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(g) DEFINITION.—For purposes of this section, the
term ‘‘Jewish American war veteran’’ means any person
who served in the Armed Forces during World War II or
a later period of war and who identified himself or herself
as Jewish on his or her military personnel records.
SEC. 543. AUTHORITY TO ISSUE DUPLICATE MEDAL OF
HONOR.
(a) ARMY.—(1) Chapter 357 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 3754. Medal of honor: duplicate medal
‘‘A person awarded a medal of honor shall, upon writ-
ten application of that person, be issued, without charge,
one duplicate medal of honor with ribbons and appur-
tenances. Such duplicate medal of honor shall be marked,
in such manner as the Secretary of the Army may deter-
mine, as a duplicate or for display purposes only.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘3754. Medal of honor: duplicate medal.’’.
(b) NAVY.—(1) Chapter 567 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
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‘‘§ 6256. Medal of honor: duplicate medal
‘‘A person awarded a medal of honor shall, upon writ-
ten application of that person, be issued, without charge,
one duplicate medal of honor with ribbons and appur-
tenances. Such duplicate medal of honor shall be marked,
in such manner as the Secretary of the Navy may deter-
mine, as a duplicate or for display purposes only.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘6256. Medal of honor: duplicate medal.’’.
(c) AIR FORCE.—(1) Chapter 857 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 8754. Medal of honor: duplicate medal
‘‘A person awarded a medal of honor shall, upon writ-
ten application of that person, be issued, without charge,
one duplicate medal of honor with ribbons and appur-
tenances. Such duplicate medal of honor shall be marked,
in such manner as the Secretary of the Air Force may
determine, as a duplicate or for display purposes only.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘8754. Medal of honor: duplicate medal.’’.
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(d) COAST GUARD.—(1) Chapter 13 of title 14,
United States Code, is amended by inserting after section
503 the following new section:
‘‘§ 504. Medal of honor: duplicate medal
‘‘A person awarded a medal of honor shall, upon writ-
ten application of that person, be issued, without charge,
one duplicate medal of honor with ribbons and appur-
tenances. Such duplicate medal of honor shall be marked,
in such manner as the Secretary may determine, as a du-
plicate or for display purposes only.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 503 the following new item:
‘‘504. Medal of honor: duplicate medal.’’.
(e) DEFINITION OF MEDAL OF HONOR FOR PUR-
POSES OF FEDERAL UNAUTHORIZED-USE CRIME.—Sec-
tion 704(b)(2)(B) of title 18, United States Code, is
amended to read as follows:
‘‘(B) As used in this subsection, ‘Congressional
Medal of Honor’ means—
‘‘(i) a medal of honor awarded under sec-
tion 3741, 6241, or 8741 of title 10 or section
491 of title 14;
‘‘(ii) a duplicate medal of honor issued
under section 3754, 6256, or 8754 of title 10
or section 504 of title 14; or
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‘‘(iii) a replacement of a medal of honor
provided under section 3747, 6253, or 8747 of
title 10 or section 501 of title 14.’’.
SEC. 544. AUTHORITY TO REPLACE STOLEN MILITARY
DECORATIONS.
(a) ARMY, NAVY, AND AIR FORCE.—Sections 3747,
6253, and 8747 of title 10, United States Code, are each
amended by striking ‘‘lost or destroyed’’ and inserting
‘‘stolen, lost, or destroyed’’.
(b) COAST GUARD.—Section 501 of title 14, United
States Code, is amended by inserting ‘‘stolen,’’ before
‘‘lost,’’.
SEC. 545. WAIVER OF TIME LIMITATIONS FOR AWARD OF
NAVY DISTINGUISHED FLYING CROSS TO
CERTAIN PERSONS.
(a) WAIVER.—Any limitation established by law or
policy for the time within which a recommendation for the
award of a military decoration or award must be sub-
mitted shall not apply to awards of decorations described
in this section, the award of each such decoration having
been determined by the Secretary concerned to be war-
ranted in accordance with section 1130 of title 10, United
States Code.
(b) DISTINGUISHED FLYING CROSS.—Subsection (a)
applies to the award of the Distinguished Flying Cross
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for service during World War II or Korea (including mul-
tiple awards to the same individual) in the case of each
individual concerning whom the Secretary of the Navy (or
an officer of the Navy acting on behalf of the Secretary)
submitted to the Committee on Armed Services of the
House of Representatives and the Committee on Armed
Services of the Senate, during the period beginning on Oc-
tober 31, 2000, and ending on the day before the date
of the enactment of this Act, a notice as provided in sec-
tion 1130(b) of title 10, United States Code, that the
award of the Distinguished Flying Cross to that individual
is warranted and that a waiver of time restrictions pre-
scribed by law for recommendation for such award is rec-
ommended.
SEC. 546. KOREA DEFENSE SERVICE MEDAL.
(a) ARMY.—(1) Chapter 357 of title 10, United
States Code, as amended by section 543(a)(1), is further
amended by adding at the end the following new section:
‘‘§ 3755. Korea Defense Service Medal
‘‘(a) The Secretary of the Army shall issue a cam-
paign medal, to be known as the Korea Defense Service
Medal, to each person who while a member of the Army
served in the Republic of Korea or the waters adjacent
thereto during the KDSM eligibility period and met the
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service requirements for the award of that medal pre-
scribed under subsection (c).
‘‘(b) In this section, the term ‘KDSM eligibility pe-
riod’ means the period beginning on July 28, 1954, and
ending on such date after the date of the enactment of
this section as may be determined by the Secretary of De-
fense to be appropriate for terminating eligibility for the
Korea Defense Service Medal.
‘‘(c) The Secretary of the Army shall prescribe service
requirements for eligibility for the Korea Defense Service
Medal. Those requirements shall not be more stringent
than the service requirements for award of the Armed
Forces Expeditionary Medal for instances in which the
award of that medal is authorized.’’.
(2) The table of sections at the beginning of such
chapter, as amended by section 543(a)(2), is further
amended by adding at the end the following new item:
‘‘3755. Korea Defense Service Medal.’’.
(b) NAVY AND MARINE CORPS.—(1) Chapter 567 of
title 10, United States Code, as amended by section
543(b)(1), is further amended by adding at the end the
following new section:
‘‘§ 6257. Korea Defense Service Medal
‘‘(a) The Secretary of the Navy shall issue a cam-
paign medal, to be known as the Korea Defense Service
Medal, to each person who while a member of the Navy
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or Marine Corps served in the Republic of Korea or the
waters adjacent thereto during the KDSM eligibility pe-
riod and met the service requirements for the award of
that medal prescribed under subsection (c).
‘‘(b) In this section, the term ‘KDSM eligibility pe-
riod’ means the period beginning on July 28, 1954, and
ending on such date after the date of the enactment of
this section as may be determined by the Secretary of De-
fense to be appropriate for terminating eligibility for the
Korea Defense Service Medal.
