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intelligence units and personnel, including the fol-
lowing missions: counterdrug, counterintelligence,
counterterrorism, information operations, informa-
tion warfare, and other emerging threats.
(2) To recommend a process for justifying and
validating reserve component intelligence force struc-
ture and manpower to support the peacetime roles
and missions identified under paragraph (1) and to
establish a means to coordinate and transition that
peacetime operational support network and structure
into wartime requirements.
(3) To provide, pursuant to paragraphs (1) and
(2), the basis for new or revised intelligence and re-
serve component policy guidelines for the peacetime
use, organization, management, infrastructure ,and
funding of reserve component intelligence units and
personnel.
(4) To determine the most effective structure,
organization, manning, and management of Joint
Reserve Intelligence Centers to enable them to be
both reserve training facilities and virtual collabo-
rative production facilities in support of Department
of Defense peacetime operational intelligence re-
quirements.
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(5) To determine the most effective uses of
technology for virtual collaborative intelligence oper-
ational support during peacetime and wartime.
(6) To determine personnel and career manage-
ment initiatives or modifications that are required to
improve the recruiting and retention of personnel in
the reserve component intelligence specialties and oc-
cupational skills.
(7) To identify and make recommendations for
the elimination of statutory prohibitions and barriers
to using reserve component intelligence units and in-
dividuals to carry out peacetime operational require-
ments.
(d) REPORTS.—The Secretary of Defense shall sub-
mit to Congress—
(1) interim reports on the status of the test
program not later than July 1, 2002, and July 1,
2003; and
(2) a final report, with such recommendations
for changes as the Secretary considers necessary,
not later than December 1, 2004.
SEC. 553. NATIONAL GUARD CHALLENGE PROGRAM.
(a) EXPENDITURE LIMITATIONS.—Subsection (b) of
section 509 of title 32, United States Code, is amended—
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(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of
Defense’’;
(2) by striking ‘‘, except that Federal expendi-
tures 
under 
the 
program 
may 
not 
exceed
$62,500,000 for any fiscal year’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2) The Secretary shall carry out the National
Guard Challenge Program using funds appropriated di-
rectly to the Secretary for the program and nondefense
Federal funds made available or transferred to the Sec-
retary by other Federal agencies to support the program.
However, the amount of funds appropriated directly to the
Secretary of Defense and expended for the program in a
fiscal year may not exceed $62,500,000.’’.
(b) REGULATIONS.—Such section is further amended
by adding at the end the following new subsection:
‘‘(m) REGULATIONS.—The Secretary of Defense shall
prescribe regulations to carry out the National Guard
Challenge Program. The regulations shall address at a
minimum the following:
‘‘(1) The terms to be included in the program
agreements required by subsection (d).
‘‘(2) The qualifications for persons to partici-
pate in the program, as required by subsection (e).
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‘‘(3) The benefits authorized for program par-
ticipants, as required by subsection (f).
‘‘(4) The status of National Guard personnel
assigned to duty in support of the program.
‘‘(5) The conditions for the use of National
Guard facilities and equipment to carry out the pro-
gram, as required by subsection (h).
‘‘(6) The status of program participants, as de-
scribed in subsection (i).
‘‘(7) The procedures to be used by the Sec-
retary when communicating with States about the
program.’’.
(c) CONFORMING AMENDMENT.—Section 2033 of
title 10, United States Code, is amended by striking ‘‘ap-
propriated for’’ and inserting ‘‘appropriated directly to the
Secretary of Defense for’’.
SEC. 554. STUDY OF USE OF CIVILIAN CONTRACTOR PILOTS
FOR OPERATIONAL SUPPORT MISSIONS.
(a) STUDY.—The Secretary of Defense shall conduct
a study to determine the feasibility and cost, as well as
the advantages and disadvantages, of using civilian con-
tractor personnal as pilots and other air crew members
to fly nonmilitary Government aircraft (referred to as
‘‘operational support aircraft’’) to perform non-combat
personnel transportation missions worldwide. In carrying
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out the study, the Secretary shall consider the views and
recommendations of the Chairman of the Joint Chiefs and
the other members of the Joint Chiefs of Staff.
(b) MATTERS TO BE INCLUDED.—The study shall,
as a minimum—
(1) determine whether use of civilian contractor
personnel as pilots and other air crew members for
such operational support missions would be a cost
effective means of freeing for duty in units with
combat and combat support missions those military
pilots and other personnel who now perform such
operational support missions; and
(2) the effect on retention of military pilots and
other personnel if they are no longer required to fly
operational support missions.
(c) SUBMISSION OF REPORT.—The Secretary shall
submit a report containing the results of the study to the
Committee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representatives
not later than 6 months after the date of the enactment
of this Act.
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SEC. 555. PILOT PROGRAM TO ENHANCE MILITARY RE-
CRUITING BY IMPROVING MILITARY AWARE-
NESS OF SCHOOL COUNSELORS AND EDU-
CATORS.
(a) IN GENERAL.—The Secretary of Defense shall
conduct a pilot program to determine if cooperation with
military recruiters by local educational agencies and by in-
stitutions of higher education could be enhanced by im-
proving the understanding of school counselors and edu-
cators about military recruiting and military career oppor-
tunities. The pilot program shall be conducted during a
3-year period beginning not later than 180 days after the
date of the enactment of this Act.
(b) CONDUCT OF PILOT PROGRAM THROUGH PAR-
TICIPATION IN INTERACTIVE INTERNET SITE.—(1) The
pilot program shall be conducted by means of participation
by the Department of Defense in a qualifying interactive
Internet site.
(2) For purposes of this section, a qualifying inter-
active Internet site is an Internet site in existence as of
the date of the enactment of this Act that is designed to
provide to employees of local educational agencies and in-
stitutions of higher education participating in the Internet
site—
(A) systems for communicating;
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(B) resources for individual professional devel-
opment;
(C) resources to enhance individual on-the-job
effectiveness; and
(D) resources to improve organizational effec-
tiveness.
(3) Participation in an Internet site by the Depart-
ment of Defense for purposes of this section shall
include—
(A) funding;
(B) assistance; and
(C) access by other Internet site participants to
Department of Defense aptitude testing programs,
career development information, and other resources,
in addition to information on military recruiting and
career opportunities.
(c) REPORT.—The Secretary of Defense shall submit
to the Committee on Armed Services of the Senate and
the Committee on Armed Services of the House of Rep-
resentatives a report providing the Secretary’s findings
and conclusions on the pilot program not later than 180
days after the end of the 3-year program period.
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SEC. 556. REIMBURSEMENT FOR EXPENSES INCURRED BY
MEMBERS IN CONNECTION WITH CANCELLA-
TION OF LEAVE ON SHORT NOTICE.
(a) IN GENERAL.—(1) Chapter 157 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 2647. Reimbursement for expenses incurred in
connection with leave canceled due to
contingency operations
‘‘(a) AUTHORIZATION TO REIMBURSE.—The Sec-
retary concerned may reimburse a member of the armed
forces under the jurisdiction of the Secretary for travel
and related expenses (to the extent not otherwise reim-
bursable under law) incurred by the member as a result
of the cancellation of previously approved leave when the
leave is canceled in connection with the member’s partici-
pation in a contingency operation and the cancellation oc-
curs within 48 hours of the time the leave would have com-
menced.
‘‘(b) REGULATIONS.—The Secretary of Defense shall
prescribe regulations to establish the criteria for the appli-
cability of subsection (a).
‘‘(c) CONCLUSIVENESS OF SETTLEMENT.—The set-
tlement of an application for reimbursement under sub-
section (a) is final and conclusive.’’.
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(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2647. Reimbursement for expenses incurred in connection with leave canceled
due to contingency operations.’’.
(b) EFFECTIVE DATE.—Section 2647 of title 10,
United States Code, as added by subsection (a) shall apply
with respect to any travel and related expenses incurred
by a member in connection with leave canceled after the
date of the enactment of this Act.
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 re-
quired 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.
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SEC. 602. REVISED METHOD FOR CALCULATION OF BASIC
ALLOWANCE FOR SUBSISTENCE.
(a) ANNUAL REVISION OF RATE.—Section 402(b)(1)
of title 37, United States Code, is amended by striking
paragraph (1) and inserting the following new paragraph:
‘‘(1) The monthly rate of basic allowance for subsist-
ence to be in effect for an enlisted member for a year (be-
ginning on January 1 of that year) shall be equal to the
sum of—
‘‘(A) the monthly rate of basic allowance for
subsistence that was in effect for an enlisted mem-
ber for the preceding year; plus
‘‘(B) the product of the monthly rate under
subparagraph (A) and the percentage increase in the
monthly cost of a liberal food plan for a male in the
United States who is between 20 and 50 years of
age over the preceding fiscal year, as determined by
the Secretary of Agriculture each October 1.’’.
(b) EARLY TERMINATION OF BAS TRANSITIONAL
AUTHORITY.—Subsections (c) through (f) of section 602
of the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 37 U.S.C. 402 note) are re-
pealed.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2001.
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SEC. 603. FAMILY SUBSISTENCE SUPPLEMENTAL ALLOW-
ANCE FOR LOW-INCOME MEMBERS OF THE
ARMED FORCES.
(a) SUPPLEMENTAL ALLOWANCE AUTHORIZED.—(1)
Chapter 7 of title 37, United States Code, is amended by
inserting after section 402 the following new section:
‘‘§ 402a. Supplemental subsistence allowance for low-
income members with dependents
‘‘(a) SUPPLEMENTAL ALLOWANCE AUTHORIZED.—
(1) The Secretary concerned may increase the basic allow-
ance for subsistence to which a member of the armed
forces described in subsection (b) is otherwise entitled
under section 402 of this title by an amount (in this sec-
tion referred to as the ‘supplemental subsistence allow-
ance’) designed to remove the member’s household from
eligibility for benefits under the food stamp program.
‘‘(2) The supplemental subsistence allowance may not
exceed $500 per month. In establishing the amount of the
supplemental subsistence allowance to be paid an eligible
member under this paragraph, the Secretary shall take
into consideration the amount of the basic allowance for
housing that the member receives under section 403 of
this title or would otherwise receive under such section,
in the case of a member who is not entitled to that allow-
ance as a result of assignment to quarters of the United
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States or a housing facility under the jurisdiction of a uni-
formed service.
‘‘(3) In the case of a member described in subsection
(b) who establishes to the satisfaction of the Secretary
concerned that the allotment of the member’s household
under the food stamp program, calculated in the absence
of the supplemental subsistence allowance, would exceed
the amount established by the Secretary concerned under
paragraph (2), the amount of the supplemental subsist-
ence allowance for the member shall be equal to the lesser
of the following:
‘‘(A) The value of that allotment.
‘‘(B) $500.
‘‘(b) ELIGIBLE MEMBERS.—(1) Subject to subsection
(d), a member of the armed forces is eligible to receive
the supplemental subsistence allowance if the Secretary
concerned determines that the member’s income, together
with the income of the rest of the member’s household (if
any), is within the highest income standard of eligibility,
as then in effect under section 5(c) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(c)) and without regard to
paragraph (1) of such section, for participation in the food
stamp program.
‘‘(2) In determining whether a member meets the eli-
gibility criteria under paragraph (1), the Secretary—
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‘‘(A) shall not take into consideration the
amount of the supplemental subsistence allowance
payable under this section; but
‘‘(B) shall take into consideration the amount
of the basic allowance for housing that the member
receives under section 403 of this title or would oth-
erwise receive under such section, in the case of a
member who is not entitled to that allowance as a
result of assignment to quarters of the United
States or a housing facility under the jurisdiction of
a uniformed service.
‘‘(c) APPLICATION
FOR ALLOWANCE.—To request
the supplemental subsistence allowance, a member shall
submit an application to the Secretary concerned in such
form and containing such information as the Secretary
concerned may prescribe. A member applying for the sup-
plemental subsistence allowance shall furnish such evi-
dence regarding the member’s satisfaction of the eligibility
criteria under subsection (b) as the Secretary concerned
may require.
‘‘(d) EFFECTIVE PERIOD.—The eligibility of a mem-
ber to receive the supplemental subsistence allowance ter-
minates upon the occurrence of any of the following
events, even though the member continues to meet the eli-
gibility criteria described in subsection (b):
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‘‘(1) Payment of the supplemental subsistence
allowance for 12 consecutive months.
‘‘(2) Promotion of the member to a higher
grade.
‘‘(3) Transfer of the member in a permanent
change of station.
‘‘(e) REAPPLICATION.—Upon the termination of the
effective period of the supplemental subsistence allowance
for a member, or in anticipation of the imminent termi-
nation of the allowance, a member may reapply for the
allowance under subsection (c) if the member continues
to meet, or once again meets, the eligibility criteria de-
scribed in subsection (b).
‘‘(f) REPORTING REQUIREMENT.—Not later than
March 1 of each year after 2001, the Secretary of Defense
shall submit to Congress a report specifying the number
of members of the armed forces who received, at any time
during the preceding year, the supplemental subsistence
allowance. In preparing the report, the Secretary of De-
fense shall consult with the Secretary of Transportation.
No report is required under this subsection after March
1, 2006.
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) The term ‘Secretary concerned’ means the
Secretary of Defense, and the Secretary of Trans-
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portation, with respect to the Coast Guard when it
is not operating as a service in the Navy.
‘‘(2) The terms ‘allotment’ and ‘household’ have
the meanings given those terms in section 3 of the
Food Stamp Act of 1977 (7 U.S.C. 2012).
‘‘(3) The term ‘food stamp program’ means the
program established pursuant to section 4 of the
Food Stamp Act of 1977 (7 U.S.C. 2013).
‘‘(h) TERMINATION
OF AUTHORITY.—No supple-
mental subsistence allowance may be made under this sec-
tion after September 30, 2006.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 402 the following:
‘‘402a. Supplemental subsistence allowance for low-income members with de-
pendents.’’.
(b) EFFECTIVE DATE.—Section 402a of title 37,
United States Code, as added by subsection (a), shall take
effect on the first day of the first month that begins not
less than 180 days after the date of the enactment of this
Act.
SEC. 604. CALCULATION OF BASIC ALLOWANCE FOR HOUS-
ING FOR INSIDE THE UNITED STATES.
(a) SECRETARY
OF
DEFENSE
TO
PRESCRIBE
RATES.—Paragraph (2) of section 403(b) of title 37,
United States Code, is amended to read as follows:
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‘‘(2) The Secretary of Defense shall prescribe the
monthly amount of the basic allowance for housing for a
member of a uniformed service who is entitled to the allow-
ance in a military housing area in the United States at
a rate based upon the costs of adequate housing in the
area determined under paragraph (1).’’.
(b) MINIMUM ANNUAL AMOUNT AVAILABLE
FOR
HOUSING ALLOWANCES.—Paragraph (3) of such section
is amended to read as follows:
‘‘(3) The total amount that may be paid for a fiscal
year for the basic allowance for housing under this sub-
section may not be less than the product of—
‘‘(A) the total amount authorized to be paid for
such allowance for the preceding fiscal year; and
‘‘(B) a fraction—
‘‘(i) the numerator of which is the index of
the national average monthly cost of housing
for June of the preceding fiscal year; and
‘‘(ii) the denominator of which is the index
of the national average monthly cost of housing
for June of the second preceding fiscal year.’’.
(c) REPEAL
OF REQUIRED ADJUSTMENT.—Para-
graph (5) of such section is repealed.
(d) BASIS FOR REDUCTION IN MEMBER’S ALLOW-
ANCE.—Paragraph (6) of such section is amended by
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striking ‘‘, changes in the national average monthly cost
of housing,’’.
(e) EXTENSION OF TRANSITION PERIOD.—Section
603(b) of the National Defense Authorization Act for Fis-
cal Year 1998 (Public Law 105–85; 37 U.S.C. 403 note)
is amended by striking ‘‘six years’’ and inserting ‘‘eight
years’’.
(f) READJUSTMENT OF ALLOWANCE FOR CERTAIN
PERIOD.—A member of the uniformed services who was
entitled to the basic allowance for housing for a military
housing area in the United States during the period that
began on January 1, 2000, and ended on March 1, 2000,
shall be paid the allowance at a monthly rate not less than
the rate in effect on December 31, 1999, in that area for
members serving in the same pay grade and with the same
dependency status as the member.
SEC. 605. EQUITABLE TREATMENT OF JUNIOR ENLISTED
MEMBERS IN COMPUTATION OF BASIC AL-
LOWANCE FOR HOUSING.
(a) DETERMINATION
OF
COSTS
OF
ADEQUATE
HOUSING.—Subsection (b)(1) of section 403 of title 37,
United States Code, is amended by adding at the end the
following new sentence: ‘‘In determining what constitutes
adequate housing for members, the Secretary may not dif-
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ferentiate between members with dependents in pay
grades E–1 through E–4.’’.
(b) SINGLE RATE; MINIMUM.—Subsection (b) of
such section, as amended by section 604(c) of this Act,
is further amended by inserting after paragraph (4) the
following new paragraph:
‘‘(5) The Secretary shall establish a single monthly
rate for members of the uniformed services with depend-
ents in pay grades E–1 through E–4 in the same military
housing area. The rate shall be consistent with the rates
paid to members in pay grades other than pay grades E–
1 through E–4 and shall be based on the following:
‘‘(A) The average cost of a two-bedroom apart-
ment in that military housing area.
‘‘(B) One-half of the difference between the av-
erage cost of a two-bedroom townhouse in that area
and the amount determined in subparagraph (A).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on July 1, 2001.
SEC. 606. BASIC ALLOWANCE FOR HOUSING AUTHORIZED
FOR ADDITIONAL MEMBERS WITHOUT DE-
PENDENTS WHO ARE ON SEA DUTY.
(a) PAYMENT AUTHORIZED.—Subsection (f)(2)(B) of
section 403 of title 37, United States Code, is amended
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by striking ‘‘E–5’’ both places it appears and inserting
‘‘E–4 or E–5’’.
(b) 
CONFORMING
AMENDMENT.—Subsection
(m)(1)(B) of such section is amended by striking ‘‘E–4’’
and inserting ‘‘E–3’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2001.
SEC. 607. PERSONAL MONEY ALLOWANCE FOR SENIOR EN-
LISTED MEMBERS OF THE ARMED FORCES.
(a) AUTHORITY.—Section 414 of title 37, United
States Code, is amended by adding at the end the fol-
lowing new subsection:
‘‘(c) ALLOWANCE
FOR SENIOR ENLISTED MEM-
BERS.—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) STYLISTIC AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (a), by inserting ‘‘ALLOWANCE
FOR OFFICERS SERVING IN CERTAIN RANKS OR PO-
SITIONS.—’’ after ‘‘(a)’’; and
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(2) in subsection (b), by inserting ‘‘ALLOWANCE
FOR CERTAIN NAVAL OFFICERS.—’’ after ‘‘(b)’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2000.
SEC. 608. ALLOWANCE FOR OFFICERS FOR PURCHASE OF
REQUIRED UNIFORMS AND EQUIPMENT.
(a) INITIAL ALLOWANCE FOR OFFICERS.—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.—The amendments made by
this section shall take effect on October 1, 2000.
SEC. 609. INCREASE IN MONTHLY SUBSISTENCE ALLOW-
ANCE 
FOR 
MEMBERS 
OF
PRECOMMISSIONING PROGRAMS.
(a) MINIMUM
AND MAXIMUM RATES.—Subsection
(a) of section 209 of title 37, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ before ‘‘Except’’;
(2) by striking ‘‘subsistence allowance of $200
a month’’ and inserting ‘‘monthly subsistence allow-
ance at a rate prescribed under paragraph (2)’’;
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(3) by striking ‘‘Subsistence’’ and inserting the
following:
‘‘(3) A subsistence’’; and
(4) by inserting after the first sentence the fol-
lowing:
‘‘(2) The Secretary of Defense shall prescribe by reg-
ulation the monthly rates for subsistence allowances pro-
vided under this section. The rate may not be less than
$250 per month, but may not exceed $600 per month.’’.
(b) CONFORMING AMENDMENTS.—(1) Subsection (b)
of such section is amended by striking ‘‘in the amount pro-
vided in subsection (a)’’ and inserting ‘‘at a rate pre-
scribed under subsection (a)(2)’’.
(2) Subsection (d) of such section is amended by
striking ‘‘the same rate as that prescribed by subsection
(a),’’ and inserting ‘‘the monthly rate prescribed under
subsection (a)(2)’’.
