107TH CONGRESS

1ST SESSION S. 1419

AN ACT

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’’.
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1 SEC. 2. TABLE OF CONTENTS.

2 The table of contents for this Act is as follows:

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.

Sec. 124. Additional matter relating to V–22 Osprey aircraft.

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.

Sec. 142. Procurement of additional M291 skin decontamination kits.

TITLE II—RESEARCH, DEVELOPMENT, TEST, AND

EVALUATION

Subtitle A—Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for basic and applied research.

Sec. 203. Authorization of additional funds.

Sec. 204. Funding for Special Operations Forces Command, Control, Communications, Computers, and Intelligence Systems Threat Warning and Situational Awareness program.

Subtitle B—Program Requirements, Restrictions, and

Limitations

Sec. 211. F–22 aircraft program.

Sec. 212. C–5 aircraft reliability enhancement and reengining.
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Sec. 213. Review of alternatives to the V–22 Osprey aircraft.

Sec. 214. Joint biological defense program.

Sec. 215. Report on V–22 Osprey aircraft before decision to resume flight testing.

Sec. 216. Big Crow Program and Defense Systems Evaluation program.

Subtitle C—Other Matters

Sec. 231. Technology Transition Initiative.

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

evaluation officials and program managers.

Sec. 233. Supplemental Authorization of Appropriations for Fiscal Year 2001

for Research, Development, Test, and Evaluation Defense-wide.

TITLE III—OPERATION AND MAINTENANCE

Subtitle A—Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

Sec. 302. Working capital funds.

Sec. 303. Armed Forces Retirement Home.

Sec. 304. Assistance to local educational agencies that benefit dependents of

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

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

Sec. 306. Improvements in instrumentation and targets at Army live fire training ranges.

Sec. 307. Environmental Restoration, Formerly Used Defense Sites.

Sec. 308. Authorization of additional funds.

Sec. 309. Funds for renovation of Department of Veterans Affairs facilities adjacent to Naval Training Center, Great Lakes, Illinois.

Subtitle B—Environmental Provisions

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

for unexploded ordnance and related constituents.

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

related constituents.

Sec. 313. Department of Defense energy efficiency program.

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

incentives.

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

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

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

trucks.

Subtitle C—Commissaries and Nonappropriated Fund

Instrumentalities

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

supplemental food program.

Sec. 322. Reimbursement for use of commissary facilities by military departments for purposes other than commissary sales.
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Sec. 323. Public releases of commercially valuable information of commissary

stores.

Subtitle D—Other Matters

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

counterdrug activities of other governmental agencies.

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

performance of depot-level maintenance.

Sec. 333. Repair, restoration, and preservation of Lafayette Escadrille Memorial, Marnes la-Coquette, France.

Sec. 334. Implementation of the Navy-Marine Corps Intranet contract.

Sec. 335. Revision of authority to waive limitation on performance of depotlevel maintenance.

Sec. 336. Reauthorization of warranty claims recovery pilot program.

Sec. 337. Funding for land forces readiness-information operations

sustainment.

Sec. 338. Defense Language Institute Foreign Language Center expanded Arabic language program.

Sec. 339. Consequence management training.

Sec. 340. Critical infrastructure protection initiative of the Navy.

TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A—Active Forces

Sec. 401. End strengths for active forces.

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

Subtitle B—Reserve Forces

Sec. 411. End strengths for Selected Reserve.

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

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

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

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

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

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

members on active duty in support of a contingency operation.

Subtitle C—Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

TITLE V—MILITARY PERSONNEL POLICY

Subtitle A—Officer Personnel Policy

Sec. 501. General officer positions.

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

of first lieutenants and lieutenants (junior grade).

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

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

without selection board action.

Sec. 504. Authority to adjust date of rank.
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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.

Sec. 514. Modification of physical examination requirements for members of the

Individual Ready Reserve.

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

duty station within commuting distance of home.

Sec. 516. Retirement of reserve personnel without request.

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

Subtitle C—Education and Training

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

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

Corps units.

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

of officers participating in the funded legal education program.

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

Center.

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

master of strategic studies.

Sec. 536. Foreign persons attending the service academies.

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

of education leading to initial degree in medicine or dentistry.

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

Armed Forces.

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

GI Bill by members of the Armed Forces with critical military

skills.

Sec. 540. Participation of regular members of the Armed Forces in the Senior

Reserve Officers’ Training Corps.

Subtitle D—Decorations, Awards, and Commendations

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

for valor during the Vietnam War.
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Sec. 552. Review regarding award of Medal of Honor to certain Jewish American war veterans.

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

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

persons.

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

Sec. 556. Retroactive Medal of Honor special pension.

Subtitle E—Funeral Honors Duty

Sec. 561. Active duty end strength exclusion for Reserves on active duty or 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. Standard for invalidation of ballots cast by absent uniformed services

voters in Federal elections.

Sec. 573. Guarantee of residency for military personnel.

Sec. 574. Extension of registration and balloting rights for absent uniformed

services voters to State and local elections.

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

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

Sec. 577. Electronic voting demonstration project.

Sec. 578. Federal voting assistance program.

Sec. 579. Maximization of access of recently separated uniformed services voters to the polls.

Sec. 580. Governors’ reports on implementation of Federal voting assistance

program recommendations.

Subtitle G—Other Matters

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

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

authorities.

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

the Uniform Code of Military Justice.

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

Sec. 585. Review of actions of selection boards.

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

dependents.

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

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

Sec. 589. Report on health and disability benefits for pre-accession training and

education programs.

TITLE VI—COMPENSATION AND OTHER PERSONNEL

BENEFITS
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Subtitle A—Pay and Allowances

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

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

service as an enlisted member or warrant officer.

Sec. 603. Reserve component compensation for distributed learning activities

performed as inactive-duty training.

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

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

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

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

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

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

Subtitle B—Bonuses and Special and Incentive Pays

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

forces.

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

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

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

special pays.

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

and seizure teams.

Sec. 616. Submarine duty incentive pay rates.

Sec. 617. Career sea pay.

Sec. 618. Modification of eligibility requirements for Individual Ready Reserve

bonus for reenlistment, enlistment, or extension of enlistment.

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

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

Senior Reserve Officers’ Training Programs.

Sec. 621. Eligibility for certain career continuation bonuses for early commitment to remain on active duty.

Sec. 622. Hostile fire or imminent danger pay.

Subtitle C—Travel and Transportation Allowances

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

status between permanent duty stations.

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

Sec. 633. Eligibility for dislocation allowance.

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

home station.

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

the burial of a deceased member of the uniformed services.

Sec. 636. Family separation allowance for members electing unaccompanied

tour by reason of health limitations of dependents.

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.
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Subtitle D—Matters Relating to Retirement and Survivor

Benefits

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

Sec. 652. SBP eligibility of survivors of retirement-ineligible members of the

uniformed services who die while on active duty.

Subtitle E—Other Matters

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

critical specialties.

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

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

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

Subtitle F—National Emergency Family Support

Sec. 681. Child care and youth assistance.

Sec. 682. Family education and support services.

TITLE VII—HEALTH CARE

Subtitle A—TRICARE Benefits Modernization

Sec. 701. Requirement for integration of benefits.

Sec. 702. Domiciliary and custodial care.

Sec. 703. Long term care.

Sec. 704. Extended benefits for disabled beneficiaries.

Sec. 705. Conforming repeals.

Sec. 706. Prosthetics and hearing aids.

Sec. 707. Durable medical equipment.

Sec. 708. Rehabilitative therapy.

Sec. 709. Mental health benefits.

Sec. 710. Effective date.

Subtitle B—Other Matters

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

related care for members of Army Reserve units scheduled for

early deployment.

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

adult accompanying patient in travel for specialty care.

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

health care providers and on balance billing by institutional

and noninstitutional health care providers.

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

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

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

under the defense health program.

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

examinations.
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Sec. 718. Modification of prohibition on requirement of nonavailability statement or preauthorization.

Sec. 719. Transitional health care to members separated from active duty.

TITLE VIII—ACQUISITION POLICY, ACQUISITION

MANAGEMENT, AND RELATED MATTERS

Subtitle A—Procurement Management and Administration

Sec. 801. Management of procurements of services.

Sec. 802. Savings goals for procurements of services.

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

contracts.

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

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

prototype projects.

Subtitle B—Defense Acquisition and Support Workforce

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

2005 Task Force.

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

workforce.

Sec. 813. Revision of acquisition workforce qualification requirements.

Subtitle C—Use of Preferred Sources

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

Sec. 822. Consolidation of contract requirements.

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

Sec. 824. Hubzone small business concerns.

Subtitle D—Amendments to General Contracting Authorities,

Procedures, and Related Matters

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

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

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

Sec. 833. Insensitive munitions program.

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION

AND MANAGEMENT

Subtitle A—Organization and Management

Sec. 901. Deputy Under Secretary of Defense for Personnel and Readiness.

Sec. 902. Responsibility of Under Secretary of the Air Force for acquisition of

space launch vehicles and services.

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

as the Commander in Chief, United States Transportation

Command.

Sec. 904. Organizational realignment for Navy Director for Expeditionary Warfare.
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Sec. 905. Revised requirements for content of annual report on joint

warfighting experimentation.

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

policy within the Naval Sea Systems Command.

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

Command.

Subtitle B—Organization and Management of Space Activities

Sec. 911. Establishment of position of Under Secretary of Defense for Space,

Intelligence, and Information.

Sec. 912. Responsibility for space programs.

Sec. 913. Major force program category for space programs.

Sec. 914. Assessment of implementation of recommendations of Commission To

Assess United States National Security Space Management

and Organization.

Sec. 915. Grade of commander of Air Force Space Command.

Sec. 916. Sense of Congress regarding grade of officer assigned as Commander

of United States Space Command.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters

Sec. 1001. Transfer authority.

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

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

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

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

interim payments due under contracts for services.

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

Sec. 1007. Financial Management Modernization Executive Committee and financial feeder systems compliance process.

Sec. 1008. Combating Terrorism Readiness Initiatives Fund for combatant

commands.

Sec. 1009. Authorization of additional funds.

Sec. 1010. Authorization of 2001 Emergency Supplemental Appropriations Act

for recovery from and response to terrorist attacks on the

United States.

Subtitle B—Strategic Forces

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

Sec. 1012. Bomber force structure.

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

Subtitle C—Reporting Requirements

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

Sec. 1022. Report on combating terrorism.

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

advise Secretary of Defense on the assignment of roles and

missions to the Armed Forces.
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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.

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

Subtitle D—Armed Forces Retirement Home

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

Sec. 1042. Definitions.

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

Home.

Sec. 1044. Chief Operating Officer.

Sec. 1045. Residents of Retirement Home.

Sec. 1046. Local boards of trustees.

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

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

Sec. 1049. Transitional provisions.

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

Sec. 1051. Amendments of other laws.

Subtitle E—Other Matters

Sec. 1061. Requirement to conduct certain previously authorized educational

programs for children and youth.

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

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

local governments as assistance for emergency response to a

use or threatened use of a weapon of mass destruction.

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

for Japan during World War II.

Sec. 1065. Retention of travel promotional items.

Sec. 1066. Radiation Exposure Compensation Act mandatory appropriations.

Sec. 1067. Leasing of Navy ships for University National Oceanographic Laboratory System.

Sec. 1068. Small business procurement competition.

Sec. 1069. Chemical and biological protective equipment for military and civilian personnel of the Department of Defense.

Sec. 1070. Authorization of the sale of goods and services by the Naval Magazine, Indian Island.

Sec. 1071. Assistance for firefighters.

Sec. 1072. Plan to ensure embarkation of civilian guests does not interfere with

operational readiness and safe operation of Navy vessels.

Sec. 1073. Modernizing and enhancing missile wing helicopter support—study

and plan.

Sec. 1074. Sense of the Senate that the Secretary of the Treasury should immediately issue savings bonds, to be designated as ‘‘Unity

Bonds’’, in response to the terrorist attacks against the United

States on September 11, 2001.
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Sec. 1075. Personnel pay and qualifications authority for Department of Defense Pentagon Reservation civilian law enforcement and security force.

Sec. 1076. Waiver of vehicle weight limits during periods of national emergency.

TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN

PERSONNEL POLICY

Subtitle A—Intelligence Personnel

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

Intelligence Senior Executive Service.

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

Agency from the Defense Mapping Agency.

Subtitle B—Matters Relating to Retirement

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

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

between civil service employment and employment by nonappropriated fund instrumentalities.

Sec. 1113. Repeal of limitations on exercise of voluntary separation incentive

pay authority and voluntary early retirement authority.

Subtitle C—Other Matters

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

United States Military Academy.

Sec. 1122. Study of adequacy of compensation provided for teachers in the Department of Defense overseas dependents’ schools.

Sec. 1123. Pilot program for payment of retraining expenses incurred by employers of persons involuntarily separated from employment by

the Department of Defense.

Sec. 1124. Participation of personnel in technical standards development activities.

Sec. 1125. Authority to exempt certain health care professionals from examination for appointment in the competitive civil service.

Sec. 1126. Professional credentials.

TITLE XII—MATTERS RELATING TO OTHER NATIONS

Subtitle A—Cooperative Threat Reduction With States of the

Former Soviet Union

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

Sec. 1202. Funding allocations.

Sec. 1203. Chemical weapons destruction.

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

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

under Cooperative Threat Reduction programs.

Subtitle B—Other Matters

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

Iraqi weapons activities.
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Sec. 1212. Cooperative research and development projects with NATO and

other countries.

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

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

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

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

Sec. 1217. Acquisition of logistical support for security forces.

Sec. 1218. Personal services contracts to be performed by individuals or organizations abroad.

Sec. 1219. Allied defense burdensharing.

Sec. 1220. Release of restriction on use of certain vessels previously authorized

to be sold.

TITLE XIII—CONTINGENT AUTHORIZATION OF

APPROPRIATIONS

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

new budget authority.

Sec. 1302. Reductions.

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

2002.

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.

9 TITLE I—PROCUREMENT

10 Subtitle A—Authorization of

11 Appropriations

12 SEC. 101. ARMY.

13 Funds are hereby authorized to be appropriated for

14 fiscal year 2002 for procurement for the Army as follows:
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1 (1) For aircraft, $2,123,391,000.

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

3 (3) For weapons and tracked combat vehicles,

4 $2,276,746,000.

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

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

7 SEC. 102. NAVY AND MARINE CORPS.

8 (a) NAVY.—Funds are hereby authorized to be appro9 priated for fiscal year 2002 for procurement for the Navy

10 as follows:

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

12 (2) For weapons, including missiles and tor13 pedoes, $1,503,475,000.

14 (3) For shipbuilding and conversion,

15 $9,522,121,000.

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

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

18 be appropriated for fiscal year 2002 for procurement for

19 the Marine Corps in the amount of $981,724,000.

20 (c) NAVY AND MARINE CORPS AMMUNITION.—Funds

21 are hereby authorized to be appropriated for fiscal year

22 2002 for procurement of ammunition for the Navy and

23 the Marine Corps in the amount of $476,099,000.
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1 SEC. 103. AIR FORCE.

2 Funds are hereby authorized to be appropriated for

3 fiscal year 2002 for procurement for the Air Force as fol4 lows:

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

6 (2) For ammunition, $885,344,000.

7 (3) For missiles, $3,286,136,000.

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

9 SEC. 104. DEFENSE-WIDE ACTIVITIES.

10 Funds are hereby authorized to be appropriated for

11 fiscal year 2002 for Defense-wide procurement in the

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

13 SEC. 105. DEFENSE INSPECTOR GENERAL.

14 Funds are hereby authorized to be appropriated for

15 fiscal year 2002 for procurement for the Inspector General

16 of the Department of Defense in the amount of

17 $2,800,000.

18 SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUC19 TION, DEFENSE.

20 There is hereby authorized to be appropriated for the

21 Office of the Secretary of Defense for fiscal year 2002

22 the amount of $1,153,557,000 for—

23 (1) the destruction of lethal chemical agents

24 and munitions in accordance with section 1412 of

25 the Department of Defense Authorization Act, 1986

26 (50 U.S.C. 1521); and
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1 (2) the destruction of chemical warfare materiel

2 of the United States that is not covered by section

3 1412 of such Act.

4 SEC. 107. DEFENSE HEALTH PROGRAMS.

5 Funds are hereby authorized to be appropriated for

6 fiscal year 2002 for the Department of Defense for pro7 curement for carrying out health care programs, projects,

8 and activities of the Department of Defense in the total

9 amount of $267,915,000.

10 Subtitle B—Army Programs

11 (RESERVED)

12 Subtitle C—Navy Programs

13 SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.

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

15 Defense Authorization Act for Fiscal Year 2001 (as en16 acted into law by Public Law 106–398; 114 Stat. 1654A–

17 25) is amended—

18 (1) by striking ‘‘five Virginia class submarines’’

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

20 and

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

22 ‘‘2007’’.
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1 SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR

2 F/A–18E/F AIRCRAFT ENGINES.

3 Beginning with the 2002 program year, the Secretary

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

5 10, United States Code, enter into a multiyear contract

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

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

8 The production rate for V–22 Osprey aircraft may

9 not be increased above the minimum sustaining produc10 tion rate for which funds are authorized to be appro11 priated by this Act until the Secretary of Defense certifies

12 to Congress that successful operational testing of the air13 craft demonstrates that—

14 (1) the solutions to the problems regarding the

15 reliability of hydraulic system components and flight

16 control software that were identified by the panel

17 appointed by the Secretary of Defense on January

18 5, 2001, to review the V–22 aircraft program are

19 adequate to achieve low risk for crews and pas20 sengers aboard V–22 aircraft that are operating

21 under operational conditions;

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

23 maintainability levels that are sufficient for the air24 craft to achieve operational availability at the level

25 required for fleet aircraft;
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1 (3) the V–22 aircraft will be operationally

2 effective—

3 (A) when employed in operations with

4 other V–22 aircraft; and

5 (B) when employed in operations with

6 other types of aircraft; and

7 (4) the V–22 aircraft can be operated effec8 tively, taking into consideration the downwash ef9 fects inherent in the operation of the aircraft, when

10 the aircraft—

11 (A) is operated in remote areas with unim12 proved terrain and facilities;

13 (B) is deploying and recovering

14 personnel—

15 (i) while hovering within the zone of

16 ground effect; and

17 (ii) while hovering outside the zone of

18 ground effect; and

19 (C) is operated with external loads.

20 SEC. 124. ADDITIONAL MATTER RELATING TO V–22 OSPREY

21 AIRCRAFT.

22 Not later than 30 days before the recommencement

23 of flights of the V–22 Osprey aircraft, the Secretary of

24 Defense shall submit to Congress notice of the waiver, if

25 any, of any item capability or any other requirement speci-
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1 fied in the Joint Operational Requirements Document for

2 the V–22 Osprey aircraft, including a justification of each

3 such waiver.

4 Subtitle D—Air Force Programs

5 SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR

6 C–17 AIRCRAFT.

7 Beginning with the 2002 program year, the Secretary

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

9 of title 10, United States Code, enter into a multiyear con10 tract for the procurement of up to 60 C–17 aircraft.

11 Subtitle E—Other Matters

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

13 MANUFACTURED ARTICLES AND SERVICES

14 OF CERTAIN ARMY INDUSTRIAL FACILITIES

15 WITHOUT REGARD TO AVAILABILITY FROM

16 DOMESTIC SOURCES.

17 Section 141(a) of the National Defense Authorization

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

19 4543 note) is amended by striking ‘‘through 2001’’ and

20 inserting ‘‘through 2002’’.

21 SEC. 142. PROCUREMENT OF ADDITIONAL M291 SKIN DE22 CONTAMINATION KITS.

23 (a) INCREASE IN AUTHORIZATION OF APPROPRIA24 TIONS FOR DEFENSE-WIDE PROCUREMENT.—(1) The

25 amount authorized to be appropriated by section 104 for
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1 Defense-wide procurement is hereby increased by

2 $2,400,000, with the amount of the increase available for

3 the Navy for procurement of M291 skin decontamination

4 kits.

5 (2) The amount available under paragraph (1) for

6 procurement of M291 skin decontamination kits is in addi7 tion to any other amounts available under this Act for pro8 curement of M291 skin decontamination kits.

9 (b) OFFSET.—The amount authorized to be appro10 priated by section 201(4) for research, development, test,

11 and evaluation, Defense-wide, is hereby decreased by

12 $2,400,000, with the amount to be derived from the

13 amount available for the Technical Studies, Support and

14 Analysis program.

15 TITLE II—RESEARCH, DEVELOP16 MENT, TEST, AND EVALUA17 TION

18 Subtitle A—Authorization of

19 Appropriations

20 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

21 Funds are hereby authorized to be appropriated for

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

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

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

25 (2) For the Navy, $11,134,806,000.
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1 (3) For the Air Force, $14,459,457,000.

2 (4) For Defense-wide activities,

3 $14,099,702,000, of which $221,355,000 is author4 ized for the Director of Operational Test and Eval5 uation.

6 (5) For the Defense Health Program,

7 $65,304,000.

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

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

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

11 be available for basic research and applied research

12 projects.

13 (b) BASIC RESEARCH AND APPLIED RESEARCH DE14 FINED.—For purposes of this section, the term ‘‘basic re15 search and applied research’’ means work funded in pro16 gram elements for defense research and development

17 under Department of Defense category 6.1 or 6.2.

18 SEC. 203. AUTHORIZATION OF ADDITIONAL FUNDS.

19 (a) AUTHORIZATION.—The amount authorized to be

20 appropriated in section 201(1) is increased by $2,500,000

21 in PE62303A214 for Enhanced Scramjet Mixing.

22 (b) OFFSET.—The amount authorized to be appro23 priated by section 301(5) is reduced by $2,500,000.
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1 SEC. 204. FUNDING FOR SPECIAL OPERATIONS FORCES

2 COMMAND, CONTROL, COMMUNICATIONS,

3 COMPUTERS, AND INTELLIGENCE SYSTEMS

4 THREAT WARNING AND SITUATIONAL

5 AWARENESS PROGRAM.

6 (a) INCREASED AUTHORIZATION OF APPROPRIA7 TIONS FOR RESEARCH, DEVELOPMENT, TEST, AND EVAL8 UATION, DEFENSE-WIDE.—The amount authorized to be

9 appropriated by section 201(4) for research, development,

10 test, and evaluation, Defense-wide, is hereby increased by

11 $2,800,000.

12 (b) AVAILABILITY.—Of the amount authorized to be

13 appropriated by section 201(4), as increased by subsection

14 (a), $2,800,000 may be available for the Special Oper15 ations Forces Command, Control, Communications, Com16 puters, and Intelligence Systems Threat Warning and Sit17 uational Awareness (PRIVATEER) program

18 (PE1160405BB).

19 (c) OFFSET.—The amount authorized to be appro20 priated by section 301(5) for operation and maintenance

21 for Defense-wide activities is hereby reduced by

22 $2,800,000.
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1 Subtitle B—Program Require2 ments, Restrictions, and Limita3 tions

4 SEC. 211. F–22 AIRCRAFT PROGRAM.

5 (a) REPEAL OF LIMITATIONS ON TOTAL COST OF

6 ENGINEERING AND MANUFACTURING DEVELOPMENT.—

7 The following provisions of law are repealed:

8 (1) Section 217(a) of the National Defense Au9 thorization Act for Fiscal Year 1998 (Public Law

10 105–85; 111 Stat. 1660).

11 (2) Section 8125 of the Department of Defense

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

13 114 Stat. 702).

14 (3) Section 219(b) of the Floyd D. Spence Na15 tional Defense Authorization Act for Fiscal Year

16 2001 (as enacted into law by Public Law 106–398;

17 114 Stat. 1654A–38).

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

19 the National Defense Authorization Act for Fiscal Year

20 1998 (Public Law 105–85; 111 Stat. 1660) is amended—

21 (A) in subsection (c)—

22 (i) by striking ‘‘limitations set forth in sub23 sections (a) and (b)’’ and inserting ‘‘limitation

24 set forth in subsection (b)’’; and

25 (ii) by striking paragraph (3); and
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1 (B) in subsection (d)(2), by striking subpara2 graphs (D) and (E).

3 (2) Section 131 of the National Defense Authoriza4 tion Act for Fiscal Year 2000 (Public Law 106–65; 113

5 Stat. 536) is amended—

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

7 and inserting the following:

8 ‘‘(2) That the production phase for that pro9 gram can be executed within the limitation on total

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

11 of the National Defense Authorization Act for Fiscal

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

13 and

14 (B) in subsection (b)(3), by striking ‘‘for the re15 mainder of the engineering and manufacturing de16 velopment phase and’’.

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

18 REENGINING.

19 The Secretary of the Air Force shall ensure that engi20 neering manufacturing and development under the C–5

21 aircraft reliability enhancement and reengining program

22 includes kit development for an equal number of C–5A and

23 C–5B aircraft.
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1 SEC. 213. REVIEW OF ALTERNATIVES TO THE V–22 OSPREY

2 AIRCRAFT.

3 (a) REQUIREMENT FOR REVIEW.—The Under Sec4 retary of Defense for Acquisition, Technology, and Logis5 tics shall conduct a review of the requirements of the Ma6 rine Corps and the Special Operations Command that the

7 V–22 Osprey aircraft is intended to meet in order to iden8 tify the potential alternative means for meeting those re9 quirements if the V–22 Osprey aircraft program were to

10 be terminated.

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

12 reviewed shall include the following:

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

14 replacing the CH–46 medium lift helicopter.

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

16 replacing the MH–53 helicopter.

17 (c) FUNDING.—Of the amount authorized to be ap18 propriated by section 201(2), $5,000,000 shall be avail19 able for carrying out the review required by this section.

20 SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.

21 Section 217(a) of the Floyd D. Spence National De22 fense Authorization Act for Fiscal Year 2001 (as enacted

23 into law by Public Law 106–398; 114 Stat. 1654A–36)

24 is amended by striking ‘‘funds authorized to be appro25 priated by this Act may not’’ and inserting ‘‘no funds au-
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1 thorized to be appropriated to the Department of Defense

2 for fiscal year 2002 may’’.

3 SEC. 215. REPORT ON V–22 OSPREY AIRCRAFT BEFORE DE4 CISION TO RESUME FLIGHT TESTING.

5 Not later than 30 days before the planned date to

6 resume flight testing of the V–22 Osprey aircraft, the

7 Under Secretary of Defense for Acquisition, Technology,

8 and Logistics shall submit to Congress a report containing

9 the following:

10 (1) A comprehensive description of the status of

11 the hydraulics system and flight control software of

12 the V–22 Osprey Aircraft, including—

13 (A) a description and analysis of any defi14 ciencies in the hydraulics system and flight con15 trol software of the V–22 Osprey aircraft; and

16 (B) a description and assessment of the

17 actions taken to redress such deficiencies.

18 (2) A description of the current actions, and

19 any proposed actions, of the Department of Defense

20 to implement the recommendations of the Panel to

21 Review the V–22 Program.

22 (3) An assessment of the recommendations of

23 the National Aeronautics and Space Administration

24 in its report on tiltrotor aeromechanics.
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1 SEC. 216. BIG CROW PROGRAM AND DEFENSE SYSTEMS

2 EVALUATION PROGRAM.

3 (a) INCREASE IN AUTHORIZATION OF APPROPRIA4 TIONS FOR RESEARCH, DEVELOPMENT, TEST, AND EVAL5 UATION, DEFENSE-WIDE.—The amount authorized to be

6 appropriated by section 201(4) for research, development,

7 test, and evaluation, Defense-wide, is hereby increased by

8 $6,500,000, with the amount of the increase to be avail9 able for operational test and evaluation (PE605118D).

10 (b) AVAILABILITY OF FUNDS.—Of the amount au11 thorized to be appropriated by section 201(4), as increased

12 by subsection (a)—

13 (1) $5,000,000 may be available for the Big

14 Crow program; and

15 (2) $1,500,000 may be available for the De16 fense Systems Evaluation (DSE) program.

17 (c) OFFSET.—The amount authorized to be appro18 priated by section 301(5) for operation and maintenance

19 for Defense-wide activities is hereby reduced by

20 $6,500,000.

21 Subtitle C—Other Matters

22 SEC. 231. TECHNOLOGY TRANSITION INITIATIVE.

23 (a) ESTABLISHMENT AND CONDUCT.—Chapter 139

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

25 after section 2354 the following new section 2355:
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1 ‘‘§ 2355. Technology Transition Initiative

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

3 of Defense shall carry out a Technology Transition Initia4 tive to facilitate the rapid transition of new technologies

5 from science and technology programs of the Department

6 of Defense into acquisition programs for the production

7 of the technologies.

8 ‘‘(b) OBJECTIVES.—The objectives of the Initiative

9 are as follows:

10 ‘‘(1) To successfully demonstrate new tech11 nologies in relevant environments.

12 ‘‘(2) To ensure that new technologies are suffi13 ciently mature for production.

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

15 shall designate a senior official in the Office of the Sec16 retary of Defense to manage the Initiative.

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

18 Manager shall report directly to the Under Secretary of

19 Defense for Acquisition, Technology, and Logistics.

20 ‘‘(3) The Initiative Manager shall—

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

22 the Joint Forces Command, identify promising tech23 nologies that have been demonstrated in science and

24 technology programs of the Department of Defense;
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1 ‘‘(B) identify potential sponsors in the Depart2 ment of Defense to undertake the transition of such

3 technologies into production;

4 ‘‘(C) work with the science and technology com5 munity and the acquisition community to develop

6 memoranda of agreement, joint funding agreements,

7 and other cooperative arrangements to provide for

8 the transition of the technologies into production;

9 and

10 ‘‘(D) provide funding support for selected

11 projects as provided under subsection (d).

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

13 procurement executive of each military department shall

14 select technology projects of the military department to

15 recommend for funding support under the Initiative and

16 shall submit a list of the recommended projects, ranked

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

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

19 basis of the highest potential benefits in areas of interest

20 identified by the Secretary of that military department.

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

22 Commander of the Joint Forces Command, shall select

23 projects for funding support from among the projects on

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

25 Manager shall provide funds, out of the Technology Tran-
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1 sition Fund, for each selected project. The total amount

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

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

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

5 department shall manage each project selected under

6 paragraph (2) that is undertaken by the military depart7 ment. Memoranda of agreement, joint funding agree8 ments, and other cooperative arrangements between the

9 science and technology community and the acquisition

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

11 senior procurement executive determines that it is appro12 priate to do so to achieve the objectives of the project.

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

14 established in the Treasury of the United States a fund

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

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

17 of the Secretary of Defense, the Initiative Manager shall

18 administer the Fund consistent with the provisions of this

19 section.

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

21 deposited in the Fund.

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

23 extent provided in appropriations Acts, for carrying out

24 the Initiative.
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1 ‘‘(5) The President shall specify in the budget sub2 mitted for a fiscal year pursuant to section 1105(a) of title

3 31 the amount provided in that budget for the Initiative.

4 ‘‘(f) DEFINITIONS.—In this section:

5 ‘‘(1) The term ‘Initiative’ means the Tech6 nology Transition Initiative carried out under this

7 section.

8 ‘‘(2) The term ‘Initiative Manager’ means the

9 official designated to manage the Initiative under

10 subsection (c).

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

12 Transition Fund established under subsection (e).

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

14 with respect to a military department, means the of15 ficial designated as the senior procurement executive

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

17 the Office of Federal Procurement Policy Act (41

18 U.S.C. 414(3)).’’.

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

20 at the beginning of such chapter is amended by inserting

21 after the item relating to section 2354 the following new

22 item:

‘‘2355. Technology Transition Initiative.’’.
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1 SEC. 232. COMMUNICATION OF SAFETY CONCERNS BE2 TWEEN OPERATIONAL TESTING AND EVALUA3 TION OFFICIALS AND PROGRAM MANAGERS.

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

5 amended by adding at the end the following new sub6 section:

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

8 developed during the operational test and evaluation of a

9 weapon system under a major defense acquisition program

10 are timely communicated to the program manager for con11 sideration in the acquisition decisionmaking process.’’.

12 SEC. 233. SUPPLEMENTAL AUTHORIZATION OF APPROPRIA13 TIONS FOR FISCAL YEAR 2001 FOR RE14 SEARCH, DEVELOPMENT, TEST, AND EVALUA15 TION DEFENSE-WIDE.

16 Section 201(4) of Floyd D. Spence National Defense

17 Authorization Act for Fiscal Year 2001 (as enacted into

18 law by Public Law 106–398; 114 Stat. 1654A–32) is

19 amended by striking ‘‘$10,873,712,000’’ and inserting

20 ‘‘$10,874,712,000’’.
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1 TITLE III—OPERATION AND

2 MAINTENANCE

3 Subtitle A—Authorization of

4 Appropriations

5 SEC. 301. OPERATION AND MAINTENANCE FUNDING.

6 Funds are hereby authorized to be appropriated for

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

8 activities and agencies of the Department of Defense for

9 expenses, not otherwise provided for, for operation and

10 maintenance, in amounts as follows:

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

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

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

14 (4) For the Air Force, $25,993,582,000.

15 (5) For Defense-wide activities,

16 $12,482,532,000.

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

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

19 (8) For the Marine Corps Reserve,

20 $142,956,000.

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

22 (10) For the Army National Guard,

23 $3,697,659,000.

24 (11) For the Air National Guard,

25 $4,037,161,000.
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1 (12) For the Defense Inspector General,

2 $149,221,000.

3 (13) For the United States Court of Appeals

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

5 (14) For Environmental Restoration, Army,

6 $389,800,000.

7 (15) For Environmental Restoration, Navy,

8 $257,517,000.

9 (16) For Environmental Restoration, Air Force,

10 $385,437,000.

11 (17) For Environmental Restoration, Defense12 wide, $23,492,000.

13 (18) For Environmental Restoration, Formerly

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

15 (19) For Overseas Humanitarian, Disaster, and

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

17 (20) For Drug Interdiction and Counterdrug

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

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

20 Remediation, and Environmental Restoration Trust

21 Fund, $60,000,000.

22 (22) For the Defense Health Program,

23 $17,546,750,000.

24 (23) For Cooperative Threat Reduction pro25 grams, $403,000,000.
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1 (24) For Overseas Contingency Operations

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

3 (25) For Support for International Sporting

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

5 SEC. 302. WORKING CAPITAL FUNDS.

6 Funds are hereby authorized to be appropriated for

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

8 activities and agencies of the Department of Defense for

9 providing capital for working capital and revolving funds

10 in amounts as follows:

11 (1) For the Defense Working Capital Funds,

12 $1,917,186,000.

13 (2) For the National Defense Sealift Fund,

14 $506,408,000.

15 SEC. 303. ARMED FORCES RETIREMENT HOME.

16 (a) AMOUNT FOR FISCAL YEAR 2002.—There is

17 hereby authorized to be appropriated for fiscal year 2002

18 from the Armed Forces Retirement Home Trust Fund the

19 sum of $71,440,000 for the operation of the Armed Forces

20 Retirement Home, including the United States Soldiers’

21 and Airmen’s Home and the Naval Home.

22 (b) AMOUNTS PREVIOUSLY AUTHORIZED.—Of

23 amounts appropriated from the Armed Forces Retirement

24 Home Trust Fund for fiscal years before fiscal year 2002

25 by Acts enacted before the date of the enactment of this
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1 Act, an amount of $22,400,000 shall be available for those

2 fiscal years, to the same extent as is provided in appro3 priation Acts, for the development and construction of a

4 blended use, multicare facility at the Naval Home and for

5 the acquisition of a parcel of real property adjacent to the

6 Naval Home, consisting of approximately 15 acres, more

7 or less.

8 SEC. 304. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES

9 THAT BENEFIT DEPENDENTS OF MEMBERS

10 OF THE ARMED FORCES AND DEPARTMENT

11 OF DEFENSE CIVILIAN EMPLOYEES.

12 (a) CONTINUATION OF DEPARTMENT OF DEFENSE

13 PROGRAM FOR FISCAL YEAR 2002.—Of the amount au14 thorized to be appropriated by section 301(5) for oper15 ation and maintenance for Defense-wide activities,

16 $35,000,000 shall be available only for the purpose of pro17 viding educational agencies assistance (as defined in sub18 section (d)(1)) to local educational agencies.

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

20 the Secretary of Defense shall notify each local edu21 cational agency that is eligible for educational agencies as22 sistance for fiscal year 2002 of—

23 (1) that agency’s eligibility for educational

24 agencies assistance; and
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1 (2) the amount of the educational agencies as2 sistance for which that agency is eligible.

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

4 Defense shall disburse funds made available under sub5 section (a) not later than 30 days after the date on which

6 notification to the eligible local educational agencies is

7 provided pursuant to subsection (b).

8 (d) DEFINITIONS.—In this section:

9 (1) The term ‘‘educational agencies assistance’’

10 means assistance authorized under section 386(b) of

11 the National Defense Authorization Act for Fiscal

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

13 note).

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

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

16 the Elementary and Secondary Education Act of

17 1965 (20 U.S.C. 7713(9)).

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

19 SEVERE DISABILITIES.

20 Of the amount authorized to be appropriated under

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

22 under section 363 of the Floyd D. Spence National De23 fense Authorization Act for Fiscal Year 2001 (as enacted

24 into law by Public Law 106–398; 114 Stat. 1654A–77).
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1 SEC. 306. IMPROVEMENTS IN INSTRUMENTATION AND TAR2 GETS AT ARMY LIVE FIRE TRAINING RANGES.

3 (a) INCREASE IN AUTHORIZATION OF APPROPRIA4 TIONS FOR OPERATION AND MAINTENANCE, ARMY.—The

5 amount authorized to be appropriated by section 301(1)

6 for the Army for operation and maintenance is hereby in7 creased by $11,900,000 for improvements in instrumenta8 tion and targets at Army live fire training ranges.

9 (b) OFFSET.—The amount authorized to be appro10 priated by section 302(1) for the Department of Defense

11 for the Defense Working Capital Funds is hereby de12 creased by $11,900,000, with the amount of the decrease

13 to be allocated to amounts available under that section for

14 fuel purchases.

15 SEC. 307. ENVIRONMENTAL RESTORATION, FORMERLY

16 USED DEFENSE SITES.

17 Of the funds authorized to be appropriated for sec18 tion 301, $230,255,000 shall be available for Environ19 mental Restoration, Formerly Used Defense Sites.

20 SEC. 308. AUTHORIZATION OF ADDITIONAL FUNDS.

21 Of the amount authorized to be appropriated by sec22 tion 301(5), $2,000,000 may be available for the replace23 ment and refurbishment of air handlers and related con24 trol systems at Air Force medical centers.
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1 SEC. 309. FUNDS FOR RENOVATION OF DEPARTMENT OF

2 VETERANS AFFAIRS FACILITIES ADJACENT

3 TO NAVAL TRAINING CENTER, GREAT LAKES,

4 ILLINOIS.

5 (a) AVAILABILITY OF FUNDS FOR RENOVATION.—

6 Subject to subsection (b), of the amount authorized to be

7 appropriated by section 301(2) for operations and mainte8 nance for the Navy, the Secretary of the Navy may make

9 available to the Secretary of Veterans Affairs up to

10 $2,000,000 for relocation of Department of Veterans Af11 fairs activities and associated renovation of existing facili12 ties at the North Chicago Department of Veterans Affairs

13 Medical Center.

14 (b) LIMITATION.—The Secretary of the Navy may

15 make funds available under subsection (a) only after the

16 Secretary of the Navy and the Secretary of Veterans Af17 fairs enter into an appropriate agreement for the use by

18 the Secretary of the Navy of approximately 48 acres of

19 real property at the North Chicago Department of Vet20 erans Affairs property referred to in subsection (a) for ex21 pansion of the Naval Training Center, Great Lakes, Illi22 nois.
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1 Subtitle B—Environmental

2 Provisions

3 SEC. 311. ESTABLISHMENT IN ENVIRONMENTAL RESTORA4 TION ACCOUNTS OF SUB-ACCOUNTS FOR

5 UNEXPLODED ORDNANCE AND RELATED

6 CONSTITUENTS.

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

8 amended—

9 (1) by redesignating subsections (b) through (f)

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

11 (2) by inserting after subsection (a) the fol12 lowing new subsection (b):

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

14 AND RELATED CONSTITUENTS.—There is hereby estab15 lished within each environmental restoration account es16 tablished under subsection (a) a sub-account to be known

17 as the ‘Environmental Restoration Sub-Account,

18 Unexploded Ordnance and Related Constituents’, for the

19 account concerned.’’.

20 SEC. 312. ASSESSMENT OF ENVIRONMENTAL REMEDIATION

21 OF UNEXPLODED ORDNANCE AND RELATED

22 CONSTITUENTS.

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

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

25 Code, in 2002 shall include, in addition to the matters
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1 required by such section, a comprehensive assessment of

2 the extent of unexploded ordnance and related constitu3 ents at current and former facilities of the Department

4 of Defense.

5 (b) ELEMENTS.—The assessment included under

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

7 shall include, at a minimum—

8 (1) an estimate of the aggregate projected costs

9 of the remediation of unexploded ordnance and re10 lated constituents at all active facilities of the De11 partment;

12 (2) an estimate of the aggregate projected costs

13 of the remediation of unexploded ordnance and re14 lated constituents at all installations that are being,

15 or have been, closed or realigned under the base clo16 sure laws as of the date of the report under sub17 section (a);

18 (3) an estimate of the aggregate projected costs

19 of the remediation of unexploded ordnance and re20 lated constituents at all formerly used defense sites;

21 (4) a comprehensive plan for addressing the

22 unexploded ordinance and related constituents re23 ferred to in paragraphs (1) through (3), including

24 an assessment of the funding required and the pe-
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1 riod of time over which such funding will be pro2 vided; and

3 (5) an assessment of the technology available

4 for the remediation of unexploded ordnance and re5 lated constituents, an assessment of the impact of

6 improved technology on the cost of remediation of

7 such ordnance and constituents, and a plan for the

8 development and utilization of such improved tech9 nology.

10 (c) REQUIREMENTS FOR ESTIMATES.—(1) The esti11 mates of aggregate projected costs under each of para12 graphs (1), (2), and (3) of subsection (b) shall—

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

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

15 (B) set forth the differing assumptions under16 lying each such low estimate and high estimate,

17 including—

18 (i) any public uses for the facilities, instal19 lations, or sites concerned that will be available

20 after the remediation has been completed;

21 (ii) the extent of the cleanup required to

22 make the facilities, installations, or sites con23 cerned available for such uses; and

24 (iii) the technologies to be applied to uti25 lized this purpose; and
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1 (C) include, and identify separately, an estimate

2 of the aggregate projected costs of the remediation

3 of any ground water contamination that may be

4 caused by unexploded ordnance and related constitu5 ents at the facilities, installations, or sites con6 cerned.

7 (2) The high estimate of the aggregate projected

8 costs for facilities and installations under paragraph

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

10 unexploded ordnance and related constituents at such fa11 cilities and installations will be addressed, regardless of

12 whether there are any current plans to close such facilities

13 or installations or discontinue training at such facilities

14 or installations.

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

16 remediation of ground water contamination under para17 graph (1)(C) shall be based on a comprehensive assess18 ment of the risk of such contamination and of the actions

19 required to protect the ground water supplies concerned.

20 SEC. 313. DEPARTMENT OF DEFENSE ENERGY EFFICIENCY

21 PROGRAM.

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

23 carry out a program to significantly improve the energy

24 efficiency of Department of Defense facilities through

25 2010.
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1 (b) RESPONSIBLE OFFICIALS.—The Secretary shall

2 designate a senior official of the Department of Defense

3 to be responsible for managing the program for the De4 partment and a senior official of each military department

5 to be responsible for managing the program for such de6 partment.

7 (c) ENERGY EFFICIENCY GOALS.—The goal of the

8 program shall be to achieve reductions in energy consump9 tion by Department facilities as follows:

10 (1) In the case of industrial and laboratory fa11 cilities, reductions in the average energy consump12 tion per square foot of such facilities, per unit of

13 production or other applicable unit, relative to en14 ergy consumption in 1990—

15 (A) by 20 percent by 2005; and

16 (B) by 25 percent by 2010.

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

18 average energy consumption per gross square foot of

19 such facilities, relative to energy consumption per

20 gross square foot in 1985—

21 (A) by 30 percent by 2005; and

22 (B) by 35 percent by 2010.

23 (d) STRATEGIES FOR IMPROVING ENERGY EFFI24 CIENCY.—In order to achieve the goals set forth in sub-
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1 section (c), the Secretary shall, to the maximum extent

2 practicable—

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

4 designated by the Environmental Protection Agency

5 and the Department of Energy, and other energy-ef6 ficient products;

7 (2) utilize energy savings performance con8 tracts, utility energy-efficiency service contracts, and

9 other contracts designed to achieve energy conserva10 tion;

11 (3) use life-cycle cost analysis, including assess12 ment of life-cycle energy costs, in making decisions

13 about investments in products, services, construc14 tion, and other projects;

15 (4) conduct energy efficiency audits for approxi16 mately 10 percent of all Department of Defense fa17 cilities each year;

18 (5) explore opportunities for energy efficiency in

19 industrial facilities for steam systems, boiler oper20 ation, air compressor systems, industrial processes,

21 and fuel switching; and

22 (6) retire inefficient equipment on an acceler23 ated basis where replacement results in lower life24 cycle costs.
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1 (e) REPORTS.— Not later than January 1, 2002, and

2 annually thereafter through 2010, the Secretary shall sub3 mit to the congressional defense committees a report on

4 progress made toward achieving the goals set forth in sub5 section (c). Each report shall include, at a minimum—

6 (1) the percentage reduction in energy con7 sumption accomplished as of the date of such report

8 by the Department, and by each of the military de9 partments, in facilities covered by the goals set forth

10 in subsection (c)(1);

11 (2) the percentage reduction in energy con12 sumption accomplished as of the date of such report

13 by the Department, and by each of the military de14 partments, in facilities covered by the goals set forth

15 in subsection (c)(2); and

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

17 each of the military departments, to implement the

18 energy efficiency strategies required by subsection

19 (d) in the preceding calendar year.

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

21 AIR POLLUTION EMISSION REDUCTION IN22 CENTIVES.

23 Section 351(a)(2) of the National Defense Authoriza24 tion Act for Fiscal Year 1998 (Public Law 105–85; 10
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1 U.S.C. 2701 note) is amended by striking ‘‘September 30,

2 2001’’ and inserting ‘‘September 30, 2003’’.

3 SEC. 315. REIMBURSEMENT OF ENVIRONMENTAL PROTEC4 TION AGENCY FOR CERTAIN RESPONSE

5 COSTS IN CONNECTION WITH HOOPER SANDS

6 SITE, SOUTH BERWICK, MAINE.

7 (a) AUTHORITY TO REIMBURSE.—Using amounts

8 specified in subsection (c), the Secretary of the Navy may

9 pay $1,005,478 to the Hooper Sands Special Account

10 within the Hazardous Substance Superfund established by

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

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

13 Agency for the response costs incurred by the Environ14 mental Protection Agency for actions taken between May

15 12, 1992, and July 31, 2000, pursuant to the Comprehen16 sive Environmental Response, Compensation, and Liabil17 ity Act of 1980 (42 U.S.C. 9601 et seq.) at the Hooper

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

19 the Interagency Agreement entered into by the Depart20 ment of the Navy and the Environmental Protection Agen21 cy in January 2001.

22 (b) TREATMENT OF REIMBURSEMENT.—Payment of

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

24 satisfaction of amounts due from the Department of the
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1 Navy to the Environmental Protection Agency for the re2 sponse costs described in that subsection.

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

4 (a) shall be made using amounts authorized to be appro5 priated by section 301(15) to the Environmental Restora6 tion Account, Navy, established by section 2703(a)(3) of

7 title 10, United States Code.

8 SEC. 316. CONFORMITY OF SURETY AUTHORITY UNDER EN9 VIRONMENTAL RESTORATION PROGRAM

10 WITH SURETY AUTHORITY UNDER SUPER11 FUND.

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

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

14 SEC. 317. PROCUREMENT OF ALTERNATIVE FUELED AND

15 HYBRID ELECTRIC LIGHT DUTY TRUCKS.

16 (a) DEFENSE FLEETS NOT COVERED BY REQUIRE17 MENT IN ENERGY POLICY ACT OF 1992.—(1) The Sec18 retary of Defense shall coordinate with the Administrator

19 of General Services to ensure that only hybrid electric ve20 hicles are procured by the Administrator for the Depart21 ment of Defense fleet of light duty trucks that is not in

22 a fleet of vehicles to which section 303 of the Energy Pol23 icy Act of 1992 (42 U.S.C. 13212) applies.

24 (2) The Secretary, in consultation with the Adminis25 trator, may waive the policy regarding the procurement
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1 of hybrid electric vehicles in paragraph (1) to the extent

2 that the Secretary determines necessary—

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

4 the requirements of section 303 of the Energy Policy

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

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

7 to meet specific requirements of the Department of

8 Defense for capabilities of light duty trucks;

9 (B) to procure vehicles consistent with the

10 standards applicable to the procurement of fleet ve11 hicles for the Federal Government; or

12 (C) to adjust to limitations on the commercial

13 availability of light duty trucks that are hybrid elec14 tric vehicles.

15 (3) This subsection applies with respect to procure16 ments of light duty trucks in fiscal year 2005 and subse17 quent fiscal years.

18 (b) REQUIREMENT TO EXCEED REQUIREMENT IN

19 ENERGY POLICY ACT OF 1992.—(1) The Secretary of De20 fense shall coordinate with the Administrator of General

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

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

23 duty vehicles of the Department of Defense to which sec24 tion 303 of the Energy Policy Act of 1992 (42 U.S.C.

25 13212) applies—
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1 (A) five percent of the total number of such

2 trucks that are procured in each of fiscal years 2005

3 and 2006 are alternative fueled vehicles or hybrid

4 electric vehicles; and

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

6 trucks that are procured in each fiscal year after fis7 cal year 2006 are alternative fueled vehicles or hy8 brid electric vehicles.

9 (2) Light duty trucks acquired for the Department

10 of Defense that are counted to comply with section 303

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

12 a fiscal year shall be counted to determine the total num13 ber of light duty trucks procured for the Department of

14 Defense for that fiscal year for the purposes of paragraph

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

16 in that paragraph.

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

18 the same time that the President submits the budget for

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

20 31, United States Code, the Secretary shall submit to

21 Congress a report summarizing the plans for carrying out

22 subsections (a) and (b).

23 (d) DEFINITIONS.—In this section:
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1 (1) The term ‘‘hybrid electric vehicle’’ means a

2 motor vehicle that draws propulsion energy from on3 board sources of stored energy that are both—

4 (A) an internal combustion or heat engine

5 using combustible fuel; and

6 (B) a rechargeable energy storage system.

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

8 the meaning given that term in section 301 of the

9 Energy Policy Act of 1992 (43 U.S.C. 13211).

10 Subtitle C—Commissaries and Non11 appropriated Fund Instrumen12 talities

13 SEC. 321. REBATE AGREEMENTS WITH PRODUCERS OF

14 FOODS PROVIDED UNDER THE SPECIAL SUP15 PLEMENTAL FOOD PROGRAM.

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

17 amended—

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

19 and inserting ‘‘(b) FUNDING.—(1); and

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

21 paragraph:

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

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

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

25 provides for—
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1 ‘‘(i) the Secretary of Defense to procure that

2 particular brand of food, exclusive of other brands of

3 the same or similar food, for the purpose of pro4 viding the food in commissary stores of the Depart5 ment of Defense as a supplemental food under the

6 program; and

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

8 of Defense amounts equal to agreed portions of the

9 amounts paid by the department for the procure10 ment of that particular brand of food for the pro11 gram.

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

13 under chapter 137 of this title for entering into contracts

14 under this paragraph.

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

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

17 contract may be extended by a modification of the con18 tract, by exercise of an option, or by any other means.

19 Nothing in this subparagraph prohibits a contractor under

20 a contract entered into under this paragraph for any year

21 from submitting an offer for, and being awarded, a con22 tract that is to be entered into under this paragraph for

23 a successive year.

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

25 under subparagraph (A) shall be credited to the appro-
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1 priation available for carrying out the program under this

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

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

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

5 sums in the appropriation.’’.

6 SEC. 322. REIMBURSEMENT FOR USE OF COMMISSARY FA7 CILITIES BY MILITARY DEPARTMENTS FOR

8 PURPOSES OTHER THAN COMMISSARY

9 SALES.

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

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

12 the following new section:

13 ‘‘§ 2483. Commissary stores: reimbursement for use of

14 commissary facilities by military depart15 ments

16 ‘‘(a) PAYMENT REQUIRED.—The Secretary of a mili17 tary department shall pay the Defense Commissary Agen18 cy the amount determined under subsection (b) for any

19 use of a commissary facility by the military department

20 for a purpose other than commissary sales or operations

21 in support of commissary sales.

22 ‘‘(b) AMOUNT.—The amount payable under sub23 section (a) for use of a commissary facility by a military

24 department shall be equal to the share of depreciation of
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1 the facility that is attributable to that use, as determined

2 under regulations prescribed by the Secretary of Defense.

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

4 with respect to a commissary facility that is acquired, con5 structed, converted, expanded, installed, or otherwise im6 proved (in whole or in part) with the proceeds of an ad7 justment or surcharge applied under section 2486(c) of

8 this title.

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

10 Defense Commissary Agency shall credit amounts paid

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

12 account to which proceeds of an adjustment or surcharge

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

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

15 at the beginning of such chapter is amended by inserting

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

17 item:

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

military departments.’’.

18 SEC. 323. PUBLIC RELEASES OF COMMERCIALLY VALU19 ABLE INFORMATION OF COMMISSARY

20 STORES.

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

22 title 10, United States Code, is amended to read as fol23 lows:
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1 ‘‘§ 2487. Commissary stores: release of certain com2 mercially valuable information to the

3 public

4 ‘‘(a) AUTHORITY TO LIMIT RELEASE.—(1) The Sec5 retary of Defense may limit the release to the public of

6 any information described in paragraph (2) if the Sec7 retary determines that it is in the best interest of the De8 partment of Defense to limit the release of such informa9 tion. If the Secretary determines to limit the release of

10 any such information, the Secretary may provide for lim11 ited release of such information in accordance with sub12 section (b).

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

14 ‘‘(A) Information contained in the computerized

15 business systems of commissary stores or the De16 fense Commissary Agency that is collected through

17 or in connection with the use of electronic scanners

18 in commissary stores, including the following infor19 mation:

20 ‘‘(i) Data relating to sales of goods or serv21 ices.

22 ‘‘(ii) Demographic information on cus23 tomers.

24 ‘‘(iii) Any other information pertaining to

25 commissary transactions and operations.
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1 ‘‘(B) Business programs, systems, and applica2 tions (including software) relating to commissary op3 erations that were developed with funding derived

4 from commissary surcharges.

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

6 Defense may, using competitive procedures, enter into a

7 contract to sell information described in subsection (a)(2).

8 ‘‘(2) The Secretary of Defense may release, without

9 charge, information on an item sold in commissary stores

10 to—

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

12 item; or

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

14 when necessary to accommodate electronic ordering

15 of the item by commissary stores.

16 ‘‘(3) The Secretary of Defense may, by contract en17 tered into with a business, grant to the business a license

18 to use business programs referred to in subsection

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

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

21 based on the costs of similar programs developed and mar22 keted by businesses in the private sector, determined by

23 means of surveys.

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

25 shall specify the amount to be paid for information re-
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1 leased or a license granted under the contract, as the case

2 may be.

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

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

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

6 or that provides information making it possible to identify

7 any customer.

8 ‘‘(d) RECEIPTS.—Amounts received by the Secretary

9 under this section shall be credited to funds derived from

10 commissary surcharges, shall be merged with those funds,

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

12 with which merged.