‘‘(c) The Secretary of the Navy shall prescribe service
requirements for eligibility for the Korea Defense Service
Medal. Those requirements shall not be more stringent
than the service requirements for award of the Armed
Forces Expeditionary Medal for instances in which the
award of that medal is authorized.’’.
(2) The table of sections at the beginning of such
chapter, as amended by section 543(b)(2), is further
amended by adding at the end the following new item:
‘‘6257. Korea Defense Service Medal.’’.
(c) AIR FORCE.—(1) Chapter 857 of title 10, United
States Code, as amended by section 543(c)(1), is further
amended by adding at the end the following new section:
‘‘§ 8755. Korea Defense Service Medal
‘‘(a) The Secretary of the Air Force shall issue a
campaign medal, to be known as the Korea Defense Serv-
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ice Medal, to each person who while a member of the Air
Force served in the Republic of Korea or the waters adja-
cent thereto during the KDSM eligibility period and met
the service requirements for the award of that medal pre-
scribed under subsection (c).
‘‘(b) In this section, the term ‘KDSM eligibility pe-
riod’ means the period beginning on July 28, 1954, and
ending on such date after the date of the enactment of
this section as may be determined by the Secretary of De-
fense to be appropriate for terminating eligibility for the
Korea Defense Service Medal.
‘‘(c) The Secretary of the Air Force shall prescribe
service requirements for eligibility for the Korea Defense
Service Medal. Those requirements shall not be more
stringent than the service requirements for award of the
Armed Forces Expeditionary Medal for instances in which
the award of that medal is authorized.’’.
(2) The table of sections at the beginning of such
chapter, as amended by section 543(c)(2), is further
amended by adding at the end the following new item:
‘‘8755. Korea Defense Service Medal.’’.
(d) AWARD FOR SERVICE BEFORE DATE OF ENACT-
MENT.—The Secretary of the military department con-
cerned shall take appropriate steps to provide in a timely
manner for the issuance of the Korea Defense Service
Medal, upon application therefor, to persons whose eligi-
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bility for that medal is by reason of service in the Republic
of Korea or the waters adjacent thereto before the date
of the enactment of this Act.
SEC. 547. COLD WAR SERVICE MEDAL.
(a) AUTHORITY.—Chapter 57 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 1134. Cold War service medal
‘‘(a) MEDAL
AUTHORIZED.—The Secretary con-
cerned shall, upon application, issue the Cold War service
medal to a person eligible to receive that medal. The Cold
War service medal shall be of an appropriate design ap-
proved by the Secretary of Defense, with ribbons, lapel
pins, and other appurtenances.
‘‘(b) ELIGIBILITY.—(1) A person is eligible to receive
the Cold War service medal if the person—
‘‘(A) served on active duty during the Cold
War;
‘‘(B) has not been released from active duty
with a characterization of service less favorable than
honorable and has not received a discharge less fa-
vorable than an honorable discharge; and
‘‘(C) except as provided under paragraph (3),
meets the service requirements of paragraph (2).
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‘‘(2) The service requirements of this paragraph
are—
‘‘(A) in the case of a person who served on ac-
tive duty during the Cold War as an enlisted mem-
ber, that the person have completed that person’s
initial term of enlistment and after the end of that
initial term of enlistment have reenlisted for an ad-
ditional term of enlistment or have been appointed
as an officer; and
‘‘(B) in the case of a person who served on ac-
tive duty during the Cold War as an officer, that the
person have completed that person’s initial service
obligation as an officer and have served in the
armed forces after completing that initial service ob-
ligation.
‘‘(3) The Secretary concerned, under regulations pre-
scribed under this section, may waive the service require-
ments of paragraph (2)—
‘‘(A) in the case of any person discharged or re-
leased from active duty for a disability incurred or
aggravated in line of duty;
‘‘(B) in the case of any person discharged for
hardship under section 1173 of this title; and
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‘‘(C) under any other circumstance for which
the Secretary determines that such a waiver is war-
ranted.
‘‘(c) ONE AWARD AUTHORIZED.—Not more than one
Cold War service medal may be issued to any person.
‘‘(d) ISSUANCE
TO
REPRESENTATIVE
OF
DE-
CEASED.—If a person who is eligible for the Cold War
service medal dies before being issued that medal, the
medal may, upon application, be issued to the person’s
representative, as designated by the Secretary concerned.
‘‘(e) REPLACEMENT.—Under regulations prescribed
by the Secretary concerned, a Cold War service medal that
is lost, destroyed, or rendered unfit for use without fault
or neglect on the part of the person to whom it was issued
may be replaced without charge.
‘‘(f) UNIFORM REGULATIONS.—The Secretary of De-
fense shall ensure that regulations prescribed by the Sec-
retaries of the military departments under this section are
uniform so far as is practicable.
‘‘(g) COLD WAR DEFINED.—In this section, the term
‘Cold War’ means the period beginning on September 2,
1945, and ending at the end of December 26, 1991.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘1134. Cold War service medal.’’.
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SEC. 548. OPTION TO CONVERT AWARD OF ARMED FORCES
EXPEDITIONARY MEDAL AWARDED FOR OP-
ERATION 
FREQUENT 
WIND 
TO 
VIETNAM
SERVICE MEDAL.
(a) IN GENERAL.—The Secretary of the military de-
partment concerned shall, upon the application of an indi-
vidual who is an eligible Vietnam evacuation veteran,
award that individual the Vietnam Service Medal, notwith-
standing any otherwise applicable requirements for the
award of that medal. Any such award shall be made in
lieu of the Armed Forces Expeditionary Medal awarded
the individual for participation in Operation Frequent
Wind.
(b) ELIGIBLE VIETNAM EVACUATION VETERAN.—
For purposes of this section, the term ‘‘eligible Vietnam
evacuation veteran’’ means a member or former member
of the Armed Forces who was awarded the Armed Forces
Expeditionary Medal for participation in military oper-
ations designated as Operation Frequent Wind arising
from the evacuation of Vietnam on April 29 and 30, 1975.
SEC. 549. SENSE OF CONGRESS ON NEW MEDAL TO RECOG-
NIZE CIVILIAN EMPLOYEES OF THE DEPART-
MENT OF DEFENSE KILLED OR WOUNDED AS
A RESULT OF HOSTILE ACTION.
(a) FINDINGS.—Congress makes the following find-
ings:
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(1) The role and importance of civilian nation-
als of the United States as Federal employees and
contractors in support of operations of the Armed
Forces worldwide has continued to expand.
(2) The expanded role performed by those civil-
ians, both in the United States and overseas, has
greatly increased the risk to those civilians of injury
and death from hostile actions taken against United
States Armed Forces, as demonstrated by the ter-
rorist attack on the Pentagon on September 11,
2001, in which scores of Department of Defense ci-
vilian and contractor personnel were killed or
wounded.