(c) STYLISTIC AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (a), by inserting ‘‘SENIOR
ROTC MEMBERS IN ADVANCED TRAINING.—’’ after
‘‘(a)’’;
(2) in subsection (b), by inserting ‘‘SENIOR
ROTC MEMBERS
APPOINTED
IN
RESERVES.—’’
after ‘‘(b)’’;
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(3) in subsection (c), by inserting ‘‘PAY WHILE
ATTENDING TRAINING
OR PRACTICE CRUISE.—’’
after ‘‘(c)’’ the first place it appears; and
(4) in subsection (d), by inserting ‘‘MEMBERS
OF
MARINE
CORPS
OFFICER
CANDIDATE
PRO-
GRAM.—’’ after ‘‘(d)’’.
(d) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall take effect October 1, 2001.
SEC. 610. ADDITIONAL AMOUNT AVAILABLE FOR FISCAL
YEAR 2001 INCREASE IN BASIC ALLOWANCE
FOR HOUSING INSIDE THE UNITED STATES.
In addition to the amount determined by the Sec-
retary of Defense under section 403(b)(3) of title 37,
United States Code (as amended by section 604(b)), to
be the total amount to be paid during fiscal year 2001
for the basic allowance for housing for military housing
areas inside the United States, $30,000,000 of the amount
authorized to be appropriated by section 421 for military
personnel shall be used by the Secretary to further in-
crease the total amount available for the basic allowance
for housing for military housing areas inside the United
States.
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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 ‘‘De-
cember 31, 2000’’ and inserting ‘‘December 31, 2001’’.
(c) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking ‘‘Decem-
ber 31, 2000’’ and inserting ‘‘December 31, 2001’’.
(d) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED 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.—Sec-
tion 308e(e) of such title is amended by striking ‘‘Decem-
ber 31, 2000’’ and inserting ‘‘December 31, 2001’’.
(f) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended
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by striking ‘‘December 31, 2000’’ and inserting ‘‘Decem-
ber 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 CER-
TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
LECTED 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 CAN-
DIDATES, REGISTERED NURSES, AND NURSE
ANESTHETISTS.
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—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 ANES-
THETISTS.—Section 302e(a)(1) of title 37, United States
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Code, is amended by striking ‘‘December 31, 2000’’ and
inserting ‘‘December 31, 2001’’.
SEC. 613. EXTENSION OF AUTHORITIES RELATING TO PAY-
MENT OF OTHER BONUSES AND SPECIAL
PAYS.
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended
by striking ‘‘December 31, 2000,’’ and inserting ‘‘Decem-
ber 31, 2001,’’.
(b) REENLISTMENT
BONUS
FOR
ACTIVE
MEM-
BERS.—Section 308(g) of such title is amended by strik-
ing ‘‘December 31, 2000’’ and inserting ‘‘December 31,
2001’’.
(c) ENLISTMENT BONUS FOR PERSONS WITH CRIT-
ICAL SKILLS.—Section 308a(d) of such title is amended
by striking ‘‘December 31, 2000’’ and inserting ‘‘Sep-
tember 30, 2001’’.
(d) ARMY ENLISTMENT BONUS.—Section 308f(c) of
such title is amended by striking ‘‘December 31, 2000’’
and inserting ‘‘September 30, 2001’’.
(e) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section
312(e) of such title is amended by striking ‘‘December 31,
2000’’ and inserting ‘‘December 31, 2001’’.
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(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) CONSISTENT DESCRIPTIONS OF ACTIVE DUTY.—
Section 302(h)(1) of title 37, United States Code, is
amended by inserting before the period at the end the fol-
lowing: ‘‘, including active duty in the form of annual
training, active duty for training, and active duty for spe-
cial work’’.
(b) RELATION TO OTHER SPECIAL PAY AUTHORI-
TIES.—Subsection (d) of section 302f of such title is
amended to read as follows:
‘‘(d) EXCEPTION.—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.’’.
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SEC. 615. SPECIAL PAY FOR COAST GUARD PHYSICIAN AS-
SISTANTS.
Section 302c(d)(1) of title 37, United States Code,
is amended by inserting ‘‘an officer in the Coast Guard
or Coast Guard Reserve designated as a physician assist-
ant,’’ after ‘‘nurse,’’.
SEC. 616. SPECIAL DUTY ASSIGNMENT PAY FOR ENLISTED
MEMBERS.
(a) INCREASE IN MONTHLY RATE.—Subsection (a)
of section 307 of title 37, United States Code, is amended
by striking ‘‘$275’’ and inserting ‘‘$600’’.
(b) ELIMINATION OF SEPARATE RATE FOR RECRUIT-
ERS.—Such subsection is further amended by striking the
last sentence.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2001, and shall
apply with respect to months beginning on or after that
date.
SEC. 617. REVISION OF CAREER SEA PAY.
(a) IN GENERAL.—Section 305a of title 37, United
States Code, is amended by striking subsections (a), (b),
and (c) and inserting the following new subsections:
‘‘(a) AVAILABILITY OF SPECIAL PAY.—A member of
a uniformed service who is entitled to basic pay is also
entitled, while on sea duty, to career sea pay at a monthly
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rate prescribed by the Secretary concerned, but not to ex-
ceed $750 per month.
‘‘(b) ELIGIBILITY FOR PREMIUM.—A member of a
uniformed service entitled to career sea pay under sub-
section (a) who has served 36 consecutive months of sea
duty is also entitled to a career sea pay premium for the
37th consecutive month and each subsequent consecutive
month of sea duty served by the member. The monthly
amount of the premium shall be prescribed by the Sec-
retary concerned, but may not exceed $350 per month.
‘‘(c) REGULATIONS.—The Secretaries concerned shall
prescribe regulations to carry out this section. Regulations
prescribed by the Secretary of a military department shall
be subject to the approval of the Secretary of Defense.’’.
(b) STYLISTIC AMENDMENT.—Subsection (d) of such
section is amended by striking ‘‘(d)’’ and inserting ‘‘(d)
DEFINITION OF SEA DUTY.—’’.
(c) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 2001, and
shall apply with respect to months beginning on or after
that date.
SEC. 618. REVISION OF ENLISTMENT BONUS AUTHORITY.
(a) BONUS AUTHORIZED.—(1) Title 37, United
States Code, is amended by inserting after section 308i
the following new section:
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‘‘§ 309. Special pay: enlistment bonus
‘‘(a) BONUS AUTHORIZED; BONUS AMOUNT.—A per-
son who enlists in an armed force for a period of at least
2 years may be paid a bonus in an amount not to exceed
$20,000. The bonus may be paid in a single lump sum
or in periodic installments.
‘‘(b) REPAYMENT OF BONUS.—(1) A member of the
armed forces who voluntarily, or because of the member’s
misconduct, does not complete the term of enlistment for
which a bonus was paid under this section, or a member
who is not technically qualified in the skill for which the
bonus was paid, if any (other than a member who is not
qualified because of injury, illness, or other impairment
not the result of the member’s misconduct), shall refund
to the United States that percentage of the bonus that
the unexpired part of member’s enlistment is of the total
enlistment period for which the bonus was paid.
‘‘(2) An obligation to reimburse the United States
imposed under paragraph (1) is for all purposes a debt
owed to the United States.
‘‘(3) A discharge in bankruptcy under title 11 that
is entered less than 5 years after the termination of an
enlistment for which a bonus was paid under this section
does not discharge the person receiving the bonus from
the debt arising under paragraph (1).
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‘‘(c) RELATION TO PROHIBITION ON BOUNTIES.—
The enlistment bonus authorized by this section is not a
bounty for purposes of section 514(a) of title 10.
‘‘(d) REGULATIONS.—This section shall be adminis-
tered under regulations prescribed by the Secretary of De-
fense for the armed forces under the jurisdiction of the
Secretary of Defense and by the Secretary of Transpor-
tation for the Coast Guard when the Coast Guard is not
operating as a service in the Navy.
‘‘(e) DURATION OF AUTHORITY.—No bonus shall be
paid under this section with respect to any enlistment in
the armed forces made before October 1, 2001, or after
December 31, 2001.’’.
(2) The table of sections at the beginning of chapter
5 of such title is amended by inserting after the item relat-
ing to section 308i the following new item:
‘‘309. Special pay: enlistment bonus.’’.
(b) REPEAL OF SUPERSEDED ENLISTMENT BONUS
AUTHORITIES.—(1) Sections 308a and 308f of title 37,
United States Code, are repealed.
(2) The table of sections at the beginning of chapter
5 of such title is amended by striking the items relating
to sections 308a and 308f.
(c) EFFECTIVE DATE.—The amendments made by
subsection (b) shall take effect on October 1, 2001.
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SEC. 619. AUTHORIZATION OF RETENTION BONUS FOR
MEMBERS OF THE ARMED FORCES QUALI-
FIED IN A CRITICAL MILITARY SKILL.
(a) BONUS AUTHORIZED.—(1) Chapter 5 of title 37,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 323. Special pay: retention incentives for members
qualified in a critical military skill
‘‘(a) RETENTION BONUS AUTHORIZED.—An officer
or enlisted member of the armed forces who is serving on
active duty and is qualified in a designated critical military
skill may be paid a retention bonus as provided in this
section if—
‘‘(1) in the case of an officer, the member exe-
cutes a written agreement to remain on active duty
for at least 1 year; or
‘‘(2) in the case of an enlisted member, the
member reenlists or voluntarily extends the mem-
ber’s enlistment for a period of at least 1 year.
‘‘(b) DESIGNATION OF CRITICAL SKILLS.—(1) A des-
ignated critical military skill referred to in subsection (a)
is a military skill designated as critical by the Secretary
of Defense, or by the Secretary of Transportation with re-
spect to the Coast Guard when it is not operating as a
service in the Navy.
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‘‘(2) 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, shall notify Con-
gress, in advance, of each military skill to be designated
by the Secretary as critical for purposes of this section.
The notice shall be submitted at least 90 days before any
bonus with regard to that critical skill is offered under
subsection (a) and shall include a discussion of the neces-
sity for the bonus, the amount and method of payment
of the bonus, and the retention results that the bonus is
expected to achieve.
‘‘(c) PAYMENT METHODS.—A bonus under this sec-
tion may be paid in a single lump sum or in periodic in-
stallments.
‘‘(d) MAXIMUM BONUS AMOUNT.—A member may
enter into an agreement under this section, or reenlist or
voluntarily extend the member’s enlistment, more than
once to receive a bonus under this section. However, a
member may not receive a total of more than $200,000
in payments under this section.
‘‘(e) CERTAIN MEMBERS INELIGIBLE.—A retention
bonus may not be provided under subsection (a) to a mem-
ber of the armed forces who—
‘‘(1) has completed more than 25 years of ac-
tive duty; or
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‘‘(2) will complete the member’s twenty-fifth
year of active duty before the end of the period of
active duty for which the bonus is being offered.
‘‘(f) RELATIONSHIP TO OTHER INCENTIVES.—A re-
tention bonus paid under this section is in addition to any
other pay and allowances to which a member is entitled.
‘‘(g) REPAYMENT OF BONUS.—(1) If an officer who
has entered into a written agreement under subsection (a)
fails to complete the total period of active duty specified
in the agreement, or an enlisted member who voluntarily
or because of misconduct does not complete the term of
enlistment for which a bonus was paid under this section,
the Secretary of Defense, and the Secretary of Transpor-
tation with respect to members of the Coast Guard when
it is not operating as a service in the Navy, may require
the member to repay the United States, on a pro rata
basis and to the extent that the Secretary determines con-
ditions and circumstances warrant, all sums paid under
this section.
‘‘(2) An obligation to repay the United States im-
posed under paragraph (1) is for all purposes a debt owed
to the United States.
‘‘(3) A discharge in bankruptcy under title 11 that
is entered less than 5 years after the termination of a writ-
ten agreement entered into under subsection (a) does not
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discharge the member from a debt arising under para-
graph (2).
‘‘(h) ANNUAL REPORT.—Not later than February 15
of each year, the Secretary of Defense and the Secretary
of Transportation shall submit to Congress a report—
‘‘(1) analyzing the effect, during the preceding
fiscal year, of the provision of bonuses under this
section on the retention of members qualified in the
critical military skills for which the bonuses were of-
fered; and
‘‘(2) describing the intentions of the Secretary
regarding the continued use of the bonus authority
during the current and next fiscal years.
‘‘(i) TERMINATION
OF
BONUS
AUTHORITY.—No
bonus may be paid under this section with respect to any
reenlistment, or voluntary extension of an enlistment, in
the armed forces entered into after December 31, 2001,
and no agreement under this section may be entered into
after that date.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘323. Special pay: retention incentives for members qualified in critical military
skill.’’.
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(b) EFFECTIVE DATE.—Section 323 of title 10,
United States Code, as added by subsection (a), shall take
effect on October 1, 2000.
SEC. 620. ELIMINATION OF REQUIRED CONGRESSIONAL
NOTIFICATION 
BEFORE 
IMPLEMENTATION
OF CERTAIN SPECIAL PAY AUTHORITY.
(a) RETENTION SPECIAL PAY FOR OPTOMETRISTS.—
(1) Section 302a(b)(1) of title 37, United States Code,
is amended by striking ‘‘an officer described in paragraph
(2) may be paid’’ and inserting ‘‘the Secretary concerned
may pay an officer described in paragraph (2) a’’.
(2) Section 617 of the National Defense Authoriza-
tion Act for Fiscal Year 1991 (Public Law 101–510; 104
Stat. 1578) is amended by striking subsection (b).
(b) SPECIAL PAY FOR OFFICERS IN NURSING SPE-
CIALTIES.—(1) Section 302e(b)(2)(A) of title 37, United
States Code, is amended by striking ‘‘the Secretary’’ and
inserting ‘‘the Secretary of the military department con-
cerned’’.
(2) Section 614 of the National Defense Authoriza-
tion Act for Fiscal Year 1991 (Public Law 101–510; 104
Stat. 1577) is amended by striking subsection (c).
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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) PAYMENT OR REIMBURSEMENT OF SUBSIST-
ENCE EXPENSES.—(1) Under regulations prescribed by
the Secretaries concerned, a member of a uniformed serv-
ice 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 de-
pendents 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
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or Alaska) to a duty station outside the United
States or in Hawaii or Alaska.
‘‘(C) In the case of an enlisted member who is
reporting to the member’s first permanent duty sta-
tion, the change from the member’s home of record
or initial technical school to that first permanent
duty station.
‘‘(b) PAYMENT IN ADVANCE.—The Secretary con-
cerned may make any payment for subsistence expenses
to a member under this section in advance of the member
actually incurring 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 tem-
porary quarters under the circumstances applicable to the
member and the member’s dependents.
‘‘(c) MAXIMUM PAYMENT PERIOD.—(1) In the case
of a change of permanent station described in subpara-
graph (A) or (C) of subsection (a)(2), 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)—
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‘‘(A) the period for which such expenses are to
be paid or reimbursed under this section may not ex-
ceed 5 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
to read as follows:
‘‘§ 405. Travel and transportation allowances: per
diem while on duty outside the United
States or in Hawaii or Alaska
‘‘(a) PER DIEM AUTHORIZED.—Without regard to
the monetary limitation of this title, the Secretary con-
cerned may pay a per diem to a member of the uniformed
services 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 ad-
vance of the accrual of the per diem.
‘‘(b) DETERMINATION
OF PER DIEM.—In deter-
mining 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 inci-
dental expenses. However, dependents may not be consid-
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ered in determining the per diem allowance for a member
in a travel status.
‘‘(c) TREATMENT OF HOUSING COST AND ALLOW-
ANCE.—Housing cost and allowance may be disregarded
in prescribing a station cost of living allowance under this
section.’’.
(c) STYLISTIC AMENDMENTS.—Section 404a of such
title is further amended—
(1) in subsection (d), as redesignated by sub-
section (a), by striking ‘‘(d)’’ and inserting ‘‘(d)
DAILY SUBSISTENCE RATES.—’’; and
(2) in subsection (e), as redesignated by sub-
section (a), by striking ‘‘(e)’’ and inserting ‘‘(e)
MAXIMUM DAILY PAYMENT.—’’.
SEC. 632. ADDITIONAL TRANSPORTATION ALLOWANCE RE-
GARDING BAGGAGE AND HOUSEHOLD EF-
FECTS.
(a) PET QUARANTINE FEES.—Section 406(a)(1) of
title 37, United States Code, is amended by adding at the
end the following new sentence: ‘‘The Secretary concerned
may also reimburse the member for mandatory pet quar-
antine fees for household pets, but not to exceed $275 per
change of station, when the member incurs the fees inci-
dent to such change of station.’’.
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(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect October 1, 2000.
SEC. 633. EQUITABLE DISLOCATION ALLOWANCES FOR
JUNIOR ENLISTED MEMBERS.
Section 407(c)(1) of title 37, United States Code, is
amended by inserting before the period the following: ‘‘,
except that the Secretary concerned may not differentiate
between members with dependents in pay grades E–1
through E–5’’.
SEC. 634. AUTHORITY TO REIMBURSE MILITARY RECRUIT-
ERS, SENIOR ROTC CADRE, AND MILITARY
ENTRANCE PROCESSING PERSONNEL FOR
CERTAIN PARKING EXPENSES.
(a) REIMBURSEMENT AUTHORITY.—(1) Chapter 7 of
title 37, United States Code, is amended by inserting after
section 411h the following new section:
‘‘§ 411i. Travel and transportation allowances: park-
ing expenses
‘‘(a) REIMBURSEMENT AUTHORITY.—The Secretary
of Defense may reimburse a member of the Army, Navy,
Air Force, or Marine Corps described in subsection (b)
for expenses incurred by the member in parking a pri-
vately owned vehicle being used by the member to com-
mute to the member’s place of duty.
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‘‘(b) ELIGIBLE MEMBERS.—A member referred to in
subsection (a) is a member who is—
‘‘(1) assigned to duty as a recruiter for any of
the armed forces;
‘‘(2) assigned to duty with a military entrance
processing facility of the armed forces; or
‘‘(3) detailed for instructional and administra-
tive duties at any institution where a unit of the
Senior Reserve Officers’ Training Corps is main-
tained.
‘‘(c) INCLUSION
OF CERTAIN CIVILIAN EMPLOY-
EES.—The Secretary of Defense may extend the reim-
bursement authority provided by subsection (a) to civilian
employees of the Department of Defense whose employ-
ment responsibilities include performing activities related
to the duties specified in subsection (b).’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 411h the following new item:
‘‘411i. Travel and transportation allowances: parking expenses.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2000.
SEC. 635. EXPANSION OF FUNDED STUDENT TRAVEL FOR
DEPENDENTS.
Section 430 of title 37, United States Code, is
amended—
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(1) in subsections (a)(3) and (b)(1), by striking
‘‘for the purpose of obtaining a secondary or under-
graduate college education’’ and inserting ‘‘for the
purpose of obtaining a formal education’’; and
(2) in subsection (f)—
(A) by striking ‘‘In this section, the term’’
and inserting the following:
‘‘In this section:
‘‘(1) The term’’; and
(B) by adding at the end the following new
subparagraph:
‘‘(2) The term ‘formal education’ means the fol-
lowing:
‘‘(A) A secondary education.
‘‘(B) An undergraduate college education.
‘‘(C) A graduate education pursued on a
full-time basis at an institution of higher edu-
cation (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))).’’.
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Subtitle D—Retirement and
Survivor Benefit Matters
SEC. 641. INCREASE IN MAXIMUM NUMBER OF RESERVE
RETIREMENT POINTS THAT MAY BE CRED-
ITED IN ANY YEAR.
Section 12733(3) of title 10, United States Code, is
amended by striking ‘‘but not more than’’ and all that
follows and inserting ‘‘but not more than—
‘‘(A) 60 days in any 1 year of service be-
fore the year of service that includes September
23, 1996;
‘‘(B) 75 days in the year of service that in-
cludes September 23, 1996, and in any subse-
quent year of service before the year of service
that includes the date of the enactment of the
National Defense Authorization Act for Fiscal
Year 2001; and
‘‘(C) 90 days in the year of service that in-
cludes the date of the enactment of the Na-
tional Defense Authorization Act for Fiscal
Year 2001 and in any subsequent year of serv-
ice.’’.
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SEC. 642. RESERVE COMPONENT SURVIVOR BENEFIT PLAN
SPOUSAL CONSENT REQUIREMENT.
(a) ELIGIBLE PARTICIPANTS.—Subsection (a)(2)(B)
of section 1448 of title 10, United States Code, is amend-
ed to read as follows:
‘‘(B) RESERVE-COMPONENT ANNUITY PAR-
TICIPANTS.—A person who (i) is eligible to par-
ticipate in the Plan under paragraph (1)(B),
and (ii) is 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-compo-
nent 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 on which he receives that notifica-
tion.’’.