13 ‘‘(e) DEFINITIONS.—In this section, the term ‘com14 missary surcharge’ means any adjustment or surcharge

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

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

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

18 to read as follows:

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

to the public.’’.
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1 Subtitle D—Other Matters

2 SEC. 331. CODIFICATION OF AUTHORITY FOR DEPARTMENT

3 OF DEFENSE SUPPORT FOR COUNTERDRUG

4 ACTIVITIES OF OTHER GOVERNMENTAL

5 AGENCIES.

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

7 States Code, is amended by adding at the end the fol8 lowing new section:

9 ‘‘§ 383. Additional support for counterdrug activities

10 of other agencies

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

12 of Defense may provide support for the counterdrug activi13 ties of any other department or agency of the Federal Gov14 ernment or of any State, local, or foreign law enforcement

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

16 if such support is requested—

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

18 the counterdrug activities of the department or

19 agency of the Federal Government, in the case of

20 support for the department or agency;

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

22 local government, in the case of support for the

23 State or local law enforcement agency; or

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

25 or agency of the Federal Government that has
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1 counterdrug responsibilities, in the case of support

2 for a foreign law enforcement agency.

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

4 the Secretary may provide support under subsection (a)

5 are the following:

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

7 that has been made available to any department or

8 agency of the Federal Government or to any State

9 or local government by the Department of Defense

10 for the purposes of—

11 ‘‘(A) preserving the potential future utility

12 of such equipment for the Department of De13 fense; and

14 ‘‘(B) upgrading such equipment to ensure

15 compatibility of that equipment with other

16 equipment used by the Department of Defense.

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

18 equipment (including computer software), other than

19 equipment referred to in subparagraph (A) for the

20 purpose of—

21 ‘‘(A) ensuring that the equipment being

22 maintained or repaired is compatible with

23 equipment used by the Department of Defense;

24 and
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1 ‘‘(B) upgrading such equipment to ensure

2 the compatibility of that equipment with equip3 ment used by the Department of Defense.

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

5 United States and foreign countries (including per

6 diem expenses associated with such transportation),

7 and the transportation of supplies and equipment,

8 for the purpose of facilitating counterdrug activities

9 within or outside the United States.

10 ‘‘(4) The establishment (including an unspec11 ified minor military construction project) and oper12 ation of bases of operations or training facilities for

13 the purpose of facilitating counterdrug activities of

14 the Department of Defense or any Federal, State, or

15 local law enforcement agency within or outside the

16 United States or counterdrug activities of a foreign

17 law enforcement agency outside the United States.

18 ‘‘(5) Counterdrug related training of law en19 forcement personnel of the Federal Government, of

20 State and local governments, and of foreign coun21 tries, including associated support expenses for

22 trainees and the provision of materials necessary to

23 carry out such training.

24 ‘‘(6) The detection, monitoring, and commu25 nication of the movement of—
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1 ‘‘(A) air and sea traffic within 25 miles of

2 and outside the geographic boundaries of the

3 United States; and

4 ‘‘(B) surface traffic outside the geographic

5 boundary of the United States and within the

6 United States not to exceed 25 miles of the

7 boundary if the initial detection occurred out8 side of the boundary.

9 ‘‘(7) Construction of roads and fences and in10 stallation of lighting to block drug smuggling cor11 ridors across international boundaries of the United

12 States.

13 ‘‘(8) Establishment of command, control, com14 munications, and computer networks for improved

15 integration of law enforcement, active military, and

16 National Guard activities.

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

18 analysis services.

19 ‘‘(10) Aerial and ground reconnaissance.

20 ‘‘(c) LIMITATION ON COUNTERDRUG REQUIRE21 MENTS.—The Secretary of Defense may not limit the re22 quirements for which support may be provided under sub23 section (a) only to critical, emergent, or unanticipated re24 quirements.
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1 ‘‘(d) CONTRACT AUTHORITY.—In carrying out sub2 section (a), the Secretary of Defense may acquire services

3 or equipment by contract for support provided under that

4 subsection if the Department of Defense would normally

5 acquire such services or equipment by contract for the

6 purpose of conducting a similar activity for the Depart7 ment of Defense.

8 ‘‘(e) LIMITED WAIVER OF PROHIBITION—Notwith9 standing section 376 of this title, the Secretary of Defense

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

11 case in which the Secretary determines that the provision

12 of such support would adversely affect the military pre13 paredness of the United States in the short term if the

14 Secretary determines that the importance of providing

15 such support outweighs such short-term adverse effect.

16 ‘‘(f) CONDUCT OF TRAINING OR OPERATION TO AID

17 CIVILIAN AGENCIES.—In providing support pursuant to

18 subsection (a), the Secretary of Defense may plan and exe19 cute otherwise valid military training or operations (in20 cluding training exercises undertaken pursuant to section

21 1206(a) of the National Defense Authorization Act for

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

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

24 civilian law enforcement agencies.
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1 ‘‘(g) RELATIONSHIP TO OTHER LAWS.—(1) The au2 thority provided in this section for the support of

3 counterdrug activities by the Department of Defense is in

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

5 subject to the requirements of any other provision of this

6 chapter.

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

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

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

10 ‘‘(h) CONGRESSIONAL NOTIFICATION OF FACILITIES

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

12 military construction project described in paragraph (2),

13 the Secretary of Defense shall submit to the committees

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

15 the decision, including the justification for the project and

16 the estimated cost of the project. The project may be com17 menced only after the end of the 21-day period beginning

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

19 committees.

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

21 military construction project that—

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

23 of a Department of Defense facility for the purpose

24 set forth in subsection (b)(4); and
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1 ‘‘(B) has an estimated cost of more than

2 $500,000.

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

4 as follows:

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

6 the Committee on Appropriations of the Senate.

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

8 the Committee on Appropriations of the House of

9 Representatives.’’.

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

11 chapter is amended by adding at the end the following

12 new item:

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

13 (b) REPEAL OF SUPERSEDED PROVISION.—Section

14 1004 of the National Defense Authorization Act for Fiscal

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

16 repealed.

17 (c) SAVINGS PROVISION.—The repeal of section 1004

18 of the National Defense Authorization Act for Fiscal Year

19 1991 by subsection (b) shall not affect any support pro20 vided under that section that is ongoing as of the date

21 of the enactment of this Act. The support may be contin22 ued in accordance with section 383 of title 10, United

23 States Code, as added by subsection (a).
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1 SEC. 332. EXCLUSION OF CERTAIN EXPENDITURES FROM

2 LIMITATION ON PRIVATE SECTOR PERFORM3 ANCE OF DEPOT-LEVEL MAINTENANCE.

4 (a) AMOUNTS EXCLUDED.—Amounts expended out

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

6 of a depot-level maintenance and repair workload by non7 Federal Government personnel at a Center of Industrial

8 and Technical Excellence designated pursuant to section

9 2474(a) of title 10, United States Code, shall not be

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

11 the personnel are provided by private industry pursuant

12 to a public-private partnership undertaken by the Center

13 under section 2474(b) of such title.

14 (b) FUNDS FOR FISCAL YEARS 2002 THROUGH

15 2004.—The funds referred to in subsection (a) are funds

16 available to the military departments for depot-level main17 tenance and repair workloads for fiscal years 2002, 2003,

18 and 2004.

19 SEC. 333. REPAIR, RESTORATION, AND PRESERVATION OF

20 LAFAYETTE ESCADRILLE MEMORIAL,

21 MARNES LA-COQUETTE, FRANCE.

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

23 the Air Force may, using amounts specified in subsection

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

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

26 and preservation of the structure, plaza, and surrounding
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1 grounds of the Lafayette Escadrille Memorial in Marnes

2 la-Coquette, France.

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

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

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

6 this section shall be used solely for the purposes described

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

8 remuneration of any entity or individual associated with

9 fundraising for any project for such purposes.

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

11 this section shall be derived from amounts authorized to

12 be appropriated by section 301(4) for operation and main13 tenance for the Air Force for fiscal year 2002.

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

15 INTRANET CONTRACT.

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

17 (b) of section 814 of the Floyd D. Spence National De18 fense Authorization Act for Fiscal Year 2001 (as enacted

19 by Public Law 106–398; 114 Stat. 1654A–215) is amend20 ed by adding at the end the following new paragraphs:

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

22 submittal of the joint certification referred to in paragraph

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

24 work stations under the Navy-Marine Corps Intranet con25 tract, with the number of work stations to be ordered in
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1 each additional increment to be determined by the Under

2 Secretary of Defense for Acquisition, Technology, and Lo3 gistics.

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

5 in an additional increment for purposes of subparagraph

6 (A), the Under Secretary of Defense for Acquisition, Tech7 nology, and Logistics shall submit to the congressional de8 fense committees a report, current as of the date of such

9 determination, on the following:

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

11 the Navy-Marine Corps Intranet.

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

13 of the Navy-Marine Corps Intranet program.

14 ‘‘(iii) The number of work stations to be con15 tracted for in the additional increment.

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

17 Technology, and Logistics may not make a determination

18 to order any number of work stations to be contracted for

19 under subparagraph (A) in excess of the number per20 mitted under paragraph (2) until—

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

22 test and user evaluation, observed by the Depart23 ment of Defense, of the work stations operating on

24 the Navy-Marine Corps Intranet at the first three
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1 sites under the Navy-Marine Corps Intranet pro2 gram; and

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

4 has certified to the Secretary of the Navy and the

5 Chief Information Officer of the Department of De6 fense that the results of the test and evaluation re7 ferred to in clause (i) are acceptable.

8 ‘‘(D) The Under Secretary of Defense for Acquisi9 tion, Technology, and Logistics may not make a deter10 mination to order any number of work stations to be con11 tracted for under subparagraph (A) in excess of the num12 ber provided for under subparagraph (C) until—

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

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

15 Corps Intranet;

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

17 have met service-level agreements specified in the

18 Navy-Marine Corps Intranet contract for not less

19 than 30 days, as determined by contractor perform20 ance measurement under oversight by the Depart21 ment of the Navy; and

22 ‘‘(iii) the Chief Information Officer of the De23 partment of Defense and the Assistant Secretary of

24 Defense for Command, Control, Communications,

25 and Intelligence jointly certify to the congressional
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1 defense committees that the results of testing of the

2 work stations referred to in clause (i) are accept3 able.’’.

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

5 amended to read as follows:

6 ‘‘(f) DEFINITIONS.—In this section:

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

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

9 arrangement of the Department of the Navy with

10 the commercial sector that imposes on the contractor

11 a responsibility for, and transfers to the contractor

12 the risk of, providing and managing the significant

13 majority of desktop, server, infrastructure, and com14 munication assets and services of the Department of

15 the Navy.

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

17 station under the Navy-Marine Corps Intranet con18 tract, means transfer of the legacy information in19 frastructure and systems of the user of the work sta20 tion to Navy-Marine Corps Intranet infrastructure

21 and systems of the work station under the Navy-Ma22 rine Corps Intranet contract and performance there23 of consistent with the service-level agreements speci24 fied in the Navy-Marine Corps Intranet contract.’’.
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1 SEC. 335. REVISION OF AUTHORITY TO WAIVE LIMITATION

2 ON PERFORMANCE OF DEPOT-LEVEL MAIN3 TENANCE.

4 (a) IN GENERAL.—Section 2466(c) of title 10,

5 United States Code, is amended to read as follows:

6 ‘‘(c) WAIVER OF LIMITATION.—(1) The Secretary of

7 Defense may waive the limitation in subsection (a) for a

8 fiscal year if—

9 ‘‘(A) the Secretary of Defense determines that

10 the waiver is necessary for reasons of national secu11 rity; and

12 ‘‘(B) the Secretary of Defense submits to Con13 gress a notification of the waiver together with the

14 reasons for the waiver; and

15 ‘‘(2) The Secretary of Defense may not delegate the

16 authority to exercise the waiver authority under paragraph

17 (1).’’.

18 (b) REPORT.—The Secretary of Defense shall provide

19 a report to Congress not later than January 31, 2002 that

20 outlines the Secretary’s strategy regarding the operations

21 of the public depots.

22 SEC. 336. REAUTHORIZATION OF WARRANTY CLAIMS RE23 COVERY PILOT PROGRAM.

24 (a) EXTENSION OF AUTHORITY.—Subsection (f) of

25 section 391 of the National Defense Authorization Act for

26 Fiscal Year 1998 (Public Law 105–85; 111 Stat. 1716;
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1 10 U.S.C. 2304 note) is amended by striking ‘‘September

2 30, 1999’’ and inserting ‘‘September 30, 2003’’.

3 (b) REPORTING REQUIREMENTS.—Subsection (g) of

4 such section is amended—

5 (1) in paragraph (1), by striking ‘‘January 1,

6 2000’’ and inserting ‘‘January 1, 2003’’; and

7 (2) in paragraph (2), by striking ‘‘March 1,

8 2000’’ and inserting ‘‘March 1, 2003’’.

9 SEC. 337. FUNDING FOR LAND FORCES READINESS-INFOR10 MATION OPERATIONS SUSTAINMENT.

11 Of the amount authorized to be appropriated by sec12 tion 301(6), $5,000,000 may be available for land forces

13 readiness-information operations sustainment.

14 SEC. 338. DEFENSE LANGUAGE INSTITUTE FOREIGN LAN15 GUAGE CENTER EXPANDED ARABIC LAN16 GUAGE PROGRAM.

17 Of the amount authorized to be appropriated by sec18 tion 301(1) for operation and maintenance for the Army,

19 $650,000 may be available for the Defense Language In20 stitute Foreign Language Center (DLIFLC) for an ex21 panded Arabic language program.

22 SEC. 339. CONSEQUENCE MANAGEMENT TRAINING.

23 Of the amount authorized to be appropriated by sec24 tion 301(5), $5,000,000 may be available for the training

25 of members of the Armed Forces (including reserve com-
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1 ponent personnel) in the management of the consequences

2 of an incident involving the use or threat of use of a weap3 on of mass destruction.

4 SEC. 340. CRITICAL INFRASTRUCTURE PROTECTION INITIA5 TIVE OF THE NAVY.

6 Of the amount authorized to be appropriated by sec7 tion 301(2), $6,000,000 shall be available for the critical

8 infrastructure protection initiative of the Navy.

9 TITLE IV—MILITARY

10 PERSONNEL AUTHORIZATIONS

11 Subtitle A—Active Forces

12 SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

13 The Armed Forces are authorized strengths for active

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

15 (1) The Army, 480,000.

16 (2) The Navy, 376,000.

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

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

19 SEC. 402. AUTHORIZED DAILY AVERAGE ACTIVE DUTY

20 STRENGTH FOR NAVY ENLISTED MEMBERS

21 IN PAY GRADE E–8.

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

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

24 ‘‘in the case of the Army’’.
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1 (b) APPLICABILITY.—The amendment made by sub2 section (a) shall take effect on October 1, 2001, and shall

3 apply with respect to fiscal years beginning on or after

4 that date.

5 Subtitle B—Reserve Forces

6 SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

8 strengths for Selected Reserve personnel of the reserve

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

10 (1) The Army National Guard of the United

11 States, 350,000.

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

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

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

15 (5) The Air National Guard of the United

16 States, 108,400.

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

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

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

20 subsection (a) for the Selected Reserve of any reserve com21 ponent shall be proportionately reduced by—

22 (1) the total authorized strength of units orga23 nized to serve as units of the Selected Reserve of

24 such component which are on active duty (other

25 than for training) at the end of the fiscal year; and
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1 (2) the total number of individual members not

2 in units organized to serve as units of the Selected

3 Reserve of such component who are on active duty

4 (other than for training or for unsatisfactory partici5 pation in training) without their consent at the end

6 of the fiscal year.

7 Whenever such units or such individual members are re8 leased from active duty during any fiscal year, the end

9 strength prescribed for such fiscal year for the Selected

10 Reserve of such reserve component shall be proportion11 ately increased by the total authorized strengths of such

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

13 SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE

14 DUTY IN SUPPORT OF THE RESERVES.

15 Within the end strengths prescribed in section

16 411(a), the reserve components of the Armed Forces are

17 authorized, as of September 30, 2002, the following num18 ber of Reserves to be serving on full-time active duty or

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

20 Guard, for the purpose of organizing, administering, re21 cruiting, instructing, or training the reserve components:

22 (1) The Army National Guard of the United

23 States, 23,698.

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

25 (3) The Naval Reserve, 14,811.
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1 (4) The Marine Corps Reserve, 2,261.

2 (5) The Air National Guard of the United

3 States, 11,591.

4 (6) The Air Force Reserve, 1,437.

5 SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS

6 (DUAL STATUS).

7 The minimum number of military technicians (dual

8 status) as of the last day of fiscal year 2002 for the re9 serve components of the Army and the Air Force (notwith10 standing section 129 of title 10, United States Code) shall

11 be the following:

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

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

14 States, 23,615.

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

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

17 States, 22,422.

18 SEC. 414. FISCAL YEAR 2002 LIMITATION ON NON-DUAL STA19 TUS TECHNICIANS.

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

21 technicians employed by the reserve components of the

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

23 not exceed the following:

24 (1) For the Army Reserve, 1,095.
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1 (2) For the Army National Guard of the United

2 States, 1,600.

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

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

5 States, 350.

6 (b) NON-DUAL STATUS TECHNICIANS DEFINED.—In

7 this section, the term ‘‘non-dual status technician’’ has the

8 meaning given the term in section 10217(a) of title 10,

9 United States Code.

10 SEC. 415. LIMITATIONS ON NUMBERS OF RESERVE PER11 SONNEL SERVING ON ACTIVE DUTY OR FULL12 TIME NATIONAL GUARD DUTY IN CERTAIN

13 GRADES FOR ADMINISTRATION OF RESERVE

14 COMPONENTS.

15 (a) OFFICERS.—The text of section 12011 of title 10,

16 United States Code, is amended to read as follows:

17 ‘‘(a) LIMITATIONS.—(1) Of the total number of mem18 bers of a reserve component who are serving on full-time

19 reserve component duty at the end of any fiscal year, the

20 number of those members who may be serving in each of

21 the grades of major, lieutenant colonel, and colonel may

22 not, as of the end of that fiscal year, exceed the number

23 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
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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

12,000 .................................................................... 1,668 864 252

13,000 .................................................................... 1,804 924 262

14,000 .................................................................... 1,940 984 272

15,000 .................................................................... 2,075 1,044 282

16,000 .................................................................... 2,210 1,104 291

17,000 .................................................................... 2,345 1,164 300

18,000 .................................................................... 2,479 1,223 309

19,000 .................................................................... 2,613 1,282 318

20,000 .................................................................... 2,747 1,341 327

21,000 .................................................................... 2,877 1,400 336

Army National Guard:

20,000 .................................................................... 1,500 850 325

22,000 .................................................................... 1,650 930 350

24,000 .................................................................... 1,790 1,010 370

26,000 .................................................................... 1,930 1,085 385

28,000 .................................................................... 2,070 1,160 400

30,000 .................................................................... 2,200 1,235 405

32,000 .................................................................... 2,330 1,305 408

34,000 .................................................................... 2,450 1,375 411

36,000 .................................................................... 2,570 1,445 411

38,000 .................................................................... 2,670 1,515 411

40,000 .................................................................... 2,770 1,580 411

42,000 .................................................................... 2,837 1,644 411

Marine Corps Reserve:

1,100 ...................................................................... 106 56 20

1,200 ...................................................................... 110 60 21

1,300 ...................................................................... 114 63 22

1,400 ...................................................................... 118 66 23

1,500 ...................................................................... 121 69 24

1,600 ...................................................................... 124 72 25

1,700 ...................................................................... 127 75 26

1,800 ...................................................................... 130 78 27

1,900 ...................................................................... 133 81 28

2,000 ...................................................................... 136 84 29

2,100 ...................................................................... 139 87 30

2,200 ...................................................................... 141 90 31

2,300 ...................................................................... 143 92 32

2,400 ...................................................................... 145 94 33

2,500 ...................................................................... 147 96 34

2,600 ...................................................................... 149 98 35

Air Force Reserve:

500 ......................................................................... 83 85 50

1,000 ...................................................................... 155 165 95

1,500 ...................................................................... 220 240 135

2,000 ...................................................................... 285 310 170

2,500 ...................................................................... 350 369 203

3,000 ...................................................................... 413 420 220

3,500 ...................................................................... 473 464 230

4,000 ...................................................................... 530 500 240

4,500 ...................................................................... 585 529 247

5,000 ...................................................................... 638 550 254

5,500 ...................................................................... 688 565 261

6,000 ...................................................................... 735 575 268

7,000 ...................................................................... 770 595 280

8,000 ...................................................................... 805 615 290

10,000 .................................................................... 835 635 300

Air National Guard:

5,000 ...................................................................... 333 335 251

6,000 ...................................................................... 403 394 260

7,000 ...................................................................... 472 453 269

8,000 ...................................................................... 539 512 278

9,000 ...................................................................... 606 571 287

10,000 .................................................................... 673 630 296

11,000 .................................................................... 740 688 305

12,000 .................................................................... 807 742 314

13,000 .................................................................... 873 795 323
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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

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

3 duty at the end of any fiscal year, the number of those

4 members who may be serving in each of the grades of lieu5 tenant commander, commander, and captain may not, as

6 of the end of that fiscal year, exceed the number deter7 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 commander Commander Captain

10,000 .................................................................... 807 447 141

11,000 .................................................................... 867 467 153

12,000 .................................................................... 924 485 163

13,000 .................................................................... 980 503 173

14,000 .................................................................... 1,035 521 183

15,000 .................................................................... 1,088 538 193

16,000 .................................................................... 1,142 555 203

17,000 .................................................................... 1,195 565 213

18,000 .................................................................... 1,246 575 223

19,000 .................................................................... 1,291 585 233

20,000 .................................................................... 1,334 595 242

21,000 .................................................................... 1,364 603 250

22,000 .................................................................... 1,384 610 258

23,000 .................................................................... 1,400 615 265

24,000 .................................................................... 1,410 620 270.

8 ‘‘(b) DETERMINATIONS BY INTERPOLATION.—If the

9 total number of members of a reserve component serving

10 on full-time reserve component duty is between any two

11 consecutive numbers in the first column of the appropriate

12 table in paragraph (1) or (2) of subsection (a), the cor13 responding authorized strengths for each of the grades

14 shown in that table for that component are determined
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1 by mathematical interpolation between the respective

2 numbers of the two strengths. If the total number of mem3 bers of a reserve component serving on full-time reserve

4 component duty is more or less than the highest or lowest

5 number, respectively, set forth in the first column of the

6 appropriate table in paragraph (1) or (2) of subsection

7 (a), the Secretary concerned shall fix the corresponding

8 strengths for the grades shown in that table at the same

9 proportion as is reflected in the nearest limit shown in

10 the table.

11 ‘‘(c) REALLOCATIONS TO LOWER GRADES.—When12 ever the number of officers serving in any grade for duty

13 described in subsection (a) is less than the number author14 ized for that grade under this section, the difference be15 tween the two numbers may be applied to increase the

16 number authorized under this section for any lower grade.

17 ‘‘(d) SECRETARIAL WAIVER.—Upon determining that

18 it is in the national interest to do so, the Secretary of

19 Defense may increase for a particular fiscal year the num20 ber of reserve officers that may be on full-time reserve

21 component duty for a reserve component in a grade re22 ferred to in a table in subsection (a) by a number that

23 does not exceed the number equal to 5 percent of the max24 imum number specified for the grade in that table.
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1 ‘‘(e) FULL-TIME RESERVE COMPONENT DUTY DE2 FINED.—In this section, the term ‘full-time reserve com3 ponent duty’ means the following duty:

4 ‘‘(1) Active duty described in sections 10211,

5 10302, 10303, 10304, 10305, 12310, or 12402 of

6 this title.

7 ‘‘(2) Full-time National Guard duty (other than

8 for training) under section 502(f) of title 32.

9 ‘‘(3) Active duty described in section 708 of

10 title 32.’’.

11 (b) SENIOR ENLISTED MEMBERS.—The text of sec12 tion 12012 of title 10, United States Code, is amended

13 to read as follows:

14 ‘‘(a) LIMITATIONS.—(1) Of the total number of mem15 bers of a reserve component who are serving on full-time

16 reserve component duty at the end of any fiscal year, the

17 number of those members in each of pay grades of

18 E–8 and E–9 who may be serving on active duty under

19 section 10211 or 12310, or on full-time National Guard

20 duty under the authority of section 502(f) of title 32

21 (other than for training) in connection with organizing,

22 administering, recruiting, instructing, or training the re23 serve components or the National Guard may not, as of

24 the end of that fiscal year, exceed the number determined

25 in accordance with the following table:
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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 Reserve:

10,000 ...................................................................................................... 1,052 154

11,000 ...................................................................................................... 1,126 168

12,000 ...................................................................................................... 1,195 180

13,000 ...................................................................................................... 1,261 191

14,000 ...................................................................................................... 1,327 202

15,000 ...................................................................................................... 1,391 213

16,000 ...................................................................................................... 1,455 224

17,000 ...................................................................................................... 1,519 235

18,000 ...................................................................................................... 1,583 246

19,000 ...................................................................................................... 1,647 257

20,000 ...................................................................................................... 1,711 268

21,000 ...................................................................................................... 1,775 278

Army National Guard:

20,000 ...................................................................................................... 1,650 550

22,000 ...................................................................................................... 1,775 615

24,000 ...................................................................................................... 1,900 645

26,000 ...................................................................................................... 1,945 675

28,000 ...................................................................................................... 1,945 705

30,000 ...................................................................................................... 1,945 725

32,000 ...................................................................................................... 1,945 730

34,000 ...................................................................................................... 1,945 735

36,000 ...................................................................................................... 1,945 738

38,000 ...................................................................................................... 1,945 741

40,000 ...................................................................................................... 1,945 743

42,000 ...................................................................................................... 1,945 743

Naval Reserve:

10,000 ...................................................................................................... 340 143

11,000 ...................................................................................................... 364 156

12,000 ...................................................................................................... 386 169

13,000 ...................................................................................................... 407 182

14,000 ...................................................................................................... 423 195

15,000 ...................................................................................................... 435 208

16,000 ...................................................................................................... 447 221

17,000 ...................................................................................................... 459 234

18,000 ...................................................................................................... 471 247

19,000 ...................................................................................................... 483 260

20,000 ...................................................................................................... 495 273

21,000 ...................................................................................................... 507 286

22,000 ...................................................................................................... 519 299

23,000 ...................................................................................................... 531 312

24,000 ...................................................................................................... 540 325

Marine Corps Reserve:

1,100 ........................................................................................................ 50 11

1,200 ........................................................................................................ 55 12

1,300 ........................................................................................................ 60 13

1,400 ........................................................................................................ 65 14

1,500 ........................................................................................................ 70 15

1,600 ........................................................................................................ 75 16

1,700 ........................................................................................................ 80 17

1,800 ........................................................................................................ 85 18

1,900 ........................................................................................................ 89 19

2,000 ........................................................................................................ 93 20

2,100 ........................................................................................................ 96 21

2,200 ........................................................................................................ 99 22

2,300 ........................................................................................................ 101 23

2,400 ........................................................................................................ 103 24

2,500 ........................................................................................................ 105 25

2,600 ........................................................................................................ 107 26

Air Force Reserve:

500 ........................................................................................................... 75 40

1,000 ........................................................................................................ 145 75

1,500 ........................................................................................................ 208 105

2,000 ........................................................................................................ 270 130

2,500 ........................................................................................................ 325 150

3,000 ........................................................................................................ 375 170
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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

3,500 ........................................................................................................ 420 190

4,000 ........................................................................................................ 460 210

4,500 ........................................................................................................ 495 230

5,000 ........................................................................................................ 530 250

5,500 ........................................................................................................ 565 270

6,000 ........................................................................................................ 600 290

7,000 ........................................................................................................ 670 330

8,000 ........................................................................................................ 740 370

10,000 ...................................................................................................... 800 400

Air National Guard

5,000 ........................................................................................................ 1,020 405

6,000 ........................................................................................................ 1,070 435

7,000 ........................................................................................................ 1,120 465

8,000 ........................................................................................................ 1,170 490

9,000 ........................................................................................................ 1,220 510

10,000 ...................................................................................................... 1,270 530

11,000 ...................................................................................................... 1,320 550

12,000 ...................................................................................................... 1,370 570

13,000 ...................................................................................................... 1,420 589

14,000 ...................................................................................................... 1,470 608

15,000 ...................................................................................................... 1,520 626

16,000 ...................................................................................................... 1,570 644

17,000 ...................................................................................................... 1,620 661

18,000 ...................................................................................................... 1,670 678

19,000 ...................................................................................................... 1,720 695

20,000 ...................................................................................................... 1,770 712.

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
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1 table at the same proportion as is reflected in the nearest

2 limit shown in the table.

3 ‘‘(c) REALLOCATIONS TO LOWER GRADE.—Whenever

4 the number of officers serving in pay grade E–9 for duty

5 described in subsection (a) is less than the number author6 ized for that grade under this section, the difference be7 tween the two numbers may be applied to increase the

8 number authorized under this section for pay grade E–

9 8.

10 ‘‘(d) SECRETARIAL WAIVER.—Upon determining that

11 it is in the national interest to do so, the Secretary of

12 Defense may increase for a particular fiscal year the num13 ber of reserve enlisted members that may be on active duty

14 or full-time National Guard duty as described in sub15 section (a) for a reserve component in a pay grade referred

16 to in a table in subsection (a) by a number that does not

17 exceed the number equal to 5 percent of the maximum

18 number specified for that grade and reserve component

19 in the table.

20 ‘‘(e) FULL-TIME RESERVE COMPONENT DUTY DE21 FINED.—In this section, the term ‘full-time reserve com22 ponent duty’ has the meaning given the term in section

23 12011(e) of this title.’’.

24 (c) EFFECTIVE DATE.—The amendments made by

25 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 (e) REPEAL OF LIMITATION ON NUMBER OF OFFI12 CERS ON ACTIVE DUTY IN THE GRADES OF GENERAL OR

13 ADMIRAL.—(1) Section 528 of title 10, United States

14 Code, is repealed.

15 (2) The table of sections at the beginning of chapter

16 32 of such title is amended by striking the item relating

17 to section 528.

18 SEC. 502. REDUCTION OF TIME-IN-GRADE REQUIREMENT

19 FOR ELIGIBILITY FOR PROMOTION OF FIRST

20 LIEUTENANTS AND LIEUTENANTS (JUNIOR

21 GRADE).

22 Paragraph (1) of section 619(a) of title 10, United

23 States Code, is amended by striking ‘‘the following period

24 of service’’ and all that follows through the end of the
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1 paragraph and inserting ‘‘eighteen months of service in

2 the grade in which he holds a permanent appointment.’’.

3 SEC. 503. PROMOTION OF OFFICERS TO THE GRADE OF

4 CAPTAIN IN THE ARMY, AIR FORCE, OR MA5 RINE CORPS OR TO THE GRADE OF LIEUTEN6 ANT IN THE NAVY WITHOUT SELECTION

7 BOARD ACTION.

8 (a) ACTIVE-DUTY LIST PROMOTIONS.—(1) Section

9 611(a) of title 10, United States Code, is amended by

10 striking ‘‘Under’’ and inserting ‘‘Except in the case of pro11 motions recommended under section 624(a)(3) of this

12 title, under’’.

13 (2) Section 624(a) of such title is amended by adding

14 at the end the following new paragraph (3):

15 ‘‘(3) The President may, upon a recommendation of

16 the Secretary of the military department concerned ap17 proved by the President, promote to the grade of captain

18 (for officers of the Regular Army, Regular Air Force, or

19 Regular Marine Corps) or lieutenant (for officers of the

20 Regular Navy) all fully qualified officers on the active-duty

21 list in the permanent or temporary grade of first lieuten22 ant or lieutenant (junior grade), respectively, who would

23 be eligible for consideration for promotion to the next

24 higher grade by a selection board convened under section

25 611(a) of this title. The Secretary of a military depart-
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1 ment may make such a recommendation whenever the Sec2 retary determines that all such officers are needed in the

3 next higher grade to accomplish mission objectives. Pro4 motions under this paragraph shall be effectuated under

5 regulations prescribed by the Secretary of the military de6 partment concerned.’’.

7 (3) Section 631 of such title is amended by adding

8 at the end the following new subsection (d):

9 ‘‘(d) For the purposes of this chapter—

10 ‘‘(1) a recommendation made by the Secretary

11 of the military department concerned under section

12 624(a)(3) of this title that is approved by the Presi13 dent shall be treated in the same manner as a report

14 of a promotion selection board convened under sec15 tion 611(a) of this title that is approved by the

16 President; and

17 ‘‘(2) an officer of the Regular Army, Regular

18 Air Force, or Regular Marine Corps who holds the

19 regular grade of first lieutenant, and an officer of

20 the Regular Navy who holds the regular grade of

21 lieutenant (junior grade), shall be treated as having

22 failed of selection for promotion if the Secretary of

23 the military department concerned determines that

24 the officer would be eligible for consideration for

25 promotion to the next higher grade by a selection
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1 board convened under section 611(a) of this title but

2 is not fully qualified for promotion when recom3 mending for promotion under section 624(a)(3) of

4 this title all fully qualified officers of the officer’s

5 armed force in such grade who would be eligible for

6 such consideration.’’.

7 (b) RESERVE ACTIVE-STATUS LIST PROMOTIONS.—

8 (1) Section 14101(a) of such title is amended by striking

9 ‘‘Whenever’’ and inserting ‘‘Except in the case of pro10 motions recommended under section 14308(b)(4) of this

11 title, whenever’’.

12 (2) Section 14308(b) of such title is amended by add13 ing at the end the following new paragraph (4):

14 ‘‘(4) The President may, upon a recommendation of

15 the Secretary of the military department concerned ap16 proved by the President, promote to the grade of captain

17 (for officers of a reserve component of the Army, Air

18 Force, or Marine Corps) or lieutenant (for officers of the

19 Naval Reserve) all fully qualified officers on the reserve

20 active-status list in the permanent grade of first lieutenant

21 or lieutenant (junior grade), respectively, who would be eli22 gible for consideration for promotion to the next higher

23 grade by a selection board convened under section

24 14101(a) of this title. The Secretary of a military depart25 ment may make such a recommendation whenever the Sec-
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1 retary determines that all such officers are needed in the

2 next higher grade to accomplish mission objectives. Pro3 motions under this paragraph shall be effectuated under

4 regulations prescribed by the Secretary of the military de5 partment concerned.’’.

6 (3) Section 14504 of such title is amended by adding

7 at the end the following new subsection (c):

8 ‘‘(c) For the purposes of this chapter—

9 ‘‘(1) a recommendation made by the Secretary

10 of the military department concerned under section

11 14308(b)(4) of this title that is approved by the

12 President shall be treated the same as a report of

13 a promotion selection board convened under section

14 14101(a) of this title that is approved by the Presi15 dent; and

16 ‘‘(2) an officer on a reserve active-status list

17 who holds the grade of first lieutenant (in the case

18 of an officer in a reserve component of the Army,

19 Air Force, or Marine Corps) or the grade of lieuten20 ant (junior grade) (in the case of an officer of the

21 Naval Reserve) shall be treated as having failed of

22 selection for promotion if the Secretary of the mili23 tary department concerned determines that the offi24 cer would be eligible for consideration for promotion

25 to the next higher grade by a selection board con-
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1 vened under section 14101(a) of this title but is not

2 fully qualified for promotion when recommending for

3 promotion under section 14308(b)(4) of this title all

4 fully qualified officers of that officer’s reserve com5 ponent in such grade who would be eligible for such

6 consideration.’’.

7 SEC. 504. AUTHORITY TO ADJUST DATE OF RANK.

8 (a) ACTIVE DUTY OFFICERS.—Subsection 741(d) of

9 title 10, United States Code, is amended, by adding at

10 the end the following new paragraph (4):

11 ‘‘(4)(A) The Secretary concerned may adjust the date

12 of rank of an officer appointed to a higher grade under

13 section 624(a) of this title if the appointment is to a grade

14 below O–7 and is delayed by reason of unusual cir15 cumstances that cause an unintended delay in the proc16 essing or approval of—

17 ‘‘(i) a report of a selection board recommending

18 the appointment of the officer to that grade; or

19 ‘‘(ii) the promotion list established on the basis

20 of that report.

21 ‘‘(B) The adjusted date of rank applicable to the

22 grade of an officer under subparagraph (A) shall be con23 sistent with the officer’s position on the promotion list for

24 that grade and competitive category when additional offi25 cers in that grade and competitive category were needed
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1 and shall also be consistent with compliance with the ap2 plicable authorized strengths for officers in that grade and

3 competitive category.

4 ‘‘(C) The adjusted date of rank applicable to the

5 grade of an officer under subparagraph (A) shall be the

6 effective date for the officer’s pay and allowances for the

7 grade and for the officer’s position on the active-duty list.

8 ‘‘(D) In the case of an officer whose appointment to

9 a higher grade under this section is made by and with

10 the advice and consent of the Senate, the Secretary con11 cerned shall transmit to the Committee on Armed Services

12 of the Senate a notification of any adjustment of a date

13 of rank for the appointment of an officer to a higher grade

14 under subparagraph (A) to a date that is prior to the date

15 of the advice and consent of the Senate on the appoint16 ment. The notification shall include the name of the officer

17 and a discussion of the reasons for the adjustment.’’.

18 (b) RESERVE OFFICERS.—Section 14308(c) of such

19 title is amended—

20 (1) by redesignating paragraph (2) as para21 graph (3);

22 (2) by inserting after paragraph (1) the fol23 lowing new paragraph (2):

24 ‘‘(2)(A) The Secretary concerned may adjust the date

25 of rank of an officer appointed to a higher grade under
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1 this section if the appointment is to a grade below O–7

2 and is delayed by reason of unusual circumstances that

3 cause an unintended delay in the processing or approval

4 of—

5 ‘‘(i) a report of a selection board recommending

6 the appointment of the officer to that grade; or

7 ‘‘(ii) the promotion list established on the basis

8 of that report.

9 ‘‘(B) The adjusted date of rank applicable to the

10 grade of an officer under subparagraph (A) shall be con11 sistent with the officer’s position on the promotion list for

12 that grade and competitive category when additional offi13 cers in that grade and competitive category were needed

14 and shall also be consistent with compliance with the ap15 plicable authorized strengths for officers in that grade and

16 competitive category.

17 ‘‘(C) The adjusted date of rank applicable to the

18 grade of an officer under subparagraph (A) shall be the

19 effective date for the officer’s pay and allowances for the

20 grade and for the officer’s position on the active-duty list.

21 ‘‘(D) In the case of an officer whose appointment to

22 a higher grade under this section is made by and with

23 the advice and consent of the Senate, the Secretary con24 cerned shall transmit to the Committee on Armed Services

25 of the Senate a notification of any adjustment of a date
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1 of rank for the appointment of an officer to a higher grade

2 under subparagraph (A) to a date that is prior to the date

3 of the advice and consent of the Senate on the appoint4 ment. The notification shall include the name of the officer

5 and a discussion of the reasons for the adjustment.’’; and

6 (3) in paragraph (3), as redesignated by para7 graph (1), by inserting ‘‘provided in paragraph (2)

8 or as otherwise’’ after ‘‘Except as’’.

9 SEC. 505. EXTENSION OF DEFERMENTS OF RETIREMENT OR

10 SEPARATION FOR MEDICAL REASONS.

11 Section 640 of title 10, United States Code, is

12 amended—

13 (1) by inserting ‘‘(a) DEFERMENT.—’’ before

14 ‘‘The Secretary’’; and

15 (b) by adding at the end the following new sub16 section:

17 ‘‘(b) AUTHORITY TO EXTEND.—In the case of an of18 ficer whose retirement or separation under any of sections

19 632 through 638, or section 1251, of this title is deferred

20 under subsection (a), the Secretary of the military depart21 ment concerned may extend the deferment by an addi22 tional period of not more than 30 days following the com23 pletion of the evaluation of the officer’s physical condition

24 if the Secretary determines that continuation of the officer

25 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 for 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);

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

17 owed 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

20 five years after the date on which the person was, or was

21 to be, enlisted in the regular Army pursuant to the de22 layed entry authority under section 513 of title 10,

23 United States Code, does not discharge that person from

24 a debt 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 SEC. 540. PARTICIPATION OF REGULAR MEMBERS OF THE

2 ARMED FORCES IN THE SENIOR RESERVE OF3 FICERS’ TRAINING CORPS.

4 (a) ELIGIBILITY.—Section 2104(b)(3) of title 10,

5 United States Code, is amended by inserting ‘‘the regular

6 component or’’ after ‘‘enlist in’’.

7 (b) PAY RATE WHILE ON FIELD TRAINING OR PRAC8 TICE CRUISE.—Section 209(c) of title 37, United States

9 Code, is amended by inserting before the period at the

10 end the following: ‘‘, except that the rate for a cadet or

11 midshipmen who is a member of the regular component

12 of an armed force shall be the rate of basic pay applicable

13 to the member under section 203 of this title’’.

14 (c) EFFECTIVE DATE.—This section and the amend15 ments made by this section shall take effect on October

16 1, 2001.

17 Subtitle D—Decorations, Awards,

18 and Commendations

19 SEC. 551. AUTHORITY FOR AWARD OF THE MEDAL OF

20 HONOR TO HUMBERT R. VERSACE FOR

21 VALOR DURING THE VIETNAM WAR.

22 (a) WAIVER OF TIME LIMITATIONS.—Notwith23 standing the time limitations specified in section 3744 of

24 title 10, United States Code, or any other time limitation

25 with respect to the awarding of certain medals to persons

26 who served in the military service, the President may
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1 award the Medal of Honor under section 3741 of that title

2 to Humbert R. Versace for the acts of valor referred to

3 in subsection (b).

4 (b) ACTION DESCRIBED.—The acts of valor referred

5 to in subsection (a) are the actions of Humbert R. Versace

6 between October 29, 1963, and September 26, 1965, while

7 interned as a prisoner of war by the Vietnamese Com8 munist National Liberation Front (Viet Cong) in the Re9 public of Vietnam.

10 SEC. 552. REVIEW REGARDING AWARD OF MEDAL OF

11 HONOR TO CERTAIN JEWISH AMERICAN WAR

12 VETERANS.

13 (a) REVIEW REQUIRED.—The Secretary of each mili14 tary department shall review the service records of each

15 Jewish American war veteran described in subsection (b)

16 to determine whether or not that veteran should be award17 ed the Medal of Honor.

18 (b) COVERED JEWISH AMERICAN WAR VETERANS.—

19 The Jewish American war veterans whose service records

20 are to be reviewed under subsection (a) are the following:

21 (1) Any Jewish American war veteran who was

22 previously awarded the Distinguished Service Cross,

23 the Navy Cross, or the Air Force Cross.

24 (2) Any other Jewish American war veteran

25 whose name is submitted to the Secretary concerned
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1 for such purpose by the Jewish War Veterans of the

2 United States of America before the end of the one3 year period beginning on the date of the enactment

4 of this Act.

5 (c) CONSULTATIONS.—In carrying out the review

6 under subsection (a), the Secretary of each military de7 partment shall consult with the Jewish War Veterans of

8 the United States of America and with such other veterans

9 service organizations as the Secretary considers appro10 priate.

11 (d) RECOMMENDATION BASED ON REVIEW.—If the

12 Secretary concerned determines, based upon the review

13 under subsection (a) of the service records of any Jewish

14 American war veteran, that the award of the Medal of

15 Honor to that veteran is warranted, the Secretary shall

16 submit to the President a recommendation that the Presi17 dent award the Medal of Honor to that veteran.

18 (e) AUTHORITY TO AWARD MEDAL OF HONOR.—A

19 Medal of Honor may be awarded to a Jewish American

20 war veteran in accordance with a recommendation of the

21 Secretary concerned under subsection (d).

22 (f) WAIVER OF TIME LIMITATIONS.—An award of

23 the Medal of Honor may be made under subsection (e)

24 without regard to—
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1 (1) section 3744, 6248, or 8744 of title 10,

2 United States Code, as applicable; and

3 (2) any regulation or other administrative re4 striction on—

5 (A) the time for awarding the Medal of

6 Honor; or

7 (B) the awarding of the Medal of Honor

8 for service for which a Distinguished Service

9 Cross, Navy Cross, Air Force Cross, or any

10 other decoration has been awarded.

11 (g) JEWISH AMERICAN WAR VETERAN DEFINED.—

12 In this section, the term ‘‘Jewish American war veteran’’

13 means any person who served in the Armed Forces during

14 World War II or a later period of war and who identified

15 himself or herself as Jewish on his or her military per16 sonnel records.

17 SEC. 553. ISSUANCE OF DUPLICATE AND REPLACEMENT

18 MEDALS OF HONOR.

19 (a) ARMY.—(1)(A) Chapter 357 of title 10, United

20 States Code, is amended by inserting after section 3747

21 the following new section:

22 ‘‘§ 3747a. Medal of honor: issuance of duplicate

23 ‘‘(a) ISSUANCE.—Upon written application by a per24 son to whom a medal of honor has been awarded under

25 this chapter, the Secretary of the Army may issue to the
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1 person one duplicate medal of honor, with ribbons and ap2 purtenances. No charge may be imposed for the issuance

3 of the duplicate medal.

4 ‘‘(b) SPECIAL MARKING.—A duplicate medal of

5 honor issued under this section shall be marked as a dupli6 cate or for display purposes only. The Secretary shall pre7 scribe the manner in which the duplicate medal is marked.

8 ‘‘(c) ISSUANCE NOT TO BE CONSIDERED ADDI9 TIONAL AWARD.—The issuance of a duplicate medal of

10 honor under of this section may not be considered an

11 award of more than one medal of honor prohibited by sec12 tion 3744(a) of this title.’’.

13 (B) The table of sections at the beginning of such

14 chapter is amended by inserting after the item relating

15 to section 3747 the following:

‘‘3747a. Medal of honor: issuance of duplicate.’’.

16 (2) Section 3747 of title 10, United States Code, is

17 amended by striking ‘‘lost’’ and inserting ‘‘stolen, lost,’’.

18 (b) NAVY AND MARINE CORPS.—(1)(A) Chapter 567

19 of such title is amended by inserting after section 6253

20 the following new section:

21 ‘‘§ 6253a. Medal of honor: issuance of duplicate

22 ‘‘(a) ISSUANCE.—Upon written application by a per23 son to whom a medal of honor has been awarded under

24 this chapter, the Secretary of the Navy may issue to the

25 person one duplicate medal of honor, with ribbons and ap-
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1 purtenances. No charge may be imposed for the issuance

2 of the duplicate medal.

3 ‘‘(b) SPECIAL MARKING.—A duplicate medal of

4 honor issued under this section shall be marked as a dupli5 cate or for display purposes only. The Secretary shall pre6 scribe the manner in which the duplicate medal is marked.

7 ‘‘(c) ISSUANCE NOT TO BE CONSIDERED ADDI8 TIONAL AWARD.—The issuance of a duplicate medal of

9 honor under this section may not be considered an award

10 of more than one medal of honor prohibited by section

11 6247 of this title.’’.

12 (B) The table of sections at the beginning of such

13 chapter is amended by inserting after the item relating

14 to section 6253 the following:

‘‘6253a. Medal of honor: issuance of duplicate.’’.

15 (2) Section 6253 of title 10, United States Code, is

16 amended by striking ‘‘lost’’ and inserting ‘‘stolen, lost,’’.

17 (c) AIR FORCE.—(1)(A) Chapter 857 of such title is

18 amended by inserting after section 8747 the following new

19 section:

20 ‘‘§ 8747a. Medal of honor: issuance of duplicate

21 ‘‘(a) ISSUANCE.—Upon written application by a per22 son to whom a medal of honor has been awarded under

23 this chapter, the Secretary of the Air Force may issue to

24 the person one duplicate medal of honor, with ribbons and
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1 appurtenances. No charge may be imposed for the

2 issuance of the duplicate medal.

3 ‘‘(b) SPECIAL MARKING.—A duplicate medal of

4 honor issued under this section shall be marked as a dupli5 cate or for display purposes only. The Secretary shall pre6 scribe the manner in which the duplicate medal is marked.

7 ‘‘(c) ISSUANCE NOT TO BE CONSIDERED ADDI8 TIONAL AWARD.—The issuance of a duplicate medal of

9 honor under this section may not be considered an award

10 of more than one medal of honor prohibited by section

11 8744(a) of this title.’’.

12 (B) The table of sections at the beginning of such

13 chapter is amended by inserting after the item relating

14 to section 8747 the following:

‘‘8747a. Medal of honor: issuance of duplicate.’’.

15 (2) Section 8747 of title 10, United States Code, is

16 amended by striking ‘‘lost’’ and inserting ‘‘stolen, lost,’’.

17 SEC. 554. WAIVER OF TIME LIMITATIONS FOR AWARD OF

18 CERTAIN DECORATIONS TO CERTAIN PER19 SONS.

20 (a) WAIVER.—Any limitation established by law or

21 policy for the time within which a recommendation for the

22 award of a military decoration or award must be sub23 mitted shall not apply to awards of decorations described

24 in this section, the award of each such decoration having

25 been determined by the Secretary concerned to be war-
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1 ranted in accordance with section 1130 of title 10, United

2 States Code.

3 (b) SILVER STAR.—Subsection (a) applies to the

4 award of the Silver Star to Wayne T. Alderson, of

5 Glassport, Pennsylvania, for gallantry in action from

6 March 15 to March 18, 1945, while serving as a member

7 of the Army.

8 (c) DISTINGUISHED FLYING CROSS.—Subsection (a)

9 applies to the award of the Distinguished Flying Cross

10 for service during World War II (including multiple

11 awards to the same individual) in the case of each indi12 vidual concerning whom the Secretary of the Navy (or an

13 officer of the Navy acting on behalf of the Secretary) sub14 mitted to the Committee on Armed Services of the House

15 of Representatives and the Committee on Armed Services

16 of the Senate, during the period beginning on October 30,

17 2000, and ending on the day before the date of the enact18 ment of this Act, a notice as provided in section 1130(b)

19 of title 10, United States Code, that the award of the Dis20 tinguished Flying Cross to that individual is warranted

21 and that a waiver of time restrictions prescribed by law

22 for recommendation for such award is recommended.
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1 SEC. 555. SENSE OF SENATE ON ISSUANCE OF KOREA DE2 FENSE SERVICE MEDAL.

3 It is the sense of the Senate that the Secretary of

4 Defense should consider authorizing the issuance of a

5 campaign medal, to be known as the Korea Defense Serv6 ice Medal, to each person who while a member of the

7 Armed Forces served in the Republic of Korea, or the wa8 ters adjacent thereto, during the period beginning on July

9 28, 1954, and ending on such date after that date as the

10 Secretary considers appropriate.

11 SEC. 556. RETROACTIVE MEDAL OF HONOR SPECIAL PEN12 SION.

13 (a) ENTITLEMENT.—Notwithstanding any other pro14 vision of law, Robert R. Ingram of Jacksonville, Florida,

15 who was awarded the Medal of Honor pursuant to Public

16 Law 105–103 (111 Stat. 2218), shall be entitled to the

17 special pension provided for under section 1562 of title

18 38, United States Code (and antecedent provisions of law),

19 for months that begin after March 1966.

20 (b) AMOUNT.—The amount of special pension pay21 able under subsection (a) for a month beginning before

22 the date of the enactment of this Act shall be the amount

23 of special pension provided for by law for that month for

24 persons entered and recorded in the Army, Navy, Air

25 Force, and Coast Guard Medal of Honor Roll (or ante26 cedent Medal of Honor Roll required by law).
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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;

4 (B) each valid ballot cast by such a voter

5 is duly counted; and

6 (C) all eligible American voters, regardless

7 of race, ethnicity, disability, the language they

8 speak, or the resources of the community in

9 which they live should have an equal oppor10 tunity to cast a vote and have that vote count11 ed.

12 (b) UNIFORMED SERVICES VOTER DEFINED.—In

13 this section, the term ‘‘uniformed services voter’’ means—

14 (1) a member of a uniformed service (as defined

15 in section 101(a)(5) of title 10, United States Code)

16 in active service;

17 (2) a member of the merchant marine (as de18 fined in section 107 of the Uniformed and Overseas

19 Citizens Absentee Voting Act (42 U.S.C. 1973ff–6));

20 and

21 (3) a spouse or dependent of a member referred

22 to in subparagraph (A) or (B) who is qualified to

23 vote.
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1 SEC. 572. STANDARD FOR INVALIDATION OF BALLOTS CAST

2 BY ABSENT UNIFORMED SERVICES VOTERS

3 IN FEDERAL ELECTIONS.

4 (a) IN GENERAL.—Section 102 of the Uniformed and

5 Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff–

6 1) is amended—

7 (1) by striking ‘‘Each State’’ and inserting ‘‘(a)

8 IN GENERAL.—Each State’’; and

9 (2) by adding at the end the following:

10 ‘‘(c) STANDARDS FOR INVALIDATION OF CERTAIN

11 BALLOTS.—

12 ‘‘(1) IN GENERAL.—A State may not refuse to

13 count a ballot submitted in an election for Federal

14 office by an absent uniformed services voter solely—

15 ‘‘(A) on the grounds that the ballot lacked

16 a notarized witness signature, an address, other

17 than on a Federal write-in absentee ballot

18 (SF186) or a postmark: Provided, That there

19 are other indicia that the vote was cast in a

20 timely manner; or

21 ‘‘(B) on the basis of a comparison of sig22 natures on ballots, envelopes, or registration

23 forms unless there is a lack of reasonable simi24 larity between the signatures.

25 ‘‘(2) NO EFFECT ON FILING DEADLINES UNDER

26 STATE LAW.—Nothing in this subsection may be
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1 construed to affect the application to ballots sub2 mitted by absent uniformed services voters of any

3 ballot submission deadline applicable under State

4 law.’’.

5 (b) EFFECTIVE DATE.—The amendments made by

6 subsection (a) shall apply with respect to ballots described

7 in section 102(c) of the Uniformed and Overseas Citizens

8 Absentee Voting Act (as added by such subsection) that

9 are submitted with respect to elections that occur after

10 the date of enactment of this Act.

11 SEC. 573. GUARANTEE OF RESIDENCY FOR MILITARY PER12 SONNEL.

13 Article VII of the Soldiers’ and Sailors’ Civil Relief

14 Act of 1940 (50 U.S.C. App. 590 et seq.) is amended by

15 adding at the end the following:

16 ‘‘SEC. 704. (a) For purposes of voting for any Fed17 eral office (as defined in section 301 of the Federal Elec18 tion Campaign Act of 1971 (2 U.S.C. 431)) or a State

19 or local office, a person who is absent from a State in

20 compliance with military or naval orders shall not, solely

21 by reason of that absence—

22 ‘‘(1) be deemed to have lost a residence or

23 domicile in that State, without regard to whether or

24 not the person intends to return to that State;
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1 ‘‘(2) be deemed to have acquired a residence or

2 domicile in any other State; or

3 ‘‘(3) be deemed to have become a resident in or

4 a resident of any other State.

5 ‘‘(b) In this section, the term ‘State’ includes a terri6 tory or possession of the United States, a political subdivi7 sion of a State, territory, or possession, and the District

8 of Columbia.’’.

9 SEC. 574. EXTENSION OF REGISTRATION AND BALLOTING

10 RIGHTS FOR ABSENT UNIFORMED SERVICES

11 VOTERS TO STATE AND LOCAL ELECTIONS.

12 (a) IN GENERAL.—Section 102 of the Uniformed and

13 Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff–

14 1), as amended by section 572(a)(1), is further amended

15 by inserting after subsection (a) the following new sub16 section:

17 ‘‘(b) ELECTIONS FOR STATE AND LOCAL OFFICES.—

18 Each State shall—

19 ‘‘(1) permit absent uniformed services voters to

20 use absentee registration procedures and vote by ab21 sentee ballot in general, special, primary, and runoff

22 elections for State and local offices; and

23 ‘‘(2) accept and process, with respect to any

24 election described in paragraph (1), any otherwise

25 valid voter registration application from an absent
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1 uniformed services voter if the application is received

2 by the appropriate State election official not less

3 than 30 days before the date of the election.’’.