(3) No decoration exists for the recognition of
civilian nationals of the United States who, while
serving under competent authority in any capacity
with the Armed Forces, are killed or wounded in the
line of duty under circumstances which, if they were
members of the Armed Forces, would qualify them
for the award of the Purple Heart.
(4) Both the Congress and the Secretary of De-
fense have previously agreed to the need for such a
decoration.
(5) On September 20, 2001, the Deputy Sec-
retary of Defense approved the creation of a new
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award, a medal for the defense of freedom, to be
awarded to civilians employed by the Department of
Defense who are killed or wounded as a result of
hostile action and at the same time directed that a
comprehensive review be conducted to develop a
more uniform approach to the award of decorations
to military and civilian personnel of the Department
of Defense.
(b) 
COMMENDATION
OF
CREATION
OF
NEW
AWARD.—Congress commends the decision announced by
the Deputy Secretary of Defense on September 20, 2001,
to approve the creation of a new award, a medal for the
defense of freedom, to be awarded to civilians employed
by the Department of Defense who are killed or wounded
as a result of hostile action.
(c) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Secretary of Defense—
(1) should move expeditiously to produce and
award the new medal referred to in subsection (b);
and
(2) should develop a more comprehensive, uni-
form policy for the award of decorations to military
and civilian personnel of the Department of Defense.
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Subtitle F—Matters Relating to
Voting
SEC. 551. VOTING ASSESSMENTS AND ASSISTANCE FOR
MEMBERS OF THE UNIFORMED SERVICES.
(a) IN GENERAL.—Chapter 80 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 1566. Voting assistance: compliance assessments
and assistance
‘‘(a) INSPECTOR GENERAL ASSESSMENTS.—(1) The
Department of Defense Inspector General shall each cal-
endar year conduct a random and unannounced assess-
ment at a minimum of 15 Department of Defense installa-
tions of the compliance at those installations with—
‘‘(A) the requirements of the Uniformed and
Overseas Citizens Absentee Voting Act (42 U.S.C.
1973ff et seq.);
‘‘(B) Department of Defense regulations re-
garding that Act and the Federal Voting Assistance
Program carried out under that Act; and
‘‘(C) other requirements of law regarding voting
by members of the armed forces.
‘‘(2) Each assessment under paragraph (1) shall in-
clude a review of such compliance—
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‘‘(A) within units to which are assigned, in the
aggregate, not less than 20 percent of the personnel
assigned to duty at that installation;
‘‘(B) within a representative survey of members
of the armed forces assigned to that installation and
their dependents; and
‘‘(C) within unit voting assistance officers to
measure program effectiveness.
‘‘(b) REGULAR MILITARY DEPARTMENT ASSESS-
MENTS.—The Secretary of each military department shall
include in the set of issues and programs to be reviewed
during any management effectiveness review or inspection
an assessment of compliance with the Uniformed and
Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff
et seq.) and with Department of Defense regulations re-
garding the Federal Voting Assistance Program.
‘‘(c) VOTING ASSISTANCE OFFICERS.—Voting assist-
ance officers appointed or assigned under Department of
Defense regulations regarding the Federal Voting Assist-
ance Program shall be appointed or assigned with the ex-
pectation of serving in that capacity for a minimum of
30 months. A member of the armed forces assigned to
such a position may not be assigned other duties that
would not be considered part of the member’s primary
military duties, except when a unit commander determines
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that insufficient personnel are available to fulfill all addi-
tional duty requirements. Performance evaluation reports
pertaining to a member who has been assigned to serve
as a voting assistance officer shall comment on the per-
formance of the member as a voting assistance officer.
‘‘(d) DELIVERY
OF MAIL FROM OVERSEAS PRE-
CEDING FEDERAL ELECTIONS.—(1) During the four
months preceding a general Federal election month, the
Secretary of Defense shall periodically conduct surveys of
all overseas locations and vessels at sea with military units
responsible for collecting mail for return shipment to the
United States and all port facilities in the United States
and overseas where military-related mail is collected for
shipment to overseas locations or to the United States.
The purpose of each survey shall be to determine if voting
materials are awaiting shipment at any such location and,
if so, the length of time that such materials have been
held at that location. During the fourth and third months
before a general Federal election month, such surveys
shall be conducted biweekly. During the second and first
months before a general Federal election month, such sur-
veys shall be conducted weekly.
‘‘(2) The Secretary shall ensure that voting materials
are transmitted expeditiously by military postal authorities
at all times.
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‘‘(3) In this section, the term ‘general Federal elec-
tion month’ means November in an even-numbered year.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘1566. Voting assistance: compliance assessments and assistance.’’.
SEC. 
552. 
ELECTRONIC 
VOTING 
DEMONSTRATION
PROJECT.
(a) DEMONSTRATION PROJECT.—The Secretary of
Defense shall carry out a demonstration project to exam-
ine voting in Federal elections by absent uniformed serv-
ices voters through a long-distance electronic voting sys-
tem. The demonstration project shall be carried out for
voting in the regularly scheduled general election for Fed-
eral office in November 2002. Under the demonstration
project, absent uniformed services voters participating in
the project shall be provided a means, with the cooperation
and assistance of State election officials of States that
agree to participate in the project, to cast their ballots
in that election through a long-distance electronic voting
method.
(b) SCOPE OF PROJECT.—The Secretary shall deter-
mine the scope of the demonstration project under this
section, including the absent uniformed services voters au-
thorized to participate in the project. The project shall be
carried out with participation of sufficient numbers of ab-
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sent uniformed services voters so that the results are sta-
tistically relevant.
(c) COORDINATION WITH STATE ELECTION OFFI-
CIALS.—The Secretary shall carry out the demonstration
project under this section through cooperative agreements
with State election officials of States that agree to partici-
pate in the project.
(d) REPORT TO CONGRESS.—Not later than June 1,
2003, the Secretary shall submit to Congress a report ana-
lyzing the demonstration project conducted under this sec-
tion. The Secretary shall include in the report any rec-
ommendations the Secretary considers appropriate for
continuing the project on an expanded basis during the
next regularly scheduled general election for Federal of-
fice.
(e) ABSENT UNIFORMED SERVICES VOTER DE-
FINED.—In this section, the term ‘‘absent uniformed serv-
ices voter’’ has the meaning given that term in section
107(1) of the Uniformed and Overseas Citizens Absentee
Voting Act (42 U.S.C. 1973ff–6(1)).
(f) STATE DEFINED.—In this section, the term
‘‘State’’ includes the District of Columbia, the Common-
wealth of Puerto Rico, Guam, the Virgin Islands, and
American Samoa.
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Subtitle G—Matters Relating to
Military Spouses and Family
Members
SEC. 561. IMPROVED FINANCIAL AND OTHER ASSISTANCE
TO MILITARY SPOUSES FOR JOB TRAINING
AND EDUCATION.
