```

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2550 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 544
106th CONGRESS
  2d Session
                                S. 2550

     To authorize appropriations for fiscal year 2001 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 12, 2000

   Mr. Warner, from the Committee on Armed Services, reported, under 
 authority of the order of the Senate of May 11th, 2000, the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL

 
     To authorize appropriations for fiscal year 2001 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Defense Authorization 
Act for Fiscal Year 2001''.

SEC. 2. TABLE OF CONTENTS.

    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 demilitarization program.
Sec. 107. Defense health programs.
                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for certain programs.
Sec. 112. Reports and limitations relating to Army transformation.
                       Subtitle C--Navy Programs

Sec. 121. CVNX-1 nuclear aircraft carrier program.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. Virginia class submarine program.
Sec. 124. ADC(X) ship program.
Sec. 125. Refueling and complex overhaul program of the CVN-69 nuclear 
                            aircraft carrier.
                     Subtitle D--Air Force Programs

Sec. 131. Repeal of requirement for annual report on B-2 bomber 
                            aircraft program.
                       Subtitle E--Other Matters

Sec. 141. Pueblo Chemical Depot chemical agent and munitions 
                            destruction technologies.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Fiscal year 2002 joint field experiment.
Sec. 212. Nuclear aircraft carrier design and production modeling.
Sec. 213. DD-21 class destroyer program.
Sec. 214. F-22 aircraft program.
Sec. 215. Joint strike fighter program.
Sec. 216. Global Hawk high altitude endurance unmanned aerial vehicle.
Sec. 217. Unmanned advanced capability aircraft and ground combat 
                            vehicles.
Sec. 218. Army space control technology development.
Sec. 219. Russian American observation satellites program.
Sec. 220. Joint biological defense program.
Sec. 221. Report on biological warfare defense vaccine research and 
                            development programs.
                       Subtitle C--Other Matters

Sec. 241. Mobile offshore base.
Sec. 242. Air Force science and technology planning.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Impact aid for children with disabilities.
Sec. 312. Joint warfighting capabilities assessment teams.
             Subtitle C--Humanitarian and Civic Assistance

Sec. 321. Increased authority to provide health care services as 
                            humanitarian and civic assistance.
Sec. 322. Use of humanitarian and civic assistance funding for pay and 
                            allowances of Special Operations Command 
                            Reserves furnishing demining training and 
                            related assistance as humanitarian 
                            assistance.
        Subtitle D--Department of Defense Industrial Facilities

Sec. 331. Codification and improvement of armament retooling and 
                            manufacturing support programs.
Sec. 332. Centers of Industrial and Technical Excellence.
Sec. 333. Effects of outsourcing on overhead costs of Centers of 
                            Industrial and Technical Excellence and 
                            ammunition plants.
Sec. 334. Revision of authority to waive limitation on performance of 
                            depot-level maintenance.
                  Subtitle E--Environmental Provisions

Sec. 341. Environmental restoration accounts.
Sec. 342. Payment of fines and penalties for environmental compliance 
                            violations.
Sec. 343. Annual reports under Strategic Environmental Research and 
                            Development Program.
Sec. 344. Modification of authority for indemnification of transferees 
                            of closing defense property.
Sec. 345. Payment of fines or penalties imposed for environmental 
                            compliance violations at certain Department 
                            of Defense facilities.
Sec. 346. Reimbursement for certain costs in connection with the Former 
                            Nansemond Ordnance Depot Site, Suffolk, 
                            Virginia.
Sec. 347. Environmental restoration activities.
Sec. 348. Ship disposal project.
Sec. 349. Report on Defense Environmental Security Corporate 
                            Information Management program.
Sec. 350. Report on Plasma Energy Pyrolysis System.
                       Subtitle F--Other Matters

Sec. 361. Effects of worldwide contingency operations on readiness of 
                            certain military aircraft and equipment.
Sec. 362. Realistic budgeting for readiness requirements of the Army.
Sec. 363. Additions to plan for ensuring visibility over all in-transit 
                            end items and secondary items.
Sec. 364. Performance of emergency response functions at chemical 
                            weapons storage installations.
Sec. 365. Congressional notification of use of radio frequency spectrum 
                            by a system entering engineering and 
                            manufacturing development.
Sec. 366. Monitoring of value of performance of Department of Defense 
                            functions by workforces selected from 
                            between public and private workforces.
Sec. 367. Suspension of reorganization of Naval Audit Service.
Sec. 368. Investment of commissary trust revolving fund.
Sec. 369. Economic procurement of distilled spirits.
Sec. 370. Resale of armor-piercing ammunition disposed of by the Army.
Sec. 371. Damage to aviation facilities caused by alkali silica 
                            reactivity.
Sec. 372. Reauthorization of pilot program for acceptance and use of 
                            landing fees charged for use of domestic 
                            military airfields by civil aircraft.
Sec. 373. Reimbursement by civil air carriers for support provided at 
                            Johnston Atoll.
Sec. 374. Review of costs of maintaining historical properties.
Sec. 375. Extension of authority to sell certain aircraft for use in 
                            wildfire suppression.
Sec. 376. Overseas airlift service on Civil Reserve Air Fleet aircraft.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
                       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 2001 limitation on non-dual status technicians.
Sec. 415. Increase in numbers of members in certain grades authorized 
                            to be on active duty in support of the 
                            reserves.
       Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Suspension of strength limitations during war or national 
                            emergency.
Sec. 422. Exclusion of certain reserve component members on active duty 
                            for more than 180 days from active 
                            component end strengths.
Sec. 423. Exclusion of Army and Air Force medical and dental officers 
                            from limitation on strengths of reserve 
                            commissioned officers in grades below 
                            brigadier general.
Sec. 424. Authority for temporary increases in number of reserve 
                            personnel serving on active duty or full-
                            time National Guard duty in certain grades.
Sec. 425. Temporary exemption of Director of the National Security 
                            Agency from limitations on number of Air 
                            Force officers above major general.
              Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Eligibility of Army Reserve colonels and brigadier generals 
                            for position vacancy promotions.
Sec. 502. Promotion zones for Coast Guard Reserve officers.
Sec. 503. Time for release of officer promotion selection board 
                            reports.
Sec. 504. Clarification of authority for posthumous commissions and 
                            warrants.
Sec. 505. Inapplicability of active-duty list promotion, separation, 
                            and involuntary retirement authorities to 
                            reserve general and flag officers serving 
                            in certain positions designated for reserve 
                            officers by the Chairman of the Joint 
                            Chiefs of Staff.
Sec. 506. Review of actions of selection boards.
Sec. 507. Extension to all Air Force biomedical sciences officers of 
                            authority to retain until specified age.
Sec. 508. Termination of application requirement for consideration of 
                            officers for continuation on the Reserve 
                            Active-Status List.
Sec. 509. Technical corrections relating to retired grade of reserve 
                            commissioned officers.
Sec. 510. Grade of chiefs of reserve components and directors of 
                            National Guard components.
                  Subtitle B--Joint Officer Management

Sec. 521. Joint specialty designations and additional identifiers.
Sec. 522. Promotion objectives.
Sec. 523. Education.
Sec. 524. Length of joint duty assignment.
Sec. 525. Annual report to Congress.
Sec. 526. Multiple assignments considered as single joint duty 
                            assignment.
Sec. 527. Joint duty requirement for promotion to one-star grades.
                   Subtitle C--Education and Training

Sec. 541. Eligibility of children of Reserves for presidential 
                            appointment to service academies.
Sec. 542. Selection of foreign students to receive instruction at 
                            service academies.
Sec. 543. Repeal of contingent funding increase for Junior Reserve 
                            Officers Training Corps.
Sec. 544. Revision of authority for Marine Corps Platoon Leaders Class 
                            Tuition Assistance Program.
               Subtitle D--Matters Relating to Recruiting

Sec. 551. Army recruiting pilot programs.
Sec. 552. Enhancement of the joint and service recruitment market 
                            research and advertising programs.
Sec. 553. Access to secondary schools for military recruiting purposes.
                       Subtitle E--Other Matters

Sec. 561. Authority for award of Medal of Honor to certain specified 
                            persons.
Sec. 562. Waiver of time limitations for award of certain decorations 
                            to certain persons.
Sec. 563. Ineligibility for involuntary separation pay upon declination 
                            of selection for continuation on active 
                            duty.
Sec. 564. Recognition by States of military testamentary instruments.
Sec. 565. Sense of Congress on the court-martial conviction of Captain 
                            Charles Butler McVay, Commander of the 
                            U.S.S. Indianapolis, and on the courageous 
                            service of its crew.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2001.
Sec. 602. Corrections for basic pay tables.
Sec. 603. Pay in lieu of allowance for funeral honors duty.
Sec. 604. Clarification of service excluded in computation of 
                            creditable service as a Marine Corps 
                            officer.
Sec. 605. Calculation of basic allowance for housing.
Sec. 606. Eligibility of members in grade E-4 to receive basic 
                            allowance for housing while on sea duty.
Sec. 607. Personal money allowance for the senior enlisted members of 
                            the Armed Forces.
Sec. 608. Increased uniform allowances for officers.
Sec. 609. Cabinet-level authority to prescribe requirements and 
                            allowance for clothing of enlisted members.
           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 authorities relating to payment of other bonuses 
                            and special pays.
Sec. 614. Consistency of authorities for special pay for reserve 
                            medical and dental officers.
Sec. 615. Special pay for physician assistants of the Coast Guard.
Sec. 616. Authorization of special pay and accession bonus for pharmacy 
                            officers.
Sec. 617. Correction of references to Air Force veterinarians.
Sec. 618. Entitlement of active duty officers of the Public Health 
                            Service Corps to special pays and bonuses 
                            of health professional officers of the 
                            Armed Forces.
Sec. 619. Career sea pay.
Sec. 620. Increased maximum rate of special duty assignment pay.
Sec. 621. Expansion of applicability of authority for critical skills 
                            enlistment bonus to include all Armed 
                            Forces.
            Subtitle C--Travel and Transportation Allowances

Sec. 631. Advance payments for temporary lodging of members and 
                            dependents.
Sec. 632. Incentive for shipping and storing household goods in less 
                            than average weights.
Sec. 633. Expansion of funded student travel.
Sec. 634. Benefits for members not transporting personal motor vehicles 
                            overseas.
                    Subtitle D--Retirement Benefits

Sec. 641. Exception to high-36 month retired pay computation for 
                            members retired following a disciplinary 
                            reduction in grade.
Sec. 642. Automatic participation in reserve component Survivor Benefit 
                            Plan unless declined with spouse's consent.
Sec. 643. Participation in Thrift Savings Plan.
Sec. 644. Retirement from active reserve service performed after 
                            regular retirement.
Sec. 645. Same treatment for Federal judges as for other Federal 
                            officials regarding payment of military 
                            retired pay.
                       Subtitle E--Other Matters

Sec. 651. Reimbursement of recruiting and ROTC personnel for parking 
                            expenses.
Sec. 652. Extension of deadline for filing claims associated with 
                            capture and internment of certain persons 
                            by North Vietnam.
Sec. 653. Settlement of claims for payments for unused accrued leave 
                            and for retired pay.
Sec. 654. Eligibility of certain members of the Individual Ready 
                            Reserve for Servicemembers' Group Life 
                            Insurance.
Sec. 655. Authority to pay gratuity to certain veterans of Bataan and 
                            Corregidor.
                         TITLE VII--HEALTH CARE

                     Subtitle A--Senior Health Care

Sec. 701. Extension of TRICARE Senior Supplement demonstration program.
Sec. 702. TRICARE Senior Prime demonstration program.
Sec. 703. Extension and expansion of demonstration project for 
                            participation of uniformed services 
                            personnel in the Federal Employees Health 
                            Benefits program.
Sec. 704. Implementation of redesigned pharmacy system.
                      Subtitle B--TRICARE Program

Sec. 711. Additional beneficiaries under TRICARE Prime Remote program 
                            in CONUS.
Sec. 712. Elimination of copayments for immediate family.
Sec. 713. Improvement in business practices in the administration of 
                            the TRICARE program.
   Subtitle C--Joint Initiatives With Department of Veterans Affairs

Sec. 721. Tracking patient safety in military and veterans health care 
                            systems.
Sec. 722. Pharmaceutical identification technology.
Sec. 723. Medical informatics.
                       Subtitle D--Other Matters

Sec. 731. Permanent authority for certain pharmaceutical benefits.
Sec. 732. Provision of domiciliary and custodial care for CHAMPUS 
                            beneficiaries.
Sec. 733. Medical and dental care for Medal of Honor recipients and 
                            their dependents.
Sec. 734. School-required physical examinations for certain minor 
                            dependents.
Sec. 735. Two-year extension of dental and medical benefits for 
                            surviving dependents of certain deceased 
                            members.
Sec. 736. Extension of authority for contracts for medical services at 
                            locations outside medical treatment 
                            facilities.
Sec. 737. Transition of chiropractic health care demonstration program 
                            to permanent status.
Sec. 738. Use of information technology for enhancement of delivery of 
                            administrative services under the Defense 
                            Health Program.
Sec. 739. Patient care reporting and management system.
Sec. 740. Health care management demonstration program.
Sec. 741. Studies of accrual financing for health care for military 
                            retirees.
Sec. 742. Augmentation of Army Medical Department by reserve officers 
                            of the Public Health Service.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Sec. 801. Improvements in procurements of services.
Sec. 802. Addition of threshold value requirement for applicability of 
                            a reporting requirement relating to 
                            multiyear contract.
Sec. 803. Planning for the acquisition of information systems.
Sec. 804. Tracking of information technology purchases.
Sec. 805. Repeal of requirement for contractor assurances regarding the 
                            completeness, accuracy, and contractual 
                            sufficiency of technical data provided by 
                            the contractor.
Sec. 806. Extension of authority for Department of Defense acquisition 
                            pilot programs.
Sec. 807. Clarification and extension of authority to carry out certain 
                            prototype projects.
Sec. 808. Clarification of authority of Comptroller General to review 
                            records of participants in certain 
                            prototype projects.
Sec. 809. Eligibility of small business concerns owned and controlled 
                            by women for assistance under the Mentor-
                            Protege Program.
Sec. 810. Navy-Marine Corps intranet acquisition.
Sec. 811. Qualifications required for employment and assignment in 
                            contracting positions.
Sec. 812. Defense acquisition and support workforce.
Sec. 813. Financial analysis of use of dual rates for quantifying 
                            overhead costs at Army industrial 
                            facilities.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Repeal of limitation on major Department of Defense 
                            headquarters activities personnel.
Sec. 902. Overall supervision of Department of Defense activities for 
                            combating terrorism.
Sec. 903. National Defense Panel 2001.
Sec. 904. Quadrennial National Defense Panel.
Sec. 905. Inspector General investigations of prohibited personnel 
                            actions.
Sec. 906. Network centric warfare.
Sec. 907. Additional duties for the Commission To Assess United States 
                            National Security Space Management and 
                            Organization.
Sec. 908. Special authority for administration of Navy Fisher Houses.
Sec. 909. Organization and management of the Civil Air Patrol.
Sec. 910. Responsibility for the National Guard Challenge Program.
Sec. 911. Supervisory control of Armed Forces Retirement Home Board by 
                            Secretary of Defense.
Sec. 912. Consolidation of certain Navy gift funds.
Sec. 913. Temporary authority to dispose of a gift previously accepted 
                            for the Naval Academy.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of emergency supplemental appropriations for 
                            fiscal year 2000.
Sec. 1003. United States contribution to NATO common-funded budgets in 
                            fiscal year 2001.
Sec. 1004. Annual OMB/CBO joint report on scoring of budget outlays.
Sec. 1005. Prompt payment of contract vouchers.
Sec. 1006. Repeal of certain requirements relating to timing of 
                            contract payments.
Sec. 1007. Plan for prompt posting of contractual obligations.
Sec. 1008. Plan for electronic submission of documentation supporting 
                            claims for contract payments.
Sec. 1009. Administrative offsets for overpayment of transportation 
                            costs.
                  Subtitle B--Counter-Drug Activities

Sec. 1011. Extension and increase of authority to provide additional 
                            support for counter-drug activities.
Sec. 1012. Recommendations on expansion of support for counter-drug 
                            activities.
Sec. 1013. Review of riverine counter-drug program.
                      Subtitle C--Strategic Forces

Sec. 1015. Revised nuclear posture review.
Sec. 1016. Plan for the long-term sustainment and modernization of 
                            United States strategic nuclear forces.
Sec. 1017. Correction of scope of waiver authority for limitation on 
                            retirement or dismantlement of strategic 
                            nuclear delivery systems.
Sec. 1018. Report on the defeat of hardened and deeply buried targets.
            Subtitle D--Miscellaneous Reporting Requirements

Sec. 1021. Annual report of the Chairman of the Joint Chiefs of Staff 
                            on combatant command requirements.
Sec. 1022. Semiannual report on Joint Requirements Oversight Council.
Sec. 1023. Preparedness of military installation first responders for 
                            incidents involving weapons of mass 
                            destruction.
Sec. 1024. Date of submittal of reports on shortfalls in equipment 
                            procurement and military construction for 
                            the reserve components in future-years 
                            defense programs.
Sec. 1025. Management review of Defense Logistics Agency.
Sec. 1026. Management review of Defense Information Systems Agency.
                    Subtitle E--Information Security

Sec. 1041. Institute for Defense Computer Security and Information 
                            Protection.
Sec. 1042. Information security scholarship program.
Sec. 1043. Process for prioritizing background investigations for 
                            security clearances for Department of 
                            Defense personnel.
Sec. 1044. Authority to withhold certain sensitive information from 
                            public disclosure.
Sec. 1045. Protection of operational files of the Defense Intelligence 
                            Agency.
                       Subtitle F--Other Matters

Sec. 1051. Commemoration of the fiftieth anniversary of the Uniform 
                            Code of Military Justice.
Sec. 1052. Technical corrections.
Sec. 1053. Eligibility of dependents of American Red Cross employees 
                            for enrollment in Department of Defense 
                            domestic dependent schools in Puerto Rico.
Sec. 1054. Grants to American Red Cross for Armed Forces emergency 
                            services.
Sec. 1055. Transit pass program for certain Department of Defense 
                            personnel.
Sec. 1056. Fees for providing historical information to the public.
Sec. 1057. Access to criminal history record information for national 
                            security purposes.
Sec. 1058. Sense of Congress on the naming of the CVN-77 aircraft 
                            carrier.
Sec. 1059. Donation of Civil War cannon.
Sec. 1060. Maximum size of parcel post packages transported overseas 
                            for Armed Forces post offices.
       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Sec. 1101. Computer/electronic accommodations program.
Sec. 1102. Additional special pay for foreign language proficiency 
                            beneficial for United States national 
                            security interests.
Sec. 1103. Increased number of positions authorized for the Defense 
                            Intelligence Senior Executive Service.
Sec. 1104. Extension of authority for tuition reimbursement and 
                            training for civilian employees in the 
                            defense acquisition workforce.
Sec. 1105. Work safety demonstration program.
Sec. 1106. Employment and compensation of employees for temporary 
                            organizations established by law or 
                            Executive order.
Sec. 1107. Extension of authority for voluntary separations in 
                            reductions in force.
Sec. 1108. Electronic maintenance of performance appraisal systems.
Sec. 1109. Approval authority for cash awards in excess of $10,000.
Sec. 1110. Leave for crews of certain vessels.
Sec. 1111. Life insurance for emergency essential Department of Defense 
                            employees.
Sec. 1112. Civilian personnel services public-private competition pilot 
                            program.
Sec. 1113. Extension, expansion, and revision of authority for 
                            experimental personnel program for 
                            scientific and technical personnel.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Authority to transfer naval vessels to certain foreign 
                            countries.
Sec. 1202. Support of United Nations-sponsored efforts to inspect and 
                            monitor Iraqi weapons activities.
Sec. 1203. Repeal of restriction preventing cooperative airlift support 
                            through acquisition and cross-servicing 
                            agreements.
Sec. 1204. Western Hemisphere Institute for Professional Education and 
                            Training.
Sec. 1205. Biannual report on Kosovo peacekeeping.
Sec. 1206. Mutual assistance for monitoring test explosions of nuclear 
                            devices.
Sec. 1207. Annual report on activities and assistance under Cooperative 
                            Threat Reduction programs.
Sec. 1208. Limitation on use of funds for construction of a Russian 
                            facility for the destruction of chemical 
                            weapons.
Sec. 1209. Limitation on use of funds for Elimination of Weapons Grade 
                            Plutonium Program.
   TITLE XIII--NAVY ACTIVITIES ON THE ISLAND OF VIEQUES, PUERTO RICO

Sec. 1301. Assistance for economic growth on Vieques.
Sec. 1302. Requirement for referendum on continuation of Navy training.
Sec. 1303. Actions if training is approved.
Sec. 1304. Requirements if training is not approved or mandate for 
                            referendum is vitiated.
Sec. 1305. Exempt property.
Sec. 1306. Moratorium on improvements at Fort Buchanan.
Sec. 1307. Property transferred to Secretary of the Interior.
Sec. 1308. Live Impact Area.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for procurement for the Army as follows:
            (1) For aircraft, $1,749,662,000.
            (2) For missiles, $1,382,328,000.
            (3) For weapons and tracked combat vehicles, 
        $2,115,138,000.
            (4) For ammunition, $1,224,323,000.
            (5) For other procurement, $4,068,570,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2001 for procurement for the Navy as follows:
            (1) For aircraft, $8,745,958,000.
            (2) For weapons, including missiles and torpedoes, $ 
        1,479,950,000.
            (3) For shipbuilding and conversion, $12,900,076,000.
            (4) For other procurement, $3,378,311,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2001 for procurement for the Marine Corps in the amount 
of $1,181,035,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2001 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $496,749,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for procurement for the Air Force as follows:
            (1) For aircraft, $9,968,371,000.
            (2) For ammunition, $666,808,000.
            (3) For missiles, $3,005,915,000.
            (4) For other procurement, $7,724,527,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for Defense-wide procurement in the amount of $2,184,608,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for procurement for the Inspector General of the Department of Defense 
in the amount of $3,300,000.

SEC. 106. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 2001 
the amount of $1,003,500,000 for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 107. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $290,006,000.

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR CERTAIN PROGRAMS.

    (a) Authority.--Beginning with the fiscal year 2001 program year, 
the Secretary of the Army may, in accordance with section 2306b of 
title 10, United States Code, enter into multiyear contracts for 
procurement of the following:
            (1) M2A3 Bradley fighting vehicles.
            (2) UH-60L Blackhawk helicopters.
            (3) CH-60S Seahawk helicopters.
    (b) Limitation for Bradley Fighting Vehicles.--The period for a 
multiyear contract entered into under subsection (a)(1) may not exceed 
the three consecutive program years beginning with the fiscal year 2001 
program year.
    (c) Repeal of Superseded Authority.--Section 111 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 
Stat. 531) is amended by striking paragraph (2).

SEC. 112. REPORTS AND LIMITATIONS RELATING TO ARMY TRANSFORMATION.

    (a) Report on Objective Force Development Process.--The Secretary 
of the Army shall submit to the congressional defense committees a 
report on the process for developing the objective force in the 
transformation of the Army. The report shall include the following:
            (1) The operational environments envisioned for the 
        objective force.
            (2) The threat assumptions on which research and 
        development efforts for transformation of the Army into the 
        objective force are based.
            (3) The potential operational and organizational concepts 
        for the objective force.
            (4) The key performance parameters anticipated for the 
        objective force and the operational requirements anticipated 
        for the operational requirements document of the objective 
        force.
            (5) The schedule of Army transformation activities through 
        fiscal year 2012, together with--
                    (A) the projected funding requirements through that 
                fiscal year for the research and development activities 
                and the procurement activities;
                    (B) the specific adjustments that are made for Army 
                programs in the future-years defense program and in the 
                extended planning program in order to program the 
                funding necessary to meet the funding requirements for 
                Army transformation; and
                    (C) a summary of the anticipated investments of the 
                Defense Advanced Research Projects Agency in programs 
                designed to lead to the fielding of future combat 
                systems for the objective force.
            (6) The joint warfighting requirements that will be 
        supported by the fielding of the objective force, together with 
        a description of the adjustments that are planned to be made in 
        the war plans of the commanders of the regional unified 
        combatant commands in relation to the fielding of the objective 
        force.
            (7) The changes in lift requirements that result from the 
        establishment and fielding of the combat brigades of the 
        objective force.
            (8) The evaluation process that will be used to support 
        decisionmaking on the course of the Army transformation, 
        including a description of the operational evaluations and 
        experimentation that will be used to validate the key 
        performance parameters associated with the objective force and 
        the operational requirements for the operational requirements 
        document of the objective force.
    (b) Reports on Medium Armored Combat Vehicles for the Interim 
Brigade Combat Teams.--(1) The Secretary of the Army shall develop and 
carry out a plan for comparing--
            (A) the costs and operational effectiveness of the medium 
        armored combat vehicles selected for the infantry battalions of 
        the interim brigade combat teams; and
            (B) the costs and operational effectiveness of the medium 
        armored vehicles currently in the Army inventory for the use of 
        infantry battalions.
    (2) The plan shall provide for the costs and operational 
effectiveness of the two sets of vehicles to be determined on the basis 
of the results of an operational analysis that involves the 
participation of at least one infantry battalion that is fielded with 
medium armored vehicles currently in the Army inventory and is similar 
in organization to the infantry battalions of the interim brigade 
combat teams.
    (3) The Director of Operational Test and Evaluation of the 
Department of Defense shall review the plan developed under paragraph 
(1) and submit the Director's comments on the plan to the Secretary of 
the Army.
    (4) Not later than February 1, 2001, the Secretary of the Army 
shall submit to the congressional defense committees a report on the 
plan developed under paragraph (1). The report shall include the 
following:
            (A) The plan.
            (B) The comments of the Director of Operational Test and 
        Evaluation on the plan.
            (C) A discussion of how the results of the operational 
        analysis are to be used to guide future decisions on the 
        acquisition of medium armored combat vehicles for additional 
        interim brigade combat teams.
            (D) The specific adjustments that are made for Army 
        programs in the future-years defense program and in the 
        extended planning program in order to program the funding 
        necessary for fielding the interim brigade combat teams.
    (5)(A) Not later than March 1, 2002, the Secretary of the Army 
shall submit to the congressional defense committees a report on the 
results of the comparison of costs and operational effectiveness of the 
two sets of medium armored combat vehicles under paragraph (1).
    (B) The report under subparagraph (A) shall include a certification 
by the Secretary of Defense regarding whether the results of the 
comparison would support the continuation in fiscal year 2003 and 
beyond of the acquisition of the additional medium armored combat 
vehicles proposed to be used for equipping the interim brigade combat 
teams.
    (c) Limitations.--(1) Not more than 60 percent of the amount 
appropriated for the procurement of armored vehicles in the family of 
new medium armored vehicles pursuant to the authorization of 
appropriations in section 101(3) may be obligated until the date that 
is 30 days after the date on which the Secretary of the Army submits 
the report required under subsection (b)(4) to the congressional 
defense committees.
    (2) Not more than 60 percent of the funds appropriated for the Army 
for fiscal year 2002 for the procurement of armored vehicles in the 
family of new medium armored combat vehicles may be obligated until the 
date that is 30 days after the date on which the Secretary of the Army 
submits the report required under subsection (b)(5) to the 
congressional defense committees.
    (d) Definitions.--In this section:
            (1) The term ``transformation'', with respect to the Army, 
        means the actions being undertaken to transform the Army, as it 
        is constituted in terms of organization, equipment, and 
        doctrine in 2000, into the objective force.
            (2) The term ``objective force'' means the Army that has 
        the organizational structure, the most advanced equipment that 
        early twenty-first century science and technology can provide, 
        and the appropriate doctrine to ensure that the Army is 
        responsive, deployable, agile, versatile, lethal, survivable, 
        and sustainable for the full spectrum of the operations 
        anticipated to be required of the Army during the early years 
        of the twenty-first century following 2010.
            (3) The term ``interim brigade combat team'' means an Army 
        brigade that is designated by the Secretary of the Army as a 
        brigade combat team and is reorganized and equipped with 
        currently available equipment in a configuration that 
        effectuates an evolutionary advancement toward transformation 
        of the Army to the objective force.

                       Subtitle C--Navy Programs

SEC. 121. CVNX-1 NUCLEAR AIRCRAFT CARRIER PROGRAM.

    (a) Authorization of Ship.--The Secretary of the Navy is authorized 
to procure the aircraft carrier to be designated CVNX-1.
    (b) Advance Procurement and Construction.--The Secretary may enter 
into one or more contracts for the advance procurement and advance 
construction of components for the ship authorized under subsection 
(a).
    (c) Amount Authorized From SCN Account.--Of the amounts authorized 
to be appropriated under section 102(a)(3) for fiscal year 2001, 
$21,869,000 is available for the advance procurement and advance 
construction of components (including nuclear components) for the CVNX-
1 aircraft carrier program.

SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

    (a) Economical Multiyear Procurement of Previously Authorized 
Vessels and One Additional Vessel.--(1) Subsection (b) of section 122 
of the National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 104-201; 110 Stat. 2446), as amended by section 122(a) of Public 
Law 106-65 (113 Stat. 535), is further amended by striking ``a total of 
18 Arleigh Burke class destroyers'' in the first sentence and all that 
follows through the period at the end of that sentence and inserting 
``Arleigh Burke class destroyers in accordance with this subsection and 
subsection (a)(4) at procurement rates not in excess of 3 ships in each 
of the fiscal years beginning after September 30, 1998, and before 
October 1, 2005. The authority under the preceding sentence is subject 
to the availability of appropriations for such destroyers.''.
    (2) The heading for such subsection is amended by striking ``18''.
    (b) Economical Rate of Procurement.--It is the sense of Congress 
that, for the procurement of the Arleigh Burke class destroyers to be 
procured after fiscal year 2001 under multiyear contracts authorized 
under section 122(b) of Public Law 104-201--
            (1) the Secretary of the Navy should--
                    (A) achieve the most economical rate of 
                procurement; and
                    (B) enter into such contracts for advance 
                procurement as may be necessary to achieve that rate of 
                procurement;
            (2) the most economical rate of procurement would be 
        achieved by procuring 3 of the destroyers in each of fiscal 
        years 2002 and 2003 and procuring another destroyer in fiscal 
        year 2004; and
            (3) the Secretary has the authority under section 122(b) of 
        Public Law 104-201 (110 Stat. 2446) and subsections (b) and (c) 
        of section 122 of Public Law 106-65 (113 Stat. 534) to provide 
        for procurement at the most economical rate, as described in 
        paragraph (2).
    (c) Update of 1993 Report on DDG-51 Class Ships.--(1) The Secretary 
of the Navy shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives, not later than November 1, 
2000, a report that updates the information provided in the report of 
the Secretary of the Navy entitled the ``Arleigh Burke (DDG-51) Class 
Industrial Base Study of 1993''. The Secretary shall transmit a copy of 
the updated report to the Comptroller General not later than the date 
on which the Secretary submits the report to the committees.
    (2) The Comptroller General shall review the updated report 
submitted under paragraph (1) and, not later than December 1, 2000, 
submit to the Committees on Armed Services of the Senate and House of 
Representatives the Comptroller General's comments on the updated 
report.

SEC. 123. VIRGINIA CLASS SUBMARINE PROGRAM.

    (a) Amounts Authorized From SCN Account.--Of the amounts authorized 
to be appropriated by section 102(a)(3) for fiscal year 2001, 
$1,711,234,000 is available for the Virginia class submarine program.
    (b) Contract Authority.--(1) The Secretary of the Navy is 
authorized to enter into a contract for the procurement of up to five 
Virginia class submarines, including the procurement of material in 
economic order quantities when cost savings are achievable, during 
fiscal years 2003 through 2006. The submarines authorized under the 
preceding sentence are in addition to the submarines authorized under 
section 121(b) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1648).
    (2) A contract entered into under paragraph (1) shall include a 
clause that states that any obligation of the United States to make a 
payment under this contract is subject to the availability of 
appropriations for that purpose.
    (c) Shipbuilder Teaming.--Paragraphs (2)(A), (3), and (4) of 
section 121(b) of Public Law 105-85 apply to the procurement of 
submarines under this section.
    (d) Limitation of Liability.--If a contract entered into under this 
section is terminated, the United States shall not be liable for 
termination costs in excess of the total of the amounts appropriated 
for the Virginia class submarine program that remain available for the 
program.
    (e) Report Requirement.--At that same time that the President 
submits the budget for fiscal year 2002 to Congress under section 
1105(a) of title 31, United States Code, the Secretary of Defense shall 
submit to the congressional defense committees a report on the Navy's 
fleet of fast attack submarines. The report shall include the 
following:
            (1) A plan for maintaining at least 55 fast attack 
        submarines in commissioned service through 2015, including, by 
        2015, 18 Virginia class submarines.
            (2) Two assessments of the potential savings that would be 
        achieved under the Virginia class submarine program if the 
        production rate for such program were at least two submarines 
        each fiscal year, as follows:
                    (A) An assessment if that were the production rate 
                beginning in fiscal year 2004.
                    (B) An assessment if that were the production rate 
                beginning in fiscal year 2006.
            (3) An analysis of the advantages and disadvantages of 
        various contracting strategies for Virginia class submarine 
        program, including one or more multiyear procurement strategies 
        and one or more strategies for block buy with economic order 
        quantity.

SEC. 124. ADC(X) SHIP PROGRAM.

    Notwithstanding any other provision of law, the Secretary of the 
Navy may procure the construction of all ADC(X) class ships in one 
shipyard if the Secretary determines that it is more cost effective to 
do so than to procure the construction of such ships from more than one 
shipyard.

SEC. 125. REFUELING AND COMPLEX OVERHAUL PROGRAM OF THE CVN-69 NUCLEAR 
              AIRCRAFT CARRIER.

    (a) Amount Authorized From SCN Account.--Of the amount authorized 
to be appropriated by section 102(a)(3) for fiscal year 2001, 
$703,441,000 is available for the commencement of the nuclear refueling 
and complex overhaul of the CVN-69 aircraft carrier during fiscal year 
2001. The amount made available in the preceding sentence is the first 
increment in the incremental funding planned for the nuclear refueling 
and complex overhaul of the CVN-69 aircraft carrier.
    (b) Contract Authority.--The Secretary of the Navy is authorized to 
enter into a contract during fiscal year 2001 for the nuclear refueling 
and complex overhaul of the CVN-69 nuclear aircraft carrier before full 
funding for the contract is available and to provide for the 
performance of the contract to begin.

                     Subtitle D--Air Force Programs

SEC. 131. REPEAL OF REQUIREMENT FOR ANNUAL REPORT ON B-2 BOMBER 
              AIRCRAFT PROGRAM.

    Section 112 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1373), as amended by 
section 141 of Public Law 104-106 (110 Stat. 213), is repealed.

                       Subtitle E--Other Matters

SEC. 141. PUEBLO CHEMICAL DEPOT CHEMICAL AGENT AND MUNITIONS 
              DESTRUCTION TECHNOLOGIES.

    (a) Limitation.--In determining the technologies to be used for the 
destruction of the stockpile of lethal chemical agents and munitions at 
Pueblo Chemical Depot, Colorado, whether under the assessment required 
by section 141(a) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 537; 50 U.S.C. 1521 note), the 
Assembled Chemical Weapons Assessment, or any other assessment, the 
Secretary of Defense may consider only the following technologies:
            (1) Incineration.
            (2) Any technologies demonstrated under the Assembled 
        Chemical Weapons Assessment on or before May 1, 2000.
    (b) Assembled Chemical Weapons Assessment Defined.--As used in 
subsection (a), the term ``Assembled Chemical Weapons Assessment'' 
means the pilot program carried out under section 8065 of the 
Department of Defense Appropriations Act, 1997 (section 101(b) of 
Public Law 104-208; 110 Stat. 3009-101; 50 U.S.C. 1521 note).

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $5,461,946,000.
            (2) For the Navy, $8,665,865,000.
            (3) For the Air Force, $13,927,836,000.
            (4) For Defense-wide activities, $11,275,202,000, of which 
        $223,060,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 2001.--Of the amounts authorized to be appropriated 
by section 201, $4,702,604,000 shall be available for basic research 
and applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1 or 6.2.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. FISCAL YEAR 2002 JOINT FIELD EXPERIMENT.

    (a) Requirements.--The Secretary of Defense shall carry out a joint 
field experiment in fiscal year 2002. The Secretary shall ensure that 
the planning for the joint field experiment is carried out during 
fiscal year 2001.
    (b) Purpose.--The purpose of the joint field experiment is to 
explore the most critical war fighting challenges at the operational 
level of war that will confront United States joint military forces 
after 2010.
    (c) Participating Forces.--(1) The joint field experiment shall 
involve elements of Army, Navy, Marine Corps, and Air Force, and shall 
include special operations forces.
    (2) The forces designated to participate in the joint field 
experiment shall exemplify the concepts for organization, equipment, 
and doctrine that are conceived for the forces after 2010 under Joint 
Vision 2010 (issued by the Joint Chiefs of Staff) and the current 
vision statements of the Chief of Staff of the Army, the Chief of Naval 
Operations and the Commandant of the Marine Corps, and the Chief of 
Staff of the Air Force, including the following concepts:
            (A) Air Force expeditionary aerospace forces.
            (B) Army medium weight brigades.
            (C) Navy forward from the sea.
    (d) Funding.--Of the amount authorized to be appropriated under 
section 201(2) for joint experimentation, $6,000,000 shall be available 
only for planning the joint field experiment required under this 
section.

SEC. 212. NUCLEAR AIRCRAFT CARRIER DESIGN AND PRODUCTION MODELING.

    Of the amount authorized to be appropriated under section 201(2) 
for the Navy for nuclear aircraft carrier design and production 
modeling, $10,000,000 shall be available for the conversion and 
development of nuclear aircraft carrier design data into an electronic, 
three-dimensional product model.

SEC. 213. DD-21 CLASS DESTROYER PROGRAM.

    (a) Authority.--The Secretary of the Navy is authorized to pursue a 
technology insertion approach for the construction of the DD-21 
destroyer on the following schedule:
            (1) Commencement of construction during fiscal year 2004.
            (2) Delivery of the completed vessel during fiscal year 
        2009.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) there are compelling reasons for starting the program 
        for constructing the DD-21 destroyer in fiscal year 2004 and 
        continuing with sequential construction of DD-21 class 
        destroyers during the ensuing fiscal years until 32 DD-21 class 
        destroyers are constructed; and
            (2) the Secretary of the Navy, in providing for the 
        acquisition of DD-21 class destroyers, should consider that--
                    (A) the Marine Corps needs the surface fire support 
                capabilities of the DD-21 class destroyers as soon as 
                possible in order to mitigate the inadequacies of the 
                surface fire support capabilities that are currently 
                available;
                    (B) the Navy and Marine Corps need to resolve 
                whether there is a requirement for surface fire support 
                missile weapon systems to be easily sustainable by 
                means of replenishment while under way;
                    (C) the technology insertion approach has been 
                successful for other ship construction programs and is 
                being pursued for the CVN(X) and Virginia class 
                submarine programs;
                    (D) the establishment of a stable configuration for 
                the first 10 DD-21 class destroyers should enable the 
                construction of the ships with the greatest 
                capabilities at the lowest cost; and
                    (E) action to acquire DD-21 class destroyers should 
                be taken as soon as possible in order to realize fully 
                the cost savings that can be derived from the 
                construction and operation of DD-21 class destroyers, 
                including--
                            (i) savings in construction costs that 
                        would result from achievement of the Navy's 
                        target per-ship cost of $750,000,000 by the 
                        fifth ship constructed in each construction 
                        yard;
                            (ii) savings that will result from the 
                        estimated reduction of the crews of destroyers 
                        by 200 or more personnel for each ship; and
                            (iii) savings that will result from a 
                        reduction in the operating costs for destroyers 
                        by an estimated 70 percent.
    (c) Navy Plan for Use of Technology Insertion Approach for 
Construction of the DD-21 Ship.--The Secretary of the Navy shall submit 
to the Committees on Armed Services of the Senate and the House of 
Representatives, not later than April 18, 2001, a plan for pursuing a 
technology insertion approach for the construction of the DD-21 
destroyer as authorized under subsection (a). The plan shall include 
estimates of the resources necessary to execute the plan.
    (d) Report on Acquisition and Maintenance Plan for DD-21 Class 
Ships.--The Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and House of Representatives, not later 
than April 18, 2001, a report on the Navy's plan for the acquisition 
and maintenance of DD-21 class destroyers. The report shall include a 
discussion of each of the following matters:
            (1) The technical feasibility of commencing construction of 
        the DD-21 destroyer in fiscal year 2004 and achieving delivery 
        of the completed ship to the Navy during fiscal year 2009.
            (2) An analysis of the advantages and disadvantages of 
        various contracting strategies for the construction of the 
        first 10 DD-21 class destroyers, including one or more 
        multiyear procurement strategies and one or more strategies for 
        block buy in economic order quantity.
            (3) The effects on the destroyer industrial base and on 
        costs to other Navy shipbuilding programs of delaying the 
        commencement of construction of the DD-21 destroyer until 
        fiscal year 2005 and delaying the commencement of construction 
        of the next DD-21 class destroyer until fiscal year 2007.
            (4) The effects on the fleet maintenance strategies of Navy 
        fleet commanders, on commercial maintenance facilities in fleet 
        concentration areas, and on the administration of funds in 
        compliance with section 2466 of title 10, United States Code, 
        of awarding to a contractor for the construction of a DD-21 
        class destroyer all maintenance workloads for DD-21 class 
        destroyers that are below depot-level maintenance and above 
        ship-level maintenance.

SEC. 214. F-22 AIRCRAFT PROGRAM.

    Section 217(c) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1660) is amended by adding at 
the end the following:
            ``(3) With respect to the limitation in subsection (a), an 
        increase by an amount that does not exceed one percent of the 
        total amount of that limitation (taking into account the 
        increases and decreases, if any, under paragraphs (1) and (2)) 
        if the Director of Operational Test and Evaluation, after 
        consulting with the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics, determines that the increase is 
        necessary in order to ensure adequate testing.''.

SEC. 215. JOINT STRIKE FIGHTER PROGRAM.

    (a) Report.--Not later than December 15, 2000, the Secretary shall 
submit to Congress a report on the joint strike fighter program. The 
report shall contain the following:
            (1) A description of the program as the program has been 
        restructured before the date of the report, including any 
        modified acquisition strategy that has been incorporated into 
        the program.
            (2) The exit criteria that have been established to ensure 
        that technical risks are at levels acceptable for entry of the 
        program into engineering and manufacturing development.
    (b) Transfers From Other Navy and Air Force Accounts.--(1) 
Notwithstanding any other provision of this Act, the Secretary may 
transfer to the joint strike fighter program or within the joint strike 
fighter program amounts authorized to be appropriated under section 201 
for a purpose other than the purpose of the authorization of 
appropriations to which transferred, as follows:
            (A) Of the funds authorized to be appropriated under 
        section 201(2), up to $150,000,000.
            (B) Of the funds authorized to be appropriated under 
        section 201(3), up to $150,000,000.
    (2) The transfer authority under paragraph (1) is in addition to 
the transfer authority provided in section 1001.

SEC. 216. GLOBAL HAWK HIGH ALTITUDE ENDURANCE UNMANNED AERIAL VEHICLE.

    (a) Concept Demonstration Required.--The Secretary of Defense shall 
require and coordinate a concept demonstration of the Global Hawk high 
altitude endurance unmanned aerial vehicle.
    (b) Purpose of Demonstration.--The purpose of the concept 
demonstration is to demonstrate the capability of the Global Hawk high 
altitude endurance unmanned aerial vehicle to operate in an airborne 
surveillance mode, using available, non-developmental technology.
    (c) Time for Demonstration.--The demonstration shall take place as 
early in fiscal year 2001 as the Secretary determines practicable.
    (d) Participation by CINCs.--The Secretary shall require the 
Commander in Chief of the United States Joint Forces Command and the 
Commander in Chief of the United States Southern Command jointly to 
provide guidance for the demonstration and otherwise to participate in 
the demonstration.
    (e) Scenario for Demonstration.--The demonstration shall be 
conducted in a counter-drug surveillance scenario that is designed to 
replicate factual conditions typically encountered in the performance 
of the counter-drug surveillance mission of the Commander in Chief of 
the United States Southern Command within that commander's area of 
responsibility.
    (f) Report.--Not later than 45 days after the concept demonstration 
is completed, the Secretary shall submit to Congress a report on the 
results of the demonstration. The report shall include the following:
            (1) The Secretary's assessment of the technical feasibility 
        of using the Global Hawk high altitude endurance unmanned 
        aerial vehicle for airborne air surveillance.
            (2) A discussion of the operational concept for the use of 
        the vehicle for that purpose.

SEC. 217. UNMANNED ADVANCED CAPABILITY AIRCRAFT AND GROUND COMBAT 
              VEHICLES.

    (a) Goal.--It shall be a goal of the Armed Forces to achieve the 
fielding of unmanned, remotely controlled technology such that--
            (1) by 2010, one-third of the operational deep strike 
        aircraft of the Armed Forces are unmanned; and
            (2) by 2015, one-third of the operational ground combat 
        vehicles of the Armed Forces are unmanned.
    (b) Report on Advanced Capability Ground Combat Vehicles.--Not 
later than January 31, 2001, the Secretary of Defense shall submit to 
the congressional defense committees a report on each of the programs 
undertaken by the Secretaries of the Army, Navy, and Air Force jointly 
with the Director of the Defense Advanced Research Projects Agency to 
demonstrate advanced capability ground combat vehicles. The report 
shall include the following for the program of each military 
department:
            (1) A schedule for the program, including, in the case of 
        the Army program, a schedule for the demonstration of the 
        capability for unmanned, remotely controlled operation of 
        advanced capability ground combat vehicles for the Army.
            (2) An identification of the funding required for fiscal 
        year 2002 and for the future-years defense program to carry out 
        the program and, in the case of the Army program, for the 
        demonstration described in paragraph (1).
            (3) A description and assessment of the acquisition 
        strategy for unmanned ground combat vehicles planned by the 
        Secretary of the military department concerned, together with a 
        complete identification of all operation, support, ownership, 
        and other costs required to carry out such strategy through the 
        year 2030.
    (c) Funds.--Of the amount authorized to be appropriated for 
Defense-wide activities under section 201(4) for the Defense Advanced 
Research Projects Agency, $200,000,000 shall be available only to carry 
out the programs referred to in subsection (b).

SEC. 218. ARMY SPACE CONTROL TECHNOLOGY DEVELOPMENT.

    (a) Kinetic Energy Anti-Satellite Technology Program.--Of the funds 
authorized to be appropriated under section 201(4), $20,000,000 shall 
be available for the kinetic energy anti-satellite technology program.
    (b) Other Army Space Control Technology Development.--Of the funds 
authorized to be appropriated under section 201(4), $5,000,000 shall be 
available for the development of space control technologies that 
emphasize reversible or temporary effects.
    (c) Limitation.--None of the funds made available pursuant to 
subsection (b) may be obligated until the funds provided for the 
kinetic energy anti-satellite technology program under subsection (a) 
have been released to the kinetic energy anti-satellite technology 
program manager.

SEC. 219. RUSSIAN AMERICAN OBSERVATION SATELLITES PROGRAM.

    None of the funds authorized to be appropriated under section 
201(4) for the Russian American Observation Satellites program may be 
obligated or expended until 30 days after the Secretary of Defense 
submits to Congress a report explaining how the Secretary plans to 
protect United States advanced military technology that may be 
associated with the Russian American Observation Satellites program.

SEC. 220. JOINT BIOLOGICAL DEFENSE PROGRAM.

    (a) Limitation.--Funds authorized to be appropriated by this Act 
may not be obligated for the procurement of a vaccine for the 
biological agent anthrax until the Secretary of Defense has submitted 
to the congressional defense committees the following:
            (1) A written notification that the Food and Drug 
        Administration has approved for production of the vaccine the 
        manufacturing source from which the Department of Defense is 
        procuring the vaccine as of the date of the enactment of this 
        Act (hereafter in this section referred to as the ``current 
        manufacturer'').
            (2) A report on the contingencies associated with 
        continuing to rely on the current manufacturer to supply 
        anthrax vaccine.
    (b) Content of Report.--The report required under subsection (a)(2) 
shall include the following:
            (1) Recommended strategies to mitigate the risk to the 
        Department of Defense of losing the current manufacturer as a 
        source of anthrax vaccine, together with a discussion of the 
        criteria to be applied in determining whether to carry out any 
        of the strategies and which strategy to carry out.
            (2) Recommended strategies to ensure that the Department of 
        Defense can procure from any source or sources an anthrax 
        vaccine approved by the Food and Drug Administration that meets 
        the requirements of the department if--
                    (A) the Food and Drug Administration does not 
                approve the release of the anthrax vaccine available 
                from the current manufacturer; or
                    (B) the current manufacturer terminates the 
                production of anthrax vaccine permanently.
            (3) A five-year budget to support each strategy recommended 
        under paragraph (1) or (2).

SEC. 221. REPORT ON BIOLOGICAL WARFARE DEFENSE VACCINE RESEARCH AND 
              DEVELOPMENT PROGRAMS.

    (a) Requirement for Report.--The Secretary of Defense shall submit 
to the congressional defense committees, not later than February 1, 
2001, a report on the acquisition of biological warfare defense 
vaccines for the Department of Defense.
    (b) Content of Report.--The report shall include the following:
            (1) The Secretary's evaluation of the implications of 
        reliance on the commercial sector to meet the requirements of 
        the Department of Defense for biological warfare defense 
        vaccines.
            (2) A complete design for a facility at an alternative site 
        determined by the Secretary that is designed to be operated 
        under government ownership by a contractor for the production 
        of biological warfare defense vaccines to meet the current and 
        future requirements of the Department of Defense for biological 
        warfare defense vaccines, together with--
                    (A) an estimation of the cost of contractor 
                operation of such a facility for that purpose;
                    (B) a determination, developed in consultation with 
                the Surgeon General of the United States, on the 
                utility of such a facility to support civilian vaccine 
                requirements and a discussion of the effects that the 
                use of the facility for that purpose would have on the 
                operating costs for vaccine production at the facility; 
                and
                    (C) an analysis of the effects that international 
                demand for vaccines would have on the operating costs 
                for vaccine production at such a facility.
    (c) Biological Warfare Defense Vaccine Defined.--In this section, 
the term ``biological warfare defense vaccine'' means a vaccine useful 
for the immunization of military personnel to protect against 
biological agents on the Validated Threat List issued by the Joint 
Chiefs of Staff, whether such vaccine is in production or is being 
developed.

                       Subtitle C--Other Matters

SEC. 241. MOBILE OFFSHORE BASE.

    (a) Report.--Not later than March 1, 2001, the Secretary of Defense 
shall submit to Congress a report on the mobile offshore base concept.
    (b) Content of Report.--The report shall contain the following:
            (1) A cost-benefit analysis of the mobile offshore base, 
        using operational concepts that would support the National 
        Military Strategy.
            (2) A recommendation regarding whether to proceed with the 
        mobile offshore base as a program and, if so--
                    (A) a statement regarding which of the Armed Forces 
                is to be designated to have the lead responsibility for 
                the program; and
                    (B) a schedule for the program.

SEC. 242. AIR FORCE SCIENCE AND TECHNOLOGY PLANNING.

    (a) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of the Air Force shall submit to 
the congressional defense committees a report on the long-term 
challenges and short-term objectives of the Air Force science and 
technology program. The report shall include the following:
            (1) An assessment of the budgetary resources that are being 
        used for fiscal year 2001 for addressing the long-term 
        challenges and the short-term objectives.
            (2) The budgetary resources that are necessary to address 
        those challenges and objectives adequately.
            (3) A course of action for any projected or ongoing Air 
        Force science and technology programs that do not address 
        either the long-term challenges or the short-term objectives.
            (4) The matters required under subsection (b)(5) and 
        (c)(6).
    (b) Long-Term Challenges.--(1) The Secretary of the Air Force shall 
establish an integrated product team to identify high-risk, high-payoff 
challenges that will provide a long-term focus and motivation for the 
Air Force science and technology program over the next 20 to 50 years. 
The integrated product team shall include representatives of the Office 
of Scientific Research and personnel from the Air Force Research 
Laboratory.
    (2) The team shall solicit views from the entire Air Force science 
and technology community on the matters under consideration by the 
team.
    (3) The team--
            (A) shall select for consideration science and technology 
        challenges that involve--
                    (i) compelling requirements of the Air Force;
                    (ii) high-risk, high-payoff areas of exploration; 
                and
                    (iii) very difficult, but probably achievable, 
                results; and
            (B) should not include as a selected challenge any linear 
        extension of an ongoing Air Force science and technology 
        program.
    (4) The Deputy Assistant Secretary of the Air Force for Science, 
Technology, and Engineering shall designate a technical coordinator and 
a management coordinator for each science and technology challenge 
identified pursuant to this subsection. Each technical coordinator 
shall have sufficient expertise in fields related to the challenge to 
be able to identify other experts and affirm the credibility of the 
program. The coordinator for a science and technology challenge shall 
conduct workshops within the relevant scientific and technological 
community to obtain suggestions for possible approaches to addressing 
the challenge, to identify ongoing work that addresses the challenge, 
to identify gaps in current work relating to the challenge, and to 
highlight promising areas of research.
    (5) The report required by subsection (a) shall, at a minimum, 
provide information on each science and technology challenge identified 
pursuant to this subsection and describe the results of the workshops 
conducted pursuant to paragraph (4), including any work not currently 
funded by the Air Force that should be performed to meet the challenge.
    (c) Short-Term Objectives.--(1) The Secretary of the Air Force 
shall establish a task force to identify short-term technological 
objectives of the Air Force science and technology program. The task 
force shall be chaired by the Deputy Assistant Secretary of the Air 
Force for Science, Technology, and Engineering and shall include 
representatives of the Chief of Staff of the Air Force and the 
specified combatant commands of the Air Force.
    (2) The task force shall solicit views from the entire Air Force 
requirements community, user community, and acquisition community.
    (3) The task force shall select for consideration short-term 
objectives that involve--
            (A) compelling requirements of the Air Force;
            (B) support in the user community; and
            (C) likely attainment of the desired benefits within a 5-
        year period.
    (4) The Deputy Assistant Secretary of the Air Force for Science, 
Technology, and Engineering shall establish an integrated product team 
for each short-term objective identified pursuant to this subsection. 
Each integrated product team shall include representatives of the 
requirements community, the user community, and the science and 
technology community with relevant expertise.
    (5) The integrated product team for a short-term objective shall be 
responsible for--
            (A) identifying, defining, and prioritizing the enabling 
        capabilities that are necessary for achieving the objective;
            (B) identifying gaps in the enabling capabilities that must 
        be addressed if the short-term objective is to be achieved; and
            (C) working with the Air Force science and technology 
        community to identify science and technology projects and 
        programs that should be undertaken to fill each gap in an 
        enabling capability.
    (6) The report required by subsection (a) shall, at a minimum, 
describe each short-term science and technology objective identified 
pursuant to this subsection and describe the work of the integrated 
product teams conducted pursuant to paragraph (5), including any gaps 
identified in enabling capabilities and the science and technology work 
that should be undertaken to fill each such gap.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the Army, $19,028,531,000.
            (2) For the Navy, $23,254,154,000.
            (3) For the Marine Corps, $2,746,558,000.
            (4) For the Air Force, $22,389,077,000.
            (5) For Defense-wide activities, $11,973,569,000.
            (6) For the Army Reserve, $1,526,418,000.
            (7) For the Naval Reserve, $965,946,000.
            (8) For the Marine Corps Reserve, $138,959,000.
            (9) For the Air Force Reserve, $1,890,859,000.
            (10) For the Army National Guard, $3,222,335,000.
            (11) For the Air National Guard, $3,450,875,000.
            (12) For the Defense Inspector General, $144,245,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $8,574,000.
            (14) For Environmental Restoration, Army, $389,932,000.
            (15) For Environmental Restoration, Navy, $294,038,000.
            (16) For Environmental Restoration, Air Force, 
        $376,300,000.