4 (b) CONFORMING AMENDMENT.—The heading for

5 title I of such Act is amended by striking ‘‘FOR FED6 ERAL OFFICE’’.

7 SEC. 575. USE OF SINGLE APPLICATION AS A SIMULTA8 NEOUS ABSENTEE VOTER REGISTRATION AP9 PLICATION AND ABSENTEE BALLOT APPLICA10 TION.

11 Subsection (a) of section 102 of the Uniformed and

12 Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff–

13 1), as redesignated by section 572(a)(1), is amended—

14 (1) by striking ‘‘and’’ at the end of paragraph

15 (2);

16 (2) by striking the period at the end of para17 graph (3) and inserting a semicolon; and

18 (3) by inserting after paragraph (3) the fol19 lowing new paragraph (4):

20 ‘‘(4) accept and process the official post card

21 form (prescribed under section 101) as a simulta22 neous absentee voter registration application and ab23 sentee ballot application; and’’.
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1 SEC. 576. USE OF SINGLE APPLICATION FOR ABSENTEE

2 BALLOTS FOR ALL FEDERAL ELECTIONS.

3 Subsection (a) of section 102 of the Uniformed and

4 Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff–

5 1), as amended by section 575, is further amended by in6 serting after paragraph (4) the following new paragraph

7 (5):

8 ‘‘(5) accept and process, with respect to all gen9 eral, special, primary, and runoff elections for Fed10 eral office occurring during a year, any otherwise

11 valid absentee ballot application from an absent uni12 formed services voter or overseas voter if a single

13 application for any such election is received by the

14 appropriate State election official not less than 30

15 days before the first election for Federal office oc16 curring during the year.’’.

17 SEC. 577. ELECTRONIC VOTING DEMONSTRATION

18 PROJECT.

19 (a) ESTABLISHMENT OF DEMONSTRATION

20 PROJECT.—

21 (1) IN GENERAL.—Subject to paragraph (2),

22 the Secretary of Defense shall carry out a dem23 onstration project under which absent uniformed

24 services voters (as defined in section 107(1) of the

25 Uniformed and Overseas Citizens Absentee Voting

26 Act (42 U.S.C. 1973ff–6(1))) are permitted to cast
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1 ballots in the regularly scheduled general election for

2 Federal office for November 2002, through an elec3 tronic voting system.

4 (2) AUTHORITY TO DELAY IMPLEMENTATION.—

5 If the Secretary of Defense determines that the im6 plementation of the demonstration project under

7 paragraph (1) with respect to the regularly sched8 uled general election for Federal office for November

9 2002 may adversely affect the national security of

10 the United States, the Secretary may delay the im11 plementation of such demonstration project until the

12 regularly scheduled general election for Federal of13 fice for November 2004. The Secretary shall notify

14 the Armed Services Committees of the Senate and

15 the House of Representatives of any decision to

16 delay implementation of the demonstration project.

17 (b) COORDINATION WITH STATE ELECTION OFFI18 CIALS.—To the greatest extent practicable, the Secretary

19 of Defense shall carry out the demonstration project under

20 this section through cooperative agreements with State

21 election officials.

22 (c) REPORT TO CONGRESS.—Not later than June 1,

23 2003, the Secretary of Defense shall submit a report to

24 Congress analyzing the demonstration project conducted

25 under this section, and shall include in the report any rec-
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1 ommendations the Secretary of Defense considers appro2 priate for continuing the project on an expanded basis for

3 absent uniformed services voters during the next regularly

4 scheduled general election for Federal office.

5 SEC. 578. FEDERAL VOTING ASSISTANCE PROGRAM.

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

7 promulgate regulations to require each of the Armed

8 Forces to ensure their compliance with any directives

9 issued by the Secretary of Defense in implementing the

10 Federal Voting Assistance Program (referred to in this

11 section as the ‘‘Program’’) or any similar program.

12 (b) REVIEW AND REPORT.—(1) The Inspector Gen13 eral of each of the Armed Forces shall—

14 (A) conduct an annual review of the effective15 ness of the Program or any similar program;

16 (B) conduct an annual review of the compliance

17 with the Program or any similar program of the

18 branch; and

19 (C) submit an annual report to the Inspector

20 General of the Department of Defense on the results

21 of the reviews under subparagraphs (A) and (B).

22 (2) Not later than March 31, 2003, and annually

23 thereafter, the Inspector General of the Department of

24 Defense shall submit a report to Congress on—
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1 (A) the effectiveness of the Program or any

2 similar program; and

3 (B) the level of compliance with the Program or

4 any similar program of the branches of the Armed

5 Forces.

6 SEC. 579. MAXIMIZATION OF ACCESS OF RECENTLY SEPA7 RATED UNIFORMED SERVICES VOTERS TO

8 THE POLLS.

9 (a) ABSENTEE REGISTRATION.—For purposes of vot10 ing in any primary, special, general, or runoff election for

11 Federal office (as defined in section 301 of the Federal

12 Election Campaign Act of 1971 (2 U.S.C. 431)), each

13 State shall, with respect to any uniformed services voter

14 (as defined in section 571(b)) requesting to vote in the

15 State accept and process, with respect to any primary,

16 special, general, or runoff election, any otherwise valid

17 voter registration application submitted by such voter.

18 (b) VOTING BY RECENTLY SEPARATED UNIFORMED

19 SERVICES VOTERS.—Each State shall permit each re20 cently separated uniformed services voter to vote in any

21 election for which a voter registration application has been

22 accepted and processed under subsection (a) if that

23 voter—

24 (1) has registered to vote under such sub25 section; and
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1 (2) is eligible to vote in that election under

2 State law.

3 (c) DEFINITIONS.—In this section:

4 (1) The term ‘‘State’’ means a State of the

5 United States, the District of Columbia, the Com6 monwealth of Puerto Rico, or a territory or posses7 sion of the United States.

8 (2) The term ‘‘recently separated uniformed

9 services voter’’ means any individual who was a uni10 formed services voter (as defined in section 571(b))

11 on the date that is 60 days before the date on which

12 the individual seeks to vote and who—

13 (A) presents to the election official Depart14 ment of Defense form 214 evidencing their

15 former status as such a voter, or any other offi16 cial proof of such status; and

17 (B) is no longer such a voter; and

18 (C) is otherwise qualified to vote.

19 SEC. 580. GOVERNORS’ REPORTS ON IMPLEMENTATION OF

20 FEDERAL VOTING ASSISTANCE PROGRAM

21 RECOMMENDATIONS.

22 (a) REPORTS.—Not later than 90 days after the date

23 on which a State receives a legislative recommendation,

24 the State shall submit a report on the status of the imple25 mentation of that recommendation to the Presidential des-
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1 ignee and to each Member of Congress that represents

2 that State.

3 (b) PERIOD OF APPLICABILITY.—This section applies

4 with respect to legislative recommendations received by

5 States during the period beginning on the date of enact6 ment of this Act and ending three years after such date.

7 (c) DEFINITIONS.—In this section:

8 (1) The term ‘‘legislative recommendation’’

9 means a recommendation of the Presidential des10 ignee suggesting a modification in the laws of a

11 State for the purpose of maximizing the access to

12 the polls of absent uniformed services voters and

13 overseas voters, including each recommendation

14 made under section 104 of the Uniformed and Over15 seas Citizens Absentee Voting Act (42 U.S.C.

16 1973ff–3).

17 (2) The term ‘‘Presidential designee’’ means the

18 head of the executive department designated under

19 section 101 of the Uniformed and Overseas Citizens

20 Absentee Voting Act (42 U.S.C. 1973ff).
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1 Subtitle G—Other Matters

2 SEC. 581. PERSONS AUTHORIZED TO BE INCLUDED IN SUR3 VEYS OF MILITARY FAMILIES REGARDING

4 FEDERAL PROGRAMS.

5 (a) ADDITION OF CERTAIN FAMILY MEMBERS AND

6 SURVIVORS.—Subsection (a) of section 1782 of title 10,

7 United States Code, is amended to read as follows:

8 ‘‘(a) AUTHORITY.—The Secretary of Defense may

9 conduct surveys of persons to determine the effectiveness

10 of Federal programs relating to military families and the

11 need for new programs, as follows:

12 ‘‘(1) Members of the armed forces on active

13 duty or in an active status.

14 ‘‘(2) Retired members of the armed forces.

15 ‘‘(3) Members of the families of such members

16 and retired members of the armed forces (including

17 surviving members of the families of deceased mem18 bers and deceased retired members).’’.

19 (b) FEDERAL RECORDKEEPING REQUIREMENTS.—

20 Subsection (c) of such section is amended to read as fol21 lows:

22 ‘‘(c) FEDERAL RECORDKEEPING REQUIREMENTS.—

23 With respect to a survey authorized under subsection (a)

24 that includes a person referred to in that subsection who

25 is not an employee of the United States or is not consid-
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1 ered an employee of the United States for the purposes

2 of section 3502(3)(A)(i) of title 44, the person shall be

3 considered as being an employee of the United States for

4 the purposes of that section.’’.

5 SEC. 582. CORRECTION AND EXTENSION OF CERTAIN ARMY

6 RECRUITING PILOT PROGRAM AUTHORITIES.

7 (a) CONTRACT RECRUITING INITIATIVES.—Sub8 section (d)(2) of section 561 of the Floyd D. Spence Na9 tional Defense Authorization Act for Fiscal Year 2001 (as

10 enacted into law by Public Law 106–398; 114 Stat.

11 1654A–130) is amended—

12 (1) in subparagraphs (A) and (D), by inserting

13 ‘‘and Army Reserve’’ after ‘‘Regular Army’’; and

14 (2) in subparagraph (B), by striking ‘‘and chain

15 of command’’.

16 (b) EXTENSION OF AUTHORITY.—Subsection (e) of

17 such section is amended by striking ‘‘December 31, 2005’’

18 and inserting ‘‘September 30, 2007’’.

19 (c) EXTENSION OF TIME FOR REPORTS.—Subsection

20 (g) of such section is amended by striking ‘‘February 1,

21 2006’’ and inserting ‘‘February 1, 2008’’.
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1 SEC. 583. OFFENSE OF DRUNKEN OPERATION OF A VEHI2 CLE, AIRCRAFT, OR VESSEL UNDER THE UNI3 FORM CODE OF MILITARY JUSTICE.

4 (a) LOWER STANDARD OF ALCOHOL CONCENTRA5 TION.—Section 911 of title 10, United States Code (arti6 cle 111 of the Uniform Code of Military Justice), is

7 amended by striking ‘‘0.10 grams’’ both places it appears

8 in paragraph (2) and inserting ‘‘0.08 grams’’.

9 (b) EFFECTIVE DATE.—The amendments made by

10 subsection (a) shall take effect on the date of the enact11 ment of this Act and shall apply to acts described in para12 graph (2) of section 911 of title 10, United States Code,

13 that are committed on or after that date.

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

15 NOTARIES.

16 (a) CLARIFICATION OF STATUS OF CIVILIAN ATTOR17 NEYS ELIGIBLE TO ACT AS NOTARIES.—Subsection (b)

18 of section 1044a of title 10, United States Code, is amend19 ed by striking ‘‘legal assistance officers’’ in paragraph (2)

20 and inserting ‘‘legal assistance attorneys’’.

21 (b) OTHER CIVILIAN EMPLOYEES DESIGNATED TO

22 ACT AS NOTARIES ABROAD.—Such subsection is further

23 amended by adding at the end the following new para24 graph:

25 ‘‘(5) For the performance of notarial acts at lo26 cations outside the United States, all employees of
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1 a military department or the Coast Guard who are

2 designated by regulations of the Secretary concerned

3 or by statute to have those powers for exercise out4 side the United States.’’.

5 SEC. 585. REVIEW OF ACTIONS OF SELECTION BOARDS.

6 (a) IN GENERAL.—(1) Chapter 79 of title 10, United

7 States Code, is amended by adding at the end the fol8 lowing:

9 ‘‘§ 1558. Exclusive remedies in cases involving selec10 tion boards

11 ‘‘(a) CORRECTION OF MILITARY RECORDS.—The

12 Secretary concerned may correct a person’s military

13 records in accordance with a recommendation made by a

14 special board. Any such correction shall be effective, retro15 actively, as of the effective date of the action taken on

16 a report of a previous selection board that resulted in the

17 action corrected in the person’s military records.

18 ‘‘(b) RELIEF ASSOCIATED WITH CORRECTIONS OF

19 CERTAIN ACTIONS.—(1) The Secretary concerned shall

20 ensure that a person receives relief under paragraph (2)

21 or (3), as the person may elect, if the person—

22 ‘‘(A) was separated or retired from an armed

23 force, or transferred to the retired reserve or to inac24 tive status in a reserve component, as a result of a

25 recommendation of a selection board; and
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1 ‘‘(B) becomes entitled to retention on or res2 toration to active duty or active status in a reserve

3 component as a result of a correction of the person’s

4 military records under subsection (a).

5 ‘‘(2)(A) With the consent of a person referred to in

6 paragraph (1), the person shall be retroactively and pro7 spectively restored to the same status, rights, and entitle8 ments (less appropriate offsets against back pay and al9 lowances) in the person’s armed force as the person would

10 have had if the person had not been selected to be sepa11 rated, retired, or transferred to the retired reserve or to

12 inactive status in a reserve component, as the case may

13 be, as a result of an action corrected under subsection (a).

14 An action under this subparagraph is subject to subpara15 graph (B).

16 ‘‘(B) Nothing in subparagraph (A) shall be construed

17 to permit a person to be on active duty or in an active

18 status in a reserve component after the date on which the

19 person would have been separated, retired, or transferred

20 to the retired reserve or to inactive status in a reserve

21 component if the person had not been selected to be sepa22 rated, retired, or transferred to the retired reserve or to

23 inactive status in a reserve component, as the case may

24 be, in an action of a selection board that is corrected under

25 subsection (a).
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1 ‘‘(3) If the person does not consent to a restoration

2 of status, rights, and entitlements under paragraph (2),

3 the person shall receive back pay and allowances (less ap4 propriate offsets) and service credit for the period begin5 ning on the date of the person’s separation, retirement,

6 or transfer to the retired reserve or to inactive status in

7 a reserve component, as the case may be, and ending on

8 the earlier of—

9 ‘‘(A) the date on which the person would have

10 been so restored under paragraph (2), as determined

11 by the Secretary concerned; or

12 ‘‘(B) the date on which the person would other13 wise have been separated, retired, or transferred to

14 the retired reserve or to inactive status in a reserve

15 component, as the case may be.

16 ‘‘(c) FINALITY OF UNFAVORABLE ACTION.—If a spe17 cial board makes a recommendation not to correct the

18 military records of a person regarding action taken in the

19 case of that person on the basis of a previous report of

20 a selection board, the action previously taken on that re21 port shall be considered as final as of the date of the ac22 tion taken on that report.

23 ‘‘(d) REGULATIONS.—(1) The Secretary concerned

24 may prescribe regulations to carry out this section (other
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1 than subsection (e)) with respect to the armed force or

2 armed forces under the jurisdiction of the Secretary.

3 ‘‘(2) The Secretary may prescribe in the regulations

4 the circumstances under which consideration by a special

5 board may be provided for under this section, including

6 the following:

7 ‘‘(A) The circumstances under which consider8 ation of a person’s case by a special board is contin9 gent upon application by or for that person.

10 ‘‘(B) Any time limits applicable to the filing of

11 an application for consideration.

12 ‘‘(3) Regulations prescribed by the Secretary of a

13 military department under this subsection shall be subject

14 to the approval of the Secretary of Defense.

15 ‘‘(e) JUDICIAL REVIEW.—(1) A person challenging

16 for any reason the action or recommendation of a selection

17 board, or the action taken by the Secretary concerned on

18 the report of a selection board, is not entitled to relief in

19 any judicial proceeding unless the person has first been

20 considered by a special board under this section or the

21 Secretary concerned has denied such consideration.

22 ‘‘(2) A court of the United States may review a deter23 mination by the Secretary concerned not to convene a spe24 cial board in the case of any person. In any such case,

25 a court may set aside the Secretary’s determination only
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1 if the court finds the determination to be arbitrary or ca2 pricious, not based on substantial evidence, or otherwise

3 contrary to law. If a court sets aside a determination not

4 to convene a special board, it shall remand the case to

5 the Secretary concerned, who shall provide for consider6 ation of the person by a special board.

7 ‘‘(3) A court of the United States may review a rec8 ommendation of a special board or an action of the Sec9 retary concerned on the report of a special board convened

10 for consideration of a person. In any such case, a court

11 may set aside the recommendation or action, as the case

12 may be, only if the court finds that the recommendation

13 or action was contrary to law or involved a material error

14 of fact or a material administrative error. If a court sets

15 aside the recommendation of a special board, it shall re16 mand the case to the Secretary concerned, who shall pro17 vide for reconsideration of the person by another special

18 board. If a court sets aside the action of the Secretary

19 concerned on the report of a special board, it shall remand

20 the case to the Secretary concerned for a new action on

21 the report of the special board.

22 ‘‘(4)(A) If, not later than six months after receiving

23 a complete application for consideration by a special board

24 in any case, the Secretary concerned has not convened a

25 special board and has not denied consideration by a special
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1 board in that case, the Secretary shall be deemed to have

2 denied the consideration of the case for the purposes of

3 this subsection.

4 ‘‘(B) If, not later than one year after the convening

5 of a special board in any case, the Secretary concerned

6 has not taken final action on the report of the special

7 board, the Secretary shall be deemed to have denied relief

8 in such case for the purposes of this subsection.

9 ‘‘(C) Under regulations prescribed under subsection

10 (d), the Secretary concerned may waive the applicability

11 of subparagraph (A) or (B) in a case if the Secretary de12 termines that a longer period for consideration of the case

13 is warranted. The Secretary of a military department may

14 not delegate authority to make a determination under this

15 subparagraph.

16 ‘‘(f) EXCLUSIVITY OF REMEDIES.—Notwithstanding

17 any other provision of law, but subject to subsection (g),

18 the remedies provided under this section are the only rem19 edies available to a person for correcting an action or rec20 ommendation of a selection board regarding that person

21 or an action taken on the report of a selection board re22 garding that person.

23 ‘‘(g) EXISTING JURISDICTION.—(1) Nothing in this

24 section limits the jurisdiction of any court of the United

25 States under any provision of law to determine the validity
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1 of any statute, regulation, or policy relating to selection

2 boards, except that, in the event that any such statute,

3 regulation, or policy is held invalid, the remedies pre4 scribed in this section shall be the sole and exclusive rem5 edies available to any person challenging the recommenda6 tion of a special board on the basis of the invalidity.

7 ‘‘(2) Nothing in this section limits authority to cor8 rect a military record under section 1552 of this title.

9 ‘‘(h) INAPPLICABILITY TO COAST GUARD.—This sec10 tion does not apply to the Coast Guard when it is not

11 operating as a service in the Navy.

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

13 ‘‘(1) The term ‘special board’—

14 ‘‘(A) means a board that the Secretary

15 concerned convenes under any authority to con16 sider whether to recommend a person for ap17 pointment, enlistment, reenlistment, assign18 ment, promotion, retention, separation, retire19 ment, or transfer to inactive status in a reserve

20 component instead of referring the records of

21 that person for consideration by a previously

22 convened selection board which considered or

23 should have considered that person;

24 ‘‘(B) includes a board for the correction of

25 military or naval records convened under sec-
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1 tion 1552 of this title, if designated as a special

2 board by the Secretary concerned; and

3 ‘‘(C) does not include a promotion special

4 selection board convened under section 628 or

5 14502 of this title.

6 ‘‘(2) The term ‘selection board’—

7 ‘‘(A) means a selection board convened

8 under section 573(c), 580, 580a, 581, 611(b),

9 637, 638, 638a, 14101(b), 14701, 14704, or

10 14705 of this title, and any other board con11 vened by the Secretary concerned under any au12 thority to recommend persons for appointment,

13 enlistment, reenlistment, assignment, pro14 motion, or retention in the armed forces or for

15 separation, retirement, or transfer to inactive

16 status in a reserve component for the purpose

17 of reducing the number of persons serving in

18 the armed forces; and

19 ‘‘(B) does not include—

20 ‘‘(i) a promotion board convened

21 under section 573(a), 611(a), or 14101(a)

22 of this title;

23 ‘‘(ii) a special board;

24 ‘‘(iii) a special selection board con25 vened under section 628 of this title; or
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1 ‘‘(iv) a board for the correction of

2 military records convened under section

3 1552 of this title.’’.

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

5 chapter is amended by adding at the end the following:

‘‘1558. Exclusive remedies in cases involving selection boards .’’.

6 (b) SPECIAL SELECTION BOARDS.—Section 628 of

7 such title is amended—

8 (1) by redesignating subsection (g) as sub9 section (j); and

10 (2) by inserting after subsection (f) the fol11 lowing:

12 ‘‘(g) JUDICIAL REVIEW.—(1) A court of the United

13 States may review a determination by the Secretary con14 cerned under subsection (a)(1) or (b)(1) not to convene

15 a special selection board in the case of an officer or former

16 officer of the armed forces. If the court finds the deter17 mination to be arbitrary or capricious, not based on sub18 stantial evidence, or otherwise contrary to law, it shall re19 mand the case to the Secretary concerned, who shall pro20 vide for consideration of the officer or former officer by

21 a special selection board under this section.

22 ‘‘(2) A court of the United States may review the ac23 tion of a special selection board convened under this sec24 tion upon the request of an officer or former officer of

25 the armed forces and any action taken by the President
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1 on the report of the board. If the court finds that the ac2 tion was contrary to law or involved a material error of

3 fact or a material administrative error, it shall remand

4 the case to the Secretary concerned, who shall provide for

5 reconsideration of the officer or former officer by another

6 special selection board.

7 ‘‘(3)(A) For the purposes of this subsection, the Sec8 retary concerned shall be deemed to have determined not

9 to convene a special selection board under subsection

10 (a)(1) or (b)(1) in the case of an officer or former officer

11 of the armed forces upon a failure of the Secretary to

12 make a determination on the convening of a special selec13 tion board in that case within six months after receiving

14 a properly completed request to convene a special selection

15 board under that authority in that case.

16 ‘‘(B) Under regulations prescribed by the Secretary

17 concerned, the Secretary may waive the applicability of

18 subparagraph (A) in the case of a request for the con19 vening of a special selection board if the Secretary deter20 mines that a longer period for consideration of the request

21 is warranted. The Secretary concerned may not delegate

22 authority to make a determination under this subpara23 graph.

24 ‘‘(h) LIMITATIONS OF OTHER JURISDICTION.—(1)

25 No official or court of the United States may, with respect
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1 to a claim based to any extent on the failure of an officer

2 or former officer of the armed forces to be selected for

3 promotion by a promotion board—

4 ‘‘(A) consider the claim unless the officer or

5 former officer has first been referred by the Sec6 retary concerned to a special selection board con7 vened under this section and acted upon by that

8 board and the report of the board has been approved

9 by the President; or

10 ‘‘(B) except as provided in subsection (g), grant

11 any relief on the claim unless the officer or former

12 officer has been selected for promotion by a special

13 selection board convened under this section to con14 sider the officer for recommendation for promotion

15 and the report of the board has been approved by

16 the President.

17 ‘‘(i) EXISTING JURISDICTION.—(1) Nothing in this

18 section limits the jurisdiction of any court of the United

19 States under any provision of law to determine the validity

20 of any statute, regulation, or policy relating to selection

21 boards, except that, in the event that any such statute,

22 regulation, or policy is held invalid, the remedies pre23 scribed in this section shall be the sole and exclusive rem24 edies available to any person challenging the recommenda25 tion of a selection board on the basis of the invalidity.
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1 ‘‘(2) Nothing in this section limits authority to cor2 rect a military record under section 1552 of this title.’’.

3 (c) EFFECTIVE DATE AND APPLICABILITY.—(1) The

4 amendments made by this section shall take effect on the

5 date of the enactment of this Act and, except as provided

6 in paragraph (2), shall apply with respect to any pro7 ceeding pending on or after that date without regard to

8 whether a challenge to an action of a selection board of

9 any of the Armed Forces being considered in such pro10 ceeding was initiated before, on, or after that date.

11 (2) The amendments made by this section shall not

12 apply with respect to any action commenced in a court

13 of the United States before the date of the enactment of

14 this Act.

15 SEC. 586. ACCEPTANCE OF VOLUNTARY LEGAL ASSISTANCE

16 FOR THE CIVIL AFFAIRS OF MEMBERS AND

17 FORMER MEMBERS OF THE UNIFORMED

18 SERVICES AND THEIR DEPENDENTS.

19 (a) AUTHORITY.—Subsection (a) of section 1588 of

20 title 10, United States Code, is amended by adding at the

21 end the following new paragraph:

22 ‘‘(5) Legal services voluntarily provided as legal

23 assistance under section 1044 of this title.’’.
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1 (b) DEFENSE OF LEGAL MALPRACTICE.—Subsection

2 (d)(1) of that section is amended by adding at the end

3 the following new subparagraph:

4 ‘‘(E) Section 1054 of this title (relating to legal

5 malpractice), for a person voluntarily providing legal

6 services accepted under subsection (a)(5), as if the

7 person were providing the services as an attorney of

8 a legal staff within the Department of Defense.’’.

9 SEC. 587. EXTENSION OF DEFENSE TASK FORCE ON DOMES10 TIC VIOLENCE.

11 Section 591(j) of the National Defense Authorization

12 Act for Fiscal Year 2000 (Public Law 106–65; 113 Stat.

13 641, 10 U.S.C. 1562 note) is amended by striking ‘‘three

14 years after the date of the enactment of this Act’’ and

15 inserting ‘‘April 24, 2003’’.

16 SEC. 588. TRANSPORTATION TO ANNUAL MEETING OF

17 NEXT-OF-KIN OF PERSONS UNACCOUNTED

18 FOR FROM CONFLICTS AFTER WORLD WAR II.

19 (a) IN GENERAL.—(1) Chapter 157 of title 10,

20 United States Code, is amended by adding at the end the

21 following new section:
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1 ‘‘§ 2647. Transportation to annual meeting of next-of2 kin of persons unaccounted for from con3 flicts after World War II

4 ‘‘The Secretary of Defense may provide transpor5 tation for the next-of-kin of persons who are unaccounted

6 for from the Korean conflict, the Cold War, Vietnam War

7 era, or the Persian Gulf War to and from those annual

8 meetings sanctioned by the Department of Defense in the

9 United States. Such transportation shall be provided

10 under such regulations as the Secretary of Defense may

11 prescribe.’’.

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

13 chapter is amended by adding at the end the following

14 new item:

‘‘2647. Transportation to annual meeting of next-of-kin of persons unaccounted

for from conflicts after World War II.’’.

15 (b) EFFECTIVE DATE.—Section 2647 of title 10,

16 United States Code, as added by subsection (a), shall take

17 effect on October 1, 2001, or the date of the enactment

18 of this Act, whichever is later.

19 SEC. 589. REPORT ON HEALTH AND DISABILITY BENEFITS

20 FOR PRE-ACCESSION TRAINING AND EDU21 CATION PROGRAMS.

22 (a) STUDY.—The Secretary of Defense shall conduct

23 a review of the health and disability benefit programs

24 available to recruits and officer candidates engaged in
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1 training, education, or other types of programs while not

2 yet on active duty and to cadets and midshipmen attend3 ing the service academies. The review shall be conducted

4 with the participation of the Secretaries of the military

5 departments.

6 (b) REPORT.—Not later than March 1, 2002, the

7 Secretary shall submit to the Committee on Armed Serv8 ices of the Senate and the Committee on Armed Services

9 of the House of Representatives a report on the findings

10 of the review. The report shall include the following with

11 respect to persons described in subsection (a):

12 (1) A statement of the process and detailed pro13 cedures followed by each of the Armed Forces under

14 the jurisdiction of the Secretary of a military depart15 ment to provide health care and disability benefits to

16 all such persons injured in training, education, or

17 other types of programs conducted by the Secretary

18 of a military department.

19 (2) Information on the total number of cases of

20 such persons requiring health care and disability

21 benefits and the total number of cases and average

22 value of health care and disability benefits provided

23 under the authority for each source of benefits avail24 able to those persons.
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1 (3) A discussion of the issues regarding health

2 and disability benefits for such persons that are en3 countered by the Secretary during the review, to in4 clude discussions with individuals who have received

5 those benefits.

6 (4) A statement of the processes and detailed

7 procedures followed by each of the Armed Forces

8 under the jurisdiction of the Secretary of a military

9 department to provide recruits and officer can10 didates with succinct information on the eligibility

11 requirements (including information on when they

12 become eligible) for health care benefits under the

13 Defense health care program, and the nature and

14 availability of the benefits under the program.

15 (5) A discussion of the necessity for legislative

16 changes and specific legislative proposals needed to

17 improve the benefits provided those persons.

18 TITLE VI—COMPENSATION AND

19 OTHER PERSONNEL BENEFITS

20 Subtitle A—Pay and Allowances

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

22 (a) WAIVER OF SECTION 1009 ADJUSTMENT.—The

23 adjustment to become effective during fiscal year 2002 re24 quired by section 1009 of title 37, United States Code,
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1 in the rates of monthly basic pay authorized members of

2 the uniformed services shall not be made.

3 (b) INCREASE IN BASIC PAY.—Effective on January

4 1, 2002, the rates of monthly basic pay for members of

5 the uniformed services within each pay grade are as fol6 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

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.
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COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE

AS AN ENLISTED MEMBER OR WARRANT OFFICER

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

Pay

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

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

O–2E 0.00 0.00 0.00 3,276.30 3,344.10

O–1E 0.00 0.00 0.00 2,638.50 2,818.20

Over 8 Over 10 Over 12 Over 14 Over 16

O–3E 4,070.10 4,232.40 4,441.20 4,617.00 4,717.50

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

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

Over 18 Over 20 Over 22 Over 24 Over 26

O–3E 4,855.20 4,855.20 4,855.20 4,855.20 4,855.20

O–2E 3,872.40 3,872.40 3,872.40 3,872.40 3,872.40

O–1E 3,276.30 3,276.30 3,276.30 3,276.30 3,276.30

WARRANT OFFICERS 1

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

Pay

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

W–5 .. $0.00 $0.00 $0.00 $0.00 $0.00

W–4 .. 2,889.60 3,108.60 3,198.00 3,285.90 3,437.10

W–3 .. 2,638.80 2,862.00 2,862.00 2,898.90 3,017.40

W–2 .. 2,321.40 2,454.00 2,569.80 2,654.10 2,726.40

W–1 .. 2,049.90 2,217.60 2,330.10 2,402.70 2,511.90

Over 8 Over 10 Over 12 Over 14 Over 16

W–5 .. $0.00 $0.00 $0.00 $0.00 $0.00

W–4 .. 3,586.50 3,737.70 3,885.30 4,038.00 4,184.40

W–3 .. 3,152.40 3,330.90 3,439.50 3,558.30 3,693.90

W–2 .. 2,875.20 2,984.40 3,093.90 3,200.40 3,318.00

W–1 .. 2,624.70 2,737.80 2,850.00 2,963.70 3,077.10

Over 18 Over 20 Over 22 Over 24 Over 26

W–5 .. $0.00 4,965.60 5,136.00 5,307.00 5,478.60

W–4 .. 4,334.40 4,480.80 4,632.60 4,782.00 4,935.30

W–3 .. 3,828.60 3,963.60 4,098.30 4,233.30 4,368.90

W–2 .. 3,438.90 3,559.80 3,680.10 3,801.30 3,801.30

W–1 .. 3,189.90 3,275.10 3,275.10 3,275.10 3,275.10

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers may not exceed the rate of pay for level V of the Executive Schedule.
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ENLISTED MEMBERS 1

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

Pay

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

E–9 2 $0.00 $0.00 $0.00 $0.00 $0.00

E–8 ... 0.00 0.00 0.00 0.00 0.00

E–7 ... 1,986.90 2,169.00 2,251.50 2,332.50 2,417.40

E–6 ... 1,701.00 1,870.80 1,953.60 2,033.70 2,117.40

E–5 ... 1,561.50 1,665.30 1,745.70 1,828.50 1,912.80

E–4 ... 1,443.60 1,517.70 1,599.60 1,680.30 1,752.30

E–3 ... 1,303.50 1,385.40 1,468.50 1,468.50 1,468.50

E–2 ... 1,239.30 1,239.30 1,239.30 1,239.30 1,239.30

E–1 ... 3 1,105.50 1,105.50 1,105.50 1,105.50 1,105.50

Over 8 Over 10 Over 12 Over 14 Over 16

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

E–8 ... 2,858.10 2,940.60 3,017.70 3,110.10 3,210.30

E–7 ... 2,562.90 2,645.10 2,726.40 2,808.00 2,892.60

E–6 ... 2,254.50 2,337.30 2,417.40 2,499.30 2,558.10

E–5 ... 2,030.10 2,110.20 2,193.30 2,193.30 2,193.30

E–4 ... 1,752.30 1,752.30 1,752.30 1,752.30 1,752.30

E–3 ... 1,468.50 1,468.50 1,468.50 1,468.50 1,468.50

E–2 ... 1,239.30 1,239.30 1,239.30 1,239.30 1,239.30

E–1 ... 1,105.50 1,105.50 1,105.50 1,105.50 1,105.50

Over 18 Over 20 Over 22 Over 24 Over 26

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

E–8 ... 3,314.70 3,420.30 3,573.00 3,724.80 3,937.80

E–7 ... 2,975.10 3,057.30 3,200.40 3,292.80 3,526.80

E–6 ... 2,602.80 2,602.80 2,602.80 2,602.80 2,602.80

E–5 ... 2,193.30 2,193.30 2,193.30 2,193.30 2,193.30

E–4 ... 1,752.30 1,752.30 1,752.30 1,752.30 1,752.30

E–3 ... 1,468.50 1,468.50 1,468.50 1,468.50 1,468.50

E–2 ... 1,239.30 1,239.30 1,239.30 1,239.30 1,239.30

E–1 ... 1,105.50 1,105.50 1,105.50 1,105.50 1,105.50

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for enlisted members may not exceed the rate of pay for level V of the Executive Schedule. 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)’’;
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1 (2) by striking ‘‘active service as a warrant offi2 cer or as a warrant officer and an enlisted member’’

3 and inserting ‘‘service described in paragraph (2)’’;

4 and

5 (3) by adding at the end the following new

6 paragraph:

7 ‘‘(2) Service to be taken into account for purposes

8 of computing basic pay under paragraph (1) is as follows:

9 ‘‘(A) Active service as a warrant officer or as

10 a warrant officer and an enlisted member, in the

11 case of—

12 ‘‘(i) a commissioned officer on active duty

13 who is paid from funds appropriated for active14 duty personnel; or

15 ‘‘(ii) a commissioned officer on active

16 Guard and Reserve duty.

17 ‘‘(B) In the case of a commissioned officer (not

18 referred to in subparagraph (A)(ii)) who is paid

19 from funds appropriated for reserve personnel, serv20 ice as a warrant officer, or as a warrant officer and

21 enlisted member, for which at least 1,460 points

22 have been credited to the officer for the purposes of

23 section 12732(a)(2) of title 10.’’.

24 (b) EFFECTIVE DATE.—The amendments made by

25 subsection (a) shall take effect on October 1, 2001, and
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1 shall apply with respect to months beginning on or after

2 that date.

3 SEC. 603. RESERVE COMPONENT COMPENSATION FOR DIS4 TRIBUTED LEARNING ACTIVITIES PER5 FORMED AS INACTIVE-DUTY TRAINING.

6 (a) COMPENSATION AUTHORIZED.—Section 206(d)

7 of title 37, United States Code, is amended to read as

8 follows:

9 ‘‘(d)(1) Compensation is payable under this section

10 to a member in a grade below E–7 for a period of instruc11 tion or duty in pursuit of the satisfaction of educational

12 requirements imposed on members of the uniformed serv13 ices by law or regulations if—

14 ‘‘(A) the particular activity in pursuit of the

15 satisfaction of such requirements is an activity ap16 proved for that period of instruction or duty by the

17 commander who prescribes the instruction or duty

18 for the member for that period; and

19 ‘‘(B) the member attains the learning objectives

20 required for the period of instruction or duty, as de21 termined under regulations prescribed by the Sec22 retary concerned.

23 ‘‘(2) Acceptable means of pursuit of the satisfaction

24 of educational requirements for the purposes of compensa25 tion under this section include any means (which may in-
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1 clude electronic, documentary, or distributed learning)

2 that is authorized for the attainment of educational credit

3 toward the satisfaction of those requirements in regula4 tions prescribed by the Secretary concerned.’’.

5 (b) DEFINITION OF INACTIVE-DUTY TRAINING.—

6 Section 101(22) of title 37, United States Code, is amend7 ed by striking ‘‘but does not include work or study in con8 nection with a correspondence course of a uniformed serv9 ice’’.

10 SEC. 604. CLARIFICATIONS FOR TRANSITION TO RE11 FORMED BASIC ALLOWANCE FOR SUBSIST12 ENCE.

13 (a) BASELINE AMOUNT FOR CALCULATING ALLOW14 ANCE FOR ENLISTED MEMBERS.—For the purposes of

15 section 402(b)(2) of title 37, United States Code, the

16 monthly rate of basic allowance for subsistence that is in

17 effect for an enlisted member for the year ending Decem18 ber 31, 2001, is $233.

19 (b) RATE FOR ENLISTED MEMBERS WHEN MESSING

20 FACILITIES NOT AVAILABLE.—(1) Notwithstanding sec21 tion 402 of title 37, United States Code, the Secretary

22 of Defense, or the Secretary of Transportation with re23 spect to the Coast Guard when it is not operating as a

24 service in the Navy, may prescribe a rate of basic allow25 ance for subsistence to apply to enlisted members of the
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1 uniformed services when messing facilities of the United

2 States are not available. The rate may be higher than the

3 rate of basic allowance for subsistence that would other4 wise be applicable to the members under that section, but

5 may not be higher than the highest rate that was in effect

6 for enlisted members of the uniformed services under

7 those circumstances before the date of the enactment of

8 this Act.

9 (2) Paragraph (1) shall cease to be effective on the

10 first day of the first month for which the basic allowance

11 for subsistence calculated for enlisted members of the uni12 formed services under section 402 of title 37, United

13 States Code, exceeds the rate of the basic allowance for

14 subsistence prescribed under that paragraph.

15 (c) DATE FOR EARLY TERMINATION OF BAS TRAN16 SITIONAL AUTHORITY.—Section 603(c) of the Floyd D.

17 Spence National Defense Authorization Act for Fiscal

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

19 114 Stat. 1654A–145) is amended by striking ‘‘October

20 1, 2001,’’ and inserting ‘‘January 1, 2002,’’.

21 SEC. 605. INCREASE IN BASIC ALLOWANCE FOR HOUSING

22 IN THE UNITED STATES.

23 (a) ACCELERATION OF INCREASE.—Subsection

24 403(b)(1) of title 37, United States Code, is amended by

25 adding at the end the following: ‘‘After September 30,
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1 2002, the rate prescribed for a grade and dependency sta2 tus for a military housing area in the United States may

3 not be less than the median cost of adequate housing for

4 members in that grade and dependency status in that

5 area, as determined on the basis of the costs of adequate

6 housing determined for the area under paragraph (2).’’.

7 (b) FISCAL YEAR 2002 RATES.—(1) Subject to sub8 section (b)(3) of section 403 of title 37, United States

9 Code, in the administration of such section 403 for fiscal

10 year 2002, the monthly amount of a basic allowance for

11 housing for an area of the United States for a member

12 of a uniformed service shall be equal to 92.5 percent of

13 the monthly cost of adequate housing in that area, as de14 termined by the Secretary of Defense, for members of the

15 uniformed services serving in the same pay grade and with

16 the same dependency status as the member.

17 (2) In addition to the amount determined by the Sec18 retary of Defense under section 403(b)(3) of title 37,

19 United States Code, to be the total amount to be paid

20 during fiscal year 2002 for the basic allowance for housing

21 for military housing areas inside the United States,

22 $232,000,000 of the amount authorized to be appro23 priated by section 421 for military personnel may be used

24 by the Secretary to further increase the total amount
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1 available for the basic allowance for housing for military

2 housing areas inside the United States.

3 SEC. 606. CLARIFICATION OF ELIGIBILITY FOR SUPPLE4 MENTAL SUBSISTENCE ALLOWANCE.

5 Section 402a(b)(1) of title 37, United States Code,

6 is amended by inserting ‘‘with dependents’’ after ‘‘a mem7 ber of the armed forces’’.

8 SEC. 607. CORRECTION OF LIMITATION ON ADDITIONAL

9 UNIFORM ALLOWANCE FOR OFFICERS.

10 Section 416(b)(1) of title 37, United States Code, is

11 amended by striking ‘‘$200’’ and inserting ‘‘$400’’.

12 SEC. 608. PAYMENT FOR UNUSED LEAVE IN EXCESS OF 60

13 DAYS ACCRUED BY MEMBERS OF RESERVE

14 COMPONENTS ON ACTIVE DUTY FOR ONE

15 YEAR OR LESS.

16 (a) ELIGIBILITY.—Section 501(b)(5) of title 37,

17 United States Code, is amended by—

18 (1) striking ‘‘or’’ at the end of subparagraph

19 (B);

20 (2) striking the period at the end of subpara21 graph (C) and inserting ‘‘; or’’; and

22 (3) adding at the end the following new sub23 paragraph:

24 ‘‘(D) by a member of a reserve component while

25 serving on active duty, full-time National Guard
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1 duty, or active duty for training for a period of more

2 than 30 days but not in excess of 365 days.’’.

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 periods of active

6 duty that begin on or after that date.

7 Subtitle B—Bonuses and Special

8 and Incentive Pays

9 SEC. 611. EXTENSION OF CERTAIN BONUSES AND SPECIAL

10 PAY AUTHORITIES FOR RESERVE FORCES.

11 (a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN

12 CRITICALLY SHORT WARTIME SPECIALTIES.—Section

13 302g(f) of title 37, United States Code, is amended by

14 striking ‘‘December 31, 2001’’ and inserting ‘‘December

15 31, 2002’’.

16 (b) SELECTED RESERVE REENLISTMENT BONUS.—

17 Section 308b(f) of such title is amended by striking ‘‘De18 cember 31, 2001’’ and inserting ‘‘December 31, 2002’’.

19 (c) SELECTED RESERVE ENLISTMENT BONUS.—Sec20 tion 308c(e) of such title is amended by striking ‘‘Decem21 ber 31, 2001’’ and inserting ‘‘December 31, 2002’’.

22 (d) SPECIAL PAY FOR ENLISTED MEMBERS AS23 SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section

24 308d(c) of such title is amended by striking ‘‘December

25 31, 2001’’ and inserting ‘‘December 31, 2002’’.
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1 (e) SELECTED RESERVE AFFILIATION BONUS.—Sec2 tion 308e(e) of such title is amended by striking ‘‘Decem3 ber 31, 2001’’ and inserting ‘‘December 31, 2002’’.

4 (f) READY RESERVE ENLISTMENT AND REENLIST5 MENT BONUS.—Section 308h(g) of such title is amended

6 by striking ‘‘December 31, 2001’’ and inserting ‘‘Decem7 ber 31, 2002’’.

8 (g) PRIOR SERVICE ENLISTMENT BONUS.—Section

9 308i(f) of such title is amended by striking ‘‘December

10 31, 2001’’ and inserting ‘‘December 31, 2002’’.

11 (h) REPAYMENT OF EDUCATION LOANS FOR CER12 TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE13 LECTED RESERVE.—Section 16302(d) of title 10, United

14 States Code, is amended by striking ‘‘January 1, 2002’’

15 and inserting ‘‘January 1, 2003’’.

16 SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL

17 PAY AUTHORITIES FOR NURSE OFFICER CAN18 DIDATES, REGISTERED NURSES, AND NURSE

19 ANESTHETISTS.

20 (a) NURSE OFFICER CANDIDATE ACCESSION PRO21 GRAM.—Section 2130a(a)(1) of title 10, United States

22 Code, is amended by striking ‘‘December 31, 2001’’ and

23 inserting ‘‘December 31, 2002’’.

24 (b) ACCESSION BONUS FOR REGISTERED NURSES.—

25 Section 302d(a)(1) of title 37, United States Code, is
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1 amended by striking ‘‘December 31, 2001’’ and inserting

2 ‘‘December 31, 2002’’.

3 (c) INCENTIVE SPECIAL PAY FOR NURSE ANES4 THETISTS.—Section 302e(a)(1) of title 37, United States

5 Code, is amended by striking ‘‘December 31, 2001’’ and

6 inserting ‘‘December 31, 2002’’.

7 SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AU8 THORITIES FOR NUCLEAR OFFICERS.

9 (a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI10 CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section

11 312(e) of such title is amended by striking ‘‘December 31,

12 2001’’ and inserting ‘‘December 31, 2002’’.

13 (b) NUCLEAR CAREER ACCESSION BONUS.—Section

14 312b(c) of such title is amended by striking ‘‘December

15 31, 2001’’ and inserting ‘‘December 31, 2002’’.

16 (c) NUCLEAR CAREER ANNUAL INCENTIVE

17 BONUS.—Section 312c(d) of such title is amended by

18 striking ‘‘December 31, 2001’’ and inserting ‘‘December

19 31, 2002’’.

20 SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAY21 MENT OF OTHER BONUSES AND SPECIAL

22 PAYS.

23 (a) AVIATION OFFICER RETENTION BONUS.—Sec24 tion 301b(a) of title 37, United States Code, is amended
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1 by striking ‘‘December 31, 2001,’’ and inserting ‘‘Decem2 ber 31, 2002,’’.

3 (b) REENLISTMENT BONUS FOR ACTIVE MEM4 BERS.—Section 308(g) of such title is amended by strik5 ing ‘‘December 31, 2001’’ and inserting ‘‘December 31,

6 2002’’.

7 (c) BONUS FOR ENLISTMENT FOR TWO OR MORE

8 YEARS.—Section 309(e) of such title is amended by strik9 ing ‘‘December 31, 2001’’ and inserting ‘‘December 31,

10 2002’’.

11 (d) RETENTION BONUS FOR MEMBERS WITH CRIT12 ICAL SKILLS.—Section 323(i) of such title is amended by

13 striking ‘‘December 31, 2001’’ and inserting ‘‘December

14 31, 2002’’.

15 SEC. 615. HAZARDOUS DUTY PAY FOR MEMBERS OF MARI16 TIME VISIT, BOARD, SEARCH, AND SEIZURE

17 TEAMS.

18 (a) ELIGIBILITY.—Section 301(a) of title 37, United

19 States Code, is amended—

20 (1) by striking ‘‘or’’ at the end of paragraph

21 (10);

22 (2) by striking the period at the end of para23 graph (11) and inserting ‘‘; or’’; and

24 (3) by inserting at the end the following new

25 paragraph:
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1 ‘‘(12) involving regular participation as a mem2 ber of a team conducting visit, board, search, and

3 seizure operations aboard vessels in support of mari4 time interdiction operations.’’.

5 (b) EFFECTIVE DATE.—This section and the amend6 ments made by this section shall take effect on October

7 1, 2001.

8 SEC. 616. SUBMARINE DUTY INCENTIVE PAY RATES.

9 (a) AUTHORITY.—Section 301c of title 37, United

10 States Code, is amended by striking subsection (b) and

11 inserting the following:

12 ‘‘(b) The Secretary of the Navy shall prescribe the

13 monthly rates of submarine duty incentive pay. The max14 imum monthly rate may not exceed $1,000.’’.

15 (b) CONFORMING AMENDMENTS.—(1) Subsection (a)

16 of such section is amended—

17 (A) by striking ‘‘in the amount set forth in sub18 section (b)’’ in paragraphs (1) and (2); and

19 (B) in paragraph (4), by striking ‘‘that pay in

20 the amount set forth in subsection (b)’’ and insert21 ing ‘‘submarine duty incentive pay’’.

22 (2) Subsection (d) of such section is amended by

23 striking ‘‘monthly incentive pay authorized by subsection

24 (b)’’ and inserting ‘‘monthly submarine duty incentive pay

25 authorized’’.
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall take effect on October 1, 2002.

3 SEC. 617. CAREER SEA PAY.

4 (a) IN GENERAL.—Section 305a(d) of title 37,

5 United States Code, is amended by adding at the end the

6 following: ‘‘Under no circumstances shall a member of the

7 uniformed services be excluded from this entitlement by

8 virtue of his or her rank, no matter how junior, or sub9 jected to a minimum time in service or underway in order

10 to rate this entitlement.’’.

11 (b) EFFECTIVE DATE AND APPLICABILITY.—The

12 amendment made by subsection (a) shall take effect on

13 October 1, 2001, and shall apply with respect to pay peri14 ods beginning on or after that date.

15 SEC. 618. MODIFICATION OF ELIGIBILITY REQUIREMENTS

16 FOR INDIVIDUAL READY RESERVE BONUS

17 FOR REENLISTMENT, ENLISTMENT, OR EX18 TENSION OF ENLISTMENT.

19 (a) ELIGIBILITY BASED ON QUALIFICATIONS IN

20 CRITICALLY SHORT WARTIME SKILLS OR SPECIALTIES.—

21 Section 308h(a) of title 37, United States Code, is amend22 ed to read as follows:

23 ‘‘(a)(1) The Secretary concerned may pay a bonus as

24 provided in subsection (b) to an eligible person who reen25 lists, enlists, or voluntarily extends an enlistment in a re-
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1 serve component of an armed force for assignment to an

2 element (other than the Selected Reserve) of the Ready

3 Reserve of that armed force if the reenlistment, enlist4 ment, or extension is for a period of three years, or for

5 a period of six years, beyond any other period the person

6 is obligated to serve.

7 ‘‘(2) A person is eligible for a bonus under this sec8 tion if the person—

9 ‘‘(A) is or has been a member of an armed

10 force;

11 ‘‘(B) is qualified in a skill or specialty des12 ignated by the Secretary concerned as a critically

13 short wartime skill or critically short wartime spe14 cialty, respectively; and

15 ‘‘(C) has not failed to complete satisfactorily

16 any original term of enlistment in the armed forces.

17 ‘‘(3) For the purposes of this section, the Secretary

18 concerned may designate a skill or specialty as a critically

19 short wartime skill or critically short wartime specialty,

20 respectively, for an armed force under the jurisdiction of

21 the Secretary if the Secretary determines that—

22 ‘‘(A) the skill or specialty is critical to meet

23 wartime requirements of the armed force; and
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1 ‘‘(B) there is a critical shortage of personnel in

2 that armed force who are qualified in that skill or

3 specialty.’’.

4 (b) REGULATIONS.—The Secretaries of the military

5 departments shall prescribe the regulations necessary for

6 administering section 308h of title 37, United States

7 Code, as amended by this section, not later than the effec8 tive date determined under subsection (c)(1).

9 (c) EFFECTIVE DATE.—This section and the amend10 ments made by this section—

11 (1) shall take effect on the first day of the first

12 month that begins more than 180 days after the

13 date of the enactment of this Act; and

14 (2) shall apply with respect to reserve compo15 nent reenlistments, enlistments, and extensions of

16 enlistments that are executed on or after the first

17 day of that month.

18 SEC. 619. ACCESSION BONUS FOR OFFICERS IN CRITICAL

19 SKILLS.

20 (a) IN GENERAL.—(1) Chapter 5 of title 37, United

21 States Code, is amended by inserting after section 323 the

22 following new section:
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1 ‘‘§ 324. Special pay: critical officer skills accession

2 bonus

3 ‘‘(a) ACCESSION BONUS AUTHORIZED.—A person

4 who executes a written agreement to accept a commission

5 as an officer of an armed force and serve on active duty

6 in a designated critical officer skill for the period specified

7 in the agreement may be paid an accession bonus upon

8 acceptance of the written agreement by the Secretary con9 cerned.

10 ‘‘(b) DESIGNATION OF CRITICAL OFFICER SKILLS.—

11 (1) The Secretary of Defense, or the Secretary of Trans12 portation with respect to the Coast Guard when it is not

13 operating as a service in the Navy, shall designate the crit14 ical officer skills for the purposes of this section. The Sec15 retary of Defense may so designate a skill for any one

16 or more of the armed forces.

17 ‘‘(2) A skill may be designated as a critical officer

18 skill for an armed force for the purposes of this section

19 if—

20 ‘‘(A) in order to meet requirements of the

21 armed force, it is critical for the armed force to have

22 a sufficient number of officers who are qualified in

23 that skill; and

24 ‘‘(B) in order to mitigate a current or projected

25 significant shortage of personnel in the armed force

26 who are qualified in that skill, it is critical to access
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1 into that armed force in sufficient numbers persons

2 who are qualified in that skill or are to be trained

3 in that skill.

4 ‘‘(c) AMOUNT OF BONUS.—The amount of a bonus

5 paid with respect to a critical officer skill shall be deter6 mined under regulations jointly prescribed by the Sec7 retary of Defense and the Secretary of Transportation,

8 but may not exceed $20,000.

9 ‘‘(d) LIMITATION ON ELIGIBILITY FOR BONUS.—An

10 individual may not be paid a bonus under subsection (a)

11 if the individual has received, or is receiving, an accession

12 bonus for the same period of service under section 302d,

13 302h, or 312b of this title.

14 ‘‘(e) PAYMENT METHOD.—Upon acceptance of a

15 written agreement referred to in subsection (a) by the Sec16 retary concerned, the total amount payable pursuant to

17 the agreement under this section becomes fixed and may

18 be paid by the Secretary in either a lump sum or install19 ments.

20 ‘‘(f) REPAYMENT FOR FAILURE TO COMPLETE OBLI21 GATED SERVICE.—(1) A person who, after having received

22 all or part of the bonus under this section pursuant to

23 an agreement referred to in subsection (a), fails to accept

24 an appointment as a commissioned officer or to commence

25 or complete the total period of active duty service in a
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1 designated critical officer skill as provided in the agree2 ment shall refund to the United States the amount that

3 bears the same ratio to the total amount of the bonus au4 thorized for such person as the unserved part of the period

5 of agreed active duty service in a designated critical officer

6 skill bears to the total period of the agreed active duty

7 service, but not more than the amount that was paid to

8 the person.

9 ‘‘(2) Subject to paragraph (3), an obligation to reim10 burse the United States imposed under paragraph (1) is

11 for all purposes a debt owed to the United States.

12 ‘‘(3) The Secretary concerned may waive, in whole

13 or in part, a refund required under paragraph (1) if the

14 Secretary concerned determines that recovery would be

15 against equity and good conscience or would be contrary

16 to the best interests of the United States.

17 ‘‘(4) A discharge in bankruptcy under title 11 that

18 is entered less than five years after the termination of a

19 written agreement entered into under subsection (a) does

20 not discharge the person signing the agreement from a

21 debt arising under such agreement or under paragraph

22 (1).

23 ‘‘(g) TERMINATION OF AUTHORITY.—No bonus may

24 be paid under this section with respect to an agreement

25 entered into after December 31, 2002.’’.
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1 (2) The table of sections at the beginning of such

2 chapter is amended by inserting after the item relating

3 to section 323 the following new item:

‘‘324. Special pay: critical officer skills accession bonus.’’.

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.

7 SEC. 620. MODIFICATION OF THE NURSE OFFICER CAN8 DIDATE ACCESSION PROGRAM RESTRICTION

9 ON STUDENTS ATTENDING CIVILIAN EDU10 CATIONAL INSTITUTIONS WITH SENIOR RE11 SERVE OFFICERS’ TRAINING PROGRAMS.

12 Section 2130a of title 10, United States Code, is

13 amended—

14 (1) in subsection (a)(2), by striking ‘‘that does

15 not have a Senior Reserve Officers’ Training Pro16 gram established under section 2102 of this title’’;

17 and

18 (2) in subsection (b)(1), by striking ‘‘that does

19 not have a Senior Reserve Officers’ Training Pro20 gram established under section 2102 of this title’’

21 and inserting ‘‘and, in the case of a student so en22 rolled at a civilian institution that has a Senior Re23 serve Officers’ Training Program established under

24 section 2102 of this title, is not eligible to partici-
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1 pate in the Senior Reserve Officers’ Training Pro2 gram’’.