(b) SUBSEQUENT ELECTION TO PARTICIPATE.—
Subsection (a)(3)(B) of such section is amended—
(1) by striking ‘‘who elects to provide’’ and in-
serting ‘‘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 redes-
ignated) the following new clauses:
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‘‘(i) not to participate in the Plan;
‘‘(ii) to designate under subsection
(e)(2) the effective date for commencement
of annuity payments under the Plan in the
event that the member dies before becom-
ing 60 years of age to be the sixtieth anni-
versary of the member’s birth (rather than
the day after the date of the member’s
death);’’.
(c) CONFORMING AMENDMENTS.—Such section is
further amended—
(1) in subsection (a)(2), by striking ‘‘described
in clauses (i) and (ii)’’ in the sentence following sub-
paragraph (B) (as amended by subsection (a)) and
all that follows through ‘‘that clause’’ and inserting
‘‘who elects under subparagraph (B) not to partici-
pate in the Plan’’;
(2) in subsection (a)(4)—
(A) by striking ‘‘not to participate in the
Plan’’ in subparagraph (A); and
(B) by striking ‘‘to participate in the
Plan’’ in subparagraph (B); and
(3) in subsection (e), by striking ‘‘making such
election’’.
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(d) EFFECTIVE DATE.—The amendments made by
this section apply only with respect to a notification under
section 12731(d) of title 10, United States Code, made
after January 1, 2001, that a member of a reserve compo-
nent has completed the years of service required for eligi-
bility for reserve-component retired pay.
SEC. 643. EFFECTIVE DATE OF DISABILITY RETIREMENT
FOR MEMBERS DYING IN CIVILIAN MEDICAL
FACILITIES.
(a) IN GENERAL.—(1) Chapter 61 of title 10, United
States Code, is amended by inserting after section 1219
the following new section:
‘‘§ 1220. Members dying in civilian medical facilities:
authority for determination of later time
of death to allow disability retirement
‘‘(a) AUTHORITY FOR LATER TIME-OF-DEATH DE-
TERMINATION TO ALLOW DISABILITY RETIREMENT.—In
the case of a member of the armed forces who dies in a
civilian medical facility in a State, the Secretary concerned
may, solely for the purpose of allowing retirement of the
member under section 1201 or 1204 of this title and sub-
ject to subsection (b), specify a date and time of death
of the member later than the date and time of death deter-
mined by the attending physician in that civilian medical
facility.
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‘‘(b) LIMITATIONS.—A date and time of death may
be determined by the Secretary concerned under sub-
section (a) only if that date and time—
‘‘(1) are consistent with the date and time of
death that reasonably could have been determined by
an attending physician in a military medical facility
if the member had died in a military medical facility
in the same State as the civilian medical facility; and
‘‘(2) are not more than 48 hours later than the
date and time of death determined by the attending
physician in the civilian medical facility.
‘‘(c) STATE DEFINED.—In this section, the term
‘State’ includes the District of Columbia and any Com-
monwealth or possession of the United States.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1219 the following new item:
‘‘1220. Members dying in civilian medical facilities: authority for determination
of later time of death to allow disability retirement.’’.
(b) EFFECTIVE DATE.—(1) Section 1220 of title 10,
United States Code, as added by subsection (a), shall
apply with respect to any member of the Armed Forces
dying in a civilian medical facility on or after January 1,
1998.
(2) In the case of any such member dying on or after
such date and before the date of the enactment of this
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Act, any specification by the Secretary concerned under
such section with respect to the date and time of death
of such member shall be made not later than 180 days
after the date of the enactment of this Act.
Subtitle E—Other Matters
SEC. 651. PARTICIPATION IN THRIFT SAVINGS PLAN.
For purposes of subtitle F of title VI of the National
Defense Authorization Act for Fiscal Year 2000 (Public
Law 106–65; 113 Stat. 670), both of the conditions under
section 663(b)(1) of such Act shall be considered met on
July 15, 2001 (unless earlier met).
TITLE VII—HEALTH CARE
PROVISIONS
Subtitle A—Health Care Services
SEC. 701. TWO-YEAR EXTENSION OF AUTHORITY FOR USE
OF CONTRACT PHYSICIANS AT MILITARY EN-
TRANCE PROCESSING STATIONS AND ELSE-
WHERE OUTSIDE MEDICAL TREATMENT FA-
CILITIES.
Section 1091(a)(2) of title 10, United States Code,
is amended by striking ‘‘December 31, 2000’’ in the sec-
ond sentence and inserting ‘‘December 31, 2002’’.
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under section 3741, 6241, or 8741 of this title or
section 491 of title 14.
‘‘(2) The term ‘dependent’ has the meaning
given that term in subparagraphs (A), (B), (C), and
(D) of section 1072(2) of this title.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1074g the following new item:
‘‘1074h. Medical and dental care: medal of honor recipients; dependents.’’.
(b) EFFECTIVE DATE.—Section 1074h of title 10,
United States Code, shall apply with respect to medical
and dental care provided on or after the date of the enact-
ment of this Act.
SEC. 703. PROVISION OF DOMICILIARY AND CUSTODIAL
CARE FOR CHAMPUS BENEFICIARIES AND
CERTAIN FORMER CHAMPUS BENEFICIARIES.
(a) IN GENERAL.—Section 703(a) 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 adding at the end the following:
‘‘(4) The Secretary may provide payment for domi-
ciliary or custodial care services provided to an eligible
beneficiary for which payment was discontinued by reason
of section 1086(d) of title 10, United States Code, and
subsequently reestablished under other legal authority.
Such payment is authorized for the period beginning on
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the date of discontinuation of payment for domiciliary or
custodial care services and ending on the date of reestab-
lishment of payment for such services.’’.
(b) COST LIMITATION FOR INDIVIDUAL CASE MAN-
AGEMENT 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 sub-
paragraph (A) for a fiscal year may not exceed
$100,000,000.’’.
(2) Section 703 of the National Defense Authoriza-
tion 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.’’.
(3) The amendments made by paragraphs (1) and (2)
shall apply to fiscal years after fiscal year 1999.
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SEC. 704. DEMONSTRATION PROJECT FOR EXPANDED AC-
CESS TO MENTAL HEALTH COUNSELORS.
(a) REQUIREMENT TO CONDUCT DEMONSTRATION
PROJECT.—The Secretary of Defense shall conduct a
demonstration project under which licensed and certified
professional mental health counselors who meet eligibility
requirements for participation as providers under the Ci-
vilian Health and Medical Program of the Uniformed
Services (hereafter in this section referred to as
‘‘CHAMPUS’’) or the TRICARE program may provide
services to covered beneficiaries under chapter 55 of title
10, United States Code, without referral by physicians or
adherence to supervision requirements.
(b) DURATION AND LOCATION OF PROJECT.—The
Secretary shall conduct the demonstration project required
by subsection (a)—
(1) during the 2-year period beginning October
1, 2001; and
(2) in one established TRICARE region.
(c) REGULATIONS.—The Secretary shall prescribe
regulations regarding participation in the demonstration
project required by subsection (a).
(d) PLAN FOR PROJECT.—Not later than March 31,
2001, the Secretary shall submit to the Committees on
Armed Services of the Senate and the House of Represent-
atives a plan to carry out the demonstration project. The
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plan shall include, but not be limited to, a description of
the following:
(1) The TRICARE region in which the project
will be conducted.
(2) The estimated funds required to carry out
the demonstration project.
(3) The criteria for determining which profes-
sional mental health counselors will be authorized to
participate under the demonstration project.
(4) The plan of action, including critical mile-
stone dates, for carrying out the demonstration
project.
(e) REPORT.—Not later than February 1, 2003, the
Secretary shall submit to Congress a report on the dem-
onstration project carried out under this section. The re-
port shall include the following:
(1) A description of the extent to which expend-
itures for reimbursement of licensed or certified pro-
fessional mental health counselors change as a result
of allowing the independent practice of such coun-
selors.
(2) Data on utilization and reimbursement re-
garding non-physician mental health professionals
other than licensed or certified professional mental
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health counselors under CHAMPUS and the
TRICARE program.
(3) Data on utilization and reimbursement re-
garding physicians who make referrals to, and su-
pervise, mental health counselors.
(4) A description of the administrative costs in-
curred as a result of the requirement for documenta-
tion of referral to mental health counselors and su-
pervision activities for such counselors.
(5) For each of the categories described in
paragraphs (1) through (4), a comparison of data
for a 1-year period for the area in which the dem-
onstration project is being implemented with cor-
responding data for a similar area in which the dem-
onstration project is not being implemented.
(6) A description of the ways in which allowing
for independent reimbursement of licensed or cer-
tified professional mental health counselors affects
the confidentiality of mental health and substance
abuse services for covered beneficiaries under
CHAMPUS and the TRICARE program.
(7) A description of the effect, if any, of chang-
ing reimbursement policies on the health and treat-
ment of covered beneficiaries under CHAMPUS and
the TRICARE program, including a comparison of
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the treatment outcomes of covered beneficiaries who
receive mental health services from licensed or cer-
tified professional mental health counselors acting
under physician referral and supervision, other non-
physician mental health providers recognized under
the program, and physicians, with treatment out-
comes under the demonstration project allowing
independent practice of professional counselors on
the same basis as other non-physician mental health
providers.
(8) The effect of policies of the Department of
Defense on the willingness of licensed or certified
professional mental health counselors to participate
as health care providers in CHAMPUS and the
TRICARE program.
(9) Any policy requests or recommendations re-
garding mental health counselors made by health
care plans and managed care organizations partici-
pating in CHAMPUS or the TRICARE program.
SEC. 705. TELERADIOLOGY DEMONSTRATION PROJECT.
(a) REQUIREMENT TO CONDUCT PROJECT.—(1) The
Secretary of Defense shall conduct a demonstration
project for the purpose of increasing efficiency of oper-
ations with respect to teleradiology at a military medical
treatment facility and supporting remote clinics and in-
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creasing coordination with respect to teleradiology between
such facility and clinics. Under the project, a military
medical treatment facility and each clinic supported by
such facility shall be linked by a digital radiology network
through which digital radiology X-rays may be sent elec-
tronically from clinics to the military medical treatment
facility.
(2) The demonstration project shall be conducted at
a multi-specialty tertiary-care military medical treatment
facility affiliated with a university medical school, that is
supported by at least five geographically dispersed remote
clinics of the Departments of the Army, Navy, and Air
Force, and clinics of the Department of Veterans Affairs
and the Coast Guard.
(b) DURATION OF PROJECT.—The Secretary shall
conduct the project during the 2-year period beginning on
the date of the enactment of this Act.
Subtitle B—TRICARE Program
SEC. 711. ADDITIONAL BENEFICIARIES UNDER TRICARE
PRIME REMOTE PROGRAM IN THE CONTI-
NENTAL UNITED STATES.
(a) COVERAGE OF OTHER UNIFORMED SERVICES.—
(1) Section 1074(c) of title 10, United States Code, is
amended—
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(A) by striking ‘‘armed forces’’ each place it ap-
pears, except in paragraph (3)(A), and inserting
‘‘uniformed services’’;
(B) in paragraph (1), by inserting after ‘‘mili-
tary 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 Sec-
retary of Defense may not require a member of the
armed forces described in subparagraph (B)’’ and
inserting ‘‘A member of the uniformed services de-
scribed 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.
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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 add-
ing at the end the following:
‘‘(3) The terms ‘uniformed services’ and ‘ad-
ministering Secretaries’ have the meanings given
those terms in section 1072 of title 10, United
States Code.’’.
(3) Section 706(b) of the National Defense Author-
ization 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 add-
ing 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 sub-
section (a) of a member of the uniformed services referred
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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 ar-
rangements with contractors under the TRICARE pro-
gram 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 Author-
ization 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 depend-
ent of the member, as the case may be,’’ after ‘‘(2)
A member’’.
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(c) EFFECTIVE DATE.—(1) The amendments made
by subsection (a)(2), with respect to members of the uni-
formed 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 1 year after the date of
the enactment of this Act.
(B) The date on which the amendments made
by 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 Oce-
anic and Atmospheric Administration, or the Commis-
sioned Corps of the Public Health Service, or to a depend-
ent of a member of a uniformed service.
SEC. 712. ELIMINATION OF COPAYMENTS FOR IMMEDIATE
FAMILY.
(a) NO COPAYMENT FOR IMMEDIATE FAMILY.—Sec-
tion 1097a of title 10, United States Code, is amended—
(1) by redesignating subsection (e) as sub-
section (f); and
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(2) by inserting after subsection (d) the fol-
lowing 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(2) 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. MODERNIZATION OF TRICARE BUSINESS PRAC-
TICES AND INCREASE OF USE OF MILITARY
TREATMENT FACILITIES.
(a) REQUIREMENT
TO
IMPLEMENT
INTERNET-
BASED SYSTEM.—Not later than October 1, 2001, the
Secretary of Defense shall implement a system to simplify
and make accessible through the use of the Internet,
through commercially available systems and products, crit-
ical administrative processes within the military health
care system and the TRICARE program. The purpose of
the system shall be to enhance efficiency, improve service,
and achieve commercially recognized standards of per-
formance.
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(b) REQUIREMENTS OF SYSTEM.—The system re-
quired by subsection (a)—
(1) shall comply with patient confidentiality and
security requirements, and incorporate data require-
ments, that are currently widely used by insurers
under Medicare and commercial insurers;
(2) shall be designed to achieve improvements
with respect to—
(A) the availability and scheduling of ap-
pointments;
(B) the filing, processing, and payment of
claims;
(C) marketing and information initiatives;
(D) the continuation of enrollments with-
out expiration; and
(E) the portability of enrollments nation-
wide; and
(3) may be implemented through a contractor
under TRICARE Prime.
(c) AREAS
OF IMPLEMENTATION.—The Secretary
shall implement the system required by subsection (a) in
at least one region under the TRICARE program.
(d) PLAN FOR IMPROVED PORTABILITY OF BENE-
FITS.—Not later than March 15, 2001, the Secretary of
Defense shall submit to the Committees on Armed Serv-
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ices of the Senate and the House of Representatives a plan
to provide portability and reciprocity of benefits for all en-
rollees under the TRICARE program throughout all
TRICARE regions.
(e) INCREASE
OF
USE
OF
MILITARY
MEDICAL
TREATMENT FACILITIES.—The Secretary shall initiate a
program to maximize the use of military medical treat-
ment facilities by improving the efficiency of health care
operations in such facilities.
(f) 
DEFINITION.—In 
this 
section 
the 
term
‘‘TRICARE program’’ shall have the meaning given such
term in section 1072 of title 10, United States Code.
SEC. 714. CLAIMS PROCESSING IMPROVEMENTS.
Beginning on the date of the enactment of this Act,
the Secretary of Defense shall take all necessary actions
to implement the following improvements with respect to
processing of claims under the TRICARE program:
(1) Use of the TRICARE encounter data infor-
mation system rather than the health care service
record in maintaining information on covered bene-
ficiaries under chapter 55 of title 10, United States
Code.
(2) Elimination of all delays in payment of
claims to health care providers that may result from
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the development of the health care service record or
TRICARE encounter data information.
(3) Require all health care providers under the
TRICARE program that the Secretary determines
are high-volume providers to submit claims electroni-
cally.
(4) Process 50 percent of all claims by health
care providers and institutions under the TRICARE
program by electronic means.
(5) Authorize managed care support contractors
under the TRICARE program to require providers
to access information on the status of claims
through the use of telephone automated voice re-
sponse units.
SEC. 715. PROHIBITION AGAINST REQUIREMENT FOR
PRIOR AUTHORIZATION FOR CERTAIN RE-
FERRALS; REPORT ON NONAVAILABILITY-OF-
HEALTH-CARE STATEMENTS.
(a) PROHIBITION REGARDING PRIOR AUTHORIZA-
TION
FOR REFERRALS.—(1) Chapter 55 of title 10,
United States Code, is amended by inserting after section
1095e the following new section:
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‘‘§ 1095f. TRICARE program: referrals for specialty
health care
‘‘The Secretary of Defense shall provide that no con-
tract for managed care support under the TRICARE pro-
gram shall require a managed care support contractor to
require a primary care provider or specialty care provider
to obtain prior authorization before referring a patient to
a specialty care provider that is part of the network of
health care providers or institutions of the contractor.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1095e the following new item:
‘‘1095f. TRICARE program: referrals for specialty health care.’’.
(b) REPORT.—Not later than February 1, 2001, the
Comptroller General shall submit to Congress a report on
the financial and management implications of eliminating
the requirement to obtain nonavailability-of-health-care
statements under section 1080 of title 10, United States
Code.
(c) EFFECTIVE DATE.—Section 1095f of title 10,
United States Code, as added by subsection (a), shall
apply with respect to a managed care support contract en-
tered into by the Department of Defense after the date
of the enactment of this Act.
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SEC. 716. AUTHORITY TO ESTABLISH SPECIAL LOCALITY-
BASED REIMBURSEMENT RATES; REPORTS.
(a) IN GENERAL.—Section 1079(h) of title 10,
United States Code, is amended by adding at the end the
following new paragraph:
‘‘(5) To assure access to care for all covered bene-
ficiaries, the Secretary of Defense, in consultation with the
other administering Secretaries, shall designate specific
rates for reimbursement for services in certain localities
if the Secretary determines that without payment of such
rates access to health care services would be severely im-
paired. Such a determination shall be based on consider-
ation of the number of providers in a locality who provide
the services, the number of such providers who are
CHAMPUS participating providers, the number of cov-
ered beneficiaries under CHAMPUS in the locality, the
availability of military providers in the location or a near-
by location, and any other factors determined to be rel-
evant by the Secretary.’’.
(b) REPORTS.—(1) Not later than March 31, 2001,
the Secretary of Defense shall submit to the Committees
on Armed Services of the House of Representatives and
the Senate and the General Accounting Office a report
on actions taken to carry out section 1079(h)(5) of title
10, United States Code (as added by subsection (a)) and
section 1097b of such title.
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(2) Not later than May 1, 2001, the Comptroller Gen-
eral shall submit to Congress a report analyzing the utility
of—
(A) increased reimbursement authorities with
respect to ensuring the availability of network pro-
viders 
and 
nonnetwork 
providers 
under 
the
TRICARE Program to covered beneficiaries under
chapter 55 of such title; and
(B) requiring a reimbursement limitation of 70
percent of usual and customary rates rather than
115 percent of maximum allowable charges under
the Civilian Health and Medical Program of the
Uniformed Services.
SEC. 717. REIMBURSEMENT FOR CERTAIN TRAVEL EX-
PENSES.
(a) IN GENERAL.—Chapter 55 of title 10, United
States Code, is amended by inserting after section 1074h
(as added by section 702) the following new section:
‘‘§ 1074i. Reimbursement for certain travel expenses
‘‘In any case in which a covered beneficiary is re-
ferred by a primary care physician to a specialty care pro-
vider who provides services more than 100 miles from the
location in which the primary care provider provides serv-
ices to the covered beneficiary, the Secretary shall provide
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reimbursement for reasonable travel expenses for the cov-
ered beneficiary.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 1074h the following new
item:
‘‘1074i. Reimbursement for certain travel expenses.’’.
SEC. 718. REDUCTION OF CATASTROPHIC CAP.
(a) IN GENERAL.—Chapter 55 of title 10, United
States Code, is amended in section 1095d by adding at
the end the following new subsection:
‘‘(c) REDUCTION OF CATASTROPHIC CAP.—The Sec-
retary shall reduce the catastrophic cap for covered bene-
ficiaries under TRICARE Standard and TRICARE Extra
to $3,000.’’.
(b) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
‘‘§ 1095d. TRICARE program: waiver of certain
deductibles; reduction of catastrophic
cap’’.
(2) The item relating to section 1095d in the table
of sections at the beginning of such chapter 55 is amended
to read as follows:
‘‘1095d. TRICARE program: waiver of certain deductibles; reduction of cata-
strophic cap.’’.
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SEC. 719. REPORT ON PROTECTIONS AGAINST HEALTH
CARE PROVIDERS SEEKING DIRECT REIM-
BURSEMENT FROM MEMBERS OF THE UNI-
FORMED SERVICES.
Not later than January 31, 2001, the Secretary of
Defense shall submit to the Committees on Armed Serv-
ices of the House of Representatives and the Senate a re-
port recommending practices to discourage or prohibit
health care providers under the TRICARE Program from
inappropriately seeking direct reimbursement from mem-
bers of the uniformed services or their dependents for
health care received by such members or dependents.
SEC. 720. DISENROLLMENT PROCESS FOR TRICARE RE-
TIREE DENTAL PROGRAM.