            (17) For Environmental Restoration, Defense-wide, 
        $23,412,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $186,499,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $55,400,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $845,300,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $25,000,000.
            (22) For Defense Health Program, $11,401,723,000.
            (23) For Cooperative Threat Reduction programs, 
        $458,400,000.
            (24) For Overseas Contingency Operations Transfer Fund, 
        $4,100,577,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $916,276,000.
            (2) For the National Defense Sealift Fund, $388,158,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2001 
from the Armed Forces Retirement Home Trust Fund the sum of $69,832,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

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

    (a) Transfer Authority.--To the extent provided in appropriations 
Acts, not more than $150,000,000 is authorized to be transferred from 
the National Defense Stockpile Transaction Fund to operation and 
maintenance accounts for fiscal year 2001 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.
    (b) Treatment of Transfers.--Amounts transferred under this 
section--
            (1) shall be merged with, and be available for the same 
        purposes and the same period as, the amounts in the accounts to 
        which transferred; and
            (2) may not be expended for an item that has been denied 
        authorization of appropriations by Congress.
    (c) Relationship to Other Transfer Authority.--The transfer 
authority provided in this section is in addition to the transfer 
authority provided in section 1001.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. IMPACT AID FOR CHILDREN WITH DISABILITIES.

    Of the total amount authorized to be appropriated under section 
301(5) for payments under section 8003 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703), $20,000,000 is available only 
for payments for children with disabilities under subsection (d) of 
such section.

SEC. 312. JOINT WARFIGHTING CAPABILITIES ASSESSMENT TEAMS.

    Of the total amount authorized to be appropriated under section 
301(5) for the Joint Staff, $4,000,000 is available only for the 
improvement of the performance of analyses by the joint warfighting 
capabilities assessment teams of the Joint Requirements Oversight 
Council.

             Subtitle C--Humanitarian and Civic Assistance

SEC. 321. INCREASED AUTHORITY TO PROVIDE HEALTH CARE SERVICES AS 
              HUMANITARIAN AND CIVIC ASSISTANCE.

    Section 401(e)(1) of title 10, United States Code, is amended by 
striking ``rural areas of a country'' and inserting ``areas of a 
country that are rural or are underserved by medical, dental, and 
veterinary professionals, respectively''.

SEC. 322. USE OF HUMANITARIAN AND CIVIC ASSISTANCE FUNDING FOR PAY AND 
              ALLOWANCES OF SPECIAL OPERATIONS COMMAND RESERVES 
              FURNISHING DEMINING TRAINING AND RELATED ASSISTANCE AS 
              HUMANITARIAN ASSISTANCE.

    Section 401(c) of title 10, United States Code, is amended by 
adding at the end the following:
    ``(5) Up to 10 percent of the funds available in any fiscal year 
for humanitarian and civic assistance described in subsection (e)(5) 
may be expended for the pay and allowances of reserve component 
personnel of the Special Operations Command for periods of duty for 
which the personnel, for a humanitarian purpose, furnish education and 
training on the detection and clearance of landmines or furnish related 
technical assistance.''.

        Subtitle D--Department of Defense Industrial Facilities

SEC. 331. CODIFICATION AND IMPROVEMENT OF ARMAMENT RETOOLING AND 
              MANUFACTURING SUPPORT PROGRAMS.

    (a) In General.--(1) Part IV of subtitle B of title 10, United 
States Code, is amended by inserting after chapter 433 the following:

                ``CHAPTER 434--ARMAMENTS INDUSTRIAL BASE

``Sec.
``4551. Policy.
``4552. Armament Retooling and Manufacturing Support Initiative.
``4553. Property management contracts and leases.
``4554. ARMS Initiative loan guarantee program.
``4555. Definitions.
``Sec. 4551. Policy
    ``It is the policy of the United States--
            ``(1) to encourage, to the maximum extent practicable, 
        commercial firms to use Government-owned, contractor-operated 
        ammunition manufacturing facilities of the Department of the 
        Army;
            ``(2) to use such facilities for supporting programs, 
        projects, policies, and initiatives that promote competition in 
        the private sector of the United States economy and that 
        advance United States interests in the global marketplace;
            ``(3) to increase the manufacture of products inside the 
        United States;
            ``(4) to support policies and programs that provide 
        manufacturers with incentives to assist the United States in 
        making more efficient and economical use of Government-owned 
        industrial plants and equipment for commercial purposes;
            ``(5) to provide, as appropriate, small businesses 
        (including socially and economically disadvantaged small 
        business concerns and new small businesses) with incentives 
        that encourage those businesses to undertake manufacturing and 
        other industrial processing activities that contribute to the 
        prosperity of the United States;
            ``(6) to encourage the creation of jobs through increased 
        investment in the private sector of the United States economy;
            ``(7) to foster a more efficient, cost-effective, and 
        adaptable armaments industry in the United States;
            ``(8) to achieve, with respect to armaments manufacturing 
        capacity, an optimum level of readiness of the national 
        technology and industrial base within the United States that is 
        consistent with the projected threats to the national security 
        of the United States and the projected emergency requirements 
        of the Armed Forces of the United States; and
            ``(9) to encourage facility use contracting where feasible.
``Sec. 4552. Armament Retooling and Manufacturing Support Initiative
    ``(a) Authority for Initiative.--The Secretary of the Army may 
carry out a program to be known as the `Armament Retooling and 
Manufacturing Support Initiative' (hereafter in this chapter referred 
to as the `ARMS Initiative').
    ``(b) Purposes.--The purposes of the ARMS Initiative are as 
follows:
            ``(1) To encourage commercial firms, to the maximum extent 
        practicable, to use Government-owned, contractor-operated 
        ammunition manufacturing facilities of the Department of the 
        Army for commercial purposes.
            ``(2) To increase the opportunities for small businesses 
        (including socially and economically disadvantaged small 
        business concerns and new small businesses) to use such 
        facilities for those purposes.
            ``(3) To maintain in the United States a work force having 
        the skills in manufacturing processes that are necessary to 
        meet industrial emergency planned requirements for national 
        security purposes.
            ``(4) To demonstrate innovative business practices, to 
        support Department of Defense acquisition reform, and to serve 
        as both a model and a laboratory for future defense conversion 
        initiatives of the Department of Defense.
            ``(5) To the maximum extent practicable, to allow the 
        operation of Government-owned, contractor-operated ammunition 
        manufacturing facilities of the Department of the Army to be 
        rapidly responsive to the forces of free market competition.
            ``(6) To reduce or eliminate the cost of ownership of 
        ammunition manufacturing facilities by the Department of the 
        Army, including the costs of operations and maintenance, the 
        costs of environmental remediation, and other costs.
            ``(7) To reduce the cost of products of the Department of 
        Defense produced at ammunition manufacturing facilities of the 
        Department of the Army.
            ``(8) To leverage private investment at Government-owned, 
        contractor-operated ammunition manufacturing facilities through 
        long-term facility use contracts, property management 
        contracts, leases, or other agreements that support and advance 
        the policies and purposes of this chapter, for the following 
        activities:
                    ``(A) Recapitalization of plant and equipment.
                    ``(B) Environmental remediation.
                    ``(C) Promotion of commercial business ventures.
                    ``(D) Other activities.
            ``(9) To foster cooperation between the Department of the 
        Army, property managers, commercial interests, and State and 
        local agencies in the implementation of sustainable development 
        strategies and investment in facilities made available for 
        purposes of the ARMS Initiative.
            ``(10) To reduce or eliminate the cost of asset disposal 
        prior to a declaration by the Secretary of the Army that 
        property is excess to the needs of the Department of the Army.
    ``(c) Availability of Facilities.--(1) The Secretary of the Army 
may make any Government-owned, contractor-operated ammunition 
manufacturing facility of the Department of the Army available for the 
purposes of the ARMS Initiative.
    ``(2) The authority under paragraph (1) applies to a facility 
described in that paragraph without regard to whether the facility is 
active, inactive, in layaway or caretaker status, or is designated (in 
whole or in part) as excess property under property classification 
procedures applicable under title II of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481 et seq.).
    ``(d) Precedence of Provision Over Certain Property Management 
Laws.--The following provisions of law shall not apply to uses of 
property or facilities in accordance with this section to the extent 
that such provisions of law are inconsistent with the exercise of the 
authority of this section:
            ``(1) Section 2667(a)(3) of this title.
            ``(2) The Federal Property and Administrative Services Act 
        of 1949 (40 U.S.C. 471 et seq.).
            ``(3) Section 321 of the Act of June 30, 1932 (commonly 
        known as the `Economy Act') (40 U.S.C. 303b).
    ``(e) Program Support.--(1) Funds appropriated for purposes of the 
ARMS Initiative may be used for administrative support and management.
    ``(2) A full annual accounting of such expenses for each fiscal 
year shall be provided to the Committees on Armed Services and on 
Appropriations of the Senate and the House of Representatives not later 
than March 30 of the following fiscal year.
``Sec. 4553. Property management contracts and leases
    ``(a) In General.--In the case of each Government-owned, 
contractor-operated ammunition manufacturing facility of the Department 
of the Army that is made available for the ARMS Initiative, the 
Secretary of the Army--
            ``(1) shall make full use of facility use contracts, 
        leases, and other such commercial contractual instruments as 
        may be appropriate;
            ``(2) shall evaluate, on the basis of efficiency, cost, 
        emergency mobilization requirements, and the goals and purposes 
        of the ARMS Initiative, the procurement of services from the 
        property manager, including maintenance, operation, 
        modification, infrastructure, environmental restoration and 
        remediation, and disposal of ammunition manufacturing assets, 
        and other services; and
            ``(3) may, in carrying out paragraphs (1) and (2)--
                    ``(A) enter into contracts, and provide for 
                subcontracts, for terms up to 25 years, as the 
                Secretary considers appropriate and consistent with the 
                needs of the Department of the Army and the goals and 
                purposes of the ARMS Initiative; and
                    ``(B) use procedures that are authorized to be used 
                under section 2304(c)(5) of this title when the 
                contractor or subcontractor is a source specified in 
                law.
    ``(b) Consideration for Use.--(1) To the extent provided in a 
contract entered into under this section for the use of property at a 
Government-owned, contractor-operated ammunition manufacturing facility 
that is accountable under the contract, the Secretary of the Army may 
accept consideration for such use that is, in whole or in part, in a 
form other than--
            ``(A) rental payments; or
            ``(B) revenue generated at the facility.
    ``(2) Forms of consideration acceptable under paragraph (1) for a 
use of a facility or any property at a facility include the following:
            ``(A) The improvement, maintenance, protection, repair, and 
        restoration of the facility, the property, or any property 
        within the boundaries of the installation where the facility is 
        located.
            ``(B) Reductions in overhead costs.
            ``(C) Reductions in product cost.
    ``(3) The authority under paragraph (1) may be exercised without 
regard to section 3302(b) of title 31 and any other provision of law.
    ``(c) Reporting Requirement.--Not later than July 1 each year, the 
Secretary of the Army shall submit to the Committees on Armed Services 
and on Appropriations of the Senate and the House of Representatives a 
report on the procedures and controls implemented to carry out this 
section.
``Sec. 4554. ARMS Initiative loan guarantee program
    ``(a) Program Authorized.--Subject to subsection (b), the Secretary 
of the Army may carry out a loan guarantee program to encourage 
commercial firms to use ammunition manufacturing facilities under this 
chapter. Under any such program, the Secretary may guarantee the 
repayment of any loan made to a commercial firm to fund, in whole or in 
part, the establishment of a commercial activity to use any such 
facility under this chapter.
    ``(b) Advanced Budget Authority.--Loan guarantees under this 
section may not be committed except to the extent that appropriations 
of budget authority to cover their costs are made in advance, as 
required by section 504 of the Federal Credit Reform Act of 1990 (2 
U.S.C. 661c).
    ``(c) Program Administration.--(1) The Secretary may enter into an 
agreement with any of the officials named in paragraph (2) under which 
that official may, for the purposes of this section--
            ``(A) process applications for loan guarantees;
            ``(B) guarantee repayment of loans; and
            ``(C) provide any other services to the Secretary to 
        administer the loan guarantee program.
    ``(2) The officials referred to in paragraph (1) are as follows:
            ``(A) The Administrator of the Small Business 
        Administration.
            ``(B) The head of any appropriate agency in the Department 
        of Agriculture, including--
                    ``(i) the Administrator of the Farmers Home 
                Administration; and
                    ``(ii) the Administrator of the Rural Development 
                Administration.
    ``(3) Each official authorized to do so under an agreement entered 
into under paragraph (1) may guarantee loans under this section to 
commercial firms of any size, notwithstanding any limitations on the 
size of applicants imposed on other loan guarantee programs that the 
official administers.
    ``(4) To the extent practicable, each official processing loan 
guarantee applications under this section pursuant to an agreement 
entered into under paragraph (1) shall use the same processing 
procedures as the official uses for processing loan guarantee 
applications under other loan guarantee programs that the official 
administers.
    ``(d) Loan Limits.--The maximum amount of loan principal guaranteed 
during a fiscal year under this section may not exceed--
            ``(1) $20,000,000, with respect to any single borrower; and
            ``(2) $320,000,000 with respect to all borrowers.
    ``(e) Transfer of Funds.--The Secretary of the Army may transfer to 
an official providing services under subsection (c), and that official 
may accept, such funds as may be necessary to administer the loan 
guarantee program under this section.
``Sec. 4555. Definitions
    ``In this chapter:
            ``(1) The term `property manager' includes any person or 
        entity managing a facility made available under the ARMS 
        Initiative through a property management contract.
            ``(2) The term `property management contract' includes 
        facility use contracts, site management contracts, leases, and 
        other agreements entered into under the authority of this 
        chapter.''.
    (2) The tables of chapters at the beginning of subtitle B of such 
title and at the beginning of part IV of such subtitle are amended by 
inserting after the item relating to chapter 433 the following:

``434. Armaments Industrial Base............................    4551''.
    (b) Relationship to National Defense Technology and Industrial 
Base.--(1) Subchapter IV of chapter 148 of title 10, United States 
Code, is amended--
            (A) by redesignating section 2525 as section 2521; and
            (B) by adding at the end the following:
``Sec. 2522. Armament retooling and manufacturing
    ``The Secretary of the Army is authorized by chapter 434 of this 
title to carry out programs for the support of armaments retooling and 
manufacturing in the national defense industrial and technology 
base.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by striking the item relating to section 2525 and inserting the 
following:

``2521. Manufacturing Technology Program.
``2522. Armament retooling and manufacturing.''.
    (c) Repeal of Superseded Law.--The Armament Retooling and 
Manufacturing Support Act of 1992 (subtitle H of title I of the 
National Defense Authorization Act for Fiscal Year 1993 (Public Law 
102-484; 10 U.S.C. 2501 note)) is repealed.

SEC. 332. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

    (a) Designation of Army Arsenals.--(1) Subsection (a) of section 
2474 of title 10, United States Code, is amended by striking paragraph 
(1) and inserting the following:
    ``(1) The Secretary concerned, or the Secretary of Defense in the 
case of a Defense Agency, shall designate as a Center of Industrial and 
Technical Excellence in the recognized core competencies of the 
designee the following:
            ``(A) Each depot-level activity of the military departments 
        and the Defense Agencies (other than facilities approved for 
        closure or major realignment under the Defense Base Closure and 
        Realignment Act of 1990 (part A of title XXIX of Public Law 
        101-510; 10 U.S.C. 2687 note)).
            ``(B) Each arsenal of the Army.''.
    (2) Paragraph (2) of such subsection is amended--
            (A) by inserting ``of Defense'' after ``The Secretary''; 
        and
            (B) by striking ``depot-level activities'' and inserting 
        ``Centers of Industrial and Technical Excellence''.
    (3) Paragraph (3) of such subsection is amended by striking ``the 
efficiency and effectiveness of depot-level operations, improve the 
support provided by depot-level activities'' and inserting ``the 
efficiency and effectiveness of operations at Centers of Industrial and 
Technical Excellence, improve the support provided by the Centers''.
    (b) Public-Private Partnerships.--Subsection (b) of such section is 
amended to read as follows:
    ``(b) Public-Private Partnerships.--(1) To achieve one or more 
objectives set forth in paragraph (2), the Secretary designating a 
Center of Industrial and Technical Excellence under subsection (a) 
shall authorize and encourage the head of the Center to enter into 
public-private cooperative arrangements that provide any of the 
following:
            ``(A) For employees of the Center, private industry, or 
        other entities outside the Department of Defense--
                    ``(i) to perform (under contract, subcontract, or 
                otherwise) work in any of the core competencies of the 
                Center, including any depot-level maintenance and 
                repair work that involves one or more core competencies 
                of the Center; or
                    ``(ii) to perform at the Center depot-level 
                maintenance and repair work that does not involve a 
                core competency of the Center.
            ``(B) For private industry or other entities outside the 
        Department of Defense to use, for any period of time determined 
        to be consistent with the needs of the Department of Defense, 
        any facilities or equipment of the Center that are not fully 
        utilized by a military department for its own production or 
        maintenance requirements.
    ``(2) The objectives for exercising the authority provided in 
paragraph (1) are as follows:
            ``(A) To maximize the utilization of the capacity of a 
        Center of Industrial and Technical Excellence.
            ``(B) To reduce or eliminate the cost of ownership of a 
        Center by the Department of Defense in such areas of 
        responsibility as operations and maintenance and environmental 
        remediation.
            ``(C) To reduce the cost of products of the Department of 
        Defense produced or maintained at a Center.
            ``(D) To leverage private sector investment in--
                    ``(i) such efforts as plant and equipment 
                recapitalization for a Center; and
                    ``(ii) the promotion of the undertaking of 
                commercial business ventures at a Center.
            ``(E) To foster cooperation between the armed forces and 
        private industry.
    ``(3) A public-private cooperative arrangement entered into under 
this subsection shall be known as a `public-private partnership'.
    ``(4) The Secretary designating a Center of Industrial and 
Technical Excellence under subsection (a) may waive the condition in 
paragraph (1)(A) and subsection (a)(1) of section 2553 of this title 
that an article or service must be not available (as defined in 
subsection (g)(2) of such section) from a United States commercial 
source in the case of a particular article or service of a public-
private partnership if the Secretary determines that the waiver is 
necessary to achieve one or more objectives set forth in paragraph (2).
    ``(5) In any sale of articles manufactured or services performed by 
employees of a Center pursuant to a waiver under paragraph (4), the 
Secretary shall charge the full cost of manufacturing the articles or 
performing the services, as the case may be. The full cost charged 
shall include both direct costs and indirect costs.''.
    (c) Private Sector Use of Excess Capacity.--Such section is further 
amended--
            (1) striking subsection (d);
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Private Sector Use of Excess Capacity.--Any facilities or 
equipment of a Center of Industrial and Technical Excellence made 
available to private industry may be used to perform maintenance or to 
produce goods in order to make more efficient and economical use of 
Government-owned industrial plants and encourage the creation and 
preservation of jobs to ensure the availability of a workforce with the 
necessary manufacturing and maintenance skills to meet the needs of the 
armed forces.''.
    (d) Crediting of Amounts for Performance.--Subsection (d) of such 
section, as redesignated by subsection (c)(2), is amended by adding at 
the end the following: ``Consideration in the form of rental payments 
or (notwithstanding section 3302(b) of title 31) in other forms may be 
accepted for a use of property accountable under a contract performed 
pursuant to this section. Notwithstanding section 2667(d) of this 
title, revenues generated pursuant to this section shall be available 
for facility operations, maintenance, and environmental restoration at 
the Center where the leased property is located.''.
    (e) Availability of Excess Equipment to Private-Sector Partners.--
Such section is further amended by adding at the end the following:
    ``(e) Availability of Excess Equipment to Private-Sector 
Partners.--Equipment or facilities of a Center of Industrial and 
Technical Excellence may be made available for use by a private-sector 
entity under this section only if--
            ``(1) the use of the equipment or facilities will not have 
        a significant adverse effect on the readiness of the armed 
        forces, as determined by the Secretary concerned or, in the 
        case of a Center in a Defense Agency, by the Secretary of 
        Defense; and
            ``(2) the private-sector entity agrees--
                    ``(A) to reimburse the Department of Defense for 
                the direct and indirect costs (including any rental 
                costs) that are attributable to the entity's use of the 
                equipment or facilities, as determined by that 
                Secretary; and
                    ``(B) to hold harmless and indemnify the United 
                States from--
                            ``(i) any claim for damages or injury to 
                        any person or property arising out of the use 
                        of the equipment or facilities, except in a 
                        case of willful conduct or gross negligence; 
                        and
                            ``(ii) any liability or claim for damages 
                        or injury to any person or property arising out 
                        of a decision by the Secretary concerned or the 
                        Secretary of Defense to suspend or terminate 
                        that use of equipment or facilities during a 
                        war or national emergency.''.
    (f) Loan Guarantee Program for Support of Public-Private 
Partnerships.--Chapter 146 of title 10, United States Code, is amended 
by adding at the end the following:
``Sec. 2475. Centers of Industrial and Technical Excellence: loan 
              guarantee program for support of public-private 
              partnerships
    ``(a) Program Authorized.--Subject to subsection (b), the Secretary 
of Defense may carry out a loan guarantee program to encourage 
commercial firms to use Centers of Industrial and Technical Excellence 
pursuant to section 2474 of this title. Under any such program, the 
Secretary may guarantee the repayment of any loan made to a commercial 
firm to fund, in whole or in part, the establishment of public-private 
partnerships authorized under subsection (b) of such section.
    ``(b) Advanced Budget Authority.--Loan guarantees under this 
section may not be committed except to the extent that appropriations 
of budget authority to cover their costs are made in advance, as 
required by section 504 of the Federal Credit Reform Act of 1990 (2 
U.S.C. 661c).
    ``(c) Program Administration.--(1) The Secretary may enter into an 
agreement with any of the officials named in paragraph (2) under which 
that official may, for the purposes of this section--
            ``(A) process applications for loan guarantees;
            ``(B) guarantee repayment of loans; and
            ``(C) provide any other services to the Secretary to 
        administer the loan guarantee program.
    ``(2) The officials referred to in paragraph (1) are as follows:
            ``(A) The Administrator of the Small Business 
        Administration.
            ``(B) The head of any appropriate agency in the Department 
        of Agriculture, including--
                    ``(i) the Administrator of the Farmers Home 
                Administration; and
                    ``(ii) the Administrator of the Rural Development 
                Administration.
    ``(3) Each official authorized to do so under an agreement entered 
into under paragraph (1) may guarantee loans under this section to 
commercial firms of any size, notwithstanding any limitations on the 
size of applicants imposed on other loan guarantee programs that the 
official administers.
    ``(4) To the extent practicable, each official processing loan 
guarantee applications under this section pursuant to an agreement 
entered into under paragraph (1) shall use the same processing 
procedures as the official uses for processing loan guarantee 
applications under other loan guarantee programs that the official 
administers.
    ``(d) Loan Limits.--The maximum amount of loan principal guaranteed 
during a fiscal year under this section may not exceed--
            ``(1) $20,000,000, with respect to any single borrower; and
            ``(2) $320,000,000 with respect to all borrowers.
    ``(e) Transfer of Funds.--The Secretary of Defense may transfer to 
an official providing services under subsection (c), and that official 
may accept, such funds as may be necessary to administer the loan 
guarantee program under this section.''.
    (g) Use of Working Capital-Funded Facilities.--Section 2208(j) of 
title 10, United States Code, is amended--
            (1) by striking ``contract; and'' in paragraph (1) and all 
        that follows through ``(2) the Department of Defense'' in 
        paragraph (2) and inserting the following: ``contract, and the 
        Department of Defense'';
            (2) by striking the period at the end and inserting ``; 
        or''; and
            (3) by adding at the end the following:
            ``(2) the Secretary would advance the objectives set forth 
        in section 2474(b)(2) of this title by authorizing the facility 
        to do so.''.
    (h) Repeal of General Authority To Lease Excess Depot-Level 
Equipment and Facilities to Outside Tenants.--Section 2471 of title 10, 
United States Code, is repealed.
    (i) Clerical Amendments.--The table of sections at the beginning of 
chapter 146 of such title is amended--
            (1) by striking the item relating to section 2471; and
            (2) by adding at the end the following:

``2475. Centers of Industrial and Technical Excellence: loan guarantee 
                            program for support of public-private 
                            partnerships.''.

SEC. 333. EFFECTS OF OUTSOURCING ON OVERHEAD COSTS OF CENTERS OF 
              INDUSTRIAL AND TECHNICAL EXCELLENCE AND AMMUNITION 
              PLANTS.

    (a) Findings.--Congress makes the following findings:
            (1) Centers of Industrial and Technical Excellence and 
        ammunition plants of the United States comprise a vital 
        component of the national technology and industrial base that 
        ensures that there is sufficient domestic industrial capacity 
        to meet the needs of the Armed Forces for certain critical 
        defense equipment and supplies in time of war or national 
        emergency.
            (2) Underutilization of the Centers of Industrial and 
        Technical Excellence and ammunition plants in peacetime does 
        not diminish the critical importance of those centers and 
        ammunition plants to the national defense.
    (b) Requirement for Reports.--(1) Subchapter V of chapter 148 of 
title 10, United States Code, is amended by adding at the end the 
following:
``Sec. 2539c. Centers of Industrial and Technical Excellence and 
              ammunition plants of the United States: effects of 
              outsourcing on overhead costs
    ``Not later than 30 days before any official of the Department of 
Defense enters into a contract with a private sector source for the 
performance of a workload already being performed by more than 50 
employees at a Center of Industrial and Technical Excellence designated 
under section 2474(a) of this title or an ammunition plant of the 
United States, the Secretary of Defense shall submit to Congress a 
report describing the effect that the performance and administration of 
the contract will have on the overhead costs of the center or 
ammunition plant, as the case may be.''.
    (2) The table of sections at the beginning of subchapter V of such 
chapter is amended by adding at the end the following:

``2539c. Centers of Industrial and Technical Excellence and ammunition 
                            plants of the United States: effects of 
                            outsourcing on overhead costs.''.

SEC. 334. REVISION OF AUTHORITY TO WAIVE LIMITATION ON PERFORMANCE OF 
              DEPOT-LEVEL MAINTENANCE.

    Section 2466(c) of title 10, United States Code, is amended to read 
as follows:
    ``(c) Waiver of Limitation.--The President may waive the limitation 
in subsection (a) for a fiscal year if--
            ``(1) the President determines that--
                    ``(A) the waiver is necessary for reasons of 
                national security; and
                    ``(B) compliance with the limitation cannot be 
                achieved through effective management of depot 
                operations consistent with those reasons; and
            ``(2) the President submits to Congress a notification of 
        the waiver together with a discussion of the reasons for the 
        waiver.''.

                  Subtitle E--Environmental Provisions

SEC. 341. ENVIRONMENTAL RESTORATION ACCOUNTS.

    (a) Additional Account for Formerly Used Defense Sites.--Subsection 
(a) of section 2703 of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(5) An account to be known as the `Environmental 
        Restoration Account, Formerly Used Defense Sites'.''.
    (b) Accounts as Sole Source of Funds for Operation and Monitoring 
of Environmental Remedies.--That section is further amended by adding 
at the end the following:
    ``(f) Accounts as Sole Source of Funds for Environmental 
Remedies.--(1) The sole source of funds for the long-term operation and 
monitoring of an environmental remedy at a facility under the 
jurisdiction of the Department of Defense shall be the applicable 
environmental restoration account under subsection (a).
    ``(2) In this subsection, the term `environmental remedy' shall 
have the meaning given the term `remedy' under section 101(24) of 
CERCLA (42 U.S.C. 9601(24)).''.

SEC. 342. PAYMENT OF FINES AND PENALTIES FOR ENVIRONMENTAL COMPLIANCE 
              VIOLATIONS.

    (a) Payment of Fines and Penalties.--(1) Chapter 160 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2710. Environmental compliance: payment of fines and penalties 
              for violations
    ``(a) In General.--The Secretary of Defense or the Secretary of a 
military department may not pay a fine or penalty for an environmental 
compliance violation that is imposed against the Department of Defense 
or such military department, as the case may be, unless the payment of 
the fine or penalty is specifically authorized by law, if--
            ``(1) the amount of the fine or penalty (including any 
        supplemental environmental projects carried out as part of such 
        penalty) is $1,500,000 or more; or
            ``(2) the fine or penalty is based on the application of 
        economic benefit criteria or size-of-business criteria.
    ``(b) Definitions.--In this section:
            ``(1)(A) Except as provided in subparagraph (B), the term 
        `environmental compliance', in the case of on-going operations, 
        functions, or activities at a Department of Defense facility, 
        means the activities necessary to ensure that such operations, 
        functions, or activities meet requirements under applicable 
        environmental law.
            ``(B) The term does not include operations, functions, or 
        activities relating to environmental restoration under this 
        chapter that are conducted using funds in an environmental 
        restoration account under section 2703(a) of this title.
            ``(2) The term `economic benefit criteria', in the case of 
        the imposition of a fine or penalty for an environmental 
        compliance violation, means criteria which determine the 
        existence of the violation, or the amount of the fine or 
        penalty, based on the assumption that a competitive advantage 
        was gained by a failure to invest money necessary to achieve 
        the environmental compliance concerned.
            ``(3) The term `size-of-business criteria', in the case of 
        the imposition of a fine or penalty for an environmental 
        compliance violation, means criteria which determine the 
        existence of the violation, or the amount of the fine or 
        penalty, based on an assessment of an entity's net worth and on 
        assumptions regarding the entity's ability to pay the fine or 
        penalty.
            ``(4) The term `violation', in the case of environmental 
        compliance, means an act or omission resulting in the failure 
        to ensure the compliance.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2710. Environmental compliance: payment of fines and penalties for 
                            violations.''.
    (b) Applicability.--(1) Section 2710 of title 10, United States 
Code (as added by subsection (a)), shall take effect on the date of the 
enactment of this Act.
    (2) Subsection (a)(1) of that section, as so added, shall not apply 
with respect to any supplemental environmental projects referred to in 
that subsection that were agreed to before the date of the enactment of 
this Act.

SEC. 343. ANNUAL REPORTS UNDER STRATEGIC ENVIRONMENTAL RESEARCH AND 
              DEVELOPMENT PROGRAM.

    (a) Repeal of Requirement for Annual Report from Scientific 
Advisory Board.--Section 2904 of title 10, United States Code, is 
amended--
            (1) by striking subsection (h); and
            (2) by redesignating subsection (i) as subsection (h).
    (b) Inclusion of Actions of Board in Annual Reports of Council.--
Section 2902(d)(3) of such title is amended by adding at the end the 
following subparagraph:
                    ``(D) A summary of the actions of the Strategic 
                Environmental Research and Development Program 
                Scientific Advisory Board during the year preceding the 
                year in which the report is submitted and any 
                recommendations, including recommendations on program 
                direction and legislation, that the Advisory Board 
                considers appropriate regarding the program.''.

SEC. 344. MODIFICATION OF AUTHORITY FOR INDEMNIFICATION OF TRANSFEREES 
              OF CLOSING DEFENSE PROPERTY.

    (a) Indemnification.--Subsection (a) of section 330 of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 104-484; 10 
U.S.C. 2687 note) is amended--
            (1) in paragraph (1), by striking ``and suit'' and all that 
        follows through the end and inserting the following: ``any 
        suit, claim, demand or action, administrative order or demand, 
        liability, judgment, cost, or other fee arising out of--
            ``(A) any claim for personal injury or property damage 
        (including death, illness, or loss or damage to property) that 
        results from, or is in any manner predicated upon, the release 
        or threatened release of any hazardous substance, pollutant or 
        contaminant, petroleum or petroleum derivative, or unexploded 
        ordnance as a result of Department of Defense activities at a 
        military installation (or any portion thereof) that is closed 
        or realigned pursuant to a base closure law; or
            ``(B) subject to paragraph (4), any legally binding 
        obligation to respond or pay response costs pursuant to the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601 et seq.), any other 
        Federal law, or any State law, that results from, or is in any 
        manner predicated upon, a release or threatened release 
        described in subparagraph (A).'';
            (2) in paragraph (3)--
                    (A) by striking ``To the extent'' and inserting 
                ``(A) Except as provided in subparagraph (B), to the 
                extent''; and
                    (B) by adding at the end the following:
    ``(B) The Secretary of the military department concerned may enter 
into an agreement in connection with any transfer of property covered 
by paragraph (2) which agreement shall specify the contribution of any 
person or entity described in that paragraph to a release or threatened 
release covered by this subsection. The specification of a contribution 
to a release or threatened release under this subparagraph shall govern 
indemnification for the release or threatened release under this 
subsection, except to the extent later evidence disproves the 
specification.''; and
            (3) by adding at the end the following:
    ``(4) Indemnification under paragraph (1)(B) with respect to a 
military installation (or portion thereof) shall cease five years after 
the date on which the Secretary of the military department concerned 
provides the covenant referred to in section 120(h)(3)(A)(ii)(I) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9620(h)(3)(A)(ii)(I)) with respect to the military 
installation (or portion thereof).''.
    (b) Conditions of Indemnification.--Subsection (b) of that section 
is amended by striking paragraphs (1) through (4) and inserting the 
following new paragraphs:
            ``(1) notifies the Secretary of the military department 
        concerned and the Attorney General in writing--
                    ``(A) within two months after the filing of any 
                suit, claim, or demand or action, or the issuance of 
                any administrative order or demand, that reasonably 
                could be expected to give rise to a liability, 
                judgment, cost, or other fee to which subsection (a)(1) 
                could apply; and
                    ``(B) before the settlement or other resolution of 
                such suit, claim, demand or action, or order or demand;
            ``(2) furnishes to the Secretary of the military department 
        concerned and the Attorney General copies of any pertinent 
        papers the person or entity receives;
            ``(3) furnishes to the Secretary of the military department 
        and the Attorney General evidence or proof of any suit, claim, 
        demand or action, administrative order or demand, liability, 
        judgment, cost, or other fee; and
            ``(4) provides, upon request of the Secretary of the 
        military department concerned or the Attorney General, access 
        to records and personnel of the person or entity for purposes 
        of defending or settling the suit, claim, demand or action, or 
        order or demand.''.
    (c) Settlement Authority of Secretary of Defense.--Subsection 
(c)(1) of that section is amended--
            (1) by inserting ``administrative order or demand,'' after 
        ``demand or action,''; and
            (2) by striking ``or property damage'' both places it 
        appears and inserting ``, property damage, or environmental 
        response or response cost''.
    (d) Conforming Repeal.--That section is further amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively.
    (e) Definitions.--Subsection (e) of that section, as redesignated 
by subsection (d)(2) of this section, is further amended by striking 
paragraph (1) and inserting the following new paragraph (1):
            ``(1) The terms `facility', `hazardous substance', 
        `release', `response', and `pollutant or contaminant' have the 
        meanings given such terms in paragraphs (9), (14), (22), (25), 
        and (33) of section 101 of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980, respectively 
        (42 U.S.C. 9601(9), (14), (22), (25), and (33)).''.

SEC. 345. PAYMENT OF FINES OR PENALTIES IMPOSED FOR ENVIRONMENTAL 
              COMPLIANCE VIOLATIONS AT CERTAIN DEPARTMENT OF DEFENSE 
              FACILITIES.

    (a) Army.--The Secretary of the Army may, from amounts authorized 
to be appropriated for the Army by this title and available for such 
purpose, utilize amounts for the purposes and at the locations, as 
follows:
            (1) $993,000 for a Supplemental Environmental Project to 
        implement an installation-wide hazardous substance management 
        system at Walter Reed Army Medical Center, Washington, District 
        of Columbia, in satisfaction of a fine imposed by Environmental 
        Protection Agency Region 3 under the Solid Waste Disposal Act 
        (42 U.S.C. 6901 et seq.).
            (2) $377,250 for a Supplemental Environmental Project to 
        install new parts washers at Fort Campbell, Kentucky, in 
        satisfaction of a fine imposed by Environmental Protection 
        Agency Region 4 under the Solid Waste Disposal Act.
            (3) $20,701 for a Supplemental Environmental Project to 
        upgrade the wastewater treatment plant at Fort Gordon, Georgia, 
        in satisfaction of a fine imposed by the State of Georgia under 
        the Solid Waste Disposal Act.
            (4) $78,500 for Supplemental Environmental Projects to 
        reduce the generation of hazardous waste at Pueblo Chemical 
        Depot, Colorado, in satisfaction of a fine imposed by the State 
        of Colorado under the Solid Waste Disposal Act.
            (5) $20,000 for a Supplemental Environmental Project to 
        repair cracks in floors of igloos used to store munitions 
        hazardous waste at Deseret Chemical Depot, Utah, in 
        satisfaction of a fine imposed by the State of Utah under the 
        Solid Waste Disposal Act.
    (b) Navy.--The Secretary of the Navy may, from amounts authorized 
to be appropriated for the Navy by this title and available for such 
purpose, utilize amounts for the purposes and at the locations, as 
follows:
            (1) $108,800 for payment to the West Virginia Division of 
        Environmental Protection of a cash penalty with respect to 
        Allegany Ballistics Laboratory, West Virginia, under the Solid 
        Waste Disposal Act.
            (2) $5,000 for payment to Environmental Protection Agency 
        Region 6 of a cash penalty with respect to Naval Air Station, 
        Corpus Christi, Texas, under the Clean Air Act (42 U.S.C. 
        7401).

SEC. 346. REIMBURSEMENT FOR CERTAIN COSTS IN CONNECTION WITH THE FORMER 
              NANSEMOND ORDNANCE DEPOT SITE, SUFFOLK, VIRGINIA.

    (a) Authority.--The Secretary of Defense may pay, using funds 
described in subsection (b), not more than $98,210 to the Former 
Nansemond Ordnance Depot Site Special Account within the Hazardous 
Substance Superfund established by section 9507 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9507) to reimburse the Environmental Protection 
Agency for costs incurred by the agency in overseeing a time critical 
removal action under CERCLA being performed by the Department of 
Defense under the Defense Environmental Restoration Program for 
ordnance and explosive safety hazards at the Former Nansemond Ordnance 
Depot Site, Suffolk, Virginia, pursuant to an Interagency Agreement 
entered into by the Department of the Army and the Environmental 
Protection Agency on January 3, 2000.
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using amounts authorized to be appropriated by section 301 to the 
Environmental Restoration Account, Formerly Used Defense Sites, 
established by paragraph (5) of section 2703(a) of title 10, United 
States Code, as added by section 341(a) of this Act.
    (c) Definitions.--In this section:
            (1) The term ``CERCLA'' means the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601 et seq.).
            (2) The term ``Defense Environmental Restoration Program'' 
        means the program of environmental restoration carried out 
        under chapter 160 of title 10, United States Code.

SEC. 347. ENVIRONMENTAL RESTORATION ACTIVITIES.

    (a) Authority To Use Funds for Facilities Relocation.--During the 
period beginning on October 1, 2000, and ending on September 30, 2003, 
the Secretary concerned may use funds available under section 2703 of 
title 10, United States Code, to pay for the costs of permanently 
relocating facilities because of a release or threatened release of 
hazardous substances, pollutants, or contaminants from--
            (1) real property or facilities currently under the 
        jurisdiction of the Secretary of Defense; or
            (2) real property or facilities that were under the 
        jurisdiction of the Secretary of Defense at the time of the 
        actions leading to such release or threatened release.
    (b) Limitations.--(1) The Secretary concerned may not pay the costs 
of permanently relocating facilities under subsection (a) unless the 
Secretary concerned determines in writing that such permanent 
relocation of facilities is part of a response action that--
            (A) has the support of the affected community;
            (B) has the approval of relevant regulatory agencies; and
            (C) is the most cost effective response action available.
    (2) Not more than 5 percent of the funds available under section 
2703 of title 10, United States Code, in any fiscal year may be used to 
pay the costs of permanently relocating facilities pursuant to the 
authority in subsection (a).
    (c) Reports.--(1) Not later than November 30 of each of 2001, 2002, 
and 2003, the Secretary of Defense shall submit to Congress a report on 
each response action for which a written determination has been made 
under subsection (b)(1) in the fiscal year ending in such year.
    (2) Each report for a fiscal year under paragraph (1) shall contain 
the following:
            (A) A copy of each written determination under subsection 
        (b)(1) during such fiscal year.
            (B) A description of the response action taken or to be 
        taken in connection with each such written determination.
            (C) A statement of the costs incurred or to be incurred in 
        connection with the permanent relocation of facilities covered 
        by each such written determination.
    (d) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' means the following:
            (1) The Secretary of a military department, with regard to 
        real property or facilities for which such military department 
        is the lead agency.
            (2) The Secretary of Defense, for any other real property 
        or facilities.

SEC. 348. SHIP DISPOSAL PROJECT.

    (a) Continuation of Project.--(1) Subject to the provisions of this 
subsection, the Secretary of the Navy shall continue to carry out a 
ship disposal project within the United States during fiscal year 2001.
    (2) The scope of the ship disposal project shall be sufficient to 
permit the Secretary to assemble appropriate data on the cost of 
scrapping ships.
    (3) The Secretary shall use competitive procedures to award all 
task orders under the primary contracts under the ship disposal 
project.
    (b) Report.--Not later than December 31, 2000, the Secretary shall 
submit to the congressional defense committees a report on the ship 
disposal project referred to in subsection (a). The report shall 
contain the following:
            (1) A description of the competitive procedures used for 
        the solicitation and award of all task orders under the 
        project.
            (2) A description of the task orders awarded under the 
        project.
            (3) An assessment of the results of the project as of the 
        date of the report, including the performance of contractors 
        under the project.
            (4) The proposed strategy of the Navy for future 
        procurement of ship scrapping activities.

SEC. 349. REPORT ON DEFENSE ENVIRONMENTAL SECURITY CORPORATE 
              INFORMATION MANAGEMENT PROGRAM.

    (a) Report Required.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the Defense Environmental 
Security Corporate Information Management program.
    (b) Report Elements.--The report under subsection (a) shall include 
the following elements:
            (1) The recommendations of the Secretary for the future 
        mission of the Defense Environmental Security Corporate 
        Information Management program.
            (2) A discussion of the means by which the program will 
        address or provide the following:
                    (A) Information access procedures which keep pace 
                with current and evolving requirements for information 
                access.
                    (B) Data standardization and systems integration.
                    (C) Product failures and cost-effective results.
                    (D) User confidence and utilization.
                    (E) Program continuity.
                    (F) Program accountability, including 
                accountability for all past, current, and future 
                activities funded under the program.
                    (G) Program management and oversight.
                    (H) Program compliance with applicable requirements 
                of the Clinger-Cohen Act of 1996 (divisions D and E of 
                Public Law 104-106) and applicable requirements under 
                other provisions of law.

SEC. 350. REPORT ON PLASMA ENERGY PYROLYSIS SYSTEM.

    (a) Report Required.--Not later than October 1, 2000, the Secretary 
of the Army shall submit to the congressional defense committees a 
report on the Plasma Energy Pyrolysis System (PEPS).
    (b) Report Elements.--The report on the Plasma Energy Pyrolysis 
System under subsection (a) shall include the following:
            (1) An analysis of available information and data on the 
        fixed-transportable unit demonstration phase of the System and 
        on the mobile unit demonstration phase of the System.
            (2) Recommendations regarding future applications for each 
        phase of the System described in paragraph (1).
            (3) A statement of the projected funding for such future 
        applications.

                       Subtitle F--Other Matters

SEC. 361. EFFECTS OF WORLDWIDE CONTINGENCY OPERATIONS ON READINESS OF 
              CERTAIN MILITARY AIRCRAFT AND EQUIPMENT.

    (a) Requirement for Report.--The Secretary of Defense shall submit 
to Congress, not later than 180 days after the date of the enactment of 
this Act, a report on--
            (1) the effects of worldwide contingency operations of the 
        Navy, Marine Corps, and Air Force on the readiness of aircraft 
        of those Armed Forces; and
            (2) the effects of worldwide contingency operations of the 
        Army and Marine Corps on the readiness of ground equipment of 
        those Armed Forces.
    (b) Content of Report.--The report shall contain the Secretary's 
assessment of the effects of the contingency operations referred to in 
subsection (a) on the capability of the Department of Defense to 
maintain a high level of equipment readiness and to manage a high 
operating tempo for the aircraft and ground equipment.
    (c) Effects on Aircraft.--The assessment contained in the report 
shall address, with respect to aircraft, the following effects:
            (1) The effects of the contingency operations carried out 
        during fiscal years 1995 through 2000 on the aircraft of each 
        of the Navy, Marine Corps, and Air Force in each category of 
        aircraft, as follows:
                    (A) Combat tactical aircraft.
                    (B) Strategic aircraft.
                    (C) Combat support aircraft.
                    (D) Combat service support aircraft.
            (2) The types of adverse effects on the aircraft of each of 
        the Navy, Marine Corps, and Air Force in each category of 
        aircraft specified in paragraph (1) resulting from contingency 
        operations, as follows:
                    (A) Patrolling in no-fly zones--
                            (i) over Iraq in Operation Northern Watch;
                            (ii) over Iraq in Operation Southern Watch; 
                        and
                            (iii) over the Balkans in Operation Allied 
                        Force.
                    (B) Air operations in the NATO air war against 
                Serbia in Operation Sky Anvil, Operation Noble Anvil, 
                and Operation Allied Force.
                    (C) Air operations in Operation Shining Hope in 
                Kosovo.
                    (D) All other activities within the general context 
                of worldwide contingency operations.
            (3) Any other effects that the Secretary considers 
        appropriate in carrying out subsection (a).
    (d) Effects on Ground Equipment.--The assessment contained in the 
report shall address, with respect to ground equipment, the following 
effects:
            (1) The effects of the contingency operations carried out 
        during fiscal years 1995 through 2000 on the ground equipment 
        of each of the Army and Marine Corps.
            (2) Any other effects that the Secretary considers 
        appropriate in carrying out subsection (a).

SEC. 362. REALISTIC BUDGETING FOR READINESS REQUIREMENTS OF THE ARMY.

    (a) Requirement for New Methodology.--The Secretary of the Army 
shall develop a new methodology for preparing budget requests for 
operation and maintenance that can be used to ensure that the budget 
requests for operation and maintenance for future fiscal years more 
accurately reflect the Army's requirements than do the budget requests 
that have been submitted to Congress for fiscal year 2001 and preceding 
fiscal years.
    (b) Sense of Congress on the New Methodology.--It is the sense of 
Congress that--
            (1) the methodology should provide for the determination of 
        the budget levels to request for operation and maintenance to 
        be based on--
                    (A) the level of training that must be conducted in 
                order to maintain essential readiness;
                    (B) the cost of conducting the training at that 
                level; and
                    (C) the costs of all other Army operations, 
                including the cost of meeting infrastructure 
                requirements; and
            (2) the Secretary should use the new methodology in the 
        preparation of the budget requests for operation and 
        maintenance for fiscal years after fiscal year 2001.

SEC. 363. ADDITIONS TO PLAN FOR ENSURING VISIBILITY OVER ALL IN-TRANSIT 
              END ITEMS AND SECONDARY ITEMS.

    (a) Required Additions.--Subsection (d) of section 349 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105-261; 112 Stat. 1981; 10 U.S.C. 2458 note) is amended--
            (1) by inserting before the period at the end of paragraph 
        (1) ``, including specific actions to address underlying 
        weaknesses in the controls over items being shipped''; and
            (2) by adding at the end the following:
            ``(5) The key management elements for monitoring, and for 
        measuring the progress achieved in, the implementation of the 
        plan, including--
                    ``(A) the assignment of oversight responsibility 
                for each action identified pursuant to paragraph (1);
                    ``(B) a description of the resources required for 
                oversight; and
                    ``(C) an estimate of the annual cost of 
                oversight.''.
    (b) Conforming Amendments.--(1) Subsection (a) of such section is 
amended by striking ``Not later than'' and all that follows through 
``Congress'' and inserting ``The Secretary of Defense shall prescribe 
and carry out''.
    (2) Such section is further amended by adding at the end the 
following:
    ``(f) Submissions to Congress.--After the Secretary submits the 
plan to Congress (on a date not later than March 1, 1999), the 
Secretary shall submit to Congress any revisions to the plan that are 
required by any law enacted after October 17, 1998. The revisions so 
made shall be submitted not later than 180 days after the date of the 
enactment of the law requiring the revisions.''.
    (3) Subsection (e)(1) of such section is amended by striking 
``submits the plan'' and inserting ``submits the initial plan''.

SEC. 364. PERFORMANCE OF EMERGENCY RESPONSE FUNCTIONS AT CHEMICAL 
              WEAPONS STORAGE INSTALLATIONS.

    (a) Restriction on Conversion.--The Secretary of the Army may not 
convert to contractor performance the emergency response functions of 
any chemical weapons storage installation that, as of the date of the 
enactment of this Act, are performed for that installation by employees 
of the United States until the certification required by subsection (c) 
has been submitted in accordance with that subsection.
    (b) Covered Installations.--For the purposes of this section, a 
chemical weapons storage installation is any installation of the 
Department of Defense on which lethal chemical agents or munitions are 
stored.
    (c) Certification Requirement.--The Secretary of the Army shall 
certify in writing to the Committees on Armed Services of the Senate 
and the House of Representatives that, to ensure that there will be no 
lapse of capability to perform the chemical weapon emergency response 
mission at a chemical weapons storage installation during any 
transition to contractor performance of those functions at that 
installation, the plan for conversion of the performance of those 
functions--
            (1) is consistent with the recommendation contained in 
        General Accounting Office Report NSIAD-00-88, entitled ``DoD 
        Competitive Sourcing'', dated March 2000; and
            (2) provides for a transition to contractor performance of 
        emergency response functions which ensures an adequate transfer 
        of the relevant knowledge and expertise regarding chemical 
        weapon emergency response to the contractor personnel.

SEC. 365. CONGRESSIONAL NOTIFICATION OF USE OF RADIO FREQUENCY SPECTRUM 
              BY A SYSTEM ENTERING ENGINEERING AND MANUFACTURING 
              DEVELOPMENT.

    Before a decision is made to enter into the engineering and 
manufacturing development phase of a program for the acquisition of a 
system that is to use the radio frequency spectrum, the Secretary of 
Defense shall submit to the congressional defense committees a report 
setting forth the following:
            (1) The frequency or frequencies that the system will use.
            (2) A statement of whether the Department of Defense is, or 
        is to be, designated as the primary user of the particular 
        frequency or frequencies.
            (3) If not, the unique technical characteristics that make 
        it necessary to use the particular frequency or frequencies.
            (4) A description of the protections that the Department of 
        Defense has been given to ensure that it will not incur costs 
        as a result of current or future interference from other users 
        of the particular frequency or frequencies.

SEC. 366. MONITORING OF VALUE OF PERFORMANCE OF DEPARTMENT OF DEFENSE 
              FUNCTIONS BY WORKFORCES SELECTED FROM BETWEEN PUBLIC AND 
              PRIVATE WORKFORCES.

    (a) Requirement for a Monitoring System.--(1) Chapter 146 of title 
10, United States Code, as amended by section 332(f), is further 
amended by adding at the end the following:
``Sec. 2476. Public-private workforce selections: system for monitoring 
              value
    ``(a) System for Monitoring Performance.--(1) The Secretary of 
Defense shall establish a system for monitoring the performance of 
functions of the Department of Defense that--
            ``(A) are performed by 50 or more employees of the 
        department; and
            ``(B) have been subjected to a workforce review.
    ``(2) In this section, the term `workforce review', with respect to 
a function, is a review to determine whether the function should be 
performed by a workforce composed of Federal Government employees or by 
a private sector workforce, and includes any review for that purpose 
that is carried out under, or is associated with, the following:
            ``(A) Office of Management and Budget Circular A-76.
            ``(B) A strategic sourcing.
            ``(C) A base closure or realignment.
            ``(D) Any other reorganization, privatization, or 
        reengineering of an organization.
    ``(b) Performance Measurements.--The system for monitoring the 
performance of a function shall provide for the measurement of the 
costs and benefits resulting from the selection of one workforce over 
the other workforce pursuant to a workforce review, as follows:
            ``(1) The costs incurred.
            ``(2) The savings derived.
            ``(3) The value of the performance by the selected 
        workforce measured against the costs of the performance of that 
        function by the workforce performing the function as of the 
        beginning of the workforce review, as the workforce then 
        performing the function was organized.
    ``(c) Annual Report.--The Secretary shall submit to Congress, not 
later than February 1 of each fiscal year, a report on the measurable 
value of the performance during the preceding fiscal year of the 
functions that have been subjected to a workforce review, as determined 
under the monitoring system established under subsection (a). The 
report shall display the findings separately for each of the armed 
forces and for each Defense Agency.
    ``(d) Consideration in Preparation of Future-Years Defense 
Program.--In preparing the future-years defense program under section 
221 of this title, the Secretary of Defense shall, for the fiscal years 
covered by the program, estimate and take into account the costs to be 
incurred and the savings to be derived from the performance of 
functions by workforces selected in workforce reviews. The Secretary 
shall consider the results of the monitoring under this section in 
making the estimates.''.
    (2) The table of sections at the beginning of such chapter, as 
amended by section 332(i)(2), is further amended by adding at the end 
the following:

``2476. Public-private workforce selections: system for monitoring 
                            value.''.
    (b) Content of Congressional Notification of Conversions.--
Paragraph (1) of section 2461(c) of title 10, United States Code, is 
amended--
            (1) by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (D), (F) and (G);
            (2) by inserting after subparagraph (B), the following new 
        subparagraph (C):
            ``(C) The Secretary's certification that the factors 
        considered in the examinations performed under subsection 
        (b)(3), and in the making of the decision to change 
        performance, did not include any predetermined personnel 
        constraint or limitation in terms of man years, end strength, 
        full-time equivalent positions, or maximum number of 
        employees.''; and
            (3) by inserting after subparagraph (D), as redesignated by 
        paragraph (1), the following new subparagraph (E):
            ``(E) A statement of the potential economic effect of the 
        change on each affected local community, as determined in the 
        examination under subsection (b)(3)(B)(ii).''.

SEC. 367. SUSPENSION OF REORGANIZATION OF NAVAL AUDIT SERVICE.

    The Secretary of the Navy shall cease any consolidations, 
involuntary transfers, buy-outs, or reductions in force of the 
workforce of auditors and administrative support personnel of the Naval 
Audit Service that are associated with the reorganization or relocation 
of the performance of the auditing functions of the Navy until 60 days 
after the date on which the Secretary submits to the congressional 
defense committees a report that sets forth in detail the Navy's plans 
and justification for the reorganization or relocation, as the case may 
be.

SEC. 368. INVESTMENT OF COMMISSARY TRUST REVOLVING FUND.

    Section 2486 of title 10, United States Code, is amended--
            (1) in subsection (g)(5), by striking ``(5) In this 
        subsection'' and inserting ``(i) Commissary Trust Revolving 
        Fund Defined.--In this section''; and
            (2) by inserting after subsection (g)(4) the following:
    ``(h) Investment of Commissary Trust Revolving Fund.--The Secretary 
of Defense shall invest such portion of the commissary trust revolving 
fund as is not, in the judgment of the Secretary, required to meet 
current withdrawals. The investments shall be in public debt securities 
with maturities suitable to the needs of the fund, as determined by the 
Secretary, and bearing interest at rates determined by the Secretary of 
the Treasury, taking into consideration current market yields on 
outstanding marketable obligations of the United States of comparable 
maturities. The income derived from the investments shall be credited 
to and form a part of the fund.''.

SEC. 369. ECONOMIC PROCUREMENT OF DISTILLED SPIRITS.

    Subsection 2488(c) of title 10, United States Code, is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).

SEC. 370. RESALE OF ARMOR-PIERCING AMMUNITION DISPOSED OF BY THE ARMY.

    (a) Restriction.--(1) Chapter 443 of title 10, United States Code, 
is amended by adding at the end the following:
``Sec. 4688. Armor-piercing ammunition and components: condition on 
              disposal
    ``(a) Limitation on Resale or Other Transfer.--Except as provided 
in subsection (b), whenever the Secretary of the Army carries out a 
disposal (by sale or otherwise) of armor-piercing ammunition, or a 
component of armor-piercing ammunition, the Secretary shall require as 
a condition of the disposal that the recipient agree in writing not to 
sell or otherwise transfer any of the ammunition (reconditioned or 
otherwise), or any armor-piercing component of that ammunition, to any 
purchaser in the United States other than a law enforcement or other 
governmental agency.