3 SEC. 621. ELIGIBILITY FOR CERTAIN CAREER CONTINU4 ATION BONUSES FOR EARLY COMMITMENT

5 TO REMAIN ON ACTIVE DUTY.

6 (a) AVIATION OFFICERS.—Section 301b(b)(4) of title

7 37, United States Code, is amended by striking ‘‘has com8 pleted’’ and inserting ‘‘is within one year of the completion

9 of’’.

10 (b) SURFACE WARFARE OFFICERS.—Section

11 319(a)(3) of title 37, United States Code, is amended by

12 striking ‘‘has completed’’ and inserting ‘‘is within one year

13 of the completion of’’.

14 SEC. 622. HOSTILE FIRE OR IMMINENT DANGER PAY.

15 (a) IN GENERAL.—Chapter 59, Subchapter IV of

16 title 5, United States Code, is amended by adding at the

17 end the following new section:

18 ‘‘§ 5949 Hostile fire or imminent danger pay

19 ‘‘(a) The head of an Executive agency may pay an

20 employee special pay at the rate of $150 for any month

21 in which the employee, while on duty in the United

22 States—

23 ‘‘(1) was subject to hostile fire or explosion of

24 hostile mines;
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1 ‘‘(2) was in an area of the Pentagon in which

2 the employee was in imminent danger of being ex3 posed to hostile fire or explosion of hostile mines and

4 in which, during the period on duty in that area,

5 other employees were subject to hostile fire or explo6 sion of hostile mines;

7 ‘‘(3) was killed, injured, or wounded by hostile

8 fire, explosion of a hostile mine, or any other hostile

9 action; or

10 ‘‘(4) was in an area of the Pentagon in which

11 the employee was subject to the threat of physical

12 harm or imminent danger on the basis of civil insur13 rection, civil war, terrorism, or wartime conditions.

14 ‘‘(b) An employee covered by subsection (a)(3) who

15 is hospitalized for the treatment of his injury or wound

16 may be paid special pay under this section for not more

17 than three additional months during which the employee

18 is so hospitalized.

19 ‘‘(c) For the purpose of this section, ‘‘United States’’

20 means the several States, the District of Columbia, the

21 Commonwealth of Puerto Rico, the Commonwealth of the

22 Northern Mariana Islands, and the territories and posses23 sions of the United States.

24 ‘‘(d) An employee may be paid special pay under this

25 section in addition to other pay and allowances to which
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1 entitled. Payments under this section may not be consid2 ered to be part of basic pay of an employee.’’.

3 (b) TECHNICAL AMENDMENT.—The table of sections

4 at the beginning of chapter 59 of such title is amended

5 by inserting at the end the following new item:

‘‘5949. Hostile fire or imminent danger pay.’’.

6 (c) EFFECTIVE DATE.—This provision is effective as

7 if enacted into law on September 11, 2001, and may be

8 applied to any hostile action that took place on that date

9 or thereafter.

10 Subtitle C—Travel and

11 Transportation Allowances

12 SEC. 631. ELIGIBILITY FOR TEMPORARY HOUSING ALLOW13 ANCE WHILE IN TRAVEL OR LEAVE STATUS

14 BETWEEN PERMANENT DUTY STATIONS.

15 (a) PERSONNEL IN GRADES BELOW E–4.—Section

16 403(i) of title 37, United States Code, is amended by

17 striking ‘‘who is in a pay grade E–4 (4 or more years

18 of service) or above’’.

19 (b) EFFECTIVE DATE.—The amendment made by

20 subsection (a) shall take effect on October 1, 2001.
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1 SEC. 632. ELIGIBILITY FOR PAYMENT OF SUBSISTENCE EX2 PENSES ASSOCIATED WITH OCCUPANCY OF

3 TEMPORARY LODGING INCIDENT TO RE4 PORTING TO FIRST PERMANENT DUTY STA5 TION.

6 (a) OFFICER PERSONNEL.—Section 404a(a)(2)(C) of

7 title 37, United States Code, is amended by striking ‘‘an

8 enlisted member’’ and inserting ‘‘a member’’.

9 (b) EFFECTIVE DATE.—The amendment made by

10 subsection (a) shall take effect on October 1, 2001.

11 SEC. 633. ELIGIBILITY FOR DISLOCATION ALLOWANCE.

12 (a) MEMBERS WITH DEPENDENTS WHEN ORDERED

13 TO FIRST DUTY STATION.—Section 407 of title 37,

14 United States Code, is amended—

15 (1) in subsection (a)(2), by adding at the end

16 the following new subparagraph:

17 ‘‘(F) A member whose dependents actually

18 move from the member’s place of residence in con19 nection with the performance of orders for the mem20 ber to report to the member’s first permanent duty

21 station if the move—

22 ‘‘(i) is to the permanent duty station or a

23 designated location; and

24 ‘‘(ii) is an authorized move.’’; and
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1 (2) in subsection (e), by inserting ‘‘(except as

2 provided in subsection (a)(2)(F))’’ after ‘‘first duty

3 station’’.

4 (b) MARRIED MEMBERS WITHOUT DEPENDENTS AS5 SIGNED TO GOVERNMENT FAMILY QUARTERS.—Sub6 section (a) of such section, as amended by subsection (a),

7 is further amended—

8 (1) by adding at the end of paragraph (2) the

9 following new subparagraph:

10 ‘‘(G) Each of two members married to each

11 other who—

12 ‘‘(i) is without dependents;

13 ‘‘(ii) actually moves with the member’s

14 spouse to a new permanent duty station; and

15 ‘‘(iii) is assigned to family quarters of the

16 United States at or in the vicinity of the new

17 duty station.’’; and

18 (2) by adding at the end of the subsection the

19 following new paragraph:

20 ‘‘(4) If a primary dislocation allowance is payable to

21 two members described in subparagraph (G) of paragraph

22 (2) who are married to each other, the amount of the al23 lowance payable to such members shall be the amount oth24 erwise payable under this subsection to the member in the

25 higher pay grade, or to either member if both members
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1 are in the same pay grade. The allowance shall be paid

2 jointly to both members.’’.

3 (c) EFFECTIVE DATE.—This section and the amend4 ments made by this section shall take effect on October

5 1, 2001.

6 SEC. 634. ALLOWANCE FOR DISLOCATION FOR THE CON7 VENIENCE OF THE GOVERNMENT AT HOME

8 STATION.

9 (a) AUTHORITY.—(1) Chapter 7 of title 37, United

10 States Code is amended by inserting after section 407 the

11 following new section:

12 ‘‘§ 407a. Travel and transportation: allowance for dis13 location for the convenience of the Gov14 ernment at home station

15 ‘‘(a) AUTHORITY.—Under regulations prescribed by

16 the Secretary concerned, a member of the uniformed serv17 ices may be paid a dislocation allowance under this section

18 when ordered, for the convenience of the Government and

19 not pursuant to a permanent change of station, to occupy

20 or to vacate family housing provided by the Department

21 of Defense, or by the Department of Transportation in

22 the case of the Coast Guard.

23 ‘‘(b) AMOUNT.—(1) Subject to paragraph (2), the

24 amount of a dislocation allowance paid under this section

25 is $500.
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1 ‘‘(2) Effective on the same date that the monthly

2 rates of basic pay for members of the uniformed services

3 are increased under section 1009 of this title or by a law

4 increasing those rates by a percentage specified in the law,

5 the amount of the dislocation allowance provided under

6 this section shall be increased by the percentage by which

7 the monthly rates of basic pay are so increased.

8 ‘‘(c) ADVANCE PAYMENT.—A dislocation allowance

9 payable under this section may be paid in advance.’’.

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

11 chapter is amended by inserting after the item relating

12 to section 407 the following new item:

‘‘407a. Travel and transportation: allowance for dislocation for the convenience

of the Government at home station.’’.

13 (b) EFFECTIVE DATE.—Section 407a of title 37,

14 United States Code, shall take effect on October 1, 2001.

15 SEC. 635. TRAVEL AND TRANSPORTATION ALLOWANCES

16 FOR FAMILY MEMBERS TO ATTEND THE BUR17 IAL OF A DECEASED MEMBER OF THE UNI18 FORMED SERVICES.

19 (a) CONSOLIDATION OF AUTHORITIES.—Section 411f

20 of title 37, United States Code, is amended—

21 (1) in subsection (a)—

22 (A) by inserting ‘‘ALLOWANCES AUTHOR23 IZED.—(1)’’ after ‘‘(a)’’;
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1 (B) by striking ‘‘the dependents of a mem2 ber’’ and inserting ‘‘eligible members of the

3 family of a member of the uniformed services’’;

4 (C) by striking ‘‘such dependents’’ and in5 serting ‘‘such persons’’; and

6 (D) by inserting at the end the following

7 new paragraph:

8 ‘‘(2) An attendant accompanying a person provided

9 travel and transportation allowances under this section for

10 travel to the burial ceremony for a deceased member may

11 also be provided under the uniform regulations round trip

12 travel and transportation allowances for travel to the bur13 ial ceremony if—

14 ‘‘(A) the accompanied person is unable to travel

15 unattended because of age, physical condition, or

16 other justifiable reason, as determined under the

17 uniform regulations; and

18 ‘‘(B) there is no other eligible member of the

19 family of the deceased member traveling to the bur20 ial ceremony who is eligible for travel and transpor21 tation allowances under this section and is qualified

22 to serve as the attendant.’’;

23 (2) in subsection (b)—

24 (A) in paragraph (1)—
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1 (i) by striking ‘‘(1) Except as pro2 vided in paragraph (2)’’ and inserting

3 ‘‘LIMITATIONS.—(1) Except as provided in

4 paragraphs (2) and (3)’’; and

5 (ii) by inserting before the period at

6 the end the following: ‘‘and the time nec7 essary for such travel’’;

8 (B) in paragraph (2), by striking ‘‘be ex9 tended to accommodate’’ and inserting ‘‘not ex10 ceed the rates for 2 days and’’; and

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

12 paragraph:

13 ‘‘(3) If a deceased member is interred in a cemetery

14 maintained by the American Battle Monuments Commis15 sion, the travel and transportation allowances authorized

16 under this section may be provided to and from such ceme17 tery and may not exceed the rates for 2 days and the time

18 necessary for such travel.’’; and

19 (3) by striking subsection (c) and inserting the

20 following:

21 ‘‘(c) ELIGIBLE MEMBERS OF FAMILY.—The fol22 lowing members of the family of a deceased member of

23 the uniformed services are eligible for the travel and trans24 portation allowances under this section:
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1 ‘‘(1) The surviving spouse (including a remar2 ried surviving spouse) of the deceased member.

3 ‘‘(2) The unmarried child or children of the de4 ceased member referred to in section 401(a)(2) of

5 this title.

6 ‘‘(3) If no person described in paragraphs (1)

7 and (2) is provided travel and transportation allow8 ances under this section, the parent or parents of

9 the deceased member (as defined in section

10 401(b)(2) of this title).

11 ‘‘(4) If no person described in paragraphs (1),

12 (2), and (3) is provided travel and transportation al13 lowances under this section, then—

14 ‘‘(A) the person who directs the disposition

15 of the remains of the deceased member under

16 section 1482(c) of title 10, or, in the case of a

17 deceased member whose remains are commin18 gled and buried in a common grave in a na19 tional cemetery, the person who would have

20 been designated under such section to direct the

21 disposition of the remains if individual identi22 fication had been made; and

23 ‘‘(B) up to two additional persons closely

24 related to the deceased member who are se-
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1 lected by the person referred to in subpara2 graph (A).

3 ‘‘(d) DEFINITIONS.—In this section:

4 ‘‘(1) The term ‘burial ceremony’ includes the

5 following:

6 ‘‘(A) An interment of casketed or cremated

7 remains.

8 ‘‘(B) A placement of cremated remains in

9 a columbarium.

10 ‘‘(C) A memorial service for which reim11 bursement is authorized under section

12 1482(d)(2) of title 10.

13 ‘‘(D) A burial of commingled remains that

14 cannot be individually identified in a common

15 grave in a national cemetery.

16 ‘‘(2) The term ‘member of the family’ includes

17 a person described in section 1482(c)(4) of title 10

18 who, except for this paragraph, would not otherwise

19 be considered a family member.’’.

20 (b) REPEAL OF SUPERSEDED LAWS.—(1) Section

21 1482 of title 10, United States Code, is amended by strik22 ing subsection (d) and redesignating subsections (e), (f),

23 and (g) as subsections (d), (e), and (f), respectively.
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1 (2) The Funeral Transportation and Living Expense

2 Benefits Act of 1974 (Public Law 93–257; 88 Stat. 53;

3 37 U.S.C. 406 note) is repealed.

4 (c) APPLICABILITY.—The amendments made by this

5 Act shall apply with respect to deaths that occur on or

6 after the later of—

7 (1) October 1, 2001; or

8 (2) the date of the enactment of this Act.

9 SEC. 636. FAMILY SEPARATION ALLOWANCE FOR MEMBERS

10 ELECTING UNACCOMPANIED TOUR BY REA11 SON OF HEALTH LIMITATIONS OF DEPEND12 ENTS.

13 (a) ELIGIBILITY.—Section 427(c) of title 37, United

14 States Code, is amended—

15 (1) in the first sentence, by striking ‘‘A member

16 who elects’’ and inserting ‘‘(1) Except as provided in

17 paragraph (2), a member who elects’’;

18 (2) in the second sentence, by striking ‘‘The

19 Secretary concerned may waive the preceding sen20 tence’’ and inserting the following:

21 ‘‘(3) The Secretary concerned may waive paragraph

22 (1)’’; and

23 (3) by inserting after paragraph (1) (as des24 ignated by the amendment made by paragraph (1)

25 of this section) the following new paragraph:
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1 ‘‘(2) The prohibition in the first sentence of para2 graph (1) does not apply in the case of a member who

3 elects to serve a tour of duty unaccompanied by his de4 pendents at the member’s permanent station because a de5 pendent cannot accompany the member to or at that per6 manent station for medical reasons certified by a health

7 care professional in accordance with regulations prescribed

8 for the administration of this section.’’.

9 (b) EFFECTIVE DATE.—This section and the amend10 ments made by this section shall take effect on October

11 1, 2001.

12 SEC. 637. FUNDED STUDENT TRAVEL FOR FOREIGN STUDY

13 UNDER AN EDUCATION PROGRAM APPROVED

14 BY A UNITED STATES SCHOOL.

15 (a) AUTHORITY.—Section 430 of title 37, United

16 States Code, is amended—

17 (1) in subsection (a)(3)—

18 (A) by striking ‘‘attending’’ and inserting

19 ‘‘enrolled in’’; and

20 (B) by inserting before the comma at the

21 end the following: ‘‘and is attending that school

22 or is participating in a foreign study program

23 approved by that school and, pursuant to that

24 program, is attending a school outside the
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1 United States for a period of not more than one

2 year’’; and

3 (2) in subsection (b)—

4 (A) in the first sentence of paragraph (1),

5 by striking ‘‘each unmarried dependent child,’’

6 and all that follows through ‘‘the school being

7 attended’’ and inserting ‘‘each unmarried de8 pendent child (described in subsection (a)(3)) of

9 one annual trip between the school being at10 tended by that child’’; and

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

12 paragraph:

13 ‘‘(3) The transportation allowance paid under para14 graph (1) for an annual trip of a dependent child de15 scribed in subsection (a)(3) who is attending a school out16 side the United States may not exceed the transportation

17 allowance that would be paid under this section for the

18 annual trip of that child between the child’s school in the

19 continental United States and the member’s duty station

20 outside the continental United States and return.’’.

21 (b) EFFECTIVE DATE.—This section and the amend22 ments made by this section shall take effect on October

23 1, 2001, and shall apply with respect to travel that origi24 nates outside the continental United States (as defined in
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1 section 430(f) of title 37, United States Code), on or after

2 that date.

3 SEC. 638. TRANSPORTATION OR STORAGE OF PRIVATELY

4 OWNED VEHICLES ON CHANGE OF PERMA5 NENT STATION.

6 (a) ADVANCE PAYMENT OF STORAGE COSTS.—Sec7 tion 2634(b) of title 10, United States Code, is amended

8 by adding at the end the following new paragraph:

9 ‘‘(4) Storage costs payable under this subsection may

10 be paid in advance.’’.

11 (b) SHIPMENT IN PERMANENT CHANGE OF STATION

12 WITHIN CONUS.—Subsection (h)(1) of such section is

13 amended—

14 (1) by striking ‘‘includes’’ in the second sen15 tence and all that follows and inserting ‘‘includes the

16 following:’’; and

17 (2) by adding at the end the following subpara18 graphs:

19 ‘‘(A) An authorized change in home port of

20 a vessel.

21 ‘‘(B) A transfer or assignment between

22 two permanent stations in the continental

23 United States when—

24 ‘‘(i) the member cannot, because of

25 injury or the conditions of the order, drive
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1 the motor vehicle between the permanent

2 duty stations; or

3 ‘‘(ii) the Secretary concerned deter4 mines that it is advantageous and cost-ef5 fective to the Government for one motor

6 vehicle of the member to be transported

7 between the permanent duty stations.’’.

8 (c) EFFECTIVE DATE.—This section and the amend9 ments made by this section shall take effect on October

10 1, 2001.

11 Subtitle D—Matters Relating to

12 Retirement and Survivor Benefits

13 SEC. 651. PAYMENT OF RETIRED PAY AND COMPENSATION

14 TO DISABLED MILITARY RETIREES.

15 (a) RESTORATION OF RETIRED PAY BENEFITS.—

16 Chapter 71 of title 10, United States Code, is amended

17 by adding at the end the following new section:

18 ‘‘§ 1414. Members eligible for retired pay who have

19 service-connected disabilities: payment of

20 retired pay and veterans’ disability com21 pensation

22 ‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM23 PENSATION.—Except as provided in subsection (b), a

24 member or former member of the uniformed services who

25 is entitled to retired pay (other than as specified in sub-
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1 section (c)) and who is also entitled to veterans’ disability

2 compensation is entitled to be paid both without regard

3 to sections 5304 and 5305 of title 38.

4 ‘‘(b) SPECIAL RULE FOR CHAPTER 61 CAREER RE5 TIREES.—The retired pay of a member retired under

6 chapter 61 of this title with 20 years or more of service

7 otherwise creditable under section 1405 of this title at the

8 time of the member’s retirement is subject to reduction

9 under sections 5304 and 5305 of title 38, but only to the

10 extent that the amount of the member’s retired pay under

11 chapter 61 of this title exceeds the amount of retired pay

12 to which the member would have been entitled under any

13 other provision of law based upon the member’s service

14 in the uniformed services if the member had not been re15 tired under chapter 61 of this title.

16 ‘‘(c) EXCEPTION.—Subsection (a) does not apply to

17 a member retired under chapter 61 of this title with less

18 than 20 years of service otherwise creditable under section

19 1405 of this title at the time of the member’s retirement.

20 ‘‘(d) DEFINITIONS.—In this section:

21 ‘‘(1) The term ‘retired pay’ includes retainer

22 pay, emergency officers’ retirement pay, and naval

23 pension.
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1 ‘‘(2) The term ‘veterans’ disability compensa2 tion’ has the meaning given the term ‘compensation’

3 in section 101(13) of title 38.’’.

4 (b) REPEAL OF SPECIAL COMPENSATION PRO5 GRAM.—Section 1413 of such title is repealed.

6 (c) CLERICAL AMENDMENTS.—The table of sections

7 at the beginning of such chapter is amended—

8 (1) by striking the item relating to section

9 1413; and

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

11 item:

‘‘1414. Members eligible for retired pay who have service-connected disabilities:

payment of retired pay and veterans’ disability compensation.’’.

12 (d) EFFECTIVE DATE.—(1) The amendments made

13 by this section shall take effect on October 1, 2002.

14 (2) No benefits may be paid to any person by reason

15 of section 1414 of title 10, United States Code, as added

16 by the amendment made by subsection (a), for any period

17 before the effective date under paragraph (1).

18 SEC. 652. SBP ELIGIBILITY OF SURVIVORS OF RETIRE19 MENT-INELIGIBLE MEMBERS OF THE UNI20 FORMED SERVICES WHO DIE WHILE ON AC21 TIVE DUTY.

22 (a) SURVIVING SPOUSE ANNUITY.—Section 1448(d)

23 of title 10, United States Code, is amended by striking

24 paragraph (1) and inserting the following:
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1 ‘‘(1) SURVIVING SPOUSE ANNUITY.—The Sec2 retary concerned shall pay an annuity under this

3 subchapter to the surviving spouse of—

4 ‘‘(A) a member who dies while on active

5 duty after—

6 ‘‘(i) becoming eligible to receive re7 tired pay;

8 ‘‘(ii) qualifying for retired pay except

9 that the member has not applied for or

10 been granted that pay; or

11 ‘‘(iii) completing 20 years of active

12 service but before the member is eligible to

13 retire as a commissioned officer because

14 the member has not completed 10 years of

15 active commissioned service; or

16 ‘‘(B) a member not described in subpara17 graph (A) who dies in line of duty while on ac18 tive duty.’’.

19 (b) COMPUTATION OF SURVIVOR ANNUITY.—Section

20 1451(c)(1) of title 10, United States Code, is amended—

21 (1) in subparagraph (A)—

22 (A) by striking ‘‘based upon his years of

23 active service when he died.’’ and inserting

24 ‘‘based upon the following:’’; and
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1 (B) by adding at the end the following new

2 clauses:

3 ‘‘(i) In the case of an annuity payable

4 under section 1448(d) of this title by rea5 son of the death of a member in line of

6 duty, the retired pay base computed for

7 the member under section 1406(b) or 1407

8 of this title as if the member had been re9 tired under section 1201 of this title on

10 the date of the member’s death with a dis11 ability rated as total.

12 ‘‘(ii) In the case of an annuity payable

13 under section 1448(d)(1)(A) of this title by

14 reason of the death of a member not in

15 line of duty, the member’s years of active

16 service when he died.

17 ‘‘(iii) In the case of an annuity under

18 section 1448(f) of this title, the member’s

19 years of active service when he died.’’; and

20 (2) in subparagraph (B)(i), by striking ‘‘if the

21 member or former member’’ and all that follows and

22 inserting ‘‘as described in subparagraph (A).’’.

23 (c) CONFORMING AMENDMENTS.—(1) The heading

24 for subsection (d) of section 1448 of such title is amended

25 by striking ‘‘RETIREMENT-ELIGIBLE’’.
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1 (2) Subsection (d)(3) of such section is amended by

2 striking ‘‘1448(d)(1)(B) or 1448(d)(1)(C)’’ and inserting

3 ‘‘clause (ii) or (iii) of section 1448(d)(1)(A)’’.

4 (d) EXTENSION AND INCREASE OF OBJECTIVES FOR

5 RECEIPTS FROM DISPOSALS OF CERTAIN STOCKPILE MA6 TERIALS AUTHORIZED FOR SEVERAL FISCAL YEARS BE7 GINNING WITH FISCAL YEAR 1999.—Section 3303(a) of

8 the Strom Thurmond National Defense Authorization Act

9 for Fiscal Year 1999 (Public Law 105–261; 112 Stat.

10 2262; 50 U.S.C. 98d note) is amended—

11 (1) by striking ‘‘and’’ at the end of paragraph

12 (3);

13 (2) in paragraph (4)—

14 (A) by striking ‘‘$720,000,000’’ and in15 serting ‘‘$760,000,000’’; and

16 (B) by striking the period at the end and

17 inserting ‘‘; and’’; and

18 (3) by adding at the end the following new

19 paragraph:

20 ‘‘(5) $770,000,000 by the end of fiscal year

21 2011.’’.

22 (e) EFFECTIVE DATE AND APPLICABILITY.—This

23 section and the amendments made by this section shall

24 take effect as of September 10, 2001, and shall apply with
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1 respect to deaths of members of the Armed Forces occur2 ring on or after that date.

3 Subtitle E—Other Matters

4 SEC. 661. EDUCATION SAVINGS PLAN FOR REENLISTMENTS

5 AND EXTENSIONS OF SERVICE IN CRITICAL

6 SPECIALTIES.

7 (a) ESTABLISHMENT OF SAVINGS PLAN.—(1) Chap8 ter 5 of title 37, United States Code, is amended by add9 ing at the end the following new section:

10 ‘‘§ 324. Incentive bonus: savings plan for education

11 expenses and other contingencies

12 ‘‘(a) BENEFIT AND ELIGIBILITY.—The Secretary

13 concerned may purchase United States savings bonds

14 under this section for a member of the armed forces who

15 is eligible as follows:

16 ‘‘(1) A member who, before completing three

17 years of service on active duty, enters into a commit18 ment to perform qualifying service.

19 ‘‘(2) A member who, after completing three

20 years of service on active duty but not more than

21 nine years of service on active duty, enters into a

22 commitment to perform qualifying service.

23 ‘‘(3) A member who, after completing nine

24 years of service on active duty, enters into a commit25 ment to perform qualifying service.
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1 ‘‘(b) QUALIFYING SERVICE.—For the purposes of

2 this section, qualifying service is service on active duty in

3 a specialty designated by the Secretary concerned as crit4 ical to meet requirements (whether or not such specialty

5 is designated as critical to meet wartime or peacetime re6 quirements) for a period that—

7 ‘‘(1) is not less than six years; and

8 ‘‘(2) does not include any part of a period for

9 which the member is obligated to serve on active

10 duty under an enlistment or other agreement for

11 which a benefit has previously been paid under this

12 section.

13 ‘‘(c) FORMS OF COMMITMENT TO ADDITIONAL SERV14 ICE.—For the purposes of this section, a commitment

15 means—

16 ‘‘(1) in the case of an enlisted member, a reen17 listment; and

18 ‘‘(2) in the case of a commissioned officer, an

19 agreement entered into with the Secretary con20 cerned.

21 ‘‘(d) AMOUNTS OF BONDS.—The total of the face

22 amounts of the United States savings bonds authorized

23 to be purchased for a member under this section for a

24 commitment shall be as follows:
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1 ‘‘(1) In the case of a purchase for a member

2 under paragraph (1) of subsection (a), $5,000.

3 ‘‘(2) In the case of a purchase for a member

4 under paragraph (2) of subsection (a), the amount

5 equal to the excess of $15,000 over the total of the

6 face amounts of any United States savings bonds

7 previously purchased for the member under this sec8 tion.

9 ‘‘(3) In the case of a purchase for a member

10 under paragraph (3) of subsection (a), the amount

11 equal to the excess of $30,000 over the total of the

12 face amounts of any United States savings bonds

13 previously purchased for the member under this sec14 tion.

15 ‘‘(e) TOTAL AMOUNT OF BENEFIT.—The total

16 amount of the benefit authorized for a member when

17 United States savings bonds are purchased for the mem18 ber under this section by reason of a commitment by that

19 member shall be the sum of—

20 ‘‘(1) the purchase price of the United States

21 savings bonds; and

22 ‘‘(2) the amounts that would be deducted and

23 withheld for the payment of individual income taxes

24 if the total amount computed under this subsection
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1 for that commitment were paid to the member as a

2 bonus.

3 ‘‘(f) AMOUNT WITHHELD FOR TAXES.—The total

4 amount payable for a member under subsection (e)(2) for

5 a commitment by that member shall be withheld, credited,

6 and otherwise treated in the same manner as amounts de7 ducted and withheld from the basic pay of the member.

8 ‘‘(g) REPAYMENT FOR FAILURE TO COMPLETE OB9 LIGATED SERVICE.—(1) If a person fails to complete the

10 qualifying service for which the person is obligated under

11 a commitment for which a benefit has been paid under

12 this section, the person shall refund to the United States

13 the amount that bears the same ratio to the total amount

14 paid for the person (as computed under subsection (e))

15 for that particular commitment as the uncompleted part

16 of the period of qualifying service bears to the total period

17 of the qualifying service for which obligated.

18 ‘‘(2) Subject to paragraph (3), an obligation to reim19 burse the United States imposed under paragraph (1) is

20 for all purposes a debt owed to the United States.

21 ‘‘(3) The Secretary concerned may waive, in whole

22 or in part, a refund required under paragraph (1) if the

23 Secretary concerned determines that recovery would be

24 against equity and good conscience or would be contrary

25 to the best interests of the United States.
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1 ‘‘(4) A discharge in bankruptcy under title 11 that

2 is entered less than five years after the termination of an

3 enlistment or other agreement under this section does not

4 discharge the person signing such reenlistment or other

5 agreement from a debt arising under the reenlistment or

6 agreement, respectively, or this subsection.

7 ‘‘(h) RELATIONSHIP TO OTHER SPECIAL PAYS.—The

8 benefit authorized under this section is in addition to any

9 other bonus or incentive or special pay that is paid or pay10 able to a member under any other provision of this chapter

11 for any portion of the same qualifying service.

12 ‘‘(i) REGULATIONS.—This section shall be adminis13 tered under regulations prescribed by the Secretary of De14 fense for the armed forces under his jurisdiction and by

15 the Secretary of Transportation for the Coast Guard when

16 the Coast Guard is not operating as a service in the

17 Navy.’’.

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:

‘‘324. Incentive bonus: savings plan for education and other contingencies.’’.

21 (b) EFFECTIVE DATE.—Section 324 of title 37,

22 United States Code (as added by subsection (a)), shall

23 take effect on October 1, 2001, and shall apply with re24 spect to reenlistments and other agreements for qualifying
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1 service (described in that section) that are entered into

2 on or after that date.

3 (c) FUNDING FOR FISCAL YEAR 2002.—Of the

4 amount authorized to be appropriated to the Department

5 of Defense for military personnel for fiscal year 2002 by

6 section 421, $20,000,000 may be available in that fiscal

7 year for the purchase of United States savings bonds

8 under section 324 of title 37, United States Code (as

9 added by subsection (a)).

10 SEC. 662. COMMISSARY BENEFITS FOR NEW MEMBERS OF

11 THE READY RESERVE.

12 (a) ELIGIBILITY.—Section 1063 of title 10, United

13 States Code, is amended—

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

15 subsections (c) and (d), respectively; and

16 (2) by inserting after subsection (a) the fol17 lowing new subsection (b):

18 ‘‘(b) ELIGIBILITY OF NEW MEMBERS.—(1) The Sec19 retary concerned shall authorize a new member of the

20 Ready Reserve to use commissary stores of the Depart21 ment of Defense for a number of days accruing at the

22 rate of two days for each month in which the member par23 ticipates satisfactorily in training required under section

24 10147(a)(1) of this title or section 502(a) of title 32, as

25 the case may be.
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1 ‘‘(2) For the purposes of paragraph (1), a person

2 shall be considered a new member of the Ready Reserve

3 upon becoming a member and continuing without a break

4 in the membership until the earlier of—

5 ‘‘(A) the date on which the member becomes el6 igible to use commissary stores under subsection (a);

7 or

8 ‘‘(B) December 31 of the first calendar year in

9 which the membership has been continuous for the

10 entire year.

11 ‘‘(3) A new member may not be authorized under this

12 subsection to use commissary stores for more than 24 days

13 for any calendar year.’’.

14 (b) REQUIRED DOCUMENTATION.—Subsection (d) of

15 such section, as redesignated by subsection (a)(1), is

16 amended by adding at the end the following: ‘‘The regula17 tions shall specify the required documentation of satisfac18 tory participation in training for the purposes of sub19 section (b).’’.

20 (c) CONFORMING AMENDMENT.—Subsection (c) of

21 such section, as redesignated by subsection (a)(1), is

22 amended by striking ‘‘Subsection (a)’’ and inserting ‘‘Sub23 sections (a) and (b)’’.

24 (d) CLERICAL AMENDMENTS.—(1) The heading for

25 such section is amended to read as follows:
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1 ‘‘§ 1063. Use of commissary stores: members of Ready

2 Reserve’’.

3 (2) Subsection (a) of such section is amended by

4 striking ‘‘OF READY RESERVE’’ and inserting ‘‘WITH 50

5 OR MORE CREDITABLE POINTS’’.

6 (3) The item relating to such section in the table of

7 sections at the beginning of chapter 54 of title 10, United

8 States Code, is amended to read as follows:

‘‘1063. Use of commissary stores: members of Ready Reserve.’’.

9 SEC. 663. AUTHORIZATION OF TRANSITIONAL COMPENSA10 TION AND COMMISSARY AND EXCHANGE BEN11 EFITS FOR DEPENDENTS OF COMMISSIONED

12 OFFICERS OF THE PUBLIC HEALTH SERVICE

13 AND THE NATIONAL OCEANIC AND ATMOS14 PHERIC ADMINISTRATION WHO ARE SEPA15 RATED FOR DEPENDENT ABUSE.

16 (a) COMMISSIONED OFFICERS OF THE PUBLIC

17 HEALTH SERVICE.—Section 221(a) of the Public Health

18 Service Act (42 U.S.C. 213a(a)) is amended by adding

19 at the end the following new paragraph:

20 ‘‘(17) Section 1059, Transitional compensation

21 and commissary and exchange benefits for depend22 ents of members separated for dependent abuse.’’.

23 (b) COMMISSIONED OFFICERS OF THE NATIONAL

24 OCEANIC AND ATMOSPHERIC ADMINISTRATION.—Section

25 3(a) of the Act entitled ‘‘An Act to revise, codify, and
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1 enact into law, title 10 of the United States Code, entitled

2 ‘Armed Forces’, and title 32 of the United States Code,

3 entitled ‘National Guard’ ’’, approved August 10, 1956 (33

4 U.S.C. 857a(a)), is amended by adding at the end the fol5 lowing new paragraph:

6 ‘‘(17) Section 1059, Transitional compensation

7 and commissary and exchange benefits for depend8 ents of members separated for dependent abuse.’’.

9 Subtitle F—National Emergency

10 Family Support

11 SEC. 681. CHILD CARE AND YOUTH ASSISTANCE.

12 (a) AUTHORITY.—The Secretary of Defense may pro13 vide assistance for families of members of the Armed

14 Forces serving on active duty during fiscal year 2002, in

15 order to ensure that the children of such families obtain

16 needed child care and youth services.

17 (b) APPROPRIATE PRIMARY OBJECTIVE.—The assist18 ance authorized by this section should be directed pri19 marily toward providing needed family support, including

20 child care and youth services for children of such per21 sonnel who are deployed, assigned, or ordered to active

22 duty in connection with operations of the Armed Forces

23 under the national emergency.
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1 SEC. 682. FAMILY EDUCATION AND SUPPORT SERVICES.

2 During fiscal year 2002, the Secretary of Defense is

3 authorized to provide family education and support serv4 ices to families of members of the Armed Services to the

5 same extent that these services were provided during the

6 Persian Gulf War.

7 TITLE VII—HEALTH CARE

8 Subtitle A—TRICARE Benefits

9 Modernization

10 SEC. 701. REQUIREMENT FOR INTEGRATION OF BENEFITS.

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

12 (1) terminate the Individual Case Management

13 Program carried out under section 1079(a)(17) of

14 title 10, United States Code (as in effect on Sep15 tember 30, 2001); and

16 (2) integrate the beneficiaries under that pro17 gram, and the furnishing of care to those bene18 ficiaries, into the TRICARE program as modified

19 pursuant to the amendments made by this subtitle.

20 (b) REPEAL OF SEPARATE AUTHORITY.—Section

21 1079 of title 10, United States Code, is amended by strik22 ing paragraph (17).

23 (c) SAVINGS PROVISION.—Nothing in this subtitle or

24 the amendments made by this subtitle shall be

25 construed—
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1 (1) to modify any eligibility requirement for any

2 person receiving benefits under the Individual Case

3 Management Program before October 1, 2001; or

4 (2) to terminate any benefits available under

5 that program before that date.

6 (d) CONSULTATION REQUIREMENT.—The Secretary

7 of Defense shall consult with the other administering Sec8 retaries referred to in section 1072(3) of title 10, United

9 States Code, in carrying out this section.

10 SEC. 702. DOMICILIARY AND CUSTODIAL CARE.

11 Section 1072 of title 10, United States Code, is

12 amended by adding at the end the following new para13 graphs:

14 ‘‘(8) The term ‘domiciliary care’ means treat15 ment or services involving assistance with the per16 formance of activities of daily living that is provided

17 to a patient in a home-like setting because—

18 ‘‘(A) the treatment or services are not

19 available, or are not suitable to be provided, to

20 the patient in the patient’s home; or

21 ‘‘(B) no member of the patient’s family is

22 willing to provide the treatment or services.

23 ‘‘(9) The term ‘custodial care’—

24 ‘‘(A) means treatment or services that—
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1 ‘‘(i) could be provided safely and rea2 sonably by a person not trained as a physi3 cian, nurse, paramedic, or other health

4 care provider; or

5 ‘‘(ii) are provided principally to assist

6 the recipient of the treatment or services

7 with the performance of activities of daily

8 living; and

9 ‘‘(B) includes any treatment or service de10 scribed in subparagraph (A) without regard

11 to—

12 ‘‘(i) the source of any recommenda13 tion to provide the treatment or service;

14 and

15 ‘‘(ii) the setting in which the treat16 ment or service is provided.’’.

17 SEC. 703. LONG TERM CARE.

18 (a) LIMITATION.—Chapter 55 of title 10, United

19 States Code, is amended by inserting after section 1074i

20 the following new section:

21 ‘‘§ 1074j. Long term care benefits program

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

23 of Defense shall provide long term health care benefits

24 under the TRICARE program in an effective and efficient

25 manner that integrates those benefits with the benefits
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1 provided on a less than a long term basis under the

2 TRICARE program.

3 ‘‘(b) AUTHORIZED CARE.—The types of health care

4 authorized to be provided under this section shall include

5 the following:

6 ‘‘(1) The types of health care authorized to be

7 acquired by contract under section 1079 of this title.

8 ‘‘(2) Extended care services.

9 ‘‘(3) Post-hospital extended care services.

10 ‘‘(4) Comprehensive intermittent home health

11 services.

12 ‘‘(c) DURATION OF POST-HOSPITAL EXTENDED

13 CARE SERVICES.—The post-hospital extended care serv14 ices provided in a skilled nursing facility to a patient dur15 ing a spell of illness under subsection (b)(3) shall continue

16 for as long as is medically necessary and appropriate. The

17 limitation on the number of days of coverage under sub18 sections (a)(2) and (b)(2)(A) of section 1812 of the Social

19 Security Act (42 U.S.C. 1395d) shall not apply with re20 spect to the care provided that patient.

21 ‘‘(d) REGULATIONS.—The Secretary of Defense shall,

22 after consultation with the other administering Secre23 taries, prescribe regulations to carry out this section.

24 ‘‘(e) DEFINITIONS.—In this section:
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1 ‘‘(1) The term ‘extended care services’ has the

2 meaning given the term in subsection (h) of section

3 1861 of the Social Security Act (42 U.S.C. 1395x).

4 ‘‘(2) The term ‘post-hospital extended services’

5 has the meaning given the term in subsection (i) of

6 section 1861 of the Social Security Act (42 U.S.C.

7 1395x).

8 ‘‘(3) The term ‘home health services’ has the

9 meaning given the term in subsection (m) of section

10 1861 of the Social Security Act (42 U.S.C. 1395x).

11 ‘‘(4) The term ‘skilled nursing facility’ has the

12 meaning given the term in section 1819(a) of the

13 Social Security Act (42 U.S.C. 1395i–3(a)).

14 ‘‘(5) The term ‘spell of illness’ has the meaning

15 given the term in subsection (a) of section 1861 of

16 the Social Security Act (42 U.S.C. 1395x).’’.

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

18 at the beginning of such chapter is amended by inserting

19 after the item relating to section 1074i the following new

20 item:

‘‘1074j. Long term care benefits program.’’.

21 SEC. 704. EXTENDED BENEFITS FOR DISABLED BENE22 FICIARIES.

23 Section 1079 of title 10, United States Code, is

24 amended by striking subsections (d), (e), and (f) and in25 serting the following:
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1 ‘‘(d)(1) The health care benefits contracted for under

2 this section shall include extended benefits for dependents

3 referred to in the first sentence of subsection (a) who have

4 any of the following qualifying conditions:

5 ‘‘(A) Moderate or severe mental retardation.

6 ‘‘(B) A serious physical disability.

7 ‘‘(C) Any extraordinary physical or psycho8 logical condition.

9 ‘‘(2) The extended benefits under paragraph (1) may

10 include comprehensive health care, including services nec11 essary to maintain function, or to minimize or prevent de12 terioration of function, of the patient, and case manage13 ment services, to the extent not otherwise provided under

14 this chapter with respect to a qualifying condition, as fol15 lows:

16 ‘‘(A) Diagnosis.

17 ‘‘(B) Inpatient, outpatient, and comprehensive

18 home health supplies and services.

19 ‘‘(C) Training and rehabilitation, including spe20 cial education and assistive technology devices.

21 ‘‘(D) Institutional care in private nonprofit,

22 public, and State institutions and facilities and,

23 when appropriate, transportation to and from such

24 institutions and facilities.
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1 ‘‘(E) Any other services and supplies deter2 mined appropriate under regulations prescribed

3 under paragraph (9).

4 ‘‘(3) The extended benefits under paragraph (1) may

5 also include respite care for the primary caregiver of a

6 dependent eligible for extended benefits under this sub7 section.

8 ‘‘(4) Home health supplies and services may be pro9 vided to a dependent under paragraph (2)(B) as other

10 than part-time or intermittent services (as determined in

11 accordance with the second sentence of section 1861(m)

12 of the Social Security Act (42 U.S.C. 1395x(m)) only if—

13 ‘‘(A) the provision of such supplies and services

14 in the home of the dependent is medically appro15 priate; and

16 ‘‘(B) the cost of the provision of such supplies

17 and services to the dependent is equal to or less

18 than the cost of the provision of similar supplies and

19 services to the dependent in a skilled nursing facil20 ity.

21 ‘‘(5) Subsection (a)(13) shall not apply to the provi22 sion of care and services determined appropriate to be pro23 vided as extended benefits under this subsection.

24 ‘‘(6) Subject to paragraph (7), a member of the uni25 formed services shall pay a share of the cost of any care
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1 and services provided as extended benefits to any of the

2 dependents of the member under this subsection as fol3 lows:

4 ‘‘(A) In the case of a member in the lowest en5 listed pay grade, the first $25 of the cumulative

6 costs of all care furnished to one or more dependents

7 of the member in a month.

8 ‘‘(B) In the case of a member in the highest

9 commissioned pay grade, the first $250 of the cumu10 lative costs of all care furnished to one or more de11 pendents of the member in a month.

12 ‘‘(C) In the case of a member in any other pay

13 grade, a fixed amount of the cumulative costs of all

14 care furnished to one or more dependents of the

15 member in a month, as prescribed for that pay

16 grade in regulations prescribed under paragraph (9).

17 ‘‘(7)(A) In the case of extended benefits provided

18 under subparagraph (C) or (D) of paragraph (2) to a de19 pendent of a member of the uniformed services—

20 ‘‘(i) the Government’s share of the total cost of

21 providing such benefits in any month shall not ex22 ceed $2,500, except for costs that a member is ex23 empt from paying under subparagraph (B); and

24 ‘‘(ii) the member shall pay (in addition to any

25 amount payable under paragraph (6)) the amount, if
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1 any, by which the amount of such total cost for the

2 month exceeds the Government’s maximum share

3 under clause (i).

4 ‘‘(B) A member of the uniformed services who incurs

5 expenses under subparagraph (A) for a month for more

6 than one dependent shall not be required to pay for the

7 month under clause (ii) of that subparagraph an amount

8 greater than the amount the member would otherwise be

9 required to pay under that clause for the month if the

10 member were incurring expenses under that subparagraph

11 for only one dependent.

12 ‘‘(8) To qualify for extended benefits under subpara13 graph (C) or (D) of paragraph (2), a dependent of a mem14 ber of the uniformed services shall be required to use pub15 lic facilities to the extent such facilities are available and

16 adequate, as determined under joint regulations of the ad17 ministering Secretaries.

18 ‘‘(9) The Secretary of Defense, in consultation with

19 the other administering Secretaries, shall prescribe regula20 tions to carry out this subsection.’’.

21 SEC. 705. CONFORMING REPEALS.

22 The following provisions of law are repealed:

23 (1) Section 703 of the National Defense Au24 thorization Act for Fiscal Year 2000 (Public Law

25 106–65; 113 Stat. 682; 10 U.S.C. 1077 note).
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1 (2) Section 8118 of the Department of Defense

2 Appropriations Act, 2000 (Public Law 106–79; 113

3 Stat. 1260).

4 (3) Section 8100 of the Department of Defense

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

6 114 Stat. 696).

7 SEC. 706. PROSTHETICS AND HEARING AIDS.

8 Section 1077 of title 10 United States Code, is

9 amended—

10 (1) in subsection (a), by adding at the end the

11 following:

12 ‘‘(16) A hearing aid, but only for a dependent

13 of a member of the uniformed services on active

14 duty and only if the dependent has a profound hear15 ing loss, as determined under standards prescribed

16 in regulations by the Secretary of Defense in con17 sultation with the administering Secretaries.’’;

18 (2) in subsection (b)(2), by striking ‘‘Hearing

19 aids, orthopedic footwear,’’ and inserting ‘‘Ortho20 pedic footwear’’; and

21 (3) by adding at the end the following new sub22 section:

23 ‘‘(f)(1) Authority to provide a prosthetic device under

24 subsection (a)(15) includes authority to provide the fol25 lowing:
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1 ‘‘(A) Any accessory or item of supply that is

2 used in conjunction with the device for the purpose

3 of achieving therapeutic benefit and proper func4 tioning.

5 ‘‘(B) Services necessary to train the recipient of

6 the device in the use of the device.

7 ‘‘(C) Repair of the device for normal wear and

8 tear or damage.

9 ‘‘(D) Replacement of the device if the device is

10 lost or irreparably damaged or the cost of repair

11 would exceed 60 percent of the cost of replacement.

12 ‘‘(2) An augmentative communication device may be

13 provided as a voice prosthesis under subsection (a)(15).

14 ‘‘(3) A prosthetic device customized for a patient may

15 be provided under this section only by a prosthetic practi16 tioner who is qualified to customize the device, as deter17 mined under regulations prescribed by the Secretary of

18 Defense in consultation with the administering Secre19 taries.’’.

20 SEC. 707. DURABLE MEDICAL EQUIPMENT.

21 (a) ITEMS AUTHORIZED.—Section 1077 of title 10,

22 United States Code, as amended by section 706, is further

23 amended—
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1 (1) in subsection (a)(12), by striking ‘‘such as

2 wheelchairs, iron lungs, and hospital beds,’’ and in3 serting ‘‘which’’; and

4 (2) by adding at the end the following new sub5 section:

6 ‘‘(g)(1) Items that may be provided to a patient

7 under subsection (a)(12) include the following:

8 ‘‘(A) Any durable medical equipment that can

9 improve, restore, or maintain the function of a mal10 formed, diseased, or injured body part, or can other11 wise minimize or prevent the deterioration of the pa12 tient’s function or condition.

13 ‘‘(B) Any durable medical equipment that can

14 maximize the patient’s function consistent with the

15 patient’s physiological or medical needs.

16 ‘‘(C) Wheelchairs.

17 ‘‘(D) Iron lungs,

18 ‘‘(E) Hospital beds.

19 ‘‘(2) In addition to the authority to provide durable

20 medical equipment under subsection (a)(12), any

21 customization of equipment owned by the patient that is

22 durable medical equipment authorized to be provided to

23 the patient under this section or section 1079(a)(5) of this

24 title, and any accessory or item of supply for any such

25 equipment, may be provided to the patient if the
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1 customization, accessory, or item of supply is essential

2 for—

3 ‘‘(A) achieving therapeutic benefit for the pa4 tient;

5 ‘‘(B) making the equipment serviceable; or

6 ‘‘(C) otherwise assuring the proper functioning

7 of the equipment.’’.

8 (b) PROVISION OF ITEMS ON RENTAL BASIS.—Para9 graph (5) of section 1079(a) of such title is amended to

10 read as follows:

11 ‘‘(5) Durable equipment provided under this

12 section may be provided on a rental basis.’’.

13 SEC. 708. REHABILITATIVE THERAPY.

14 Section 1077(a) of title 10, United States Code, as

15 amended by section 706(1), is further amended by insert16 ing after paragraph (16) the following new paragraph:

17 ‘‘(17) Any rehabilitative therapy to improve, re18 store, or maintain function, or to minimize or pre19 vent deterioration of function, of a patient when pre20 scribed by a physician.’’.

21 SEC. 709. MENTAL HEALTH BENEFITS.

22 (a) REQUIREMENT FOR STUDY.—The Secretary of

23 Defense shall carry out a study to determine the adequacy

24 of the scope and availability of outpatient mental health
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1 benefits provided for members of the Armed Forces and

2 covered beneficiaries under the TRICARE program.

3 (b) REPORT.—Not later than March 31, 2002, the

4 Secretary shall submit to the Committees on Armed Serv5 ices of the Senate and the House of Representatives a re6 port on the study, including the conclusions and any rec7 ommendations for legislation that the Secretary considers

8 appropriate.

9 SEC. 710. EFFECTIVE DATE.

10 This subtitle and the amendments made by this sub11 title shall take effect on October 1, 2001.

12 Subtitle B—Other Matters

13 SEC. 711. REPEAL OF REQUIREMENT FOR PERIODIC

14 SCREENINGS AND EXAMINATIONS AND RE15 LATED CARE FOR MEMBERS OF ARMY RE16 SERVE UNITS SCHEDULED FOR EARLY DE17 PLOYMENT.

18 Section 1074a of title 10, United States Code, is

19 amended—

20 (1) by striking subsection (d); and

21 (2) by redesignating subsection (e) as sub22 section (d).
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1 SEC. 712. CLARIFICATION OF ELIGIBILITY FOR REIM2 BURSEMENT OF TRAVEL EXPENSES OF

3 ADULT ACCOMPANYING PATIENT IN TRAVEL

4 FOR SPECIALTY CARE.

5 Section 1074i of title 10, United States Code, is

6 amended by inserting before the period at the end the fol7 lowing: ‘‘and, when accompaniment by an adult is nec8 essary, for a parent or guardian of the covered beneficiary

9 or another member of the covered beneficiary’s family who

10 is at least 21 years of age’’.

11 SEC. 713. TRICARE PROGRAM LIMITATIONS ON PAYMENT

12 RATES FOR INSTITUTIONAL HEALTH CARE

13 PROVIDERS AND ON BALANCE BILLING BY

14 INSTITUTIONAL AND NONINSTITUTIONAL

15 HEALTH CARE PROVIDERS.

16 (a) INSTITUTIONAL PROVIDERS.—Section 1079(j) of

17 title 10, United States Code, is amended—

18 (1) in paragraph (2)(A)—

19 (A) by striking ‘‘(A)’’; and

20 (B) by striking ‘‘may be determined under

21 joint regulations’’ and inserting ‘‘shall be deter22 mined under joint regulations’’;

23 (2) by redesignating subparagraph (B) of para24 graph (2) as paragraph (4), and, in such paragraph,

25 as so redesignated, by striking ‘‘subparagraph (A),’’

26 and inserting ‘‘this subsection,’’; and
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1 (3) by inserting before paragraph (4), as redes2 ignated by paragraph (2), the following new para3 graph (3):

4 ‘‘(3) A contract for a plan covered by this section

5 shall include a clause that prohibits each provider of serv6 ices under the plan from billing any person covered by the

7 plan for any balance of charges for services in excess of

8 the amount paid for those services under the joint regula9 tions referred to in paragraph (2), except for any unpaid

10 amounts of deductibles or copayments that are payable di11 rectly to the provider by the person.’’.

12 (b) NONINSTITUTIONAL PROVIDERS.—Section

13 1079(h)(4) of such title is amended—

14 (1) by inserting ‘‘(A)’’ after ‘‘(4)’’; and

15 (2) by adding at the end the following new sub16 paragraph:

17 ‘‘(B) The regulations shall include a restriction that

18 prohibits an individual health care professional (or other

19 noninstitutional health care provider) from billing a bene20 ficiary for services for more than the amount that is equal

21 to—

22 ‘‘(i) the excess of the limiting charge (as de23 fined in section 1848(g)(2) of the Social Security

24 Act (42 U.S.C. 1395w–4(g)(2))) that would be ap25 plicable if the services had been provided by the pro-
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1 fessional (or other provider) as an individual health

2 care professional (or other noninstitutional health

3 care provider) on a nonassignment-related basis

4 under part B of title XVIII of such Act over the

5 amount that is payable by the United States for

6 those services under this subsection, plus

7 ‘‘(ii) any unpaid amounts of deductibles or co8 payments that are payable directly to the profes9 sional (or other provider) by the beneficiary.’’.

10 (c) EFFECTIVE DATE.—The amendments made by

11 this section shall take effect on October 1, 2001.

12 SEC. 714. TWO-YEAR EXTENSION OF HEALTH CARE MAN13 AGEMENT DEMONSTRATION PROGRAM.

14 (a) EXTENSION.—Subsection (d) of section 733 of

15 the Floyd D. Spence National Defense Authorization Act

16 for Fiscal Year 2001 (as enacted by Public Law 106–398;

17 114 Stat. 1654A–191) is amended by striking ‘‘December

18 31, 2001’’ and inserting ‘‘December 31, 2003’’.

19 (b) REPORT.—Subsection (e) of that section is

20 amended—

21 (1) by striking ‘‘REPORTS.—’’ and inserting

22 ‘‘REPORT.—’’; and

23 (2) by striking ‘‘March 15, 2002’’ and inserting

24 ‘‘March 15, 2004’’.
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1 SEC. 715. STUDY OF HEALTH CARE COVERAGE OF MEM2 BERS OF THE SELECTED RESERVE.

3 (a) REQUIREMENT FOR STUDY.—The Comptroller

4 General shall carry out a study of the needs of members

5 of the Selected Reserve of the Ready Reserve of the Armed

6 Forces and their families for health care benefits.

7 (b) REPORT.—Not later than March 1, 2002, the

8 Comptroller General shall submit to Congress a report on

9 the study under subsection (a). The report shall include

10 the following matters:

11 (1) An analysis of how members of the Selected

12 Reserve currently obtain coverage for health care

13 benefits when not on active duty, together with sta14 tistics on enrollments in health care benefits plans,

15 including—

16 (A) the percentage of members of the Se17 lected Reserve who are not covered by an em18 ployer health benefits plan;

19 (B) the percentage of members of the Se20 lected Reserve who are not covered by an indi21 vidual health benefits plan; and

22 (C) the percentage of members of the Se23 lected Reserve who are not covered by any

24 health insurance or other health benefits plan.

25 (2) An assessment of the disruptions in health

26 benefits coverage that a mobilization of members of
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1 the Selected Reserve has caused for the members

2 and their families.

3 (3) An assessment of the cost and effectiveness

4 of various options for preventing or reducing disrup5 tions described in paragraph (2), including—

6 (A) providing health care benefits to all

7 members of the Selected Reserve and their fam8 ilies through TRICARE, the Federal Employees

9 Health Benefits Program, or otherwise;

10 (B) revising and extending the program of

11 transitional medical and dental care that is pro12 vided under section 1074b of title 10, United

13 States Code, for members of the Armed Forces

14 upon release from active duty served in support

15 of a contingency operation;

16 (C) requiring the health benefits plans of

17 members of the Selected Reserve, including in18 dividual health benefits plans and group health

19 benefits plans, to permit members of the Se20 lected Reserve to elect to resume coverage

21 under such health benefits plans upon release

22 from active duty in support of a contingency

23 operation;

24 (D) providing financial assistance for pay25 ing premiums or other subscription charges for
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1 continuation of coverage by private sector

2 health insurance or other health benefits plans;

3 and

4 (E) any other options that the Comptroller

5 General determines advisable to consider.

6 SEC. 716. STUDY OF ADEQUACY AND QUALITY OF HEALTH

7 CARE PROVIDED TO WOMEN UNDER THE DE8 FENSE HEALTH PROGRAM.

9 (a) REQUIREMENT FOR STUDY.—The Comptroller

10 General shall carry out a study of the adequacy and qual11 ity of the health care provided to women under chapter

12 55 of title 10, United States Code.

