category 6.1 or 6.2.

4 Subtitle B—Program Require5 ments, Restrictions, and Limita6 tions

7 SEC. 211. F–22 AIRCRAFT PROGRAM.

8 (a) REPEAL OF LIMITATIONS ON TOTAL COST OF

9 ENGINEERING AND MANUFACTURING DEVELOPMENT.—

10 The following provisions of law are repealed:

11 (1) Section 217(a) of the National Defense Au12 thorization Act for Fiscal Year 1998 (Public Law

13 105–85; 111 Stat. 1660).

14 (2) Section 8125 of the Department of Defense

15 Appropriations Act, 2001 (Public Law 106–259;

16 114 Stat. 702).

17 (3) Section 219(b) of the Floyd D. Spence Na18 tional Defense Authorization Act for Fiscal Year

19 2001 (as enacted into law by Public Law 106–398;

20 114 Stat. 1654A–38).

21 (b) CONFORMING AMENDMENTS.—(1) Section 217 of

22 the National Defense Authorization Act for Fiscal Year

23 1998 (Public Law 105–85; 111 Stat. 1660) is amended—

24 (A) in subsection (c)—
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1 (i) by striking ‘‘limitations set forth in sub2 sections (a) and (b)’’ and inserting ‘‘limitation

3 set forth in subsection (b)’’; and

4 (ii) by striking paragraph (3); and

5 (B) in subsection (d)(2), by striking subpara6 graphs (D) and (E).

7 (2) Section 131 of the National Defense Authoriza8 tion Act for Fiscal Year 2000 (Public Law 106–65; 113

9 Stat. 536) is amended—

10 (A) in subsection (a), by striking paragraph (2)

11 and inserting the following:

12 ‘‘(2) That the production phase for that pro13 gram can be executed within the limitation on total

14 cost applicable to that program under section 217(b)

15 of the National Defense Authorization Act for Fiscal

16 Year 1998 (Public Law 105–85; 111 Stat. 1660).’’;

17 and

18 (B) in subsection (b)(3), by striking ‘‘for the re19 mainder of the engineering and manufacturing de20 velopment phase and’’.

21 SEC. 212. C–5 AIRCRAFT RELIABILITY ENHANCEMENT AND

22 REENGINING.

23 The Secretary of the Air Force shall ensure that engi24 neering manufacturing and development under the C–5

25 aircraft reliability enhancement and reengining program
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1 includes kit development for an equal number of C–5A and

2 C–5B aircraft.

3 SEC. 213. REVIEW OF ALTERNATIVES TO THE V–22 OSPREY

4 AIRCRAFT.

5 (a) REQUIREMENT FOR REVIEW.—The Under Sec6 retary of Defense for Acquisition, Technology, and Logis7 tics shall conduct a review of the requirements of the Ma8 rine Corps and the Special Operations Command that the

9 V–22 Osprey aircraft is intended to meet in order to iden10 tify the potential alternative means for meeting those re11 quirements if the V–22 Osprey aircraft program were to

12 be terminated.

13 (b) MATTERS TO BE INCLUDED.—The requirements

14 reviewed shall include the following:

15 (1) The requirements to be met by an aircraft

16 replacing the CH–46 medium lift helicopter.

17 (2) The requirements to be met by an aircraft

18 replacing the MH–53 helicopter.

19 (c) FUNDING.—Of the amount authorized to be ap20 propriated by section 201(2), $5,000,000 shall be avail21 able for carrying out the review required by this section.

22 SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.

23 Section 217(a) of the Floyd D. Spence National De24 fense Authorization Act for Fiscal Year 2001 (as enacted

25 into law by Public Law 106–398; 114 Stat. 1654A–36)
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1 is amended by striking ‘‘funds authorized to be appro2 priated by this Act may not’’ and inserting ‘‘no funds au3 thorized to be appropriated to the Department of Defense

4 for fiscal year 2002 may’’.

5 Subtitle C—Missile Defense

6 SEC. 221. PRESIDENTIAL CERTIFICATION AND EXPEDITED

7 CONGRESSIONAL APPROVAL PROCESS FOR

8 CERTAIN USES OF BALLISTIC MISSILE DE9 FENSE FUNDS.

10 (a) LIMITATION.—No funds authorized to be appro11 priated for ballistic missile defense under this Act may be

12 obligated or expended for any activity that would be incon13 sistent with the requirements of the Anti-Ballistic Missile

14 Treaty of 1972 (as in effect on August 1, 2001), as deter15 mined by the President with the advice of the Secretary

16 of State and the Secretary of Defense, unless—

17 (1) the ABM Treaty has been modified or su18 perseded by a new strategic framework or other

19 agreement in a manner that, as determined by the

20 President with the advice of those officials, permits

21 such activity; or

22 (2)(A) the President submits a certification to

23 Congress in accordance with the requirements of

24 subsection (b); and
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1 (B) there is enacted a joint resolution specifi2 cally authorizing the obligation or expenditure in ac3 cordance with the expedited procedures specified in

4 subsection (c).

5 (b) PRESIDENTIAL CERTIFICATION.—(1) A certifi6 cation satisfies the requirements of this subsection if the

7 certification states that—

8 (A) the President has endeavored in good faith

9 and for a reasonable period to negotiate a new stra10 tegic framework or other appropriate modification to

11 the ABM Treaty, but has been unable to do so;

12 (B) further efforts to negotiate such framework

13 or other modification are not likely to be successful

14 within a reasonable period; and

15 (C) it is in the national security interest of the

16 United States to conduct activities that would be in17 consistent with the requirements of the ABM Trea18 ty.

19 (2) The President shall submit to Congress, with a

20 certification under subsection (a)(2)(A), a written state21 ment that—

22 (A) sets forth the basis for the President’s de23 termination to certify the matters in the certification

24 under subparagraphs (B) and (C) of paragraph (1);

25 and
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1 (B) specifies each activity for which the Presi2 dent has determined that it is in the national inter3 est to conduct with funds authorized to be appro4 priated by this Act, notwithstanding the inconsist5 ency of the activity with the requirements of the

6 ABM Treaty.

7 (c) EXPEDITED APPROVAL PROCEDURES.—(1) A

8 joint resolution referred to in subparagraph (B) of sub9 section (a)(2) means only a joint resolution introduced

10 after the date on which a certification of the President

11 pursuant to subparagraph (A) of such subsection is re12 ceived by Congress—

13 (A) the title of which is as follows: ‘‘A joint res14 olution approving the expenditure of funds for activi15 ties proposed by the President on llll.’’, the

16 blank space being filled in with the date on which

17 the President submitted the certification;

18 (B) which does not have a preamble; and

19 (C) the text of which only approves the activi20 ties specified by the President in the written state21 ment submitted with the certification pursuant to

22 subsection (b)(2)(B) by providing after the enacting

23 clause only the following: ‘‘That Congress approves

24 the expenditure of funds for activities proposed by

25 the President on llll, notwithstanding the in-
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1 consistency of such activities with the requirements

2 of the Anti-Ballistic Missile Treaty of 1972.’’, the

3 blank space being filled in with the date on which

4 the President submitted the certification.

5 (2) A joint resolution described in paragraph (1) shall

6 be considered in a House of Congress in accordance with

7 the procedures applicable to joint resolutions under para8 graphs (3) through (8) of section 8066(c) of the Depart9 ment of Defense Appropriations Act, 1985 (as contained

10 in section 101(h) of Public Law 98–473; 98 Stat. 1936),

11 except that—

12 (A) the committee to which the joint resolution

13 is referred under this paragraph in the Senate shall

14 be the Committee on Armed Services of the Senate,

15 and the committee to which the joint resolution is

16 referred under this paragraph in the House of Rep17 resentatives shall be the Committee on Armed Serv18 ices of the House of Representatives; and

19 (B) the limitation on total time for debate

20 under section 8066(c)(5)(B) of the Department of

21 Defense Appropriations Act, 1985, as applied to a

22 joint resolution under this paragraph, shall be 20

23 hours instead of 10 hours.

24 (d) RELATIONSHIP TO ABM TREATY.—Nothing in

25 this section shall be construed—
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1 (1) to limit the authority of the United States

2 to withdraw from the ABM Treaty at any time upon

3 a decision for the United States that extraordinary

4 events related to the subject matter of the Treaty

5 have jeopardized its supreme interests in accordance

6 with Article XV of the Treaty; or

7 (2) to authorize any obligation or expenditure

8 of funds for activities that would be inconsistent

9 with the requirements of the ABM Treaty, if the

10 United States has not withdrawn from the Treaty in

11 accordance with Article XV of the Treaty.

12 (e) ABM TREATY DEFINED.—In this section, the

13 terms ‘‘Anti-Ballistic Missile Treaty of 1972’’ and ‘‘ABM

14 Treaty’’ mean the Treaty Between the United States of

15 America and the Union of Soviet Socialist Republics on

16 the Limitation of Anti-Ballistic Missile Systems, signed at

17 Moscow on May 26, 1972, and includes the Protocol to

18 that treaty, signed at Moscow on July 3, 1974.

19 SEC. 222. PROGRAM ELEMENTS AND PROCUREMENT BUDG20 ET DISPLAYS FOR BALLISTIC MISSILE DE21 FENSE PROGRAMS.

22 (a) PROGRAM ELEMENTS.—Section 223 of title 10,

23 United States Code, is amended—

24 (1) by redesignating subsections (b) and (c) as

25 subsections (d) and (e); and
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1 (2) by striking subsection (a) and inserting the

2 following:

3 ‘‘(a) PROGRAM ELEMENTS SPECIFIED.—In the budg4 et justification materials submitted to Congress in support

5 of the Department of Defense budget for any fiscal year

6 (as submitted with the budget of the President under sec7 tion 1105(a) of title 31), the amount requested for activi8 ties of the Ballistic Missile Defense Organization shall be

9 set forth in accordance with the following program ele10 ments:

11 ‘‘(1) Ballistic Missile Defense system.

12 ‘‘(2) Terminal Defense segment.

13 ‘‘(3) Mid-Course Defense segment.

14 ‘‘(4) Boost Defense segment.

15 ‘‘(5) Sensors.

16 ‘‘(6) Technology.

17 ‘‘(b) ADDITIONAL INFORMATION REQUIRED.—(1)

18 Within each program element set forth in paragraphs (2)

19 through (5) of subsection (a), the budget justification ma20 terials submitted to Congress shall separately specify the

21 amounts requested for specific categories of systems, as

22 follows:

23 ‘‘(A) Land-based systems.

24 ‘‘(B) Sea-based systems.

25 ‘‘(C) Air-based systems.
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1 ‘‘(D) Space-based systems.

2 ‘‘(2) Within the amounts specified pursuant to para3 graph (1), the budget justification materials shall sepa4 rately set forth amounts requested for established pro5 grams, as follows:

6 ‘‘(A) Within the amount specified for land7 based systems in the Terminal Defense segment, the

8 materials shall set forth the amount requested for

9 the Theater High-Altitude Area Defense system and

10 the amount requested for the Arrow system.

11 ‘‘(B) Within the amount specified for sea-based

12 systems in the Mid-Course Defense segment, the

13 materials shall set forth the amount requested for

14 the Navy Theater Wide system.

15 ‘‘(C) Within the amount specified for air-based

16 systems in the Boost Defense segment, the materials

17 shall set forth the amount requested for the Air18 borne Laser system.

19 ‘‘(D) Within the amount specified for space20 based systems in the Boost Defense segment, the

21 materials shall set forth the amount requested for

22 the Space-Based Laser system.

23 ‘‘(E) Within the amount specified for space24 based systems in the Sensors segment, the materials

25 shall set forth the amount requested for the Space-
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1 Based Infrared System Low Component and the

2 amount requested for the Russian American Obser3 vation Satellites (RAMOS) system.

4 ‘‘(c) LIMITED AUTHORITY TO VARY INDIVIDUAL

5 AMOUNTS.—(1) Subject to paragraphs (2) and (3), in any

6 case in which the Secretary of Defense determines that

7 it is necessary to do so in the national interest, the Sec8 retary may obligate amounts authorized to be appro9 priated for an established program or class of systems de10 scribed in subsection (b) in excess of the amount specifi11 cally authorized for such program or class of systems.

12 ‘‘(2) An obligation of funds for a program or class

13 of systems described in subsection (b) in excess of the spe14 cific amount authorized for such program or class of sys15 tems may be made under the authority of paragraph (1)

16 only after—

17 ‘‘(A) the Secretary submits to Congress a noti18 fication of the intent to do so together with a com19 plete discussion of the justification for doing so; and

20 ‘‘(B) 15 days have elapsed following the date of

21 the notification.

22 ‘‘(3) The Secretary may not, under the authority of

23 paragraph (1)—
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1 ‘‘(A) obligate an amount for any program or

2 class of systems described in subsection (b) that is

3 in excess of the lesser of—

4 ‘‘(i) the amount that is 115 percent of the

5 amount specifically authorized for such pro6 gram or class of systems; or

7 ‘‘(ii) the amount that is $100,000,000

8 more than the amount specifically authorized

9 for such program or class of systems;

10 ‘‘(B) reduce the amount that is available for ob11 ligation or expenditure for any such program or

12 class of systems below the higher of—

13 ‘‘(i) the amount that is 85 percent of the

14 amount specifically authorized for such pro15 gram or class of systems; or

16 ‘‘(ii) the amount that is $100,000,000 less

17 than the amount specifically authorized for such

18 program or class of systems; or

19 ‘‘(C) obligate amounts for any program element

20 described in subsection (a) in excess of the amount

21 specifically authorized for such program element.’’.

22 (b) REPEAL OF PROCUREMENT BUDGET DISPLAY

23 REQUIREMENT.—(1) Section 224 of such title is repealed.
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1 (2) The table of sections at the beginning of chapter

2 9 of such title is amended by striking the item relating

3 to section 224.

4 SEC. 223. BALLISTIC MISSILE DEFENSE RESEARCH AND DE5 VELOPMENT PROGRAM BASELINE DOCU6 MENT.

7 (a) REQUIREMENT FOR BASELINE DOCUMENT.—Not

8 later than February 1, 2002, the Secretary of Defense

9 shall submit to the congressional defense committees a

10 baseline document for the ballistic missile defense research

11 and development program through the period covered by

12 the future-years defense program that is submitted to

13 Congress that year under section 221 of title 10, United

14 States Code.

15 (b) CONTENTS OF BASELINE DOCUMENT.—The

16 baseline document required by subsection (a) shall, at a

17 minimum, include the following matters:

18 (1) A statement of the objectives of the ballistic

19 missile defense research and development program,

20 including, at a minimum, a specification of—

21 (A) the country or countries the program

22 is intended to protect;

23 (B) the type or types of missile threat the

24 program is intended to protect against, includ-
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1 ing the number of ballistic missiles and types of

2 countermeasures to be addressed; and

3 (C) the level of success and degree of con4 fidence that are the intended standards for de5 termining whether and when the objectives are

6 achieved.

7 (2) For each established program and each

8 class of systems identified under section 223(b) of

9 title 10, United States Code—

10 (A) each major technology to be pursued;

11 and

12 (B) an explanation of how each such tech13 nology relates to the objectives of the ballistic

14 missile defense research and development pro15 gram.

16 (3) For each technology identified pursuant to

17 paragraph (2)(A)—

18 (A) a technical baseline that identifies re19 search and development objectives and program

20 requirements for the technology;

21 (B) a schedule baseline for the period cov22 ered by the baseline document, including the

23 specific key program milestones and when the

24 program is expected to achieve each milestone;
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1 (C) a cost baseline that includes estimates

2 of the total life-cycle costs and specifies for

3 each year of such period the costs for research

4 and development of the technology; and

5 (D) a testing baseline for such period that

6 specifies—

7 (i) key test events for the program;

8 (ii) when the tests are to be con9 ducted;

10 (iii) the purposes of the tests; and

11 (iv) whether the tests are expected to

12 conflict with existing United States obliga13 tions under international law.

14 (c) CONSULTATION REQUIREMENTS.—In developing

15 the baseline document required by subsection (a), the Sec16 retary shall ensure that—

17 (1) the technical baseline required by subsection

18 (b)(3)(A) is developed in consultation with the Joint

19 Requirements Oversight Council and the Director of

20 Program Analysis and Evaluation of the Depart21 ment of Defense;

22 (2) the schedule baseline required by subsection

23 (b)(3)(B) is developed in consultation with the

24 Under Secretary of Defense for Acquisition, Tech25 nology, and Logistics and the Director of Program
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1 Analysis and Evaluation of the Department of De2 fense;

3 (3) the cost baseline required by subsection

4 (b)(3)(C) is developed in consultation with the Cost

5 Analysis and Improvement Group of the Department

6 of Defense; and

7 (4) the testing baseline required by subsection

8 (b)(3)(D) is developed in consultation with the Di9 rector of Operational Testing and Evaluation and

10 the Treaty Compliance Review Group of the Depart11 ment of Defense.

12 (d) ANNUAL UPDATES TO BASELINE DOCUMENT.—

13 Beginning in 2003 and ending with 2010, the Secretary

14 shall—

15 (1) update the baseline document each year to

16 cover the period covered by the future-years defense

17 program that is submitted to Congress that year

18 under section 221 of title 10, United States Code;

19 and

20 (2) submit the updated baseline document to

21 the congressional defense committees not later than

22 February 1 of that year.
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1 SEC. 224. ANNUAL PROGRAM PLAN FOR BALLISTIC MISSILE

2 DEFENSE RESEARCH AND DEVELOPMENT

3 PROGRAM.

4 (a) REQUIREMENT FOR ANNUAL PROGRAM PLAN.—

5 With the submission of the program baseline document,

6 and with each annual update of the program baseline doc7 ument, required under section 223, the Secretary shall

8 submit to the congressional defense committees each year

9 a program of activities planned to be carried out during

10 the fiscal year in which submitted and the two fiscal years

11 following such fiscal year.

12 (b) CONTENT OF ANNUAL PROGRAM PLAN.—Each

13 program plan required by subsection (a) shall include, at

14 a minimum, the following matters:

15 (1) A funding profile that includes, for each

16 major technology identified in the program baseline

17 document, an estimate of—

18 (A) the total expenditures to be made in

19 each fiscal year covered by the program plan;

20 (B) the expenditures to be made for each

21 procurement or military construction activity to

22 be conducted in such period;

23 (C) the expenditures to be made for each

24 ballistic missile defense flight test to be con25 ducted in such period;
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1 (D) the expenditures to be made for each

2 other test activity to be conducted in such pe3 riod; and

4 (E) the expenditures to be made for each

5 research and development activity to be con6 ducted in such period.

7 (2) A program schedule that identifies, for each

8 major technology identified in the program baseline

9 document—

10 (A) the planned schedule for each procure11 ment or military construction activity to be con12 ducted during the period covered by the pro13 gram plan;

14 (B) the planned date of each ballistic mis15 sile defense flight test to be conducted in such

16 period;

17 (C) the planned schedule for each other

18 test activity to be conducted in such period; and

19 (D) the planned schedule for each research

20 and development activity to be conducted in

21 such period.

22 (3) A legal compliance plan that includes a pre23 liminary assessment by the Treaty Compliance Re24 view Group of the Department of Defense regarding

25 whether each expenditure included in the funding
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1 profile and each activity included in the schedule is

2 likely to be consistent with existing United States

3 obligations under international law.

4 (c) INTERIM PROGRAM PLAN.— Not later than 60

5 days after the date of enactment of this Act, the Secretary

6 shall submit to the congressional defense committees an

7 interim program plan covering planned program activities

8 for fiscal years 2002 and 2003. The interim program plan

9 shall contain the information required by subsection (b)

10 for such fiscal years, and shall govern program activities

11 until the Secretary submits the program baseline docu12 ment and program plan that are required to be submitted

13 on February 1, 2002.

14 (d) MODIFICATIONS.—The Secretary may modify a

15 program plan submitted to the congressional defense com16 mittees pursuant to subsection (a) at any time. A modi17 fication to a program plan shall become effective 30 days

18 after the date on which the congressional defense commit19 tees are notified of the modification. Each notification

20 shall include a description of how the plan is to be modi21 fied and an explanation of the reasons for the modifica22 tion.

23 (e) REQUIREMENT THAT OBLIGATIONS AND EX24 PENDITURES BE CONSISTENT WITH PROGRAM PLAN.—

25 (1) Not more than 25 percent of the funds authorized to
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1 be appropriated for ballistic missile defense research, de2 velopment, test, and evaluation under section 201(4) may

3 be obligated or expended before the date on which the in4 terim program plan required by subsection (c) is sub5 mitted to the congressional defense committees.

6 (2) Not more than 50 percent of the funds authorized

7 to be appropriated for ballistic missile defense research,

8 development, test, and evaluation under section 201(4)

9 may be obligated or expended before the date on which

10 the program baseline document required by section 223

11 and the first program plan required by subsection (a) are

12 submitted to the congressional defense committees.

13 (3) After the date on which the interim program plan

14 required by subsection (c) is submitted to the congres15 sional defense committees, none of the funds authorized

16 to be appropriated for ballistic missile defense research,

17 development, test, and evaluation may be obligated or ex18 pended for an activity unless—

19 (A) the cost of the activity is specifically identi20 fied in the funding profile included in an interim

21 program plan, program plan, or modification to a

22 program plan in accordance with subsection (b)(1);

23 (B) the date or schedule for the activity is spe24 cifically identified in an interim program plan, pro-
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1 gram plan, or modification to a program plan in ac2 cordance with subsection (b)(2);

3 (C) a preliminary assessment of the legal status

4 of the activity is specifically included in an interim

5 program plan, program plan, or modification to a

6 program plan in accordance with subsection (b)(3);

7 and

8 (D) the interim program plan, program plan, or

9 modification to a program plan has been submitted

10 to the congressional defense committees and be11 comes effective in accordance with the requirements

12 of subsection (a), (c), or (d), respectively.

13 Subtitle D—Other Matters

14 SEC. 231. TECHNOLOGY TRANSITION INITIATIVE.

15 (a) ESTABLISHMENT AND CONDUCT.—Chapter 139

16 of title 10, United States Code, is amended by inserting

17 after section 2354 the following new section 2355:

18 ‘‘§ 2355. Technology Transition Initiative

19 ‘‘(a) REQUIREMENT FOR PROGRAM.—The Secretary

20 of Defense shall carry out a Technology Transition Initia21 tive to facilitate the rapid transition of new technologies

22 from science and technology programs of the Department

23 of Defense into acquisition programs for the production

24 of the technologies.
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1 ‘‘(b) OBJECTIVES.—The objectives of the Initiative

2 are as follows:

3 ‘‘(1) To successfully demonstrate new tech4 nologies in relevant environments.

5 ‘‘(2) To ensure that new technologies are suffi6 ciently mature for production.

7 ‘‘(c) MANAGEMENT.—(1) The Secretary of Defense

8 shall designate a senior official in the Office of the Sec9 retary of Defense to manage the Initiative.

10 ‘‘(2) In administering the Initiative, the Initiative

11 Manager shall report directly to the Under Secretary of

12 Defense for Acquisition, Technology, and Logistics.

13 ‘‘(3) The Initiative Manager shall—

14 ‘‘(A) in consultation with the Commander of

15 the Joint Forces Command, identify promising tech16 nologies that have been demonstrated in science and

17 technology programs of the Department of Defense;

18 ‘‘(B) identify potential sponsors in the Depart19 ment of Defense to undertake the transition of such

20 technologies into production;

21 ‘‘(C) work with the science and technology com22 munity and the acquisition community to develop

23 memoranda of agreement, joint funding agreements,

24 and other cooperative arrangements to provide for
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1 the transition of the technologies into production;

2 and

3 ‘‘(D) provide funding support for selected

4 projects as provided under subsection (d).

5 ‘‘(d) JOINTLY FUNDED PROJECTS.—(1) The senior

6 procurement executive of each military department shall

7 select technology projects of the military department to

8 recommend for funding support under the Initiative and

9 shall submit a list of the recommended projects, ranked

10 in order of priority, to the Initiative Manager. The

11 projects shall be selected, in a competitive process, on the

12 basis of the highest potential benefits in areas of interest

13 identified by the Secretary of that military department.

14 ‘‘(2) The Initiative Manager, in consultation with the

15 Commander of the Joint Forces Command, shall select

16 projects for funding support from among the projects on

17 the lists submitted under paragraph (1). The Initiative

18 Manager shall provide funds, out of the Technology Tran19 sition Fund, for each selected project. The total amount

20 provided for a project shall be an amount that equals or

21 exceeds 50 percent of the total cost of the project.

22 ‘‘(3) The senior procurement executive of the military

23 department shall manage each project selected under

24 paragraph (2) that is undertaken by the military depart25 ment. Memoranda of agreement, joint funding agree-
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1 ments, and other cooperative arrangements between the

2 science and technology community and the acquisition

3 community shall be used in carrying out the project if the

4 senior procurement executive determines that it is appro5 priate to do so to achieve the objectives of the project.

6 ‘‘(e) TECHNOLOGY TRANSITION FUND.—(1) There is

7 established in the Treasury of the United States a fund

8 to be known as the ‘Technology Transition Fund’.

9 ‘‘(2) Subject to the authority, direction, and control

10 of the Secretary of Defense, the Initiative Manager shall

11 administer the Fund consistent with the provisions of this

12 section.

13 ‘‘(3) Amounts appropriated for the Initiative shall be

14 deposited in the Fund.

15 ‘‘(4) Amounts in the Fund shall be available, to the

16 extent provided in appropriations Acts, for carrying out

17 the Initiative.

18 ‘‘(5) The President shall specify in the budget sub19 mitted for a fiscal year pursuant to section 1105(a) of title

20 31 the amount provided in that budget for the Initiative.

21 ‘‘(f) DEFINITIONS.—In this section:

22 ‘‘(1) The term ‘Initiative’ means the Tech23 nology Transition Initiative carried out under this

24 section.
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1 ‘‘(2) The term ‘Initiative Manager’ means the

2 official designated to manage the Initiative under

3 subsection (c).

4 ‘‘(3) The term ‘Fund’ means the Technology

5 Transition Fund established under subsection (e).

6 ‘‘(4) The term ‘senior procurement executive’,

7 with respect to a military department, means the of8 ficial designated as the senior procurement executive

9 for that military department under section 16(3) of

10 the Office of Federal Procurement Policy Act (41

11 U.S.C. 414(3)).’’.

12 (b) CLERICAL AMENDMENT.—The table of sections

13 at the beginning of such chapter is amended by inserting

14 after the item relating to section 2354 the following new

15 item:

‘‘2355. Technology Transition Initiative.’’.

16 SEC. 232. COMMUNICATION OF SAFETY CONCERNS BE17 TWEEN OPERATIONAL TESTING AND EVALUA18 TION OFFICIALS AND PROGRAM MANAGERS.

19 Section 139 of title 10, United States Code, is

20 amended by adding at the end the following new sub21 section:

22 ‘‘(c) The Director shall ensure that safety concerns

23 developed during the operational test and evaluation of a

24 weapon system under a major defense acquisition program
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1 are timely communicated to the program manager for con2 sideration in the acquisition decisionmaking process.’’.

3 TITLE III—OPERATION AND

4 MAINTENANCE

5 Subtitle A—Authorization of

6 Appropriations

7 SEC. 301. OPERATION AND MAINTENANCE FUNDING.

8 Funds are hereby authorized to be appropriated for

9 fiscal year 2002 for the use of the Armed Forces and other

10 activities and agencies of the Department of Defense for

11 expenses, not otherwise provided for, for operation and

12 maintenance, in amounts as follows:

13 (1) For the Army, $21,134,982,000.

14 (2) For the Navy, $26,927,931,000.

15 (3) For the Marine Corps, $2,911,339,000.

16 (4) For the Air Force, $26,013,582,000.

17 (5) For Defense-wide activities,

18 $12,482,532,000.

19 (6) For the Army Reserve, $1,803,146,000.

20 (7) For the Naval Reserve, $1,000,369,000.

21 (8) For the Marine Corps Reserve,

22 $142,956,000.

23 (9) For the Air Force Reserve, $2,029,866,000.

24 (10) For the Army National Guard,

25 $3,697,659,000.
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1 (11) For the Air National Guard,

2 $4,037,161,000.

3 (12) For the Defense Inspector General,

4 $149,221,000.

5 (13) For the United States Court of Appeals

6 for the Armed Forces, $9,096,000.

7 (14) For Environmental Restoration, Army,

8 $389,800,000.

9 (15) For Environmental Restoration, Navy,

10 $257,517,000.

11 (16) For Environmental Restoration, Air Force,

12 $385,437,000.

13 (17) For Environmental Restoration, Defense14 wide, $23,492,000.

15 (18) For Environmental Restoration, Formerly

16 Used Defense Sites, $190,255,000.

17 (19) For Overseas Humanitarian, Disaster, and

18 Civic Aid programs, $49,700,000.

19 (20) For Drug Interdiction and Counterdrug

20 Activities, Defense-wide, $860,381,000.

21 (21) For the Kaho’olawe Island Conveyance,

22 Remediation, and Environmental Restoration Trust

23 Fund, $60,000,000.

24 (22) For the Defense Health Program,

25 $17,546,750,000.
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1 (23) For Cooperative Threat Reduction pro2 grams, $403,000,000.

3 (24) For Overseas Contingency Operations

4 Transfer Fund, $2,844,226,000.

5 (25) For Support for International Sporting

6 Competitions, Defense, $15,800,000.

7 SEC. 302. WORKING CAPITAL FUNDS.

8 Funds are hereby authorized to be appropriated for

9 fiscal year 2002 for the use of the Armed Forces and other

10 activities and agencies of the Department of Defense for

11 providing capital for working capital and revolving funds

12 in amounts as follows:

13 (1) For the Defense Working Capital Funds,

14 $1,917,186,000.

15 (2) For the National Defense Sealift Fund,

16 $506,408,000.

17 SEC. 303. ARMED FORCES RETIREMENT HOME.

18 There is hereby authorized to be appropriated for fis19 cal year 2002 from the Armed Forces Retirement Home

20 Trust Fund the sum of $71,440,000 for the operation of

21 the Armed Forces Retirement Home, including the United

22 States Soldiers’ and Airmen’s Home and the Naval Home.
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1 SEC. 304. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES

2 THAT BENEFIT DEPENDENTS OF MEMBERS

3 OF THE ARMED FORCES AND DEPARTMENT

4 OF DEFENSE CIVILIAN EMPLOYEES.

5 (a) CONTINUATION OF DEPARTMENT OF DEFENSE

6 PROGRAM FOR FISCAL YEAR 2002.—Of the amount au7 thorized to be appropriated by section 301(5) for oper8 ation and maintenance for Defense-wide activities,

9 $35,000,000 shall be available only for the purpose of pro10 viding educational agencies assistance (as defined in sub11 section (d)(1)) to local educational agencies.

12 (b) NOTIFICATION.—Not later than June 30, 2002,

13 the Secretary of Defense shall notify each local edu14 cational agency that is eligible for educational agencies as15 sistance for fiscal year 2002 of—

16 (1) that agency’s eligibility for educational

17 agencies assistance; and

18 (2) the amount of the educational agencies as19 sistance for which that agency is eligible.

20 (c) DISBURSEMENT OF FUNDS.—The Secretary of

21 Defense shall disburse funds made available under sub22 section (a) not later than 30 days after the date on which

23 notification to the eligible local educational agencies is

24 provided pursuant to subsection (b).

25 (d) DEFINITIONS.—In this section:
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1 (1) The term ‘‘educational agencies assistance’’

2 means assistance authorized under section 386(b) of

3 the National Defense Authorization Act for Fiscal

4 Year 1993 (Public Law 102–484; 20 U.S.C. 7703

5 note).

6 (2) The term ‘‘local educational agency’’ has

7 the meaning given that term in section 8013(9) of

8 the Elementary and Secondary Education Act of

9 1965 (20 U.S.C. 7713(9)).

10 SEC. 305. AMOUNT FOR IMPACT AID FOR CHILDREN WITH

11 SEVERE DISABILITIES.

12 Of the amount authorized to be appropriated under

13 section 301(5), $5,000,000 shall be available for payments

14 under section 363 of the Floyd D. Spence National De15 fense Authorization Act for Fiscal Year 2001 (as enacted

16 into law by Public Law 106–398; 114 Stat. 1654A–77).

17 Subtitle B—Environmental

18 Provisions

19 SEC. 311. ESTABLISHMENT IN ENVIRONMENTAL RESTORA20 TION ACCOUNTS OF SUB-ACCOUNTS FOR

21 UNEXPLODED ORDNANCE AND RELATED

22 CONSTITUENTS.

23 Section 2703 of title 10, United States Code, is

24 amended—
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1 (1) by redesignating subsections (b) through (f)

2 as subsections (c) through (g), respectively; and

3 (2) by inserting after subsection (a) the fol4 lowing new subsection (b):

5 ‘‘(b) SUB-ACCOUNTS FOR UNEXPLODED ORDNANCE

6 AND RELATED CONSTITUENTS.—There is hereby estab7 lished within each environmental restoration account es8 tablished under subsection (a) a sub-account to be known

9 as the ‘Environmental Restoration Sub-Account,

10 Unexploded Ordnance and Related Constituents’, for the

11 account concerned.’’.

12 SEC. 312. ASSESSMENT OF ENVIRONMENTAL REMEDIATION

13 OF UNEXPLODED ORDNANCE AND RELATED

14 CONSTITUENTS.

15 (a) REPORT REQUIRED.—The report submitted to

16 Congress under section 2706(a) of title 10, United States

17 Code, in 2002 shall include, in addition to the matters

18 required by such section, a comprehensive assessment of

19 the extent of unexploded ordnance and related constitu20 ents at current and former facilities of the Department

21 of Defense.

22 (b) ELEMENTS.—The assessment included under

23 subsection (a) in the report referred to in that subsection

24 shall include, at a minimum—
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1 (1) an estimate of the aggregate projected costs

2 of the remediation of unexploded ordnance and re3 lated constituents at all active facilities of the De4 partment;

5 (2) an estimate of the aggregate projected costs

6 of the remediation of unexploded ordnance and re7 lated constituents at all installations that are being,

8 or have been, closed or realigned under the base clo9 sure laws as of the date of the report under sub10 section (a);

11 (3) an estimate of the aggregate projected costs

12 of the remediation of unexploded ordnance and re13 lated constituents at all formerly used defense sites;

14 (4) a comprehensive plan for addressing the

15 unexploded ordinance and related constituents re16 ferred to in paragraphs (1) through (3), including

17 an assessment of the funding required and the pe18 riod of time over which such funding will be pro19 vided; and

20 (5) an assessment of the technology available

21 for the remediation of unexploded ordnance and re22 lated constituents, an assessment of the impact of

23 improved technology on the cost of remediation of

24 such ordnance and constituents, and a plan for the
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1 development and utilization of such improved tech2 nology.

3 (c) REQUIREMENTS FOR ESTIMATES.—(1) The esti4 mates of aggregate projected costs under each of para5 graphs (1), (2), and (3) of subsection (b) shall—

6 (A) be stated as a range of aggregate projected

7 costs, including a low estimate and a high estimate;

8 (B) set forth the differing assumptions under9 lying each such low estimate and high estimate,

10 including—

11 (i) any public uses for the facilities, instal12 lations, or sites concerned that will be available

13 after the remediation has been completed;

14 (ii) the extent of the cleanup required to

15 make the facilities, installations, or sites con16 cerned available for such uses; and

17 (iii) the technologies to be applied to uti18 lized this purpose; and

19 (C) include, and identify separately, an estimate

20 of the aggregate projected costs of the remediation

21 of any ground water contamination that may be

22 caused by unexploded ordnance and related constitu23 ents at the facilities, installations, or sites con24 cerned.
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1 (2) The high estimate of the aggregate projected

2 costs for facilities and installations under paragraph

3 (1)(A) shall be based on the assumption that all

4 unexploded ordnance and related constituents at such fa5 cilities and installations will be addressed, regardless of

6 whether there are any current plans to close such facilities

7 or installations or discontinue training at such facilities

8 or installations.

9 (3) The estimate of the aggregate projected costs of

10 remediation of ground water contamination under para11 graph (1)(C) shall be based on a comprehensive assess12 ment of the risk of such contamination and of the actions

13 required to protect the ground water supplies concerned.

14 SEC. 313. DEPARTMENT OF DEFENSE ENERGY EFFICIENCY

15 PROGRAM.

16 (a) IN GENERAL.—The Secretary of Defense shall

17 carry out a program to significantly improve the energy

18 efficiency of Department of Defense facilities through

19 2010.

20 (b) RESPONSIBLE OFFICIALS.—The Secretary shall

21 designate a senior official of the Department of Defense

22 to be responsible for managing the program for the De23 partment and a senior official of each military department

24 to be responsible for managing the program for such de25 partment.
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1 (c) ENERGY EFFICIENCY GOALS.—The goal of the

2 program shall be to achieve reductions in energy consump3 tion by Department facilities as follows:

4 (1) In the case of industrial and laboratory fa5 cilities, reductions in the average energy consump6 tion per square foot of such facilities, per unit of

7 production or other applicable unit, relative to en8 ergy consumption in 1990—

9 (A) by 20 percent by 2005; and

10 (B) by 25 percent by 2010.

11 (2) In the case of other facilities, reductions in

12 average energy consumption per gross square foot of

13 such facilities, relative to energy consumption per

14 gross square foot in 1985—

15 (A) by 30 percent by 2005; and

16 (B) by 35 percent by 2010.

17 (d) STRATEGIES FOR IMPROVING ENERGY EFFI18 CIENCY.—In order to achieve the goals set forth in sub19 section (c), the Secretary shall, to the maximum extent

20 practicable—

21 (1) purchase energy-efficient products, as so

22 designated by the Environmental Protection Agency

23 and the Department of Energy, and other energy-ef24 ficient products;
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1 (2) utilize energy savings performance con2 tracts, utility energy-efficiency service contracts, and

3 other contracts designed to achieve energy conserva4 tion;

5 (3) use life-cycle cost analysis, including assess6 ment of life-cycle energy costs, in making decisions

7 about investments in products, services, construc8 tion, and other projects;

9 (4) conduct energy efficiency audits for approxi10 mately 10 percent of all Department of Defense fa11 cilities each year;

12 (5) explore opportunities for energy efficiency in

13 industrial facilities for steam systems, boiler oper14 ation, air compressor systems, industrial processes,

15 and fuel switching; and

16 (6) retire inefficient equipment on an acceler17 ated basis where replacement results in lower life18 cycle costs.

19 (e) REPORTS.— Not later than January 1, 2002, and

20 annually thereafter through 2010, the Secretary shall sub21 mit to the congressional defense committees a report on

22 progress made toward achieving the goals set forth in sub23 section (c). Each report shall include, at a minimum—

24 (1) the percentage reduction in energy con25 sumption accomplished as of the date of such report
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1 by the Department, and by each of the military de2 partments, in facilities covered by the goals set forth

3 in subsection (c)(1);

4 (2) the percentage reduction in energy con5 sumption accomplished as of the date of such report

6 by the Department, and by each of the military de7 partments, in facilities covered by the goals set forth

8 in subsection (c)(2); and

9 (3) the steps taken by the Department, and by

10 each of the military departments, to implement the

11 energy efficiency strategies required by subsection

12 (d) in the preceding calendar year.

13 SEC. 314. EXTENSION OF PILOT PROGRAM FOR SALE OF

14 AIR POLLUTION EMISSION REDUCTION IN15 CENTIVES.

16 Section 351(a)(2) of the National Defense Authoriza17 tion Act for Fiscal Year 1998 (Public Law 105–85; 10

18 U.S.C. 2701 note) is amended by striking ‘‘September 30,

19 2001’’ and inserting ‘‘September 30, 2003’’.

20 SEC. 315. REIMBURSEMENT OF ENVIRONMENTAL PROTEC21 TION AGENCY FOR CERTAIN RESPONSE

22 COSTS IN CONNECTION WITH HOOPER SANDS

23 SITE, SOUTH BERWICK, MAINE.

24 (a) AUTHORITY TO REIMBURSE.—Using amounts

25 specified in subsection (c), the Secretary of the Navy may
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1 pay $1,005,478 to the Hooper Sands Special Account

2 within the Hazardous Substance Superfund established by

3 section 9507 of the Internal Revenue Code of 1986 (26

4 U.S.C. 9507) to reimburse the Environmental Protection

5 Agency for the response costs incurred by the Environ6 mental Protection Agency for actions taken between May

7 12, 1992, and July 31, 2000, pursuant to the Comprehen8 sive Environmental Response, Compensation, and Liabil9 ity Act of 1980 (42 U.S.C. 9601 et seq.) at the Hooper

10 Sands site in South Berwick, Maine, in accordance with

11 the Interagency Agreement entered into by the Depart12 ment of the Navy and the Environmental Protection Agen13 cy in January 2001.

14 (b) TREATMENT OF REIMBURSEMENT.—Payment of

15 the amount authorized by subsection (a) shall be in full

16 satisfaction of amounts due from the Department of the

17 Navy to the Environmental Protection Agency for the re18 sponse costs described in that subsection.

19 (c) SOURCE OF FUNDS.—Payment under subsection

20 (a) shall be made using amounts authorized to be appro21 priated by section 301(15) to the Environmental Restora22 tion Account, Navy, established by section 2703(a)(3) of

23 title 10, United States Code.
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1 SEC. 316. CONFORMITY OF SURETY AUTHORITY UNDER EN2 VIRONMENTAL RESTORATION PROGRAM

3 WITH SURETY AUTHORITY UNDER SUPER4 FUND.

5 Section 2701(j)(1) of title 10, United States Code,

6 is amended by striking ‘‘or after December 31, 1999’’.

7 SEC. 317. PROCUREMENT OF ALTERNATIVE FUELED AND

8 HYBRID ELECTRIC LIGHT DUTY TRUCKS.

9 (a) DEFENSE FLEETS NOT COVERED BY REQUIRE10 MENT IN ENERGY POLICY ACT OF 1992.—(1) The Sec11 retary of Defense shall coordinate with the Administrator

12 of General Services to ensure that only hybrid electric ve13 hicles are procured by the Administrator for the Depart14 ment of Defense fleet of light duty trucks that is not in

15 a fleet of vehicles to which section 303 of the Energy Pol16 icy Act of 1992 (42 U.S.C. 13212) applies.

17 (2) The Secretary, in consultation with the Adminis18 trator, may waive the policy regarding the procurement

19 of hybrid electric vehicles in paragraph (1) to the extent

20 that the Secretary determines necessary—

21 (A) in the case of trucks that are exempt from

22 the requirements of section 303 of the Energy Policy

23 Act of 1992 (42 U.S.C. 13212) for national security

24 reasons under subsection (b)(3)(E) of such section,

25 to meet specific requirements of the Department of

26 Defense for capabilities of light duty trucks;
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1 (B) to procure vehicles consistent with the

2 standards applicable to the procurement of fleet ve3 hicles for the Federal Government; or

4 (C) to adjust to limitations on the commercial

5 availability of light duty trucks that are hybrid elec6 tric vehicles.

7 (3) This subsection applies with respect to procure8 ments of light duty trucks in fiscal year 2005 and subse9 quent fiscal years.

10 (b) REQUIREMENT TO EXCEED REQUIREMENT IN

11 ENERGY POLICY ACT OF 1992.—(1) The Secretary of De12 fense shall coordinate with the Administrator of General

13 Services to ensure that, of the light duty trucks procured

14 in fiscal years after fiscal year 2004 for the fleets of light

15 duty vehicles of the Department of Defense to which sec16 tion 303 of the Energy Policy Act of 1992 (42 U.S.C.

17 13212) applies—

18 (A) five percent of the total number of such

19 trucks that are procured in each of fiscal years 2005

20 and 2006 are alternative fueled vehicles or hybrid

21 electric vehicles; and

22 (B) ten percent of the total number of such

23 trucks that are procured in each fiscal year after fis24 cal year 2006 are alternative fueled vehicles or hy25 brid electric vehicles.
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1 (2) Light duty trucks acquired for the Department

2 of Defense that are counted to comply with section 303

3 of the Energy Policy Act of 1992 (42 U.S.C. 13212) for

4 a fiscal year shall be counted to determine the total num5 ber of light duty trucks procured for the Department of

6 Defense for that fiscal year for the purposes of paragraph

7 (1), but shall not be counted to satisfy the requirement

8 in that paragraph.

9 (c) REPORT ON PLANS FOR IMPLEMENTATION.—At

10 the same time that the President submits the budget for

11 fiscal year 2003 to Congress under section 1105(a) of title

12 31, United States Code, the Secretary shall submit to

13 Congress a report summarizing the plans for carrying out

14 subsections (a) and (b).

15 (d) DEFINITIONS.—In this section:

16 (1) The term ‘‘hybrid electric vehicle’’ means a

17 motor vehicle that draws propulsion energy from on18 board sources of stored energy that are both—

19 (A) an internal combustion or heat engine

20 using combustible fuel; and

21 (B) a rechargeable energy storage system.

22 (2) The term ‘‘alternative fueled vehicle’’ has

23 the meaning given that term in section 301 of the

24 Energy Policy Act of 1992 (43 U.S.C. 13211).
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1 Subtitle C—Commissaries and Non2 appropriated Fund Instrumen3 talities

4 SEC. 321. REBATE AGREEMENTS WITH PRODUCERS OF

5 FOODS PROVIDED UNDER THE SPECIAL SUP6 PLEMENTAL FOOD PROGRAM.

7 Section 1060a(b) of title 10, United States Code, is

8 amended—

9 (1) by striking ‘‘(b) FUNDING MECHANISM.—’’

10 and inserting ‘‘(b) FUNDING.—(1)’’; and

11 (2) by adding at the end the following new

12 paragraph:

13 ‘‘(2)(A) In the administration of the program under

14 this section, the Secretary of Defense may enter into a

15 contract with a producer of a particular brand of food that

16 provides for—

17 ‘‘(i) the Secretary of Defense to procure that

18 particular brand of food, exclusive of other brands of

19 the same or similar food, for the purpose of pro20 viding the food in commissary stores of the Depart21 ment of Defense as a supplemental food under the

22 program; and

23 ‘‘(ii) the producer to rebate to the Department

24 of Defense amounts equal to agreed portions of the

25 amounts paid by the department for the procure-
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1 ment of that particular brand of food for the pro2 gram.

3 ‘‘(B) The Secretary shall use competitive procedures

4 under chapter 137 of this title for entering into contracts

5 under this paragraph.

6 ‘‘(C) The period covered by a contract entered into

7 under this paragraph may not exceed one year. No such

8 contract may be extended by a modification of the con9 tract, by exercise of an option, or by any other means.

10 Nothing in this subparagraph prohibits a contractor under

11 a contract entered into under this paragraph for any year

12 from submitting an offer for, and being awarded, a con13 tract that is to be entered into under this paragraph for

14 a successive year.

15 ‘‘(D) Amounts rebated under a contract entered into

16 under subparagraph (A) shall be credited to the appro17 priation available for carrying out the program under this

18 section in the fiscal year in which rebated, shall be merged

19 with the other sums in that appropriation, and shall be

20 available for the program for the same period as the other

21 sums in the appropriation.’’.
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1 SEC. 322. REIMBURSEMENT FOR USE OF COMMISSARY FA2 CILITIES BY MILITARY DEPARTMENTS FOR

3 PURPOSES OTHER THAN COMMISSARY

4 SALES.

5 (a) REQUIREMENT.—Chapter 147 of title 10, United

6 States Code, is amended by inserting after section 2482a

7 the following new section:

8 ‘‘§ 2483. Commissary stores: reimbursement for use of

9 commissary facilities by military depart10 ments

11 ‘‘(a) PAYMENT REQUIRED.—The Secretary of a mili12 tary department shall pay the Defense Commissary Agen13 cy the amount determined under subsection (b) for any

14 use of a commissary facility by the military department

15 for a purpose other than commissary sales or operations

16 in support of commissary sales.

17 ‘‘(b) AMOUNT.—The amount payable under sub18 section (a) for use of a commissary facility by a military

19 department shall be equal to the share of depreciation of

20 the facility that is attributable to that use, as determined

21 under regulations prescribed by the Secretary of Defense.

22 ‘‘(c) COVERED FACILITIES.—This section applies

23 with respect to a commissary facility that is acquired, con24 structed, converted, expanded, installed, or otherwise im25 proved (in whole or in part) with the proceeds of an ad-
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1 justment or surcharge applied under section 2486(c) of

2 this title.

3 ‘‘(d) CREDITING OF PAYMENTS.—The Director of the

4 Defense Commissary Agency shall credit amounts paid

5 under this section for use of a facility to an appropriate

6 account to which proceeds of an adjustment or surcharge

7 referred to in subsection (c) are credited.’’.

8 (b) CLERICAL AMENDMENT.—The table of sections

9 at the beginning of such chapter is amended by inserting

10 after the item relating to section 2482a the following new

11 item:

‘‘2483. Commissary stores: reimbursement for use of commissary facilities by

military departments.’’.

12 SEC. 323. PUBLIC RELEASES OF COMMERCIALLY VALU13 ABLE INFORMATION OF COMMISSARY

14 STORES.

15 (a) LIMITATIONS AND AUTHORITY.—Section 2487 of

16 title 10, United States Code, is amended to read as fol17 lows:

18 ‘‘§ 2487. Commissary stores: release of certain com19 mercially valuable information to the

20 public

21 ‘‘(a) AUTHORITY TO LIMIT RELEASE.—(1) The Sec22 retary of Defense may limit the release to the public of

23 any information described in paragraph (2) if the Sec24 retary determines that it is in the best interest of the De-
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1 partment of Defense to limit the release of such informa2 tion. If the Secretary determines to limit the release of

3 any such information, the Secretary may provide for lim4 ited release of such information in accordance with sub5 section (b).

6 ‘‘(2) Paragraph (1) applies to the following:

7 ‘‘(A) Information contained in the computerized

8 business systems of commissary stores or the De9 fense Commissary Agency that is collected through

10 or in connection with the use of electronic scanners

11 in commissary stores, including the following infor12 mation:

13 ‘‘(i) Data relating to sales of goods or serv14 ices.

15 ‘‘(ii) Demographic information on cus16 tomers.

17 ‘‘(iii) Any other information pertaining to

18 commissary transactions and operations.

19 ‘‘(B) Business programs, systems, and applica20 tions (including software) relating to commissary op21 erations that were developed with funding derived

22 from commissary surcharges.

23 ‘‘(b) RELEASE AUTHORITY.—(1) The Secretary of

24 Defense may, using competitive procedures, enter into a

25 contract to sell information described in subsection (a)(2).
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1 ‘‘(2) The Secretary of Defense may release, without

2 charge, information on an item sold in commissary stores

3 to—

4 ‘‘(A) the manufacturer or producer of that

5 item; or

6 ‘‘(B) the manufacturer or producer’s agent

7 when necessary to accommodate electronic ordering

8 of the item by commissary stores.

9 ‘‘(3) The Secretary of Defense may, by contract en10 tered into with a business, grant to the business a license

11 to use business programs referred to in subsection

12 (a)(2)(B), including software used in or comprising any

13 such program. The fee charged for the license shall be

14 based on the costs of similar programs developed and mar15 keted by businesses in the private sector, determined by

16 means of surveys.

17 ‘‘(4) Each contract entered into under this subsection

18 shall specify the amount to be paid for information re19 leased or a license granted under the contract, as the case

20 may be.

21 ‘‘(c) FORM OF RELEASE.—Information described in

22 subsection (a)(2) may not be released, under subsection

23 (b) or otherwise, in a form that identifies any customer

24 or that provides information making it possible to identify

25 any customer.
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1 ‘‘(d) RECEIPTS.—Amounts received by the Secretary

2 under this section shall be credited to funds derived from

3 commissary surcharges, shall be merged with those funds,

4 and shall be available for the same purposes as the funds

5 with which merged.

6 ‘‘(e) DEFINITIONS.—In this section, the term ‘com7 missary surcharge’ means any adjustment or surcharge

8 applied under section 2486(c) of this title.’’.

9 (b) CLERICAL AMENDMENT.—The table of sections

10 at the beginning of chapter 147 of such title is amended

11 to read as follows:

‘‘2487. Commissary stores: release of certain commercially valuable information

to the public.’’.

12 Subtitle D—Other Matters

13 SEC. 331. CODIFICATION OF AUTHORITY FOR DEPARTMENT

14 OF DEFENSE SUPPORT FOR COUNTERDRUG

15 ACTIVITIES OF OTHER GOVERNMENTAL

16 AGENCIES.

17 (a) AUTHORITY.—(1) Chapter 18 of title 10, United

18 States Code, is amended by adding at the end the fol19 lowing new section:

20 ‘‘§ 383. Additional support for counterdrug activities

21 of other agencies

22 ‘‘(a) SUPPORT TO OTHER AGENCIES.—The Secretary

23 of Defense may provide support for the counterdrug activi24 ties of any other department or agency of the Federal Gov-
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1 ernment or of any State, local, or foreign law enforcement

2 agency for any of the purposes set forth in subsection (b)

3 if such support is requested—

4 ‘‘(1) by the official who has responsibility for

5 the counterdrug activities of the department or

6 agency of the Federal Government, in the case of

7 support for the department or agency;

8 ‘‘(2) by the appropriate official of a State or

9 local government, in the case of support for the

10 State or local law enforcement agency; or

11 ‘‘(3) by an appropriate official of a department

12 or agency of the Federal Government that has

13 counterdrug responsibilities, in the case of support

14 for a foreign law enforcement agency.

15 ‘‘(b) TYPES OF SUPPORT.—The purposes for which

16 the Secretary may provide support under subsection (a)

17 are the following:

18 ‘‘(1) The maintenance and repair of equipment

19 that has been made available to any department or

20 agency of the Federal Government or to any State

21 or local government by the Department of Defense

22 for the purposes of—

23 ‘‘(A) preserving the potential future utility

24 of such equipment for the Department of De25 fense; and
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1 ‘‘(B) upgrading such equipment to ensure

2 compatibility of that equipment with other

3 equipment used by the Department of Defense.

4 ‘‘(2) The maintenance, repair, or upgrading of

5 equipment (including computer software), other than

6 equipment referred to in subparagraph (A) for the

7 purpose of—

8 ‘‘(A) ensuring that the equipment being

9 maintained or repaired is compatible with

10 equipment used by the Department of Defense;

11 and

12 ‘‘(B) upgrading such equipment to ensure

13 the compatibility of that equipment with equip14 ment used by the Department of Defense.

15 ‘‘(3) The transportation of personnel of the

16 United States and foreign countries (including per

17 diem expenses associated with such transportation),

18 and the transportation of supplies and equipment,

19 for the purpose of facilitating counterdrug activities

20 within or outside the United States.

21 ‘‘(4) The establishment (including an unspec22 ified minor military construction project) and oper23 ation of bases of operations or training facilities for

24 the purpose of facilitating counterdrug activities of

25 the Department of Defense or any Federal, State, or
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1 local law enforcement agency within or outside the

2 United States or counterdrug activities of a foreign

3 law enforcement agency outside the United States.

4 ‘‘(5) Counterdrug related training of law en5 forcement personnel of the Federal Government, of

6 State and local governments, and of foreign coun7 tries, including associated support expenses for

8 trainees and the provision of materials necessary to

9 carry out such training.

10 ‘‘(6) The detection, monitoring, and commu11 nication of the movement of—

12 ‘‘(A) air and sea traffic within 25 miles of

13 and outside the geographic boundaries of the

14 United States; and

15 ‘‘(B) surface traffic outside the geographic

16 boundary of the United States and within the

17 United States not to exceed 25 miles of the

18 boundary if the initial detection occurred out19 side of the boundary.

20 ‘‘(7) Construction of roads and fences and in21 stallation of lighting to block drug smuggling cor22 ridors across international boundaries of the United

23 States.

24 ‘‘(8) Establishment of command, control, com25 munications, and computer networks for improved
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1 integration of law enforcement, active military, and

2 National Guard activities.

3 ‘‘(9) The provision of linguist and intelligence

4 analysis services.

5 ‘‘(10) Aerial and ground reconnaissance.

6 ‘‘(c) LIMITATION ON COUNTERDRUG REQUIRE7 MENTS.—The Secretary of Defense may not limit the re8 quirements for which support may be provided under sub9 section (a) only to critical, emergent, or unanticipated re10 quirements.

11 ‘‘(d) CONTRACT AUTHORITY.—In carrying out sub12 section (a), the Secretary of Defense may acquire services

13 or equipment by contract for support provided under that

14 subsection if the Department of Defense would normally

15 acquire such services or equipment by contract for the

16 purpose of conducting a similar activity for the Depart17 ment of Defense.

18 ‘‘(e) LIMITED WAIVER OF PROHIBITION.—Notwith19 standing section 376 of this title, the Secretary of Defense

20 may provide support pursuant to subsection (a) in any

21 case in which the Secretary determines that the provision

22 of such support would adversely affect the military pre23 paredness of the United States in the short term if the

24 Secretary determines that the importance of providing

25 such support outweighs such short-term adverse effect.
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1 ‘‘(f) CONDUCT OF TRAINING OR OPERATION TO AID

2 CIVILIAN AGENCIES.—In providing support pursuant to

3 subsection (a), the Secretary of Defense may plan and exe4 cute otherwise valid military training or operations (in5 cluding training exercises undertaken pursuant to section

6 1206(a) of the National Defense Authorization Act for

7 Fiscal Years 1990 and 1991 (Public Law 101–189; 103

8 Stat. 1564; 10 U.S.C. 124 note)) for the purpose of aiding

9 civilian law enforcement agencies.

10 ‘‘(g) RELATIONSHIP TO OTHER LAWS.—(1) The au11 thority provided in this section for the support of

12 counterdrug activities by the Department of Defense is in

13 addition to, and except as provided in paragraph (2), not

14 subject to the requirements of any other provision of this

15 chapter.