    ``(b) Exception.--Subsection (a) does not apply to a transfer of a 
component of armor-piercing ammunition solely for the purpose of metal 
reclamation by means of a destructive process such as melting, 
crushing, or shredding.
    ``(c) Special Rule for Non-Armor-Piercing Components.--A component 
of the armor-piercing ammunition that is not itself armor-piercing and 
is not subjected to metal reclamation as described in subsection (b) 
may not be used as a component in the production of new or 
remanufactured armor-piercing ammunition other than for sale to a law 
enforcement or other governmental agency or for a government-to-
government sale or commercial export to a foreign government under the 
Arms Export Control Act.
    ``(d) Definition.--In this section, the term `armor-piercing 
ammunition' means a center-fire cartridge the military designation of 
which includes the term `armor penetrator' or `armor-piercing', 
including a center-fire cartridge designated as armor-piercing 
incendiary (API) or armor-piercing incendiary-tracer (API-T).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``4688. Armor-piercing ammunition and components: condition on 
                            disposal.''.
    (b) Applicability.--Section 4688 of title 10, United States Code 
(as added by subsection (a)), shall apply with respect to any disposal 
of ammunition or components referred to in that section after the date 
of the enactment of this Act.

SEC. 371. DAMAGE TO AVIATION FACILITIES CAUSED BY ALKALI SILICA 
              REACTIVITY.

    (a) Assessment Required.--The Secretary of Defense shall assess the 
damage caused to aviation facilities of the Department of Defense by 
alkali silica reactivity. In making the assessment, the Secretary shall 
review the department's aviation facilities throughout the world.
    (b) Damage Prevention and Mitigation Plan.--(1) Taking into 
consideration the assessment under subsection (a), the Secretary may 
develop and, during fiscal years 2001 through 2006, carry out a plan to 
prevent and mitigate damage to the aviation facilities of the 
Department of Defense as a result of alkali silica reactivity.
    (2) A plan developed under paragraph shall provide for the 
following:
            (A) Treatment of alkali silica reactivity in pavement and 
        structures at a selected test site.
            (B) The demonstration and deployment of technologies 
        capable of mitigating alkali silica reactivity in hardened 
        concrete structures and pavements.
            (C) The promulgation of specific guidelines for appropriate 
        testing and use of lithium salts to prevent alkali silica 
        reactivity in new construction.
    (c) Delegation of Authority.--The Secretary shall direct the Chief 
of Engineers of the Army and the Commander of the Naval Facilities 
Engineering Command to carry out the assessment required by subsection 
(a) and to develop and carry out the plan required by subsection (b).
    (d) Funding.--Of the amounts authorized to be appropriated under 
section 301, not more than $5,000,000 is available for carrying out 
this section.

SEC. 372. REAUTHORIZATION OF PILOT PROGRAM FOR ACCEPTANCE AND USE OF 
              LANDING FEES CHARGED FOR USE OF DOMESTIC MILITARY 
              AIRFIELDS BY CIVIL AIRCRAFT.

    (a) Reauthorization.--Subsection (a) of section 377 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105-261; 112 Stat. 1993; 10 U.S.C. 113 note) is amended as 
follows:
            (1) by striking ``1999 and 2000'' and inserting ``2001 
        through 2010''; and
            (2) by striking the second sentence and inserting ``The 
        pilot program under this section may not be carried out after 
        September 30, 2010.''.
    (b) Fees Collected.--Subsection (b) of such section is amended to 
read as follows:
    ``(b) Landing Fee Defined.--For the purposes of this section, the 
term `landing fee' means any fee that is established under or in 
accordance with regulations of the military department concerned 
(whether prescribed in a fee schedule or imposed under a joint-use 
agreement) to recover costs incurred for use by civil aircraft of an 
airfield of the military department in the United States or in a 
territory or possession of the United States.''.
    (c) Use of Proceeds.--Subsection (c) of such section is amended by 
striking ``Amounts received for a fiscal year in payment of landing 
fees imposed under the pilot program for use of a military airfield'' 
and inserting ``Amounts received in payment of landing fees for use of 
a military airfield in a fiscal year of the pilot program''.
    (d) Report.--Subsection (d) of such section is amended--
            (1) by striking ``March 31, 2000,'' and inserting ``March 
        31, 2003,''; and
            (2) by striking ``December 31, 1999'' and inserting 
        ``December 31, 2002''.

SEC. 373. REIMBURSEMENT BY CIVIL AIR CARRIERS FOR SUPPORT PROVIDED AT 
              JOHNSTON ATOLL.

    (a) In General.--Chapter 949 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 9783. Johnston Atoll: reimbursement for support provided to 
              civil air carriers
    ``(a) Authority of the Secretary.--The Secretary of the Air Force 
may, under regulations prescribed by the Secretary, require payment by 
a civil air carrier for support provided by the United States to the 
carrier at Johnston Atoll that is either--
            ``(1) requested by the civil air carrier; or
            ``(2) determined under the regulations as being necessary 
        to accommodate the civil air carrier's use of Johnston Atoll.
    ``(b) Amount of Charges.--Any amount charged an air carrier under 
subsection (a) for support shall be equal to the total amount of the 
actual costs to the United States of providing the support. The amount 
charged may not include any amount for an item of support that does not 
satisfy a condition described in paragraph (1) or (2) of subsection 
(a).
    ``(c) Relationship to Landing Fees.--No landing fee shall be 
charged an air carrier for a landing of an aircraft of the air carrier 
at Johnston Atoll if the air carrier is charged under subsection (a) 
for support provided to the air carrier.
    ``(d) Disposition of Payments.--(1) Notwithstanding any other 
provision of law, amounts collected from an air carrier under this 
section shall be credited to appropriations available for the fiscal 
year in which collected, as follows:
            ``(A) For support provided by the Air Force, to 
        appropriations available for the Air Force for operation and 
        maintenance.
            ``(B) For support provided by the Army, to appropriations 
        available for the Army for chemical demilitarization.
    ``(2) Amounts credited to an appropriation under paragraph (1) 
shall be merged with funds in that appropriation and shall be 
available, without further appropriation, for the purposes and period 
for which the appropriation is available.
    ``(e) Definitions.--In this section:
            ``(1) The term `civil air carrier' means an air carrier (as 
        defined in section 40101(a)(2) of title 49) that is issued a 
        certificate of public convenience and necessity under section 
        41102 of such title.
            ``(2) The term `support' includes fuel, fire rescue, use of 
        facilities, improvements necessary to accommodate use by civil 
        air carriers, police, safety, housing, food, air traffic 
        control, suspension of military operations on the island 
        (including operations at the Johnston Atoll Chemical Agent 
        Demilitarization System), repairs, and any other construction, 
        services, or supplies.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``9783. Johnston Atoll: reimbursement for support provided to civil air 
                            carriers.''.

SEC. 374. REVIEW OF COSTS OF MAINTAINING HISTORICAL PROPERTIES.

    (a) Requirement for Review.--The Comptroller General of the United 
States shall conduct a review of the annual costs incurred by the 
Department of Defense to comply with the requirements of the National 
Historic Preservation Act (16 U.S.C. 470 et seq.).
    (b) Report.--Not later than February 28, 2001, the Comptroller 
General shall submit to the congressional defense committees a report 
on the results of the review. The report shall contain the following:
            (1) For each military department and Defense Agency and for 
        the Department of Defense in the aggregate, the cost for fiscal 
        year 2000 and the projected costs for the ensuing 10 fiscal 
        years.
            (2) An analysis of the cost to maintain only those 
        properties that qualified as historic properties under the 
        National Historic Preservation Act when such Act was originally 
        enacted.
            (3) The accounts used for paying the costs of complying 
        with the requirements of the National Historic Preservation 
        Act.
            (4) For each military department and Defense Agency, the 
        identity of all properties that must be maintained in order to 
        comply with the requirements of the National Historic 
        Preservation Act.

SEC. 375. EXTENSION OF AUTHORITY TO SELL CERTAIN AIRCRAFT FOR USE IN 
              WILDFIRE SUPPRESSION.

    Section 2 of the Wildfire Suppression Aircraft Transfer Act of 1996 
(Public Law 104-307) is amended--
            (1) in subsection (a)(1) by striking ``September 30, 2000'' 
        and inserting ``September 30, 2005'';
            (2) by adding at the end of subsection (d)(1) the 
        following: ``After taking effect, the regulations shall be 
        effective until the end of the period specified in subsection 
        (a)(1).'';
            (3) in subsection (f), by striking ``March 31, 2000'' and 
        inserting ``March 31, 2005''.

SEC. 376. OVERSEAS AIRLIFT SERVICE ON CIVIL RESERVE AIR FLEET AIRCRAFT.

    (a) In General.--Section 41106(a) of title 49, United States Code, 
is amended--
            (1) by striking ``General.--(1) Except as provided in 
        subsection (b),'' and inserting ``Interstate Transportation.--
        (1) Except as provided in subsection (d),'';
            (2) in paragraph (1), by striking ``of at least 31 days'';
            (3) by redesignating subsection (b) as subsection (d); and
            (4) by inserting after subsection (a) the following:
    ``(b) Transportation Between the United States and Foreign 
Locations.--Except as provided in subsection (d), the transportation of 
passengers or property by transport category aircraft between a place 
in the United States and a place outside the United States obtained by 
the Secretary of Defense or the Secretary of a military department 
through a contract for airlift service may be provided by an air 
carrier referred to in subsection (a).
    ``(c) Transportation Between Foreign Locations.--The transportation 
of passengers or property by transport category aircraft between two 
places outside the United States obtained by the Secretary of Defense 
or the Secretary of a military department through a contract for 
airlift service shall be provided by an air carrier that has aircraft 
in the civil reserve air fleet whenever transportation by such an air 
carrier is reasonably available.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2000.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2001, as follows:
            (1) The Army, 480,000.
            (2) The Navy, 372,000.
            (3) The Marine Corps, 172,600.
            (4) The Air Force, 357,000.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2001, as follows:
            (1) The Army National Guard of the United States, 350,088.
            (2) The Army Reserve, 205,000.
            (3) The Naval Reserve, 88,900.
            (4) The Marine Corps Reserve, 39,558.
            (5) The Air National Guard of the United States, 108,022.
            (6) The Air Force Reserve, 74,300.
            (7) The Coast Guard Reserve, 8,500.
    (b) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
            (1) the total authorized strength of units organized to 
        serve as units of the Selected Reserve of such component which 
        are on active duty (other than for training) at the end of the 
        fiscal year; and
            (2) the total number of individual members not in units 
        organized to serve as units of the Selected Reserve of such 
        component who are on active duty (other than for training or 
        for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2001, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 22,536.
            (2) The Army Reserve, 12,806.
            (3) The Naval Reserve, 14,649.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 11,170.
            (6) The Air Force Reserve, 1,278.

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

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2001 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army Reserve, 5,249.
            (2) For the Army National Guard of the United States, 
        22,357.
            (3) For the Air Force Reserve, 9,733.
            (4) For the Air National Guard of the United States, 
        22,221.

SEC. 414. FISCAL YEAR 2001 LIMITATION ON NON-DUAL STATUS TECHNICIANS.

    (a) Limitation.--The number of non-dual status technicians employed 
by the reserve components of the Army and the Air Force as of September 
30, 2001, may not exceed the following:
            (1) For the Army Reserve, 1,195.
            (2) For the Army National Guard of the United States, 
        1,600.
            (3) For the Air Force Reserve, 0.
            (4) For the Air National Guard of the United States, 326.
    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given the term in 
section 10217(a) of title 10, United States Code.
    (c) Postponement of Permanent Limitation.--Section 10217(c)(2) of 
title 10, United States Code, is amended by striking ``October 1, 
2001'' and inserting ``October 1, 2002''.

SEC. 415. INCREASE IN NUMBERS OF MEMBERS IN CERTAIN GRADES AUTHORIZED 
              TO BE ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

    (a) Officers.--The table in section 12011(a) of title 10, United 
States Code, is amended to read as follows:
      

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,227   1,071     898      140
Lieutenant Colonel or Commander.....    1,687     520     844       90
Colonel or Navy Captain.............     511      188     317     30''.
------------------------------------------------------------------------

    (b) Senior Enlisted Members.--The table in section 12012(a) of 
title 10, United States Code, is amended to read as follows:
      

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
E-9.................................     662     202       501      20
E-8.................................   2,676     429     1,102    94''.
------------------------------------------------------------------------

       Subtitle C--Other Matters Relating to Personnel Strengths

SEC. 421. SUSPENSION OF STRENGTH LIMITATIONS DURING WAR OR NATIONAL 
              EMERGENCY.

    (a) Senior Enlisted Members.--Section 517 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection (c):
    ``(c) The Secretary of Defense may suspend the operation of this 
section in time of war or of national emergency declared by the 
Congress or by the President. Any suspension shall, if not sooner 
ended, end on the last day of the 2-year period beginning on the date 
on which the suspension (or the last extension thereof) takes effect or 
on the last day of the 1-year period beginning on the date of the 
termination of the war or national emergency, whichever occurs first. 
Title II of the National Emergencies Act (50 U.S.C. 1621-1622) shall 
not apply to an extension under this subsection.''.
    (b) Senior AGR Personnel.--(1) Chapter 1201 of such title is 
amended by adding at the end the following:
``Sec. 12013. Authority to suspend sections 12011 and 12012
    ``The Secretary of Defense may suspend the operation of section 
12011 or 12012 of this title in time of war or of national emergency 
declared by the Congress or by the President. Any suspension shall, if 
not sooner ended, end on the last day of the 2-year period beginning on 
the date on which the suspension (or the last extension thereof) takes 
effect or on the last day of the 1-year period beginning on the date of 
the termination of the war or national emergency, whichever occurs 
first. Title II of the National Emergencies Act (50 U.S.C. 1621-1622) 
shall not apply to an extension under this subsection.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``12013. Authority to suspend sections 12011 and 12012.''.

SEC. 422. EXCLUSION OF CERTAIN RESERVE COMPONENT MEMBERS ON ACTIVE DUTY 
              FOR MORE THAN 180 DAYS FROM ACTIVE COMPONENT END 
              STRENGTHS.

    Section 115(d) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(9) Members of reserve components (not described in 
        paragraph (8)) on active duty for more than 180 days to perform 
        special work in support of the armed forces (other than in 
        support of the Coast Guard) and the combatant commands, except 
        that the number of the members excluded under this paragraph 
        may not exceed the number equal to two-tenths of one percent of 
        the end strength authorized for active-duty personnel under 
        subsection (a)(1)(A).''.

SEC. 423. EXCLUSION OF ARMY AND AIR FORCE MEDICAL AND DENTAL OFFICERS 
              FROM LIMITATION ON STRENGTHS OF RESERVE COMMISSIONED 
              OFFICERS IN GRADES BELOW BRIGADIER GENERAL.

    Section 12005(a) of title 10, United States Code, is amended by 
adding at the end the following:
    ``(3) Medical officers and dental officers shall not be counted for 
the purposes of this subsection.''.

SEC. 424. AUTHORITY FOR TEMPORARY INCREASES IN NUMBER OF RESERVE 
              PERSONNEL SERVING ON ACTIVE DUTY OR FULL-TIME NATIONAL 
              GUARD DUTY IN CERTAIN GRADES.

    (a) Officers.--Section 12011 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) Upon increasing under subsection (c)(2) of section 115 of 
this title the end strength that is authorized under subsection 
(a)(1)(B) of that section for a fiscal year for active-duty personnel 
and full-time National Guard duty personnel of an armed force who are 
to be paid from funds appropriated for reserve personnel, the Secretary 
of Defense may increase for that fiscal year the limitation that is set 
forth in subsection (a) of this section for the number of officers of 
that armed force serving in any grade if the Secretary determines that 
such action is in the national interest. The percent of the increase 
may not exceed the percent by which the Secretary increases that end 
strength.''.
    (b) Enlisted Personnel.--Section 12012 of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(c) Upon increasing under subsection (c)(2) of section 115 of 
this title the end strength that is authorized under subsection 
(a)(1)(B) of that section for a fiscal year for active-duty personnel 
and full-time National Guard duty personnel of an armed force who are 
to be paid from funds appropriated for reserve personnel, the Secretary 
of Defense may increase for that fiscal year the limitation that is set 
forth in subsection (a) of this section for the number of enlisted 
members of that armed force serving in any grade if the Secretary 
determines that such action is in the national interest. The percent of 
the increase may not exceed the percent by which the Secretary 
increases that end strength.''.

SEC. 425. TEMPORARY EXEMPTION OF DIRECTOR OF THE NATIONAL SECURITY 
              AGENCY FROM LIMITATIONS ON NUMBER OF AIR FORCE OFFICERS 
              ABOVE MAJOR GENERAL.

    Section 525(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(8) An Air Force officer while serving as Director of the 
National Security Agency is in addition to the number that would 
otherwise be permitted for the Air Force for officers serving on active 
duty in grades above major general under paragraph (1) and the number 
that would otherwise be permitted for the Air Force for officers 
serving on active duty in grades above brigadier general under 
subsection (a). This paragraph shall not be effective after September 
30, 2005.''.

              Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2001 a total of 
$75,632,266,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 2001.

                   TITLE V--MILITARY PERSONNEL POLICY

SEC. 501. ELIGIBILITY OF ARMY RESERVE COLONELS AND BRIGADIER GENERALS 
              FOR POSITION VACANCY PROMOTIONS.

    Section 14315(b)(1) of title 10, United States Code, is amended by 
inserting after ``(A) is assigned to the duties of a general officer of 
the next higher reserve grade in the Army Reserve'' the following: ``or 
is recommended for such an assignment under regulations prescribed by 
the Secretary of the Army''.

SEC. 502. PROMOTION ZONES FOR COAST GUARD RESERVE OFFICERS.

    (a) Flexible Authority To Meet Coast Guard Needs.--Section 729(d) 
of title 14, United States Code, is amended to read as follows:
    ``(d)(1) Before convening a selection board to recommend Reserve 
officers for promotion, the Secretary shall establish a promotion zone 
for officers serving in each grade and competitive category to be 
considered by the board. The Secretary shall determine the number of 
officers in the promotion zone for officers serving in any grade and 
competitive category from among officers who are eligible for promotion 
in that grade and competitive category.
    ``(2) Before convening a selection board to recommend Reserve 
officers for promotion to a grade above lieutenant (junior grade), the 
Secretary shall determine the maximum number of officers in that grade 
and competitive category that the board may recommend for promotion. 
The Secretary shall make the determination under the preceding sentence 
of the maximum number that may be recommended with a view to having in 
an active status a sufficient number of Reserve officers in each grade 
and competitive category to meet the needs of the Coast Guard for 
Reserve officers in an active status. In order to make that 
determination, the Secretary shall determine (A) the number of 
positions needed to accomplish mission objectives which require 
officers of such competitive category in the grade to which the board 
will recommend officers for promotion, (B) the estimated number of 
officers needed to fill vacancies in such positions during the period 
in which it is anticipated that officers selected for promotion will be 
promoted, (C) the number of officers authorized by the Secretary to 
serve in an active status in the grade and competitive category under 
consideration, and (D) any statutory limitation on the number of 
officers in any grade or category (or combination thereof) authorized 
to be in an active status.
    ``(3)(A) The Secretary may, when the needs of the Coast Guard 
require, authorize the consideration of officers in a grade above 
lieutenant (junior grade) for promotion to the next higher grade from 
below the promotion zone.
    ``(B) When selection from below the promotion zone is authorized, 
the Secretary shall establish the number of officers that may be 
recommended for promotion from below the promotion zone in each 
competitive category to be considered. That number may not exceed the 
number equal to 10 percent of the maximum number of officers that the 
board is authorized to recommend for promotion in such competitive 
category, except that the Secretary may authorize a greater number, not 
to exceed 15 percent of the total number of officers that the board is 
authorized to recommend for promotion, if the Secretary determines that 
the needs of the Coast Guard so require. If the maximum number 
determined under this paragraph is less than one, the board may 
recommend one officer for promotion from below the promotion zone.
    ``(C) The number of officers recommended for promotion from below 
the promotion zone does not increase the maximum number of officers 
that the board is authorized to recommend for promotion under paragraph 
(2).''.
    (b) Running Mate System.--(1) Section 731 of such title is 
amended--
            (A) by designating the text of such section as subsection 
        (b);
            (B) by inserting after the section heading the following:
    ``(a) Authority To Use Running Mate System.--The Secretary may by 
regulation implement section 729(d)(1) of this title by requiring that 
the promotion zone for consideration of Reserve officers in an active 
status for promotion to the next higher grade be determined in 
accordance with a running mate system as provided in subsection (b).'';
            (C) in subsection (b), as designated by subparagraph (A), 
        by striking ``Subject to the eligibility requirements of this 
        subchapter, a Reserve officer shall'' and inserting the 
        following: ``Consideration for Promotion.--If promotion zones 
        are determined as authorized under subsection (a), a Reserve 
        officer shall, subject to the eligibility requirements of this 
        subchapter,''; and
            (D) by adding at the end the following:
    ``(c) Consideration of Officers Below the Zone.--If the Secretary 
authorizes the selection of officers for promotion from below the 
promotion zone in accordance with section 729(d)(3) of this title, the 
number of officers to be considered from below the zone may be 
established through the application of the running mate system under 
this subchapter or otherwise as the Secretary determines to be 
appropriate to meet the needs of the Coast Guard.''.
    (2)(A) The heading for such section is amended to read as follows:
``Sec. 731. Establishment of promotion zones: running mate system''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 21 of title 14, United States Code, is amended 
to read as follows:

``731. Establishment of promotion zones: running mate system.''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2000, and shall apply with 
respect to selection boards convened under section 730 of title 14, 
United States Code, on or after that date.

SEC. 503. TIME FOR RELEASE OF OFFICER PROMOTION SELECTION BOARD 
              REPORTS.

    (a) Active-Duty List Officer Boards.--Section 618(e) of title 10, 
United States Code, is amended to read as follows:
    ``(e)(1) The names of the officers recommended for promotion in the 
report of a selection board may be disseminated to the armed force 
concerned as follows:
            ``(A) In the case of officers recommended for promotion to 
        a grade below brigadier general or rear admiral (lower half), 
        upon the transmittal of the report to the President.
            ``(B) In the case of officers recommended for promotion to 
        a grade above colonel or, in the case of the Navy, captain, 
        upon the approval of the report by the President.
            ``(C) In the case of officers whose names have not been 
        sooner disseminated, upon confirmation by the Senate.
    ``(2) A list of names of officers disseminated under paragraph (1) 
may not include--
            ``(A) any name removed by the President from the report of 
        the selection board containing that name, if dissemination is 
        under the authority of subparagraph (B) of such paragraph; or
            ``(B) the name of any officer whose promotion the Senate 
        failed to confirm, if dissemination is under the authority of 
        subparagraph (C) of such paragraph.''.
    (b) Reserve Active-Status List Officer Boards.--The text of section 
14112 of title 10, United States Code, is amended to read as follows:
    ``(a) Time for Dissemination.--The names of the officers 
recommended for promotion in the report of a selection board may be 
disseminated to the armed force concerned as follows:
            ``(1) In the case of officers recommended for promotion to 
        a grade below brigadier general or rear admiral (lower half), 
        upon the transmittal of the report to the President.
            ``(2) In the case of officers recommended for promotion to 
        a grade above colonel or, in the case of the Navy, captain, 
        upon the approval of the report by the President.
            ``(3) In the case of officers whose names have not been 
        sooner disseminated, upon confirmation by the Senate.
    ``(b) Names Not Disseminated.--A list of names of officers 
disseminated under subsection (a) may not include--
            ``(1) any name removed by the President from the report of 
        the selection board containing that name, if dissemination is 
        under the authority of paragraph (2) of such subsection; or
            ``(2) the name of any officer whose promotion the Senate 
        failed to confirm, if dissemination is under the authority of 
        paragraph (3) of such subsection.''.

SEC. 504. CLARIFICATION OF AUTHORITY FOR POSTHUMOUS COMMISSIONS AND 
              WARRANTS.

    Section 1521(a)(3) of title 10, United States Code, is amended to 
read as follows:
            ``(3) was officially recommended for appointment or 
        promotion to a commissioned grade but died in line of duty 
        before the appointment or promotion was approved by the 
        Secretary concerned or before accepting the appointment or 
        promotion.''.

SEC. 505. INAPPLICABILITY OF ACTIVE-DUTY LIST PROMOTION, SEPARATION, 
              AND INVOLUNTARY RETIREMENT AUTHORITIES TO RESERVE GENERAL 
              AND FLAG OFFICERS SERVING IN CERTAIN POSITIONS DESIGNATED 
              FOR RESERVE OFFICERS BY THE CHAIRMAN OF THE JOINT CHIEFS 
              OF STAFF.

    Section 641(1)(B) of title 10, United States Code, is amended by 
inserting ``526(b)(2)(A),'' after ``on active duty under section''.

SEC. 506. REVIEW OF ACTIONS OF SELECTION BOARDS.

    (a) In General.--(1) Chapter 79 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 1558. Exclusive remedies in cases involving selection boards
    ``(a) Correction of Military Records.--The Secretary concerned may 
correct a person's military records in accordance with a recommendation 
made by a special board. Any such correction shall be effective, 
retroactively, as of the effective date of the action taken on a report 
of a previous selection board that resulted in the action corrected in 
the person's military records.
    ``(b) Relief Associated With Corrections of Certain Actions.--(1) 
The Secretary concerned shall ensure that a person receives relief 
under paragraph (2) or (3), as the person may elect, if the person--
            ``(A) was separated or retired from an armed force, or 
        transferred to the retired reserve or to inactive status in a 
        reserve component, as a result of a recommendation of a 
        selection board; and
            ``(B) becomes entitled to retention on or restoration to 
        active duty or active status in a reserve component as a result 
        of a correction of the person's military records under 
        subsection (a).
    ``(2)(A) With the consent of a person referred to in paragraph (1), 
the person shall be retroactively and prospectively restored to the 
same status, rights, and entitlements (less appropriate offsets against 
back pay and allowances) in the person's armed force as the person 
would have had if the person had not been selected to be separated, 
retired, or transferred to the retired reserve or to inactive status in 
a reserve component, as the case may be, as a result of an action 
corrected under subsection (a). An action under this subparagraph is 
subject to subparagraph (B).
    ``(B) Nothing in subparagraph (A) shall be construed to permit a 
person to be on active duty or in an active status in a reserve 
component after the date on which the person would have been separated, 
retired, or transferred to the retired reserve or to inactive status in 
a reserve component if the person had not been selected to be 
separated, retired, or transferred to the retired reserve or to 
inactive status in a reserve component, as the case may be, in an 
action of a selection board that is corrected under subsection (a).
    ``(3) If the person does not consent to a restoration of status, 
rights, and entitlements under paragraph (2), the person shall receive 
back pay and allowances (less appropriate offsets) and service credit 
for the period beginning on the date of the person's separation, 
retirement, or transfer to the retired reserve or to inactive status in 
a reserve component, as the case may be, and ending on the earlier of--
            ``(A) the date on which the person would have been so 
        restored under paragraph (2), as determined by the Secretary 
        concerned; or
            ``(B) the date on which the person would otherwise have 
        been separated, retired, or transferred to the retired reserve 
        or to inactive status in a reserve component, as the case may 
        be.
    ``(c) Finality of Unfavorable Action.--If a special board makes a 
recommendation not to correct the military records of a person 
regarding action taken in the case of that person on the basis of a 
previous report of a selection board, the action previously taken on 
that report shall be considered as final as of the date of the action 
taken on that report.
    ``(d) Regulations.--(1) The Secretary concerned may prescribe 
regulations to carry out this section (other than subsection (e)) with 
respect to the armed force or armed forces under the jurisdiction of 
the Secretary.
    ``(2) The Secretary may prescribe in the regulations the 
circumstances under which consideration by a special board may be 
provided for under this section, including the following:
            ``(A) The circumstances under which consideration of a 
        person's case by a special board is contingent upon application 
        by or for that person.
            ``(B) Any time limits applicable to the filing of an 
        application for consideration.
    ``(3) Regulations prescribed by the Secretary of a military 
department under this subsection shall be subject to the approval of 
the Secretary of Defense.
    ``(e) Judicial Review.--(1) A person challenging for any reason the 
action or recommendation of a selection board, or the action taken by 
the Secretary concerned on the report of a selection board, is not 
entitled to relief in any judicial proceeding unless the person has 
first been considered by a special board under this section or the 
Secretary concerned has denied such consideration.
    ``(2) In reviewing an action or recommendation of a special board 
or an action of the Secretary concerned on the report of a special 
board, a court may hold unlawful and set aside the recommendation or 
action, as the case may be, only on the following bases:
            ``(A) The action or recommendation of the special board or 
        the action of the Secretary concerned, as the case may be, was 
        not in compliance with the applicable procedures.
            ``(B) Any such action or recommendation is contrary to law.
    ``(3) In reviewing a decision by the Secretary concerned to deny 
consideration by a special board in any case, a court may hold unlawful 
and set aside the decision only on the following bases:
            ``(A) The decision was not made in accordance with 
        applicable procedures.
            ``(B) The decision is arbitrary, capricious, or otherwise 
        contrary to law.
    ``(f) Exclusivity of Remedies.--Notwithstanding any other provision 
of law, but subject to subsection (g), the remedies provided under this 
section are the only remedies available to a person for correcting an 
action or recommendation of a selection board regarding that person or 
an action taken on the report of a selection board regarding that 
person.
    ``(g) Existing Jurisdiction.--(1) Nothing in this section limits 
the jurisdiction of any court of the United States under any provision 
of law to determine the validity of any statute, regulation, or policy 
relating to selection boards, except that, in the event that any such 
statute, regulation, or policy is held invalid, the remedies prescribed 
in this section shall be the sole and exclusive remedies available to 
any person challenging the recommendation of a special board on the 
basis of the invalidity.
    ``(2) Nothing in this section limits authority to correct a 
military record under section 1552 of this title.
    ``(h) Inapplicability to Coast Guard.--This section does not apply 
to the Coast Guard when it is not operating as a service in the Navy.
    ``(i) Definitions.--In this section:
            ``(1) The term `special board'--
                    ``(A) means a board that the Secretary concerned 
                convenes under any authority to consider whether to 
                recommend a person for appointment, enlistment, 
                reenlistment, assignment, promotion, retention, 
                separation, retirement, or transfer to inactive status 
                in a reserve component instead of referring the records 
                of that person for consideration by a previously 
                convened selection board which considered or should 
                have considered that person;
                    ``(B) includes a board for the correction of 
                military or naval records convened under section 1552 
                of this title, if designated as a special board by the 
                Secretary concerned; and
                    ``(C) does not include a promotion special 
                selection board convened under section 628 or 14502 of 
                this title.
            ``(2) The term `selection board'--
                    ``(A) means a selection board convened under 
                section 573(b), 580, 580a, 581, 611(b), 637, 638, 638a, 
                14101(b), 14701, 14704, or 14705 of this title, and any 
                other board convened by the Secretary concerned under 
                any authority to recommend persons for appointment, 
                enlistment, reenlistment, assignment, promotion, or 
                retention in the armed forces or for separation, 
                retirement, or transfer to inactive status in a reserve 
                component for the purpose of reducing the number of 
                persons serving in the armed forces; and
                    ``(B) does not include--
                            ``(i) a promotion board convened under 
                        section 573(a), 611(a), or 14101(a) of this 
                        title;
                            ``(ii) a special board;
                            ``(iii) a special selection board convened 
                        under section 628 of this title; or
                            ``(iv) a board for the correction of 
                        military records convened under section 1552 of 
                        this title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``1558. Exclusive remedies in cases involving selection boards .''.
    (b) Special Selection Boards.--Section 628 of such title is 
amended--
            (1) by redesignating subsection (g) as subsection (j); and
            (2) by inserting after subsection (f) the following:
    ``(g) Limitations of Other Jurisdiction.--No official or court of 
the United States may--
            ``(1) consider any claim based to any extent on the failure 
        of an officer or former officer of the armed forces to be 
        selected for promotion by a promotion board until--
                    ``(A) the claim has been referred by the Secretary 
                concerned to a special selection board convened under 
                this section and acted upon by that board and the 
                report of the board has been approved by the President; 
                or
                    ``(B) the claim has been rejected by the Secretary 
                of Defense without consideration by a special selection 
                board; or
            ``(2) grant any relief on such a claim unless the officer 
        or former officer has been selected for promotion by a special 
        selection board convened under this section to consider the 
        officer's claim and the report of the board has been approved 
        by the President.
    ``(h) Judicial Review.--(1) A court of the United States may review 
a determination by the Secretary concerned under subsection (a)(1) or 
(b)(1) not to convene a special selection board. If a court finds the 
determination to be arbitrary or capricious, not based on substantial 
evidence, or otherwise contrary to law, it shall remand the case to the 
Secretary concerned, who shall provide for consideration of the officer 
or former officer by a special selection board under this section.
    ``(2) A court of the United States may review the action of a 
special selection board convened under this section on a claim of an 
officer or former officer and any action taken by the President on the 
report of the board. If a court finds that the action was contrary to 
law or involved a material error of fact or a material administrative 
error, it shall remand the case to the Secretary concerned, who shall 
provide for reconsideration of the officer or former officer by another 
special selection board.
    ``(i) Existing Jurisdiction.--(1) Nothing in this section limits 
the jurisdiction of any court of the United States under any provision 
of law to determine the validity of any statute, regulation, or policy 
relating to selection boards, except that, in the event that any such 
statute, regulation, or policy is held invalid, the remedies prescribed 
in this section shall be the sole and exclusive remedies available to 
any person challenging the recommendation of a selection board on the 
basis of the invalidity.
    ``(2) Nothing in this section limits authority to correct a 
military record under section 1552 of this title.''.
    (c) Effective Date and Applicability.--(1) The amendments made by 
this section shall take effect on the date of the enactment of this Act 
and, except as provided in paragraph (2), shall apply with respect to 
any proceeding pending on or after that date without regard to whether 
a challenge to an action of a selection board of any of the Armed 
Forces being considered in such proceeding was initiated before, on, or 
after that date.
    (2) The amendments made by this section shall not apply with 
respect to any action commenced in a court of the United States before 
the date of the enactment of this Act.

SEC. 507. EXTENSION TO ALL AIR FORCE BIOMEDICAL SCIENCES OFFICERS OF 
              AUTHORITY TO RETAIN UNTIL SPECIFIED AGE.

    Section 14703(a)(3) of title 10, United States Code, is amended to 
read as follows:
            ``(3) the Secretary of the Air Force may, with the 
        officer's consent, retain in an active status any reserve 
        officer who is designated as a medical officer, dental officer, 
        Air Force nurse, Medical Service Corps officer, biomedical 
        sciences officer, or chaplain.''.

SEC. 508. TERMINATION OF APPLICATION REQUIREMENT FOR CONSIDERATION OF 
              OFFICERS FOR CONTINUATION ON THE RESERVE ACTIVE-STATUS 
              LIST.

    Section 14701(a)(1) of title 10, United States Code, is amended by 
striking ``Upon application, a reserve officer'' and inserting ``A 
reserve officer''.

SEC. 509. TECHNICAL CORRECTIONS RELATING TO RETIRED GRADE OF RESERVE 
              COMMISSIONED OFFICERS.

    (a) Army.--Section 3961(a) of title 10, United States Code, is 
amended by striking ``or for nonregular service under chapter 1223 of 
this title''.
    (b) Air Force.--Section 8961(a) of title 10, United States Code, is 
amended by striking ``or for nonregular service under chapter 1223 of 
this title''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to Reserve commissioned officers who are promoted to a 
higher grade as a result of selection for promotion by a board convened 
under chapter 36 or 1403 of title 10, United States Code, or having 
been found qualified for Federal recognition in a higher grade under 
chapter 3 of title 32, United States Code, after October 1, 1996.

SEC. 510. GRADE OF CHIEFS OF RESERVE COMPONENTS AND DIRECTORS OF 
              NATIONAL GUARD COMPONENTS.

    (a) Chief of Army Reserve.--Section 3038(c) of title 10, United 
States Code, is amended--
            (1) by striking ``major general'' in the third sentence and 
        inserting ``lieutenant general''; and
            (2) by striking the fourth sentence.
    (b) Chief of Naval Reserve.--Section 5143(c)(2) of such title is 
amended--
            (1) by striking ``rear admiral'' in the first sentence and 
        inserting ``vice admiral''; and
            (2) by striking the second sentence.
    (c) Chief of Air Force Reserve.--Section 8038(c) of such title is 
amended--
            (1) by striking ``major general'' in the third sentence and 
        inserting ``lieutenant general''; and
            (2) by striking the fourth sentence.
    (d) Directors in the National Guard Bureau.--Subparagraphs (A) and 
(B) of section 10506(a)(1) of such title are each amended by striking 
``the grade of major general or, if appointed to that position in 
accordance with section 12505(a)(2) of this title,''.
    (e) Commander, Marine Forces Reserve.--(1) Section 5144(c)(2) of 
such title is amended to read as follows:
    ``(2)(A) The Commander, Marine Forces Reserve, while so serving, 
has the grade of major general, without vacating the officer's 
permanent grade. An officer may, however, be assigned to the position 
of Commander, Marine Forces Reserve, in the grade of lieutenant general 
if appointed to that grade for service in that position by the 
President, by and with the advice and consent of the Senate. An officer 
may be recommended to the President for such an appointment if selected 
for appointment to that position in accordance with subparagraph (B).
    ``(B) An officer shall be considered to have been selected for 
appointment to the position of Commander, Marine Forces Reserve, in 
accordance with this subparagraph if--
            ``(i) the officer is recommended for that appointment by 
        the Secretary of the Navy;
            ``(ii) the officer is determined by the Chairman of the 
        Joint Chiefs of Staff, in accordance with criteria and as a 
        result of a process established by the Chairman, to have 
        significant joint duty experience; and
            ``(iii) the officer is recommended by the Secretary of 
        Defense to the President for the appointment.''.
    (2) Until October 1, 2002, the Secretary of Defense may, on a case-
by-case basis, waive clause (ii) of section 5144(c)(2)(B) of title 10, 
United States Code (as added by paragraph (1)), with respect to the 
appointment of an officer to the position of Commander, Marine Forces 
Reserve, if in the judgment of the Secretary--
            (A) the officer is qualified for service in the position; 
        and
            (B) the waiver is necessary for the good of the service.
    (f) Repeal of Superseded Authority.--(1) Section 12505 of title 10, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 1213 of such 
title is amended by striking the item relating to section 12505.
    (g) Effective Date.--This section and the amendments made by this 
section shall take effect on the earlier of--
            (1) the date that is 90 days after the date of the 
        enactment of this Act; or
            (2) January 1, 2001.

                  Subtitle B--Joint Officer Management

SEC. 521. JOINT SPECIALTY DESIGNATIONS AND ADDITIONAL IDENTIFIERS.

    Section 661 of title 10, United States Code, is amended to read as 
follows:
``Sec. 661. Management policies for joint specialty officers
    ``(a) Establishment.--The Secretary of Defense shall establish 
policies, procedures, and practices for the effective management of 
officers of the Army, Navy, Air Force, and Marine Corps on the active-
duty list who are particularly trained in, and oriented toward, joint 
matters (as defined in section 668 of this title). Such officers shall 
be identified or designated (in addition to their principal military 
occupational specialty) in such manner as the Secretary of Defense 
directs. For purposes of this chapter, officers to be managed by such 
policies, procedures, and practices are those who have been designated 
under subsection (b) as joint specialty officers.
    ``(b) Joint Specialty Officer Designation.--(1) The purpose for 
designation of officers as joint specialty officers is to provide a 
quickly identifiable group of officers who have the joint service 
experience and education in joint matters that are especially required 
for any particular organizational staff or joint task force operation.
    ``(2) To qualify for the joint specialty designation, an officer 
shall--
            ``(A) have successfully completed--
                    ``(i) a program of education in residence at a 
                joint professional military education school accredited 
                as such by the Chairman of the Joint Chiefs of Staff; 
                and
                    ``(ii) a full tour of duty in a joint duty 
                assignment; or
            ``(B) have successfully completed two full tours of duty in 
        joint duty assignments.
    ``(3) The requirements set forth in paragraph (2)(A) may be 
satisfied in any sequence.
    ``(4) The Secretary of Defense shall prescribe the standards for 
characterizing the completion of a requirement under paragraph (2) as 
successful.
    ``(5) An officer may not be designated as a joint specialty officer 
unless qualified under paragraph (2).
    ``(c) Additional Identifier.--An officer designated as a joint 
specialty officer may be awarded an additional joint specialty 
identifier as directed by the Secretary under subsection (a).
    ``(d) Waiver Authority for Award of Additional Identifier.--(1) The 
Secretary of Defense may waive the applicability of a requirement for a 
qualification set forth in subsection (b) for a designation of a 
particular officer as a joint specialty officer upon the Secretary's 
determination that, by reason of unusual circumstances applicable in 
the officer's case, the officer has one or more qualifications that are 
comparable to the qualification waived.
    ``(2) The Secretary may grant a waiver for a general or flag 
officer under paragraph (1) only upon the Secretary's determination 
that it is necessary to do so in order to meet a critical need of the 
armed forces.
    ``(3) The Secretary may delegate authority under this subsection 
only to the Deputy Secretary of Defense or the Chairman of the Joint 
Chiefs of Staff.
    ``(4) The Secretary of the military department concerned may 
request a waiver under this subsection. A request shall include a full 
justification for the requested waiver on the basis of the criterion 
described in paragraph (1) and, in the case of a general or flag 
officer, the additional criterion described in paragraph (2).
    ``(e) General and Flag Officer Positions.--(1) The Secretary of 
Defense shall designate the joint duty assignments for general or flag 
officers that must be filled by joint specialty officers.
    ``(2) Only a joint specialty officer may be assigned to a joint 
duty assignment designated under paragraph (1).
    ``(3) The Secretary may waive the limitation in paragraph (2) if 
the Secretary determines that it is necessary to do so in the interest 
of national security.
    ``(f) Joint Professional Military Education Schools.--The Chairman 
of the Joint Chiefs of Staff shall accredit as joint professional 
military education schools for the purposes of this chapter the schools 
that the Chairman determines as being qualified for the accreditation. 
A school may not be considered a joint professional military education 
school for any such purpose unless the school is so accredited.''.

SEC. 522. PROMOTION OBJECTIVES.

    (a) Objectives.--Section 662 of title 10, United States Code, is 
amended to read as follows:
``Sec. 662. Promotion policy objectives for joint officers
    ``(a) Qualifications.--The Secretary of Defense shall ensure that 
the qualifications of officers assigned to joint duty assignments and 
officers whose previous assignment was a joint duty assignment are such 
that those officers are expected, as a group, to be promoted to the 
next higher grade at a rate not less than the rate for officers of the 
same armed force in the same grade and competitive category who are 
serving on the headquarters staff of that armed force.
    ``(b) Validation of Qualifications.--(1) The Secretary of a 
military department shall validate the qualifications of officers under 
the jurisdiction of the Secretary for eligibility for joint duty 
assignments.
    ``(2) The Secretary shall ensure that, under the process prescribed 
under paragraph (3), an adequate number of the colonels or, in the case 
of the Navy, captains validated as qualified for joint duty assignments 
satisfy the requirements under section 619a of this title for promotion 
to brigadier general or rear admiral (lower half), respectively.
    ``(3) The Secretary shall prescribe the process for validating 
qualifications of officers under the jurisdiction of the Secretary in 
accordance with this subsection.
    ``(c) Consideration of Joint Specialty Officers.--(1) The Secretary 
of Defense shall prescribe policies for ensuring that joint specialty 
officers eligible for consideration for promotion are appropriately 
considered for promotion.
    ``(2) The policies shall require the following:
            ``(A) That at least one member of a board convened for the 
        selection of officers for promotion to a grade above major or, 
        in the case of the Navy, lieutenant commander is serving in a 
        joint duty assignment and has been approved by the Chairman of 
        the Joint Chiefs of Staff for appointment to membership on that 
        board.
            ``(B) That the Chairman of the Joint Chiefs of Staff has 
        the opportunity to review the report of each promotion 
        selection board referred to in subparagraph (A), and to submit 
        comments on the report to the Secretary of Defense and the 
        Secretary of the military department concerned, before the 
        Secretary of that military department takes action on the 
        report.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 38 of title 10, United States Code, is amended by striking the 
item relating to section 662 and inserting the following:

``662. Promotion policy objectives for joint officers.''.

SEC. 523. EDUCATION.

    (a) Officers Eligible for Waiver of Capstone Course Requirement.--
Subsection (a)(1)(C) of section 663 of title 10, United States Code, is 
amended by striking ``scientific and technical qualifications'' and 
inserting ``career field specialty qualifications''.
    (b) Repeal of Requirement for Post-Education Joint Duty 
Assignment.--Such section is further amended by striking subsection 
(d).

SEC. 524. LENGTH OF JOINT DUTY ASSIGNMENT.

    (a) In General.--Section 664 of title 10, United States Code, is 
amended--
            (1) by striking subsections (a) through (h);
            (2) by redesignating subsection (i) as subsection (f); and
            (3) by inserting after the section heading the following:
    ``(a) In General.--The length of a joint duty assignment at an 
installation or other place of duty shall be equivalent to the standard 
length of the assignments (other than joint duty assignments) of 
officers at that installation or other place of duty.
    ``(b) Waiver Authority.--The Secretary of Defense may waive the 
requirement in subsection (a) for the length of a joint duty assignment 
in the case of any officer upon a determination by the Secretary that 
the waiver is critical in the case of that specific officer for meeting 
military personnel management requirements.
    ``(c) Curtailment of Assignment.--The Secretary of Defense may, 
upon the request of the Secretary of the military department concerned, 
authorize a curtailment of a joint duty assignment of more than two 
years for an officer who has served in that assignment for at least two 
years.
    ``(d) Full Tour of Duty.--Subject to subsection (e), an officer 
shall be considered to have completed a full tour of duty in a joint 
duty assignment upon the completion of service performed in a grade not 
lower than major or, in the case of the Navy, lieutenant commander, as 
follows:
            ``(1) Service in a joint duty assignment that meets the 
        standard set forth in subsection (a).
            ``(2) Service in a joint duty assignment under the 
        circumstances described in subsection (c).
            ``(3) Cumulative service in one or more joint task force 
        headquarters that is substantially equivalent to a standard 
        length of assignment determined under subsection (a).
            ``(4) Service in a joint duty assignment with respect to 
        which the Secretary of Defense has granted a waiver under 
        subsection (b), but only in a case in which the Secretary 
        directs that the service completed by the officer in that duty 
        assignment be considered to be a full tour of duty in a joint 
        duty assignment.
            ``(5) Service in a second joint duty assignment that is 
        less than the period required under subsection (a), but is not 
        less than two years, without regard to whether a waiver was 
        granted for such assignment under subsection (b).''.
    (b) Joint Duty Credit for Certain Joint Task Force Assignments.--
Subsection (f) of such section, as redesignated by subsection (a)(2), 
is amended--
            (1) in paragraph (4)(B), by inserting before the period at 
        the end the following: ``, except that cumulative service of 
        less than one year in more than one such assignment in the 
        headquarters of a joint task force may not be credited'';
            (2) in paragraph (4)(E)--
                    (A) by striking ``combat or combat-related''; and
                    (B) by inserting before the period at the end the 
                following: ``, as approved by the Secretary of 
                Defense'';
            (3) in paragraph (5), by striking ``any of the following 
        provisions of this title:'' and all that follows and inserting 
        ``section 662 of this title or paragraph (2), (4), or (7) of 
        section 667(a) of this title.''; and
            (4) by striking paragraph (6).

SEC. 525. ANNUAL REPORT TO CONGRESS.

    Section 667 of title 10, United States Code, is amended by striking 
paragraph (1) and all that follows and inserting the following:
            ``(1) The number of joint specialty officers, reported by 
        grade and by branch or specialty.
            ``(2) An assessment of the extent to which the Secretary of 
        each military department is assigning personnel to joint duty 
        assignments in accordance with this chapter and the policies, 
        procedures, and practices established by the Secretary of 
        Defense under section 661(a) of this title.
            ``(3) The number of waivers granted under section 
        619a(b)(1) of this title for officers in the grade of colonel 
        or, in the case of the Navy, captain for each of the years 
        preceding the year in which the report is submitted.
            ``(4) The officers whose service in joint duty assignments 
        during the year covered by the report terminated before the 
        officers completed the full tour of duty in those assignments, 
        expressed as a percent of the total number of officers in joint 
        duty assignments during that year.
            ``(5) The percentage of fill of student quotas for each 
        course of the National Defense University for the year covered 
        by the report.
            ``(6) A list of the joint task force headquarters in which 
        service was approved for crediting as a joint duty assignment 
        for the year covered by the report.
            ``(7) The following comparisons:
                    ``(A) A comparison of--
                            ``(i) the promotion rates for officers who 
                        are officers serving in joint duty assignments 
                        or officers whose previous assignment was a 
                        joint duty assignment and were considered for 
                        promotion within the promotion zone, with
                            ``(ii) the promotion rates for other 
                        officers in the same grade and the same 
                        competitive category who are serving on the 
                        headquarters staff of the armed force concerned 
                        and were considered for promotion within the 
                        promotion zone.
                    ``(B) A comparison of--
                            ``(i) the promotion rates for officers who 
                        are officers serving in joint duty assignments 
                        or officers whose previous assignment was a 
                        joint duty assignment and were considered for 
                        promotion from above the promotion zone, with
                            ``(ii) the promotion rates for other 
                        officers in the same grade and the same 
                        competitive category who are serving on the 
                        headquarters staff of the armed force concerned 
                        and were considered for promotion from above 
                        the promotion zone.
                    ``(C) A comparison of--
                            ``(i) the promotion rates for officers who 
                        are officers serving in joint duty assignments 
                        or officers whose previous assignment was a 
                        joint duty assignment and were considered for 
                        promotion from below the promotion zone, with
                            ``(ii) the promotion rates for other 
                        officers in the same grade and the same 
                        competitive category who are serving on the 
                        headquarters staff of the armed force concerned 
                        and were considered for promotion from below 
                        the promotion zone.
            ``(8) If any of the comparisons in paragraph (7) indicate 
        that the promotion rates for officers referred to in 
        subparagraph (A)(i), (B)(i), or (C)(i) of such paragraph fail 
        to meet the objective set forth in section 662(a) of this 
        title, information on the failure and on what action the 
        Secretary has taken or plans to take to prevent further 
        failures.
            ``(9) Any other information relating to joint officer 
        management that the Secretary of Defense considers 
        significant.''.

SEC. 526. MULTIPLE ASSIGNMENTS CONSIDERED AS SINGLE JOINT DUTY 
              ASSIGNMENT.

    (a) Definition of Joint Duty Assignment.--Subsection (b) of section 
668 of title 10, United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) An assignment not qualifying as a joint duty assignment 
within the definition prescribed under paragraph (1) shall be treated 
as a joint duty assignment for the purposes of this subchapter if the 
assignment is considered under subsection (c)(2) as part of a single 
tour of duty in a joint duty assignment.''.
    (b) Multiple Assignments Considered as Single Tour of Duty.--
Subsection (c) of such section is amended to read as follows:
    ``(c) Multiple Assignments Considered as Single Tour of Duty.--For 
purposes of this chapter, service in more than one assignment shall be 
considered to be a single tour of duty in a joint duty assignment, as 
follows:
            ``(1) Continuous service in two or more consecutive joint 
        duty assignments, as defined under subsection (b)(1).
            ``(2) Continuous service, in any order, in--
                    ``(A) at least one joint duty assignment, as 
                defined under subsection (b)(1); and
                    ``(B) one or more assignments not satisfying the 
                definition prescribed under subsection (b)(1) but 
                involving service that provides significant experience 
                in joint matters, as determined under policies 
                prescribed by the Secretary of Defense under section 
                661(a) of this title.''.

SEC. 527. JOINT DUTY REQUIREMENT FOR PROMOTION TO ONE-STAR GRADES.

    Section 619a of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``section 664(f)'' and 
        inserting ``section 664(d); and
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking ``scientific and 
                technical qualifications'' and inserting ``career field 
                specialty qualifications''; and
                    (B) in paragraph (4), by striking ``if--'' and all 
                that follows and inserting a period.

                   Subtitle C--Education and Training

SEC. 541. ELIGIBILITY OF CHILDREN OF RESERVES FOR PRESIDENTIAL 
              APPOINTMENT TO SERVICE ACADEMIES.

    (a) United States Military Academy.--Section 4342(b)(1) of title 
10, United States Code, is amended--
            (1) in subparagraph (B), by striking ``, other than those 
        granted retired pay under section 12731 of this title (or under 
        section 1331 of this title as in effect before the effective 
        date of the Reserve Officer Personnel Management Act)''; and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) are serving as members of reserve components 
                and are credited with at least eight years of service 
                computed under section 12733 of this title; or
                    ``(D) would be, or who died while they would have 
                been, entitled to retired pay under chapter 1223 of 
                this title except for not having attained 60 years of 
                age;''.
    (b) United States Naval Academy.--Section 6954(b)(1) of such title 
is amended--
            (1) in subparagraph (B), by striking ``, other than those 
        granted retired pay under section 12731 of this title (or under 
        section 1331 of this title as in effect before the effective 
        date of the Reserve Officer Personnel Management Act)''; and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) are serving as members of reserve components 
                and are credited with at least eight years of service 
                computed under section 12733 of this title; or
                    ``(D) would be, or who died while they would have 
                been, entitled to retired pay under chapter 1223 of 
                this title except for not having attained 60 years of 
                age;''.
    (c) United States Air Force Academy.--Section 9342(b)(1) of such 
title is amended--
            (1) in subparagraph (B), by striking ``, other than those 
        granted retired pay under section 12731 of this title (or under 
        section 1331 of this title as in effect before the effective 
        date of the Reserve Officer Personnel Management Act)''; and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) are serving as members of reserve components 
                and are credited with at least eight years of service 
                computed under section 12733 of this title; or
                    ``(D) would be, or who died while they would have 
                been, entitled to retired pay under chapter 1223 of 
                this title except for not having attained 60 years of 
                age;''.

SEC. 542. SELECTION OF FOREIGN STUDENTS TO RECEIVE INSTRUCTION AT 
              SERVICE ACADEMIES.

    (a) United States Military Academy.--Section 4344(a) of title 10, 
United States Code, is amended by adding at the end the following:
    ``(3) In selecting persons to receive instruction under this 
section from among applicants from the countries approved under 
paragraph (2), the Secretary shall give a priority to persons who have 
a national service obligation to their countries upon graduation from 
the Academy.''.
    (b) United States Naval Academy.--Section 6957(a) of such title is 
amended by adding at the end the following:
    ``(3) In selecting persons to receive instruction under this 
section from among applicants from the countries approved under 
paragraph (2), the Secretary shall give a priority to persons who have 
a national service obligation to their countries upon graduation from 
the Academy.''.
    (c) United States Air Force Academy.--Section 9344(a) of such title 
is amended by adding at the end the following:
    ``(3) In selecting persons to receive instruction under this 
section from among applicants from the countries approved under 
paragraph (2), the Secretary shall give a priority to persons who have 
a national service obligation to their countries upon graduation from 
the Academy.''.
    (d) Effective Date and Applicability.--This section and the 
amendments made by this section shall take effect on October 1, 2000, 
and shall apply with respect to academic years that begin after that 
date.

SEC. 543. REPEAL OF CONTINGENT FUNDING INCREASE FOR JUNIOR RESERVE 
              OFFICERS TRAINING CORPS.

    (a) Repeal.--(1) Section 2033 of title 10, United States Code, is 
repealed.
    (2) The table of sections at the beginning of chapter 102 of such 
title is amended by striking the item relating to section 2033.
    (b) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2000.