13 (b) SPECIFIC CONSIDERATION.—The study shall in14 clude an intensive review of the availability and quality

15 of reproductive health care services.

16 (c) REPORT.—The Comptroller General shall submit

17 a report on the results of the study to Congress not later

18 than April 1, 2002.

19 SEC. 717. PILOT PROGRAM FOR DEPARTMENT OF VET20 ERANS AFFAIRS SUPPORT FOR DEPARTMENT

21 OF DEFENSE IN THE PERFORMANCE OF SEP22 ARATION PHYSICAL EXAMINATIONS.

23 (a) AUTHORITY.—The Secretary of Defense and the

24 Secretary of Veterans Affairs may jointly carry out a pilot

25 program for the performance of the physical examinations
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1 required in connection with the separation of members of

2 the uniformed services. The requirements of this section

3 shall apply to a pilot program, if any, that is carried out

4 under the authority of this subsection.

5 (b) PERFORMANCE OF PHYSICAL EXAMINATIONS BY

6 DEPARTMENT OF VETERANS AFFAIRS.—Under the pilot

7 program, the Secretary of Veterans Affairs shall perform

8 the physical examinations of members of the uniformed

9 services separating from the uniformed services who are

10 in one or more geographic areas designated for the pilot

11 program by the Secretaries.

12 (c) REIMBURSEMENT.—The Secretary of Defense

13 shall provide for reimbursing the Secretary of Veterans

14 Affairs for the cost incurred by the Secretary of Veterans

15 Affairs in performing, under the pilot program, the items

16 of physical examination that are required by the Secretary

17 concerned in connection with the separation of a member

18 of a uniformed service. Reimbursements shall be paid out

19 of funds available for the performance of separation phys20 ical examinations of members of that uniformed service

21 in facilities of the uniformed services.

22 (d) AGREEMENT.—(1) The Secretary of Defense and

23 the Secretary of Veterans Affairs shall enter into an agree24 ment for carrying out a pilot program established under

25 this section. The agreement shall specify the geographic
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1 area in which the pilot program is carried out and the

2 means for making reimbursement payments.

3 (2) The other administering Secretaries shall also

4 enter into the agreement to the extent that the Secretary

5 of Defense determines necessary to apply the pilot pro6 gram, including the requirement for reimbursement, to the

7 uniformed services not under the jurisdiction of the Sec8 retary of a military department.

9 (e) CONSULTATION REQUIREMENT.—In developing

10 and carrying out the pilot program, the Secretary of De11 fense shall consult with the other administering Secre12 taries.

13 (f) PERIOD OF PROGRAM.—Any pilot program estab14 lished under this section shall begin not later than July

15 1, 2002, and terminate on December 31, 2005.

16 (g) REPORTS.—(1) Not later than January 31, 2004,

17 the Secretary of Defense and the Secretary of Veterans

18 Affairs shall jointly submit to Congress an interim report

19 on the conduct of the pilot program.

20 (2) Not later than March 1, 2005, the Secretary of

21 Defense and the Secretary of Veterans Affairs shall jointly

22 submit to Congress a final report on the conduct of the

23 pilot program.

24 (3) Each report under this subsection shall include

25 the Secretaries’ assessment, as of the date of such report,
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1 of the efficacy of the performance of separation physical

2 examinations as provided for under the pilot program.

3 (h) DEFINITIONS.—In this section:

4 (1) The term ‘‘administering Secretaries’’ has

5 the meaning given the term in section 1072(3) of

6 title 10, United States Code.

7 (2) The term ‘‘Secretary concerned’’ has the

8 meaning given the term in section 101(5) of title 37,

9 United States Code.

10 SEC. 718. MODIFICATION OF PROHIBITION ON REQUIRE11 MENT OF NONAVAILABILITY STATEMENT OR

12 PREAUTHORIZATION.

13 (a) CLARIFICATION OF COVERED BENEFICIARIES.—

14 Subsection (a) of section 721 of the Floyd D. Spence Na15 tional Defense Authorization Act for Fiscal Year 2001 (as

16 enacted in Public Law 106–398; 114 Stat. 1654A–184)

17 is amended by striking ‘‘covered beneficiary under chapter

18 55 of title 10, United States Code, who is enrolled in

19 TRICARE Standard,‘‘ and inserting ‘‘covered beneficiary

20 under TRICARE Standard pursuant to chapter 55 of title

21 10, United States Code,’’.

22 (b) REPEAL OF REQUIREMENT FOR NOTIFICATION

23 REGARDING HEALTH CARE RECEIVED FROM ANOTHER

24 SOURCE.—Subsection (b) of such section is repealed.
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1 (c) WAIVER AUTHORITY.—Such section, as so

2 amended, is further amended by striking subsection (c)

3 and inserting the following:

4 ‘‘(b) WAIVER AUTHORITY.—The Secretary may

5 waive the prohibition in subsection (a) if—

6 ‘‘(1) the Secretary—

7 ‘‘(A) demonstrates that significant costs

8 would be avoided by performing specific proce9 dures at the affected military medical treatment

10 facility or facilities;

11 ‘‘(B) determines that a specific procedure

12 must be provided at the affected military med13 ical treatment facility or facilities to ensure the

14 proficiency levels of the practitioners at the fa15 cility or facilities; or

16 ‘‘(C) determines that the lack of nonavail17 ability statement data would significantly inter18 fere with TRICARE contract administration;

19 ‘‘(2) the Secretary provides notification of the

20 Secretary’s intent to grant a waiver under this sub21 section to covered beneficiaries who receive care at

22 the military medical treatment facility or facilities

23 that will be affected by the decision to grant a waiv24 er under this subsection;
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1 ‘‘(3) the Secretary notifies the Committees on

2 Armed Services of the House of Representatives and

3 the Senate of the Secretary’s intent to grant a waiv4 er under this subsection, the reason for the waiver,

5 and the date that a nonavailability statement will be

6 required; and

7 ‘‘(4) 60 days have elapsed since the date of the

8 notification described in paragraph (3).’’.

9 (d) DELAY OF EFFECTIVE DATE.—Subsection (d) of

10 such section is amended—

11 (1) by striking ‘‘take effect on October 1,

12 2001’’ and inserting ‘‘be effective beginning on the

13 date that is two years after the date of the enact14 ment of the National Defense Authorization Act for

15 Fiscal Year 2002’’; and

16 (2) by redesignating the subsection as sub17 section (c).

18 (e) REPORT.—Not later than March 1, 2002, the

19 Secretary of Defense shall submit to the Committees on

20 Armed Services of the House of Representatives and the

21 Senate a report on the Secretary’s plans for implementing

22 section 721 of the Floyd D. Spence National Defense Au23 thorization Act for Fiscal Year 2001, as amended by this

24 section.
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1 SEC. 719. TRANSITIONAL HEALTH CARE TO MEMBERS SEP2 ARATED FROM ACTIVE DUTY.

3 (a) PERMANENT AUTHORITY FOR INVOLUNTARILY

4 SEPARATED MEMBERS AND MOBILIZED RESERVES.—

5 Subsection (a) of section 1145 of title 10, United States

6 Code, is amended—

7 (1) in paragraph (1), by striking ‘‘paragraph

8 (2), a member’’ and all that follows through ‘‘of the

9 member),’’ and inserting ‘‘paragraph (3), a member

10 of the armed forces who is separated from active

11 duty as described in paragraph (2)’’;

12 (2) by redesignating paragraph (2) as para13 graph (3);

14 (3) by inserting after paragraph (1) the fol15 lowing new paragraph (2):

16 ‘‘(2) This subsection applies to the following members

17 of the armed forces:

18 ‘‘(A) A member who is involuntarily separated

19 from active duty.

20 ‘‘(B) A member of a reserve component who is

21 separated from active duty to which called or or22 dered in support of a contingency operation if the

23 active duty is active duty for a period of more than

24 30 days.

25 ‘‘(C) A member who is separated from active

26 duty for which the member is involuntarily retained
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1 under section 12305 of this title in support of a con2 tingency operation.

3 ‘‘(D) A member who is separated from active

4 duty served pursuant to a voluntary agreement of

5 the member to remain on active duty for a period of

6 less than one year in support of a contingency oper7 ation.’’; and

8 (4) in paragraph (3), as redesignated by para9 graph (2), is amended by striking ‘‘involuntary’’

10 each place it appears.

11 (b) CONFORMING AMENDMENTS.—Such section 1145

12 is further amended—

13 (1) in subsection (c)(1), by striking ‘‘during the

14 period beginning on October 1, 1990, and ending on

15 December 31, 2001’’; and

16 (2) in subsection (e), by striking the first sen17 tence.

18 (c) REPEAL OF SUPERSEDED AUTHORITY.—(1) Sec19 tion 1074b of title 10, United States Code, is repealed.

20 (2) The table of sections at the beginning of chapter

21 55 of such title is amended by striking the item relating

22 to section 1074b.

23 (d) TRANSITION PROVISION.—Notwithstanding the

24 repeal of section 1074b of title 10, United States Code,

25 by subsection (c), the provisions of that section, as in ef-
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1 fect before the date of the enactment of this Act, shall

2 continue to apply to a member of the Armed Forces who

3 is released from active duty in support of a contingency

4 operation before that date.

5 TITLE VIII—ACQUISITION POL6 ICY, ACQUISITION MANAGE7 MENT, AND RELATED MAT8 TERS

9 Subtitle A—Procurement

10 Management and Administration

11 SEC. 801. MANAGEMENT OF PROCUREMENTS OF SERVICES.

12 (a) RESPONSIBILITY OF UNDER SECRETARY OF DE13 FENSE FOR ACQUISITION, TECHNOLOGY, AND LOGIS14 TICS.—Section 133(b) of title 10, United States Code, is

15 amended—

16 (1) by striking ‘‘and’’ at the end of paragraph

17 (4);

18 (2) by redesignating paragraph (5) as para19 graph (6); and

20 (3) by inserting after paragraph (4) the fol21 lowing new paragraph (5):

22 ‘‘(5) managing the procurements of services for

23 the Department of Defense; and’’.
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1 (b) REQUIREMENT FOR MANAGEMENT STRUC2 TURE.—(1) Chapter 137 of such title is amended by in3 serting after section 2328 the following new section:

4 ‘‘§ 2330. Procurements of services: management struc5 ture

6 ‘‘(a) REQUIREMENT FOR MANAGEMENT STRUC7 TURE.—The Under Secretary of Defense for Acquisition,

8 Technology, and Logistics shall establish a structure for

9 the management of procurements of services for the De10 partment of Defense.

11 ‘‘(b) DELEGATION OF AUTHORITY.—(1) The man12 agement structure shall provide for a designated official

13 in each Defense Agency, military department, and com14 mand to exercise the responsibility for the management

15 of the procurements of services for the official’s Defense

16 Agency, military department, or command, respectively.

17 ‘‘(2) For the exercise of the responsibility under para18 graph (1), a designated official shall report, and be ac19 countable, to—

20 ‘‘(A) the Under Secretary of Defense for Acqui21 sition, Technology, and Logistics; and

22 ‘‘(B) such other officials as the Under Sec23 retary may prescribe for the management structure.

24 ‘‘(3) Paragraph (2) shall not affect the responsibility

25 of a designated official for a military department who is
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1 not the Secretary of that military department to report,

2 and be accountable, to the Secretary of the military de3 partment.

4 ‘‘(c) CONTRACTING RESPONSIBILITIES OF DES5 IGNATED OFFICIALS.—The responsibilities of an official

6 designated under subsection (b) shall include, with respect

7 to the procurements of services for the Defense Agency,

8 military department, or command of that official, the fol9 lowing:

10 ‘‘(1) Ensuring that the services are procured by

11 means of contracts or task orders that are in the

12 best interests of the Department of Defense and are

13 entered into or issued and managed in compliance

14 with the applicable statutes, regulations, directives,

15 and other requirements, regardless of whether the

16 services are procured through a contract of the De17 partment of Defense or through a contract entered

18 into by an official of the United States outside the

19 Department of Defense.

20 ‘‘(2) Establishing within the Department of De21 fense appropriate contract vehicles for use in the

22 procurement of services so as to ensure that officials

23 of the Department of Defense are accountable for

24 the procurement of the services in accordance with

25 the requirements of paragraph (1).
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1 ‘‘(3) Analyzing data collected under section

2 2330a of this title on contracts that are entered into

3 for the procurement of services.

4 ‘‘(4) Approving, in advance, any procurement of

5 services that is to be made through the use of—

6 ‘‘(A) a contract or task order that is not

7 a performance-based contract or task order; or

8 ‘‘(B) a contract entered into, or a task

9 order issued, by an official of the United States

10 outside the Department of Defense.

11 ‘‘(d) DEFINITION.—In this section, the term ‘per12 formance-based’, with respect to a contract or a task order

13 means that the contract or task– order, respectively, in14 cludes the use of performance work statements that set

15 forth contract requirements in clear, specific, and objective

16 terms with measurable outcomes.’’.

17 (2) Not later than 180 days after the date of the en18 actment of this Act, the Under Secretary of Defense for

19 Acquisition, Technology, and Logistics shall issue guid20 ance for officials in the management structure established

21 under section 2330 of title 10, United States Code (as

22 added by paragraph (1)), regarding how to carry out their

23 responsibilities under that section. The guidance shall in24 clude, at a minimum, the following:
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1 (A) Specific dollar thresholds, approval levels,

2 and criteria for advance approvals under subsection

3 (c)(4) of such section 2330.

4 (B) A prohibition on the procurement of serv5 ices through the use of a contract entered into, or

6 a task order issued, by an official of the United

7 States outside the Department of Defense that is

8 not a performance-based contract or task order, un9 less an appropriate official in the management struc10 ture established under such section 2330 determines

11 in writing that the use of that means for the pro12 curement is justified on the basis of exceptional cir13 cumstances as being in the best interests of the De14 partment of Defense.

15 (c) TRACKING OF PROCUREMENTS OF SERVICES.—

16 Chapter 137 of title 10, United States Code, as amended

17 by subsection (b), is further amended by inserting after

18 section 2330 the following new section:

19 ‘‘§ 2330a. Procurements of services: tracking

20 ‘‘(a) DATA COLLECTION REQUIRED.—The Secretary

21 of Defense shall establish a data collection system to pro22 vide management information with regard to each pur23 chase of services by a military department or Defense

24 Agency in excess of the simplified acquisition threshold,

25 regardless of whether such a purchase is made in the form
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1 of a contract, task order, delivery order, military inter2 departmental purchase request, or any other form of inter3 agency agreement.

4 ‘‘(b) DATA TO BE COLLECTED.—The data required

5 to be collected under subsection (a) includes the following:

6 ‘‘(1) The services purchased.

7 ‘‘(2) The total dollar amount of the purchase.

8 ‘‘(3) The form of contracting action used to

9 make the purchase.

10 ‘‘(4) Whether the purchase was made

11 through—

12 ‘‘(A) a performance-based contract, per13 formance-based task order, or other perform14 ance-based arrangement that contains firm

15 fixed prices for the specific tasks to be per16 formed;

17 ‘‘(B) any other performance-based con18 tract, performance-based task order, or per19 formance-based arrangement; or

20 ‘‘(C) any contract, task order, or other ar21 rangement that is not performance based.

22 ‘‘(5) In the case of a purchase made through an

23 agency other than the Department of Defense—

24 ‘‘(A) the agency through which the pur25 chase is made; and
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1 ‘‘(B) the reasons for making the purchase

2 through that agency.

3 ‘‘(6) The extent of competition provided in

4 making the purchase (including the number of

5 offerors).

6 ‘‘(7) whether the purchase was made from—

7 ‘‘(A) a small business concern;

8 ‘‘(B) a small business concern owned and

9 controlled by socially and economically dis10 advantaged individuals; or

11 ‘‘(C) a small business concern owned and

12 controlled by women.

13 ‘‘(c) COMPATIBILITY WITH DATA COLLECTION SYS14 TEM FOR INFORMATION TECHNOLOGY PURCHASES.—To

15 the maximum extent practicable, a single data collection

16 system shall be used to collect data under this section and

17 information under section 2225 of this title.

18 ‘‘(d) DEFINITIONS.—In this section:

19 ‘‘(1) The term ‘performance-based’, with re20 spect to a contract, task order, or arrangement,

21 means that the contract, task order, or arrangement,

22 respectively, includes the use of performance work

23 statements that set forth contract requirements in

24 clear, specific, and objective terms with measurable

25 outcomes.
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1 ‘‘(2) The definitions set forth in section 2225(f)

2 of this title for the terms ‘simplified acquisition

3 threshold’, ‘small business concern’, ‘small business

4 concern owned and controlled by socially and eco5 nomically disadvantaged individuals’, and ‘small

6 business concern owned and controlled by women’

7 shall apply.’’.

8 (d) REQUIREMENT FOR PROGRAM REVIEW STRUC9 TURE.—(1) Not later than 180 days after the date of the

10 enactment of this Act, the Secretary of Defense shall issue

11 and implement a policy that applies to the procurement

12 of services by the Department of Defense a program re13 view structure that is similar to the one developed for and

14 applied to the procurement of systems by the Department

15 of Defense.

16 (2) The program review structure for the procure17 ment of services shall, at a minimum, include the fol18 lowing:

19 (A) Standards for determining which procure20 ments should be subject to review by either the sen21 ior procurement executive of a military department

22 or the senior procurement executive of the Depart23 ment of Defense under such section, including cri24 teria based on dollar thresholds, program criticality,

25 or other appropriate measures.
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1 (B) Appropriate milestones at which those re2 views should take place.

3 (C) A description of the specific matters that

4 should be reviewed.

5 (e) COMPTROLLER GENERAL REVIEW.—Not later

6 than 90 days after the date on which the Secretary issues

7 the policy required by subsection (d) and the Under Sec8 retary of Defense for Acquisition, Technology, and Logis9 tics issues the guidance required by subsection (b)(2), the

10 Comptroller General shall submit to the Committees on

11 Armed Services of the Senate and the House of Represent12 atives an assessment of the compliance with the require13 ments of this section and the amendments made by this

14 section.

15 (f) DEFINITIONS.—In this section:

16 (1) The term ‘‘senior procurement executive’’

17 means the official designated as the senior procure18 ment executive under section 16(3) of the Office of

19 Federal Procurement Policy Act (41 U.S.C. 414(3)).

20 (2) The term ‘‘performance-based’’, with re21 spect to a contract or a task order means that the

22 contract or task order, respectively, includes the use

23 of performance work statements that set forth con24 tract requirements in clear, specific, and objective

25 terms with measurable outcomes.
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1 (g) CLERICAL AMENDMENTS.—(1) The heading for

2 section 2331 of title 10, United States Code, is amended

3 to read as follows:

4 ‘‘§ 2331. Procurements of services: contracts for pro5 fessional and technical services’’.

6 (2) The table of sections at the beginning of chapter

7 137 of such title is amended by striking the item relating

8 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.’’.

9 SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERV10 ICES.

11 (a) GOALS.—(1) It shall be an objective of the De12 partment of Defense to achieve savings in expenditures for

13 procurements of services through the use of—

14 (A) performance-based services contracting;

15 (B) competition for task orders under services

16 contracts; and

17 (C) program review, spending analyses, and im18 proved management of services contracts.

19 (2) In furtherance of that objective, the Department

20 of Defense shall have goals to use improved management

21 practices to achieve, over 10 fiscal years, reductions in the

22 total amount that would otherwise be expended by the De23 partment for the procurement of services (other than mili-
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1 tary construction) in a fiscal year by the amount equal

2 to 10 percent of the total amount of the expenditures of

3 the Department for fiscal year 2000 for procurement of

4 services (other than military construction), as follows:

5 (A) By fiscal year 2002, a three percent reduc6 tion.

7 (B) By fiscal year 2003, a four percent reduc8 tion.

9 (C) By fiscal year 2004, a five percent reduc10 tion.

11 (D) By fiscal year 2011, a ten percent reduc12 tion.

13 (b) ANNUAL REPORT.—Not later than March 1,

14 2002, and annually thereafter through March 1, 2006, the

15 Secretary of Defense shall submit to the congressional de16 fense committees a report on the progress made toward

17 meeting the objective and goals established in subsection

18 (a). Each report shall include, at a minimum, the following

19 information:

20 (1) A summary of the steps taken or planned

21 to be taken in the fiscal year of the report to im22 prove the management of procurements of services.

23 (2) A summary of the steps planned to be taken

24 in the following fiscal year to improve the manage25 ment of procurements of services.
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1 (3) An estimate of the amount that will be ex2 pended by the Department of Defense for procure3 ments of services in the fiscal year of the report.

4 (4) An estimate of the amount that will be ex5 pended by the Department of Defense for procure6 ments of services in the following fiscal year.

7 (5) An estimate of the amount of savings that,

8 as a result of improvement of the management prac9 tices used by the Department of Defense, will be

10 achieved for the procurement of services by the De11 partment in the fiscal year of the report and in the

12 following fiscal year.

13 (c) REVIEW AND REPORT BY COMPTROLLER GEN14 ERAL.—The Comptroller General shall review each report

15 submitted by the Secretary pursuant to subsection (b),

16 and within 90 days after the date of the report, submit

17 to Congress a report containing the Comptroller General’s

18 assessment of the extent to which the Department of De19 fense has taken steps necessary to achieve the objective

20 and goals established by subsection (a). In each report the

21 Comptroller General shall, at a minimum, address—

22 (1) the accuracy and reliability of the estimates

23 included in the Secretary’s report; and

24 (2) the effectiveness of the improvements in

25 management practices that have been taken, and
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1 those that are planned to be taken, in the Depart2 ment of Defense to achieve savings in procurements

3 of services by the Department.

4 SEC. 803. COMPETITION REQUIREMENT FOR PURCHASES

5 PURSUANT TO MULTIPLE AWARD CON6 TRACTS.

7 (a) REGULATIONS REQUIRED.—Not later than 180

8 days after the date of the enactment of this Act, the Sec9 retary of Defense shall promulgate in the Department of

10 Defense Supplement to the Federal Acquisition Regula11 tion regulations requiring competition in the purchase of

12 products and services by the Department of Defense pur13 suant to multiple award contracts.

14 (b) CONTENT OF REGULATIONS.—The regulations

15 required by subsection (a) shall provide, at a minimum,

16 that each individual procurement of products and services

17 in excess of $50,000 that is made under a multiple award

18 contract shall be made on a competitive basis unless a con19 tracting officer of the Department of Defense—

20 (1) waives the requirement on the basis of a de21 termination that one of the circumstances described

22 in paragraphs (1) through (4) of section 2304(c) of

23 title 10, United States Code, applies to such indi24 vidual procurement; and

25 (2) justifies the determination in writing.
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1 (c) REPORTING REQUIREMENT.—The Secretary shall

2 submit to the congressional defense committees each year

3 a report on the use of the waiver authority provided in

4 the regulations prescribed under subsection (b). The re5 port for a year shall include, at a minimum, for each mili6 tary department and each Defense Agency, the following:

7 (1) The number of the waivers granted.

8 (2) The dollar value of the procurements for

9 which the waivers were granted.

10 (3) The bases on which the waivers were grant11 ed.

12 (d) DEFINITIONS.—In this section:

13 (1) The term ‘‘individual procurement’’ means

14 a task order, delivery order, or other purchase.

15 (2) The term ‘‘multiple award contract’’

16 means—

17 (A) a contract that is entered into by the

18 Administrator of General Services under the

19 multiple award schedule program referred to in

20 section 2302(2)(C) of title 10, United States

21 Code;

22 (B) a multiple award task order contract

23 or delivery order contract that is entered into

24 under the authority of sections 2304a through

25 2304d of title 10, United States Code, or sec-
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1 tions 303H through 303K of the Federal Prop2 erty and Administrative Services Act of 1949

3 (41 U.S.C. 253h through 253k); and

4 (C) any other indeterminate delivery, inde5 terminate quantity contract that is entered into

6 by the head of a Federal agency with two or

7 more sources pursuant to the same solicitation.

8 (3) The term ‘‘competitive basis’’, with respect

9 to an individual procurement of products or services

10 under a multiple award contract, means procedures

11 that—

12 (A) require fair notice to be provided to all

13 contractors offering such products or services

14 under the multiple award contract of the intent

15 to make that procurement; and

16 (B) afford all such contractors a fair op17 portunity to make an offer and have that offer

18 fully and fairly considered by the official mak19 ing the procurement.

20 (4) The term ‘‘Defense Agency’’ has the mean21 ing given that term in section 101(a)(11) of title 10,

22 United States Code.

23 (e) APPLICABILITY.—The regulations promulgated

24 by the Secretary pursuant to subsection (a) shall take ef25 fect not later than 180 days after the date of the enact-
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1 ment of this Act and shall apply to all individual procure2 ments that are made under multiple award contracts on

3 or after the effective date, without regard to whether the

4 multiple award contracts were entered into before, on, or

5 after such effective date.

6 SEC. 804. RISK REDUCTION AT INITIATION OF MAJOR DE7 FENSE ACQUISITION PROGRAM.

8 (a) STANDARD FOR TECHNOLOGICAL MATURITY.—

9 (1) Chapter 144 of title 10, United States Code, is amend10 ed by inserting after section 2431 the following new sec11 tion:

12 ‘‘§ 2431a. Risk reduction at program initiation

13 ‘‘(a) REQUIREMENT FOR DEMONSTRATION OF CRIT14 ICAL TECHNOLOGIES.—Each critical technology that is to

15 be used in production under a major defense acquisition

16 program shall be successfully demonstrated in a relevant

17 environment, as determined in writing by the Under Sec18 retary of Defense for Acquisition, Technology, and Logis19 tics.

20 ‘‘(b) PROHIBITION.—Neither of the following actions

21 may be taken in a major defense acquisition program be22 fore the requirement of subsection (a) has been satisfied

23 for the program:

24 ‘‘(1) Milestone B approval.
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1 ‘‘(2) Initiation of the program without a Mile2 stone B approval.

3 ‘‘(c) WAIVER.—The Under Secretary of Defense for

4 Acquisition, Technology, and Logistics may waive the pro5 hibition in subsection (b) with respect to a major defense

6 acquisition program if the Milestone Decision Authority

7 for the program certifies to the Under Secretary that ex8 ceptional circumstances justify proceeding with an action

9 described in that subsection for the program before com10 pliance with subsection (a).

11 ‘‘(d) ANNUAL REPORT ON WAIVERS.—(1) The Sec12 retary of Defense shall submit to the Committees on

13 Armed Services and on Appropriations of the Senate and

14 the House of Representatives each year the justification

15 for any waiver granted with respect to a major defense

16 acquisition program under subsection (c) during the fiscal

17 year covered by the report.

18 ‘‘(2) The report for a fiscal year shall be submitted

19 with the submission of the weapons development and pro20 curement schedules under section 2431 of this title and

21 shall cover the fiscal year preceding the fiscal year in

22 which submitted.

23 ‘‘(e) DEFINITIONS.—In this section:
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1 ‘‘(1) The term ‘Milestone B approval’ means

2 approval to begin integrated system development

3 and demonstration.

4 ‘‘(2) The term ‘Milestone Decision Authority’

5 means the official of the Department of Defense who

6 is designated in accordance with criteria prescribed

7 by the Secretary of Defense to approve entry of a

8 major defense acquisition program into the next

9 phase of the acquisition process.’’.

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

11 chapter is amended by inserting after the item relating

12 to section 2431 the following:

‘‘2431a. Risk reduction at program initiation.’’.

13 (b) EFFECTIVE DATE AND APPLICABILITY.—(1) Sec14 tion 2431a of title 10, United States Code (as added by

15 subsection (a)), shall take effect on the date of the enact16 ment of this Act and shall apply to—

17 (A) any major defense acquisition program that

18 is initiated on or after that date without a Milestone

19 B approval having been issued for the program; and

20 (B) any major defense acquisition program that

21 is initiated more than 6 months after that date with

22 a Milestone B approval having been issued for the

23 program before the initiation of the program.

24 (2) In paragraph (1):
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1 (A) The term ‘‘major defense acquisition pro2 gram’’ has the meaning given the term in section

3 2430 of title 10, United States Code.

4 (B) The term ‘‘Milestone B approval’’ has the

5 meaning given the term under section 2431a(d) of

6 title 10, United States Code (as added by subsection

7 (a)).

8 SEC. 805. FOLLOW-ON PRODUCTION CONTRACTS FOR

9 PRODUCTS DEVELOPED PURSUANT TO PRO10 TOTYPE PROJECTS.

11 Section 845 of the National Defense Authorization

12 Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is

13 amended—

14 (1) by redesignating subsection (f) as sub15 section (g); and

16 (2) by inserting after subsection (e) the fol17 lowing new subsection (f):

18 ‘‘(f) FOLLOW-ON PRODUCTION CONTRACTS.—(1) A

19 transaction entered into under this section for a prototype

20 project that satisfies the conditions set forth in subsection

21 (d)(1)(B)(i) may provide for the award of a follow-on pro22 duction contract to the participants in the transaction for

23 a specific number of units at specific target prices. The

24 number of units specified in the transaction shall be deter25 mined on the basis of a balancing of the level of the invest-
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1 ment made in the project by the participants other than

2 the Federal Government with the interest of the Federal

3 Government in having competition among sources in the

4 acquisition of the product or products prototyped under

5 the project.

6 ‘‘(2) A follow-on production contract provided for in

7 a transaction under paragraph (1) may be awarded to the

8 participants in the transaction without the use of competi9 tive procedures, notwithstanding the requirements of sec10 tion 2304 of title 10, United States Code, if—

11 ‘‘(A) competitive procedures were used for the

12 selection of parties for participation in the trans13 action;

14 ‘‘(B) the participants in the transaction suc15 cessfully completed the prototype project provided

16 for in the transaction;

17 ‘‘(C) the number of units provided for in the

18 follow-on production contract does not exceed the

19 number of units specified in the transaction for such

20 a follow-on production contract; and

21 ‘‘(D) the prices established in the follow-on pro22 duction contract do not exceed the target prices

23 specified in the transaction for such a follow-on pro24 duction contract.’’.
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1 Subtitle B—Defense Acquisition

2 and Support Workforce

3 SEC. 811. REPORT ON IMPLEMENTATION OF RECOMMENDA4 TIONS OF THE ACQUISITION 2005 TASK

5 FORCE.

6 (a) REQUIREMENT FOR REPORT.—Not later than

7 March 1, 2002, the Secretary of Defense shall submit to

8 the Committees on Armed Services of the Senate and the

9 House of Representatives a report on the extent of the

10 implementation of the recommendations set forth in the

11 final report of the Department of Defense Acquisition

12 2005 Task Force, entitled ‘‘Shaping the Civilian Acquisi13 tion Workforce of the Future’’.

14 (b) CONTENT OF REPORT.—The report shall include

15 the following:

16 (1) For each recommendation in the final re17 port that is being implemented or that the Secretary

18 plans to implement—

19 (A) a summary of all actions that have

20 been taken to implement the recommendation;

21 and

22 (B) a schedule, with specific milestones,

23 for completing the implementation of the rec24 ommendation.
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1 (2) For each recommendation in the final re2 port that the Secretary does not plan to

3 implement—

4 (A) the reasons for the decision not to im5 plement the recommendation; and

6 (B) a summary of any alternative actions

7 the Secretary plans to take to address the pur8 poses underlying the recommendation.

9 (3) A summary of any additional actions the

10 Secretary plans to take to address concerns raised in

11 the final report about the size and structure of the

12 acquisition workforce of the Department of Defense.

13 (c) COMPTROLLER GENERAL REVIEW.—Not later

14 than 60 days after the date on which the Secretary sub15 mits the report required by subsection (a), the Comptroller

16 General shall—

17 (1) review the report; and

18 (2) submit to the committees referred to in sub19 section (a) the Comptroller General’s assessment of

20 the extent to which the report—

21 (A) complies with the requirements of this

22 section; and

23 (B) addresses the concerns raised in the

24 final report about the size and structure of the
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1 acquisition workforce of the Department of De2 fense.

3 SEC. 812. MORATORIUM ON REDUCTION OF THE DEFENSE

4 ACQUISITION AND SUPPORT WORKFORCE.

5 (a) PROHIBITION.—Notwithstanding any other provi6 sion of law, the defense acquisition and support workforce

7 may not be reduced, during fiscal years 2002, 2003, and

8 2004, below the level of that workforce as of September

9 30, 2001, determined on the basis of full-time equivalent

10 positions.

11 (b) WAIVER AUTHORITY.—The Secretary of Defense

12 may waive the prohibition in subsection (a) and reduce

13 the level of the defense acquisition and support workforce

14 upon submitting to Congress the Secretary’s certification

15 that the defense acquisition and support workforce, at the

16 level to which reduced, will be able efficiently and effec17 tively to perform the workloads that are required of that

18 workforce consistent with the cost-effective management

19 of the defense acquisition system to obtain best value

20 equipment and with ensuring military readiness.

21 (c) DEFENSE ACQUISITION AND SUPPORT WORK22 FORCE DEFINED.—In this section, the term ‘‘defense ac23 quisition and support workforce’’ means Armed Forces

24 and civilian personnel who are assigned to, or are em-
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1 ployed in, an organization of the Department of Defense

2 that is—

3 (1) an acquisition organization specified in De4 partment of Defense Instruction 5000.58, dated

5 January 14, 1992; or

6 (2) an organization not so specified that has ac7 quisition as its predominant mission, as determined

8 by the Secretary of Defense.

9 SEC. 813. REVISION OF ACQUISITION WORKFORCE QUALI10 FICATION REQUIREMENTS.

11 (a) SPECIAL REQUIREMENTS FOR MEMBERS OF A

12 CONTINGENCY CONTRACTING FORCE.—(1) Subchapter II

13 of chapter 87 of title 10, United States Code, is amended

14 by inserting after section 1724 the following new section:

15 ‘‘§ 1724a. Contingency contracting force: qualification

16 requirements

17 ‘‘(a) CONTINGENCY CONTRACTING FORCE.—The

18 Secretary of Defense may identify as a contingency con19 tracting force the acquisition positions described in sub20 sections (a) and (b) of section 1724 of this title that in21 volve duties requiring the personnel in those positions to

22 deploy to perform contracting functions in support of a

23 contingency operation or other Department of Defense op24 eration.
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1 ‘‘(b) QUALIFICATION REQUIREMENTS.—The Sec2 retary of Defense shall prescribe the qualification require3 ments for a person appointed to a position in any contin4 gency contracting force identified under subsection (a).

5 The requirements shall include requirements that the

6 person—

7 ‘‘(1) either—

8 ‘‘(A) have completed the credits of study

9 as described in section 1724(a)(3)(B) of this

10 title;

11 ‘‘(B) have passed an examination consid12 ered by the Secretary of Defense to dem13 onstrate that the person has skills, knowledge,

14 or abilities comparable to that of a person who

15 has completed the credits of study described in

16 such section; or

17 ‘‘(C) through a combination of having com18 pleted some of the credits of study described in

19 such section and having passed an examination,

20 have demonstrated that the person has skills,

21 knowledge, or abilities comparable to that of a

22 person who has completed all of the credits of

23 study described in such section; and
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1 ‘‘(2) have satisfied such additional requirements

2 for education and experience as the Secretary may

3 prescribe.’’.

4 (2) The table of sections at the beginning of such sub5 chapter is amended by inserting after the item relating

6 to section 1724 the following new item:

‘‘1724a. Contingency contracting force: qualification requirements.’’.

7 (b) EXCEPTIONS TO GENERALLY APPLICABLE QUAL8 IFICATION REQUIREMENTS.—Subsection (c) of such sec9 tion is amended to read as follows:

10 ‘‘(c) EXCEPTIONS.—(1) The requirements imposed

11 under subsection (a) or (b) of this section shall not apply

12 to a person for either of the following purposes:

13 ‘‘(A) In the case of an employee, to qualify to

14 serve in the position in which the employee was serv15 ing on October 1, 1993, or in any other position in

16 the same or lower grade and involving the same or

17 lower level of responsibilities as the position in which

18 the employee was serving on such date.

19 ‘‘(B) To qualify to serve in an acquisition posi20 tion in any contingency contracting force identified

21 under section 1724a of this title.

22 ‘‘(2) Subject to paragraph (3), the requirements im23 posed under subsection (a) or (b) shall not apply to a per24 son who, before October 1, 2000, served—
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1 ‘‘(A) as a contracting officer in an executive

2 agency with authority to award or administer con3 tracts in excess of the simplified acquisition thresh4 old (referred to in section 2304(g) of this title); or

5 ‘‘(B) in a position in an executive agency either

6 as an employee in the GS–1102 occupational series

7 or as a member of the armed forces in a similar oc8 cupational specialty.

9 ‘‘(3) For the exception in subparagraph (A) or (B)

10 of paragraph (2) to apply to an employee with respect to

11 the requirements imposed under subsection (a) or (b), the

12 employee must—

13 ‘‘(A) before October 1, 2000—

14 ‘‘(i) have received a baccalaureate degree

15 as described in subparagraph (A) of subsection

16 (a)(3);

17 ‘‘(ii) have completed credits of study as de18 scribed in subparagraph (B) of subsection

19 (a)(3);

20 ‘‘(iii) have passed an examination consid21 ered by the Secretary of Defense to dem22 onstrate skills, knowledge, or abilities com23 parable to that of a person who has completed

24 credits of study as described in subparagraph

25 (B) of subsection (a)(3); or
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1 ‘‘(iv) have been granted a waiver of the ap2 plicability of the requirements imposed under

3 subsection (a) or (b), as the case may be; or

4 ‘‘(B) on October 1, 1991, had at least 10 years

5 of experience in one or more acquisition positions in

6 the Department of Defense, comparable positions in

7 other government agencies or the private sector, or

8 similar positions in which an individual obtains expe9 rience directly relevant to the field of contracting.’’.

10 (c) CLARIFICATION OF APPLICABILITY OF WAIVER

11 AUTHORITY TO MEMBERS OF THE ARMED FORCES.—

12 Subsection (d) of such section is amended by striking ‘‘em13 ployee or member of’’ in the first sentence and inserting

14 ‘‘employee of, or a member of an armed force in,’’.

15 (d) OFFICE OF PERSONNEL MANAGEMENT AP16 PROVAL OF GENERALLY APPLICABLE DISCRETIONARY

17 REQUIREMENTS.—Section 1725 of title 10, United States

18 Code, is amended—

19 (1) in subsection (a), by striking ‘‘section 1723

20 or under section 1724(a)(4) of this title’’ in the first

21 sentence and inserting ‘‘section 1723, 1724(a)(4), or

22 1724a(b)(2)’’; and

23 (2) in subsection (b), by striking ‘‘subsection

24 (a)(3) or (b) of section 1724 of this title’’ in the

25 first sentence and inserting ‘‘subsection (a)(3), (b),
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1 or (c)(3)(A)(iii) of section 1724 of this title or under

2 subparagraph (B) or (C) of section 1724a(b)(1) of

3 this title’’.

4 (e) TECHNICAL CORRECTIONS.—Sections

5 1724(a)(3)(B) and 1732(c)(2) of such title are amended

6 by striking ‘‘business finance’’ and inserting ‘‘business, fi7 nance’’.

8 Subtitle C—Use of Preferred

9 Sources

10 SEC. 821. APPLICABILITY OF COMPETITION REQUIRE11 MENTS TO PURCHASES FROM A REQUIRED

12 SOURCE.

13 (a) CONDITIONS FOR COMPETITION.—(1) Chapter

14 141 of title 10, United States Code, is amended by adding

15 at the end the following:

16 ‘‘§ 2410n. Products of Federal Prison Industries: pro17 cedural requirements

18 ‘‘(a) MARKET RESEARCH BEFORE PURCHASE.—Be19 fore purchasing a product listed in the latest edition of

20 the Federal Prison Industries catalog under section

21 4124(d) of title 18, the Secretary of Defense shall conduct

22 market research to determine whether the Federal Prison

23 Industries product is comparable in price, quality, and

24 time of delivery to products available from the private sec25 tor.
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1 ‘‘(b) LIMITED COMPETITION REQUIREMENT.—If the

2 Secretary determines that a Federal Prison Industries

3 product is not comparable in price, quality, and time of

4 delivery to products available from the private sector, the

5 Secretary shall use competitive procedures for the procure6 ment of the product. In conducting such a competition,

7 the Secretary shall consider a timely offer from Federal

8 Prison Industries for award in accordance with the speci9 fications and evaluation factors specified in the solicita10 tion.

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

12 chapter is amended by adding at the end the following:

‘‘2410n. Products of Federal Prison Industries: procedural requirements.’’.

13 (b) APPLICABILITY.—Section 2410n of title 10,

14 United States Code (as added by subsection (a)), shall

15 apply to purchases initiated on or after October 1, 2001.

16 SEC. 822. CONSOLIDATION OF CONTRACT REQUIREMENTS.

17 (a) AMENDMENT TO TITLE 10.—(1) Chapter 141 of

18 title 10, United States Code, is amended by inserting after

19 section 2381 the following new section:

20 ‘‘§ 2382. Consolidation of contract requirements: pol21 icy and restrictions

22 ‘‘(a) POLICY.—The Secretary of Defense shall re23 quire the Secretary of each military department, the head

24 of each Defense Agency, and the head of each Department

25 of Defense Field Activity to ensure that the decisions
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1 made by that official regarding consolidation of contract

2 requirements of the department, agency, or activity as the

3 case may be, are made with a view to providing small busi4 ness concerns with appropriate opportunities to partici5 pate in Department of Defense procurements as prime

6 contractors and appropriate opportunities to participate in

7 such procurements as subcontractors.

8 ‘‘(b) LIMITATION ON USE OF ACQUISITION STRATE9 GIES INVOLVING CONSOLIDATION.—(1) An official of a

10 military department, Defense Agency, or Department of

11 Defense Field Activity may not execute an acquisition

12 strategy that includes a consolidation of contract require13 ments of the military department, agency, or activity with

14 a total value in excess of $5,000,000, unless the senior

15 procurement executive concerned first—

16 ‘‘(A) conducts market research;

17 ‘‘(B) identifies any alternative contracting ap18 proaches that would involve a lesser degree of con19 solidation of contract requirements; and

20 ‘‘(C) determines that the consolidation is nec21 essary and justified.

22 ‘‘(2) A senior procurement executive may determine

23 that an acquisition strategy involving a consolidation of

24 contract requirements is necessary and justified for the

25 purposes of paragraph (1) if the benefits of the acquisition
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1 strategy substantially exceed the benefits of each of the

2 possible alternative contracting approaches identified

3 under subparagraph (B) of that paragraph. However, sav4 ings in administrative or personnel costs alone do not con5 stitute, for such purposes, a sufficient justification for a

6 consolidation of contract requirements in a procurement

7 unless the total amount of the cost savings is expected

8 to be substantial in relation to the total cost of the pro9 curement.

10 ‘‘(3) Benefits considered for the purposes of para11 graphs (1) and (2) may include cost and, regardless of

12 whether quantifiable in dollar amounts—

13 ‘‘(A) quality;

14 ‘‘(B) acquisition cycle;

15 ‘‘(C) terms and conditions; and

16 ‘‘(D) any other benefit.

17 ‘‘(c) DEFINITIONS.—In this section:

18 ‘‘(1) The terms ‘consolidation of contract re19 quirements’ and ‘consolidation’, with respect to con20 tract requirements of a military department, De21 fense Agency, or Department of Defense Field Activ22 ity, mean a use of a solicitation to obtain offers for

23 a single contract or a multiple award contract to sat24 isfy two or more requirements of that department,

25 agency, or activity for goods or services that have
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1 previously been provided to, or performed for, that

2 department, agency, or activity under two or more

3 separate contracts smaller in cost than the total cost

4 of the contract for which the offers are solicited.

5 ‘‘(2) The term ‘‘multiple award contract’’

6 means—

7 ‘‘(A) a contract that is entered into by the

8 Administrator of General Services under the

9 multiple award schedule program referred to in

10 section 2302(2)(C) of this title;

11 ‘‘(B) a multiple award task order contract

12 or delivery order contract that is entered into

13 under the authority of sections 2304a through

14 2304d of this title or sections 303H through

15 303K of the Federal Property and Administra16 tive Services Act of 1949 (41 U.S.C. 253h

17 through 253k); and

18 ‘‘(C) any other indeterminate delivery, in19 determinate quantity contract that is entered

20 into by the head of a Federal agency with two

21 or more sources pursuant to the same solicita22 tion.

23 ‘‘(3) The term ‘senior procurement executive

24 concerned’ means—
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1 ‘‘(A) with respect to a military department,

2 the official designated under section 16(3) of

3 the Office of Federal Procurement Policy Act

4 (41 U.S.C. 414(3)) as the senior procurement

5 executive for the military department; or

6 ‘‘(B) with respect to a Defense Agency or

7 a Department of Defense Field Activity, the of8 ficial so designated for the Department of De9 fense.

10 ‘‘(4) The term ‘small business concern’ means

11 a business concern that is determined by the Admin12 istrator of the Small Business Administration to be

13 a small-business concern by application of the stand14 ards prescribed under section 3(a) of the Small

15 Business Act (15 U.S.C. 632(a)).’’.

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

17 chapter is amended by inserting after the item relating

18 to section 2381 the following new item:

‘‘2382. Consolidation of contract requirements: policy and restrictions.’’.

19 (b) DATA REVIEW.—(1) The Secretary of Defense

20 shall revise the data collection systems of the Department

21 of Defense to ensure that such systems are capable of

22 identifying each procurement that involves a consolidation

23 of contract requirements within the department with a

24 total value in excess of $5,000,000.
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1 (2) The Secretary shall ensure that appropriate offi2 cials of the Department of Defense periodically review the

3 information collected pursuant to paragraph (1) in co4 operation with the Small Business Administration—

5 (A) to determine the extent of the consolidation

6 of contract requirements in the Department of De7 fense; and

8 (B) to assess the impact of the consolidation of

9 contract requirements on the availability of opportu10 nities for small business concerns to participate in

11 Department of Defense procurements, both as prime

12 contractors and as subcontractors.

13 (3) In this subsection:

14 (A) The term ‘‘bundling of contract require15 ments’’ has the meaning given that term in section

16 3(o)(2) of the Small Business Act (15 U.S.C.

17 632(o)(2)).

18 (B) The term ‘‘consolidation of contract re19 quirements’’ has the meaning given that term in sec20 tion 2382(c)(1) of title 10, United States Code, as

21 added by subsection (a).

22 (c) EVALUATION OF BUNDLING EFFECTS.—Section

23 15(h)(2) of the Small Business Act (15 U.S.C. 644(h)(2))

24 is amended—
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1 (1) in subparagraph (C), by inserting ‘‘, and

2 whether contract bundling played a role in the fail3 ure,’’ after ‘‘agency goals’’; and

4 (2) by adding at the end the following:

5 ‘‘(G) The number and dollar value of consolida6 tions of contract requirements with a total value in

7 excess of $5,000,000, including the number of such

8 consolidations that were awarded to small business

9 concerns as prime contractors.’’.

10 (d) REPORTING REQUIREMENT.—Section 15(p) of

11 the Small Business Act (15 U.S.C. 644(p)) is amended

12 to read as follows:

13 ‘‘(p) REPORTING REQUIREMENT.—

14 ‘‘(1) IN GENERAL.—The Administrator shall

15 conduct a study examining the best means to deter16 mine the accuracy of the market research required

17 under subsection (e)(2) for each bundled contract, to

18 determine if the anticipated benefits were realized,

19 or if they were not realized, the reasons there for.

20 ‘‘(2) PROVISION OF INFORMATION.—A Federal

21 agency shall provide to the appropriate procurement

22 center representative a copy of market research re23 quired under subsection (e)(2) for consolidations of

24 contract requirements with a total value in excess of

25 $5,000,000, upon request.
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1 ‘‘(3) REPORT.—Not later than 270 days after

2 the date of enactment of the National Defense Au3 thorization Act for Fiscal Year 2002, the Adminis4 trator shall submit a report to the Committee on

5 Small Business and Entrepreneurship of the Senate

6 and the Committee on Small Business of the House

7 of Representatives on the results of the study con8 ducted under this subsection.’’.

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 con5 cern; or

6 ‘‘(ii) a small business concern owned and

7 controlled by women; and

8 ‘‘(B) is eligible for the award of Federal con9 tracts.

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 SEC. 824. HUBZONE SMALL BUSINESS CONCERNS.

5 Section 3(p) of the Small Business Act (15 U.S.C.

6 632(p)) is amended—

7 (1) by redesignating paragraphs (4) through

8 (7) as paragraphs (5) through (8), respectively; and

9 (2) by inserting after paragraph (3) the fol10 lowing:

11 ‘‘(4) RULE OF CONSTRUCTION RELATING TO

12 CITIZENSHIP.—

13 ‘‘(A) IN GENERAL.—A small business con14 cern described in subparagraph (B) meets the

15 United States citizenship requirement of para16 graph (3)(A) if, at the time of application by

17 the concern to become a qualified HUBZone

18 small business concern for purposes of any con19 tract and at such times as the Administrator

20 shall require, no non-citizen has filed a disclo21 sure under section 13(d)(1) of the Securities

22 Exchange Act of 1934 (15 U.S.C. 78m(d)(1))

23 as the beneficial owner of more than 10 percent

24 of the outstanding shares of that small business

25 concern.
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1 ‘‘(B) CONCERNS DESCRIBED.—A small

2 business concern is described in this subpara3 graph if the small business concern—

4 ‘‘(i) has a class of securities registered

5 under section 12 of the Securities Ex6 change Act of 1934 (15 U.S.C. 78l); and

7 ‘‘(ii) files reports with the Securities

8 and Exchange Commission as a small busi9 ness issuer.’’.

10 ‘‘(C) NON-CITIZENS.—In this paragraph,

11 the term ‘non-citizen’ means

12 ‘‘(i) an individual that is not a United

13 States citizen; and

14 ‘‘(ii) any other person that is not or15 ganized under the laws of any State or the

16 United States.’’.
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1 Subtitle D—Amendments to Gen2 eral Contracting Authorities,

3 Procedures, and Related Mat4 ters

5 SEC. 831. AMENDMENTS TO CONFORM WITH ADMINISTRA6 TIVE CHANGES IN ACQUISITION PHASE AND

7 MILESTONE TERMINOLOGY AND TO MAKE

8 RELATED ADJUSTMENTS IN CERTAIN RE9 QUIREMENTS APPLICABLE AT MILESTONE

10 TRANSITION POINTS.

11 (a) ACQUISITION PHASE TERMINOLOGY.—The fol12 lowing provisions of title 10, United States Code, are

13 amended by striking ‘‘engineering and manufacturing de14 velopment’’ each place it appears and inserting ‘‘system

15 development and demonstration’’: sections 2366(c) and

16 2434(a), and subsections (b)(3)(A)(i), (c)(3)(A), and

17 (h)(1) of section 2432.

18 (b) MILESTONE TRANSITION POINTS.—(1) Section

19 811(c) of the Floyd D. Spence National Defense Author20 ization Act for Fiscal Year 2001 (as enacted into law by

21 Public Law 106–398; 114 Stat. 1654A–211), is amended

22 by striking ‘‘Milestone I approval, Milestone II approval,

23 or Milestone III approval (or the equivalent) of a major

24 automated information system’’ and inserting ‘‘approval

25 of a major automated information system at Milestone B
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1 or C or for full rate production, or an equivalent ap2 proval,’’.

3 (2) Department of Defense Directive 5000.1, as re4 vised in accordance with subsection (b) of section 811 of

5 such Act, shall be further revised as necessary to comply

6 with subsection (c) of such section, as amended by para7 graph (1), within 60 days after the date of the enactment

8 of this Act.

9 (c) ADJUSTMENTS TO REQUIREMENT FOR DETER10 MINATION OF QUANTITY FOR LOW-RATE INITIAL PRO11 DUCTION.—Section 2400(a) of title 10, United States

12 Code, is amended—

13 (1) by striking ‘‘milestone II’’ each place it ap14 pears in paragraphs (1)(A), (2), (4) and (5) and in15 serting ‘‘milestone B’’; and

16 (2) in paragraph (2), by striking ‘‘engineering

17 and manufacturing development’’ and inserting ‘‘sys18 tem development and demonstration’’.

19 (d) ADJUSTMENTS TO REQUIREMENTS FOR BASE20 LINE DESCRIPTION AND THE RELATED LIMITATION.—

21 Section 2435 of title 10, United States Code, is

22 amended—

23 (1) in subsection (b), by striking ‘‘engineering

24 and manufacturing development’’ and inserting ‘‘sys25 tem development and demonstration’’; and
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1 (2) in subsection (c)—

2 (A) in paragraph (1), by striking ‘‘dem3 onstration and validation’’ and inserting ‘‘sys4 tem development and demonstration’’;

5 (B) in paragraph (2), by striking ‘‘engi6 neering and manufacturing development’’ and

7 inserting ‘‘production and deployment’’; and

8 (C) in paragraph (3), by striking ‘‘produc9 tion and deployment’’ and inserting ‘‘full rate

10 production’’.

11 SEC. 832. INAPPLICABILITY OF LIMITATION TO SMALL PUR12 CHASES OF MINIATURE OR INSTRUMENT

13 BALL OR ROLLER BEARINGS UNDER CER14 TAIN CIRCUMSTANCES.

15 Section 2534(g)(2) of title 10, United States Code,

16 is amended—

17 (1) by striking ‘‘contracts’’ and inserting ‘‘a

18 contract’’;

19 (2) by striking the period at the end and insert20 ing ‘‘unless the head of the contracting activity de21 termines that—’’; and

22 (3) by adding at the end the following:

23 ‘‘(A) the amount of the purchase does not ex24 ceed $25,000;
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1 ‘‘(B) the precision level of the ball or roller

2 bearings to be procured under the contract is rated

3 lower than the rating known as Annual Bearing En4 gineering Committee (ABEC) 5 or Roller Bearing

5 Engineering Committee (RBEC) 5, or an equivalent

6 of such rating;

7 ‘‘(C) at least two manufacturers in the national

8 technology and industrial base that are capable of

9 producing the ball or roller bearings have not re10 sponded to a request for quotation issued by the

11 contracting activity for that contract; and

12 ‘‘(D) no bearing to be procured under the con13 tract has a basic outside diameter (exclusive of

14 flange diameters) in excess of 30 millimeters.’’.

15 SEC. 833. INSENSITIVE MUNITIONS PROGRAM.

16 (a) REQUIREMENT FOR PROGRAM.—Chapter 141 of

17 title 10, United States Code, is amended by inserting after

18 section 2404 the following new section 2405:

19 ‘‘§ 2405. Insensitive munitions program

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

21 of Defense shall carry out a program to ensure, to the

22 extent practicable, that munitions under development or

23 in procurement are safe throughout development and field24 ing when subjected to unplanned stimuli.
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1 ‘‘(b) CONTENT OF PROGRAM.—The program shall in2 clude safety criteria, safety procedures, and requirements

3 to conform to those criteria and procedures.

4 ‘‘(c) REPORTING REQUIREMENT.—At the same time

5 that the budget for a fiscal year is submitted to Congress

6 under section 1105(a) of title 31, the Secretary shall sub7 mit to Congress a report on the insensitive munitions pro8 gram. The report shall include the following matters:

9 ‘‘(1) The waivers of requirements referred to in

10 subsection (b) that have been granted under the pro11 gram during the fiscal year preceding fiscal year in

12 which the report is submitted, together with a dis13 cussion of the justifications for the waivers.