(a) EXAMINATION OF EXISTING EMPLOYMENT AS-
SISTANCE PROGRAMS.—(1) The Secretary of Defense
shall examine existing Department of Defense and other
Federal, State, and nongovernmental programs with the
objective of improving retention of military personnel by
increasing the employability of military spouses and assist-
ing those spouses in gaining access to financial and other
assistance for job training and education.
(2) In conducting the examination, the Secretary
shall give priority to facilitating and increasing access of
military spouses to existing Department of Defense, Fed-
eral, State, and nongovernmental sources for the types of
financial assistance set forth in paragraph (3), but shall
also specifically assess whether the Department of Defense
should begin a program for direct financial assistance to
military spouses for some or all of those types of assist-
ance and whether such a program of direct financial as-
sistance would enhance retention.
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(3) In conducting the examination pursuant to para-
graph (1), the Secretary should focus on financial assist-
ance for military spouses for one or more of the following
purposes:
(A) Career-related education.
(B) Certification and license fees for employ-
ment-related purposes.
(C) Apprenticeships and internships.
(D) Technical training.
(E) Training to improve job skills.
(F) Career counseling.
(G) Skills assessment.
(H) Job-search skills.
(I) Job-related transportation.
(J) Child care.
(K) Any additional employment-related purpose
specified by the Secretary for the purposes of the ex-
amination under paragraph (1).
(4) Not later than March 30, 2002, 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 on the results of
the examination under paragraph (1).
(b) REVIEW OF DEPARTMENT OF DEFENSE POLI-
CIES.—(1) The Secretary of Defense shall review Depart-
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ment of Defense policies that affect employment and edu-
cation opportunities for military spouses in the Depart-
ment of Defense in order to further expand those opportu-
nities. The review shall include the consideration of pro-
viding, to the extent authorized by law, separate spouse
preferences for employment by appropriated and non-
appropriated fund operations.
(2) Not later than March 30, 2002, 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 on the results of
the review under paragraph (1).
(c) SPOUSE
EMPLOYMENT
ASSISTANCE.—Section
1784 of title 10, United States Code, is amended by add-
ing at the end the following new subsections:
‘‘(d) SPACE-AVAILABLE USE
OF FACILITIES
FOR
SPOUSE TRAINING PURPOSES.—Under regulations pre-
scribed by the Secretary of Defense, the Secretary of a
military department may make available to a non-Depart-
ment of Defense entity space in non-excess facilities con-
trolled by that Secretary for the purpose of the non-De-
partment of Defense entity providing employment-related
training for military spouses.
‘‘(e) EMPLOYMENT
BY OTHER FEDERAL AGEN-
CIES.—The Secretary of Defense shall work with the Di-
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rector of the Office of Personnel Management and the
heads of other Federal departments and agencies to ex-
pand and facilitate the use of existing Federal programs
and resources in support of military spouse employment.
‘‘(f) PRIVATE-SECTOR
EMPLOYMENT.—The Sec-
retary of Defense—
‘‘(1) shall seek to develop partnerships with
firms in the private sector to enhance employment
opportunities for spouses of members of the armed
forces and to provide for improved job portability for
such spouses, especially in the case of the spouse of
a member of the armed forces accompanying the
member to a new geographical area because of a
change of permanent duty station of the member;
and
‘‘(2) shall work with the United States Cham-
ber of Commerce and other appropriate private-sec-
tor entities to facilitate the formation of such part-
nerships.
‘‘(g) EMPLOYMENT WITH DOD CONTRACTORS.—
The Secretary of Defense shall examine and seek ways for
incorporating hiring preferences for qualified spouses of
members of the armed forces into contracts between the
Department of Defense and private-sector entities.’’.
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SEC. 562. AUTHORITY TO CONDUCT SURVEYS OF DEPEND-
ENTS AND SURVIVORS OF MILITARY RETIR-
EES.
(a) EXTENSION
OF
SURVEY
AUTHORITY.—Sub-
section (a) of section 1782 of title 10, United States Code,
is amended to read as follows:
‘‘(a) AUTHORITY.—The Secretary of Defense, in
order to determine the effectiveness of Federal programs
relating to military families and the need for new pro-
grams, may conduct surveys of—
‘‘(1) members of the armed forces who are on
active duty, in an active status, or retired;
‘‘(2) family members of such members; and
‘‘(3) survivors of retired members.’’.
(b) CONFORMING AMENDMENT.—Subsection (c) of
such section is amended by striking ‘‘family members’’
and all that follows through ‘‘armed forces’’ the second
place it appears and inserting ‘‘persons covered by sub-
section (a)’’.
SEC. 563. CLARIFICATION OF TREATMENT OF CLASSIFIED
INFORMATION CONCERNING PERSONS IN A
MISSING STATUS.
Section 1506(b)(2) of title 10, United States Code,
is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’;
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(2) by striking the period at the end and insert-
ing ‘‘of all missing persons from the conflict or pe-
riod of war to which the classified information per-
tains.’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) For purposes of subparagraph (A), information
shall be considered to be made reasonably available if
placed in a separate and distinct file that is available for
review by persons specified in subparagraph (A) upon the
request of any such person either to review the separate
file or to review the personnel file of the missing person
concerned.’’.
SEC. 564. TRANSPORTATION TO ANNUAL MEETING OF
NEXT-OF-KIN OF PERSONS UNACCOUNTED
FOR FROM CONFLICTS AFTER WORLD WAR II.
(a) IN GENERAL.—(1) Chapter 157 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 2647. Transportation to annual meeting of next-of-
kin of persons unaccounted for from con-
flicts after World War II
‘‘The Secretary of Defense may provide transpor-
tation for the next-of-kin of persons who are unaccounted
for from the Korean conflict, the Cold War, Vietnam War
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era, or the Persian Gulf War to and from an annual meet-
ing in the United States. Such transportation shall be pro-
vided under such regulations as the Secretary of Defense
may prescribe.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2647. Transportation to annual meeting of next-of-kin of persons unaccounted
for from conflicts after World War II.’’.
(b) EFFECTIVE DATE.—Section 2647 of title 10,
United States Code, as added by subsection (a), shall take
effect on October 1, 2001, or the date of the enactment
of this Act, whichever is later.
SEC. 565. AMENDMENTS TO CHARTER OF DEFENSE TASK
FORCE ON DOMESTIC VIOLENCE.
(a) MEMBERS APPOINTED FROM PRIVATE SEC-
TOR.—Subsection (h)(1) of section 591 of the National
Defense Authorization Act for Fiscal Year 2000 (Public
Law 106–65; 113 Stat. 639; 10 U.S.C. 1562 note) is
amended—
(1) by inserting ‘‘who is a member of the
Armed Forces or civilian officer or employee of the
United States’’ after ‘‘Each member of the task
force’’;
(2) by striking ‘‘, but shall’’ and all that follows
and inserting a period; and
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(3) by adding at the end the following new sen-
tence: ‘‘Other members of the task force shall be ap-
pointed in accordance with, and subject to, section
3161 of title 5, United States Code.’’.