SEC. 544. REVISION OF AUTHORITY FOR MARINE CORPS PLATOON LEADERS CLASS 
              TUITION ASSISTANCE PROGRAM.

    (a) Eligibility of Officers.--Section 16401 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking ``enlisted'' in the 
        matter preceding paragraph (1); and
            (2) in subsection (b)(1)--
                    (A) by striking ``an enlisted member'' in the 
                matter preceding subparagraph (A) and inserting ``a 
                member''; and
                    (B) by striking ``an officer candidate in'' in 
                subparagraph (A) and inserting ``a member of''.
    (b) Repeal of Age Limitations.--Subsection (b) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (B);
                    (B) by redesignating subparagraphs (C) and (D) as 
                subparagraphs (B) and (C), respectively; and
                    (C) in subparagraph (C), as so redesignated, by 
                striking ``paragraph (3)'' and inserting ``paragraph 
                (2)'';
            (2) by striking subparagraph (2);
            (3) by redesignating paragraph (3) as paragraph (2); and
            (4) in paragraph (2), as so redesignated, by striking 
        ``paragraph (1)(D)'' and inserting ``paragraph (1)(C)''.
    (c) Candidates for Law Degrees.--Subsection (a)(2) of such section 
is amended by striking ``three'' and inserting ``four''.
    (d) Inapplicability of Sanction to Officers.--Subsection (f)(1) of 
such section is amended by striking ``A member'' and inserting ``An 
enlisted member''.
    (e) Amendments of Headings.--(1) The heading for such section is 
amended to read as follows:
``Sec. 16401. Marine Corps Platoon Leaders Class tuition assistance 
              program''.
    (2) The heading for subsection (a) of such section is amended by 
striking ``for Financial Assistance Program''.
    (f) Clerical Amendment.--The item relating to such section in the 
table of chapters at the beginning of chapter 1611 of title 10, United 
States Code, is amended to read as follows:

``16401. Marine Corps Platoon Leaders Class tuition assistance 
                            program.''.

               Subtitle D--Matters Relating to Recruiting

SEC. 551. ARMY RECRUITING PILOT PROGRAMS.

    (a) Requirement for Programs.--The Secretary of the Army shall 
carry out pilot programs to test various recruiting approaches under 
this section for the following purposes:
            (1) To assess the effectiveness of the recruiting 
        approaches for creating enhanced opportunities for recruiters 
        to make direct, personal contact with potential recruits.
            (2) To improve the overall effectiveness and efficiency of 
        Army recruiting activities.
    (b) Outreach Through Motor Sports.--(1) One of the pilot programs 
shall be a pilot program of public outreach that associates the Army 
with motor sports competitions to achieve the objectives set forth in 
paragraph (2).
    (2) The events and activities undertaken under the pilot program 
shall be designed to provide opportunities for Army recruiters to make 
direct, personal contact with high school students to achieve the 
following objectives:
            (A) To increase enlistments by students graduating from 
        high school.
            (B) To reduce attrition in the Delayed Entry Program of the 
        Army by sustaining the personal commitment of students who have 
        elected delayed entry into the Army under the program.
    (3) Under the pilot program, the Secretary shall provide for the 
following:
            (A) For Army recruiters or other Army personnel--
                    (i) to organize Army sponsored career day events in 
                association with national motor sports competitions; 
                and
                    (ii) to arrange for or encourage attendance at the 
                competitions by high school students, teachers, 
                guidance counselors, and administrators of high schools 
                located near the competitions.
            (B) For Army recruiters and other soldiers to attend 
        national motor sports competitions--
                    (i) to display exhibits depicting the contemporary 
                Army and career opportunities in the Army; and
                    (ii) to discuss those opportunities with potential 
                recruits.
            (C) For the Army to sponsor a motor sports racing team as 
        part of an integrated program of recruitment and publicity for 
        the Army.
            (D) For the Army to sponsor motor sports competitions for 
        high school students at which recruiters meet with potential 
        recruits.
            (E) For Army recruiters or other Army personnel to compile 
        in an Internet accessible database the names, addresses, 
        telephone numbers, and electronic mail addresses of persons who 
        are identified as potential recruits through activities under 
        the pilot program.
            (F) Any other activities associated with motor sports 
        competition that the Secretary determines appropriate for Army 
        recruitment purposes.
    (c) Outreach at Vocational Schools and Community Colleges.--(1) One 
of the pilot programs shall be a pilot program under which Army 
recruiters are assigned at postsecondary vocational institutions and 
community colleges for the purpose of recruiting students graduating 
from those institutions and colleges, recent graduates of those 
institutions and colleges, and students withdrawing from enrollments in 
those institutions and colleges.
    (2) The Secretary shall select the institutions and colleges to be 
invited to participate in the pilot program.
    (3) The conduct of the pilot program at an institution or college 
shall be subject to an agreement which the Secretary shall enter into 
with the governing body or authorized official of the institution or 
college, as the case may be.
    (4) Under the pilot program, the Secretary shall provide for the 
following:
            (A) For Army recruiters to be placed in postsecondary 
        vocational institutions and community colleges to serve as a 
        resource for guidance counselors and to recruit for the Army.
            (B) For Army recruiters to recruit from among students and 
        graduates described in paragraph (1).
            (C) For the use of telemarketing, direct mail, interactive 
        voice response systems, and Internet website capabilities to 
        assist the recruiters in the postsecondary vocational 
        institutions and community colleges.
            (D) For any other activities that the Secretary determines 
        appropriate for recruitment activities in postsecondary 
        vocational institutions and community colleges.
    (5) In this subsection, the term ``postsecondary vocational 
institution'' has the meaning given the term in section 102(c) of the 
Higher Education Act of 1965 (20 U.S.C. 1002(c)).
    (d) Contract Recruiting Initiatives.--(1) One of the pilot programs 
shall be a program that expands in accordance with this subsection the 
scope of the Army's contract recruiting initiatives that are ongoing as 
of the date of the enactment of this Act. Under the pilot program, the 
Secretary shall select at least five recruiting battalions to apply the 
initiatives in efforts to recruit personnel for the Army.
    (2) Under the pilot program, the Secretary shall provide for the 
following:
            (A) For replacement of the Regular Army recruiters by 
        contract recruiters in the five recruiting battalions selected 
        under paragraph (1).
            (B) For operation of the five battalions under the same 
        rules and chain of command as the other Army recruiting 
        battalions.
            (C) For use of the offices, facilities, and equipment of 
        the five battalions by the contract recruiters.
            (D) For reversion to performance of the recruiting 
        activities by Regular Army soldiers in the five battalions upon 
        termination of the pilot program.
            (E) For any other uses of contractor personnel for Army 
        recruiting activities that the Secretary determines 
        appropriate.
    (e) Duration of Pilot Programs.--The pilot programs required by 
this section shall be carried out during the period beginning on 
October 1, 2000, and, subject to subsection (f), ending on December 31, 
2005.
    (f) Authority To Expand or Extend Pilot Programs.--The Secretary 
may expand the scope of any of the pilot programs (under subsection 
(b)(3)(F), (c)(4)(D), (d)(2)(E), or otherwise) or extend the period for 
any of the pilot programs. Before doing so in the case of a pilot 
program, the Secretary shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a written notification 
of the expansion of the pilot program (together with the scope of the 
expansion) or the continuation of the pilot program (together with the 
period of the extension), as the case may be.
    (g) Relationship to Other Law.--The Secretary may exercise the 
authority to carry out a pilot program under this section without 
regard to any other provision of law that, except for this subsection, 
would otherwise restrict the actions taken by the Secretary under that 
authority.
    (h) Reports.--Not later than February 1, 2006, the Secretary of the 
Army shall submit to the Committees on Armed Services of the Senate and 
the House of Representatives a separate report on each of the pilot 
programs carried out under this section. The report on a pilot program 
shall include the following:
            (1) The Secretary's assessment of the value of the actions 
        taken in the administration of the pilot program for increasing 
        the effectiveness and efficiency of Army recruiting.
            (2) Any recommendations for legislation or other action 
        that the Secretary considers appropriate to increase the 
        effectiveness and efficiency of Army recruiting.

SEC. 552. ENHANCEMENT OF THE JOINT AND SERVICE RECRUITMENT MARKET 
              RESEARCH AND ADVERTISING PROGRAMS.

    The Secretary of Defense shall take appropriate actions to enhance 
the effectiveness of the Joint and Service Recruiting and Advertising 
Programs through an aggressive program of advertising and market 
research targeted to prospective recruits for the Armed Forces and to 
persons who influence prospective recruits. Chapter 35 of title 44, 
United States Code, shall not apply to actions taken under this 
section.

SEC. 553. ACCESS TO SECONDARY SCHOOLS FOR MILITARY RECRUITING PURPOSES.

    (a) Requirement for Access.--Section 503(c) of title 10, United 
States Code, is amended to read as follows:
    ``(c) Access to Secondary Schools.--(1) Each local educational 
agency shall provide to the Department of Defense, upon a request made 
for military recruiting purposes, the same access to secondary school 
students, and to directory information concerning such students, as is 
provided generally to post-secondary educational institutions or to 
prospective employers of those students, except as provided in 
paragraph (5).
    ``(2) If a local educational agency denies a request for recruiting 
access that must be granted under paragraph (1), the Secretary of the 
military department for which the request is made shall designate a 
general or flag officer of the armed force concerned or a senior 
executive of that military department to visit the local educational 
agency for the purpose of arranging for recruiting access. The 
designated officer or senior executive shall make the visit within 120 
days after the date of the denial of the request.
    ``(3) Upon a determination by the Secretary of Defense that, after 
the actions under paragraph (2) have been taken with respect to a local 
educational agency, the agency continues to deny recruiting access, the 
Secretary shall transmit to the Chief Executive of the State in which 
the local educational agency is located a notification of the denial of 
access and a request for assistance in obtaining the requested access. 
The notification shall be transmitted within 60 days after the date of 
the determination. The Secretary shall provide copies of communications 
between the Secretary and a Chief Executive under this subparagraph to 
the Secretary of Education.
    ``(4) If a local educational agency continues to deny recruiting 
access one year after the date of the transmittal of a notification 
regarding that agency under paragraph (3), the Secretary shall--
            ``(A) determine whether the agency denies recruiting access 
        to at least two of the armed forces (other than the Coast Guard 
        when it is not operating as a service in the Navy); and
            ``(B) upon making an affirmative determination under 
        subparagraph (A), transmit a notification of the denial of 
        recruiting access to--
                    ``(i) the Committees on Armed Services of the 
                Senate and the House of Representatives;
                    ``(ii) the Senators of the State in which the local 
                educational agency operates; and
                    ``(iii) the member of the House of Representatives 
                who represents the district in which the local 
                educational agency operates.
    ``(5) The requirements of this subsection do not apply to a local 
educational agency with respect to access to secondary school students 
or access to directory information concerning such students during any 
period that there is in effect a policy of the agency, established by 
majority vote of the governing body of the agency, to deny access to 
the students or to the directory information, respectively, for 
military recruiting purposes.
    ``(6) In this subsection:
            ``(A) The term `local educational agency' includes a 
        private secondary educational institution.
            ``(B) The term `recruiting access' means access requested 
        as described in paragraph (1).
            ``(C) The term `senior executive' has the meaning given 
        that term in section 3132(a)(3) of title 5.
            ``(D) The term `State' includes the District of Columbia, 
        American Samoa, the Federated States of Micronesia, Guam, the 
        Republic of the Marshall Islands, the Commonwealth of the 
        Northern Mariana Islands, the Commonwealth of Puerto Rico, the 
        Republic of Palau, and the United States Virgin Islands.''.
    (b) Technical Amendments.--Section 503 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by inserting ``Recruiting 
        Campaigns.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Compilation of 
        Directory Information.--'' after ``(b)''; and
            (3) in subsection (c), by inserting ``Access to Secondary 
        Schools.--'' after ``(c)''.
    (c) Repeal of Duplicative Authority Regarding Grants and Contracts 
to Uncooperative Institutions of Higher Education.--Section 8120 of the 
Department of Defense Appropriations Act, 2000 (Public Law 106-79; 113 
Stat. 1260; 10 U.S.C. 983 note) is repealed.
    (d) Effective Dates.--(1) The amendment made by subsection (a) 
shall take effect on July 1, 2002.
    (2) The amendments made by subsections (b) and (c) shall take 
effect on the date of the enactment of this Act.

                       Subtitle E--Other Matters

SEC. 561. AUTHORITY FOR AWARD OF MEDAL OF HONOR TO CERTAIN SPECIFIED 
              PERSONS.

    (a) Inapplicability of Time Limitations.--Notwithstanding the time 
limitations in section 3744(b) of title 10, United States Code, or any 
other time limitation, the President may award the Medal of Honor under 
section 3741 of such title to the persons specified in subsection (b) 
for the acts specified in that subsection, the award of the Medal of 
Honor to such persons having been determined by the Secretary of the 
Army to be warranted in accordance with section 1130 of such title.
    (b) Persons Eligible To Receive the Medal of Honor.--The persons 
referred to in subsection (a) are the following:
            (1) Ed W. Freeman, for conspicuous acts of gallantry and 
        intrepidity at the risk of his life and beyond the call of duty 
        on November 14, 1965, as flight leader and second-in-command of 
        a helicopter lift unit at landing zone X-Ray in the Battle of 
        the Ia Drang Valley, Republic of Vietnam, during the Vietnam 
        War, while serving in the grade of Captain in Alpha Company, 
        229th Assault Helicopter Battalion, 101st Cavalry Division 
        (Airmobile).
            (2) James K. Okubo, for conspicuous acts of gallantry and 
        intrepidity at the risk of his life and beyond the call of duty 
        on October 28 and 29, and November 4, 1944, at Foret Domaniale 
        de Champ, near Biffontaine, France, during World War II, while 
        serving as an Army medic in the grade of Technician Fifth Grade 
        in the medical detachment, 442d Regimental Combat Team.
            (3) Andrew J. Smith, for conspicuous acts of gallantry and 
        intrepidity at the risk of his life and beyond the call of duty 
        on November 30, 1864, in the Battle of Honey Hill, South 
        Carolina, during the Civil War, while serving as a corporal in 
        the 55th Massachusetts Voluntary Infantry Regiment.
    (c) Posthumous Award.--The Medal of Honor may be awarded under this 
section posthumously, as provided in section 3752 of title 10, United 
States Code.
    (d) Prior Award.--The Medal of Honor may be awarded under this 
section for service for which a Silver Star, or other award, has been 
awarded.

SEC. 562. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
              TO CERTAIN PERSONS.

    (a) Waiver.--Any limitation established by law or policy for the 
time within which a recommendation for the award of a military 
decoration or award must be submitted shall not apply to awards of 
decorations described in this section, the award of each such 
decoration having been determined by the Secretary concerned to be 
warranted in accordance with section 1130 of title 10, United States 
Code.
    (b) Silver Star.--Subsection (a) applies to the award of the Silver 
Star to Louis Rickler, of Rochester, New York, for gallantry in action 
from August 18 to November 18, 1918, while serving as a member of the 
Army.
    (c) Distinguished Flying Cross.--Subsection (a) applies to the 
award of the Distinguished Flying Cross for service during World War II 
or Korea (including multiple awards to the same individual) in the case 
of each individual concerning whom the Secretary of the Navy (or an 
officer of the Navy acting on behalf of the Secretary) submitted to the 
Committee on Armed Services of the House of Representatives and the 
Committee on Armed Services of the Senate, during the period beginning 
on October 5, 1999, and ending on the day before the date of the 
enactment of this Act, a notice as provided in section 1130(b) of title 
10, United States Code, that the award of the Distinguished Flying 
Cross to that individual is warranted and that a waiver of time 
restrictions prescribed by law for recommendation for such award is 
recommended.

SEC. 563. INELIGIBILITY FOR INVOLUNTARY SEPARATION PAY UPON DECLINATION 
              OF SELECTION FOR CONTINUATION ON ACTIVE DUTY.

    (a) Ineligibility.--Section 1174(a)(1) of title 10, United States 
Code, is amended--
            (1) by inserting ``, 637(a)(4),'' after ``section 
        630(1)(A)''; and
            (2) by inserting ``(except under section 580(e)(2))'' after 
        ``section 580''.
    (b) Effective Date and Applicability.--The amendments made by 
subsection (a) shall take effect on October 1, 2000, and shall apply 
with respect to discharges and retirements from active duty that take 
effect under section 580(e)(2) or 637(a)(4) of title 10, United States 
Code, on or after that date.

SEC. 564. RECOGNITION BY STATES OF MILITARY TESTAMENTARY INSTRUMENTS.

    (a) In General.--Chapter 53 of title 10, United States Code, is 
amended by inserting after section 1044c the following new section:
``Sec. 1044d. Military testamentary instruments: requirement for 
              recognition by States
    ``(a) Testamentary Instruments To Be Given Legal Effect.--A 
military testamentary instrument--
            ``(1) is exempt from any requirement of form, formality, or 
        recording before probate that is provided for testamentary 
        instruments under the laws of a State; and
            ``(2) has the same legal effect as a testamentary 
        instrument prepared and executed in accordance with the laws of 
        the State in which it is presented for probate.
    ``(b) Military Testamentary Instruments.--For purposes of this 
section, a military testamentary instrument is an instrument that is 
prepared with testamentary intent in accordance with regulations 
prescribed under this section and that--
            ``(1) is executed in accordance with subsection (c) by (or 
        on behalf of) a person, as a testator, who is eligible for 
        military legal assistance;
            ``(2) makes a disposition of property of the testator; and
            ``(3) takes effect upon the death of the testator.
    ``(c) Requirements for Execution of Military Testamentary 
Instruments.--An instrument is valid as a military testamentary 
instrument only if--
            ``(1) the instrument is executed by the testator (or, if 
        the testator is unable to execute the instrument personally, 
        the instrument is executed in the presence of, by the direction 
        of, and on behalf of the testator);
            ``(2) the instrument is executed in the presence of a 
        military legal assistance counsel acting as presiding attorney;
            ``(3) the instrument is executed in the presence of at 
        least two disinterested witnesses (in addition to the presiding 
        attorney), each of whom attests to witnessing the testator's 
        execution of the instrument by signing it; and
            ``(4) the instrument is executed in accordance with such 
        additional requirements as may be provided in regulations 
        prescribed under this section.
    ``(d) Self-Proving Military Testamentary Instruments.--(1) If the 
document setting forth a military testamentary instrument meets the 
requirements of paragraph (2), then the signature of a person on the 
document as the testator, an attesting witness, a notary, or the 
presiding attorney, together with a written representation of the 
person's status as such and the person's military grade (if any) or 
other title, is prima facie evidence of the following:
            ``(A) That the signature is genuine.
            ``(B) That the signatory had the represented status and 
        title at the time of the execution of the will.
            ``(C) That the signature was executed in compliance with 
        the procedures required under the regulations prescribed under 
        subsection (f).
    ``(2) A document setting forth a military testamentary instrument 
meets the requirements of this paragraph if it includes (or has 
attached to it), in a form and content required under the regulations 
prescribed under subsection (f), each of the following:
            ``(A) A certificate, executed by the testator, that 
        includes the testator's acknowledgment of the testamentary 
        instrument.
            ``(B) An affidavit, executed by each witness signing the 
        testamentary instrument, that attests to the circumstances 
        under which the testamentary instrument was executed.
            ``(C) A notarization, including a certificate of any 
        administration of an oath required under the regulations, that 
        is signed by the notary or other official administering the 
        oath.
    ``(e) Statement To Be Included.--(1) Under regulations prescribed 
under this section, each military testamentary instrument shall contain 
a statement that sets forth the provisions of subsection (a).
    ``(2) Paragraph (1) shall not be construed to make inapplicable the 
provisions of subsection (a) to a testamentary instrument that does not 
include a statement described in that paragraph.
    ``(f) Regulations.--Regulations for the purposes of this section 
shall be prescribed jointly by the Secretary of Defense and by the 
Secretary of Transportation with respect to the Coast Guard when it is 
not operating as a service in the Department of the Navy.
    ``(g) Definitions.--In this section:
            ``(1) The term `person eligible for military legal 
        assistance' means a person who is eligible for legal assistance 
        under section 1044 of this title.
            ``(2) The term `military legal assistance counsel' means--
                    ``(A) a judge advocate (as defined in section 
                801(13) of this title); or
                    ``(B) a civilian attorney serving as a legal 
                assistance officer under the provisions of section 1044 
                of this title.
            ``(3) The term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Mariana Islands, and each possession of the United 
        States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1044c the following new item:

``1044d. Military testamentary instruments: requirement for recognition 
                            by States.''.

SEC. 565. SENSE OF CONGRESS ON THE COURT-MARTIAL CONVICTION OF CAPTAIN 
              CHARLES BUTLER MCVAY, COMMANDER OF THE U.S.S. 
              INDIANAPOLIS, AND ON THE COURAGEOUS SERVICE OF ITS CREW.

    (a) Findings.--Congress makes the following findings:
            (1) Shortly after midnight on the morning of July 30, 1945, 
        the United States Navy heavy cruiser U.S.S. Indianapolis (CA-
        35) was torpedoed and sunk by the Japanese submarine I-58 in 
        what became the worst sea disaster in the history of the United 
        States Navy.
            (2) Although approximately 900 of the ship's crew of 1,196 
        survived the actual sinking, only 316 of those courageous 
        sailors survived when rescued after four and a half days adrift 
        in the open sea.
            (3) Nearly 600 of the approximately 900 men who survived 
        the sinking perished from battle wounds, drowning, predatory 
        shark attacks, exposure to the elements, and lack of food and 
        potable water.
            (4) Rescue came for the remaining 316 sailors when they 
        were spotted by chance by Navy Lieutenant Wilbur C. Gwinn while 
        flying a routine naval air patrol mission.
            (5) After the end of World War II, the commanding officer 
        of the U.S.S. Indianapolis, Captain Charles Butler McVay, who 
        was rescued with the other survivors, was court-martialed for 
        ``suffering a vessel to be hazarded through negligence'' by 
        failing to zigzag (a naval tactic employed to help evade 
        submarine attacks), and was convicted even though--
                    (A) the choice to zigzag was left to Captain 
                McVay's discretion in his orders; and
                    (B) Motchisura Hashimoto, the commander of the 
                Japanese submarine that sank the U.S.S. Indianapolis, 
                and Glynn R. Donaho, a United States Navy submarine 
                commander highly decorated for his service during World 
                War II, both testified at Captain McVay's court-martial 
                trial that the Japanese submarine could have sunk the 
                U.S.S. Indianapolis whether or not it had been 
                zigzagging, an assertion that the Japanese submarine 
                commander has since reaffirmed in a letter to the 
                Chairman of the Committee on Armed Services of the 
                Senate.
            (6) Although not argued by Captain McVay's defense counsel 
        in the court-martial trial, poor visibility on the night of the 
        sinking (as attested in surviving crew members' handwritten 
        accounts recently discovered at the National Archives) 
        justified Captain McVay's choice not to zigzag as that choice 
        was consistent with the applicable Navy directives in force in 
        1945, which stated that, ``During thick weather and at night, 
        except on very clear nights or during bright moonlight, vessels 
        normally cease zig-zagging.''.
            (7) Naval officials failed to provide Captain McVay with 
        available support that was critical to the safety of the U.S.S. 
        Indianapolis and its crew on what became its final mission by--
                    (A) disapproving a request made by Captain McVay 
                for a destroyer escort for the U.S.S. Indianapolis 
                across the Philippine Sea as being ``not necessary'';
                    (B) not informing Captain McVay that naval 
                intelligence sources, through signal intelligence (the 
                Japanese code having been broken earlier in World War 
                II), had become aware that the Japanese submarine I-58 
                was operating in the area of the U.S.S. Indianapolis' 
                course (as disclosed in evidence presented in a hearing 
                of the Committee on Armed Services of the Senate); and
                    (C) not informing Captain McVay of the sinking of 
                the destroyer escort U.S.S. Underhill by a Japanese 
                submarine within range of the course of the U.S.S. 
                Indianapolis four days before the U.S.S. Indianapolis 
                departed Guam on its fatal voyage.
            (8) Captain McVay's court-martial initially was opposed by 
        his immediate command superiors, Fleet Admiral Chester Nimitz 
        (CINCPAC) and Vice Admiral Raymond Spruance of the 5th fleet, 
        for which the U.S.S. Indianapolis served as flagship, but, 
        despite their recommendations, Secretary of the Navy James 
        Forrestal ordered the court-martial, largely on the basis of 
        the recommendation of Admiral King, Chief of Naval Operations.
            (9) There is no explanation on the public record for 
        Secretary Forestal's overruling of the recommendations made by 
        Admirals Nimitz and Spruance.
            (10) Captain McVay was the only commander of a United 
        States Navy vessel lost in combat to enemy action during World 
        War II who was subjected to a court-martial trial for such a 
        loss, even though several hundred United States Navy ships were 
        lost in combat to enemy action during World War II.
            (11) The survivors of the U.S.S. Indianapolis 
        overwhelmingly conclude that McVay was not at fault and have 
        dedicated their lives to vindicating their Captain, Charles 
        McVay, but time is running out for the 130 remaining members of 
        the crew in their united and steadfast quest to clear their 
        Captain's name.
            (12) Although Captain McVay was promoted to Rear Admiral 
        upon retirement from the Navy, he never recovered from the 
        stigma of his post-war court-martial and in 1968, tragically, 
        took his own life.
            (13) Captain McVay was a graduate of the United States 
        Naval Academy, was an exemplary career naval officer with an 
        outstanding record (including participation in the amphibious 
        invasions of North Africa, the assault on Iwo Jima, and the 
        assault on Okinawa where he survived a fierce kamikaze attack), 
        was a recipient of the Silver Star earned for courage under 
        fire during the Solomon Islands campaign, and, with his crew, 
        had so thoroughly demonstrated proficiency in naval warfare 
        that the Navy entrusted Captain McVay and the crew with 
        transporting, on their fatal cruise, the components necessary 
        for assembling the atomic bombs that were exploded over 
        Hiroshima and Nagasaki to end the war with Japan.
    (b) Sense of Congress.--(1) It is the sense of Congress, on the 
basis of the facts presented in a public hearing conducted by the 
Committee on Armed Services of the Senate on September 14, 1999, 
including evidence not available at the time of Captain Charles Butler 
McVay's court-martial, and on the basis of extensive interviews and 
questioning of witnesses and knowledgeable officials and a review of 
the record of the court-martial for and in that hearing, that--
            (A) recognizing that the Secretary of the Navy remitted the 
        sentence of the court-martial and that Admiral Nimitz, as Chief 
        of Naval Operations, restored Captain McVay to active duty, the 
        American people should now recognize Captain McVay's lack of 
        culpability for the tragic loss of the U.S.S. Indianapolis and 
        the lives of the men who died as a result of her sinking; and
            (B) knowing that vital information was not available to the 
        court-martial board and that, as a result, Captain McVay was 
        convicted, Captain McVay's military record should now reflect 
        that he is exonerated for the loss of the ship and its crew.
    (2) It is, further, the sense of Congress that Congress strongly 
encourages the Secretary of the Navy to award a Navy Unit Commendation 
to the U.S.S. Indianapolis and its final crew.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2001.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2001 required by section 1009 of title 37, 
United States Code, in the rates of monthly basic pay authorized 
members of the uniformed services shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 2001, the rates 
of monthly basic pay for members of the uniformed services are 
increased by 3.7 percent.

SEC. 602. CORRECTIONS FOR BASIC PAY TABLES.

    Section 601(c) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65) is amended--
            (1) in footnote 2 under the first table (113 Stat. 646), 
        relating to commissioned officers, by striking ``$12,441.00'' 
        and inserting ``$12,488.70''; and
            (2) in footnote 2 under the fourth table (113 Stat. 648), 
        relating to enlisted members, by striking ``$4,701.00'' and 
        inserting ``$4,719.00''.

SEC. 603. PAY IN LIEU OF ALLOWANCE FOR FUNERAL HONORS DUTY.

    (a) Compensation at Rate for Inactive-Duty Training.--(1) Section 
115(b)(2) of title 32, United States Code, is amended to read as 
follows:
            ``(2) as directed by the Secretary concerned, either--
                    ``(A) the allowance under section 435 of title 37; 
                or
                    ``(B) compensation under section 206 of title 
                37.''.
    (2) Section 12503(b)(2) of title 10, United States Code, is amended 
to read as follows:
            ``(2) as directed by the Secretary concerned, either--
                    ``(A) the allowance under section 435 of title 37; 
                or
                    ``(B) compensation under section 206 of title 
                37.''.
    (b) Conforming Repeal.--Section 435 of title 37, United States 
Code, is amended by striking subsection (c).
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2000, and shall apply with 
respect to months beginning on or after that date.

SEC. 604. CLARIFICATION OF SERVICE EXCLUDED IN COMPUTATION OF 
              CREDITABLE SERVICE AS A MARINE CORPS OFFICER.

    (a) Service as Reserve Enlisted Member in Platoon Leaders Class.--
Section 205(f) of title 37, United States Code, is amended by striking 
``that the officer performed concurrently as a member'' and inserting 
``that the officer performed concurrently as an enlisted member''.
    (b) Correction of Reference.--Such section 205(f) is further 
amended by striking ``section 12209'' and inserting ``section 12203''.

SEC. 605. CALCULATION OF BASIC ALLOWANCE FOR HOUSING.

    (a) Rates.--Subsection (b) of section 403 of title 37, United 
States Code, is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraph (1) as paragraph (2);
            (3) by inserting after ``(b) Basic Allowance for Housing 
        Inside the United States.--'' the following: ``(1) The 
        Secretary of Defense shall prescribe the rates of the basic 
        allowance for housing that are applicable for the various 
        military housing areas in the United States. The rates for an 
        area shall be based on the costs of adequate housing determined 
        for the area under paragraph (2).''; and
            (4) in paragraph (6), by striking ``, changes in the 
        national average monthly cost of housing,''.
    (b) Repeal of Limitation on Total Payments.--Subsection (b) of such 
section is further amended--
            (1) by striking paragraphs (3) and (5); and
            (2) by redesignating paragraphs (4), (6), and (7) as 
        paragraphs (3), (4), and (5), respectively.

SEC. 606. ELIGIBILITY OF MEMBERS IN GRADE E-4 TO RECEIVE BASIC 
              ALLOWANCE FOR HOUSING WHILE ON SEA DUTY.

    (a) Payment Authorized.--Subsection (f)(2)(B) of section 403 of 
title 37, United States Code, is amended--
            (1) by striking ``E-5'' in the first sentence and inserting 
        ``E-4 or E-5''; and
            (2) by striking ``grade E-5'' in the second sentence and 
        inserting ``grades E-4 and E-5''.
    (b) Conforming Amendment.--Subsection (m)(1)(B) of such section is 
amended by striking ``E-4'' and inserting ``E-3''.

SEC. 607. PERSONAL MONEY ALLOWANCE FOR THE SENIOR ENLISTED MEMBERS OF 
              THE ARMED FORCES.

    (a) Authority.--Section 414 of title 37, United States Code, is 
amended by adding at the end the following:
    ``(c) In addition to other pay or allowances authorized by this 
title, a noncommissioned officer is entitled to a personal money 
allowance of $2,000 a year while serving as the Sergeant Major of the 
Army, the Master Chief Petty Officer of the Navy, the Chief Master 
Sergeant of the Air Force, the Sergeant Major of the Marine Corps, or 
the Master Chief Petty Officer of the Coast Guard.''.
    (b) Effective Date.--This section and the amendment made by this 
section shall take effect on October 1, 2000.

SEC. 608. INCREASED UNIFORM ALLOWANCES FOR OFFICERS.

    (a) Initial Allowance.--Section 415(a) of title 37, United States 
Code, is amended by striking ``$200'' and inserting ``$400''.
    (b) Additional Allowance.--Section 416(a) of such title is amended 
by striking ``$100'' and inserting ``$200''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2000.

SEC. 609. CABINET-LEVEL AUTHORITY TO PRESCRIBE REQUIREMENTS AND 
              ALLOWANCE FOR CLOTHING OF ENLISTED MEMBERS.

    Section 418 of title 37, United States Code, is amended--
            (1) in subsection (a), by striking ``The President'' and 
        inserting ``The Secretary of Defense and the Secretary of 
        Transportation, with respect to the Coast Guard when it is not 
        operating as a service in the Navy,''; and
            (2) in subsection (b), by striking ``the President'' and 
        inserting ``the Secretary of Defense''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR 
              RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short 
Wartime Specialties.--Section 302g(f) of title 37, United States Code, 
is amended by striking ``December 31, 2000'' and inserting ``December 
31, 2001''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of such 
title is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2001''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of such 
title is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2001''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2000'' and inserting ``December 31, 2001''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of such 
title is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2001''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking ``December 31, 2000'' and 
inserting ``December 31, 2001''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f) of such title 
is amended by striking ``December 31, 2000'' and inserting ``December 
31, 2001''.
    (h) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, 
United States Code, is amended by striking ``January 1, 2001'' and 
inserting ``January 1, 2002''.

SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR 
              NURSE OFFICER CANDIDATES, REGISTERED NURSES, AND NURSE 
              ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2000'' and inserting ``December 31, 2001''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2000'' and inserting ``December 31, 2001''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking 
``December 31, 2000'' and inserting ``December 31, 2001''.

SEC. 613. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES 
              AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2000,'' and 
inserting ``December 31, 2001,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2001''.
    (c) Enlistment Bonus for Persons With Critical Skills.--Section 
308a(d) of such title is amended by striking ``December 31, 2000'' and 
inserting ``December 31, 2001''.
    (d) Army Enlistment Bonus.--Section 308f(c) of such title is 
amended by striking ``December 31, 2000'' and inserting ``December 31, 
2001''.
    (e) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of such title is amended by striking 
``December 31, 2000'' and inserting ``December 31, 2001''.
    (f) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2000'' and inserting ``December 
31, 2001''.
    (g) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2001''.

SEC. 614. CONSISTENCY OF AUTHORITIES FOR SPECIAL PAY FOR RESERVE 
              MEDICAL AND DENTAL OFFICERS.

    (a) Reserve Medical Officers Special Pay.--Section 302(h)(1) of 
title 37, United States Code, is amended by adding at the end: ``, 
including active duty in the form of annual training, active duty for 
training, and active duty for special work''.
    (b) Reserve Dental Officers Special Pay Amendment.--Subsection (d) 
of section 302f of title 37, United States Code, is amended to read as 
follows:
    ``(d) Special Rule for Reserve Medical and Dental Officers.--While 
a Reserve medical or dental officer receives a special pay under 
section 302 or 302b of this title by reason of subsection (a), the 
officer shall not be entitled to special pay under section 302(h) or 
302b(h) of this title.''.

SEC. 615. SPECIAL PAY FOR PHYSICIAN ASSISTANTS OF THE COAST GUARD.

    Section 302c(d)(1) of title 37, United States Code, is amended by 
inserting after ``nurse,'' the following: ``an officer of the Coast 
Guard or Coast Guard Reserve designated as a physician assistant,''.

SEC. 616. AUTHORIZATION OF SPECIAL PAY AND ACCESSION BONUS FOR PHARMACY 
              OFFICERS.

    (a) Authorization of Special Pay.--Chapter 5 of title 37, United 
States Code, is amended by inserting after section 302h the following 
new section:
``Sec. 302i. Special pay: pharmacy officers
    ``(a) Army, Navy, and Air Force Pharmacy Officers.--Under 
regulations prescribed pursuant to section 303a of this title, the 
Secretary of the military department concerned may, subject to 
subsection (c), pay special pay at the rates specified in subsection 
(d) to an officer who--
            ``(1) is a pharmacy officer in the Medical Service Corps of 
        the Army or Navy or the Biomedical Sciences Corps of the Air 
        Force; and
            ``(2) is on active duty under a call or order to active 
        duty for a period of not less than one year.
    ``(b) Public Health Service Corps.--Subject to subsection (c), the 
Secretary of Health and Human Services may pay special pay at the rates 
specified in subsection (d) to an officer who--
            ``(1) is an officer in the Regular or Reserve Corps of the 
        Public Health Service and is designated as a pharmacy officer; 
        and
            ``(2) is on active duty under a call or order to active 
        duty for a period of not less than one year.
    ``(c) Limitation.--Special pay may not be paid under this section 
to an officer serving in a pay grade above pay grade O-6.
    ``(d) Rate of Special Pay.--The rate of special pay paid to an 
officer subsection (a) or (b) is as follows:
            ``(1) $3,000 per year, if the officer is undergoing 
        pharmacy internship training or has less than 3 years of 
        creditable service.
            ``(2) $7,000 per year, if the officer has at least 3 but 
        less than 6 years of creditable service and is not undergoing 
        pharmacy internship training.
            ``(3) $7,000 per year, if the officer has at least 6 but 
        less than 8 years of creditable service.
            ``(4) $12,000 per year, if the officer has at least 8 but 
        less than 12 years of creditable service.
            ``(5) $10,000 per year, if the officer has at least 12 but 
        less than 14 years of creditable service.
            ``(6) $9,000 per year, if the officer has at least 14 but 
        less than 18 years of creditable service.
            ``(7) $8,000 per year, if the officer has 18 or more years 
        of creditable service.''.
    (b) Authorization of Accession Bonuses.--Chapter 5 of that title is 
further amended by inserting after section 302i, as added by subsection 
(a) of this section, the following new section:
``Sec. 302j. Special pay: accession bonus for pharmacy officers
    ``(a) Accession Bonus Authorized.--A person who is a graduate of an 
accredited pharmacy school and who, during the period beginning on the 
date of the enactment of the National Defense Authorization Act for 
Fiscal Year 2001 and ending on September 30, 2004, executes a written 
agreement described in subsection (c) to accept a commission as an 
officer of a uniformed service and remain on active duty for a period 
of not less than 4 years may, upon acceptance of the agreement by the 
Secretary concerned, be paid an accession bonus in an amount determined 
by the Secretary concerned.
    ``(b) Limitation on Amount of Bonus.--The amount of an accession 
bonus under subsection (a) may not exceed $30,000.
    ``(c) Limitation on Eligibility for Bonus.--A person may not be 
paid a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to accept an 
        appointment as a warrant or commissioned officer, received 
        financial assistance from the Department of Defense or the 
        Department of Health and Human Services to pursue a course of 
        study in pharmacy; or
            ``(2) the Secretary concerned determines that the person is 
        not qualified to become and remain licensed as a pharmacist.
    ``(d) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the uniformed service 
concerned, the person executing the agreement shall be assigned to 
duty, for the period of obligated service covered by the agreement, as 
a pharmacy officer in the Medical Service Corps of the Army or Navy, a 
biomedical sciences officer in the Air Force designated as a pharmacy 
officer, or a pharmacy officer of the Public Health Service.
    ``(e) Repayment.--(1) An officer who receives a payment under 
subsection (a) and who fails to become and remain licensed as a 
pharmacist during the period for which the payment is made shall refund 
to the United States an amount equal to the full amount of such 
payment.
    ``(2) An officer who voluntarily terminates service on active duty 
before the end of the period agreed to be served under subsection (a) 
shall refund to the United States an amount that bears the same ratio 
to the amount paid to the officer as the unserved part of such period 
bears to the total period agreed to be served.
    ``(3) An obligation to reimburse the United States under paragraph 
(1) or (2) is for all purposes a debt owed to the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of an agreement under this section 
does not discharge the person signing such agreement from a debt 
arising under such agreement or this subsection. This paragraph applies 
to any case commenced under title 11 after the date of the enactment of 
the National Defense Authorization Act for Fiscal Year 2001.''.
    (c) Administration.--Section 303a of title 37, United States Code, 
is amended by striking ``302h'' each place it appears and inserting 
``302j''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of such title is amended by inserting after the item relating 
to section 302h the following new items:

``302i. Special pay: pharmacy officers.
``302j. Special pay: accession bonus for pharmacy officers.''.

SEC. 617. CORRECTION OF REFERENCES TO AIR FORCE VETERINARIANS.

    Section 303(a) of title 37, United States Code, is amended--
            (1) in paragraph (1)(B), by striking ``who is designated as 
        a veterinary officer'' and inserting ``who is an officer in the 
        Biomedical Sciences Corps and holds a degree in veterinary 
        medicine''; and
            (2) in paragraph (2), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) of a reserve component of the Air Force, of 
                the Army or the Air Force without specification of 
                component, or of the National Guard, who--
                            ``(i) is designated as a veterinary 
                        officer; or
                            ``(ii) is an officer in the Biomedical 
                        Sciences Corps of the Air Force and holds a 
                        degree in veterinary medicine; or''.

SEC. 618. ENTITLEMENT OF ACTIVE DUTY OFFICERS OF THE PUBLIC HEALTH 
              SERVICE CORPS TO SPECIAL PAYS AND BONUSES OF HEALTH 
              PROFESSIONAL OFFICERS OF THE ARMED FORCES.

    (a) In General.--Section 303a of title 37, United States Code, is 
amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b)(1) Except as provided in paragraph (2) or as otherwise 
provided under a provision of this chapter, commissioned officers in 
the Regular or Reserve Corps of the Public Health Service shall be 
entitled to special pay under the provisions of this chapter in the 
same amounts, and under the same terms and conditions, as commissioned 
officers of the armed forces are entitled to special pay under the 
provisions of this chapter.
    ``(2) A commissioned medical officer in the Regular or Reserve 
Corps of the Public Health Service (other than an officer serving in 
the Indian Health Service) may not receive additional special pay under 
section 302(a)(4) of this title for any period during which the officer 
is providing obligated service under the following provisions of law:
            ``(A) Section 338B of the Public Health Service Act (42 
        U.S.C. 254l-1).
            ``(B) Section 225(e) of the Public Health Service Act, as 
        that section was in effect before 1, 1977.
            ``(C) Section 752 of the Public Health Service Act, as that 
        section was in effect between October 1, 1977, and August 13, 
        1981.''.
    (b) Repeal of Superseded Provisions.--Section 208(a) of the Public 
Health Service Act (42 U.S.C. 210(a)) is amended--
            (1) by striking paragraphs (2) and (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) For provisions relating to the receipt of special pay by 
commissioned officers of the Regular and Reserve Corps while on active 
duty, see section 303a(b) of title 37, United States Code.''.

SEC. 619. CAREER SEA PAY.

    (a) Reform of Authorities.--Section 305a of title 37, United States 
Code, is amended--
            (1) in subsection (a), by striking ``Under regulations 
        prescribed by the President, a member'' and inserting ``A 
        member'';
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by striking subsections (b) and (c) and inserting the 
        following:
    ``(b) The Secretary concerned shall prescribe the monthly rates for 
special pay applicable to members of each armed force under the 
Secretary's jurisdiction. No monthly rate may exceed $750.
    ``(c) A member of a uniformed service entitled to career sea pay 
under this section who has served 36 consecutive months of sea duty is 
also entitled to a career sea pay premium for the thirty-seventh 
consecutive month and each subsequent consecutive month of sea duty 
served by such member. The monthly amount of the premium shall be 
prescribed by the Secretary concerned, but may not exceed $350.
    ``(d) The Secretary concerned shall prescribe regulations for the 
administration of this section for the armed force or armed forces 
under the jurisdiction of the Secretary. The entitlements under this 
section shall be subject to the regulations.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2000, and shall apply with respect to months 
beginning on or after that date.

SEC. 620. INCREASED MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT PAY.

    Section 307(a) of title 37, United States Code, is amended--
            (1) by striking ``$275'' and inserting ``$600''; and
            (2) by striking the second sentence.

SEC. 621. EXPANSION OF APPLICABILITY OF AUTHORITY FOR CRITICAL SKILLS 
              ENLISTMENT BONUS TO INCLUDE ALL ARMED FORCES.

    (a) Expansion of Authority.--Section 308f of title 37, United 
States Code, is amended--
            (1) by striking ``Secretary of the Army'' each place it 
        appears and inserting ``Secretary concerned''; and
            (2) by striking ``the Army'' in subsections (a)(3) and (c) 
        and inserting ``an armed force''.
    (b) Conforming Amendment.--The heading for such section is amended 
to read as follows:
``Sec. 308f. Special pay: bonus for enlistment''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of title 37, United States Code, is amended by striking the 
item relating to section 308f and inserting the following:

``308f. Special pay: bonus for enlistment.''.
    (d) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2000, and shall apply with 
respect to months beginning on or after that date.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. ADVANCE PAYMENTS FOR TEMPORARY LODGING OF MEMBERS AND 
              DEPENDENTS.

    (a) Subsistence Expenses.--Section 404a of title 37, United States 
Code, is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (d) and (e), respectively; and
            (2) by striking subsection (a) and inserting the following:
    ``(a)(1) Under regulations prescribed by the Secretaries concerned, 
a member of a uniformed service who is ordered to make a change of 
permanent station described in paragraph (2) shall be paid or 
reimbursed for subsistence expenses of the member and the member's 
dependents for the period (subject to subsection (c)) for which the 
member and dependents occupy temporary quarters incident to that change 
of permanent station.
    ``(2) Paragraph (1) applies to the following:
            ``(A) A permanent change of station from any duty station 
        to a duty station in the United States (other than Hawaii or 
        Alaska).
            ``(B) A permanent change of station from a duty station in 
        the United States (other than Hawaii or Alaska) to a duty 
        station outside the United States or in Hawaii or Alaska.
    ``(b) The Secretary concerned may make any payment for subsistence 
expenses to a member under this section in advance of the incurrence of 
the expenses. The amount of an advance payment made to a member shall 
be computed on the basis of the Secretary's determination of the 
average number of days that members and their dependents occupy 
temporary quarters under the circumstances applicable to the member and 
the member's dependents.
    ``(c)(1) In the case of a change of permanent station described in 
subsection (a)(2)(A), the period for which subsistence expenses are to 
be paid or reimbursed under this section may not exceed 10 days.
    ``(2) In the case of a change of permanent station described in 
subsection (a)(2)(B)--
            ``(A) the period for which such expenses are to be paid or 
        reimbursed under this section may not exceed five days; and
            ``(B) such payment or reimbursement may be provided only 
        for expenses incurred before leaving the United States (other 
        than Hawaii or Alaska).''.
    (b) Per Diem.--Section 405 of such title is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by striking subsection (a) and inserting the following:
    ``(a) Without regard to the monetary limitation of this title, the 
Secretary concerned may pay a per diem to a member who is on duty 
outside of the United States or in Hawaii or Alaska, whether or not the 
member is in a travel status. The Secretary may pay the per diem in 
advance of the accrual of the per diem.
    ``(b) In determining the per diem to be paid under this section, 
the Secretary concerned shall consider all elements of the cost of 
living to members of the uniformed services under the Secretary's 
jurisdiction and their dependents, including the cost of quarters, 
subsistence, and other necessary incidental expenses. However, 
dependents may not be considered in determining the per diem allowance 
for a member in a travel status.''.

SEC. 632. INCENTIVE FOR SHIPPING AND STORING HOUSEHOLD GOODS IN LESS 
              THAN AVERAGE WEIGHTS.

    Section 406(b)(1) of title 37, United States Code, is amended by 
adding at the end the following new subparagraph:
    ``(G) The Secretary concerned may pay a member a share (determined 
by the Secretary) of the amount of the savings resulting to the United 
States for less than average shipping and storage of the member's 
baggage and household effects under subparagraph (A). Shipping and 
storage of a member's baggage and household effects for a member shall 
be considered as less than average if the total weights of the baggage 
and household effects shipped and stored are less than the average 
weights of the baggage and household effects that are shipped and 
stored, respectively, by members of the same grade and status with 
respect to dependents as the member in connection with changes of 
station that are comparable to the member's change of station. The 
amount of the savings shall be the amount equal to the excess of the 
cost of shipping and cost of storing such average weights of baggage 
and household effects, respectively, over the corresponding costs 
associated with the weights of the member's baggage and household 
effects. For the administration of this subparagraph, the Secretary of 
Defense shall annually determine the average weights of baggage and 
household effects shipped and stored.''.

SEC. 633. EXPANSION OF FUNDED STUDENT TRAVEL.

    Section 430 of title 37, United States Code, is amended--
            (1) in subsection (a)(3), by striking ``for the purpose of 
        obtaining a secondary or undergraduate college education'' and 
        inserting ``for the purpose of obtaining a formal education'';
            (2) in subsection (b), by striking ``for the purpose of 
        obtaining a secondary or undergraduate college education'' and 
        inserting ``for the purpose of obtaining a formal education''; 
        and
            (3) in subsection (f)--
                    (A) by striking ``In this section, the term'' and 
                insert the following:
    ``In this section:
            ``(1) The term''; and
                    (B) by adding at the end the following:
            ``(2) The term `formal education' means the following:
                    ``(A) A secondary education.
                    ``(B) An undergraduate college education.
                    ``(C) A graduate education pursued on a full-time 
                basis at an institution of higher education (as defined 
                in section 101 of the Higher Education Act of 1965 (20 
                U.S.C. 1001)).
                    ``(D) Vocational education pursued on a full-time 
                basis at a post-secondary vocational institution (as 
                defined in section 102(c) of the Higher Education Act 
                of 1965 (20 U.S.C. 1002(c))).''.

SEC. 634. BENEFITS FOR MEMBERS NOT TRANSPORTING PERSONAL MOTOR VEHICLES 
              OVERSEAS.

    (a) Incentives.--Section 2634 of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (h) as subsection (i); and
            (2) by inserting after subsection (g) the following new 
        subsection (h):
    ``(h)(1) If a member of an armed force authorized the 
transportation of a motor vehicle under subsection (a) elects not to 
have the vehicle transported and not (if eligible) to have the vehicle 
stored under subsection (b), the Secretary concerned may pay the member 
a share (determined by the Secretary) of the amount of the savings 
resulting to the United States. The Secretary may make the payment in 
advance of the member's change of permanent station.
    ``(2) The Secretary of Defense shall determine annually the rates 
of savings to the United States that are associated with elections of a 
member described in paragraph (1).''.
    (b) Storage as Alternative to Transportation for Unaccompanied 
Assignments.--Subsection (b) of such section--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3) If a member authorized the transportation of a motor vehicle 
under subsection (a) is not authorized under reassignment orders to be 
accompanied by dependents on a command-sponsored basis, the member may 
elect, in lieu of that transportation, to have the motor vehicle stored 
at a location approved by the Secretary concerned. If storage is 
elected, the Secretary shall pay the expenses associated with the 
storage of the vehicle, as authorized under paragraph (4), up to the 
amount equal to the cost that would have been incurred by the United 
States for transportation of the vehicle under subsection (a). The 
member shall be responsible for the payment of the costs of the storage 
in excess of that amount.''.

                    Subtitle D--Retirement Benefits

SEC. 641. EXCEPTION TO HIGH-36 MONTH RETIRED PAY COMPUTATION FOR 
              MEMBERS RETIRED FOLLOWING A DISCIPLINARY REDUCTION IN 
              GRADE.

    Section 1407 of title 10, United States Code, is amended--
            (1) in subsection (b), by striking ``The retired pay base'' 
        and inserting ``Except as provided in subsection (f), the 
        retired pay base''; and
            (2) by adding at the end the following new subsection:
    ``(f) Exception for Enlisted Members Reduced in Grade and Officers 
Who Do Not Serve Satisfactorily in Highest Grade Held.--
            ``(1) Computation based on pre-high-three rules.--In the 
        case of a member or former member described in paragraph (2), 
        the retired pay base or retainer pay base is determined under 
        section 1406 of this title in the same manner as if the member 
        or former member first became a member of a uniformed service 
        before September 8, 1980.
            ``(2) Affected members.--A member or former member referred 
        to in paragraph (1) is a member or former member who by reason 
        of conduct occurring after the date of the enactment of this 
        subsection--
                    ``(A) in the case of a member retired in an 
                enlisted grade or transferred to the Fleet Reserve or 
                Fleet Marine Corps Reserve, was at any time reduced in 
                grade as the result of a court-martial sentence, 
                nonjudicial punishment, or an administrative action, 
                unless the member was subsequently promoted to a higher 
                enlisted grade or appointed to a commissioned or 
                warrant grade; and
                    ``(B) in the case of an officer, is retired in a 
                grade lower than the highest grade in which served by 
                reason of denial of a determination or certification 
                under section 1370 of this title that the officer 
                served on active duty satisfactorily in that grade.
            ``(3) Special rule for enlisted members.--In the case of a 
        member who retires within three years after having been reduced 
        in grade as described in paragraph (2)(A), who retires in an 
        enlisted grade that is lower than the grade from which reduced, 
        and who would be subject to paragraph (2)(A) but for a 
        subsequent promotion to a higher enlisted grade or a subsequent 
        appointment to a warrant or commissioned grade, the rates of 
        basic pay used in the computation of the member's high-36 
        average for the period of the member's service in a grade 
        higher than the grade in which retired shall be the rates of 
        pay that would apply if the member had been serving for that 
        period in the grade in which retired.''.

SEC. 642. AUTOMATIC PARTICIPATION IN RESERVE COMPONENT SURVIVOR BENEFIT 
              PLAN UNLESS DECLINED WITH SPOUSE'S CONSENT.

    (a) Initial Opportunity To Decline.--Paragraph (2)(B) of section 
1448(a) of title 10, United States Code, is amended to read as follows:
                    ``(B) Reserve-component annuity participants.--A 
                person who is--
                            ``(i) eligible to participate in the Plan 
                        under paragraph (1)(B); and
                            ``(ii) married or has a dependent child 
                        when he is notified under section 12731(d) of 
                        this title that he has completed the years of 
                        service required for eligibility for reserve-
                        component retired pay, unless the person elects 
                        (with his spouse's concurrence, if required 
                        under paragraph (3)) not to participate in the 
                        Plan before the end of the 90-day period 
                        beginning on the date he receives such 
                        notification.
                A person who elects not to participate in the Plan as 
                described in the foregoing sentence remains eligible, 
                upon reaching 60 years of age and otherwise becoming 
                entitled to retired pay, to participate in the Plan in 
                accordance with eligibility under paragraph (1)(A).''.
    (b) Spousal Consent Requirement.--Paragraph (3)(B) of such section 
is amended--
            (1) by striking ``who elects to provide'' and inserting 
        ``who is eligible to provide'';
            (2) by redesignating clauses (i) and (ii) as clauses (iii) 
        and (iv), respectively; and
            (3) by inserting before clause (iii), as so redesignated, 
        the following:
                            ``(i) not to participate in the Plan;
                            ``(ii) to defer the effective date of 
                        annuity payments to the 60th anniversary of the 
                        member's birth pursuant to subsection 
                        (e)(2);''.
    (c) Irrevocability of Election Not To Participate Made Upon Receipt 
of 20-Year Letter.--Paragraph (4)(B) of such section is amended by 
striking ``to participate in the Plan is irrevocable'' and inserting 
``not to participate in the Plan is, subject to the sentence following 
clause (ii) of paragraph (2)(B), irrevocable''.
    (d) Designation of Commencement of Reserve-Component Annuity.--(1) 
Section 1448(e) of title 10, United States Code, is amended by striking 
``a person electing to participate'' and all that follows through 
``making such election'' and inserting ``a person is required to make a 
designation under this subsection, the person''.
    (2) Section 1450(j)(1) of such title is amended to read as follows:
            ``(1) Person making section 1448(e) designation.--A 
        reserve-component annuity shall be effective in accordance with 
        the designation made under section 1448(e) of this title by the 
        person providing the annuity.''.
    (e) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2000.

SEC. 643. PARTICIPATION IN THRIFT SAVINGS PLAN.

    (a) Effective Date of Participation Authority.--Section 663 of the 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 
106-65; 113 Stat. 673; 5 U.S.C. 8440 note) is amended to read as 
follows:

``SEC. 663. EFFECTIVE DATE.

    ``(a) In General.--The amendments made by this subtitle shall take 
effect 180 days after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2001.
    ``(b) Postponement Authority.--(1) The Secretary of Defense may 
postpone the authority of members of the Ready Reserve to participate 
in the Thrift Savings Plan under section 211 of title 37, United States 
Code (as amended by this subtitle) up to 360 days after the date 
referred to in subsection (a) if the Secretary, after consultation with 
the Executive Director (appointed by the Federal Retirement Thrift 
Investment Board), determines that permitting such members to 
participate in the Thrift Savings Plan earlier would place an excessive 
burden on the administrative capacity of the Board to accommodate 
participants in the Thrift Savings Plan.