14 ‘‘(2) Identification of the funding proposed for

15 the program in that budget, together with an expla16 nation of the proposed funding.’’.

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

18 at the beginning of such chapter is amended by inserting

19 after the item relating to section 2404 the following new

20 item:

‘‘2405. Insensitive munitions program.’’.
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1 TITLE IX—DEPARTMENT OF DE2 FENSE ORGANIZATION AND

3 MANAGEMENT

4 Subtitle A—Organization and

5 Management

6 SEC. 901. DEPUTY UNDER SECRETARY OF DEFENSE FOR

7 PERSONNEL AND READINESS.

8 (a) ESTABLISHMENT OF POSITION.—(1) Chapter 4

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

10 after section 136 the following new section:

11 ‘‘§ 136a. Deputy Under Secretary of Defense for Per12 sonnel and Readiness

13 ‘‘(a) There is a Deputy Under Secretary of Defense

14 for Personnel and Readiness, appointed from civilian life

15 by the President, by and with the advice and consent of

16 the Senate.

17 ‘‘(b) The Deputy Under Secretary of Defense for Per18 sonnel and Readiness shall assist the Under Secretary of

19 Defense for Personnel and Readiness in the performance

20 of the duties of that position. The Deputy Under Sec21 retary of Defense for Personnel and Readiness shall act

22 for, and exercise the powers of, the Under Secretary when

23 the Under Secretary is absent or disabled.’’.
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1 (2) The table of sections at the beginning of such

2 chapter is amended by inserting after the item relating

3 to section 136 the following new item:

‘‘136a. Deputy Under Secretary of Defense for Personnel and Readiness.’’.

4 (b) EXECUTIVE LEVEL IV.—Section 5315 of title 5,

5 United States Code, is amended by inserting after ‘‘Dep6 uty Under Secretary of Defense for Policy.’’ the following:

7 ‘‘Deputy Under Secretary of Defense for Per8 sonnel and Readiness.’’.

9 (c) REDUCTION IN NUMBER OF ASSISTANT SECRE10 TARIES OF DEFENSE.—(1) Section 138(a) of title 10,

11 United States Code, is amended by striking ‘‘nine’’ and

12 inserting ‘‘eight’’.

13 (2) Section 5315 of title 5, United States Code, is

14 amended by striking ‘‘Assistant Secretaries of Defense

15 (9).’’ and inserting the following:

16 ‘‘Assistant Secretaries of Defense (8).’’.

17 SEC. 902. RESPONSIBILITY OF UNDER SECRETARY OF THE

18 AIR FORCE FOR ACQUISITION OF SPACE

19 LAUNCH VEHICLES AND SERVICES.

20 Section 8015(b) of title 10, United States Code, is

21 amended—

22 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

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

24 paragraph:
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1 ‘‘(2) The Under Secretary shall be responsible for

2 planning and contracting for, and for managing, the ac3 quisition of space launch vehicles and space launch serv4 ices for the Department of Defense and the National Re5 connaissance Office.’’.

6 SEC. 903. SENSE OF CONGRESS REGARDING THE SELEC7 TION OF OFFICERS FOR ASSIGNMENT AS THE

8 COMMANDER IN CHIEF, UNITED STATES

9 TRANSPORTATION COMMAND.

10 (a) FINDINGS.—Congress makes the following find11 ings:

12 (1) The Goldwater-Nichols Department of De13 fense Reorganization Act of 1986 envisioned that an

14 officer would be assigned to serve as the commander

15 of a combatant command on the basis of being the

16 best qualified officer for the assignment rather than

17 the best qualified officer of the armed force that has

18 historically supplied an officer to serve in that as19 signment.

20 (2) In order to provide for greater competition

21 among the Armed Forces for selection of officers for

22 assignment as the commanders of the combatant

23 commands and assignment to certain other joint po24 sitions in the grade of general or admiral, Congress

25 provided temporary relief from the limitation on the
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1 number of officers serving on active duty in the

2 grade of general or admiral in section 405 of the

3 National Defense Authorization Act for Fiscal Year

4 1995 and thereafter extended that relief until Sep5 tember 30, 2003, but has also required that the Sec6 retary of Defense be furnished the name of at least

7 one officer from each of the Armed Forces for con8 sideration for appointment to each such position.

9 (3) Most of the positions of commanders of the

10 combatant commands have been filled successively

11 by officers of more than one of the Armed Forces

12 since the enactment of the Goldwater-Nichols De13 partment of Defense Reorganization Act of 1986.

14 (4) However, general officers of the Air Force

15 with only limited experience in the transportation

16 services have usually filled the position of Com17 mander in Chief of the United States Transpor18 tation Command.

19 (5) The United States Transportation Com20 mand and its component commands could benefit

21 from the appointment of an officer selected from the

22 two armed forces that are the primary users of their

23 transportation resources, namely the Army and the

24 Marine Corps.
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1 (b) SENSE OF CONGRESS.— In light of the findings

2 set forth in subsection (a), it is the sense of Congress that

3 the Secretary of Defense should, when considering officers

4 for recommendation to the President for appointment as

5 the Commander in Chief, United States Transportation

6 Command, give careful consideration to recommending an

7 officer of the Army or the Marine Corps.

8 SEC. 904. ORGANIZATIONAL REALIGNMENT FOR NAVY DI9 RECTOR FOR EXPEDITIONARY WARFARE.

10 Section 5038(a) of title 10, United States Code, is

11 amended by striking ‘‘Office of the Deputy Chief of Naval

12 Operations for Resources, Warfare Requirements, and As13 sessments’’ and inserting ‘‘Office of the Deputy Chief of

14 Naval Operations for Warfare Requirements and Pro15 grams’’.

16 SEC. 905. REVISED REQUIREMENTS FOR CONTENT OF AN17 NUAL REPORT ON JOINT WARFIGHTING EX18 PERIMENTATION.

19 Section 485(b) of title 10, United States Code, is

20 amended—

21 (1) by inserting before the period at the end of

22 paragraph (1) the following: ‘‘, together with a spe23 cific assessment of whether there is a need for a

24 major force program for funding joint warfighting

25 experimentation and for funding the development
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1 and acquisition of any technology the value of which

2 has been empirically demonstrated through such ex3 perimentation’’; and

4 (2) in paragraph (4)(E)—

5 (A) by inserting ‘‘(by lease or by pur6 chase)’’ after ‘‘acquire’’; and

7 (B) by inserting ‘‘(including any proto8 type)’’ after ‘‘or equipment’’.

9 SEC. 906. SUSPENSION OF REORGANIZATION OF ENGINEER10 ING AND TECHNICAL AUTHORITY POLICY

11 WITHIN THE NAVAL SEA SYSTEMS COMMAND.

12 (a) SUSPENSION.—During the period specified in

13 subsection (b), the Secretary of the Navy may not com14 mence or continue any change in engineering or technical

15 authority policy for the Naval Sea Systems Command or

16 its subsidiary activities.

17 (b) DURATION.—Subsection (a) applies during the

18 period beginning on the date of enactment of this Act and

19 ending 60 days after the date on which the Secretary sub20 mits to the congressional defense committees a report that

21 sets forth in detail the Navy’s plans and justification for

22 the reorganization of engineering and technical authority

23 policy within the Naval Sea Systems Command.
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1 SEC. 907. CONFORMING AMENDMENTS RELATING TO

2 CHANGE OF NAME OF AIR MOBILITY COM3 MAND.

4 (a) TITLE 10, UNITED STATES CODE.—Title 10,

5 United States Code, is amended—

6 (1) by striking ‘‘Military Airlift Command’’ in

7 sections 2554(d) and 2555(a) and inserting ‘‘Air

8 Mobility Command’’; and

9 (2) in section 8074, by striking subsection (c).

10 (b) TITLE 37, UNITED STATES CODE.—Sections

11 430(c) and 432(b) of title 37, United States Code, are

12 amended by striking ‘‘Military Airlift Command’’ and in13 serting ‘‘Air Mobility Command’’.

14 Subtitle B—Organization and

15 Management of Space Activities

16 SEC 911. ESTABLISHMENT OF POSITION OF UNDER SEC17 RETARY OF DEFENSE FOR SPACE, INTEL18 LIGENCE, AND INFORMATION.

19 (a) AUTHORITY OF SECRETARY OF DEFENSE TO ES20 TABLISH POSITION.—Upon the direction of the President,

21 the Secretary of Defense may, subject to subsection (b),

22 establish in the Office of the Secretary of Defense the po23 sition of Under Secretary of Defense for Space, Intel24 ligence, and Information. If the position is so established,

25 the Under Secretary of Defense for Space, Intelligence,

26 and Information shall perform duties and exercise powers
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1 as set forth under section 137 of title 10, United States

2 Code, as amended by subsection (d).

3 (b) DEADLINE FOR EXERCISE OF AUTHORITY.—The

4 Secretary may not exercise the authority in subsection (a)

5 after December 31, 2003.

6 (c) NOTICE OF EXERCISE OF AUTHORITY.—If the

7 authority in subsection (a) is exercised, the Secretary shall

8 immediately notify Congress of the establishment of the

9 position of Under Secretary of Defense for Space, Intel10 ligence, and Information, together with the date on which

11 the position is established.

12 (d) NATURE OF POSITION.—

13 (1) IN GENERAL.—Effective as of the date pro14 vided for in paragraph (7), chapter 4 of title 10,

15 United States Code, is amended—

16 (A) by redesignating section 137 as section

17 139a and by transferring such section (as so re18 designated) within such chapter so as to appear

19 after section 139; and

20 (B) by inserting after section 136 the fol21 lowing new section 137:

22 ‘‘§ 137. Under Secretary of Defense for Space, Intel23 ligence, and Information

24 ‘‘(a) There is an Under Secretary of Defense for

25 Space, Intelligence, and Information, appointed from civil-
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1 ian life by the President, by and with the advice and con2 sent of the Senate.

3 ‘‘(b) Subject to the authority, direction, and control

4 of the Secretary of Defense, the Under Secretary of De5 fense for Space, Intelligence, and Information shall per6 form such duties and exercise such powers relating to the

7 space, intelligence, and information programs and activi8 ties of the Department of Defense as the Secretary of De9 fense may prescribe. The duties and powers prescribed for

10 the Under Secretary shall include the following:

11 ‘‘(1) In coordination with the Under Secretary

12 of Defense for Policy, the establishment of policy on

13 space.

14 ‘‘(2) In coordination with the Under Secretary

15 of Defense for Acquisition, Technology, and Logis16 tics, the acquisition of space systems.

17 ‘‘(3) The deployment and use of space assets.

18 ‘‘(4) The oversight of research, development,

19 acquisition, launch, and operation of space, intel20 ligence, and information assets.

21 ‘‘(5) The coordination of military intelligence

22 activities within the Department.

23 ‘‘(6) The coordination of intelligence activities

24 of the Department and the intelligence community
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1 in order to meet the long-term intelligence require2 ments of the United States.

3 ‘‘(7) The coordination of space activities of the

4 Department with commercial and civilian space ac5 tivities.

6 ‘‘(c) The Secretary of Defense shall designate the

7 Under Secretary of Defense for Space, Intelligence, and

8 Information as the Chief Information Officer of the De9 partment of Defense under section 3506(a)(2)(B) of title

10 44.

11 ‘‘(d) The Under Secretary of Defense for Space, In12 telligence, and Information takes precedence in the De13 partment of Defense after the Under Secretary of Defense

14 for Personnel and Readiness.’’.

15 (2) ADDITIONAL ASSISTANT SECRETARY OF DE16 FENSE.—Section 138(a) of that title is amended by

17 striking ‘‘nine Assistant Secretaries of Defense’’ and

18 inserting ‘‘ten Assistant Secretaries of Defense’’.

19 (3) DUTIES OF ASSISTANT SECRETARIES OF

20 DEFENSE FOR SPACE, INTELLIGENCE, AND INFOR21 MATION.—Section 138(b) of that title is amended by

22 adding at the end the following new paragraph:

23 ‘‘(7) Two of the Assistant Secretaries shall have as

24 their principal duties supervision of activities relating to

25 space, intelligence, and information. The Assistant Secre-
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1 taries shall each report to the Under Secretary of Defense

2 for Space, Intelligence, and Information in the perform3 ance of such duties.’’.

4 (4) CONFORMING AMENDMENTS.—Section

5 131(b) of that title is amended—

6 (A) by redesignating paragraphs (6)

7 through (11) as paragraphs (7) through (12),

8 respectively; and

9 (B) by inserting after paragraph (5) the

10 following new paragraph (6):

11 ‘‘(6) The Under Secretary of Defense for

12 Space, Intelligence, and Information.’’.

13 (5) PAY LEVELS.—(A) Section 5314 of title 5,

14 United States Code, is amended by inserting after

15 ‘‘Under Secretary of Defense for Personnel and

16 Readiness’’ the following:

17 ‘‘Under Secretary of Defense for Space, Intel18 ligence, and Information.’’.

19 (B) Section 5315 of title 5, United States Code,

20 is amended in the item relating to Assistant Secre21 taries of Defense by striking ‘‘(9)’’ and inserting

22 ‘‘(10)’’.

23 (6) CLERICAL AMENDMENTS.—The table of sec24 tions at the beginning of chapter 4 of title 10,

25 United States Code, is amended—
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1 (A) by striking the item relating to section

2 137 and inserting the following new item:

‘‘137. Under Secretary of Defense for Space, Intelligence, and Information.’’;

and

3 (B) by inserting after the item relating to

4 section 139 the following new item:

‘‘139a. Director of Defense Research and Engineering.’’.

5 (7) EFFECTIVE DATE.—The amendments made

6 by this subsection shall take effect as of the date

7 specified in the notification provided by the Sec8 retary of Defense to Congress under subsection (c)

9 of the exercise of the authority in subsection (a).

10 (e) REPORT.—(1) Not later than 30 days before an

11 exercise of the authority provided in subsection (a), the

12 President shall submit to Congress a report on the pro13 posed organization of the office of the Under Secretary

14 of Defense for Space, Intelligence, and Information.

15 (2) If the Secretary of Defense has not exercised the

16 authority granted in subsection (a) on the date that is one

17 year after the date of the enactment of this Act, the Sec18 retary shall submit to the Committees on Armed Services

19 of the Senate and the House of Representatives on that

20 date a report describing the actions taken by the Secretary

21 to address the problems in the management and organiza22 tion of the Department of Defense for space activities that

23 are identified by the Commission To Assess United States
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1 National Security Space Management and Organization in

2 the report of the Commission submitted under section

3 1623 of the National Defense Authorization Act for Fiscal

4 Year 2000 (Public Law 106–65; 113 Stat. 815).

5 SEC. 912. RESPONSIBILITY FOR SPACE PROGRAMS.

6 (a) IN GENERAL.—Part IV of subtitle A of title 10,

7 United States Code, is amended by inserting after chapter

8 134 the following new chapter:

9 ‘‘CHAPTER 135—SPACE PROGRAMS

‘‘Sec.

‘‘2271. Responsibility for space programs.

10 ‘‘§ 2271. Responsibility for space programs

11 ‘‘(a) RESPONSIBILITY OF SECRETARY OF AIR FORCE

12 AS EXECUTIVE AGENT.—The Secretary of the Air Force

13 shall be the executive agent of the Department of Defense

14 for functions of the Department designated by the Sec15 retary of Defense with respect to the following:

16 ‘‘(1) Planning for the acquisition programs,

17 projects, and activities of the Department that relate

18 to space.

19 ‘‘(2) Efficient execution of the programs,

20 projects, and activities.

21 ‘‘(b) RESPONSIBILITY OF UNDER SECRETARY OF AIR

22 FORCE AS ACQUISITION EXECUTIVE.—The Under Sec23 retary of the Air Force shall be the acquisition executive
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1 of the Department of the Air Force for the programs,

2 projects, and activities referred to in subsection (a).

3 ‘‘(c) RESPONSIBILITY OF UNDER SECRETARY OF AIR

4 FORCE AS DIRECTOR OF NRO.—The Under Secretary of

5 the Air Force shall act as the Director of the National

6 Reconnaissance Office.

7 ‘‘(d) COORDINATION OF DUTIES OF UNDER SEC8 RETARY OF AIR FORCE.—In carrying out duties under

9 subsections (b) and (c), the Under Secretary of the Air

10 Force shall coordinate the space programs, projects, and

11 activities of the Department of Defense and the programs,

12 projects, and activities of the National Reconnaissance Of13 fice.

14 ‘‘(e) SPACE CAREER FIELD.—(1) The Under Sec15 retary of the Air Force shall establish and implement poli16 cies and procedures to develop a cadre of technically com17 petent officers with the capability to develop space doc18 trine, concepts of space operations, and space systems for

19 the Department of the Air Force.

20 ‘‘(2) The Secretary of the Air Force shall assign to

21 the commander of Air Force Space Command primary re22 sponsibility for—

23 ‘‘(A) establishing and implementing education

24 and training programs for space programs, projects,
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1 and activities of the Department of the Air Force;

2 and

3 ‘‘(B) management of the space career field

4 under paragraph (1).

5 ‘‘(f) JOINT PROGRAM MANAGEMENT.—The Under

6 Secretary of the Air Force shall take appropriate actions

7 to ensure that, to maximum extent practicable, Army,

8 Navy, Marine Corps, and Air Force personnel are as9 signed, on a joint duty assignment basis, as follows:

10 ‘‘(1) To carry out the space development and

11 acquisition programs of the Department of Defense;

12 and

13 ‘‘(2) To the Office of the National Security

14 Space Architect.’’.

15 (b) CLERICAL AMENDMENT.—The tables of chapters

16 at the beginning of such subtitle and at the beginning of

17 part IV of such subtitle are amended by inserting after

18 the item relating to chapter 134 the following new item:

‘‘135. Space Programs ...................................................................... 2271’’.

19 SEC. 913. MAJOR FORCE PROGRAM CATEGORY FOR SPACE

20 PROGRAMS.

21 (a) REQUIREMENT.—The Secretary of Defense shall

22 create a major force program category for space programs

23 for purposes of the future-years defense program under

24 section 221 of title 10, United States Code.
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1 (b) COMMENCEMENT.—The category created under

2 subsection (a) shall be included in each future-years de3 fense program submitted to Congress under section 221

4 of title 10, United States Code, in fiscal years after fiscal

5 year 2002.

6 SEC. 914. ASSESSMENT OF IMPLEMENTATION OF REC7 OMMENDATIONS OF COMMISSION TO ASSESS

8 UNITED STATES NATIONAL SECURITY SPACE

9 MANAGEMENT AND ORGANIZATION.

10 (a) COMPTROLLER GENERAL ASSESSMENT.—The

11 Comptroller General shall carry out an assessment of the

12 progress made by the Department of Defense in imple13 menting the recommendations of the Commission To As14 sess United States National Security Space Management

15 and Organization as contained in the report of the Com16 mission submitted under section 1623 of the National De17 fense Authorization Act for Fiscal Year 2000 (Public Law

18 106–65; 113 Stat. 815).

19 (b) REPORTS.—Not later than February 15 of each

20 of 2002 and 2003, the Comptroller General shall submit

21 to the Committees on Armed Services of the Senate and

22 House of Representatives a report on the assessment car23 ried out under subsection (a). Each report shall set forth

24 the results of the assessment as of the date of such report.
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1 SEC. 915. GRADE OF COMMANDER OF AIR FORCE SPACE

2 COMMAND.

3 (a) IN GENERAL.—Chapter 845 of title 10, United

4 States Code, is amended by adding at the end the fol5 lowing new section:

6 ‘‘§ 8584. Commander of Air Force Space Command

7 ‘‘(a) GRADE.—The officer serving as commander of

8 the Air Force Space Command shall, while so serving,

9 have the grade of general.

10 ‘‘(b) LIMITATION ON CONCURRENT COMMAND AS11 SIGNMENTS.—The officer serving as commander of the

12 Air Force Space Command may not, while so serving,

13 serve as commander-in-chief of the United States Space

14 Command (or any successor combatant command with re15 sponsibility for space) or as commander of the United

16 States element of the North American Air Defense Com17 mand.’’.

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

19 at the beginning of such chapter is amended by adding

20 at the end the following new item:

‘‘8584. Commander of Air Force Space Command.’’.

21 SEC. 916. SENSE OF CONGRESS REGARDING GRADE OF OF22 FICER ASSIGNED AS COMMANDER OF UNITED

23 STATES SPACE COMMAND.

24 It is the sense of Congress that the Secretary of De25 fense should assign the best qualified officer of the Army,
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1 Marine Corps, or Air Force with the grade of general, or

2 of the Navy with the grade of admiral, to the position of

3 Commander of the United States Space Command.

4 TITLE X—GENERAL PROVISIONS

5 Subtitle A—Financial Matters

6 SEC. 1001. TRANSFER AUTHORITY.

7 (a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—

8 (1) Upon determination by the Secretary of Defense that

9 such action is necessary in the national interest, the Sec10 retary may transfer amounts of authorizations made avail11 able to the Department of Defense in this division for fis12 cal year 2002 between any such authorizations for that

13 fiscal year (or any subdivisions thereof). Amounts of au14 thorizations so transferred shall be merged with and be

15 available for the same purposes as the authorization to

16 which transferred.

17 (2) The total amount of authorizations that the Sec18 retary may transfer under the authority of this section

19 may not exceed $2,000,000,000.

20 (b) LIMITATIONS.—The authority provided by this

21 section to transfer authorizations—

22 (1) may only be used to provide authority for

23 items that have a higher priority than the items

24 from which authority is transferred; and
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1 (2) may not be used to provide authority for an

2 item that has been denied authorization by Con3 gress.

4 (c) EFFECT ON AUTHORIZATION AMOUNTS.—A

5 transfer made from one account to another under the au6 thority of this section shall be deemed to increase the

7 amount authorized for the account to which the amount

8 is transferred by an amount equal to the amount trans9 ferred.

10 (d) NOTICE TO CONGRESS.—The Secretary shall

11 promptly notify Congress of each transfer made under

12 subsection (a).

13 SEC. 1002. REDUCTION IN AUTHORIZATIONS OF APPRO14 PRIATIONS FOR DEPARTMENT OF DEFENSE

15 FOR MANAGEMENT EFFICIENCIES.

16 Notwithstanding any other provision of this Act, the

17 total amount authorized to be appropriated for the De18 partment of Defense by divisions A and B of this Act is

19 hereby reduced by $1,630,000,000, to reflect savings to

20 be achieved through implementation of the provisions of

21 title VIII and other management efficiencies and business

22 process reforms.
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1 SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPRO2 PRIATIONS FOR FISCAL YEAR 2001.

3 Amounts authorized to be appropriated to the De4 partment of Defense for fiscal year 2001 in the Floyd D.

5 Spence National Defense Authorization Act for Fiscal

6 Year 2001 (as enacted into law by Public Law 106–398)

7 are hereby adjusted, with respect to any such authorized

8 amount, by the amount by which appropriations pursuant

9 to such authorization were increased (by a supplemental

10 appropriation) or decreased (by a rescission), or both, in

11 title I of the Supplemental Appropriations Act, 2001

12 (Public Law 107–20).

13 SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COM14 MON-FUNDED BUDGETS IN FISCAL YEAR 2002.

15 (a) FISCAL YEAR 2002 LIMITATION.—The total

16 amount contributed by the Secretary of Defense in fiscal

17 year 2002 for the common-funded budgets of NATO may

18 be any amount up to, but not in excess of, the amount

19 specified in subsection (b) (rather than the maximum

20 amount that would otherwise be applicable to those con21 tributions under the fiscal year 1998 baseline limitation).

22 (b) TOTAL AMOUNT.—The amount of the limitation

23 applicable under subsection (a) is the sum of the following:

24 (1) The amounts of unexpended balances, as of

25 the end of fiscal year 2001, of funds appropriated
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1 for fiscal years before fiscal year 2002 for payments

2 for those budgets.

3 (2) The amount specified in subsection (c)(1).

4 (3) The amount specified in subsection (c)(2).

5 (4) The total amount of the contributions au6 thorized to be made under section 2501.

7 (c) AUTHORIZED AMOUNTS.—Amounts authorized to

8 be appropriated by titles II and III of this Act are avail9 able for contributions for the common-funded budgets of

10 NATO as follows:

11 (1) Of the amount provided in section 201(1),

12 $708,000 for the Civil Budget.

13 (2) Of the amount provided in section 301(1),

14 $175,849,000 for the Military Budget.

15 (d) DEFINITIONS.—For purposes of this section:

16 (1) COMMON-FUNDED BUDGETS OF NATO.—

17 The term ‘‘common-funded budgets of NATO’’

18 means the Military Budget, the Security Investment

19 Program, and the Civil Budget of the North Atlantic

20 Treaty Organization (and any successor or addi21 tional account or program of NATO).

22 (2) FISCAL YEAR 1998 BASELINE LIMITATION.—

23 The term ‘‘fiscal year 1998 baseline limitation’’

24 means the maximum annual amount of Department

25 of Defense contributions for common-funded budgets
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1 of NATO that is set forth as the annual limitation

2 in section 3(2)(C)(ii) of the resolution of the Senate

3 giving the advice and consent of the Senate to the

4 ratification of the Protocols to the North Atlantic

5 Treaty of 1949 on the Accession of Poland, Hun6 gary, and the Czech Republic (as defined in section

7 4(7) of that resolution), approved by the Senate on

8 April 30, 1998.

9 SEC. 1005. CLARIFICATION OF APPLICABILITY OF INTER10 EST PENALTIES FOR LATE PAYMENT OF IN11 TERIM PAYMENTS DUE UNDER CONTRACTS

12 FOR SERVICES.

13 Section 1010(d) of the Floyd D. Spence National De14 fense Authorization Act for Fiscal Year 2001 (as enacted

15 into law by Public Law 106–398; 114 Stat. 1654A–251)

16 is amended by inserting before the period at the end of

17 the first sentence the following: ‘‘, and shall apply with

18 respect to interim payments that are due on or after such

19 date under contracts entered into before, on, or after that

20 date’’.

21 SEC. 1006. RELIABILITY OF DEPARTMENT OF DEFENSE FI22 NANCIAL STATEMENTS.

23 (a) ANNUAL REPORT ON RELIABILITY.—(1) Not

24 later than July 1 of each year, the Secretary of Defense

25 shall submit to the recipients referred to in paragraph (3)
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1 a report on the reliability of the Department of Defense

2 financial statements, including the financial statements of

3 each component of the department that is required to pre4 pare a financial statement under section 3515(c) of title

5 31, United States Code.

6 (2) The annual report shall contain the following:

7 (A) A conclusion regarding whether the policies

8 and procedures of the Department of Defense, and

9 the systems used within the Department of Defense,

10 for the preparation of financial statements allow the

11 achievement of reliability in the financial statements.

12 (B) For each of the financial statements pre13 pared for the Department of Defense for the fiscal

14 year in which the report is submitted, a conclusion

15 regarding the expected reliability of the financial

16 statement (evaluated on the basis of Office of Man17 agement and Budget guidance on financial state18 ments), together with a discussion of the major defi19 ciencies to be expected in the statement.

20 (C) A summary of the specific sections of the

21 annual Financial Management Improvement Plan of

22 the Department of Defense, current as of the date

23 of the report, that—
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1 (i) detail the priorities, milestones, and

2 measures of success that apply to the prepara3 tion of the financial statements;

4 (ii) detail the planned improvements in the

5 process for the preparation of financial state6 ments that are to be implemented within 12

7 months after the date on which the plan is

8 issued; and

9 (iii) provide an estimate of when each fi10 nancial statement will convey reliable informa11 tion.

12 (3) The annual report shall be submitted to the fol13 lowing:

14 (A) The Committee on Armed Services and the

15 Committee on Governmental Affairs of the Senate.

16 (B) The Committee on Armed Services and the

17 Committee on Government Reform of the House of

18 Representatives.

19 (C) The Director of the Office of Management

20 and Budget.

21 (D) The Secretary of the Treasury.

22 (E) The Comptroller General of the United

23 States.
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1 (4) The Secretary of Defense shall make a copy of

2 the annual report available to the Inspector General of the

3 Department of Defense.

4 (b) MINIMIZATION OF USE OF RESOURCES FOR UN5 RELIABLE FINANCIAL STATEMENTS.—(1) With respect to

6 each financial statement for a fiscal year that the Sec7 retary of Defense assesses as being expected to be unreli8 able in the annual report under subsection (a), the Under

9 Secretary of Defense (Comptroller) or the Assistant Sec10 retary (Financial Management and Comptroller) of the

11 military department concerned shall take appropriate ac12 tions to minimize the resources, including contractor sup13 port, that are used to develop, compile, and report the fi14 nancial statement.

15 (2)(A) With the annual budget justifications for the

16 Department of Defense submitted to Congress each year,

17 the Under Secretary of Defense (Comptroller) shall sub18 mit, with respect to the fiscal year in which submitted,

19 the preceding fiscal year, and the following fiscal year, the

20 following information:

21 (i) An estimate of the resources that the De22 partment of Defense is saving or expects to save as

23 a result of actions taken and to be taken under

24 paragraph (1) with respect to the preparation of fi25 nancial statements.
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1 (ii) A discussion of how the resources saved as

2 estimated under clause (i) have been redirected or

3 are to be redirected from the preparation of financial

4 statements to the improvement of systems under5 lying financial management within the Department

6 of Defense and to the improvement of financial man7 agement policies, procedures, and internal controls

8 within the Department of Defense.

9 (B) The Assistant Secretaries (Financial Manage10 ment and Comptroller) of the Army, Navy, and Air Force

11 shall provide the Under Secretary of Defense (Comp12 troller) with the information necessary for making the es13 timate required by subparagraph (A)(i).

14 (c) INFORMATION TO AUDITORS.—Not later than Oc15 tober 31 of each year, the Under Secretary of Defense

16 (Comptroller) and the Assistant Secretaries (Financial

17 Management and Comptroller) of the Army, Navy, and

18 Air Force shall each provide to the auditors of the finan19 cial statement of that official’s department for the fiscal

20 year ending during the preceding month the official’s pre21 liminary management representation, in writing, regard22 ing the expected reliability of the financial statement. The

23 representation shall be consistent with guidance issued by

24 the Director of the Office of Management and Budget and
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1 shall include the basis for the reliability assessment stated

2 in the representation.

3 (d) LIMITATION ON INSPECTOR GENERAL AUDITS.—

4 (1) On each financial statement that an official asserts

5 is unreliable under subsection (b) or (c), the Inspector

6 General of the Department of Defense shall only perform

7 the audit procedures required by generally accepted gov8 ernment auditing standards consistent with any represen9 tation made by management.

10 (2)(A) With the annual budget justifications for the

11 Department of Defense submitted to Congress each year,

12 the Under Secretary of Defense (Comptroller) shall sub13 mit, with respect to the fiscal year in which submitted,

14 the preceding fiscal year, and the following fiscal year, in15 formation which the Inspector General shall report to the

16 Under Secretary, as follows:

17 (i) An estimate of the resources that the In18 spector General is saving or expects to save as a re19 sult of actions taken and to be taken under para20 graph (1) with respect to the auditing of financial

21 statements.

22 (ii) A discussion of how the resources saved as

23 estimated under clause (i) have been redirected or

24 are to be redirected from the auditing of financial

25 statements to the oversight and improvement of sys-
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1 tems underlying financial management within the

2 Department of Defense and to the oversight and im3 provement of financial management policies, proce4 dures, and internal controls within the Department

5 of Defense.

6 (e) PERIOD OF APPLICABILITY.—(1) Except as pro7 vided in paragraph (2), the requirements of this section

8 shall apply with respect to financial statements for fiscal

9 years after fiscal year 2000 and before fiscal year 2006

10 and to the auditing of those financial statements.

11 (2) If the Secretary of Defense certifies to the Inspec12 tor General of the Department of Defense that the finan13 cial statement for the Department of Defense, or a finan14 cial statement for a component of the Department of De15 fense, for a fiscal year is reliable, this section shall not

16 apply with respect to that financial statement or to any

17 successive financial statement for the department or that

18 component, as the case may be, for any later fiscal year.

19 SEC. 1007. FINANCIAL MANAGEMENT MODERNIZATION EX20 ECUTIVE COMMITTEE AND FINANCIAL FEED21 ER SYSTEMS COMPLIANCE PROCESS.

22 (a) ESTABLISHMENT OF FINANCIAL MANAGEMENT

23 MODERNIZATION EXECUTIVE COMMITTEE.—(1) The Sec24 retary of Defense shall establish a Financial Management

25 Modernization Executive Committee.
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1 (2) The Committee shall be composed of the Under

2 Secretary of Defense (Comptroller), the Under Secretary

3 of Defense (Acquisition, Technology, and Logistics), the

4 Under Secretary of Defense (Personnel and Readiness),

5 the chief information officer of the Department of De6 fense, and other key managers of the Department of De7 fense (including key managers in Defense Agencies and

8 military departments) who are designated by the Sec9 retary.

10 (3) The Under Secretary of Defense (Comptroller)

11 shall be the Chairman of the Committee.

12 (4) The Committee shall be accountable to the Senior

13 Executive Council composed of the Secretary of Defense,

14 the Deputy Secretary of Defense, the Under Secretary of

15 Defense for Acquisition, Technology, and Logistics, the

16 Secretary of the Army, the Secretary of the Navy, and

17 the Secretary of the Air Force.

18 (b) DUTIES.—The Financial Management Mod19 ernization Executive Committee shall have the following

20 duties:

21 (1) To establish a financial and feeder systems

22 compliance process that ensures that each critical

23 accounting, financial management, and feeder sys24 tem of the Department of Defense is compliant with
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1 applicable Federal financial management and report2 ing requirements.

3 (2) To develop a management plan for the im4 plementation of the financial and feeder systems

5 compliance process.

6 (3) To supervise and monitor the actions that

7 are necessary to implement the management plan, as

8 approved by the Secretary of Defense.

9 (4) To ensure that a Department of Defense fi10 nancial management enterprise architecture is devel11 opment and maintained in accordance with—

12 (A) the overall business process trans13 formation strategy of the Department; and

14 (B) the Command, Control, Communica15 tions, Computers, Intelligence, Surveillance, and

16 Reconnaissance Architecture Framework of the

17 Department.

18 (5) To ensure that investments in existing or

19 proposed financial management systems for the De20 partment comply with the overall business practice

21 transformation strategy of the Department and the

22 financial management enterprise architecture devel23 oped under paragraph (4).

24 (6) To provide an annual accounting of all fi25 nancial and feeder system investment technology
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1 projects to ensure that such projects are being im2 plemented at acceptable cost and within a reasonable

3 schedule, and are contributing to tangible, observ4 able improvements in mission performance.

5 (c) MANAGEMENT PLAN FOR IMPLEMENTATION OF

6 FINANCIAL FEEDER SYSTEMS COMPLIANCE PROCESS.—

7 The management plan developed under subsection (b)(2)

8 shall include among its principal elements at least the fol9 lowing elements:

10 (1) A requirement to establish and maintain a

11 complete inventory of all budgetary, accounting, fi12 nance, and feeder systems that support the trans13 formed business processes of the Department and

14 produce financial statements.

15 (2) A phased process for improving systems

16 that provides for mapping financial data flow from

17 sources to cognizant Department business functions

18 (as part of the overall business process trans19 formation strategy of the Department) and financial

20 statements before other actions are initiated.

21 (3) Periodic submittal to the Secretary of De22 fense, the Deputy Secretary of Defense, the Senior

23 Executive Council, or any combination thereof, of re24 ports on the progress being made in achieving finan25 cial management transformation goals and milestone
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1 included in the annual financial management im2 provement plan in 2002 in accordance with sub3 section (e).

4 (4) Documentation of the completion of each

5 phase—Awareness, Evaluation, Renovation, Valida6 tion, and Compliance—of improvements made to

7 each accounting, finance, and feeder system.

8 (5) Independent audit by the Inspector General

9 of the Department, the audit agencies of the military

10 department, private sector firms contracted to con11 duct validation audits, or any combination thereof,

12 at the validation phase for each accounting, finance,

13 and feeder system.

14 (d) ANNUAL FINANCIAL MANAGEMENT IMPROVE15 MENT PLAN.—(1) Subsection (a) of section 2222 of title

16 10, United States Code, is amended to read as follows:

17 ‘‘(a) ANNUAL PLAN REQUIRED.—The Secretary of

18 Defense shall submit to Congress an annual strategic plan

19 for the improvement of financial management within the

20 Department of Defense. The plan shall be submitted not

21 later than September 30 each year.’’.

22 (2)(A) The section heading of such section is amend23 ed to read as follows:
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1 ‘‘§ 2222. Annual financial management improvement

2 plan’’.

3 (B) The table of sections at the beginning of chapter

4 131 of such title is amended by striking the item relating

5 to section 2222 and inserting the following new item:

‘‘2222. Annual financial management improvement plan.’’.

6 (e) ADDITIONAL ELEMENTS FOR FINANCIAL MAN7 AGEMENT IMPROVEMENT PLAN IN 2002.—In the annual

8 financial management improvement plan submitted under

9 section 2222 of title 10, United States Code (as amended

10 by subsection (d)), in 2002, the Secretary shall include

11 the following:

12 (1) Measurable annual performance goals for

13 improvement of the financial management of the De14 partment.

15 (2) Performance milestones for initiatives under

16 the plan for transforming the financial management

17 operations of the Department and for implementing

18 a financial management architecture for the Depart19 ment.

20 (3) An assessment of the anticipated annual

21 cost of any plans for transforming the financial

22 management operations of the Department and for

23 implementing a financial management architecture

24 for the Department.

25 (4) A discussion of the following:
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1 (A) The roles and responsibilities of appro2 priate Department officials to ensure the super3 vision and monitoring of the compliance of each

4 accounting, finance, and feeder system of the

5 Department with the business practice trans6 formation strategy of the Department, the fi7 nancial management architecture of the Depart8 ment, and applicable Federal financial manage9 ment systems and reporting requirements.

10 (B) A summary of the actions taken by the

11 Financial Management Modernization Executive

12 Committee to ensure that such systems comply

13 with the business practice transformation strat14 egy of the Department, the financial manage15 ment architecture of the Department, and ap16 plicable Federal financial management systems

17 and reporting requirements.

18 (f) ADDITIONAL ELEMENTS FOR FINANCIAL MAN19 AGEMENT IMPROVEMENT PLAN AFTER 2002.—In each

20 annual financial management improvement plan sub21 mitted under section 2222 of title 10, United States Code

22 (as amended by subsection (d)), after 2002, the Secretary

23 shall include the following:

24 (1) A description of the actions to be taken in

25 the fiscal year beginning in the year in which the
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1 plan is submitted to implement the goals and mile2 stones included in the financial management im3 provement plan in 2002 under paragraphs (1) and

4 (2) of subsection (e).

5 (2) An estimate of the amount expended in the

6 fiscal year ending in the year in which the plan is

7 submitted to implement the financial management

8 improvement plan in such preceding calendar year,

9 set forth by system.

10 (3) If an element of the financial management

11 improvement plan submitted in the fiscal year end12 ing in the year in which the plan is submitted was

13 not implemented, a justification for the lack of im14 plementation of such element.

15 SEC. 1008. COMBATING TERRORISM READINESS INITIA16 TIVES FUND FOR COMBATANT COMMANDS.

17 (a) FUNDING FOR INITIATIVES.—Chapter 6 of title

18 10, United States Code, is amended by inserting after sec19 tion 166a the following new section:

20 ‘‘§ 166b. Combatant commands: funding for com21 bating terrorism readiness initiatives

22 ‘‘(a) COMBATING TERRORISM READINESS INITIA23 TIVES FUND.—From funds made available in any fiscal

24 year for the budget account in the Department of Defense

25 known as the ‘Combating Terrorism Readiness Initiatives
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1 Fund’, the Chairman of the Joint Chiefs of Staff may pro2 vide funds to the commander of a combatant command,

3 upon the request of the commander, or, with respect to

4 a geographic area or areas not within the area of responsi5 bility of a commander of a combatant command, to an

6 officer designated by the Chairman of the Joint Chiefs of

7 Staff for such purpose. The Chairman may provide such

8 funds for initiating any activity named in subsection (b)

9 and for maintaining and sustaining the activity for the

10 fiscal year in which initiated and one additional fiscal year.

11 ‘‘(b) AUTHORIZED ACTIVITIES.—Activities for which

12 funds may be provided under subsection (a) are the fol13 lowing:

14 ‘‘(1) Procurement and maintenance of physical

15 security equipment.

16 ‘‘(2) Improvement of physical security sites.

17 ‘‘(3) Under extraordinary circumstances—

18 ‘‘(A) physical security management plan19 ning;

20 ‘‘(B) procurement and support of security

21 forces and security technicians;

22 ‘‘(C) security reviews and investigations

23 and vulnerability assessments; and

24 ‘‘(D) any other activity relating to physical

25 security.
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1 ‘‘(c) PRIORITY.—The Chairman of the Joint Chiefs

2 of Staff, in considering requests for funds in the Com3 bating Terrorism Readiness Initiatives Fund, should give

4 priority consideration to emergency or emergent unfore5 seen high-priority requirements for combating terrorism.

6 ‘‘(d) RELATIONSHIP TO OTHER FUNDING.—Any

7 amount provided by the Chairman of the Joint Chiefs of

8 Staff for a fiscal year out of the Combating Terrorism

9 Readiness Initiatives Fund for an activity referred to in

10 subsection (b) shall be in addition to amounts otherwise

11 available for that activity for that fiscal year.

12 ‘‘(e) LIMITATION.—Funds may not be provided under

13 this section for any activity that has been denied author14 ization by Congress.’’.

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

16 at the beginning of such chapter is amended by inserting

17 after the item relating to section 166a the following new

18 item:

‘‘166b. Combatant commands: funding for combating terrorism readiness initiatives.’’.

19 SEC. 1009. AUTHORIZATION OF ADDITIONAL FUNDS.

20 (a) Authorization.—$1,300,000,000 is hereby au21 thorized, in addition to the funds authorized elsewhere in

22 division A of this Act, for whichever of the following pur23 poses the President determines to be in the national secu24 rity interests of the United States—
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1 (1) research, development, test and evaluation

2 for ballistic missile defense; and

3 (2) activities for combating terrorism.

4 SEC. 1010. AUTHORIZATION OF 2001 EMERGENCY SUPPLE5 MENTAL APPROPRIATIONS ACT FOR RECOV6 ERY FROM AND RESPONSE TO TERRORIST

7 ATTACKS ON THE UNITED STATES.

8 (a) AUTHORIZATION.—Amounts authorized to be ap9 propriated to the Department of Defense for fiscal year

10 2001 in the Floyd D. Spence National Defense Authoriza11 tion Act for Fiscal Year 2001 (as enacted into law by Pub12 lic Law 106–398) are hereby adjusted by the amounts of

13 appropriations made available to the Department of De14 fense pursuant to the 2001 Emergency Supplemental Ap15 propriations Act for Recovery from and Response to Ter16 rorist Attacks on the United States.

17 (b) QUARTERLY REPORT.—(1) Promptly after the

18 end of each quarter of a fiscal year, the Secretary of De19 fense shall submit to the Committees on Armed Services

20 of the Senate and the House of Representatives a report

21 on the use of funds made available to the Department of

22 Defense pursuant to the 2001 Emergency Supplemental

23 Appropriations Act for Recovery from and Response to

24 Terrorist Attacks on the United States.
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1 (2) The first report under paragraph (1) shall be sub2 mitted not later than January 2, 2002.

3 (c) PROPOSED ALLOCATION AND PLAN.—The Sec4 retary of Defense shall submit to the Committees on

5 Armed Services of the Senate and the House of Represent6 atives, not later than 15 days after the date on which the

7 Director of the Office of Management and Budget submits

8 to the Committees on Appropriations of the Senate and

9 House of Representatives the proposed allocation and plan

10 required by the 2001 Emergency Supplemental Appropria11 tions Act for Recovery from and Response to Terrorist At12 tacks on the United States, a proposed allocation and plan

13 for the use of the funds made available to the Department

14 of Defense pursuant to that Act.

15 Subtitle B—Strategic Forces

16 SEC. 1011. REPEAL OF LIMITATION ON RETIREMENT OR

17 DISMANTLEMENT OF STRATEGIC NUCLEAR

18 DELIVERY SYSTEMS.

19 Section 1302 of the National Defense Authorization

20 Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat.

21 1948) is repealed.

22 SEC. 1012. BOMBER FORCE STRUCTURE.

23 (a) LIMITATION.—None of the funds available to the

24 Department of Defense for fiscal year 2002 may be obli25 gated or expended for retiring or dismantling any of the
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1 93 B–1B Lancer bombers in service as of June 1, 2001,

2 or for transferring or reassigning any of those aircraft

3 from the unit or facility to which assigned as of that date,

4 until 30 days after the latest of the following:

5 (1) The date on which the President transmits

6 to Congress the national security strategy report re7 quired in 2001 pursuant to section 108(a)(1) of the

8 National Security Act of 1947 (50 U.S.C.

9 404a(a)(1)).

10 (2) The date on which the Secretary of Defense

11 submits to the Committee on Armed Services of the

12 Senate and the Committee on Armed Services of the

13 House of Representatives the Quadrennial Defense

14 Review (QDR) under section 118 of title 10, United

15 States Code, that is required to be submitted under

16 that section not later than September 30, 2001.

17 (3) The date on which the Secretary of Defense

18 submits to the committees referred to in paragraph

19 (2) a report that sets forth—

20 (A) the changes in national security con21 siderations from those applicable to the air

22 force bomber studies conducted during 1992,

23 1995, and 1999 that warrant changes in the

24 current configuration of the bomber fleet;
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1 (B) the role of manned bomber aircraft ap2 propriate to meet the requirements of the na3 tional security strategy referred to in paragraph

4 (1);

5 (C) the amount and type of bomber force

6 structure in the United States Air Force appro7 priate to meet the requirements of the national

8 security strategy referred to in paragraph (1);

9 (D) the results of a comparative analysis

10 of the cost of basing, maintaining, operating,

11 and upgrading the B–1B Lancer bomber fleet

12 in the active force of the Air Force with the

13 cost of basing, maintaining, operating, and up14 grading the B–1B Lancer bomber fleet in a mix

15 of active and reserve component forces of the

16 Air Force; and

17 (E) the plans of the Department of De18 fense for assigning new missions to the Na19 tional Guard units that currently fly B–1 air20 craft and for the transition of those units and

21 their facilities from the current B–1 mission to

22 such new missions.

23 (4) The date on which the Secretary of Defense

24 submits to Congress the report on the results of the

25 Revised Nuclear Posture Review conducted under
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1 section 1042 of the Floyd D. Spence National De2 fense Authorization Act for Fiscal Year 2001 (as en3 acted into law by Public Law 106–398; 114 Stat.

4 1654A–262), as amended by section 1013 of this

5 Act.

6 (b) GAO STUDY AND REPORT.—The Comptroller

7 General of the United States shall conduct a study on the

8 matters specified in subsection (a)(3). The Comptroller

9 General shall submit to Congress a report containing the

10 results of the study not later than January 31, 2002.

11 (c) AMOUNT AND TYPE OF BOMBER FORCE STRUC12 TURE DEFINED.—In this section, the term ‘‘amount and

13 type of bomber force structure’’ means the required num14 bers of B–2 aircraft, B–52 aircraft, and B–1 aircraft con15 sistent with the requirements of the national security

16 strategy referred to in subsection (a)(1).

17 SEC. 1013. ADDITIONAL ELEMENT FOR REVISED NUCLEAR

18 POSTURE REVIEW.

19 Section 1041(b) of the Floyd D. Spence National De20 fense Authorization Act for Fiscal Year 2001 (as enacted

21 by Public Law 106–398; 114 Stat. 1654A–262) is amend22 ed by adding at the end the following new paragraph:

23 ‘‘(7) The possibility of deactivating or

24 dealerting nuclear warheads or delivery systems im25 mediately, or immediately after a decision to retire
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1 any specific warhead, class of warheads, or delivery

2 system or systems.’’.

3 Subtitle C—Reporting

4 Requirements

5 SEC. 1021. INFORMATION AND RECOMMENDATIONS ON

6 CONGRESSIONAL REPORTING REQUIRE7 MENTS APPLICABLE TO THE DEPARTMENT

8 OF DEFENSE.

9 (a) COMPILATION OF REPORTING REQUIREMENTS.—

10 The Secretary of Defense shall compile a list of all provi11 sions of law in effect on the date of the enactment of this

12 Act that require or request the President, with respect to

13 the national defense functions of the Federal Government,

14 or any officer or employee of the Department of Defense,

15 to submit a report, notification, or study to Congress or

16 any committee of Congress. The preceding sentence does

17 not apply to a provision of law that requires or requests

18 only one report, notification, or study.

19 (b) SUBMITTAL OF COMPILATION.—(1) The Sec20 retary shall submit the list compiled under subsection (a)

21 to Congress not later than 60 days after the date of the

22 enactment of this Act.

23 (2) In submitting the list, the Secretary shall specify

24 for each provision of law compiled in the list—
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1 (A) the date of the enactment of such provision

2 of law and a current citation in law for such provi3 sion of law; and

4 (B) the Secretary’s assessment of the con5 tinuing utility of any report, notification, or study

6 arising under such provision of law, both for the ex7 ecutive branch and for Congress.

8 (3) The Secretary may also include with the list any

9 recommendations that the Secretary considers appropriate

10 for the consolidation of reports, notifications, and studies

11 under the provisions of law described in subsection (a),

12 together with a proposal for legislation to implement such

13 recommendations.

14 SEC. 1022. REPORT ON COMBATING TERRORISM.

15 (a) REQUIREMENT FOR REPORT.—The Secretary of

16 Defense shall submit to Congress a report on the Depart17 ment of Defense policies, plans, and procedures for com18 bating terrorism.

19 (b) CONTENT.—(1) The Secretary shall identify and

20 explain in the report the Department of Defense structure,

21 strategy, roles, relationships, and responsibilities for com22 bating terrorism.

23 (2) The report shall also include a discussion of the

24 following matters:
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1 (A) The policies, plans, and procedures relating

2 to how the Assistant Secretary of Defense for Spe3 cial Operations and Low Intensity Conflict and the

4 Joint Task Force–Civil Support of the Joint Forces

5 Command are to perform, and coordinate the per6 formance of, their functions for combating terrorism

7 with—

8 (i) the various teams in the Department of

9 Defense that have responsibilities to respond to

10 acts or threats of terrorism, including—

11 (I) the weapons of mass destruction

12 civil support teams when operating as the

13 National Guard under the command of the

14 Governor of a State, the Governor of Puer15 to Rico, or the Commanding General of the

16 District of Columbia National Guard, as

17 the case may be; and

18 (II) the weapons of mass destruction

19 civil support teams when operating as the

20 Army National Guard of the United States

21 or the Air National Guard of the United

22 States under the command of the Presi23 dent;

24 (ii) the Army’s Director of Military Sup25 port;
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1 (iii) the various teams in other depart2 ments and agencies of the Federal Government

3 that have responsibilities to respond to acts or

4 threats of terrorism;

5 (iv) the organizations outside the Federal

6 Government, including any private sector enti7 ties, that are to function as first responders to

8 acts or threats of terrorism; and

9 (v) the units and organizations of the re10 serve components of the Armed Forces that

11 have missions relating to combating terrorism.

12 (B) Any preparedness plans to combat ter13 rorism that are developed for installations of the De14 partment of Defense by the commanders of the in15 stallations and the integration of those plans with

16 the plans of the teams and other organizations de17 scribed in subparagraph (A).

18 (C) The policies, plans, and procedures for

19 using and coordinating the Joint Staff’s integrated

20 vulnerability assessment teams inside the United

21 States and outside the United States.

22 (D) The missions of Fort Leonard Wood and

23 other installations for training units, weapons of

24 mass destruction civil support teams and other

25 teams, and individuals in combating terrorism.
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1 (3) The report shall also include the Secretary’s views

2 on the appropriate number and missions of the Depart3 ment of Defense teams referred to in paragraph (2)(A)(i).

4 (c) TIME FOR SUBMITTAL.—The Secretary shall sub5 mit the report under this section not later than 180 days

6 after the date of the enactment of this Act.

7 SEC. 1023. REVISED REQUIREMENT FOR CHAIRMAN OF THE

8 JOINT CHIEFS OF STAFF TO ADVISE SEC9 RETARY OF DEFENSE ON THE ASSIGNMENT

10 OF ROLES AND MISSIONS TO THE ARMED

11 FORCES.

12 (a) ASSESSMENT DURING DEFENSE QUADRENNIAL

13 REVIEW.—Subsection 118(e) of title 10, United States

14 Code, is amended—

15 (1) by inserting ‘‘(1)’’ after ‘‘(e) CJCS RE16 VIEW.—’’; and

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

18 paragraph:

19 ‘‘(2) The Chairman shall include in the assessment

20 submitted under paragraph (1), the Chairman’s assess21 ment of the assignment of functions (or roles and mis22 sions) to the armed forces together with any recommenda23 tions for changes in assignment that the Chairman con24 siders necessary to achieve the maximum efficiency of the
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1 armed forces. In making the assessment, the Chairman

2 should consider (among other matters) the following:

3 ‘‘(A) Unnecessary duplication of effort among

4 the armed forces.

5 ‘‘(B) Changes in technology that can be applied

6 effectively to warfare.’’.

7 (b) REPEAL OF REQUIREMENT FOR TRIENNIAL RE8 PORT ON ASSIGNMENT OF ROLES AND MISSIONS.—Sec9 tion 153 of such title is amended by striking subsection

10 (b).

11 (c) CONFORMING AMENDMENT.—Subsection (a) of

12 such section 153 is amended by striking ‘‘(a) PLANNING;

13 ADVICE; POLICY FORMULATION.—’’.

14 SEC. 1024. REVISION OF DEADLINE FOR ANNUAL REPORT

15 ON COMMERCIAL AND INDUSTRIAL ACTIVI16 TIES.

17 Section 2461(g) of title 10, United States Code, is

18 amended by striking ‘‘February 1’’ and inserting ‘‘June

19 30’’.

20 SEC. 1025. PRODUCTION AND ACQUISITION OF VACCINES

21 FOR DEFENSE AGAINST BIOLOGICAL WAR22 FARE AGENTS.

23 (a) GOVERNMENT FACILITY.—(1) Subject to the

24 availability of funds appropriated and authorized to be ap-
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1 propriated for such purposes, the Secretary of Defense

2 may—

3 (A) design, construct, and operate on an instal4 lation of the Department of Defense a facility for

5 the production of vaccines described in subsection

6 (b)(1);

7 (B) qualify and validate the facility for the pro8 duction of vaccines in accordance with the require9 ments of the Food and Drug Administration; and

10 (C) contract with a private sector source for the

11 production of vaccines in that facility.

12 (2) The Secretary shall use competitive procedures

13 under chapter 137 of title 10, United States Code, to enter

14 into contracts to carry out subparagraphs (A) and (C) of

15 paragraph (1).

16 (b) PLAN.—(1) The Secretary of Defense shall de17 velop a long-range plan to provide for the production and

18 acquisition of vaccines to meet the requirements of the De19 partment of Defense to prevent or mitigate the physio20 logical effects of exposure to biological warfare agents.

21 (2) The plan shall include the following:

22 (A) An evaluation of the need for one or more

23 vaccine production facilities that are specifically

24 dedicated to meeting the requirements of the De25 partment of Defense and other national interests.
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1 (B) An evaluation of the alternative options for

2 the means of production of the vaccines, including—

3 (i) use of public facilities, private facilities,

4 or a combination of public and private facilities;

5 and

6 (ii) management and operation of the fa7 cilities by the Federal Government, one or more

8 private persons, or a combination of the Fed9 eral Government and one or more private per10 sons.