16 ‘‘(2) Support under this section shall be subject to

17 the provisions of section 375 and, except as provided in

18 subsection (e), section 376 of this title.

19 ‘‘(h) CONGRESSIONAL NOTIFICATION OF FACILITIES

20 PROJECTS.—(1) When a decision is made to carry out a

21 military construction project described in paragraph (2),

22 the Secretary of Defense shall submit to the committees

23 of Congress named in paragraph (3) a written notice of

24 the decision, including the justification for the project and

25 the estimated cost of the project. The project may be com-
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1 menced only after the end of the 21-day period beginning

2 on the date on which the written notice is received by the

3 committees.

4 ‘‘(2) Paragraph (1) applies to an unspecified minor

5 military construction project that—

6 ‘‘(A) is intended for the modification or repair

7 of a Department of Defense facility for the purpose

8 set forth in subsection (b)(4); and

9 ‘‘(B) has an estimated cost of more than

10 $500,000.

11 ‘‘(3) The committees referred to in paragraph (1) are

12 as follows:

13 ‘‘(A) The Committee on Armed Services and

14 the Committee on Appropriations of the Senate.

15 ‘‘(B) The Committee on Armed Services and

16 the Committee on Appropriations of the House of

17 Representatives.’’.

18 (2) The table of sections at the beginning of such

19 chapter is amended by adding at the end the following

20 new item:

‘‘383. Additional support for counterdrug activities of other agencies.’’.

21 (b) REPEAL OF SUPERSEDED PROVISION.—Section

22 1004 of the National Defense Authorization Act for Fiscal

23 Year 1991 (Public Law 101–510; 10 U.S.C. 374 note) is

24 repealed.
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1 (c) SAVINGS PROVISION.—The repeal of section 1004

2 of the National Defense Authorization Act for Fiscal Year

3 1991 by subsection (b) shall not affect any support pro4 vided under that section that is ongoing as of the date

5 of the enactment of this Act. The support may be contin6 ued in accordance with section 383 of title 10, United

7 States Code, as added by subsection (a).

8 SEC. 332. EXCLUSION OF CERTAIN EXPENDITURES FROM

9 LIMITATION ON PRIVATE SECTOR PERFORM10 ANCE OF DEPOT-LEVEL MAINTENANCE.

11 (a) AMOUNTS EXCLUDED.—Amounts expended out

12 of funds described in subsection (b) for the performance

13 of a depot-level maintenance and repair workload by non14 Federal Government personnel at a Center of Industrial

15 and Technical Excellence designated pursuant to section

16 2474(a) of title 10, United States Code, shall not be

17 counted for purposes of section 2466(a) of such title if

18 the personnel are provided by private industry pursuant

19 to a public-private partnership undertaken by the Center

20 under section 2474(b) of such title.

21 (b) FUNDS FOR FISCAL YEARS 2002 THROUGH

22 2004.—The funds referred to in subsection (a) are funds

23 available to the military departments for depot-level main24 tenance and repair workloads for fiscal years 2002, 2003,

25 and 2004.
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1 SEC. 333. REPAIR, RESTORATION, AND PRESERVATION OF

2 LAFAYETTE ESCADRILLE MEMORIAL,

3 MARNES LA-COQUETTE, FRANCE.

4 (a) AUTHORITY TO MAKE GRANT.—The Secretary of

5 the Air Force may, using amounts specified in subsection

6 (d), make a grant to the Lafayette Escadrille Memorial

7 Foundation, Inc., for purposes of the repair, restoration,

8 and preservation of the structure, plaza, and surrounding

9 grounds of the Lafayette Escadrille Memorial in Marnes

10 la-Coquette, France.

11 (b) GRANT AMOUNT.—The amount of the grant

12 under subsection (a) may not exceed $2,000,000.

13 (c) USE OF GRANT.—Amounts from the grant under

14 this section shall be used solely for the purposes described

15 in subsection (a). None of such amounts may be used for

16 remuneration of any entity or individual associated with

17 fundraising for any project for such purposes.

18 (d) FUNDS FOR GRANT.—Funds for the grant under

19 this section shall be derived from amounts authorized to

20 be appropriated by section 301(4) for operation and main21 tenance for the Air Force for fiscal year 2002.

22 SEC. 334. IMPLEMENTATION OF THE NAVY-MARINE CORPS

23 INTRANET CONTRACT.

24 (a) ADDITIONAL PHASE-IN AUTHORITY.—Subsection

25 (b) of section 814 of the Floyd D. Spence National De26 fense Authorization Act for Fiscal Year 2001 (as enacted
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1 by Public Law 106–398; 114 Stat. 1654A–215) is amend2 ed by adding at the end the following new paragraphs:

3 ‘‘(5)(A) The Secretary of the Navy may, before the

4 submittal of the joint certification referred to in paragraph

5 (3)(D), contract for one or more additional increments of

6 work stations under the Navy-Marine Corps Intranet con7 tract, with the number of work stations to be ordered in

8 each additional increment to be determined by the Under

9 Secretary of Defense for Acquisition, Technology, and Lo10 gistics.

11 ‘‘(B) Upon determining the number of work stations

12 in an additional increment for purposes of subparagraph

13 (A), the Under Secretary of Defense for Acquisition, Tech14 nology, and Logistics shall submit to the congressional de15 fense committees a report, current as of the date of such

16 determination, on the following:

17 ‘‘(i) The number of work stations operating on

18 the Navy-Marine Corps Intranet.

19 ‘‘(ii) The status of testing and implementation

20 of the Navy-Marine Corps Intranet program.

21 ‘‘(iii) The number of work stations to be con22 tracted for in the additional increment.

23 ‘‘(C) The Under Secretary of Defense for Acquisition,

24 Technology, and Logistics may not make a determination

25 to order any number of work stations to be contracted for
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1 under subparagraph (A) in excess of the number per2 mitted under paragraph (2) until—

3 ‘‘(i) the completion of a three-phase contractor

4 test and user evaluation, observed by the Depart5 ment of Defense, of the work stations operating on

6 the Navy-Marine Corps Intranet at the first three

7 sites under the Navy-Marine Corps Intranet pro8 gram; and

9 ‘‘(ii) the Chief Information Officer of the Navy

10 has certified to the Secretary of the Navy and the

11 Chief Information Officer of the Department of De12 fense that the results of the test and evaluation re13 ferred to in clause (i) are acceptable.

14 ‘‘(D) The Under Secretary of Defense for Acquisi15 tion, Technology, and Logistics may not make a deter16 mination to order any number of work stations to be con17 tracted for under subparagraph (A) in excess of the num18 ber provided for under subparagraph (C) until—

19 ‘‘(i) there has been a full transition of not less

20 than 20,000 work stations to the Navy-Marine

21 Corps Intranet;

22 ‘‘(ii) the work stations referred to in clause (i)

23 have met service-level agreements specified in the

24 Navy-Marine Corps Intranet contract for not less

25 than 30 days, as determined by contractor perform-
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1 ance measurement under oversight by the Depart2 ment of the Navy; and

3 ‘‘(iii) the Chief Information Officer of the De4 partment of Defense and the Assistant Secretary of

5 Defense for Command, Control, Communications,

6 and Intelligence jointly certify to the congressional

7 defense committees that the results of testing of the

8 work stations referred to in clause (i) are accept9 able.’’.

10 (b) DEFINITIONS.—Subsection (f) of that section is

11 amended to read as follows:

12 ‘‘(f) DEFINITIONS.—In this section:

13 ‘‘(1) The term ‘Navy-Marine Corps Intranet

14 contract’ means a contract providing for a long-term

15 arrangement of the Department of the Navy with

16 the commercial sector that imposes on the contractor

17 a responsibility for, and transfers to the contractor

18 the risk of, providing and managing the significant

19 majority of desktop, server, infrastructure, and com20 munication assets and services of the Department of

21 the Navy.

22 ‘‘(2) The term ‘provide’, in the case of a work

23 station under the Navy-Marine Corps Intranet con24 tract, means transfer of the legacy information in25 frastructure and systems of the user of the work sta-
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1 tion to Navy-Marine Corps Intranet infrastructure

2 and systems of the work station under the Navy-Ma3 rine Corps Intranet contract and performance there4 of consistent with the service-level agreements speci5 fied in the Navy-Marine Corps Intranet contract.’’.

6 TITLE IV—MILITARY

7 PERSONNEL AUTHORIZATIONS

8 Subtitle A—Active Forces

9 SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

10 The Armed Forces are authorized strengths for active

11 duty personnel as of September 30, 2002, as follows:

12 (1) The Army, 480,000.

13 (2) The Navy, 376,000.

14 (3) The Marine Corps, 172,600.

15 (4) The Air Force, 358,800.

16 SEC. 402. AUTHORIZED DAILY AVERAGE ACTIVE DUTY

17 STRENGTH FOR NAVY ENLISTED MEMBERS

18 IN PAY GRADE E–8.

19 (a) IN GENERAL.—Section 517(a) of title 10, United

20 States Code, is amended by inserting ‘‘or the Navy’’ after

21 ‘‘in the case of the Army’’.

22 (b) APPLICABILITY.—The amendment made by sub23 section (a) shall take effect on October 1, 2001, and shall

24 apply with respect to fiscal years beginning on or after

25 that date.
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1 Subtitle B—Reserve Forces

2 SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

3 (a) IN GENERAL.—The Armed Forces are authorized

4 strengths for Selected Reserve personnel of the reserve

5 components as of September 30, 2002, as follows:

6 (1) The Army National Guard of the United

7 States, 350,000.

8 (2) The Army Reserve, 205,000.

9 (3) The Naval Reserve, 87,000.

10 (4) The Marine Corps Reserve, 39,558.

11 (5) The Air National Guard of the United

12 States, 108,400.

13 (6) The Air Force Reserve, 74,700.

14 (7) The Coast Guard Reserve, 8,000.

15 (b) ADJUSTMENTS.—The end strengths prescribed by

16 subsection (a) for the Selected Reserve of any reserve com17 ponent shall be proportionately reduced by—

18 (1) the total authorized strength of units orga19 nized to serve as units of the Selected Reserve of

20 such component which are on active duty (other

21 than for training) at the end of the fiscal year; and

22 (2) the total number of individual members not

23 in units organized to serve as units of the Selected

24 Reserve of such component who are on active duty

25 (other than for training or for unsatisfactory partici-
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1 pation in training) without their consent at the end

2 of the fiscal year.

3 Whenever such units or such individual members are re4 leased from active duty during any fiscal year, the end

5 strength prescribed for such fiscal year for the Selected

6 Reserve of such reserve component shall be proportion7 ately increased by the total authorized strengths of such

8 units and by the total number of such individual members.

9 SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE

10 DUTY IN SUPPORT OF THE RESERVES.

11 Within the end strengths prescribed in section

12 411(a), the reserve components of the Armed Forces are

13 authorized, as of September 30, 2002, the following num14 ber of Reserves to be serving on full-time active duty or

15 full-time duty, in the case of members of the National

16 Guard, for the purpose of organizing, administering, re17 cruiting, instructing, or training the reserve components:

18 (1) The Army National Guard of the United

19 States, 23,698.

20 (2) The Army Reserve, 13,406.

21 (3) The Naval Reserve, 14,811.

22 (4) The Marine Corps Reserve, 2,261.

23 (5) The Air National Guard of the United

24 States, 11,591.

25 (6) The Air Force Reserve, 1,437.
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1 SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS

2 (DUAL STATUS).

3 The minimum number of military technicians (dual

4 status) as of the last day of fiscal year 2002 for the re5 serve components of the Army and the Air Force (notwith6 standing section 129 of title 10, United States Code) shall

7 be the following:

8 (1) For the Army Reserve, 6,249.

9 (2) For the Army National Guard of the United

10 States, 23,615.

11 (3) For the Air Force Reserve, 9,818.

12 (4) For the Air National Guard of the United

13 States, 22,422.

14 SEC. 414. FISCAL YEAR 2002 LIMITATION ON NON-DUAL STA15 TUS TECHNICIANS.

16 (a) LIMITATION.—The number of non-dual status

17 technicians employed by the reserve components of the

18 Army and the Air Force as of September 30, 2002, may

19 not exceed the following:

20 (1) For the Army Reserve, 1,095.

21 (2) For the Army National Guard of the United

22 States, 1,600.

23 (3) For the Air Force Reserve, 0.

24 (4) For the Air National Guard of the United

25 States, 350.
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1 (b) NON-DUAL STATUS TECHNICIANS DEFINED.—In

2 this section, the term ‘‘non-dual status technician’’ has the

3 meaning given the term in section 10217(a) of title 10,

4 United States Code.

5 SEC. 415. LIMITATIONS ON NUMBERS OF RESERVE PER6 SONNEL SERVING ON ACTIVE DUTY OR FULL7 TIME NATIONAL GUARD DUTY IN CERTAIN

8 GRADES FOR ADMINISTRATION OF RESERVE

9 COMPONENTS.

10 (a) OFFICERS.—The text of section 12011 of title 10,

11 United States Code, is amended to read as follows:

12 ‘‘(a) LIMITATIONS.—(1) Of the total number of mem13 bers of a reserve component who are serving on full-time

14 reserve component duty at the end of any fiscal year, the

15 number of those members who may be serving in each of

16 the grades of major, lieutenant colonel, and colonel may

17 not, as of the end of that fiscal year, exceed the number

18 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

Army Reserve:

10,000 .................................................................... 1,390 740 230

11,000 .................................................................... 1,529 803 242

12,000 .................................................................... 1,668 864 252

13,000 .................................................................... 1,804 924 262

14,000 .................................................................... 1,940 984 272

15,000 .................................................................... 2,075 1,044 282

16,000 .................................................................... 2,210 1,104 291

17,000 .................................................................... 2,345 1,164 300

18,000 .................................................................... 2,479 1,223 309

19,000 .................................................................... 2,613 1,282 318

20,000 .................................................................... 2,747 1,341 327

21,000 .................................................................... 2,877 1,400 336

Army National Guard:

20,000 .................................................................... 1,500 850 325

22,000 .................................................................... 1,650 930 350
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‘‘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

24,000 .................................................................... 1,790 1,010 370

26,000 .................................................................... 1,930 1,085 385

28,000 .................................................................... 2,070 1,160 400

30,000 .................................................................... 2,200 1,235 405

32,000 .................................................................... 2,330 1,305 408

34,000 .................................................................... 2,450 1,375 411

36,000 .................................................................... 2,570 1,445 411

38,000 .................................................................... 2,670 1,515 411

40,000 .................................................................... 2,770 1,580 411

42,000 .................................................................... 2,837 1,644 411

Marine Corps Reserve:

1,100 ...................................................................... 106 56 20

1,200 ...................................................................... 110 60 21

1,300 ...................................................................... 114 63 22

1,400 ...................................................................... 118 66 23

1,500 ...................................................................... 121 69 24

1,600 ...................................................................... 124 72 25

1,700 ...................................................................... 127 75 26

1,800 ...................................................................... 130 78 27

1,900 ...................................................................... 133 81 28

2,000 ...................................................................... 136 84 29

2,100 ...................................................................... 139 87 30

2,200 ...................................................................... 141 90 31

2,300 ...................................................................... 143 92 32

2,400 ...................................................................... 145 94 33

2,500 ...................................................................... 147 96 34

2,600 ...................................................................... 149 98 35

Air Force Reserve:

500 ......................................................................... 83 85 50

1,000 ...................................................................... 155 165 95

1,500 ...................................................................... 220 240 135

2,000 ...................................................................... 285 310 170

2,500 ...................................................................... 350 369 203

3,000 ...................................................................... 413 420 220

3,500 ...................................................................... 473 464 230

4,000 ...................................................................... 530 500 240

4,500 ...................................................................... 585 529 247

5,000 ...................................................................... 638 550 254

5,500 ...................................................................... 688 565 261

6,000 ...................................................................... 735 575 268

7,000 ...................................................................... 770 595 280

8,000 ...................................................................... 805 615 290

10,000 .................................................................... 835 635 300

Air National Guard:

5,000 ...................................................................... 333 335 251

6,000 ...................................................................... 403 394 260

7,000 ...................................................................... 472 453 269

8,000 ...................................................................... 539 512 278

9,000 ...................................................................... 606 571 287

10,000 .................................................................... 673 630 296

11,000 .................................................................... 740 688 305

12,000 .................................................................... 807 742 314

13,000 .................................................................... 873 795 323

14,000 .................................................................... 939 848 332

15,000 .................................................................... 1,005 898 341

16,000 .................................................................... 1,067 948 350

17,000 .................................................................... 1,126 998 359

18,000 .................................................................... 1,185 1,048 368

19,000 .................................................................... 1,235 1,098 377

20,000 .................................................................... 1,283 1,148 380.

1 ‘‘(2) Of the total number of members of the Naval

2 Reserve who are serving on full-time reserve component
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1 duty at the end of any fiscal year, the number of those

2 members who may be serving in each of the grades of lieu3 tenant commander, commander, and captain may not, as

4 of the end of that fiscal year, exceed the number deter5 mined 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 com- mander 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.

6 ‘‘(b) DETERMINATIONS BY INTERPOLATION.—If the

7 total number of members of a reserve component serving

8 on full-time reserve component duty is between any two

9 consecutive numbers in the first column of the appropriate

10 table in paragraph (1) or (2) of subsection (a), the cor11 responding authorized strengths for each of the grades

12 shown in that table for that component are determined

13 by mathematical interpolation between the respective

14 numbers of the two strengths. If the total number of mem15 bers of a reserve component serving on full-time reserve

16 component duty is more or less than the highest or lowest

17 number, respectively, set forth in the first column of the

18 appropriate table in paragraph (1) or (2) of subsection
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1 (a), the Secretary concerned shall fix the corresponding

2 strengths for the grades shown in that table at the same

3 proportion as is reflected in the nearest limit shown in

4 the table.

5 ‘‘(c) REALLOCATIONS TO LOWER GRADES.—When6 ever the number of officers serving in any grade for duty

7 described in subsection (a) is less than the number author8 ized for that grade under this section, the difference be9 tween the two numbers may be applied to increase the

10 number authorized under this section for any lower grade.

11 ‘‘(d) SECRETARIAL WAIVER.—Upon determining that

12 it is in the national interest to do so, the Secretary of

13 Defense may increase for a particular fiscal year the num14 ber of reserve officers that may be on full-time reserve

15 component duty for a reserve component in a grade re16 ferred to in a table in subsection (a) by a number that

17 does not exceed the number equal to 5 percent of the max18 imum number specified for the grade in that table.

19 ‘‘(e) FULL-TIME RESERVE COMPONENT DUTY DE20 FINED.—In this section, the term ‘full-time reserve com21 ponent duty’ means the following duty:

22 ‘‘(1) Active duty described in sections 10211,

23 10302, 10303, 10304, 10305, 12310, or 12402 of

24 this title.
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1 ‘‘(2) Full-time National Guard duty (other than

2 for training) under section 502(f) of title 32.

3 ‘‘(3) Active duty described in section 708 of

4 title 32.’’.

5 (b) SENIOR ENLISTED MEMBERS.—The text of sec6 tion 12012 of title 10, United States Code, is amended

7 to read as follows:

8 ‘‘(a) LIMITATIONS.—(1) Of the total number of mem9 bers of a reserve component who are serving on full-time

10 reserve component duty at the end of any fiscal year, the

11 number of those members in each of pay grades of

12 E–8 and E–9 who may be serving on active duty under

13 section 10211 or 12310, or on full-time National Guard

14 duty under the authority of section 502(f) of title 32

15 (other than for training) in connection with organizing,

16 administering, recruiting, instructing, or training the re17 serve components or the National Guard may not, as of

18 the end of that fiscal year, exceed the number determined

19 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

Army Reserve:

10,000 ...................................................................................................... 1,052 154

11,000 ...................................................................................................... 1,126 168

12,000 ...................................................................................................... 1,195 180

13,000 ...................................................................................................... 1,261 191

14,000 ...................................................................................................... 1,327 202

15,000 ...................................................................................................... 1,391 213

16,000 ...................................................................................................... 1,455 224

17,000 ...................................................................................................... 1,519 235

18,000 ...................................................................................................... 1,583 246

19,000 ...................................................................................................... 1,647 257

20,000 ...................................................................................................... 1,711 268

21,000 ...................................................................................................... 1,775 278
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‘‘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

Army National Guard:

20,000 ...................................................................................................... 1,650 550

22,000 ...................................................................................................... 1,775 615

24,000 ...................................................................................................... 1,900 645

26,000 ...................................................................................................... 1,945 675

28,000 ...................................................................................................... 1,945 705

30,000 ...................................................................................................... 1,945 725

32,000 ...................................................................................................... 1,945 730

34,000 ...................................................................................................... 1,945 735

36,000 ...................................................................................................... 1,945 738

38,000 ...................................................................................................... 1,945 741

40,000 ...................................................................................................... 1,945 743

42,000 ...................................................................................................... 1,945 743

Naval Reserve:

10,000 ...................................................................................................... 340 143

11,000 ...................................................................................................... 364 156

12,000 ...................................................................................................... 386 169

13,000 ...................................................................................................... 407 182

14,000 ...................................................................................................... 423 195

15,000 ...................................................................................................... 435 208

16,000 ...................................................................................................... 447 221

17,000 ...................................................................................................... 459 234

18,000 ...................................................................................................... 471 247

19,000 ...................................................................................................... 483 260

20,000 ...................................................................................................... 495 273

21,000 ...................................................................................................... 507 286

22,000 ...................................................................................................... 519 299

23,000 ...................................................................................................... 531 312

24,000 ...................................................................................................... 540 325

Marine Corps Reserve:

1,100 ........................................................................................................ 50 11

1,200 ........................................................................................................ 55 12

1,300 ........................................................................................................ 60 13

1,400 ........................................................................................................ 65 14

1,500 ........................................................................................................ 70 15

1,600 ........................................................................................................ 75 16

1,700 ........................................................................................................ 80 17

1,800 ........................................................................................................ 85 18

1,900 ........................................................................................................ 89 19

2,000 ........................................................................................................ 93 20

2,100 ........................................................................................................ 96 21

2,200 ........................................................................................................ 99 22

2,300 ........................................................................................................ 101 23

2,400 ........................................................................................................ 103 24

2,500 ........................................................................................................ 105 25

2,600 ........................................................................................................ 107 26

Air Force Reserve:

500 ........................................................................................................... 75 40

1,000 ........................................................................................................ 145 75

1,500 ........................................................................................................ 208 105

2,000 ........................................................................................................ 270 130

2,500 ........................................................................................................ 325 150

3,000 ........................................................................................................ 375 170

3,500 ........................................................................................................ 420 190

4,000 ........................................................................................................ 460 210

4,500 ........................................................................................................ 495 230

5,000 ........................................................................................................ 530 250

5,500 ........................................................................................................ 565 270

6,000 ........................................................................................................ 600 290

7,000 ........................................................................................................ 670 330

8,000 ........................................................................................................ 740 370

10,000 ...................................................................................................... 800 400

Air National Guard

5,000 ........................................................................................................ 1,020 405

6,000 ........................................................................................................ 1,070 435
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‘‘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

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.

1 ‘‘(b) DETERMINATIONS BY INTERPOLATION.—If the

2 total number of members of a reserve component serving

3 on full-time reserve component duty is between any two

4 consecutive numbers in the first column of the appropriate

5 table in paragraph (1) or (2) of subsection (a), the cor6 responding authorized strengths for each of the grades

7 shown in that table for that component are determined

8 by mathematical interpolation between the respective

9 numbers of the two strengths. If the total number of mem10 bers of a reserve component serving on full-time reserve

11 component duty is more or less than the highest or lowest

12 number, respectively, set forth in the first column of the

13 table in subsection (a), the Secretary concerned shall fix

14 the corresponding strengths for the grades shown in the

15 table at the same proportion as is reflected in the nearest

16 limit shown in the table.

17 ‘‘(c) REALLOCATIONS TO LOWER GRADE.—Whenever

18 the number of officers serving in pay grade E–9 for duty

19 described in subsection (a) is less than the number author-
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1 ized for that grade under this section, the difference be2 tween the two numbers may be applied to increase the

3 number authorized under this section for pay grade E–

4 8.

5 ‘‘(d) SECRETARIAL WAIVER.—Upon determining that

6 it is in the national interest to do so, the Secretary of

7 Defense may increase for a particular fiscal year the num8 ber of reserve enlisted members that may be on active duty

9 or full-time National Guard duty as described in sub10 section (a) for a reserve component in a pay grade referred

11 to in a table in subsection (a) by a number that does not

12 exceed the number equal to 5 percent of the maximum

13 number specified for that grade and reserve component

14 in the table.

15 ‘‘(e) FULL-TIME RESERVE COMPONENT DUTY DE16 FINED.—In this section, the term ‘full-time reserve com17 ponent duty’ has the meaning given the term in section

18 12011(e) of this title.’’.

19 (c) EFFECTIVE DATE.—The amendments made by

20 this section shall take effect on October 1, 2001.
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1 SEC. 416. STRENGTH AND GRADE LIMITATION ACCOUNT2 ING FOR RESERVE COMPONENT MEMBERS

3 ON ACTIVE DUTY IN SUPPORT OF A CONTIN4 GENCY OPERATION.

5 (a) ACTIVE DUTY STRENGTH ACCOUNTING.—Section

6 115(c)(1) of title 10, United States Code, is amended to

7 read as follows:

8 ‘‘(1) increase the end strength authorized pur9 suant to subsection (a)(1)(A) for a fiscal year for

10 any of the armed forces by—

11 ‘‘(A) a number equal to not more than 1

12 percent of that end strength; and

13 ‘‘(B) the number (if any) of the members

14 of the reserve components that, as determined

15 by the Secretary, are on active duty under sec16 tion 12301(d) of this title in support of a con17 tingency operation.’’.

18 (b) LIMITATION ON AUTHORIZED DAILY AVERAGE

19 FOR MEMBERS IN PAY GRADES E–8 AND E–9 ON ACTIVE

20 DUTY.—Section 517 of such title is amended by adding

21 at the end the following new paragraph:

22 ‘‘(d) The Secretary of Defense may increase the au23 thorized daily average number of enlisted members on ac24 tive duty in an armed force in pay grade E–8 or

25 E–9 in a fiscal year, as determined under subsection (a),

26 by the number (if any) of enlisted members of a reserve
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1 component of that armed force in that pay grade who, as

2 determined by the Secretary, are on active duty under sec3 tion 12301(d) of this title in support of a contingency op4 eration.’’.

5 (c) LIMITATION ON AUTHORIZED STRENGTHS FOR

6 COMMISSIONED OFFICERS IN PAY GRADES O–4, O–5,

7 AND O–6 ON ACTIVE DUTY.—Section 523(b) of such title

8 is amended—

9 (1) in paragraphs (1) and (2) of subsection (a),

10 by striking ‘‘Except as provided in subsection (c)’’

11 and inserting ‘‘Except as provided in subsections (c)

12 and (e)’’; and

13 (2) by adding at the end the following new sub14 section:

15 ‘‘(e) The Secretary of Defense may increase the limi16 tation on the total number of commissioned officers of an

17 armed force authorized to be serving on active duty at the

18 end of any fiscal year in the grade of O–4, O–5, or

19 O–6, determined under subsection (a), by the number (if

20 any) of commissioned officers of a reserve component of

21 that armed force in that grade who, as determined by the

22 Secretary, are serving on active duty under section

23 12301(d) of this title in support of a contingency oper24 ation.’’.
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1 (d) LIMITATION ON AUTHORIZED STRENGTHS FOR

2 GENERAL AND FLAG OFFICERS ON ACTIVE DUTY.—Sec3 tion 526(a) of such title is amended—

4 (1) by striking ‘‘LIMITATIONS.—The’’ and in5 serting ‘‘LIMITATIONS.—(1) Except as provided in

6 paragraph (2), the’’;

7 (2) by redesignating paragraphs (1), (2), (3),

8 and (4) as subparagraphs (A), (B), (C), and (D), re9 spectively; and

10 (3) by adding at the end the following new

11 paragraph (2):

12 ‘‘(2) The Secretary of Defense may increase the limi13 tation on the number of general and flag officers on active

14 duty, determined under paragraph (1), by the number (if

15 any) of reserve component general and flag officers who,

16 as determined by the Secretary, are serving on active duty

17 under section 12301(d) of this title in support of a contin18 gency operation.’’.

19 Subtitle C—Authorization of

20 Appropriations

21 SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILI22 TARY PERSONNEL.

23 There is hereby authorized to be appropriated to the

24 Department of Defense for military personnel for fiscal

25 year 2002 a total of $82,396,900,000. The authorization
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1 in the preceding sentence supersedes any other authoriza2 tion of appropriations (definite or indefinite) for such pur3 pose for fiscal year 2002.

4 TITLE V—MILITARY PERSONNEL

5 POLICY

6 Subtitle A—Officer Personnel

7 Policy

8 SEC. 501. GENERAL OFFICER POSITIONS.

9 (a) INCREASED GRADE FOR VICE CHIEF OF NA10 TIONAL GUARD BUREAU.—Section 10505(c) of title 10,

11 United States Code, is amended by striking ‘‘major gen12 eral’’ and inserting ‘‘lieutenant general’’.

13 (b) INCREASED GRADE FOR HEADS OF NURSE

14 CORPS OF THE ARMED FORCES.—(1) Section 3069(b) of

15 title 10, United States Code, is amended by striking ‘‘brig16 adier general’’ in the second sentence and inserting

17 ‘‘major general’’.

18 (2) The first sentence of section 5150(c) of such title

19 is amended—

20 (A) by inserting ‘‘rear admiral (upper half) in

21 the case of an officer in the Nurse Corps or’’ after

22 ‘‘for promotion to the grade of’’; and

23 (B) by inserting ‘‘in the case of an officer in

24 the Medical Service Corps’’ after ‘‘rear admiral

25 (lower half)’’.
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1 (3) Section 8069(b) of such title is amended by strik2 ing ‘‘brigadier general’’ in the second sentence and insert3 ing ‘‘major general’’.

4 (c) APPOINTMENT AND GRADE OF CHIEF OF ARMY

5 VETERINARY CORPS.—(1) Chapter 307 of title 10, United

6 States Code, is amended by inserting after section 3070

7 the following new section 3071:

8 ‘‘§ 3071. Veterinary Corps: composition; Chief and as9 sistant chief; appointment; grade

10 ‘‘(a) COMPOSITION.—The Veterinary Corps consists

11 of the Chief and assistant chief of that corps and other

12 officers in grades prescribed by the Secretary of the Army.

13 ‘‘(b) CHIEF.—The Secretary of the Army shall ap14 point the Chief from the officers of the Regular Army in

15 that corps whose regular grade is above lieutenant colonel

16 and who are recommended by the Surgeon General. An

17 appointee who holds a lower regular grade shall be ap18 pointed in the regular grade of brigadier general. The

19 Chief serves during the pleasure of the Secretary, but not

20 for more than four years, and may not be reappointed to

21 the same position.

22 ‘‘(c) ASSISTANT CHIEF.—The Surgeon General shall

23 appoint the assistant chief from the officers of the Regular

24 Army in that corps whose regular grade is above lieuten25 ant colonel. The assistant chief serves during the pleasure
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1 of the Surgeon General, but not for more than four years

2 and may not be reappointed to the same position.’’.

3 (2) The table of sections at the beginning of such

4 chapter is amended by inserting after the item relating

5 to section 3070 the following new item:

‘‘3071. Veterinary Corps: composition; Chief and assistant chief; appointment;

grade.’’.

6 (d) EXCLUSIONS FROM LIMITATION OF ACTIVE

7 DUTY OFFICERS IN GRADES ABOVE MAJOR GENERAL.—

8 Section 525(b) of title 10, United States Code, is

9 amended—

10 (1) in paragraph (2)(B), by striking ‘‘16.2 per11 cent’’ and inserting ‘‘17.5 percent’’;

12 (2) in paragraph (3)—

13 (A) by inserting ‘‘(A)’’ after ‘‘(3)’’; and

14 (B) by adding at the end the following new

15 subparagraph:

16 ‘‘(B) An officer while serving as the Senior Military

17 Assistant to the Secretary of Defense, if serving in the

18 grade of general or lieutenant general, or admiral or vice

19 admiral, is in addition to the number that would otherwise

20 be permitted for his armed force for that grade under

21 paragraph (1) or (2).’’; and

22 (3) by striking paragraph (6) and inserting the

23 following:
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1 ‘‘(6)(A) An officer while serving in a position named

2 in subparagraph (B) is in addition to the number that

3 would otherwise be permitted for that officer’s armed force

4 for officers serving on active duty in grades above major

5 general under paragraph (1).

6 ‘‘(B) Subparagraph (A) applies with respect to the

7 following positions:

8 ‘‘(i) Chief of the National Guard Bureau.

9 ‘‘(ii) Vice Chief of the National Guard Bu10 reau.’’.

11 SEC. 502. REDUCTION OF TIME-IN-GRADE REQUIREMENT

12 FOR ELIGIBILITY FOR PROMOTION OF FIRST

13 LIEUTENANTS AND LIEUTENANTS (JUNIOR

14 GRADE).

15 Paragraph (1) of section 619(a) of title 10, United

16 States Code, is amended by striking ‘‘the following period

17 of service’’ and all that follows through the end of the

18 paragraph and inserting ‘‘eighteen months of service in

19 the grade in which he holds a permanent appointment.’’.
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1 SEC. 503. PROMOTION OF OFFICERS TO THE GRADE OF

2 CAPTAIN IN THE ARMY, AIR FORCE, OR MA3 RINE CORPS OR TO THE GRADE OF LIEUTEN4 ANT IN THE NAVY WITHOUT SELECTION

5 BOARD ACTION.

6 (a) ACTIVE-DUTY LIST PROMOTIONS.—(1) Section

7 611(a) of title 10, United States Code, is amended by

8 striking ‘‘Under’’ and inserting ‘‘Except in the case of pro9 motions recommended under section 624(a)(3) of this

10 title, under’’.

11 (2) Section 624(a) of such title is amended by adding

12 at the end the following new paragraph (3):

13 ‘‘(3) The President may, upon a recommendation of

14 the Secretary of the military department concerned ap15 proved by the President, promote to the grade of captain

16 (for officers of the Regular Army, Regular Air Force, or

17 Regular Marine Corps) or lieutenant (for officers of the

18 Regular Navy) all fully qualified officers on the active-duty

19 list in the permanent or temporary grade of first lieuten20 ant or lieutenant (junior grade), respectively, who would

21 be eligible for consideration for promotion to the next

22 higher grade by a selection board convened under section

23 611(a) of this title. The Secretary of a military depart24 ment may make such a recommendation whenever the Sec25 retary determines that all such officers are needed in the

26 next higher grade to accomplish mission objectives. Pro-
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1 motions under this paragraph shall be effectuated under

2 regulations prescribed by the Secretary of the military de3 partment concerned.’’.

4 (3) Section 631 of such title is amended by adding

5 at the end the following new subsection (d):

6 ‘‘(d) For the purposes of this chapter—

7 ‘‘(1) a recommendation made by the Secretary

8 of the military department concerned under section

9 624(a)(3) of this title that is approved by the Presi10 dent shall be treated in the same manner as a report

11 of a promotion selection board convened under sec12 tion 611(a) of this title that is approved by the

13 President; and

14 ‘‘(2) an officer of the Regular Army, Regular

15 Air Force, or Regular Marine Corps who holds the

16 regular grade of first lieutenant, and an officer of

17 the Regular Navy who holds the regular grade of

18 lieutenant (junior grade), shall be treated as having

19 failed of selection for promotion if the Secretary of

20 the military department concerned determines that

21 the officer would be eligible for consideration for

22 promotion to the next higher grade by a selection

23 board convened under section 611(a) of this title but

24 is not fully qualified for promotion when recom25 mending for promotion under section 624(a)(3) of
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1 this title all fully qualified officers of the officer’s

2 armed force in such grade who would be eligible for

3 such consideration.’’.

4 (b) RESERVE ACTIVE-STATUS LIST PROMOTIONS.—

5 (1) Section 14101(a) of such title is amended by striking

6 ‘‘Whenever’’ and inserting ‘‘Except in the case of pro7 motions recommended under section 14308(b)(4) of this

8 title, whenever’’.

9 (2) Section 14308(b) of such title is amended by add10 ing at the end the following new paragraph (4):

11 ‘‘(4) The President may, upon a recommendation of

12 the Secretary of the military department concerned ap13 proved by the President, promote to the grade of captain

14 (for officers of a reserve component of the Army, Air

15 Force, or Marine Corps) or lieutenant (for officers of the

16 Naval Reserve) all fully qualified officers on the reserve

17 active-status list in the permanent grade of first lieutenant

18 or lieutenant (junior grade), respectively, who would be eli19 gible for consideration for promotion to the next higher

20 grade by a selection board convened under section

21 14101(a) of this title. The Secretary of a military depart22 ment may make such a recommendation whenever the Sec23 retary determines that all such officers are needed in the

24 next higher grade to accomplish mission objectives. Pro25 motions under this paragraph shall be effectuated under
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1 regulations prescribed by the Secretary of the military de2 partment concerned.’’.

3 (3) Section 14504 of such title is amended by adding

4 at the end the following new subsection (c):

5 ‘‘(c) For the purposes of this chapter—

6 ‘‘(1) a recommendation made by the Secretary

7 of the military department concerned under section

8 14308(b)(4) of this title that is approved by the

9 President shall be treated the same as a report of

10 a promotion selection board convened under section

11 14101(a) of this title that is approved by the Presi12 dent; and

13 ‘‘(2) an officer on a reserve active-status list

14 who holds the grade of first lieutenant (in the case

15 of an officer in a reserve component of the Army,

16 Air Force, or Marine Corps) or the grade of lieuten17 ant (junior grade) (in the case of an officer of the

18 Naval Reserve) shall be treated as having failed of

19 selection for promotion if the Secretary of the mili20 tary department concerned determines that the offi21 cer would be eligible for consideration for promotion

22 to the next higher grade by a selection board con23 vened under section 14101(a) of this title but is not

24 fully qualified for promotion when recommending for

25 promotion under section 14308(b)(4) of this title all
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1 fully qualified officers of that officer’s reserve com2 ponent in such grade who would be eligible for such

3 consideration.’’.

4 SEC. 504. AUTHORITY TO ADJUST DATE OF RANK.

5 (a) ACTIVE DUTY OFFICERS.—Subsection 741(d) of

6 title 10, United States Code, is amended, by adding at

7 the end the following new paragraph (4):

8 ‘‘(4)(A) The Secretary concerned may adjust the date

9 of rank of an officer appointed to a higher grade under

10 section 624(a) of this title if the appointment is to a grade

11 below O–7 and is delayed by reason of unusual cir12 cumstances that cause an unintended delay in the proc13 essing or approval of—

14 ‘‘(i) a report of a selection board recommending

15 the appointment of the officer to that grade; or

16 ‘‘(ii) the promotion list established on the basis

17 of that report.

18 ‘‘(B) The adjusted date of rank applicable to the

19 grade of an officer under subparagraph (A) shall be con20 sistent with the officer’s position on the promotion list for

21 that grade and competitive category when additional offi22 cers in that grade and competitive category were needed

23 and shall also be consistent with compliance with the ap24 plicable authorized strengths for officers in that grade and

25 competitive category.
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1 ‘‘(C) The adjusted date of rank applicable to the

2 grade of an officer under subparagraph (A) shall be the

3 effective date for the officer’s pay and allowances for the

4 grade and for the officer’s position on the active-duty list.

5 ‘‘(D) In the case of an officer whose appointment to

6 a higher grade under this section is made by and with

7 the advice and consent of the Senate, the Secretary con8 cerned shall transmit to the Committee on Armed Services

9 of the Senate a notification of any adjustment of a date

10 of rank for the appointment of an officer to a higher grade

11 under subparagraph (A) to a date that is prior to the date

12 of the advice and consent of the Senate on the appoint13 ment. The notification shall include the name of the officer

14 and a discussion of the reasons for the adjustment.’’.

15 (b) RESERVE OFFICERS.—Section 14308(c) of such

16 title is amended—

17 (1) by redesignating paragraph (2) as para18 graph (3);

19 (2) by inserting after paragraph (1) the fol20 lowing new paragraph (2):

21 ‘‘(2)(A) The Secretary concerned may adjust the date

22 of rank of an officer appointed to a higher grade under

23 this section if the appointment is to a grade below O–7

24 and is delayed by reason of unusual circumstances that
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1 cause an unintended delay in the processing or approval

2 of—

3 ‘‘(i) a report of a selection board recommending

4 the appointment of the officer to that grade; or

5 ‘‘(ii) the promotion list established on the basis

6 of that report.

7 ‘‘(B) The adjusted date of rank applicable to the

8 grade of an officer under subparagraph (A) shall be con9 sistent with the officer’s position on the promotion list for

10 that grade and competitive category when additional offi11 cers in that grade and competitive category were needed

12 and shall also be consistent with compliance with the ap13 plicable authorized strengths for officers in that grade and

14 competitive category.

15 ‘‘(C) The adjusted date of rank applicable to the

16 grade of an officer under subparagraph (A) shall be the

17 effective date for the officer’s pay and allowances for the

18 grade and for the officer’s position on the active-duty list.

19 ‘‘(D) In the case of an officer whose appointment to

20 a higher grade under this section is made by and with

21 the advice and consent of the Senate, the Secretary con22 cerned shall transmit to the Committee on Armed Services

23 of the Senate a notification of any adjustment of a date

24 of rank for the appointment of an officer to a higher grade

25 under subparagraph (A) to a date that is prior to the date
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1 of the advice and consent of the Senate on the appoint2 ment. The notification shall include the name of the officer

3 and a discussion of the reasons for the adjustment.’’; and

4 (3) in paragraph (3), as redesignated by para5 graph (1), by inserting ‘‘provided in paragraph (2)

6 or as otherwise’’ after ‘‘Except as’’.

7 SEC. 505. EXTENSION OF DEFERMENTS OF RETIREMENT OR

8 SEPARATION FOR MEDICAL REASONS.

9 Section 640 of title 10, United States Code, is

10 amended—

11 (1) by inserting ‘‘(a) DEFERMENT.—’’ before

12 ‘‘The Secretary’’; and

13 (2) by adding at the end the following new sub14 section:

15 ‘‘(b) AUTHORITY TO EXTEND.—In the case of an of16 ficer whose retirement or separation under any of sections

17 632 through 638, or section 1251, of this title is deferred

18 under subsection (a), the Secretary of the military depart19 ment concerned may extend the deferment by an addi20 tional period of not more than 30 days following the com21 pletion of the evaluation of the officer’s physical condition

22 if the Secretary determines that continuation of the officer

23 would facilitate the officer’s transition to civilian life.’’.
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1 SEC. 506. EXEMPTION FROM ADMINISTRATIVE LIMITA2 TIONS OF RETIRED MEMBERS ORDERED TO

3 ACTIVE DUTY AS DEFENSE AND SERVICE

4 ATTACHE ́ S.

5 (a) LIMITATION OF PERIOD OF RECALLED SERV6 ICE.—Section 688(e)(2) of title 10, United States Code,

7 is amended by adding at the end the following new sub8 paragraph (D):

9 ‘‘(D) An officer who is assigned to duty as a

10 defense attache ́ or service attache ́ for the period of

11 active duty to which ordered.’’.

12 (b) LIMITATION ON NUMBER OF RECALLED OFFI13 CERS ON ACTIVE DUTY.—Section 690(b)(2) of such title

14 is amended by adding at the end the following new sub15 paragraph (E):

16 ‘‘(E) An officer who is assigned to duty as a de17 fense attache ́ or service attache ́ for the period of ac18 tive duty to which ordered.’’.

19 (c) APPLICABILITY.—The amendments made by sub20 sections (a) and (b) shall apply with respect to officers

21 serving on active duty as a defense attache ́ or service

22 attache ́ on or after the date of the enactment of this Act.
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1 SEC. 507. CERTIFICATIONS OF SATISFACTORY PERFORM2 ANCE FOR RETIREMENTS OF OFFICERS IN

3 GRADES ABOVE MAJOR GENERAL AND REAR

4 ADMIRAL.

5 Section 1370(c) of title 10, United States Code, is

6 amended by adding at the end the following new para7 graph:

8 ‘‘(3)(A) The Secretary of Defense may delegate au9 thority to make a certification for an officer under para10 graph (1) to the Under Secretary of Defense for Personnel

11 and Readiness or the Deputy Under Secretary of Defense

12 for Personnel and Readiness. The certification authority

13 may not be delegated to any other official.

14 ‘‘(B) If an official to whom authority is delegated

15 under subparagraph (A) determines in the case of an offi16 cer that there is potentially adverse information on the

17 officer and that the information has not previously been

18 reported to the Senate in connection with the action of

19 the Senate on a previous appointment of that officer under

20 section 601 of this title, the official may not exercise the

21 authority in that case, but shall refer the case to the Sec22 retary of Defense. The Secretary of Defense shall person23 ally issue or withhold a certification for an officer under

24 paragraph (1) in any case referred to the Secretary under

25 the preceding sentence.’’.
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1 SEC. 508. EFFECTIVE DATE OF MANDATORY SEPARATION

2 OR RETIREMENT OF REGULAR OFFICER DE3 LAYED BY A SUSPENSION OF CERTAIN LAWS

4 UNDER EMERGENCY AUTHORITY OF THE

5 PRESIDENT.

6 Section 12305 of title 10, United States Code, is

7 amended by adding at the end the following new sub8 section (c):

9 ‘‘(c) In the case of an officer of the Regular Army,

10 Regular Navy, Regular Air Force, or Regular Marine

11 Corps whose mandatory separation or retirement under

12 section 632, 633, 634, 635, 636, 637, or 1251 of this title

13 is delayed by reason of a suspension under this section,

14 the separation or retirement of the officer upon termi15 nation of the suspension shall take effect on the date elect16 ed by the officer, but not later than 90 days after the date

17 of the termination of the suspension.’’.

18 SEC. 509. DETAIL AND GRADE OF OFFICER IN CHARGE OF

19 THE UNITED STATES NAVY BAND.

20 Section 6221 of title 10, United States Code, is

21 amended—

22 (1) by inserting ‘‘(a) ESTABLISHMENT.—’’; and

23 (2) by adding at the end the following new sub24 section:
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1 ‘‘(b) OFFICER IN CHARGE.—(1) An officer serving in

2 a grade above lieutenant may be detailed as Officer in

3 Charge of the United States Navy Band.

4 ‘‘(2) While serving as Officer in Charge of the United

5 States Navy Band, an officer holds the grade of captain

6 if appointed to that grade by the President, by and with

7 the advice and consent of the Senate, notwithstanding the

8 limitation in section 5596(d) of this title.’’.

9 Subtitle B—Reserve Component

10 Personnel Policy

11 SEC. 511. REAUTHORIZATION AND EXPANSION OF TEM12 PORARY WAIVER OF THE REQUIREMENT FOR

13 A BACCALAUREATE DEGREE FOR PRO14 MOTION OF CERTAIN RESERVE OFFICERS OF

15 THE ARMY.

16 (a) REAUTHORIZATION.—Subsection (b) of section

17 516 of the Strom Thurmond National Defense Authoriza18 tion Act for Fiscal Year 1999 (Public Law 105–261; 112

19 Stat. 2008; 10 U.S.C. 12205 note) is amended by striking

20 ‘‘September 30, 2000’’ and inserting ‘‘September 30,

21 2003’’.

22 (b) EXPANSION OF ELIGIBILITY.—Subsection (a) of

23 such section is amended by striking ‘‘before the date of

24 the enactment of this Act’’.
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1 SEC. 512. STATUS LIST OF RESERVE OFFICERS ON ACTIVE

2 DUTY FOR A PERIOD OF THREE YEARS OR

3 LESS.

4 (a) CLARIFICATION.—Section 641(1)(D) of title 10,

5 United States Code, is amended to read as follows:

6 ‘‘(D) on active duty under section

7 12301(d) of this title, other than as provided

8 under subparagraph (C), under a call or order

9 to active duty specifying a period of three years

10 or less and continuation (pursuant to regula11 tions prescribed by the Secretary concerned) on

12 the reserve active-status list;’’.

13 (b) RETROACTIVE ADJUSTMENTS.—(1) The Sec14 retary of the military department concerned—

15 (A) may place on the active-duty list of the

16 armed force concerned any officer under the juris17 diction of the Secretary who was placed on the re18 serve active-status list under subparagraph (D) of

19 section 641(1) of title 10, United States Code, as

20 added by section 521(2) of the Floyd D. Spence Na21 tional Defense Authorization Act for Fiscal Year

22 2001 (as enacted into law by Public Law 106–398;

23 114 Stat. 1654A–108); and

24 (B) for the purposes of chapter 36 of such title

25 (other than section 640 of such title and, in the case

26 of a warrant officer, section 628 of such title), shall
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1 treat an officer placed on the active-duty list under

2 subparagraph (A) as having been on the active-duty

3 list continuously from the date on which the officer

4 was placed on the reserve active-status list as de5 scribed in that subparagraph.

6 (2) The Secretary of the military department con7 cerned may place on the reserve active-status list of the

8 armed force concerned, effective as of the date of the en9 actment of this Act, any officer who was placed on the

10 active-duty list before that date and after October 29,

11 1997, while on active duty under section 12301(d) of title

12 10, United States Code, other than as described under sec13 tion 641(1)(C) of such title, under a call or order to active

14 duty specifying a period of three years or less.

15 SEC. 513. EQUAL TREATMENT OF RESERVES AND FULL16 TIME ACTIVE DUTY MEMBERS FOR PUR17 POSES OF MANAGING DEPLOYMENTS OF PER18 SONNEL.

19 (a) RESIDENCE OF RESERVES AT HOME STATION.—

20 Section 991(b)(2) of title 10, United States Code, is

21 amended to read as follows:

22 ‘‘(2) In the case of a member of a reserve component

23 who is performing active service pursuant to orders that

24 do not establish a permanent change of station, the hous25 ing referred to in paragraph (1) is any housing (which
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1 may include the member’s residence) that the member

2 usually occupies for use during off-duty time when on gar3 rison duty at the member’s permanent duty station or

4 homeport, as the case may be.’’.

5 (b) EFFECTIVE DATE.—This section and the amend6 ment made by this section shall take effect on October

7 1, 2001, and shall apply with respect to duty performed

8 on or after that date.

9 SEC. 514. MODIFICATION OF PHYSICAL EXAMINATION RE10 QUIREMENTS FOR MEMBERS OF THE INDI11 VIDUAL READY RESERVE.

12 Section 10206 of title 10, United States Code, is

13 amended—

14 (1) in subsection (a)—

15 (A) in the first sentence—

16 (i) by striking ‘‘Ready Reserve’’ and

17 inserting ‘‘Selected Reserve’’; and

18 (ii) by striking ‘‘his’’ and inserting

19 ‘‘the member’s’’; and

20 (B) in the second sentence, by striking

21 ‘‘Each Reserve’’ and inserting the following:

22 ‘‘(c) Each Reserve’’;

23 (2) by redesignating subsection (b) as sub24 section (d); and
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1 (3) by inserting after subsection (a) the fol2 lowing new subsection (b):

3 ‘‘(b) A member of the Individual Ready Reserve or

4 inactive National Guard shall be examined for physical fit5 ness as necessary to determine the member’s physical fit6 ness for military duty or for promotion, attendance at a

7 school of the armed forces, or other action related to ca8 reer progression.’’.

9 SEC. 515. MEMBERS OF RESERVE COMPONENTS AFFLICTED

10 WHILE REMAINING OVERNIGHT AT DUTY

11 STATION WITHIN COMMUTING DISTANCE OF

12 HOME.

13 (a) MEDICAL AND DENTAL CARE FOR MEMBERS.—

14 Section 1074a(a)(3) of title 10, United States Code, is

15 amended by inserting before the period at the end the fol16 lowing: ‘‘or if the member remained overnight for another

17 reason authorized under applicable regulations’’.

18 (b) MEDICAL AND DENTAL CARE FOR DEPEND19 ENTS.—Section 1076(a)(2)(C) of title 10, United States

20 Code, is amended by inserting before the period at the

21 end the following: ‘‘or if the member remained overnight

22 for another reason authorized under applicable regula23 tions’’.

24 (c) ELIGIBILITY FOR DISABILITY RETIREMENT OR

25 SEPARATION.—(1) Section 1204(2)(B)(iii) of title 10,
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1 United States Code, is amended by inserting before the

2 semicolon at the end the following: ‘‘or if the member re3 mained overnight for another reason authorized under ap4 plicable regulations’’.

5 (2) Section 1206(2)(A)(iii) of title 10, United States

6 Code, is amended by inserting before the semicolon the

7 following: ‘‘or if the member remained overnight for an8 other reason authorized under applicable regulations’’.

9 (d) RECOVERY, CARE, AND DISPOSITION OF RE10 MAINS.—Section 1481(a)(2)(D) of title 10, United States

11 Code, is amended by inserting before the semicolon at the

12 end the following: ‘‘or if the member remained overnight

13 for another reason authorized under applicable regula14 tions’’.

15 (e) ENTITLEMENT TO BASIC PAY.—Section 204 of

16 title 37, United States Code, is amended—

17 (1) in subsection (g)(1)(D), by inserting before

18 the semicolon the following: ‘‘or if the member re19 mained overnight for another reason authorized

20 under applicable regulations’’; and

21 (2) in subsection (h)(1)(D), by inserting before

22 the semicolon the following: ‘‘or if the member re23 mained overnight for another reason authorized

24 under applicable regulations’’.
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1 (f) COMPENSATION FOR INACTIVE-DUTY TRAIN2 ING.—Section 206(a)(3)(C) of title 37, United States

3 Code, is amended by inserting before the period at the

4 end the following: ‘‘or if the member remained overnight

5 for another reason authorized under applicable regula6 tions’’.

7 SEC. 516. RETIREMENT OF RESERVE PERSONNEL WITHOUT

8 REQUEST.

9 (a) RETIRED RESERVE.—Section 10154(2) of title

10 10, United States Code, is amended by striking ‘‘upon

11 their request’’.

12 (b) RETIREMENT FOR FAILURE OF SELECTION OF

13 PROMOTION.—(1) Paragraph (2) of section 14513 of such

14 title is amended by striking ‘‘, if the officer is qualified

15 and applies for such transfer’’ and inserting ‘‘if the officer

16 is qualified for the transfer and does not request (in ac17 cordance with regulations prescribed by the Secretary con18 cerned) not to be transferred to the Retired Reserve’’.

19 (2)(A) The heading for such section is amended to

20 read as follows:

21 ‘‘§ 14513. Transfer, retirement, or discharge for fail22 ure of selection of promotion’’.

23 (B) The item relating to such section in the table of

24 sections at the beginning of chapter 1407 of title 10,

25 United States Code, is amended to read as follows:
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‘‘14513. Transfer, retirement, or discharge for failure of selection of promotion.’’.

1 (c) RETIREMENT FOR YEARS OF SERVICE OR AFTER

2 SELECTION FOR EARLY REMOVAL.—Section 14514 of

3 such title is amended—

4 (1) in paragraph (1), by striking ‘‘, if the offi5 cer is qualified and applies for such transfer’’ and

6 inserting ‘‘if the officer is qualified for the transfer

7 and does not request (in accordance with regulations

8 prescribed by the Secretary concerned) not to be

9 transferred to the Retired Reserve’’; and

10 (2) by striking paragraph (2) and inserting the

11 following:

12 ‘‘(2) be discharged from the officer’s reserve ap13 pointment if the officer is not qualified for transfer

14 to the Retired Reserve or has requested (in accord15 ance with regulations prescribed by the Secretary

16 concerned) not to be so transferred.’’.

17 (d) RETIREMENT FOR AGE.—Section 14515 of such

18 title is amended—

19 (1) in paragraph (1), by striking ‘‘, if the offi20 cer is qualified and applies for such transfer’’ and

21 inserting ‘‘if the officer is qualified for the transfer

22 and does not request (in accordance with regulations

23 prescribed by the Secretary concerned) not to be

24 transferred to the Retired Reserve’’; and
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1 (2) by striking paragraph (2) and inserting the

2 following:

3 ‘‘(2) be discharged from the officer’s reserve ap4 pointment if the officer is not qualified for transfer

5 to the Retired Reserve or has requested (in accord6 ance with regulations prescribed by the Secretary

7 concerned) not to be so transferred.’’.

8 (e) DISCHARGE OR RETIREMENT OF WARRANT OFFI9 CERS FOR YEARS OF SERVICE OR AGE.—(1) Chapter

10 1207 of such title is amended by adding at the end the

11 following new section:

12 ‘‘§ 12244. Warrant officers: discharge or retirement

13 for years of service or for age

14 ‘‘Each reserve warrant officer of the Army, Navy, Air

15 Force, or Marine Corps who is in an active status and

16 has reached the maximum years of service or age pre17 scribed by the Secretary concerned shall—

18 ‘‘(1) be transferred to the Retired Reserve if

19 the warrant officer is qualified for the transfer and

20 does not request (in accordance with regulations pre21 scribed by the Secretary concerned) not to be trans22 ferred to the Retired Reserve; or

23 ‘‘(2) be discharged if the warrant officer is not

24 qualified for transfer to the Retired Reserve or has

25 requested (in accordance with regulations prescribed
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1 by the Secretary concerned) not to be so trans2 ferred.’’.

3 (2) The table of sections at the beginning of such

4 chapter is amended by adding at the end the following

5 new item:

‘‘12244. Warrant officers: discharge or retirement for years of service or for

age.’’.