Section 1076c of title 10, United States Code, is
amended—
(1) by redesignating subsection (i) as subsection
(j); and
(2) by inserting after subsection (h) the fol-
lowing new subsection (i):
‘‘(i) DISENROLLMENT PROCESS FOR TRICARE RE-
TIREE DENTAL PROGRAM.—With respect to the provision
of dental care to a retired member of the uniformed serv-
ices or the dependent of such a member under the
TRICARE program, the Secretary of Defense—
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‘‘(A) shall require that any TRICARE dental
insurance contract allow for a period of up to 30
days, beginning on the date of the submission of an
application for enrollment by the member or depend-
ent, during which the member or dependent may
disenroll;
‘‘(B) shall provide for limited circumstances
under which disenrollment shall be permitted during
the 24-month initial enrollment period, without jeop-
ardizing the fiscal integrity of the dental program.
‘‘(2) The circumstances described in paragraph
(1)(B) shall include—
‘‘(A) a case in which a retired member or de-
pendent who is also a Federal employee is assigned
to a location overseas which prevents utilization of
dental benefits in the United States;
‘‘(B) a case in which such a member or depend-
ent provides medical documentation with regard to a
diagnosis of a serious or terminal illness which pre-
cludes the member or dependent from obtaining den-
tal care;
‘‘(C) a case in which severe financial hardship
would result; and
‘‘(D) any other instances which the Secretary
considers appropriate.
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‘‘(3) A retired member or dependent described in
paragraph (1)—
‘‘(A) shall make any initial requests for
disenrollment 
under 
this 
subsection 
to 
the
TRICARE dental insurance contractor; and
‘‘(B) may appeal a decision by the contractor,
or policies with respect to the provision of dental
care to retirees and their dependents under the
TRICARE program, to the TRICARE Management
Activity.
‘‘(4) In a case of an appeal described in paragraph
(3)(B) the contractor shall refer all relevant information
collected by the contractor to the TRICARE Management
Activity.’’.
Subtitle C—Health Care Programs
for 
Medicare-Eligible 
Depart-
ment of Defense Beneficiaries
SEC. 721. IMPLEMENTATION OF TRICARE SENIOR PHAR-
MACY PROGRAM.
Section 723 of the Strom Thurmond National De-
fense Authorization Act for Fiscal Year 1999 (Public Law
105–261; 112 Stat. 2068; 10 U.S.C. 1073 note) is
amended—
(1) in subsection (a)—
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(A) by striking ‘‘October 1, 1999’’ and in-
serting ‘‘April 1, 2001’’; and
(B) by striking ‘‘who reside in an area se-
lected under subsection (f)’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) PROGRAM REQUIREMENTS.—The same coverage
for pharmacy services and the same procedures for cost
sharing and reimbursement as are applicable under sec-
tion 1086 of title 10, United States Code, shall apply with
respect to the program required by subsection (a).’’;
(3) in subsection (d)—
(A) by striking ‘‘December 31, 2000’’ and
inserting ‘‘December 31, 2001’’; and
(B) by striking ‘‘December 31, 2002’’ and
inserting ‘‘December 31, 2003’’;
(4) in subsection (e)—
(A) in paragraph (1)—
(i) in subparagraph (B), by inserting
‘‘and’’ after the semicolon;
(ii) in subparagraph (C), by striking
‘‘; and’’ and inserting a period; and
(iii) by striking subparagraph (D);
and
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(B) in paragraph (2), by striking ‘‘at the
time’’ and all that follows through ‘‘facility’’
and inserting ‘‘before April 1, 2001, has at-
tained the age of 65 and did not enroll in the
program described in such paragraph’’; and
(5) by striking subsection (f).
SEC. 722. STUDY ON HEALTH CARE OPTIONS FOR MEDI-
CARE-ELIGIBLE MILITARY RETIREES.
(a) REQUIREMENT TO CONDUCT STUDY.—The Sec-
retary of Defense shall enter into an agreement with a
federally funded research and development center for the
purpose of having such center conduct an independent
study on alternatives for providing continued health care
benefits for Medicare-eligible military retirees.
(b) MATTERS TO BE INCLUDED.—(1) The study
shall consider the possibility of providing health care to
such retirees through at least the following alternatives,
either individually or in combination, and shall include an
analysis of the mandatory and discretionary funding re-
quirements for implementation of each alternative for each
year of a 10-year period:
(A) The use of mandatory enrollments in any
health care option.
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(B) The creation, integration, and coordination
of a Department of Defense-Medicare supplemental
plan that—
(i) includes benefits similar to those cov-
ered under a standard Medicare supplemental
health insurance policy; and
(ii) requires participation in, and coordina-
tion with, available Medicare prescription drug
benefits.
(C) Space-available health care in military med-
ical treatment facilities and participation in the
standard 
prescription 
drug 
plan 
under 
the
TRICARE program.
(D) Increased participation in, and coordination
with, managed care programs of the Veterans
Health Administration.
(2) The study shall consider—
(A) the findings and recommendations in all re-
ports prepared by the Comptroller General on dem-
onstration programs of the Department of Defense
involving Medicare-eligible military retirees; and
(B) the existence of multiple overlapping bene-
fits for such retirees, including benefits available
through the Veterans Health Administration, Medi-
care, and private insurance.
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(c) INDEPENDENT ADVISORY COMMITTEE.—(1) The
Secretary shall establish an independent advisory com-
mittee to assist the federally funded research and develop-
ment center described in subsection (a) in conducting the
study required by this section. The Secretary shall appoint
the members of the committee from among individuals
who—
(A) are not members of the uniformed services
or civilian employees of the Department of Defense;
(B) possess expertise in health insurance mat-
ters, including matters regarding medigap plans and
TRICARE supplemental insurance policies;
(C) are representative of nongovernmental orga-
nizations and associations that represent the views
and interests of covered beneficiaries under chapter
55 of title 10, United States Code;
(D) are knowledgeable regarding the Medicare
system, the military health care system, and the Vet-
erans’ Health Administration; and
(E) represent associations of major health care
providers and institutions.
(2) Members of the committee shall be appointed for
the life of the committee.
(3)(A) Each member of the committee who is not an
employee of the Government shall be paid at a rate equal
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to the daily equivalent of the annual rate of basic pay pre-
scribed for level IV of the Executive Schedule under sec-
tion 5315 of title 5, United States Code, for each day (in-
cluding travel time) during which such member is engaged
in performing the duties of the committee.
(B) Members of the committee may travel on aircraft,
vehicles, or other conveyances of the Armed Forces when
travel is necessary in the performance of a duty of the
committee except when the cost of commercial transpor-
tation is less expensive.
(C) The members of the committee may be allowed
travel expenses, including per diem in lieu of subsistence,
at rates authorized for employees of agencies under sub-
chapter 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 committee.
(D)(i) A member of the committee who is an annu-
itant otherwise covered by section 8344 or 8468 of title
5, United States Code, by reason of membership on the
committee shall not be subject to the provisions of such
section with respect to such membership.
(ii) A member of the committee who is a member or
former member of a uniformed service shall not be subject
to the provisions of subsections (b) and (c) of section 5532
of such title with respect to membership on the committee.
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(4) The committee shall terminate 60 days after the
date on which the final report is submitted under sub-
section (d).
(d)(1) DEADLINE FOR COMPLETION.—Not later than
September 30, 2002, the federally funded research and de-
velopment center described in subsection (a) shall submit
to the Secretary a report on the study, including its find-
ings and conclusions concerning each of the matters de-
scribed in subsection (b).
(2) Not later than December 31, 2002, the Secretary
shall submit the report, together and any comments of the
Secretary, to Congress, the Secretary of Veterans Affairs,
and the Secretary of Health and Human Services.
(e) COOPERATION BY DEPARTMENT OF DEFENSE.—
The Secretary shall require that all components of the De-
partment of Defense cooperate fully with the federally
funded research and development center carrying out the
study.
SEC. 723. EXTENDED COVERAGE UNDER FEDERAL EMPLOY-
EES HEALTH BENEFITS PROGRAM.
(a) EXPANSION OF COVERAGE FOR RETIREES OVER
AGE 65.—Section 1108 of title 10, United States Code,
is amended by adding at the end the following:
‘‘(m) EXPANSION
OF COVERAGE
FOR RETIREES
OVER AGE 65.—(1) Eligible beneficiaries referred to in
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subsection (b)(1) shall be permitted to enroll, or to extend
a previous enrollment entered into under subsection
(d)(2), during a period of open enrollment for the year
2003 (conducted in the fall of 2002).
‘‘(2) Subject to paragraphs (2) and (3) of subsection
(f), the period of enrollment, or extension of enrollment,
of an eligible beneficiary under paragraph (1) shall be 1
year unless the beneficiary disenrolls before the termi-
nation of the demonstration project.’’.
(b) EXTENSION
OF PROJECT PERIOD.—(1) Sub-
section (d) of such section is amended—
(A) in paragraph (1), by striking ‘‘three con-
tract years’’ and inserting ‘‘four contract years’’;
and
(B) in paragraph (2), by striking ‘‘December
31, 2002’’ in the second sentence and inserting ‘‘De-
cember 31, 2003’’.
(2) Subsection (f)(1) of such section is amended by
striking ‘‘three’’ and inserting ‘‘four’’.
(3) Subsection (k) of such section is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December
31, 2003’’.
(4) Subsection (l)(2) of such section is amended by
striking ‘‘36 months’’ and inserting ‘‘48 months’’.
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(c) ADDITIONAL AREAS OF COVERAGE.—Subsection
(c) of such section is amended—
(1) by striking ‘‘, but not more than ten,’’; and
(2) by striking the third sentence and inserting
the following: ‘‘In establishing the areas, the Sec-
retary and the Director of the Office of Personnel
Management 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 Sub-
vention 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.’’.
SEC. 724. EXTENSION OF TRICARE SENIOR SUPPLEMENT
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, 2003’’.
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SEC. 725. MEDICARE SUBVENTION PROJECT FOR MILITARY
RETIREES AND DEPENDENTS.
(a) FUTURE REPEAL OF LIMITATION ON NUMBER OF
SITES.—Effective January 1, 2001, paragraph (2) of sec-
tion 1896(b) of the Social Security Act (42 U.S.C.
1395ggg(b)) is amended to read as follows:
‘‘(2) LOCATION OF SITES; FACILITIES.—Subject
to annual appropriations, the program shall be con-
ducted in any site that provides a full range of com-
prehensive health care and that is designated jointly
by the administering Secretaries. The program shall
be conducted nationwide by January 1, 2006.’’.
(b) AUTHORITY TO MODIFY AGREEMENT.—Such sec-
tion is further amended in paragraph (1)(A) by inserting
‘‘, which may be modified if necessary’’ before the closing
parenthesis.
(c) MAKING PROJECT PERMANENT; CHANGES
IN
PROJECT REFERENCES.—
(1) ELIMINATION OF TIME LIMITATION.—Para-
graph (4) of section 1896(b) of such Act is repealed.
(2) TREATMENT OF CAPS.—Subsection (i)(4) of
section 1896 of such Act is amended by adding at
the end the following:
‘‘This paragraph shall not apply after calendar year
2001.’’.
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(3) CONFORMING CHANGES OF REFERENCES TO
DEMONSTRATION PROJECT.—Section 1896 of such
Act is further amended—
(A) in the heading, by striking ‘‘DEM-
ONSTRATION
PROJECT’’ and inserting ‘‘PRO-
GRAM’’;
(B) by amending subsection (a)(2) to read
as follows:
‘‘(2) PROGRAM.—The term ‘program’ means
the program carried out under this section.’’;
(C) in the heading to subsection (b), by
striking ‘‘DEMONSTRATION PROJECT’’ and in-
serting ‘‘PROGRAM’’;
(D) by striking ‘‘demonstration project’’ or
‘‘project’’ each place either appears and insert-
ing ‘‘program’’;
(E) in subsection (k)(2)—
(i) by striking ‘‘EXTENSION AND EX-
PANSION
OF
DEMONSTRATION
PROJECT’’
and inserting ‘‘PROGRAM’’; and
(ii) by striking subparagraphs (A)
through (C) and inserting the following:
‘‘(A) whether there is a cost to the health
care program under this title in conducting the
program under this section; and
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‘‘(B) whether the terms and conditions of
the program should be modified.’’.
(4) REPORTS.—Subsection (k)(1) of such sec-
tion 1896 is amended in the second sentence—
(A) 
by 
striking 
‘‘the 
demonstration
project’’ and inserting ‘‘the program’’;
(B) by striking ‘‘, and the’’ and all that
follows through ‘‘date’’;
(C) by redesignating subparagraph (O) as
subparagraph (S); and
(D) by inserting after subparagraph (N)
the following new subparagraphs:
‘‘(O) Patient satisfaction with the pro-
gram.
‘‘(P) The ability of the Department of De-
fense to operate an effective and efficient man-
aged care system for Medicare beneficiaries.
‘‘(Q) The ability of the Department of De-
fense to meet the managed care access and
quality of care standards under Medicare.
‘‘(R) The adequacy of the data systems of
the Department of Defense for providing time-
ly, necessary, and accurate information required
to properly manage the program.’’.
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(5) ADDITIONAL CONFORMING AMENDMENTS.—
Section 1896(b) of such Act is further amended—
(A) by redesignating paragraph (5) as
paragraph (4); and
(B) in such paragraph, by striking ‘‘At
least 60 days’’ and all that follows through
‘‘agreement’’ and inserting ‘‘The administering
Secretaries shall also submit on an annual basis
the most current agreement’’.
(6) CONTINUATION OF PROVISION OF CARE.—
Section 1896(b) of such Act is further amended by
adding at the end the following new paragraph:
‘‘(5) CONTINUATION OF PROVISION OF CARE.—
With respect to any individual who receives health
care benefits under this section before the date of
the enactment of this paragraph, the administering
Secretaries shall not terminate such benefits unless
the individual ceases to fall within the definition of
the term ‘Medicare-eligible military retiree or de-
pendent’ (as defined in subsection (a)).’’.
(d) PAYMENTS.—
(1) PERMITTING
PAYMENTS
ON
A
FEE-FOR-
SERVICE BASIS.—Section 1896 of such Act is fur-
ther amended by adding at the end the following
new subsection:
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‘‘(l) PAYMENT ON A FEE-FOR-SERVICE BASIS.—In-
stead of the payment method described in subsection (i)(1)
and in the case of individuals who are not enrolled in the
program in the manner described in subsection (d)(1), the
Secretary may reimburse the Secretary of Defense for
services provided under the program at a rate that does
not exceed the rate of payment that would otherwise be
made under this title for such services if sections 1814(c)
and 1835(d), and paragraphs (2) and (3) of section
1862(a), did not apply.’’.
(2) PAYMENTS TO MILITARY TREATMENT FA-
CILITIES.—Such section is further amended by add-
ing at the end the following new subsection:
‘‘(m) PAYMENTS TO MILITARY TREATMENT FACILI-
TIES.—The Secretary of Defense shall reimburse military
treatment facilities for the provision of health care under
this section.’’.
(3) CONFORMING AMENDMENTS.—Such section
is further amended—
(A) 
in 
subsections 
(b)(1)(B)(v) 
and
(b)(1)(B)(viii)(I), by inserting ‘‘or subsection
(l)’’ after ‘‘subsection (i)’’;
(B) in subsection (b)(2), by adding at the
end the following: ‘‘If feasible, at least one of
the sites shall be conducted using the fee-for-
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service reimbursement method described in sub-
section (l).’’;
(C) in subsection (d)(1)(A), by inserting
‘‘(insofar as it provides for the enrollment of in-
dividuals and payment on the basis described in
subsection (i))’’ before ‘‘shall meet’’;
(D) in subsection (d)(1)(A), by inserting
‘‘and the program (insofar as it provides for
payment for facility services on the basis de-
scribed in subsection (l)) shall meet all require-
ments for such facilities under this title’’ after
‘‘medicare payments’’;
(E) in subsection (d)(2), by inserting ‘‘, in-
sofar as it provides for the enrollment of indi-
viduals and payment on the basis described in
subsection (i),’’ before ‘‘shall comply’’;
(F) in subsection (g)(1), by inserting ‘‘, in-
sofar as it provides for the enrollment of indi-
viduals and payment on the basis described in
subsection (i),’’ before ‘‘the Secretary of De-
fense’’;
(G) in subsection (i)(1), by inserting ‘‘and
subsection (l)’’ after ‘‘of this subsection’’; and
(H) in subsection (j)(2)(B)(ii), by inserting
‘‘or subsection (l)’’ after ‘‘subsection (i)(1)’’.
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(3) EFFECTIVE DATE.—The amendments made
by this subsection take effect on January 1, 2001,
and apply to services furnished on or after such
date.
(e) ELIMINATION
OF
RESTRICTION
ON
ELIGI-
BILITY.—Section 1896(b)(1) of such Act is amended by
adding at the end the following new subparagraph:
‘‘(C) ELIMINATION OF RESTRICTIVE POL-
ICY.—If the enrollment capacity in the program
has been reached at a particular site designated
under paragraph (2) and the Secretary there-
fore limits enrollment at the site to Medicare-
eligible military retirees and dependents who
are enrolled in TRICARE Prime (as defined for
purposes of chapter 55 of title 10, United
States Code) at the site immediately before at-
taining 65 years of age, participation in the
program by a retiree or dependent at such site
shall not be restricted based on whether the re-
tiree or dependent has a civilian primary care
manager instead of a military primary care
manager.’’.
(f) MEDIGAP PROTECTION FOR ENROLLEES.—Sec-
tion 1896 of such Act is further amended by adding at
the end the following new subsection:
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‘‘(m) MEDIGAP PROTECTION FOR ENROLLEES.—(1)
Subject to paragraph (2), effective January 1, 2001, the
provisions of section 1882(s)(3) (other than clauses (i)
through (iv) of subparagraph (B)) and 1882(s)(4) of the
Social Security Act shall apply to any enrollment (and ter-
mination of enrollment) in the program (for which pay-
ment is made on the basis described in subsection (i)) in
the same manner as they apply to enrollment (and termi-
nation of enrollment) with a Medicare+Choice organiza-
tion in a Medicare+Choice plan.
‘‘(2) In applying paragraph (1)—
‘‘(A) in the case of enrollments occurring before
January 1, 2001, any reference in clause (v)(III) or
(vi) of section 1882(s)(3)(B) of such Act to ‘within
the first 12 months of such enrollment’ or ‘by not
later than 12 months after the effective date of such
enrollment’ is deemed a reference to during calendar
year 2001; and
‘‘(B) the notification required under section
1882(s)(3)(D) of such Act shall be provided in a
manner specified by the Secretary of Defense in con-
sultation with the Secretary of Health and Human
Services.’’.
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(g) IMPLEMENTATION
OF
UTILIZATION
REVIEW
PROCEDURES.—Subsection (b) of such section is further
amended by adding at the end the following:
‘‘(6) UTILIZATION REVIEW PROCEDURES.—The
Secretary of Defense shall develop and implement
procedures to review utilization of health care serv-
ices by Medicare-eligible military retirees and de-
pendents under this section in order to enable the
Secretary of Defense to more effectively manage the
use of military medical treatment facilities by such
retirees and dependents.’’.
Subtitle D—Other Matters
SEC. 731. TRAINING IN HEALTH CARE MANAGEMENT AND
ADMINISTRATION.
(a) EXPANSION OF PROGRAM.—Section 715(a) of the
National Defense Authorization Act for Fiscal Year 1996
(Public Law 104–106; 110 Stat 375; 10 U.S.C. 1073
note) is amended—
(1) in paragraph (1)—
(A) by inserting ‘‘, deputy commander, and
managed care coordinator’’ after ‘‘commander’’;
and
(B) by inserting ‘‘and any other person’’
after ‘‘Defense’’;
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(2) by redesignating subsection (b) as sub-
section (c); and
(3) by inserting after subsection (a) the fol-
lowing new subsection:
‘‘(b) LIMITATION ON ASSIGNMENT UNTIL COMPLE-
TION OF TRAINING.—No person may be assigned as the
commander, deputy commander, or managed care coordi-
nator of a military medical treatment facility or as a
TRICARE lead agent or senior member of the staff of
a TRICARE lead agent office until the Secretary of the
military department concerned submits a certification to
the Secretary of Defense that such person has completed
the training described in subsection (a).’’.
(b) REPORT REQUIREMENT.—(1) Not later than 6
months after the date of the enactment of this Act, the
Secretary of Defense shall submit to Congress a report
on progress in meeting the requirements in such section
regarding implementation of a professional educational
program to provide appropriate training in health care
management and administration.
(2) The report required by paragraph (1) shall in-
clude, but shall not be limited to, the following:
(A) A survey of professional civilian certifi-
cations and credentials which demonstrate achieve-
ment of the requirements of such section.
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(B) A description of the continuing education
activities required to obtain initial certification and
periodic required recertification.
(C) A description of the prominence of such
credentials or certifications among senior civilian
health care executives.
SEC. 732. STUDY OF ACCRUAL FINANCING FOR HEALTH
CARE FOR MILITARY RETIREES.