11 (C) The means for producing the vaccines that

12 the Secretary determines most appropriate.

13 (3) The Secretary shall ensure that the plan is con14 sistent with the requirement for safe and effective vaccines

15 approved by the Food and Drug Administration.

16 (4) In preparing the plan, the Secretary shall—

17 (A) consider and, as the Secretary determines

18 appropriate, include the information compiled and

19 the analyses developed in meeting the reporting re20 quirements set forth in sections 217 and 218 of the

21 Floyd D. Spence National Defense Authorization

22 Act for Fiscal Year 2001 (as enacted into law by

23 Public Law 106–398; 114 Stat. 1654A–36 and

24 1654A–37); and
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1 (B) consult with the heads of other appropriate

2 departments and agencies of the Federal Govern3 ment.

4 (c) REPORT.—Not later than February 1, 2002, the

5 Secretary of Defense shall submit to the congressional de6 fense committees a report on the plan for the production

7 of vaccines required by subsection (b). The report shall

8 include, at a minimum, the plan and the following matters:

9 (1) A description of the policies and require10 ments of the Department of Defense regarding ac11 quisition and use of the vaccines.

12 (2) The estimated schedule for the acquisition

13 of the vaccines in accordance with the plan.

14 (3) A discussion of the options considered for

15 production of the vaccines under subsection

16 (b)(2)(B).

17 (4) The Secretary’s recommendations for the

18 most appropriate course of action to meet the re19 quirements described in subsection (b)(1), together

20 with the justification for the recommendations and

21 the long-term cost of implementing the recommenda22 tions.
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1 SEC. 1026. EXTENSION OF TIMES FOR COMMISSION ON THE

2 FUTURE OF THE UNITED STATES AEROSPACE

3 INDUSTRY TO REPORT AND TO TERMINATE.

4 (a) SUBMITTAL OF REPORT.—Subsection (d) of sec5 tion 1092 of the Floyd D. Spence National Defense Au6 thorization Act for Fiscal Year 2001 (as enacted into law

7 by Public Law 106–398; 114 Stat. 1654A–302) is amend8 ed by striking ‘‘Not later than March 1, 2002,’’ and in9 serting ‘‘Not later than one year after the date of its first

10 meeting,’’.

11 (b) TERMINATION.—Subsection (g) of such section is

12 amended by striking ‘‘30 days’’ and inserting ‘‘60 days’’.

13 SEC. 1027. COMPTROLLER GENERAL STUDY AND REPORT

14 ON INTERCONNECTIVITY OF NATIONAL

15 GUARD DISTRIBUTIVE TRAINING TECH16 NOLOGY PROJECT NETWORKS AND RELATED

17 PUBLIC AND PRIVATE NETWORKS.

18 (a) STUDY REQUIRED.—The Comptroller General of

19 the United States shall conduct a study of the

20 interconnectivity between the voice, data, and video net21 works of the National Guard Distributive Training Tech22 nology Project (DTTP) and other Department of Defense,

23 Federal, State, and private voice, data, and video net24 works, including the networks of the distance learning

25 project of the Army known as Classroom XXI, networks

26 of public and private institutions of higher education, and
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1 networks of the Federal Emergency Management Agency

2 and other Federal, State, and local emergency prepared3 ness and response agencies.

4 (b) PURPOSES.—The purposes of the study under

5 subsection (a) are as follows:

6 (1) To identify existing capabilities, and future

7 requirements, for transmission of voice, data, and

8 video for purposes of operational support of disaster

9 response, homeland defense, command and control of

10 premobilization forces, training of military per11 sonnel, training of first responders, and shared use

12 of the networks of the Distributive Training Tech13 nology Project by government and members of the

14 networks.

15 (2) To identify appropriate connections between

16 the networks of the Distributive Training Tech17 nology Project and networks of the Federal Emer18 gency Management Agency, State emergency man19 agement agencies, and other Federal and State

20 agencies having disaster response functions.

21 (3) To identify requirements for connectivity

22 between the networks of the Distributive Training

23 Technology Project and other Department of De24 fense, Federal, State, and private networks referred
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1 to in subsection (a) in the event of a significant dis2 ruption of providers of public services.

3 (4) To identify means of protecting the net4 works of the Distributive Training Technology

5 Project from outside intrusion, including an assess6 ment of the manner in which so protecting the net7 works facilitates the mission of the National Guard

8 and homeland defense.

9 (5) To identify impediments to interconnectivity

10 between the networks of the Distributive Training

11 Technology Project and such other networks.

12 (6) To identify means of improving

13 interconnectivity between the networks of the Dis14 tributive Training Technology Project and such

15 other networks.

16 (c) PARTICULAR MATTERS.—In conducting the

17 study, the Comptroller General shall consider, in par18 ticular, the following:

19 (1) Whether, and to what extent, national secu20 rity concerns impede interconnectivity between the

21 networks of the Distributive Training Technology

22 Project and other Department of Defense, Federal,

23 State, and private networks referred to in subsection

24 (a).
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1 (2) Whether, and to what extent, limitations on

2 the technological capabilities of the Department of

3 Defense impede interconnectivity between the net4 works of the Distributive Training Technology

5 Project and such other networks.

6 (3) Whether, and to what extent, other con7 cerns or limitations impede interconnectivity between

8 the networks of the Distributive Training Tech9 nology Project and such other networks.

10 (4) Whether, and to what extent, any national

11 security, technological, or other concerns justify limi12 tations on interconnectivity between the networks of

13 the Distributive Training Technology Project and

14 such other networks.

15 (5) Potential improvements in National Guard

16 or other Department technologies in order to im17 prove interconnectivity between the networks of the

18 Distributive Training Technology Project and such

19 other networks.

20 (d) REPORT.—Not later than 180 days after the date

21 of the enactment of this Act, the Comptroller General shall

22 submit to the Committees on Armed Services of the Sen23 ate and the House of Representatives a report on the

24 study conducted under subsection (a). The report shall de25 scribe the results of the study, and include any rec-
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1 ommendations that the Comptroller General considers ap2 propriate in light of the study.

3 Subtitle D—Armed Forces

4 Retirement Home

5 SEC. 1041. AMENDMENT OF ARMED FORCES RETIREMENT

6 HOME ACT OF 1991.

7 Except as otherwise expressly provided, whenever in

8 this subtitle an amendment or repeal is expressed in terms

9 of an amendment to, or a repeal of, a section or other

10 provision, the reference shall be considered to be made to

11 a section or other provision of the Armed Forces Retire12 ment Home Act of 1991 (title XV of Public Law 101–

13 510; 24 U.S.C. 401 et seq.).

14 SEC. 1042. DEFINITIONS.

15 Section 1502 (24 U.S.C. 401) is amended—

16 (1) by striking paragraphs (1), (2), (3), (4),

17 and (5), and inserting the following:

18 ‘‘(1) The term ‘Retirement Home’ includes the

19 institutions established under section 1511, as fol20 lows:

21 ‘‘(A) The Armed Forces Retirement

22 Home—Washington.

23 ‘‘(B) The Armed Forces Retirement

24 Home—Gulfport.
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1 ‘‘(2) The term ‘Local Board’ means a Local

2 Board of Trustees established under section 1516.

3 ‘‘(3) The terms ‘Armed Forces Retirement

4 Home Trust Fund’ and ‘Fund’ mean the Armed

5 Forces Retirement Home Trust Fund established

6 under section 1519(a).’’;

7 (2) by redesignating paragraphs (6), (7), and

8 (8) as paragraphs (4), (5), and (6); and

9 (3) in paragraph (5), as so redesignated—

10 (A) in subparagraph (C), by striking ‘‘,

11 Manpower and Personnel’’ and inserting ‘‘for

12 Personnel’’; and

13 (B) in subparagraph (D), by striking ‘‘with

14 responsibility for personnel matters’’ and insert15 ing ‘‘for Manpower and Reserve Affairs’’.

16 SEC. 1043. REVISION OF AUTHORITY ESTABLISHING THE

17 ARMED FORCES RETIREMENT HOME.

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

19 follows:

20 ‘‘SEC. 1511. ESTABLISHMENT OF THE ARMED FORCES RE21 TIREMENT HOME.

22 ‘‘(a) INDEPENDENT ESTABLISHMENT.—The Armed

23 Forces Retirement Home is an independent establishment

24 in the executive branch.
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1 ‘‘(b) PURPOSE.—The purpose of the Retirement

2 Home is to provide, through the Armed Forces Retirement

3 Home—Washington and the Armed Forces Retirement

4 Home—Gulfport, residences and related services for cer5 tain retired and former members of the Armed Forces.

6 ‘‘(c) FACILITIES.—(1) Each facility of the Retire7 ment Home referred to in paragraph (2) is a separate es8 tablishment of the Retirement Home.

9 ‘‘(2) The United States Soldiers’ and Airmen’s Home

10 is hereby redesignated as the Armed Forces Retirement

11 Home—Washington. The Naval Home is hereby redesig12 nated as the Armed Forces Retirement Home—Gulfport.

13 ‘‘(d) OPERATION.—(1) The Chief Operating Officer

14 of the Armed Forces Retirement Home is the head of the

15 Retirement Home. The Chief Operating Officer is subject

16 to the authority, direction, and control of the Secretary

17 of Defense.

18 ‘‘(2) Each facility of the Retirement Home shall be

19 maintained as a separate establishment of the Retirement

20 Home for administrative purposes and shall be under the

21 authority, direction, and control of the Director of that

22 facility. The Director of each facility of the Retirement

23 Home is subject to the authority, direction, and control

24 of the Chief Operating Officer.
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1 ‘‘(e) PROPERTY AND FACILITIES.—(1) The Retire2 ment Home shall include such property and facilities as

3 may be acquired under paragraph (2) or accepted under

4 section 1515(f) for inclusion in the Retirement Home.

5 ‘‘(2) The Secretary of Defense may acquire, for the

6 benefit of the Retirement Home, property and facilities

7 for inclusion in the Retirement Home.

8 ‘‘(3) The Secretary of Defense may dispose of any

9 property of the Retirement Home, by sale, lease, or other10 wise, that the Secretary determines is excess to the needs

11 of the Retirement Home. The proceeds from such a dis12 posal of property shall be deposited in the Armed Forces

13 Retirement Home Trust Fund. No such disposal of real

14 property shall be effective earlier than 120 days after the

15 date on which the Secretary transmits a notification of

16 the proposed disposal to the Committees on Armed Serv17 ices of the Senate and the House of Representatives.

18 ‘‘(f) DEPARTMENT OF DEFENSE SUPPORT.—The

19 Secretary of Defense may make available from the Depart20 ment of Defense to the Retirement Home, on a non21 reimbursable basis, administrative support and office serv22 ices, legal and policy planning assistance, access to inves23 tigative facilities of the Inspector General of the Depart24 ment of Defense and of the military departments, and any
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1 other support necessary to enable the Retirement Home

2 to carry out its functions under this title.

3 ‘‘(g) ACCREDITATION.—The Chief Operating Officer

4 shall endeavor to secure for each facility of the Retirement

5 Home accreditation by a nationally recognized civilian ac6 crediting organization, such as the Continuing Care Ac7 creditation Commission and the Joint Commission for Ac8 creditation of Health Organizations.

9 ‘‘(h) ANNUAL REPORT.—The Secretary of Defense

10 shall transmit to Congress an annual report on the finan11 cial and other affairs of the Retirement Home for each

12 fiscal year.’’.

13 SEC. 1044. CHIEF OPERATING OFFICER.

14 (a) ESTABLISHMENT AND AUTHORITY OF POSI15 TION.—Section 1515 (24 U.S.C. 415) is amended to read

16 as follows:

17 ‘‘SEC. 1515. CHIEF OPERATING OFFICER.

18 ‘‘(a) APPOINTMENT.—(1) The Secretary of Defense

19 shall appoint the Chief Operating Officer of the Retire20 ment Home. The Secretary of Defense may make the ap21 pointment without regard to the provisions of title 5,

22 United States Code, governing appointments in the civil

23 service.

24 ‘‘(2) The Chief Operating Officer shall serve at the

25 pleasure of the Secretary of Defense.
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1 ‘‘(3) The Secretary of Defense shall evaluate the per2 formance of the Chief Operating Officer at least once each

3 year.

4 ‘‘(b) QUALIFICATIONS.—To qualify for appointment

5 as the Chief Operating Officer, a person shall—

6 ‘‘(1) be a continuing care retirement community

7 professional;

8 ‘‘(2) have appropriate leadership and manage9 ment skills; and

10 ‘‘(3) have experience and expertise in the oper11 ation and management of retirement homes and in

12 the provision of long-term medical care for older per13 sons.

14 ‘‘(c) RESPONSIBILITIES.—(1) The Chief Operating

15 Officer shall be responsible to the Secretary of Defense

16 for the overall direction, operation, and management of

17 the Retirement Home and shall report to the Secretary

18 on those matters.

19 ‘‘(2) The Chief Operating Officer shall supervise the

20 operation and administration of the Armed Forces Retire21 ment Home—Washington and the Armed Forces Retire22 ment Home—Gulfport, including the Local Boards of

23 those facilities.

24 ‘‘(3) The Chief Operating Officer shall perform the

25 following duties:
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1 ‘‘(A) Issue, and ensure compliance with, appro2 priate rules for the operation of the Retirement

3 Home.

4 ‘‘(B) Periodically visit, and inspect the oper5 ation of, the facilities of the Retirement Home.

6 ‘‘(C) Periodically examine and audit the ac7 counts of the Retirement Home.

8 ‘‘(D) Establish any advisory body or bodies that

9 the Chief Operating Officer considers to be nec10 essary.

11 ‘‘(d) COMPENSATION.—(1) The Secretary of Defense

12 may prescribe the pay of the Chief Operating Officer with13 out regard to the provisions of title 5, United States Code,

14 governing classification and pay, except that the basic pay,

15 including locality pay, of the Chief Operating Officer may

16 not exceed the limitations established in section 5307 of

17 such title.

18 ‘‘(2) In addition to basic pay and any locality pay

19 prescribed for the Chief Operating Officer, the Secretary

20 may award the Chief Operating Officer, not more than

21 once each year, a bonus based on the performance of the

22 Chief Operating Officer for the year. The Secretary shall

23 prescribe the amount of any such bonus.

24 ‘‘(e) ADMINISTRATIVE STAFF.—(1) The Chief Oper25 ating Officer may, subject to the approval of the Secretary
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1 of Defense, appoint a staff to assist in the performance

2 of the Chief Operating Officer’s duties in the overall ad3 ministration of the Retirement Home.

4 ‘‘(2) The Chief Operating Officer shall prescribe the

5 rates of pay applicable to the members of the staff ap6 pointed under paragraph (1), without regard to the provi7 sions of title 5, United States Code, regarding classifica8 tion and pay, except that—

9 ‘‘(A) a staff member who is a member of the

10 Armed Forces on active duty or who is a full-time

11 officer or employee of the United States may not re12 ceive additional pay by reason of service on the ad13 ministrative staff; and

14 ‘‘(B) the limitations in section 5373 of title 5,

15 United States Code, relating to pay set by adminis16 trative action, shall apply to the rates of pay pre17 scribed under this paragraph.

18 ‘‘(f) ACCEPTANCE OF GIFTS.—(1) The Chief Oper19 ating Officer may accept gifts of money, property, and fa20 cilities on behalf of the Retirement Home.

21 ‘‘(2) Monies received as gifts, or realized from the

22 disposition of property and facilities received as gifts, shall

23 be deposited in the Armed Forces Retirement Home Trust

24 Fund.’’.
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1 (b) TRANSFER OF AUTHORITIES.—(1) The following

2 provisions are amended by striking ‘‘Retirement Home

3 Board’’ each place it appears and inserting ‘‘Chief Oper4 ating Officer’’:

5 (A) Section 1512 (24 U.S.C. 412), relating to

6 eligibility and acceptance for residence in the Armed

7 Forces Retirement Home.

8 (B) Section 1513(a) (24 U.S.C. 412(a)), relat9 ing to services provided to residents of the Armed

10 Forces Retirement Home.

11 (C) Section 1518(c) (24 U.S.C. 418(c)), relat12 ing to inspection of the Armed Forces Retirement

13 Home.

14 (2) Section 1519(c) (24 U.S.C. 419(c)), relating to

15 authority to invest funds in the Armed Forces Retirement

16 Home Trust Fund, is amended by striking ‘‘Director’’ and

17 inserting ‘‘Chief Operating Officer’’.

18 (3) Section 1521(a) (24 U.S.C. 421(a)), relating to

19 payment of residents for services, is amended by striking

20 ‘‘Chairman of the Armed Forces Retirement Board’’ and

21 inserting ‘‘Chief Operating Officer’’.

22 (4) Section 1522 (24 U.S.C. 422), relating to author23 ity to accept certain uncompensated services, is

24 amended—

25 (A) in subsection (a)—
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1 (i) by striking ‘‘Chairman of the Retire2 ment Home Board or the Director of each es3 tablishment’’ and inserting ‘‘Chief Operating

4 Officer or the Director of a facility’’; and

5 (ii) by striking ‘‘unless’’ and all that fol6 lows through ‘‘Retirement Home Board’’;

7 (B) in subsection (b)(1)—

8 (i) by striking ‘‘Chairman of the Retire9 ment Home Board or the Director of the estab10 lishment’’ and inserting ‘‘Chief Operating Offi11 cer or the Director of a facility’’; and

12 (ii) by inserting ‘‘offering the services’’

13 after ‘‘notify the person’’;

14 (C) in subsection (b)(2), by striking ‘‘Chair15 man’’ and inserting ‘‘Chief Operating Officer’’;

16 (D) in subsection (c), by striking ‘‘Chairman of

17 the Retirement Home Board or the Director of an

18 establishment’’ and inserting ‘‘Chief Operating Offi19 cer or the Director of a facility’’; and

20 (E) in subsection (e)—

21 (i) by striking ‘‘Chairman of the Retire22 ment Board or the Director of the establish23 ment’’ in the first sentence and inserting ‘‘Chief

24 Operating Officer or the Director of a facility’’;

25 and
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1 (ii) by striking ‘‘Chairman’’ in the second

2 sentence and inserting ‘‘Chief Operating Offi3 cer’’.

4 (5) Section 1523(b) (24 U.S.C. 423(b)), relating to

5 preservation of historic buildings and grounds at the

6 Armed Forces Retirement Home—Washington, is amend7 ed by striking ‘‘Chairman of the Retirement Home Board’’

8 and inserting ‘‘Chief Operating Officer’’.

9 SEC. 1045. RESIDENTS OF RETIREMENT HOME.

10 (a) REPEAL OF REQUIREMENT OF RESIDENT TO RE11 APPLY AFTER SUBSTANTIAL ABSENCE.—Subsection (e)

12 of section 1512 (24 U.S.C. 412) is repealed.

13 (b) FEES PAID BY RESIDENTS.—Section 1514 (24

14 U.S.C. 414) is amended to read as follows:

15 ‘‘SEC. 1514. FEES PAID BY RESIDENTS.

16 ‘‘(a) MONTHLY FEES.—The Director of each facility

17 of the Retirement Home shall collect a monthly fee from

18 each resident of that facility.

19 ‘‘(b) DEPOSIT OF FEES.—The Directors shall deposit

20 fees collected under subsection (a) in the Armed Forces

21 Retirement Home Trust Fund.

22 ‘‘(c) FIXING FEES.—(1) The Chief Operating Offi23 cer, with the approval of the Secretary of Defense, shall

24 from time to time prescribe the fees required by subsection

25 (a). Changes to such fees shall be based on the financial
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1 needs of the Retirement Home and the ability of the resi2 dents to pay. A change of a fee may not take effect until

3 120 days after the Secretary of Defense transmits a notifi4 cation of the change to the Committees on Armed Services

5 of the Senate and the House of Representatives.

6 ‘‘(2) The fee shall be fixed as a percentage of the

7 monthly income and monthly payments (including Federal

8 payments) received by a resident. The fee shall be subject

9 to a limitation on maximum monthly amount. The per10 centage shall be the same for each facility of the Retire11 ment Home. The Secretary of Defense may make any ad12 justment in a percentage or limitation on maximum

13 amount that the Secretary determines appropriate.

14 ‘‘(d) TRANSITIONAL FEE STRUCTURES.—(1) Until

15 different fees are prescribed and take effect under sub16 section (c), the percentages and limitations on maximum

17 monthly amount that are applicable to fees charged resi18 dents of the Retirement Home are (subject to any adjust19 ment that the Secretary of Defense determines appro20 priate) as follows:

21 ‘‘(A) For months beginning before January 1,

22 2002—

23 ‘‘(i) for a permanent health care resident,

24 65 percent (without limitation on maximum

25 monthly amount); and
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1 ‘‘(ii) for a resident who is not a permanent

2 health care resident, 40 percent (without limita3 tion on maximum monthly amount).

4 ‘‘(B) For months beginning after December 31,

5 2001—

6 ‘‘(i) for an independent living resident, 35

7 percent, but not to exceed $1,000 each month;

8 ‘‘(ii) for an assisted living resident, 40 per9 cent, but not to exceed $1,500 each month; and

10 ‘‘(iii) for a long-term care resident, 65 per11 cent, but not to exceed $2,500 each month.

12 ‘‘(2) Notwithstanding the limitations on maximum

13 monthly amount prescribed under subsection (c) or set

14 forth in paragraph (1)(B), until an independent living

15 resident or assisted living resident of the Armed Forces

16 Retirement Home—Gulfport occupies a renovated room at

17 that facility, as determined by the Secretary of Defense,

18 the limitation on maximum monthly amount applicable to

19 the resident for months beginning after December 31,

20 2001, shall be—

21 ‘‘(A) in the case of an independent living resi22 dent, $800; and

23 ‘‘(B) in the case of an assisted living resident,

24 $1,300.
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1 SEC. 1046. LOCAL BOARDS OF TRUSTEES.

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

3 follows:

4 ‘‘SEC. 1516. LOCAL BOARDS OF TRUSTEES.

5 ‘‘(a) ESTABLISHMENT.—Each facility of the Retire6 ment Home shall have a Local Board of Trustees.

7 ‘‘(b) DUTIES.—The Local Board for a facility shall

8 serve in an advisory capacity to the Director of the facility

9 and to the Chief Operating Officer.

10 ‘‘(c) COMPOSITION.—(1) The Local Board for a facil11 ity shall consist of at least 11 members who (except as

12 otherwise specifically provided) shall be appointed by the

13 Secretary of Defense in consultation with each of the Sec14 retaries of the military departments concerned. At least

15 one member of the Local Board shall have a perspective

16 that is oriented toward the Retirement Home overall. The

17 Local Board for a facility shall consist of the following

18 members:

19 ‘‘(A) One member who is a civilian expert in

20 nursing home or retirement home administration

21 and financing from the geographical area of the fa22 cility.

23 ‘‘(B) One member who is a civilian expert in

24 gerontology from the geographical area of the facil25 ity.
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1 ‘‘(C) One member who is a service expert in fi2 nancial management.

3 ‘‘(D) One representative of the Department of

4 Veterans Affairs regional office nearest in proximity

5 to the facility, who shall be designated by the Sec6 retary of Veterans Affairs.

7 ‘‘(E) One representative of the resident advi8 sory committee or council of the facility, who shall

9 be a nonvoting member.

10 ‘‘(F) One enlisted representative of the Serv11 ices’ Retiree Advisory Council.

12 ‘‘(G) The senior noncommissioned officer of one

13 of the Armed Forces.

14 ‘‘(H) One senior representative of the military

15 hospital nearest in proximity to the facility.

16 ‘‘(I) One senior judge advocate from one of the

17 Armed Forces.

18 ‘‘(J) The Director of the facility, who shall be

19 a nonvoting member.

20 ‘‘(K) One senior representative of one of the

21 chief personnel officers of the Armed Forces.

22 ‘‘(L) Other members designated by the Sec23 retary of Defense (if the Local Board is to have

24 more than 11 members).
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1 ‘‘(2) The Secretary of Defense shall designate one

2 member of a Local Board to serve as the chairman of the

3 Local Board at the pleasure of the Secretary of Defense.

4 ‘‘(d) TERMS.—(1) Except as provided in subsections

5 (e), (f), and (g), the term of office of a member of a Local

6 Board shall be five years.

7 ‘‘(2) Unless earlier terminated by the Secretary of

8 Defense, a person may continue to serve as a member of

9 the Local Board after the expiration of the member’s term

10 until a successor is appointed or designated, as the case

11 may be.

12 ‘‘(e) EARLY EXPIRATION OF TERM.—A member of

13 a Local Board who is a member of the Armed Forces or

14 an employee of the United States serves as a member of

15 the Local Board only for as long as the member is as16 signed to or serving in a position for which the duties in17 clude the duty to serve as a member of the Local Board.

18 ‘‘(f) VACANCIES.—(1) A vacancy in the membership

19 of a Local Board shall be filled in the manner in which

20 the original appointment or designation was made, as the

21 case may be.

22 ‘‘(2) A member appointed or designated to fill a va23 cancy occurring before the end of the term of the prede24 cessor of the member shall be appointed or designated,
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1 as the case may be, for the remainder of the term for

2 which the predecessor was appointed.

3 ‘‘(3) A vacancy in a Local Board shall not affect its

4 authority to perform its duties.

5 ‘‘(g) EARLY TERMINATION.—The Secretary of De6 fense may terminate the appointment of a member of a

7 Local Board before the expiration of the member’s term

8 for any reason that the Secretary determines appropriate.

9 ‘‘(h) COMPENSATION.—(1) Except as provided in

10 paragraph (2), a member of a Local Board shall—

11 ‘‘(A) be provided a stipend consistent with the

12 daily government consultant fee for each day on

13 which the member is engaged in the performance of

14 services for the Local Board; and

15 ‘‘(B) while away from home or regular place of

16 business in the performance of services for the Local

17 Board, be allowed travel expenses (including per

18 diem in lieu of subsistence) in the same manner as

19 a person employed intermittently in Government

20 under sections 5701 through 5707 of title 5, United

21 States Code.

22 ‘‘(2) A member of a Local Board who is a member

23 of the Armed Forces on active duty or a full-time officer

24 or employee of the United States shall receive no addi-
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1 tional pay by reason of serving a member of a Local

2 Board.’’.

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

4 FACILITIES.

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

6 follows:

7 ‘‘SEC. 1517. DIRECTORS, DEPUTY DIRECTORS, AND STAFF

8 OF FACILITIES.

9 ‘‘(a) APPOINTMENT.—The Secretary of Defense shall

10 appoint a Director and a Deputy Director for each facility

11 of the Retirement Home.

12 ‘‘(b) DIRECTOR.—The Director of a facility shall—

13 ‘‘(1) be a member of the Armed Forces serving

14 on active duty in a grade above lieutenant colonel or

15 commander;

16 ‘‘(2) have appropriate leadership and manage17 ment skills; and

18 ‘‘(3) be required to pursue a course of study to

19 receive certification as a retirement facilities director

20 by an appropriate civilian certifying organization, if

21 the Director is not so certified at the time of ap22 pointment.

23 ‘‘(c) DUTIES OF DIRECTOR.—(1) The Director of a

24 facility shall be responsible for the day-to-day operation
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1 of the facility, including the acceptance of applicants to

2 be residents of that facility.

3 ‘‘(2) The Director of a facility shall keep accurate

4 and complete records of the facility.

5 ‘‘(d) DEPUTY DIRECTOR.—(1) The Deputy Director

6 of a facility shall—

7 ‘‘(A) be a civilian with experience as a con8 tinuing care retirement community professional or a

9 member of the Armed Forces serving on active duty

10 in a grade above major or lieutenant commander;

11 and

12 ‘‘(B) have appropriate leadership and manage13 ment skills.

14 ‘‘(2) The Deputy Director of a facility shall—

15 ‘‘(A) be appointed without regard to the provi16 sions of title 5, United States Code, governing ap17 pointments in the competitive service; and

18 ‘‘(B) serve at the pleasure of the Secretary of

19 Defense, without regard to the provisions of title 5,

20 United States Code.

21 ‘‘(e) DUTIES OF DEPUTY DIRECTOR.—The Deputy

22 Director of a facility shall, under the authority, direction,

23 and control of the Director of the facility, perform such

24 duties as the Director may assign.
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1 ‘‘(f) STAFF.—(1) The Director of a facility may, sub2 ject to the approval of the Chief Operating Officer, ap3 point and prescribe the pay of such principal staff as the

4 Director considers appropriate to assist the Director in op5 erating the facility.

6 ‘‘(2) The principal staff of a facility shall include per7 sons with experience and expertise in the operation and

8 management of retirement homes and in the provision of

9 long-term medical care for older persons.

10 ‘‘(3) The Director of a facility may exercise the au11 thority under paragraph (1) without regard to the provi12 sions of title 5, United States Code, governing appoint13 ments in the competitive service, classification, and pay,

14 except that the limitations in section 5373 of such title

15 (relating to pay set by administrative action) shall apply

16 to the rates of pay prescribed under this paragraph.

17 ‘‘(g) ANNUAL EVALUATION OF DIRECTORS.—(1) The

18 Chief Operating Officer shall evaluate the performance of

19 each of the Directors of the facilities of the Retirement

20 Home each year.

21 ‘‘(2) The Chief Operating Officer shall submit to the

22 Secretary of Defense any recommendations regarding a

23 Director that the Chief Operating Officer determines ap24 propriate taking into consideration the annual evalua25 tion.’’.
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1 SEC. 1048. DISPOSITION OF EFFECTS OF DECEASED PER2 SONS AND UNCLAIMED PROPERTY.

3 (a) LEGAL REPRESENTATION FOR RETIREMENT

4 HOME.—Subsection (b)(2)(A) of section 1520 (24 U.S.C.

5 420) is amended by inserting ‘‘who is a full-time officer

6 or employee of the United States or a member of the

7 Armed Forces on active duty’’ after ‘‘may designate an

8 attorney’’.

9 (b) CORRECTION OF REFERENCE.—Subsection

10 (b)(1)(B) of such section is amended by inserting ‘‘Armed

11 Forces’’ before ‘‘Retirement Home Trust Fund’’.

12 SEC. 1049. TRANSITIONAL PROVISIONS.

13 Part B is amended by striking sections 1531, 1532,

14 and 1533 and inserting the following:

15 ‘‘SEC. 1531. TEMPORARY CONTINUATION OF ARMED

16 FORCES RETIREMENT HOME BOARD.

17 ‘‘Until the Secretary of Defense appoints the first

18 Chief Operating Officer after the enactment of the Na19 tional Defense Authorization Act for Fiscal Year 2002,

20 the Armed Forces Retirement Home Board, as constituted

21 on the day before the date of the enactment of that Act,

22 shall continue to serve and shall perform the duties of the

23 Chief Operating Officer.
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1 ‘‘SEC. 1532. TEMPORARY CONTINUATION OF DIRECTOR OF

2 THE ARMED FORCES RETIREMENT HOME—

3 WASHINGTON.

4 ‘‘The person serving as the Director of the Armed

5 Forces Retirement Home—Washington on the day before

6 the enactment of the National Defense Authorization Act

7 for Fiscal Year 2002 may continue to serve as the Direc8 tor of that facility until April 2, 2002.

9 ‘‘SEC. 1533. TEMPORARY CONTINUATION OF INCUMBENT

10 DEPUTY DIRECTORS.

11 ‘‘A person serving as the Deputy Director of a facility

12 of the Retirement Home on the day before the enactment

13 of the National Defense Authorization Act for Fiscal Year

14 2002 may continue to serve, at the pleasure of the Sec15 retary of Defense, as the Deputy Director until the date

16 on which a Deputy Director is appointed for that facility

17 under section 1517, except that the service in that position

18 may not continue under this section after December 31,

19 2004.’’.

20 SEC. 1050. CONFORMING AND CLERICAL AMENDMENTS

21 AND REPEALS OF OBSOLETE PROVISIONS.

22 (a) CONFORMING AMENDMENTS.—(1) Section

23 1513(b) (24 U.S.C. 413(b)), relating to services provided

24 to residents of the Armed Forces Retirement Home, is

25 amended by striking ‘‘maintained as a separate establish26 ment’’ in the second sentence.
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1 (2) The heading for section 1519 (24 U.S.C. 419)

2 is amended to read as follows:

3 ‘‘SEC. 1519. ARMED FORCES RETIREMENT HOME TRUST

4 FUND.’’.

5 (3) Section 1520 (24 U.S.C. 420), relating to disposi6 tion of effects of deceased persons and unclaimed prop7 erty, is amended—

8 (A) in subsection (a), by striking ‘‘each facility

9 that is maintained as a separate establishment’’ and

10 inserting ‘‘a facility’’;

11 (B) in subsection (b)(2)(A), by striking ‘‘main12 tained as a separate establishment’’; and

13 (C) in subsection (e), by striking ‘‘Directors’’

14 and inserting ‘‘Director of the facility’’.

15 (4)(A) Section 1523 (24 U.S.C. 423), relating to

16 preservation of historic buildings and grounds at the

17 Armed Forces Retirement Home—Washington, is amend18 ed by striking ‘‘United States Soldiers’ and Airmen’s

19 Home’’ each place it appears and inserting ‘‘Armed Forces

20 Retirement Home—Washington’’.

21 (B) The heading for such section is amended to read

22 as follows:
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1 ‘‘SEC. 1523. PRESERVATION OF HISTORIC BUILDINGS AND

2 GROUNDS AT THE ARMED FORCES RETIRE3 MENT HOME—WASHINGTON.’’.

4 (5) Section 1524 (24 U.S.C. 424), relating to condi5 tional supervisory control of the Retirement Home Board,

6 is repealed.

7 (b) REPEAL OF OBSOLETE PROVISIONS.—The fol8 lowing provisions are repealed:

9 (1) Section 1512(f) (24 U.S.C. 412(f)), relating

10 to the applicability of certain eligibility require11 ments.

12 (2) Section 1519(d) (24 U.S.C. 419(d)), relat13 ing to transitional accounts in the Armed Forces Re14 tirement Home Trust Fund.

15 (3) Part C, relating to effective date and au16 thorization of appropriations.

17 (c) ADDITION OF TABLE OF CONTENTS.—Title XV

18 of the National Defense Authorization Act for Fiscal Year

19 1991 (Public Law 101–510; 104 Stat. 1722) is amended

20 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.
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‘‘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.’’.

1 SEC. 1051. AMENDMENTS OF OTHER LAWS.

2 (a) EMPLOYEE PERFORMANCE APPRAISALS.—Sec3 tion 4301(2) of title 5, United States Code, is amended—

4 (1) by striking ‘‘or’’ at the end of subparagraph

5 (G);

6 (2) by striking ‘‘and’’ at the end of subpara7 graph (H) and inserting ‘‘or’’; and

8 (3) by inserting at the end the following new

9 subparagraph:

10 ‘‘(I) the Chief Operating Officer and the

11 Deputy Directors of the Armed Forces Retire12 ment Home; and’’.

13 (b) EXCLUSION OF CERTAIN OFFICERS FROM CER14 TAIN LIMITATIONS APPLICABLE TO GENERAL AND FLAG

15 OFFICERS ON ACTIVE DUTY.—(1) Section 525 of title 10,

16 United States Code, is amended by adding at the end the

17 following new subsection:
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1 ‘‘(e) An officer while serving as a Director of the

2 Armed Forces Retirement Home, if serving in the grade

3 of major general or rear admiral, is in addition to the

4 number that would otherwise be permitted for that offi5 cer’s armed force for that grade under subsection (a).’’.

6 (2)(A) Section 526 of such title is amended by adding

7 at the end the following new subsection:

8 ‘‘(e) EXCLUSION OF DIRECTORS OF ARMED FORCES

9 RETIREMENT HOME.—The limitations of this section do

10 not apply to a general or flag officer while the officer is

11 assigned as the Director of a facility of the Armed Forces

12 Retirement Home.’’.

13 (B) Subsection (d) of such section is amended by in14 serting ‘‘RESERVE COMPONENT’’ after ‘‘EXCLUSION OF

15 CERTAIN’’.

16 (3) Section 688(e)(2) of such title is amended by add17 ing at the end the following new subparagraph:

18 ‘‘(D) A general officer or flag officer assigned

19 as the Director of a facility of the Armed Forces Re20 tirement Home for the period of active duty to which

21 ordered.’’.

22 (4) Section 690 of title 10, United States Code, is

23 amended—

24 (A) in subsection (a)—
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1 (i) by striking the second sentence and in2 serting the following: ‘‘The following officers

3 are not counted for the purposes of this sub4 section:’’; and

5 (ii) by adding at the end the following:

6 ‘‘(1) A retired officer ordered to active duty for

7 a period of 60 days or less.

8 ‘‘(2) A general or flag officer who is assigned

9 as the Director of a facility of the Armed Forces Re10 tirement Home for the period of active duty to which

11 ordered.’’; and

12 (B) in subsection (b), by adding at the end of

13 paragraph (2) the following new subparagraph:

14 ‘‘(E) A general officer or flag officer assigned

15 as the Director of a facility of the Armed Forces Re16 tirement Home for the period of active duty to which

17 ordered.’’.

18 Subtitle E—Other Matters

19 SEC. 1061. REQUIREMENT TO CONDUCT CERTAIN PRE20 VIOUSLY AUTHORIZED EDUCATIONAL PRO21 GRAMS FOR CHILDREN AND YOUTH.

22 (a) NATIONAL GUARD CHALLENGE PROGRAM.—Sec23 tion 509(a) of title 32, United States Code, is amended

24 by striking ‘‘The Secretary of Defense may’’ and inserting

25 ‘‘The Secretary of Defense shall’’.
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1 (b) STARBASE PROGRAM.—Section 2193b(a) of

2 title 10, United States Code, is amended by striking ‘‘The

3 Secretary of Defense may’’ and inserting ‘‘The Secretary

4 of Defense shall’’.

5 SEC. 1062. AUTHORITY TO ENSURE DEMILITARIZATION OF

6 SIGNIFICANT MILITARY EQUIPMENT FOR7 MERLY OWNED BY THE DEPARTMENT OF DE8 FENSE.

9 (a) PROHIBITION.—It is unlawful for any person to

10 possess significant military equipment formerly owned by

11 the Department of Defense unless—

12 (1) the military equipment has been demili13 tarized in accordance with standards prescribed by

14 the Secretary of Defense;

15 (2) the person is in possession of the military

16 equipment for the purpose of demilitarizing the

17 equipment pursuant to a Federal Government con18 tract; or

19 (3) the person is specifically authorized by law

20 or regulation to possess the military equipment.

21 (b) REFERRAL TO ATTORNEY GENERAL.—The Sec22 retary of Defense shall notify the Attorney General of any

23 potential violation of subsection (a) of which the Secretary

24 becomes aware.
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1 (c) AUTHORITY TO REQUIRE DEMILITARIZATION.—

2 (1) The Attorney General may require any person who,

3 in violation of subsection (a), is in possession of significant

4 military equipment formerly owned by the Department of

5 Defense—

6 (A) to demilitarize the equipment;

7 (B) to have the equipment demilitarized by a

8 third party; or

9 (C) to return the equipment to the Federal

10 Government for demilitarization.

11 (2) When the demilitarization of significant military

12 equipment is carried out pursuant to subparagraph (A)

13 or (B) of paragraph (1), an officer or employee of the

14 United States designated by the Attorney General shall

15 have the right to confirm, by inspection or other means

16 authorized by the Attorney General, that the equipment

17 has been demilitarized.

18 (3) If significant military equipment is not demili19 tarized or returned to the Federal Government for demili20 tarization as required under paragraph (1) within a rea21 sonable period after the Attorney General notifies the per22 son in possession of the equipment of the requirement to

23 do so, the Attorney General may request that a court of

24 the United States issue a warrant authorizing the seizure

25 of the military equipment in the same manner as is pro-
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1 vided for a search warrant. If the court determines that

2 there is probable cause to believe that the person is in

3 possession of significant military equipment in violation of

4 subsection (a), the court shall issue a warrant authorizing

5 the seizure of such equipment.

6 (d) DEMILITARIZATION OF EQUIPMENT.—(1) The

7 Attorney General shall transfer any military equipment re8 turned to the Federal Government or seized pursuant to

9 subsection (c) to the Department of Defense for demili10 tarization.

11 (2) If the person in possession of significant military

12 equipment obtained the equipment in accordance with any

13 other provision of law, the Secretary of Defense shall bear

14 all costs of transportation and demilitarization of the

15 equipment and shall either—

16 (A) return the equipment to the person upon

17 completion of the demilitarization; or

18 (B) reimburse the person for the cost incurred

19 by that person to acquire the equipment if the Sec20 retary determines that the cost to demilitarize and

21 return the property to the person would be prohibi22 tive.

23 (e) ESTABLISHMENT OF DEMILITARIZATION STAND24 ARDS.—(1) The Secretary of Defense shall prescribe regu-
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1 lations regarding the demilitarization of military equip2 ment.

3 (2) The regulations shall be designed to ensure

4 that—

5 (A) the equipment, after demilitarization, does

6 not constitute a significant risk to public safety and

7 does not have—

8 (i) a significant capability for use as a

9 weapon; or

10 (ii) a uniquely military capability; and

11 (B) any person from whom private property is

12 taken for public use under this section receives just

13 compensation for the taking of the property.

14 (3) The regulations shall, at a minimum, define—

15 (A) the classes of significant military equipment

16 requiring demilitarization before disposal; and

17 (B) what constitutes demilitarization for each

18 class of significant military equipment.

19 (f) DEFINITION OF SIGNIFICANT MILITARY EQUIP20 MENT.—In this section, the term ‘‘significant military

21 equipment’’ means equipment that has a capability de22 scribed in clause (i) or (ii) of subsection (e)(2) and—

23 (1) is a defense article listed on the United

24 States Munitions List maintained under section 38

25 of the Arms Export Control Act (22 U.S.C. 2778)
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1 that is designated on that list as significant military

2 equipment; or

3 (2) is designated by the Secretary of Defense

4 under the regulations prescribed under subsection

5 (e) as being equipment that it is necessary in the in6 terest of public safety to demilitarize before disposal

7 by the United States.

8 SEC. 1063. CONVEYANCES OF EQUIPMENT AND RELATED

9 MATERIALS LOANED TO STATE AND LOCAL

10 GOVERNMENTS AS ASSISTANCE FOR EMER11 GENCY RESPONSE TO A USE OR THREAT12 ENED USE OF A WEAPON OF MASS DESTRUC13 TION.

14 Section 1412(e) of the Defense Against Weapons of

15 Mass Destruction Act of 1996 (title XIV of Public Law

16 104–201; 110 Stat. 2718; 50 U.S.C. 2312(e)) is amended

17 by adding at the end the following new paragraph:

18 ‘‘(5) A conveyance of ownership of United

19 States property to a State or local government, with20 out cost and without regard to subsection (f) and

21 title II of the Federal Property and Administrative

22 Services Act of 1949 (or any other provision of law

23 relating to the disposal of property of the United

24 States), if the property is equipment, or equipment

25 and related materials, that is in the possession of
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1 the State or local government on the date of the en2 actment of the National Defense Authorization Act

3 for Fiscal Year 2002 pursuant to a loan of the prop4 erty as assistance under this section.’’.

5 SEC. 1064. AUTHORITY TO PAY GRATUITY TO MEMBERS OF

6 THE ARMED FORCES AND CIVILIAN EMPLOY7 EES OF THE UNITED STATES FOR SLAVE

8 LABOR PERFORMED FOR JAPAN DURING

9 WORLD WAR II.

10 (a) PAYMENT OF GRATUITY AUTHORIZED.—The

11 Secretary of Veterans Affairs may pay a gratuity to a cov12 ered veteran or civilian internee, or to the surviving spouse

13 of a covered veteran or civilian internee, in the amount

14 of $20,000.

15 (b) COVERED VETERAN OR CIVILIAN INTERNEE DE16 FINED.—In this section, the term ‘‘covered veteran or ci17 vilian internee’’ means any individual who—

18 (1) was a member of the Armed Forces, a civil19 ian employee of the United States, or an employee

20 of a contractor of the United States during World

21 War II;

22 (2) served in or with United States combat

23 forces during World War II;
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1 (3) was captured and held as a prisoner of war

2 or prisoner by Japan in the course of such service;

3 and

4 (4) was required by the Imperial Government of

5 Japan, or one or more Japanese corporations, to

6 perform slave labor during World War II.

7 (c) RELATIONSHIP TO OTHER PAYMENTS.—Any

8 amount paid a person under this section for activity de9 scribed in subsection (b) is in addition to any other

10 amount paid such person for such activity under any other

11 provision of law.

12 SEC. 1065. RETENTION OF TRAVEL PROMOTIONAL ITEMS.

13 (a) IN GENERAL.—To the extent provided in sub14 section (b), a Federal employee, member of the foreign

15 service, member of a uniformed service, any family mem16 ber or dependent of such an employee or member, or other

17 individual traveling at Government expense who receives

18 a promotional item (including frequent flyer miles, up19 grades, or access to carrier clubs or facilities) as a result

20 of using travel or transportation services procured by the

21 United States or accepted under section 1353 of title 31,

22 United States Code, may retain the promotional item for

23 personal use if the promotional item is obtained under the

24 same terms as those offered to the general public and at

25 no additional cost to the Government.
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1 (b) APPLICABILITY TO EXECUTIVE BRANCH ONLY.—

2 Subsection (a)—

3 (1) applies only to travel that is at the expense

4 of the executive branch; and

5 (2) does not apply to travel by any officer, em6 ployee, or other official of the Government outside

7 the executive branch.

8 (c) CONFORMING AMENDMENT.—Section 6008 of the

9 Federal Acquisition Streamlining Act of 1994 (Public Law

10 103–355; 5 U.S.C. 5702 note) is amended by adding at

11 the end the following new subsection:

12 ‘‘(d) INAPPLICABILITY TO EXECUTIVE BRANCH.—

13 The guidelines issued under subsection (a) and the re14 quirement under subsection (b) shall not apply to any

15 agency of the executive branch or to any Federal employee

16 or other personnel in the executive branch.’’.

17 (d) APPLICABILITY.—This section shall apply with

18 respect to promotional items received before, on, or after

19 the date of enactment of this Act.

20 SEC. 1066. RADIATION EXPOSURE COMPENSATION ACT

21 MANDATORY APPROPRIATIONS.

22 Section 3(e) of the Radiation Exposure Compensation

23 Act (42 U.S.C. 2210 note) is amended to read as follows:

24 ‘‘(e) APPROPRIATION.—
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1 ‘‘(1) IN GENERAL.—Subject to the limits in

2 paragraph (2), there are appropriated, out of any

3 money in the Treasury not otherwise appropriated,

4 for the fiscal year 2002, and each fiscal year there5 after through 2011, such sums as may be necessary

6 to the Fund for the purpose of making payments to

7 eligible beneficiaries under this Act.

8 ‘‘(2) LIMITATION.—Amounts appropriated pur9 suant to paragraph (1) may not exceed—

10 ‘‘(A) in fiscal year 2002, $172,000,000;

11 ‘‘(B) in fiscal year 2003, $143,000,000;

12 ‘‘(C) in fiscal year 2004, $107,000,000;

13 ‘‘(D) in fiscal year 2005, $65,000,000;

14 ‘‘(E) in fiscal year 2006, $47,000,000;

15 ‘‘(F) in fiscal year 2007, $29,000,000;

16 ‘‘(G) in fiscal year 2008, $29,000,000;

17 ‘‘(H) in fiscal year 2009, $23,000,000;

18 ‘‘(I) in fiscal year 2010, $23,000,000; and

19 ‘‘(J) in fiscal year 2011, $17,000,000.’’.

20 SEC. 1067. LEASING OF NAVY SHIPS FOR UNIVERSITY NA21 TIONAL OCEANOGRAPHIC LABORATORY SYS22 TEM.

23 Subsection (g) of section 2667 of title 10, United

24 States Code (section 1061, National Defense Authoriza-
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1 tion Act, 1998, P.L. 105–85) is amended by adding a new

2 paragraph at the end as follows:

3 ‘‘(3) The requirements of paragraph (1) shall

4 not apply to renewals or extensions of a lease with

5 a selected institution for operation of a ship within

6 the University National Oceanographic Laboratory

7 System, if—

8 ‘‘(A) use of the ship is restricted to feder9 ally supported research programs and non-Fed10 eral uses under specific conditions with ap11 proval by the Secretary of the Navy;

12 ‘‘(B) because of the anticipated value to

13 the Navy of the oceanographic research and

14 training that will result from the ship’s oper15 ation, no monetary lease payments are required

16 from the lessee under the initial lease or under

17 any renewals or extensions; and

18 ‘‘(C) the lessee is required to maintain the

19 ship in a good state of repair readiness, and ef20 ficient operating conditions, conform to all ap21 plicable regulatory requirements, and assume

22 full responsibility for the safety of the ship, its

23 crew, and scientific personnel aboard.’’.
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1 SEC. 1068. SMALL BUSINESS PROCUREMENT COMPETITION.

2 (a) DEFINITION OF COVERED CONTRACTS.—Section

3 15(e)(4) of the Small Business Act (15 U.S.C. 644(e)(4))

4 is amended—

5 (1) by inserting after ‘‘bundled contract’’ the

6 following: ‘‘, the aggregate dollar value of which is

7 anticipated to be less than $5,000,000, or any con8 tract, whether or not the contract is a bundled con9 tract, the aggregate dollar value of which is antici10 pated to be $5,000,000 or more’’;

11 (2) by striking ‘‘In the’’ and inserting the fol12 lowing:

13 ‘‘(A) IN GENERAL.—In the’’; and

14 (3) by adding at the end the following:

15 ‘‘(B) CONTRACTING GOALS.—

16 ‘‘(i) IN GENERAL.—A contract award

17 under this paragraph to a team that is

18 comprised entirely of small business con19 cerns shall be counted toward the small

20 business contracting goals of the con21 tracting agency, as required by this Act.

22 ‘‘(ii) PREPONDERANCE TEST.—The

23 ownership of the small business that con24 ducts the preponderance of the work in a

25 contract awarded to a team described in

26 clause (i) shall determine the category or
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1 type of award for purposes of meeting the

2 contracting goals of the contracting agen3 cy.’’.

4 (b) PROPORTIONATE WORK REQUIREMENTS FOR

5 BUNDLED CONTRACTS.—

6 (1) SECTION 8.—Section 8(a)(14)(A) of the

7 Small Business Act (15 U.S.C. 637(a)(14)(A)) is

8 amended—

9 (A) in clause (i), by striking ‘‘and’’ at the

10 end;

11 (B) in clause (ii), by striking the period at

12 the end and inserting ‘‘; and’’; and

13 (C) by adding at the end the following:

14 ‘‘(iii) notwithstanding clauses (i) and (ii), in the

15 case of a bundled contract—

16 ‘‘(I) the concern will perform work for at

17 least 33 percent of the aggregate dollar value of

18 the anticipated award;

19 ‘‘(II) no other concern will perform a

20 greater proportion of the work on that contract;

21 and

22 ‘‘(III) no other concern that is not a small

23 business concern will perform work on the con24 tract.’’.
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1 (2) QUALIFIED HUBZONE SMALL BUSINESS

2 CONCERNS.—Section 3(p)(5)(A)(i)(III) of the Small

3 Business Act (15 U.S.C. 632(p)(5)(A)(i)(III)) is

4 amended—

5 (A) in item (bb), by striking ‘‘and’’ at the

6 end;

7 (B) by redesignating item (cc) as item

8 (dd); and

9 (C) by inserting after item (bb) the fol10 lowing:

11 ‘‘(cc) notwithstanding items

12 (aa) and (bb), in the case of a

13 bundled contract, the concern will

14 perform work for at least 33 per15 cent of the aggregate dollar value

16 of the anticipated award, no

17 other concern will perform a

18 greater proportion of the work on

19 that contract, and no other con20 cern that is not a small business

21 concern will perform work on the

22 contract; and’’.

23 (3) SECTION 15.—Section 15(o)(1) of the Small

24 Business Act (15 U.S.C. 644(o)(1)) is amended—
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1 (A) in subparagraph (A), by striking

2 ‘‘and’’ at the end;

3 (B) in subparagraph (B), by striking the

4 period at the end and inserting ‘‘; and’’; and

5 (C) by adding at the end the following:

6 ‘‘(C) notwithstanding subparagraphs (A) and

7 (B), in the case of a bundled contract—

8 ‘‘(i) the concern will perform work for at

9 least 33 percent of the aggregate dollar value of

10 the anticipated award;

11 ‘‘(ii) no other concern will perform a great12 er proportion of the work on that contract; and

13 ‘‘(iii) no other concern that is not a small

14 business concern will perform work on the con15 tract.’’.

16 (c) SMALL BUSINESS PROCUREMENT COMPETITION

17 PILOT PROGRAM.—

18 (1) DEFINITIONS.—In this subsection—

19 (A) the term ‘‘Administrator’’ means the

20 Administrator of the Small Business Adminis21 tration;

22 (B) the term ‘‘Federal agency’’ has the

23 same meaning as in section 3 of the Small

24 Business Act (15 U.S.C. 632);
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1 (C) the term ‘‘Program’’ means the Small

2 Business Procurement Competition Program es3 tablished under paragraph (2);

4 (D) the term ‘‘small business concern’’ has

5 the same meaning as in section 3 of the Small

6 Business Act (15 U.S.C. 632); and

7 (E) the term ‘‘small business-only joint

8 ventures’’ means a team described in section

9 15(e)(4) of the Small Business Act (15 U.S.C.

10 644(e)(4)) comprised of only small business

11 concerns.

12 (2) ESTABLISHMENT OF PROGRAM.—The Ad13 ministrator shall establish in the Small Business Ad14 ministration a pilot program to be known as the

15 ‘‘Small Business Procurement Competition Pro16 gram’’.

17 (3) PURPOSES OF PROGRAM.—The purposes of

18 the Program are—

19 (A) to encourage small business-only joint

20 ventures to compete for contract awards to ful21 fill the procurement needs of Federal agencies;

22 (B) to facilitate the formation of joint ven23 tures for procurement purposes among small

24 business concerns;
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1 (C) to engage in outreach to small busi2 ness-only joint ventures for Federal agency pro3 curement purposes; and

4 (D) to engage in outreach to the Director

5 of the Office of Small and Disadvantaged Busi6 ness Utilization and the procurement officer

7 within each Federal agency.

8 (4) OUTREACH.—Under the Program, the Ad9 ministrator shall establish procedures to conduct

10 outreach to small business concerns interested in

11 forming small business-only joint ventures for the

12 purpose of fulfilling procurement needs of Federal

13 agencies, subject to the rules of the Administrator,

14 in consultation with the heads of those Federal

15 agencies.

16 (5) REGULATORY AUTHORITY.—The Adminis17 trator shall promulgate such regulations as may be

18 necessary to carry out this subsection.

19 (6) SMALL BUSINESS ADMINISTRATION DATA20 BASE.—The Administrator shall establish and main21 tain a permanent database that identifies small busi22 ness concerns interested in forming small business23 only joint ventures, and shall make the database

24 available to each Federal agency and to small busi-
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1 ness concerns in electronic form to facilitate the for2 mation of small business-only joint ventures.

3 (7) TERMINATION OF PROGRAM.—The Program

4 (other than the database established under para5 graph (6)) shall terminate 3 years after the date of

6 enactment of this Act.

7 (8) REPORT TO CONGRESS.—Not later than 60

8 days before the date of termination of the Program,

9 the Administrator shall submit a report to Congress

10 on the results of the Program, together with any

11 recommendations for improvements to the Program

12 and its potential for use Governmentwide.

13 (9) RELATIONSHIP TO OTHER LAWS.—Nothing

14 in this subsection waives or modifies the applicability

15 of any other provision of law to procurements of any

16 Federal agency in which small business-only joint

17 ventures may participate under the Program.