6 (f) DISCHARGE OR RETIREMENT OF ENLISTED MEM7 BERS FOR YEARS OF SERVICE OR AGE.—(1) Chapter

8 1203 of title 10, United States Code, is amended by add9 ing at the end the following new section:

10 ‘‘§ 12108. Enlisted members: discharge or retirement

11 for years of service or for age

12 ‘‘Each reserve enlisted member of the Army, Navy,

13 Air Force, or Marine Corps who is in an active status and

14 has reached the maximum years of service or age pre15 scribed by the Secretary concerned shall—

16 ‘‘(1) be transferred to the Retired Reserve if

17 the member is qualified for the transfer and does

18 not request (in accordance with regulations pre19 scribed by the Secretary concerned) not to be trans20 ferred to the Retired Reserve; or

21 ‘‘(2) be discharged if the member is not quali22 fied for transfer to the Retired Reserve or has re23 quested (in accordance with regulations prescribed
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1 by the Secretary concerned) not to be so trans2 ferred.’’.

3 (2) The table of sections at the beginning of such

4 chapter is amended by adding at the end the following

5 new item:

‘‘12108. Enlisted members: discharge or retirement for years of service or for

age.’’.

6 (g) EFFECTIVE DATE.—This section and the amend7 ments made by this section shall take effect on the first

8 day of the first month that is more than 180 days after

9 the date of the enactment of this Act.

10 SEC. 517. SPACE-REQUIRED TRAVEL BY RESERVES ON MILI11 TARY AIRCRAFT.

12 (a) CORRECTION OF IMPAIRMENT TO AUTHORIZED

13 TRAVEL WITH ALLOWANCES.—Section 18505(a) of title

14 10, United States Code, is amended by striking ‘‘annual

15 training duty or’’ each place it appears.

16 (b) CONFORMING AMENDMENTS.—(1) The heading

17 for such section is amended to read as follows:

18 ‘‘§ 18505. Reserves traveling for inactive-duty train19 ing: space-required travel on military air20 craft’’.

21 (2) The item relating to such section in the table of

22 contents at the beginning of chapter 1805 of title 10,

23 United States Code, is amended to read as follows:

‘‘18505. Reserves traveling for inactive-duty training: space-required travel on

military aircraft.’’.
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1 Subtitle C—Education and

2 Training

3 SEC. 531. IMPROVED BENEFITS UNDER THE ARMY COL4 LEGE FIRST PROGRAM.

5 (a) INCREASED MAXIMUM PERIOD OF DELAYED

6 ENTRY.—Section 573 of the National Defense Authoriza7 tion Act for Fiscal Year 2000 (Public Law 106–65; 113

8 Stat. 623; 10 U.S.C. 513 note) is amended—

9 (1) in subsection (b)—

10 (A) by striking the matter preceding para11 graph (1) and inserting the following:

12 ‘‘(b) DELAYED ENTRY WITH ALLOWANCE FOR

13 HIGHER EDUCATION.—Under the pilot program, the Sec14 retary may—

15 ‘‘(1) exercise the authority under section 513 of

16 title 10, United States Code—’’;

17 (B) by redesignating paragraphs (1) and

18 (2) as subparagraphs (A) and (B), respectively,

19 and realigning those subparagraphs four ems

20 from the left margin;

21 (C) in subparagraph (A), as so redesig22 nated, by inserting ‘‘and’’ after the semicolon;

23 and

24 (D) in subparagraph (B), as so redesig25 nated, by striking ‘‘two years after the date of
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1 such enlistment as a Reserve under paragraph

2 (1)’’ and inserting ‘‘the maximum period of

3 delay determined for the person under sub4 section (c)’’; and

5 (2) in subsection (c)—

6 (A) by striking ‘‘paragraph (2)’’ and in7 serting ‘‘paragraph (1)(B)’’;

8 (B) by striking ‘‘two-year period’’ and in9 serting ‘‘30-month period’’; and

10 (C) by striking ‘‘paragraph (1)’’ and in11 serting ‘‘paragraph (1)(A)’’.

12 (b) ALLOWANCE ELIGIBILITY AND AMOUNT.—(1)

13 Such section is further amended—

14 (A) in subsection (b), by striking paragraph (3)

15 and inserting the following:

16 ‘‘(2) subject to paragraph (2) of subsection (d)

17 and except as provided in paragraph (3) of such

18 subsection, pay an allowance to the person for each

19 month of that period during which the member is

20 enrolled in and pursuing such a program’’; and

21 (B) in subsection (d)—

22 (i) by redesignating paragraph (2) as para23 graph (4); and

24 (ii) by striking paragraph (1) and inserting

25 the following new paragraphs:
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1 ‘‘(1) The monthly allowance paid under subsection

2 (b)(2) shall be equal to the amount of the subsistence al3 lowance provided for certain members of the Senior Re4 serve Officers’ Training Corps under section 209(a) of

5 title 37, United States Code.

6 ‘‘(2) An allowance may not be paid to a person under

7 this section for more than 24 months.

8 ‘‘(3) A member of the Selected Reserve of a reserve

9 component may be paid an allowance under this section

10 only for months during which the member performs satis11 factorily as a member of a unit of the reserve component

12 that trains as prescribed in section 10147(a)(1) of title

13 10, United States Code, or section 502(a) of title 32,

14 United States Code. Satisfactory performance shall be de15 termined under regulations prescribed by the Secretary.’’.

16 (2) The heading for such subsection is amended by

17 striking ‘‘AMOUNT OF’’.

18 (c) INELIGIBILITY FOR LOAN REPAYMENTS.—Such

19 section is further amended—

20 (1) by redesignating subsections (e), (f), and

21 (g) as subsections (g), (h), and (i), respectively; and

22 (2) by inserting after subsection (d) the fol23 lowing new subsection:

24 ‘‘(e) INELIGIBILITY FOR LOAN REPAYMENTS.—A

25 person who has received an allowance under this section
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1 is not eligible for any benefits under chapter 109 of title

2 10, United States Code.’’.

3 (d) RECOUPMENT OF ALLOWANCE.—Such section, as

4 amended by subsection (c), is further amended by insert5 ing after subsection (e) the following new subsection:

6 ‘‘(f) RECOUPMENT OF ALLOWANCE.—(1) A person

7 who, after receiving an allowance under this section, fails

8 to complete the total period of service required of that per9 son in connection with delayed entry authorized for the

10 person under section 513 of title 10, United States Code,

11 shall repay the United States the amount which bears the

12 same ratio to the total amount of that allowance paid to

13 the person as the unserved part of the total required pe14 riod of service bears to the total period.

15 ‘‘(2) An obligation to repay the United States im16 posed under paragraph (1) is for all purposes a debt owed

17 to the United States.

18 ‘‘(3) A discharge of a person in bankruptcy under

19 title 11, United States Code, that is entered less than five

20 years after the date on which the person was, or was to

21 be, enlisted in the regular Army pursuant to the delayed

22 entry authority under section 513 of title 10, United

23 States Code, does not discharge that person from a debt

24 arising under paragraph (1).
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1 ‘‘(4) The Secretary of the Army may waive, in whole

2 or in part, a debt arising under paragraph (1) in any case

3 for which the Secretary determines that recovery would

4 be against equity and good conscience or would be con5 trary to the best interests of the United States.’’.

6 (e) EFFECTIVE DATE.—The amendments made by

7 this section shall take effect on October 1, 2001, and shall

8 apply with respect to persons who, on or after that date,

9 are enlisted as described in subsection (a) of section 513

10 of title 10, United States Code, with delayed entry author11 ized under that section.

12 SEC. 532. REPEAL OF LIMITATION ON NUMBER OF JUNIOR

13 RESERVE OFFICERS’ TRAINING CORPS UNITS.

14 Section 2031(a)(1) of title 10, United States Code,

15 is amended by striking the second sentence.

16 SEC. 533. ACCEPTANCE OF FELLOWSHIPS, SCHOLARSHIPS,

17 OR GRANTS FOR LEGAL EDUCATION OF OFFI18 CERS PARTICIPATING IN THE FUNDED LEGAL

19 EDUCATION PROGRAM.

20 (a) FLEP DETAIL.—Section 2004 of title 10, United

21 States Code, is amended by adding at the end the fol22 lowing new subsection:

23 ‘‘(g) Acceptance of a fellowship, scholarship, or grant

24 as financial assistance for training described in subsection

25 (a) in accordance with section 2603(a) of this title does
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1 not disqualify the officer accepting it from also being de2 tailed at a law school for that training under this section.

3 Service obligations incurred under subsection (b)(2)(C)

4 and section 2603(b) of this title with respect to the same

5 training shall be served consecutively.’’.

6 (b) FELLOWSHIPS, SCHOLARSHIPS, OR GRANTS.—

7 Section 2603 of such title is amended by adding at the

8 end the following new subsection:

9 ‘‘(c) A detail of an officer for training at a law school

10 under section 2004 of this title does not disqualify the offi11 cer from also accepting a fellowship, scholarship, or grant

12 under this section as financial assistance for that training.

13 Service obligations incurred under subsection (b) and sec14 tion 2004(b)(2)(C) of this title with respect to the same

15 training shall be served consecutively.’’.

16 SEC. 534. GRANT OF DEGREE BY DEFENSE LANGUAGE IN17 STITUTE FOREIGN LANGUAGE CENTER.

18 (a) AUTHORITY.—Chapter 108 of title 10, United

19 States Code, is amended by adding at the end the fol20 lowing new section:

21 ‘‘§ 2167. Defense Language Institute: associate of arts

22 ‘‘Under regulations prescribed by the Secretary of

23 Defense, the Commandant of the Foreign Language Cen24 ter of the Defense Language Institute may confer an asso25 ciate of arts degree in foreign language upon graduates
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1 of the Institute who fulfill the requirements for the degree,

2 as certified by the Provost of the Institute.’’.

3 (b) CLERICAL AMENDMENT.—The table of sections

4 at the beginning of such chapter is amended by adding

5 at the end the following new item:

‘‘2167. Defense Language Institute: associate of arts.’’.

6 SEC. 535. AUTHORITY FOR THE MARINE CORPS UNIVER7 SITY TO AWARD THE DEGREE OF MASTER OF

8 STRATEGIC STUDIES.

9 (a) AUTHORITY.—(1) Subsection (a) of section 7102

10 of title 10, United States Code, is amended to read as

11 follows:

12 ‘‘(a) AUTHORITY.—Upon the recommendation of the

13 Director and faculty of a college of the Marine Corps Uni14 versity, the President of the Marine Corps University may

15 confer a degree upon graduates of the college who fulfill

16 the requirements for the degree, as follows:

17 ‘‘(1) For the Marine Corps War College, the de18 gree of master of strategic studies.

19 ‘‘(2) For the Command and Staff College, the

20 degree of master of military studies.’’.

21 (2)(A) The heading for such section is amended to

22 read as follows:
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1 ‘‘§ 7102. Marine Corps University: masters degrees’’.

2 (B) The item relating to such section in the table of

3 sections at the beginning of chapter 609 of title 10, United

4 States Code, is amended to read as follows:

‘‘7102. Marine Corps University: masters degrees.’’.

5 (b) CONDITION FOR INITIAL EXERCISE OF AUTHOR6 ITY.—(1) The President of the Marine Corps University

7 may exercise the authority provided under section

8 7102(a)(1) of title 10, United States Code, only after the

9 Secretary of Education has notified the Secretary of the

10 Navy of a determination made under paragraph (2) that

11 the requirements established by the Marine Corps War

12 College of the Marine Corps University for the degree of

13 master of strategic studies are in accordance with the re14 quirements typically imposed for awards of the degree of

15 master of arts by institutions of higher education in the

16 United States.

17 (2) The Secretary of Education shall review the re18 quirements established by the Marine Corps War College

19 of the Marine Corps University for the degree of master

20 of strategic studies, determine whether the requirements

21 are in accordance with the requirements typically imposed

22 for awards of the degree of master of arts by institutions

23 of higher education in the United States, and notify the

24 Secretary of the Navy of the determination.
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1 SEC. 536. FOREIGN PERSONS ATTENDING THE SERVICE

2 ACADEMIES.

3 (a) UNITED STATES MILITARY ACADEMY.—(1) Sub4 section (a)(1) of section 4344 of title 10, United States

5 Code, is amended by striking ‘‘not more than 40 persons’’

6 and inserting ‘‘not more than 60 persons’’.

7 (2) Subsection (b) of such section is amended—

8 (A) in paragraph (2), by striking ‘‘unless a

9 written waiver of reimbursement is granted by the

10 Secretary of Defense’’ in the first sentence; and

11 (B) by striking paragraph (3) and inserting the

12 following:

13 ‘‘(3) The Secretary of Defense may waive, in whole

14 or in part, the requirement for reimbursement of the cost

15 of instruction for a cadet under paragraph (2). In the case

16 of a partial waiver, the Secretary shall establish the

17 amount waived.’’.

18 (b) UNITED STATES NAVAL ACADEMY.—(1) Sub19 section (a)(1) of section 6957 of such title is amended by

20 striking ‘‘not more than 40 persons’’ and inserting ‘‘not

21 more than 60 persons’’.

22 (2) Subsection (b) of such section is amended—

23 (A) in paragraph (2), by striking ‘‘unless a

24 written waiver of reimbursement is granted by the

25 Secretary of Defense’’ in the first sentence; and
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1 (B) by striking paragraph (3) and inserting the

2 following:

3 ‘‘(3) The Secretary of Defense may waive, in whole

4 or in part, the requirement for reimbursement of the cost

5 of instruction for a midshipman under paragraph (2). In

6 the case of a partial waiver, the Secretary shall establish

7 the amount waived.’’.

8 (c) UNITED STATES AIR FORCE ACADEMY.—(1)

9 Subsection (a)(1) of section 9344 of such title is amended

10 by striking ‘‘not more than 40 persons’’ and inserting ‘‘not

11 more than 60 persons’’.

12 (2) Subsection (b) of such section is amended—

13 (A) in paragraph (2), by striking ‘‘unless a

14 written waiver of reimbursement is granted by the

15 Secretary of Defense’’ in the first sentence; and

16 (B) by striking paragraph (3) and inserting the

17 following:

18 ‘‘(3) The Secretary of Defense may waive, in whole

19 or in part, the requirement for reimbursement of the cost

20 of instruction for a cadet under paragraph (2). In the case

21 of a partial waiver, the Secretary shall establish the

22 amount waived.’’.

23 (d) APPLICABILITY.—The amendments made by this

24 section shall apply with respect to academic years that

25 begin after October 1, 2001.
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1 SEC. 537. EXPANSION OF FINANCIAL ASSISTANCE PRO2 GRAM FOR HEALTH-CARE PROFESSIONALS IN

3 RESERVE COMPONENTS TO INCLUDE STU4 DENTS IN PROGRAMS OF EDUCATION LEAD5 ING TO INITIAL DEGREE IN MEDICINE OR

6 DENTISTRY.

7 (a) MEDICAL AND DENTAL STUDENT STIPEND.—

8 Section 16201 of title 10, United States Code, is

9 amended—

10 (1) by redesignating subsection (e) as sub11 section (f); and

12 (2) by inserting after subsection (d) the fol13 lowing new subsection (e):

14 ‘‘(e) PROGRAMS LEADING TO INITIAL MEDICAL OR

15 DENTAL DEGREE.—(1) Under the stipend program under

16 this chapter, the Secretary of the military department con17 cerned may enter into an agreement with a person who—

18 ‘‘(A) is eligible to be appointed as an officer in

19 a reserve component of the armed forces; and

20 ‘‘(B) is enrolled or has been accepted for enroll21 ment in an accredited medical or dental school in a

22 program of education and training that results in an

23 initial degree in medicine or dentistry.

24 ‘‘(2) Under the agreement—

25 ‘‘(A) the Secretary of the military department

26 concerned shall agree to pay the participant a sti-
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1 pend, in the amount determined under subsection

2 (f), for the period or the remainder of the period

3 that the student is satisfactorily progressing toward

4 an initial degree in medicine or dentistry in a pro5 gram of an accredited medical or dental school;

6 ‘‘(B) the participant shall not be eligible to re7 ceive such stipend before appointment, designation,

8 or assignment as an officer for service in the Ready

9 Reserve;

10 ‘‘(C) the participant shall be subject to such ac11 tive duty requirements as may be specified in the

12 agreement and to active duty in time of war or na13 tional emergency as provided by law for members of

14 the Ready Reserve; and

15 ‘‘(D) the participant shall agree—

16 ‘‘(i) to complete the program of education

17 and training in which enrolled or accepted for

18 enrollment as described in paragraph (1)(B);

19 ‘‘(ii) to accept an appointment or designa20 tion in the participant’s reserve component, if

21 tendered, based upon the participant’s health

22 profession, following satisfactory completion of

23 the educational and internship components of

24 the program of education and training;
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1 ‘‘(iii) if required by regulations prescribed

2 by the Secretary of Defense, to apply for (if eli3 gible) and accept (if offered) residency training

4 in a health profession skill that has been des5 ignated by the Secretary of Defense as a skill

6 critically needed by the armed forces in war7 time; and

8 ‘‘(iv) to serve in the Selected Reserve, upon

9 successful completion of the program, for the

10 period of service applicable under paragraph

11 (3).

12 ‘‘(3)(A) Except as provided in subparagraph (B), the

13 minimum period for which a participant shall serve in the

14 Selected Reserve under the agreement pursuant to para15 graph (2)(D)(iv) shall be one year in the Selected Reserve

16 for each six months, or part thereof, for which the partici17 pant is provided a stipend pursuant to the agreement.

18 ‘‘(B) If a participant referred to in subparagraph (A)

19 enters into an agreement under subsection (b) and, after

20 completing a program of education and training for which

21 a stipend was provided under this subsection, successfully

22 completes residency training in the specialty covered by

23 the agreement, the minimum period for which the partici24 pant shall serve in the Selected Reserve under that agree25 ment and the agreement under this subsection shall be one
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1 year for each year, or part thereof, for which a stipend

2 was provided under this chapter.’’.

3 (b) AMOUNT OF STIPEND.—Subsection (f) of such

4 section, as redesignated by subsection (a), is amended by

5 striking ‘‘or (c)’’ and inserting ‘‘, (c), or (e)’’.

6 (c) ELIGIBILITY FOR ASSISTANCE FOR GRADUATE

7 MEDICAL OR DENTAL TRAINING.—Subsection (b) of such

8 section is amended—

9 (1) by striking ‘‘SPECIALTIES.—’’ and inserting

10 ‘‘WARTIME SPECIALTIES.—’’; and

11 (2) in paragraph (1)(B), by inserting ‘‘, or has

12 been appointed,’’ after ‘‘assignment’’.

13 (d) SERVICE OBLIGATION FOR STIPEND FOR OTHER

14 PROFESSIONAL PROGRAMS.—(1) Subsection (b)(2)(D) of

15 such section by striking ‘‘agree to serve, upon successful

16 completion of the program, two years in the Ready Re17 serve for each year,’’ and inserting ‘‘agree (subject to sub18 section (e)(3)(B)) to serve, upon successful completion of

19 the program, one year in the Ready Reserve for each six

20 months,’’.

21 (2) Subsection (c)(2)(D) of such section is amended

22 by striking ‘‘two years in the Ready Reserve for each

23 year,’’ and inserting ‘‘one year in the Ready Reserve for

24 each six months,’’.
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1 (e) CONFORMING AMENDMENTS.—(1) Subsection (a)

2 of such section is amended—

3 (A) in the first sentence—

4 (i) by inserting ‘‘in health professions and’’

5 after ‘‘qualified’’; and

6 (ii) by striking ‘‘training in such’’ and in7 serting ‘‘education and training in such profes8 sions and’’; and

9 (B) in the second sentence, by striking ‘‘train10 ing in certain’’ and inserting ‘‘education and train11 ing in certain health professions and’’.

12 (2) Subsections (b)(2)(A) and (c)(2)(A) of such sec13 tion are amended by striking ‘‘subsection (e)’’ and insert14 ing ‘‘subsection (f)’’.

15 SEC. 538. PILOT PROGRAM FOR DEPARTMENT OF VET16 ERANS AFFAIRS SUPPORT FOR GRADUATE

17 MEDICAL EDUCATION AND TRAINING OF

18 MEDICAL PERSONNEL OF THE ARMED

19 FORCES.

20 (a) REQUIREMENT FOR PROGRAM.—The Secretary of

21 Defense and the Secretary of Veterans Affairs may jointly

22 carry out a pilot program of graduate medical education

23 and training for medical personnel of the Armed Forces.

24 (b) DEPARTMENT OF VETERANS AFFAIRS MEDICAL

25 CENTERS.—Under any pilot program carried out under
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1 this section, the Secretary of Defense and the Secretary

2 of Veterans Affairs shall provide for medical personnel of

3 the Armed Forces to pursue one or more programs of

4 graduate medical education and training in one or more

5 medical centers of the Department of Veterans Affairs.

6 (c) AGREEMENT.—The Secretary of Defense and the

7 Secretary of Veterans Affairs shall enter into an agree8 ment for carrying out any pilot program under this sec9 tion. The agreement shall provide a means for the Sec10 retary of Defense to defray the costs incurred by the Sec11 retary of Veterans Affairs in providing the graduate med12 ical education and training in, or the use of, the facility

13 or facilities of the Department of Veterans Affairs partici14 pating in the pilot program.

15 (d) USE OF EXISTING AUTHORITIES.—To carry out

16 the pilot program, the Secretary of Defense and the Sec17 retary of Veterans Affairs shall exercise authorities pro18 vided to the Secretaries, respectively, under other laws re19 lating to the furnishing or support of medical education

20 and the cooperative use of facilities.

21 (e) PERIOD OF PROGRAM.—Any pilot program car22 ried out under this section shall begin not later than Au23 gust 1, 2002, and shall terminate on July 31, 2007.

24 (f) ANNUAL REPORT.—(1) Not later than January

25 31, 2003, and January 31 of each year thereafter, the
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1 Secretary of Defense and the Secretary of Veterans Af2 fairs shall jointly submit to Congress a report on the con3 duct of any pilot program carried out under this section.

4 The report shall cover the preceding year and shall include

5 the Secretaries’ assessment of the efficacy of providing for

6 medical personnel of the Armed Forces to pursue pro7 grams of graduate medical education and training in med8 ical centers of the Department of Veterans Affairs.

9 (2) The reporting requirement under this subsection

10 shall terminate upon the submittal of the report due on

11 January 31, 2008.

12 SEC. 539. TRANSFER OF ENTITLEMENT TO EDUCATIONAL

13 ASSISTANCE UNDER MONTGOMERY GI BILL

14 BY MEMBERS OF THE ARMED FORCES WITH

15 CRITICAL MILITARY SKILLS.

16 (a) AUTHORITY TO TRANSFER TO FAMILY MEM17 BERS.—(1) Subchapter II of chapter 30 of title 38, United

18 States Code, is amended by adding at the end the fol19 lowing new section:

20 ‘‘§ 3020. Transfer of entitlement to basic educational

21 assistance: members of the Armed Forces

22 with critical military skills

23 ‘‘(a) IN GENERAL.—Subject to the provisions of this

24 section, each Secretary concerned may, for the purpose of

25 enhancing recruitment and retention of members of the
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1 Armed Forces with critical military skills and at such Sec2 retary’s sole discretion, permit an individual described in

3 subsection (b) who is entitled to basic educational assist4 ance under this subchapter to elect to transfer, in whole

5 or in part, up to 18 months of such individual’s entitle6 ment to such assistance to the dependents specified in sub7 section (c).

8 ‘‘(b) ELIGIBLE INDIVIDUALS.—An individual re9 ferred to in subsection (a) is any member of the Armed

10 Forces who, at the time of the approval by the Secretary

11 concerned of the member’s request to transfer entitlement

12 to basic educational assistance under this section—

13 ‘‘(1) has completed six years of service in the

14 Armed Forces;

15 ‘‘(2) either—

16 ‘‘(A) has a critical military skill designated

17 by the Secretary concerned for purposes of this

18 section; or

19 ‘‘(B) is in a military specialty designated

20 by the Secretary concerned for purposes of this

21 section as requiring critical military skills; and

22 ‘‘(3) enters into an agreement to serve at least

23 four more years as a member of the Armed Forces.

24 ‘‘(c) ELIGIBLE DEPENDENTS.—An individual ap25 proved to transfer an entitlement to basic educational as-
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1 sistance under this section may transfer the individual’s

2 entitlement as follows:

3 ‘‘(1) To the individual’s spouse.

4 ‘‘(2) To one or more of the individual’s chil5 dren.

6 ‘‘(3) To a combination of the individuals re7 ferred to in paragraphs (1) and (2).

8 ‘‘(d) LIMITATION ON MONTHS OF TRANSFER.—The

9 total number of months of entitlement transferred by an

10 individual under this section may not exceed 18 months.

11 ‘‘(e) DESIGNATION OF TRANSFEREE.—An individual

12 transferring an entitlement to basic educational assistance

13 under this section shall—

14 ‘‘(1) designate the dependent or dependents to

15 whom such entitlement is being transferred and the

16 percentage of such entitlement to be transferred to

17 each such dependent; and

18 ‘‘(2) specify the period for which the transfer

19 shall be effective for each dependent designated

20 under paragraph (1).

21 ‘‘(f) TIME FOR TRANSFER; REVOCATION AND MODI22 FICATION.—(1) Subject to the time limitation for use of

23 entitlement under section 3031 of this title, an individual

24 approved to transfer entitlement to basic educational as25 sistance under this section may transfer such entitlement
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1 at any time after the approval of individual’s request to

2 transfer such entitlement without regard to whether the

3 individual is a member of the Armed Forces when the

4 transfer is executed.

5 ‘‘(2)(A) An individual transferring entitlement under

6 this section may modify or revoke at any time the transfer

7 of any unused portion of the entitlement so transferred.

8 ‘‘(B) The modification or revocation of the transfer

9 of entitlement under this paragraph shall be made by the

10 submittal of written notice of the action to both the Sec11 retary concerned and the Secretary of Veterans Affairs.

12 ‘‘(g) COMMENCEMENT OF USE.—A dependent to

13 whom entitlement to basic educational assistance is trans14 ferred under this section may not commence the use of

15 the transferred entitlement until the following:

16 ‘‘(1) In the case of entitlement transferred to a

17 spouse, the completion by the individual making the

18 transfer of 6 years of service in the Armed Forces.

19 ‘‘(2) In the case of entitlement transferred to a

20 child, both—

21 ‘‘(A) the completion by the individual mak22 ing the transfer of 10 years of service in the

23 Armed Forces; and

24 ‘‘(B) either—
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1 ‘‘(i) the completion by the child of the

2 requirements of a secondary school di3 ploma (or equivalency certificate); or

4 ‘‘(ii) the attainment by the child of 18

5 years of age.

6 ‘‘(h) ADDITIONAL ADMINISTRATIVE MATTERS.—(1)

7 The use of any entitlement to basic educational assistance

8 transferred under this section shall be charged against the

9 entitlement of the individual making the transfer at the

10 rate of one month for each month of transferred entitle11 ment that is used.

12 ‘‘(2) Except as provided under subsection (e)(2) and

13 subject to paragraphs (4) and (5), a dependent to whom

14 entitlement is transferred under this section is entitled to

15 basic educational assistance under this subchapter in the

16 same manner and at the same rate as the individual from

17 whom the entitlement was transferred.

18 ‘‘(3) The death of an individual transferring an enti19 tlement under this section shall not affect the use of the

20 entitlement by the individual to whom the entitlement is

21 transferred.

22 ‘‘(4) Notwithstanding section 3031 of this title, a

23 child to whom entitlement is transferred under this section

24 may not use any entitlement so transferred after attaining

25 the age of 26 years.
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1 ‘‘(5) The administrative provisions of this chapter

2 (including the provisions set forth in section 3034(a)(1)

3 of this title) shall apply to the use of entitlement trans4 ferred under this section, except that the dependent to

5 whom the entitlement is transferred shall be treated as

6 the eligible veteran for purposes of such provisions.

7 ‘‘(6) The purposes for which a dependent to whom

8 entitlement is transferred under this section may use such

9 entitlement shall include the pursuit and completion of the

10 requirements of a secondary school diploma (or equiva11 lency certificate).

12 ‘‘(i) OVERPAYMENT.—(1) In the event of an overpay13 ment of basic educational assistance with respect to a de14 pendent to whom entitlement is transferred under this sec15 tion, the dependent and the individual making the transfer

16 shall be jointly and severally liable to the United States

17 for the amount of the overpayment for purposes of section

18 3685 of this title.

19 ‘‘(2) Except as provided in paragraph (3), if an indi20 vidual transferring entitlement under this section fails to

21 complete the service agreed to by the individual under sub22 section (b)(3) in accordance with the terms of the agree23 ment of the individual under that subsection, the amount

24 of any transferred entitlement under this section that is

25 used by a dependent of the individual as of the date of
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1 such failure shall be treated as an overpayment of basic

2 educational assistance under paragraph (1).

3 ‘‘(3) Paragraph (2) shall not apply in the case of an

4 individual who fails to complete service agreed to by the

5 individual—

6 ‘‘(A) by reason of the death of the individual;

7 or

8 ‘‘(B) for a reason referred to in section

9 3011(a)(1)(A)(ii)(I) of this title.

10 ‘‘(j) APPROVALS OF TRANSFER SUBJECT TO AVAIL11 ABILITY OF APPROPRIATIONS.—The Secretary concerned

12 may approve transfers of entitlement to basic educational

13 assistance under this section in a fiscal year only to the

14 extent that appropriations for military personnel are avail15 able in the fiscal year for purposes of making deposits in

16 the Department of Defense Education Benefits Fund

17 under section 2006 of title 10 in the fiscal year to cover

18 the present value of future benefits payable from the Fund

19 for the Department of Defense portion of payments of

20 basic educational assistance attributable to increased

21 usage of benefits as a result of such transfers of entitle22 ment in the fiscal year.

23 ‘‘(k) REGULATIONS.—The Secretary of Defense shall

24 prescribe regulations for purposes of this section. Such

25 regulations shall specify the manner and effect of an elec-
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1 tion to modify or revoke a transfer of entitlement under

2 subsection (f)(2), and shall specify the manner of the ap3 plicability of the administrative provisions referred to in

4 subsection (h)(5) to a dependent to whom entitlement is

5 transferred under this section.

6 ‘‘(l) ANNUAL REPORTS.—(1) Not later than January

7 31, 2003, and each year thereafter, each Secretary con8 cerned shall submit to the Committees on Armed Services

9 of the Senate and House of Representatives a report on

10 the transfers of entitlement to basic educational assistance

11 under this section that were approved by such Secretary

12 during the preceding year.

13 ‘‘(2) Each report shall set forth—

14 ‘‘(A) the number of transfers of entitlement

15 under this section that were approved by such Sec16 retary during the preceding year; or

17 ‘‘(B) if no transfers of entitlement under this

18 section were approved by such Secretary during that

19 year, a justification for such Secretary’s decision not

20 to approve any such transfers of entitlement during

21 that year.

22 ‘‘(m) SECRETARY CONCERNED DEFINED.—Notwith23 standing section 101(25) of this title, in this section, the

24 term ‘Secretary concerned’ means—
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1 ‘‘(1) the Secretary of the Army with respect to

2 matters concerning the Army;

3 ‘‘(2) the Secretary of the Navy with respect to

4 matters concerning the Navy or the Marine Corps;

5 ‘‘(3) the Secretary of the Air Force with respect

6 to matters concerning the Air Force; and

7 ‘‘(4) the Secretary of the Defense with respect

8 to matters concerning the Coast Guard, or the Sec9 retary of Transportation when it is not operating as

10 a service in the Navy.’’.

11 (2) The table of sections at the beginning of such

12 chapter is amended by inserting after the item relating

13 to section 3019 the following new item:

‘‘3020. Transfer of entitlement to basic educational assistance: members of the

Armed Forces with critical military skills.’’.

14 (b) TREATMENT UNDER DEPARTMENT OF DEFENSE

15 EDUCATION BENEFITS FUND.—Section 2006(b)(2) of

16 title 10, United States Code, is amended by adding at the

17 end the following:

18 ‘‘(D) The present value of future benefits

19 payable from the Fund for the Department of

20 Defense portion of payments of educational as21 sistance under subchapter II of chapter 30 of

22 title 38 attributable to increased usage of bene23 fits as a result of transfers of entitlement to
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1 basic educational assistance under section 3020

2 of that title during such period.’’.

3 (c) PLAN FOR IMPLEMENTATION.—Not later than

4 June 30, 2002, the Secretary of Defense shall submit to

5 Congress a report describing the manner in which the Sec6 retaries of the military departments and the Secretary of

7 Transportation propose to exercise the authority granted

8 by section 3020 of title 38, United States Code, as added

9 by subsection (a). The report shall include the regulations

10 prescribed under subsection (k) of that section for pur11 poses of the exercise of the authority.

12 (d) FUNDING FOR FISCAL YEAR 2002.—Of the

13 amount authorized to be appropriated to the Department

14 of Defense for military personnel for fiscal year 2002 by

15 section 421, $30,000,000 may be available in fiscal year

16 2002 for deposit into the Department of Defense Edu17 cation Benefits Fund under section 2006 of title 10,

18 United States Code, for purposes of covering payments of

19 amounts under subparagraph (D) of section 2006(b)(2)

20 of title 10, United States Code (as added by subsection

21 (b)), as a result of transfers of entitlement to basic edu22 cational assistance under section 3020 of title 38, United

23 States Code (as added by subsection (a)).
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1 Subtitle D—Decorations, Awards,

2 and Commendations

3 SEC. 551. AUTHORITY FOR AWARD OF THE MEDAL OF

4 HONOR TO HUMBERT R. VERSACE FOR

5 VALOR DURING THE VIETNAM WAR.

6 (a) WAIVER OF TIME LIMITATIONS.—Notwith7 standing the time limitations specified in section 3744 of

8 title 10, United States Code, or any other time limitation

9 with respect to the awarding of certain medals to persons

10 who served in the military service, the President may

11 award the Medal of Honor under section 3741 of that title

12 to Humbert R. Versace for the acts of valor referred to

13 in subsection (b).

14 (b) ACTION DESCRIBED.—The acts of valor referred

15 to in subsection (a) are the actions of Humbert R. Versace

16 between October 29, 1963, and September 26, 1965, while

17 interned as a prisoner of war by the Vietnamese Com18 munist National Liberation Front (Viet Cong) in the Re19 public of Vietnam.

20 SEC. 552. REVIEW REGARDING AWARD OF MEDAL OF

21 HONOR TO CERTAIN JEWISH AMERICAN WAR

22 VETERANS.

23 (a) REVIEW REQUIRED.—The Secretary of each mili24 tary department shall review the service records of each

25 Jewish American war veteran described in subsection (b)
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1 to determine whether or not that veteran should be award2 ed the Medal of Honor.

3 (b) COVERED JEWISH AMERICAN WAR VETERANS.—

4 The Jewish American war veterans whose service records

5 are to be reviewed under subsection (a) are the following:

6 (1) Any Jewish American war veteran who was

7 previously awarded the Distinguished Service Cross,

8 the Navy Cross, or the Air Force Cross.

9 (2) Any other Jewish American war veteran

10 whose name is submitted to the Secretary concerned

11 for such purpose by the Jewish War Veterans of the

12 United States of America before the end of the one13 year period beginning on the date of the enactment

14 of this Act.

15 (c) CONSULTATIONS.—In carrying out the review

16 under subsection (a), the Secretary of each military de17 partment shall consult with the Jewish War Veterans of

18 the United States of America and with such other veterans

19 service organizations as the Secretary considers appro20 priate.

21 (d) RECOMMENDATION BASED ON REVIEW.—If the

22 Secretary concerned determines, based upon the review

23 under subsection (a) of the service records of any Jewish

24 American war veteran, that the award of the Medal of

25 Honor to that veteran is warranted, the Secretary shall
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1 submit to the President a recommendation that the Presi2 dent award the Medal of Honor to that veteran.

3 (e) AUTHORITY TO AWARD MEDAL OF HONOR.—A

4 Medal of Honor may be awarded to a Jewish American

5 war veteran in accordance with a recommendation of the

6 Secretary concerned under subsection (d).

7 (f) WAIVER OF TIME LIMITATIONS.—An award of

8 the Medal of Honor may be made under subsection (e)

9 without regard to—

10 (1) section 3744, 6248, or 8744 of title 10,

11 United States Code, as applicable; and

12 (2) any regulation or other administrative re13 striction on—

14 (A) the time for awarding the Medal of

15 Honor; or

16 (B) the awarding of the Medal of Honor

17 for service for which a Distinguished Service

18 Cross, Navy Cross, Air Force Cross, or any

19 other decoration has been awarded.

20 (g) JEWISH AMERICAN WAR VETERAN DEFINED.—

21 In this section, the term ‘‘Jewish American war veteran’’

22 means any person who served in the Armed Forces during

23 World War II or a later period of war and who identified

24 himself or herself as Jewish on his or her military per25 sonnel records.
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1 SEC. 553. ISSUANCE OF DUPLICATE AND REPLACEMENT

2 MEDALS OF HONOR.

3 (a) ARMY.—(1)(A) Chapter 357 of title 10, United

4 States Code, is amended by inserting after section 3747

5 the following new section:

6 ‘‘§ 3747a. Medal of honor: issuance of duplicate

7 ‘‘(a) ISSUANCE.—Upon written application by a per8 son to whom a medal of honor has been awarded under

9 this chapter, the Secretary of the Army may issue to the

10 person one duplicate medal of honor, with ribbons and ap11 purtenances. No charge may be imposed for the issuance

12 of the duplicate medal.

13 ‘‘(b) SPECIAL MARKING.—A duplicate medal of

14 honor issued under this section shall be marked as a dupli15 cate or for display purposes only. The Secretary shall pre16 scribe the manner in which the duplicate medal is marked.

17 ‘‘(c) ISSUANCE NOT TO BE CONSIDERED ADDI18 TIONAL AWARD.—The issuance of a duplicate medal of

19 honor under of this section may not be considered an

20 award of more than one medal of honor prohibited by sec21 tion 3744(a) of this title.’’.

22 (B) The table of sections at the beginning of such

23 chapter is amended by inserting after the item relating

24 to section 3747 the following:

‘‘3747a. Medal of honor: issuance of duplicate.’’.
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1 (2) Section 3747 of title 10, United States Code, is

2 amended by striking ‘‘lost’’ and inserting ‘‘stolen, lost,’’.

3 (b) NAVY AND MARINE CORPS.—(1)(A) Chapter 567

4 of such title is amended by inserting after section 6253

5 the following new section:

6 ‘‘§ 6253a. Medal of honor: issuance of duplicate

7 ‘‘(a) ISSUANCE.—Upon written application by a per8 son to whom a medal of honor has been awarded under

9 this chapter, the Secretary of the Navy may issue to the

10 person one duplicate medal of honor, with ribbons and ap11 purtenances. No charge may be imposed for the issuance

12 of the duplicate medal.

13 ‘‘(b) SPECIAL MARKING.—A duplicate medal of

14 honor issued under this section shall be marked as a dupli15 cate or for display purposes only. The Secretary shall pre16 scribe the manner in which the duplicate medal is marked.

17 ‘‘(c) ISSUANCE NOT TO BE CONSIDERED ADDI18 TIONAL AWARD.—The issuance of a duplicate medal of

19 honor under this section may not be considered an award

20 of more than one medal of honor prohibited by section

21 6247 of this title.’’.

22 (B) The table of sections at the beginning of such

23 chapter is amended by inserting after the item relating

24 to section 6253 the following:

‘‘6253a. Medal of honor: issuance of duplicate.’’.
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1 (2) Section 6253 of title 10, United States Code, is

2 amended by striking ‘‘lost’’ and inserting ‘‘stolen, lost,’’.

3 (c) AIR FORCE.—(1)(A) Chapter 857 of such title is

4 amended by inserting after section 8747 the following new

5 section:

6 ‘‘§ 8747a. Medal of honor: issuance of duplicate

7 ‘‘(a) ISSUANCE.—Upon written application by a per8 son to whom a medal of honor has been awarded under

9 this chapter, the Secretary of the Air Force may issue to

10 the person one duplicate medal of honor, with ribbons and

11 appurtenances. No charge may be imposed for the

12 issuance of the duplicate medal.

13 ‘‘(b) SPECIAL MARKING.—A duplicate medal of

14 honor issued under this section shall be marked as a dupli15 cate or for display purposes only. The Secretary shall pre16 scribe the manner in which the duplicate medal is marked.

17 ‘‘(c) ISSUANCE NOT TO BE CONSIDERED ADDI18 TIONAL AWARD.—The issuance of a duplicate medal of

19 honor under this section may not be considered an award

20 of more than one medal of honor prohibited by section

21 8744(a) of this title.’’.

22 (B) The table of sections at the beginning of such

23 chapter is amended by inserting after the item relating

24 to section 8747 the following:

‘‘8747a. Medal of honor: issuance of duplicate.’’.
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1 (2) Section 8747 of title 10, United States Code, is

2 amended by striking ‘‘lost’’ and inserting ‘‘stolen, lost,’’.

3 SEC. 554. WAIVER OF TIME LIMITATIONS FOR AWARD OF

4 CERTAIN DECORATIONS TO CERTAIN PER5 SONS.

6 (a) WAIVER.—Any limitation established by law or

7 policy for the time within which a recommendation for the

8 award of a military decoration or award must be sub9 mitted shall not apply to awards of decorations described

10 in this section, the award of each such decoration having

11 been determined by the Secretary concerned to be war12 ranted in accordance with section 1130 of title 10, United

13 States Code.

14 (b) SILVER STAR.—Subsection (a) applies to the

15 award of the Silver Star to Wayne T. Alderson, of

16 Glassport, Pennsylvania, for gallantry in action from

17 March 15 to March 18, 1945, while serving as a member

18 of the Army.

19 (c) DISTINGUISHED FLYING CROSS.—Subsection (a)

20 applies to the award of the Distinguished Flying Cross

21 for service during World War II (including multiple

22 awards to the same individual) in the case of each indi23 vidual concerning whom the Secretary of the Navy (or an

24 officer of the Navy acting on behalf of the Secretary) sub25 mitted to the Committee on Armed Services of the House
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1 of Representatives and the Committee on Armed Services

2 of the Senate, during the period beginning on October 30,

3 2000, and ending on the day before the date of the enact4 ment of this Act, a notice as provided in section 1130(b)

5 of title 10, United States Code, that the award of the Dis6 tinguished Flying Cross to that individual is warranted

7 and that a waiver of time restrictions prescribed by law

8 for recommendation for such award is recommended.

9 SEC. 555. SENSE OF SENATE ON ISSUANCE OF KOREA DE10 FENSE SERVICE MEDAL.

11 It is the sense of the Senate that the Secretary of

12 Defense should consider authorizing the issuance of a

13 campaign medal, to be known as the Korea Defense Serv14 ice Medal, to each person who while a member of the

15 Armed Forces served in the Republic of Korea, or the wa16 ters adjacent thereto, during the period beginning on July

17 28, 1954, and ending on such date after that date as the

18 Secretary considers appropriate.
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1 Subtitle E—Funeral Honors Duty

2 SEC. 561. ACTIVE DUTY END STRENGTH EXCLUSION FOR

3 RESERVES ON ACTIVE DUTY OR FULL-TIME

4 NATIONAL GUARD DUTY FOR FUNERAL HON5 ORS DUTY.

6 Section 115(d) of title 10, United States Code, is

7 amended by adding at the end the following new para8 graph:

9 ‘‘(10) Members of reserve components on active

10 duty or full-time National Guard duty to prepare for

11 and to perform funeral honors functions under sec12 tion 1491 of this title.’’.

13 SEC. 562. PARTICIPATION OF RETIREES IN FUNERAL HON14 ORS DETAILS.

15 (a) AUTHORITY.—(1) Subsection (b)(2) of section

16 1491 of title 10, United States Code, is amended by in17 serting ‘‘, members or former members of the armed

18 forces in a retired status,’’ in the second sentence after

19 ‘‘members of the armed forces’’.

20 (2) Subsection (h) of such section is amended to read

21 as follows:

22 ‘‘(h) DEFINITIONS.—In this section:

23 ‘‘(1) The term ‘retired status’, with respect to

24 a member or former member of the armed forces,

25 means that the member or former member—
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1 ‘‘(A) is on a retired list of an armed force;

2 ‘‘(B) is entitled to receive retired or re3 tainer pay; or

4 ‘‘(C) except for not having attained 60

5 years of age, would be entitled to receive retired

6 pay upon application under chapter 1223 of

7 this title.

8 ‘‘(2) The term ‘veteran’ means a decedent

9 who—

10 ‘‘(A) served in the active military, naval, or

11 air service (as defined in section 101(24) of

12 title 38) and who was discharged or released

13 therefrom under conditions other than dishon14 orable; or

15 ‘‘(B) was a member or former member of

16 the Selected Reserve described in section

17 2301(f) of title 38.’’.

18 (b) FUNERAL HONORS DUTY ALLOWANCE.—Section

19 435(a) of title 37, United States Code, is amended—

20 (1) by inserting ‘‘(1)’’ after ‘‘(a) ALLOWANCE

21 AUTHORIZED.—’’; and

22 (2) by adding at the end the following new

23 paragraph:

24 ‘‘(2)(A) The Secretary concerned may authorize pay25 ment of an allowance to a member or former member of
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1 the armed forces in a retired status (as defined in section

2 1491(h) of title 10) for participating as a member of a

3 funeral honors detail under section 1491 of title 10 for

4 a period of at least two hours, including time for prepara5 tion.

6 ‘‘(B) An allowance paid to a member or former mem7 ber under subparagraph (A) shall be in addition to any

8 retired or retainer pay or other compensation to which the

9 member or former member is entitled under this title or

10 title 10 or 38.’’.

11 SEC. 563. BENEFITS AND PROTECTIONS FOR MEMBERS IN A

12 FUNERAL HONORS DUTY STATUS.

13 (a) FUNERAL HONORS DUTY DEFINED.—Section

14 101(d) of title 10, United States Code, is amended by add15 ing at the end the following new paragraph:

16 ‘‘(8) The term ‘funeral honors duty’ means

17 duty under section 12503 of this title or section 115

18 of title 32.’’.

19 (b) APPLICABILITY OF UNIFORM CODE OF MILITARY

20 JUSTICE.—Section 802 of title 10, United States Code,

21 is amended—

22 (1) in subsection (a)(3), by inserting ‘‘or en23 gaged in funeral honors duty’’ after ‘‘on inactive24 duty training’’; and
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1 (2) in subsection (d)(2)(B), by inserting ‘‘or en2 gaged in funeral honors duty’’ after ‘‘on inactive3 duty training’’.

4 (c) COMMISSARY STORES PRIVILEGES FOR DEPEND5 ENTS OF A DECEASED RESERVE COMPONENT MEM6 BER.—Section 1061(b) of such title is amended—

7 (1) in paragraph (1)—

8 (A) by striking ‘‘or’’ the first place it ap9 pears; and

10 (B) by inserting ‘‘, or funeral honors duty’’

11 before the semicolon; and

12 (2) in paragraph (2)—

13 (A) by striking ‘‘or’’ the third place it ap14 pears; and

15 (B) by inserting ‘‘, or funeral honors duty’’

16 before the period.

17 (d) PAYMENT OF A DEATH GRATUITY.—(1) Section

18 1475(a) of such title is amended—

19 (A) in paragraph (2), by inserting ‘‘or while en20 gaged in funeral honors duty’’ after ‘‘Public Health

21 Service)’’; and

22 (B) in paragraph (3)—

23 (i) by striking ‘‘or inactive duty training’’

24 the first place it appears and inserting ‘‘inac25 tive-duty training’’;
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1 (ii) by inserting ‘‘or funeral honors duty,’’

2 after ‘‘Public Health Service),’’; and

3 (iii) by striking ‘‘or inactive duty training’’

4 the second place it appears and inserting ‘‘, in5 active-duty training, or funeral honors duty’’.

6 (2) Section 1476(a) of such title is amended—

7 (A) in paragraph (1)—

8 (i) in subparagraph (A), by striking ‘‘or’’;

9 (ii) in subparagraph (B), by striking the

10 period at the end and inserting ‘‘; or’’; and

11 (iii) by adding at the end the following new

12 subparagraph:

13 ‘‘(C) funeral honors duty.’’; and

14 (B) in paragraph (2)(A), by striking ‘‘or inac15 tive-duty training’’ and inserting ‘‘, inactive-duty

16 training, or funeral honors duty’’.

17 (e) MILITARY AUTHORITY FOR MEMBERS OF THE

18 COAST GUARD RESERVE.—(1) Section 704 of title 14,

19 United States Code, is amended by striking ‘‘or inactive20 duty training’’ in the second sentence and inserting ‘‘, in21 active-duty training, or funeral honors duty’’.

22 (2) Section 705(a) of such title is amended by insert23 ing ‘‘on funeral honors duty,’’ after ‘‘on inactive-duty

24 training,’’.
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1 (f) VETERANS BENEFITS.—Section 101(24) of title

2 38, United States Code, is amended—

3 (1) by striking ‘‘and’’ at the end of subpara4 graph (B);

5 (2) by striking the period at the end of sub6 paragraph (C)(ii) and inserting ‘‘; and’’; and

7 (3) by adding at the end the following new sub8 paragraph (D):

9 ‘‘(D) any period of funeral honors duty (as de10 fined in section 101(d) of title 10) during which the

11 individual concerned was disabled or died from an

12 injury incurred or aggravated in line of duty.’’.

13 (g) EFFECTIVE DATE.—This section and the amend14 ments made by this section shall take effect on October

15 1, 2001.

16 SEC. 564. MILITARY LEAVE FOR CIVILIAN EMPLOYEES

17 SERVING AS MILITARY MEMBERS OF FU18 NERAL HONORS DETAIL.

19 Section 6323(a) of title 5, United States Code, is

20 amended—

21 (1) in the first sentence of paragraph (1), by

22 striking ‘‘active duty, inactive duty training’’ and all

23 that follows through ‘‘National Guard’’ and inserting

24 ‘‘military duty or training described in paragraph

25 (4)’’; and
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1 (2) by adding at the end the following new

2 paragraph:

3 ‘‘(4) The entitlement under paragraph (1) applies to

4 the performance of duty or training as a Reserve of the

5 armed forces or member of the National Guard, as follows:

6 ‘‘(A) Active duty.

7 ‘‘(B) Inactive duty training (as defined in sec8 tion 101 of title 37).

9 ‘‘(C) Field or coast defense training under sec10 tions 502 through 505 of title 32.

11 ‘‘(D) Funeral honors duty under section 12503

12 of title 10 or section 115 of title 32.’’.

13 Subtitle F—Uniformed Services

14 Overseas Voting

15 SEC. 571. SENSE OF THE SENATE REGARDING THE IMPOR16 TANCE OF VOTING BY MEMBERS OF THE UNI17 FORMED SERVICES.

18 (a) SENSE OF THE SENATE.—It is the sense of the

19 Senate that each administrator of a Federal, State, or

20 local election should—

21 (1) be aware of the importance of the ability of

22 each uniformed services voter to exercise their right

23 to vote; and

24 (2) perform their duties with the intent to en25 sure that—
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1 (A) each uniformed services voter receives

2 the utmost consideration and cooperation when

3 voting; and

4 (B) each valid ballot cast by such a voter

5 is duly counted.

6 (b) UNIFORMED SERVICES VOTER DEFINED.—In

7 this section, the term ‘‘uniformed services voter’’ means—

8 (1) a member of a uniformed service (as defined

9 in section 101(a)(5) of title 10, United States Code)

10 in active service;

11 (2) a member of the merchant marine (as de12 fined in section 107 of the Uniformed and Overseas

13 Citizens Absentee Voting Act (42 U.S.C. 1973ff–6));

14 and

15 (3) a spouse or dependent of a member referred

16 to in subparagraph (A) or (B) who is qualified to

17 vote.

18 SEC. 572. UNIFORM NONDISCRIMINATORY VOTING STAND19 ARDS FOR ADMINISTRATION OF ELECTIONS

20 UNDER STATE AND LOCAL ELECTION SYS21 TEMS.

22 Section 102 of the Uniformed and Overseas Citizens

23 Absentee Voting Act (42 U.S.C. 1973ff–1) is amended—

24 (1) by inserting ‘‘(a) ELECTIONS FOR FEDERAL

25 OFFICES.—’’ before ‘‘Each State shall—’’; and
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1 (2) by adding at the end the following new sub2 section (c):

3 ‘‘(c) GENERAL PRINCIPLES FOR VOTING BY OVER4 SEAS AND ABSENT UNIFORMED SERVICE VOTERS.—(1)

5 A State shall ensure that each voting system used within

6 the State for elections for Federal, State, and local offices

7 provides overseas voters and absent uniformed service vot8 ers with a meaningful opportunity to exercise their voting

9 rights as citizens of the United States.

10 ‘‘(2) A State shall count an absentee ballot for an

11 election for Federal, State, or local office that is timely

12 submitted by an overseas voter or absent uniformed serv13 ice voter to the proper official of the State and is otherwise

14 valid.’’.

15 SEC. 573. GUARANTEE OF RESIDENCY FOR MILITARY PER16 SONNEL.

17 Article VII of the Soldiers’ and Sailors’ Civil Relief

18 Act of 1940 (50 U.S.C. App. 590 et seq.) is amended by

19 adding at the end the following:

20 ‘‘SEC. 704. (a) For purposes of voting for any Fed21 eral office (as defined in section 301 of the Federal Elec22 tion Campaign Act of 1971 (2 U.S.C. 431)) or a State

23 or local office, a person who is absent from a State in

24 compliance with military or naval orders shall not, solely

25 by reason of that absence—
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1 ‘‘(1) be deemed to have lost a residence or

2 domicile in that State, without regard to whether or

3 not the person intends to return to that State;

4 ‘‘(2) be deemed to have acquired a residence or

5 domicile in any other State; or

6 ‘‘(3) be deemed to have become a resident in or

7 a resident of any other State.

8 ‘‘(b) In this section, the term ‘State’ includes a terri9 tory or possession of the United States, a political subdivi10 sion of a State, territory, or possession, and the District

11 of Columbia.’’.

12 SEC. 574. EXTENSION OF REGISTRATION AND BALLOTING

13 RIGHTS FOR ABSENT UNIFORMED SERVICES

14 VOTERS TO STATE AND LOCAL ELECTIONS.

15 (a) IN GENERAL.—Section 102 of the Uniformed and

16 Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff–

17 1), as amended by section 572, is further amended by in18 serting after subsection (a) the following new subsection

19 (b):

20 ‘‘(b) ELECTIONS FOR STATE AND LOCAL OFFICES.—

21 Each State shall—

22 ‘‘(1) permit absent uniformed services voters to

23 use absentee registration procedures and vote by ab24 sentee ballot in general, special, primary, and runoff

25 elections for State and local offices; and
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1 ‘‘(2) accept and process, with respect to any

2 election described in paragraph (1), any otherwise

3 valid voter registration application from an absent

4 uniformed services voter if the application is received

5 by the appropriate State election official not less

6 than 30 days before the date of the election.’’.

7 (b) CONFORMING AMENDMENT.—The heading for

8 title I of such Act is amended by striking ‘‘FOR FED9 ERAL OFFICE’’.

10 SEC. 575. USE OF SINGLE APPLICATION AS A SIMULTA11 NEOUS ABSENTEE VOTER REGISTRATION AP12 PLICATION AND ABSENTEE BALLOT APPLICA13 TION.

14 Subsection (a) of section 102 of the Uniformed and

15 Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff–

16 1), as redesignated by section 572(1), is further

17 amended—

18 (1) by striking ‘‘and’’ at the end of paragraph

19 (2);

20 (2) by striking the period at the end of para21 graph (3) and inserting a semicolon; and

22 (3) by inserting after paragraph (3) the fol23 lowing new paragraph (4):

24 ‘‘(4) accept and process the official post card

25 form (prescribed under section 101) as a simulta-
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1 neous absentee voter registration application and ab2 sentee ballot application; and’’.

3 SEC. 576. USE OF SINGLE APPLICATION FOR ABSENTEE

4 BALLOTS FOR ALL FEDERAL ELECTIONS.

5 Subsection (a) of section 102 of the Uniformed and

6 Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff–

7 1), as amended by section 575, is further amended by in8 serting after paragraph (4) the following new paragraph

9 (5):

10 ‘‘(5) accept and process, with respect to all gen11 eral, special, primary, and runoff elections for Fed12 eral office occurring during a year, any otherwise

13 valid absentee ballot application from an absent uni14 formed services voter or overseas voter, if a single

15 application for any such election is received by the

16 appropriate State election official not less than 30

17 days before the first election for Federal office oc18 curring during the year.’’.

19 SEC. 577. ELECTRONIC VOTING DEMONSTRATION

20 PROJECT.

21 (a) IN GENERAL.—The Secretary of Defense shall

22 carry out a demonstration project under which absent uni23 formed services voters (as defined in section 107(1) of the

24 Uniformed and Overseas Citizens Absentee Voting Act (42

25 U.S.C. 1973ff–6(1))) are permitted to cast ballots in the
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1 regularly scheduled general election for Federal office for

2 November 2002, through an electronic voting system.

3 (b) COORDINATION WITH STATE ELECTION OFFI4 CIALS.—To the greatest extent practicable, the Secretary

5 of Defense shall carry out the demonstration project under

6 this section through cooperative agreements with State

7 election officials.

8 (c) REPORT TO CONGRESS.—Not later than June 1,

9 2003, the Secretary of Defense shall submit a report to

10 Congress analyzing the demonstration project conducted

11 under this section, and shall include in the report any rec12 ommendations the Secretary of Defense considers appro13 priate for continuing the project on an expanded basis

14 during the next regularly scheduled general election for

15 Federal office.

16 SEC. 578. FEDERAL VOTING ASSISTANCE PROGRAM.

17 (a) IN GENERAL.—The Secretary of Defense shall

18 promulgate regulations to require each of the Armed

19 Forces to ensure their compliance with any directives

20 issued by the Secretary of Defense in implementing the

21 Federal Voting Assistance Program (referred to in this

22 section as the ‘‘Program’’) or any similar program.