(a) STUDY REQUIRED.—The Secretary of Defense
shall carry out a study to assess the feasibility and desir-
ability of financing the military health care program for
retirees of the uniformed services on an accrual basis. The
study shall be conducted by one or more Department of
Defense organizations designated by the Secretary.
(b) REPORT.—Not later than February 8, 2001, the
Secretary shall submit to Congress a report on the study,
including any comments on the matters studied that the
Secretary considers appropriate.
SEC. 733. TRACKING PATIENT SAFETY IN MILITARY MED-
ICAL TREATMENT FACILITIES.
(a) CENTRALIZED TRACKING PROCESS.—The Sec-
retary of Defense shall implement a centralized process
for the reporting, compiling, and analysis of errors in the
provision of health care in military medical treatment fa-
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cilities that endanger patients beyond the normal risks as-
sociated with the care and treatment of the patients.
(b) SAFETY INDICATORS, STANDARDS, AND PROTO-
COLS.—The process shall include such indicators, stand-
ards, and protocols as the Secretary of Defense considers
necessary for the establishment and administration of an
effective process.
SEC. 
734. 
PHARMACEUTICAL 
IDENTIFICATION 
TECH-
NOLOGY.
(a) BAR CODE IDENTIFICATION TECHNOLOGY.—The
Secretary of Defense shall develop a system for the use
of bar codes for the identification of pharmaceuticals in
order to provide for the safest use possible of such phar-
maceuticals.
(b) USE
IN
NATIONAL
MAIL
ORDER
PHARMA-
CEUTICALS DEMONSTRATION PROJECT.—The Secretary
shall implement the use of bar code identification of phar-
maceuticals in the administration of the mail order phar-
maceutical demonstration project being carried out under
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).
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SEC. 735. MANAGEMENT OF VACCINE IMMUNIZATION PRO-
GRAM.
(a) IN GENERAL.—(1) Chapter 55 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 1110. Policies and procedures for immunization
program
‘‘(a) SYSTEM AND PROCEDURES FOR TRACKING SEP-
ARATIONS.—(1) The Secretary of each military depart-
ment shall establish a system for tracking, recording, and
reporting separations of members of the armed forces that
result from procedures initiated as a result of a refusal
to participate in the anthrax vaccine immunization pro-
gram.
‘‘(2) The Secretary of Defense shall consolidate the
information recorded under the system described in para-
graph (1) and shall submit to the Committees on Armed
Services of the House of Representatives and the Senate
on an annual basis a report on such information. Such
reports shall include a description of—
‘‘(A) the number of personnel separated, cat-
egorized by military department, rank, and active-
duty or reserve status; and
‘‘(B) any other information determined appro-
priate by the Secretary.
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‘‘(b) 
EMERGENCY
ESSENTIAL
CIVILIAN
PER-
SONNEL.—The Secretary of Defense shall—
‘‘(1) prescribe regulations for the purpose of en-
suring that any civilian employee of the Department
of Defense who is determined to be an emergency es-
sential employee and who is required to participate
in the anthrax vaccination program is notified of the
requirement to participate in the program and the
consequences of a decision not to participate; and
‘‘(2) ensure that any individual who is being
considered for a position as such an employee is no-
tified of the obligation to participate in the program
before being offered employment in such position.
‘‘(c) PROCEDURES FOR MEDICAL AND ADMINISTRA-
TIVE EXEMPTIONS.—(1) The Secretary of Defense shall
establish uniform procedures under which members of the
armed forces may be exempted from participating in the
anthrax vaccination program for either administrative or
medical reasons.
‘‘(2) The Secretaries of the military departments
shall provide for notification of all members of the armed
forces of the procedures described in paragraph (1).
‘‘(d) SYSTEM
FOR MONITORING ADVERSE REAC-
TIONS.—(1) The Secretary of Defense shall establish a
system for monitoring adverse reactions of members of the
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armed forces to the anthrax vaccine which shall include
the following:
‘‘(A) Independent review of Vaccine Adverse
Event Reporting System reports.
‘‘(B) Periodic surveys of personnel to whom the
vaccine is administered.
‘‘(C) A continuing longitudinal study of a pre-
identified group of members of the armed forces (in-
cluding men and women and members from all serv-
ices).
‘‘(D) Active surveillance of a sample of mem-
bers to whom the anthrax vaccine has been adminis-
tered that is sufficient to identify, at the earliest op-
portunity, any patterns of adverse reactions, the dis-
covery of which might be delayed by reliance solely
on the Vaccine Adverse Event Reporting System.
‘‘(2) The Secretary may extend or expand any ongo-
ing or planned study or analysis of trends in adverse reac-
tions of members of the armed forces to the anthrax vac-
cine in order to meet any of the requirements in paragraph
(1).
‘‘(3) The Secretary shall establish guidelines under
which members of the armed forces who are determined
by an independent expert panel to be experiencing unex-
plained adverse reactions may obtain access to a Depart-
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ment of Defense Center of Excellence treatment facility
for expedited treatment and follow up.
‘‘(e) 
VACCINE
DEVELOPMENT
AND
PROCURE-
MENT.—(1) The Secretary of Defense shall develop a plan,
including milestones, for modernizing all vaccines used or
anticipated to be used as part of the protection strategy
for members of the armed forces.
‘‘(2) The Secretary—
‘‘(A) shall, to the maximum extent possible, be
the sole purchaser of a vaccine to immunize mem-
bers of the armed forces and employees of all Fed-
eral agencies;
‘‘(B) shall, to the maximum extent possible,
procure such a vaccine from more than one manu-
facturer; and
‘‘(C) in any case in which the Secretary deter-
mines that sole source procurement of such a vac-
cine is necessary, may not enter into a contract to
purchase such vaccine until 30 days after providing
notification to the Committees on Armed Services of
the House of Representatives and the Senate that
the Secretary intends to enter into a sole source con-
tract for the vaccine.’’.
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(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘1110. Policies and procedures for immunization program.’’.
(b) COMPTROLLER GENERAL REPORTS.—(1)(A) Not
later than April 1, 2002, the Comptroller General shall
submit to the Committees on Armed Service of the House
of Representatives and the Senate a report on the impact
of the anthrax vaccination program on the recruitment
and retention of active duty and reserve military personnel
and civilian personnel of the Armed Forces. The study
shall cover the period beginning on the date of the enact-
ment of this Act and ending on December 31, 2001.
(B) The Comptroller General shall include in the re-
port required by paragraph (1) a description of any per-
sonnel actions (including transfer, termination, or reas-
signment of any personnel) taken as a result of the refusal
of any civilian employee of the Department of Defense to
participate in the anthrax vaccination program.
(2) Not later than March 1 of each of years 2001
through 2004, the Comptroller General shall review and
submit to the Committees on Armed Service of the House
of Representatives and the Senate a report on the finan-
cial operations of the manufacturer of the anthrax vaccine
administered through the anthrax vaccine immunization
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program of the Department of Defense. Under such re-
view, the Comptroller General shall—
(A) consider the findings and observations of
any other Federal or State reports relating to such
financial operations;
(B) examine the compliance of the Department
of Defense and its contractors with the Federal Ac-
quisition Regulation; and
(C) make recommendations for improving the
financial stability of the manufacturer.
(c) DOD REPORTS ON MANAGEMENT OF ANTHRAX
VACCINE IMMUNIZATION PROGRAM.—(1) Not later than
April 1 of each of years 2001 through 2004, the Secretary
of Defense shall submit to the Committees on Armed Serv-
ice of the House of Representatives and the Senate a re-
port describing, with respect to each contract relating to
the anthrax vaccination program, the costs incurred by,
and payments made to, each contractor or other entity en-
gaged in the production, storage, distribution, or mar-
keting of the anthrax vaccine administered by the Depart-
ment of Defense.
(B) The first report submitted under subparagraph
(A) shall include the following:
(i) An estimate of the life-cycle cost for the an-
thrax vaccination program.
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(ii) A description of the acquisition strategy for
the program, including the applicable acquisition
category.
(iii) An assessment of the Governmentwide re-
quirements with respect to the anthrax vaccine and
the financial and manufacturing ability of the manu-
facturer of the anthrax vaccine to meet such require-
ments.
(iv) A description of the status of supplements
to the anthrax vaccine licenses of the contractors
and whether the Food and Drug Administration has
approved or is anticipated to approve all anthrax
vaccine doses manufactured.
(v) A summary of all audits by the Defense
Contract Audit Agency or the Inspector General of
the Department of Defense of anthrax vaccine con-
tracts of the Department of Defense and a descrip-
tion of any actions taken or planned to be taken in
response to recommendations regarding such audits.
(vi) A review of all actions taken by the Depart-
ment of Defense to coordinate with other Federal
agencies to ensure the facility of a manufacturer of
the anthrax vaccine is compliant with all Federal re-
quirements.
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SEC. 736. STUDY ON FEASIBILITY OF SHARING BIOMEDICAL
RESEARCH FACILITY.
(a) STUDY REQUIRED.—The Secretary of the Army
shall conduct a study on the feasibility of the Tripler Army
Medical Center, Hawaii, sharing a biomedical research fa-
cility with the Department of Veterans Affairs and the
School of Medicine at the University of Hawaii for the
purpose of making more efficient use of funding for bio-
medical research. Such facility would include a clinical re-
search center and facilities for educational, academic, and
laboratory research.
(b) REPORT.—Not later than March 1, 2001, the
Secretary of the Army shall submit to the Committees on
Armed Services of the House of Representatives and the
Senate a report on the study conducted under this section.
SEC. 737. CHIROPRACTIC HEALTH CARE FOR MEMBERS ON
ACTIVE DUTY.
(a) PLAN REQUIRED.—(1) Not later than March 31,
2001, the Secretary of Defense shall complete develop-
ment of a plan to provide chiropractic health care services
and benefits, as a permanent part of the Defense Health
Program (including the TRICARE program), for all mem-
bers of the uniformed services who are entitled to care
under section 1074(a) of title 10, United States Code.
(2) The plan shall provide for the following:
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(A) Direct access, at designated military med-
ical treatment facilities, to the scope of chiropractic
services as determined by the Secretary, which in-
cludes, at a minimum, care for neuro-musculo-
skeletal conditions typical among military personnel
on active duty.
(B) A detailed analysis of the projected costs of
fully integrating chiropractic health care services
into the military health care system.
(C) An examination of the proposed military
medical treatment facilities at which such services
would be provided.
(D) An examination of the military readiness
requirements for chiropractors who would provide
such services.
(E) An examination of any other relevant fac-
tors that the Secretary considers appropriate.
(F) Phased-in implementation of the plan over
a 5-year period, beginning on October 1, 2001.
(b) CONSULTATION REQUIREMENTS.—The Secretary
of Defense shall consult with the other administering Sec-
retaries described in section 1073 of title 10, United
States Code, and the oversight advisory committee estab-
lished under section 731 of the National Defense Author-
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ization Act for Fiscal Year 1995 (Public Law 103–337;
10 U.S.C. 1092 note) regarding the following:
(1) The development and implementation of the
plan required under subsection (a).
(2) Each report that the Secretary is required
to submit to Congress regarding the plan.
(3) The selection of the military medical treat-
ment facilities at which the chiropractic services de-
scribed in subsection (a)(2)(A) are to be provided.
(c) CONTINUATION OF CURRENT SERVICES.—Until
the plan required under subsection (a) is implemented, the
Secretary shall continue to furnish the same level of chiro-
practic health care services and benefits under the Defense
Health Program that is provided during fiscal year 2000
at military medical treatment facilities that provide such
services and benefits.
(d) REPORT REQUIRED.—Not later than January 31,
2001, the Secretary of Defense shall submit a report on
the plan required under subsection (a), together with ap-
propriate appendices and attachments, to the Committees
on Armed Services of the Senate and the House of Rep-
resentatives.
(e) GAO REPORTS.—The Comptroller General shall
monitor the development and implementation of the plan
required under subsection (a), including the administra-
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tion of services and benefits under the plan, and periodi-
cally submit to the committees referred to in subsection
(d) written reports on such development and implementa-
tion.
(f) FUNDING.—The Secretary of Defense shall trans-
fer $3,000,000 from the Foreign Currency Fluctuations,
Defense account to the Defense Health Program account,
which amount shall only be available for purposes of car-
rying out this section.
SEC. 738. VA-DOD SHARING AGREEMENTS FOR HEALTH
SERVICES.
(a) PRIMACY OF SHARING AGREEMENTS.—The Sec-
retary of Defense shall—
(1) give full force and effect to any agreement
into which the Secretary or the Secretary of a mili-
tary department entered under section 8111 of title
38, United States Code, or under section 1535 of
title 31, United States Code, which was in effect on
September 30, 1999; and
(2) ensure that the Secretary of the military de-
partment concerned directly reimburses the Sec-
retary of Veterans Affairs for any services or re-
sources provided under such agreement in accord-
ance with the terms of such an agreement, including
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terms providing for reimbursement from funds avail-
able for that military department.
(b) MODIFICATION OR TERMINATION.—Any agree-
ment described in subsection (a) shall remain in effect in
accordance with such subsection unless, during the 12-
month period following the date of the enactment of this
Act, such agreement is modified or terminated in accord-
ance with the terms of such agreement.
SEC. 739. IMPROVEMENT OF ACCESS TO HEALTH CARE
UNDER THE TRICARE PROGRAM.
(a) WAIVER OF NONAVAILABILITY STATEMENT OR
PREAUTHORIZATION.—In the case of a covered beneficiary
under chapter 55 of title 10, United States Code, who is
enrolled in TRICARE Standard, the Secretary of Defense
may not require with regard to authorized health care
services (other than mental health services) under any new
contract for the provision of health care services under
such chapter that the beneficiary—
(1) obtain a nonavailability statement or
preauthorization from a military medical treatment
facility in order to receive the services from a civilian
provider; or
(2) obtain a nonavailability statement for care
in specialized treatment facilities outside the 200-
mile radius of a military medical treatment facility.
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(b) NOTICE.—The Secretary may require that the
covered beneficiary inform the primary care manager of
the beneficiary of any health care received from a civilian
provider or in a specialized treatment facility.
(c) EXCEPTIONS.—Subsection (a) shall not apply if—
(1) the Secretary demonstrates significant cost
avoidance for specific procedures at the affected
military medical treatment facilities;
(2) the Secretary determines that a specific
procedure must be maintained at the affected mili-
tary medical treatment facility to ensure the pro-
ficiency levels of the practitioners at the facility; or
(3) the lack of nonavailability statement data
would significantly interfere with TRICARE con-
tract administration.
(d) EFFECTIVE DATE—This section shall take effect
on October 1, 2001.
SEC. 740. STUDY ON COMPARABILITY OF COVERAGE FOR
PHYSICAL, 
SPEECH, 
AND 
OCCUPATIONAL
THERAPIES.
(a) STUDY REQUIRED.—The Secretary of Defense
shall conduct a study comparing coverage and reimburse-
ment for covered beneficiaries under chapter 55 of title
10, United States Code, for physical, speech, and occupa-
tional therapies under the TRICARE program and the Ci-
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vilian Health and Medical Program of the Uniformed
Services to coverage and reimbursement for such therapies
by insurers under Medicare and the Federal Employees
Health Benefits Program. The study shall examine the fol-
lowing:
(1) Types of services covered.
(2) Whether prior authorization is required to
receive such services.
(3) Reimbursement limits for services covered.
(4) Whether services are covered on both an in-
patient and outpatient basis.
(b) REPORT.—Not later than March 31, 2001, the
Secretary shall submit a report on the findings of the
study conducted under this section to the Committees on
Armed Services of the Senate and the House of Represent-
atives.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
SEC. 801. EXTENSION OF AUTHORITY FOR DEPARTMENT OF
DEFENSE ACQUISITION PILOT PROGRAMS;
REPORTS REQUIRED.
(a) IN GENERAL.—Notwithstanding section 5064(d)
of the Federal Acquisition Streamlining Act of 1994 (Pub-
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lic Law 103–355; 10 U.S.C. 2430 note), the special au-
thorities provided under section 5064(c) of such Act shall
continue to apply with respect to programs designated
under section 5064(a) of such Act through September 30,
2005.
(b) JDAM PILOT PROGRAM.—The Secretary of De-
fense may award Joint Direct Attack Munition contracts
and modifications on the same terms and conditions as
contained in the Joint Direct Attack Munition contract
F08626–94–C–0003.
(c) REPORTS REQUIRED.—(1) Not later than Janu-
ary 1, 2001, the Secretary of Defense shall submit to the
Committees on Armed Services of the House of Represent-
atives and the Senate a report on the acquisition pilot pro-
grams of the Department of Defense. Such report shall
include a description of the following with respect to each
acquisition program participating in the pilot program:
(A) Each quantitative measure and goal estab-
lished for each item described in paragraph (2),
which of such goals have been achieved, and the ex-
tent to which the use of the authorities in section
809 of the National Defense Authorization Act for
Fiscal Year 1991 (Public Law 101–510; 10 U.S.C.
2430 note) and section 5064 of the Federal Acquisi-
tion Streamlining Act of 1994 (Public Law 103–
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355; 10 U.S.C. 2430 note) were a factor in achiev-
ing each of such goals.
(B) Each of the regulations and statutes
waived, as authorized under such sections, in order
to achieve such goals.
(C) Recommended revisions to statutes or the
Federal Acquisition Regulation as a result of partici-
pation in the pilot program.
(D) Any other acquisition programs which could
benefit from participation in the pilot program, and
the reasons why such programs could benefit from
such participation.
(E) Any innovative business practices developed
as a result of participation in the pilot program,
whether such business practices could be applied to
other acquisition programs, and any impediments to
application of such practices to other programs.
(F) Technological changes to the program, and
to what extent those changes affected the items in
paragraph (2).
(G) Any other information determined appro-
priate by the Secretary.
(2) The items under this paragraph are, with respect
to defense acquisition programs, the following:
(A) The acquisition management costs.
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(B) The unit cost of the items procured.
(C) The acquisition cycle.
(D) The total cost of carrying out the contract.
(E) Staffing necessary to carry out the pro-
gram.
SEC. 802. TECHNICAL DATA RIGHTS FOR ITEMS DEVEL-
OPED EXCLUSIVELY AT PRIVATE EXPENSE.
(a) AMENDMENTS TO TITLE 10.—Section 2320(a)(2)
of title 10, United States Code, is amended—
(1) in subparagraph (C)—
(A) by amending clause (iii) to read as fol-
lows:
‘‘(iii) is necessary for normal operation
(other than detailed manufacturing or proc-
essing data), maintenance, installation, or train-
ing when such services are to be provided by an
entity other than the contractor or its subcon-
tractor;’’;
(B) by redesignating clause (iv) as (v); and
(C) by inserting after clause (iii) the fol-
lowing new clause (iv):
‘‘(iv) is necessary for critical operation,
maintenance, installation of deployed equip-
ment, or training, when such services are to be
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provided by an entity other than the contractor
or its subcontractor; or’’;
(2) in subparagraph (F)(i)—
(A) in subclause (I)—
(i) by inserting ‘‘clause (i), (ii), (iv),
or (v) of’’ before ‘‘subparagraph (C)’’; and
(ii) by striking ‘‘or’’ at the end; and
(B) by adding at the end the following new
subclause:
‘‘(III) under the conditions described
in subsection (a)(2)(C)(iii), reaching agree-
ment in negotiations concerning provision
of the rights involved may not be required
as a condition of being responsive to a so-
licitation, but may be a condition for the
award of a contract; or’’; and
(3) by adding at the end the following new sub-
paragraphs:
‘‘(H) In a case described in subparagraph
(C)(iii), the provision of the rights involved shall be
subject to negotiations between the Government and
the contractor or contractors involved.
‘‘(I) A description of the difference between
‘normal operation’ and ‘critical operation’, as such
terms are used in subparagraph (C).’’.
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(b) DEADLINE FOR PROPOSAL OF CERTAIN REGULA-
TIONS.—The Secretary of Defense shall propose, before
initiating notice and opportunity for public comment, ini-
tial regulations regarding section 2320(a)(2)(I) of title 10,
United States Code (as added by subsection (a)(3)), not
later than 60 days after the date of the enactment of this
Act.
SEC. 803. MANAGEMENT OF ACQUISITION OF MISSION-ES-
SENTIAL SOFTWARE FOR MAJOR DEFENSE
ACQUISITION PROGRAMS.
(a) DESIGNATION OF DIRECTOR OF MISSION-ESSEN-
TIAL SOFTWARE MANAGEMENT.—Chapter 4 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 144. Director of Mission-Essential Software Man-
agement
‘‘(a) The Under Secretary of Defense for Acquisition,
Technology, and Logistics shall designate within the Of-
fice of the Under Secretary of Defense for Acquisition,
Technology, and Logistics a Director of Mission-Essential
Software Management.