18 SEC. 1069. CHEMICAL AND BIOLOGICAL PROTECTIVE

19 EQUIPMENT FOR MILITARY AND CIVILIAN

20 PERSONNEL OF THE DEPARTMENT OF DE21 FENSE.

22 (a) REPORT REQUIRED.—(1) Not later than 120

23 days after the date of the enactment of this Act, the Sec24 retary of Defense shall submit to Congress a report on

25 the requirements of the Department of Defense, including
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1 the reserve components, for chemical and biological protec2 tive equipment.

3 (2) The report shall set forth the following:

4 (A) A description of any current shortfalls in

5 requirements for chemical and biological protective

6 equipment, whether for individuals or units, for mili7 tary personnel.

8 (B) A plan for providing appropriate chemical

9 and biological protective equipment for all military

10 personnel and for all civilian personnel of the De11 partment of Defense.

12 (C) An assessment of the costs associated with

13 carrying out the plan under subparagraph (B).

14 (b) SENSE OF CONGRESS.—It is the sense of Con15 gress that the Secretary of Defense should consider uti16 lizing funds available to the Secretary for chemical and

17 biological defense programs, including funds available for

18 such program under this Act and funds available for such

19 programs under the 2001 Emergency Supplemental Ap20 propriations Act for Recovery from and Response to Ter21 rorist Attacks on the United States, to provide an appro22 priate level of protection from chemical and biological at23 tack, including protective equipment, for all military per24 sonnel and for all civilian personnel of the Department of
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1 Defense who are not currently protected from chemical or

2 biological attack.

3 SEC. 1070. AUTHORIZATION OF THE SALE OF GOODS AND

4 SERVICES BY THE NAVAL MAGAZINE, INDIAN

5 ISLAND.

6 The Secretary of the Navy may sell to a person out7 side the Department of Defense articles and services pro8 vided by the Naval Magazine, Indian Island facility that

9 are not available from any United States commercial

10 source: Provided, That a sale pursuant to this section shall

11 conform to the requirements of section 2563 (c) and (d)

12 of title 10, United States Code: Provided further, That the

13 proceeds from the sales of articles and services under this

14 section shall be credited to operation and maintenance

15 funds of the Navy, that are current when the proceeds

16 are received.

17 SEC. 1071. ASSISTANCE FOR FIREFIGHTERS.

18 Section 33(e) of the Federal Fire Prevention and

19 Control Act of 1974 (15 U.S.C. 2229(e)) is amended by

20 striking paragraph (2) and inserting the following new

21 paragraphs:

22 ‘‘(2) $600,000,000 for fiscal year 2002.

23 ‘‘(3) $800,000,000 for fiscal year 2003.

24 ‘‘(4) $1,000,000,000 for fiscal year 2004.’’.
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1 SEC. 1072. PLAN TO ENSURE EMBARKATION OF CIVILIAN

2 GUESTS DOES NOT INTERFERE WITH OPER3 ATIONAL READINESS AND SAFE OPERATION

4 OF NAVY VESSELS.

5 (a) PLAN.—The Secretary of the Navy shall, not later

6 than February 1, 2002, submit to Congress a plan to en7 sure that the embarkation of selected civilian guests does

8 not interfere with the operational readiness and safe oper9 ation of Navy vessels. The plan shall include, at a

10 minimum—

11 (1) procedures to ensure that guest embar12 kations are conducted only within the framework of

13 regularly scheduled operations and that underway

14 operations are not conducted solely to accommodate

15 nonofficial civilian guests,

16 (2) guidelines for the maximum number of

17 guests that can be embarked on the various classes

18 of Navy vessels,

19 (3) guidelines and procedures for supervising ci20 vilians operating or controlling any equipment on

21 Navy vessels,

22 (4) guidelines to ensure that proper standard

23 operating procedures are not hindered by activities

24 related to hosting civilians,

25 (5) any other guidelines or procedures the Sec26 retary shall consider necessary or appropriate.
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1 (b) DEFINITION.—For the purposes of this section,

2 civilian guests are defined as civilians invited to embark

3 on Navy ships solely for the purpose of furthering public

4 awareness of the Navy and its mission. It does not include

5 civilians conducting official business.

6 SEC. 1073. MODERNIZING AND ENHANCING MISSILE WING

7 HELICOPTER SUPPORT—STUDY AND PLAN.

8 (a) REPORT AND RECOMMENDATIONS.—With the

9 submission of the fiscal year 2003 budget request, the Sec10 retary of Defense shall provide to the congressional de11 fense committees a report and the Secretary’s rec12 ommendations on options for providing the helicopter sup13 port missions for the ICBM wings at Minot AFB, North

14 Dakota; Malmstrom AFB, Montana; and F.E. Warren

15 AFB, Wyoming, for as long as these missions are re16 quired.

17 (b) OPTIONS.—Options to be reviewed include—

18 (1) the Air Force’s current plan for replace19 ment or modernization of UH–1N helicopters cur20 rently flown by the Air Force at the missile wings;

21 (2) replacement of the UH–1N helicopters cur22 rently flown by the Air Force with UH–60 Black

23 Hawk helicopters, the UH–1Y, or another platform;

24 (3) replacement of UH–1N helicopters with

25 UH–60 helicopters and transition of the mission to
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1 the Army National Guard, as detailed in a Novem2 ber 2000 Air Force Space Command/Army National

3 Guard plan, ‘‘ARNG Helicopter Support to Air

4 Force Space Command’’;

5 (4) replacement of UH–1N helicopters with

6 UH–60 helicopters or another platform, and estab7 lishment of composite units combining active duty

8 Air Force and Army National Guard personnel; and

9 (5) other options as the Secretary deems appro10 priate.

11 (c) FACTORS.—Factors to be considered in this anal12 ysis include—

13 (1) any implications of transferring the heli14 copter support missions on the command and control

15 of and responsibility for missile field force protec16 tion;

17 (2) current and future operational require18 ments, and the capabilities of the UH–1N, the UH–

19 60 or other aircraft to meet them;

20 (3) cost, with particular attention to opportuni21 ties to realize efficiencies over the long run;

22 (4) implications for personnel training and re23 tention; and

24 (5) evaluation of the assumptions used in the

25 plan specified in subsection (b)(3).
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1 (d) CONSIDERATION.—The Secretary shall consider

2 carefully the views of the Secretary of the Army, Secretary

3 of the Air Force, Commander in Chief of the United

4 States Strategic Command, and the Chief of the National

5 Guard Bureau.

6 SEC. 1074. SENSE OF THE SENATE THAT THE SECRETARY

7 OF THE TREASURY SHOULD IMMEDIATELY

8 ISSUE SAVINGS BONDS, TO BE DESIGNATED

9 AS ‘‘UNITY BONDS’’, IN RESPONSE TO THE

10 TERRORIST ATTACKS AGAINST THE UNITED

11 STATES ON SEPTEMBER 11, 2001.

12 (a) FINDINGS.—The Senate finds that—

13 (1) a national tragedy occurred on September

14 11, 2001, whereby enemies of freedom and democ15 racy attacked the United States of America and in16 jured or killed thousands of innocent victims;

17 (2) the perpetrators of these reprehensible at18 tacks destroyed brick and mortar buildings, but the

19 American spirit and the American people have be20 come stronger as they have united in defense of

21 their country;

22 (3) the American people have responded with

23 incredible acts of heroism, kindness, and generosity;

24 (4) the outpouring of volunteers, blood donors,

25 and contributions of food and money demonstrates
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1 that America will unite to provide relief to the vic2 tims of these cowardly terrorist acts;

3 (5) the American people stand together to resist

4 all attempts to steal their freedom; and

5 (6) united, Americans will be victorious over

6 their enemies, whether known or unknown.

7 (b) SENSE OF THE SENATE.—It is the sense of the

8 Senate that—

9 (1) the Secretary of the Treasury should—

10 (A) immediately issue savings bonds, to be

11 designated as ‘‘Unity Bonds’’; and

12 (B) report quarterly to Congress on the

13 revenue raised from the sale of Unity Bonds;

14 and

15 (2) the proceeds from the sale of Unity Bonds

16 should be directed to the purposes of rebuilding

17 America and fighting the war on terrorism.

18 SEC. 1075. PERSONNEL PAY AND QUALIFICATIONS AU19 THORITY FOR DEPARTMENT OF DEFENSE

20 PENTAGON RESERVATION CIVILIAN LAW EN21 FORCEMENT AND SECURITY FORCE.

22 Section 2674(b) of title 10, United States Code, is

23 amended—

24 (1) by inserting ‘‘(1)’’ before the text in the

25 first paragraph of that subsection;
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1 (2) by redesignating paragraphs (1) and (2) as

2 subparagraphs (A) and (B), respectively; and

3 (3) by adding at the end the following new

4 paragraph:

5 ‘‘(2) For positions whose permanent duty station is

6 the Pentagon Reservation, the Secretary, in his sole and

7 exclusive discretion, may without regard to the pay provi8 sions of title 5, fix the rates of basic pay for such positions

9 occupied by civilian law enforcement and security per10 sonnel appointed under the authority of this section so as

11 to place such personnel on a comparable basis with other

12 similar Federal law enforcement and security organiza13 tions within the vicinity of the Pentagon Reservation, not

14 to exceed basic pay for personnel performing similar duties

15 in the Uniformed Division of the Secret Service or the

16 Park Police.

17 SEC. 1076. WAIVER OF VEHICLE WEIGHT LIMITS DURING

18 PERIODS OF NATIONAL EMERGENCY.

19 Section 127 of title 23, United States Code, is

20 amended by adding at the end the following:

21 ‘‘(h) WAIVER FOR A ROUTE IN STATE OF MAINE

22 DURING PERIODS OF NATIONAL EMERGENCY.—

23 ‘‘(1) IN GENERAL.—Notwithstanding any other

24 provision of this section, the Secretary, in consulta25 tion with the Secretary of Defense, may waive or
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1 limit the application of any vehicle weight limit es2 tablished under this section with respect to the por3 tion of Interstate Route 95 in the State of Maine be4 tween Augusta and Bangor for the purpose of mak5 ing bulk shipments of jet fuel to the Air National

6 Guard Base at Bangor International Airport during

7 a period of national emergency in order to respond

8 to the effects of the national emergency.

9 ‘‘(2) APPLICABILITY.—Emergency limits estab10 lished under paragraph (1) shall preempt any incon11 sistent State vehicle weight limits.’’.

12 TITLE XI—DEPARTMENT OF DE13 FENSE CIVILIAN PERSONNEL

14 POLICY

15 Subtitle A—Intelligence Personnel

16 SEC. 1101. AUTHORITY TO INCREASE MAXIMUM NUMBER

17 OF POSITIONS IN THE DEFENSE INTEL18 LIGENCE SENIOR EXECUTIVE SERVICE.

19 Section 1606(a) of title 10, United States Code, is

20 amended by striking ‘‘517.’’ and inserting the following:

21 ‘‘517, except that the Secretary may increase such max22 imum number by one position for each Senior Intelligence

23 Service position in the Central Intelligence Agency that

24 is permanently eliminated by the Director of Central Intel25 ligence after the date of the enactment of the National
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1 Defense Authorization Act for Fiscal Year 2002. In no

2 event may the number of positions in the Defense Intel3 ligence Senior Executive Service exceed 544.’’.

4 SEC. 1102. CONTINUED APPLICABILITY OF CERTAIN CIVIL

5 SERVICE PROTECTIONS FOR EMPLOYEES IN6 TEGRATED INTO THE NATIONAL IMAGERY

7 AND MAPPING AGENCY FROM THE DEFENSE

8 MAPPING AGENCY.

9 Section 1612(b) of title 10, United States Code, is

10 amended by adding at the end the following new para11 graph:

12 ‘‘(4)(A) If not otherwise applicable to an employee

13 described in subparagraph (B), subchapters II and IV of

14 chapter 75 of title 5 shall continue to apply to the em15 ployee for as long as the employee serves on and after Oc16 tober 1, 1996, without a break in service, as an employee

17 of the Department of Defense in any position, or succes18 sively in two or more positions, in the National Imagery

19 and Mapping Agency.

20 ‘‘(B) This paragraph applies to a person who—

21 ‘‘(i) on September 30, 1996, was employed as

22 an employee of the Department of Defense in a posi23 tion in the Defense Mapping Agency to whom sub24 chapters II and IV of title 5 applied; and
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1 ‘‘(ii) on October 1, 1996, became an employee

2 of the National Imagery and Mapping Agency under

3 paragraph 1601(a) of this title.’’.

4 Subtitle B—Matters Relating to

5 Retirement

6 SEC. 1111. FEDERAL EMPLOYMENT RETIREMENT CREDIT

7 FOR NONAPPROPRIATED FUND INSTRUMEN8 TALITY SERVICE.

9 (a) CIVIL SERVICE RETIREMENT SYSTEM.—(1) Sec10 tion 8332(b) of title 5, United States Code, is amended—

11 (A) by striking ‘‘and’’ at the end of paragraph

12 (15);

13 (B) by striking the period at the end of para14 graph (16) and inserting ‘‘; and’’;

15 (C) by inserting after paragraph (16) the fol16 lowing new paragraph:

17 ‘‘(17) service performed by any individual as an

18 employee of a nonappropriated fund instrumentality

19 of the Department of Defense or the Coast Guard

20 described in section 2105(c) of this title that is not

21 covered by paragraph (16), if the individual elects

22 (in accordance with regulations prescribed by the Of23 fice) at the time of separation from service to have

24 such service credited under this paragraph.’’;
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1 (D) in the last sentence, by inserting ‘‘or (17)’’

2 after ‘‘service of the type described in paragraph

3 (16)’’; and

4 (E) by inserting after the last sentence the fol5 lowing: ‘‘Service credited under paragraph (17) may

6 not also be credited under any other retirement sys7 tem provided for employees of a nonappropriated

8 fund instrumentality.’’.

9 (2) Section 8334 of such title is amended by adding

10 at the end the following new subsection:

11 ‘‘(o) Notwithstanding subsection (c), no deposit may

12 be made with respect to service credited under section

13 8332(b)(17) of this title.’’.

14 (3) Section 8339 of such title is amended by adding

15 at the end the following new subsection:

16 ‘‘(u) The annuity of an employee retiring under this

17 subchapter with service credited under section

18 8332(b)(17) of this title shall be reduced to the maximum

19 amount necessary to ensure that the present value of the

20 annuity payable to the employee is actuarially equivalent

21 to the present value of the annuity that would be payable

22 to the employee under this subchapter if it were computed

23 on the basis of service that does not include service cred24 ited under section 8332(b)(17) of this title. The amount

25 of the reduction shall be computed under regulations pre-
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1 scribed by the Office of Personnel Management for the

2 administration of this subsection.’’.

3 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—

4 (1) Section 8411 of such title is amended—

5 (A) in subsection (b)—

6 (i) by striking ‘‘and’’ at the end of para7 graph (4);

8 (ii) by striking the period at the end of

9 paragraph (5) and inserting ‘‘; and’’; and

10 (iii) by inserting after paragraph (5) the

11 following new paragraph:

12 ‘‘(6) service performed by any individual as an

13 employee of a nonappropriated fund instrumentality

14 of the Department of Defense or the Coast Guard

15 described in section 2105(c) of this title, if the indi16 vidual elects (in accordance with regulations pre17 scribed by the Office) at the time of separation from

18 service to have such service credited under this para19 graph.’’; and

20 (B) by adding at the end the following new sub21 section:

22 ‘‘(k)(1) The Office of Personnel Management shall

23 accept, for the purposes if this chapter, the certification

24 of the head of a nonappropriated fund instrumentality of

25 the United States concerning service of the type described
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1 in subsection (b)(6) that was performed for such non2 appropriated fund instrumentality.

3 ‘‘(2) Service credited under subsection (b)(6) may not

4 also be credited under any other retirement system pro5 vided for employees of a nonappropriated fund instrumen6 tality.’’.

7 (2)(A) Section 8422 of such title is amended by add8 ing at the end the following new subsection:

9 ‘‘(g) No deposit may be made with respect to service

10 credited under section 8411(b)(6) of this title.’’.

11 (B) The heading for such section is amended to read

12 as follows:

13 ‘‘§ 8422. Deductions from pay; contributions for other

14 service’’.

15 (C) The item relating to such section in the table of

16 contents at the beginning of chapter 84 of title 5, United

17 States Code, is amended to read as follows:

‘‘8422. Deductions from pay; contributions for other service.’’.

18 (3) Section 8415 of such title is amended by adding

19 at the end the following new subsection:

20 ‘‘(j) The annuity of an employee retiring under this

21 chapter with service credited under section 8411(b)(6) of

22 this title shall be reduced to the maximum amount nec23 essary to ensure that the present value of the annuity pay24 able to the employee under this subchapter is actuarially

25 equivalent to the present value of the annuity that would
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1 be payable to the employee under this subchapter if it were

2 computed on the basis of service that does not include

3 service credited under section 8411(b)(6) of this title. The

4 amount of the reduction shall be computed under regula5 tions prescribed by the Office of Personnel Management

6 for the administration of this subsection.’’.

7 (c) APPLICABILITY.—The amendments made by this

8 section shall apply only to separations from service as an

9 employee of the United States on or after the date of the

10 enactment of this Act.

11 SEC. 1112. IMPROVED PORTABILITY OF RETIREMENT COV12 ERAGE FOR EMPLOYEES MOVING BETWEEN

13 CIVIL SERVICE EMPLOYMENT AND EMPLOY14 MENT BY NONAPPROPRIATED FUND INSTRU15 MENTALITIES.

16 (a) CIVIL SERVICE RETIREMENT SYSTEM.—Section

17 8347(q) of title 5, United States Code, is amended—

18 (1) in paragraph (1)—

19 (A) by inserting ‘‘and’’ at the end of sub20 paragraph (A);

21 (B) by striking subparagraph (B); and

22 (C) by redesignating subparagraph (C) as

23 subparagraph (B); and

24 (2) in paragraph (2)(B)—

25 (A) by striking ‘‘vested’’; and
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1 (B) by striking ‘‘, as the term’’ and all

2 that follows through ‘‘such system’’.

3 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—

4 Section 8461(n) of such title is amended—

5 (1) in paragraph (1)—

6 (A) by inserting ‘‘and’’ at the end of sub7 paragraph (A);

8 (B) by striking subparagraph (B); and

9 (C) by redesignating subparagraph (C) as

10 subparagraph (B); and

11 (2) in paragraph (2)(B)—

12 (A) by striking ‘‘vested’’; and

13 (B) by striking ‘‘, as the term’’ and all

14 that follows through ‘‘such system’’.

15 SEC. 1113. REPEAL OF LIMITATIONS ON EXERCISE OF VOL16 UNTARY SEPARATION INCENTIVE PAY AU17 THORITY AND VOLUNTARY EARLY RETIRE18 MENT AUTHORITY.

19 Section 1153(b) of the Floyd D. Spence National De20 fense Authorization Act for Fiscal Year 2001 (as enacted

21 into law by Public Law 106–398; 114 Stat. 1654A–323)

22 is amended—

23 (1) in paragraph (1), by striking ‘‘Subject to

24 paragraph (2), the’’ and inserting ‘‘The’’;

25 (2) by striking paragraph (2); and
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1 (3) by redesignating subparagraphs (A) and

2 (B) as paragraphs (1) and (2), respectively.

3 Subtitle C—Other Matters

4 SEC. 1121. HOUSING ALLOWANCE FOR THE CHAPLAIN FOR

5 THE CORPS OF CADETS AT THE UNITED

6 STATES MILITARY ACADEMY.

7 Section 4337 of title 10, United States Code, is

8 amended by striking the second sentence and inserting the

9 following: ‘‘The chaplain is entitled to a housing allowance

10 equal to the basic allowance for housing that is applicable

11 for an officer in pay grade O–5 at the Academy under

12 section 403 of title 37, and to fuel and light for quarters

13 in kind.’’.

14 SEC. 1122. STUDY OF ADEQUACY OF COMPENSATION PRO15 VIDED FOR TEACHERS IN THE DEPARTMENT

16 OF DEFENSE OVERSEAS DEPENDENTS’

17 SCHOOLS.

18 (a) REQUIREMENT FOR STUDY.—The Comptroller

19 General shall carry out a study of the adequacy of the

20 pay and other elements of the compensation provided for

21 teachers in the defense dependents’ education system es22 tablished under the Defense Dependents’ Education Act

23 of 1978 (20 U.S.C. 921 et seq.).
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1 (b) SPECIFIC CONSIDERATIONS.—In carrying out the

2 study, the Comptroller General shall consider the following

3 issues:

4 (1) Whether the compensation is adequate for

5 recruiting and retaining high quality teachers.

6 (2) Whether any revision of the Defense De7 partment Overseas Teachers Pay and Personnel

8 Practices Act (20 U.S.C. 901 et seq) or the regula9 tions under that Act is advisable to address any

10 problems identified with respect to the recruitment

11 and retention of high quality teachers or for other

12 purposes.

13 (c) REPORT.—The Comptroller General shall submit

14 a report on the results of the study to Congress not later

15 than March 1, 2002. The report shall include the fol16 lowing:

17 (1) The Comptroller General’s conclusions on

18 the issues considered.

19 (2) Any recommendations for actions that the

20 Comptroller General considers appropriate.
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1 SEC. 1123. PILOT PROGRAM FOR PAYMENT OF RETRAINING

2 EXPENSES INCURRED BY EMPLOYERS OF

3 PERSONS INVOLUNTARILY SEPARATED FROM

4 EMPLOYMENT BY THE DEPARTMENT OF DE5 FENSE.

6 (a) AUTHORITY.—The Secretary of Defense may

7 carry out a pilot program in accordance with this section

8 to facilitate the reemployment of employees of the Depart9 ment of Defense who are being separated as described in

10 subsection (b) by providing employers outside the Federal

11 Government with retraining incentive payments to encour12 age those employers to hire, train, and retain such employ13 ees.

14 (b) COVERED EMPLOYEES.—A retraining incentive

15 payment may be made under subsection (c) with respect

16 to a person who—

17 (1) has been involuntarily separated from em18 ployment by the United States due to—

19 (A) a reduction in force (within the mean20 ing of chapter 35 of title 5, United States

21 Code); or

22 (B) a relocation resulting from a transfer

23 of function (within the meaning of section 3503

24 of title 5, United States Code), realignment, or

25 change of duty station; and

26 (2) when separated—
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1 (A) was employed without time limitation

2 in a position in the Department of Defense;

3 (B) had been employed in such position or

4 any combination of positions in the Department

5 of Defense for a continuous period of at least

6 one year;

7 (C) was not a reemployed annuitant under

8 subchapter III of chapter 83 of title 5, United

9 States Code, chapter 84 of such title, or an10 other retirement system for employees of the

11 Federal Government;

12 (D) was not eligible for an immediate an13 nuity under subchapter III of chapter 83 of

14 title 5, United States Code, or subchapter II of

15 chapter 84 of such title; and

16 (E) was not eligible for disability retire17 ment under any of the retirement systems re18 ferred to in subparagraph (C).

19 (c) RETRAINING INCENTIVE.—(1) Under the pilot

20 program, the Secretary may pay a retraining incentive to

21 any person outside the Federal Government that, pursu22 ant to an agreement entered into under subsection (d),

23 employs a former employee of the United States referred

24 to in subsection (b).
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1 (2) For employment of a former employee that is con2 tinuous for one year, the amount of any retraining incen3 tive paid to the employer under paragraph (1) shall be

4 the lesser of—

5 (A) the amount equal to the total cost incurred

6 by the employer for any necessary training provided

7 to the former employee in connection with the em8 ployment by that employer, as determined by the

9 Secretary taking into consideration a certification by

10 the employer under subsection (d); or

11 (B) $10,000.

12 (3) For employment of a former employee that termi13 nates within one year after the employment begins, the

14 amount of any retraining incentive paid to the employer

15 under paragraph (1) shall be equal to the amount that

16 bears the same ratio to the amount computed under para17 graph (2) as the period of continuous employment of the

18 employee by that employer bears to one year.

19 (4) The cost of the training of a former employee of

20 the United States for which a retraining incentive is paid

21 to an employer under this subsection may include any cost

22 incurred by the employer for training that commenced for

23 the former employee after the former employee, while still

24 employed by the Department of Defense, received a notice

25 of the separation from employment by the United States.
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1 (5) Not more than one retraining incentive may be

2 paid with respect to a former employee under this sub3 section.

4 (d) EMPLOYER AGREEMENT.—Under the pilot pro5 gram, the Secretary shall enter into an agreement with

6 an employer outside the Federal Government that provides

7 for the employer—

8 (1) to employ a person described in subsection

9 (b) for at least one year for a salary or rate of pay

10 that is mutually agreeable to the employer and such

11 person; and

12 (2) to certify to the Secretary the cost incurred

13 by the employer for any necessary training provided

14 to such person in connection with the employment of

15 the person by that employer.

16 (e) NECESSARY TRAINING.—For the purposes of this

17 section, the necessity of training provided a former em18 ployee of the Department of Defense shall be determined

19 under regulations prescribed by the Secretary of Defense

20 for the administration of this section.

21 (f) TERMINATION OF PILOT PROGRAM.—No retrain22 ing incentive may be paid under this section for training

23 commenced after September 30, 2005.
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1 SEC. 1124. PARTICIPATION OF PERSONNEL IN TECHNICAL

2 STANDARDS DEVELOPMENT ACTIVITIES.

3 Subsection (d) of section 12 of the National Tech4 nology Transfer and Advancement Act of 1995 (109 Stat.

5 783; 15 U.S.C. 272 note) is amended—

6 (1) by redesignating paragraph (4) as para7 graph (5); and

8 (2) by inserting after paragraph (3) the fol9 lowing new paragraph (4):

10 ‘‘(4) EXPENSES OF GOVERNMENT PER11 SONNEL.—Section 5946 of title 5, United States

12 Code, shall not apply with respect to any activity of

13 an employee of a Federal agency or department that

14 is determined by the head of that agency or depart15 ment as being an activity undertaken in carrying out

16 this subsection.’’.

17 SEC. 1125. AUTHORITY TO EXEMPT CERTAIN HEALTH CARE

18 PROFESSIONALS FROM EXAMINATION FOR

19 APPOINTMENT IN THE COMPETITIVE CIVIL

20 SERVICE.

21 (a) AUTHORITY TO EXEMPT.—Chapter 81 of title

22 10, United States Code, is amended by adding at the end

23 the following new section:
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1 ‘‘§ 1599d. Appointment in competitive civil service of

2 certain health care professionals: exemp3 tion from examination

4 ‘‘(a) AUTHORITY TO EXEMPT.—The Secretary of De5 fense may appoint in the competitive civil service without

6 regard to the provisions of subchapter I of chapter 33 of

7 title 5 (other than sections 3303, 3321, and 3328 of such

8 title) an individual who has a recognized degree or certifi9 cate from an accredited institution in a covered health10 care profession or occupation.

11 ‘‘(b) COVERED HEALTH-CARE PROFESSION OR OC12 CUPATION.—For purposes of subsection (a), a covered

13 health-care profession or occupation is any of the fol14 lowing:

15 ‘‘(1) Physician.

16 ‘‘(2) Dentist.

17 ‘‘(3) Podiatrist.

18 ‘‘(4) Optometrist.

19 ‘‘(5) Pharmacist.

20 ‘‘(6) Nurse.

21 ‘‘(7) Physician assistant.

22 ‘‘(8) Audiologist.

23 ‘‘(9) Expanded-function dental auxiliary.

24 ‘‘(10) Dental hygienist.

25 ‘‘(c) PREFERENCES IN HIRING.—In using the au26 thority provided by this section, the Secretary shall apply
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1 the principles of preference for the hiring of veterans and

2 other persons established in subchapter I of chapter 33

3 of title 5.’’.

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

5 at the beginning of such chapter is amended by adding

6 at the end the following new item:

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

7 SEC. 1126. PROFESSIONAL CREDENTIALS.

8 (a) IN GENERAL.—Chapter 57 of title 5, United

9 States Code, as amended by this Act, is amended by add10 ing at the end the following:

11 ‘‘§ 5758. Expenses for credentials

12 ‘‘(a) An agency may use appropriated or other avail13 able funds to pay for—

14 ‘‘(1) employee credentials, including profes15 sional accreditation, State-imposed and professional

16 licenses, and professional certifications; and

17 ‘‘(2) examinations to obtain such credentials.

18 ‘‘(b) No authority under subsection (a) may be exer19 cised on behalf of any employee occupying or seeking to

20 qualify for appointment to any position which is excepted

21 from the competitive service because of its confidential,

22 policy-determining, policy-making, or policy-advocating

23 character.’’.
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1 (b) TECHNICAL AND CONFORMING AMENDMENT.—

2 The table of sections for chapter 57 of title 5, United

3 States Code, is amended by adding at the end the fol4 lowing:

‘‘5758. Expenses for credentials.’’.

5 TITLE XII—MATTERS RELATING

6 TO OTHER NATIONS

7 Subtitle A—Cooperative Threat Re8 duction With States of the

9 Former Soviet Union

10 SEC. 1201. SPECIFICATION OF COOPERATIVE THREAT RE11 DUCTION PROGRAMS AND FUNDS.

12 (a) SPECIFICATION OF CTR PROGRAMS.—For pur13 poses of section 301 and other provisions of this Act, Co14 operative Threat Reduction programs are the programs

15 specified in section 1501(b) of the National Defense Au16 thorization Act for Fiscal Year 1997 (Public Law 104–

17 201; 110 Stat. 2731; 50 U.S.C. 2362 note).

18 (b) FISCAL YEAR 2002 COOPERATIVE THREAT RE19 DUCTION FUNDS DEFINED.—As used in this title, the

20 term ‘‘fiscal year 2002 Cooperative Threat Reduction

21 funds’’ means the funds appropriated pursuant to the au22 thorization of appropriations in section 301 for Coopera23 tive Threat Reduction programs.

24 (c) AVAILABILITY OF FUNDS.—Funds appropriated

25 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 paragraph (2), in any case in
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1 which the Secretary of Defense determines that it is nec2 essary to do so in the national interest, the Secretary may

3 obligate amounts appropriated for fiscal year 2002 for a

4 purpose listed in any of the paragraphs in subsection (a)

5 in excess of the amount specifically authorized for such

6 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 paragraph (7), (10) or (11) of subsection (a)

19 in excess of 115 percent of the amount specifically author20 ized for 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—
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1 (1) by inserting ‘‘(a) LIMITATION.—’’ before

2 ‘‘No fiscal year’’;

3 (2) in subsection (a), as so designated, by in4 serting before the period at the end the following:

5 ‘‘until the Secretary of Defense submits to Congress

6 a certification that there has been—

7 ‘‘(1) full and accurate disclosure by Russia of

8 the size of its existing chemical weapons stockpile;

9 ‘‘(2) a demonstrated annual commitment by

10 Russia to allocate at least $25,000,000 to chemical

11 weapons elimination;

12 ‘‘(3) development by Russia of a practical plan

13 for destroying its stockpile of nerve agents;

14 ‘‘(4) enactment of a law by Russia that pro15 vides for the elimination of all nerve agents at a sin16 gle site;

17 ‘‘(5) an agreement by Russia to destroy or con18 vert its chemical weapons production facilities at

19 Volgograd and Novocheboksark; and

20 ‘‘(6) a demonstrated commitment from the

21 international community to fund and build infra22 structure needed to support and operate the facil23 ity.’’; and

24 (3) by adding at the end the following new sub25 section:
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1 ‘‘(b) OMISSION OF CERTAIN INFORMATION.—The

2 Secretary may omit from the certification under sub3 section (a) the matter specified in paragraph (1) of that

4 subsection, and the certification with the matter so omit5 ted shall be effective for purposes of that subsection, if

6 the Secretary includes with the certification notice to Con7 gress of a determination by the Secretary that it is not

8 in the national security interests of the United States for

9 the matter specified in that paragraph to be included in

10 the certification, together with a justification of the deter11 mination.’’.

12 SEC. 1204. MANAGEMENT OF COOPERATIVE THREAT RE13 DUCTION PROGRAMS AND FUNDS.

14 (a) AUTHORITY OVER MANAGEMENT.—The Sec15 retary of Defense shall have authority, direction, and con16 trol over the management of Cooperative Threat Reduc17 tion programs and the funds for such programs.

18 (b) IMPLEMENTING AGENT.—The Defense Threat

19 Reduction Agency shall be the implementing agent of the

20 Department of Defense for the functions of the Depart21 ment relating to Cooperative Threat Reduction programs.

22 (c) SPECIFICATION OF FUNDS IN DEPARTMENT OF

23 DEFENSE BUDGET.—The budget justification materials

24 submitted to Congress in support of the budget of the De25 partment of Defense for each fiscal year (as submitted
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1 with the budget of the President under section 1105(a)

2 of title 31, United States Code) shall include amounts, if

3 any, requested for such fiscal year for Cooperative Threat

4 Reduction programs.

5 SEC. 1205. ADDITIONAL MATTER IN ANNUAL REPORT ON

6 ACTIVITIES AND ASSISTANCE UNDER COOP7 ERATIVE THREAT REDUCTION PROGRAMS.

8 Section 1308(c) of the Floyd D. Spence National De9 fense Authorization Act for Fiscal Year 2001 (at enacted

10 by Public Law 106–398; 114 Stat. 1654A–341) is amend11 ed by adding at the end of the following new paragraph:

12 ‘‘(6) A description of the amount of the finan13 cial commitment from the international community,

14 and from Russia, for the chemical weapons destruc15 tion facility located at Shchuch’ye, Russia, for the

16 fiscal year beginning in the year in which the report

17 is submitted.’’.

18 Subtitle B—Other Matters

19 SEC. 1211. SUPPORT OF UNITED NATIONS-SPONSORED EF20 FORTS TO INSPECT AND MONITOR IRAQI

21 WEAPONS ACTIVITIES.

22 (a) LIMITATION ON AMOUNT OF ASSISTANCE IN FIS23 CAL YEAR 2002—The total amount of the assistance for

24 fiscal year 2002 that is provided by the Secretary of De25 fense under section 1505 of the Weapons of Mass Destruc-
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1 tion Control Act of 1992 (22 U.S.C. 5859a) as activities

2 of the Department of Defense in support of activities

3 under that Act may not exceed $15,000,000.

4 (b) EXTENSION OF AUTHORITY TO PROVIDE ASSIST5 ANCE.—Subsection (f) of section 1505 of the Weapons of

6 Mass Destruction Control Act of 1992 (22 U.S.C. 5859a)

7 is amended by striking ‘‘2001’’ and inserting ‘‘2002’’.

8 SEC. 1212. COOPERATIVE RESEARCH AND DEVELOPMENT

9 PROJECTS WITH NATO AND OTHER COUN10 TRIES.

11 (a) ELIGIBILITY OF FRIENDLY FOREIGN COUN12 TRIES.—Section 2350a of title 10, United States Code,

13 is amended—

14 (1) in subsection (a)—

15 (A) by inserting ‘‘(1)’’ after ‘‘(a) AUTHOR16 ITY TO ENGAGE IN COOPERATIVE R&D

17 PROJECTS.—’;

18 (B) by striking ‘‘major allies of the United

19 States or NATO organizations’’ and inserting

20 ‘‘countries or organizations referred to in para21 graph (2)’’; and

22 (C) by adding at the end the following new

23 paragraph:

24 ‘‘(2) The countries and organizations with which the

25 Secretary may enter into a memorandum of agreement (or
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1 other formal agreement) under paragraph (1) are as fol2 lows:

3 ‘‘(A) The North Atlantic Treaty Organization.

4 ‘‘(B) A NATO organization.

5 ‘‘(C) A member nation of the North Atlantic

6 Treaty Organization.

7 ‘‘(D) A major non-NATO ally.

8 ‘‘(E) Any other friendly foreign country.’’;

9 (2) in subsection (b), by striking ‘‘its major

10 non-NATO allies’’ and inserting ‘‘a country or orga11 nization referred to in subsection (a)(2)’’;

12 (3) in subsection (d)—

13 (A) in paragraph (1), by striking ‘‘the

14 major allies of the United States’’ and inserting

15 ‘‘countries and organizations referred to in sub16 section (a)(2)’’; and

17 (B) in paragraph (2)—

18 (i) by striking ‘‘major ally of the

19 United States’’ and inserting ‘‘country or

20 organization referred to in subsection

21 (a)(2)’’; and

22 (ii) by striking ‘‘ally’s’’ and inserting

23 ‘‘country’s or organization’s’’;

24 (4) in subsection (e)(2)—
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1 (A) in subparagraph (A), by striking ‘‘one

2 or more of the major allies of the United

3 States’’ and inserting ‘‘any country or organiza4 tion referred to in subsection (a)(2)’’;

5 (B) in subparagraph (B), by striking

6 ‘‘major allies of the United States or NATO or7 ganizations’’ and inserting ‘‘countries and orga8 nizations referred to in subsection (a)(2)’’;

9 (C) in subparagraph (C), by striking

10 ‘‘major allies of the United States’’ and insert11 ing ‘‘countries and organizations referred to in

12 subsection (a)(2)’’; and

13 (D) in subparagraph (D), by striking

14 ‘‘major allies of the United States’’ and insert15 ing ‘‘countries and organizations referred to in

16 subsection (a)(2)’’;

17 (5) paragraphs (1)(A) and (4)(A) of subsection

18 (g), by striking ‘‘major allies of the United States

19 and other friendly foreign countries’’ and inserting

20 ‘‘countries referred to in subsection (a)(2)’’; and

21 (6) in subsection (i)—

22 (A) in paragraph (1), by striking ‘‘major

23 allies of the United States or NATO organiza24 tions’’ and inserting ‘‘countries and organiza25 tions referred to in subsection (a)(2)’’;
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1 (B) by striking paragraph (2); and

2 (C) by redesignating paragraph (4) as

3 paragraph (2), and by transferring that para4 graph, as so redesignated, within that sub5 section and inserting the paragraph after para6 graph (1).

7 (b) DELEGATION OF AUTHORITY TO DETERMINE

8 ELIGIBILITY OF PROJECTS.—Subsection (b)(2) of such

9 section is amended by striking ‘‘or the Under Secretary

10 of Defense for Acquisition and Technology’’ and inserting

11 ‘‘and to one other official of the Department of Defense’’.

12 (c) REVISION OF REQUIREMENT FOR ANNUAL RE13 PORT ON ELIGIBLE COUNTRIES.—Subsection (f)(2) of

14 such section is amended to read as follows:

15 ‘‘(2) Not later than January 1 of each year, the Sec16 retary of Defense shall submit to the Committees on

17 Armed Services and on Foreign Relations of the Senate

18 and to the Committees on Armed Services and on Inter19 national Relations of the House of Representatives a re20 port specifying—

21 ‘‘(A) the countries that are eligible to partici22 pate in a cooperative project agreement under this

23 section; and

24 ‘‘(B) the criteria used to determine the eligi25 bility of such countries.’’.
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1 (d) CONFORMING AMENDMENTS.—(1) The heading

2 of such section is amended to read as follows:

3 ‘‘§ 2350a. Cooperative research and development

4 agreements: NATO and foreign coun5 tries’’.

6 (2) The item relating to such section in the table of

7 sections at the beginning of subchapter II of chapter 138

8 of title 10, United States Code, is amended to read as

9 follows:

‘‘2350a. Cooperative research and development agreements: NATO and foreign

countries.’’.

10 SEC. 1213. INTERNATIONAL COOPERATIVE AGREEMENTS

11 ON USE OF RANGES AND OTHER FACILITIES

12 FOR TESTING OF DEFENSE EQUIPMENT.

13 (a) AUTHORITY.—Chapter 138 of title 10, United

14 States Code, is amended by adding at the end the fol15 lowing new section:

16 ‘‘§ 2350l. Cooperative use of ranges and other facili17 ties for testing of defense equipment:

18 agreements with foreign countries and

19 international organizations

20 ‘‘(a) AUTHORITY.—The Secretary of Defense, with

21 the concurrence of the Secretary of State, may enter into

22 a memorandum of understanding (or other formal agree23 ment) with a foreign country or international organization

24 to provide reciprocal access by the United States and such
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1 country or organization to each other’s ranges and other

2 facilities for testing of defense equipment.

3 ‘‘(b) PAYMENT OF COSTS.—A memorandum or other

4 agreement entered into under subsection (a) shall include

5 provisions for charging a user of a range or other facility

6 for test and evaluation services furnished by the officers,

7 employees, or governmental agencies of the supplying

8 country or international organization under the memo9 randum or other agreement. The provisions for charging

10 a user shall conform to the following pricing principles:

11 ‘‘(1) The user shall be charged the amount

12 equal to the direct costs incurred by the country or

13 international organization to supply the services.

14 ‘‘(2) The user may also be charged indirect

15 costs of the use of the range or other facility, but

16 only to the extent specified in the memorandum or

17 other agreement.

18 ‘‘(c) RETENTION OF FUNDS COLLECTED BY THE

19 UNITED STATES.—Amounts collected from the user of a

20 range or other facility of the United States under a memo21 randum of understanding or other formal agreement en22 tered into under subsection (a) shall be credited to the

23 appropriation from which the costs incurred by the United

24 States in providing support for the use of the range or

25 other facility by that user were paid.
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1 ‘‘(d) DELEGATION OF AUTHORITY.—The Secretary

2 of Defense may delegate only to the Deputy Secretary of

3 Defense and to one other official of the Department of

4 Defense authority to determine the appropriateness of the

5 amount of indirect costs charged the United States under

6 a memorandum or other agreement entered into under

7 subsection (a).

8 ‘‘(e) DEFINITIONS.—In this section:

9 ‘‘(1) The term ‘direct cost’, with respect to test10 ing and evaluation under a memorandum or other

11 agreement entered into under subsection (a)—

12 ‘‘(A) means any item of cost that—

13 ‘‘(i) is easily and readily identified to

14 a specific unit of work or output within the

15 range or other facility where the testing

16 and evaluation occurred under the memo17 randum or other agreement; and

18 ‘‘(ii) would not have been incurred if

19 the testing and evaluation had not taken

20 place; and

21 ‘‘(B) may include costs of labor, materials,

22 facilities, utilities, equipment, supplies, and any

23 other resources of the range or other facility

24 that are consumed or damaged in connection

25 with—
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1 ‘‘(i) the conduct of the test and eval2 uation; or

3 ‘‘(ii) the maintenance of the range or

4 other facility for the use of the country or

5 international organization under the

6 memorandum or other agreement.

7 ‘‘(2) The term ‘indirect cost’, with respect to

8 testing and evaluation under a memorandum or

9 other agreement entered into under subsection (a)—

10 ‘‘(A) means any item of cost that cannot

11 readily be identified directly to a specific unit of

12 work or output; and

13 ‘‘(B) may include general and administra14 tive expenses for such activities as supporting

15 base operations, manufacturing, supervision,

16 procurement of office supplies, and utilities that

17 are accumulated costs allocated among several

18 users.’’.

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

20 at the beginning of such chapter is amended by adding

21 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.’’.
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1 SEC. 1214. CLARIFICATION OF AUTHORITY TO FURNISH NU2 CLEAR TEST MONITORING EQUIPMENT TO

3 FOREIGN GOVERNMENTS.

4 (a) REDESIGNATION OF EXISTING AUTHORITY.—(1)

5 Section 2555 of title 10, United States Code, as added

6 by section 1203 of the Floyd D. Spence National Defense

7 Authorization Act for Fiscal Year 2001 (as enacted by

8 Public Law 106–398; 114 Stat. 1654A–324), is redesig9 nated as section 2565 of that title.

10 (2) The table of sections at the beginning of chapter

11 152 of that title is amended by striking the item relating

12 to section 2555, as so added, and inserting the following

13 new item:

‘‘2565. Nuclear test monitoring equipment: furnishing to foreign governments.’’.

14 (b) CLARIFICATION OF AUTHORITY.—Section 2565

15 of that title, as so redesignated by subsection (a), is fur16 ther amended—

17 (1) in subsection (a)—

18 (A) by striking ‘‘CONVEY OR’’ in the sub19 section heading and inserting ‘‘TRANSFER

20 TITLE TO OR OTHERWISE’’;

21 (B) in paragraph (1)—

22 (i) by striking ‘‘convey’’ and inserting

23 ‘‘transfer title’’; and

24 (ii) by striking ‘‘and’’ at the end;
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1 (C) by striking the period at the end of

2 paragraph (2) and inserting ‘‘; and’’; and

3 (D) by adding at the end the following new

4 paragraph:

5 ‘‘(3) inspect, test, maintain, repair, or replace

6 any such equipment.’’; and

7 (2) in subsection (b)—

8 (A) by striking ‘‘conveyed or otherwise pro9 vided’’ and inserting ‘‘provided to a foreign gov10 ernment’’;

11 (B) by inserting ‘‘and’’ at the end of para12 graph (1);

13 (C) by striking ‘‘; and’’ at the end of para14 graph (2) and inserting a period; and

15 (D) by striking paragraph (3).

16 SEC. 1215. PARTICIPATION OF GOVERNMENT CONTRAC17 TORS IN CHEMICAL WEAPONS INSPECTIONS

18 AT UNITED STATES GOVERNMENT FACILI19 TIES UNDER THE CHEMICAL WEAPONS CON20 VENTION.

21 (a) AUTHORITY.—Section 303(b)(2) of the Chemical

22 Weapons Convention Implementation Act of 1998 (22

23 U.S.C. 6723(b)(2)) is amended by inserting after ‘‘des24 ignation of employees of the Federal Government’’ the fol25 lowing: ‘‘(and, in the case of an inspection of a United
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1 States Government facility, the designation of contractor

2 personnel who shall be led by an employee of the Federal

3 Government)’’.

4 (b) CREDENTIALS.—Section 304(c) of such Act (22

5 U.S.C. 6724(c)) is amended by striking ‘‘Federal govern6 ment’’ and inserting ‘‘Federal Government (and, in the

7 case of an inspection of a United States Government facil8 ity, any accompanying contractor personnel)’’.

9 SEC. 1216. AUTHORITY TO TRANSFER NAVAL VESSELS TO

10 CERTAIN FOREIGN COUNTRIES.

11 (a) TRANSFERS BY GRANT.—The President is au12 thorized to transfer vessels to foreign countries on a grant

13 basis under section 516 of the Foreign Assistance Act of

14 1961 (22 U.S.C. 2321j) as follows:

15 (1) POLAND.—To the Government of Poland,

16 the OLIVER HAZARD PERRY class guided missile

17 frigate WADSWORTH (FFG 9).

18 (2) TURKEY.—To the Government of Turkey,

19 the KNOX class frigates CAPODANNO (FF 1093),

20 THOMAS C. HART (FF 1092), DONALD B.

21 BEARY (FF 1085), McCANDLESS (FF 1084),

22 REASONER (FF 1063), and BOWEN (FF 1079).

23 (b) TRANSFERS BY SALE.—The President is author24 ized to transfer vessels to foreign governments and foreign
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1 governmental entities on a sale basis under section 21 of

2 the Arms Export Control Act (22 U.S.C. 2761) as follows:

3 (1) TAIWAN.—To the Taipei Economic and

4 Cultural Representative Office in the United States

5 (which is the Taiwan instrumentality designated

6 pursuant to section 10(a) of the Taiwan Relations

7 Act), the KIDD class guided missile destroyers

8 KIDD (DDG 993), CALLAGHAN (DDG 994),

9 SCOTT (DDG 995), and CHANDLER (DDG 996).

10 (2) TURKEY.—To the Government of Turkey,

11 the OLIVER HAZARD PERRY class guided missile

12 frigates ESTOCIN (FFG 15) and SAMUEL

13 ELIOT MORISON (FFG 13).

14 (c) ADDITIONAL CONGRESSIONAL NOTIFICATION

15 NOT REQUIRED.—Except as provided in subsection (d),

16 the following provisions do not apply with respect to trans17 fers authorized by this section:

18 (1) Section 516(f) of the Foreign Assistance

19 Act of 1961 (22 U.S.C. 2321j(f)).

20 (2) Section 524 of the Foreign Operations, Ex21 port Financing, and Related Programs Appropria22 tion Act, 2001 (as enacted by Public Law 106–429;

23 114 Stat. 1900A–30) and any similar successor pro24 vision.
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1 (d) GRANTS NOT COUNTED IN ANNUAL TOTAL OF

2 TRANSFERRED EXCESS DEFENSE ARTICLES.—The value

3 of a vessel transferred to another country on a grant basis

4 under section 516 of the Foreign Assistance Act of 1961

5 (22 U.S.C. 2321j) pursuant to authority provided by sub6 section (a) shall not be counted for the purposes of sub7 section (g) of that section in the aggregate value of excess

8 defense articles transferred to countries under that section

9 in any fiscal year.

10 (e) COSTS OF TRANSFERS ON GRANT BASIS.—Any

11 expense incurred by the United States in connection with

12 a transfer authorized by this section shall be charged to

13 the recipient (notwithstanding section 516(e)(1) of the

14 Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)))

15 in the case of a transfer authorized to be made on a grant

16 basis under subsection (a).

17 (f) REPAIR AND REFURBISHMENT IN UNITED

18 STATES SHIPYARDS.—To the maximum extent prac19 ticable, the President shall require, as a condition of the

20 transfer of a vessel under this section, that the country

21 to which the vessel is transferred have such repair or re22 furbishment of the vessel as is needed, before the vessel

23 joins the naval forces of that country, performed at a ship24 yard located in the United States, including a United

25 States Navy shipyard.
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1 (g) EXPIRATION OF AUTHORITY.—The authority to

2 transfer a vessel under this section shall expire at the end

3 of the 2-year period beginning on the date of the enact4 ment of this Act.

5 SEC. 1217. ACQUISITION OF LOGISTICAL SUPPORT FOR SE6 CURITY FORCES.

7 Section 5 of the Multinational Force and Observers

8 Participation Resolution (22 U.S.C. 3424) is amended by

9 adding at the end the following new subsection:

10 ‘‘(d)(1) The United States may use contractors to

11 provide logistical support to the Multinational Force and

12 Observers under this section in lieu of providing such sup13 port through a logistical support unit composed of mem14 bers of the United States Armed Forces.

15 ‘‘(2) Notwithstanding subsections (a) and (b) and

16 section 7(b), support by a contractor under this subsection

17 may be provided without reimbursement whenever the

18 President determines that such action enhances or sup19 ports the national security interests of the United

20 States.’’.
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1 SEC. 1218. PERSONAL SERVICES CONTRACTS TO BE PER2 FORMED BY INDIVIDUALS OR ORGANIZA3 TIONS ABROAD.

4 Section 2 of the State Department Basic Authorities

5 Act of 1956 (22 U.S.C. 2669) is amended by adding at

6 the end the following:

7 ‘‘(n) exercise the authority provided in sub8 section (c), upon the request of the Secretary of De9 fense or the head of any other department or agency

10 of the United States, to enter into personal service

11 contracts with individuals to perform services in sup12 port of the Department of Defense or such other de13 partment or agency, as the case may be.’’.

14 SEC. 1219. ALLIED DEFENSE BURDENSHARING.

15 It is the sense of the Senate that—

16 (1) the efforts of the President to increase de17 fense burdendsharing by allied and friendly nations

18 deserve strong support;

19 (2) host nations support agreements with those

20 nations in which United States military personnel

21 are assigned to permanent duty ashore should be ne22 gotiated consistent with section 1221(a)(1) of the

23 National Defense Authorization Act for Fiscal Year

24 1998 (P.L. 105–85) which sets forth a goal of ob25 taining financial contributions from host nations

26 that amount to 75 percent of the nonpersonnel costs
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1 incurred by the United States Government for sta2 tioning military personnel in those nations.

3 SEC. 1220. RELEASE OF RESTRICTION ON USE OF CERTAIN

4 VESSELS PREVIOUSLY AUTHORIZED TO BE

5 SOLD.

6 Section 3603(a) of the Strom Thurmond National

7 Defense Authorization Act for Fiscal Year 1999 (Public

8 Law 105–261; 112 Stat. 2273) is amended by striking

9 ‘‘for full use as an oiler’’.

10 TITLE XIII—CONTINGENT AU11 THORIZATION OF APPRO12 PRIATIONS

13 SEC. 1301. AUTHORIZATION OF APPROPRIATIONS CONTIN14 GENT ON INCREASED ALLOCATION OF NEW

15 BUDGET AUTHORITY.

16 (a) IN GENERAL.—Notwithstanding any other provi17 sion of this Act, the total amounts authorized to be appro18 priated under subtitle A of title I, sections 201, 301, and

19 302, and division B are authorized to be appropriated in

20 accordance with those provisions without reduction under

21 section 1302 only if—

22 (1) the Chairman of the Committee on the

23 Budget of the Senate—

24 (A) determines, for the purposes of section

25 217(b) of the Concurrent Resolution on the
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1 Budget for Fiscal Year 2002, that the appro2 priation of all of the amounts specified in sec3 tion 1302 would not, when taken together with

4 all other previously enacted legislation (except

5 for legislation enacted pursuant to section 211

6 of such concurrent resolution) reduce the on7 budget surplus below the level of the Medicare

8 Hospital Insurance Trust Fund surplus in any

9 fiscal year covered by the concurrent resolution;

10 and

11 (B) increases the allocation of new budget

12 authority for defense spending in accordance

13 with section 217(a) of the Concurrent Resolu14 tion on the Budget for Fiscal Year 2002; or

15 (2) the Senate—

16 (A) by a vote of at least three-fifths of the

17 Members of the Senate duly chosen and sworn,

18 waives the point of order under section 302(f)

19 of the Congressional Budget and Impoundment

20 Control Act of 1974 with respect to an appro21 priation bill or resolution that provides new

22 budget authority for the National Defense

23 major functional category (050) in excess of the

24 amount specified for the defense category in
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1 section 203(c)(1)(A) of the Concurrent Resolu2 tion on the Budget for Fiscal Year 2002; and

3 (B) approves the appropriation bill or reso4 lution.

5 (b) FULL OR PARTIAL AUTHORIZATION.—(1) If the

6 total amount of the new budget authority allocated or

7 available for the National Defense major functional cat8 egory (050) for fiscal year 2002 is increased as described

9 in subsection (a) by at least $18,448,601,000 over the

10 amount of the new budget authority allocated for that cat11 egory for fiscal year 2002 by the Concurrent Resolution

12 on the Budget for Fiscal Year 2002, the reductions under

13 section 1302 shall not be made.

14 (2) If the total amount of new budget authority allo15 cated or available for the National Defense major func16 tional category (050) for fiscal year 2002 is increased as

17 described in subsection (a) by less than $18,448,601,000

18 over the amount of the new budget authority allocated for

19 that category for fiscal year 2002 by the Concurrent Reso20 lution on the Budget for Fiscal Year 2002, each of the

21 total amounts referred to in section 1302 shall be reduced

22 by a proportionate amount of the difference between

23 $18,448,601,000 and the amount of the increase in the

24 allocated new budget authority.
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1 SEC. 1302. REDUCTIONS.

2 Until such time as the amount of the new budget au3 thority allocated or available for the National Defense

4 major functional category (050) for fiscal year 2002 is in5 creased as described in section 1301(a), the total amounts

6 authorized to be appropriated by provisions of this Act are

7 reduced as follows:

8 (1) For the total amount authorized to be ap9 propriated for procurement by subtitle A of title I,

10 the reduction is $2,100,854,000.

11 (2) For the total amount authorized to be ap12 propriated for research, development, test and eval13 uation by section 201, the reduction is

14 $3,033,434,000.

15 (3) For the total amount authorized to be ap16 propriated for operation and maintenance by section

17 301, the reduction is $8,737,773,000.

18 (4) For the total amount authorized to be ap19 propriated for working capital and revolving funds

20 by section 302, the reduction is $1,018,394,000.

21 (5) For the total amount authorized to be ap22 propriated by division B, the reduction is

23 $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).

Passed the Senate October 2, 2001.

Attest:

Secretary.
107TH CONGRESS

1ST SESSION S. 1419

AN ACT

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.