23 (b) REVIEW AND REPORT.—(1) The Inspector Gen24 eral of each of the Armed Forces shall—
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1 (A) conduct an annual review of the effective2 ness of the Program or any similar program;

3 (B) conduct an annual review of the compliance

4 with the Program or any similar program of the

5 branch; and

6 (C) submit an annual report to the Inspector

7 General of the Department of Defense on the results

8 of the reviews under subparagraphs (A) and (B).

9 (2) Not later than March 31, 2003, and annually

10 thereafter, the Inspector General of the Department of

11 Defense shall submit a report to Congress on—

12 (A) the effectiveness of the Program or any

13 similar program; and

14 (B) the level of compliance with the Program or

15 any similar program of the branches of the Armed

16 Forces.

17 Subtitle G—Other Matters

18 SEC. 581. PERSONS AUTHORIZED TO BE INCLUDED IN SUR19 VEYS OF MILITARY FAMILIES REGARDING

20 FEDERAL PROGRAMS.

21 (a) ADDITION OF CERTAIN FAMILY MEMBERS AND

22 SURVIVORS.—Subsection (a) of section 1782 of title 10,

23 United States Code, is amended to read as follows:

24 ‘‘(a) AUTHORITY.—The Secretary of Defense may

25 conduct surveys of persons to determine the effectiveness
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1 of Federal programs relating to military families and the

2 need for new programs, as follows:

3 ‘‘(1) Members of the armed forces on active

4 duty or in an active status.

5 ‘‘(2) Retired members of the armed forces.

6 ‘‘(3) Members of the families of such members

7 and retired members of the armed forces (including

8 surviving members of the families of deceased mem9 bers and deceased retired members).’’.

10 (b) FEDERAL RECORDKEEPING REQUIREMENTS.—

11 Subsection (c) of such section is amended to read as fol12 lows:

13 ‘‘(c) FEDERAL RECORDKEEPING REQUIREMENTS.—

14 With respect to a survey authorized under subsection (a)

15 that includes a person referred to in that subsection who

16 is not an employee of the United States or is not consid17 ered an employee of the United States for the purposes

18 of section 3502(3)(A)(i) of title 44, the person shall be

19 considered as being an employee of the United States for

20 the purposes of that section.’’.

21 SEC. 582. CORRECTION AND EXTENSION OF CERTAIN ARMY

22 RECRUITING PILOT PROGRAM AUTHORITIES.

23 (a) CONTRACT RECRUITING INITIATIVES.—Sub24 section (d)(2) of section 561 of the Floyd D. Spence Na25 tional Defense Authorization Act for Fiscal Year 2001 (as
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1 enacted into law by Public Law 106–398; 114 Stat.

2 1654A–130) is amended—

3 (1) in subparagraphs (A) and (D), by inserting

4 ‘‘and Army Reserve’’ after ‘‘Regular Army’’; and

5 (2) in subparagraph (B), by striking ‘‘and chain

6 of command’’.

7 (b) EXTENSION OF AUTHORITY.—Subsection (e) of

8 such section is amended by striking ‘‘December 31, 2005’’

9 and inserting ‘‘September 30, 2007’’.

10 (c) EXTENSION OF TIME FOR REPORTS.—Subsection

11 (g) of such section is amended by striking ‘‘February 1,

12 2006’’ and inserting ‘‘February 1, 2008’’.

13 SEC. 583. OFFENSE OF DRUNKEN OPERATION OF A VEHI14 CLE, AIRCRAFT, OR VESSEL UNDER THE UNI15 FORM CODE OF MILITARY JUSTICE.

16 (a) LOWER STANDARD OF ALCOHOL CONCENTRA17 TION.—Section 911 of title 10, United States Code (arti18 cle 111 of the Uniform Code of Military Justice), is

19 amended by striking ‘‘0.10 grams’’ both places it appears

20 in paragraph (2) and inserting ‘‘0.08 grams’’.

21 (b) EFFECTIVE DATE.—The amendments made by

22 subsection (a) shall take effect on the date of the enact23 ment of this Act and shall apply to acts described in para24 graph (2) of section 911 of title 10, United States Code,

25 that are committed on or after that date.
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1 SEC. 584. AUTHORITY OF CIVILIAN EMPLOYEES TO ACT AS

2 NOTARIES.

3 (a) CLARIFICATION OF STATUS OF CIVILIAN ATTOR4 NEYS ELIGIBLE TO ACT AS NOTARIES.—Subsection (b)

5 of section 1044a of title 10, United States Code, is amend6 ed by striking ‘‘legal assistance officers’’ in paragraph (2)

7 and inserting ‘‘legal assistance attorneys’’.

8 (b) OTHER CIVILIAN EMPLOYEES DESIGNATED TO

9 ACT AS NOTARIES ABROAD.—Such subsection is further

10 amended by adding at the end the following new para11 graph:

12 ‘‘(5) For the performance of notarial acts at lo13 cations outside the United States, all employees of

14 a military department or the Coast Guard who are

15 designated by regulations of the Secretary concerned

16 or by statute to have those powers for exercise out17 side the United States.’’.

18 SEC. 585. REVIEW OF ACTIONS OF SELECTION BOARDS.

19 (a) IN GENERAL.—(1) Chapter 79 of title 10, United

20 States Code, is amended by adding at the end the fol21 lowing:

22 ‘‘§ 1558. Exclusive remedies in cases involving selec23 tion boards

24 ‘‘(a) CORRECTION OF MILITARY RECORDS.—The

25 Secretary concerned may correct a person’s military

26 records in accordance with a recommendation made by a
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1 special board. Any such correction shall be effective, retro2 actively, as of the effective date of the action taken on

3 a report of a previous selection board that resulted in the

4 action corrected in the person’s military records.

5 ‘‘(b) RELIEF ASSOCIATED WITH CORRECTIONS OF

6 CERTAIN ACTIONS.—(1) The Secretary concerned shall

7 ensure that a person receives relief under paragraph (2)

8 or (3), as the person may elect, if the person—

9 ‘‘(A) was separated or retired from an armed

10 force, or transferred to the retired reserve or to inac11 tive status in a reserve component, as a result of a

12 recommendation of a selection board; and

13 ‘‘(B) becomes entitled to retention on or res14 toration to active duty or active status in a reserve

15 component as a result of a correction of the person’s

16 military records under subsection (a).

17 ‘‘(2)(A) With the consent of a person referred to in

18 paragraph (1), the person shall be retroactively and pro19 spectively restored to the same status, rights, and entitle20 ments (less appropriate offsets against back pay and al21 lowances) in the person’s armed force as the person would

22 have had if the person had not been selected to be sepa23 rated, retired, or transferred to the retired reserve or to

24 inactive status in a reserve component, as the case may

25 be, as a result of an action corrected under subsection (a).
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1 An action under this subparagraph is subject to subpara2 graph (B).

3 ‘‘(B) Nothing in subparagraph (A) shall be construed

4 to permit a person to be on active duty or in an active

5 status in a reserve component after the date on which the

6 person would have been separated, retired, or transferred

7 to the retired reserve or to inactive status in a reserve

8 component if the person had not been selected to be sepa9 rated, retired, or transferred to the retired reserve or to

10 inactive status in a reserve component, as the case may

11 be, in an action of a selection board that is corrected under

12 subsection (a).

13 ‘‘(3) If the person does not consent to a restoration

14 of status, rights, and entitlements under paragraph (2),

15 the person shall receive back pay and allowances (less ap16 propriate offsets) and service credit for the period begin17 ning on the date of the person’s separation, retirement,

18 or transfer to the retired reserve or to inactive status in

19 a reserve component, as the case may be, and ending on

20 the earlier of—

21 ‘‘(A) the date on which the person would have

22 been so restored under paragraph (2), as determined

23 by the Secretary concerned; or

24 ‘‘(B) the date on which the person would other25 wise have been separated, retired, or transferred to
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1 the retired reserve or to inactive status in a reserve

2 component, as the case may be.

3 ‘‘(c) FINALITY OF UNFAVORABLE ACTION.—If a spe4 cial board makes a recommendation not to correct the

5 military records of a person regarding action taken in the

6 case of that person on the basis of a previous report of

7 a selection board, the action previously taken on that re8 port shall be considered as final as of the date of the ac9 tion taken on that report.

10 ‘‘(d) REGULATIONS.—(1) The Secretary concerned

11 may prescribe regulations to carry out this section (other

12 than subsection (e)) with respect to the armed force or

13 armed forces under the jurisdiction of the Secretary.

14 ‘‘(2) The Secretary may prescribe in the regulations

15 the circumstances under which consideration by a special

16 board may be provided for under this section, including

17 the following:

18 ‘‘(A) The circumstances under which consider19 ation of a person’s case by a special board is contin20 gent upon application by or for that person.

21 ‘‘(B) Any time limits applicable to the filing of

22 an application for consideration.

23 ‘‘(3) Regulations prescribed by the Secretary of a

24 military department under this subsection shall be subject

25 to the approval of the Secretary of Defense.
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1 ‘‘(e) JUDICIAL REVIEW.—(1) A person challenging

2 for any reason the action or recommendation of a selection

3 board, or the action taken by the Secretary concerned on

4 the report of a selection board, is not entitled to relief in

5 any judicial proceeding unless the person has first been

6 considered by a special board under this section or the

7 Secretary concerned has denied such consideration.

8 ‘‘(2) A court of the United States may review a deter9 mination by the Secretary concerned not to convene a spe10 cial board in the case of any person. In any such case,

11 a court may set aside the Secretary’s determination only

12 if the court finds the determination to be arbitrary or ca13 pricious, not based on substantial evidence, or otherwise

14 contrary to law. If a court sets aside a determination not

15 to convene a special board, it shall remand the case to

16 the Secretary concerned, who shall provide for consider17 ation of the person by a special board.

18 ‘‘(3) A court of the United States may review a rec19 ommendation of a special board or an action of the Sec20 retary concerned on the report of a special board convened

21 for consideration of a person. In any such case, a court

22 may set aside the recommendation or action, as the case

23 may be, only if the court finds that the recommendation

24 or action was contrary to law or involved a material error

25 of fact or a material administrative error. If a court sets
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1 aside the recommendation of a special board, it shall re2 mand the case to the Secretary concerned, who shall pro3 vide for reconsideration of the person by another special

4 board. If a court sets aside the action of the Secretary

5 concerned on the report of a special board, it shall remand

6 the case to the Secretary concerned for a new action on

7 the report of the special board.

8 ‘‘(4)(A) If, not later than six months after receiving

9 a complete application for consideration by a special board

10 in any case, the Secretary concerned has not convened a

11 special board and has not denied consideration by a special

12 board in that case, the Secretary shall be deemed to have

13 denied the consideration of the case for the purposes of

14 this subsection.

15 ‘‘(B) If, not later than one year after the convening

16 of a special board in any case, the Secretary concerned

17 has not taken final action on the report of the special

18 board, the Secretary shall be deemed to have denied relief

19 in such case for the purposes of this subsection.

20 ‘‘(C) Under regulations prescribed under subsection

21 (d), the Secretary concerned may waive the applicability

22 of subparagraph (A) or (B) in a case if the Secretary de23 termines that a longer period for consideration of the case

24 is warranted. The Secretary of a military department may
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1 not delegate authority to make a determination under this

2 subparagraph.

3 ‘‘(f) EXCLUSIVITY OF REMEDIES.—Notwithstanding

4 any other provision of law, but subject to subsection (g),

5 the remedies provided under this section are the only rem6 edies available to a person for correcting an action or rec7 ommendation of a selection board regarding that person

8 or an action taken on the report of a selection board re9 garding that person.

10 ‘‘(g) EXISTING JURISDICTION.—(1) Nothing in this

11 section limits the jurisdiction of any court of the United

12 States under any provision of law to determine the validity

13 of any statute, regulation, or policy relating to selection

14 boards, except that, in the event that any such statute,

15 regulation, or policy is held invalid, the remedies pre16 scribed in this section shall be the sole and exclusive rem17 edies available to any person challenging the recommenda18 tion of a special board on the basis of the invalidity.

19 ‘‘(2) Nothing in this section limits authority to cor20 rect a military record under section 1552 of this title.

21 ‘‘(h) INAPPLICABILITY TO COAST GUARD.—This sec22 tion does not apply to the Coast Guard when it is not

23 operating as a service in the Navy.

24 ‘‘(i) DEFINITIONS.—In this section:

25 ‘‘(1) The term ‘special board’—
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1 ‘‘(A) means a board that the Secretary

2 concerned convenes under any authority to con3 sider whether to recommend a person for ap4 pointment, enlistment, reenlistment, assign5 ment, promotion, retention, separation, retire6 ment, or transfer to inactive status in a reserve

7 component instead of referring the records of

8 that person for consideration by a previously

9 convened selection board which considered or

10 should have considered that person;

11 ‘‘(B) includes a board for the correction of

12 military or naval records convened under sec13 tion 1552 of this title, if designated as a special

14 board by the Secretary concerned; and

15 ‘‘(C) does not include a promotion special

16 selection board convened under section 628 or

17 14502 of this title.

18 ‘‘(2) The term ‘selection board’—

19 ‘‘(A) means a selection board convened

20 under section 573(c), 580, 580a, 581, 611(b),

21 637, 638, 638a, 14101(b), 14701, 14704, or

22 14705 of this title, and any other board con23 vened by the Secretary concerned under any au24 thority to recommend persons for appointment,

25 enlistment, reenlistment, assignment, pro-
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1 motion, or retention in the armed forces or for

2 separation, retirement, or transfer to inactive

3 status in a reserve component for the purpose

4 of reducing the number of persons serving in

5 the armed forces; and

6 ‘‘(B) does not include—

7 ‘‘(i) a promotion board convened

8 under section 573(a), 611(a), or 14101(a)

9 of this title;

10 ‘‘(ii) a special board;

11 ‘‘(iii) a special selection board con12 vened under section 628 of this title; or

13 ‘‘(iv) a board for the correction of

14 military records convened under section

15 1552 of this title.’’.

16 (2) The table of sections at the beginning of such

17 chapter is amended by adding at the end the following:

‘‘1558. Exclusive remedies in cases involving selection boards .’’.

18 (b) SPECIAL SELECTION BOARDS.—Section 628 of

19 such title is amended—

20 (1) by redesignating subsection (g) as sub21 section (j); and

22 (2) by inserting after subsection (f) the fol23 lowing:

24 ‘‘(g) JUDICIAL REVIEW.—(1) A court of the United

25 States may review a determination by the Secretary con-
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1 cerned under subsection (a)(1) or (b)(1) not to convene

2 a special selection board in the case of an officer or former

3 officer of the armed forces. If the court finds the deter4 mination to be arbitrary or capricious, not based on sub5 stantial evidence, or otherwise contrary to law, it shall re6 mand the case to the Secretary concerned, who shall pro7 vide for consideration of the officer or former officer by

8 a special selection board under this section.

9 ‘‘(2) A court of the United States may review the ac10 tion of a special selection board convened under this sec11 tion upon the request of an officer or former officer of

12 the armed forces and any action taken by the President

13 on the report of the board. If the court finds that the ac14 tion was contrary to law or involved a material error of

15 fact or a material administrative error, it shall remand

16 the case to the Secretary concerned, who shall provide for

17 reconsideration of the officer or former officer by another

18 special selection board.

19 ‘‘(3)(A) For the purposes of this subsection, the Sec20 retary concerned shall be deemed to have determined not

21 to convene a special selection board under subsection

22 (a)(1) or (b)(1) in the case of an officer or former officer

23 of the armed forces upon a failure of the Secretary to

24 make a determination on the convening of a special selec25 tion board in that case within six months after receiving
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1 a properly completed request to convene a special selection

2 board under that authority in that case.

3 ‘‘(B) Under regulations prescribed by the Secretary

4 concerned, the Secretary may waive the applicability of

5 subparagraph (A) in the case of a request for the con6 vening of a special selection board if the Secretary deter7 mines that a longer period for consideration of the request

8 is warranted. The Secretary concerned may not delegate

9 authority to make a determination under this subpara10 graph.

11 ‘‘(h) LIMITATIONS OF OTHER JURISDICTION.—(1)

12 No official or court of the United States may, with respect

13 to a claim based to any extent on the failure of an officer

14 or former officer of the armed forces to be selected for

15 promotion by a promotion board—

16 ‘‘(A) consider the claim unless the officer or

17 former officer has first been referred by the Sec18 retary concerned to a special selection board con19 vened under this section and acted upon by that

20 board and the report of the board has been approved

21 by the President; or

22 ‘‘(B) except as provided in subsection (g), grant

23 any relief on the claim unless the officer or former

24 officer has been selected for promotion by a special

25 selection board convened under this section to con-
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1 sider the officer for recommendation for promotion

2 and the report of the board has been approved by

3 the President.

4 ‘‘(i) EXISTING JURISDICTION.—(1) Nothing in this

5 section limits the jurisdiction of any court of the United

6 States under any provision of law to determine the validity

7 of any statute, regulation, or policy relating to selection

8 boards, except that, in the event that any such statute,

9 regulation, or policy is held invalid, the remedies pre10 scribed in this section shall be the sole and exclusive rem11 edies available to any person challenging the recommenda12 tion of a selection board on the basis of the invalidity.

13 ‘‘(2) Nothing in this section limits authority to cor14 rect a military record under section 1552 of this title.’’.

15 (c) EFFECTIVE DATE AND APPLICABILITY.—(1) The

16 amendments made by this section shall take effect on the

17 date of the enactment of this Act and, except as provided

18 in paragraph (2), shall apply with respect to any pro19 ceeding pending on or after that date without regard to

20 whether a challenge to an action of a selection board of

21 any of the Armed Forces being considered in such pro22 ceeding was initiated before, on, or after that date.

23 (2) The amendments made by this section shall not

24 apply with respect to any action commenced in a court
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1 of the United States before the date of the enactment of

2 this Act.

3 SEC. 586. ACCEPTANCE OF VOLUNTARY LEGAL ASSISTANCE

4 FOR THE CIVIL AFFAIRS OF MEMBERS AND

5 FORMER MEMBERS OF THE UNIFORMED

6 SERVICES AND THEIR DEPENDENTS.

7 (a) AUTHORITY.—Subsection (a) of section 1588 of

8 title 10, United States Code, is amended by adding at the

9 end the following new paragraph:

10 ‘‘(5) Legal services voluntarily provided as legal

11 assistance under section 1044 of this title.’’.

12 (b) DEFENSE OF LEGAL MALPRACTICE.—Subsection

13 (d)(1) of that section is amended by adding at the end

14 the following new subparagraph:

15 ‘‘(E) Section 1054 of this title (relating to legal

16 malpractice), for a person voluntarily providing legal

17 services accepted under subsection (a)(5), as if the

18 person were providing the services as an attorney of

19 a legal staff within the Department of Defense.’’.

20 SEC. 587. EXTENSION OF DEFENSE TASK FORCE ON DOMES21 TIC VIOLENCE.

22 Section 591(j) of the National Defense Authorization

23 Act for Fiscal Year 2000 (Public Law 106–65; 113 Stat.

24 641, 10 U.S.C. 1562 note) is amended by striking ‘‘three
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1 years after the date of the enactment of this Act’’ and

2 inserting ‘‘April 24, 2003’’.

3 SEC. 588. TRANSPORTATION TO ANNUAL MEETING OF

4 NEXT-OF-KIN OF PERSONS UNACCOUNTED

5 FOR FROM CONFLICTS AFTER WORLD WAR II.

6 (a) IN GENERAL.—(1) Chapter 157 of title 10,

7 United States Code, is amended by adding at the end the

8 following new section:

9 ‘‘§ 2647. Transportation to annual meeting of next-of10 kin of persons unaccounted for from con11 flicts after World War II

12 ‘‘The Secretary of Defense may provide transpor13 tation for the next-of-kin of persons who are unaccounted

14 for from the Korean conflict, the Cold War, Vietnam War

15 era, or the Persian Gulf War to and from those annual

16 meetings sanctioned by the Department of Defense in the

17 United States. Such transportation shall be provided

18 under such regulations as the Secretary of Defense may

19 prescribe.’’.

20 (2) The table of sections at the beginning of such

21 chapter is amended by adding at the end the following

22 new item:

‘‘2647. Transportation to annual meeting of next-of-kin of persons unaccounted

for from conflicts after World War II.’’.

23 (b) EFFECTIVE DATE.—Section 2647 of title 10,

24 United States Code, as added by subsection (a), shall take
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1 effect on October 1, 2001, or the date of the enactment

2 of this Act, whichever is later.

3 TITLE VI—COMPENSATION AND

4 OTHER PERSONNEL BENEFITS

5 Subtitle A—Pay and Allowances

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

7 (a) WAIVER OF SECTION 1009 ADJUSTMENT.—The

8 adjustment to become effective during fiscal year 2002 re9 quired by section 1009 of title 37, United States Code,

10 in the rates of monthly basic pay authorized members of

11 the uniformed services shall not be made.

12 (b) INCREASE IN BASIC PAY.—Effective on January

13 1, 2002, the rates of monthly basic pay for members of

14 the uniformed services within each pay grade are as fol15 lows:

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
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COMMISSIONED OFFICERS 1—Continued

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–3 3 4,070.10 4,232.40 4,441.20 4,549.50 4,549.50

O–2 3 3,344.10 3,344.10 3,344.10 3,344.10 3,344.10

O–1 3 2,638.50 2,638.50 2,638.50 2,638.50 2,638.50

Over 18 Over 20 Over 22 Over 24 Over 26

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

O–9 ... 0.00 10,147.50 10,293.60 10,504.80 10,873.80

O–8 ... 9,259.50 9,614.70 9,852.00 9,852.00 9,852.00

O–7 ... 8,694.90 8,694.90 8,694.90 8,694.90 8,738.70

O–6 ... 6,627.00 6,948.30 7,131.00 7,316.10 7,675.20

O–5 ... 5,919.00 6,079.80 6,262.80 6,262.80 6,262.80

O–4 ... 5,310.60 5,310.60 5,310.60 5,310.60 5,310.60

O–3 3 4,549.50 4,549.50 4,549.50 4,549.50 4,549.50

O–2 3 3,344.10 3,344.10 3,344.10 3,344.10 3,344.10

O–1 3 2,638.50 2,638.50 2,638.50 2,638.50 2,638.50

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for

commissioned officers in pay grades 0–7 through O–10 may not exceed the rate of pay for level III

of the Executive Schedule and the actual rate of basic pay for all other officers may not exceed the

rate of pay for level V of the Executive Schedule. 2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint

Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air

Force, Commandant of the Marine Corps, or Commandant of the Coast Guard, the rate of basic

pay for this grade is $13,598.10, regardless of cumulative years of service computed under section

205 of title 37, United States Code. 3This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have

been credited with over 4 years of active duty service as an enlisted member or warrant officer.

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE

AS AN ENLISTED MEMBER OR WARRANT OFFICER

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

Pay

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

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

O–2E 0.00 0.00 0.00 3,276.30 3,344.10

O–1E 0.00 0.00 0.00 2,638.50 2,818.20

Over 8 Over 10 Over 12 Over 14 Over 16

O–3E 4,070.10 4,232.40 4,441.20 4,617.00 4,717.50

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

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

Over 18 Over 20 Over 22 Over 24 Over 26

O–3E 4,855.20 4,855.20 4,855.20 4,855.20 4,855.20

O–2E 3,872.40 3,872.40 3,872.40 3,872.40 3,872.40

O–1E 3,276.30 3,276.30 3,276.30 3,276.30 3,276.30

WARRANT OFFICERS 1

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

Pay

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

W–5 .. $0.00 $0.00 $0.00 $0.00 $0.00

W–4 .. 2,889.60 3,108.60 3,198.00 3,285.90 3,437.10

W–3 .. 2,638.80 2,862.00 2,862.00 2,898.90 3,017.40

W–2 .. 2,321.40 2,454.00 2,569.80 2,654.10 2,726.40
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WARRANT OFFICERS 1—Continued

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–1 .. 2,049.90 2,217.60 2,330.10 2,402.70 2,511.90

Over 8 Over 10 Over 12 Over 14 Over 16

W–5 .. $0.00 $0.00 $0.00 $0.00 $0.00

W–4 .. 3,586.50 3,737.70 3,885.30 4,038.00 4,184.40

W–3 .. 3,152.40 3,330.90 3,439.50 3,558.30 3,693.90

W–2 .. 2,875.20 2,984.40 3,093.90 3,200.40 3,318.00

W–1 .. 2,624.70 2,737.80 2,850.00 2,963.70 3,077.10

Over 18 Over 20 Over 22 Over 24 Over 26

W–5 .. $0.00 4,965.60 5,136.00 5,307.00 5,478.60

W–4 .. 4,334.40 4,480.80 4,632.60 4,782.00 4,935.30

W–3 .. 3,828.60 3,963.60 4,098.30 4,233.30 4,368.90

W–2 .. 3,438.90 3,559.80 3,680.10 3,801.30 3,801.30

W–1 .. 3,189.90 3,275.10 3,275.10 3,275.10 3,275.10

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers may not exceed the rate of pay for level V of the Executive Schedule.

ENLISTED MEMBERS 1

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

Pay

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

E–9 2 $0.00 $0.00 $0.00 $0.00 $0.00

E–8 ... 0.00 0.00 0.00 0.00 0.00

E–7 ... 1,986.90 2,169.00 2,251.50 2,332.50 2,417.40

E–6 ... 1,701.00 1,870.80 1,953.60 2,033.70 2,117.40

E–5 ... 1,561.50 1,665.30 1,745.70 1,828.50 1,912.80

E–4 ... 1,443.60 1,517.70 1,599.60 1,680.30 1,752.30

E–3 ... 1,303.50 1,385.40 1,468.50 1,468.50 1,468.50

E–2 ... 1,239.30 1,239.30 1,239.30 1,239.30 1,239.30

E–1 ... 3 1,105.50 1,105.50 1,105.50 1,105.50 1,105.50

Over 8 Over 10 Over 12 Over 14 Over 16

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

E–8 ... 2,858.10 2,940.60 3,017.70 3,110.10 3,210.30

E–7 ... 2,562.90 2,645.10 2,726.40 2,808.00 2,892.60

E–6 ... 2,254.50 2,337.30 2,417.40 2,499.30 2,558.10

E–5 ... 2,030.10 2,110.20 2,193.30 2,193.30 2,193.30

E–4 ... 1,752.30 1,752.30 1,752.30 1,752.30 1,752.30

E–3 ... 1,468.50 1,468.50 1,468.50 1,468.50 1,468.50

E–2 ... 1,239.30 1,239.30 1,239.30 1,239.30 1,239.30

E–1 ... 1,105.50 1,105.50 1,105.50 1,105.50 1,105.50

Over 18 Over 20 Over 22 Over 24 Over 26

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

E–8 ... 3,314.70 3,420.30 3,573.00 3,724.80 3,937.80

E–7 ... 2,975.10 3,057.30 3,200.40 3,292.80 3,526.80

E–6 ... 2,602.80 2,602.80 2,602.80 2,602.80 2,602.80

E–5 ... 2,193.30 2,193.30 2,193.30 2,193.30 2,193.30

E–4 ... 1,752.30 1,752.30 1,752.30 1,752.30 1,752.30

E–3 ... 1,468.50 1,468.50 1,468.50 1,468.50 1,468.50

E–2 ... 1,239.30 1,239.30 1,239.30 1,239.30 1,239.30
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ENLISTED MEMBERS 1—Continued

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–1 ... 1,105.50 1,105.50 1,105.50 1,105.50 1,105.50

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for enlisted members may not exceed the rate of pay for level V of the Executive Schedule. 2 Subject to the preceding footnote, while serving as Sergeant Major of the Army, Master Chief

Petty Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine

Corps, or Master Chief Petty Officer of the Coast Guard, basic pay for this grade is $5,382.90, regardless of cumulative years of service computed under section 205 of title 37, United States Code. 3 In the case of members in pay grade E–1 who have served less than 4 months on active duty,

the rate of basic pay is $1,022.70.

1 SEC. 602. BASIC PAY RATE FOR CERTAIN RESERVE COM2 MISSIONED OFFICERS WITH PRIOR SERVICE

3 AS AN ENLISTED MEMBER OR WARRANT OF4 FICER.

5 (a) SERVICE CREDIT.—Section 203(d) of title 37,

6 United States Code, is amended—

7 (1) by inserting ‘‘(1)’’ after ‘‘(d)’’;

8 (2) by striking ‘‘active service as a warrant offi9 cer or as a warrant officer and an enlisted member’’

10 and inserting ‘‘service described in paragraph (2)’’;

11 and

12 (3) by adding at the end the following new

13 paragraph:

14 ‘‘(2) Service to be taken into account for purposes

15 of computing basic pay under paragraph (1) is as follows:

16 ‘‘(A) Active service as a warrant officer or as

17 a warrant officer and an enlisted member, in the

18 case of—
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1 ‘‘(i) a commissioned officer on active duty

2 who is paid from funds appropriated for active3 duty personnel; or

4 ‘‘(ii) a commissioned officer on active

5 Guard and Reserve duty.

6 ‘‘(B) In the case of a commissioned officer (not

7 referred to in subparagraph (A)(ii)) who is paid

8 from funds appropriated for reserve personnel, serv9 ice as a warrant officer, or as a warrant officer and

10 enlisted member, for which at least 1,460 points

11 have been credited to the officer for the purposes of

12 section 12732(a)(2) of title 10.’’.

13 (b) EFFECTIVE DATE.—The amendments made by

14 subsection (a) shall take effect on October 1, 2001, and

15 shall apply with respect to months beginning on or after

16 that date.

17 SEC. 603. RESERVE COMPONENT COMPENSATION FOR DIS18 TRIBUTED LEARNING ACTIVITIES PER19 FORMED AS INACTIVE-DUTY TRAINING.

20 (a) COMPENSATION AUTHORIZED.—Section 206(d)

21 of title 37, United States Code, is amended to read as

22 follows:

23 ‘‘(d)(1) Compensation is payable under this section

24 to a member in a grade below E–7 for a period of instruc25 tion or duty in pursuit of the satisfaction of educational
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1 requirements imposed on members of the uniformed serv2 ices by law or regulations if—

3 ‘‘(A) the particular activity in pursuit of the

4 satisfaction of such requirements is an activity ap5 proved for that period of instruction or duty by the

6 commander who prescribes the instruction or duty

7 for the member for that period; and

8 ‘‘(B) the member attains the learning objectives

9 required for the period of instruction or duty, as de10 termined under regulations prescribed by the Sec11 retary concerned.

12 ‘‘(2) Acceptable means of pursuit of the satisfaction

13 of educational requirements for the purposes of compensa14 tion under this section include any means (which may in15 clude electronic, documentary, or distributed learning)

16 that is authorized for the attainment of educational credit

17 toward the satisfaction of those requirements in regula18 tions prescribed by the Secretary concerned.’’.

19 (b) DEFINITION OF INACTIVE-DUTY TRAINING.—

20 Section 101(22) of title 37, United States Code, is amend21 ed by striking ‘‘but does not include work or study in con22 nection with a correspondence course of a uniformed serv23 ice’’.
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1 SEC. 604. CLARIFICATIONS FOR TRANSITION TO RE2 FORMED BASIC ALLOWANCE FOR SUBSIST3 ENCE.

4 (a) BASELINE AMOUNT FOR CALCULATING ALLOW5 ANCE FOR ENLISTED MEMBERS.—For the purposes of

6 section 402(b)(2) of title 37, United States Code, the

7 monthly rate of basic allowance for subsistence that is in

8 effect for an enlisted member for the year ending Decem9 ber 31, 2001, is $233.

10 (b) RATE FOR ENLISTED MEMBERS WHEN MESSING

11 FACILITIES NOT AVAILABLE.—(1) Notwithstanding sec12 tion 402 of title 37, United States Code, the Secretary

13 of Defense, or the Secretary of Transportation with re14 spect to the Coast Guard when it is not operating as a

15 service in the Navy, may prescribe a rate of basic allow16 ance for subsistence to apply to enlisted members of the

17 uniformed services when messing facilities of the United

18 States are not available. The rate may be higher than the

19 rate of basic allowance for subsistence that would other20 wise be applicable to the members under that section, but

21 may not be higher than the highest rate that was in effect

22 for enlisted members of the uniformed services under

23 those circumstances before the date of the enactment of

24 this Act.

25 (2) Paragraph (1) shall cease to be effective on the

26 first day of the first month for which the basic allowance
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1 for subsistence calculated for enlisted members of the uni2 formed services under section 402 of title 37, United

3 States Code, exceeds the rate of the basic allowance for

4 subsistence prescribed under that paragraph.

5 (c) DATE FOR EARLY TERMINATION OF BAS TRAN6 SITIONAL AUTHORITY.—Section 603(c) of the Floyd D.

7 Spence National Defense Authorization Act for Fiscal

8 Year 2001 (as enacted into law by Public Law 106–398;

9 114 Stat. 1654A–145) is amended by striking ‘‘October

10 1, 2001,’’ and inserting ‘‘January 1, 2002,’’.

11 SEC. 605. INCREASE IN BASIC ALLOWANCE FOR HOUSING

12 IN THE UNITED STATES.

13 (a) ACCELERATION OF INCREASE.—Subsection

14 403(b)(1) of title 37, United States Code, is amended by

15 adding at the end the following: ‘‘After September 30,

16 2002, the rate prescribed for a grade and dependency sta17 tus for a military housing area in the United States may

18 not be less than the median cost of adequate housing for

19 members in that grade and dependency status in that

20 area, as determined on the basis of the costs of adequate

21 housing determined for the area under paragraph (2).’’.

22 (b) FISCAL YEAR 2002 RATES.—(1) Subject to sub23 section (b)(3) of section 403 of title 37, United States

24 Code, in the administration of such section 403 for fiscal

25 year 2002, the monthly amount of a basic allowance for
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1 housing for an area of the United States for a member

2 of a uniformed service shall be equal to 92.5 percent of

3 the monthly cost of adequate housing in that area, as de4 termined by the Secretary of Defense, for members of the

5 uniformed services serving in the same pay grade and with

6 the same dependency status as the member.

7 (2) In addition to the amount determined by the Sec8 retary of Defense under section 403(b)(3) of title 37,

9 United States Code, to be the total amount to be paid

10 during fiscal year 2002 for the basic allowance for housing

11 for military housing areas inside the United States,

12 $232,000,000 of the amount authorized to be appro13 priated by section 421 for military personnel may be used

14 by the Secretary to further increase the total amount

15 available for the basic allowance for housing for military

16 housing areas inside the United States.

17 SEC. 606. CLARIFICATION OF ELIGIBILITY FOR SUPPLE18 MENTAL SUBSISTENCE ALLOWANCE.

19 Section 402a(b)(1) of title 37, United States Code,

20 is amended by inserting ‘‘with dependents’’ after ‘‘a mem21 ber of the armed forces’’.

22 SEC. 607. CORRECTION OF LIMITATION ON ADDITIONAL

23 UNIFORM ALLOWANCE FOR OFFICERS.

24 Section 416(b)(1) of title 37, United States Code, is

25 amended by striking ‘‘$200’’ and inserting ‘‘$400’’.
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1 SEC. 608. PAYMENT FOR UNUSED LEAVE IN EXCESS OF 60

2 DAYS ACCRUED BY MEMBERS OF RESERVE

3 COMPONENTS ON ACTIVE DUTY FOR ONE

4 YEAR OR LESS.

5 (a) ELIGIBILITY.—Section 501(b)(5) of title 37,

6 United States Code, is amended by—

7 (1) striking ‘‘or’’ at the end of subparagraph

8 (B);

9 (2) striking the period at the end of subpara10 graph (C) and inserting ‘‘; or’’; and

11 (3) adding at the end the following new sub12 paragraph:

13 ‘‘(D) by a member of a reserve component while

14 serving on active duty, full-time National Guard

15 duty, or active duty for training for a period of more

16 than 30 days but not in excess of 365 days.’’.

17 (b) EFFECTIVE DATE.—This section and the amend18 ments made by this section shall take effect on October

19 1, 2001, and shall apply with respect to periods of active

20 duty that begin on or after that date.

21 Subtitle B—Bonuses and Special

22 and Incentive Pays

23 SEC. 611. EXTENSION OF CERTAIN BONUSES AND SPECIAL

24 PAY AUTHORITIES FOR RESERVE FORCES.

25 (a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN

26 CRITICALLY SHORT WARTIME SPECIALTIES.—Section
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1 302g(f) of title 37, United States Code, is amended by

2 striking ‘‘December 31, 2001’’ and inserting ‘‘December

3 31, 2002’’.

4 (b) SELECTED RESERVE REENLISTMENT BONUS.—

5 Section 308b(f) of such title is amended by striking ‘‘De6 cember 31, 2001’’ and inserting ‘‘December 31, 2002’’.

7 (c) SELECTED RESERVE ENLISTMENT BONUS.—Sec8 tion 308c(e) of such title is amended by striking ‘‘Decem9 ber 31, 2001’’ and inserting ‘‘December 31, 2002’’.

10 (d) SPECIAL PAY FOR ENLISTED MEMBERS AS11 SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section

12 308d(c) of such title is amended by striking ‘‘December

13 31, 2001’’ and inserting ‘‘December 31, 2002’’.

14 (e) SELECTED RESERVE AFFILIATION BONUS.—Sec15 tion 308e(e) of such title is amended by striking ‘‘Decem16 ber 31, 2001’’ and inserting ‘‘December 31, 2002’’.

17 (f) READY RESERVE ENLISTMENT AND REENLIST18 MENT BONUS.—Section 308h(g) of such title is amended

19 by striking ‘‘December 31, 2001’’ and inserting ‘‘Decem20 ber 31, 2002’’.

21 (g) PRIOR SERVICE ENLISTMENT BONUS.—Section

22 308i(f) of such title is amended by striking ‘‘December

23 31, 2001’’ and inserting ‘‘December 31, 2002’’.

24 (h) REPAYMENT OF EDUCATION LOANS FOR CER25 TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
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1 LECTED RESERVE.—Section 16302(d) of title 10, United

2 States Code, is amended by striking ‘‘January 1, 2002’’

3 and inserting ‘‘January 1, 2003’’.

4 SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL

5 PAY AUTHORITIES FOR NURSE OFFICER CAN6 DIDATES, REGISTERED NURSES, AND NURSE

7 ANESTHETISTS.

8 (a) NURSE OFFICER CANDIDATE ACCESSION PRO9 GRAM.—Section 2130a(a)(1) of title 10, United States

10 Code, is amended by striking ‘‘December 31, 2001’’ and

11 inserting ‘‘December 31, 2002’’.

12 (b) ACCESSION BONUS FOR REGISTERED NURSES.—

13 Section 302d(a)(1) of title 37, United States Code, is

14 amended by striking ‘‘December 31, 2001’’ and inserting

15 ‘‘December 31, 2002’’.

16 (c) INCENTIVE SPECIAL PAY FOR NURSE ANES17 THETISTS.—Section 302e(a)(1) of title 37, United States

18 Code, is amended by striking ‘‘December 31, 2001’’ and

19 inserting ‘‘December 31, 2002’’.

20 SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AU21 THORITIES FOR NUCLEAR OFFICERS.

22 (a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI23 CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section

24 312(e) of such title is amended by striking ‘‘December 31,

25 2001’’ and inserting ‘‘December 31, 2002’’.
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1 (b) NUCLEAR CAREER ACCESSION BONUS.—Section

2 312b(c) of such title is amended by striking ‘‘December

3 31, 2001’’ and inserting ‘‘December 31, 2002’’.

4 (c) NUCLEAR CAREER ANNUAL INCENTIVE

5 BONUS.—Section 312c(d) of such title is amended by

6 striking ‘‘December 31, 2001’’ and inserting ‘‘December

7 31, 2002’’.

8 SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAY9 MENT OF OTHER BONUSES AND SPECIAL

10 PAYS.

11 (a) AVIATION OFFICER RETENTION BONUS.—Sec12 tion 301b(a) of title 37, United States Code, is amended

13 by striking ‘‘December 31, 2001,’’ and inserting ‘‘Decem14 ber 31, 2002,’’.

15 (b) REENLISTMENT BONUS FOR ACTIVE MEM16 BERS.—Section 308(g) of such title is amended by strik17 ing ‘‘December 31, 2001’’ and inserting ‘‘December 31,

18 2002’’.

19 (c) BONUS FOR ENLISTMENT FOR TWO OR MORE

20 YEARS.—Section 309(e) of such title is amended by strik21 ing ‘‘December 31, 2001’’ and inserting ‘‘December 31,

22 2002’’.

23 (d) RETENTION BONUS FOR MEMBERS WITH CRIT24 ICAL SKILLS.—Section 323(i) of such title is amended by
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1 striking ‘‘December 31, 2001’’ and inserting ‘‘December

2 31, 2002’’.

3 SEC. 615. HAZARDOUS DUTY PAY FOR MEMBERS OF MARI4 TIME VISIT, BOARD, SEARCH, AND SEIZURE

5 TEAMS.

6 (a) ELIGIBILITY.—Section 301(a) of title 37, United

7 States Code, is amended—

8 (1) by striking ‘‘or’’ at the end of paragraph

9 (10);

10 (2) by striking the period at the end of para11 graph (11) and inserting ‘‘; or’’; and

12 (3) by inserting at the end the following new

13 paragraph:

14 ‘‘(12) involving regular participation as a mem15 ber of a team conducting visit, board, search, and

16 seizure operations aboard vessels in support of mari17 time interdiction operations.’’.

18 (b) EFFECTIVE DATE.—This section and the amend19 ments made by this section shall take effect on October

20 1, 2001.

21 SEC. 616. SUBMARINE DUTY INCENTIVE PAY RATES.

22 (a) AUTHORITY.—Section 301c of title 37, United

23 States Code, is amended by striking subsection (b) and

24 inserting the following:
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1 ‘‘(b) The Secretary of the Navy shall prescribe the

2 monthly rates of submarine duty incentive pay. The max3 imum monthly rate may not exceed $1,000.’’.

4 (b) CONFORMING AMENDMENTS.—(1) Subsection (a)

5 of such section is amended—

6 (A) by striking ‘‘in the amount set forth in sub7 section (b)’’ in paragraphs (1) and (2); and

8 (B) in paragraph (4), by striking ‘‘that pay in

9 the amount set forth in subsection (b)’’ and insert10 ing ‘‘submarine duty incentive pay’’.

11 (2) Subsection (d) of such section is amended by

12 striking ‘‘monthly incentive pay authorized by subsection

13 (b)’’ and inserting ‘‘monthly submarine duty incentive pay

14 authorized’’.

15 (c) EFFECTIVE DATE.—The amendments made by

16 this section shall take effect on October 1, 2002.

17 SEC. 617. CAREER SEA PAY.

18 (a) IN GENERAL.—Section 305a(d) of title 37,

19 United States Code, is amended by adding at the end the

20 following: ‘‘Under no circumstances shall a member of the

21 uniformed services be excluded from this entitlement by

22 virtue of his or her rank, no matter how junior, or sub23 jected to a minimum time in service or underway in order

24 to rate this entitlement.’’.
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1 (b) EFFECTIVE DATE AND APPLICABILITY.—The

2 amendment made by subsection (a) shall take effect on

3 October 1, 2001, and shall apply with respect to pay peri4 ods beginning on or after that date.

5 SEC. 618. MODIFICATION OF ELIGIBILITY REQUIREMENTS

6 FOR INDIVIDUAL READY RESERVE BONUS

7 FOR REENLISTMENT, ENLISTMENT, OR EX8 TENSION OF ENLISTMENT.

9 (a) ELIGIBILITY BASED ON QUALIFICATIONS IN

10 CRITICALLY SHORT WARTIME SKILLS OR SPECIALTIES.—

11 Section 308h(a) of title 37, United States Code, is amend12 ed to read as follows:

13 ‘‘(a)(1) The Secretary concerned may pay a bonus as

14 provided in subsection (b) to an eligible person who reen15 lists, enlists, or voluntarily extends an enlistment in a re16 serve component of an armed force for assignment to an

17 element (other than the Selected Reserve) of the Ready

18 Reserve of that armed force if the reenlistment, enlist19 ment, or extension is for a period of three years, or for

20 a period of six years, beyond any other period the person

21 is obligated to serve.

22 ‘‘(2) A person is eligible for a bonus under this sec23 tion if the person—

24 ‘‘(A) is or has been a member of an armed

25 force;
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1 ‘‘(B) is qualified in a skill or specialty des2 ignated by the Secretary concerned as a critically

3 short wartime skill or critically short wartime spe4 cialty, respectively; and

5 ‘‘(C) has not failed to complete satisfactorily

6 any original term of enlistment in the armed forces.

7 ‘‘(3) For the purposes of this section, the Secretary

8 concerned may designate a skill or specialty as a critically

9 short wartime skill or critically short wartime specialty,

10 respectively, for an armed force under the jurisdiction of

11 the Secretary if the Secretary determines that—

12 ‘‘(A) the skill or specialty is critical to meet

13 wartime requirements of the armed force; and

14 ‘‘(B) there is a critical shortage of personnel in

15 that armed force who are qualified in that skill or

16 specialty.’’.

17 (b) REGULATIONS.—The Secretaries of the military

18 departments shall prescribe the regulations necessary for

19 administering section 308h of title 37, United States

20 Code, as amended by this section, not later than the effec21 tive date determined under subsection (c)(1).

22 (c) EFFECTIVE DATE.—This section and the amend23 ments made by this section—
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1 (1) shall take effect on the first day of the first

2 month that begins more than 180 days after the

3 date of the enactment of this Act; and

4 (2) shall apply with respect to reserve compo5 nent reenlistments, enlistments, and extensions of

6 enlistments that are executed on or after the first

7 day of that month.

8 SEC. 619. ACCESSION BONUS FOR OFFICERS IN CRITICAL

9 SKILLS.

10 (a) IN GENERAL.—(1) Chapter 5 of title 37, United

11 States Code, is amended by inserting after section 323 the

12 following new section:

13 ‘‘§ 324. Special pay: critical officer skills accession

14 bonus

15 ‘‘(a) ACCESSION BONUS AUTHORIZED.—A person

16 who executes a written agreement to accept a commission

17 as an officer of an armed force and serve on active duty

18 in a designated critical officer skill for the period specified

19 in the agreement may be paid an accession bonus upon

20 acceptance of the written agreement by the Secretary con21 cerned.

22 ‘‘(b) DESIGNATION OF CRITICAL OFFICER SKILLS.—

23 (1) The Secretary of Defense, or the Secretary of Trans24 portation with respect to the Coast Guard when it is not

25 operating as a service in the Navy, shall designate the crit-
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1 ical officer skills for the purposes of this section. The Sec2 retary of Defense may so designate a skill for any one

3 or more of the armed forces.

4 ‘‘(2) A skill may be designated as a critical officer

5 skill for an armed force for the purposes of this section

6 if—

7 ‘‘(A) in order to meet requirements of the

8 armed force, it is critical for the armed force to have

9 a sufficient number of officers who are qualified in

10 that skill; and

11 ‘‘(B) in order to mitigate a current or projected

12 significant shortage of personnel in the armed force

13 who are qualified in that skill, it is critical to access

14 into that armed force in sufficient numbers persons

15 who are qualified in that skill or are to be trained

16 in that skill.

17 ‘‘(c) AMOUNT OF BONUS.—The amount of a bonus

18 paid with respect to a critical officer skill shall be deter19 mined under regulations jointly prescribed by the Sec20 retary of Defense and the Secretary of Transportation,

21 but may not exceed $20,000.

22 ‘‘(d) LIMITATION ON ELIGIBILITY FOR BONUS.—An

23 individual may not be paid a bonus under subsection (a)

24 if the individual has received, or is receiving, an accession
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1 bonus for the same period of service under section 302d,

2 302h, or 312b of this title.

3 ‘‘(e) PAYMENT METHOD.—Upon acceptance of a

4 written agreement referred to in subsection (a) by the Sec5 retary concerned, the total amount payable pursuant to

6 the agreement under this section becomes fixed and may

7 be paid by the Secretary in either a lump sum or install8 ments.

9 ‘‘(f) REPAYMENT FOR FAILURE TO COMPLETE OBLI10 GATED SERVICE.—(1) A person who, after having received

11 all or part of the bonus under this section pursuant to

12 an agreement referred to in subsection (a), fails to accept

13 an appointment as a commissioned officer or to commence

14 or complete the total period of active duty service in a

15 designated critical officer skill as provided in the agree16 ment shall refund to the United States the amount that

17 bears the same ratio to the total amount of the bonus au18 thorized for such person as the unserved part of the period

19 of agreed active duty service in a designated critical officer

20 skill bears to the total period of the agreed active duty

21 service, but not more than the amount that was paid to

22 the person.

23 ‘‘(2) Subject to paragraph (3), an obligation to reim24 burse the United States imposed under paragraph (1) is

25 for all purposes a debt owed to the United States.
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•S 1419 PCS

1 ‘‘(3) The Secretary concerned may waive, in whole

2 or in part, a refund required under paragraph (1) if the

3 Secretary concerned determines that recovery would be

4 against equity and good conscience or would be contrary

5 to the best interests of the United States.

6 ‘‘(4) A discharge in bankruptcy under title 11 that

7 is entered less than five years after the termination of a

8 written agreement entered into under subsection (a) does

9 not discharge the person signing the agreement from a

10 debt arising under such agreement or under paragraph

11 (1).

12 ‘‘(g) TERMINATION OF AUTHORITY.—No bonus may

13 be paid under this section with respect to an agreement

14 entered into after December 31, 2002.’’.

15 (2) The table of sections at the beginning of such

16 chapter is amended by inserting after the item relating

17 to section 323 the following new item:

‘‘324. Special pay: critical officer skills accession bonus.’’.

18 (b) EFFECTIVE DATE.—Section 324 of title 37,

19 United States Code (as added by subsection (a)), shall

20 take effect on October 1, 2001.
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1 SEC. 620. MODIFICATION OF THE NURSE OFFICER CAN2 DIDATE ACCESSION PROGRAM RESTRICTION

3 ON STUDENTS ATTENDING CIVILIAN EDU4 CATIONAL INSTITUTIONS WITH SENIOR RE5 SERVE OFFICERS’ TRAINING PROGRAMS.

6 Section 2130a of title 10, United States Code, is

7 amended—

8 (1) in subsection (a)(2), by striking ‘‘that does

9 not have a Senior Reserve Officers’ Training Pro10 gram established under section 2102 of this title’’;

11 and

12 (2) in subsection (b)(1), by striking ‘‘that does

13 not have a Senior Reserve Officers’ Training Pro14 gram established under section 2102 of this title’’

15 and inserting ‘‘and, in the case of a student so en16 rolled at a civilian institution that has a Senior Re17 serve Officers’ Training Program established under

18 section 2102 of this title, is not eligible to partici19 pate in the Senior Reserve Officers’ Training Pro20 gram’’.
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1 Subtitle C—Travel and

2 Transportation Allowances

3 SEC. 631. ELIGIBILITY FOR TEMPORARY HOUSING ALLOW4 ANCE WHILE IN TRAVEL OR LEAVE STATUS

5 BETWEEN PERMANENT DUTY STATIONS.

6 (a) PERSONNEL IN GRADES BELOW E–4.—Section

7 403(i) of title 37, United States Code, is amended by

8 striking ‘‘who is in a pay grade E–4 (4 or more years

9 of service) or above’’.

10 (b) EFFECTIVE DATE.—The amendment made by

11 subsection (a) shall take effect on October 1, 2001.

12 SEC. 632. ELIGIBILITY FOR PAYMENT OF SUBSISTENCE EX13 PENSES ASSOCIATED WITH OCCUPANCY OF

14 TEMPORARY LODGING INCIDENT TO RE15 PORTING TO FIRST PERMANENT DUTY STA16 TION.

17 (a) OFFICER PERSONNEL.—Section 404a(a)(2)(C) of

18 title 37, United States Code, is amended by striking ‘‘an

19 enlisted member’’ and inserting ‘‘a member’’.

20 (b) EFFECTIVE DATE.—The amendment made by

21 subsection (a) shall take effect on October 1, 2001.

22 SEC. 633. ELIGIBILITY FOR DISLOCATION ALLOWANCE.

23 (a) MEMBERS WITH DEPENDENTS WHEN ORDERED

24 TO FIRST DUTY STATION.—Section 407 of title 37,

25 United States Code, is amended—
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•S 1419 PCS

1 (1) in subsection (a)(2), by adding at the end

2 the following new subparagraph:

3 ‘‘(F) A member whose dependents actually

4 move from the member’s place of residence in con5 nection with the performance of orders for the mem6 ber to report to the member’s first permanent duty

7 station if the move—

8 ‘‘(i) is to the permanent duty station or a

9 designated location; and

10 ‘‘(ii) is an authorized move.’’; and

11 (2) in subsection (e), by inserting ‘‘(except as

12 provided in subsection (a)(2)(F))’’ after ‘‘first duty

13 station’’.

14 (b) MARRIED MEMBERS WITHOUT DEPENDENTS AS15 SIGNED TO GOVERNMENT FAMILY QUARTERS.—Sub16 section (a) of such section, as amended by subsection (a),

17 is further amended—

18 (1) by adding at the end of paragraph (2) the

19 following new subparagraph:

20 ‘‘(G) Each of two members married to each

21 other who—

22 ‘‘(i) is without dependents;

23 ‘‘(ii) actually moves with the member’s

24 spouse to a new permanent duty station; and
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•S 1419 PCS

1 ‘‘(iii) is assigned to family quarters of the

2 United States at or in the vicinity of the new

3 duty station.’’; and

4 (2) by adding at the end of the subsection the

5 following new paragraph:

6 ‘‘(4) If a primary dislocation allowance is payable to

7 two members described in subparagraph (G) of paragraph

8 (2) who are married to each other, the amount of the al9 lowance payable to such members shall be the amount oth10 erwise payable under this subsection to the member in the

11 higher pay grade, or to either member if both members

12 are in the same pay grade. The allowance shall be paid

13 jointly to both members.’’.

14 (c) EFFECTIVE DATE.—This section and the amend15 ments made by this section shall take effect on October

16 1, 2001.

17 SEC. 634. ALLOWANCE FOR DISLOCATION FOR THE CON18 VENIENCE OF THE GOVERNMENT AT HOME

19 STATION.

20 (a) AUTHORITY.—(1) Chapter 7 of title 37, United

21 States Code is amended by inserting after section 407 the

22 following new section:
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1 ‘‘§ 407a. Travel and transportation: allowance for dis2 location for the convenience of the Gov3 ernment at home station

4 ‘‘(a) AUTHORITY.—Under regulations prescribed by

5 the Secretary concerned, a member of the uniformed serv6 ices may be paid a dislocation allowance under this section

7 when ordered, for the convenience of the Government and

8 not pursuant to a permanent change of station, to occupy

9 or to vacate family housing provided by the Department

10 of Defense, or by the Department of Transportation in

11 the case of the Coast Guard.

12 ‘‘(b) AMOUNT.—(1) Subject to paragraph (2), the

13 amount of a dislocation allowance paid under this section

14 is $500.

15 ‘‘(2) Effective on the same date that the monthly

16 rates of basic pay for members of the uniformed services

17 are increased under section 1009 of this title or by a law

18 increasing those rates by a percentage specified in the law,

19 the amount of the dislocation allowance provided under

20 this section shall be increased by the percentage by which

21 the monthly rates of basic pay are so increased.

22 ‘‘(c) ADVANCE PAYMENT.—A dislocation allowance

23 payable under this section may be paid in advance.’’.

24 (2) The table of sections at the beginning of such

25 chapter is amended by inserting after the item relating

26 to section 407 the following new item:
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‘‘407a. Travel and transportation: allowance for dislocation for the convenience

of the Government at home station.’’.

1 (b) EFFECTIVE DATE.—Section 407a of title 37,

2 United States Code, shall take effect on October 1, 2001.

3 SEC. 635. TRAVEL AND TRANSPORTATION ALLOWANCES

4 FOR FAMILY MEMBERS TO ATTEND THE BUR5 IAL OF A DECEASED MEMBER OF THE UNI6 FORMED SERVICES.

7 (a) CONSOLIDATION OF AUTHORITIES.—Section 411f

8 of title 37, United States Code, is amended—

9 (1) in subsection (a)—

10 (A) by inserting ‘‘ALLOWANCES AUTHOR11 IZED.—(1)’’ after ‘‘(a)’’;

12 (B) by striking ‘‘the dependents of a mem13 ber’’ and inserting ‘‘eligible members of the

14 family of a member of the uniformed services’’;

15 (C) by striking ‘‘such dependents’’ and in16 serting ‘‘such persons’’; and

17 (D) by inserting at the end the following

18 new paragraph:

19 ‘‘(2) An attendant accompanying a person provided

20 travel and transportation allowances under this section for

21 travel to the burial ceremony for a deceased member may

22 also be provided under the uniform regulations round trip

23 travel and transportation allowances for travel to the bur24 ial ceremony if—
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1 ‘‘(A) the accompanied person is unable to travel

2 unattended because of age, physical condition, or

3 other justifiable reason, as determined under the

4 uniform regulations; and

5 ‘‘(B) there is no other eligible member of the

6 family of the deceased member traveling to the bur7 ial ceremony who is eligible for travel and transpor8 tation allowances under this section and is qualified

9 to serve as the attendant.’’;

10 (2) in subsection (b)—

11 (A) in paragraph (1)—

12 (i) by striking ‘‘(1) Except as pro13 vided in paragraph (2)’’ and inserting

14 ‘‘LIMITATIONS.—(1) Except as provided in

15 paragraphs (2) and (3)’’; and

16 (ii) by inserting before the period at

17 the end the following: ‘‘and the time nec18 essary for such travel’’;

19 (B) in paragraph (2), by striking ‘‘be ex20 tended to accommodate’’ and inserting ‘‘not ex21 ceed the rates for 2 days and’’; and

22 (C) by adding at the end the following new

23 paragraph:

24 ‘‘(3) If a deceased member is interred in a cemetery

25 maintained by the American Battle Monuments Commis-
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•S 1419 PCS

1 sion, the travel and transportation allowances authorized

2 under this section may be provided to and from such ceme3 tery and may not exceed the rates for 2 days and the time

4 necessary for such travel.’’; and

5 (3) by striking subsection (c) and inserting the

6 following:

7 ‘‘(c) ELIGIBLE MEMBERS OF FAMILY.—The fol8 lowing members of the family of a deceased member of

9 the uniformed services are eligible for the travel and trans10 portation allowances under this section:

11 ‘‘(1) The surviving spouse (including a remar12 ried surviving spouse) of the deceased member.