(b) EXTENSION
OF
TERMINATION
DATE.—Sub-
section (j) of such section is amended by striking ‘‘three
years after the date of the enactment of this Act’’ and
inserting ‘‘on April 24, 2003’’.
Subtitle H—Military Justice and
Legal Matters
SEC. 571. REQUIREMENT THAT COURTS-MARTIAL CONSIST
OF NOT LESS THAN 12 MEMBERS IN CAPITAL
CASES.
(a) CLASSIFICATION OF GENERAL COURT-MARTIAL
IN CAPITAL CASES.—Section 816(1)(A) of title 10, United
States Code (article 16(1)(A) of the Uniform Code of Mili-
tary Justice) is amended by inserting after ‘‘five mem-
bers’’ the following: ‘‘or, in a case in which the accused
may be sentenced to a penalty of death, the number of
members determined under section 825a of this title (arti-
cle 25a)’’.
(b) NUMBER OF MEMBERS REQUIRED.—(1) Chapter
47 of title 10, United States Code (the Uniform Code of
Military Justice), is amended by inserting after section
825 (article 25) the following new section:
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‘‘§ 825a. Art. 25a. Number of members in capital cases
‘‘In a case in which the accused may be sentenced
to a penalty of death, the number of members shall be
not less than 12, unless 12 members are not reasonably
available because of physical conditions or military exigen-
cies, in which case the convening authority shall specify
a lesser number of members not less than five, and the
court may be assembled and the trial held with not less
than the number of members so specified. In such a case,
the convening authority shall make a detailed written
statement, to be appended to the record, stating why a
greater number of members were not reasonably avail-
able.’’.
(2) The table of sections at the beginning of sub-
chapter V of such chapter is amended by inserting after
the item relating to section 825 (article 25) the following
new item:
‘‘825a. 25a. Number of members in capital cases.’’.
(c) ABSENT AND ADDITIONAL MEMBERS.—Section
829(b) of such title (article 29 of the Uniform Code of
Military Justice) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(2) by striking ‘‘five members’’ both places it
appears and inserting ‘‘the applicable minimum
number of members’’; and
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(3) by adding at the end the following new
paragraph:
‘‘(2) In this section, the term ‘applicable minimum
number of members’ means five members or, in a case
in which the death penalty may be adjudged, the number
of members determined under section 825a of this title
(article 25a).’’.
(d) APPLICABILITY.—The amendments made by this
section shall apply with respect to offenses committed
after the date of the enactment of this Act.
SEC. 572. RIGHT OF CONVICTED ACCUSED TO REQUEST
SENTENCING BY MILITARY JUDGE.
(a) SENTENCING BY JUDGE.—(1) Chapter 47 of title
10, United States Code (the Uniform Code of Military
Justice), is amended by inserting after section 852 (article
52) the following new section:
‘‘§ 852a. Art. 52a. Right of accused to request sen-
tencing by military judge rather than by
members
‘‘(a) In the case of an accused convicted of an offense
by a court-martial composed of a military judge and mem-
bers, the sentence shall be tried before and adjudged by
the military judge rather than the members if, after the
findings are announced and before evidence in the sen-
tencing proceeding is introduced, the accused, knowing the
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identity of the military judge and after consultation with
defense counsel, requests orally on the record or in writing
that the sentence be tried before and adjudged by the mili-
tary judge rather than the members.
‘‘(b) This section shall not apply with respect to an
offense for which the death penalty may be adjudged un-
less the case has been previously referred to trial as a non-
capital case.’’.
(2) The table of sections at the beginning of sub-
chapter VII of such chapter is amended by inserting after
the item relating to section 852 (article 52) the following
new item:
‘‘852a. 52a. Right of accused to request sentencing by military judge rather
than by members.’’.
(b) EFFECTIVE DATE.—Section 852a of title 10,
United States Code (article 52a of the Uniform Code of
Military Justice), as added by subsection (a), shall apply
with respect to offenses committed after the date of the
enactment of this Act.
SEC. 573. CODIFICATION OF REQUIREMENT FOR REGULA-
TIONS FOR DELIVERY OF MILITARY PER-
SONNEL 
TO 
CIVIL 
AUTHORITIES 
WHEN
CHARGED WITH CERTAIN OFFENSES
(a) CODIFICATION OF EXISTING PROVISIONS.—Sec-
tion 814 of title 10, United States Code (article 14 of the
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Uniform Code of Military Justice), is amended by adding
at the end the following new subsection:
‘‘(c) The Secretary of Defense shall ensure that the
Secretaries of the military departments prescribe regula-
tions under subsection (a) and that those regulations are
uniform throughout the armed forces under the jurisdic-
tion of the Secretary of Defense. Those regulations shall—
‘‘(1) specifically provide for the delivery to the
appropriate civil authority for trial, in any appro-
priate case, of a member accused by civil authority
of parental kidnapping or a similar offense, includ-
ing criminal contempt arising from any such offense
or from child custody matters; and
‘‘(2) specifically address the special needs for
the exercise of the authority contained in this section
(article) in a case in which a member of the armed
forces assigned overseas is accused of an offense by
civil authority.’’.
(b) REPEAL OF CODIFIED PROVISIONS.—Section 721
of the National Defense Authorization Act, Fiscal Year
1989 (Public Law 100–456; 10 U.S.C. 814 note), is re-
pealed.
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SEC. 574. AUTHORITY TO ACCEPT VOLUNTARY LEGAL
SERVICES FOR MEMBERS OF THE ARMED
FORCES.
(a) AUTHORITY.—Subsection (a) of section 1588 of
title 10, United States Code, is amended by adding at the
end the following new paragraph:
‘‘(5) Voluntary legal assistance services under
section 1044 of this title.’’.
(b) APPLICABLE FEDERAL LAWS.—Subsection (d)(1)
of such section is amended by adding at the end the fol-
lowing new subparagraph:
‘‘(E) Section 1054 of this title (relating to de-
fense of certain suits arising out of legal mal-
practice), in the case of persons providing voluntary
legal assistance services under subsection (a)(5).’’.
Subtitle I—Other Matters
SEC. 581. SHIPMENT OF PRIVATELY OWNED VEHICLES
WHEN MAKING PERMANENT CHANGE OF STA-
TION MOVES WITHIN UNITED STATES.
Section 2634(h)(1) of title 10, United States Code,
is amended by inserting ‘‘or when the Secretary concerned
determines that the transport of a vehicle upon such a
transfer is advantageous and cost-effective to the United
States’’ before the period at the end.
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SEC. 582. PAYMENT OF VEHICLE STORAGE COSTS IN AD-
VANCE.
Section 2634(b) of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(4) Storage costs payable under this subsection may
be paid in advance.’’.