    ``(2) The Secretary shall notify the congressional defense 
committees, the Committee on Government Reform of the House of 
Representatives, and the Committee on Governmental Affairs of the 
Senate of any determination made under paragraph (1).''.
    (b) Regulations.--Section 661(b) of such Act (113 Stat. 672; 5 
U.S.C. 8440e) is amended by striking ``the date on which'' and all that 
follows through ``later,'' and inserting ``the effective date of the 
amendments made by this subtitle (determined under section 663(a)),''.

SEC. 644. RETIREMENT FROM ACTIVE RESERVE SERVICE AFTER REGULAR 
              RETIREMENT.

    (a) Conversion to Reserve Retirement.--(1) Chapter 1223 of title 
10, United States Code, is amended by adding at the end the following:
``Sec. 12741. Retirement from active reserve service performed after 
              regular retirement
    ``(a) Reserve Retirement.--Upon the election of a member or former 
member of a reserve component under subsection (b), the Secretary 
concerned shall--
            ``(1) treat the person as being entitled to retired pay 
        under this chapter;
            ``(2) terminate the person's entitlement to retired pay 
        that is payable out of the Department of Defense Military 
        Retirement Fund under any other provision of law other than 
        this chapter; and
            ``(3) in the case of a reserve commissioned officer, 
        transfer the officer to the Retired Reserve.
    ``(b) Eligibility and Election.--A person who, after being retired 
under chapter 65, 367, 571, or 867 of this title, serves in an active 
status in a reserve component of the armed forces may elect to receive 
retired pay under this chapter if--
            ``(1) the person would, except for paragraph (4) of section 
        12731(a) of this title, otherwise be entitled to retired pay 
        under this chapter; and
            ``(2) during that reserve service, the person served 
        satisfactorily as--
                    ``(A) a reserve commissioned officer; or
                    ``(B) a reserve noncommissioned officer.
    ``(c) Time and Form of Election.--An election under subsection (b) 
shall be made within such time and in such form as the Secretary 
concerned requires.
    ``(d) Effective Date of Election.--An election made by a person 
under subsection (b) shall be effective--
            ``(1) except as provided in paragraph (2)(B), as of the 
        date on which the person attains 60 years of age, if the 
        election is made in accordance with this section within 180 
        days after that date; or
            ``(2) on the first day of the first month that begins after 
        the date on which the election is made in accordance with this 
        section, if--
                    ``(A) the election is made more than 180 days after 
                the date on which the person attains 60 years of age; 
                or
                    ``(B) the person retires from active reserve 
                service within that 180-day period.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``12741. Retirement from active service performed after regular 
                            retirement.''.
    (b) Effective Date and Applicability.--(1) This section and the 
amendments made by this section shall take effect 180 days after the 
date of the enactment of this Act.
    (2) No benefits shall accrue under section 12741 of title 10, 
United States Code (as added by subsection (a)), for any period before 
the first day of the first month that begins on or after the effective 
date of this section.

SEC. 645. SAME TREATMENT FOR FEDERAL JUDGES AS FOR OTHER FEDERAL 
              OFFICIALS REGARDING PAYMENT OF MILITARY RETIRED PAY.

    (a) Repeal of Requirement for Suspension During Regular Active 
Service.--Section 371 of title 28, United States Code, is amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsection (f) as subsection (e).
    (b) Conforming Amendments.--Subsection (b) of such section is 
amended by striking ``subsection (f)'' each place it appears and 
inserting ``subsection (e)''.
    (c) Retroactive Effective Date.--The amendments made by this 
section shall take effect as of October 1, 1999.

                       Subtitle E--Other Matters

SEC. 651. REIMBURSEMENT OF RECRUITING AND ROTC PERSONNEL FOR PARKING 
              EXPENSES.

    (a) In General.--Chapter 53 of title 10, United States Code, is 
amended by inserting after section 1053 the following new section:
``Sec. 1053a. Reimbursement of recruiting and ROTC personnel: parking 
              expenses
    ``(a) Authority.--The Secretary concerned may, under regulations 
prescribed by the Secretary of Defense, reimburse eligible Department 
of Defense personnel for expenses incurred for parking a privately 
owned vehicle at a place of duty.
    ``(b) Eligibility.--A member of the armed forces or employee of the 
Department of Defense is eligible for reimbursement under subsection 
(a) while--
            ``(1) assigned to duty as a recruiter for any of the armed 
        forces;
            ``(2) assigned to duty at a military entrance processing 
        facility of the armed forces; or
            ``(3) detailed for instructional and administrative duties 
        at any institution where a unit of the Senior Reserve Officers' 
        Training Corps is maintained.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1053 the following:

``1053a. Reimbursement of recruiting and ROTC personnel: parking 
                            expenses.''.

SEC. 652. EXTENSION OF DEADLINE FOR FILING CLAIMS ASSOCIATED WITH 
              CAPTURE AND INTERNMENT OF CERTAIN PERSONS BY NORTH 
              VIETNAM.

    Section 657(d)(1) of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2585) is amended by 
adding at the end the following: ``The Secretary may extend the time 
limitation under the preceding sentence for up to 18 months in the case 
of any claim for which the Secretary determines that the extension is 
necessary to prevent an injustice or that a failure to file within the 
time limitation is due to excusable neglect.''.

SEC. 653. SETTLEMENT OF CLAIMS FOR PAYMENTS FOR UNUSED ACCRUED LEAVE 
              AND FOR RETIRED PAY.

    (a) Claims for Payments for Unused Accrued Leave.--Subsection 
(a)(1) of section 3702 of title 31, United States Code, is amended by 
inserting ``payments for unused accrued leave,'' after 
``transportation,''.
    (b) Waiver of Time Limitations.--Subsection (e)(1) of such section 
is amended by striking ``claim for pay or allowances under title 37'' 
and inserting ``claim for pay, allowances, or payment for unused 
accrued leave under title 37 or a claim for retired pay under title 
10''.

SEC. 654. ELIGIBILITY OF CERTAIN MEMBERS OF THE INDIVIDUAL READY 
              RESERVE FOR SERVICEMEMBERS' GROUP LIFE INSURANCE.

    Section 1965(5) of title 38, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph (C):
                    ``(C) a person who volunteers for assignment to a 
                category in the Individual Ready Reserve of a uniformed 
                service that is subject to an involuntary call to 
                active duty under section 12304 of title 10; and''.

SEC. 655. AUTHORITY TO PAY GRATUITY TO CERTAIN VETERANS OF BATAAN AND 
              CORREGIDOR.

    (a) Payment of Gratuity Authorized.--The Secretary of Veterans 
Affairs may pay a gratuity to a covered veteran, or to the surviving 
spouse of a covered veteran, in the amount of $20,000.
    (b) Covered Veteran Defined.--For purposes of subsection (a), the 
term ``covered veteran'' means any veteran of the Armed Forces who--
            (1) served at Bataan or Corregidor in the Philippines 
        during World War II;
            (2) was captured and held as a prisoner of war by Japan as 
        a result of such service; and
            (3) was required by Japan to perform slave labor in Japan 
        during World War II.
    (c) Relationship to Other Payments.--Any amount paid a person under 
this section for activity described in subsection (b) is in addition to 
any other amount paid such person for such activity under any other 
provision of law.

                         TITLE VII--HEALTH CARE

                     Subtitle A--Senior Health Care

SEC. 701. EXTENSION OF TRICARE SENIOR SUPPLEMENT DEMONSTRATION PROGRAM.

    Section 722(a)(2) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
2065; 10 U.S.C. 1073 note) is amended by striking ``December 31, 2002'' 
and inserting ``December 31, 2005''.

SEC. 702. TRICARE SENIOR PRIME DEMONSTRATION PROGRAM.

    (a) Extension of Demonstration Program.--Paragraph (4) of section 
1896(b) of the Social Security Act (42 U.S.C. 1395ggg(b)) is amended by 
striking ``3-year period beginning on January 1, 1998'' and inserting 
``period beginning on January 1, 1998, and ending on December 31, 
2005''.
    (b) Addition of Major Medical Centers.--Paragraph (1)(A) of such 
section 1895(b) is amended by striking ``in a military treatment 
facility'' and inserting ``in a Department of Defense medical center 
considered by the Secretary to be a major medical center, in any other 
military treatment facility,''.
    (c) Designation of Additional Sites.--Paragraph (2) of such section 
1896(b) is amended to read as follows:
            ``(2) Designation of sites.--
                    ``(A) In general.--The project established under 
                this section shall be conducted at sites designated 
                jointly by the administering Secretaries after review 
                of all TRICARE regions.
                    ``(B) Specific sites.--The sites for the project 
                shall include the 6 sites designated in accordance with 
                subparagraph (A) before the date of the enactment of 
                the National Defense Authorization Act for Fiscal Year 
                2001 and the major medical centers designated after 
                such date in accordance with that subparagraph.''.

SEC. 703. EXTENSION AND EXPANSION OF DEMONSTRATION PROJECT FOR 
              PARTICIPATION OF UNIFORMED SERVICES PERSONNEL IN THE 
              FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM.

    (a) Extension.--(1) Subsection (d) of section 1108 of title 10, 
United States Code, is amended--
            (A) in paragraph (1), by striking ``three contract years'' 
        and inserting ``six contract years''; and
            (B) in paragraph (2), by striking ``December 31, 2002'' in 
        the second sentence and inserting ``December 31, 2005''.
    (2) Subsection (f)(1) of such section is amended to read as 
follows:
    ``(1) Subject to paragraphs (2) and (3), the period of enrollment 
of an eligible beneficiary who--
            ``(A) enrolls in the demonstration project during the open 
        enrollment period for the year 2000 shall be three years unless 
        the beneficiary disenrolls before the termination of the 
        project; or
            ``(B) enrolls, or extends a previous enrollment under 
        subsection (d)(2), during the open enrollment period for a year 
        after 2000 shall be equal to the remaining number of years of 
        the demonstration project under this section unless the 
        beneficiary disenrolls before the termination of the 
        project.''.
    (b) Additional Areas of Coverage.--Subsection (c) of such section 
is amended--
            (1) by striking ``(c) Area of Demonstration Project.--'' 
        and inserting ``(c) Areas for Demonstration Project.--(1)'';
            (2) by striking ``, but not more than ten,''; and
            (3) by striking the third sentence and inserting the 
        following:
    ``(2) In establishing the areas for the demonstration project, the 
Secretary and Director shall include an area that includes the 
catchment area of one or more military medical treatment facilities, an 
area that is not located in the catchment area of a military medical 
treatment facility, an area in which there is a Medicare Subvention 
Demonstration project area under section 1896 of title XVIII of the 
Social Security Act (42 U.S.C. 1395ggg), and one area for each TRICARE 
region. Each area selected after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2001 shall be an 
area that is not located in the catchment area of a military medical 
treatment facility.''.
    (c) Implementation.--The Secretary of Defense shall implement the 
amendments made by subsection (a) as soon as is practicable, but may 
waive the implementation with respect to 2001 if the Secretary 
determines that it is impracticable to implement the amendments with 
respect to that year.

SEC. 704. IMPLEMENTATION OF REDESIGNED PHARMACY SYSTEM.

    (a) Enrollment Fee and Deductibles Required.--Subsection (b) of 
section 723 of the Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2068; 10 U.S.C. 
1073 note) is amended to read as follows:
    ``(b) Enrollment Fees, Deductibles, and Other Charges.--(1) The 
Secretary may require each eligible individual described in subsection 
(e) who participates in the redesigned pharmacy system to pay an 
enrollment fee. The Secretary shall ensure that any such enrollment fee 
required after December 31, 2000, is lower than the enrollment fee 
charged under this subsection on such date.
    ``(2) The Secretary may also impose one or more cost-sharing 
requirements for each individual referred to in paragraph (1) for 
benefits under the redesigned pharmacy system as follows:
            ``(A) An annual deductible requirement for each such 
        individual.
            ``(B) Any premiums, copayments, or other charges that the 
        Secretary would otherwise collect from individuals similar to 
        such individual.''.
    (b) Periodic Payment of Premiums.--Subsection (b) of such section 
is further amended by adding at the end the following:
    ``(2) An individual may elect to pay a premium charged under this 
subsection on a monthly or quarterly basis.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2001, and shall apply with respect to 
participation in the redesigned pharmacy system under section 723 of 
Public Law 105-261 for months beginning on or after that date.

                      Subtitle B--TRICARE Program

SEC. 711. ADDITIONAL BENEFICIARIES UNDER TRICARE PRIME REMOTE PROGRAM 
              IN CONUS.

    (a) Coverage of Other Uniformed Services.--(1) Section 1074(c) of 
title 10, United States Code, is amended--
            (A) by striking ``armed forces'' each place it appears, 
        except in paragraph (3)(A), and inserting ``uniformed 
        services'';
            (B) in paragraph (1), by inserting after ``military 
        department'' in the first sentence the following: ``, the 
        Department of Transportation (with respect to the Coast Guard 
        when it is not operating as a service in the Navy), or the 
        Department of Health and Human Services (with respect to the 
        National Oceanic and Atmospheric Administration and the Public 
        Health Service)'';
            (C) in paragraph (2), by adding at the end the following:
            ``(C) The Secretary of Defense shall consult with the other 
        administering Secretaries in the administration of this 
        paragraph.''; and
            (D) in paragraph (3)(A), by striking ``The Secretary of 
        Defense may not require a member of the armed forces described 
        in subparagraph (B)'' and inserting ``A member of the uniformed 
        services described in subparagraph (B) may not be required''.
    (2)(A) Subsections (b), (c), and (d)(3) of section 731 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1811; 10 U.S.C. 1074 note) are amended by striking 
``Armed Forces'' and inserting ``uniformed services''.
    (B) Subsection (b) of such section is further amended by adding at 
the end the following:
    ``(4) The Secretary of Defense shall consult with the other 
administering Secretaries in the administration of this subsection.''.
    (C) Subsection (f) of such section is amended by adding at the end 
the following:
            ``(3) The terms `uniformed services' and `administering 
        Secretaries' have the meanings given those terms in section 
        1072 of title 10, United States Code.''.
    (3) Section 706(b) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 684) is amended by 
striking ``Armed Forces'' and inserting ``uniformed services (as 
defined in section 1072(1) of title 10, United States Code)''.
    (b) Coverage of Immediate Family.--(1) Section 1079 of title 10, 
United States Code, is amended by adding at the end the following:
    ``(p)(1) Subject to such exceptions as the Secretary of Defense 
considers necessary, coverage for medical care under this section for 
the dependents referred to in subsection (a) of a member of the 
uniformed services referred to in section 1074(c)(3) of this title who 
are residing with the member, and standards with respect to timely 
access to such care, shall be comparable to coverage for medical care 
and standards for timely access to such care under the managed care 
option of the TRICARE program known as TRICARE Prime.
    ``(2) The Secretary of Defense shall enter into arrangements with 
contractors under the TRICARE program or with other appropriate 
contractors for the timely and efficient processing of claims under 
this subsection.
    ``(3) The Secretary of Defense shall consult with the other 
administering Secretaries in the administration of this subsection.''.
    (2) Section 731(b) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1811; 10 U.S.C. 1074 
note) is amended--
            (A) in paragraph (1), by adding at the end the following: 
        ``A dependent of the member, as described in subparagraph (A), 
        (D), or (I) of section 1072(2) of title 10, United States Code, 
        who is residing with the member shall have the same entitlement 
        to care and to waiver of charges as the member.''; and
            (B) in paragraph (2), by inserting ``or dependent of the 
        member, as the case may be,'' after ``(2) A member''.
    (c) Effective Date.--(1) The amendments made by subsection (a)(2), 
with respect to members of the uniformed services, and the amendments 
made by subsection (b)(2), with respect to dependents of members, shall 
take effect on the date of the enactment of this Act and shall expire 
with respect to a member or the dependents of a member, respectively, 
on the later of the following:
            (A) The date that is one year after the date of the 
        enactment of this Act.
            (B) The date on which the amendments subsection (a)(1) or 
        (b)(1) apply with respect to the coverage of medical care for 
        and provision of such care to the member or dependents, 
        respectively.
    (2) Section 731(b)(3) of Public Law 105-85 does not apply to a 
member of the Coast Guard, the National Oceanic and Atmospheric 
Administration, or the Commissioned Corps of the Public Health Service, 
or to a dependent of a member of a uniformed service.

SEC. 712. ELIMINATION OF COPAYMENTS FOR IMMEDIATE FAMILY.

    (a) No Copayment for Immediate Family.--Section 1097a of title 10, 
United States Code, is amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) No Copayment for Immediate Family.--No copayment shall be 
charged a member for care provided under TRICARE Prime to a dependent 
of a member of the uniformed services described in subparagraph (A), 
(D), or (I) of section 1072 of this title.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2000, and shall apply with respect to care 
provided on or after that date.

SEC. 713. IMPROVEMENT IN BUSINESS PRACTICES IN THE ADMINISTRATION OF 
              THE TRICARE PROGRAM.

    (a) Requirement.--Not later than October 1, 2001, the Secretary of 
Defense shall take actions that the Secretary considers appropriate to 
improve the business practices used in administering the access of 
eligible persons to health care services through the TRICARE program 
under chapter 55 of title 10, United States Code, including the 
practices relating to the following:
            (1) The availability and scheduling of appointments.
            (2) The filing, processing, and payment of claims.
            (3) Public relations efforts that are focused on outreach 
        to eligible persons.
            (4) The continuation of enrollments without expiration.
            (5) The portability of enrollments nationwide.
    (b) Consultation.--The Secretary of Defense shall consult with the 
other administering Secretaries in the development of the actions to be 
taken under subsection (a).
    (c) Report.--Not later than March 15, 2001, the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and House of Representatives a report on the actions to be taken under 
subsection (a).
    (d) Definitions.--In this section the terms ``administering 
Secretaries'' and ``TRICARE program'' shall have the meanings given 
such terms in section 1072 of title 10, United States Code.

   Subtitle C--Joint Initiatives With Department of Veterans Affairs

SEC. 721. TRACKING PATIENT SAFETY IN MILITARY AND VETERANS HEALTH CARE 
              SYSTEMS.

    (a) Centralized Tracking Process.--The Secretary of Defense and the 
Secretary of Veterans Affairs shall jointly prescribe a centralized 
process for the reporting, compiling, and analysis of errors in the 
provision of health care under the Defense Health Program and the 
Department of Veterans Affairs health care system that endanger 
patients beyond the normal risks associated with the care and treatment 
of the patients.
    (b) Safety Indicators, Et Cetera.--The process shall include such 
indicators, standards, and protocols as the Secretary of Defense and 
the Secretary of Veterans Affairs consider necessary for the 
establishment and administration of an effective process.

SEC. 722. PHARMACEUTICAL IDENTIFICATION TECHNOLOGY.

    (a) Bar Code Identification Technology.--The Secretary of Defense 
and the Secretary of Veterans Affairs shall jointly develop a system 
for the use of bar codes for the identification of pharmaceuticals.
    (b) Use in Mail Order Pharmaceuticals Program.--The Secretary of 
Defense, in consultation with the Secretary of Veterans Affairs, shall 
experiment with the use of bar code identification of pharmaceuticals 
in the administration of the mail order pharmaceuticals program carried 
out under section 1110(a) of title 10, United States Code (as added by 
section 731).

SEC. 723. MEDICAL INFORMATICS.

    (a) Addition Matters for Annual Report on Medical Informatics 
Advisory Committee.--Section 723(d)(5) of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 
697; 10 U.S.C. 1071 note) is amended to read as follows:
    ``(5) The Secretary of Defense shall submit to Congress an annual 
report on medical informatics. The report shall include a discussion of 
the following matters:
            ``(A) The activities of the Committee.
            ``(B) The coordination of development, deployment, and 
        maintenance of health care informatics systems within the 
        Federal Government, and between the Federal Government and the 
        private sector.
            ``(C) The progress or growth occurring in medical 
        informatics.
            ``(D) How the TRICARE program and the Department of 
        Veterans Affairs health care system can use the advancement of 
        knowledge in medical informatics to raise the standards of 
        health care and treatment and the expectations for improving 
        health care and treatment.''.
    (b) Fiscal Year 2001 Funding for Pharmaceuticals-Related Medical 
Informatics.--Of the amount authorized to be appropriated under section 
301(22)--
            (1) $64,000,000 is available for the commencement of the 
        implementation of a new computerized medical record, including 
        an automated entry order system for pharmaceuticals, that makes 
        all relevant clinical information on a patient under the 
        Defense Health Program available when and where it is needed; 
        and
            (2) $9,000,000 is available for the implementation of an 
        integrated pharmacy system under the Defense Health Program 
        that creates a single profile for all of the prescription 
        medications a patient takes, regardless of whether the 
        prescriptions for those medications were filled at military or 
        private pharmacies serving Department of Defense beneficiaries 
        worldwide.

                       Subtitle D--Other Matters

SEC. 731. PERMANENT AUTHORITY FOR CERTAIN PHARMACEUTICAL BENEFITS.

    (a) Authority.--(1) Chapter 55 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 1110. Pharmaceutical benefits
    ``(a) Pharmaceuticals by Mail.--The Secretary of Defense shall 
carry out a program to provide eligible persons with prescription 
pharmaceuticals by mail.
    ``(b) Retail Pharmacy Network.--To the maximum extent practicable, 
the Secretary of Defense shall include in each managed health care 
program under this chapter, a program to supply prescription 
pharmaceuticals to eligible persons through a managed care network of 
community retail pharmacies in the area covered by the managed health 
care program.
    ``(c) Eligible Persons.--A person is eligible to obtain 
pharmaceuticals under the program of pharmaceuticals by mail under 
subsection (a) or through a retail pharmacy network included in a 
managed health care program under subsection (b) as follows:
            ``(1) A person who is eligible for medical care under a 
        contract for medical care entered into by the Secretary of 
        Defense under section 1079 or 1086 of this title.
            ``(2) A person who would be eligible for medical care under 
        a contract for medical care entered into under section 1086 of 
        this title except for the operation of subsection (d)(1) of 
        such section.
    ``(d) Pharmaceuticals Offered.--The Secretary of Defense shall 
determine the pharmaceuticals that may be obtained by eligible persons 
under subsection (a) or (b).
    ``(e) Fees.--The Secretary of Defense shall prescribe an 
appropriate fee, charge, or copayment to be paid by persons for 
pharmaceuticals obtained under subsection (a) or (b).
    ``(f) Consultation Requirement.--The Secretary of Defense shall 
consult with the other administering Secretaries in the administration 
of this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``1110. Pharmaceutical benefits.''.
    (b) Repeal of Superseded Authority.--Section 702 of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 
Stat. 2431; 10 U.S.C. 1079 note) is repealed.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on January 1, 2001.

SEC. 732. PROVISION OF DOMICILIARY AND CUSTODIAL CARE FOR CHAMPUS 
              BENEFICIARIES.

    (a) Continuation of Care for Certain CHAMPUS Beneficiaries.--
Section 703(a)(1) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 682; 10 U.S.C. 1077 note) is 
amended by inserting before the period at the end the following: ``or 
by the prohibition in section 1086(d)(1) of such title''.
    (b) Cost Limitation for Individual Case Management Program.--(1) 
Section 1079(a)(17) of title 10, United States Code, is amended--
            (A) by inserting ``(A)'' after ``(17)''; and
            (B) by adding at the end the following:
            ``(B) The total amount expended under subparagraph (A) for 
        a fiscal year may not exceed $100,000,000.''.
    (2) Section 703 of the National Defense Authorization Act for 
Fiscal Year 2000 is amended by adding at the end the following:
    ``(e) Cost Limitation.--The total amount paid for services for 
eligible beneficiaries under subsection (a) for a fiscal year (together 
with the costs of administering the authority under that subsection) 
shall be included in the expenditures limited by section 1079(a)(17)(B) 
of title 10, United States Code.''.
    (c) Applicability of Cost Limitation.--The amendments made by 
subsection (b) shall apply to fiscal years after fiscal year 1999.

SEC. 733. MEDICAL AND DENTAL CARE FOR MEDAL OF HONOR RECIPIENTS AND 
              THEIR DEPENDENTS.

    (a) Medal Recipients.--Section 1074 of title 10, United States 
Code, is amended by adding at the end the following:
    ``(d)(1) A medal of honor recipient is entitled to medical and 
dental care under this chapter to the same extent as a person referred 
to in subsection (b).
    ``(2) In this subsection, the term `medal of honor recipient' means 
a person awarded a medal of honor under section 3741, 6241, or 8741 of 
this title, or section 491 of title 14.''.
    (b) Dependents.--Section 1076 of such title is amended by adding at 
the end the following:
    ``(f)(1) The immediate dependents of a medal of honor recipient are 
entitled to medical and dental care under this chapter to the same 
extent as a person referred to in subsection (b).
    ``(2) In this subsection:
            ``(A) The term `medal of honor recipient' has the meaning 
        given the term in section 1074(d)(2) of this title.
            ``(B) The term `immediate dependent' means a dependent 
        described in subparagraphs (A), (B), (C), and (D) of section 
        1072(2) of this title.''.

SEC. 734. SCHOOL-REQUIRED PHYSICAL EXAMINATIONS FOR CERTAIN MINOR 
              DEPENDENTS.

    Section 1076 of title 10, United States Code, as amended by section 
733(b), is further amended by adding at the end the following:
    ``(g)(1) The administering Secretaries shall furnish an eligible 
dependent a physical examination that is required by a school in 
connection with the enrollment of the dependent as a student in that 
school.
    ``(2) A dependent is eligible for a physical examination under 
paragraph (1) if the dependent--
            ``(A) is entitled to receive medical care under subsection 
        (a) or is authorized to receive medical care under subsection 
        (b); and
            ``(B) is at least 5 years of age and less than 12 years of 
        age.
    ``(3) Nothing in paragraph (2) may be construed to prohibit the 
furnishing of a school-required physical examination to any dependent 
who, except for not satisfying the age requirement under that 
paragraph, would otherwise be eligible for a physical examination 
required to be furnished under this subsection.''.

SEC. 735. TWO-YEAR EXTENSION OF DENTAL AND MEDICAL BENEFITS FOR 
              SURVIVING DEPENDENTS OF CERTAIN DECEASED MEMBERS.

    (a) Dental Benefits.--Section 1076a(k)(2) of title 10, United 
States Code, is amended by striking ``one-year period'' and inserting 
``three-year period''.
    (b) Medical Benefits.--Section 1079(g) of title 10, United States 
Code, is amended by striking ``one-year period'' in the second sentence 
and inserting ``three-year period''.

SEC. 736. EXTENSION OF AUTHORITY FOR CONTRACTS FOR MEDICAL SERVICES AT 
              LOCATIONS OUTSIDE MEDICAL TREATMENT FACILITIES.

    Section 1091(a)(2) of title 10, United States Code, is amended by 
striking ``December 31, 2000'' and inserting ``September 30, 2002''.

SEC. 737. TRANSITION OF CHIROPRACTIC HEALTH CARE DEMONSTRATION PROGRAM 
              TO PERMANENT STATUS.

    (a) TRICARE Prime Benefits.--The Secretary of Defense shall 
complete the development and implementation of a program to provide 
chiropractic health care services and benefits for all TRICARE Prime 
enrollees as a permanent part of the military health care system for 
the enrollees in that plan, as follows:
            (1) At the military medical treatment facilities designated 
        pursuant to section 731(a)(2)(A) of the National Defense 
        Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 
        U.S.C. 1092 note), not later than 180 days after the date of 
        the enactment of this Act.
            (2) At the other military medical treatment facilities 
        considered by the Secretary of Defense to be major military 
        medical treatment facilities, not later than October 1, 2001.
    (b) Primary Care Management.--The Secretary shall ensure that the 
primary care manager model, which requires referral by a primary care 
manager, is used for providing the chiropractic health care services 
and benefits under the program referred to in subsection (a).
    (c) Continuation of Existing Chiropractic Benefits.--Section 
731(a)(4) of the National Defense Authorization Act for Fiscal Year 
1995 is amended--
            (1) by striking ``During fiscal year 2000, the'' and 
        inserting ``The''; and
            (2) by adding at the end the following: ``The requirement 
        under the preceding sentence shall cease to apply with respect 
        to a military medical treatment facility on the date on which 
        the Secretary of Defense completes the implementation of a 
        program to provide chiropractic health care services and 
        benefits at that facility for all TRICARE Prime enrollees as a 
        permanent part of the military health care system for the 
        enrollees in that plan.''.

SEC. 738. USE OF INFORMATION TECHNOLOGY FOR ENHANCEMENT OF DELIVERY OF 
              ADMINISTRATIVE SERVICES UNDER THE DEFENSE HEALTH PROGRAM.

    (a) Requirement.--The Secretary of Defense shall take the actions 
that the Secretary determines necessary to use, in at least one TRICARE 
program region, commercially available information technology systems 
and products to simplify the critical administrative processes of the 
defense health program (including TRICARE), to enhance the efficiency 
of the performance of administrative services under the program, to 
match commercially recognized standards of performance of the services, 
and otherwise to improve the performance of the services.
    (b) Implementation.--In carrying out subsection (a), the Secretary 
shall ensure that--
            (1) the use of Internet technology is incorporated into the 
        processes referred to in that subsection; and
            (2) conversions to new or different computer technologies 
        incorporate data requirements that are widely used in the 
        marketplace (including those used by medicare or commercial 
        insurers) for the performance of administrative services.
    (c) Administrative Services Defined.--In this section, the term 
``administrative services'' includes the performance of the following 
functions:
            (1) Marketing.
            (2) Enrollment.
            (3) Program education of beneficiaries.
            (4) Program education of health care providers.
            (5) Scheduling of appointments.
            (6) Processing of claims.

SEC. 739. PATIENT CARE REPORTING AND MANAGEMENT SYSTEM.

    (a) Establishment.--The Secretary of Defense shall establish a 
patient care error reporting and management system.
    (b) Purposes of System.--The purposes of the system are as follows:
            (1) To study the occurrences of errors in the patient care 
        provided under chapter 55 of title 10, United States Code.
            (2) To identify the systemic factors that are associated 
        with such occurrences.
            (3) To provide for action to be taken to correct the 
        identified systemic factors.
    (c) Requirements for System.--The patient care error reporting and 
management system shall include the following:
            (1) A hospital-level patient safety center, within the 
        quality assurance department of each health care organization 
        of the Department of Defense, to collect, assess, and report on 
        the nature and frequency of errors related to patient care.
            (2) For each health care organization of the Department of 
        Defense and for the entire Defense health program, the patient 
        safety baselines that are necessary for the development of a 
        full understanding of patient safety issues in each such 
        organization and the entire program, including the nature and 
        types of errors and the systemic causes of the errors.
            (3) A Department of Defense Patient Safety Center within 
        the Armed Forces Institute of Pathology to have the following 
        missions:
                    (A) To analyze information on patient care errors 
                that is submitted to the Center by each military health 
                care organization.
                    (B) To develop action plans for addressing patterns 
                of patient care errors.
                    (C) To execute those action plans to mitigate and 
                control errors in patient care with a goal of ensuring 
                that the health care organizations of the Department of 
                Defense provide highly reliable patient care with 
                virtually no error.
                    (D) To provide, through the Assistant Secretary of 
                Defense for Health Affairs, to the Agency for 
                Healthcare Research and Quality of the Department of 
                Health and Human Services any reports that the 
                Assistant Secretary determines appropriate.
                    (E) To review and integrate processes for reducing 
                errors associated with patient care and for enhancing 
                patient safety.
                    (F) To contract with a qualified and objective 
                external organization to manage the national patient 
                safety database of the Department of Defense.
    (d) MedTeams Program.--The Secretary shall expand the health care 
team coordination program to integrate that program into all Department 
of Defense health care operations. In carrying out this subsection, the 
Secretary shall take the following actions:
            (1) Establish not less than two Centers of Excellence for 
        the development, validation, proliferation, and sustainment of 
        the health care team coordination program, one of which shall 
        support all fixed military health care organizations, the other 
        of which shall support all combat casualty care organizations.
            (2) Deploy the program to all fixed and combat casualty 
        care organizations of each of the Armed Forces, at the rate of 
        not less than 10 organizations in each fiscal year.
            (3) Expand the scope of the health care team coordination 
        program from a focus on emergency department care to a coverage 
        that includes care in all major medical specialties, at the 
        rate of not less than one specialty in each fiscal year.
            (4) Continue research and development investments to 
        improve communication, coordination, and team work in the 
        provision of health care.
    (e) Consultation.--The Secretary shall consult with the other 
administering Secretaries (as defined in section 1072(3) of title 10, 
United States Code) in carrying out this section.

SEC. 740. HEALTH CARE MANAGEMENT DEMONSTRATION PROGRAM.

    (a) Establishment.--The Secretary of Defense shall carry out a 
demonstration program on health care management to explore 
opportunities for improving the planning and management of the 
Department of Defense health care system.
    (b) Test Models.--Under the demonstration program, the Secretary 
shall test the use of the following planning and management models:
            (1) A health care simulation model for studying alternative 
        delivery policies, processes, organizations, and technologies.
            (2) A health care simulation model for studying long term 
        disease management.
    (c) Demonstration Sites.--The Secretary shall test each model 
separately at one or more sites.
    (d) Period for Program.--The demonstration program shall begin not 
later than 180 days after the date of the enactment of this Act and 
shall terminate on December 31, 2001.
    (e) Reports.--The Secretary of Defense shall submit a report on the 
demonstration program to the Committees on Armed Services of the Senate 
and the House of Representatives not later than March 15, 2002. The 
report shall include the Secretary's assessment of the value of 
incorporating the use of the tested planning and management models 
throughout the Department of Defense health care system.
    (f) Funding.--Of the amount authorized to be appropriated under 
section 301(22), $6,000,000 shall be available for the demonstration 
program under this section.

SEC. 741. STUDIES OF ACCRUAL FINANCING FOR HEALTH CARE FOR MILITARY 
              RETIREES.

    (a) Studies Required.--The Secretary of Defense shall carry out two 
studies to assess the feasibility and desirability of financing the 
military health care program for retirees of the uniformed services on 
an accrual basis.
    (b) Sources of Studies.--The Secretary shall provide for--
            (1) one of the studies under subsection (a) to be conducted 
        by one or more Department of Defense organizations designated 
        by the Secretary; and
            (2) the other study to be conducted by an organization that 
        is independent of the Department of Defense and has expertise 
        in financial programs and health care.
    (c) Reports.--(1) The Secretary shall provide for the submission of 
a final report on each study to the Secretary within such time as the 
Secretary determines necessary to satisfy the requirement in paragraph 
(2).
    (2) The Secretary shall transmit the final reports on the studies 
to Congress not later than February 8, 2001. The Secretary may include 
in the transmittal any comments on the reports or on the matters 
studied that the Secretary considers appropriate.

SEC. 742. AUGMENTATION OF ARMY MEDICAL DEPARTMENT BY RESERVE OFFICERS 
              OF THE PUBLIC HEALTH SERVICE.

    (a) Authority.--The Secretary of the Army and the Secretary of 
Health and Human Services may jointly conduct a program to augment the 
Army Medical Department by exercising any authorities provided to those 
officials in law for the detailing of reserve commissioned officers of 
the Public Health Service not in an active status to the Army Medical 
Department for that purpose.
    (b) Agreement.--The Secretary of the Army and the Secretary of 
Health and Human Services shall enter into an agreement governing any 
program conducted under subsection (a).
    (c) Assessment.--(1) The Secretary of the Army shall review the 
laws providing the authorities described in subsection (a) and assess 
the adequacy of those laws for authorizing--
            (A) the Secretary of Health and Human Services to detail 
        reserve commissioned officers of the Public Health Service not 
        in an active status to the Army Medical Department to augment 
        that department; and
            (B) the Secretary of the Army to accept the detail of such 
        officers for that purpose.
    (2) The Secretary shall complete the review and assessment under 
paragraph (1) not later than 90 days after the date of the enactment of 
this Act.
    (d) Report to Congress.--Not later than March 1, 2001, the 
Secretary of the Army shall submit a report on the results of the 
review and assessment under subsection (c) to the Committees on Armed 
Services of the Senate and the House of Representatives. The report 
shall include the following:
            (1) The findings resulting from the review and assessment.
            (2) Any proposal for legislation that the Secretary 
        recommends to strengthen the authority of the Secretary of 
        Health and Human Services and the authority of the Secretary of 
        the Army to take the actions described in subparagraphs (A) and 
        (B), respectively, of subsection (c)(1).
    (e) Consultation Requirement.--The Secretary of the Army shall 
consult with the Secretary of Health and Human Services in carrying out 
the review and assessment under subsection (c) and in preparing the 
report (including making recommendations) under subsection (d).

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

SEC. 801. IMPROVEMENTS IN PROCUREMENTS OF SERVICES.

    (a) Preference for Performance-Based Service Contracting.--The 
Secretary of Defense shall ensure that, not later than 180 days after 
the date of the enactment of this Act, the Department of Defense 
Supplement to the Federal Acquisition Regulation is revised to 
establish a preference for use of contracts and task orders for the 
purchase of services in the following order of precedence:
            (1) A performance-based contract or performance-based task 
        order that contains firm fixed prices for the specific tasks to 
        be performed.
            (2) Any other performance-based contract or performance-
        based task order.
            (3) Any contract or task order that is not a performance-
        based contract or a performance-based task order.
    (b) Incentive for Use of Performance-Based Service Contracts.--(1) 
A Department of Defense performance-based contract or performance-based 
task order may be treated as a contract for the procurement of 
commercial items if--
            (A) the contract or task order is valued at $5,000,000 or 
        less;
            (B) the contract or task order sets forth specifically each 
        task to be performed and, for each task--
                    (i) defines the task in measurable, mission-related 
                terms;
                    (ii) identifies the specific end products or output 
                to be achieved; and
                    (iii) contains a firm fixed price; and
            (C) the source of the services provides similar services 
        contemporaneously to the general public under terms and 
        conditions similar to those offered to the Federal Government.
    (2) The special simplified procedures provided in the Federal 
Acquisition Regulation pursuant to section 2304(g)(1)(B) of title 10, 
United States Code, shall not apply to a performance-based contract or 
performance-based task order that is treated as a contract for the 
procurement of commercial items under paragraph (1).
    (3) Not later than 2 years after the date of the enactment of this 
Act, the Comptroller General shall submit a report on the 
implementation of this subsection to the congressional defense 
committees.
    (4) The authority under this subsection shall not apply to 
contracts entered into or task orders issued more than 3 years after 
the date of the enactment of this Act.
    (c) Centers of Excellence in Service Contracting.--Not later than 
180 days after the date of the enactment of this Act, the Secretary of 
each military department shall establish at least one center of 
excellence in contracting for services. Each center of excellence shall 
assist the acquisition community by identifying, and serving as a 
clearinghouse for, best practices in contracting for services in the 
public and private sectors.
    (d) Enhanced Training in Service Contracting.--(1) The Secretary of 
Defense shall ensure that classes focusing specifically on contracting 
for services are offered by the Defense Acquisition University and the 
Defense Systems Management College and are otherwise available to 
contracting personnel throughout the Department of Defense.
    (2) The Secretary of each military department and the head of each 
Defense Agency shall ensure that the personnel of the department or 
agency, as the case may be, who are responsible for the awarding and 
management of contracts for services receive appropriate training that 
is focused specifically on contracting for services.
    (e) Definitions.--In this section:
            (1) The term ``performance-based'', with respect to a 
        contract, a task order, or contracting, means that the 
        contract, task order, or contracting, respectively, includes 
        the use of performance work statements that set forth contract 
        requirements in clear, specific, and objective terms with 
        measurable outcomes.
            (2) The term ``commercial item'' has the meaning given the 
        term in section 4(12) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403(12)).
            (3) The term ``Defense Agency'' has the meaning given the 
        term in section 101(a)(11) of title 10, United States Code.

SEC. 802. ADDITION OF THRESHOLD VALUE REQUIREMENT FOR APPLICABILITY OF 
              A REPORTING REQUIREMENT RELATING TO MULTIYEAR CONTRACT.

    Section 2036b(l)(4) of title 10, United States Code, is amended by 
striking ``until the Secretary of Defense submits to the congressional 
defense committees a report with respect to that contract (or contract 
extension)'' in the matter preceding subparagraph (A) and inserting 
``the value of which would exceed $500,000,000 (when entered into or 
when extended, as the case may be) until the Secretary of Defense has 
submitted to the congressional defense committees a report''.

SEC. 803. PLANNING FOR THE ACQUISITION OF INFORMATION SYSTEMS.

    (a) Responsibility of Chief Information Officers.--Section 2223 of 
title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of paragraph 
                (3);
                    (B) by striking the period at the end of paragraph 
                (4) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) maintain a consolidated inventory of Department of 
        Defense mission critical and mission essential information 
        systems, identify interfaces between these systems and other 
        information systems, and develop and maintain contingency plans 
        for responding to a disruption in the operation of any of these 
        information systems.''; and
            (2) in subsection (b)--
                    (A) by striking ``and'' at the end of paragraph 
                (3);
                    (B) by striking the period at the end of paragraph 
                (4) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) maintain an inventory of the mission critical and 
        mission essential information systems of the military 
        department, identify interfaces between these systems and other 
        information systems, and develop and maintain contingency plans 
        for responding to a disruption in the operation of any of these 
        information systems.''.
    (b) Revised Regulations Required.--Not later than 60 days after the 
date of enactment of this Act, Department of Defense Directive 5000.1 
shall be revised to establish minimum planning requirements for the 
acquisition of information technology systems.
    (c) Mission Critical and Mission Essential Information Technology 
Systems.--The revised directive required by subsection (b) shall--
            (1) include definitions of the terms ``mission critical 
        information system'' and ``mission essential information 
        system''; and
            (2) prohibit the award of any contract for the acquisition 
        of a mission critical or mission essential information 
        technology system until--
                    (A) the system has been registered with the Chief 
                Information Officer of the Department of Defense;
                    (B) the Chief Information Officer has received all 
                information on the system that is required under the 
                directive to be provided to that official; and
                    (C) the Chief Information Officer has determined 
                that an appropriate information assurance strategy is 
                in place for the system.
    (d) Major Automated Information Systems.--The revised directive 
required by subsection (b) shall prohibit Milestone I approval, 
Milestone II approval, or Milestone III approval of a major automated 
information system within the Department of Defense until the Chief 
Information Officer has determined that--
            (1) the system is being developed in accordance with the 
        requirements of division E of the Clinger-Cohen Act of 1996 (40 
        U.S.C. 1401 et seq.);
            (2) appropriate actions have been taken with respect to the 
        system in the areas of business process reengineering, analysis 
        of alternatives, economic analysis, and performance measures; 
        and
            (3) the system has been registered as described in 
        subsection (c)(2).
    (e) Reports.--(1) The Secretary of Defense shall submit to the 
congressional defense committees, not later than February 1 of each of 
fiscal years 2001, 2002, and 2003, a report on the implementation of 
the requirements of this section during the preceding fiscal year.
    (2) The report for a fiscal year under paragraph (1) shall include, 
at a minimum, for each major automated information system that was 
approved during such preceding fiscal year under Department of Defense 
Directive 5000.1 (as revised pursuant to subsection (d)), the 
following:
            (A) The funding baseline.
            (B) The milestone schedule.
            (C) The actions that have been taken to ensure compliance 
        with the requirements of this section and the directive.
    (3) The report for fiscal year 2000 shall include, in addition to 
the information required by paragraph (2), an explanation of the manner 
in which the responsible officials within the Department of Defense 
have addressed, or intend to address, the following acquisition issues 
for each major automated information system to be acquired after that 
fiscal year:
            (A) Requirements definition.
            (B) Presentation of a business case analysis, including an 
        analysis of alternatives and a calculation of return on 
        investment.
            (C) Performance measurement.
            (D) Test and evaluation.
            (E) Interoperability.
            (F) Cost, schedule, and performance baselines.
            (G) Information assurance.
            (H) Incremental fielding and implementation.
            (I) Risk mitigation.
            (J) The role of integrated product teams.
            (K) Issues arising from implementation of the Command, 
        Control, Communications, Computers, Intelligence, Surveillance, 
        and Reconnaissance Plan required by Department of Defense 
        Directive 5000.1 and Chairman of the Joint Chiefs of Staff 
        Instruction 3170.01.
            (L) Oversight, including the Chief Information Officer's 
        oversight of decision reviews.
    (f) Definitions.--In this section:
            (1) The term ``Chief Information Officer'' means the senior 
        official of the Department of Defense designated by the 
        Secretary of Defense pursuant to section 3506 of title 44, 
        United States Code.
            (2) The term ``information technology system'' has the 
        meaning given the term ``information technology'' in section 
        5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
            (3) The term ``major automated information system'' has the 
        meaning given that term in Department of Defense Directive 
        5000.1.

SEC. 804. TRACKING OF INFORMATION TECHNOLOGY PURCHASES.

    (a) Requirement for Tracking System.--(1) Chapter 131 of title 10, 
United States Code, is amended by adding at the end the following:
``Sec. 2225. Information technology purchases: automated tracking and 
              management systems
    ``(a) Requirement for Systems.--(1) The Secretary of each military 
department shall administer an automated system for tracking and 
managing purchases of information technology products and services by 
the department.
    ``(2) The Secretary of Defense shall administer an automated system 
for tracking and managing purchases of information technology products 
and services by the Defense Agencies.
    ``(b) Purchase to Which Applicable.--Each system under subsection 
(a) shall, at a minimum, provide for collection of data on all 
purchases of information technology products and services in excess of 
the simplified acquisition threshold, regardless of whether such 
purchases are made in the form of a contract, grant, cooperative 
agreement, other transaction, task order, delivery order, or military 
interdepartmental purchase request, or in any other form.
    ``(c) Data To Be Included.--The information collected under each 
such system shall include, for each purchase, the following:
            ``(1) The products or services purchased.
            ``(2) The categorization of the products or services as 
        commercial off-the-shelf products, other commercial items, 
        nondevelopmental items other than commercial items, other 
        noncommercial items, or services.
            ``(3) The total dollar amount of the purchase.
            ``(4) The contract form used to make the purchase.
            ``(5) In the case of a purchase made through another 
        agency--
                    ``(A) the agency through which the purchase is 
                made; and
                    ``(B) the reasons for making the purchase through 
                that agency.
            ``(6) The type of pricing used to make the purchase 
        (whether by fixed price or by another specified type of 
        pricing).
            ``(7) The extent of competition provided for in making the 
        purchase.
            ``(8) A statement regarding whether the purchase was made 
        from--
                    ``(A) a small business concern;
                    ``(B) a small business concern owned and controlled 
                by socially and economically disadvantaged individuals; 
                or
                    ``(C) a small business concern owned and controlled 
                by women.
            ``(9) A statement regarding whether the purchase was made 
        in compliance with the planning requirements provided under 
        sections 5112, 5113, 5122, and 5123 of the Clinger-Cohen Act of 
        1996 (40 U.S.C. 1412, 1413, 1242, 1423).
            ``(10) In the case of frequently-purchased commercial off-
        the-shelf items, data that informs managers of the unit prices 
        paid for the items and enables the managers to ensure that such 
        prices are fair and reasonable.
    ``(d) Limitation on Purchases.--No purchase of information 
technology products or services in excess of the simplified acquisition 
threshold shall be made for the Department of Defense through a Federal 
Government agency that is outside the Department of Defense unless--
            ``(1) data on the purchase is included in a tracking system 
        that meets the requirements of subsections (a), (b), and (c); 
        or
            ``(2) the purchase--
                    ``(A) in the case of a purchase by a Defense 
                Agency, is approved by the Under Secretary of Defense 
                for Acquisition, Technology, and Logistics; or
                    ``(B) in the case of a purchase by a military 
                department, is approved by the senior procurement 
                executive of the military department.
    ``(e) Annual Report.--Not later than February 15 of each fiscal 
year, the Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a report on the 
purchases of information technology products and services that were 
made by the military departments and Defense Agencies during the 
preceding fiscal year. The report shall set forth an aggregation of the 
information collected in accordance with subsection (c).
    ``(f) Definitions.--In this section:
            ``(1) The term `senior procurement executive', with respect 
        to a military department, means the official designated as the 
        senior procurement executive for the military department for 
        the purposes of section 16(3) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 414(3)).
            ``(2) The term `simplified acquisition threshold' has the 
        meaning given the term in section 4(11) of the Office of 
        Federal Procurement Policy Act (31 U.S.C. 403(11).
            ``(3) The term `small business concern' means a business 
        concern that meets the applicable size standards prescribed 
        pursuant to section 3(a) of the Small Business Act (15 U.S.C. 
        632(a)).
            ``(4) The term `small business concern owned and controlled 
        by socially and economically disadvantaged individuals' has the 
        meaning given that term in section 8(d)(3)(C) of the Small 
        Business Act (15 U.S.C. 637(d)(3)(C)).
            ``(5) The term `small business concern owned and controlled 
        by women' has the meaning given that term in section 8(d)(3)(D) 
        of the Small Business Act (15 U.S.C. 637(d)(3)(D)).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``2225. Information technology purchases: automated tracking and 
                            management systems.''.
    (b) Time for Implementation.--(1) Each official required under 
section 2225 of title 10, United States Code (as added by subsection 
(a)), to administer an automated system for tracking and managing 
purchases of information technology products and services shall develop 
and commence the use of the system not later than one year after the 
date of the enactment of this Act.
    (2) Subsection (d) of section 2225 of title 10, United States Code 
(as so added), shall apply to purchases described in that subsection 
for which solicitations of offers are issued more than one year after 
the date of the enactment of this Act.
    (c) GAO Report.--Not later than 15 months after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
congressional defense committees a report on the systems developed 
pursuant to section 2225 of title 10, United States Code (as added by 
subsection (a)). The report shall include the Comptroller General's 
assessment of the extent to which the systems meet the requirements of 
that section.

SEC. 805. REPEAL OF REQUIREMENT FOR CONTRACTOR ASSURANCES REGARDING THE 
              COMPLETENESS, ACCURACY, AND CONTRACTUAL SUFFICIENCY OF 
              TECHNICAL DATA PROVIDED BY THE CONTRACTOR.

    Section 2320(b) of title 10, United States Code, is amended--
            (1) by striking paragraph (7); and
            (2) by redesignating paragraphs (8) and (9) as paragraphs 
        (7) and (8), respectively.

SEC. 806. EXTENSION OF AUTHORITY FOR DEPARTMENT OF DEFENSE ACQUISITION 
              PILOT PROGRAMS.

    Section 5064(d)(2) of the Federal Acquisition Streamlining Act of 
1994 (Public Law 103-355; 108 Stat. 3361; 10 U.S.C. 2430 note) is 
amended by striking ``45 days after the date of the enactment of this 
Act and ends on September 30, 1998'' and inserting ``on October 13, 
1994, and ends on October 1, 2007''.

SEC. 807. CLARIFICATION AND EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN 
              PROTOTYPE PROJECTS.

    (a) Amendments to Authority.--Section 845 of the National Defense 
Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended 
by--
            (1) redesignating subsection (d) as subsection (g); and
            (2) inserting after subsection (c) the following:
    ``(d) Appropriate Use of Authority.--(1) The Secretary of Defense 
shall ensure that no official of an agency enters into an agreement for 
a prototype project under the authority of this section unless--
            ``(A) at least 20 percent of the total cost of the 
        prototype project is to be paid out of funds provided by 
        parties to the agreement other than the Federal Government (not 
        including funds provided by such parties in the form of 
        independent research and development costs and other costs that 
        are reimbursed as indirect costs under Federal Government 
        contracts);
            ``(B) at least 40 percent of the total cost of the 
        prototype project is to be paid out of funds provided by 
        parties to the agreement other than the Federal Government 
        (including funds provided by such parties in the form of 
        independent research and development costs and other costs that 
        are reimbursed as indirect costs under Federal Government 
        contracts);
            ``(C) there is at least one nontraditional defense 
        contractor participating to a significant extent in the 
        prototype project; or
            ``(D) the senior procurement executive for the agency (as 
        designated for the purposes of section 16(3) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 414(3))) determines 
        in writing that extraordinary circumstances justify the use of 
        the authority of section 2371 of title 10, United States Code, 
        in accordance with the requirements of this section, to enter 
        into the particular agreement.
    ``(2)(A) Except as provided in subparagraph (B), the amounts 
counted for the purposes of this subsection as being provided or to be 
provided by a party other than the Federal Government under an 
agreement for a prototype project that is entered into under this 
section do not include costs that were incurred before the date on 
which the agreement becomes effective.
    ``(B) Costs that were incurred for a prototype project by a party 
after the beginning of negotiations resulting in an agreement for the 
project under this section may be counted for the purposes of this 
subsection as being provided or to be provided by the party under the 
agreement if and to the extent that the contracting officer or another 
official responsible for entering into the agreement determines in 
writing that--
            ``(i) the party incurred the costs in anticipation of 
        entering into the agreement; and
            ``(ii) it was appropriate for the party to incur the costs 
        before the agreement became effective in order to ensure the 
        successful implementation of the agreement.
    ``(e) Pilot Program for Transition to Follow-on Contracts.--(1) The 
Secretary of Defense is authorized to carry out a pilot program for 
follow-on contracting for the production of items or processes that are 
developed by nontraditional defense contractors under prototype 
projects carried out under this section.
    ``(2) Under the pilot program--
            ``(A) a qualifying contract for the procurement of such an 
        item or process, or a qualifying subcontract under a contract 
        for the procurement of such an item or process, may be treated 
        as a contract or subcontract, respectively, for the procurement 
        of commercial items, as defined in section 4(12) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403(12)); and
            ``(B) the item or process may be treated as an item or 
        process, respectively, that is developed in part with Federal 
        funds and in part at private expense for the purposes of 
        section 2320 of title 10, United States Code.
    ``(3) For the purposes of the pilot program, a qualifying contract 
or subcontract is a contract or subcontract, respectively, with a 
nontraditional defense contractor that--
            ``(A) does not exceed $20,000,000; and
            ``(B) is either--
                    ``(i) a firm, fixed-price contract or subcontract; 
                or
                    ``(ii) a fixed-price contract or subcontract with 
                economic price adjustment.
    ``(4) The authority to conduct a pilot program under this 
subsection shall terminate on September 30, 2004. The termination of 
the authority shall not affect the validity of contracts or 
subcontracts that are awarded or modified during the period of the 
pilot program, without regard to whether the contracts or subcontracts 
are performed during the period.
    ``(f) Nontraditional Defense Contractor Defined.--In this section, 
the term `nontraditional defense contractor' means an entity that has 
not, for a period of at least three years, entered into--
            ``(1) any contract that is subject to the cost accounting 
        standards prescribed pursuant to section 26 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 422); or
            ``(2) any other contract or agreement to carry out 
        prototype projects or to perform basic, applied, or advanced 
        research projects for a Federal Government agency, other than 
        an agreement entered into under the authority of this section 
        or section 2371 of title 10, United States Code.''.
    (b) Extension of Authority.--Subsection (g) of such section, as 
redesignated by subsection (a)(1), is amended by striking ``September 
30, 2001'' and inserting ``September 30, 2004''.
    (c) Moratorium.--Beginning on the date that is 120 days after the 
date of the enactment of this Act, no transaction may be entered into 
under the authority of section 845 of the National Defense 
Authorization Act for Fiscal Year 1994 or section 2371 of title 10, 
United States Code, until the final regulations implementing such 
section 2371 (required by subsection (g) of such section) are published 
in the Federal Register.

SEC. 808. CLARIFICATION OF AUTHORITY OF COMPTROLLER GENERAL TO REVIEW 
              RECORDS OF PARTICIPANTS IN CERTAIN PROTOTYPE PROJECTS.

    (a) Comptroller General Review.--Section 845(c) of the National 
Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is 
amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3)(A) The right provided to the Comptroller General in a clause 
of an agreement under paragraph (1) is limited as provided in 
subparagraph (B) in the case of a party to the agreement, an entity 
that participates in the performance of the agreement, or a subordinate 
element of that party or entity if the only agreements or other 
transactions that the party, entity, or subordinate element entered 
into with Government entities in the year prior to the date of that 
agreement are cooperative agreements or transactions that were entered 
into under this section or section 2371 of title 10, United States 
Code.