13 ‘‘(2) The unmarried child or children of the de14 ceased member referred to in section 401(a)(2) of

15 this title.

16 ‘‘(3) If no person described in paragraphs (1)

17 and (2) is provided travel and transportation allow18 ances under this section, the parent or parents of

19 the deceased member (as defined in section

20 401(b)(2) of this title).

21 ‘‘(4) If no person described in paragraphs (1),

22 (2), and (3) is provided travel and transportation al23 lowances under this section, then—

24 ‘‘(A) the person who directs the disposition

25 of the remains of the deceased member under
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1 section 1482(c) of title 10, or, in the case of a

2 deceased member whose remains are commin3 gled and buried in a common grave in a na4 tional cemetery, the person who would have

5 been designated under such section to direct the

6 disposition of the remains if individual identi7 fication had been made; and

8 ‘‘(B) up to two additional persons closely

9 related to the deceased member who are se10 lected by the person referred to in subpara11 graph (A).

12 ‘‘(d) DEFINITIONS.—In this section:

13 ‘‘(1) The term ‘burial ceremony’ includes the

14 following:

15 ‘‘(A) An interment of casketed or cremated

16 remains.

17 ‘‘(B) A placement of cremated remains in

18 a columbarium.

19 ‘‘(C) A memorial service for which reim20 bursement is authorized under section

21 1482(d)(2) of title 10.

22 ‘‘(D) A burial of commingled remains that

23 cannot be individually identified in a common

24 grave in a national cemetery.
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1 ‘‘(2) The term ‘member of the family’ includes

2 a person described in section 1482(c)(4) of title 10

3 who, except for this paragraph, would not otherwise

4 be considered a family member.’’.

5 (b) REPEAL OF SUPERSEDED LAWS.—(1) Section

6 1482 of title 10, United States Code, is amended by strik7 ing subsection (d) and redesignating subsections (e), (f),

8 and (g) as subsections (d), (e), and (f), respectively.

9 (2) The Funeral Transportation and Living Expense

10 Benefits Act of 1974 (Public Law 93–257; 88 Stat. 53;

11 37 U.S.C. 406 note) is repealed.

12 (c) APPLICABILITY.—The amendments made by this

13 Act shall apply with respect to deaths that occur on or

14 after the later of—

15 (1) October 1, 2001; or

16 (2) the date of the enactment of this Act.

17 SEC. 636. FAMILY SEPARATION ALLOWANCE FOR MEMBERS

18 ELECTING UNACCOMPANIED TOUR BY REA19 SON OF HEALTH LIMITATIONS OF DEPEND20 ENTS.

21 (a) ELIGIBILITY.—Section 427(c) of title 37, United

22 States Code, is amended—

23 (1) in the first sentence, by striking ‘‘A member

24 who elects’’ and inserting ‘‘(1) Except as provided in

25 paragraph (2), a member who elects’’;
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•S 1419 PCS

1 (2) in the second sentence, by striking ‘‘The

2 Secretary concerned may waive the preceding sen3 tence’’ and inserting the following:

4 ‘‘(3) The Secretary concerned may waive paragraph

5 (1)’’; and

6 (3) by inserting after paragraph (1) (as des7 ignated by the amendment made by paragraph (1)

8 of this section) the following new paragraph:

9 ‘‘(2) The prohibition in the first sentence of para10 graph (1) does not apply in the case of a member who

11 elects to serve a tour of duty unaccompanied by his de12 pendents at the member’s permanent station because a de13 pendent cannot accompany the member to or at that per14 manent station for medical reasons certified by a health

15 care professional in accordance with regulations prescribed

16 for the administration of this section.’’.

17 (b) EFFECTIVE DATE.—This section and the amend18 ments made by this section shall take effect on October

19 1, 2001.

20 SEC. 637. FUNDED STUDENT TRAVEL FOR FOREIGN STUDY

21 UNDER AN EDUCATION PROGRAM APPROVED

22 BY A UNITED STATES SCHOOL.

23 (a) AUTHORITY.—Section 430 of title 37, United

24 States Code, is amended—

25 (1) in subsection (a)(3)—
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1 (A) by striking ‘‘attending’’ and inserting

2 ‘‘enrolled in’’; and

3 (B) by inserting before the comma at the

4 end the following: ‘‘and is attending that school

5 or is participating in a foreign study program

6 approved by that school and, pursuant to that

7 program, is attending a school outside the

8 United States for a period of not more than one

9 year’’; and

10 (2) in subsection (b)—

11 (A) in the first sentence of paragraph (1),

12 by striking ‘‘each unmarried dependent child,’’

13 and all that follows through ‘‘the school being

14 attended’’ and inserting ‘‘each unmarried de15 pendent child (described in subsection (a)(3)) of

16 one annual trip between the school being at17 tended by that child’’; and

18 (B) by adding at the end the following new

19 paragraph:

20 ‘‘(3) The transportation allowance paid under para21 graph (1) for an annual trip of a dependent child de22 scribed in subsection (a)(3) who is attending a school out23 side the United States may not exceed the transportation

24 allowance that would be paid under this section for the

25 annual trip of that child between the child’s school in the
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1 continental United States and the member’s duty station

2 outside the continental United States and return.’’.

3 (b) EFFECTIVE DATE.—This section and the amend4 ments made by this section shall take effect on October

5 1, 2001, and shall apply with respect to travel that origi6 nates outside the continental United States (as defined in

7 section 430(f) of title 37, United States Code), on or after

8 that date.

9 SEC. 638. TRANSPORTATION OR STORAGE OF PRIVATELY

10 OWNED VEHICLES ON CHANGE OF PERMA11 NENT STATION.

12 (a) ADVANCE PAYMENT OF STORAGE COSTS.—Sec13 tion 2634(b) of title 10, United States Code, is amended

14 by adding at the end the following new paragraph:

15 ‘‘(4) Storage costs payable under this subsection may

16 be paid in advance.’’.

17 (b) SHIPMENT IN PERMANENT CHANGE OF STATION

18 WITHIN CONUS.—Subsection (h)(1) of such section is

19 amended—

20 (1) by striking ‘‘includes’’ in the second sen21 tence and all that follows and inserting ‘‘includes the

22 following:’’; and

23 (2) by adding at the end the following subpara24 graphs:
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1 ‘‘(A) An authorized change in home port of

2 a vessel.

3 ‘‘(B) A transfer or assignment between

4 two permanent stations in the continental

5 United States when—

6 ‘‘(i) the member cannot, because of

7 injury or the conditions of the order, drive

8 the motor vehicle between the permanent

9 duty stations; or

10 ‘‘(ii) the Secretary concerned deter11 mines that it is advantageous and cost-ef12 fective to the Government for one motor

13 vehicle of the member to be transported

14 between the permanent duty stations.’’.

15 (c) EFFECTIVE DATE.—This section and the amend16 ments made by this section shall take effect on October

17 1, 2001.

18 Subtitle D—Matters Relating to

19 Retirement and Survivor Benefits

20 SEC. 651. PAYMENT OF RETIRED PAY AND COMPENSATION

21 TO DISABLED MILITARY RETIREES.

22 (a) RESTORATION OF RETIRED PAY BENEFITS.—

23 Chapter 71 of title 10, United States Code, is amended

24 by adding at the end the following new section:
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1 ‘‘§ 1414. Members eligible for retired pay who have

2 service-connected disabilities: payment of

3 retired pay and veterans’ disability com4 pensation

5 ‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM6 PENSATION.—Except as provided in subsection (b), a

7 member or former member of the uniformed services who

8 is entitled to retired pay (other than as specified in sub9 section (c)) and who is also entitled to veterans’ disability

10 compensation is entitled to be paid both without regard

11 to sections 5304 and 5305 of title 38.

12 ‘‘(b) SPECIAL RULE FOR CHAPTER 61 CAREER RE13 TIREES.—The retired pay of a member retired under

14 chapter 61 of this title with 20 years or more of service

15 otherwise creditable under section 1405 of this title at the

16 time of the member’s retirement is subject to reduction

17 under sections 5304 and 5305 of title 38, but only to the

18 extent that the amount of the member’s retired pay under

19 chapter 61 of this title exceeds the amount of retired pay

20 to which the member would have been entitled under any

21 other provision of law based upon the member’s service

22 in the uniformed services if the member had not been re23 tired under chapter 61 of this title.

24 ‘‘(c) EXCEPTION.—Subsection (a) does not apply to

25 a member retired under chapter 61 of this title with less
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1 than 20 years of service otherwise creditable under section

2 1405 of this title at the time of the member’s retirement.

3 ‘‘(d) DEFINITIONS.—In this section:

4 ‘‘(1) The term ‘retired pay’ includes retainer

5 pay, emergency officers’ retirement pay, and naval

6 pension.

7 ‘‘(2) The term ‘veterans’ disability compensa8 tion’ has the meaning given the term ‘compensation’

9 in section 101(13) of title 38.’’.

10 (b) REPEAL OF SPECIAL COMPENSATION PRO11 GRAM.—Section 1413 of such title is repealed.

12 (c) CLERICAL AMENDMENTS.—The table of sections

13 at the beginning of such chapter is amended—

14 (1) by striking the item relating to section

15 1413; and

16 (2) by adding at the end the following new

17 item:

‘‘1414. Members eligible for retired pay who have service-connected disabilities:

payment of retired pay and veterans’ disability compensation.’’.

18 (d) EFFECTIVE DATE.—(1) The amendments made

19 by this section shall take effect on the later of—

20 (A) the first day of the first month that begins

21 after the date of the enactment of qualifying offset22 ting legislation as described in subsection (e); or

23 (B) October 1, 2002.
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1 (2) No benefits may be paid to any person by reason

2 of section 1414 of title 10, United States Code, as added

3 by the amendment made by subsection (a), for any period

4 before the effective date under paragraph (1).

5 (e) EFFECTIVENESS CONTINGENT ON OFFSETTING

6 LEGISLATION.—(1) The amendments made by this section

7 shall be effective only if—

8 (A) the President, in the budget for fiscal year

9 2003 that is submitted to Congress under section

10 1105(a) of title 31, United States Code, proposes

11 legislation which, if enacted, would be qualifying off12 setting legislation; and

13 (B) there is enacted during the second session

14 of the One Hundred Seventh Congress qualifying

15 offsetting legislation.

16 (2) In this section:

17 (A) The term ‘‘qualifying offsetting legislation’’

18 means legislation (other than an appropriations Act)

19 that includes provisions that—

20 (i) offset fully the increased outlays for

21 each of fiscal years 2003 through 2012 to be

22 made by reason of the amendments made by

23 this section;
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1 (ii) expressly state that they are enacted

2 for the purpose of the offset described in clause

3 (i); and

4 (iii) are included in full on the PayGo

5 scorecard.

6 (B) The term ‘‘PayGo scorecard’’ means the es7 timates that are made with respect to fiscal years

8 through fiscal year 2012 by the Director of the Con9 gressional Budget Office and the Director of the Of10 fice of Management and Budget under section

11 252(d) of the Balanced Budget and Emergency Def12 icit Control Act of 1985.

13 Subtitle E—Other Matters

14 SEC. 661. EDUCATION SAVINGS PLAN FOR REENLISTMENTS

15 AND EXTENSIONS OF SERVICE IN CRITICAL

16 SPECIALTIES.

17 (a) ESTABLISHMENT OF SAVINGS PLAN.—(1) Chap18 ter 5 of title 37, United States Code, is amended by add19 ing at the end the following new section:

20 ‘‘§ 324. Incentive bonus: savings plan for education

21 expenses and other contingencies

22 ‘‘(a) BENEFIT AND ELIGIBILITY.—The Secretary

23 concerned may purchase United States savings bonds

24 under this section for a member of the armed forces who

25 is eligible as follows:
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1 ‘‘(1) A member who, before completing three

2 years of service on active duty, enters into a commit3 ment to perform qualifying service.

4 ‘‘(2) A member who, after completing three

5 years of service on active duty but not more than

6 nine years of service on active duty, enters into a

7 commitment to perform qualifying service.

8 ‘‘(3) A member who, after completing nine

9 years of service on active duty, enters into a commit10 ment to perform qualifying service.

11 ‘‘(b) QUALIFYING SERVICE.—For the purposes of

12 this section, qualifying service is service on active duty in

13 a specialty designated by the Secretary concerned as crit14 ical to meet requirements (whether or not such specialty

15 is designated as critical to meet wartime or peacetime re16 quirements) for a period that—

17 ‘‘(1) is not less than six years; and

18 ‘‘(2) does not include any part of a period for

19 which the member is obligated to serve on active

20 duty under an enlistment or other agreement for

21 which a benefit has previously been paid under this

22 section.

23 ‘‘(c) FORMS OF COMMITMENT TO ADDITIONAL SERV24 ICE.—For the purposes of this section, a commitment

25 means—
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1 ‘‘(1) in the case of an enlisted member, a reen2 listment; and

3 ‘‘(2) in the case of a commissioned officer, an

4 agreement entered into with the Secretary con5 cerned.

6 ‘‘(d) AMOUNTS OF BONDS.—The total of the face

7 amounts of the United States savings bonds authorized

8 to be purchased for a member under this section for a

9 commitment shall be as follows:

10 ‘‘(1) In the case of a purchase for a member

11 under paragraph (1) of subsection (a), $5,000.

12 ‘‘(2) In the case of a purchase for a member

13 under paragraph (2) of subsection (a), the amount

14 equal to the excess of $15,000 over the total of the

15 face amounts of any United States savings bonds

16 previously purchased for the member under this sec17 tion.

18 ‘‘(3) In the case of a purchase for a member

19 under paragraph (3) of subsection (a), the amount

20 equal to the excess of $30,000 over the total of the

21 face amounts of any United States savings bonds

22 previously purchased for the member under this sec23 tion.

24 ‘‘(e) TOTAL AMOUNT OF BENEFIT.—The total

25 amount of the benefit authorized for a member when
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1 United States savings bonds are purchased for the mem2 ber under this section by reason of a commitment by that

3 member shall be the sum of—

4 ‘‘(1) the purchase price of the United States

5 savings bonds; and

6 ‘‘(2) the amounts that would be deducted and

7 withheld for the payment of individual income taxes

8 if the total amount computed under this subsection

9 for that commitment were paid to the member as a

10 bonus.

11 ‘‘(f) AMOUNT WITHHELD FOR TAXES.—The total

12 amount payable for a member under subsection (e)(2) for

13 a commitment by that member shall be withheld, credited,

14 and otherwise treated in the same manner as amounts de15 ducted and withheld from the basic pay of the member.

16 ‘‘(g) REPAYMENT FOR FAILURE TO COMPLETE OB17 LIGATED SERVICE.—(1) If a person fails to complete the

18 qualifying service for which the person is obligated under

19 a commitment for which a benefit has been paid under

20 this section, the person shall refund to the United States

21 the amount that bears the same ratio to the total amount

22 paid for the person (as computed under subsection (e))

23 for that particular commitment as the uncompleted part

24 of the period of qualifying service bears to the total period

25 of the qualifying service for which obligated.
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1 ‘‘(2) Subject to paragraph (3), an obligation to reim2 burse the United States imposed under paragraph (1) is

3 for all purposes a debt owed to the United States.

4 ‘‘(3) The Secretary concerned may waive, in whole

5 or in part, a refund required under paragraph (1) if the

6 Secretary concerned determines that recovery would be

7 against equity and good conscience or would be contrary

8 to the best interests of the United States.

9 ‘‘(4) A discharge in bankruptcy under title 11 that

10 is entered less than five years after the termination of an

11 enlistment or other agreement under this section does not

12 discharge the person signing such reenlistment or other

13 agreement from a debt arising under the reenlistment or

14 agreement, respectively, or this subsection.

15 ‘‘(h) RELATIONSHIP TO OTHER SPECIAL PAYS.—The

16 benefit authorized under this section is in addition to any

17 other bonus or incentive or special pay that is paid or pay18 able to a member under any other provision of this chapter

19 for any portion of the same qualifying service.

20 ‘‘(i) REGULATIONS.—This section shall be adminis21 tered under regulations prescribed by the Secretary of De22 fense for the armed forces under his jurisdiction and by

23 the Secretary of Transportation for the Coast Guard when

24 the Coast Guard is not operating as a service in the

25 Navy.’’.
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1 (2) The table of sections at the beginning of such

2 chapter is amended by adding at the end the following

3 new item:

‘‘324. Incentive bonus: savings plan for education and other contingencies.’’.

4 (b) EFFECTIVE DATE.—Section 324 of title 37,

5 United States Code (as added by subsection (a)), shall

6 take effect on October 1, 2001, and shall apply with re7 spect to reenlistments and other agreements for qualifying

8 service (described in that section) that are entered into

9 on or after that date.

10 (c) FUNDING FOR FISCAL YEAR 2002.—Of the

11 amount authorized to be appropriated to the Department

12 of Defense for military personnel for fiscal year 2002 by

13 section 421, $20,000,000 may be available in that fiscal

14 year for the purchase of United States savings bonds

15 under section 324 of title 37, United States Code (as

16 added by subsection (a)).

17 SEC. 662. COMMISSARY BENEFITS FOR NEW MEMBERS OF

18 THE READY RESERVE.

19 (a) ELIGIBILITY.—Section 1063 of title 10, United

20 States Code, is amended—

21 (1) by redesignating subsections (b) and (c) as

22 subsections (c) and (d), respectively; and

23 (2) by inserting after subsection (a) the fol24 lowing new subsection (b):
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1 ‘‘(b) ELIGIBILITY OF NEW MEMBERS.—(1) The Sec2 retary concerned shall authorize a new member of the

3 Ready Reserve to use commissary stores of the Depart4 ment of Defense for a number of days accruing at the

5 rate of two days for each month in which the member par6 ticipates satisfactorily in training required under section

7 10147(a)(1) of this title or section 502(a) of title 32, as

8 the case may be.

9 ‘‘(2) For the purposes of paragraph (1), a person

10 shall be considered a new member of the Ready Reserve

11 upon becoming a member and continuing without a break

12 in the membership until the earlier of—

13 ‘‘(A) the date on which the member becomes el14 igible to use commissary stores under subsection (a);

15 or

16 ‘‘(B) December 31 of the first calendar year in

17 which the membership has been continuous for the

18 entire year.

19 ‘‘(3) A new member may not be authorized under this

20 subsection to use commissary stores for more than 24 days

21 for any calendar year.’’.

22 (b) REQUIRED DOCUMENTATION.—Subsection (d) of

23 such section, as redesignated by subsection (a)(1), is

24 amended by adding at the end the following: ‘‘The regula25 tions shall specify the required documentation of satisfac-
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1 tory participation in training for the purposes of sub2 section (b).’’.

3 (c) CONFORMING AMENDMENT.—Subsection (c) of

4 such section, as redesignated by subsection (a)(1), is

5 amended by striking ‘‘Subsection (a)’’ and inserting ‘‘Sub6 sections (a) and (b)’’.

7 (d) CLERICAL AMENDMENTS.—(1) The heading for

8 such section is amended to read as follows:

9 ‘‘§ 1063. Use of commissary stores: members of Ready

10 Reserve’’.

11 (2) Subsection (a) of such section is amended by

12 striking ‘‘OF READY RESERVE’’ and inserting ‘‘WITH 50

13 OR MORE CREDITABLE POINTS’’.

14 (3) The item relating to such section in the table of

15 sections at the beginning of chapter 54 of title 10, United

16 States Code, is amended to read as follows:

‘‘1063. Use of commissary stores: members of Ready Reserve.’’.

17 SEC. 663. AUTHORIZATION OF TRANSITIONAL COMPENSA18 TION AND COMMISSARY AND EXCHANGE BEN19 EFITS FOR DEPENDENTS OF COMMISSIONED

20 OFFICERS OF THE PUBLIC HEALTH SERVICE

21 AND THE NATIONAL OCEANIC AND ATMOS22 PHERIC ADMINISTRATION WHO ARE SEPA23 RATED FOR DEPENDENT ABUSE.

24 (a) COMMISSIONED OFFICERS OF THE PUBLIC

25 HEALTH SERVICE.—Section 221(a) of the Public Health
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1 Service Act (42 U.S.C. 213a(a)) is amended by adding

2 at the end the following new paragraph:

3 ‘‘(17) Section 1059, Transitional compensation

4 and commissary and exchange benefits for depend5 ents of members separated for dependent abuse.’’.

6 (b) COMMISSIONED OFFICERS OF THE NATIONAL

7 OCEANIC AND ATMOSPHERIC ADMINISTRATION.—Section

8 3(a) of the Act entitled ‘‘An Act to revise, codify, and

9 enact into law, title 10 of the United States Code, entitled

10 ‘Armed Forces’, and title 32 of the United States Code,

11 entitled ‘National Guard’ ’’, approved August 10, 1956 (33

12 U.S.C. 857a(a)), is amended by adding at the end the fol13 lowing new paragraph:

14 ‘‘(17) Section 1059, Transitional compensation

15 and commissary and exchange benefits for depend16 ents of members separated for dependent abuse.’’.

17 TITLE VII—HEALTH CARE

18 Subtitle A—TRICARE Benefits

19 Modernization

20 SEC. 701. REQUIREMENT FOR INTEGRATION OF BENEFITS.

21 (a) IN GENERAL.—The Secretary of Defense shall—

22 (1) terminate the Individual Case Management

23 Program carried out under section 1079(a)(17) of

24 title 10, United States Code (as in effect on Sep25 tember 30, 2001); and
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1 (2) integrate the beneficiaries under that pro2 gram, and the furnishing of care to those bene3 ficiaries, into the TRICARE program as modified

4 pursuant to the amendments made by this subtitle.

5 (b) REPEAL OF SEPARATE AUTHORITY.—Section

6 1079 of title 10, United States Code, is amended by strik7 ing paragraph (17).

8 (c) SAVINGS PROVISION.—Nothing in this subtitle or

9 the amendments made by this subtitle shall be

10 construed—

11 (1) to modify any eligibility requirement for any

12 person receiving benefits under the Individual Case

13 Management Program before October 1, 2001; or

14 (2) to terminate any benefits available under

15 that program before that date.

16 (d) CONSULTATION REQUIREMENT.—The Secretary

17 of Defense shall consult with the other administering Sec18 retaries referred to in section 1072(3) of title 10, United

19 States Code, in carrying out this section.

20 SEC. 702. DOMICILIARY AND CUSTODIAL CARE.

21 Section 1072 of title 10, United States Code, is

22 amended by adding at the end the following new para23 graphs:

24 ‘‘(8) The term ‘domiciliary care’ means treat25 ment or services involving assistance with the per-
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1 formance of activities of daily living that is provided

2 to a patient in a home-like setting because—

3 ‘‘(A) the treatment or services are not

4 available, or are not suitable to be provided, to

5 the patient in the patient’s home; or

6 ‘‘(B) no member of the patient’s family is

7 willing to provide the treatment or services.

8 ‘‘(9) The term ‘custodial care’—

9 ‘‘(A) means treatment or services that—

10 ‘‘(i) could be provided safely and rea11 sonably by a person not trained as a physi12 cian, nurse, paramedic, or other health

13 care provider; or

14 ‘‘(ii) are provided principally to assist

15 the recipient of the treatment or services

16 with the performance of activities of daily

17 living; and

18 ‘‘(B) includes any treatment or service de19 scribed in subparagraph (A) without regard

20 to—

21 ‘‘(i) the source of any recommenda22 tion to provide the treatment or service;

23 and

24 ‘‘(ii) the setting in which the treat25 ment or service is provided.’’.
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1 SEC. 703. LONG TERM CARE.

2 (a) LIMITATION.—Chapter 55 of title 10, United

3 States Code, is amended by inserting after section 1074i

4 the following new section:

5 ‘‘§ 1074j. Long term care benefits program

6 ‘‘(a) REQUIREMENT FOR PROGRAM.—The Secretary

7 of Defense shall provide long term health care benefits

8 under the TRICARE program in an effective and efficient

9 manner that integrates those benefits with the benefits

10 provided on a less than a long term basis under the

11 TRICARE program.

12 ‘‘(b) AUTHORIZED CARE.—The types of health care

13 authorized to be provided under this section shall include

14 the following:

15 ‘‘(1) The types of health care authorized to be

16 acquired by contract under section 1079 of this title.

17 ‘‘(2) Extended care services.

18 ‘‘(3) Post-hospital extended care services.

19 ‘‘(4) Comprehensive intermittent home health

20 services.

21 ‘‘(c) DURATION OF POST-HOSPITAL EXTENDED

22 CARE SERVICES.—The post-hospital extended care serv23 ices provided in a skilled nursing facility to a patient dur24 ing a spell of illness under subsection (b)(3) shall continue

25 for as long as is medically necessary and appropriate. The

26 limitation on the number of days of coverage under sub-
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1 sections (a)(2) and (b)(2)(A) of section 1812 of the Social

2 Security Act (42 U.S.C. 1395d) shall not apply with re3 spect to the care provided that patient.

4 ‘‘(d) REGULATIONS.—The Secretary of Defense shall,

5 after consultation with the other administering Secre6 taries, prescribe regulations to carry out this section.

7 ‘‘(e) DEFINITIONS.—In this section:

8 ‘‘(1) The term ‘extended care services’ has the

9 meaning given the term in subsection (h) of section

10 1861 of the Social Security Act (42 U.S.C. 1395x).

11 ‘‘(2) The term ‘post-hospital extended services’

12 has the meaning given the term in subsection (i) of

13 section 1861 of the Social Security Act (42 U.S.C.

14 1395x).

15 ‘‘(3) The term ‘home health services’ has the

16 meaning given the term in subsection (m) of section

17 1861 of the Social Security Act (42 U.S.C. 1395x).

18 ‘‘(4) The term ‘skilled nursing facility’ has the

19 meaning given the term in section 1819(a) of the

20 Social Security Act (42 U.S.C. 1395i–3(a)).

21 ‘‘(5) The term ‘spell of illness’ has the meaning

22 given the term in subsection (a) of section 1861 of

23 the Social Security Act (42 U.S.C. 1395x).’’.

24 (b) CLERICAL AMENDMENT.—The table of sections

25 at the beginning of such chapter is amended by inserting
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1 after the item relating to section 1074i the following new

2 item:

‘‘1074j. Long term care benefits program.’’.

3 SEC. 704. EXTENDED BENEFITS FOR DISABLED BENE4 FICIARIES.

5 Section 1079 of title 10, United States Code, is

6 amended by striking subsections (d), (e), and (f) and in7 serting the following:

8 ‘‘(d)(1) The health care benefits contracted for under

9 this section shall include extended benefits for dependents

10 referred to in the first sentence of subsection (a) who have

11 any of the following qualifying conditions:

12 ‘‘(A) Moderate or severe mental retardation.

13 ‘‘(B) A serious physical disability.

14 ‘‘(C) Any extraordinary physical or psycho15 logical condition.

16 ‘‘(2) The extended benefits under paragraph (1) may

17 include comprehensive health care and case management

18 services, to the extent not otherwise provided under this

19 chapter with respect to a qualifying condition, as follows:

20 ‘‘(A) Diagnosis.

21 ‘‘(B) Inpatient, outpatient, and comprehensive

22 home health supplies and services.

23 ‘‘(C) Training and rehabilitation, including spe24 cial education and assistive technology devices.
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1 ‘‘(D) Institutional care in private nonprofit,

2 public, and State institutions and facilities and,

3 when appropriate, transportation to and from such

4 institutions and facilities.

5 ‘‘(E) Any other services and supplies deter6 mined appropriate under regulations prescribed

7 under paragraph (9).

8 ‘‘(3) The extended benefits under paragraph (1) may

9 also include respite care for the primary caregiver of a

10 dependent eligible for extended benefits under this sub11 section.

12 ‘‘(4) Home health supplies and services may be pro13 vided to a dependent under paragraph (2)(B) as other

14 than part-time or intermittent services (as determined in

15 accordance with the second sentence of section 1861(m)

16 of the Social Security Act (42 U.S.C. 1395x(m)) only if—

17 ‘‘(A) the provision of such supplies and services

18 in the home of the dependent is medically appro19 priate; and

20 ‘‘(B) the cost of the provision of such supplies

21 and services to the dependent is equal to or less

22 than the cost of the provision of similar supplies and

23 services to the dependent in a skilled nursing facil24 ity.
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1 ‘‘(5) Subsection (a)(13) shall not apply to the provi2 sion of care and services determined appropriate to be pro3 vided as extended benefits under this subsection.

4 ‘‘(6) Subject to paragraph (7), a member of the uni5 formed services shall pay a share of the cost of any care

6 and services provided as extended benefits to any of the

7 dependents of the member under this subsection as fol8 lows:

9 ‘‘(A) In the case of a member in the lowest en10 listed pay grade, the first $25 of the cumulative

11 costs of all care furnished to one or more dependents

12 of the member in a month.

13 ‘‘(B) In the case of a member in the highest

14 commissioned pay grade, the first $250 of the cumu15 lative costs of all care furnished to one or more de16 pendents of the member in a month.

17 ‘‘(C) In the case of a member in any other pay

18 grade, a fixed amount of the cumulative costs of all

19 care furnished to one or more dependents of the

20 member in a month, as prescribed for that pay

21 grade in regulations prescribed under paragraph (9).

22 ‘‘(7)(A) In the case of extended benefits provided

23 under subparagraph (C) or (D) of paragraph (2) to a de24 pendent of a member of the uniformed services—
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1 ‘‘(i) the Government’s share of the total cost of

2 providing such benefits in any month shall not ex3 ceed $2,500, except for costs that a member is ex4 empt from paying under subparagraph (B); and

5 ‘‘(ii) the member shall pay (in addition to any

6 amount payable under paragraph (6)) the amount, if

7 any, by which the amount of such total cost for the

8 month exceeds the Government’s maximum share

9 under clause (i).

10 ‘‘(B) A member of the uniformed services who incurs

11 expenses under subparagraph (A) for a month for more

12 than one dependent shall not be required to pay for the

13 month under clause (ii) of that subparagraph an amount

14 greater than the amount the member would otherwise be

15 required to pay under that clause for the month if the

16 member were incurring expenses under that subparagraph

17 for only one dependent.

18 ‘‘(8) To qualify for extended benefits under subpara19 graph (C) or (D) of paragraph (2), a dependent of a mem20 ber of the uniformed services shall be required to use pub21 lic facilities to the extent such facilities are available and

22 adequate, as determined under joint regulations of the ad23 ministering Secretaries.
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1 ‘‘(9) The Secretary of Defense, in consultation with

2 the other administering Secretaries, shall prescribe regula3 tions to carry out this subsection.’’.

4 SEC. 705. CONFORMING REPEALS.

5 The following provisions of law are repealed:

6 (1) Section 703 of the National Defense Au7 thorization Act for Fiscal Year 2000 (Public Law

8 106–65; 113 Stat. 682; 10 U.S.C. 1077 note).

9 (2) Section 8118 of the Department of Defense

10 Appropriations Act, 2000 (Public Law 106–79; 113

11 Stat. 1260).

12 (3) Section 8100 of the Department of Defense

13 Appropriations Act, 2001 (Public Law 106–259;

14 114 Stat. 696).

15 SEC. 706. EFFECTIVE DATE.

16 This subtitle and the amendments made by this sub17 title shall take effect on October 1, 2001.

18 Subtitle B—Other Matters

19 SEC. 711. REPEAL OF REQUIREMENT FOR PERIODIC

20 SCREENINGS AND EXAMINATIONS AND RE21 LATED CARE FOR MEMBERS OF ARMY RE22 SERVE UNITS SCHEDULED FOR EARLY DE23 PLOYMENT.

24 Section 1074a of title 10, United States Code, is

25 amended—
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1 (1) by striking subsection (d); and

2 (2) by redesignating subsection (e) as sub3 section (d).

4 SEC. 712. CLARIFICATION OF ELIGIBILITY FOR REIM5 BURSEMENT OF TRAVEL EXPENSES OF

6 ADULT ACCOMPANYING PATIENT IN TRAVEL

7 FOR SPECIALTY CARE.

8 Section 1074i of title 10, United States Code, is

9 amended by inserting before the period at the end the fol10 lowing: ‘‘and, when accompaniment by an adult is nec11 essary, for a parent or guardian of the covered beneficiary

12 or another member of the covered beneficiary’s family who

13 is at least 21 years of age’’.

14 SEC. 713. TRICARE PROGRAM LIMITATIONS ON PAYMENT

15 RATES FOR INSTITUTIONAL HEALTH CARE

16 PROVIDERS AND ON BALANCE BILLING BY

17 INSTITUTIONAL AND NONINSTITUTIONAL

18 HEALTH CARE PROVIDERS.

19 (a) INSTITUTIONAL PROVIDERS.—Section 1079(j) of

20 title 10, United States Code, is amended—

21 (1) in paragraph (2)(A)—

22 (A) by striking ‘‘(A)’’; and

23 (B) by striking ‘‘may be determined under

24 joint regulations’’ and inserting ‘‘shall be deter25 mined under joint regulations’’;
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1 (2) by redesignating subparagraph (B) of para2 graph (2) as paragraph (4), and, in such paragraph,

3 as so redesignated, by striking ‘‘subparagraph (A),’’

4 and inserting ‘‘this subsection,’’; and

5 (3) by inserting before paragraph (4), as redes6 ignated by paragraph (2), the following new para7 graph (3):

8 ‘‘(3) A contract for a plan covered by this section

9 shall include a clause that prohibits each provider of serv10 ices under the plan from billing any person covered by the

11 plan for any balance of charges for services in excess of

12 the amount paid for those services under the joint regula13 tions referred to in paragraph (2), except for any unpaid

14 amounts of deductibles or copayments that are payable di15 rectly to the provider by the person.’’.

16 (b) NONINSTITUTIONAL PROVIDERS.—Section

17 1079(h)(4) of such title is amended—

18 (1) by inserting ‘‘(A)’’ after ‘‘(4)’’; and

19 (B) by adding at the end the following new

20 subparagraph:

21 ‘‘(B) The regulations shall include a restriction that

22 prohibits an individual health care professional (or other

23 noninstitutional health care provider) from billing a bene24 ficiary for services for more than the amount that is equal

25 to—
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1 ‘‘(i) the excess of the limiting charge (as de2 fined in section 1848(g)(2) of the Social Security

3 Act (42 U.S.C. 1395w–4(g)(2))) that would be ap4 plicable if the services had been provided by the pro5 fessional (or other provider) as an individual health

6 care professional (or other noninstitutional health

7 care provider) on a nonassignment-related basis

8 under part B of title XVIII of such Act over the

9 amount that is payable by the United States for

10 those services under this subsection, plus

11 ‘‘(ii) any unpaid amounts of deductibles or co12 payments that are payable directly to the profes13 sional (or other provider) by the beneficiary.’’.

14 (c) EFFECTIVE DATE.—The amendments made by

15 this section shall take effect on October 1, 2001.

16 SEC. 714. TWO-YEAR EXTENSION OF HEALTH CARE MAN17 AGEMENT DEMONSTRATION PROGRAM.

18 (a) EXTENSION.—Subsection (d) of section 733 of

19 the Floyd D. Spence National Defense Authorization Act

20 for Fiscal Year 2001 (as enacted by Public Law 106–398;

21 114 Stat. 1654A–191) is amended by striking ‘‘December

22 31, 2001’’ and inserting ‘‘December 31, 2003’’.

23 (b) REPORT.—Subsection (e) of that section is

24 amended—
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1 (1) by striking ‘‘REPORTS.—’’ and inserting

2 ‘‘REPORT.—’’; and

3 (2) by striking ‘‘March 15, 2002’’ and inserting

4 ‘‘March 15, 2004’’.

5 SEC. 715. STUDY OF HEALTH CARE COVERAGE OF MEM6 BERS OF THE SELECTED RESERVE.

7 (a) REQUIREMENT FOR STUDY.—The Comptroller

8 General shall carry out a study of the needs of members

9 of the Selected Reserve of the Ready Reserve of the Armed

10 Forces and their families for health care benefits.

11 (b) REPORT.—Not later than March 1, 2002, the

12 Comptroller General shall submit to Congress a report on

13 the study under subsection (a). The report shall include

14 the following matters:

15 (1) An analysis of how members of the Selected

16 Reserve currently obtain coverage for health care

17 benefits when not on active duty, together with sta18 tistics on enrollments in health care benefits plans,

19 including—

20 (A) the percentage of members of the Se21 lected Reserve who are not covered by an em22 ployer health benefits plan;

23 (B) the percentage of members of the Se24 lected Reserve who are not covered by an indi25 vidual health benefits plan; and
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1 (C) the percentage of members of the Se2 lected Reserve who are not covered by any

3 health insurance or other health benefits plan.

4 (2) An assessment of the disruptions in health

5 benefits coverage that a mobilization of members of

6 the Selected Reserve has caused for the members

7 and their families.

8 (3) An assessment of the cost and effectiveness

9 of various options for preventing or reducing disrup10 tions described in paragraph (2), including—

11 (A) providing health care benefits to all

12 members of the Selected Reserve and their fam13 ilies through TRICARE, the Federal Employees

14 Health Benefits Program, or otherwise;

15 (B) revising and extending the program of

16 transitional medical and dental care that is pro17 vided under section 1074b of title 10, United

18 States Code, for members of the Armed Forces

19 upon release from active duty served in support

20 of a contingency operation;

21 (C) requiring the health benefits plans of

22 members of the Selected Reserve, including in23 dividual health benefits plans and group health

24 benefits plans, to permit members of the Se25 lected Reserve to elect to resume coverage
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1 under such health benefits plans upon release

2 from active duty in support of a contingency

3 operation;

4 (D) providing financial assistance for pay5 ing premiums or other subscription charges for

6 continuation of coverage by private sector

7 health insurance or other health benefits plans;

8 and

9 (E) any other options that the Comptroller

10 General determines advisable to consider.

11 SEC. 716. STUDY OF ADEQUACY AND QUALITY OF HEALTH

12 CARE PROVIDED TO WOMEN UNDER THE DE13 FENSE HEALTH PROGRAM.

14 (a) REQUIREMENT FOR STUDY.—The Comptroller

15 General shall carry out a study of the adequacy and qual16 ity of the health care provided to women under chapter

17 55 of title 10, United States Code.

18 (b) SPECIFIC CONSIDERATION.—The study shall in19 clude an intensive review of the availability and quality

20 of reproductive health care services.

21 (c) REPORT.—The Comptroller General shall submit

22 a report on the results of the study to Congress not later

23 than April 1, 2002.
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1 SEC. 717. PILOT PROGRAM FOR DEPARTMENT OF VET2 ERANS AFFAIRS SUPPORT FOR DEPARTMENT

3 OF DEFENSE IN THE PERFORMANCE OF SEP4 ARATION PHYSICAL EXAMINATIONS.

5 (a) AUTHORITY.—The Secretary of Defense and the

6 Secretary of Veterans Affairs may jointly carry out a pilot

7 program for the performance of the physical examinations

8 required in connection with the separation of members of

9 the uniformed services. The requirements of this section

10 shall apply to a pilot program, if any, that is carried out

11 under the authority of this subsection.

12 (b) PERFORMANCE OF PHYSICAL EXAMINATIONS BY

13 DEPARTMENT OF VETERANS AFFAIRS.—Under the pilot

14 program, the Secretary of Veterans Affairs shall perform

15 the physical examinations of members of the uniformed

16 services separating from the uniformed services who are

17 in one or more geographic areas designated for the pilot

18 program by the Secretaries.

19 (c) REIMBURSEMENT.—The Secretary of Defense

20 shall provide for reimbursing the Secretary of Veterans

21 Affairs for the cost incurred by the Secretary of Veterans

22 Affairs in performing, under the pilot program, the items

23 of physical examination that are required by the Secretary

24 concerned in connection with the separation of a member

25 of a uniformed service. Reimbursements shall be paid out

26 of funds available for the performance of separation phys-
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1 ical examinations of members of that uniformed service

2 in facilities of the uniformed services.

3 (d) AGREEMENT.—(1) The Secretary of Defense and

4 the Secretary of Veterans Affairs shall enter into an agree5 ment for carrying out a pilot program established under

6 this section. The agreement shall specify the geographic

7 area in which the pilot program is carried out and the

8 means for making reimbursement payments.

9 (2) The other administering Secretaries shall also

10 enter into the agreement to the extent that the Secretary

11 of Defense determines necessary to apply the pilot pro12 gram, including the requirement for reimbursement, to the

13 uniformed services not under the jurisdiction of the Sec14 retary of a military department.

15 (e) CONSULTATION REQUIREMENT.—In developing

16 and carrying out the pilot program, the Secretary of De17 fense shall consult with the other administering Secre18 taries.

19 (f) PERIOD OF PROGRAM.—Any pilot program estab20 lished under this section shall begin not later than July

21 1, 2002, and terminate on December 31, 2005.

22 (g) REPORTS.—(1) Not later than January 31, 2004,

23 the Secretary of Defense and the Secretary of Veterans

24 Affairs shall jointly submit to Congress an interim report

25 on the conduct of the pilot program.
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1 (2) Not later than March 1, 2005, the Secretary of

2 Defense and the Secretary of Veterans Affairs shall jointly

3 submit to Congress a final report on the conduct of the

4 pilot program.

5 (3) Each report under this subsection shall include

6 the Secretaries’ assessment, as of the date of such report,

7 of the efficacy of the performance of separation physical

8 examinations as provided for under the pilot program.

9 (h) DEFINITIONS.—In this section:

10 (1) The term ‘‘administering Secretaries’’ has

11 the meaning given the term in section 1072(3) of

12 title 10, United States Code.

13 (2) The term ‘‘Secretary concerned’’ has the

14 meaning given the term in section 101(5) of title 37,

15 United States Code.

16 TITLE VIII—ACQUISITION POL17 ICY, ACQUISITION MANAGE18 MENT, AND RELATED MAT19 TERS

20 Subtitle A—Procurement

21 Management and Administration

22 SEC. 801. MANAGEMENT OF PROCUREMENTS OF SERVICES.

23 (a) RESPONSIBILITY OF UNDER SECRETARY OF DE24 FENSE FOR ACQUISITION, TECHNOLOGY, AND LOGIS-
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1 TICS.—Section 133(b) of title 10, United States Code, is

2 amended—

3 (1) by striking ‘‘and’’ at the end of paragraph

4 (4);

5 (2) by redesignating paragraph (5) as para6 graph (6); and

7 (3) by inserting after paragraph (4) the fol8 lowing new paragraph (5):

9 ‘‘(5) managing the procurements of services for

10 the Department of Defense; and’’.

11 (b) REQUIREMENT FOR MANAGEMENT STRUC12 TURE.—(1) Chapter 137 of such title is amended by in13 serting after section 2328 the following new section:

14 ‘‘§ 2330. Procurements of services: management struc15 ture

16 ‘‘(a) REQUIREMENT FOR MANAGEMENT STRUC17 TURE.—The Under Secretary of Defense for Acquisition,

18 Technology, and Logistics shall establish a structure for

19 the management of procurements of services for the De20 partment of Defense.

21 ‘‘(b) DELEGATION OF AUTHORITY.—(1) The man22 agement structure shall provide for a designated official

23 in each Defense Agency, military department, and com24 mand to exercise the responsibility for the management
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1 of the procurements of services for the official’s Defense

2 Agency, military department, or command, respectively.

3 ‘‘(2) For the exercise of the responsibility under para4 graph (1), a designated official shall report, and be ac5 countable, to—

6 ‘‘(A) the Under Secretary of Defense for Acqui7 sition, Technology, and Logistics; and

8 ‘‘(B) such other officials as the Under Sec9 retary may prescribe for the management structure.

10 ‘‘(3) Paragraph (2) shall not affect the responsibility

11 of a designated official for a military department who is

12 not the Secretary of that military department to report,

13 and be accountable, to the Secretary of the military de14 partment.

15 ‘‘(c) CONTRACTING RESPONSIBILITIES OF DES16 IGNATED OFFICIALS.—The responsibilities of an official

17 designated under subsection (b) shall include, with respect

18 to the procurements of services for the Defense Agency,

19 military department, or command of that official, the fol20 lowing:

21 ‘‘(1) Ensuring that the services are procured by

22 means of contracts or task orders that are in the

23 best interests of the Department of Defense and are

24 entered into or issued and managed in compliance

25 with the applicable statutes, regulations, directives,
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1 and other requirements, regardless of whether the

2 services are procured through a contract of the De3 partment of Defense or through a contract entered

4 into by an official of the United States outside the

5 Department of Defense.

6 ‘‘(2) Establishing within the Department of De7 fense appropriate contract vehicles for use in the

8 procurement of services so as to ensure that officials

9 of the Department of Defense are accountable for

10 the procurement of the services in accordance with

11 the requirements of paragraph (1).

12 ‘‘(3) Analyzing data collected under section

13 2330a of this title on contracts that are entered into

14 for the procurement of services.

15 ‘‘(4) Approving, in advance, any procurement of

16 services that is to be made through the use of—

17 ‘‘(A) a contract or task order that is not

18 a performance-based contract or task order; or

19 ‘‘(B) a contract entered into, or a task

20 order issued, by an official of the United States

21 outside the Department of Defense.

22 ‘‘(d) DEFINITION.—In this section, the term ‘per23 formance-based’, with respect to a contract or a task order

24 means that the contract or task order, respectively, in25 cludes the use of performance work statements that set
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1 forth contract requirements in clear, specific, and objective

2 terms with measurable outcomes.’’.

3 (2) Not later than 180 days after the date of the en4 actment of this Act, the Under Secretary of Defense for

5 Acquisition, Technology, and Logistics shall issue guid6 ance for officials in the management structure established

7 under section 2330 of title 10, United States Code (as

8 added by paragraph (1)), regarding how to carry out their

9 responsibilities under that section. The guidance shall in10 clude, at a minimum, the following:

11 (A) Specific dollar thresholds, approval levels,

12 and criteria for advance approvals under subsection

13 (c)(4) of such section 2330.

14 (B) A prohibition on the procurement of serv15 ices through the use of a contract entered into, or

16 a task order issued, by an official of the United

17 States outside the Department of Defense that is

18 not a performance-based contract or task order, un19 less an appropriate official in the management struc20 ture established under such section 2330 determines

21 in writing that the use of that means for the pro22 curement is justified on the basis of exceptional cir23 cumstances as being in the best interests of the De24 partment of Defense.
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1 (c) TRACKING OF PROCUREMENTS OF SERVICES.—

2 Chapter 137 of title 10, United States Code, as amended

3 by subsection (b), is further amended by inserting after

4 section 2330 the following new section:

5 ‘‘§ 2330a. Procurements of services: tracking

6 ‘‘(a) DATA COLLECTION REQUIRED.—The Secretary

7 of Defense shall establish a data collection system to pro8 vide management information with regard to each pur9 chase of services by a military department or Defense

10 Agency in excess of the simplified acquisition threshold,

11 regardless of whether such a purchase is made in the form

12 of a contract, task order, delivery order, military inter13 departmental purchase request, or any other form of inter14 agency agreement.

15 ‘‘(b) DATA TO BE COLLECTED.—The data required

16 to be collected under subsection (a) includes the following:

17 ‘‘(1) The services purchased.

18 ‘‘(2) The total dollar amount of the purchase.

19 ‘‘(3) The form of contracting action used to

20 make the purchase.

21 ‘‘(4) Whether the purchase was made

22 through—

23 ‘‘(A) a performance-based contract, per24 formance-based task order, or other perform25 ance-based arrangement that contains firm
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1 fixed prices for the specific tasks to be per2 formed;

3 ‘‘(B) any other performance-based con4 tract, performance-based task order, or per5 formance-based arrangement; or

6 ‘‘(C) any contract, task order, or other ar7 rangement that is not performance based.

8 ‘‘(5) In the case of a purchase made through an

9 agency other than the Department of Defense—

10 ‘‘(A) the agency through which the pur11 chase is made; and

12 ‘‘(B) the reasons for making the purchase

13 through that agency.

14 ‘‘(6) The extent of competition provided in

15 making the purchase (including the number of

16 offerors).

17 ‘‘(7) whether the purchase was made from—

18 ‘‘(A) a small business concern;

19 ‘‘(B) a small business concern owned and

20 controlled by socially and economically dis21 advantaged individuals; or

22 ‘‘(C) a small business concern owned and

23 controlled by women.

24 ‘‘(c) COMPATIBILITY WITH DATA COLLECTION SYS25 TEM FOR INFORMATION TECHNOLOGY PURCHASES.—To
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1 the maximum extent practicable, a single data collection

2 system shall be used to collect data under this section and

3 information under section 2225 of this title.

4 ‘‘(d) DEFINITIONS.—In this section:

5 ‘‘(1) The term ‘performance-based’, with re6 spect to a contract, task order, or arrangement,

7 means that the contract, task order, or arrangement,

8 respectively, includes the use of performance work

9 statements that set forth contract requirements in

10 clear, specific, and objective terms with measurable

11 outcomes.

12 ‘‘(2) The definitions set forth in section 2225(f)

13 of this title for the terms ‘simplified acquisition

14 threshold’, ‘small business concern’, ‘small business

15 concern owned and controlled by socially and eco16 nomically disadvantaged individuals’, and ‘small

17 business concern owned and controlled by women’

18 shall apply.’’.

19 (d) REQUIREMENT FOR PROGRAM REVIEW STRUC20 TURE.—(1) Not later than 180 days after the date of the

21 enactment of this Act, the Secretary of Defense shall issue

22 and implement a policy that applies to the procurement

23 of services by the Department of Defense a program re24 view structure that is similar to the one developed for and
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1 applied to the procurement of systems by the Department

2 of Defense.

3 (2) The program review structure for the procure4 ment of services shall, at a minimum, include the fol5 lowing:

6 (A) Standards for determining which procure7 ments should be subject to review by either the sen8 ior procurement executive of a military department

9 or the senior procurement executive of the Depart10 ment of Defense under such section, including cri11 teria based on dollar thresholds, program criticality,

12 or other appropriate measures.

13 (B) Appropriate milestones at which those re14 views should take place.

15 (C) A description of the specific matters that

16 should be reviewed.

17 (e) COMPTROLLER GENERAL REVIEW.—Not later

18 than 90 days after the date on which the Secretary issues

19 the policy required by subsection (d) and the Under Sec20 retary of Defense for Acquisition, Technology, and Logis21 tics issues the guidance required by subsection (b)(2), the

22 Comptroller General shall submit to the Committees on

23 Armed Services of the Senate and the House of Represent24 atives an assessment of the compliance with the require-
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1 ments of this section and the amendments made by this

2 section.

3 (f) DEFINITIONS.—In this section:

4 (1) The term ‘‘senior procurement executive’’

5 means the official designated as the senior procure6 ment executive under section 16(3) of the Office of

7 Federal Procurement Policy Act (41 U.S.C. 414(3)).

8 (2) The term ‘‘performance-based’’, with re9 spect to a contract or a task order means that the

10 contract or task order, respectively, includes the use

11 of performance work statements that set forth con12 tract requirements in clear, specific, and objective

13 terms with measurable outcomes.

14 (g) CLERICAL AMENDMENTS.—(1) The heading for

15 section 2331 of title 10, United States Code, is amended

16 to read as follows:

17 ‘‘§ 2331. Procurements of services: contracts for pro18 fessional and technical services’’.

19 (2) The table of sections at the beginning of chapter

20 137 of such title is amended by striking the item relating

21 to section 2331 and inserting the following new items:

‘‘2330. Procurements of services: management structure.

‘‘2330a. Procurements of services: tracking.

‘‘2331. Procurements of services: contracts for professional and technical services.’’.
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1 SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERV2 ICES.

3 (a) GOALS.—(1) It shall be an objective of the De4 partment of Defense to achieve savings in expenditures for

5 procurements of services through the use of—

6 (A) performance-based services contracting;

7 (B) competition for task orders under services

8 contracts; and

9 (C) program review, spending analyses, and im10 proved management of services contracts.

11 (2) In furtherance of that objective, the Department

12 of Defense shall have goals to use improved management

13 practices to achieve, over 10 fiscal years, reductions in the

14 total amount that would otherwise be expended by the De15 partment for the procurement of services (other than mili16 tary construction) in a fiscal year by the amount equal

17 to 10 percent of the total amount of the expenditures of

18 the Department for fiscal year 2000 for procurement of

19 services (other than military construction), as follows:

20 (A) By fiscal year 2002, a three percent reduc21 tion.

22 (B) By fiscal year 2003, a four percent reduc23 tion.

24 (C) By fiscal year 2004, a five percent reduc25 tion.
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1 (D) By fiscal year 2011, a ten percent reduc2 tion.

3 (b) ANNUAL REPORT.—Not later than March 1,

4 2002, and annually thereafter through March 1, 2006, the

5 Secretary of Defense shall submit to the congressional de6 fense committees a report on the progress made toward

7 meeting the objective and goals established in subsection

8 (a). Each report shall include, at a minimum, the following

9 information:

10 (1) A summary of the steps taken or planned

11 to be taken in the fiscal year of the report to im12 prove the management of procurements of services.

13 (2) A summary of the steps planned to be taken

14 in the following fiscal year to improve the manage15 ment of procurements of services.

16 (3) An estimate of the amount that will be ex17 pended by the Department of Defense for procure18 ments of services in the fiscal year of the report.

19 (4) An estimate of the amount that will be ex20 pended by the Department of Defense for procure21 ments of services in the following fiscal year.

22 (5) An estimate of the amount of savings that,

23 as a result of improvement of the management prac24 tices used by the Department of Defense, will be

25 achieved for the procurement of services by the De-
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1 partment in the fiscal year of the report and in the

2 following fiscal year.

3 (c) REVIEW AND REPORT BY COMPTROLLER GEN4 ERAL.—The Comptroller General shall review each report

5 submitted by the Secretary pursuant to subsection (b),

6 and within 90 days after the date of the report, submit

7 to Congress a report containing the Comptroller General’s

8 assessment of the extent to which the Department of De9 fense has taken steps necessary to achieve the objective

10 and goals established by subsection (a). In each report the

11 Comptroller General shall, at a minimum, address—

12 (1) the accuracy and reliability of the estimates

13 included in the Secretary’s report; and

14 (2) the effectiveness of the improvements in

15 management practices that have been taken, and

16 those that are planned to be taken, in the Depart17 ment of Defense to achieve savings in procurements

18 of services by the Department.

19 SEC. 803. COMPETITION REQUIREMENT FOR PURCHASES

20 PURSUANT TO MULTIPLE AWARD CON21 TRACTS.

22 (a) REGULATIONS REQUIRED.—Not later than 180

23 days after the date of the enactment of this Act, the Sec24 retary of Defense shall promulgate in the Department of

25 Defense Supplement to the Federal Acquisition Regula-
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1 tion regulations requiring competition in the purchase of

2 products and services by the Department of Defense pur3 suant to multiple award contracts.

4 (b) CONTENT OF REGULATIONS.—The regulations

5 required by subsection (a) shall provide, at a minimum,

6 that each individual procurement of products and services

7 in excess of $50,000 that is made under a multiple award

8 contract shall be made on a competitive basis unless a con9 tracting officer of the Department of Defense—

10 (1) waives the requirement on the basis of a de11 termination that one of the circumstances described

12 in paragraphs (1) through (4) of section 2304(c) of

13 title 10, United States Code, applies to such indi14 vidual procurement; and

15 (2) justifies the determination in writing.

16 (c) REPORTING REQUIREMENT.—The Secretary shall

17 submit to the congressional defense committees each year

18 a report on the use of the waiver authority provided in

19 the regulations prescribed under subsection (b). The re20 port for a year shall include, at a minimum, for each mili21 tary department and each Defense Agency, the following:

22 (1) The number of the waivers granted.

23 (2) The dollar value of the procurements for

24 which the waivers were granted.
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1 (3) The bases on which the waivers were grant2 ed.

3 (d) DEFINITIONS.—In this section:

4 (1) The term ‘‘individual procurement’’ means

5 a task order, delivery order, or other purchase.

6 (2) The term ‘‘multiple award contract’’

7 means—

8 (A) a contract that is entered into by the

9 Administrator of General Services under the

10 multiple award schedule program referred to in

11 section 2302(2)(C) of title 10, United States

12 Code;

13 (B) a multiple award task order contract

14 or delivery order contract that is entered into

15 under the authority of sections 2304a through

16 2304d of title 10, United States Code, or sec17 tions 303H through 303K of the Federal Prop18 erty and Administrative Services Act of 1949

19 (41 U.S.C. 253h through 253k); and

20 (C) any other indeterminate delivery, inde21 terminate quantity contract that is entered into

22 by the head of a Federal agency with two or

23 more sources pursuant to the same solicitation.

24 (3) The term ‘‘competitive basis’’, with respect

25 to an individual procurement of products or services
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1 under a multiple award contract, means procedures

2 that—

3 (A) require fair notice to be provided to all

4 contractors offering such products or services

5 under the multiple award contract of the intent

6 to make that procurement; and

7 (B) afford all such contractors a fair op8 portunity to make an offer and have that offer

9 fully and fairly considered by the official mak10 ing the procurement.

11 (4) The term ‘‘Defense Agency’’ has the mean12 ing given that term in section 101(a)(11) of title 10,

13 United States Code.

14 (e) APPLICABILITY.—The regulations promulgated

15 by the Secretary pursuant to subsection (a) shall take ef16 fect not later than 180 days after the date of the enact17 ment of this Act and shall apply to all individual procure18 ments that are made under multiple award contracts on

19 or after the effective date, without regard to whether the

20 multiple award contracts were entered into before, on, or

21 after such effective date.