‘‘(b) The Director of Mission-Essential Software
Management shall provide effective oversight of, and shall
seek to improve mechanisms for, the management, devel-
opment, and maintenance of mission-essential software for
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major defense acquisition programs described in sub-
section (c).
‘‘(c) For purposes of this section, mission-essential
software for major defense acquisition programs is
software—
‘‘(1) that is an integral part of software-inten-
sive major defense acquisition programs; and
‘‘(2) that is physically part of, dedicated to, or
essential to the mission performance of a weapons
system.
‘‘(d) The Director of Mission-Essential Software
Management shall be responsible for—
‘‘(1) reviewing the policies and practices of the
military departments and Defense Agencies for de-
veloping software described in subsection (c);
‘‘(2) reviewing planning and progress in the
management of such software; and
‘‘(3) recommending goals and plans to improve
management with respect to such software.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘144. Director of Mission-Essential Software Management.’’.
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SEC. 804. EXTENSION OF WAIVER PERIOD FOR LIVE-FIRE
SURVIVABILITY TESTING FOR MH–47E AND
MH–60K HELICOPTER MODIFICATION PRO-
GRAMS.
(a) EXISTING WAIVER PERIOD NOT APPLICABLE.—
Section 2366(c)(1) of title 10, United States Code, shall
not apply with respect to survivability and lethality tests
for the MH–47E and MH–60K helicopter modification
programs. Except as provided in the previous sentence, the
provisions and requirements in section 2366(c) of such
title shall apply with respect to such programs, and the
certification required by subsection (b) shall comply with
the requirements in paragraph (3) of such section.
(b) EXTENDED PERIOD FOR WAIVER.—With respect
to the MH–47E and MH–60K helicopter modification pro-
grams, the Secretary of Defense may waive the application
of the survivability and lethality tests described in section
2366(a) of title 10, United States Code, if the Secretary,
before full materiel release of the MH–47E and MH–60K
helicopters for operational use, certifies to Congress that
live-fire testing of the programs would be unreasonably ex-
pensive and impracticable.
(c) CONFORMING AMENDMENT.—Section 142(a) of
the National Defense Authorization Act for Fiscal Year
1993 (Public Law 102–484; 106 Stat. 2338) is amended
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by striking ‘‘and survivability testing’’ in paragraphs (1)
and (2).
SEC. 805. THREE-YEAR EXTENSION OF AUTHORITY OF DE-
FENSE 
ADVANCED 
RESEARCH 
PROJECTS
AGENCY TO CARRY OUT CERTAIN PROTO-
TYPE PROJECTS.
Section 845(c) of the National Defense Authorization
Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amend-
ed by striking ‘‘September 30, 2001’’ and inserting ‘‘Sep-
tember 30, 2004’’.
SEC. 806. CERTIFICATION OF MAJOR AUTOMATED INFOR-
MATION SYSTEMS AS TO COMPLIANCE WITH
CLINGER-COHEN ACT.
(a) MILESTONE APPROVAL.—(1) During fiscal years
2001, 2002, and 2003, a major automated information
system may not receive Milestone I approval, Milestone
II approval, or Milestone III approval within the Depart-
ment of Defense until the Chief Information Officer cer-
tifies, with respect to that milestone, that the system is
being developed in accordance with the Clinger-Cohen Act
of 1996 (40 U.S.C. 1401 et seq.). The Chief Information
Officer may require additional certifications, as appro-
priate, with respect to any such system.
(2) The Chief Information Officer shall provide the
congressional defense committees notification of each cer-
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tification under paragraph (1). Each such notification
shall be submitted not later than 10 days after the date
of the Milestone approval to which the certification relates
and shall include, at a minimum, the funding baseline and
milestone schedule for the system covered by the certifi-
cation and confirmation that the following steps have been
taken with respect to the system:
(A) Business process reengineering.
(B) An analysis of alternatives.
(C) An economic analysis that includes a cal-
culation of the return on investment.
(D) Performance measures.
(E) An information assurance strategy con-
sistent with the Department’s Command, Control,
Communications, Computers, Intelligence, Surveil-
lance, and Reconnaissance (C4ISR) Architecture
Framework.
(b) NOTICE OF DESIGNATION OF SYSTEMS AS SPE-
CIAL INTEREST MAJOR TECHNOLOGY INITIATIVES.—(1)
Whenever during fiscal year 2001, 2002, or 2003 the
Chief Information Officer designates a major automated
information system of the Department of Defense as a
‘‘special interest major technology initiative’’, the Chief
Information Officer shall notify the congressional defense
committees of such designation. Such notice shall be pro-
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vided not later than 30 days after the date of the designa-
tion. Any such notice shall include the rationale for the
decision to make the designation and a description of the
program management oversight that will be implemented
for the system so designated.
(2) Not later than 60 days after the date of the enact-
ment of this Act, the Chief Information Officer shall sub-
mit to the congressional defense committees a report
specifying each information system of the Department of
Defense currently designated as a ‘‘special interest major
technology initiative’’. The report shall include for each
such system the information specified in the third sentence
of paragraph (1).
(c) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘Chief Information Officer’’
means the senior official of the Department of De-
fense designated by the Secretary of Defense pursu-
ant to section 3506 of title 44, United States Code.
(2) The term ‘‘major automated information
system’’ has the meaning given that term in Depart-
ment of Defense Directive 5000.1.
SEC. 807. LIMITATIONS ON PROCUREMENT OF CERTAIN
ITEMS.
Section 2534 of title 10, United States Code, is
amended—
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(1) in subsection (a), by adding at the end the
following new paragraph:
‘‘(6) POLYACRYLONITRILE
CARBON
FIBER.—
Polyacrylonitrile carbon fiber in accordance with
subpart 225.71 of part 225 of the Defense Federal
Acquisition Regulation Supplement, as in effect on
April 1, 2000.’’; and
(2) in subsection (c)—
(A) by striking paragraph (2)(C) and in-
serting the following:
‘‘(C)(i) Subsection (a)(4)(B), subparagraph
(B), and this clause shall cease to be effective on Oc-
tober 1, 1996.
‘‘(ii) Subsection (a)(4)(A), subparagraph (A),
and this clause shall cease to be effective on October
1, 2003.’’;
(B) by striking paragraph (3);
(C) by redesignating paragraph (4) as
paragraph (3); and
(D) by adding at the end the following new
paragraph (4):
‘‘(4) POLYACRYLONITRILE
CARBON
FIBER.—
Subsection (a)(6) and this paragraph shall cease to
be effective on October 1, 2003.’’.
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SEC. 808. MULTIYEAR SERVICES CONTRACTS.
(a) IN GENERAL.—Chapter 137 of title 10, United
States Code, is amended—
(1) in section 2306(g), by striking paragraph
(3) and inserting the following:
‘‘(3) Additional provisions regarding mulityear con-
tracts for the purchase of services are provided in section
2306b of this title.’’;
(2) in section 2306b—
(A) in the heading, by inserting ‘‘or serv-
ices’’ after ‘‘property’’;
(B) in subsection (a)—
(i) in the matter following the sub-
section heading, by striking ‘‘for the pur-
chase of property’’;
(ii) in paragraph (2), by inserting ‘‘or
services’’ after ‘‘property’’; and
(iii) in paragraph (4)—
(I) by striking ‘‘That’’ and in-
serting ‘‘In the case of a contract for
the purchase of property, that’’; and
(II) by inserting ‘‘or services’’
after ‘‘property’’ the last place such
term appears; and
(C) in subsection (f)(2), by inserting ‘‘or
services’’ after ‘‘property’’; and
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(3) by amending the item relating to section
2306b in the table of sections at the beginning of
such chapter to read as follows:
‘‘2306b. Multiyear contracts: acquisition of property or services.’’.
(b) APPLICABILITY.—The amendments made by this
section shall apply with respect to a contract entered into
after the date the enactment of this Act.
SEC. 809. STUDY ON IMPACT OF FOREIGN SOURCING OF
SYSTEMS ON LONG-TERM MILITARY READI-
NESS AND RELATED INDUSTRIAL INFRA-
STRUCTURE.
(a) STUDY REQUIRED.—The Secretary of Defense
shall conduct a study analyzing in detail—
(1) the amount and source of parts, compo-
nents, and materials of the systems described in sub-
section (b) that are obtained—
(A) from domestic sources; and
(B) from foreign sources;
(2) the impact of obtaining such parts, compo-
nents, and materials from foreign sources on the
long-term readiness of the Armed Forces and on the
economic viability of the industrial infrastructure of
the United States that supports defense needs;
(3) the impact on military readiness that would
result from the loss of the ability to obtain parts,
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components, and materials identified pursuant to
paragraph (1) from foreign sources; and
(4) the availability of domestic sources for
parts, components, and materials identified as being
obtained from foreign sources pursuant to paragraph
(1).
(b) SYSTEMS.—The systems referred to in subsection
(a) are the following:
(1) AH–64D Apache helicopter.
(2) F/A–18 E/F aircraft.
(3) M1A2 Abrams tank.
(4) AIM–120 AMRAAM missile.
(5) Patriot missile ground station.
(6) Hellfire missile.
(7) M–16 A3 rifle.
(8) AN/VPS–2 radar.
(c) SOURCE OF INFORMATION.—The Secretary shall
collect information to be analyzed under the study from
prime contractors and first and second tier subcontrac-
tors.
(d) REQUIREMENT TO CREATE DATABASE.—The
Secretary shall create an interactive database for the pur-
pose of compiling, analyzing, and updating data gathered
for the study required by this section.
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(e) REPORT REQUIRED.—Not later than 9 months
after the date of the enactment of this Act, the Secretary
shall submit to Congress a report describing the results
of the study required by this section.
(f) FOREIGN SOURCE DEFINED.—In this section, the
term ‘‘foreign source’’ means a country other than the
United States.
SEC. 810. PROHIBITION AGAINST USE OF DEPARTMENT OF
DEFENSE FUNDS TO GIVE OR WITHHOLD A
PREFERENCE TO A MARKETER OR VENDOR
OF FIREARMS OR AMMUNITION.
(a) IN GENERAL.—No funds authorized to be appro-
priated for the Department of Defense may be used to
give or withhold a preference to a marketer or vendor of
firearms or ammunition based on whether the manufac-
turer or vendor is a party to a covered agreement.
(b) COVERED AGREEMENT DEFINED.—For purposes
of this section, the term ‘‘covered agreement’’ means any
agreement requiring a person engaged in a business li-
censed under chapter 44 of title 18, United States Code,
to abide by a designated code of conduct, operating prac-
tice, or product design respecting importing, manufac-
turing, or dealing in firearms or ammunition.
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SEC. 811. STUDY AND REPORT ON PRACTICE OF CONTRACT
BUNDLING 
IN 
MILITARY 
CONSTRUCTION
CONTRACTS.
(a) STUDY REQUIRED.—The Comptroller General of
the United States shall conduct a study regarding the use
of the practice known as ‘‘contract bundling’’ with respect
to military construction contracts.
(b) REPORT.—Not later than February 1, 2001, the
Comptroller General shall submit to the congressional de-
fense committees a report on the results of the study con-
ducted under subsection (a).
SEC. 812. REQUIREMENT TO CONDUCT STUDY ON CON-
TRACT BUNDLING.
(a) IN GENERAL.—The Secretary of Defense shall
conduct a comprehensive study on the practice known as
‘‘contract bundling’’ by the Department of Defense, and
the effects of such practice on small business concerns,
economically and socially disadvantaged small business
concerns, and small business concerns owned and con-
trolled by women (as such terms are used in the Small
Business Act (15 U.S.C. 632 et seq.)).
(b) DEADLINE.—The Secretary shall submit the re-
sults of the study to the Committees on Armed Services
and Small Business of the Senate and the House of Rep-
resentatives before submission of the budget request of the
Department of Defense for fiscal year 2002.
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(c) DATABASE.—For purposes of conducting the
study required by this section, the Secretary shall develop,
in consultation with the General Accounting Office, and
maintain a database on all contracts of the Department
of Defense (excluding contracts for the procurement of
weapons systems) for which requirements have been bun-
dled.
SEC. 813. COMPLIANCE WITH BUY AMERICAN ACT.
(a) COMPLIANCE WITH BUY AMERICAN ACT.—No
funds authorized by this Act may be expended by an entity
of the Department of Defense unless the entity agrees that
in expending the funds the entity will comply with the Buy
American Act (41 U.S.C. 10a et seq.).
(b) SENSE
OF
THE CONGRESS REGARDING PUR-
CHASE
OF AMERICAN–MADE EQUIPMENT
AND PROD-
UCTS.—It is the sense of the Congress that any entity of
the Department of Defense, in expending funds authorized
by this Act for the purchase of equipment or products,
should purchase only American-made equipment and prod-
ucts.
(c) DEBARMENT
OF
PERSONS
CONVICTED
OF
FRAUDULENT USE OF ‘‘MADE IN AMERICA’’ LABELS.—
If the Secretary of Defense determines that a person has
been convicted of intentionally affixing a label bearing a
‘‘Made in America’’ inscription, or another inscription
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with the same meaning, to any product sold in or shipped
to the United States that is not made in the United
States, the Secretary shall determine, in accordance with
section 2410f of title 10, United States Code, whether the
person should be debarred from contracting with the De-
partment of Defense.
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND
MANAGEMENT
SEC. 901. CHANGE OF TITLE OF CERTAIN POSITIONS IN
THE HEADQUARTERS, MARINE CORPS.
(a) INSTITUTION OF POSITIONS AS DEPUTY COM-
MANDANTS.—Section 5041(b) of title 10, United States
Code, is amended—
(1) by striking paragraphs (3) through (5) and
inserting the following:
‘‘(3) The Deputy Commandants.’’; and
(2) by redesignating paragraphs (6) and (7) as
paragraphs (4) and (5), respectively.
(b) DESIGNATION OF DEPUTY COMMANDANTS.—(1)
Section 5045 of such title is amended to read as follows:
‘‘§ 5045. Deputy Commandants
‘‘There are in the Headquarters Marine Corps, not
more than five Deputy Commandants, detailed by the Sec-
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retary of the Navy from officers on the active-duty list
of the Marine Corps.’’.
(2) The item relating to section 5045 in the table of
sections at the beginning of chapter 506 of such title is
amended to read as follows:
‘‘5045. Deputy Commandants.’’.
(c) CONFORMING AMENDMENT.—Section 1502(7)(D)
of the Armed Forces Retirement Home Act of 1991 (24
U.S.C. 401) is amended to read as follows:
‘‘(D) the Deputy Commandant of the Ma-
rine Corps with responsibility for personnel
matters.’’.
SEC. 902. FURTHER REDUCTIONS IN DEFENSE ACQUISI-
TION AND SUPPORT WORKFORCE.
(a) REDUCTION
OF DEFENSE ACQUISITION
AND
SUPPORT WORKFORCE.—The Secretary of Defense shall
accomplish reductions in defense acquisition and support
personnel positions during fiscal year 2001 so that the
total number of such personnel as of October 1, 2001, is
less than the total number of such personnel as of October
1, 2000, by at least 13,000.
(b) IMPLEMENTATION PLAN.—(1) The Secretary of
Defense shall develop an implementation plan for reshap-
ing, recruiting, and sustaining the defense acquisition and
support workforce in the future.
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(2) Not later than May 1, 2001, the Secretary shall
submit to the Committee on Armed Services of the Senate
and the Committee on Armed Services of the House of
Representatives a report setting forth the plan developed
under paragraph (1). The Secretary shall include in the
report a proposal for any recommended changes in law
that are necessary to implement the plan.
(c) 
DEFENSE
ACQUISITION
WORKFORCE
DE-
FINED.—For purposes of this section, the term ‘‘defense
acquisition and support workforce’’ has the meaning given
that term in section 931(d) of the Strom Thurmond Na-
tional Defense Authorization Act for Fiscal Year 1999
(Public Law 105–261; 112 Stat. 2106).
SEC. 903. CLARIFICATION OF SCOPE OF INSPECTOR GEN-
ERAL AUTHORITIES UNDER MILITARY WHIS-
TLEBLOWER LAW.
(a) CLARIFICATION
OF RESPONSIBILITIES.—Sub-
section (c)(3)(A) of section 1034 of title 10, United States
Code, is amended by inserting ‘‘, in accordance with regu-
lations prescribed under subsection (h),’’ after ‘‘shall expe-
ditiously determine’’.
(b) REDEFINITION OF INSPECTOR GENERAL.—Sub-
section (i)(2) of such section is amended—
(1) by inserting ‘‘any of’’ in the matter pre-
ceding subparagraph (A) after ‘‘means’’;
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(2) by striking subparagraphs (C), (D), (E),
(F) and (G); and
(3) by inserting after subparagraph (B) the fol-
lowing new subparagraph (C):
‘‘(C) Any officer of the armed forces or em-
ployee of the Department of Defense who is assigned
or detailed to serve as an Inspector General at any
level in the Department of Defense.’’.
SEC. 904. REPORT ON NUMBER OF PERSONNEL ASSIGNED
TO LEGISLATIVE LIAISON FUNCTIONS.
(a) REPORT.—Not later than December 1, 2000, the
Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives a report
setting forth the number of personnel of the Department
of Defense performing legislative liaison functions as of
April 1, 2000.
(b) MATTERS TO BE INCLUDED.—The report shall
include the following:
(1) The number of military and civilian per-
sonnel of the Department of Defense assigned to
full-time legislative liaison functions, shown by orga-
nizational entity and by pay grade.
(2) The number of military and civilian per-
sonnel of the Department not covered by paragraph
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(1) (other than personnel described in subsection
(d)) who perform legislative liaison functions as part
of their assigned duties, shown by organizational en-
tity and by pay grade.
(c) LEGISLATIVE LIAISON FUNCTIONS.—For pur-
poses of this section, a legislative liaison function is a
function (regardless of how characterized within the De-
partment of Defense) that has been established or des-
ignated to principally provide advice, information, and as-
sistance to the legislative branch on Department of De-
fense policies, plans, and programs.
(d) ORGANIZATIONAL ENTITIES.—The display of in-
formation under subsection (b) by organizational entity
shall be for the Department of Defense and for each mili-
tary department as a whole and separately for each orga-
nization at the level of major command or Defense Agency
or higher.
(e) PERSONNEL NOT COVERED.—Subsection (b)(2)
does not apply to civilian officers appointed by the Presi-
dent, by and with the advice and consent of the Senate,
or to general or flag officers.
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SEC. 905. JOINT REPORT ON ESTABLISHMENT OF NA-
TIONAL 
COLLABORATIVE 
INFORMATION
ANALYSIS CAPABILITY.
(a) REPORT.—The Secretary of Defense and the Di-
rector of Central Intelligence shall submit to the congres-
sional defense committees and the congressional intel-
ligence committees a joint report assessing alternatives for
the establishment of a national collaborative information
analysis capability. The report shall include the following:
(1) An assessment of alternative architectures
to establish a national collaborative information
analysis capability to conduct data mining and
profiling of information from a wide array of elec-
tronic data sources.
(2) Identification, from among the various ar-
chitectures assessed under paragraph (1), of the pre-
ferred architecture and a detailed description of that
architecture and of a program to acquire and imple-
ment the capability that would be provided through
that architecture.
(b) COMPLETION AND USE OF ARMY LAND INFOR-
MATION
WARFARE
ACTIVITY.—The 
Secretary 
of
Defense—
(1) shall ensure that the data mining, profiling,
and analysis capability of the Army’s Land Informa-
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tion Warfare Activity is completed and is fully oper-
ational as soon as possible; and
(2) shall make maximum use of that capability
to provide intelligence support to the Department of
Defense, the military services, the Intelligence Com-
munity, and other agencies of the Government until
a national collaborative information analysis capa-
bility is operational.
(c) FUNDING RESTRICTION FOR A NATIONAL COL-
LABORATIVE INFORMATION ANALYSIS CAPABILITY.—No
funds available to the Department of Defense may be ex-
pended to establish, support, or implement a program to
establish a national, multi-agency data mining and anal-
ysis capability until such a program is specifically author-
ized by law.
SEC. 906. ORGANIZATION AND MANAGEMENT OF CIVIL AIR
PATROL.
(a) IN GENERAL.—Chapter 909 of title 10, United
States Code, is amended to read as follows:
‘‘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.
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‘‘§ 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 Pa-
trol are set forth in section 40302 of title 36.
‘‘§ 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 Gov-
ernment.
‘‘(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 De-
partment 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 mem-
ber of the Civil Air Patrol, in carrying out a mission as-
signed by the Secretary of the Air Force.
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‘‘§ 9443. Activities not performed as auxiliary of the
Air Force
‘‘(a) SUPPORT FOR STATE AND LOCAL AUTHORI-
TIES.—The Civil Air Patrol may, in its status as a feder-
ally chartered nonprofit corporation and not as an auxil-
iary 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 equip-
ment, 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 Govern-
ment source for the equipment, supplies, other resources,
or funds, as the case may be.