    ``(B) The only records of a party, other entity, or subordinate 
element referred to in subparagraph (A) that the Comptroller General 
may examine in the exercise of the right referred to in that 
subparagraph are records of the same type as the records that the 
Government has had the right to examine under the audit access clauses 
of the previous agreements or transactions referred to in such 
subparagraph that were entered into by that particular party, entity, 
or subordinate element.''.

SEC. 809. ELIGIBILITY OF SMALL BUSINESS CONCERNS OWNED AND CONTROLLED 
              BY WOMEN FOR ASSISTANCE UNDER THE MENTOR-PROTEGE PROGRAM.

    Section 831(m)(2) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2302 note) is amended--
            (1) by striking ``or'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(E) a small business concern owned and controlled 
                by women, as defined in section 8(d)(3)(D) of the Small 
                Business Act (15 U.S.C. 637(d)(3)(D)).''.

SEC. 810. NAVY-MARINE CORPS INTRANET ACQUISITION.

    (a) Limitation.--The performance of a contract for the acquisition 
of a Navy-Marine Corps Intranet may not begin until the Secretary of 
the Navy submits a report on that contract to Congress. A report under 
this section shall contain the following information:
            (1) An estimate of the amount to be expended on the 
        contract by each of the Navy and Marine Corps for each fiscal 
        year.
            (2) The accounts from which the performance of the contract 
        will be funded through the end of fiscal year 2001.
            (3) A plan for an incrementally phased implementation of 
        the Navy-Marine Corps Intranet into the operations of the 
        shore-based activities of the Navy and Marine Corps.
            (4) The same information with regard to the Navy-Marine 
        Corps Intranet as is required to be included in the report on 
        major automated information systems under paragraphs (2) and 
        (3) of section 803(e).
            (5) With regard to each major command included in the first 
        year of the implementation of the contract--
                    (A) an estimate of the number of civilian personnel 
                currently performing functions that are potentially 
                included in the scope of the contract;
                    (B) the extent to which the contractor may continue 
                to rely upon that workforce to perform functions after 
                the award of the contract; and
                    (C) the plans of the Department of the Navy for 
                reassignment, reorganization, or other disposition of 
                any portion of the workforce that does not continue to 
                perform current functions.
    (b) Prohibitions.--(1) The increment of the Navy-Marine Corps 
Intranet that is implemented during the first year of implementation 
may not include any activities of the Marine Corps, the naval 
shipyards, or the naval aviation depots.
    (2) Funds available for fiscal year 2001 for activities referred to 
in paragraph (1) may not be expended for any contract for the Navy-
Marine Corps Intranet.
    (c) Applicability of Statutory and Regulatory Requirements.--The 
acquisition of a Navy-Marine Corps Intranet shall be managed by the 
Department of the Navy in accordance with the requirements of--
            (1) the Clinger-Cohen Act of 1996, including the 
        requirement for utilizing modular contracting in accordance 
        with section 38 of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 434); and
            (2) Department of Defense Directives 5000.1 and 5000.2-R 
        and all other directives, regulations, and management controls 
        that are applicable to major investments in information 
        technology and related services.
    (d) Comptroller General Review.--(1) At the same time that the 
Secretary of the Navy submits a report on the Navy-Marine Corps 
Intranet to Congress under subsection (a), the Secretary shall transmit 
a copy of the report to the Comptroller General.
    (2) Not later than 60 days after receiving a report on the Navy-
Marine Corps Intranet under paragraph (1), the Comptroller General 
shall review the report and submit to Congress any comments that the 
Comptroller General considers appropriate regarding the report and the 
Navy-Marine Corps Intranet.

SEC. 811. QUALIFICATIONS REQUIRED FOR EMPLOYMENT AND ASSIGNMENT IN 
              CONTRACTING POSITIONS.

    (a) Applicability of Requirements to Members of the Armed Forces.--
Section 1724 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``a person must'' in the 
        matter preceding paragraph (1) and inserting ``an employee or 
        member of the armed forces must''; and
            (2) in subsection (d)--
                    (A) by striking ``employee of'' and inserting 
                ``person in''; and
                    (B) by striking ``employee possesses'' and 
                inserting ``person possesses''.
    (b) Mandatory Academic Qualifications.--(1) Subsection (a)(3) of 
such section is amended--
            (A) by inserting ``and'' before ``(B)''; and
            (B) by striking ``, or (C)'' and all that follows through 
        ``listed in subparagraph (B)''.
    (2) Subsection (b) of such section is amended to read as follows:
    ``(b) GS-1102 Series Positions and Similar Military Positions.--The 
Secretary of Defense shall require that a person meet the requirements 
set forth in paragraph (3) of subsection (a), but not the other 
requirements set forth in that subsection, in order to qualify to serve 
in a position in the Department of Defense in--
            ``(1) the GS-1102 occupational series; or
            ``(2) a similar occupational specialty when the position is 
        to be filled by a member of the armed forces.''.
    (c) Exception.--Subsection (c) of such section is amended to read 
as follows:
    ``(c) Exception.--The requirements imposed under subsection (a) or 
(b) shall not apply to a person for the purpose of qualifying to serve 
in a position in which the person is serving on September 30, 2000.''.
    (d) Deletion of Unnecessary Cross References.--Subsection (a) of 
such section is amended by striking ``(except as provided in 
subsections (c) and (d))'' in the matter preceding paragraph (1).
    (e) Effective Date.--This section, and the amendments made by this 
section, shall take effect on October 1, 2000, and shall apply to 
appointments and assignments made on or after that date.

SEC. 812. DEFENSE ACQUISITION AND SUPPORT WORKFORCE.

    (a) Requirement for Report.--Not later than March 15, 2001, the 
Secretary of Defense shall submit to Congress a report on the 
sufficiency of the acquisition and support workforce of the Department 
of Defense. The report shall include a plan to ensure that the defense 
acquisition and support workforce is of sufficient size and has the 
expertise necessary to ensure the cost-effective management of the 
defense acquisition system to obtain needed products and services at 
the best value.
    (b) Content of Report.--(1) The Secretary's report on the defense 
acquisition and support workforce under subsection (a) shall include, 
at a minimum, the following:
            (A) A comprehensive reassessment of any programmed 
        reductions in the workforce and the impact that such reductions 
        are likely to have on the ability of the workforce to meet the 
        anticipated workload and responsibilities of the acquisition 
        workforce.
            (B) An assessment of the changing demographics of the 
        workforce, including the impact of anticipated retirements 
        among the most experienced acquisition personnel over the next 
        five years, and management steps that may be needed to address 
        these changes.
            (C) A plan to address problems arising from previous 
        reductions in the workforce, including--
                    (i) increased backlogs in closing out completed 
                contracts;
                    (ii) increased program costs resulting from 
                contracting for technical support rather than using 
                Federal employees to provide the technical support;
                    (iii) insufficient staff to negotiate fair and 
                reasonable pricing, to review and respond to contractor 
                actions, to perform oversight and inspections, and 
                otherwise to manage contract requirements;
                    (iv) failures to comply with competition 
                requirements, to perform independent cost estimates, to 
                complete technical reviews, to meet contractor 
                surveillance requirements, and to perform necessary 
                cost control functions; and
                    (v) lost opportunities to negotiate strategic 
                supplier alliances, to improve parts control and 
                management, to conduct modeling and simulation 
                projects, and to develop other cost savings 
                initiatives.
            (D) The actions that are being taken or could be taken 
        within the Department of Defense to enhance the tenure and 
        reduce the turnover of program executive officers, program 
        managers, and contracting officers.
            (E) An evaluation of the acquisition workforce 
        demonstration project conducted under section 4308 of the 
        National Defense Authorization Act for Fiscal Year 1996 (Public 
        Law 104-106; 10 U.S.C. 1701 note) together with any 
        recommendations for improving personnel management laws, 
        policies, or procedures with respect to the defense acquisition 
        and support workforce.
    (2) The plan contained in the report shall include specific 
milestones for workforce size, composition, and qualifications 
(including plans for needed recruiting, retention, and training) to 
address any problems identified in the report and to ensure the 
achievement of the objectives of the plan that are set forth in 
subsection (a).
    (c) Extension of Demonstration Project.--Section 4308(b)(3)(B) of 
the National Defense Authorization Act for Fiscal Year 1996 (10 U.S.C. 
1701 note) is amended by striking ``3-year period beginning on the date 
of the enactment of the National Defense Authorization Act for Fiscal 
Year 1998'' and inserting ``period beginning on November 18, 1997, and 
ending on November 17, 2003''.
    (d) Moratorium on Reduction of Defense Acquisition Workforce.--(1) 
Notwithstanding any other provision of law, the defense acquisition and 
support workforce may not be reduced, during fiscal years 2001, 2002, 
and 2003, below the level of that workforce as of September 30, 2000, 
determined on the basis of full-time equivalent positions.
    (2) The Secretary of Defense may waive the prohibition in paragraph 
(1) and reduce the level of the defense acquisition and support 
workforce upon submitting to Congress the Secretary's certification 
that the defense acquisition and support workforce, at the level to 
which reduced, will be able efficiently and effectively to perform the 
workloads that are required of that workforce consistent with the cost-
effective management of the defense acquisition system to obtain best 
value equipment and with ensuring military readiness.
    (e) Defense Acquisition and Support Workforce Defined.--In this 
section, the term ``defense acquisition and support workforce'' means 
Armed Forces and civilian personnel who are assigned to, or are 
employed in, an organization of the Department of Defense that is--
            (1) an acquisition organization specified in Department of 
        Defense Instruction 5000.58, dated January 14, 1992; or
            (2) an organization not so specified that has acquisition 
        as its predominant mission, as determined by the Secretary of 
        Defense.

SEC. 813. FINANCIAL ANALYSIS OF USE OF DUAL RATES FOR QUANTIFYING 
              OVERHEAD COSTS AT ARMY INDUSTRIAL FACILITIES.

    (a) Requirement for Analysis.--The Secretary of the Army shall 
carry out a financial analysis of the costs that would be incurred and 
the benefits that would be derived from the implementation of a policy 
to use--
            (1) one set of rates for quantifying the overhead costs 
        associated with government-owned industrial facilities of the 
        Department of the Army when allocating those costs to 
        contractors operating the facilities; and
            (2) another set of rates for quantifying the overhead costs 
        to be allocated to the operation of such facilities by 
        employees of the United States.
    (b) Report.--Not later than February 15, 2001, the Secretary shall 
submit to the congressional defense committees a report on the results 
of the analysis carried out under subsection (a). The report shall 
include the following:
            (1) The costs and benefits identified in the analysis under 
        subsection (a).
            (2) The risks to the United States of implementing a dual 
        rates policy described in subsection (a).
            (3) The effects that a use of dual rates under such a 
        policy would have on the defense industrial base of the United 
        States.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

SEC. 901. REPEAL OF LIMITATION ON MAJOR DEPARTMENT OF DEFENSE 
              HEADQUARTERS ACTIVITIES PERSONNEL.

    (a) Repeal of Limitation.--(1) Section 130a of title 10, United 
States Code, is repealed.
    (2) The table of sections at the beginning of chapter 3 of such 
title is amended by striking the item relating to section 130a.
    (b) Repeal of Associated Reporting Requirement.--Section 921(b) of 
the National Defense Authorization Act for Fiscal Year 2000 (Public Law 
106-65; 113 Stat. 723) is repealed.

SEC. 902. OVERALL SUPERVISION OF DEPARTMENT OF DEFENSE ACTIVITIES FOR 
              COMBATING TERRORISM.

    Section 138(b)(4) of title 10, United States Code, is amended to 
read as follows:
    ``(4)(A) One of the Assistant Secretaries shall be the Assistant 
Secretary of Defense for Special Operations and Low Intensity Conflict.
    ``(B) The Assistant Secretary shall have the following duties:
            ``(i) As the principal duty, to provide overall supervision 
        (including oversight of policy and resources) of special 
        operations activities (as defined in section 167(j) of this 
        title) and low intensity conflict activities of the Department 
        of Defense.
            ``(ii) To provide overall direction and supervision for 
        policy, program planning and execution, and allocation and use 
        of resources for the activities of the Department of Defense 
        for combating terrorism, including antiterrorism activities, 
        counterterrorism activities, terrorism consequences management 
        activities, and terrorism-related intelligence support 
        activities.
    ``(C) The Assistant Secretary is the principal civilian adviser to 
the Secretary of Defense on, and is the principal official within the 
senior management of the Department of Defense (after the Secretary and 
Deputy Secretary) responsible for, the following matters:
            ``(i) Special operations and low intensity conflict.
            ``(ii) Combating terrorism.''.

SEC. 903. NATIONAL DEFENSE PANEL 2001.

    (a) Establishment.--Not later than March 1, 2001, the Secretary of 
Defense shall establish a nonpartisan, independent panel to be known as 
the National Defense Panel 2001. The Panel shall have the duties set 
forth in this section.
    (b) Membership and Chairman.--(1) The Panel shall be composed of 
nine members appointed from among persons in the private sector who are 
recognized experts in matters relating to the national security of the 
United States, as follows:
            (A) Three members appointed by the Secretary of Defense.
            (B) Three members appointed by the Chairman of the 
        Committee on Armed Services of the Senate, in consultation with 
        the ranking member of the committee.
            (C) Three members appointed by the Chairman of the 
        Committee on Armed Services of the House of Representatives, in 
        consultation with the ranking member of the committee.
    (2) The Secretary of Defense, in consultation with the chairmen and 
ranking members of the Committees on Armed Services of the Senate and 
the House of Representatives, shall designate one of the members to 
serve as the chairman of the Panel.
    (c) Duties.--(1) The Panel shall--
            (A) assess the matters referred to in paragraph (2);
            (B) assess the current and projected strategic environment, 
        together with the progress made by the Armed Forces in 
        transforming to meet that environment;
            (C) identify the most dangerous threats to the national 
        security interests of the United States that are to be 
        countered by the United States in the ensuing 10 years and 
        those that are to be encountered in the ensuing 20 years;
            (D) identify the strategic and operational challenges for 
        the Armed Forces to address in order to prepare to counter the 
        threats identified under subparagraph (C);
            (E) develop--
                    (i) a recommendation on the priority that should be 
                accorded to each of the strategic and operational 
                challenges identified under subparagraph (D); and
                    (ii) a recommendation on the priority that should 
                be accorded to the development of each joint capability 
                needed to meet each such challenge; and
            (F) identify the issues that the Panel recommends for 
        assessment during the next quadrennial review to be conducted 
        under section 118 of title 10, United States Code.
    (2) The matters to be assessed under paragraph (1)(A) are the 
defense strategy, force structure, force modernization plans, 
infrastructure, budget plan, and other elements of the defense program 
and policies established since the quadrennial defense review conducted 
in 1996.
    (3) The Panel shall conduct the assessments under paragraph (1) 
with a view toward recommending--
            (A) the most critical changes that should be made to the 
        defense strategy of the United States for the ensuing 10 years 
        and the most critical changes that should be made to the 
        defense strategy of the United States for the ensuing 20 years; 
        and
            (B) any changes considered appropriate by the Panel 
        regarding the major weapon systems programmed for the force, 
        including any alternatives to those weapon systems.
    (d) Report.--(1) The Panel shall submit to the Secretary of Defense 
and to the Committees on Armed Services of the Senate and the House of 
Representatives two reports on the assessment, including a discussion 
of the Panel's activities, the findings and recommendations of the 
Panel, and any recommendations for legislation that the Panel considers 
appropriate, as follows:
            (A) An interim report not later than July 1, 2001.
            (B) A final report not later than December 1, 2001.
    (2) Not later than December 15, 2001, the Secretary shall transmit 
to the committees referred to in paragraph (1) the Secretary's comments 
on the final report submitted to the committees under subparagraph (B) 
of that paragraph.
    (e) Information From Federal Agencies.--The Panel may secure 
directly from the Department of Defense and any of its components and 
from any other department and agency of the United States such 
information as the Panel considers necessary to carry out its duties 
under this section. The head of the department or agency concerned 
shall ensure that information requested by the Panel under this 
subsection is promptly provided.
    (f) Personnel Matters.--(1) Each member of the Panel shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which the member is engaged in the performance of 
the duties of the Panel.
    (2) The members of the Panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Panel.
    (3)(A) The chairman of the Panel may, without regard to the civil 
service laws and regulations, appoint and terminate an executive 
director and a staff if the Panel determines that an executive director 
and staff are necessary in order for the Panel to perform its duties 
effectively. The employment of an executive director shall be subject 
to confirmation by the Panel.
    (B) The chairman may fix the compensation of the executive director 
without regard to the provisions of chapter 51 and subchapter III of 
chapter 53 of title 5, United States Code, relating to classification 
of positions and General Schedule pay rates, except that the rate of 
pay for the executive director may not exceed the rate payable for 
level V of the Executive Schedule under section 5316 of such title.
    (4) Any employee of the United States may be detailed to the Panel 
without reimbursement of the employee's agency, and such detail shall 
be without interruption or loss of civil service status or privilege. 
The Secretary shall ensure that sufficient personnel are detailed to 
the Panel to enable the Panel to carry out its duties effectively.
    (5) To the maximum extent practicable, the members and employees of 
the Panel shall travel on military aircraft, military ships, military 
vehicles, or other military conveyances when travel is necessary in the 
performance of a duty of the Panel, except that no such aircraft, ship, 
vehicle, or other conveyance may be scheduled primarily for the 
transportation of any such member or employee when the cost of 
commercial transportation is less expensive.
    (g) Administrative Provisions.--(1) The Panel may use the United 
States mails and obtain printing and binding services in the same 
manner and under the same conditions as other departments and agencies 
of the Federal Government.
    (2) The Secretary shall furnish the Panel any administrative and 
support services requested by the Panel.
    (3) The Panel may accept, use, and dispose of gifts or donations of 
services or property.
    (h) Payment of Panel Expenses.--The compensation, travel expenses, 
and per diem allowances of members and employees of the Panel shall be 
paid out of funds available to the Department of Defense for the 
payment of compensation, travel allowances, and per diem allowances, 
respectively, of civilian employees of the Department. The other 
expenses of the Panel shall be paid out of funds available to the 
Department for the payment of similar expenses incurred by the 
Department.
    (i) Termination.--The Panel shall terminate at the end of the year 
following the year in which the Panel submits its final report under 
subsection (d)(1)(B). For the period that begins 90 days after the date 
of submittal of the report, the activities and staff of the panel shall 
be reduced to a level that the Secretary of Defense considers 
sufficient to continue the availability of the panel for consultation 
with the Secretary of Defense and with the Committees on Armed Services 
of the Senate and the House of Representatives.

SEC. 904. QUADRENNIAL NATIONAL DEFENSE PANEL.

    (a) National Defense Panel.--(1) Chapter 7 of title 10, United 
States Code, is amended by adding at the end the following:
``Sec. 184. National Defense Panel
    ``(a) Establishment.--Not later than January 1 of each year 
immediately preceding a year in which a President is to be inaugurated, 
the Secretary of Defense shall establish a nonpartisan, independent 
panel to be known as the National Defense Panel. The Panel shall have 
the duties set forth in this section.
    ``(b) Membership and Chairman.--(1) The Panel shall be composed of 
nine members appointed from among persons in the private sector who are 
recognized experts in matters relating to the national security of the 
United States, as follows:
            ``(A) Three members appointed by the Secretary of Defense.
            ``(B) Three members appointed by the Chairman of the 
        Committee on Armed Services of the Senate, in consultation with 
        the ranking member of the committee.
            ``(C) Three members appointed by the Chairman of the 
        Committee on Armed Services of the House of Representatives, in 
        consultation with the ranking member of the committee.
    ``(2) The Secretary of Defense, in consultation with the chairmen 
and ranking members of the Committees on Armed Services of the Senate 
and the House of Representatives, shall designate one of the members to 
serve as the chairman of the Panel
    ``(c) Duties.--(1) The Panel shall--
            ``(A) assess the matters referred to in paragraph (2);
            ``(B) assess the current and projected strategic 
        environment, together with the progress made by the armed 
        forces in transforming to meet the environment;
            ``(C) identify the most dangerous threats to the national 
        security interests of the United States that are to be 
        countered by the United States in the ensuing 10 years and 
        those that are to be encountered in the ensuing 20 years;
            ``(D) identify the strategic and operational challenges for 
        the armed forces to address in order to prepare to counter the 
        threats identified under subparagraph (C);
            ``(E) develop--
                    ``(i) a recommendation on the priority that should 
                be accorded to each of the strategic and operational 
                challenges identified under subparagraph (D); and
                    ``(ii) a recommendation on the priority that should 
                be accorded to the development of each joint capability 
                needed to meet each such challenge; and
            ``(F) identify the issues that the Panel recommends for 
        assessment during the next quadrennial review to be conducted 
        under section 118 of this title.
    ``(2) The matters to be assessed under paragraph (1)(A) are the 
defense strategy, force structure, force modernization plans, 
infrastructure, budget plan, and other elements of the defense program 
and policies established since the previous quadrennial defense review 
under section 118 of this title.
    ``(3) The Panel shall conduct the assessments under paragraph (1) 
with a view toward recommending--
            ``(A) the most critical changes that should be made to the 
        defense strategy of the United States for the ensuing 10 years 
        and the most critical changes that should be made to the 
        defense strategy of the United States for the ensuing 20 years; 
        and
            ``(B) any changes considered appropriate by the Panel 
        regarding the major weapon systems programmed for the force, 
        including any alternatives to those weapon systems.
    ``(d) Report.--(1) The Panel, in the year that it is conducting an 
assessment under subsection (c), shall submit to the Secretary of 
Defense and to the Committees on Armed Services of the Senate and the 
House of Representatives two reports on the assessment, including a 
discussion of the Panel's activities, the findings and recommendations 
of the Panel, and any recommendations for legislation that the Panel 
considers appropriate, as follows:
            ``(A) An interim report not later than July 1 of the year.
            ``(B) A final report not later than December 1 of the year.
    ``(2) Not later than December 15 of the year in which the Secretary 
receives a final report under paragraph (1)(B), the Secretary shall 
submit to the committees referred to in paragraph (1) the Secretary's 
comments on that report.
    ``(e) Information From Federal Agencies.--The Panel may secure 
directly from the Department of Defense and any of its components and 
from any other department or agency of the United States any 
information that the Panel considers necessary to carry out its duties 
under this section. The head of that department or agency shall ensure 
that information requested by the Panel under this subsection is 
promptly provided.
    ``(f) Personnel Matters.--(1) Each member of the Panel shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5 for each day (including travel time) during 
which the member is engaged in the performance of the duties of the 
Panel.
    ``(2) The members of the Panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5 while 
away from their homes or regular places of business in the performance 
of services for the Panel.
    ``(3)(A) The chairman of the Panel may, without regard to the civil 
service laws and regulations, appoint and terminate an executive 
director and a staff if the Panel determines that an executive director 
and staff are necessary in order for the Panel to perform its duties 
effectively. The employment of an executive director shall be subject 
to confirmation by the Panel.
    ``(B) The chairman may fix the compensation of the executive 
director without regard to the provisions of chapter 51 and subchapter 
III of chapter 53 of title 5 relating to classification of positions 
and General Schedule pay rates, except that the rate of pay for the 
executive director may not exceed the rate payable for level V of the 
Executive Schedule under section 5316 of such title.
    ``(4) Any Federal Government employee may be detailed to the Panel 
without reimbursement of the employee's agency, and such detail shall 
be without interruption or loss of civil service status or privilege. 
The Secretary shall ensure that sufficient personnel are detailed to 
the Panel to enable the Panel to carry out its duties effectively.
    ``(5) To the maximum extent practicable, the members and employees 
of the Panel shall travel on military aircraft, military ships, 
military vehicles, or other military conveyances when travel is 
necessary in the performance of a duty of the Panel, except that no 
such aircraft, ship, vehicle, or other conveyance may be scheduled 
primarily for the transportation of any such member or employee when 
the cost of commercial transportation is less expensive.
    ``(g) Administrative Provisions.--(1) The Panel may use the United 
States mails and obtain printing and binding services in the same 
manner and under the same conditions as other departments and agencies 
of the Federal Government.
    ``(2) The Secretary shall furnish the Panel any administrative and 
support services requested by the Panel.
    ``(3) The Panel may accept, use, and dispose of gifts or donations 
of services or property.
    ``(h) Payment of Panel Expenses.--The compensation, travel 
expenses, and per diem allowances of members and employees of the Panel 
shall be paid out of funds available to the Department of Defense for 
the payment of compensation, travel allowances, and per diem 
allowances, respectively, of civilian employees of the Department. The 
other expenses of the Panel shall be paid out of funds available to the 
Department for the payment of similar expenses incurred by the 
Department.
    ``(i) Termination.--The Panel shall terminate at the end of the 
year following the year in which the Panel submits its final report 
under subsection (d)(1)(B). For the period that begins 90 days after 
the date of submittal of the report, the activities and staff of the 
panel shall be reduced to a level that the Secretary of Defense 
considers sufficient to continue the availability of the Panel for 
consultation with the Secretary of Defense and with the Committees on 
Armed Services of the Senate and the House of Representatives.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``184. National Defense Panel.''.
    (b) First Panel To Be Established in 2004.--The first National 
Defense Panel under section 184 of title 10, United States Code (as 
added by subsection (a)), shall be established in 2004.

SEC. 905. INSPECTOR GENERAL INVESTIGATIONS OF PROHIBITED PERSONNEL 
              ACTIONS.

    (a) Standards and Procedures for Preliminary Determinations.--
Subsection (c)(3)(A) of section 1034 of title 10, United States Code, 
is amended by inserting ``, in accordance with regulations prescribed 
under subsection (h),'' after ``shall expeditiously determine''.
    (b) Definition of Inspector General.--Subsection (i)(2) of such 
section is amended by adding at the end the following:
                    ``(H) An officer of the armed forces or employee of 
                the Department of Defense, not referred to in any other 
                subparagraph of this paragraph, who is assigned or 
                detailed to serve as an Inspector General at any level 
                in the Department of Defense.''.

SEC. 906. NETWORK CENTRIC WARFARE.

    (a) Goal.--It shall be a goal of the Department of Defense to fully 
coordinate the network centric warfare efforts being pursued by the 
Joint Chiefs of Staff, the Defense Agencies, and the military 
departments so that (1) the concepts, procedures, training, and 
technology development resulting from those efforts lead to an 
integrated information network, and (2) a coherent concept for enabling 
information dominance in joint military operations can be formulated.
    (b) Report on Implementation of Network Centric Warfare 
Principles.--(1) The Secretary of Defense, in consultation with the 
Chairman of the Joint Chiefs of Staff, shall submit to the 
congressional defense committees a report on the development and 
implementation of network centric warfare concepts in the Department of 
Defense.
    (2) The report shall contain the following:
            (A) A clear definition and terminology to describe the set 
        of operational concepts referred to as network centric warfare.
            (B) An identification and description of current, planned, 
        and needed activities by the Office of the Secretary of 
        Defense, the Joint Chiefs of Staff, and the United States Joint 
        Forces Command to coordinate the development of doctrine and 
        the definition of requirements and to ensure that those 
        activities are consistent with the concepts of network centric 
        warfare and information superiority that are articulated in 
        Joint Vision 2010 issued by the Joint Chiefs of Staff.
            (C) Recommended metrics, and a process for applying and 
        reporting such metrics, to assist the Secretary of Defense and 
        the Chairman of the Joint Chiefs of Staff in the evaluation of 
        the progress being made toward--
                    (i) the implementation of the concepts of network 
                centric warfare and information superiority that are 
                articulated in Joint Vision 2010; and
                    (ii) the attainment of a fully integrated, joint 
                command, control, communications, computers, 
                intelligence, surveillance, and reconnaissance 
                capability.
            (D) A recommended joint concept development and 
        experimentation campaign for enabling the co-evolution of 
        doctrine, organization, training, materiel, leadership, people, 
        and facilities that are pertinent to achieving advances in 
        command and control consistent with the concepts of network 
        centric warfare and information superiority articulated in 
        those vision statements.
            (E) A description of the programs and initiatives underway, 
        together with a discussion of the progress made (as determined 
        using metrics recommended under subparagraph (C)) toward--
                    (i) establishing a foundation for networking the 
                sensors, combat personnel and weapon systems, and 
                decisionmaking nodes to ensure that there is seamless 
                communication within each of the Armed Forces and 
                across the Armed Forces;
                    (ii) achieving, within and between the Armed 
                Forces, full situational awareness of the dispositions 
                of friendly forces so that joint task forces can 
                operate effectively on fast-changing battlefields with 
                substantially reduced risk of fratricide and less 
                restrictive control measures; and
                    (iii) ensuring a seamless delivery of fire on 
                targets by the Armed Forces and allied forces, with 
                particular attention being given in that discussion to 
                how networking of surface and aerial fire delivery and 
                aerial transport assets can be exploited to manage 
                theater airspace so as to minimize the coordination 
                steps necessary for obtaining fire clearance or aerial 
                transit clearance.
            (F) An identification of the additional powers that must be 
        provided the officials making joint policy for the Armed Forces 
        in order to ensure that those officials have sufficient 
        authority quickly to develop and implement means for supporting 
        network centric warfare, including such means as interoperable 
        intranets of the Armed Forces and joint and allied 
        interoperability standards for the joint operating environment.
            (G) The areas of joint authority that require greater 
        emphasis or resource allocation.
            (H) The specific organizational entities that can provide 
        coordination for the development of network centric warfare 
        systems and doctrine.
            (I) The joint requirements under development that will lead 
        to the acquisition of technologies for enabling the 
        implementation and support of network centric warfare, together 
        with--
                    (i) a description of how the joint requirements are 
                modifying existing requirements and vision statements 
                of each of the Armed Forces to better reflect the joint 
                nature of network centric warfare;
                    (ii) a description of how the vision statements are 
                being expanded to reflect the role of network centric 
                warfare concepts in future coalition operations and 
                operations other than war; and
                    (iii) an evaluation of whether there is a need to 
                modify the milestone decision processes for all 
                acquisition programs that directly affect joint task 
                force interoperability and interoperability between the 
                Armed Forces.
            (J) A discussion of how the efforts within the Department 
        of Defense to implement information superiority concepts 
        described in Joint Vision 2010 are informed by private sector 
        investments, and successes and failures, in implementing 
        networking technologies that enhance distribution, inventory 
        control, maintenance management, personnel management, 
        knowledge management, technology development, and other 
        relevant business areas.
            (K) A discussion of how Department of Defense activities to 
        establish a joint network centric capability--
                    (i) are coordinated with the Intelligence 
                Community, the Department of Commerce, the Department 
                of Justice, the Federal Emergency Management Agency, 
                and other departments and agencies of the United 
                States; and
                    (ii) are carried out in accordance with 
                Presidential Decision Directive 63 and the National 
                Plan for Information Systems Protection.
    (c) Study on Use of Joint Experimentation for Developing Network 
Centric Warfare Concepts.--(1) The Secretary of Defense shall conduct a 
study on the present and future use of the joint experimentation 
program of the Department of Defense in the development of network 
centric warfare concepts.
    (2) The Secretary shall submit to the congressional defense 
committees a report on the results of the study. The report shall 
include the following:
            (A) A survey and description of how experimentation under 
        the joint experimentation program and experimentation under the 
        experimentation program of each of the Armed Forces are being 
        used for evaluating emerging concepts in network centric 
        warfare.
            (B) Recommended means and mechanisms for using the results 
        of the joint experimentation for developing new joint 
        requirements, new joint doctrine, and new acquisition programs 
        of the military departments and Defense Agencies with a view to 
        achieving the objective of supporting network centric 
        operations.
            (C) Recommendations on future joint experimentation to 
        validate and accelerate the use of network centric warfare 
        concepts in operations involving coalition forces.
            (D) Recommendations on how joint experimentation can be 
        used to identify impediments to--
                    (i) the development of a joint information network; 
                and
                    (ii) the seamless coordination of the intranet 
                systems of each of the Armed Forces in operational 
                environments.
            (E) Recommendations on how joint experimentation can be 
        used to develop concepts in revolutionary force redesign to 
        leverage new operational concepts in network centric warfare.
            (F) The levels of appropriations necessary for joint 
        experimentation on network-related concepts.
    (3) The Secretary of Defense, acting through the Chairman of the 
Joint Chiefs of Staff, shall designate the Commander in Chief of the 
United States Joint Forces Command to carry out the study and to 
prepare the report required under this subsection.
    (d) Report on Science and Technology Programs To Support Network 
Centric Warfare Concepts.--(1) The Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall submit to the 
congressional defense committees a report describing the coordination 
of the science and technology investments of the military departments 
and Defense Agencies in the development of future joint network centric 
warfare capabilities. The Under Secretary shall consult with the 
Chairman of the Joint Chiefs of Staff in the preparation of the report.
    (2) The report shall include the following:
            (A) A discussion of the science and technology investments 
        in the following areas:
                    (i) Sensors, including ground-based, air-based, 
                sea-based, and space-based inhabited and uninhabited 
                systems.
                    (ii) Seamless communications and networking 
                protocols and technologies.
                    (iii) Modeling and simulation of technologies and 
                operational concepts.
                    (iv) Secure and reliable information networks and 
                databases.
                    (v) Computing and software technology.
                    (vi) Robust human-machine interfaces.
                    (vii) Novel training concepts for supporting 
                network centric operations.
            (B) For the areas listed in subparagraph (A)--
                    (i) a rationalization of the rapid pace of 
                technological change and the influence of global 
                developments in commercial technology; and
                    (ii) an explanation of how that rationalization is 
                informing and modifying science and technology 
                investments made by the Department of Defense.
    (e) Time for Submission of Reports.--Each report required under 
this section shall be submitted not later than March 1, 2001.

SEC. 907. ADDITIONAL DUTIES FOR THE COMMISSION TO ASSESS UNITED STATES 
              NATIONAL SECURITY SPACE MANAGEMENT AND ORGANIZATION.

    Section 1622(a) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 814; 10 U.S.C. 111 note) 
is amended by adding at the end the following:
            ``(6) The advisability of--
                    ``(A) various actions to eliminate the requirement 
                for specified officers in the United States Space 
                Command to be flight rated that results from the dual 
                assignment of such officers to that command and to one 
                or more other commands for which the officers are 
                expressly required to be flight rated;
                    ``(B) the establishment of a requirement that all 
                new general or flag officers of the United States Space 
                Command have experience in space, missile, or 
                information operations that is either acquisition 
                experience or operational experience; and
                    ``(C) rotating the command of the United States 
                Space Command among the Armed Forces.''.

SEC. 908. SPECIAL AUTHORITY FOR ADMINISTRATION OF NAVY FISHER HOUSES.

    (a) Base Operating Support.--Section 2493 of title 10, United 
States Code, is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Special Authority for Navy.--The Secretary of the Navy shall 
provide base operating support for Fisher Houses associated with health 
care facilities of the Navy. The level of the support shall be 
equivalent to the base operating support that the Secretary provides 
for morale, welfare, and recreation category B community activities (as 
defined in regulations, prescribed by the Secretary, that govern 
morale, welfare, and recreation activities associated with Navy 
installations).''.
    (b) Savings Provisions for Certain Navy Employees.--(1) The 
Secretary of the Navy may continue to employ, and pay out of 
appropriated funds, any employee of the Navy in the competitive service 
who, as of October 17, 1998, was employed by the Navy in a position at 
a Fisher House administered by the Navy, but only for so long as the 
employee is continuously employed in that position.
    (2) After a person vacates a position in which the person was 
continued to be employed under the authority of paragraph (1), a person 
employed in that position shall be employed as an employee of a 
nonappropriated fund instrumentality of the United States and may not 
be paid for services in that position out of appropriated funds.
    (3) In this subsection:
            (A) The term ``Fisher House'' has the meaning given the 
        term in section 2493(a)(1) of title 10, United States Code.
            (B) The term ``competitive service'' has the meaning given 
        the term in section 2102 of title 5, United States Code.
    (c) Effective Date.--(1) The amendments made by subsection (a) 
shall be effective as of October 17, 1998, as if included in section 
2493 of title 10, United States Code, as enacted by section 906(a) of 
Public Law 105-261.
    (2) Subsection (b) applies with respect to the pay period that 
includes October 17, 1998, and subsequent pay periods.

SEC. 909. ORGANIZATION AND MANAGEMENT OF THE CIVIL AIR PATROL.

    (a) In General.--Chapter 909 of title 10, United States Code, is 
amended to read as follow:

                    ``CHAPTER 909--CIVIL AIR PATROL

``Sec.
``9441.    Status as federally chartered corporation; purposes.
``9442.    Status as volunteer civilian auxiliary of the Air Force.
``9443.    Activities not performed as auxiliary of the Air Force.
``9444.    Activities performed as auxiliary of the Air Force.
``9445.    Funds appropriated for the Civil Air Patrol.
``9446.    Miscellaneous personnel authorities.
``9447.    Board of Governors.
``9448.    Regulations.
``Sec. 9441. Status as federally chartered corporation; purposes
    ``(a) Status.--(1) The Civil Air Patrol is a nonprofit corporation 
that is federally chartered under section 40301 of title 36.
    ``(2) Except as provided in section 9442(b)(2) of this title, the 
Civil Air Patrol is not an instrumentality of the Federal Government 
for any purpose.
    ``(b) Purposes.--The purposes of the Civil Air Patrol are set forth 
in section 40302 of title 36.
``Sec. 9442. Status as volunteer civilian auxiliary of the Air Force
    ``(a) Volunteer Civilian Auxiliary.--The Civil Air Patrol is a 
volunteer civilian auxiliary of the Air Force when the services of the 
Civil Air Patrol are used by any department or agency in any branch of 
the Federal Government.
    ``(b) Use by Air Force.--(1) The Secretary of the Air Force may use 
the services of the Civil Air Patrol to fulfill the noncombat programs 
and missions of the Department of the Air Force.
    ``(2) The Civil Air Patrol shall be deemed to be an instrumentality 
of the United States with respect to any act or omission of the Civil 
Air Patrol, including any member of the Civil Air Patrol, in carrying 
out a mission assigned by the Secretary of the Air Force.
``Sec. 9443. Activities not performed as auxiliary of the Air Force
    ``(a) Support for State and Local Authorities.--The Civil Air 
Patrol may, in its status as a federally chartered nonprofit 
corporation and not as an auxiliary of the Air Force, provide 
assistance requested by State or local governmental authorities to 
perform disaster relief missions and activities, other emergency 
missions and activities, and nonemergency missions and activities. 
Missions and activities carried out under this section shall be 
consistent with the purposes of the Civil Air Patrol.
    ``(b) Use of Federally Provided Resources.--(1) To perform any 
mission or activity authorized under subsection (a), the Civil Air 
Patrol may use any equipment, supplies, and other resources provided to 
it by the Air Force or by any other department or agency of the Federal 
Government or acquired by or for the Civil Air Patrol with appropriated 
funds, without regard to whether the Civil Air Patrol has reimbursed 
the Federal Government source for the equipment, supplies, other 
resources, or funds, as the case may be.
    ``(2) The use of equipment, supplies, or other resources under 
paragraph (1) is subject to--
            ``(A) the terms and conditions of the applicable agreement 
        entered into under chapter 63 of title 31; and
            ``(B) the laws and regulations that govern the use by 
        nonprofit corporations of federally provided assets or of 
        assets purchased with appropriated funds, as the case may be.
    ``(c) Authority Not Contingent on Reimbursement.--The authority for 
the Civil Air Patrol to provide assistance under this section is not 
contingent on the Civil Air Patrol being reimbursed for the cost of 
providing the assistance. If the Civil Air Patrol requires 
reimbursement for the provision of any such assistance, the Civil Air 
Patrol may establish the reimbursement rate for the assistance at a 
rate less than the rate charged by private sector sources for 
equivalent services.
    ``(d) Liability Insurance.--The Secretary of the Air Force may 
provide the Civil Air Patrol with funds for paying the cost of 
liability insurance for missions and activities carried out under this 
section.
``Sec. 9444. Activities performed as auxiliary of the Air Force
    ``(a) Air Force Support for Activities.--The Secretary of the Air 
Force may furnish to the Civil Air Patrol in accordance with this 
section any equipment, supplies, and other resources that the Secretary 
determines necessary to enable the Civil Air Patrol to fulfill the 
missions assigned by the Secretary to the Civil Air Patrol as an 
auxiliary of the Air Force.
    ``(b) Forms of Air Force Support.--The Secretary of the Air Force 
may, under subsection (a)--
            ``(1) give, lend, or sell to the Civil Air Patrol without 
        regard to the Federal Property and Administrative Services Act 
        of 1949 (40 U.S.C. 471 et seq.)--
                    ``(A) major items of equipment (including aircraft, 
                motor vehicles, computers, and communications 
                equipment) that are excess to the military departments; 
                and
                    ``(B) necessary related supplies and training aids 
                that are excess to the military departments;
            ``(2) permit the use, with or without charge, of services 
        and facilities of the Air Force;
            ``(3) furnish supplies (including fuel, lubricants, and 
        other items required for vehicle and aircraft operations) or 
        provide funds for the acquisition of supplies;
            ``(4) establish, maintain, and supply liaison officers of 
        the Air Force at the national, regional, State, and territorial 
        headquarters of the Civil Air Patrol;
            ``(5) detail or assign any member of the Air Force or any 
        officer, employee, or contractor of the Department of the Air 
        Force to any liaison office at the national, regional, State, 
        or territorial headquarters of the Civil Air Patrol;
            ``(6) detail any member of the Air Force or any officer, 
        employee, or contractor of the Department of the Air Force to 
        any unit or installation of the Civil Air Patrol to assist in 
        the training programs of the Civil Air Patrol;
            ``(7) authorize the payment of travel expenses and 
        allowances, at rates not to exceed those paid to employees of 
        the Federal Government under subchapter I of chapter 57 of 
        title 5, to members of the Civil Air Patrol while the members 
        are carrying out programs or missions specifically assigned by 
        the Air Force;
            ``(8) provide funds for the national headquarters of the 
        Civil Air Patrol, including--
                    ``(A) funds for the payment of staff compensation 
                and benefits, administrative expenses, travel, per diem 
                and allowances, rent, utilities, other operational 
                expenses of the national headquarters; and
                    ``(B) to the extent considered necessary by the 
                Secretary of the Air Force to fulfill Air Force 
                requirements, funds for the payment of compensation and 
                benefits for key staff at regional, State, or 
                territorial headquarters;
            ``(9) authorize the payment of expenses of placing into 
        serviceable condition, improving, and maintaining equipment 
        (including aircraft, motor vehicles, computers, and 
        communications equipment) owned or leased by the Civil Air 
        Patrol;
            ``(10) provide funds for the lease or purchase of items of 
        equipment that the Secretary determines necessary for the Civil 
        Air Patrol;
            ``(11) support the Civil Air Patrol cadet program by 
        furnishing--
                    ``(A) articles of the Air Force uniform to cadets 
                without cost; and
                    ``(B) any other support that the Secretary of the 
                Air Force determines is consistent with Air Force 
                missions and objectives; and
            ``(12) provide support, including appropriated funds, for 
        the Civil Air Patrol aerospace education program to the extent 
        that the Secretary of the Air Force determines appropriate for 
        furthering the fulfillment of Air Force missions and 
        objectives.
    ``(c) Assistance by Other Agencies.--(1) The Secretary of the Air 
Force may arrange for the use by the Civil Air Patrol of such 
facilities and services under the jurisdiction of the Secretary of the 
Army, the Secretary of the Navy, or the head of any other department or 
agency of the United States as the Secretary of the Air Force considers 
to be needed by the Civil Air Patrol to carry out its mission.
    ``(2) An arrangement for use of facilities or services of a 
military department or other department or agency under this subsection 
shall be subject to the agreement of the Secretary of the military 
department or head of the other department or agency, as the case may 
be.
    ``(3) Each arrangement under this subsection shall be made in 
accordance with regulations prescribed under section 9448 of this 
title.
``Sec. 9445. Funds appropriated for the Civil Air Patrol
    ``Funds appropriated for the Civil Air Patrol shall be available 
only for the exclusive use of the Civil Air Patrol.
``Sec. 9446. Miscellaneous personnel authorities
    ``(a) Use of Retired Air Force Personnel.--(1) Upon the request of 
a person retired from service in the Air Force, the Secretary of the 
Air Force may enter into a personal services contract with that person 
providing for the person to serve as an administrator or liaison 
officer for the Civil Air Patrol. The qualifications of a person to 
provide the services shall be determined and approved in accordance 
with regulations prescribed under section 9448 of this title.
    ``(2) To the extent provided in a contract under paragraph (1), a 
person providing services under the contract may accept services on 
behalf of the Air Force.
    ``(3) A person, while providing services under a contract 
authorized under paragraph (1), may not be considered to be on active 
duty or inactive-duty training for any purpose.
    ``(b) Use of Civil Air Patrol Chaplains.--The Secretary of the Air 
Force may use the services of Civil Air Patrol chaplains in support of 
the Air Force active duty and reserve component forces to the extent 
and under conditions that the Secretary determines appropriate.
``Sec. 9447. Board of Governors
    ``(a) Governing Body.--The Board of Governors of the Civil Air 
Patrol is the governing body of the Civil Air Patrol.
    ``(b) Composition.--The Board of Governors is composed of 13 
members as follows:
            ``(1) Four members appointed by the Secretary of the Air 
        Force, who may be active or retired officers of the Air Force 
        (including reserve components of the Air Force), employees of 
        the Federal Government, or private citizens.
            ``(2) Four members of the Civil Air Patrol, elected from 
        among the members of the Civil Air Patrol in the manner 
        provided in regulations prescribed under section 9448 of this 
        title.
            ``(3) Three members appointed or selected as provided in 
        subsection (c) from among personnel of any Federal Government 
        agencies, public corporations, nonprofit associations, and 
        other organizations that have an interest and expertise in 
        civil aviation and the Civil Air Patrol mission.
            ``(4) One member appointed by the Majority Leader of the 
        Senate.
            ``(5) One member appointed by the Speaker of the House of 
        Representatives.
    ``(c) Appointments From Interested Organizations.--(1) Subject to 
paragraph (2), the members of the Board of Governors referred to in 
subsection (b)(3) shall be appointed jointly by the Secretary of the 
Air Force and the National Commander of the Civil Air Patrol.
    ``(2) Any vacancy in the position of a member referred to in 
paragraph (1) that is not filled under that paragraph within 90 days 
shall be filled by majority vote of the other members of the Board.
    ``(d) Chairperson.--(1) The Chairperson of the Board of Governors 
shall be chosen by the members of the Board of Governors from among the 
members of the Board eligible for selection under paragraph (2) and 
shall serve for a term of two years.
    ``(2) The position of Chairperson shall be held on a rotating 
basis, first by a member of the Board selected from among those 
appointed by the Secretary of the Air Force under paragraph (1) of 
subsection (b) and then by a member of the Board selected from among 
the members elected by the Civil Air Patrol under paragraph (2) of that 
subsection. Upon the expiration of the term of a Chairperson selected 
from among the members referred to in one of those paragraphs, the 
selection of a successor to that position shall be made from among the 
members who are referred to in the other paragraph.
    ``(e) Powers.--(1) The Board of Governors shall, subject to 
paragraphs (2) and (3), exercise the powers granted under section 40304 
of title 36.
    ``(2) Any exercise by the Board of the power to amend the 
constitution or bylaws of the Civil Air Patrol or to adopt a new 
constitution or bylaws shall be subject to the approval of the 
corporate officers of the Civil Air Patrol, as those officers are 
defined in the constitution and bylaws of the Civil Air Patrol.
    ``(3) Neither the Board of Governors nor any other component of the 
Civil Air Patrol may modify or terminate any requirement or authority 
set forth in this section.
    ``(f) Personal Liability for Breach of a Fiduciary Duty.--(1) The 
Board of Governors may, subject to paragraph (2), take such action as 
is necessary to limit the personal liability of a member of the Board 
of Governors to the Civil Air Patrol or to any of its members for 
monetary damages for a breach of fiduciary duty while serving as a 
member of the Board.
    ``(2) The Board may not limit the liability of a member of the 
Board of Governors to the Civil Air Patrol or to any of its members for 
monetary damages for any of the following:
            ``(A) A breach of the member's duty of loyalty to the Civil 
        Air Patrol or its members.
            ``(B) Any act or omission that is not in good faith or that 
        involves intentional misconduct or a knowing violation of law.
            ``(C) Participation in any transaction from which the 
        member directly or indirectly derives an improper personal 
        benefit.
    ``(3) Nothing in this subsection shall be construed as rendering 
section 207 or 208 of title 18 inapplicable in any respect to a member 
of the Board of Governors who is a member of the Air Force on active 
duty, an officer on a retired list of the Air Force, or an employee of 
the Federal Government.
    ``(g) Personal Liability for Breach of a Fiduciary Duty.--(1) 
Except as provided in paragraph (2), no member of the Board of 
Governors or officer of the Civil Air Patrol shall be personally liable 
for damages for any injury or death or loss or damage of property 
resulting from a tortious act or omission of an employee or member of 
the Civil Air Patrol.
    ``(2) Paragraph (1) does not apply to a member of the Board of 
Governors or officer of the Civil Air Patrol for a tortious act or 
omission in which the member or officer, as the case may be, was 
personally involved, whether in breach of a civil duty or in commission 
of a criminal offense.
    ``(3) Nothing in this subsection shall be construed to restrict the 
applicability of common law protections and rights that a member of the 
Board of Governors or officer of the Civil Air Patrol may have.
    ``(4) The protections provided under this subsection are in 
addition to the protections provided under subsection (f).
``Sec. 9448. Regulations
    ``(a) Authority.--The Secretary of the Air Force shall prescribe 
regulations for the administration of this chapter.
    ``(b) Required Regulations.--The regulations shall include the 
following:
            ``(1) Regulations governing the conduct of the activities 
        of the Civil Air Patrol when it is performing its duties as a 
        volunteer civilian auxiliary of the Air Force under section 
        9442 of this title.
            ``(2) Regulations for providing support by the Air Force 
        and for arranging assistance by other agencies under section 
        9444 of this title.
            ``(3) Regulations governing the qualifications of retired 
        Air Force personnel to serve as an administrator or liaison 
        officer for the Civil Air Patrol under a personal services 
        contract entered into under section 9446(a) of this title.
            ``(4) Procedures and requirements for the election of 
        members of the Board of Governors under section 9447(b)(2) of 
        this title.
    ``(c) Approval by Secretary of Defense.--The regulations required 
by subsection (b)(2) shall be subject to the approval of the Secretary 
of Defense.''.
    (b) Conforming Amendments.--(1) Section 40302 of title 36, United 
States Code, is amended--
            (A) by striking ``to--'' in the matter preceding paragraph 
        (1) and inserting ``as follows:'';
            (B) by inserting ``To'' after the paragraph designation in 
        each of paragraphs (1), (2), (3), and (4);
            (C) by striking the semicolon at the end of paragraphs 
        (1)(B) and (2) and inserting a period;
            (D) by striking ``; and'' at the end of paragraph (3) and 
        inserting a period; and
            (E) by adding at the end the following:
            ``(5) To assist the Department of the Air Force in 
        fulfilling its noncombat programs and missions.''.
    (2)(A) Section 40303 of such title is amended--
            (i) by inserting ``(a) Membership.--'' before 
        ``Eligibility''; and
            (ii) by adding at the end the following:
    ``(b) Governing Body.--The Civil Air Patrol has a Board of 
Governors. The composition and responsibilities of the Board of 
Governors are set forth in section 9447 of title 10.''.
    (B) The heading for such section is amended to read as follows:
``Sec. 40303. Membership and governing body''.
    (C) The item relating to such section in the table of sections at 
the beginning of chapter 403 of title 36, United States Code, is 
amended to read as follows:

``40303. Membership and governing body.''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on January 1, 2001.

SEC. 910. RESPONSIBILITY FOR THE NATIONAL GUARD CHALLENGE PROGRAM.

    (a) Secretary of Defense.--Subsection (a) of section 509 of title 
32, United States Code, is amended by striking ``, acting through the 
Chief of the National Guard Bureau,''.
    (b) Clarification of Source of Federal Support.--Subsection (b) of 
such section is amended by striking ``Federal expenditures'' and 
inserting ``Department of Defense expenditures''.
    (c) Regulations.--Such section is further amended--
            (1) by redesignating subsection (l) and subsection (m); and
            (2) by inserting after subsection (k) the following new 
        subsection (l):
    ``(l) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section, including regulations governing 
the following:
            ``(1) Terms and conditions to be included in program 
        agreements under subsection (c).
            ``(2) The eligibility requirements for participation under 
        subsection (e).
            ``(3) The benefits authorized for program participants 
        under subsection (f).
            ``(4) The status of National Guard personnel providing 
        services for the program under subsection (g).
            ``(5) The use of equipment and facilities of the National 
        Guard for the program under subsection (h).
            ``(6) The status of program participants under subsection 
        (i).
            ``(7) The procedures for communicating between the 
        Secretary of Defense and States regarding the program.''.

SEC. 911. SUPERVISORY CONTROL OF ARMED FORCES RETIREMENT HOME BOARD BY 
              SECRETARY OF DEFENSE.

    (a) Board Authority Subject to Secretary's Control.--Section 
1516(a) of the Armed Forces Retirement Home Act of 1991 (Public Law 
101-510; 24 U.S.C. 416(a)) is amended by inserting after the first 
sentence the following: ``The Board is subject to the authority, 
direction, and control of the Secretary of Defense in the performance 
of its responsibilities.''.
    (b) Appointment and Terms of Board Members.--Section 1515 of such 
Act (24 U.S.C. 415) is amended--
            (1) in subsection (b), by adding at the end the following:
``An appointment not made by the Secretary of Defense is subject to the 
approval of the Secretary of Defense.'';
            (2) in subsection (e)(3), by striking ``Chairman of the 
        Retirement Home Board'' and inserting ``Secretary of Defense''; 
        and
            (3) in subsection (f), by striking ``(f) Early Expiration 
        of Term.--'' and inserting the following:
    ``(f) Early Termination.--(1) The Secretary of Defense may 
terminate the appointment of a member of the Board at the pleasure of 
the Secretary.
    ``(2)''.
    (c) Responsibility of Chairman to the Secretary.--Section 
1515(d)(1)(B) of such Act (24 U.S.C. 415(d)(1)(B)) is amended by 
striking ``not be responsible to the Secretary of Defense or to the 
Secretaries of the military departments'' and inserting ``be 
responsible to the Secretary of Defense, but not to the Secretaries of 
the military departments,''.

SEC. 912. CONSOLIDATION OF CERTAIN NAVY GIFT FUNDS.

    (a) Merger of Naval Historical Center Fund Into Department of the 
Navy General Gift Fund.--(1) The Secretary of the Navy shall transfer 
all amounts in the Naval Historical Center Fund maintained under 
section 7222 of title 10, United States Code, to the Department of the 
Navy General Gift Fund maintained under section 2601 of such title. 
Upon completing the transfer, the Secretary shall close the Naval 
Historical Center Fund.
    (2) Amounts transferred to the Department of the Navy General Gift 
Fund under this subsection shall be merged with other amounts in that 
Fund and shall be available for the purposes for which amounts in that 
Fund are available.
    (b) Consolidation of Naval Academy General Gift Fund and Naval 
Academy Museum Fund.--(1) The Secretary of the Navy shall transfer all 
amounts in the United States Naval Academy Museum Fund established by 
section 6974 of title 10, United States Code, to the gift fund 
maintained for the benefit and use of the United States Naval Academy 
under section 6973 of such title. Upon completing the transfer, the 
Secretary shall close the United States Naval Academy Museum Fund.
    (2) Amounts transferred under this subsection shall be merged with 
other amounts in the gift fund to which transferred and shall be 
available for the purposes for which amounts in that gift fund are 
available.