22 SEC. 804. RISK REDUCTION AT INITIATION OF MAJOR DE23 FENSE ACQUISITION PROGRAM.

24 (a) STANDARD FOR TECHNOLOGICAL MATURITY.—

25 (1) Chapter 144 of title 10, United States Code, is amend-
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1 ed by inserting after section 2431 the following new sec2 tion:

3 ‘‘§ 2431a. Risk reduction at program initiation

4 ‘‘(a) REQUIREMENT FOR DEMONSTRATION OF CRIT5 ICAL TECHNOLOGIES.—Each critical technology that is to

6 be used in production under a major defense acquisition

7 program shall be successfully demonstrated in a relevant

8 environment, as determined in writing by the Under Sec9 retary of Defense for Acquisition, Technology, and Logis10 tics.

11 ‘‘(b) PROHIBITION.—Neither of the following actions

12 may be taken in a major defense acquisition program be13 fore the requirement of subsection (a) has been satisfied

14 for the program:

15 ‘‘(1) Milestone B approval.

16 ‘‘(2) Initiation of the program without a Mile17 stone B approval.

18 ‘‘(c) WAIVER.—The Under Secretary of Defense for

19 Acquisition, Technology, and Logistics may waive the pro20 hibition in subsection (b) with respect to a major defense

21 acquisition program if the Milestone Decision Authority

22 for the program certifies to the Under Secretary that ex23 ceptional circumstances justify proceeding with an action

24 described in that subsection for the program before com25 pliance with subsection (a).
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1 ‘‘(d) ANNUAL REPORT ON WAIVERS.—(1) The Sec2 retary of Defense shall submit to the Committees on

3 Armed Services and on Appropriations of the Senate and

4 the House of Representatives each year the justification

5 for any waiver granted with respect to a major defense

6 acquisition program under subsection (c) during the fiscal

7 year covered by the report.

8 ‘‘(2) The report for a fiscal year shall be submitted

9 with the submission of the weapons development and pro10 curement schedules under section 2431 of this title and

11 shall cover the fiscal year preceding the fiscal year in

12 which submitted.

13 ‘‘(e) DEFINITIONS.—In this section:

14 ‘‘(1) The term ‘Milestone B approval’ means

15 approval to begin integrated system development

16 and demonstration.

17 ‘‘(2) The term ‘Milestone Decision Authority’

18 means the official of the Department of Defense who

19 is designated in accordance with criteria prescribed

20 by the Secretary of Defense to approve entry of a

21 major defense acquisition program into the next

22 phase of the acquisition process.’’.

23 (2) The table of sections at the beginning of such

24 chapter is amended by inserting after the item relating

25 to section 2431 the following:

‘‘2431a. Risk reduction at program initiation.’’.
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1 (b) EFFECTIVE DATE AND APPLICABILITY.—(1) Sec2 tion 2431a of title 10, United States Code (as added by

3 subsection (a)), shall take effect on the date of the enact4 ment of this Act and shall apply to—

5 (A) any major defense acquisition program that

6 is initiated on or after that date without a Milestone

7 B approval having been issued for the program; and

8 (B) any major defense acquisition program that

9 is initiated more than 6 months after that date with

10 a Milestone B approval having been issued for the

11 program before the initiation of the program.

12 (2) In paragraph (1):

13 (A) The term ‘‘major defense acquisition pro14 gram’’ has the meaning given the term in section

15 2430 of title 10, United States Code.

16 (B) The term ‘‘Milestone B approval’’ has the

17 meaning given the term under section 2431a(d) of

18 title 10, United States Code (as added by subsection

19 (a)).

20 SEC. 805. FOLLOW-ON PRODUCTION CONTRACTS FOR

21 PRODUCTS DEVELOPED PURSUANT TO PRO22 TOTYPE PROJECTS.

23 Section 845 of the National Defense Authorization

24 Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is

25 amended—
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1 (1) by redesignating subsection (f) as sub2 section (g); and

3 (2) by inserting after subsection (e) the fol4 lowing new subsection (f):

5 ‘‘(f) FOLLOW-ON PRODUCTION CONTRACTS.—(1) A

6 transaction entered into under this section for a prototype

7 project that satisfies the conditions set forth in subsection

8 (d)(1)(B)(i) may provide for the award of a follow-on pro9 duction contract to the participants in the transaction for

10 a specific number of units at specific target prices. The

11 number of units specified in the transaction shall be deter12 mined on the basis of a balancing of the level of the invest13 ment made in the project by the participants other than

14 the Federal Government with the interest of the Federal

15 Government in having competition among sources in the

16 acquisition of the product or products prototyped under

17 the project.

18 ‘‘(2) A follow-on production contract provided for in

19 a transaction under paragraph (1) may be awarded to the

20 participants in the transaction without the use of competi21 tive procedures, notwithstanding the requirements of sec22 tion 2304 of title 10, United States Code, if—

23 ‘‘(A) competitive procedures were used for the

24 selection of parties for participation in the trans25 action;
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1 ‘‘(B) the participants in the transaction suc2 cessfully completed the prototype project provided

3 for in the transaction;

4 ‘‘(C) the number of units provided for in the

5 follow-on production contract does not exceed the

6 number of units specified in the transaction for such

7 a follow-on production contract; and

8 ‘‘(D) the prices established in the follow-on pro9 duction contract do not exceed the target prices

10 specified in the transaction for such a follow-on pro11 duction contract.’’.

12 Subtitle B—Defense Acquisition

13 and Support Workforce

14 SEC. 811. REPORT ON IMPLEMENTATION OF RECOMMENDA15 TIONS OF THE ACQUISITION 2005 TASK

16 FORCE.

17 (a) REQUIREMENT FOR REPORT.—Not later than

18 March 1, 2002, the Secretary of Defense shall submit to

19 the Committees on Armed Services of the Senate and the

20 House of Representatives a report on the extent of the

21 implementation of the recommendations set forth in the

22 final report of the Department of Defense Acquisition

23 2005 Task Force, entitled ‘‘Shaping the Civilian Acquisi24 tion Workforce of the Future’’.
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1 (b) CONTENT OF REPORT.—The report shall include

2 the following:

3 (1) For each recommendation in the final re4 port that is being implemented or that the Secretary

5 plans to implement—

6 (A) a summary of all actions that have

7 been taken to implement the recommendation;

8 and

9 (B) a schedule, with specific milestones,

10 for completing the implementation of the rec11 ommendation.

12 (2) For each recommendation in the final re13 port that the Secretary does not plan to

14 implement—

15 (A) the reasons for the decision not to im16 plement the recommendation; and

17 (B) a summary of any alternative actions

18 the Secretary plans to take to address the pur19 poses underlying the recommendation.

20 (3) A summary of any additional actions the

21 Secretary plans to take to address concerns raised in

22 the final report about the size and structure of the

23 acquisition workforce of the Department of Defense.

24 (c) COMPTROLLER GENERAL REVIEW.—Not later

25 than 60 days after the date on which the Secretary sub-
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1 mits the report required by subsection (a), the Comptroller

2 General shall—

3 (1) review the report; and

4 (2) submit to the committees referred to in sub5 section (a) the Comptroller General’s assessment of

6 the extent to which the report—

7 (A) complies with the requirements of this

8 section; and

9 (B) addresses the concerns raised in the

10 final report about the size and structure of the

11 acquisition workforce of the Department of De12 fense.

13 SEC. 812. MORATORIUM ON REDUCTION OF THE DEFENSE

14 ACQUISITION AND SUPPORT WORKFORCE.

15 (a) PROHIBITION.—Notwithstanding any other provi16 sion of law, the defense acquisition and support workforce

17 may not be reduced, during fiscal years 2002, 2003, and

18 2004, below the level of that workforce as of September

19 30, 2001, determined on the basis of full-time equivalent

20 positions.

21 (b) WAIVER AUTHORITY.—The Secretary of Defense

22 may waive the prohibition in subsection (a) and reduce

23 the level of the defense acquisition and support workforce

24 upon submitting to Congress the Secretary’s certification

25 that the defense acquisition and support workforce, at the
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1 level to which reduced, will be able efficiently and effec2 tively to perform the workloads that are required of that

3 workforce consistent with the cost-effective management

4 of the defense acquisition system to obtain best value

5 equipment and with ensuring military readiness.

6 (c) DEFENSE ACQUISITION AND SUPPORT WORK7 FORCE DEFINED.—In this section, the term ‘‘defense ac8 quisition and support workforce’’ means Armed Forces

9 and civilian personnel who are assigned to, or are em10 ployed in, an organization of the Department of Defense

11 that is—

12 (1) an acquisition organization specified in De13 partment of Defense Instruction 5000.58, dated

14 January 14, 1992; or

15 (2) an organization not so specified that has ac16 quisition as its predominant mission, as determined

17 by the Secretary of Defense.

18 SEC. 813. REVISION OF ACQUISITION WORKFORCE QUALI19 FICATION REQUIREMENTS.

20 (a) SPECIAL REQUIREMENTS FOR MEMBERS OF A

21 CONTINGENCY CONTRACTING FORCE.—(1) Subchapter II

22 of chapter 87 of title 10, United States Code, is amended

23 by inserting after section 1724 the following new section:
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1 ‘‘§ 1724a. Contingency contracting force: qualification

2 requirements

3 ‘‘(a) CONTINGENCY CONTRACTING FORCE.—The

4 Secretary of Defense may identify as a contingency con5 tracting force the acquisition positions described in sub6 sections (a) and (b) of section 1724 of this title that in7 volve duties requiring the personnel in those positions to

8 deploy to perform contracting functions in support of a

9 contingency operation or other Department of Defense op10 eration.

11 ‘‘(b) QUALIFICATION REQUIREMENTS.—The Sec12 retary of Defense shall prescribe the qualification require13 ments for a person appointed to a position in any contin14 gency contracting force identified under subsection (a).

15 The requirements shall include requirements that the

16 person—

17 ‘‘(1) either—

18 ‘‘(A) have completed the credits of study

19 as described in section 1724(a)(3)(B) of this

20 title;

21 ‘‘(B) have passed an examination consid22 ered by the Secretary of Defense to dem23 onstrate that the person has skills, knowledge,

24 or abilities comparable to that of a person who

25 has completed the credits of study described in

26 such section; or
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1 ‘‘(C) through a combination of having com2 pleted some of the credits of study described in

3 such section and having passed an examination,

4 have demonstrated that the person has skills,

5 knowledge, or abilities comparable to that of a

6 person who has completed all of the credits of

7 study described in such section; and

8 ‘‘(2) have satisfied such additional requirements

9 for education and experience as the Secretary may

10 prescribe.’’.

11 (2) The table of sections at the beginning of such sub12 chapter is amended by inserting after the item relating

13 to section 1724 the following new item:

‘‘1724a. Contingency contracting force: qualification requirements.’’.

14 (b) EXCEPTIONS TO GENERALLY APPLICABLE QUAL15 IFICATION REQUIREMENTS.—Subsection (c) of such sec16 tion is amended to read as follows:

17 ‘‘(c) EXCEPTIONS.—(1) The requirements imposed

18 under subsection (a) or (b) of this section shall not apply

19 to a person for either of the following purposes:

20 ‘‘(A) In the case of an employee, to qualify to

21 serve in the position in which the employee was serv22 ing on October 1, 1993, or in any other position in

23 the same or lower grade and involving the same or

24 lower level of responsibilities as the position in which

25 the employee was serving on such date.
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1 ‘‘(B) To qualify to serve in an acquisition posi2 tion in any contingency contracting force identified

3 under section 1724a of this title.

4 ‘‘(2) Subject to paragraph (3), the requirements im5 posed under subsection (a) or (b) shall not apply to a per6 son who, before October 1, 2000, served—

7 ‘‘(A) as a contracting officer in an executive

8 agency with authority to award or administer con9 tracts in excess of the simplified acquisition thresh10 old (referred to in section 2304(g) of this title); or

11 ‘‘(B) in a position in an executive agency either

12 as an employee in the GS–1102 occupational series

13 or as a member of the armed forces in a similar oc14 cupational specialty.

15 ‘‘(3) For the exception in subparagraph (A) or (B)

16 of paragraph (2) to apply to an employee with respect to

17 the requirements imposed under subsection (a) or (b), the

18 employee must—

19 ‘‘(A) before October 1, 2000—

20 ‘‘(i) have received a baccalaureate degree

21 as described in subparagraph (A) of subsection

22 (a)(3);

23 ‘‘(ii) have completed credits of study as de24 scribed in subparagraph (B) of subsection

25 (a)(3);
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1 ‘‘(iii) have passed an examination consid2 ered by the Secretary of Defense to dem3 onstrate skills, knowledge, or abilities com4 parable to that of a person who has completed

5 credits of study as described in subparagraph

6 (B) of subsection (a)(3); or

7 ‘‘(iv) have been granted a waiver of the ap8 plicability of the requirements imposed under

9 subsection (a) or (b), as the case may be; or

10 ‘‘(B) on October 1, 1991, had at least 10 years

11 of experience in one or more acquisition positions in

12 the Department of Defense, comparable positions in

13 other government agencies or the private sector, or

14 similar positions in which an individual obtains expe15 rience directly relevant to the field of contracting.’’.

16 (c) CLARIFICATION OF APPLICABILITY OF WAIVER

17 AUTHORITY TO MEMBERS OF THE ARMED FORCES.—

18 Subsection (d) of such section is amended by striking ‘‘em19 ployee or member of’’ in the first sentence and inserting

20 ‘‘employee of, or a member of an armed force in,’’.

21 (d) OFFICE OF PERSONNEL MANAGEMENT AP22 PROVAL OF GENERALLY APPLICABLE DISCRETIONARY

23 REQUIREMENTS.—Section 1725 of title 10, United States

24 Code, is amended—
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1 (1) in subsection (a), by striking ‘‘section 1723

2 or under section 1724(a)(4) of this title’’ in the first

3 sentence and inserting ‘‘section 1723, 1724(a)(4), or

4 1724a(b)(2)’’; and

5 (2) in subsection (b), by striking ‘‘subsection

6 (a)(3) or (b) of section 1724 of this title’’ in the

7 first sentence and inserting ‘‘subsection (a)(3), (b),

8 or (c)(3)(A)(iii) of section 1724 of this title or under

9 subparagraph (B) or (C) of section 1724a(b)(1) of

10 this title’’.

11 (e) TECHNICAL CORRECTIONS.—Sections

12 1724(a)(3)(B) and 1732(c)(2) of such title are amended

13 by striking ‘‘business finance’’ and inserting ‘‘business, fi14 nance’’.

15 Subtitle C—Use of Preferred

16 Sources

17 SEC. 821. APPLICABILITY OF COMPETITION REQUIRE18 MENTS TO PURCHASES FROM A REQUIRED

19 SOURCE.

20 (a) CONDITIONS FOR COMPETITION.—(1) Chapter

21 141 of title 10, United States Code, is amended by adding

22 at the end the following:
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1 ‘‘§ 2410n. Products of Federal Prison Industries: pro2 cedural requirements

3 ‘‘(a) MARKET RESEARCH BEFORE PURCHASE.—Be4 fore purchasing a product listed in the latest edition of

5 the Federal Prison Industries catalog under section

6 4124(d) of title 18, the Secretary of Defense shall conduct

7 market research to determine whether the Federal Prison

8 Industries product is comparable in price, quality, and

9 time of delivery to products available from the private sec10 tor.

11 ‘‘(b) LIMITED COMPETITION REQUIREMENT.—If the

12 Secretary determines that a Federal Prison Industries

13 product is not comparable in price, quality, and time of

14 delivery to products available from the private sector, the

15 Secretary shall use competitive procedures for the procure16 ment of the product. In conducting such a competition,

17 the Secretary shall consider a timely offer from Federal

18 Prison Industries for award in accordance with the speci19 fications and evaluation factors specified in the solicita20 tion.

21 ‘‘(c) EXEMPTIONS.—Notwithstanding any other pro22 vision of law, the Secretary shall not be required—

23 (1) to purchase from Federal Prison Industries

24 any product that is—
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1 (A) integral to, or embedded in, a product

2 that is not available from Federal Prison Indus3 tries; or

4 (B) a national security system; or

5 (2) to make a purchase from Federal Prison In6 dustries in a total amount that is less than the

7 micropurchase threshold, as defined in section 32(f)

8 of the Office of Federal Procurement Policy Act (41

9 U.S.C. 428(f)).

10 ‘‘(d) DEFINITIONS.—In this section:

11 ‘‘(1) The term ‘competitive procedures’ has the

12 meaning given that term in section 2302(2) of this

13 title.

14 ‘‘(2) The term ‘national security system’ means

15 any telecommunications or information system oper16 ated by the United States Government, the function,

17 operation, or use of which—

18 ‘‘(A) involves intelligence activities;

19 ‘‘(B) involves cryptologic activities related

20 to national security;

21 ‘‘(C) involves command and control of mili22 tary forces;

23 ‘‘(D) involves equipment that is an integral

24 part of a weapon or a weapon system; or
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1 ‘‘(E) is critical to the direct fulfillment of

2 military or intelligence missions, except for a

3 system that is to be used for routine adminis4 trative and business applications (including pay5 roll, finance, logistics, and personnel manage6 ment applications).’’.

7 (2) The table of sections at the beginning of such

8 chapter is amended by adding at the end the following:

‘‘2410n. Products of Federal Prison Industries: procedural requirements.’’.

9 (b) APPLICABILITY.—Section 2410n of title 10,

10 United States Code (as added by subsection (a)), shall

11 apply to purchases initiated on or after October 1, 2001.

12 SEC. 822. CONSOLIDATION OF CONTRACT REQUIREMENTS.

13 (a) AMENDMENT TO TITLE 10.—(1) Chapter 141 of

14 title 10, United States Code, is amended by inserting after

15 section 2381 the following new section:

16 ‘‘§ 2382. Consolidation of contract requirements: pol17 icy and restrictions

18 ‘‘(a) POLICY.—The Secretary of Defense shall re19 quire the Secretary of each military department, the head

20 of each Defense Agency, and the head of each Department

21 of Defense Field Activity to ensure that the decisions

22 made by that official regarding consolidation of contract

23 requirements of the department, agency, or activity as the

24 case may be, are made with a view to providing small busi25 ness concerns with appropriate opportunities to partici-
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1 pate in Department of Defense procurements as prime

2 contractors and appropriate opportunities to participate in

3 such procurements as subcontractors.

4 ‘‘(b) LIMITATION ON USE OF ACQUISITION STRATE5 GIES INVOLVING CONSOLIDATION.—(1) An official of a

6 military department, Defense Agency, or Department of

7 Defense Field Activity may not execute an acquisition

8 strategy that includes a consolidation of contract require9 ments of the military department, agency, or activity with

10 a total value in excess of $5,000,000, unless the senior

11 procurement executive concerned first—

12 ‘‘(A) conducts market research;

13 ‘‘(B) identifies any alternative contracting ap14 proaches that would involve a lesser degree of con15 solidation of contract requirements; and

16 ‘‘(C) determines that the consolidation is nec17 essary and justified.

18 ‘‘(2) A senior procurement executive may determine

19 that an acquisition strategy involving a consolidation of

20 contract requirements is necessary and justified for the

21 purposes of paragraph (1) if the benefits of the acquisition

22 strategy substantially exceed the benefits of each of the

23 possible alternative contracting approaches identified

24 under subparagraph (B) of that paragraph. However, sav25 ings in administrative or personnel costs alone do not con-
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1 stitute, for such purposes, a sufficient justification for a

2 consolidation of contract requirements in a procurement

3 unless the total amount of the cost savings is expected

4 to be substantial in relation to the total cost of the pro5 curement.

6 ‘‘(3) Benefits considered for the purposes of para7 graphs (1) and (2) may include cost and, regardless of

8 whether quantifiable in dollar amounts—

9 ‘‘(A) quality;

10 ‘‘(B) acquisition cycle;

11 ‘‘(C) terms and conditions; and

12 ‘‘(D) any other benefit.

13 ‘‘(c) DEFINITIONS.—In this section:

14 ‘‘(1) The terms ‘consolidation of contract re15 quirements’ and ‘consolidation’, with respect to con16 tract requirements of a military department, De17 fense Agency, or Department of Defense Field Activ18 ity, mean a use of a solicitation to obtain offers for

19 a single contract or a multiple award contract to sat20 isfy two or more requirements of that department,

21 agency, or activity for goods or services that have

22 previously been provided to, or performed for, that

23 department, agency, or activity under two or more

24 separate contracts smaller in cost than the total cost

25 of the contract for which the offers are solicited.
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1 ‘‘(2) The term ‘‘multiple award contract’’

2 means—

3 ‘‘(A) a contract that is entered into by the

4 Administrator of General Services under the

5 multiple award schedule program referred to in

6 section 2302(2)(C) of this title;

7 ‘‘(B) a multiple award task order contract

8 or delivery order contract that is entered into

9 under the authority of sections 2304a through

10 2304d of this title or sections 303H through

11 303K of the Federal Property and Administra12 tive Services Act of 1949 (41 U.S.C. 253h

13 through 253k); and

14 ‘‘(C) any other indeterminate delivery, in15 determinate quantity contract that is entered

16 into by the head of a Federal agency with two

17 or more sources pursuant to the same solicita18 tion.

19 ‘‘(3) The term ‘senior procurement executive

20 concerned’ means—

21 ‘‘(A) with respect to a military department,

22 the official designated under section 16(3) of

23 the Office of Federal Procurement Policy Act

24 (41 U.S.C. 414(3)) as the senior procurement

25 executive for the military department; or
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1 ‘‘(B) with respect to a Defense Agency or

2 a Department of Defense Field Activity, the of3 ficial so designated for the Department of De4 fense.

5 ‘‘(4) The term ‘small business concern’ means

6 a business concern that is determined by the Admin7 istrator of the Small Business Administration to be

8 a small-business concern by application of the stand9 ards prescribed under section 3(a) of the Small

10 Business Act (15 U.S.C. 632(a)).’’.

11 (2) The table of sections at the beginning of such

12 chapter is amended by inserting after the item relating

13 to section 2381 the following new item:

‘‘2382. Consolidation of contract requirements: policy and restrictions.’’.

14 (b) DATA REVIEW.—(1) The Secretary of Defense

15 shall revise the data collection systems of the Department

16 of Defense to ensure that such systems are capable of

17 identifying each procurement that involves a consolidation

18 of contract requirements within the department with a

19 total value in excess of $5,000,000.

20 (2) The Secretary shall ensure that appropriate offi21 cials of the Department of Defense periodically review the

22 information collected pursuant to paragraph (1) in co23 operation with the Small Business Administration—
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1 (A) to determine the extent of the consolidation

2 of contract requirements in the Department of De3 fense; and

4 (B) to assess the impact of the consolidation of

5 contract requirements on the availability of opportu6 nities for small business concerns to participate in

7 Department of Defense procurements, both as prime

8 contractors and as subcontractors.

9 (3)(A) No official of the Department of Defense may

10 modify any existing agency data collection system, create

11 a new agency data collection system, or collect data not

12 available in existing agency data collection systems for the

13 purpose of complying with any requirement of law or regu14 lation to collect data on the consolidation or bundling of

15 contract requirements except to the extent necessary to

16 comply with paragraph (1).

17 (B) The prohibition relating to the collection of data

18 under subparagraph (A) does not apply to any sampling

19 or study of Department of Defense contracts that—

20 (i) is carried out for the purposes of reviewing

21 and assessing such contracts; and

22 (ii) does not require a modification of data col23 lection systems, or the creation of new data collec24 tion systems, in the Department of Defense.

25 (4) In this subsection:
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1 (A) The term ‘‘bundling of contract require2 ments’’ has the meaning given that term in section

3 3(o)(2) of the Small Business Act (15 U.S.C.

4 632(o)(2)).

5 (B) The term ‘‘consolidation of contract re6 quirements’’ has the meaning given that term in sec7 tion 2382(c)(1) of title 10, United States Code, as

8 added by subsection (a).

9 SEC. 823. CODIFICATION AND CONTINUATION OF MENTOR10 PROTEGE PROGRAM AS PERMANENT PRO11 GRAM.

12 (a) IN GENERAL.—(1) Chapter 141 of title 10,

13 United States Code, is amended by inserting after section

14 2402 the following new section:

15 ‘‘§ 2403. Mentor-Protege Program

16 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary

17 of Defense shall carry out a program known as the ‘Men18 tor-Protege Program’.

19 ‘‘(b) PURPOSE.—The purpose of the program is to

20 provide incentives for major Department of Defense con21 tractors to furnish eligible small business concerns (as de22 fined in subsection (l)(2)) with assistance designed to en23 hance the capabilities of eligible small business concerns

24 to perform as subcontractors and suppliers under Depart25 ment of Defense contracts and other contracts and sub-
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1 contracts in order to increase the participation of such

2 business concerns as subcontractors and suppliers under

3 Department of Defense contracts, other Federal Govern4 ment contracts, and commercial contracts.

5 ‘‘(c) PROGRAM PARTICIPANTS.—(1) A business con6 cern meeting the eligibility requirements set out in sub7 section (d) may enter into agreements under subsection

8 (e) and furnish assistance to eligible small business con9 cerns upon making application to the Secretary of Defense

10 and being approved for participation in the program by

11 the Secretary. A business concern participating in the pro12 gram pursuant to such an approval shall be known, for

13 the purposes of the program, as a ‘mentor firm’.

14 ‘‘(2) An eligible small business concern may obtain

15 assistance from a mentor firm upon entering into an

16 agreement with the mentor firm as provided in subsection

17 (e). An eligible small business concern may not be a party

18 to more than one agreement to receive such assistance at

19 any time. An eligible small business concern receiving such

20 assistance shall be known, for the purposes of the pro21 gram, as a ‘protege firm’.

22 ‘‘(3) In entering into an agreement pursuant to sub23 section (e), a mentor firm may rely in good faith on a

24 written representation of a business concern that such

25 business concern is a small business concern described in
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1 subsection (l)(2)(A). The Administrator of the Small Busi2 ness Administration shall determine the status of such

3 business concern as such a small business concern in the

4 event of a protest regarding the status of the business con5 cern. If at any time the business concern is determined

6 by the Administrator not to be such a small business con7 cern, assistance furnished to the business concern by the

8 mentor firm after the date of the determination may not

9 be considered assistance furnished under the program.

10 ‘‘(d) MENTOR FIRM ELIGIBILITY.—Subject to sub11 section (c)(1), a mentor firm eligible for award of Federal

12 contracts may enter into an agreement with one or more

13 protege firms under subsection (e) and provide assistance

14 under the program pursuant to that agreement if—

15 ‘‘(1) during the fiscal year preceding the fiscal

16 year in which the mentor firm enters into the agree17 ment, the total amount of the Department of De18 fense contracts awarded such mentor firm and the

19 subcontracts awarded such mentor firm under De20 partment of Defense contracts was equal to or great21 er than $100,000,000; or

22 ‘‘(2) the mentor firm demonstrates the capa23 bility to assist in the development of protege firms,

24 and is approved by the Secretary of Defense pursu-
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1 ant to criteria specified in the regulations prescribed

2 pursuant to subsection (k).

3 ‘‘(e) MENTOR-PROTEGE AGREEMENT.—Before pro4 viding assistance to a protege firm under the program, a

5 mentor firm shall enter into a mentor-protege agreement

6 with the protege firm regarding the assistance to be pro7 vided by the mentor firm. The agreement shall include the

8 following:

9 ‘‘(1) A developmental program for the protege

10 firm, in such detail as may be reasonable,

11 including—

12 ‘‘(A) factors to assess the protege firm’s

13 developmental progress under the program; and

14 ‘‘(B) the anticipated number and type of

15 subcontracts to be awarded the protege firm.

16 ‘‘(2) A program participation term for any pe17 riod of not more than three years, except that the

18 term may be a period of up to five years if the Sec19 retary of Defense determines in writing that unusual

20 circumstances justify a program participation term

21 in excess of three years.

22 ‘‘(3) Procedures for the protege firm to termi23 nate the agreement voluntarily and for the mentor

24 firm to terminate the agreement for cause.
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1 ‘‘(f) FORMS OF ASSISTANCE.—A mentor firm may

2 provide a protege firm the following:

3 ‘‘(1) Assistance, by using mentor firm per4 sonnel, in—

5 ‘‘(A) general business management, includ6 ing organizational management, financial man7 agement, and personnel management, mar8 keting, business development, and overall busi9 ness planning;

10 ‘‘(B) engineering and technical matters

11 such as production, inventory control, and qual12 ity assurance; and

13 ‘‘(C) any other assistance designed to de14 velop the capabilities of the protege firm under

15 the developmental program referred to in sub16 section (e).

17 ‘‘(2) Award of subcontracts on a noncompetitive

18 basis to the protege firm under the Department of

19 Defense or other contracts.

20 ‘‘(3) Payment of progress payments for per21 formance of the protege firm under such a sub22 contract in amounts as provided for in the sub23 contract, but in no event may any such progress

24 payment exceed 100 percent of the costs incurred by

25 the protege firm for the performance.
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1 ‘‘(4) Advance payments under such sub2 contracts.

3 ‘‘(5) Loans.

4 ‘‘(6) Cash in exchange for an ownership interest

5 in the protege firm, not to exceed 10 percent of the

6 total ownership interest.

7 ‘‘(7) Assistance obtained by the mentor firm for

8 the protege firm from one or more of the following:

9 ‘‘(A) Small business development centers

10 established pursuant to section 21 of the Small

11 Business Act (15 U.S.C. 648).

12 ‘‘(B) Entities providing procurement tech13 nical assistance pursuant to chapter 142 of this

14 title.

15 ‘‘(C) A historically Black college or univer16 sity or a minority institution of higher edu17 cation.

18 ‘‘(g) INCENTIVES FOR MENTOR FIRMS.—(1) The

19 Secretary of Defense may provide to a mentor firm reim20 bursement for the total amount of any progress payment

21 or advance payment made under the program by the men22 tor firm to a protege firm in connection with a Depart23 ment of Defense contract awarded the mentor firm.

24 ‘‘(2)(A) The Secretary of Defense may provide to a

25 mentor firm reimbursement for the costs of the assistance
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1 furnished to a protege firm pursuant to paragraphs (1)

2 and (7) of subsection (f) as provided for in a line item

3 in a Department of Defense contract under which the

4 mentor firm is furnishing products or services to the De5 partment, subject to a maximum amount of reimburse6 ment specified in such contract. The preceding sentence

7 does not apply in a case in which the Secretary of Defense

8 determines in writing that unusual circumstances justify

9 reimbursement using a separate contract.

10 ‘‘(B) The determinations made in annual perform11 ance reviews of a mentor firm’s mentor-protege agreement

12 under subsection (j)(2) shall be a major factor in the de13 terminations of amounts of reimbursement, if any, that

14 the mentor firm is eligible to receive in the remaining

15 years of the program participation term under the agree16 ment.

17 ‘‘(C) The total amount reimbursed under this para18 graph to a mentor firm for costs of assistance furnished

19 in a fiscal year to a protege firm may not exceed

20 $1,000,000, except in a case in which the Secretary of De21 fense determines in writing that unusual circumstances

22 justify a reimbursement of a higher amount.

23 ‘‘(3)(A) Costs incurred by a mentor firm in providing

24 assistance to a protege firm that are not reimbursed pur25 suant to paragraph (2) shall be recognized as credit in
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1 lieu of subcontract awards for purposes of determining

2 whether the mentor firm attains a subcontracting partici3 pation goal applicable to such mentor firm under a De4 partment of Defense contract, under a contract with an5 other executive agency, or under a divisional or company6 wide subcontracting plan negotiated with the Department

7 of Defense or another executive agency.

8 ‘‘(B) The amount of the credit given a mentor firm

9 for any such unreimbursed costs shall be equal to—

10 ‘‘(i) four times the total amount of such costs

11 attributable to assistance provided by entities de12 scribed in subsection (f)(7);

13 ‘‘(ii) three times the total amount of such costs

14 attributable to assistance furnished by the mentor

15 firm’s employees; and

16 ‘‘(iii) two times the total amount of any other

17 such costs.

18 ‘‘(C) Under regulations prescribed pursuant to sub19 section (k), the Secretary of Defense shall adjust the

20 amount of credit given a mentor firm pursuant to sub21 paragraphs (A) and (B) if the Secretary determines that

22 the firm’s performance regarding the award of sub23 contracts to eligible small business concerns has declined

24 without justifiable cause.
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1 ‘‘(4) A mentor firm shall receive credit toward the

2 attainment of a subcontracting participation goal applica3 ble to such mentor firm for each subcontract for a product

4 or service awarded under such contract by a mentor firm

5 to a business concern that, except for its size, would be

6 a small business concern owned and controlled by socially

7 and economically disadvantaged individuals, but only if—

8 ‘‘(A) the size of such business concern is not

9 more than two times the maximum size specified by

10 the Administrator of the Small Business Administra11 tion for purposes of determining whether a business

12 concern furnishing such product or service is a small

13 business concern; and

14 ‘‘(B) the business concern formerly had a men15 tor-protege agreement with such mentor firm that

16 was not terminated for cause.

17 ‘‘(h) RELATIONSHIP TO SMALL BUSINESS ACT.—(1)

18 For purposes of the Small Business Act, no determination

19 of affiliation or control (either direct or indirect) may be

20 found between a protege firm and its mentor firm on the

21 basis that the mentor firm has agreed to furnish (or has

22 furnished) to its protege firm pursuant to a mentor-pro23 tege agreement any form of developmental assistance de24 scribed in subsection (f).
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1 ‘‘(2) Notwithstanding section 8 of the Small Business

2 Act (15 U.S.C. 637), the Small Business Administration

3 may not determine an eligible small business concern to

4 be ineligible to receive any assistance authorized under the

5 Small Business Act on the basis that such business con6 cern has participated in the Mentor-Protege Program or

7 has received assistance pursuant to any developmental as8 sistance agreement authorized under such program.

9 ‘‘(3) The Small Business Administration may not re10 quire a firm that is entering into, or has entered into, an

11 agreement under subsection (e) as a protege firm to sub12 mit the agreement, or any other document required by the

13 Secretary of Defense in the administration of the Mentor14 Protege Program, to the Small Business Administration

15 for review, approval, or any other purpose.

16 ‘‘(i) PARTICIPATION IN MENTOR-PROTEGE PROGRAM

17 NOT TO BE A CONDITION FOR AWARD OF A CONTRACT

18 OR SUBCONTRACT.—A mentor firm may not require a

19 business concern to enter into an agreement with the men20 tor firm pursuant to subsection (e) as a condition for

21 being awarded a contract by the mentor firm, including

22 a subcontract under a contract awarded to the mentor

23 firm.

24 ‘‘(j) REPORTS AND REVIEWS.—(1) The mentor firm

25 and protege firm under a mentor-protege agreement shall
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1 submit to the Secretary of Defense an annual report on

2 the progress made by the protege firm in employment, rev3 enues, and participation in Department of Defense con4 tracts during the fiscal year covered by the report. The

5 requirement for submission of an annual report applies

6 with respect to each fiscal year covered by the program

7 participation term under the agreement and each of the

8 two fiscal years following the expiration of the program

9 participation term. The Secretary shall prescribe the tim10 ing and form of the annual report.

11 ‘‘(2)(A) The Secretary shall conduct an annual per12 formance review of each mentor-protege agreement that

13 provides for reimbursement of costs. The Secretary shall

14 determine on the basis of the review whether—

15 ‘‘(i) all costs reimbursed to the mentor firm

16 under the agreement were reasonably incurred to

17 furnish assistance to the protege firm in accordance

18 with the requirements of this section and applicable

19 regulations; and

20 ‘‘(ii) the mentor firm and protege firm accu21 rately reported progress made by the protege firm in

22 employment, revenues, and participation in Depart23 ment of Defense contracts during the program par24 ticipation term covered by the mentor-protege agree-
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1 ment and the two fiscal years following the expira2 tion of the program participation term.

3 ‘‘(B) The Secretary shall act through the Commander

4 of the Defense Contract Management Command in car5 rying out the reviews and making the determinations

6 under subparagraph (A).

7 ‘‘(k) REGULATIONS AND POLICIES.—(1) The Sec8 retary of Defense shall prescribe regulations to carry out

9 the Mentor-Protege Program. The regulations shall in10 clude the following:

11 ‘‘(A) The requirements set forth in section 8(d)

12 of the Small Business Act (15 U.S.C. 673(d)).

13 ‘‘(B) Procedures by which mentor firms may

14 terminate participation in the program.

15 ‘‘(2) The Department of Defense policy regarding the

16 Mentor-Protege Program shall be published and main17 tained as an appendix to the Department of Defense Sup18 plement to the Federal Acquisition Regulation.

19 ‘‘(l) DEFINITIONS.—In this section:

20 ‘‘(1) The term ‘small business concern’ means

21 a business concern that meets the requirements of

22 section 3(a) of the Small Business Act (15 U.S.C.

23 632(a)) and the regulations promulgated pursuant

24 thereto.
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1 ‘‘(2) The term ‘eligible small business concern’

2 is a small business concern that—

3 ‘‘(A) is either—

4 ‘‘(i) a disadvantaged small business

5 concern; or

6 ‘‘(ii) a small business concern owned

7 and controlled by women; and

8 ‘‘(B) is eligible for the award of Federal

9 contracts.

10 ‘‘(3) The term ‘disadvantaged small business

11 concern’ means—

12 ‘‘(A) a small business concern owned and

13 controlled by socially and economically dis14 advantaged individuals, as defined in section

15 8(d)(3)(C) of the Small Business Act (15

16 U.S.C. 637(d)(3)(C));

17 ‘‘(B) a business entity owned and con18 trolled by an Indian tribe as defined by section

19 8(a)(13) of the Small Business Act (15 U.S.C.

20 637(a)(13));

21 ‘‘(C) a business entity owned and con22 trolled by a Native Hawaiian Organization as

23 defined by section 8(a)(15) of the Small Busi24 ness Act (15 U.S.C. 637(a)(15)); or
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1 ‘‘(D) a qualified organization employing

2 the severely disabled.

3 ‘‘(4) The term ‘small business concern owned

4 and controlled by women’ has the meaning given

5 such term in section 8(d)(3)(D) of the Small Busi6 ness Act (15 U.S.C. 637(d)(3)(D)).

7 ‘‘(5) The term ‘historically Black college and

8 university’ means any of the historically Black col9 leges and universities referred to in section 2323 of

10 this title.

11 ‘‘(6) The term ‘minority institution of higher

12 education’ means an institution of higher education

13 with a student body that reflects the composition

14 specified in paragraphs (3), (4), and (5) of section

15 312(b) of the Higher Education Act of 1965 (20

16 U.S.C. 1058(b)), as in effect on September 30,

17 1992.

18 ‘‘(7) The term ‘subcontracting participation

19 goal’, with respect to a Department of Defense con20 tract, means a goal for the extent of the participa21 tion by eligible small business concerns in the sub22 contracts awarded under such contract, as estab23 lished pursuant to section 2323 of this title and sec24 tion 8(d) of the Small Business Act (15 U.S.C.

25 637(d)).
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1 ‘‘(8) The term ‘qualified organization employing

2 the severely disabled’ means a business entity oper3 ated on a for-profit or nonprofit basis that—

4 ‘‘(A) uses rehabilitative engineering to pro5 vide employment opportunities for severely dis6 abled individuals and integrates severely dis7 abled individuals into its workforce;

8 ‘‘(B) employs severely disabled individuals

9 at a rate that averages not less than 20 percent

10 of its total workforce;

11 ‘‘(C) employs each severely disabled indi12 vidual in its workforce generally on the basis of

13 40 hours per week; and

14 ‘‘(D) pays not less than the minimum wage

15 prescribed pursuant to section 6 of the Fair

16 Labor Standards Act of 1938 (29 U.S.C. 206)

17 to those employees who are severely disabled in18 dividuals.

19 ‘‘(9) The term ‘severely disabled individual’

20 means an individual who has a physical or mental

21 disability which constitutes a substantial handicap to

22 employment and which, in accordance with criteria

23 prescribed by the Committee for Purchase From

24 People Who Are Blind or Severely Disabled estab25 lished by the first section of the Javits-Wagner-
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1 O’Day Act (41 U.S.C. 46), is of such a nature that

2 the individual is otherwise prevented from engaging

3 in normal competitive employment.’’.

4 (2) The table of sections at the beginning of such

5 chapter is amended by inserting after the item relating

6 to section 2402 the following new item:

‘‘2403. Mentor-Protege Program.’’.

7 (b) REPEAL OF SUPERSEDED LAW.—Section 831 of

8 the National Defense Authorization Act for Fiscal Year

9 1991 (10 U.S.C. 2302 note) is repealed.

10 (c) CONTINUATION OF TEMPORARY REPORTING RE11 QUIREMENT.—(1) Not later than six months after the end

12 of each of fiscal years 2001 through 2004, the Secretary

13 of Defense shall submit to Congress an annual report on

14 the Mentor-Protege Program for that fiscal year.

15 (2) The annual report for a fiscal year shall include,

16 at a minimum, the following:

17 (A) The number of mentor-protege agreements

18 that were entered into during the fiscal year.

19 (B) The number of mentor-protege agreements

20 that were in effect during the fiscal year.

21 (C) The total amount reimbursed during the

22 fiscal year to mentor firms pursuant to section

23 2403(g) of title 10, United States Code (as added by

24 subsection (a)), or section 831(g) of the National

25 Defense Authorization Act for fiscal year 1991 (as
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1 in effect on the day before the date of the enactment

2 of this Act).

3 (D) Each mentor-protege agreement, if any,

4 that was approved during the fiscal year in accord5 ance with section 2403(e)(2) of title 10, United

6 States Code (as added by subsection (a)), or section

7 831(e)(2) of the National Defense Authorization Act

8 for Fiscal Year 1991 (as in effect on the day before

9 the date of the enactment of this Act) to provide a

10 program participation term in excess of three years,

11 together with the justification for the approval.

12 (E) Each reimbursement of a mentor firm in

13 excess of the limitation in subsection (g)(2)(C) of

14 section 2403 of title 10, United States Code (as

15 added by subsection (a)), or subsection (g)(2)(C) of

16 section 831 of the National Defense Authorization

17 Act for Fiscal Year 1991 (as in effect on the day be18 fore the date of the enactment of this Act) that was

19 made during the fiscal year pursuant to an approval

20 granted in accordance with that subsection, together

21 with the justification for the approval.

22 (F) Trends in the progress made in employ23 ment, revenues, and participation in Department of

24 Defense contracts by the protege firms participating

25 in the program during the fiscal year and the pro-
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1 tege firms that completed or otherwise terminated

2 participation in the program during the preceding

3 two fiscal years.

4 (d) CONTINUATION OF REQUIREMENT FOR GAO

5 STUDY AND REPORT.—Nothing in this section shall be

6 construed as modifying the requirements of section

7 811(d)(3) of the National Defense Authorization Act for

8 Fiscal Year 2000 (Public Law 106–65; 113 Stat. 709).

9 (e) SAVINGS PROVISIONS.—(1) All orders, determina10 tions, rules, regulations, contracts, privileges, and other

11 administrative actions that—

12 (A) have been issued, made, granted, or allowed

13 to become effective under the pilot Mentor-Protege

14 Program under section 831 of the National Defense

15 Authorization Act for Fiscal Year 1991, as in effect

16 on the day before the date of the enactment of this

17 Act, including any such action taken by a court of

18 competent jurisdiction, and

19 (B) are in effect at the end of such day, or were

20 final before the date of the enactment of this Act

21 and are to become effective on or after that date,

22 shall continue in effect according to their terms until

23 modified, terminated, superseded, set aside, or revoked in

24 accordance with law by the Secretary of Defense or a court

25 of competent jurisdiction or by operation of law.
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1 (2) This section and the amendments made by this

2 section shall not affect any proceedings, including notices

3 of proposed rulemaking, that are pending before the De4 partment of Defense as of the date of the enactment of

5 this Act, with respect to the administration of the pilot

6 Mentor-Protege Program under section 831 of the Na7 tional Defense Authorization Act for Fiscal Year 1991,

8 as in effect on the day before that date, but such pro9 ceedings and applications shall be continued. Orders shall

10 be issued in such proceedings, appeals shall be taken

11 therefrom, and payments shall be made pursuant to such

12 orders, as if this section had not been enacted, and orders

13 issued in any such proceedings shall continue in effect

14 until modified, terminated, superseded, or revoked by a

15 duly authorized official, by a court of competent jurisdic16 tion, or by operation of law. Nothing in this section shall

17 be deemed to prohibit the discontinuance or modification

18 of any such proceeding under the same terms and condi19 tions and to the same extent that such proceeding could

20 have been discontinued or modified if this section had not

21 been enacted.

22 (3) The amendment made by subsection (a)(1), and

23 the repeal of section 831 of the National Defense Author24 ization Act for Fiscal Year 1991 by subsection (b), shall

25 not be construed as modifying or otherwise affecting the
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1 requirement in section 811(f)(2) of the National Defense

2 Authorization Act for Fiscal Year 2000 (Public Law 106–

3 65; 113 Stat. 709).

4 Subtitle D—Amendments to Gen5 eral Contracting Authorities,

6 Procedures, and Related Mat7 ters

8 SEC. 831. AMENDMENTS TO CONFORM WITH ADMINISTRA9 TIVE CHANGES IN ACQUISITION PHASE AND

10 MILESTONE TERMINOLOGY AND TO MAKE

11 RELATED ADJUSTMENTS IN CERTAIN RE12 QUIREMENTS APPLICABLE AT MILESTONE

13 TRANSITION POINTS.

14 (a) ACQUISITION PHASE TERMINOLOGY.—The fol15 lowing provisions of title 10, United States Code, are

16 amended by striking ‘‘engineering and manufacturing de17 velopment’’ each place it appears and inserting ‘‘system

18 development and demonstration’’: sections 2366(c) and

19 2434(a), and subsections (b)(3)(A)(i), (c)(3)(A), and

20 (h)(1) of section 2432.

21 (b) MILESTONE TRANSITION POINTS.—(1) Section

22 811(c) of the Floyd D. Spence National Defense Author23 ization Act for Fiscal Year 2001 (as enacted into law by

24 Public Law 106–398; 114 Stat. 1654A–211), is amended

25 by striking ‘‘Milestone I approval, Milestone II approval,
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1 or Milestone III approval (or the equivalent) of a major

2 automated information system’’ and inserting ‘‘approval

3 of a major automated information system at Milestone B

4 or C or for full rate production, or an equivalent ap5 proval,’’.

6 (2) Department of Defense Directive 5000.1, as re7 vised in accordance with subsection (b) of section 811 of

8 such Act, shall be further revised as necessary to comply

9 with subsection (c) of such section, as amended by para10 graph (1), within 60 days after the date of the enactment

11 of this Act.

12 (c) ADJUSTMENTS TO REQUIREMENT FOR DETER13 MINATION OF QUANTITY FOR LOW-RATE INITIAL PRO14 DUCTION.—Section 2400(a) of title 10, United States

15 Code, is amended—

16 (1) by striking ‘‘milestone II’’ each place it ap17 pears in paragraphs (1)(A), (2), (4) and (5) and in18 serting ‘‘milestone B’’; and

19 (2) in paragraph (2), by striking ‘‘engineering

20 and manufacturing development’’ and inserting ‘‘sys21 tem development and demonstration’’.

22 (d) ADJUSTMENTS TO REQUIREMENTS FOR BASE23 LINE DESCRIPTION AND THE RELATED LIMITATION.—

24 Section 2435 of title 10, United States Code, is

25 amended—
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1 (1) in subsection (b), by striking ‘‘engineering

2 and manufacturing development’’ and inserting ‘‘sys3 tem development and demonstration’’; and

4 (2) in subsection (c)—

5 (A) in paragraph (1), by striking ‘‘dem6 onstration and validation’’ and inserting ‘‘sys7 tem development and demonstration’’;

8 (B) in paragraph (2), by striking ‘‘engi9 neering and manufacturing development’’ and

10 inserting ‘‘production and deployment’’; and

11 (C) in paragraph (3), by striking ‘‘produc12 tion and deployment’’ and inserting ‘‘full rate

13 production’’.

14 SEC. 832. INAPPLICABILITY OF LIMITATION TO SMALL PUR15 CHASES OF MINIATURE OR INSTRUMENT

16 BALL OR ROLLER BEARINGS UNDER CER17 TAIN CIRCUMSTANCES.

18 Section 2534(g)(2) of title 10, United States Code,

19 is amended—

20 (1) by striking ‘‘contracts’’ and inserting ‘‘a

21 contract’’;

22 (2) by striking the period at the end and insert23 ing ‘‘unless the head of the contracting activity de24 termines that—’’; and

25 (3) by adding at the end the following:
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1 ‘‘(A) the amount of the purchase does not ex2 ceed $25,000;

3 ‘‘(B) the precision level of the ball or roller

4 bearings to be procured under the contract is rated

5 lower than the rating known as Annual Bearing En6 gineering Committee (ABEC) 5 or Roller Bearing

7 Engineering Committee (RBEC) 5, or an equivalent

8 of such rating;

9 ‘‘(C) at least two manufacturers in the national

10 technology and industrial base that are capable of

11 producing the ball or roller bearings have not re12 sponded to a request for quotation issued by the

13 contracting activity for that contract; and

14 ‘‘(D) no bearing to be procured under the con15 tract has a basic outside diameter (exclusive of

16 flange diameters) in excess of 30 millimeters.’’.

17 TITLE IX—DEPARTMENT OF DE18 FENSE ORGANIZATION AND

19 MANAGEMENT

20 SEC. 901. DEPUTY UNDER SECRETARY OF DEFENSE FOR

21 PERSONNEL AND READINESS.

22 (a) ESTABLISHMENT OF POSITION.—(1) Chapter 4

23 of title 10, United States Code, is amended by inserting

24 after section 136 the following new section:
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1 ‘‘§ 136a. Deputy Under Secretary of Defense for Per2 sonnel and Readiness

3 ‘‘(a) There is a Deputy Under Secretary of Defense

4 for Personnel and Readiness, appointed from civilian life

5 by the President, by and with the advice and consent of

6 the Senate.

7 ‘‘(b) The Deputy Under Secretary of Defense for Per8 sonnel and Readiness shall assist the Under Secretary of

9 Defense for Personnel and Readiness in the performance

10 of the duties of that position. The Deputy Under Sec11 retary of Defense for Personnel and Readiness shall act

12 for, and exercise the powers of, the Under Secretary when

13 the Under Secretary is absent or disabled.’’.

14 (2) The table of sections at the beginning of such

15 chapter is amended by inserting after the item relating

16 to section 136 the following new item:

‘‘136a. Deputy Under Secretary of Defense for Personnel and Readiness.’’.

17 (b) EXECUTIVE LEVEL IV.—Section 5315 of title 5,

18 United States Code, is amended by inserting after ‘‘Dep19 uty Under Secretary of Defense for Policy.’’ the following:

20 ‘‘Deputy Under Secretary of Defense for Per21 sonnel and Readiness.’’.

22 (c) REDUCTION IN NUMBER OF ASSISTANT SECRE23 TARIES OF DEFENSE.—(1) Section 138(a) of title 10,

24 United States Code, is amended by striking ‘‘nine’’ and

25 inserting ‘‘eight’’.
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1 (2) Section 5315 of title 5, United States Code, is

2 amended by striking ‘‘Assistant Secretaries of Defense

3 (9).’’ and inserting the following:

4 ‘‘Assistant Secretaries of Defense (8).’’.

5 SEC. 902. RESPONSIBILITY OF UNDER SECRETARY OF THE

6 AIR FORCE FOR ACQUISITION OF SPACE

7 LAUNCH VEHICLES AND SERVICES.

8 Section 8015(b) of title 10, United States Code, is

9 amended—

10 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

11 (2) by adding at the end the following new

12 paragraph:

13 ‘‘(2) The Under Secretary shall be responsible for

14 planning and contracting for, and for managing, the ac15 quisition of space launch vehicles and space launch serv16 ices for the Department of Defense and the National Re17 connaissance Office.’’.

18 SEC. 903. SENSE OF CONGRESS REGARDING THE SELEC19 TION OF OFFICERS FOR ASSIGNMENT AS THE

20 COMMANDER IN CHIEF, UNITED STATES

21 TRANSPORTATION COMMAND.

22 (a) FINDINGS.—Congress makes the following find23 ings:

24 (1) The Goldwater-Nichols Department of De25 fense Reorganization Act of 1986 envisioned that an
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1 officer would be assigned to serve as the commander

2 of a combatant command on the basis of being the

3 best qualified officer for the assignment rather than

4 the best qualified officer of the armed force that has

5 historically supplied an officer to serve in that as6 signment.

7 (2) In order to provide for greater competition

8 among the Armed Forces for selection of officers for

9 assignment as the commanders of the combatant

10 commands and assignment to certain other joint po11 sitions in the grade of general or admiral, Congress

12 provided temporary relief from the limitation on the

13 number of officers serving on active duty in the

14 grade of general or admiral in section 405 of the

15 National Defense Authorization Act for Fiscal Year

16 1995 and thereafter extended that relief until Sep17 tember 30, 2003, but has also required that the Sec18 retary of Defense be furnished the name of at least

19 one officer from each of the Armed Forces for con20 sideration for appointment to each such position.

21 (3) Most of the positions of commanders of the

22 combatant commands have been filled successively

23 by officers of more than one of the Armed Forces

24 since the enactment of the Goldwater-Nichols De25 partment of Defense Reorganization Act of 1986.
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1 (4) However, general officers of the Air Force

2 with only limited experience in the transportation

3 services have usually filled the position of Com4 mander in Chief of the United States Transpor5 tation Command.

6 (5) The United States Transportation Com7 mand and its component commands could benefit

8 from the appointment of an officer selected from the

9 two armed forces that are the primary users of their

10 transportation resources, namely the Army and the

11 Marine Corps.

12 (b) SENSE OF CONGRESS.— In light of the findings

13 set forth in subsection (a), it is the sense of Congress that

14 the Secretary of Defense should, when considering officers

15 for recommendation to the President for appointment as

16 the Commander in Chief, United States Transportation

17 Command, give careful consideration to recommending an

18 officer of the Army or the Marine Corps.

19 SEC. 904. ORGANIZATIONAL REALIGNMENT FOR NAVY DI20 RECTOR FOR EXPEDITIONARY WARFARE.

21 Section 5038(a) of title 10, United States Code, is

22 amended by striking ‘‘Office of the Deputy Chief of Naval

23 Operations for Resources, Warfare Requirements, and As24 sessments’’ and inserting ‘‘Office of the Deputy Chief of
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1 Naval Operations for Warfare Requirements and Pro2 grams’’.

3 SEC. 905. REVISED REQUIREMENTS FOR CONTENT OF AN4 NUAL REPORT ON JOINT WARFIGHTING EX5 PERIMENTATION.

6 Section 485(b) of title 10, United States Code, is

7 amended—

8 (1) by inserting before the period at the end of

9 paragraph (1) the following: ‘‘, together with a spe10 cific assessment of whether there is a need for a

11 major force program for funding joint warfighting

12 experimentation and for funding the development

13 and acquisition of any technology the value of which

14 has been empirically demonstrated through such ex15 perimentation’’; and

16 (2) in paragraph (4)(E)—

17 (A) by inserting ‘‘(by lease or by pur18 chase)’’ after ‘‘acquire’’; and

19 (B) by inserting ‘‘(including any proto20 type)’’ after ‘‘or equipment’’.

21 SEC. 906. SUSPENSION OF REORGANIZATION OF ENGINEER22 ING AND TECHNICAL AUTHORITY POLICY

23 WITHIN THE NAVAL SEA SYSTEMS COMMAND.

24 (a) SUSPENSION.—During the period specified in

25 subsection (b), the Secretary of the Navy may not com-
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1 mence or continue any change in engineering or technical

2 authority policy for the Naval Sea Systems Command or

3 its subsidiary activities.

4 (b) DURATION.—Subsection (a) applies during the

5 period beginning on the date of enactment of this Act and

6 ending 60 days after the date on which the Secretary sub7 mits to the congressional defense committees a report that

8 sets forth in detail the Navy’s plans and justification for

9 the reorganization of engineering and technical authority

10 policy within the Naval Sea Systems Command.

11 SEC. 907. CONFORMING AMENDMENTS RELATING TO

12 CHANGE OF NAME OF AIR MOBILITY COM13 MAND.

14 (a) TITLE 10, UNITED STATES CODE.—Title 10,

15 United States Code, is amended—

16 (1) by striking ‘‘Military Airlift Command’’ in

17 sections 2554(d) and 2555(a) and inserting ‘‘Air

18 Mobility Command’’; and

19 (2) in section 8074, by striking subsection (c).

20 (b) TITLE 37, UNITED STATES CODE.—Sections

21 430(c) and 432(b) of title 37, United States Code, are

22 amended by striking ‘‘Military Airlift Command’’ and in23 serting ‘‘Air Mobility Command’’.
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1 TITLE X—GENERAL PROVISIONS

2 Subtitle A—Financial Matters

3 SEC. 1001. TRANSFER AUTHORITY.

4 (a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—

5 (1) Upon determination by the Secretary of Defense that

6 such action is necessary in the national interest, the Sec7 retary may transfer amounts of authorizations made avail8 able to the Department of Defense in this division for fis9 cal year 2002 between any such authorizations for that

10 fiscal year (or any subdivisions thereof). Amounts of au11 thorizations so transferred shall be merged with and be

12 available for the same purposes as the authorization to

13 which transferred.

14 (2) The total amount of authorizations that the Sec15 retary may transfer under the authority of this section

16 may not exceed $2,000,000,000.