‘‘(2) The use of equipment, supplies, or other re-
sources under paragraph (1) is subject to—
‘‘(A) the terms and conditions of the applicable
agreement entered into under chapter 63 of title 31;
and
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‘‘(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 REIMBURSE-
MENT.—The authority for the Civil Air Patrol to provide
assistance under subsections (a) and (b) 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 assistance under such
subsections, the Civil Air Patrol may establish the reim-
bursement rate at a rate less than the rates 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 ac-
tivities carried out under this section.
‘‘§ 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, sup-
plies, and other resources that the Secretary determines
necessary to enable the Civil Air Patrol to fulfill the mis-
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sions assigned by the Secretary to the Civil Air Patrol as
an auxiliary of the Air Force.
‘‘(b) FORMS OF AIR FORCE SUPPORT.—The Sec-
retary 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 Admin-
istrative Services Act of 1949 (40 U.S.C. 471 et
seq.)—
‘‘(A) major items of equipment (including
aircraft, motor vehicles, computers, and com-
munications equipment) that are excess to the
military departments; and
‘‘(B) necessary related supplies and train-
ing aids that are excess to the military depart-
ments;
‘‘(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 op-
erations) or provide funds for the acquisition of sup-
plies;
‘‘(4) establish, maintain, and supply liaison offi-
cers of the Air Force at the national, regional, State,
and territorial headquarters of the Civil Air Patrol;
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‘‘(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 head-
quarters 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 United States 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 head-
quarters of the Civil Air Patrol, including—
‘‘(A) funds for the payment of staff com-
pensation and benefits, administrative expenses,
travel, per diem and allowances, rent, utilities,
other operational expenses of the national head-
quarters; and
‘‘(B) to the extent considered necessary by
the Secretary of the Air Force to fulfill Air
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Force requirements, funds for the payment of
compensation and benefits for key staff at re-
gional, State, or territorial headquarters;
‘‘(9) authorize the payment of expenses of plac-
ing into serviceable condition, improving, and main-
taining equipment (including aircraft, motor vehi-
cles, 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 pro-
gram 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 ful-
fillment of Air Force missions and objectives.
‘‘(c) ASSISTANCE BY OTHER AGENCIES.—(1) The
Secretary of the Air Force may arrange for the use by
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the Civil Air Patrol of such facilities and services under
the jurisdiction of the Secretary of the Army, the Sec-
retary 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 sec-
tion 9448 of this title.
‘‘§ 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.
‘‘§ 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 pro-
viding for the person to serve as an administrator or liai-
son officer for the Civil Air Patrol. The qualifications of
a person to provide the services shall be determined and
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approved in accordance with regulations prescribed under
section 9448 of this title.
‘‘(2) To the extent provided in a contract under para-
graph (1), a person providing services under the contract
may accept services on behalf of the Air Force and commit
and obligate appropriated funds as necessary to perform
the services.
‘‘(3) A person, while providing services under a con-
tract authorized under paragraph (1), may receive the per-
son’s retired pay and an additional amount for such serv-
ices that is not less than the amount equal to the excess
of—
‘‘(A) the pay and allowances that the person
would be entitled to receive if ordered to active duty
in the grade in which the person retired from service
in the Air Force, over
‘‘(B) the amount of the person’s retired pay.
‘‘(4) A person, while providing services under a con-
tract authorized under paragraph (1), may not be consid-
ered 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
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duty and reserve component forces to the extent and under
conditions that the Secretary determines appropriate.
‘‘§ 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 11 members as follows:
‘‘(1) Four members appointed by the Secretary
of the Air Force, who may be active or retired offi-
cers of the Air Force (including reserve components
of the Air Force), employees of the United States,
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 pre-
scribed 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 corpora-
tions, nonprofit associations, and other organizations
that have an interest and expertise in civil aviation
and the Civil Air Patrol mission.
‘‘(c) APPOINTMENTS FROM INTERESTED ORGANIZA-
TIONS.—(1) Subject to paragraph (2), the members of the
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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 re-
ferred 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 2 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 Chair-
person 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.
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‘‘(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 approval by a majority of the members of the Board.
‘‘(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 FIDU-
CIARY DUTY.—(1) The Board of Governors shall, subject
to paragraph (2), take such action as is necessary to elimi-
nate or 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 fidu-
ciary duty while serving as a member of the Board.
‘‘(2) The Board may not eliminate or limit the liabil-
ity 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.
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‘‘(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
United States.
‘‘(g) PERSONAL LIABILITY FOR BREACH OF A FIDU-
CIARY 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 offi-
cer, as the case may be, was personally involved, whether
in breach of a civil duty or in commission of a criminal
offense.
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‘‘(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 sub-
section (f).
‘‘§ 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 per-
forming 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 adminis-
trator or liaison officer for the Civil Air Patrol under
a personal services contract entered into under sec-
tion 9446(a) of this title.
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‘‘(4) Procedures and requirements for the elec-
tion 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 des-
ignation 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
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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:
‘‘§ 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 amend-
ments made by this section shall take effect on the date
of the enactment of this Act.
SEC. 907. REPORT ON NETWORK CENTRIC WARFARE.
(a) REPORT REQUIRED.—Not later than October 1,
2001, the Secretary of Defense shall submit to the con-
gressional defense committees a report describing the De-
partment’s views on Network Centric Warfare (NCW) and
the role of Network Centric Warfare in the strategy of
the Department of Defense for military transformation.
The Secretary of Defense shall prepare the report in con-
sultation with the Chairman of the Joint Chiefs of Staff.
(b) CONTENT OF REPORT.—The report shall include
the following:
(1) A definition of Network Centric Warfare.
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(2) A discussion of the theory, nature, and
principles of Network Centric Warfare and how they
relate to the revolution in military affairs.
(3) A discussion of the conceptual, doctrinal,
and operational concepts related to Network Centric
Warfare.
(4) A discussion of how the concept of Network
Centric Warfare is related to the strategy of the De-
partment of Defense for military transformation as
outlined in the document entitled ‘‘Joint Vision
2010’’ and other key strategy documents.
(5) The current and planned acquisition pro-
grams of the Department of Defense that relate to
Network Centric Warfare and the extent to which
those programs are interoperable with each other.
(6) The experimentation activities inside the
joint experimentation program and the service ex-
perimentation programs, if any, which are designed
to explore and evaluate the emerging concepts of
Network Centric Warfare.
SEC. 908. DEFENSE INSTITUTE FOR HEMISPHERIC SECU-
RITY COOPERATION.
(a) AUTHORITY FOR INSTITUTE.—(1) Chapter 108
of title 10, United States Code, is amended by adding at
the end the following new section:
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‘‘§ 2166. Defense Institute for Hemispheric Security
Cooperation
‘‘(a) AUTHORITY.—The Secretary of Defense may
operate an education and training facility known as the
‘Defense Institute for Hemispheric Security Cooperation’.
The Secretary of Defense may designate the Secretary of
the Army as the Department of Defense executive agent
for carrying out the responsibilities of the Secretary of De-
fense under this section.
‘‘(b) PURPOSE.—(1) The Institute shall be operated
for the purpose of providing education and training to
military, law enforcement, and civilian personnel of na-
tions of the Western Hemisphere in defense and security
matters.
‘‘(2) For purposes of paragraph (1), defense and se-
curity matters include—
‘‘(A) professional military education;
‘‘(B) leadership development;
‘‘(C) counter-drug operations;
‘‘(D) peace support operations; and
‘‘(E) disaster relief.
‘‘(c) CURRICULUM.—The education and training pro-
grams provided by the Institute shall include (for each
person attending the Institute under subsection (b)) in-
struction totaling not less than 8 hours relating to each
of the following subjects:
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‘‘(1) Human rights.
‘‘(2) The rule of law.
‘‘(3) Due process.
‘‘(4) Civilian control of the military.
‘‘(5) The role of the military in a democratic
society.
‘‘(d) BOARD OF VISITORS.—(1) There is a Board of
Visitors for the Institute. The Board shall be composed
of members appointed by the Secretary of Defense (or the
Secretary of the Army as the Secretary’s designee). In se-
lecting members of the Board, the Secretary shall consider
recommendations by—
‘‘(A) the Speaker and the minority leader of the
House of Representatives;
‘‘(B) the majority leader and the minority lead-
er of the Senate;
‘‘(C) the Secretary of State;
‘‘(D) the commander of the unified command
with geographic responsibility for Latin America;
and
‘‘(E) representatives from academic institutions,
religious institutions, and human rights organiza-
tions.
‘‘(2) Members shall serve for 2 years and shall meet
at least annually.
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‘‘(3)(A) The Board shall inquire into—
‘‘(i) the curriculum, instruction, physical equip-
ment, fiscal affairs, academic methods, and other
matters relating to the Institute that the Board de-
cides to consider; and
‘‘(ii) any other matters relating to the Institute
that the Secretary considers appropriate.
‘‘(B) The Board shall review the curriculum of the
Institute to ensure that the curriculum—
‘‘(i) complies with applicable United States law
and regulations;
‘‘(ii) is consistent with United States policy
goals toward Latin America and the Caribbean; and
‘‘(iii) adheres to current United States doctrine.
‘‘(4)(A) Not later than 60 days after its annual meet-
ing, the Board shall submit to the Secretary a written re-
port of its action and of its views and recommendations
pertaining to the Institute.
‘‘(B) Within 30 days of receipt of the Board’s report
for any year, the Secretary shall transmit the report, with
the Secretary’s comments, to Congress.
‘‘(5) While performing duties as a member of or ad-
viser to the Board, each member of the Board and each
adviser shall be reimbursed for travel expenses under Gov-
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ernment travel regulations. Board members shall not be
compensated by reason of service on the Board.
‘‘(e) SOURCE OF FUNDS.—The fixed costs of oper-
ating and maintaining the Institute may be paid from
funds available for operation and maintenance.
‘‘(f) TUITION.—Tuition fees charged for persons who
attend the Institute may not include the fixed costs of op-
erating and maintaining the Institute.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2166. Defense Institute for Hemispheric Security Cooperation.’’.
(b) TRANSITION
FROM
UNITED
STATES
ARMY
SCHOOL OF THE AMERICAS.—(1) The Secretary of De-
fense shall take such steps as necessary to ensure that
the Secretary of the Army provides for the transition of
the United States Army School of the Americas located
at Fort Benning, Georgia, into the Defense Institute for
Hemispheric Security Cooperation established pursuant to
section 2166 of title 10, United States Code, as added by
subsection (a).
(2)(A) Section 4415 of title 10, United States Code,
is repealed.
(B) The table of sections at the beginning of chapter
407 of such title is amended by striking the item relating
to section 4415.
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SEC. 909. DEPARTMENT OF DEFENSE REGIONAL CENTERS
FOR SECURITY STUDIES.
(a) IN GENERAL.—Chapter 7 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 184. Regional Centers for Security Studies
‘‘(a) IN GENERAL.—(1) Subject to paragraph (2), the
Secretary of Defense may operate in the Department of
Defense regional centers for security studies, each of
which is established for a specified geographic region of
the world. Any such regional center shall serve as a forum
for bilateral and multilateral communication and military
and civilian exchanges with nations in the region for which
the center is established. A regional center may, as the
Secretary considers appropriate, use professional military
education, civilian defense education, and related academic
and other activities to pursue such communication and ex-
changes.
‘‘(2) After the date of the enactment of this section,
a regional center for security studies as described in para-
graph (1) may not be established in the Department of
Defense until at least 90 days after the date on which
the Secretary of Defense submits to Congress a notifica-
tion of the intent of the Secretary to establish the center.
The notification shall contain a description of the mission
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and functions of the proposed center and a justification
for the proposed center.
‘‘(b) EMPLOYMENT AND COMPENSATION OF FAC-
ULTY.—Section 1595 of this title provides authority for
the Secretary of Defense to employ certain civilian per-
sonnel at certain Department of Defense regional center
for security studies without regard to certain provisions
of title 5.
‘‘(c) ACCEPTANCE OF FOREIGN GIFTS AND DONA-
TIONS.—Section 2611 of this title provides authority for
the Secretary of Defense to accept foreign gifts and dona-
tions in order to defray the costs of, or enhance the oper-
ations of, certain Department of Defense regional centers
for security studies.
‘‘(d) ANNUAL REPORT TO CONGRESSIONAL COMMIT-
TEES.—The Secretary shall submit to the Committee on
Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives an annual
report on the status, objectives, and operations of the De-
partment of Defense regional centers for security studies.
Each such report shall include information on inter-
national participation in the programs of the centers and
on foreign gifts and donations accepted under section
2611 of this title.
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‘‘(e) PROVISIONS RELATING SPECIFICALLY TO MAR-
SHALL CENTER.—(1) The Secretary of Defense may
waive reimbursement of the costs of conferences, seminars,
courses of instruction, or similar educational activities of
the George C. Marshall European Center for Security
Studies for military officers and civilian officials of co-
operation partner states of the North Atlantic Cooperation
Council or the Partnership for Peace if the Secretary de-
termines that attendance by such personnel without reim-
bursement is in the national security interest of the United
States. Costs for which reimbursement is waived pursuant
to this paragraph shall be paid from appropriations avail-
able for the Center.
‘‘(2)(A) Notwithstanding any other provision of law,
the Secretary of Defense may authorize participation by
a European or Eurasian nation in Marshall Center pro-
grams if the Secretary determines, after consultation with
the Secretary of State, that such participation is in the
national interest of the United States.
‘‘(B) Not later than January 31 of each year, the
Secretary shall submit to Congress a report setting forth
the names of the foreign nations permitted to participate
in programs of the Marshall Center during the preceding
year under paragraph (1). Each such report shall be pre-
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pared by the Secretary with the assistance of the Director
of the Marshall Center.
‘‘(f) PROVISIONS RELATING SPECIFICALLY TO ASIA-
PACIFIC CENTER.—The Secretary of Defense may waive
reimbursement of the cost of conferences, seminars,
courses of instruction, or similar educational activities of
the Asia-Pacific Center for Security Studies for military
officers and civilian officials of foreign nations if the Sec-
retary determines that attendance by such personnel with-
out reimbursement is in the national security interest of
the United States. Costs for which reimbursement is
waived pursuant to this subsection shall be paid from ap-
propriations available for the Asia-Pacific Center.’’.
(b) ACCEPTANCE OF FOREIGN GIFTS AND DONA-
TIONS.—(1) Subsection (a) of section 2611 of such title
is amended to read as follows:
‘‘(a) AUTHORITY TO ACCEPT FOREIGN GIFTS AND
DONATIONS.—(1) Subject to subsection (b), the Secretary
of Defense may accept foreign gifts or donations in order
to defray the costs of, or enhance the operation of, one
of the specified defense regional centers for security stud-
ies.
‘‘(2) For purposes of this section, a specified defense
regional center for security studies is any of the following:
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‘‘(A) The Asia-Pacific Center for Security Stud-
ies.
‘‘(B) The George C. Marshall European Center
for Security Studies.’’.
(2) Subsection (d) of such section is amended—
(A) in the first sentence, by striking ‘‘the Asia-
Pacific Center’’ and inserting ‘‘the regional center
intended to benefit from the gift or donation of such
funds’’; and
(B) in the second sentence, by striking ‘‘the
Asia-Pacific Center’’ and inserting ‘‘such regional
center’’.
(3) Subsection (e) of such section is amended by in-
serting ‘‘with respect to a defense regional center for secu-
rity studies’’ after ‘‘in any fiscal year’’.
(c) REPEAL OF CODIFIED PROVISIONS RELATING TO
THE MARSHALL CENTER.—(1) Section 1306 of the Na-
tional Defense Authorization Act for Fiscal Year 1995
(Public Law 103–337; 108 Stat. 2892) is repealed.
(2) Section 1065 of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2653) is amended—
(A) by striking subsections (a) and (b) and in-
serting the following:
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‘‘(a) DEFINITION.—In this section, the term ‘Mar-
shall Center Board of Visitors’ means the Board of Visi-
tors of the George C. Marshall European Center for Secu-
rity Studies’’; and
(B) by redesignating subsection (c) as sub-
section (b).
(d) CLERICAL AMENDMENTS.—(1) The table of sec-
tions at the beginning of chapter 7 of such title is amended
by adding at the end the following new item:
‘‘184. Regional Centers for Security Studies.’’.
(2)(A) The heading of section 2611 of such title is
amended to read as follows:
‘‘§ 2611. Regional centers for security studies: accept-
ance of foreign gifts and donations’’.
(B) The item relating to section 2611 in the table
of sections at the beginning of chapter 155 of such title
is amended to read as follows: .
‘‘2611. Regional centers for security studies: acceptance of foreign gifts and do-
nations.’’.
SEC. 910. CHANGE IN NAME OF ARMED FORCES STAFF COL-
LEGE TO JOINT FORCES STAFF COLLEGE.
(a) CHANGE IN NAME.—The Armed Forces Staff
College of the Department of Defense is hereby renamed
the ‘‘Joint Forces Staff College’’.
(b) CONFORMING AMENDMENT.—Section 2165(b)(3)
of title 10, United States Code, is amended by striking
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‘‘Armed Forces Staff College’’ and inserting ‘‘Joint Forces
Staff College’’.
(c) REFERENCES.—Any reference to the Armed
Forces Staff College in any law, regulation, map, docu-
ment, record, or other paper of the United States shall
be considered to be a reference to the Joint Forces Staff
College.
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 Sec-
retary may transfer amounts of authorizations made avail-
able to the Department of Defense in this division for fis-
cal year 2001 between any such authorizations for that
fiscal year (or any subdivisions thereof). Amounts of au-
thorizations 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 Sec-
retary 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—
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(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 Con-
gress.
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A
transfer made from one account to another under the au-
thority 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 trans-
ferred.
(d) NOTICE
TO CONGRESS.—The Secretary shall
promptly notify Congress of each transfer made under
subsection (a).
SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.
(a) STATUS OF CLASSIFIED ANNEX.—The Classified
Annex prepared by the Committee on Armed Services of
the House of Representatives to accompany its report on
the bill H.R. 4205 of the One Hundred Sixth Congress
and transmitted to the President is hereby incorporated
into this Act.
(b) CONSTRUCTION WITH OTHER PROVISIONS OF
ACT.—The amounts specified in the Classified Annex are
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not in addition to amounts authorized to be appropriated
by other provisions of this Act.
(c) LIMITATION ON USE OF FUNDS.—Funds appro-
priated pursuant to an authorization contained in this Act
that are made available for a program, project, or activity
referred to in the Classified Annex may only be expended
for such program, project, or activity in accordance with
such terms, conditions, limitations, restrictions, and re-
quirements as are set out for that program, project, or
activity in the Classified Annex.
(d) DISTRIBUTION
OF CLASSIFIED ANNEX.—The
President shall provide for appropriate distribution of the
Classified Annex, or of appropriate portions of the annex,
within the executive branch of the Government.
SEC. 1003. AUTHORIZATION OF EMERGENCY SUPPLE-
MENTAL APPROPRIATIONS FOR FISCAL YEAR
2000.
(a) ADJUSTMENT OF FISCAL YEAR 2000 AUTHOR-
IZATIONS
TO
REFLECT
SUPPLEMENTAL
APPROPRIA-
TIONS.—Subject to subsections (b) and (c), amounts au-
thorized 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 au-
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thorization were increased (by a supplemental appropria-
tion) or decreased (by a rescission), or both, in the 2000
Emergency Supplemental Appropriations Act.
(b) LIMITATION.—(1) In the case of a pending de-
fense contingent emergency supplemental appropriation,
an adjustment may be made under subsection (a) in the
amount of an authorization of appropriations by reason
of that supplemental appropriation only if, and to the ex-
tent that, the President transmits to Congress an official
amended budget request for that appropriation that des-
ignates the entire amount requested as an emergency re-
quirement for the specific purpose identified in the 2000
Emergency Supplemental Appropriations Act as the pur-
pose for which the supplemental appropriation was made.
(2) For purposes of this subsection, the term ‘‘pend-
ing defense contingent emergency supplemental appropria-
tion’’ means a contingent emergency supplemental appro-
priation for the Department of Defense contained in the
2000 Emergency Supplemental Appropriations Act for
which an official budget request that includes designation
of the entire amount of the request as an emergency re-
quirement has not been transmitted to Congress as of the
date of the enactment of this Act.
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(3) For purposes of this subsection, the term ‘‘contin-
gent emergency supplemental appropriation’’ means a
supplemental appropriation that—
(A) is designated by Congress as an emergency
requirement pursuant to section 251(b)(2)(A) of the
Balanced Budget and Emergency Deficit Control
Act of 1985; and
(B) by law is available only to the extent that
the President transmits to the Congress an official
budget request for that appropriation that includes
designation of the entire amount of the request as
an emergency requirement.