SEC. 583. PERMANENT AUTHORITY FOR USE OF MILITARY
RECRUITING FUNDS FOR CERTAIN EXPENSES
AT DEPARTMENT OF DEFENSE RECRUITING
FUNCTIONS.
(a) REPEAL OF TERMINATION PROVISION.—Section
520c of title 10, United States Code, is amended by strik-
ing subsection (c).
(b) TECHNICAL AMENDMENTS.—Subsection (a) of
such section is amended—
(1) in paragraph (4), by striking ‘‘recruiting
events’’ and inserting ‘‘recruiting functions’’; and
(2) in paragraph (5), by striking ‘‘recruiting ef-
forts’’ the first place it appears and inserting ‘‘re-
cruiting functions’’.
SEC. 584. CLARIFICATION OF MILITARY RECRUITER AC-
CESS TO SECONDARY SCHOOL DIRECTORY
INFORMATION ABOUT STUDENTS.
(a) ACCESS TO DIRECTORY INFORMATION.—Section
503(c)(1) of title 10, United States Code, is amended by
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striking ‘‘purposes,’’ and all that follows and inserting the
following: ‘‘purposes—
‘‘(A) the same access to secondary school stu-
dents as is provided generally to post-secondary edu-
cational institutions or to prospective employers of
those students; and
‘‘(B) the same access to directory information
concerning those students as is provided to a post-
secondary educational institution upon an indication
by a secondary school student that the student seeks
to enroll or intends to enroll at that institution.’’.
(b) 
ENHANCED
RECRUITER
ACCESS.—Section
503(c)(5) of such title is amended by striking ‘‘do not
apply to—’’ and all that follows through ‘‘(B)’’ and insert-
ing ‘‘do not apply to’’.
(c) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall take effect on July 1, 2002,
immediately after the amendment to section 503(c) of title
10, United States Code, made, effective that date, by sec-
tion 563(a) of the Floyd D. Spence National Defense Au-
thorization Act for Fiscal Year 2001 (as enacted into law
by Public Law 106–398; 114 Stat. 1654A–131).
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SEC. 585. REPEAL OF REQUIREMENT FOR FINAL COMP-
TROLLER GENERAL REPORT RELATING TO
ARMY END STRENGTH ALLOCATIONS.
Section 552 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat.
319; 10 U.S.C. 115 note) is repealed.
SEC. 586. POSTHUMOUS ARMY COMMISSION IN THE GRADE
OF CAPTAIN IN THE CHAPLAINS CORPS TO
ELLA E. GIBSON FOR SERVICE AS CHAPLAIN
OF THE FIRST WISCONSIN HEAVY ARTILLERY
REGIMENT DURING THE CIVIL WAR.
The President is authorized and requested to post-
humously appoint Ella E. Gibson to the grade of captain
in the Chaplains Corps of the Army, the commission to
issue as of the date of her appointment as chaplain to the
First Wisconsin Heavy Artillery regiment during the Civil
War and to be considered to have been in effect during
the time during which she faithfully performed the services
of a chaplain to that regiment and for which Congress by
law (Private Resolution 31 of the 40th Congress, approved
March 3, 1869) previously provided for her to be paid the
full pay and emoluments of a chaplain in the United
States Army as if she had been regularly commissioned
and mustered into service.
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SEC. 587. NATIONAL GUARD CHALLENGE PROGRAM.
(a) TERMINATION OF LIMITATION ON FEDERAL EX-
PENDITURES.—Subsection (b)(2)(A) of section 509 of title
32, United States Code, is amended by striking ‘‘in a fis-
cal year’’ and inserting ‘‘in fiscal year 2001 or 2002’’.
(b) MATCHING FUNDS REQUIREMENTS.—Subsection
(d) of such section is amended by striking paragraphs (1)
through (4) and inserting the following new paragraphs:
‘‘(1) for fiscal years 2001 and 2002, 60 percent
of the costs of operating the State program during
that fiscal year; and
‘‘(2) for fiscal year 2003 and each subsequent
fiscal year, 75 percent of the costs of operating the
State program during that fiscal year.’’.
(c) 
REPEAL
OF
CONTINGENT
FUNDING
FOR
JROTC.—(1) Section 2033 of title 10, United States
Code, is repealed.
(2) The table of sections at the beginning of chapter
102 of such title is amended by striking the item relating
to section 2033.
(3) The amendments made by this subsection shall
take effect on October 1, 2002.
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SEC. 588. PAYMENT OF FEHBP PREMIUMS FOR CERTAIN
RESERVISTS CALLED TO ACTIVE DUTY IN
SUPPORT OF CONTINGENCY OPERATIONS.
(a) IN GENERAL.—Subsection (e) of section 8906 of
title 5, United States Code, is amended by adding at the
end the following new paragraph:
‘‘(3)(A) An employing agency may pay both the em-
ployee and Government contributions, and any additional
administrative expenses otherwise chargeable to the em-
ployee, with respect to health care coverage for an em-
ployee described in subparagraph (B) and the family of
such employee.
‘‘(B) An employee referred to in subparagraph (A)
is an employee who—
‘‘(i) is enrolled in a health benefits plan under
this chapter;
‘‘(ii) is a member of a reserve component of the
armed forces;
‘‘(iii) is called or ordered to active duty in sup-
port of a contingency operation (as defined in sec-
tion 101(a)(13) of title 10);
‘‘(iv) is placed on leave without pay or sepa-
rated from service to perform active duty; and
‘‘(v) serves on active duty for a period of more
than 30 consecutive days.
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‘‘(C) Notwithstanding the one-year limitation on cov-
erage described in paragraph (1)(A), payment may be
made under this paragraph for a period not to exceed 18
months.’’.
(b) CONFORMING AMENDMENT.—The matter pre-
ceding paragraph (1) in subsection (f) of such section is
amended to read as follows:
‘‘(f) The Government contribution, and any addi-
tional payments under subsection (e)(3)(A), for health
benefits for an employee shall be paid—’’.
(c) APPLICABILITY.—The amendments made by this
section apply with respect to employees called to active
duty on or after December 8, 1995, and an agency may
make retroactive payments to such employees for pre-
miums paid on or after such date.
SEC. 589. 18-MONTH ENLISTMENT PILOT PROGRAM.
(a) IN GENERAL.—(1) Chapter 333 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 3264. 18-month enlistment pilot program
‘‘(a) During the pilot program period, the Secretary
of the Army shall carry out a pilot program with the objec-
tive of increasing participation of prior service persons in
the Selected Reserve and providing assistance in building
the pool of participants in the Individual Ready Reserve.
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‘‘(b) Under the program, the Secretary may, notwith-
standing section 505(c) of this title, accept persons for
original enlistment in the Army for a term of enlistment
consisting of 18 months service on active duty, to be fol-
lowed by three years of service in the Selected Reserve
and then service in the Individual Ready Reserve to com-
plete the military service obligation.