    (c) Consolidation and Revision of Authorities for Acceptance of 
Gifts, Bequests, and Loans for the United States Naval Academy.--(1) 
Subsection (a) of section 6973 of title 10, United States Code, is 
amended--
            (A) in the first sentence--
                    (i) by inserting ``, and loans of personal property 
                other than money,'' after ``gifts and bequests of 
                personal property''; and
                    (ii) by inserting ``or the Naval Academy Museum, 
                its collection, or its services'' before the period at 
                the end;
            (B) in the second sentence, by striking ```United States 
        Naval Academy general gift fund''' and inserting ```United 
        States Naval Academy Gift and Museum Fund'''; and
            (C) in the third sentence, by inserting ``(including the 
        Naval Academy Museum)'' after ``the Naval Academy''.
    (2) Such section 6973 is further amended--
            (A) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (B) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) The Secretary shall prescribe written guidelines to be used 
for determinations of whether the acceptance of money, any personal 
property, or any loan of personal property under subsection (a) would 
reflect unfavorably on the ability of the Department of the Navy or any 
officer or employee of the Department of the Navy to carry out 
responsibilities or duties in a fair and objective manner, or would 
compromise either the integrity or the appearance of the integrity of 
any program of the Department of the Navy or any officer or employee of 
the Department of the Navy who is involved in any such program.''.
    (3) Subsection (d) of such section, as redesignated by paragraph 
(2)(A), is amended by striking ``United States Naval Academy general 
gift fund'' both places it appears and inserting ``United States Naval 
Academy Gift and Museum Fund''.
    (4) The heading for such section is amended to read as follows:
``Sec. 6973. Gifts, bequests, and loans of property: acceptance for 
              benefit and use of Naval Academy''.
    (d) References to Closed Gift Funds.--(1) Section 6974 of title 10, 
United States Code, is amended to read as follows:
``Sec. 6974. United States Naval Academy Museum Fund: references to 
              Fund
    ``Any reference in a law, regulation, document, paper, or other 
record of the United States to the United States Naval Academy Museum 
Fund formerly maintained under this section shall be deemed to refer to 
the United States Naval Academy Gift and Museum Fund maintained under 
section 6973 of this title.''.
    (2) Section 7222 of such title is amended to read as follows:
``Sec. 7222. Naval Historical Center Fund: references to Fund
    ``Any reference in a law, regulation, document, paper, or other 
record of the United States to the Naval Historical Center Fund 
formerly maintained under this section shall be deemed to refer to the 
Department of the Navy General Gift Fund maintained under section 2601 
of this title.''.
    (e) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 603 of title 10, United States Code, is amended by 
striking the items relating to sections 6973 and 6974 and inserting the 
following:

``6973. Gifts, bequests, and loans of property: acceptance for benefit 
                            and use of Naval Academy.
``6974. United States Naval Academy Museum Fund: references to Fund.''.
    (2) The item relating to section 7222 of such title in the table of 
sections at the beginning of chapter 631 of such title is amended to 
read as follows:

``7222. Naval Historical Center Fund: references to Fund.''.

SEC. 913. TEMPORARY AUTHORITY TO DISPOSE OF A GIFT PREVIOUSLY ACCEPTED 
              FOR THE NAVAL ACADEMY.

    Notwithstanding section 6973 of title 10, United States Code, 
during fiscal year 2001, the Secretary of the Navy may dispose of the 
current cash value of a gift accepted before the date of the enactment 
of this Act for the Naval Academy general gift fund by disbursing out 
of that fund the amount equal to that cash value to an entity 
designated by the donor of the gift.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination 
by the Secretary of Defense that such action is necessary in the 
national interest, the Secretary may transfer amounts of authorizations 
made available to the Department of Defense in this division for fiscal 
year 2001 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall 
be merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$2,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR 
              FISCAL YEAR 2000.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 2000 in the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65) are hereby adjusted, with respect 
to any such authorized amount, by the amount by which appropriations 
pursuant to such authorization were increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, in any law 
making supplemental appropriations for fiscal year 2000 that is enacted 
during the 106th Congress, second session.

SEC. 1003. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2001.

    (a) Fiscal Year 2001 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2001 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2000, of funds appropriated for fiscal years before 
        fiscal year 2001 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $743,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $194,400,000 
        for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-
        funded budgets of NATO'' means the Military Budget, the 
        Security Investment Program, and the Civil Budget of the North 
        Atlantic Treaty Organization (and any successor or additional 
        account or program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the maximum 
        annual amount of Department of Defense contributions for 
        common-funded budgets of NATO that is set forth as the annual 
        limitation in section 3(2)(C)(ii) of the resolution of the 
        Senate giving the advice and consent of the Senate to the 
        ratification of the Protocols to the North Atlantic Treaty of 
        1949 on the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that resolution), 
        approved by the Senate on April 30, 1998.

SEC. 1004. ANNUAL OMB/CBO JOINT REPORT ON SCORING OF BUDGET OUTLAYS.

    (a) Revision of Scope of Technical Assumptions.--Subsection (a)(1) 
of section 226 of title 10, United States Code, is amended by inserting 
``subfunctional category 051 (Department of Defense--Military) under'' 
before ``major functional category 050''.
    (b) Treatment of Differences in Outlay Rates and Assumptions.--(1) 
Subsection (b) of such section is amended by striking ``, the report 
shall reflect the average of the relevant outlay rates or assumptions 
used by the two offices.'' and inserting ``, the report shall reflect 
the differences between the relevant outlay rates or assumptions used 
by the two offices. For each account for which a difference is 
reported, the report shall also display, by fiscal year, each office's 
estimates regarding budget authority, outlay rates, and outlays.''.
    (2) The heading for such subsection is amended to read as follows: 
``Differences in Outlay Rates and Assumptions.--''.

SEC. 1005. PROMPT PAYMENT OF CONTRACT VOUCHERS.

    (a) Requirement.--(1) Chapter 131 of title 10, United States Code, 
is amended by adding at the end the following:
``Sec. 2225. Prompt payment of vouchers for contracted property and 
              services
    ``(a) Requirement.--Of the contract vouchers that are received by 
the Defense Finance and Accounting System by means of the mechanization 
of contract administration service, the number of such vouchers that 
remain unpaid for more than 30 days as of the last day of each month 
may not exceed 5 percent of the total number of the contract vouchers 
so received that remain unpaid on that day.
    ``(b) Conditional Requirement for Report.--(1) For any month of a 
fiscal year that the requirement in subsection (a) is not met, the 
Secretary of Defense shall submit to Congress a report on the magnitude 
of the unpaid contract vouchers. The report for a month shall be 
submitted not later than 30 days after the end of that month.
    ``(2) A report for a month under paragraph (1) shall include 
information current as of the last day of the month as follows:
            ``(A) The number of the vouchers received by the Defense 
        Finance and Accounting System by means of the mechanization of 
        contract administration service during each month.
            ``(B) The number of the vouchers so received, whenever 
        received by the Defense Finance and Accounting System, that 
        remain unpaid for each of the following periods:
                    ``(i) Not more than 30 days.
                    ``(ii) Over 30 days and not more than 60 days.
                    ``(iii) Over 60 days and not more than 90 days.
                    ``(iv) More than 90 days.
            ``(C) The number of the vouchers so received that remain 
        unpaid for the major categories of procurements, as defined by 
        the Secretary of Defense.
            ``(D) The corrective actions that are necessary, and those 
        that are being taken, to ensure compliance with the requirement 
        in subsection (a).
    ``(c) Contract Voucher Defined.--In this section, the term 
`contract voucher' means a voucher or invoice for the payment of a 
contractor for services, commercial items (as defined in section 4(12) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12))), 
or other deliverable items provided by the contractor pursuant to a 
contract funded by the Department of Defense.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``2225. Prompt payment of vouchers for contracted property and 
                            services''.
    (b) Effective Date.--Section 2225 of title 10, United States Code 
(as added by subsection (a)), shall take effect on December 1, 2000, 
and shall apply with respect to months beginning on or after that date.

SEC. 1006. REPEAL OF CERTAIN REQUIREMENTS RELATING TO TIMING OF 
              CONTRACT PAYMENTS.

    The following provisions of law are repealed: sections 8175 and 
8176 of the Department of Defense Appropriations Act, 2000 (Public Law 
106-79), as amended by sections 214 and 215, respectively, of H.R. 3425 
of the 106th Congress (113 Stat. 1501A-297), as enacted into law by 
section 1000(a)(5) of Public Law 106-113.

SEC. 1007. PLAN FOR PROMPT POSTING OF CONTRACTUAL OBLIGATIONS.

    (a) Requirement for Plan.--The Secretary of Defense shall submit to 
the congressional defense committees, not later than November 15, 2000, 
and carry out a plan for ensuring that each obligation of the 
Department of Defense under a transaction described in subsection (c) 
is posted within 10 days after the obligation is incurred.
    (b) Content of Plan.--The plan for posting obligations shall 
provide the following:
            (1) Uniform posting requirements that are applicable 
        throughout the Department of Defense, including requirements 
        for the posting of detailed data on each obligation.
            (2) A system of uniform accounting classification reference 
        numbers.
            (3) Increased use of electronic means for the submission of 
        invoices and other billing documents.
    (c) Covered Transactions.--The plan shall apply to each liability 
of the Department of Defense for a payment under the following:
            (1) A contract.
            (2) An order issued under a contract.
            (3) Services received under a contract.
            (4) Any transaction that is similar to a transaction 
        referred to in another paragraph of this subsection.

SEC. 1008. PLAN FOR ELECTRONIC SUBMISSION OF DOCUMENTATION SUPPORTING 
              CLAIMS FOR CONTRACT PAYMENTS.

    (a) Requirement for Plan.--The Secretary of Defense shall submit to 
the congressional defense committees, not later than March 30, 2001, 
and carry out a plan for ensuring that all documentation that is to be 
submitted to the Department of Defense in support of claims for payment 
under contracts is submitted electronically.
    (b) Content of Plan.--The plan shall include the following:
            (1) The format in which information can be accepted by the 
        Defense Finance and Accounting Service's corporate database.
            (2) Procedures for electronic submission of the following:
                    (A) Receiving reports.
                    (B) Contracts and contract modifications.
                    (C) Required certifications.
            (3) The requirements to be included in contracts regarding 
        electronic submission of invoices by contractors.

SEC. 1009. ADMINISTRATIVE OFFSETS FOR OVERPAYMENT OF TRANSPORTATION 
              COSTS.

    (a) Offsets for Overpayments or Liquidated Damages.--Section 2636 
of title 10, United States Code, is amended to read as follows:
``Sec. 2636. Deductions from amounts due carriers
    ``(a) Amounts for Loss or Damage.--An amount deducted from an 
amount due a carrier shall be credited as follows:
            ``(1) If deducted because of loss of or damage to material 
        in transit for a military department, to the proper 
        appropriation, account, or fund from which the same or similar 
        material may be replaced.
            ``(2) If deducted as an administrative offset for an 
        overpayment previously made to the carrier under any Department 
        of Defense contract for transportation services or as 
        liquidated damages due under any such contract, to the 
        appropriation or account from which payments for the 
        transportation services were made.
    ``(b) Simplified Offset for Collection of Claims Not in Excess of 
the Simplified Acquisition Threshold.--(1) In any case in which the 
total amount of a claim for the recovery of overpayments or liquidated 
damages under a contract described in subsection (a)(2) does not exceed 
the simplified acquisition threshold, the Secretary of Defense or the 
Secretary concerned may exercise the authority to collect the claim by 
administrative offset under section 3716 of title 31 after providing 
the notice required by paragraph (1) of subsection (a) of that section, 
but without regard to paragraphs (2), (3), and (4) of that subsection.
    ``(2) In this subsection, the term `simplified acquisition 
threshold' has the meaning given the term in section 4(11) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 157 of such title is 
amended to read as follows:

``2636. Deductions from amounts due carriers.''.

                  Subtitle B--Counter-Drug Activities

SEC. 1011. EXTENSION AND INCREASE OF AUTHORITY TO PROVIDE ADDITIONAL 
              SUPPORT FOR COUNTER-DRUG ACTIVITIES.

    (a) Extension of Authority for Assistance to Colombia.--Section 
1033 of the National Defense Authorization Act for Fiscal Year 1998 
(Public Law 105-85; 111 Stat. 1881) is amended--
            (1) in subsection (a), by striking ``during fiscal years 
        1998 through 2002,''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting before the 
                period at the end the following: ``, for fiscal years 
                1998 through 2002''; and
                    (B) in paragraph (2), by inserting before the 
                period at the end the following: ``, for fiscal years 
                1998 through 2006'.
    (b) Additional Type of Support.--Subsection (c) of such section is 
amended by adding at the end the following:
            ``(4) The transfer of one light observation aircraft.''.
    (c) Increased Maximum Annual Amount of Support.--Subsection (e)(2) 
of such section is amended--
            (1) by striking ``$20,000,000'' and inserting 
        ``$40,000,000''; and
            (2) by striking ``2002'' and inserting ``2006, of which not 
        more than $10,000,000 may be obligated or expended for any 
        fiscal year for support for the counter-drug activities of the 
        Government of Peru''.

SEC. 1012. RECOMMENDATIONS ON EXPANSION OF SUPPORT FOR COUNTER-DRUG 
              ACTIVITIES.

    (a) Requirement for Submittal of Recommendations.--The Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives, not later than February 1, 2001, the 
Secretary's recommendations regarding whether expanded support for 
counter-drug activities should be authorized under section 1033 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1881) for the region that includes the countries that 
are covered by that authority on the date of the enactment of this Act.
    (b) Content of Submission.--The submission under subsection (a) 
shall include the following:
            (1) What, if any, additional countries should be covered.
            (2) What, if any, additional support should be provided to 
        covered countries, together with the reasons for recommending 
        the additional support.
            (3) For each country recommended under paragraph (1), a 
        plan for providing support, including the counter-drug 
        activities proposed to be supported.

SEC. 1013. REVIEW OF RIVERINE COUNTER-DRUG PROGRAM.

    (a) Requirement for Review.--The Secretary of Defense shall review 
the riverine counter-drug program supported under section 1033 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1881).
    (b) Report.--Not later than February 1, 2001, the Secretary shall 
submit a report on the riverine counter-drug program to the Committees 
on Armed Services of the Senate and the House of Representatives. The 
report shall include, for each country receiving support under the 
riverine counter-drug program, the following:
            (1) The Assistant Secretary's assessment of the 
        effectiveness of the program.
            (2) A recommendation regarding which of the Armed Forces, 
        units of the Armed Forces, or other organizations within the 
        Department of Defense should be responsible for managing the 
        program.
    (c) Delegation of Authority.--The Secretary shall require the 
Assistant Secretary of Defense for Special Operations and Low Intensity 
Conflict to carry out the responsibilities under this section.

                      Subtitle C--Strategic Forces

SEC. 1015. REVISED NUCLEAR POSTURE REVIEW.

    (a) Requirement for Review.--The Secretary of Defense, in 
consultation with the Secretary of Energy, shall conduct a 
comprehensive review of the nuclear posture of the United States for 
the next 5 to 10 years.
    (b) Elements of Review.--The nuclear posture review shall include 
the following elements:
            (1) The role of nuclear forces in United States military 
        strategy, planning, and programming.
            (2) The policy requirements and objectives for the United 
        States to maintain a safe, reliable, and credible nuclear 
        deterrence posture.
            (3) The relationship between United States nuclear 
        deterrence policy, targeting strategy, and arms control 
        objectives.
            (4) The levels and composition of the nuclear delivery 
        systems that will be required for implementing the United 
        States national and military strategy, including any plans for 
        replacing or modifying existing systems.
            (5) The nuclear weapons complex that will be required for 
        implementing the United States national and military strategy, 
        including any plans to modernize or modify the complex.
            (6) The active and inactive nuclear weapons stockpile that 
        will be required for implementing the United States national 
        and military strategy, including any plans for replacing or 
        modifying warheads.
    (c) Report to Congress.--The Secretary of Defense shall submit to 
Congress, in unclassified and classified forms as necessary, a report 
on the results of the nuclear posture review concurrently with the 
Quadrennial Defense Review due in December 2001.
    (d) Sense of Congress.--It is the sense of Congress that, to 
clarify United States nuclear deterrence policy and strategy for the 
next 5 to 10 years, a revised nuclear posture review should be 
conducted and that such review should be used as the basis for 
establishing future United States arms control objectives and 
negotiating positions.

SEC. 1016. PLAN FOR THE LONG-TERM SUSTAINMENT AND MODERNIZATION OF 
              UNITED STATES STRATEGIC NUCLEAR FORCES.

    (a) Requirement for Plan.--The Secretary of Defense, in 
consultation with the Secretary of Energy, shall develop a long-range 
plan for the sustainment and modernization of United States strategic 
nuclear forces to counter emerging threats and satisfy the evolving 
requirements of deterrence.
    (b) Elements of Plan.--The plan specified under subsection (a) 
shall include the Secretary's plans, if any, for the sustainment and 
modernization of the following:
            (1) Land-based and sea-based strategic ballistic missiles, 
        including any plans for developing replacements for the 
        Minuteman III intercontinental ballistic missile and the 
        Trident II sea-launched ballistic missile and plans for common 
        ballistic missile technology development
            (2) Strategic nuclear bombers, including any plans for a B-
        2 follow-on, a B-52 replacement, and any new air-launched 
        weapon systems.
            (3) Appropriate warheads to outfit the strategic nuclear 
        delivery systems referred to in paragraphs (1) and (2) to 
        satisfy evolving military requirements.
    (c) Submittal of Plan.--The plan specified under subsection (a) 
shall be submitted to Congress not later than April 15, 2001. The plan 
shall be submitted in unclassified and classified forms, as necessary.

SEC. 1017. CORRECTION OF SCOPE OF WAIVER AUTHORITY FOR LIMITATION ON 
              RETIREMENT OR DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY 
              SYSTEMS.

    Section 1302(b) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1948), as amended by 
section 1501(a) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 806), is further amended by 
striking ``the application of the limitation in effect under paragraph 
(1)(B) or (3) of subsection (a), as the case may be,'' and inserting 
``the application of the limitation in effect under subsection (a) to a 
strategic nuclear delivery system''.

SEC. 1018. REPORT ON THE DEFEAT OF HARDENED AND DEEPLY BURIED TARGETS.

    (a) Study.--The Secretary of Defense shall, in conjunction with the 
Secretary of Energy, conduct a study relating to the defeat of hardened 
and deeply buried targets. Under the study, the Secretaries shall--
            (1) review the requirements and current and future plans 
        for hardened and deeply buried targets and agent defeat weapons 
        concepts and activities;
            (2) determine if those plans adequately address all 
        requirements;
            (3) identify potential future hardened and deeply buried 
        targets and other related targets;
            (4) determine what resources and research and development 
        efforts are needed to defeat the targets identified under 
        paragraph (3) as well as other agent defeat requirements;
            (5) assess both current and future options to defeat 
        hardened and deeply buried targets as well as agent defeat 
        weapons concepts, including any limited research and 
        development that may be necessary to conduct such assessment; 
        and
            (6) determine the capability and cost of each option.
    (b) Report.--The Secretary of Defense shall submit to the 
congressional defense committees a report on the results of the study 
required by subsection (a) not later than July 1, 2001.

            Subtitle D--Miscellaneous Reporting Requirements

SEC. 1021. ANNUAL REPORT OF THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF 
              ON COMBATANT COMMAND REQUIREMENTS.

    (a) Additional Component.--Section 153(d)(1) of title 10, United 
States Code, is amended by adding at the end the following:
            ``(C) The extent to which the future-years defense program 
        (under section 221 of this title) addresses the requirements on 
        the consolidated lists.''.
    (b) Applicability to Reports After Fiscal Year 2000.--Subparagraph 
(C) of paragraph (1) of section 153(d) of title 10, United States Code 
(as added by subsection (a)), shall apply to reports submitted to 
Congress under such section after fiscal year 2000.

SEC. 1022. SEMIANNUAL REPORT ON JOINT REQUIREMENTS OVERSIGHT COUNCIL.

    (a) Semiannual Report.--The Chairman of the Joints Chiefs of Staff 
shall submit to the congressional defense committees a semiannual 
report on the activities of the Joint Requirements Oversight Council. 
The principal purpose of the report is to inform the committees of the 
progress made in the reforming and refocusing of the Joint Requirements 
Oversight Council process during the period covered by the report.
    (b) Content.--The report for a half of a fiscal year shall include 
the following:
            (1) A listing and justification for each of the distinct 
        capability areas selected by the Chairman of the Joints Chiefs 
        of Staff as being within the principal domain of the Joint 
        Requirements Oversight Council.
            (2) A listing of the joint requirements developed, 
        considered, or approved within each of the capability areas.
            (3) A listing and explanation of the decisions made by the 
        Joint Requirements Oversight Council, together with a 
        delineation of each decision that was made in disagreement with 
        a position advocated by the Commander in Chief, United States 
        Joint Forces Command, as the chief proponent of the 
        requirements identified by the commanders of the unified and 
        specified combatant commands.
            (4) An assessment of the progress made in elevating the 
        Joint Requirements Oversight Council to a more strategic focus 
        on future war fighting requirements, integration of 
        requirements, and development of overarching common 
        architectures.
            (5) A summation and assessment of the role and impact of 
        joint experimentation on the processes and decisions for 
        defining joint requirements, for defining requirements of each 
        of the Armed Forces individually, for managing acquisitions by 
        Defense Agencies, and for managing acquisitions by the military 
        departments.
            (6) A description of any procedural actions that have been 
        taken to improve the Joint Requirements Oversight Council.
            (7) Any recommendations for legislation or for providing 
        additional resources that the Chairman considers necessary in 
        order fully to refocus and reform the processes of the Joint 
        Requirements Oversight Council.
    (c) Dates for Submission.--(1) The semiannual report for the half 
of a fiscal year ending on March 31 of a year shall be submitted not 
later than August 31 of that year.
    (2) The semiannual report for the half of a fiscal year ending on 
September 30 of a year shall be submitted not later than February 28 of 
the following year.
    (3) The first semiannual report shall be submitted not later than 
February 28, 2001, and shall cover the last half of fiscal year 2000.

SEC. 1023. PREPAREDNESS OF MILITARY INSTALLATION FIRST RESPONDERS FOR 
              INCIDENTS INVOLVING WEAPONS OF MASS DESTRUCTION.

    (a) Requirement for Report.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the program of the Department of Defense to ensure 
the preparedness of the first responders of the Department of Defense 
for incidents involving weapons of mass destruction on installations of 
the Department of Defense.
    (b) Content of Report.--The report shall include the following:
            (1) A detailed description of the overall preparedness 
        program.
            (2) The schedule and costs associated with the 
        implementation of the program.
            (3) The Department's plan for coordinating the preparedness 
        program with responders in the communities in the localities of 
        the installations.
            (4) The Department's plan for promoting the 
        interoperability of the equipment used by the installation 
        first responders referred to in subsection (a) with the 
        equipment used by the first responders in those communities.
    (c) Definitions.--In this section:
            (1) The term ``first responder'' means an organization 
        responsible for responding to an incident involving a weapon of 
        mass destruction.
            (2) The term ``weapon of mass destruction'' has the meaning 
        given that term in section 1403(1) of the Defense Against 
        Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).

SEC. 1024. DATE OF SUBMITTAL OF REPORTS ON SHORTFALLS IN EQUIPMENT 
              PROCUREMENT AND MILITARY CONSTRUCTION FOR THE RESERVE 
              COMPONENTS IN FUTURE-YEARS DEFENSE PROGRAMS.

    Section 10543(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) A report required under paragraph (1) for a fiscal year shall 
be submitted not later than 15 days after the date on which the 
President submits to Congress the budget for such fiscal year under 
section 1105(a) of title 31.''.

SEC. 1025. MANAGEMENT REVIEW OF DEFENSE LOGISTICS AGENCY.

    (a) Comptroller General Review Required.--The Comptroller General 
shall review each operation of the Defense Logistics Agency--
            (1) to assess--
                    (A) the efficiency of the operation;
                    (B) the effectiveness of the operation in meeting 
                customer requirements; and
                    (C) the flexibility of the operation to adopt best 
                business practices; and
            (2) to identify alternative approaches for improving the 
        operations of the agency.
    (b) Report.--Not later than February 1, 2002, the Comptroller 
General shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives 1 or more reports setting forth the 
Comptroller General's findings resulting from the review.

SEC. 1026. MANAGEMENT REVIEW OF DEFENSE INFORMATION SYSTEMS AGENCY.

    (a) Comptroller General Review Required.--The Comptroller General 
shall review each operation of the Defense Information Systems Agency--
            (1) to assess--
                    (A) the efficiency of the operation;
                    (B) the effectiveness of the operation in meeting 
                customer requirements; and
                    (C) the flexibility of the operation to adopt best 
                business practices; and
            (2) to identify alternative approaches for improving the 
        information systems of the Department of Defense.
    (b) Report.--Not later than February 1, 2002, the Comptroller 
General shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives one or more reports setting forth the 
Comptroller General's findings resulting from the review.

                    Subtitle E--Information Security

SEC. 1041. INSTITUTE FOR DEFENSE COMPUTER SECURITY AND INFORMATION 
              PROTECTION.

    (a) Establishment.--The Secretary of Defense shall establish an 
Institute for Defense Computer Security and Information Protection.
    (b) Mission.--The Secretary shall require the institute--
            (1) to conduct research and technology development that is 
        relevant to foreseeable computer and network security 
        requirements and information assurance requirements of the 
        Department of Defense with a principal focus on areas not being 
        carried out by other organizations in the private or public 
        sector; and
            (2) to facilitate the exchange of information regarding 
        cyberthreats, technology, tools, and other relevant issues 
        between government and nongovernment organizations and 
        entities.
    (c) Contractor Operation.--The Secretary shall enter into a 
contract with a not-for-profit entity or consortium of not-for-profit 
entities to organize and operate the institute. The Secretary shall use 
competitive procedures for the selection of the contractor to the 
extent determined necessary by the Secretary.
    (d) Funding.--Of the amounts authorized to be appropriated under 
section 301(5), $10,000,000 shall be available for the Institute for 
Defense Computer Security and Information Protection.
    (e) Report.--Not later than April 1, 2001, the Secretary shall 
submit to the congressional defense committees the Secretary's plan for 
implementing this section.

SEC. 1042. INFORMATION SECURITY SCHOLARSHIP PROGRAM.

    (a) Establishment of Program.--(1) Part III of subtitle A of title 
10, United States Code, is amended by adding at the end the following:

          ``CHAPTER 112--OTHER EDUCATIONAL ASSISTANCE PROGRAMS

``Sec.
``2200. Information security scholarship program.
``Sec. 2200. Information security scholarship program
    ``(a) Establishment.--To encourage the recruitment and retention of 
Department of Defense personnel who have the computer and network 
security skills necessary to meet Department of Defense information 
assurance requirements, the Secretary of Defense may establish a 
program to provide educational assistance in accordance with this 
section to persons pursuing a program of education in disciplines 
relevant to those requirements.
    ``(b) Eligible Persons.--The Secretary may provide educational 
assistance under the program for pursuit of a baccalaureate or advanced 
degree in a discipline referred to in subsection (a) at an institution 
of higher education by a person entering into an agreement with the 
Secretary of Defense as described in subsection (c).
    ``(c) Service Agreement.--(1) To receive educational assistance 
under this section--
            ``(A) a member of the armed forces shall enter into an 
        agreement to serve on active duty in the member's armed force 
        for the period of obligated service determined under paragraph 
        (2);
            ``(B) an employee of the Department of Defense shall enter 
        into an agreement to continue in the employment of the 
        department for the period of obligated service determined under 
        paragraph (2); and
            ``(C) a person not referred to in subparagraph (A) or (B) 
        shall enter into an agreement--
                    ``(i) to enlist or accept a commission in one of 
                the armed forces and to serve on active duty in that 
                armed force for the period of obligated service 
                determined under paragraph (2); or
                    ``(ii) to accept and continue employment in the 
                Department of Defense for the period of obligated 
                service determined under paragraph (2).
    ``(2) For the purposes of this subsection, the period of obligated 
service for a recipient of educational assistance under this section is 
one year for each academic year (or fraction thereof) for which 
educational assistance is provided. The period of obligated service is 
in addition to any other period for which the recipient is obligated to 
serve on active duty or in the civil service, as the case may be.
    ``(3) An agreement entered into under this section by a person 
pursuing an academic degree shall include clauses that provide the 
following:
            ``(A) That the period of obligated service begins on a date 
        after the award of the degree that is determined under the 
        regulations prescribed under subsection (g).
            ``(B) That the person will maintain satisfactory academic 
        progress, as determined in accordance with the regulations 
        prescribed under subsection (g), and that failure to maintain 
        such progress constitutes grounds for termination of the 
        educational assistance provided the person under this section.
            ``(C) Any other terms and conditions that the Secretary of 
        Defense determines appropriate for carrying out this section.
    ``(d) Amount of Assistance.--The amount of the educational 
assistance provided for a person under this section shall be the amount 
determined by the Secretary of Defense as being necessary to pay all 
educational expenses incurred by that person, including tuition, fees, 
books, and laboratory expenses, but not including expenses for room and 
board. The expense paid, however, shall be limited to those educational 
expenses normally incurred by students at the institution of higher 
education involved.
    ``(e) Refund for Period of Unserved Obligated Service.--(1) A 
person who voluntarily terminates service before the end of the period 
of obligated service required under an agreement entered into under 
subsection (c) shall refund to the United States an amount that bears 
the same ratio to the amount of the educational assistance paid for the 
person as the unserved part of such period bears to the total period.
    ``(2) An obligation to reimburse the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) The Secretary of Defense may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary determines that 
recovery would be against equity and good conscience or would be 
contrary to the best interests of the United States.
    ``(f) Effect of Discharge in Bankruptcy.--A discharge in bankruptcy 
under title 11 that is entered less than 5 years after the termination 
of an agreement under this section does not discharge the person 
signing such agreement from a debt arising under such agreement or 
under subsection (e).
    ``(g) Regulations.--The Secretary of Defense shall prescribe 
regulations for the administration of any program established under 
this section.
    ``(h) Inapplicability to Coast Guard.--This section does not apply 
to the Coast Guard when it is not operating as a service in the Navy.
    ``(i) Definitions.--In this section:
            ``(1) The term `information assurance' includes the 
        following:
                    ``(A) Computer security.
                    ``(B) Network security.
                    ``(C) Any other information technology that the 
                Secretary of Defense considers related to information 
                assurance.
            ``(2) The term `institution of higher education' has the 
        meaning given the term in section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1001).''.
    (2) The tables of chapters at the beginning of subtitle A of title 
10, United States Code, and the beginning of part III of such subtitle 
are amended by inserting after the item relating to chapter 111 the 
following:

``112. Other Educational Assistance Programs................    2200''.
    (b) Funding.--Of the amount authorized to be appropriated under 
section 301(5), $20,000,000 shall be available for carrying out an 
information security scholarship program under section 2200 of title 
10, United States Code (as added by subsection (a)).
    (c) Report.--Not later than April 1, 2001, the Secretary of Defense 
shall submit to the congressional defense committees a plan for 
implementing an information security scholarship program under section 
2200 of title 10, United States Code.

SEC. 1043. PROCESS FOR PRIORITIZING BACKGROUND INVESTIGATIONS FOR 
              SECURITY CLEARANCES FOR DEPARTMENT OF DEFENSE PERSONNEL.

    (a) Establishment of Process.--Chapter 80 of title 10, United 
States Code, is amended by adding at the end the following:
``Sec. 1563. Security clearance investigations
    ``(a) Expedited Process.--The Secretary of Defense shall prescribe 
a process for expediting the completion of the background 
investigations necessary for granting security clearances for 
Department of Defense personnel who are engaged in sensitive duties 
that are critical to the national security.
    ``(b) Required Features.--The process developed under subsection 
(a) shall provide for the following:
            ``(1) Quantification of the requirements for background 
        investigations necessary for grants of security clearances for 
        Department of Defense personnel.
            ``(2) Categorization of personnel on the basis of the 
        degree of sensitivity of their duties and the extent to which 
        those duties are critical to the national security.
            ``(3) Prioritization of the processing of background 
        investigations on the basis of the categories of personnel.
    ``(c) Annual Review.--The Secretary shall review, each year, the 
process prescribed under subsection (a) and shall revise it as 
determined necessary in relation to ongoing Department of Defense 
missions.
    ``(d) Consultation Requirement.--The Secretary shall consult with 
the Secretaries of the military departments and the heads of Defense 
Agencies in carrying out this section.
    ``(e) Sensitive Duties.--For the purposes of this section, it is 
not necessary for the performance of duties to involve classified 
activities or classified matters in order for the duties to be 
considered sensitive and critical to the national security.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``1563. Security clearance investigations.''.

SEC. 1044. AUTHORITY TO WITHHOLD CERTAIN SENSITIVE INFORMATION FROM 
              PUBLIC DISCLOSURE.

    (a) In General.--Chapter 3 of title 10, United States Code, is 
amended by inserting after section 130b the following new section:
``Sec. 130c. Nondisclosure of information: certain sensitive 
              information of foreign governments and international 
              organizations
    ``(a) Exemption From Disclosure.--The national security official 
concerned (as defined in subsection (g)) may withhold from public 
disclosure otherwise required by law sensitive information of foreign 
governments in accordance with this section.
    ``(b) Information Eligible for Exemption.--For the purposes of this 
section, information is sensitive information of a foreign government 
only if the national security official concerned makes each of the 
following determinations with respect to the information:
            ``(1) That the information was provided by, otherwise made 
        available by, or produced in cooperation with, a foreign 
        government or international organization.
            ``(2) That the foreign government or international 
        organization is withholding the information from public 
        disclosure (relying for that determination on the written 
        representation of the foreign government or international 
        organization to that effect).
            ``(3) That any of the following conditions are met:
                    ``(A) The foreign government or international 
                organization requests, in writing, that the information 
                be withheld.
                    ``(B) The information was provided or made 
                available to the United States Government on the 
                condition that it not be released to the public.
                    ``(C) The information is an item of information, or 
                is in a category of information, that the national 
                security official concerned has specified in 
                regulations prescribed under subsection (f) as being 
                information the release of which would have an adverse 
                effect on the ability of the United States Government 
                to obtain the same or similar information in the 
                future.
    ``(c) Information of Other Agencies.--If the national security 
official concerned provides to the head of another agency sensitive 
information of a foreign government, as determined by that national 
security official under subsection (b), and informs the head of the 
other agency of that determination, then the head of the other agency 
shall withhold the information from any public disclosure unless that 
national security official specifically authorizes the disclosure.
    ``(d) Limitations.--(1) If a request for disclosure covers any 
sensitive information of a foreign government (as described in 
subsection (b)) that came into the possession or under the control of 
the United States Government before the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2001 and more than 
25 years before the request is received by an agency, the information 
may be withheld only as set forth in paragraph (3).
    ``(2)(A) If a request for disclosure covers any sensitive 
information of a foreign government (as described in subsection (b)) 
that came into the possession or under the control of the United States 
Government on or after the date referred to in paragraph (1), the 
authority to withhold the information under this section is subject to 
the provisions of subparagraphs (B) and (C).
    ``(B) Information referred to in subparagraph (A) may not be 
withheld under this section after--
            ``(i) the date that is specified by a foreign government or 
        international organization in a request or expression of a 
        condition described in paragraph (1) or (2) of subsection (b) 
        that is made by the foreign government or international 
        organization concerning the information; or
            ``(ii) if there are more than one such foreign governments 
        or international organizations, the latest date so specified by 
        any of them.
    ``(C) If no date is applicable under subparagraph (B) to a request 
referred to in subparagraph (A) and the information referred to in that 
subparagraph came into possession or under the control of the United 
States more than 10 years before the date on which the request is 
received by an agency, the information may be withheld under this 
section only as set forth in paragraph (3).
    ``(3) Information referred to in paragraph (1) or (2)(C) may be 
withheld under this section in the case of a request for disclosure 
only if, upon the notification of each foreign government and 
international organization concerned in accordance with the regulations 
prescribed under subsection (g)(2), any such government or organization 
requests in writing that the information not be disclosed for an 
additional period stated in the request of that government or 
organization. After the national security official concerned considers 
the request of the foreign government or international organization, 
the official shall designate a later date as the date after which the 
information is not to be withheld under this section. The later date 
may be extended in accordance with a later request of any such foreign 
government or international organization under this paragraph.
    ``(e) Information Protected Under Other Authority.--This section 
does not apply to information or matters that are specifically required 
in the interest of national defense or foreign policy to be protected 
against unauthorized disclosure under criteria established by an 
Executive order and are classified, properly, at the confidential, 
secret, or top secret level pursuant to such Executive order.
    ``(f) Disclosures Not Affected.--Nothing in this section shall be 
construed to authorize any official to withhold, or to authorize the 
withholding of, information from the following:
            ``(1) Congress.
            ``(2) The Comptroller General, unless the information 
        relates to activities that the President designates as foreign 
        intelligence or counterintelligence activities.
    ``(g) Regulations.--(1) The national security officials referred to 
in subsection (h)(1) shall each prescribe regulations to carry out this 
section. The regulations shall include criteria for making the 
determinations required under subsection (b). The regulations may 
provide for controls on access to and use of, and special markings and 
specific safeguards for, a category or categories of information 
subject to this section.
    ``(2) The regulations shall include procedures for notifying and 
consulting with each foreign government or international organization 
concerned about requests for disclosure of information to which this 
section applies.
    ``(h) Definitions.--In this section:
            ``(1) The term `national security official concerned' means 
        the following:
                    ``(A) The Secretary of Defense, with respect to 
                information of concern to the Department of Defense, as 
                determined by the Secretary.
                    ``(B) The Secretary of Transportation, with respect 
                to information of concern to the Coast Guard, as 
                determined by the Secretary, but only while the Coast 
                Guard is not operating as a service in the Navy.
                    ``(C) The Secretary of Energy, with respect to 
                information concerning the national security programs 
                of the Department of Energy, as determined by the 
                Secretary.
            ``(2) The term `agency' has the meaning given that term in 
        section 552(f) of title 5.
            ``(3) The term `international organization' means the 
        following:
                    ``(A) A public international organization 
                designated pursuant to section 1 of the International 
                Organizations Immunities Act (59 Stat. 669; 22 U.S.C. 
                288) as being entitled to enjoy the privileges, 
                exemptions, and immunities provided in such Act.
                    ``(B) A public international organization created 
                pursuant to a treaty or other international agreement 
                as an instrument through or by which two or more 
                foreign governments engage in some aspect of their 
                conduct of international affairs.
                    ``(C) An official mission, except a United States 
                mission, to a public international organization 
                referred to in subparagraph (A) or (B).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
130b the following new item:

``130c. Nondisclosure of information: certain sensitive information of 
                            foreign governments and international 
                            organizations.''.

SEC. 1045. PROTECTION OF OPERATIONAL FILES OF THE DEFENSE INTELLIGENCE 
              AGENCY.

    (a) Authority.--Subchapter I of chapter 21 of title 10, United 
States Code, is amended by adding at the end the following:
``Sec. 426. Protection of sensitive information: operational files of 
              the Defense Intelligence Agency
    ``(a) Authority To Withhold Operational Files.--The Secretary of 
Defense may withhold from public disclosure operational files described 
in subsection (b) to the same extent that operational files may be 
withheld under section 701 of the National Security Act of 1947 (50 
U.S.C. 431), subject to judicial review under the same circumstances 
and to the same extent as is provided in subsection (f) of such 
section.
    ``(b) Decennial Review of Exempted Operational Files.--Section 702 
of the National Security Act of 1947 (50 U.S.C. 432), setting forth 
requirements for decennial review of exemptions from public disclosure 
and related provisions for judicial review shall apply with respect to 
the exemptions from public disclosure that are in force under 
subsection (a), subject to the following requirements:
            ``(1) The Secretary of Defense shall conduct the decennial 
        review under this subsection.
            ``(2) In the application of the judicial review provisions 
        under subsection (c) of such section 702--
                    ``(A) the references to the Central Intelligence 
                Agency shall be deemed to refer to the Secretary of 
                Defense; and
                    ``(B) the reference in paragraph (1) of that 
                subsection to the period for the first review shall be 
                deemed to refer to the 10-year period beginning on the 
                day after the date of the enactment of the National 
                Defense Authorization Act for Fiscal Year 2001.
    ``(c) Operational Files Defined.--In this section, the term 
`operational files' has the meaning given that term in section 701(b) 
of the National Security Act of 1947 (50 U.S.C. 431(b)), except that 
the references to elements of the Central Intelligence Agency do not 
apply.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following:

``426. Protection of sensitive information: operational files of the 
                            Defense Intelligence Agency.''.

                       Subtitle F--Other Matters

SEC. 1051. COMMEMORATION OF THE FIFTIETH ANNIVERSARY OF THE UNIFORM 
              CODE OF MILITARY JUSTICE.

    (a) Findings.--Congress makes the following findings:
            (1) The American military justice system predates the 
        United States itself, having had a continuous existence since 
        the enactment of the first American Articles of War by the 
        Continental Congress in 1775.
            (2) Pursuant to article I of the Constitution, which 
        explicitly empowers Congress ``To make Rules for the Government 
        and Regulation of the land and naval Forces'', Congress enacted 
        the Articles of War and an Act to Govern the Navy, which were 
        revised on several occasions between the ratification of the 
        Constitution and the end of World War II.
            (3) Dissatisfaction with the administration of military 
        justice in World War I and World War II led both to significant 
        statutory reforms in the Articles of War and to the convening 
        of a committee, under Department of Defense auspices, to draft 
        a uniform code of military justice applicable to all of the 
        Armed Forces.
            (4) The committee, chaired by Professor Edmund M. Morgan of 
        Harvard Law School, made recommendations that formed the basis 
        of bills introduced in Congress to establish such a uniform 
        code of military justice.
            (5) After lengthy hearings and debate on the congressional 
        proposals, the Uniform Code of Military Justice was enacted 
        into law on May 5, 1950, when President Harry S. Truman signed 
        the legislation.
            (6) President Truman then issued a revised Manual for 
        Courts-Martial implementing the new code, and the code became 
        effective on May 31, 1951.
            (7) One of the greatest innovations of the Uniform Code of 
        Military Justice was the establishment of a civilian court of 
        appeals within the military justice system. That court, the 
        United States Court of Military Appeals (now the United States 
        Court of Appeals for the Armed Forces), held its first session 
        on July 25, 1951.
            (8) Congress enacted major revisions of the Uniform Code of 
        Military Justice in 1968 and 1983 and, in addition, has amended 
        the code from time to time over the years as practice under the 
        code indicated a need for updating the substance or procedure 
        of the law of military justice.
            (9) The evolution of the system of military justice under 
        the Uniform Code of Military Justice may be traced in the 
        decisions of the Courts of Criminal Appeals of each of the 
        Armed Forces and the decisions of the United States Court of 
        Appeals for the Armed Forces. These courts have produced a 
        unique body of jurisprudence upon which commanders and judge 
        advocates rely in the performance of their duties.
            (10) It is altogether fitting that the fiftieth anniversary 
        of the Uniform Code of Military Justice be duly commemorated.
    (b) Commemoration.--The Congress--
            (1) requests the President to issue a proclamation 
        commemorating the fiftieth anniversary of the Uniform Code of 
        Military Justice; and
            (2) calls upon the Department of Defense, the Armed Forces, 
        and the United States Court of Appeals for the Armed Forces to 
        commemorate the occasion with ceremonies and activities 
        befitting its importance.

SEC. 1052. TECHNICAL CORRECTIONS.

    (a) Threshold Date for Effectiveness of Agreements To Make an SBP 
Election.--(1) Section 657(a)(1)(A) of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 
668; 10 U.S.C. 1450 note) is amended by striking ``August 21, 1983'' 
and inserting ``August 19, 1983''.
    (2) The amendment made by paragraph (1) shall take effect as of 
October 5, 1999, and shall apply as if included in section 657(a)(1)(A) 
of Public Law 106-65 on that date.
    (b) State of Incorporation of Fleet Reserve Association.--Sections 
70102(a) and 70108(a) of title 36, United States Code, are amended by 
striking ``Delaware'' and inserting ``Pennsylvania''.

SEC. 1053. ELIGIBILITY OF DEPENDENTS OF AMERICAN RED CROSS EMPLOYEES 
              FOR ENROLLMENT IN DEPARTMENT OF DEFENSE DOMESTIC 
              DEPENDENT SCHOOLS IN PUERTO RICO.

    Section 2164 of title 10, United States Code, is amended by adding 
at the end the following:
    ``(i) American Red Cross Employee Dependents in Puerto Rico.--(1) 
The Secretary of Defense may authorize a dependent of an employee of 
the American Red Cross performing armed forces emergency services in 
Puerto Rico to enroll in an educational program provided by the 
Secretary pursuant to subsection (a) in Puerto Rico.
    ``(2) In determining the dependency status of any person for the 
purposes of paragraph (1), the Secretary shall apply the same 
definitions as apply to the determination of such status with respect 
to Federal employees in the administration of this section.
    ``(3) The Secretary shall be paid for the educational services and 
related items provided to a student under paragraph (1). To determine 
the amount for educational services, the Secretary shall allocate to 
the student a share, considered appropriate by the Secretary, of the 
costs of providing the educational program in which the student is 
enrolled. The Secretary shall enter into such agreements or take such 
other actions as the Secretary determines necessary to ensure that the 
payments required under this paragraph are made.''.

SEC. 1054. GRANTS TO AMERICAN RED CROSS FOR ARMED FORCES EMERGENCY 
              SERVICES.

    (a) Grants Authorized.--The Secretary of Defense may, subject to 
subsection (b), make a grant to the American Red Cross of up to 
$9,400,000 in each of fiscal years 2001, 2002, and 2003 for the support 
of the Armed Forces Emergency Services program of the American Red 
Cross.
    (b) Matching Requirement.--A grant may not be made for a fiscal 
year under subsection (a) until the Secretary receives from the 
American Red Cross a certification providing assurances satisfactory to 
the Secretary that the American Red Cross will expend for the Armed 
Forces Emergency Services program for that fiscal year funds, derived 
from sources other than the Federal Government, in a total amount that 
equals or exceeds the amount of the grant.
    (c) Funding.--Of the amount authorized to be appropriated by 
section 301 for operation and maintenance for Defense-wide activities, 
$9,400,000 shall be available for grants made under this section.

SEC. 1055. TRANSIT PASS PROGRAM FOR CERTAIN DEPARTMENT OF DEFENSE 
              PERSONNEL.

    (a) Establishment of Program.--To encourage Department of Defense 
personnel in areas described in subsection (b) to use means other than 
single-occupancy motor vehicles to commute to or from work, the 
Secretary of Defense shall exercise the authority provided in section 
7905 of title 5, United States Code, to establish a program to provide 
the personnel in such areas with a transit pass benefit under 
subsection (b)(2)(A) of such section.
    (b) Covered Areas.--The Secretary shall establish the program 
required by subsection (a) in the areas which do not meet the revised 
national ambient air quality standards under section 109 of the Clean 
Air Act (42 U.S.C. 7409).
    (c) Time for Implementation.--The Secretary shall prescribe the 
effective date for the program required under subsection (a). The 
effective date so prescribed may not be later than the first day of the 
first month that begins on or after the date that is 180 days after the 
date of the enactment of this Act.

SEC. 1056. FEES FOR PROVIDING HISTORICAL INFORMATION TO THE PUBLIC.

    (a) Army.--(1) Chapter 437 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 4595. Army Military History Institute: fee for providing 
              historical information to the public
    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Army may charge a person a fee for providing the 
person with information from the United States Army Military History 
Institute that is requested by that person.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.
    ``(c) Limitation on Amount.--A fee charged for providing 
information under this section may not exceed the cost of providing the 
information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information in any fiscal year shall be credited to the 
appropriation or appropriations charged the costs of providing 
information to the public from the United States Army Military History 
Institute during that fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Army Military History 
        Institute' means the archive for historical records and 
        materials of the Army that the Secretary of the Army designates 
        as the primary archive for such records and materials.
            ``(2) The terms `officer of the United States' and 
        `employee of the United States' have the meanings given the 
        terms `officer' and `employee', respectively, in sections 2104 
        and 2105, respectively, of title 5.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``4595. Army Military History Institute: fee for providing historical 
                            information to the public.''.
    (b) Navy.--(1) Chapter 649 of such title 10 is amended by adding at 
the end the following new section:
``Sec. 7582. Naval and Marine Corps Historical Centers: fee for 
              providing historical information to the public
    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Navy may charge a person a fee for providing the 
person with information from the United States Naval Historical Center 
or the Marine Corps Historical Center that is requested by that person.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.
    ``(c) Limitation on Amount.--A fee charged for providing 
information under this section may not exceed the cost of providing the 
information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information from the United States Naval Historical Center or 
the Marine Corps Historical Center in any fiscal year shall be credited 
to the appropriation or appropriations charged the costs of providing 
information to the public from that historical center during that 
fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Naval Historical Center' 
        means the archive for historical records and materials of the 
        Navy that the Secretary of the Navy designates as the primary 
        archive for such records and materials.
            ``(2) The term `Marine Corps Historical Center' means the 
        archive for historical records and materials of the Marine 
        Corps that the Secretary of the Navy designates as the primary 
        archive for such records and materials.
            ``(3) The terms `officer of the United States' and 
        `employee of the United States' have the meanings given the 
        terms `officer' and `employee', respectively, in sections 2104 
        and 2105, respectively, of title 5.''.
    (2) The heading of such chapter is amended by striking ``related''.
    (3)(A) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``7582. Naval and Marine Corps Historical Centers: fee for providing 
                            historical information to the public.''.
    (B) The item relating to such chapter in the tables of chapters at 
the beginning of subtitle C of title 10, United States Code, and the 
beginning of part IV of such subtitle is amended by striking out 
``Related''.
    (c) Air Force.--(1) Chapter 937 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 9594. Air Force Military History Institute: fee for providing 
              historical information to the public
    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Air Force may charge a person a fee for providing the 
person with information from the United States Air Force Military 
History Institute that is requested by that person.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.
    ``(c) Limitation on Amount.--A fee charged for providing 
information under this section may not exceed the cost of providing the 
information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information in any fiscal year shall be credited to the 
appropriation or appropriations charged the costs of providing 
information to the public from the United States Air Force Military 
History Institute during that fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Air Force Military History 
        Institute' means the archive for historical records and 
        materials of the Air Force that the Secretary of the Air Force 
        designates as the primary archive for such records and 
        materials.
            ``(2) The terms `officer of the United States' and 
        `employee of the United States' have the meanings given the 
        terms `officer' and `employee', respectively, in sections 2104 
        and 2105, respectively, of title 5.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``9594. Air Force Military History Institute: fee for providing 
                            historical information to the public.''.

SEC. 1057. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION FOR NATIONAL 
              SECURITY PURPOSES.

    (a) Conditions for Availability of Information.--Subsection (b) of 
section 9101 of title 5, United States Code, is amended--
            (1) by striking paragraph (3);
            (2) by redesignating paragraph (2) as paragraph (4);
            (3) in paragraph (1)--
                    (A) in the first sentence--
                            (i) by inserting ``the Department of 
                        Transportation,'' after ``the Department of 
                        State,''; and
                            (ii) by inserting ``the following:'' after 
                        ``eligibility for''; and
                    (B) by striking ``(A) access to classified 
                information'' and all that follows through the end of 
                the paragraph and inserting the following:
            ``(A) Access to classified information.
            ``(B) Assignment to or retention in sensitive national 
        security duties.
            ``(C) Acceptance or retention in the armed forces.
            ``(D) Appointment, retention, or assignment to a position 
        of public trust or a critical or sensitive position while 
        either employed by the Federal Government or performing a 
        Federal Government contract.
    ``(2) If the criminal justice agency possesses the capability to 
provide automated criminal history record information based on a search 
of its records by name and other common identifiers, the agency shall 
provide the requester with full criminal history record information for 
individuals who meet the matching criteria.
    ``(3) Fees, if any, charged for providing criminal history record 
information pursuant to this subsection may not exceed the reasonable 
cost of providing such information through an automated name search.''; 
and
            (4) by adding at the end the following:
    ``(5) A criminal justice agency may not require, as a condition for 
the release of criminal history record information under this 
subsection, that any official of a department or agency named in 
paragraph (1) enter into an agreement with a State or local government 
to indemnify and hold harmless the State or locality for damages, 
costs, or other monetary loss arising from the disclosure or use by 
that department or agency of criminal history record information 
obtained from the State or local government pursuant to this 
subsection.''.
    (b) Use of Automated Information Delivery Systems.--Such section is 
further amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e)(1) Automated information delivery systems shall be used to 
provide criminal history record information a department or agency 
under subsection (b) whenever available.
    ``(2) Fees, if any, charged for automated access through such 
systems may not exceed the reasonable cost of providing such access.
    ``(3) The criminal justice agency providing the criminal history 
record information through such systems may not limit disclosure on the 
basis that the repository is accessed from outside the State.
    ``(4) Information provided through such systems shall be the full 
and complete criminal history record.
    ``(5) Criminal justice agencies shall accept and respond to 
requests for criminal history record information through such systems 
with printed or photocopied records when requested.''.

SEC. 1058. SENSE OF CONGRESS ON THE NAMING OF THE CVN-77 AIRCRAFT 
              CARRIER.

    (a) Findings.--Congress makes the following findings:
            (1) Over the last three decades Congress has authorized and 
        appropriated funds for a total of 10 ``NIMITZ'' class aircraft 
        carriers.
            (2) The last vessel in the ``NIMITZ'' class of aircraft 
        carriers, CVN-77, is currently under construction and will be 
        delivered in 2008.
            (3) The first nine vessels in this class bear the following 
        proud names:
                    (A) U.S.S. Nimitz (CVN-68).
                    (B) U.S.S. Dwight D. Eisenhower (CVN-69).
                    (C) U.S.S. Carl Vinson (CVN-70).
                    (D) U.S.S. Theodore Roosevelt (CVN-71).
                    (E) U.S.S. Abraham Lincoln (CVN-72).
                    (F) U.S.S. George Washington (CVN-73).
                    (G) U.S.S. John C. Stennis (CVN-74).
                    (H) U.S.S. Harry S. Truman (CVN-75).
                    (I) U.S.S. Ronald Reagan (CVN-76).
            (4) It is appropriate for Congress to recommend to the 
        President, as Commander in Chief of the Armed Forces, an 
        appropriate name for the final vessel in the ``NIMITZ'' class 
        of aircraft carriers.
            (5) Over the last 25 years the vessels in the ``NIMITZ'' 
        class of aircraft carriers have served as one of the principal 
        means of United States diplomacy and as one of the principal 
        means for the defense of the United States and our allies 
        around the world.
            (6) The name bestowed upon aircraft carrier CVN-77 should 
        embody the American spirit and provide a lasting symbol of the 
        American commitment to freedom.
            (7) The name ``Lexington' has been a symbol of freedom from 
        the first battle of the American Revolution.
            (8) The two aircraft carriers previously named U.S.S. 
        Lexington (the CV-2 and the CV-16) served our Nation for 64 
        years, served in World War II, and earned 13 battle stars.
            (9) One of those honored vessels, the CV-2, was lost after 
        having given gallant fight at the Battle of Coral Sea in 1942.
    (b) Sense of Congress.--It is the sense of Congress that the CVN-77 
aircraft carrier should be named the ``U.S.S. Lexington''--
            (1) in order to honor the men and women who served in the 
        Armed Forces of the United States during World War II, and the 
        incalculable number of United States citizens on the home front 
        during that war, who mobilized in the name of freedom, and who 
        are today respectfully referred to as the ``Greatest 
        Generation''; and
            (2) as a special tribute to the 16,000,000 veterans of the 
        Armed Forces who served on land, sea, and air during World War 
        II (of whom less than 6,000,000 remain alive today) and a 
        lasting symbol of their commitment to freedom as they pass on 
        having proudly taken their place in history.

SEC. 1059. DONATION OF CIVIL WAR CANNON.

    (a) Authority.--The Secretary of the Army shall convey all right, 
title, and interest of the United States in and to the Civil War era 
cannon described in subsection (b) to the Edward Dorr Tracey, Jr. Camp 
18 of the Sons of the Confederate Veterans.
    (b) Property To Be Conveyed.--The cannon referred to in subsection 
(a) is a 12-pounder Napoleon cannon bearing the following markings:
            (1) On the top: ``CS''.