(c) EXCEPTION.—No adjustment may be made under
subsection (a) by reason of any appropriation under the
provisions contained in sections 2207 through 2211 of the
2000 Emergency Supplemental Appropriations Act, as
passed the House of Representatives on March 30, 2000.
SEC. 1004. CONTINGENT REPEAL OF CERTAIN PROVISIONS
SHIFTING CERTAIN OUTLAYS FROM ONE FIS-
CAL YEAR TO ANOTHER.
(a) CONTINGENT REPEAL.—Subject to subsection
(b)—
(1) sections 305 and 306 of H.R. 3425 of the
106th Congress, as enacted into law by section
1000(a)(5) of Public Law 106–113, are repealed;
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(2) section 1001(a) of Public Law 106–113 is
amended, effective immediately after the enactment
of such Public Law, by striking ‘‘paragraph 4 of
subsection 1000(a)’’ and inserting ‘‘paragraph (5) of
section 1000(a), and the provisions of titles V, VI,
and VII of the legislation enacted in this division by
reference in such paragraph (5),’’; and
(3) sections 8175 and 8176 of the Department
of Defense Appropriations Act, 2000 (Public Law
106–79), as amended by sections 214 and 215, re-
spectively, 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, are repealed.
(b) CONTINGENCY.—The provisions of subsection (a)
shall be effective only to the extent provided in an appro-
priations Act that is enacted after this Act.
SEC. 1005. LIMITATION ON FUNDS FOR BOSNIA AND
KOSOVO PEACEKEEPING OPERATIONS FOR
FISCAL YEAR 2001.
(a) LIMITATION.—Of the amounts authorized to be
appropriated by section 301(24) for the Overseas Contin-
gency Operations Transfer Fund—
(1) no more than $1,387,800,000 may be obli-
gated for incremental costs of the Armed Forces for
Bosnia peacekeeping operations; and
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(2) no more than $1,650,400,000 may be obli-
gated for incremental costs of the Armed Forces for
Kosovo peacekeeping operations.
(a) PRESIDENTIAL WAIVER.—The President may
waive the limitation in subsection (a)(1), or the limitation
in subsection (a)(2), after submitting to Congress the fol-
lowing:
(1) The President’s written certification that
the waiver is necessary in the national security inter-
ests of the United States.
(2) The President’s written certification that
exercising the waiver will not adversely affect the
readiness of United States military forces.
(3) A report setting forth the following:
(A) The reasons that the waiver is nec-
essary in the national security interests of the
United States.
(B) The specific reasons that additional
funding is required for the continued presence
of United States military forces participating
in, or supporting, Bosnia peacekeeping oper-
ations, or Kosovo peacekeeping operations, as
the case may be, for fiscal year 2001.
(C) A discussion of the impact on the mili-
tary readiness of United States Armed Forces
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of the continuing deployment of United States
military forces participating in, or supporting,
Bosnia peacekeeping operations, or Kosovo
peacekeeping operations, as the case may be.
(4) A supplemental appropriations request for
the Department of Defense for such amounts as are
necessary for the additional fiscal year 2001 costs
associated with United States military forces partici-
pating in, or supporting, Bosnia or Kosovo peace-
keeping operations peacekeeping operations.
(c) PEACEKEEPING OPERATIONS DEFINED.—For the
purposes of this section:
(1) The term ‘‘Bosnia peacekeeping operations’’
has the meaning given such term in section 1004(e)
of the Strom Thurmond National Defense Author-
ization Act for Fiscal Year 1999 (Public Law 105–
261; 112 Stat. 2112).
(2) 
The 
term 
‘‘Kosovo 
peacekeeping
operations’’—
(A) means the operation designated as Op-
eration Joint Guardian and any other operation
involving the participation of any of the Armed
Forces in peacekeeping or peace enforcement
activities in and around Kosovo; and
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(B) includes, with respect to Operation
Joint Guardian or any such other operation,
each activity that is directly related to the sup-
port of the operation.
SEC. 1006. REQUIREMENT FOR PLAN TO ENSURE COMPLI-
ANCE WITH FINANCIAL MANAGEMENT RE-
QUIREMENTS.
(a) IN GENERAL.—(1) The Secretary of Defense
shall develop a comprehensive plan to ensure compliance
by the Department of Defense, not later than October l,
2001, with all statutory and regulatory financial manage-
ment requirements applicable to the Department. In devel-
oping such plan, the Secretary shall give the same priority
to achieving compliance with statutory and regulatory fi-
nancial management requirements as the priority given to
ensuring that the computer systems of the Department
would be fully functional in the year 2000.
(2) Not later than January 1, 2001, the Secretary
shall submit the plan required by this subsection to the
Committees on Armed Services, the Committees on the
Budget, and the Committees on Appropriations of the
Senate and the House of Representatives, and the Comp-
troller General.
(b) COMPTROLLER GENERAL REPORT.—Not later
than March 1, 2001, the Comptroller General shall submit
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to the Committees on Armed Services and the Committees
on the Budget of the Senate and the House of Representa-
tives, the Committee on Governmental Affairs of the Sen-
ate, and the Committee on Government Reform of the
House of Representatives, a report on the adequacy of the
plan developed under subsection (a).
Subtitle B—Naval Vessels and
Shipyards
SEC. 1011. NATIONAL DEFENSE FEATURES PROGRAM.
Section 2218(k) of title 10, United States Code, is
amended—
(1) in paragraph (1), by adding at the end the
following new sentence: ‘‘As consideration for a con-
tract with the Secretary of Defense or the Secretary
of a military department under this subsection, the
company entering into the contract shall agree with
the Secretary to make any vessel covered by the con-
tract available to the Secretary, fully crewed and
ready for sea, at any time at any port determined
by the Secretary, and for whatever duration the Sec-
retary determines necessary.’’; and
(2) by adding at the end of paragraph (2) the
following new subparagraph:
‘‘(E) Payments of such sums as the Govern-
ment would otherwise expend, if the vessel were
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placed in the Ready Reserve Fleet, for maintaining
the vessel in the status designated as ‘ROS–4 sta-
tus’ in the Ready Reserve Fleet for 25 years.’’.
Subtitle C—Counter-Drug
Activities
SEC. 1021. REPORT ON DEPARTMENT OF DEFENSE EXPEND-
ITURES TO SUPPORT FOREIGN COUNTER-
DRUG ACTIVITIES.
Not later than January 1, 2001, the Secretary of De-
fense shall submit to the congressional defense committees
a report detailing the expenditure of funds by the Sec-
retary during fiscal year 2000 in direct or indirect support
of the counter-drug activities of foreign governments. The
report shall include the following for each foreign govern-
ment:
(1) The total amount of assistance provided to,
or expended on behalf of, the foreign government.
(2) A description of the types of counter-drug
activities conducted using the assistance.
(3) An explanation of the legal authority under
which the assistance was provided.
SEC. 1022. REPORT ON TETHERED AEROSTAT RADAR SYS-
TEM.
(a) REPORT REQUIRED.—Not later than May 1,
2001, The Secretary of Defense shall submit to Congress
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a report on the status of the Tethered Aerostat Radar
System used to conduct counter-drug detection and moni-
toring and border security and air sovereignty operations.
The report shall include the following:
(1) The status and operational availability of
each of the existing sites of the Tethered Aerostat
Radar System.
(2) A discussion of any plans to close, during
the next 5 years, currently operational sites, includ-
ing a review of the justification for each proposed
closure.
(3) A review of the requirements of other agen-
cies, especially the United States Customs Service,
for data derived from the Tethered Aerostat Radar
System.
(4) An assessment of the value of the Tethered
Aerostat Radar System in the conduct of counter-
drug detection and monitoring and border security
and air sovereignty operations.
(5) The costs associated with the planned
standardization of the Tethered Aerostat Radar Sys-
tem and the Secretary’s analysis of that standard-
ization.
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(b) CONSULTATION.—The Secretary of Defense shall
prepare the report in consultation with the Commissioner
of Customs.
Subtitle D—Other Matters
SEC. 1031. FUNDS FOR ADMINISTRATIVE EXPENSES UNDER
DEFENSE EXPORT LOAN GUARANTEE PRO-
GRAM.
(a) AUTHORITY TO USE OPERATION AND MAINTE-
NANCE FUNDS ON AN INTERIM BASIS.—Section 2540c(d)
of title 10, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘FEES.—’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2)(A) If for any fiscal year amounts in the special
account established under paragraph (1) are not available
(or are not anticipated to be available) in a sufficient
amount for administrative expenses of the Department of
Defense for that fiscal year that are directly attributable
to the administration of the program under this sub-
chapter, the Secretary may use amounts currently avail-
able for operations and maintenance for Defense-wide ac-
tivities, not to exceed $500,000 in any fiscal year, for
those expenses.
‘‘(B) The Secretary shall, from funds in the special
account established under paragraph (1), replenish oper-
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ations and maintenance accounts for amounts expended
under subparagraph (A) as soon as the Secretary deter-
mines practicable.’’.
(b) EFFECTIVE DATE.—Paragraph (2) of section
2540c(d) of title 10, United States Code, as added by sub-
section (a), shall take effect on October 1, 2000.
SEC. 1032. TECHNICAL AND CLERICAL AMENDMENTS.
(a) TITLE 10, UNITED STATES CODE.—Title 10,
United States Code, is amended as follows:
(1) Section 628(c)(2) is amended by striking
‘‘section’’ in the second sentence after ‘‘the provi-
sions of’’ and inserting ‘‘sections’’.
(2) Section 702(b)(2) is amended by striking
‘‘section 230(c)’’ and inserting ‘‘section 203(c)’’.
(3) Section 706(c) is amended—
(A) by striking ‘‘(1)’’ after ‘‘(c)’’; and
(B) by striking paragraph (2).
(4) Section 1074g is amended—
(A) in subsection (a)(6), by striking ‘‘as
part of the regulations established’’ and insert-
ing ‘‘in the regulations prescribed’’;
(B) in subsection (a)(7), by striking ‘‘not
included on the uniform formulary, but,’’ and
inserting ‘‘that are not included on the uniform
formulary but that are’’;
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(C) in subsection (b)(1), by striking ‘‘re-
quired by’’ in the last sentence and inserting
‘‘prescribed under’’;
(D) in subsection (d)(2), by striking ‘‘Not
later than’’ and all that follows through ‘‘uti-
lize’’ and inserting ‘‘Effective not later than
April 5, 2000, the Secretary shall use’’;
(E) in subsection (e)—
(i) by striking ‘‘Not later than April
1, 2000, the’’ and inserting ‘‘The’’; and
(ii) by inserting ‘‘in’’ before ‘‘the
TRICARE’’ and before ‘‘the national’’;
(F) in subsection (f)—
(i) by striking ‘‘As used in this sec-
tion—’’ and inserting ‘‘In this section:’’;
(ii) by striking ‘‘the’’ at the beginning
of paragraphs (1) and (2) and inserting
‘‘The’’; and
(iii) by striking ‘‘; and’’ at the end of
paragraph (1) and inserting a period; and
(G) in subsection (g), by striking ‘‘promul-
gate’’ and inserting ‘‘prescribe’’.
(5) Section 1109(b) is amended by striking
‘‘(1)’’ before ‘‘The Secretaries’’.
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(6) Section 1448(b)(3)(E)(ii) is amended by
striking the second comma after ‘‘October 16,
1998’’.
(7) Section 2401(b)(1)(B) is amended by strik-
ing ‘‘Committees on Appropriations’’ and inserting
‘‘Committee on Appropriations’’.
(8) Section 5143(c)(2) is amended by striking
‘‘has a grade’’ and inserting ‘‘has the grade of’’.
(9) Section 5144(c)(2) is amended by striking
‘‘has a grade’’ and inserting ‘‘has the grade of’’.
(10) Section 10218 is amended—
(A) in subsections (a)(1), (b)(1), (b)(2)(A),
and (b)(2)(B)(ii), by striking ‘‘the date of the
enactment of this section’’ each place it appears
and inserting ‘‘October 5, 1999,’’;
(B) 
in 
subsections 
(a)(3)(B)(i) 
and
(b)(2)(B)(i), by striking ‘‘the end of the one-
year period beginning on the date of the enact-
ment of this subsection’’ and inserting ‘‘October
5, 2000’’;
(C) in subsection (b)(1), by striking ‘‘six
months after the date of the enactment of this
section’’ and inserting ‘‘April 5, 2000’’; and
(D) in subsection (b)(3), by striking ‘‘with-
in six months of the date of the enactment of
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this section’’ and inserting ‘‘during the period
beginning on October 5, 1999, and ending on
April 5, 2000,’’.
(11) Section 12552 is amended by inserting a
period at the end.
(b) TITLE 37, UNITED STATES CODE.—Title 37,
United States Code, is amended as follows:
(1) Section 301b(j)(2) is amended by striking
‘‘section 301a(a)(6)(A)’’ and inserting ‘‘section
301a(a)(6)(B)’’.
(2) Section 404(b)(2) is amended by striking
‘‘section 402(e)’’ and inserting ‘‘section 403(f)(3)’’.
(3) The table of sections at the beginning of
chapter 7 is amended by inserting after the item re-
lating to section 434 the following new item:
‘‘435. Funeral honors duty: allowance.’’.
(4) The section 435 added by section 586(b) of
the National Defense Authorization Act for Fiscal
Year 2000 (Public Law 106–65; 113 Stat. 638) is
redesignated as section 436, and the item relating to
that section in the table of sections at the beginning
of chapter 7 is revised to conform to such redesigna-
tion.
(5) Section 1012 is amended by striking ‘‘sec-
tion 402(b)(3)’’ and inserting ‘‘section 402(e)’’.
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(c) PUBLIC LAW 106–65.—Effective as of October 5,
1999, and as if included therein as enacted, section 601(c)
of the National Defense Authorization Act for Fiscal Year
2000 (Public Law 106–65; 113 Stat. 645) is amended—
(1) in the first table, relating to commissioned
officers, by striking ‘‘$12,441.00’’ in footnote 2 and
inserting ‘‘$12,488.70’’; and
(2) in the fourth table, relating to enlisted
members, by striking ‘‘$4,701.00’’ in footnote 2 and
inserting ‘‘$4,719.00’’.
(d) PUBLIC LAW 105–261.—Effective as of October
17, 1998, and as if included therein as enacted, the Strom
Thurmond National Defense Authorization Act for Fiscal
Year 1999 (Public Law 105–261; 112 Stat. 1920 et seq.)
is amended as follows:
(1) Section 503(b)(1) (112 Stat. 2003) is
amended by inserting ‘‘its’’ after ‘‘record of’’ in the
first quoted matter therein.
(2) Section 645(b) (112 Stat. 2050) is amended
by striking ‘‘a member’’ and inserting ‘‘member’’ in
the quoted matter therein.
(3) Section 701 (112 Stat. 2056) is amended—
(A) in subsection (a), by inserting ‘‘(1)’’
before ‘‘Section 1076a(b)(2)’’; and
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(B) in subsection (b), by inserting ‘‘of such
title’’ after ‘‘1076a’’.
(4) Section 802(b) (112 Stat. 2081) is amended
by striking ‘‘Administrative’’ in the first quoted mat-
ter therein and inserting ‘‘Administration’’.
(5) Section 1101(e)(2)(C) (112 Stat. 2140; 5
U.S.C. 3104 note) is amended by striking ‘‘sub-
section (c)(1)’’ and inserting ‘‘subsection (c)(2)’’.
(e) PUBLIC LAW 105–85.—The National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105–
85) is amended as follows:
(1) Section 602(d)(1)(A) (111 Stat. 1773; 37
U.S.C. 402 note) is amended by striking ‘‘of’’ the
first place it appears in the matter preceding clause
(ii).
(2) Section 1221(a)(3) (22 U.S.C. 1928 note),
as amended by section 1233(a)(2)(A) of Public Law
105–261 (112 Stat. 2156), is amended by striking
the second close parenthesis after ‘‘relief efforts’’.
(f) OTHER LAWS.—
(1) Section 834(e) of the National Defense Au-
thorization Act for Fiscal Years 1990 and 1991 (15
U.S.C. 637 note) is amended by striking the second
period after ‘‘2000’’.
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(2) Section 2905(b)(4) of 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) is amended by transferring subparagraph (G)
so as to appear immediately before subparagraph
(H), as added by section 2821(a) of the National
Defense Authorization Act for Fiscal Year 2000
(Public Law 106–65; 113 Stat. 853).
(3) Section 686(b) of title 14, United States
Code, is amended—
(A) in paragraph (1), by striking ‘‘section
403(b)’’ and inserting ‘‘section 403(e)’’; and
(B) in paragraph (2), by striking ‘‘a basic
allowance for quarters under section 403 of title
37, and, if in a high housing cost area, a vari-
able housing allowance under section 403a of
that title’’ and inserting ‘‘a basic allowance for
housing under section 403 of title 37’’.
(4) Section 405(f)(6)(B) of the Departments of
Labor, Health and Human Services, and Education,
and Related Agencies Appropriations Act, 1999 (as
contained in section 101(f) of division A of Public
Law 105–277; 112 Stat. 2681–430), is amended by
striking ‘‘Act of title’’ in the first quoted matter
therein and inserting ‘‘Act or title’’.
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(5) Section 1403(c)(6) of the Defense Depend-
ents’ Education Act of 1978 (20 U.S.C. 922(c)(6))
is amended by striking ‘‘the’’ before ‘‘Assistant Sec-
retary of Defense’’.
(6) Effective as of October 5, 1999, section 224
b. of the Atomic Energy Act of 1954 (42 U.S.C.
2274(b)) is amended by striking ‘‘$500,000’’ and in-
serting ‘‘$50,000’’.
SEC. 1033. TRANSFER OF VIETNAM ERA TA–4 AIRCRAFT TO
NONPROFIT FOUNDATION.
(a) AUTHORITY TO CONVEY.—The Secretary of the
Navy may convey, without consideration, to the nonprofit
Collings Foundation of Stow, Massachusetts (in this sec-
tion referred to as the ‘‘foundation’’), all right, title, and
interest of the United States in and to one surplus TA–
4 aircraft that is flyable or that can be readily restored
to flyable condition. The conveyance shall be made by
means of a conditional deed of gift.
(b) CONDITION OF AIRCRAFT.—The Secretary may
not convey ownership of an aircraft under subsection (a)
until the Secretary determines that the foundation has al-
tered the aircraft in such manner as the Secretary deter-
mines necessary to ensure that the aircraft does not have
any capability for use as a platform for launching or re-
leasing munitions or any other combat capability that it
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was designed to have. The Secretary is not required to
repair or alter the condition of the aircraft before con-
veying ownership of the aircraft.
(c) REVERTER UPON BREACH OF CONDITIONS.—
The Secretary shall include in the instrument of convey-
ance of the aircraft—
(1) a condition that the foundation not convey
any ownership interest in, or transfer possession of,
the aircraft to any other party without the prior ap-
proval of the Secretary;
(2) a condition that the foundation operate and
maintain the aircraft in compliance with all applica-
ble limitations and maintenance requirements im-
posed by the Administrator of the Federal Aviation
Administration; and
(3) a condition that if the Secretary determines
at any time that the foundation has conveyed an
ownership interest in, or transferred possession of,
the aircraft to any other party without the prior ap-
proval of the Secretary, or has failed to comply with
the condition set forth in paragraph (2), all right,
title, and interest in and to the aircraft, including
any repair or alteration of the aircraft, shall revert
to the United States, and the United States shall
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have the right of immediate possession of the air-
craft.
(d) CONVEYANCE
AT NO COST
TO
THE UNITED
STATES.—The conveyance of the aircraft under subsection
(a) shall be made at no cost to the United States. Any
costs associated with the conveyance, costs of determining
compliance with subsection (b), and costs of operation and
maintenance of the aircraft conveyed shall be borne by the
foundation.
(e) ADDITIONAL TERMS
AND CONDITIONS.—The
Secretary may require such additional terms and condi-
tions in connection with a conveyance under this section
as the Secretary considers appropriate to protect the inter-
ests of the United States.
(f ) CLARIFICATION OF LIABILITY.—Notwithstanding
any other provision of law, upon the conveyance of owner-
ship of a TA–4 aircraft to the foundation under subsection
(a), the United States shall not be liable for any death,
injury, loss, or damage that results from any use of that
aircraft by any person other than the United States.
SEC. 1034. TRANSFER OF 19TH CENTURY CANNON TO MU-
SEUM.
(a) DONATION REQUIRED.—The Secretary of the
Army shall convey, without consideration, to the Cannon-
ball House Museum located in Macon, Georgia (in this