‘‘(c) No more than 10,000 persons may be accepted
for enlistment in the Army through the program under
this section.
‘‘(d) A person enlisting in the Army through the pro-
gram under this section is eligible for an enlistment bonus
under section 309 of title 37, notwithstanding the enlist-
ment time period specified in subsection (a) of that sec-
tion.
‘‘(e) For purposes of the program under this section,
the pilot program period is the period beginning on Octo-
ber 1, 2003, and ending on December 31, 2007.
‘‘(f) Not later than December 31, 2007, and Decem-
ber 31, 2012, the Secretary of the Army shall submit to
the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Represent-
atives a report on the program under this section. In each
such report, the Secretary shall set forth the views of the
Secretary on the success of the program in meeting the
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objectives stated in subsection (a) and whether the pro-
gram should be continued and, if so, whether it should
be modified or expanded.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘3264. 18-month enlistment pilot program.’’.
(b) IMPLEMENTATION REPORT.—The Secretary of
the Army shall submit to the Committee on Armed Serv-
ices of the Senate and the Committee on Armed Services
of the House of Representatives a report on the Sec-
retary’s plan for implementation of section 3264 of title
10, United States Code, as added by subsection (a). Such
report shall be submitted not later than March 1, 2002.
SEC. 590. PER DIEM ALLOWANCE FOR LENGTHY OR NU-
MEROUS DEPLOYMENTS.
(a) FUNDING SOURCE FOR ALLOWANCE.—Section
436(a) of title 37, United States Code, is amended by add-
ing at the end the following new sentence: ‘‘The Secretary
shall pay the allowance from appropriations available for
operation and maintenance for the armed force in which
the member serves.’’.
(b) EXPANDED REPORT REGARDING MANAGEMENT
OF
INDIVIDUAL
MEMBER
DEPLOYMENTS.—Section
574(d) of the Floyd D. Spence National Defense Author-
ization Act for Fiscal Year 2001 (as enacted by Public
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Law 106–398; 114 Stat. 1654A–138) is amended in the
second sentence by striking paragraphs (1) and (2) and
inserting the following new paragraphs:
‘‘(1) a discussion of the experience in tracking
and recording the deployments of members of the
Armed Forces and the payment of the per diem al-
lowance for lengthy or numerous deployments in ac-
cordance with section 436 of title 37, United States
Code;
‘‘(2) specific comments regarding the effect of
section 991 of title 10, United States Code, and sec-
tion 436 of title 37, United States Code, on the
readiness of the Navy and Marine Corps given the
deployment intensive mission of these services; and
‘‘(3) any recommendations for revision of sec-
tion 991 of title 10, United States Code, or section
436 of title 37, United States Code, that the Sec-
retary considers appropriate.’’.
SEC. 591. CONGRESSIONAL REVIEW PERIOD FOR CHANGE
IN GROUND COMBAT EXCLUSION POLICY.
Section 542(b) of the National Defense Authorization
Act for Fiscal Year 1994 (Public Law 103–160; 10 U.S.C.
113 note) is amended—
(1) in paragraph (1)—
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(A) by striking ‘‘not less than 90 days’’;
and
(B) by adding at the end the following new
sentence: ‘‘Such a change may then be imple-
mented only after the end of a period of 60
days of continuous session of Congress (exclud-
ing any day on which either House of Congress
is not in session) following the date on which
the report is received.’’; and
(2) by adding at the end the following new
paragraph:
‘‘(5) For purposes of this subsection, the continuity
of a session of Congress is broken only by an adjournment
of the Congress sine die.’’.
SEC. 592. REPORT ON HEALTH AND DISABILITY BENEFITS
FOR PRE-ACCESSION TRAINING AND EDU-
CATION PROGRAMS.
(a) STUDY.—The Secretary of Defense shall conduct
a review of the health and disability benefit programs
available to recruits and officer candidates engaged in
training, education, or other types of programs while not
yet on active duty and to cadets and midshipmen attend-
ing the service academies. The review shall be conducted
with the participation of the Secretaries of the military
departments.
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(b) REPORT.—Not later than March 1, 2002, the
Secretary shall submit to the Committee on Armed Serv-
ices of the Senate and the Committee on Armed Services
of the House of Representatives a report on the findings
of the review. The report shall include the following with
respect to persons described in subsection (a):
(1) A statement of the process and detailed pro-
cedures followed by each of the Armed Forces under
the jurisdiction of the Secretary of a military depart-
ment to provide health care and disability benefits to
all such persons injured in training, education, or
other types of programs conducted by the Secretary
of a military department.
(2) Information on the number of total cases of
such persons requiring health care and disability
benefits and the total number of cases and average
value of health care and disability benefits provided
under the authority for each source of benefits avail-
able to those persons.
(3) A discussion of the issues regarding health
and disability benefits for such persons that are en-
countered by the Secretary during the review, to in-
clude discussions with individuals who have received
those benefits.
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(4) A discussion of the necessity for legislative
changes and specific legislative proposals needed to
improve the benefits provided those persons.
SEC. 593. REQUIREMENT TO PROVIDE APPROPRIATE ARTI-
CLES OF CLOTHING AS A CIVILIAN UNIFORM
FOR CIVILIANS PARTICIPATING IN FUNERAL
HONOR 
DETAILS 
FOR 
VETERANS 
UPON
SHOWING OF FINANCIAL NEED.
Section 1491(d) of title 10, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ before ‘‘To provide’’;
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively; and
(3) by adding at the end the following:
‘‘(2)(A) Upon a showing of financial need and subject
to subparagraph (B), the Secretary of a military depart-
ment shall provide articles of clothing described in sub-
paragraph (C) to an organization referred to in subsection
(b)(2) or to members of such an organization who partici-
pate in funeral honors details. Any such showing of finan-
cial need shall be made in such manner as the Secretary
may require.
‘‘(B) The Secretary concerned may provide articles
of clothing to an organization (or members of an organiza-
tion) under this paragraph only if the Secretary deter-
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mines that participation of that organization or its mem-
bers in the funeral honors mission is advantageous to the
performance of that mission and meets the performance
standards set by the Secretary for that mission.
‘‘(C) Articles of clothing covered by subparagraph (A)
are articles of clothing determined by the Secretary con-
cerned to be appropriate as a civilian uniform for persons
participating in a funeral honors detail who are not au-
thorized to wear the uniform of any of the armed forces.’’.
TITLE VI—COMPENSATION AND
OTHER PERSONNEL BENEFITS
Subtitle A—Pay and Allowances
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2002.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The
adjustment to become effective during fiscal year 2002 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, 2002, the rates of monthly basic pay for members of
the uniformed services within each pay grade are as fol-
lows:
COMMISSIONED OFFICERS 1
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–10 2
$0.00
$0.00
$0.00
$0.00
$0.00
O–9 ...