            (2) On the face of the muzzle: ``Macon Arsenal, 1864/No.41/
        1164 ET''.
            (3) On the right trunnion: ``Macon Arsenal GEO/1864/No.41/
        WT.1164/E.T.''.
    (c) Consideration.--No consideration may be required by the 
Secretary for the conveyance of the cannon under this section.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
    (e) Relationship to Other Law.--The conveyance required under this 
section may be carried out without regard to the Act entitled ``An Act 
for the preservation of American antiquities'', approved June 8, 1906 
(34 Stat. 225; 16 U.S.C. 431 et seq.), popularly referred to as the 
``Antiquities Act of 1906''.

SEC. 1060. MAXIMUM SIZE OF PARCEL POST PACKAGES TRANSPORTED OVERSEAS 
              FOR ARMED FORCES POST OFFICES.

    Section 3401(b) of title 39, United States Code, is amended by 
striking ``100 inches in length and girth combined'' in paragraphs (2) 
and (3) and inserting ``the maximum size allowed by the Postal Service 
for fourth class parcel post (known as `Standard Mail (B)'''.

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

SEC. 1101. COMPUTER/ELECTRONIC ACCOMMODATIONS PROGRAM.

    (a) Authority To Expand Program.--(1) Chapter 81 of title 10, 
United States Code, is amended by inserting after section 1581 the 
following:
``Sec. 1582. Assistive technology, assistive technology devices, and 
              assistive technology services
    ``(a) Authority.--The Secretary of Defense may provide assistive 
technology, assistive technology devices, and assistive technology 
services to the following:
            ``(1) Department of Defense employees with disabilities.
            ``(2) Organizations within the department that have 
        requirements to make programs or facilities accessible to and 
        usable by persons with disabilities.
            ``(3) Any other department or agency of the Federal 
        Government, upon the request of the head of that department or 
        agency, for its employees with disabilities or for satisfying a 
        requirement to make its programs or facilities accessible to 
        and usable by persons with disabilities.
    ``(b) Definitions.--In this section, the terms `assistive 
technology', `assistive technology device', `assistive technology 
service', and `disability' have the meanings given the terms in section 
3 of the Assistive Technology Act of 1998 (29 U.S.C. 3002).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1581 the 
following:

``1582. Assistive technology, assistive technology devices, and 
                            assistive technology services.''.
    (b) Funding.--Of the amount authorized to be appropriated under 
section 301(5) for operation and maintenance for Defense-wide 
activities, not more than $2,000,000 is available for the purpose of 
expanding and administering the Computer/Electronic Accommodation 
Program of the Department of Defense to provide under section 1582 of 
title 10, United States Code (as added by subsection (a)), the 
technology, devices, and services described in that section.

SEC. 1102. ADDITIONAL SPECIAL PAY FOR FOREIGN LANGUAGE PROFICIENCY 
              BENEFICIAL FOR UNITED STATES NATIONAL SECURITY INTERESTS.

    (a) In General.--Chapter 81 of title 10, United States Code, is 
amended by inserting after section 1596 the following new section:
``Sec. 1596a. Foreign language proficiency: special pay for proficiency 
              beneficial for other national security interests
    ``(a) Authority.--The Secretary of Defense may pay special pay 
under this section to an employee of the Department of Defense who--
            ``(1) has been certified by the Secretary to be proficient 
        in a foreign language identified by the Secretary as being a 
        language in which proficiency by civilian personnel of the 
        department is necessary because of national security interests;
            ``(2) is assigned duties requiring proficiency in that 
        foreign language; and
            ``(3) is not receiving special pay under section 1596 of 
        this title.
    ``(b) Rate.--The rate of special pay for an employee under this 
section shall be prescribed by the Secretary, but may not exceed five 
percent of the employee's rate of basic pay.
    ``(c) Relationship to Other Pay and Allowances.--Special pay under 
this section is in addition to any other pay or allowances to which the 
employee is entitled.
    ``(d) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.''.
    (b) Amendment To Distinguish Other Foreign Language Proficiency 
Special Pay.--The heading for section 1596 of title 10, United States 
Code, is amended to read as follows:
``Sec. 1596. Foreign language proficiency: special pay for proficiency 
              beneficial for intelligence interests''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 81 of such title is amended by striking the item relating to 
section 1596 and inserting the following:

``1596. Foreign language proficiency: special pay for proficiency 
                            beneficial for intelligence interests.
``1596a. Foreign language proficiency: special pay for proficiency 
                            beneficial for other national security 
                            interests.''.

SEC. 1103. INCREASED NUMBER OF POSITIONS AUTHORIZED FOR THE DEFENSE 
              INTELLIGENCE SENIOR EXECUTIVE SERVICE.

    Section 1606(a) of title 10, United States Code, is amended by 
striking ``492'' and inserting ``517''.

SEC. 1104. EXTENSION OF AUTHORITY FOR TUITION REIMBURSEMENT AND 
              TRAINING FOR CIVILIAN EMPLOYEES IN THE DEFENSE 
              ACQUISITION WORKFORCE.

    Section 1745(a) of title 10, United States Code, is amended by 
striking ``September 30, 2001'' in the second sentence and inserting 
``September 30, 2010''.

SEC. 1105. WORK SAFETY DEMONSTRATION PROGRAM.

    (a) Establishment.--The Secretary of Defense shall carry out a 
defense employees work safety demonstration program.
    (b) Private Sector Work Safety Models.--Under the demonstration 
program, the Secretary shall--
            (1) adopt for use in the workplace of employees of the 
        Department of Defense such work safety models used by employers 
        in the private sector that the Secretary considers as being 
        representative of the best work safety practices in use by 
        private sector employers; and
            (2) determine whether the use of those practices in the 
        Department of Defense improves the work safety record of 
        Department of Defense employees.
    (c) Sites.--(1) The Secretary shall carry out the demonstration 
program--
            (A) at not fewer than two installations of each of the 
        Armed Forces (other than the Coast Guard), for employees of the 
        military department concerned; and
            (B) in at least two Defense Agencies (as defined in section 
        101(a)(11) of title 10, United States Code).
    (2) The Secretary shall select the installations and Defense 
Agencies from among the installations and Defense Agencies listed in 
the Federal Worker 2000 Presidential Initiative.
    (d) Period for Program.--The demonstration program shall begin not 
later than 180 days after the date of the enactment of this Act and 
shall terminate on September 30, 2002.
    (e) Reports.--(1) The Secretary of Defense shall submit an interim 
report on the demonstration program to the Committees on Armed Services 
of the Senate and the House of Representatives not later than December 
1, 2001. The interim report shall contain, at a minimum, for each site 
of the demonstration program the following:
            (A) A baseline assessment of the lost workday injury rate.
            (B) A comparison of the lost workday injury rate for fiscal 
        year 2000 with the lost workday injury rate for fiscal year 
        1999.
            (C) The direct and indirect costs associated with all lost 
        workday injuries.
    (2) The Secretary of Defense shall submit a final report on the 
demonstration program to the Committees on Armed Services of the Senate 
and the House of Representatives not later than December 1, 2002. The 
final report shall contain, at a minimum, for each site of the 
demonstration program the following:
            (A) The Secretary's determination on the issue stated in 
        subsection (b)(2).
            (B) A comparison of the lost workday injury rate under the 
        program with the baseline assessment of the lost workday injury 
        rate.
            (C) The lost workday injury rate for fiscal year 2002.
            (D) A comparison of the direct and indirect costs 
        associated with all lost workday injuries for fiscal year 2002 
        with the direct and indirect costs associated with all lost 
        workday injuries for fiscal year 2001.
    (f) Funding.--Of the amount authorized to be appropriated under 
section 301(5), $5,000,000 shall be available for the demonstration 
program under this section.

SEC. 1106. EMPLOYMENT AND COMPENSATION OF EMPLOYEES FOR TEMPORARY 
              ORGANIZATIONS ESTABLISHED BY LAW OR EXECUTIVE ORDER.

    (a) In General.--Chapter 31 of title 5, United States Code, is 
amended by adding at the end the following new subchapter:

    ``SUBCHAPTER IV--TEMPORARY ORGANIZATIONS ESTABLISHED BY LAW OR 
                            EXECUTIVE ORDER

``Sec. 3161. Employment and compensation of employees
    ``(a) Definition of Temporary Organization.--For the purposes of 
this subchapter, the term `temporary organization' means a commission, 
committee, board, or other organization that--
            ``(1) is established by law or Executive order for a 
        specific period not in excess of 3 years for the purpose of 
        performing a specific study or other project; and
            ``(2) is terminated upon the completion of the study or 
        project or upon the occurrence of a condition related to the 
        completion of the study or project.
    ``(b) Employment Authority.--(1) Notwithstanding the provisions of 
chapter 51 of this title, the head of an Executive agency may appoint 
persons to positions of employment in a temporary organization in such 
numbers and with such skills as are necessary for the performance of 
the functions required of a temporary organization.
    ``(2) The period of an appointment under paragraph (1) may not 
exceed three years, except that under regulations prescribed by the 
Office of Personnel Management the period of appointment may be 
extended for up to an additional two years.
    ``(3) The positions of employment in a temporary organization are 
in the excepted service of the civil service.
    ``(c) Detail Authority.--Upon the request of the head of a 
temporary organization, the head of any department or agency of the 
Government may detail, on a nonreimbursable basis, any personnel of the 
department or agency to that organization to assist in carrying out its 
duties.
    ``(d) Compensation.--(1) The rate of basic pay for an employee 
appointed under subsection (b) shall be established under regulations 
prescribed by the Office of Personnel Management without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of this 
title.
    ``(2) The rate of basic pay for the chairman, a member, an 
executive director, a staff director, or another executive level 
position of a temporary organization may not exceed the maximum rate of 
basic pay established for the Senior Executive Service under section 
5382 of this title.
    ``(3) Except as provided in paragraph (4), the rate of basic pay 
for other positions in a temporary organization may not exceed the 
maximum rate of basic pay for grade GS-15 of the General Schedule under 
section 5332 of this title.
    ``(4) The rate of basic pay for a senior staff position of a 
temporary organization may, in a case determined by the head of the 
temporary organization as exceptional, exceed the maximum rate of basic 
pay authorized under paragraph (3), but may not exceed the maximum rate 
of basic pay authorized for an executive level position under paragraph 
(2).
    ``(5) In this subsection, the term `basic pay' includes locality 
pay provided for under section 5304 of this title.
    ``(e) Travel Expenses.--An employee of a temporary organization, 
whether employed on a full-time or part-time basis, may be allowed 
travel and transportation expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies under 
subchapter I of chapter 57 of this title, while traveling away from the 
employee's regular place of business in the performance of services for 
the temporary organization.
    ``(f) Benefits.--(1) An employee appointed under subsection (b) 
shall be afforded the same benefits and entitlements as are provided 
other employees under subpart G of part III of this title, except that 
a full-time employee shall be eligible for life insurance under chapter 
87 of this title and health benefits under chapter 89 of this title 
immediately upon appointment to the position of full-time employment 
without regard to the duration of the temporary organization or of the 
appointment to that position of the temporary organization.
    ``(2) Until an employee of a temporary organization has completed 
one year of continuous service in the civil service, there shall be 
withheld from the employee's pay the following:
            ``(A) In the case of an employee insured pursuant to 
        paragraph (1) by an insurance policy purchased by the Office 
        under chapter 87 of this title, the amount equal to the amount 
        of the Government contribution under section 8708 of this 
        title, as well as the amount required to be withheld from the 
        pay of the employee under section 8707 of this title, all of 
        which shall be deposited in the Treasury of the United States 
        to the credit of the Employees' Life Insurance Fund referred to 
        in section 8714 of this title.
            ``(B) In the case of an employee participating pursuant to 
        paragraph (1) in a Federal Employees Health Benefits plan under 
        chapter 89 of this title, the amount equal to the amount of the 
        Government contribution under section 8906 of this title, as 
        well as the amount required to be withheld from the pay of the 
        employee under section 8906 of this title, all of which shall 
        be paid into the Employees Health Benefits Fund referred to in 
        section 8909 of this title.
    ``(3) No contribution shall be made by the United States for an 
employee under section 8708 or 8906 of this title for any period for 
which subparagraph (A) or (B), respectively, of paragraph (2) applies 
to the employee.
    ``(g) Return Rights.--An employee serving under a career or career 
conditional appointment or the equivalent in an agency who transfers to 
or converts to an appointment in a temporary organization with the 
consent of the head of the agency is entitled to be returned to the 
employee's former position or a position of like seniority, status, and 
pay without grade or pay retention in the agency if the employee--
            ``(1) is being separated from the temporary organization 
        for reasons other than misconduct, neglect of duty, or 
        malfeasance; and
            ``(2) applies for return not later than 30 days before the 
        earlier of--
                    ``(A) the date of the termination of the employment 
                in the temporary organization; or
                    ``(B) the date of the termination of the temporary 
                organization.
    ``(h) Temporary and Intermittent Services.--The head of a temporary 
organization may procure for the organization temporary and 
intermittent services under section 3109(b) of this title.
    ``(i) Acceptance of Volunteer Services.--(1) The head of a 
temporary organization may accept volunteer services appropriate to the 
duties of the organization without regard to section 1342 of title 31.
    ``(2) Donors of voluntary services accepted for a temporary 
organization under this subsection may include the following:
            ``(A) Advisors.
            ``(B) Experts.
            ``(C) Members of the commission, committee, board, or other 
        temporary organization, as the case may be.
            ``(D) A person performing services in any other capacity 
        determined appropriate by the head of the temporary 
        organization.
    ``(3) The head of the temporary organization--
            ``(A) shall ensure that each person performing voluntary 
        services accepted under this subsection is notified of the 
        scope of the voluntary services accepted;
            ``(B) shall supervise the volunteer to the same extent as 
        employees receiving compensation for similar services; and
            ``(C) shall ensure that the volunteer has appropriate 
        credentials or is otherwise qualified to perform in each 
        capacity for which the volunteer's services are accepted.
    ``(4) A person providing volunteer services accepted under this 
subsection shall be considered an employee of the Federal Government in 
the performance of those services for the purposes of the following 
provisions of law:
            ``(A) Chapter 81 of this title, relating to compensation 
        for work-related injuries.
            ``(B) Chapter 171 of title 28, relating to tort claims.
            ``(C) Chapter 11 of title 18, relating to conflicts of 
        interest.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

    ``SUBCHAPTER IV--TEMPORARY ORGANIZATIONS ESTABLISHED BY LAW OR 
                            EXECUTIVE ORDER

``Sec.
``3161. Employment and compensation of employees.''.

SEC. 1107. EXTENSION OF AUTHORITY FOR VOLUNTARY SEPARATIONS IN 
              REDUCTIONS IN FORCE.

    Section 3502(f)(5) of title 5, United States Code, is amended by 
striking ``September 30, 2001'' and inserting ``September 30, 2005''.

SEC. 1108. ELECTRONIC MAINTENANCE OF PERFORMANCE APPRAISAL SYSTEMS.

    Section 4302 of title 5, United States Code, is amended by adding 
at the end the following:
    ``(c) The head of an agency may administer and maintain its 
performance appraisal systems electronically in accordance with 
regulations which the Office shall prescribe.''.

SEC. 1109. APPROVAL AUTHORITY FOR CASH AWARDS IN EXCESS OF $10,000.

    Section 4502 of title 5, United States Code, is amended by adding 
at the end the following:
    ``(f) The Secretary of Defense may grant a cash award under 
subsection (b) of this section without regard to the requirements for 
certification and approval provided in that subsection.''.

SEC. 1110. LEAVE FOR CREWS OF CERTAIN VESSELS.

    Section 6305(c)(2) of title 5, United States Code, is amended to 
read as follows:
            ``(2) may not be made the basis for a lump-sum payment, 
        except that civil service mariners of the Military Sealift 
        Command on temporary promotion aboard ship may be paid the 
        difference between their temporary and permanent rates of pay 
        for leave accrued and not otherwise used during the temporary 
        promotion upon the expiration or termination of the temporary 
        promotion; and''.

SEC. 1111. LIFE INSURANCE FOR EMERGENCY ESSENTIAL DEPARTMENT OF DEFENSE 
              EMPLOYEES.

    Section 8702 of title 5, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) Notwithstanding a notice previously given under subsection 
(b), an employee of the Department of Defense who is designated as an 
emergency essential employee under section 1580 of title 10 shall be 
insured if the employee, within 60 days after the date of the 
designation, elects to be insured under a policy of insurance under 
this chapter. An election under the preceding sentence shall be 
effective when provided to the Office in writing, in the form 
prescribed by the Office, within such 60-day period.''.

SEC. 1112. CIVILIAN PERSONNEL SERVICES PUBLIC-PRIVATE COMPETITION PILOT 
              PROGRAM.

    (a) Program Required.--The Secretary of Defense shall establish a 
pilot program to assess the extent to which the effectiveness and 
efficiency of the performance of civilian personnel services for the 
Department of Defense could be increased by conducting competitions for 
the performance of such services between the public and private 
sectors. The pilot program under this section shall be known as the 
``Civilian Personnel Services Public-Private Competition Program''.
    (b) Civilian Personnel Regions To Be Included.--(1) The pilot 
program shall be carried out in four civilian personnel regions, as 
follows:
            (A) In one region, for the civilian personnel services for 
        the Department of the Army.
            (B) In two regions, for the civilian personnel services for 
        the Department of the Navy.
            (C) In one region, for the civilian personnel services for 
        any military department or for any organization within the 
        Department of Defense that is not within a military department.
    (2) The Secretary shall designate the regions to participate in the 
pilot program. The Secretary shall select the regions for designation 
from among the regions where the conduct of civilian personnel 
operations are most conducive to public-private competition. In making 
the selections, the Secretary shall consult with the Secretary of the 
Army, the Secretary of the Navy, and the Director of Washington 
Headquarters Services.
    (c) Right of First Refusal for Displace Federal Employees.--The 
Secretary of Defense shall take the actions necessary to ensure that, 
in the case of a conversion to private sector performance under the 
pilot program, employees of the United States who are displaced by the 
conversion have the right of first refusal for jobs for which they are 
qualified that are created by the conversion.
    (d) Duration and Coverage of the Program.--The pilot program shall 
be carried out during the period beginning on October 1, 2000, and 
ending on December 31, 2004.
    (e) Authority To Expand Program.--The Secretary may expand the 
pilot program to include other regions.
    (f) Report.--Not later than February 1, 2005, the Secretary shall 
submit a report on the pilot program to the Committees on Armed 
Services of the Senate and the House of Representatives. The report 
shall include the following:
            (1) The Secretary's assessment of the value of the actions 
        taken in the administration of the pilot program for increasing 
        the effectiveness and efficiency of the performance of civilian 
        personnel services for the Department of Defense in the regions 
        covered by the pilot program, as compared to the performance of 
        civilian personnel services for the department in regions not 
        included in the pilot program.
            (2) Any recommendations for legislation or other action 
        that the Secretary considers appropriate to increase the 
        effectiveness and efficiency of the performance of civilian 
        personnel services for the Department of Defense in all 
        regions.

SEC. 1113. EXTENSION, EXPANSION, AND REVISION OF AUTHORITY FOR 
              EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC AND 
              TECHNICAL PERSONNEL.

    (a) Extension of Program.--Section 1101 of the Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999 (Public Law 
105-261; 112 Stat. 2139; 5 U.S.C. 3104 note) is amended--
            (1) in subsection (a), by striking ``the 5-year period 
        beginning on the date of the enactment of this Act'' and 
        inserting ``the program period specified in subsection 
        (e)(1)'';
            (2) in subsection (e), by striking paragraph (1) and 
        inserting the following:
    ``(1) The period for carrying out the program authorized under this 
section begins on October 17, 1998, and ends on October 16, 2005.''; 
and
            (3) in subsection (f), by striking ``on the day before the 
        termination of the program'' and inserting ``on the last day of 
        the program period specified in subsection (e)(1)''.
    (b) Expansion of Scope.--Subsection (a) of such section, as amended 
by subsection (a)(1) of this section, is further amended by inserting 
before the period at the end the following: ``and research and 
development projects administered by laboratories designated for the 
program by the Secretary from among the laboratories of each of the 
military departments''.
    (c) Limitation on Number of Appointments.--Subsection (b)(1) of 
such section is amended to read as follows:
            ``(1) without regard to any provision of title 5, United 
        States Code, governing the appointment of employees in the 
        civil service, appoint scientists and engineers from outside 
        the civil service and uniformed services (as such terms are 
        defined in section 2101 of such title) to--
                    ``(A) not more than 40 scientific and engineering 
                positions in the Defense Advanced Research Projects 
                Agency;
                    ``(B) not more than 40 scientific and engineering 
                positions in the designated laboratories of each of the 
                military services; and
                    ``(C) not more than a total of 10 scientific and 
                engineering positions in the National Imagery and 
                Mapping Agency and the National Security Agency.''.
    (d) Rates of Pay for Appointees.--Subsection (b)(2) of such section 
is amended by inserting after ``United States Code,'' the following: 
``as increased by locality-based comparability payments under section 
5304 of such title,''.
    (e) Commensurate Extension of Requirement for Annual Report.--
Subsection (g) of such section is amended by striking ``2004'' and 
inserting ``2006''.
    (f) Amendment of Section Heading.--The heading for such section is 
amended to read as follows:

``SEC. 1101. EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC AND 
              TECHNICAL PERSONNEL.''.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

SEC. 1201. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN 
              COUNTRIES.

    (a) Authority To Transfer.--
            (1) Australia.--The Secretary of the Navy is authorized to 
        transfer to the Government of Australia the ``KIDD'' class 
        guided missile destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), 
        SCOTT (DDG 995), and CHANDLER (DDG 996). Each such transfer 
        shall be on a combined lease-sale basis under sections 61 and 
        21 of the Arms Export Control Act (22 U.S.C. 2796 and 2761).
            (2) Brazil.--The Secretary of the Navy is authorized to 
        transfer to the Government of Brazil the ``THOMASTON'' class 
        dock landing ships ALAMO (LSD 33) and HERMITAGE (LSD 34), and 
        the ``GARCIA'' class frigates BRADLEY (FF 1041), DAVIDSON (FF 
        1045), SAMPLE (FF 1048) and ALBERT DAVID (FF 1050). Each such 
        transfer shall be on a grant basis under section 516 of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
            (3) Chile.--The Secretary of the Navy is authorized to 
        transfer to the Government of Chile the ``OLIVER HAZARD PERRY'' 
        class guided missile frigates WADSWORTH (FFG 9), and ESTOCIN 
        (FFG 15). Each such transfer shall be on a combined lease-sale 
        basis under sections 61 and 21 of the Arms Export Control Act 
        (22 U.S.C. 2796 and 2761).
            (4) Egypt.--The Secretary of the Navy is authorized to 
        transfer to the Government of Egypt the ``DIXIE'' class 
        destroyer tender YOSEMITE (AD 19). The transfer shall be on a 
        grant basis under section 516 of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2321j).
            (5) Greece.--The Secretary of the Navy is authorized to 
        transfer to the Government of Greece the ``KNOX'' class 
        frigates VREELAND (FF 1068) and TRIPPE (FF 1075). Each such 
        transfer shall be on a grant basis under section 516 of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
            (6) Turkey.--(A) The Secretary of the Navy is authorized to 
        transfer to the Government of Turkey the ``OLIVER HAZARD 
        PERRY'' class guided missile frigates JOHN A. MOORE (FFG 19) 
        and FLATLEY (FFG 21). Each transfer under the authority of this 
        subsection shall be on a combined lease-sale basis under 
        sections 61 and 21 of the Arms Export Control Act (22 U.S.C. 
        2796 and 2761).
            (B) The authority provided under subparagraph (A) is in 
        addition to the authority provided under section 1018(a)(9) of 
        Public Law 106-65 (113 Stat. 745) for the Secretary of the Navy 
        to transfer such vessels to the Government of Turkey on a sale 
        basis under section 21 of the Arms Export Control Act (22 
        U.S.C. 2761).
    (b) Grants Not Counted in Annual Total of Transferred Excess 
Defense Articles.--The value of a vessel transferred to another country 
on a grant basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j) pursuant to authority provided by subsection (a) 
shall not be counted for the purposes of subsection (g) of that section 
in the aggregate value of excess defense articles transferred to 
countries under that section in any fiscal year.
    (c) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by this section shall be 
charged to the recipient (notwithstanding section 516(e)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)) in the case of a 
transfer authorized to be made on a grant basis under subsection (a)).
    (d) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the Secretary of the Navy shall require, as 
a condition of the transfer of a vessel under this section, that the 
country to which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel joins the 
naval forces of that country, performed at a shipyard located in the 
United States, including a United States Navy shipyard.
    (e) Conditions Relating to Combined Lease-Sale Transfers.--A 
transfer of a vessel on a combined lease-sale basis authorized by 
subsection (a) shall be made in accordance with the following 
requirements:
            (1) The Secretary of the Navy may initially transfer the 
        vessel by lease, with lease payments suspended for the term of 
        the lease, if the country entering into the lease for the 
        vessel simultaneously enters into a foreign military sales 
        agreement for the transfer of title to the vessel.
            (2) The Secretary may not deliver to the purchasing country 
        title to the vessel until the purchase price of the vessel 
        under such a foreign military sales agreement is paid in full.
            (3) Upon payment of the purchase price in full under such a 
        sales agreement and delivery of title to the recipient country, 
        the Secretary shall terminate the lease.
            (4) If the purchasing country fails to make full payment of 
        the purchase price in accordance with the sales agreement by 
        the date required under the sales agreement--
                    (A) the sales agreement shall be immediately 
                terminated;
                    (B) the suspension of lease payments under the 
                lease shall be vacated; and
                    (C) the United States shall be entitled to retain 
                all funds received on or before the date of the 
                termination under the sales agreement, up to the amount 
                of the lease payments due and payable under the lease 
                and all other costs required by the lease to be paid to 
                that date.
            (5) If a sales agreement is terminated pursuant to 
        paragraph (4), the United States shall not be required to pay 
        any interest to the recipient country on any amount paid to the 
        United States by the recipient country under the sales 
        agreement and not retained by the United States under the 
        lease.
    (f) Authorization of Appropriations for Costs of Lease-Sale 
Transfers.--There is hereby authorized to be appropriated into the 
Defense Vessels Transfer Program Account such sums as may be necessary 
for paying the costs (as defined in section 502 of the Congressional 
Budget Act of 1974 (2 U.S.C. 661a)) of the lease-sale transfers 
authorized by subsection (a). Amounts so appropriated shall be 
available only for the purpose of paying those costs.
    (g) Expiration of Authority.--The authority provided under 
subsection (a) shall expire at the end of the two-year period beginning 
on the date of the enactment of this Act.

SEC. 1202. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND 
              MONITOR IRAQI WEAPONS ACTIVITIES.

    (a) Limitation on Amount of Assistance in Fiscal Year 2001.--The 
total amount of the assistance for fiscal year 2001 that is provided by 
the Secretary of Defense under section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a) as activities of the 
Department of Defense in support of activities under that Act may not 
exceed $15,000,000.
    (b) Extension of Authority To Provide Assistance.--Subsection (f) 
of section 1505 of the Weapons of Mass Destruction Control Act of 1992 
(22 U.S.C. 5859a) is amended by striking ``2000'' and inserting 
``2001''.

SEC. 1203. REPEAL OF RESTRICTION PREVENTING COOPERATIVE AIRLIFT SUPPORT 
              THROUGH ACQUISITION AND CROSS-SERVICING AGREEMENTS.

    Section 2350c of title 10, United States Code, is amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsection (e) as subsection (d).

SEC. 1204. WESTERN HEMISPHERE INSTITUTE FOR PROFESSIONAL EDUCATION AND 
              TRAINING.

    (a) In General.--Chapter 108 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 2166. Western Hemisphere Institute for Professional Education 
              and Training
    ``(a) Establishment and Administration.--(1) The Secretary of 
Defense may operate an education and training facility for the purpose 
set forth in subsection (b). The facility may be called the Western 
Hemisphere Institute for Professional Education and Training.
    ``(2) The Secretary may designate the Secretary of a military 
department as the Department of Defense executive agent for carrying 
out the responsibilities of the Secretary of Defense under this 
section.
    ``(b) Purpose.--The purpose of the Institute is to provide 
professional education and training to eligible personnel of the 
Western Hemisphere within the context of the democratic principles set 
forth in the Charter of the Organization of American States and 
supporting agreements, while fostering mutual knowledge, transparency, 
confidence, and cooperation among the participating nations and 
promoting democratic values, respect for human rights, and knowledge 
and understanding of United States customs and traditions.
    ``(c) Eligible Personnel.--(1) Subject to paragraph (2), personnel 
of the Western Hemisphere are eligible for education and training at 
the Institute as follows:
            ``(A) Military personnel.
            ``(B) Law enforcement personnel.
            ``(C) Civilians, whether or not employed by a government of 
        the Western Hemisphere.
    ``(2) The selection of foreign personnel for education or training 
at the Institute is subject to the approval of the Secretary of State.
    ``(d) Curriculum.--(1) The curriculum of the Institute shall 
include mandatory instruction for each student, for at least 8 hours, 
on human rights, the rule of law, due process, civilian control of the 
military, and the role of the military in a democratic society.
    ``(2) The curriculum may include instruction and other educational 
and training activities on the following:
            ``(A) Leadership development.
            ``(B) Counterdrug operations.
            ``(C) Peace support operations.
            ``(D) Disaster relief.
            ``(E) Any other matters that the Secretary determines 
        appropriate.
    ``(e) Board of Visitors.--(1) There shall be a Board of Visitors 
for the Institute. The Board shall be composed of the following:
            ``(A) Two members of the Senate designated by the President 
        pro tempore of the Senate.
            ``(B) Two members of the House of Representatives 
        designated by the Speaker of the House of Representatives.
            ``(C) Six persons designated by the Secretary of Defense 
        including, to the extent practicable, at least one member from 
        academia, one member from the religious community, and one 
        member from the human rights community.
            ``(D) One person designated by the Secretary of State.
            ``(E) For each of the armed forces, the senior military 
        officer responsible for training and doctrine or a designee of 
        that officer.
            ``(F) The Commander in Chief of the United States Southern 
        Command or a designee of that officer.
    ``(2) The members of the Board shall serve for 2 years except for 
the members referred to in subparagraphs (A) and (B) of paragraph (1) 
who may serve until a successor is designated.
    ``(3) A vacancy in a position of membership on the Board shall be 
filled in the same manner as the position was originally filled.
    ``(4) The Board shall meet at least once each year.
    ``(5)(A) The Board shall inquire into the curriculum, instruction, 
physical equipment, fiscal affairs, academic methods, and other matters 
relating to the Institute that the Board decides to consider.
    ``(B) The Board shall review the curriculum of the Institute to 
determine whether--
            ``(i) the curriculum complies with applicable United States 
        laws and regulations;
            ``(ii) the curriculum is consistent with United States 
        policy goals toward Latin America and the Caribbean;
            ``(iii) the curriculum adheres to current United States 
        doctrine; and
            ``(iv) the instruction under the curriculum appropriately 
        emphasizes the matters described in subsection (d)(1).
    ``(6) Not later than 60 days after its annual meeting, the Board 
shall submit to the Secretary of Defense a written report of its action 
and of its views and recommendations pertaining to the Institute.
    ``(7) Members of the Board may not be compensated for service on 
the Board. In the case of officers or employees of the United States 
serving on the Board as part of their official duties, compensation 
paid to the members as officers or employees of the United States shall 
not be considered compensation for service on the Board.
    ``(8) With the approval of the Secretary of Defense, the Board may 
accept and use the services of voluntary and noncompensated advisers 
appropriate to the duties of the Board without regard to section 1342 
of title 31.
    ``(9) Members of the Board and advisers whose services are accepted 
under paragraph (8) shall be allowed travel and transportation 
expenses, including per diem in lieu of subsistence, while away from 
their homes or regular places of business in the performance of 
services for the Board. Allowances under this paragraph shall be 
computed--
            ``(A) in the case of members of the Board who are officers 
        or employees of the United States, at rates authorized for 
        employees of agencies under subchapter I of chapter 57 of title 
        5; and
            ``(B) in the case of other members of the Board and 
        advisers, as authorized under section 5703 of title 5 for 
        employees serving without pay.
    ``(10) The Federal Advisory Committee Act (5 U.S.C. App. 2), other 
than section 14 (relating to termination after two years), shall apply 
to the Board.
    ``(f) Fixed Costs.--The fixed costs of operating and maintaining 
the Institute--
            ``(1) may be paid from funds available to the Army for 
        operation and maintenance; and
            ``(2) may not be paid out of the proceeds of tuition fees 
        charged for professional education and training at the 
        Institute.
    ``(g) Annual Report.--Not later than March 15 of each year, the 
Secretary of Defense shall submit to Congress a detailed report on the 
activities of the Institute during the preceding year. The Secretary 
shall coordinate the preparation of the report with the heads of 
department and agencies of the United States that have official 
interests in the activities of the Institute, as determined by the 
Secretary.''.
    (b) Repeal of Authority for United States Army School of the 
Americas.--Section 4415 of title 10, United States Code, is repealed.
    (c) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 108 of title 10, United States Code, is amended by 
inserting after the item relating to section 2165 the following:

``2166. Western Hemisphere Institute for Professional Education and 
                            Training.''.
    (2) The table of sections at the beginning of chapter 407 of such 
title is amended by striking the item relating to section 4415.

SEC. 1205. BIANNUAL REPORT ON KOSOVO PEACEKEEPING.

    (a) Requirement for Periodic Report.--Beginning on December 1, 
2000, and every six months thereafter, the President shall submit to 
the congressional defense committees, the Committee on Foreign 
Relations of the Senate, and the Committee on International Relations 
of the House of Representatives a report on the contributions of 
European nations and organizations to the peacekeeping operations in 
Kosovo.
    (b) Content of Report.--Each report shall contain detailed 
information on the following:
            (1) The commitments and pledges made by the European 
        Commission, the member nations of the European Union, and the 
        European member nations of the North Atlantic Treaty 
        Organization for reconstruction assistance in Kosovo, 
        humanitarian assistance in Kosovo, the Kosovo Consolidated 
        Budget, police (including special police) for the United 
        Nations international police force for Kosovo, and military 
        personnel for peacekeeping operations in Kosovo.
            (2) The amount of the assistance that has been provided in 
        each category, and the number of police and military personnel 
        that have been deployed to Kosovo, by each such organization or 
        nation.
            (3) The full range of commitments and responsibilities that 
        have been undertaken for Kosovo by the United Nations, the 
        European Union, and the Organization for Security and 
        Cooperation in Europe (OSCE), the progress made by those 
        organizations in fulfilling those commitments and 
        responsibilities, an assessment of the tasks that remain to be 
        accomplished, and an anticipated schedule for completing those 
        tasks.

SEC. 1206. MUTUAL ASSISTANCE FOR MONITORING TEST EXPLOSIONS OF NUCLEAR 
              DEVICES.

    (a) Authority.--Subchapter II of chapter 138 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2350l. Mutual assistance for monitoring test explosions of 
              nuclear devices
    ``(a) Acceptance of Contributions.--(1) The Secretary of Defense 
may accept funds, services, or property from a foreign government, an 
international organization, or any other entity for a purpose described 
in paragraph (2).
    ``(2) Contributions accepted under paragraph (1) may be used only 
for the development, procurement, installation, operation, repair, or 
maintenance of equipment for monitoring test explosions of nuclear 
devices, or for communications relating to the operation of such 
equipment. The equipment may be installed and used on United States 
territory, foreign territory (including Antarctica), or in 
international waters.
    ``(3) Any funds accepted under paragraph (1) shall be deposited in 
an account established by the Secretary for use for the purposes 
described in paragraph (2), and shall be available, without fiscal year 
limitation, for use by Department of Defense officials authorized by 
the Secretary of Defense for contracts, grants, or other forms of 
acquisition for such purposes.
    ``(b) Authority To Provide Monitoring Assistance.--(1) To satisfy 
obligations of the United States to monitor test explosions of nuclear 
devices, the Secretary of Defense may provide a foreign government with 
assistance for the monitoring of such tests, but only in accordance 
with an agreement satisfying the requirements of paragraph (3).
    ``(2) The assistance authorized under paragraph (1) is as follows:
            ``(A) A loan or conveyance of--
                    ``(i) equipment for monitoring test explosions of 
                nuclear devices; and
                    ``(ii) associated equipment.
            ``(B) The installation of such equipment on foreign 
        territory or in international waters.
    ``(3) Assistance for a foreign government under this subsection 
shall be subject to an agreement entered into between the United States 
and the foreign government that ensures the following:
            ``(A) That the Secretary has timely access to data that is 
        produced, collected, or generated by equipment loaned or 
        conveyed to the foreign government under the agreement.
            ``(B) That the Secretary--
                    ``(i) has access to that equipment for purposes of 
                inspecting, testing, maintaining, repairing, or 
                replacing the equipment; and
                    ``(ii) may take such actions as are necessary to 
                meet United States obligations to inspect, test, 
                maintain, repair, or replace the equipment.
    ``(c) Delegation.--The Secretary may delegate authority to carry 
out subsection (a) or (b) only to the Under Secretary of Defense for 
Acquisition, Technology, and Logistics or the Secretary of the Air 
Force. Authority so delegated may be further delegated.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter II of such chapter is amended by inserting after the item 
relating to section 2350k the following new item:

``2350l. Mutual assistance for monitoring test explosions of nuclear 
                            devices.''.

SEC. 1207. ANNUAL REPORT ON ACTIVITIES AND ASSISTANCE UNDER COOPERATIVE 
              THREAT REDUCTION PROGRAMS.

    (a) Annual Report Consolidating Disparate Report Requirements.--(1) 
Chapter 23 of title 10, United States Code, is amended by adding at the 
end the following new section:
``Sec. 488. Annual report on activities and assistance under 
              Cooperative Threat Reduction programs
    ``(a) Annual Report.--In any year in which the budget of the 
President under section 1105 of title 31 for the fiscal year beginning 
in such year requests funds for the Department of Defense for 
assistance or activities under Cooperative Threat Reduction programs 
with the states of the former Soviet Union, the Secretary of Defense 
shall submit to Congress a report on activities and assistance during 
the preceding fiscal year under Cooperative Threat Reduction programs 
setting forth the matters in subsection (c).
    ``(b) Deadline for Report.--The report under subsection (a) shall 
be submitted not later than the first Monday in February of a year.
    ``(c) Matters To Be Included.--The report under subsection (a) in a 
year shall set forth the following:
            ``(1) An estimate of the total amount that will be required 
        to be expended by the United States in order to achieve the 
        objectives of the Cooperative Threat Reduction programs.
            ``(2) A five-year plan setting forth the amount of funds 
        and other resources proposed to be provided by the United 
        States for Cooperative Threat Reduction programs over the term 
        of the plan, including the purpose for which such funds and 
        resources will be used, and to provide guidance for the 
        preparation of annual budget submissions with respect to 
        Cooperative Threat Reduction programs.
            ``(3) A description of the Cooperative Threat Reduction 
        activities carried out during the fiscal year ending in the 
        year preceding the year of the report, including--
                    ``(A) the amounts notified, obligated, and expended 
                for such activities and the purposes for which such 
                amounts were notified, obligated, and expended for such 
                fiscal year and cumulatively for Cooperative Threat 
                Reduction programs;
                    ``(B) a description of the participation, if any, 
                of each department and agency of the United States 
                Government in such activities;
                    ``(C) a description of such activities, including 
                the forms of assistance provided;
                    ``(D) a description of the United States private 
                sector participation in the portion of such activities 
                that were supported by the obligation and expenditure 
                of funds for Cooperative Threat Reduction programs; and
                    ``(E) such other information as the Secretary of 
                Defense considers appropriate to inform Congress fully 
                of the operation of Cooperative Threat Reduction 
                programs and activities, including with respect to 
                proposed demilitarization or conversion projects, 
                information on the progress toward demilitarization of 
                facilities and the conversion of the demilitarized 
                facilities to civilian activities.
            ``(4) A description of the audits, examinations, and other 
        efforts, such as on-site inspections, conducted by the United 
        States during the fiscal year ending in the year preceding the 
        year of the report to ensure that assistance provided under 
        Cooperative Threat Reduction programs is fully accounted for 
        and that such assistance is being used for its intended 
        purpose, including a description of--
                    ``(A) if such assistance consisted of equipment, a 
                description of the current location of such equipment 
                and the current condition of such equipment;
                    ``(B) if such assistance consisted of contracts or 
                other services, a description of the status of such 
                contracts or services and the methods used to ensure 
                that such contracts and services are being used for 
                their intended purpose;
                    ``(C) a determination whether the assistance 
                described in subparagraphs (A) and (B) has been used 
                for its intended purpose; and
                    ``(D) a description of the audits, examinations, 
                and other efforts planned to be carried out during the 
                fiscal year beginning in the year of the report to 
                ensure that Cooperative Threat Reduction assistance 
                provided during such fiscal year is fully accounted for 
                and is used for its intended purpose.
            ``(5) A current description of the tactical nuclear weapons 
        arsenal of Russia, including--
                    ``(A) an estimate of the current types, numbers, 
                yields, viability, locations, and deployment status of 
                the nuclear warheads in that arsenal;
                    ``(B) an assessment of the strategic relevance of 
                such warheads;
                    ``(C) an assessment of the current and projected 
                threat of theft, sale, or unauthorized use of such 
                warheads; and
                    ``(D) a summary of past, current, and planned 
                United States efforts to work cooperatively with Russia 
                to account for, secure, and reduce Russia's stockpile 
                of tactical nuclear warheads and associated fissile 
                materials.
    ``(d) Input of DCI.--The Director of Central Intelligence shall 
submit to the Secretary of Defense the views of the Director on any 
matters covered by subsection (b)(5) in a report under this section. 
Such views shall be included in such report as a classified annex to 
such report.
    ``(e) Comptroller General Assessment.--Not later than 60 days after 
the date on which a report is submitted to Congress under subsection 
(a), the Comptroller General shall submit to Congress a report setting 
forth the Comptroller General's assessment of the report under 
subsection (a), including any recommendations regarding the report 
under subsection (a) that the Comptroller General considers 
appropriate.''.
    (2) The table of sections at the beginning of chapter 23 of such 
title is amended by adding at the end the following new item:

``488. Annual report on activities and assistance under Cooperative 
                            Threat Reduction programs.''.
    (b) First Report.--The first report submitted under section 488 of 
title 10, United States Code, as added by subsection (a), shall be 
submitted in 2002.
    (c) Repeal of Superseded Reporting Requirements.--(1) The following 
provisions of law are repealed:
            (A) Section 1207 of the Cooperative Threat Reduction Act of 
        1994 (title XII of Public Law 103-160; 107 Stat. 1782; 22 
        U.S.C. 5956), relating to semiannual reports on Cooperative 
        Threat Reduction.
            (B) Section 1203 of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2882), 
        relating to a report accounting for United States for 
        Cooperative Threat Reduction.
            (C) Section 1205 of the National Defense Authorization Act 
        for Fiscal Year 1995 (108 Stat. 2883; 10 U.S.C. 5952 note), 
        relating to multiyear planning and Allied support for 
        Cooperative Threat Reduction.
            (D) Section 1206 of the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106; 22 U.S.C. 5955 note), 
        relating to accounting for United States assistance for 
        Cooperative Threat Reduction.
            (E) Section 1307 of the National Defense Authorization Act 
        for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 795), 
        relating to a limitation on use of funds for Cooperative Threat 
        Reduction pending submittal of a multiyear plan.
    (2) Section 1312 of the National Defense Authorization Act for 
Fiscal Year 2000 (113 Stat. 796; 22 U.S.C. 5955 note), relating to 
Russian nonstrategic nuclear arms, is amended--
            (A) by striking ``(a) Sense of Congress.--''; and
            (B) by striking subsections (b) and (c).

SEC. 1208. LIMITATION ON USE OF FUNDS FOR CONSTRUCTION OF A RUSSIAN 
              FACILITY FOR THE DESTRUCTION OF CHEMICAL WEAPONS.

    Section 1305 of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 794; 22 U.S.C. 5952 note) is 
amended to read as follows:

``SEC. 1305. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS 
              DESTRUCTION.

    ``(a) Limitation.--No fiscal year 2000 Cooperative Threat Reduction 
funds, and no funds appropriated for Cooperative Threat Reduction 
programs after the date of the enactment of this Act, may be obligated 
or expended for any fiscal year for the purpose of the construction of 
the Shchuch'ye chemical weapons destruction facility in Russia before 
the date that is 30 days after the Secretary of Defense certifies in 
writing to the Committees on Armed Services of the Senate and the House 
of Representatives for that fiscal year that each of the following 
conditions has been met:
            ``(1) That the government of the Russian Federation has 
        agreed to provide at least $25,000,000 annually for the 
        construction support and operation of the facility to destroy 
        chemical weapons and for the support and maintenance of the 
        facility for that purpose for each year of the entire operating 
        life-cycle of the facility.
            ``(2) That the government of the Russian Federation has 
        agreed to utilize the facility to destroy the remaining four 
        stockpiles of nerve agents, which are located at Kisner, 
        Pochep, Leonidovka, and Maradykovsky.
            ``(3) That the United States has obtained multiyear 
        commitments from governments of other countries to donate funds 
        for the support of essential social infrastructure projects for 
        Shchuch'ye in sufficient amounts to ensure that the projects 
        are adequately maintained during the entire operating life-
        cycle of the facility.
            ``(4) That Russia has agreed to destroy its chemical 
        weapons production facilities at Volgograd and Novocheboksark.
    ``(b) Timing of Certifications.--The certification under subsection 
(a) for any fiscal year shall be submitted prior to the obligation of 
funds in such fiscal year for the purpose specified in that 
subsection.''.

SEC. 1209. LIMITATION ON USE OF FUNDS FOR ELIMINATION OF WEAPONS GRADE 
              PLUTONIUM PROGRAM.

    Of the amounts authorized to be appropriated by this Act for fiscal 
year 2001 for the Elimination of Weapons Grade Plutonium Program, not 
more than 50 percent of such amounts may be obligated or expended for 
the program in fiscal year 2001 until 30 days after the date on which 
the Secretary of Defense submits to the Committees on Armed Services of 
the Senate and House of Representatives a report on an agreement 
between the United States Government and the Government of the Russian 
Federation regarding a new option selected for the shut down or 
conversion of the reactors of the Russian Federation that produce 
weapons grade plutonium, including--
            (1) the new date on which such reactors will cease 
        production of weapons grade plutonium under such agreement by 
        reason of the shut down or conversion of such reactors; and
            (2) any cost-sharing arrangements between the United States 
        Government and the Government of the Russian Federation in 
        undertaking activities under such agreement.

   TITLE XIII--NAVY ACTIVITIES ON THE ISLAND OF VIEQUES, PUERTO RICO

SEC. 1301. ASSISTANCE FOR ECONOMIC GROWTH ON VIEQUES.

    (a) Authority.--The President may provide economic assistance under 
this section for the people and communities of the island of Vieques.
    (b) Maximum Amount.--The total amount of economic assistance 
provided under this section may, subject to section 1303(b), be any 
amount up to $40,000,000.

SEC. 1302. REQUIREMENT FOR REFERENDUM ON CONTINUATION OF NAVY TRAINING.

    (a) Referendum.--
            (1) Requirement.--The President shall, except as provided 
        in paragraph (2), provide for a referendum to be conducted on 
        the island of Vieques to determine by a majority of the votes 
        cast in the referendum by the Vieques electorate whether the 
        people of Vieques approve or disapprove of the continuation of 
        the conduct of live-fire training, and any other types of 
        training, by the Armed Forces at the Navy's training sites on 
        the island on the conditions described in subsection (d).
            (2) Exception.--If the Chief of Naval Operations and the 
        Commandant of the Marine Corps jointly submit to the 
        congressional defense committees, after the date of the 
        enactment of this Act and before the date set forth in 
        subsection (c), their certification that the Vieques Naval 
        Training Range is no longer needed for training by the Navy and 
        the Marine Corps, then the requirement for a referendum under 
        paragraph (1) shall cease to be effective on the date on which 
        the certification is submitted.
    (b) Prohibition of Other Propositions.--In a referendum under this 
section, no proposition or option may be presented as an alternative to 
the propositions of approval and of disapproval of the continuation of 
the conduct of training as described in subsection (a)(1).
    (c) Time for Referendum.--A referendum required under this section 
shall be held on May 1, 2001, or within 270 days before such date or 
270 days after such date. The Secretary of the Navy shall publicize the 
date set for the referendum 90 days before that date.
    (d) Required Training Conditions.--For the purposes of a referendum 
under this section, the conditions for the continuation of the conduct 
of training are those that are proposed by the Secretary of the Navy 
and publicized on the island of Vieques in connection with, and for a 
reasonable period in advance of, the referendum. The conditions shall 
include the following:
            (1) Live-fire training.--A condition that the training may 
        include live-fire training.
            (2) Maximum annual days of use.--A condition that the 
        training may be conducted on not more than 90 days each year.
    (e) Proclamation of Outcome.--Promptly after a referendum is 
completed under this section, the President shall determine, and issue 
a proclamation declaring, the outcome of the referendum. The 
President's determination shall be final.
    (f) Vieques Electorate Defined.--In this section, the term 
``Vieques electorate'', with respect to a referendum under this 
section, means the residents of the island of Vieques, Puerto Rico, 
who, as of the date that is 180 days before the date of the referendum, 
have an electoral domicile on, and are duly registered to vote on, the 
island of Vieques under the laws of the Commonwealth of Puerto Rico.

SEC. 1303. ACTIONS IF TRAINING IS APPROVED.

    (a) Condition for Effectiveness.--This section shall take effect on 
the date on which the President issues a proclamation under subsection 
(e) of section 1302 declaring that the continuation of the conduct of 
training (including live-fire training) by the Armed Forces at the 
Navy's training sites on the island of Vieques on the conditions 
described in subsection (d) of that section is approved in a referendum 
conducted under that section.
    (b) Additional Economic Assistance.--The President may provide 
economic assistance for the people and communities of the island of 
Vieques in a total amount up to $50,000,000 in addition to the total 
amount of economic assistance authorized to be provided under section 
1301.

SEC. 1304. REQUIREMENTS IF TRAINING IS NOT APPROVED OR MANDATE FOR 
              REFERENDUM IS VITIATED.

    (a) Conditions for Effectiveness.--This section shall take effect 
on the date on which either of the following occurs:
            (1) The President issues a proclamation under subsection 
        (e) of section 1302 declaring that the continuation of the 
        conduct of training (including live-fire training) by the Armed 
        Forces at the Navy's training sites on the island of Vieques on 
        the conditions described in subsection (d) of that section is 
        not approved in the referendum conducted under that section.
            (2) The requirement for a referendum under section 1302 
        ceases to be effective under subsection (a)(2) of that section.
    (b) Actions Required of Secretary of Defense.--The Secretary of 
Defense--
            (1) shall, not later than May 1, 2003--
                    (A) terminate all Navy and Marine Corps training 
                operations on the island of Vieques; and
                    (B) terminate all Navy and Marine Corps operations 
                at Roosevelt Roads, Puerto Rico, that are related to 
                the use of the training range on the island of Vieques 
                by the Navy and the Marine Corps.
            (2) may relocate the units of the Armed Forces (other than 
        those of the reserve components) and activities of the 
        Department of Defense (including nonappropriated fund 
        activities) at Fort Buchanan, Puerto Rico, to Roosevelt Roads, 
        Puerto Rico, to ensure maximum utilization of capacity;
            (3) shall close the Department of Defense installations and 
        facilities on the island of Vieques (other than properties 
        exempt from transfer under section 1305); and
            (4) shall, except as provided in section 1305, transfer to 
        the Secretary of the Interior--
                    (A) the Live Impact Area on the island of Vieques;
                    (B) all Department of Defense real properties on 
                the eastern side of that island that are identified as 
                conservation zones; and
                    (C) all other Department of Defense real properties 
                on the eastern side of that island.
    (c) Actions Required of Secretary of the Interior.--The Secretary 
of the Interior shall retain, and may not dispose of any of, the 
properties transferred under subsection (b)(4) pending the enactment of 
a law that addresses the disposition of those properties.
    (d) GAO Review.--
            (1) Requirement for review.--The Comptroller General shall 
        review the requirement for the continued use of Fort Buchanan 
        by active Army forces and shall submit to the congressional 
        defense committees a report on the review. The report shall 
        contain the following:
                    (A) Findings.--The findings resulting from the 
                review.
                    (B) Recommendations.--Recommendations regarding the 
                closure of Fort Buchanan and the consolidation of 
                United States military forces to Roosevelt Roads, 
                Puerto Rico.
            (2) Time for submittal of report.--The Comptroller General 
        shall submit the report under paragraph (1) not later than one 
        year after the date of the referendum conducted under section 
        1302 or the date on which a certification is submitted to the 
        congressional defense committees under section 1302(a)(2), as 
        the case may be.

SEC. 1305. EXEMPT PROPERTY.

    (a) In General.--The Department of Defense properties and property 
interests described in subsection (b) may not be transferred out of the 
Department of Defense under this title.
    (b) Properties Described.--The exemption under subsection (a) 
applies to the following Department of Defense properties and property 
interests on the island of Vieques:
            (1) ROTHR site.--The site for relocatable over-the-horizon 
        radar.
            (2) Telecommunications sites.--The Mount Pirata 
        telecommunications sites.
            (3) Associated interests.--Any easements, rights-of-way, 
        and other interests in property that the Secretary of Defense 
        determines necessary for--
                    (A) ensuring access to the properties referred to 
                in paragraphs (1) and (2);
                    (B) providing utilities for such properties;
                    (C) ensuring the security of such properties; and
                    (D) ensuring effective maintenance and operations 
                on the property.

SEC. 1306. MORATORIUM ON IMPROVEMENTS AT FORT BUCHANAN.

    (a) In General.--Except as provided in subsection (b), no 
acquisition, construction, conversion, rehabilitation, extension, or 
improvement of any facility at Fort Buchanan, Puerto Rico, may be 
initiated or continued on or after the date of the enactment of this 
Act.
    (b) Exceptions.--The prohibition in subsection (a) does not apply 
to the following:
            (1) Actions necessary to maintain the existing facilities 
        (including utilities) at Fort Buchanan.
            (2) The construction of reserve component facilities 
        authorized before the date of the enactment of this Act.
    (c) Termination.--This subsection shall cease to be effective upon 
the issuance of a proclamation described in section 1303(a).

SEC. 1307. PROPERTY TRANSFERRED TO SECRETARY OF THE INTERIOR.

    (a) Transfers Required.--Not later than September 30, 2005, the 
Secretary of Defense shall, except as provided in section 1305, 
transfer to the Secretary of the Interior all Department of Defense 
real properties on the western part of the island of Vieques that are 
identified as conservation zones.
    (b) Administration of Properties as Wildlife Refuges.--The 
Secretary of the Interior shall administer as wildlife refuges under 
the National Wildlife Refuge System Administration Act of 1966 (16 
U.S.C. 668dd et seq.) all properties transferred to the Secretary under 
this section.

SEC. 1308. LIVE IMPACT AREA.

    (a) Responsibility for Live Impact Area.--Upon a termination of 
Navy and Marine Corps training operations on the island of Vieques 
under section 1304(b), and pending the enactment of a law that 
addresses the disposition of the Live Impact Area, the Secretary of the 
Interior shall assume responsibility for the administration of the Live 
Impact Area and deny public access to the area.
    (b) Live Impact Area Defined.--In this title, the term ``Live 
Impact Area'' means the parcel of real property, consisting of 
approximately 900 acres (more or less), on the island of Vieques that 
is designated by the Secretary of the Navy for targeting by live 
ordnance in the training of forces of the Navy and Marine Corps.

                                                       Calendar No. 544

106th CONGRESS

  2d Session

                                S. 2550

_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 2001 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

_______________________________________________________________________

                              May 12, 2000

 Reported from the Committee on Armed Services, under authority of the 
  order of the Senate of May 11th, 2000, the following original bill; 
              which read twice and placed on the calendar
```