17 (b) LIMITATIONS.—The authority provided by this

18 section to transfer authorizations—

19 (1) may only be used to provide authority for

20 items that have a higher priority than the items

21 from which authority is transferred; and

22 (2) may not be used to provide authority for an

23 item that has been denied authorization by Con24 gress.
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1 (c) EFFECT ON AUTHORIZATION AMOUNTS.—A

2 transfer made from one account to another under the au3 thority of this section shall be deemed to increase the

4 amount authorized for the account to which the amount

5 is transferred by an amount equal to the amount trans6 ferred.

7 (d) NOTICE TO CONGRESS.—The Secretary shall

8 promptly notify Congress of each transfer made under

9 subsection (a).

10 SEC. 1002. REDUCTION IN AUTHORIZATIONS OF APPRO11 PRIATIONS FOR DEPARTMENT OF DEFENSE

12 FOR MANAGEMENT EFFICIENCIES.

13 Notwithstanding any other provision of this Act, the

14 total amount authorized to be appropriated for the De15 partment of Defense by divisions A and B of this Act is

16 hereby reduced by $1,630,000,000, to reflect savings to

17 be achieved through implementation of the provisions of

18 title VIII and other management efficiencies and business

19 process reforms.

20 SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPRO21 PRIATIONS FOR FISCAL YEAR 2001.

22 Amounts authorized to be appropriated to the De23 partment of Defense for fiscal year 2001 in the Floyd D.

24 Spence National Defense Authorization Act for Fiscal

25 Year 2001 (as enacted into law by Public Law 106–398)
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1 are hereby adjusted, with respect to any such authorized

2 amount, by the amount by which appropriations pursuant

3 to such authorization were increased (by a supplemental

4 appropriation) or decreased (by a rescission), or both, in

5 title I of the Supplemental Appropriations Act, 2001

6 (Public Law 107–20).

7 SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COM8 MON-FUNDED BUDGETS IN FISCAL YEAR 2002.

9 (a) FISCAL YEAR 2002 LIMITATION.—The total

10 amount contributed by the Secretary of Defense in fiscal

11 year 2002 for the common-funded budgets of NATO may

12 be any amount up to, but not in excess of, the amount

13 specified in subsection (b) (rather than the maximum

14 amount that would otherwise be applicable to those con15 tributions under the fiscal year 1998 baseline limitation).

16 (b) TOTAL AMOUNT.—The amount of the limitation

17 applicable under subsection (a) is the sum of the following:

18 (1) The amounts of unexpended balances, as of

19 the end of fiscal year 2001, of funds appropriated

20 for fiscal years before fiscal year 2002 for payments

21 for those budgets.

22 (2) The amount specified in subsection (c)(1).

23 (3) The amount specified in subsection (c)(2).

24 (4) The total amount of the contributions au25 thorized to be made under section 2501.
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1 (c) AUTHORIZED AMOUNTS.—Amounts authorized to

2 be appropriated by titles II and III of this Act are avail3 able for contributions for the common-funded budgets of

4 NATO as follows:

5 (1) Of the amount provided in section 201(1),

6 $708,000 for the Civil Budget.

7 (2) Of the amount provided in section 301(1),

8 $175,849,000 for the Military Budget.

9 (d) DEFINITIONS.—For purposes of this section:

10 (1) COMMON-FUNDED BUDGETS OF NATO.—

11 The term ‘‘common-funded budgets of NATO’’

12 means the Military Budget, the Security Investment

13 Program, and the Civil Budget of the North Atlantic

14 Treaty Organization (and any successor or addi15 tional account or program of NATO).

16 (2) FISCAL YEAR 1998 BASELINE LIMITATION.—

17 The term ‘‘fiscal year 1998 baseline limitation’’

18 means the maximum annual amount of Department

19 of Defense contributions for common-funded budgets

20 of NATO that is set forth as the annual limitation

21 in section 3(2)(C)(ii) of the resolution of the Senate

22 giving the advice and consent of the Senate to the

23 ratification of the Protocols to the North Atlantic

24 Treaty of 1949 on the Accession of Poland, Hun25 gary, and the Czech Republic (as defined in section
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1 4(7) of that resolution), approved by the Senate on

2 April 30, 1998.

3 SEC. 1005. CLARIFICATION OF APPLICABILITY OF INTER4 EST PENALTIES FOR LATE PAYMENT OF IN5 TERIM PAYMENTS DUE UNDER CONTRACTS

6 FOR SERVICES.

7 Section 1010(d) of the Floyd D. Spence National De8 fense Authorization Act for Fiscal Year 2001 (as enacted

9 into law by Public Law 106–398; 114 Stat. 1654A–251)

10 is amended by inserting before the period at the end of

11 the first sentence the following: ‘‘, and shall apply with

12 respect to interim payments that are due on or after such

13 date under contracts entered into before, on, or after that

14 date’’.

15 SEC. 1006. RELIABILITY OF DEPARTMENT OF DEFENSE FI16 NANCIAL STATEMENTS.

17 (a) ANNUAL REPORT ON RELIABILITY.—(1) Not

18 later than July 1 of each year, the Secretary of Defense

19 shall submit to the recipients referred to in paragraph (3)

20 a report on the reliability of the Department of Defense

21 financial statements, including the financial statements of

22 each component of the department that is required to pre23 pare a financial statement under section 3515(c) of title

24 31, United States Code.

25 (2) The annual report shall contain the following:
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1 (A) A conclusion regarding whether the policies

2 and procedures of the Department of Defense, and

3 the systems used within the Department of Defense,

4 for the preparation of financial statements allow the

5 achievement of reliability in the financial statements.

6 (B) For each of the financial statements pre7 pared for the Department of Defense for the fiscal

8 year in which the report is submitted, a conclusion

9 regarding the expected reliability of the financial

10 statement (evaluated on the basis of Office of Man11 agement and Budget guidance on financial state12 ments), together with a discussion of the major defi13 ciencies to be expected in the statement.

14 (C) A summary of the specific sections of the

15 annual Financial Management Improvement Plan of

16 the Department of Defense, current as of the date

17 of the report, that—

18 (i) detail the priorities, milestones, and

19 measures of success that apply to the prepara20 tion of the financial statements;

21 (ii) detail the planned improvements in the

22 process for the preparation of financial state23 ments that are to be implemented within 12

24 months after the date on which the plan is

25 issued; and
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1 (iii) provide an estimate of when each fi2 nancial statement will convey reliable informa3 tion.

4 (3) The annual report shall be submitted to the fol5 lowing:

6 (A) The Committee on Armed Services and the

7 Committee on Governmental Affairs of the Senate.

8 (B) The Committee on Armed Services and the

9 Committee on Government Reform of the House of

10 Representatives.

11 (C) The Director of the Office of Management

12 and Budget.

13 (D) The Secretary of the Treasury.

14 (E) The Comptroller General of the United

15 States.

16 (4) The Secretary of Defense shall make a copy of

17 the annual report available to the Inspector General of the

18 Department of Defense.

19 (b) MINIMIZATION OF USE OF RESOURCES FOR UN20 RELIABLE FINANCIAL STATEMENTS.—(1) With respect to

21 each financial statement for a fiscal year that the Sec22 retary of Defense assesses as being expected to be unreli23 able in the annual report under subsection (a), the Under

24 Secretary of Defense (Comptroller) or the Assistant Sec25 retary (Financial Management and Comptroller) of the
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1 military department concerned shall take appropriate ac2 tions to minimize the resources, including contractor sup3 port, that are used to develop, compile, and report the fi4 nancial statement.

5 (2)(A) With the annual budget justifications for the

6 Department of Defense submitted to Congress each year,

7 the Under Secretary of Defense (Comptroller) shall sub8 mit, with respect to the fiscal year in which submitted,

9 the preceding fiscal year, and the following fiscal year, the

10 following information:

11 (i) An estimate of the resources that the De12 partment of Defense is saving or expects to save as

13 a result of actions taken and to be taken under

14 paragraph (1) with respect to the preparation of fi15 nancial statements.

16 (ii) A discussion of how the resources saved as

17 estimated under clause (i) have been redirected or

18 are to be redirected from the preparation of financial

19 statements to the improvement of systems under20 lying financial management within the Department

21 of Defense and to the improvement of financial man22 agement policies, procedures, and internal controls

23 within the Department of Defense.

24 (B) The Assistant Secretaries (Financial Manage25 ment and Comptroller) of the Army, Navy, and Air Force
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1 shall provide the Under Secretary of Defense (Comp2 troller) with the information necessary for making the es3 timate required by subparagraph (A)(i).

4 (c) INFORMATION TO AUDITORS.—Not later than Oc5 tober 31 of each year, the Under Secretary of Defense

6 (Comptroller) and the Assistant Secretaries (Financial

7 Management and Comptroller) of the Army, Navy, and

8 Air Force shall each provide to the auditors of the finan9 cial statement of that official’s department for the fiscal

10 year ending during the preceding month the official’s pre11 liminary management representation, in writing, regard12 ing the expected reliability of the financial statement. The

13 representation shall be consistent with guidance issued by

14 the Director of the Office of Management and Budget and

15 shall include the basis for the reliability assessment stated

16 in the representation.

17 (d) LIMITATION ON INSPECTOR GENERAL AUDITS.—

18 (1) On each financial statement that an official asserts

19 is unreliable under subsection (b) or (c), the Inspector

20 General of the Department of Defense shall only perform

21 the audit procedures required by generally accepted gov22 ernment auditing standards consistent with any represen23 tation made by management.

24 (2)(A) With the annual budget justifications for the

25 Department of Defense submitted to Congress each year,
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1 the Under Secretary of Defense (Comptroller) shall sub2 mit, with respect to the fiscal year in which submitted,

3 the preceding fiscal year, and the following fiscal year, in4 formation which the Inspector General shall report to the

5 Under Secretary, as follows:

6 (i) An estimate of the resources that the In7 spector General is saving or expects to save as a re8 sult of actions taken and to be taken under para9 graph (1) with respect to the auditing of financial

10 statements.

11 (ii) A discussion of how the resources saved as

12 estimated under clause (i) have been redirected or

13 are to be redirected from the auditing of financial

14 statements to the oversight and improvement of sys15 tems underlying financial management within the

16 Department of Defense and to the oversight and im17 provement of financial management policies, proce18 dures, and internal controls within the Department

19 of Defense.

20 (e) PERIOD OF APPLICABILITY.—(1) Except as pro21 vided in paragraph (2), the requirements of this section

22 shall apply with respect to financial statements for fiscal

23 years after fiscal year 2000 and before fiscal year 2006

24 and to the auditing of those financial statements.
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1 (2) If the Secretary of Defense certifies to the Inspec2 tor General of the Department of Defense that the finan3 cial statement for the Department of Defense, or a finan4 cial statement for a component of the Department of De5 fense, for a fiscal year is reliable, this section shall not

6 apply with respect to that financial statement or to any

7 successive financial statement for the department or that

8 component, as the case may be, for any later fiscal year.

9 SEC. 1007. SENIOR FINANCIAL MANAGEMENT OVERSIGHT

10 COUNCIL AND FINANCIAL FEEDER SYSTEMS

11 COMPLIANCE PROCESS.

12 (a) ESTABLISHMENT OF SENIOR FINANCIAL MAN13 AGEMENT OVERSIGHT COUNCIL.—(1) The Secretary of

14 Defense shall establish a Senior Financial Management

15 Oversight Council.

16 (2) The Council shall be composed of the Under Sec17 retary of Defense (Comptroller), the Under Secretary of

18 Defense (Acquisition, Technology, and Logistics), the

19 Under Secretary of Defense (Personnel and Readiness),

20 and other key managers of the Department of Defense (in21 cluding key managers in Defense Agencies and military

22 departments) who are designated by the Secretary.

23 (3) The Under Secretary of Defense (Comptroller)

24 shall be the Chairman of the Council.
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1 (b) DUTIES.—The Senior Financial Management

2 Oversight Council shall have the following duties:

3 (1) To establish a financial and feeder systems

4 compliance process that ensures that each critical

5 accounting, financial management, and feeder sys6 tem of the Department of Defense is compliant with

7 applicable Federal financial management and report8 ing requirements.

9 (2) To develop a management plan for the im10 plementation of the financial and feeder systems

11 compliance process.

12 (3) To supervise and monitor the actions that

13 are necessary to implement the management plan, as

14 approved by the Secretary of Defense.

15 (c) MANAGEMENT PLAN FOR IMPLEMENTATION OF

16 FINANCIAL FEEDER SYSTEMS COMPLIANCE PROCESS.—

17 The management plan developed under subsection (b)(2)

18 shall include among its principal elements at least the fol19 lowing elements:

20 (1) A requirement to establish and maintain a

21 complete inventory of all critical systems necessary

22 to produce and compile data for financial state23 ments.

24 (2) A phased process for improving systems

25 that provides for mapping financial data flow from
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1 sources to financial statements before other actions

2 are initiated.

3 (3) Periodic submittal of status reports to the

4 Senior Financial Management Oversight Council.

5 (4) Documentation of the completion of each

6 phase of the improvement of a system.

7 (5) Independent audit at the validation phase

8 for each critical system.

9 (d) REPORT.—(1) Not later than March 1, 2002, the

10 Secretary of Defense shall submit to the Committees on

11 Armed Services of the Senate and the House of Represent12 atives a report on the implementation of the Senior Finan13 cial Management Oversight Council and financial feeder

14 systems compliance process.

15 (2) The report shall include a discussion of the fol16 lowing matters:

17 (A) The Senior Financial Management Over18 sight Council (or any successor organization),

19 including—

20 (i) composition;

21 (ii) the roles and responsibilities regarding

22 supervision and monitoring of the actions nec23 essary to ensure that the critical accounting, fi24 nancial management, and feeder systems of the

25 Department of Defense comply with Federal fi-
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1 nancial management and reporting require2 ments; and

3 (iii) a summary of the actions taken by the

4 Council to ensure that the systems comply with

5 such requirements.

6 (B) The principal elements of the management

7 plan developed under subsection (b)(2) that are

8 being implemented or that the Secretary plans to

9 implement, including—

10 (i) a summary of all actions that have been

11 taken to implement each of the elements; and

12 (ii) a schedule, with specific milestones, for

13 completing the implementation of each of the

14 elements.

15 (C) The principal elements of the management

16 plan that the Secretary does not plan to implement,

17 together with the reasons for not implementing those

18 elements.

19 SEC. 1008. COMBATING TERRORISM READINESS INITIA20 TIVES FUND FOR COMBATANT COMMANDS.

21 (a) FUNDING FOR INITIATIVES.—Chapter 6 of title

22 10, United States Code, is amended by inserting after sec23 tion 166a the following new section:
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1 ‘‘§ 166b. Combatant commands: funding for com2 bating terrorism readiness initiatives

3 ‘‘(a) COMBATING TERRORISM READINESS INITIA4 TIVES FUND.—From funds made available in any fiscal

5 year for the budget account in the Department of Defense

6 known as the ‘Combating Terrorism Readiness Initiatives

7 Fund’, the Chairman of the Joint Chiefs of Staff may pro8 vide funds to the commander of a combatant command,

9 upon the request of the commander, or, with respect to

10 a geographic area or areas not within the area of responsi11 bility of a commander of a combatant command, to an

12 officer designated by the Chairman of the Joint Chiefs of

13 Staff for such purpose. The Chairman may provide such

14 funds for initiating any activity named in subsection (b)

15 and for maintaining and sustaining the activity for the

16 fiscal year in which initiated and one additional fiscal year.

17 ‘‘(b) AUTHORIZED ACTIVITIES.—Activities for which

18 funds may be provided under subsection (a) are the fol19 lowing:

20 ‘‘(1) Procurement and maintenance of physical

21 security equipment.

22 ‘‘(2) Improvement of physical security sites.

23 ‘‘(3) Under extraordinary circumstances—

24 ‘‘(A) physical security management plan25 ning;
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1 ‘‘(B) procurement and support of security

2 forces and security technicians;

3 ‘‘(C) security reviews and investigations

4 and vulnerability assessments; and

5 ‘‘(D) any other activity relating to physical

6 security.

7 ‘‘(c) PRIORITY.—The Chairman of the Joint Chiefs

8 of Staff, in considering requests for funds in the Com9 bating Terrorism Readiness Initiatives Fund, should give

10 priority consideration to emergency or emergent unfore11 seen high-priority requirements for combating terrorism.

12 ‘‘(d) RELATIONSHIP TO OTHER FUNDING.—Any

13 amount provided by the Chairman of the Joint Chiefs of

14 Staff for a fiscal year out of the Combating Terrorism

15 Readiness Initiatives Fund for an activity referred to in

16 subsection (b) shall be in addition to amounts otherwise

17 available for that activity for that fiscal year.

18 ‘‘(e) LIMITATION.—Funds may not be provided under

19 this section for any activity that has been denied author20 ization by Congress.’’.

21 (b) CLERICAL AMENDMENT.—The table of sections

22 at the beginning of such chapter is amended by inserting

23 after the item relating to section 166a the following new

24 item:

‘‘166b. Combatant commands: funding for combating terrorism readiness initiatives.’’.
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1 Subtitle B—Strategic Forces

2 SEC. 1011. REPEAL OF LIMITATION ON RETIREMENT OR

3 DISMANTLEMENT OF STRATEGIC NUCLEAR

4 DELIVERY SYSTEMS.

5 Section 1302 of the National Defense Authorization

6 Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat.

7 1948) is repealed.

8 SEC. 1012. BOMBER FORCE STRUCTURE.

9 (a) LIMITATION.—None of the funds available to the

10 Department of Defense for fiscal year 2002 may be obli11 gated or expended for retiring or dismantling any of the

12 93 B–1B Lancer bombers in service as of June 1, 2001,

13 or for transferring or reassigning any of those aircraft

14 from the unit or facility to which assigned as of that date,

15 until 30 days after the latest of the following:

16 (1) The date on which the President transmits

17 to Congress the national security strategy report re18 quired in 2001 pursuant to section 108(a)(1) of the

19 National Security Act of 1947 (50 U.S.C.

20 404a(a)(1)).

21 (2) The date on which the Secretary of Defense

22 submits to the Committee on Armed Services of the

23 Senate and the Committee on Armed Services of the

24 House of Representatives the Quadrennial Defense

25 Review (QDR) under section 118 of title 10, United
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1 States Code, that is required to be submitted under

2 that section not later than September 30, 2001.

3 (3) The date on which the Secretary of Defense

4 submits to the committees referred to in paragraph

5 (2) a report that sets forth—

6 (A) the changes in national security con7 siderations from those applicable to the air

8 force bomber studies conducted during 1992,

9 1995, and 1999 that warrant changes in the

10 current configuration of the bomber fleet;

11 (B) the role of manned bomber aircraft ap12 propriate to meet the requirements of the na13 tional security strategy referred to in paragraph

14 (1);

15 (C) the amount and type of bomber force

16 structure in the United States Air Force appro17 priate to meet the requirements of the national

18 security strategy referred to in paragraph (1);

19 (D) the results of a comparative analysis

20 of the cost of basing, maintaining, operating,

21 and upgrading the B–1B Lancer bomber fleet

22 in the active force of the Air Force with the

23 cost of basing, maintaining, operating, and up24 grading the B–1B Lancer bomber fleet in a mix
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1 of active and reserve component forces of the

2 Air Force; and

3 (E) the plans of the Department of De4 fense for assigning new missions to the Na5 tional Guard units that currently fly B–1 air6 craft and for the transition of those units and

7 their facilities from the current B–1 mission to

8 such new missions.

9 (4) The date on which the Secretary of Defense

10 submits to Congress the report on the results of the

11 Revised Nuclear Posture Review conducted under

12 section 1042 of the Floyd D. Spence National De13 fense Authorization Act for Fiscal Year 2001 (as en14 acted into law by Public Law 106–398; 114 Stat.

15 1654A–262), as amended by section 1013 of this

16 Act.

17 (b) GAO STUDY AND REPORT.—The Comptroller

18 General of the United States shall conduct a study on the

19 matters specified in subsection (a)(3). The Comptroller

20 General shall submit to Congress a report containing the

21 results of the study not later than January 31, 2002.

22 (c) AMOUNT AND TYPE OF BOMBER FORCE STRUC23 TURE DEFINED.—In this section, the term ‘‘amount and

24 type of bomber force structure’’ means the required num25 bers of B–2 aircraft, B–52 aircraft, and B–1 aircraft con-
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1 sistent with the requirements of the national security

2 strategy referred to in subsection (a)(1).

3 SEC. 1013. ADDITIONAL ELEMENT FOR REVISED NUCLEAR

4 POSTURE REVIEW.

5 Section 1041(b) of the Floyd D. Spence National De6 fense Authorization Act for Fiscal Year 2001 (as enacted

7 by Public Law 106–398; 114 Stat. 1654A–262) is amend8 ed by adding at the end the following new paragraph:

9 ‘‘(7) The possibility of deactivating or

10 dealerting nuclear warheads or delivery systems im11 mediately, or immediately after a decision to retire

12 any specific warhead, class of warheads, or delivery

13 system or systems.’’.

14 Subtitle C—Reporting

15 Requirements

16 SEC. 1021. INFORMATION AND RECOMMENDATIONS ON

17 CONGRESSIONAL REPORTING REQUIRE18 MENTS APPLICABLE TO THE DEPARTMENT

19 OF DEFENSE.

20 (a) COMPILATION OF REPORTING REQUIREMENTS.—

21 The Secretary of Defense shall compile a list of all provi22 sions of law in effect on the date of the enactment of this

23 Act that require or request the President, with respect to

24 the national defense functions of the Federal Government,

25 or any officer or employee of the Department of Defense,
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•S 1419 PCS

1 to submit a report, notification, or study to Congress or

2 any committee of Congress. The preceding sentence does

3 not apply to a provision of law that requires or requests

4 only one report, notification, or study.

5 (b) SUBMITTAL OF COMPILATION.—(1) The Sec6 retary shall submit the list compiled under subsection (a)

7 to Congress not later than 60 days after the date of the

8 enactment of this Act.

9 (2) In submitting the list, the Secretary shall specify

10 for each provision of law compiled in the list—

11 (A) the date of the enactment of such provision

12 of law and a current citation in law for such provi13 sion of law; and

14 (B) the Secretary’s assessment of the con15 tinuing utility of any report, notification, or study

16 arising under such provision of law, both for the ex17 ecutive branch and for Congress.

18 (3) The Secretary may also include with the list any

19 recommendations that the Secretary considers appropriate

20 for the consolidation of reports, notifications, and studies

21 under the provisions of law described in subsection (a),

22 together with a proposal for legislation to implement such

23 recommendations.
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1 SEC. 1022. REPORT ON COMBATING TERRORISM.

2 (a) REQUIREMENT FOR REPORT.—The Secretary of

3 Defense shall submit to Congress a report on the Depart4 ment of Defense policies, plans, and procedures for com5 bating terrorism.

6 (b) CONTENT.—(1) The Secretary shall identify and

7 explain in the report the Department of Defense structure,

8 strategy, roles, relationships, and responsibilities for com9 bating terrorism.

10 (2) The report shall also include a discussion of the

11 following matters:

12 (A) The policies, plans, and procedures relating

13 to how the Assistant Secretary of Defense for Spe14 cial Operations and Low Intensity Conflict and the

15 Joint Task Force–Civil Support of the Joint Forces

16 Command are to perform, and coordinate the per17 formance of, their functions for combating terrorism

18 with—

19 (i) the various teams in the Department of

20 Defense that have responsibilities to respond to

21 acts or threats of terrorism, including—

22 (I) the weapons of mass destruction

23 civil support teams when operating as the

24 National Guard under the command of the

25 Governor of a State, the Governor of Puer26 to Rico, or the Commanding General of the
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1 District of Columbia National Guard, as

2 the case may be; and

3 (II) the weapons of mass destruction

4 civil support teams when operating as the

5 Army National Guard of the United States

6 or the Air National Guard of the United

7 States under the command of the Presi8 dent;

9 (ii) the Army’s Director of Military Sup10 port;

11 (iii) the various teams in other depart12 ments and agencies of the Federal Government

13 that have responsibilities to respond to acts or

14 threats of terrorism;

15 (iv) the organizations outside the Federal

16 Government, including any private sector enti17 ties, that are to function as first responders to

18 acts or threats of terrorism; and

19 (v) the units and organizations of the re20 serve components of the Armed Forces that

21 have missions relating to combating terrorism.

22 (B) Any preparedness plans to combat ter23 rorism that are developed for installations of the De24 partment of Defense by the commanders of the in25 stallations and the integration of those plans with
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1 the plans of the teams and other organizations de2 scribed in subparagraph (A).

3 (C) The policies, plans, and procedures for

4 using and coordinating the Joint Staff’s integrated

5 vulnerability assessment teams inside the United

6 States and outside the United States.

7 (D) The missions of Fort Leonard Wood and

8 other installations for training units, weapons of

9 mass destruction civil support teams and other

10 teams, and individuals in combating terrorism.

11 (3) The report shall also include the Secretary’s views

12 on the appropriate number and missions of the Depart13 ment of Defense teams referred to in paragraph (2)(A)(i).

14 (c) TIME FOR SUBMITTAL.—The Secretary shall sub15 mit the report under this section not later than 180 days

16 after the date of the enactment of this Act.

17 SEC. 1023. REVISED REQUIREMENT FOR CHAIRMAN OF THE

18 JOINT CHIEFS OF STAFF TO ADVISE SEC19 RETARY OF DEFENSE ON THE ASSIGNMENT

20 OF ROLES AND MISSIONS TO THE ARMED

21 FORCES.

22 (a) ASSESSMENT DURING DEFENSE QUADRENNIAL

23 REVIEW.—Subsection 118(e) of title 10, United States

24 Code, is amended—
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1 (1) by inserting ‘‘(1)’’ after ‘‘(e) CJCS RE2 VIEW.—’’; and

3 (2) by adding at the end the following new

4 paragraph:

5 ‘‘(2) The Chairman shall include in the assessment

6 submitted under paragraph (1), the Chairman’s assess7 ment of the assignment of functions (or roles and mis8 sions) to the armed forces together with any recommenda9 tions for changes in assignment that the Chairman con10 siders necessary to achieve the maximum efficiency of the

11 armed forces. In making the assessment, the Chairman

12 should consider (among other matters) the following:

13 ‘‘(A) Unnecessary duplication of effort among

14 the armed forces.

15 ‘‘(B) Changes in technology that can be applied

16 effectively to warfare.’’.

17 (b) REPEAL OF REQUIREMENT FOR TRIENNIAL RE18 PORT ON ASSIGNMENT OF ROLES AND MISSIONS.—Sec19 tion 153 of such title is amended by striking subsection

20 (b).

21 (c) CONFORMING AMENDMENT.—Subsection (a) of

22 such section 153 is amended by striking ‘‘(a) PLANNING;

23 ADVICE; POLICY FORMULATION.—’’.
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1 SEC. 1024. REVISION OF DEADLINE FOR ANNUAL REPORT

2 ON COMMERCIAL AND INDUSTRIAL ACTIVI3 TIES.

4 Section 2461(g) of title 10, United States Code, is

5 amended by striking ‘‘February 1’’ and inserting ‘‘June

6 30’’.

7 SEC. 1025. PRODUCTION AND ACQUISITION OF VACCINES

8 FOR DEFENSE AGAINST BIOLOGICAL WAR9 FARE AGENTS.

10 (a) GOVERNMENT FACILITY.—(1) Subject to the

11 availability of funds appropriated and authorized to be ap12 propriated for such purposes, the Secretary of Defense

13 may—

14 (A) design, construct, and operate on an instal15 lation of the Department of Defense a facility for

16 the production of vaccines described in subsection

17 (b)(1);

18 (B) qualify and validate the facility for the pro19 duction of vaccines in accordance with the require20 ments of the Food and Drug Administration; and

21 (C) contract with a private sector source for the

22 production of vaccines in that facility.

23 (2) The Secretary shall use competitive procedures

24 under chapter 137 of title 10, United States Code, to enter

25 into contracts to carry out subparagraphs (A) and (C) of

26 paragraph (1).
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1 (b) PLAN.—(1) The Secretary of Defense shall de2 velop a long-range plan to provide for the production and

3 acquisition of vaccines to meet the requirements of the De4 partment of Defense to prevent or mitigate the physio5 logical effects of exposure to biological warfare agents.

6 (2) The plan shall include the following:

7 (A) An evaluation of the need for one or more

8 vaccine production facilities that are specifically

9 dedicated to meeting the requirements of the De10 partment of Defense and other national interests.

11 (B) An evaluation of the alternative options for

12 the means of production of the vaccines, including—

13 (i) use of public facilities, private facilities,

14 or a combination of public and private facilities;

15 and

16 (ii) management and operation of the fa17 cilities by the Federal Government, one or more

18 private persons, or a combination of the Fed19 eral Government and one or more private per20 sons.

21 (C) The means for producing the vaccines that

22 the Secretary determines most appropriate.

23 (3) The Secretary shall ensure that the plan is con24 sistent with the requirement for safe and effective vaccines

25 approved by the Food and Drug Administration.
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1 (4) In preparing the plan, the Secretary shall—

2 (A) consider and, as the Secretary determines

3 appropriate, include the information compiled and

4 the analyses developed in meeting the reporting re5 quirements set forth in sections 217 and 218 of the

6 Floyd D. Spence National Defense Authorization

7 Act for Fiscal Year 2001 (as enacted into law by

8 Public Law 106–398; 114 Stat. 1654A–36 and

9 1654A–37); and

10 (B) consult with the heads of other appropriate

11 departments and agencies of the Federal Govern12 ment.

13 (c) REPORT.—Not later than February 1, 2002, the

14 Secretary of Defense shall submit to the congressional de15 fense committees a report on the plan for the production

16 of vaccines required by subsection (b). The report shall

17 include, at a minimum, the plan and the following matters:

18 (1) A description of the policies and require19 ments of the Department of Defense regarding ac20 quisition and use of the vaccines.

21 (2) The estimated schedule for the acquisition

22 of the vaccines in accordance with the plan.

23 (3) A discussion of the options considered for

24 production of the vaccines under subsection

25 (b)(2)(B).
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1 (4) The Secretary’s recommendations for the

2 most appropriate course of action to meet the re3 quirements described in subsection (b)(1), together

4 with the justification for the recommendations and

5 the long-term cost of implementing the recommenda6 tions.

7 SEC. 1026. EXTENSION OF TIMES FOR COMMISSION ON THE

8 FUTURE OF THE UNITED STATES AEROSPACE

9 INDUSTRY TO REPORT AND TO TERMINATE.

10 (a) SUBMITTAL OF REPORT.—Subsection (d) of sec11 tion 1092 of the Floyd D. Spence National Defense Au12 thorization Act for Fiscal Year 2001 (as enacted into law

13 by Public Law 106–398; 114 Stat. 1654A–302) is amend14 ed by striking ‘‘Not later than March 1, 2002,’’ and in15 serting ‘‘Not later than one year after the date of its first

16 meeting,’’.

17 (b) TERMINATION.—Subsection (g) of such section is

18 amended by striking ‘‘30 days’’ and inserting ‘‘60 days’’.

19 Subtitle D—Armed Forces

20 Retirement Home

21 SEC. 1041. AMENDMENT OF ARMED FORCES RETIREMENT

22 HOME ACT OF 1991.

23 Except as otherwise expressly provided, whenever in

24 this subtitle an amendment or repeal is expressed in terms

25 of an amendment to, or a repeal of, a section or other
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•S 1419 PCS

1 provision, the reference shall be considered to be made to

2 a section or other provision of the Armed Forces Retire3 ment Home Act of 1991 (title XV of Public Law 101–

4 510; 24 U.S.C. 401 et seq.).

5 SEC. 1042. DEFINITIONS.

6 Section 1502 (24 U.S.C. 401) is amended—

7 (1) by striking paragraphs (1), (2), (3), (4),

8 and (5), and inserting the following:

9 ‘‘(1) The term ‘Retirement Home’ includes the

10 institutions established under section 1511, as fol11 lows:

12 ‘‘(A) The Armed Forces Retirement

13 Home—Washington.

14 ‘‘(B) The Armed Forces Retirement

15 Home—Gulfport.

16 ‘‘(2) The term ‘Local Board’ means a Local

17 Board of Trustees established under section 1516.

18 ‘‘(3) The terms ‘Armed Forces Retirement

19 Home Trust Fund’ and ‘Fund’ mean the Armed

20 Forces Retirement Home Trust Fund established

21 under section 1519(a).’’;

22 (2) by redesignating paragraphs (6), (7), and

23 (8) as paragraphs (4), (5), and (6); and

24 (3) in paragraph (5), as so redesignated—
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1 (A) in subparagraph (C), by striking ‘‘,

2 Manpower and Personnel’’ and inserting ‘‘for

3 Personnel’’; and

4 (B) in subparagraph (D), by striking ‘‘with

5 responsibility for personnel matters’’ and insert6 ing ‘‘for Manpower and Reserve Affairs’’.

7 SEC. 1043. REVISION OF AUTHORITY ESTABLISHING THE

8 ARMED FORCES RETIREMENT HOME.

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

10 follows:

11 ‘‘SEC. 1511. ESTABLISHMENT OF THE ARMED FORCES RE12 TIREMENT HOME.

13 ‘‘(a) INDEPENDENT ESTABLISHMENT.—The Armed

14 Forces Retirement Home is an independent establishment

15 in the executive branch.

16 ‘‘(b) PURPOSE.—The purpose of the Retirement

17 Home is to provide, through the Armed Forces Retirement

18 Home—Washington and the Armed Forces Retirement

19 Home—Gulfport, residences and related services for cer20 tain retired and former members of the Armed Forces.

21 ‘‘(c) FACILITIES.—(1) Each facility of the Retire22 ment Home referred to in paragraph (2) is a separate es23 tablishment of the Retirement Home.

24 ‘‘(2) The United States Soldiers’ and Airmen’s Home

25 is hereby redesignated as the Armed Forces Retirement
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1 Home—Washington. The Naval Home is hereby redesig2 nated as the Armed Forces Retirement Home—Gulfport.

3 ‘‘(d) OPERATION.—(1) The Chief Operating Officer

4 of the Armed Forces Retirement Home is the head of the

5 Retirement Home. The Chief Operating Officer is subject

6 to the authority, direction, and control of the Secretary

7 of Defense.

8 ‘‘(2) Each facility of the Retirement Home shall be

9 maintained as a separate establishment of the Retirement

10 Home for administrative purposes and shall be under the

11 authority, direction, and control of the Director of that

12 facility. The Director of each facility of the Retirement

13 Home is subject to the authority, direction, and control

14 of the Chief Operating Officer.

15 ‘‘(e) PROPERTY AND FACILITIES.—(1) The Retire16 ment Home shall include such property and facilities as

17 may be acquired under paragraph (2) or accepted under

18 section 1515(f) for inclusion in the Retirement Home.

19 ‘‘(2) The Secretary of Defense may acquire, for the

20 benefit of the Retirement Home, property and facilities

21 for inclusion in the Retirement Home.

22 ‘‘(3) The Secretary of Defense may dispose of any

23 property of the Retirement Home, by sale, lease, or other24 wise, that the Secretary determines is excess to the needs

25 of the Retirement Home. The proceeds from such a dis-
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1 posal of property shall be deposited in the Armed Forces

2 Retirement Home Trust Fund. No such disposal of real

3 property shall be effective earlier than 120 days after the

4 date on which the Secretary transmits a notification of

5 the proposed disposal to the Committees on Armed Serv6 ices of the Senate and the House of Representatives.

7 ‘‘(f) DEPARTMENT OF DEFENSE SUPPORT.—The

8 Secretary of Defense may make available from the Depart9 ment of Defense to the Retirement Home, on a non10 reimbursable basis, administrative support and office serv11 ices, legal and policy planning assistance, access to inves12 tigative facilities of the Inspector General of the Depart13 ment of Defense and of the military departments, and any

14 other support necessary to enable the Retirement Home

15 to carry out its functions under this title.

16 ‘‘(g) ACCREDITATION.—The Chief Operating Officer

17 shall endeavor to secure for each facility of the Retirement

18 Home accreditation by a nationally recognized civilian ac19 crediting organization, such as the Continuing Care Ac20 creditation Commission and the Joint Commission for Ac21 creditation of Health Organizations.

22 ‘‘(h) ANNUAL REPORT.—The Secretary of Defense

23 shall transmit to Congress an annual report on the finan24 cial and other affairs of the Retirement Home for each

25 fiscal year.’’.
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1 SEC. 1044. CHIEF OPERATING OFFICER.

2 (a) ESTABLISHMENT AND AUTHORITY OF POSI3 TION.—Section 1515 (24 U.S.C. 415) is amended to read

4 as follows:

5 ‘‘SEC. 1515. CHIEF OPERATING OFFICER.

6 ‘‘(a) APPOINTMENT.—(1) The Secretary of Defense

7 shall appoint the Chief Operating Officer of the Retire8 ment Home. The Secretary of Defense may make the ap9 pointment without regard to the provisions of title 5,

10 United States Code, governing appointments in the civil

11 service.

12 ‘‘(2) The Chief Operating Officer shall serve at the

13 pleasure of the Secretary of Defense.

14 ‘‘(3) The Secretary of Defense shall evaluate the per15 formance of the Chief Operating Officer at least once each

16 year.

17 ‘‘(b) QUALIFICATIONS.—To qualify for appointment

18 as the Chief Operating Officer, a person shall—

19 ‘‘(1) be a continuing care retirement community

20 professional;

21 ‘‘(2) have appropriate leadership and manage22 ment skills; and

23 ‘‘(3) have experience and expertise in the oper24 ation and management of retirement homes and in

25 the provision of long-term medical care for older per26 sons.
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•S 1419 PCS

1 ‘‘(c) RESPONSIBILITIES.—(1) The Chief Operating

2 Officer shall be responsible to the Secretary of Defense

3 for the overall direction, operation, and management of

4 the Retirement Home and shall report to the Secretary

5 on those matters.

6 ‘‘(2) The Chief Operating Officer shall supervise the

7 operation and administration of the Armed Forces Retire8 ment Home—Washington and the Armed Forces Retire9 ment Home—Gulfport, including the Local Boards of

10 those facilities.

11 ‘‘(3) The Chief Operating Officer shall perform the

12 following duties:

13 ‘‘(A) Issue, and ensure compliance with, appro14 priate rules for the operation of the Retirement

15 Home.

16 ‘‘(B) Periodically visit, and inspect the oper17 ation of, the facilities of the Retirement Home.

18 ‘‘(C) Periodically examine and audit the ac19 counts of the Retirement Home.

20 ‘‘(D) Establish any advisory body or bodies that

21 the Chief Operating Officer considers to be nec22 essary.

23 ‘‘(d) COMPENSATION.—(1) The Secretary of Defense

24 may prescribe the pay of the Chief Operating Officer with25 out regard to the provisions of title 5, United States Code,
348

•S 1419 PCS

1 governing classification and pay, except that the basic pay,

2 including locality pay, of the Chief Operating Officer may

3 not exceed the limitations established in section 5307 of

4 such title.

5 ‘‘(2) In addition to basic pay and any locality pay

6 prescribed for the Chief Operating Officer, the Secretary

7 may award the Chief Operating Officer, not more than

8 once each year, a bonus based on the performance of the

9 Chief Operating Officer for the year. The Secretary shall

10 prescribe the amount of any such bonus.

11 ‘‘(e) ADMINISTRATIVE STAFF.—(1) The Chief Oper12 ating Officer may, subject to the approval of the Secretary

13 of Defense, appoint a staff to assist in the performance

14 of the Chief Operating Officer’s duties in the overall ad15 ministration of the Retirement Home.

16 ‘‘(2) The Chief Operating Officer shall prescribe the

17 rates of pay applicable to the members of the staff ap18 pointed under paragraph (1), without regard to the provi19 sions of title 5, United States Code, regarding classifica20 tion and pay, except that—

21 ‘‘(A) a staff member who is a member of the

22 Armed Forces on active duty or who is a full-time

23 officer or employee of the United States may not re24 ceive additional pay by reason of service on the ad25 ministrative staff; and
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•S 1419 PCS

1 ‘‘(B) the limitations in section 5373 of title 5,

2 United States Code, relating to pay set by adminis3 trative action, shall apply to the rates of pay pre4 scribed under this paragraph.

5 ‘‘(f) ACCEPTANCE OF GIFTS.—(1) The Chief Oper6 ating Officer may accept gifts of money, property, and fa7 cilities on behalf of the Retirement Home.

8 ‘‘(2) Monies received as gifts, or realized from the

9 disposition of property and facilities received as gifts, shall

10 be deposited in the Armed Forces Retirement Home Trust

11 Fund.’’.

12 (b) TRANSFER OF AUTHORITIES.—(1) The following

13 provisions are amended by striking ‘‘Retirement Home

14 Board’’ each place it appears and inserting ‘‘Chief Oper15 ating Officer’’:

16 (A) Section 1512 (24 U.S.C. 412), relating to

17 eligibility and acceptance for residence in the Armed

18 Forces Retirement Home.

19 (B) Section 1513(a) (24 U.S.C. 412(a)), relat20 ing to services provided to residents of the Armed

21 Forces Retirement Home.

22 (C) Section 1518(c) (24 U.S.C. 418(c)), relat23 ing to inspection of the Armed Forces Retirement

24 Home.
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•S 1419 PCS

1 (2) Section 1519(c) (24 U.S.C. 419(c)), relating to

2 authority to invest funds in the Armed Forces Retirement

3 Home Trust Fund, is amended by striking ‘‘Director’’ and

4 inserting ‘‘Chief Operating Officer’’.

5 (3) Section 1521(a) (24 U.S.C. 421(a)), relating to

6 payment of residents for services, is amended by striking

7 ‘‘Chairman of the Armed Forces Retirement Board’’ and

8 inserting ‘‘Chief Operating Officer’’.

9 (4) Section 1522 (24 U.S.C. 422), relating to author10 ity to accept certain uncompensated services, is

11 amended—

12 (A) in subsection (a)—

13 (i) by striking ‘‘Chairman of the Retire14 ment Home Board or the Director of each es15 tablishment’’ and inserting ‘‘Chief Operating

16 Officer or the Director of a facility’’; and

17 (ii) by striking ‘‘unless’’ and all that fol18 lows through ‘‘Retirement Home Board’’;

19 (B) in subsection (b)(1)—

20 (i) by striking ‘‘Chairman of the Retire21 ment Home Board or the Director of the estab22 lishment’’ and inserting ‘‘Chief Operating Offi23 cer or the Director of a facility’’; and

24 (ii) by inserting ‘‘offering the services’’

25 after ‘‘notify the person’’;
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•S 1419 PCS

1 (C) in subsection (b)(2), by striking ‘‘Chair2 man’’ and inserting ‘‘Chief Operating Officer’’;

3 (D) in subsection (c), by striking ‘‘Chairman of

4 the Retirement Home Board or the Director of an

5 establishment’’ and inserting ‘‘Chief Operating Offi6 cer or the Director of a facility’’; and

7 (E) in subsection (e)—

8 (i) by striking ‘‘Chairman of the Retire9 ment Board or the Director of the establish10 ment’’ in the first sentence and inserting ‘‘Chief

11 Operating Officer or the Director of a facility’’;

12 and

13 (ii) by striking ‘‘Chairman’’ in the second

14 sentence and inserting ‘‘Chief Operating Offi15 cer’’.

16 (5) Section 1523(b) (24 U.S.C. 423(b)), relating to

17 preservation of historic buildings and grounds at the

18 Armed Forces Retirement Home—Washington, is amend19 ed by striking ‘‘Chairman of the Retirement Home Board’’

20 and inserting ‘‘Chief Operating Officer’’.

21 SEC. 1045. RESIDENTS OF RETIREMENT HOME.

22 (a) REPEAL OF REQUIREMENT OF RESIDENT TO RE23 APPLY AFTER SUBSTANTIAL ABSENCE.—Subsection (e)

24 of section 1512 (24 U.S.C. 412) is repealed.
352

•S 1419 PCS

1 (b) FEES PAID BY RESIDENTS.—Section 1514 (24

2 U.S.C. 414) is amended to read as follows:

3 ‘‘SEC. 1514. FEES PAID BY RESIDENTS.

4 ‘‘(a) MONTHLY FEES.—The Director of each facility

5 of the Retirement Home shall collect a monthly fee from

6 each resident of that facility.

7 ‘‘(b) DEPOSIT OF FEES.—The Directors shall deposit

8 fees collected under subsection (a) in the Armed Forces

9 Retirement Home Trust Fund.

10 ‘‘(c) FIXING FEES.—(1) The Chief Operating Offi11 cer, with the approval of the Secretary of Defense, shall

12 from time to time prescribe the fees required by subsection

13 (a). Changes to such fees shall be based on the financial

14 needs of the Retirement Home and the ability of the resi15 dents to pay. A change of a fee may not take effect until

16 120 days after the Secretary of Defense transmits a notifi17 cation of the change to the Committees on Armed Services

18 of the Senate and the House of Representatives.

19 ‘‘(2) The fee shall be fixed as a percentage of the

20 monthly income and monthly payments (including Federal

21 payments) received by a resident. The fee shall be subject

22 to a limitation on maximum monthly amount. The per23 centage shall be the same for each facility of the Retire24 ment Home. The Secretary of Defense may make any ad-
353

•S 1419 PCS

1 justment in a percentage or limitation on maximum

2 amount that the Secretary determines appropriate.

3 ‘‘(d) TRANSITIONAL FEE STRUCTURES.—(1) Until

4 different fees are prescribed and take effect under sub5 section (c), the percentages and limitations on maximum

6 monthly amount that are applicable to fees charged resi7 dents of the Retirement Home are (subject to any adjust8 ment that the Secretary of Defense determines appro9 priate) as follows:

10 ‘‘(A) For months beginning before January 1,

11 2002—

12 ‘‘(i) for a permanent health care resident,

13 65 percent (without limitation on maximum

14 monthly amount); and

15 ‘‘(ii) for a resident who is not a permanent

16 health care resident, 40 percent (without limita17 tion on maximum monthly amount).

18 ‘‘(B) For months beginning after December 31,

19 2001—

20 ‘‘(i) for an independent living resident, 35

21 percent, but not to exceed $1,000 each month;

22 ‘‘(ii) for an assisted living resident, 40 per23 cent, but not to exceed $1,500 each month; and

24 ‘‘(iii) for a long-term care resident, 65 per25 cent, but not to exceed $2,500 each month.
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•S 1419 PCS

1 ‘‘(2) Notwithstanding the limitations on maximum

2 monthly amount prescribed under subsection (c) or set

3 forth in paragraph (1)(B), until an independent living

4 resident or assisted living resident of the Armed Forces

5 Retirement Home—Gulfport occupies a renovated room at

6 that facility, as determined by the Secretary of Defense,

7 the limitation on maximum monthly amount applicable to

8 the resident for months beginning after December 31,

9 2001, shall be—

10 ‘‘(A) in the case of an independent living resi11 dent, $800; and

12 ‘‘(B) in the case of an assisted living resident,

13 $1,300.

14 SEC. 1046. LOCAL BOARDS OF TRUSTEES.

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

16 follows:

17 ‘‘SEC. 1516. LOCAL BOARDS OF TRUSTEES.

18 ‘‘(a) ESTABLISHMENT.—Each facility of the Retire19 ment Home shall have a Local Board of Trustees.

20 ‘‘(b) DUTIES.—The Local Board for a facility shall

21 serve in an advisory capacity to the Director of the facility

22 and to the Chief Operating Officer.

23 ‘‘(c) COMPOSITION.—(1) The Local Board for a facil24 ity shall consist of at least 11 members who (except as

25 otherwise specifically provided) shall be appointed by the
355

•S 1419 PCS

1 Secretary of Defense in consultation with each of the Sec2 retaries of the military departments concerned. At least

3 one member of the Local Board shall have a perspective

4 that is oriented toward the Retirement Home overall. The

5 Local Board for a facility shall consist of the following

6 members:

7 ‘‘(A) One member who is a civilian expert in

8 nursing home or retirement home administration

9 and financing from the geographical area of the fa10 cility.

11 ‘‘(B) One member who is a civilian expert in

12 gerontology from the geographical area of the facil13 ity.

14 ‘‘(C) One member who is a service expert in fi15 nancial management.

16 ‘‘(D) One representative of the Department of

17 Veterans Affairs regional office nearest in proximity

18 to the facility, who shall be designated by the Sec19 retary of Veterans Affairs.

20 ‘‘(E) One representative of the resident advi21 sory committee or council of the facility, who shall

22 be a nonvoting member.

23 ‘‘(F) One enlisted representative of the Serv24 ices’ Retiree Advisory Council.
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•S 1419 PCS

1 ‘‘(G) The senior noncommissioned officer of one

2 of the Armed Forces.

3 ‘‘(H) One senior representative of the military

4 hospital nearest in proximity to the facility.

5 ‘‘(I) One senior judge advocate from one of the

6 Armed Forces.

7 ‘‘(J) The Director of the facility, who shall be

8 a nonvoting member.

9 ‘‘(K) One senior representative of one of the

10 chief personnel officers of the Armed Forces.

11 ‘‘(L) Other members designated by the Sec12 retary of Defense (if the Local Board is to have

13 more than 11 members).

14 ‘‘(2) The Secretary of Defense shall designate one

15 member of a Local Board to serve as the chairman of the

16 Local Board at the pleasure of the Secretary of Defense.

17 ‘‘(d) TERMS.—(1) Except as provided in subsections

18 (e), (f), and (g), the term of office of a member of a Local

19 Board shall be five years.

20 ‘‘(2) Unless earlier terminated by the Secretary of

21 Defense, a person may continue to serve as a member of

22 the Local Board after the expiration of the member’s term

23 until a successor is appointed or designated, as the case

24 may be.
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•S 1419 PCS

1 ‘‘(e) EARLY EXPIRATION OF TERM.—A member of

2 a Local Board who is a member of the Armed Forces or

3 an employee of the United States serves as a member of

4 the Local Board only for as long as the member is as5 signed to or serving in a position for which the duties in6 clude the duty to serve as a member of the Local Board.

7 ‘‘(f) VACANCIES.—(1) A vacancy in the membership

8 of a Local Board shall be filled in the manner in which

9 the original appointment or designation was made, as the

10 case may be.

11 ‘‘(2) A member appointed or designated to fill a va12 cancy occurring before the end of the term of the prede13 cessor of the member shall be appointed or designated,

14 as the case may be, for the remainder of the term for

15 which the predecessor was appointed.

16 ‘‘(3) A vacancy in a Local Board shall not affect its

17 authority to perform its duties.

18 ‘‘(g) EARLY TERMINATION.—The Secretary of De19 fense may terminate the appointment of a member of a

20 Local Board before the expiration of the member’s term

21 for any reason that the Secretary determines appropriate.

22 ‘‘(h) COMPENSATION.—(1) Except as provided in

23 paragraph (2), a member of a Local Board shall—

24 ‘‘(A) be provided a stipend consistent with the

25 daily government consultant fee for each day on
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•S 1419 PCS

1 which the member is engaged in the performance of

2 services for the Local Board; and

3 ‘‘(B) while away from home or regular place of

4 business in the performance of services for the Local

5 Board, be allowed travel expenses (including per

6 diem in lieu of subsistence) in the same manner as

7 a person employed intermittently in Government

8 under sections 5701 through 5707 of title 5, United

9 States Code.

10 ‘‘(2) A member of a Local Board who is a member

11 of the Armed Forces on active duty or a full-time officer

12 or employee of the United States shall receive no addi13 tional pay by reason of serving a member of a Local

14 Board.’’.

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

16 FACILITIES.

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

18 follows:

19 ‘‘SEC. 1517. DIRECTORS, DEPUTY DIRECTORS, AND STAFF

20 OF FACILITIES.

21 ‘‘(a) APPOINTMENT.—The Secretary of Defense shall

22 appoint a Director and a Deputy Director for each facility

23 of the Retirement Home.

24 ‘‘(b) DIRECTOR.—The Director of a facility shall—
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•S 1419 PCS

1 ‘‘(1) be a member of the Armed Forces serving

2 on active duty in a grade above lieutenant colonel or

3 commander;

4 ‘‘(2) have appropriate leadership and manage5 ment skills; and

6 ‘‘(3) be required to pursue a course of study to

7 receive certification as a retirement facilities director

8 by an appropriate civilian certifying organization, if

9 the Director is not so certified at the time of ap10 pointment.

11 ‘‘(c) DUTIES OF DIRECTOR.—(1) The Director of a

12 facility shall be responsible for the day-to-day operation

13 of the facility, including the acceptance of applicants to

14 be residents of that facility.

15 ‘‘(2) The Director of a facility shall keep accurate

16 and complete records of the facility.

17 ‘‘(d) DEPUTY DIRECTOR.—(1) The Deputy Director

18 of a facility shall—

19 ‘‘(A) be a civilian with experience as a con20 tinuing care retirement community professional; and

21 ‘‘(B) have appropriate leadership and manage22 ment skills.

23 ‘‘(2) The Deputy Director of a facility shall—
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•S 1419 PCS

1 ‘‘(A) be appointed without regard to the provi2 sions of title 5, United States Code, governing ap3 pointments in the competitive service; and

4 ‘‘(B) serve at the pleasure of the Secretary of

5 Defense, without regard to the provisions of title 5,

6 United States Code.

7 ‘‘(e) DUTIES OF DEPUTY DIRECTOR.—The Deputy

8 Director of a facility shall, under the authority, direction,

9 and control of the Director of the facility, perform such

10 duties as the Director may assign.

11 ‘‘(f) STAFF.—(1) The Director of a facility may, sub12 ject to the approval of the Chief Operating Officer, ap13 point and prescribe the pay of such principal staff as the

14 Director considers appropriate to assist the Director in op15 erating the facility.

16 ‘‘(2) The principal staff of a facility shall include per17 sons with experience and expertise in the operation and

18 management of retirement homes and in the provision of

19 long-term medical care for older persons.

20 ‘‘(3) The Director of a facility may exercise the au21 thority under paragraph (1) without regard to the provi22 sions of title 5, United States Code, governing appoint23 ments in the competitive service, classification, and pay,

24 except that the limitations in section 5373 of such title
361

•S 1419 PCS

1 (relating to pay set by administrative action) shall apply

2 to the rates of pay prescribed under this paragraph.

3 ‘‘(g) ANNUAL EVALUATION OF DIRECTORS.—(1) The

4 Chief Operating Officer shall evaluate the performance of

5 each of the Directors of the facilities of the Retirement

6 Home each year.

7 ‘‘(2) The Chief Operating Officer shall submit to the

8 Secretary of Defense any recommendations regarding a

9 Director that the Chief Operating Officer determines ap10 propriate taking into consideration the annual evalua11 tion.’’.

12 SEC. 1048. DISPOSITION OF EFFECTS OF DECEASED PER13 SONS AND UNCLAIMED PROPERTY.

14 (a) LEGAL REPRESENTATION FOR RETIREMENT

15 HOME.—Subsection (b)(2)(A) of section 1520 (24 U.S.C.

16 420) is amended by inserting ‘‘who is a full-time officer

17 or employee of the United States or a member of the

18 Armed Forces on active duty’’ after ‘‘may designate an

19 attorney’’.

20 (b) CORRECTION OF REFERENCE.—Subsection

21 (b)(1)(B) of such section is amended by inserting ‘‘Armed

22 Forces’’ before ‘‘Retirement Home Trust Fund’’.

23 SEC. 1049. TRANSITIONAL PROVISIONS.

24 Part B is amended by striking sections 1531, 1532,

25 and 1533 and inserting the following:
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•S 1419 PCS

1 ‘‘SEC. 1531. TEMPORARY CONTINUATION OF ARMED

2 FORCES RETIREMENT HOME BOARD.

3 ‘‘Until the Secretary of Defense appoints the first

4 Chief Operating Officer after the enactment of the Na5 tional Defense Authorization Act for Fiscal Year 2002,

6 the Armed Forces Retirement Home Board, as constituted

7 on the day before the date of the enactment of that Act,

8 shall continue to serve and shall perform the duties of the

9 Chief Operating Officer.

10 ‘‘SEC. 1532. TEMPORARY CONTINUATION OF DIRECTOR OF

11 THE ARMED FORCES RETIREMENT HOME—

12 WASHINGTON.

13 ‘‘The person serving as the Director of the Armed

14 Forces Retirement Home—Washington on the day before

15 the enactment of the National Defense Authorization Act

16 for Fiscal Year 2002 may continue to serve as the Direc17 tor of that facility until April 2, 2002.

18 ‘‘SEC. 1533. TEMPORARY CONTINUATION OF INCUMBENT

19 DEPUTY DIRECTORS.

20 ‘‘A person serving as the Deputy Director of a facility

21 of the Retirement Home on the day before the enactment

22 of the National Defense Authorization Act for Fiscal Year

23 2002 may continue to serve, at the pleasure of the Sec24 retary of Defense, as the Deputy Director until the date

25 on which a Deputy Director is appointed for that facility

26 under section 1517, except that the service in that position
363

•S 1419 PCS

1 may not continue under this section after December 31,

2 2004.’’.

3 SEC. 1050. CONFORMING AND CLERICAL AMENDMENTS

4 AND REPEALS OF OBSOLETE PROVISIONS.

5 (a) CONFORMING AMENDMENTS.—(1) Section

6 1513(b) (24 U.S.C. 413(b)), relating to services provided

7 to residents of the Armed Forces Retirement Home, is

8 amended by striking ‘‘maintained as a separate establish9 ment’’ in the second sentence.

10 (2) The heading for section 1519 (24 U.S.C. 419)

11 is amended to read as follows:

12 ‘‘SEC. 1519. ARMED FORCES RETIREMENT HOME TRUST

13 FUND.’’.

14 (3) Section 1520 (24 U.S.C. 420), relating to disposi15 tion of effects of deceased persons and unclaimed prop16 erty, is amended—

17 (A) in subsection (a), by striking ‘‘each facility

18 that is maintained as a separate establishment’’ and

19 inserting ‘‘a facility’’;

20 (B) in subsection (b)(2)(A), by striking ‘‘main21 tained as a separate establishment’’; and

22 (C) in subsection (e), by striking ‘‘Directors’’

23 and inserting ‘‘Director of the facility’’.

24 (4)(A) Section 1523 (24 U.S.C. 423), relating to

25 preservation of historic buildings and grounds at the
364

•S 1419 PCS

1 Armed Forces Retirement Home—Washington, is amend2 ed by striking ‘‘United States Soldiers’ and Airmen’s

3 Home’’ each place it appears and inserting ‘‘Armed Forces

4 Retirement Home—Washington’’.

5 (B) The heading for such section is amended to read

6 as follows:

7 ‘‘SEC. 1523. PRESERVATION OF HISTORIC BUILDINGS AND

8 GROUNDS AT THE ARMED FORCES RETIRE9 MENT HOME—WASHINGTON.’’.

10 (5) Section 1524 (24 U.S.C. 424), relating to condi11 tional supervisory control of the Retirement Home Board,

12 is repealed.

13 (b) REPEAL OF OBSOLETE PROVISIONS.—The fol14 lowing provisions are repealed:

15 (1) Section 1512(f) (24 U.S.C. 412(f)), relating

16 to the applicability of certain eligibility require17 ments.

18 (2) Section 1519(d) (24 U.S.C. 419(d)), relat19 ing to transitional accounts in the Armed Forces Re20 tirement Home Trust Fund.

21 (3) Part C, relating to effective date and au22 thorization of appropriations.

23 (c) ADDITION OF TABLE OF CONTENTS.—Title XV

24 of the National Defense Authorization Act for Fiscal Year
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•S 1419 PCS

1 1991 (Public Law 101–510; 104 Stat. 1722) is amended

2 by inserting after the heading for such title the following:

‘‘Sec. 1501. Short title.

‘‘Sec. 1502. Definitions.

‘‘PART A—ESTABLISHMENT AND OPERATION OF RETIREMENT HOME

‘‘Sec. 1511. Establishment of the Armed Forces Retirement Home.

‘‘Sec. 1512. Residents of Retirement Home.

‘‘Sec. 1513. Services provided residents.

‘‘Sec. 1514. Fees paid by residents.

‘‘Sec. 1515. Chief Operating Officer.

‘‘Sec. 1516. Local Boards of Trustees.

‘‘Sec. 1517. Directors, Deputy Directors, and staff of facilities.

‘‘Sec. 1518. Inspection of Retirement Home.

‘‘Sec. 1519. Armed Forces Retirement Home Trust Fund.

‘‘Sec. 1520. Disposition of effects of deceased persons; unclaimed property.

‘‘Sec. 1521. Payment of residents for services.

‘‘Sec. 1522. Authority to accept certain uncompensated services.

‘‘Sec. 1523. Preservation of historic buildings and grounds at the Armed

Forces Retirement Home—Washington.

‘‘PART B—TRANSITIONAL PROVISIONS

‘‘Sec. 1531. Temporary Continuation of Armed Forces Retirement Home

Board.

‘‘Sec. 1532. Temporary Continuation of Director of the Armed Forces Retirement Home—Washington.

‘‘Sec. 1533. Temporary Continuation of Incumbent Deputy Directors.’’.

3 SEC. 1051. AMENDMENTS OF OTHER LAWS.

4 (a) EMPLOYEE PERFORMANCE APPRAISALS.—Sec5 tion 4301(2) of title 5, United States Code, is amended—

6 (1) by striking ‘‘or’’ at the end of subparagraph

7 (G);

8 (2) by striking ‘‘and’’ at the end of subpara9 graph (H) and inserting ‘‘or’’; and

10 (3) by inserting at the end the following new

11 subparagraph:
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•S 1419 PCS

1 ‘‘(I) the Chief Operating Officer and the

2 Deputy Directors of the Armed Forces Retire3 ment Home; and’’.

4 (b) EXCLUSION OF CERTAIN OFFICERS FROM CER5 TAIN LIMITATIONS APPLICABLE TO GENERAL AND FLAG

6 OFFICERS ON ACTIVE DUTY.—(1) Section 525 of title 10,

7 United States Code, is amended by adding at the end the

8 following new subsection:

9 ‘‘(e) An officer while serving as a Director of the

10 Armed Forces Retirement Home, if serving in the grade

11 of major general or rear admiral, is in addition to the

12 number that would otherwise be permitted for that offi13 cer’s armed force for that grade under subsection (a).’’.

14 (2)(A) Section 526 of such title is amended by adding

15 at the end the following new subsection:

16 ‘‘(e) EXCLUSION OF DIRECTORS OF ARMED FORCES

17 RETIREMENT HOME.—The limitations of this section do

18 not apply to a general or flag officer while the officer is

19 assigned as the Director of a facility of the Armed Forces

20 Retirement Home.’’.

21 (B) Subsection (d) of such section is amended by in22 serting ‘‘RESERVE COMPONENT’’ after ‘‘EXCLUSION OF

23 CERTAIN’’.

24 (3) Section 688(e)(2) of such title is amended by add25 ing at the end the following new subparagraph:
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•S 1419 PCS

1 ‘‘(D) A general officer or flag officer assigned

2 as the Director of a facility of the Armed Forces Re3 tirement Home for the period of active duty to which

4 ordered.’’.

5 (4) Section 690 of title 10, United States Code, is

6 amended—

7 (A) in subsection (a)—

8 (i) by striking the second sentence and in9 serting the following: ‘‘The following officers

10 are not counted for the purposes of this sub11 section:’’; and

12 (ii) by adding at the end the following:

13 ‘‘(1) A retired officer ordered to active duty for

14 a period of 60 days or less.

15 ‘‘(2) A general or flag officer who is assigned

16 as the Director of a facility of the Armed Forces Re17 tirement Home for the period of active duty to which

18 ordered.’’; and

19 (B) in subsection (b), by adding at the end of

20 paragraph (2) the following new subparagraph:

21 ‘‘(E) A general officer or flag officer assigned

22 as the Director of a facility of the Armed Forces Re23 tirement Home for the period of active duty to which

24 ordered.’’.
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1 Subtitle E—Other Matters

2 SEC. 1061. REQUIREMENT TO CONDUCT CERTAIN PRE3 VIOUSLY AUTHORIZED EDUCATIONAL PRO4 GRAMS FOR CHILDREN AND YOUTH.

5 (a) NATIONAL GUARD CHALLENGE PROGRAM.—Sec6 tion 509(a) of title 32, United States Code, is amended

7 by striking ‘‘The Secretary of Defense may’’ and inserting

8 ‘‘The Secretary of Defense shall’’.

9 (b) STARBASE PROGRAM.—Section 2193b(a) of

10 title 10, United States Code, is amended by striking ‘‘The

11 Secretary of Defense may’’ and inserting ‘‘The Secretary

12 of Defense shall’’.

13 SEC. 1062. AUTHORITY TO ENSURE DEMILITARIZATION OF

14 SIGNIFICANT MILITARY EQUIPMENT FOR15 MERLY OWNED BY THE DEPARTMENT OF DE16 FENSE.

17 (a) PROHIBITION.—It is unlawful for any person to

18 possess significant military equipment formerly owned by

19 the Department of Defense unless—

20 (1) the military equipment has been demili21 tarized in accordance with standards prescribed by

22 the Secretary of Defense;

23 (2) the person is in possession of the military

24 equipment for the purpose of demilitarizing the
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1 equipment pursuant to a Federal Government con2 tract; or

3 (3) the person is specifically authorized by law

4 or regulation to possess the military equipment.

5 (b) REFERRAL TO ATTORNEY GENERAL.—The Sec6 retary of Defense shall notify the Attorney General of any

7 potential violation of subsection (a) of which the Secretary

8 becomes aware.

9 (c) AUTHORITY TO REQUIRE DEMILITARIZATION.—

10 (1) The Attorney General may require any person who,

11 in violation of subsection (a), is in possession of significant

12 military equipment formerly owned by the Department of

13 Defense—

14 (A) to demilitarize the equipment;

15 (B) to have the equipment demilitarized by a

16 third party; or

17 (C) to return the equipment to the Federal

18 Government for demilitarization.

19 (2) When the demilitarization of significant military

20 equipment is carried out pursuant to subparagraph (A)

21 or (B) of paragraph (1), an officer or employee of the

22 United States designated by the Attorney General shall

23 have the right to confirm, by inspection or other means

24 authorized by the Attorney General, that the equipment

25 has been demilitarized.
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1 (3) If significant military equipment is not demili2 tarized or returned to the Federal Government for demili3 tarization as required under paragraph (1) within a rea4 sonable period after the Attorney General notifies the per5 son in possession of the equipment of the requirement to

6 do so, the Attorney General may request that a court of

7 the United States issue a warrant authorizing the seizure

8 of the military equipment in the same manner as is pro9 vided for a search warrant. If the court determines that

10 there is probable cause to believe that the person is in

11 possession of significant military equipment in violation of

12 subsection (a), the court shall issue a warrant authorizing

13 the seizure of such equipment.

14 (d) DEMILITARIZATION OF EQUIPMENT.—(1) The

15 Attorney General shall transfer any military equipment re16 turned to the Federal Government or seized pursuant to

17 subsection (c) to the Department of Defense for demili18 tarization.

19 (2) If the person in possession of significant military

20 equipment obtained the equipment in accordance with any

21 other provision of law, the Secretary of Defense shall bear

22 all costs of transportation and demilitarization of the

23 equipment and shall either—

24 (A) return the equipment to the person upon

25 completion of the demilitarization; or
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1 (B) reimburse the person for the cost incurred

2 by that person to acquire the equipment if the Sec3 retary determines that the cost to demilitarize and

4 return the property to the person would be prohibi5 tive.

6 (e) ESTABLISHMENT OF DEMILITARIZATION STAND7 ARDS.—(1) The Secretary of Defense shall prescribe regu8 lations regarding the demilitarization of military equip9 ment.

10 (2) The regulations shall be designed to ensure

11 that—

12 (A) the equipment, after demilitarization, does

13 not constitute a significant risk to public safety and

14 does not have—

15 (i) a significant capability for use as a

16 weapon; or

17 (ii) a uniquely military capability; and

18 (B) any person from whom private property is

19 taken for public use under this section receives just

20 compensation for the taking of the property.

21 (3) The regulations shall, at a minimum, define—

22 (A) the classes of significant military equipment

23 requiring demilitarization before disposal; and

24 (B) what constitutes demilitarization for each

25 class of significant military equipment.
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1 (f) DEFINITION OF SIGNIFICANT MILITARY EQUIP2 MENT.—In this section, the term ‘‘significant military

3 equipment’’ means equipment that has a capability de4 scribed in clause (i) or (ii) of subsection (e)(2) and—

5 (1) is a defense article listed on the United

6 States Munitions List maintained under section 38

7 of the Arms Export Control Act (22 U.S.C. 2778)

8 that is designated on that list as significant military

9 equipment; or

10 (2) is designated by the Secretary of Defense

11 under the regulations prescribed under subsection

12 (e) as being equipment that it is necessary in the in13 terest of public safety to demilitarize before disposal

14 by the United States.

15 SEC. 1063. CONVEYANCES OF EQUIPMENT AND RELATED

16 MATERIALS LOANED TO STATE AND LOCAL

17 GOVERNMENTS AS ASSISTANCE FOR EMER18 GENCY RESPONSE TO A USE OR THREAT19 ENED USE OF A WEAPON OF MASS DESTRUC20 TION.

21 Section 1412(e) of the Defense Against Weapons of

22 Mass Destruction Act of 1996 (title XIV of Public Law

23 104–201; 110 Stat. 2718; 50 U.S.C. 2312(e)) is amended

24 by adding at the end the following new paragraph:
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1 ‘‘(5) A conveyance of ownership of United

2 States property to a State or local government, with3 out cost and without regard to subsection (f) and

4 title II of the Federal Property and Administrative

5 Services Act of 1949 (or any other provision of law

6 relating to the disposal of property of the United

7 States), if the property is equipment, or equipment

8 and related materials, that is in the possession of

9 the State or local government on the date of the en10 actment of the National Defense Authorization Act

11 for Fiscal Year 2002 pursuant to a loan of the prop12 erty as assistance under this section.’’.

13 SEC. 1064. AUTHORITY TO PAY GRATUITY TO MEMBERS OF

14 THE ARMED FORCES AND CIVILIAN EMPLOY15 EES OF THE UNITED STATES FOR SLAVE

16 LABOR PERFORMED FOR JAPAN DURING

17 WORLD WAR II.

18 (a) PAYMENT OF GRATUITY AUTHORIZED.—The

19 Secretary of Veterans Affairs may pay a gratuity to a cov20 ered veteran or civilian internee, or to the surviving spouse

21 of a covered veteran or civilian internee, in the amount

22 of $20,000.

23 (b) COVERED VETERAN OR CIVILIAN INTERNEE DE24 FINED.—In this section, the term ‘‘covered veteran or ci25 vilian internee’’ means any individual who—
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1 (1) was a member of the Armed Forces, a civil2 ian employee of the United States, or an employee

3 of a contractor of the United States during World

4 War II;

5 (2) served in or with United States combat

6 forces during World War II;

7 (3) was captured and held as a prisoner of war

8 or prisoner by Japan in the course of such service;

9 and

10 (4) was required by the Imperial Government of

11 Japan, or one or more Japanese corporations, to

12 perform slave labor during World War II.

13 (c) RELATIONSHIP TO OTHER PAYMENTS.—Any

14 amount paid a person under this section for activity de15 scribed in subsection (b) is in addition to any other

16 amount paid such person for such activity under any other

17 provision of law.

18 SEC. 1065. RETENTION OF TRAVEL PROMOTIONAL ITEMS.

19 (a) IN GENERAL.—To the extent provided in sub20 section (b), a Federal employee, member of the foreign

21 service, member of a uniformed service, any family mem22 ber or dependent of such an employee or member, or other

23 individual traveling at Government expense who receives

24 a promotional item (including frequent flyer miles, up25 grades, or access to carrier clubs or facilities) as a result
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1 of using travel or transportation services procured by the

2 United States or accepted under section 1353 of title 31,

3 United States Code, may retain the promotional item for

4 personal use if the promotional item is obtained under the

5 same terms as those offered to the general public and at

6 no additional cost to the Government.

7 (b) APPLICABILITY TO EXECUTIVE BRANCH ONLY.—

8 Subsection (a)—

9 (1) applies only to travel that is at the expense

10 of the executive branch; and

11 (2) does not apply to travel by any officer, em12 ployee, or other official of the Government outside

13 the executive branch.

14 (c) CONFORMING AMENDMENT.—Section 6008 of the

15 Federal Acquisition Streamlining Act of 1994 (Public Law

16 103–355; 5 U.S.C. 5702 note) is amended by adding at

17 the end the following new subsection:

18 ‘‘(d) INAPPLICABILITY TO EXECUTIVE BRANCH.—

19 The guidelines issued under subsection (a) and the re20 quirement under subsection (b) shall not apply to any

21 agency of the executive branch or to any Federal employee

22 or other personnel in the executive branch.’’.

23 (d) APPLICABILITY.—This section shall apply with

24 respect to promotional items received before, on, or after

25 the date of enactment of this Act.
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1 TITLE XI—DEPARTMENT OF DE2 FENSE CIVILIAN PERSONNEL

3 POLICY

4 Subtitle A—Intelligence Personnel

5 SEC. 1101. AUTHORITY TO INCREASE MAXIMUM NUMBER

6 OF POSITIONS IN THE DEFENSE INTEL7 LIGENCE SENIOR EXECUTIVE SERVICE.

8 Section 1606(a) of title 10, United States Code, is

9 amended by striking ‘‘517.’’ and inserting the following:

10 ‘‘517, except that the Secretary may increase such max11 imum number by one position for each Senior Intelligence

12 Service position in the Central Intelligence Agency that

13 is permanently eliminated by the Director of Central Intel14 ligence after the date of the enactment of the National

15 Defense Authorization Act for Fiscal Year 2002. In no

16 event may the number of positions in the Defense Intel17 ligence Senior Executive Service exceed 544.’’.

18 SEC. 1102. CONTINUED APPLICABILITY OF CERTAIN CIVIL

19 SERVICE PROTECTIONS FOR EMPLOYEES IN20 TEGRATED INTO THE NATIONAL IMAGERY

21 AND MAPPING AGENCY FROM THE DEFENSE

22 MAPPING AGENCY.

23 Section 1612(b) of title 10, United States Code, is

24 amended by adding at the end the following new para25 graph:
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1 ‘‘(4)(A) If not otherwise applicable to an employee

2 described in subparagraph (B), subchapters II and IV of

3 chapter 75 of title 5 shall continue to apply to the em4 ployee for as long as the employee serves on and after Oc5 tober 1, 1996, without a break in service, as an employee

6 of the Department of Defense in any position, or succes7 sively in two or more positions, in the National Imagery

8 and Mapping Agency.

9 ‘‘(B) This paragraph applies to a person who—

10 ‘‘(i) on September 30, 1996, was employed as

11 an employee of the Department of Defense in a posi12 tion in the Defense Mapping Agency to whom sub13 chapters II and IV of title 5 applied; and

14 ‘‘(ii) on October 1, 1996, became an employee

15 of the National Imagery and Mapping Agency under

16 paragraph 1601(a) of this title.’’.

17 Subtitle B—Matters Relating to

18 Retirement

19 SEC. 1111. FEDERAL EMPLOYMENT RETIREMENT CREDIT

20 FOR NONAPPROPRIATED FUND INSTRUMEN21 TALITY SERVICE.

22 (a) CIVIL SERVICE RETIREMENT SYSTEM.—(1) Sec23 tion 8332(b) of title 5, United States Code, is amended—

24 (A) by striking ‘‘and’’ at the end of paragraph

25 (15);
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1 (B) by striking the period at the end of para2 graph (16) and inserting ‘‘; and’’;

3 (C) by inserting after paragraph (16) the fol4 lowing new paragraph:

5 ‘‘(17) service performed by any individual as an

6 employee of a nonappropriated fund instrumentality

7 of the Department of Defense or the Coast Guard

8 described in section 2105(c) of this title that is not

9 covered by paragraph (16), if the individual elects

10 (in accordance with regulations prescribed by the Of11 fice) at the time of separation from service to have

12 such service credited under this paragraph.’’;

13 (D) in the last sentence, by inserting ‘‘or (17)’’

14 after ‘‘service of the type described in paragraph

15 (16)’’; and

16 (E) by inserting after the last sentence the fol17 lowing: ‘‘Service credited under paragraph (17) may

18 not also be credited under any other retirement sys19 tem provided for employees of a nonappropriated

20 fund instrumentality.’’.

21 (2) Section 8334 of such title is amended by adding

22 at the end the following new subsection:

23 ‘‘(o) Notwithstanding subsection (c), no deposit may

24 be made with respect to service credited under section

25 8332(b)(17) of this title.’’.
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1 (3) Section 8339 of such title is amended by adding

2 at the end the following new subsection:

3 ‘‘(u) The annuity of an employee retiring under this

4 subchapter with service credited under section

5 8332(b)(17) of this title shall be reduced to the maximum

6 amount necessary to ensure that the present value of the

7 annuity payable to the employee is actuarially equivalent

8 to the present value of the annuity that would be payable

9 to the employee under this subchapter if it were computed

10 on the basis of service that does not include service cred11 ited under section 8332(b)(17) of this title. The amount

12 of the reduction shall be computed under regulations pre13 scribed by the Office of Personnel Management for the

14 administration of this subsection.’’.

15 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—

16 (1) Section 8411 of such title is amended—

17 (A) in subsection (b)—

18 (i) by striking ‘‘and’’ at the end of para19 graph (4);

20 (ii) by striking the period at the end of

21 paragraph (5) and inserting ‘‘; and’’; and

22 (iii) by inserting after paragraph (5) the

23 following new paragraph:

24 ‘‘(6) service performed by any individual as an

25 employee of a nonappropriated fund instrumentality
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1 of the Department of Defense or the Coast Guard

2 described in section 2105(c) of this title, if the indi3 vidual elects (in accordance with regulations pre4 scribed by the Office) at the time of separation from

5 service to have such service credited under this para6 graph.’’; and

7 (B) by adding at the end the following new sub8 section:

9 ‘‘(k)(1) The Office of Personnel Management shall

10 accept, for the purposes if this chapter, the certification

11 of the head of a nonappropriated fund instrumentality of

12 the United States concerning service of the type described

13 in subsection (b)(6) that was performed for such non14 appropriated fund instrumentality.

15 ‘‘(2) Service credited under subsection (b)(6) may not

16 also be credited under any other retirement system pro17 vided for employees of a nonappropriated fund instrumen18 tality.’’.

19 (2)(A) Section 8422 of such title is amended by add20 ing at the end the following new subsection:

21 ‘‘(g) No deposit may be made with respect to service

22 credited under section 8411(b)(6) of this title.’’.

23 (B) The heading for such section is amended to read

24 as follows:
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1 ‘‘§ 8422. Deductions from pay; contributions for other

2 service’’.

3 (C) The item relating to such section in the table of

4 contents at the beginning of chapter 84 of title 5, United

5 States Code, is amended to read as follows:

‘‘8422. Deductions from pay; contributions for other service.’’.

6 (3) Section 8415 of such title is amended by adding

7 at the end the following new subsection:

8 ‘‘(j) The annuity of an employee retiring under this

9 chapter with service credited under section 8411(b)(6) of

10 this title shall be reduced to the maximum amount nec11 essary to ensure that the present value of the annuity pay12 able to the employee under this subchapter is actuarially

13 equivalent to the present value of the annuity that would

14 be payable to the employee under this subchapter if it were

15 computed on the basis of service that does not include

16 service credited under section 8411(b)(6) of this title. The

17 amount of the reduction shall be computed under regula18 tions prescribed by the Office of Personnel Management

19 for the administration of this subsection.’’.

20 (c) APPLICABILITY.—The amendments made by this

21 section shall apply only to separations from service as an

22 employee of the United States on or after the date of the

23 enactment of this Act.
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1 SEC. 1112. IMPROVED PORTABILITY OF RETIREMENT COV2 ERAGE FOR EMPLOYEES MOVING BETWEEN

3 CIVIL SERVICE EMPLOYMENT AND EMPLOY4 MENT BY NONAPPROPRIATED FUND INSTRU5 MENTALITIES.

6 (a) CIVIL SERVICE RETIREMENT SYSTEM.—Section

7 8347(q) of title 5, United States Code, is amended—

8 (1) in paragraph (1)—

9 (A) by inserting ‘‘and’’ at the end of sub10 paragraph (A);

11 (B) by striking subparagraph (B); and

12 (C) by redesignating subparagraph (C) as

13 subparagraph (B); and

14 (2) in paragraph (2)(B)—

15 (A) by striking ‘‘vested’’; and

16 (B) by striking ‘‘, as the term’’ and all

17 that follows through ‘‘such system’’.

18 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—

19 Section 8461(n) of such title is amended—

20 (1) in paragraph (1)—

21 (A) by inserting ‘‘and’’ at the end of sub22 paragraph (A);

23 (B) by striking subparagraph (B); and

24 (C) by redesignating subparagraph (C) as

25 subparagraph (B); and

26 (2) in paragraph (2)(B)—
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1 (A) by striking ‘‘vested’’; and

2 (B) by striking ‘‘, as the term’’ and all

3 that follows through ‘‘such system’’.

4 SEC. 1113. REPEAL OF FISCAL YEAR 2003 LIMITATION ON

5 EXERCISE OF VOLUNTARY SEPARATION IN6 CENTIVE PAY AUTHORITY AND VOLUNTARY

7 EARLY RETIREMENT AUTHORITY.

8 Section 1153(b)(2) of the Floyd D. Spence National

9 Defense Authorization Act for Fiscal Year 2001 (as en10 acted into law by Public Law 106–398; 114 Stat. 1654A–

11 323) is amended by striking ‘‘during fiscal years 2002 and

12 2003’’ and inserting ‘‘during fiscal year 2002’’.

13 Subtitle C—Other Matters

14 SEC. 1121. HOUSING ALLOWANCE FOR THE CHAPLAIN FOR

15 THE CORPS OF CADETS AT THE UNITED

16 STATES MILITARY ACADEMY.

17 Section 4337 of title 10, United States Code, is

18 amended by striking the second sentence and inserting the

19 following: ‘‘The chaplain is entitled to a housing allowance

20 equal to the basic allowance for housing that is applicable

21 for an officer in pay grade O–5 at the Academy under

22 section 403 of title 37, and to fuel and light for quarters

23 in kind.’’.
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1 SEC. 1122. STUDY OF ADEQUACY OF COMPENSATION PRO2 VIDED FOR TEACHERS IN THE DEPARTMENT

3 OF DEFENSE OVERSEAS DEPENDENTS’

4 SCHOOLS.

5 (a) REQUIREMENT FOR STUDY.—The Comptroller

6 General shall carry out a study of the adequacy of the

7 pay and other elements of the compensation provided for

8 teachers in the defense dependents’ education system es9 tablished under the Defense Dependents’ Education Act

10 of 1978 (20 U.S.C. 921 et seq.).

11 (b) SPECIFIC CONSIDERATIONS.—In carrying out the

12 study, the Comptroller General shall consider the following

13 issues:

14 (1) Whether the compensation is adequate for

15 recruiting and retaining high quality teachers.

16 (2) Whether any revision of the Defense De17 partment Overseas Teachers Pay and Personnel

18 Practices Act (20 U.S.C. 901 et seq) or the regula19 tions under that Act is advisable to address any

20 problems identified with respect to the recruitment

21 and retention of high quality teachers or for other

22 purposes.

23 (c) REPORT.—The Comptroller General shall submit

24 a report on the results of the study to Congress not later

25 than March 1, 2002. The report shall include the fol26 lowing:
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1 (1) The Comptroller General’s conclusions on

2 the issues considered.

3 (2) Any recommendations for actions that the

4 Comptroller General considers appropriate.

5 SEC. 1123. PILOT PROGRAM FOR PAYMENT OF RETRAINING

6 EXPENSES INCURRED BY EMPLOYERS OF

7 PERSONS INVOLUNTARILY SEPARATED FROM

8 EMPLOYMENT BY THE DEPARTMENT OF DE9 FENSE.

10 (a) AUTHORITY.—The Secretary of Defense may

11 carry out a pilot program in accordance with this section

12 to facilitate the reemployment of employees of the Depart13 ment of Defense who are being separated as described in

14 subsection (b) by providing employers outside the Federal

15 Government with retraining incentive payments to encour16 age those employers to hire, train, and retain such employ17 ees.

18 (b) COVERED EMPLOYEES.—A retraining incentive

19 payment may be made under subsection (c) with respect

20 to a person who—

21 (1) has been involuntarily separated from em22 ployment by the United States due to—

23 (A) a reduction in force (within the mean24 ing of chapter 35 of title 5, United States

25 Code); or
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1 (B) a relocation resulting from a transfer

2 of function (within the meaning of section 3503

3 of title 5, United States Code), realignment, or

4 change of duty station; and

5 (2) when separated—

6 (A) was employed without time limitation

7 in a position in the Department of Defense;

8 (B) had been employed in such position or

9 any combination of positions in the Department

10 of Defense for a continuous period of at least

11 one year;

12 (C) was not a reemployed annuitant under

13 subchapter III of chapter 83 of title 5, United

14 States Code, chapter 84 of such title, or an15 other retirement system for employees of the

16 Federal Government;

17 (D) was not eligible for an immediate an18 nuity under subchapter III of chapter 83 of

19 title 5, United States Code, or subchapter II of

20 chapter 84 of such title; and

21 (E) was not eligible for disability retire22 ment under any of the retirement systems re23 ferred to in subparagraph (C).

24 (c) RETRAINING INCENTIVE.—(1) Under the pilot

25 program, the Secretary may pay a retraining incentive to
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1 any person outside the Federal Government that, pursu2 ant to an agreement entered into under subsection (d),

3 employs a former employee of the United States referred

4 to in subsection (b).

5 (2) For employment of a former employee that is con6 tinuous for one year, the amount of any retraining incen7 tive paid to the employer under paragraph (1) shall be

8 the lesser of—

9 (A) the amount equal to the total cost incurred

10 by the employer for any necessary training provided

11 to the former employee in connection with the em12 ployment by that employer, as determined by the

13 Secretary taking into consideration a certification by

14 the employer under subsection (d); or

15 (B) $10,000.

16 (3) For employment of a former employee that termi17 nates within one year after the employment begins, the

18 amount of any retraining incentive paid to the employer

19 under paragraph (1) shall be equal to the amount that

20 bears the same ratio to the amount computed under para21 graph (2) as the period of continuous employment of the

22 employee by that employer bears to one year.

23 (4) The cost of the training of a former employee of

24 the United States for which a retraining incentive is paid

25 to an employer under this subsection may include any cost
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1 incurred by the employer for training that commenced for

2 the former employee after the former employee, while still

3 employed by the Department of Defense, received a notice

4 of the separation from employment by the United States.

5 (5) Not more than one retraining incentive may be

6 paid with respect to a former employee under this sub7 section.

8 (d) EMPLOYER AGREEMENT.—Under the pilot pro9 gram, the Secretary shall enter into an agreement with

10 an employer outside the Federal Government that provides

11 for the employer—

12 (1) to employ a person described in subsection

13 (b) for at least one year for a salary or rate of pay

14 that is mutually agreeable to the employer and such

15 person; and

16 (2) to certify to the Secretary the cost incurred

17 by the employer for any necessary training provided

18 to such person in connection with the employment of

19 the person by that employer.

20 (e) NECESSARY TRAINING.—For the purposes of this

21 section, the necessity of training provided a former em22 ployee of the Department of Defense shall be determined

23 under regulations prescribed by the Secretary of Defense

24 for the administration of this section.
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1 (f) TERMINATION OF PILOT PROGRAM.—No retrain2 ing incentive may be paid under this section for training

3 commenced after September 30, 2005.

4 TITLE XII—MATTERS RELATING

5 TO OTHER NATIONS

6 Subtitle A—Cooperative Threat Re7 duction With States of the

8 Former Soviet Union

9 SEC. 1201. SPECIFICATION OF COOPERATIVE THREAT RE10 DUCTION PROGRAMS AND FUNDS.

11 (a) SPECIFICATION OF CTR PROGRAMS.—For pur12 poses of section 301 and other provisions of this Act, Co13 operative Threat Reduction programs are the programs

14 specified in section 1501(b) of the National Defense Au15 thorization Act for Fiscal Year 1997 (Public Law 104–

16 201; 110 Stat. 2731; 50 U.S.C. 2362 note).

17 (b) FISCAL YEAR 2002 COOPERATIVE THREAT RE18 DUCTION FUNDS DEFINED.—As used in this title, the

19 term ‘‘fiscal year 2002 Cooperative Threat Reduction

20 funds’’ means the funds appropriated pursuant to the au21 thorization of appropriations in section 301 for Coopera22 tive Threat Reduction programs.

23 (c) AVAILABILITY OF FUNDS.—Funds appropriated

24 pursuant to the authorization of appropriations in section
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1 301 for Cooperative Threat Reduction programs shall be

2 available for obligation for three fiscal years.

3 SEC. 1202. FUNDING ALLOCATIONS.

4 (a) FUNDING FOR SPECIFIC PURPOSES.—Of the

5 $403,000,000 authorized to be appropriated to the De6 partment of Defense for fiscal year 2002 in section

7 301(23) for Cooperative Threat Reduction programs, not

8 more than the following amounts may be obligated for the

9 purposes specified:

10 (1) For strategic offensive arms elimination in

11 Russia, $133,405,000.

12 (2) For strategic nuclear arms elimination in

13 Ukraine, $51,500,000.

14 (3) For weapons of mass destruction infrastruc15 ture elimination in Ukraine, $6,024,000.

16 (4) For weapons of mass destruction infrastruc17 ture elimination in Kazakhstan, $6,000,000.

18 (5) For weapons transportation security in Rus19 sia, $9,500,000.

20 (6) For weapons storage security in Russia,

21 $56,000,000.

22 (7) For implementation of a cooperative pro23 gram with the Government of Russia to eliminate

24 the production of weapons grade plutonium at Rus25 sian reactors, $41,700,000.
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1 (8) For biological weapons proliferation preven2 tion activities in the former Soviet Union,

3 $17,000,000.

4 (9) For chemical weapons destruction in Rus5 sia, $50,000,000.

6 (10) For activities designated as Other Assess7 ments/Administrative Support, $13,221,000.

8 (11) For defense and military contacts,

9 $18,650,000.

10 (b) REPORT ON OBLIGATION OR EXPENDITURE OF

11 FUNDS FOR OTHER PURPOSES.—No fiscal year 2002 Co12 operative Threat Reduction funds may be obligated or ex13 pended for a purpose other than a purpose listed in para14 graphs (1) through (11) of subsection (a) until 30 days

15 after the date that the Secretary of Defense submits to

16 Congress a report on the purpose for which the funds will

17 be obligated or expended and the amount of funds to be

18 obligated or expended. Nothing in the preceding sentence

19 shall be construed as authorizing the obligation or expend20 iture of fiscal year 2002 Cooperative Threat Reduction

21 funds for a purpose for which the obligation or expendi22 ture of such funds is specifically prohibited under this title

23 or any other provision of law.

24 (c) LIMITED AUTHORITY TO VARY INDIVIDUAL

25 AMOUNTS.—(1) Subject to paragraphs (2) and (3), in any
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1 case in which the Secretary of Defense determines that

2 it is necessary to do so in the national interest, the Sec3 retary may obligate amounts appropriated for fiscal year

4 2002 for a purpose listed in any of the paragraphs in sub5 section (a) in excess of the amount specifically authorized

6 for such purpose.

7 (2) An obligation of funds for a purpose stated in

8 any of the paragraphs in subsection (a) in excess of the

9 specific amount authorized for such purpose may be made

10 using the authority provided in paragraph (1) only after—

11 (A) the Secretary submits to Congress notifica12 tion of the intent to do so together with a complete

13 discussion of the justification for doing so; and

14 (B) 15 days have elapsed following the date of

15 the notification.

16 (3) The Secretary may not, under the authority pro17 vided in paragraph (1), obligate amounts for the purposes

18 stated in any of the paragraphs of subsection (a) in excess

19 of 115 percent of the amount specifically authorized for

20 such purposes.

21 SEC. 1203. CHEMICAL WEAPONS DESTRUCTION.

22 Section 1305 of the National Defense Authorization

23 Act for Fiscal Year 2000 (Public Law 106–65; 113 Stat.

24 794; 22 U.S.C. 5952 note) is amended by inserting before

25 the period at the end the following: ‘‘until the Secretary
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1 of Defense submits to Congress a certification that there

2 has been—

3 ‘‘(1) full and accurate disclosure by Russia of

4 the size of its existing chemical weapons stockpile;

5 ‘‘(2) a demonstrated annual commitment by

6 Russia to allocate at least $25,000,000 to chemical

7 weapons elimination;

8 ‘‘(3) development by Russia of a practical plan

9 for destroying its stockpile of nerve agents;

10 ‘‘(4) enactment of a law by Russia that pro11 vides for the elimination of all nerve agents at a sin12 gle site;

13 ‘‘(5) an agreement by Russia to destroy its

14 chemical weapons production facilities at Volgograd

15 and Novocheboksark; and

16 ‘‘(6) a demonstrated commitment from the

17 international community to fund and build infra18 structure needed to support and operate the facil19 ity’’.

20 SEC. 1204. MANAGEMENT OF COOPERATIVE THREAT RE21 DUCTION PROGRAMS AND FUNDS.

22 (a) AUTHORITY OVER MANAGEMENT.—The Sec23 retary of Defense shall have authority, direction, and con24 trol over the management of Cooperative Threat Reduc25 tion programs and the funds for such programs.
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1 (b) EXECUTIVE AGENT.—The Defense Threat Re2 duction Agency shall be the executive agent of the Depart3 ment of Defense for the functions of the Department re4 lating to Cooperative Threat Reduction programs.

5 (c) SPECIFICATION OF FUNDS IN DEPARTMENT OF

6 DEFENSE BUDGET.—The budget justification materials

7 submitted to Congress in support of the budget of the De8 partment of Defense for each fiscal year (as submitted

9 with the budget of the President under section 1105(a)

10 of title 31, United States Code) shall include amounts, if

11 any, requested for such fiscal year for Cooperative Threat

12 Reduction programs.

13 SEC. 1205. ADDITIONAL MATTER IN ANNUAL REPORT ON

14 ACTIVITIES AND ASSISTANCE UNDER COOP15 ERATIVE THREAT REDUCTION PROGRAMS.

16 Section 1308(c) of the Floyd D. Spence National De17 fense Authorization Act for Fiscal Year 2001 (at enacted

18 by Public Law 106–398; 114 Stat. 1654A–341) is amend19 ed by adding at the end of the following new paragraph:

20 ‘‘(6) A description of the amount of the finan21 cial commitment from the international community,

22 and from Russia, for the chemical weapons destruc23 tion facility located at Shchuch’ye, Russia, for the

24 fiscal year beginning in the year in which the report

25 is submitted.’’.
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1 Subtitle B—Other Matters

2 SEC. 1211. SUPPORT OF UNITED NATIONS-SPONSORED EF3 FORTS TO INSPECT AND MONITOR IRAQI

4 WEAPONS ACTIVITIES.

5 (a) LIMITATION ON AMOUNT OF ASSISTANCE IN FIS6 CAL YEAR 2002—The total amount of the assistance for

7 fiscal year 2002 that is provided by the Secretary of De8 fense under section 1505 of the Weapons of Mass Destruc9 tion Control Act of 1992 (22 U.S.C. 5859a) as activities

10 of the Department of Defense in support of activities

11 under that Act may not exceed $15,000,000.

12 (b) EXTENSION OF AUTHORITY TO PROVIDE ASSIST13 ANCE.—Subsection (f) of section 1505 of the Weapons of

14 Mass Destruction Control Act of 1992 (22 U.S.C. 5859a)

15 is amended by striking ‘‘2001’’ and inserting ‘‘2002’’.

16 SEC. 1212. COOPERATIVE RESEARCH AND DEVELOPMENT

17 PROJECTS WITH NATO AND OTHER COUN18 TRIES.

19 (a) ELIGIBILITY OF FRIENDLY FOREIGN COUN20 TRIES.—Section 2350a of title 10, United States Code,

21 is amended—

22 (1) in subsection (a)—

23 (A) by inserting ‘‘(1)’’ after ‘‘(a) AUTHOR24 ITY TO ENGAGE IN COOPERATIVE R&D

25 PROJECTS.—’’;
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1 (B) by striking ‘‘major allies of the United

2 States or NATO organizations’’ and inserting

3 ‘‘countries or organizations referred to in para4 graph (2)’’; and

5 (C) by adding at the end the following new

6 paragraph:

7 ‘‘(2) The countries and organizations with which the

8 Secretary may enter into a memorandum of agreement (or

9 other formal agreement) under paragraph (1) are as fol10 lows:

11 ‘‘(A) The North Atlantic Treaty Organization.

12 ‘‘(B) A NATO organization.

13 ‘‘(C) A member nation of the North Atlantic

14 Treaty Organization.

15 ‘‘(D) A major non-NATO ally.

16 ‘‘(E) Any other friendly foreign country.’’;

17 (2) in subsection (b), by striking ‘‘its major

18 non-NATO allies’’ and inserting ‘‘a country or orga19 nization referred to in subsection (a)(2)’’;

20 (3) in subsection (d)—

21 (A) in paragraph (1), by striking ‘‘the

22 major allies of the United States’’ and inserting

23 ‘‘countries and organizations referred to in sub24 section (a)(2)’’; and

25 (B) in paragraph (2)—
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1 (i) by striking ‘‘major ally of the

2 United States’’ and inserting ‘‘country or

3 organization referred to in subsection

4 (a)(2)’’; and

5 (ii) by striking ‘‘ally’s’’ and inserting

6 ‘‘country’s or organization’s’’;

7 (4) in subsection (e)(2)—

8 (A) in subparagraph (A), by striking ‘‘one

9 or more of the major allies of the United

10 States’’ and inserting ‘‘any country or organiza11 tion referred to in subsection (a)(2)’’;

12 (B) in subparagraph (B), by striking

13 ‘‘major allies of the United States or NATO or14 ganizations’’ and inserting ‘‘countries and orga15 nizations referred to in subsection (a)(2)’’;

16 (C) in subparagraph (C), by striking

17 ‘‘major allies of the United States’’ and insert18 ing ‘‘countries and organizations referred to in

19 subsection (a)(2)’’; and

20 (D) in subparagraph (D), by striking

21 ‘‘major allies of the United States’’ and insert22 ing ‘‘countries and organizations referred to in

23 subsection (a)(2)’’;

24 (5) paragraphs (1)(A) and (4)(A) of subsection

25 (g), by striking ‘‘major allies of the United States
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1 and other friendly foreign countries’’ and inserting

2 ‘‘countries referred to in subsection (a)(2)’’; and

3 (6) in subsection (i)—

4 (A) in paragraph (1), by striking ‘‘major

5 allies of the United States or NATO organiza6 tions’’ and inserting ‘‘countries and organiza7 tions referred to in subsection (a)(2)’’;

8 (B) by striking paragraph (2); and

9 (C) by redesignating paragraph (4) as

10 paragraph (2), and by transferring that para11 graph, as so redesignated, within that sub12 section and inserting the paragraph after para13 graph (1).

14 (b) DELEGATION OF AUTHORITY TO DETERMINE

15 ELIGIBILITY OF PROJECTS.—Subsection (b)(2) of such

16 section is amended by striking ‘‘or the Under Secretary

17 of Defense for Acquisition and Technology’’ and inserting

18 ‘‘and to one other official of the Department of Defense’’.

19 (c) REVISION OF REQUIREMENT FOR ANNUAL RE20 PORT ON ELIGIBLE COUNTRIES.—Subsection (f)(2) of

21 such section is amended to read as follows:

22 ‘‘(2) Not later than January 1 of each year, the Sec23 retary of Defense shall submit to the Committees on

24 Armed Services and on Foreign Relations of the Senate

25 and to the Committees on Armed Services and on Inter-
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1 national Relations of the House of Representatives a re2 port specifying—

3 ‘‘(A) the countries that are eligible to partici4 pate in a cooperative project agreement under this

5 section; and

6 ‘‘(B) the criteria used to determine the eligi7 bility of such countries.’’.

8 (d) CONFORMING AMENDMENTS.—(1) The heading

9 of such section is amended to read as follows:

10 ‘‘§ 2350a. Cooperative research and development

11 agreements: NATO and foreign coun12 tries’’.

13 (2) The item relating to such section in the table of

14 sections at the beginning of subchapter II of chapter 138

15 of title 10, United States Code, is amended to read as

16 follows:

‘‘2350a. Cooperative research and development agreements: NATO and foreign

countries.’’.

17 SEC. 1213. INTERNATIONAL COOPERATIVE AGREEMENTS

18 ON USE OF RANGES AND OTHER FACILITIES

19 FOR TESTING OF DEFENSE EQUIPMENT.

20 (a) AUTHORITY.—Chapter 138 of title 10, United

21 States Code, is amended by adding at the end the fol22 lowing new section:
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1 ‘‘§ 2350l. Cooperative use of ranges and other facili2 ties for testing of defense equipment:

3 agreements with foreign countries and

4 international organizations

5 ‘‘(a) AUTHORITY.—The Secretary of Defense, with

6 the concurrence of the Secretary of State, may enter into

7 a memorandum of understanding (or other formal agree8 ment) with a foreign country or international organization

9 to provide reciprocal access by the United States and such

10 country or organization to each other’s ranges and other

11 facilities for testing of defense equipment.

12 ‘‘(b) PAYMENT OF COSTS.—A memorandum or other

13 agreement entered into under subsection (a) shall include

14 provisions for charging a user of a range or other facility

15 for test and evaluation services furnished by the officers,

16 employees, or governmental agencies of the supplying

17 country or international organization under the memo18 randum or other agreement. The provisions for charging

19 a user shall conform to the following pricing principles:

20 ‘‘(1) The user shall be charged the amount

21 equal to the direct costs incurred by the country or

22 international organization to supply the services.

23 ‘‘(2) The user may also be charged indirect

24 costs of the use of the range or other facility, but

25 only to the extent specified in the memorandum or

26 other agreement.
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1 ‘‘(c) RETENTION OF FUNDS COLLECTED BY THE

2 UNITED STATES.—Amounts collected from the user of a

3 range or other facility of the United States under a memo4 randum of understanding or other formal agreement en5 tered into under subsection (a) shall be credited to the

6 appropriation from which the costs incurred by the United

7 States in providing support for the use of the range or

8 other facility by that user were paid.

9 ‘‘(d) DELEGATION OF AUTHORITY.—The Secretary

10 of Defense may delegate only to the Deputy Secretary of

11 Defense and to one other official of the Department of

12 Defense authority to determine the appropriateness of the

13 amount of indirect costs charged the United States under

14 a memorandum or other agreement entered into under

15 subsection (a).

16 ‘‘(e) DEFINITIONS.—In this section:

17 ‘‘(1) The term ‘direct cost’, with respect to test18 ing and evaluation under a memorandum or other

19 agreement entered into under subsection (a)—

20 ‘‘(A) means any item of cost that—

21 ‘‘(i) is easily and readily identified to

22 a specific unit of work or output within the

23 range or other facility where the testing

24 and evaluation occurred under the memo25 randum or other agreement; and
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1 ‘‘(ii) would not have been incurred if

2 the testing and evaluation had not taken

3 place; and

4 ‘‘(B) may include costs of labor, materials,

5 facilities, utilities, equipment, supplies, and any

6 other resources of the range or other facility

7 that are consumed or damaged in connection

8 with—

9 ‘‘(i) the conduct of the test and eval10 uation; or

11 ‘‘(ii) the maintenance of the range or

12 other facility for the use of the country or

13 international organization under the

14 memorandum or other agreement.

15 ‘‘(2) The term ‘indirect cost’, with respect to

16 testing and evaluation under a memorandum or

17 other agreement entered into under subsection (a)—

18 ‘‘(A) means any item of cost that cannot

19 readily be identified directly to a specific unit of

20 work or output; and

21 ‘‘(B) may include general and administra22 tive expenses for such activities as supporting

23 base operations, manufacturing, supervision,

24 procurement of office supplies, and utilities that
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1 are accumulated costs allocated among several

2 users.’’.

3 (b) CLERICAL AMENDMENT.—The table of sections

4 at the beginning of such chapter is amended by adding

5 at the end the following new item:

‘‘2350l. Cooperative use of ranges and other facilities for testing of defense

equipment: agreements with foreign countries and international

organizations.’’.

6 SEC. 1214. CLARIFICATION OF AUTHORITY TO FURNISH NU7 CLEAR TEST MONITORING EQUIPMENT TO

8 FOREIGN GOVERNMENTS.

9 (a) REDESIGNATION OF EXISTING AUTHORITY.—(1)

10 Section 2555 of title 10, United States Code, as added

11 by section 1203 of the Floyd D. Spence National Defense

12 Authorization Act for Fiscal Year 2001 (as enacted by

13 Public Law 106–398; 114 Stat. 1654A–324), is redesig14 nated as section 2565 of that title.

15 (2) The table of sections at the beginning of chapter

16 152 of that title is amended by striking the item relating

17 to section 2555, as so added, and inserting the following

18 new item:

‘‘2565. Nuclear test monitoring equipment: furnishing to foreign governments.’’.

19 (b) CLARIFICATION OF AUTHORITY.—Section 2565

20 of that title, as so redesignated by subsection (a), is fur21 ther amended—

22 (1) in subsection (a)—
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1 (A) by striking ‘‘CONVEY OR’’ in the sub2 section heading and inserting ‘‘TRANSFER

3 TITLE TO OR OTHERWISE’’;

4 (B) in paragraph (1)—

5 (i) by striking ‘‘convey’’ and inserting

6 ‘‘transfer title’’; and

7 (ii) by striking ‘‘and’’ at the end;

8 (C) by striking the period at the end of

9 paragraph (2) and inserting ‘‘; and’’; and

10 (D) by adding at the end the following new

11 paragraph:

12 ‘‘(3) inspect, test, maintain, repair, or replace

13 any such equipment.’’; and

14 (2) in subsection (b)—

15 (A) by striking ‘‘conveyed or otherwise pro16 vided’’ and inserting ‘‘provided to a foreign gov17 ernment’’;

18 (B) by inserting ‘‘and’’ at the end of para19 graph (1);

20 (C) by striking ‘‘; and’’ at the end of para21 graph (2) and inserting a period; and

22 (D) by striking paragraph (3).
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1 SEC. 1215. PARTICIPATION OF GOVERNMENT CONTRAC2 TORS IN CHEMICAL WEAPONS INSPECTIONS

3 AT UNITED STATES GOVERNMENT FACILI4 TIES UNDER THE CHEMICAL WEAPONS CON5 VENTION.

6 (a) AUTHORITY.—Section 303(b)(2) of the Chemical

7 Weapons Convention Implementation Act of 1998 (22

8 U.S.C. 6723(b)(2)) is amended by inserting after ‘‘des9 ignation of employees of the Federal Government’’ the fol10 lowing: ‘‘(and, in the case of an inspection of a United

11 States Government facility, the designation of contractor

12 personnel who shall be led by an employee of the Federal

13 Government)’’.

14 (b) CREDENTIALS.—Section 304(c) of such Act (22

15 U.S.C. 6724(c)) is amended by striking ‘‘Federal govern16 ment’’ and inserting ‘‘Federal Government (and, in the

17 case of an inspection of a United States Government facil18 ity, any accompanying contractor personnel)’’.

19 SEC. 1216. AUTHORITY TO TRANSFER NAVAL VESSELS TO

20 CERTAIN FOREIGN COUNTRIES.

21 (a) TRANSFERS BY GRANT.—The President is au22 thorized to transfer vessels to foreign countries on a grant

23 basis under section 516 of the Foreign Assistance Act of

24 1961 (22 U.S.C. 2321j) as follows:
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1 (1) POLAND.—To the Government of Poland,

2 the OLIVER HAZARD PERRY class guided missile

3 frigate WADSWORTH (FFG 9).

4 (2) TURKEY.—To the Government of Turkey,

5 the KNOX class frigates CAPODANNO (FF 1093),

6 THOMAS C. HART (FF 1092), DONALD B.

7 BEARY (FF 1085), McCANDLESS (FF 1084),

8 REASONER (FF 1063), and BOWEN (FF 1079).

9 (b) TRANSFERS BY SALE.—The President is author10 ized to transfer vessels to foreign governments and foreign

11 governmental entities on a sale basis under section 21 of

12 the Arms Export Control Act (22 U.S.C. 2761) as follows:

13 (1) TAIWAN.—To the Taipei Economic and

14 Cultural Representative Office in the United States

15 (which is the Taiwan instrumentality designated

16 pursuant to section 10(a) of the Taiwan Relations

17 Act), the KIDD class guided missile destroyers

18 KIDD (DDG 993), CALLAGHAN (DDG 994),

19 SCOTT (DDG 995), and CHANDLER (DDG 996).

20 (2) TURKEY.—To the Government of Turkey,

21 the OLIVER HAZARD PERRY class guided missile

22 frigates ESTOCIN (FFG 15) and SAMUEL

23 ELIOT MORISON (FFG 13).

24 (c) ADDITIONAL CONGRESSIONAL NOTIFICATION

25 NOT REQUIRED.—Except as provided in subsection (d),
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1 the following provisions do not apply with respect to trans2 fers authorized by this section:

3 (1) Section 516(f) of the Foreign Assistance

4 Act of 1961 (22 U.S.C. 2321j(f)).

5 (2) Section 524 of the Foreign Operations, Ex6 port Financing, and Related Programs Appropria7 tion Act, 2001 (as enacted by Public Law 106–429;

8 114 Stat. 1900A–30) and any similar successor pro9 vision.

10 (d) GRANTS NOT COUNTED IN ANNUAL TOTAL OF

11 TRANSFERRED EXCESS DEFENSE ARTICLES.—The value

12 of a vessel transferred to another country on a grant basis

13 under section 516 of the Foreign Assistance Act of 1961

14 (22 U.S.C. 2321j) pursuant to authority provided by sub15 section (a) shall not be counted for the purposes of sub16 section (g) of that section in the aggregate value of excess

17 defense articles transferred to countries under that section

18 in any fiscal year.

19 (e) COSTS OF TRANSFERS ON GRANT BASIS.—Any

20 expense incurred by the United States in connection with

21 a transfer authorized by this section shall be charged to

22 the recipient (notwithstanding section 516(e)(1) of the

23 Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)))

24 in the case of a transfer authorized to be made on a grant

25 basis under subsection (a).
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1 (f) REPAIR AND REFURBISHMENT IN UNITED

2 STATES SHIPYARDS.—To the maximum extent prac3 ticable, the President shall require, as a condition of the

4 transfer of a vessel under this section, that the country

5 to which the vessel is transferred have such repair or re6 furbishment of the vessel as is needed, before the vessel

7 joins the naval forces of that country, performed at a ship8 yard located in the United States, including a United

9 States Navy shipyard.

10 (g) EXPIRATION OF AUTHORITY.—The authority to

11 transfer a vessel under this section shall expire at the end

12 of the 2-year period beginning on the date of the enact13 ment of this Act.

14 TITLE XIII—CONTINGENT AU15 THORIZATION OF APPRO16 PRIATIONS

17 SEC. 1301. AUTHORIZATION OF APPROPRIATIONS CONTIN18 GENT ON INCREASED ALLOCATION OF NEW

19 BUDGET AUTHORITY.

20 (a) IN GENERAL.—Notwithstanding any other provi21 sion of this Act, the total amounts authorized to be appro22 priated under subtitle A of title I, sections 201, 301, and

23 302, and division B are authorized to be appropriated in

24 accordance with those provisions without reduction under

25 section 1302 only if—
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1 (1) the Chairman of the Committee on the

2 Budget of the Senate—

3 (A) determines, for the purposes of section

4 217(b) of the Concurrent Resolution on the

5 Budget for Fiscal Year 2002, that the appro6 priation of all of the amounts specified in sec7 tion 1302 would not, when taken together with

8 all other previously enacted legislation (except

9 for legislation enacted pursuant to section 211

10 of such concurrent resolution) reduce the on11 budget surplus below the level of the Medicare

12 Hospital Insurance Trust Fund surplus in any

13 fiscal year covered by the concurrent resolution;

14 and

15 (B) increases the allocation of new budget

16 authority for defense spending in accordance

17 with section 217(a) of the Concurrent Resolu18 tion on the Budget for Fiscal Year 2002; or

19 (2) the Senate—

20 (A) by a vote of at least three-fifths of the

21 Members of the Senate duly chosen and sworn,

22 waives the point of order under section 302(f)

23 of the Congressional Budget and Impoundment

24 Control Act of 1974 with respect to an appro25 priation bill or resolution that provides new
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1 budget authority for the National Defense

2 major functional category (050) in excess of the

3 amount specified for the defense category in

4 section 203(c)(1)(A) of the Concurrent Resolu5 tion on the Budget for Fiscal Year 2002; and

6 (B) approves the appropriation bill or reso7 lution.

8 (b) FULL OR PARTIAL AUTHORIZATION.—(1) If the

9 total amount of the new budget authority allocated or

10 available for the National Defense major functional cat11 egory (050) for fiscal year 2002 is increased as described

12 in subsection (a) by at least $18,448,601,000 over the

13 amount of the new budget authority allocated for that cat14 egory for fiscal year 2002 by the Concurrent Resolution

15 on the Budget for Fiscal Year 2002, the reductions under

16 section 1302 shall not be made.

17 (2) If the total amount of new budget authority allo18 cated or available for the National Defense major func19 tional category (050) for fiscal year 2002 is increased as

20 described in subsection (a) by less than $18,448,601,000

21 over the amount of the new budget authority allocated for

22 that category for fiscal year 2002 by the Concurrent Reso23 lution on the Budget for Fiscal Year 2002, each of the

24 total amounts referred to in section 1302 shall be reduced

25 by a proportionate amount of the difference between
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1 $18,448,601,000 and the amount of the increase in the

2 allocated new budget authority.

3 SEC. 1302. REDUCTIONS.

4 Until such time as the amount of the new budget au5 thority allocated or available for the National Defense

6 major functional category (050) for fiscal year 2002 is in7 creased as described in section 1301(a), the total amounts

8 authorized to be appropriated by provisions of this Act are

9 reduced as follows:

10 (1) For the total amount authorized to be ap11 propriated for procurement by subtitle A of title I,

12 the reduction is $2,100,854,000.

13 (2) For the total amount authorized to be ap14 propriated for research, development, test and eval15 uation by section 201, the reduction is

16 $3,033,434,000.

17 (3) For the total amount authorized to be ap18 propriated for operation and maintenance by section

19 301, the reduction is $8,737,773,000.

20 (4) For the total amount authorized to be ap21 propriated for working capital and revolving funds

22 by section 302, the reduction is $1,018,394,000.

23 (5) For the total amount authorized to be ap24 propriated by division B, the reduction is

25 $348,065,000.
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1 SEC. 1303. REFERENCE TO CONCURRENT RESOLUTION ON

2 THE BUDGET FOR FISCAL YEAR 2002.

3 For the purposes of this title, a reference to the Con4 current Resolution on the Budget for Fiscal Year 2002

5 is a reference to House Concurrent Resolution 83 (107th

6 Congress, 1st session).

Calendar No. 158

107TH CONGRESS

1ST SESSION S. 1419

A BILL

To authorize appropriations for fiscal year 2002 for

military activities of the Department of Defense,to prescribe personnel strengths for such fiscalyear for the Armed Forces, and for other purposes.

SEPTEMBER 12, 2001

Read twice and placed on the calendar