0.00
0.00
0.00
0.00
0.00
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COMMISSIONED OFFICERS 1—Continued
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–8 ...
7,180.20
7,415.40
7,571.10
7,614.90
7,809.30
O–7 ...
5,966.40
6,371.70
6,371.70
6,418.20
6,657.90
O–6 ...
4,422.00
4,857.90
5,176.80
5,176.80
5,196.60
O–5 ...
3,537.00
4,152.60
4,440.30
4,494.30
4,673.10
O–4 ...
3,023.70
3,681.90
3,927.60
3,982.50
4,210.50
O–3 3
2,796.60
3,170.40
3,421.80
3,698.70
3,875.70
O–2 3
2,416.20
2,751.90
3,169.50
3,276.30
3,344.10
O–1 3
2,097.60
2,183.10
2,638.50
2,638.50
2,638.50
Over 8
Over 10
Over 12
Over 14
Over 16
O–10 2
$0.00
$0.00
$0.00
$0.00
$0.00
O–9 ...
0.00
0.00
0.00
0.00
0.00
O–8 ...
8,135.10
8,210.70
8,519.70
8,608.50
8,874.30
O–7 ...
6,840.30
7,051.20
7,261.80
7,472.70
8,135.10
O–6 ...
5,418.90
5,448.60
5,448.60
5,628.60
6,305.70
O–5 ...
4,673.10
4,813.50
5,073.30
5,413.50
5,755.80
O–4 ...
4,395.90
4,696.20
4,930.20
5,092.50
5,255.70
O–3 3
4,070.10
4,232.40
4,441.20
4,549.50
4,549.50
O–2 3
3,344.10
3,344.10
3,344.10
3,344.10
3,344.10
O–1 3
2,638.50
2,638.50
2,638.50
2,638.50
2,638.50
Over 18
Over 20
Over 22
Over 24
Over 26
O–10 2
$0.00
11,601.90
11,659.20
11,901.30
12,324.00
O–9 ...
0.00
10,147.50
10,293.60
10,504.80
10,873.80
O–8 ...
9,259.50
9,614.70
9,852.00
9,852.00
9,852.00
O–7 ...
8,694.90
8,694.90
8,694.90
8,694.90
8,738.70
O–6 ...
6,627.00
6,948.30
7,131.00
7,316.10
7,675.20
O–5 ...
5,919.00
6,079.80
6,262.80
6,262.80
6,262.80
O–4 ...
5,310.60
5,310.60
5,310.60
5,310.60
5,310.60
O–3 3
4,549.50
4,549.50
4,549.50
4,549.50
4,549.50
O–2 3
3,344.10
3,344.10
3,344.10
3,344.10
3,344.10
O–1 3
2,638.50
2,638.50
2,638.50
2,638.50
2,638.50
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for
commissioned officers in pay grades 0–7 through O–10 may not exceed the rate of pay for level III
of the Executive Schedule and the actual rate of basic pay for all other officers may not exceed the
rate of pay for level V of the Executive Schedule.
2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint
Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air
Force, Commandant of the Marine Corps, or Commandant of the Coast Guard, the rate of basic
pay for this grade is $13,598.10, regardless of cumulative years of service computed under section
205 of title 37, United States Code.
3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have
been credited with over 4 years of active duty service as an enlisted member or warrant officer.
COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE
AS AN ENLISTED MEMBER OR WARRANT OFFICER
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–3E
$0.00
$0.00
$0.00
3,698.70
3,875.70
O–2E
0.00
0.00
0.00
3,276.30
3,344.10
O–1E
0.00
0.00
0.00
2,638.50
2,818.20
Over 8
Over 10
Over 12
Over 14
Over 16
O–3E
4,070.10
4,232.40
4,441.20
4,617.00
4,717.50
O–2E
3,450.30
3,630.00
3,768.90
3,872.40
3,872.40
O–1E
2,922.30
3,028.50
3,133.20
3,276.30
3,276.30
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COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE
AS AN ENLISTED MEMBER OR WARRANT OFFICER
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
Over 18
Over 20
Over 22
Over 24
Over 26
O–3E
4,855.20
4,855.20
4,855.20
4,855.20
4,855.20
O–2E
3,872.40
3,872.40
3,872.40
3,872.40
3,872.40
O–1E
3,276.30
3,276.30
3,276.30
3,276.30
3,276.30
WARRANT OFFICERS 1
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
W–5 ..
$0.00
$0.00
$0.00
$0.00
$0.00
W–4 ..
2,889.60
3,108.60
3,198.00
3,285.90
3,437.10
W–3 ..
2,638.80
2,862.00
2,862.00
2,898.90
3,017.40
W–2 ..
2,321.40
2,454.00
2,569.80
2,654.10
2,726.40
W–1 ..
2,049.90
2,217.60
2,330.10
2,402.70
2,511.90
Over 8
Over 10
Over 12
Over 14
Over 16
W–5 ..
$0.00
$0.00
$0.00
$0.00
$0.00
W–4 ..
3,586.50
3,737.70
3,885.30
4,038.00
4,184.40
W–3 ..
3,152.40
3,330.90
3,439.50
3,558.30
3,693.90
W–2 ..
2,875.20
2,984.40
3,093.90
3,200.40
3,318.00
W–1 ..
2,624.70
2,737.80
2,850.00
2,963.70
3,077.10
Over 18
Over 20
Over 22
Over 24
Over 26
W–5 ..
$0.00
4,965.60
5,136.00
5,307.00
5,478.60
W–4 ..
4,334.40
4,480.80
4,632.60
4,782.00
4,935.30
W–3 ..
3,828.60
3,963.60
4,098.30
4,233.30
4,368.90
W–2 ..
3,438.90
3,559.80
3,680.10
3,801.30
3,801.30
W–1 ..
3,189.90
3,275.10
3,275.10
3,275.10
3,275.10
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for war-
rant officers may not exceed the rate of pay for level V of the Executive Schedule.
ENLISTED MEMBERS 1
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
E–9 2
$0.00
$0.00
$0.00
$0.00
$0.00
E–8 ...
0.00
0.00
0.00
0.00
0.00
E–7 ...
1,986.90
2,169.00
2,251.50
2,332.50
2,417.40
E–6 ...
1,701.00
1,870.80
1,953.60
2,033.70
2,117.40
E–5 ...
1,561.50
1,665.30
1,745.70
1,828.50
1,912.80
E–4 ...
1,443.60
1,517.70
1,599.60
1,680.30
1,752.30
E–3 ...
1,303.50
1,385.40
1,468.50
1,468.50
1,468.50
E–2 ...
1,239.30
1,239.30
1,239.30
1,239.30
1,239.30
E–1 ...
3 1,105.50
1,105.50
1,105.50
1,105.50
1,105.50
Over 8
Over 10
Over 12
Over 14
Over 16
E–9 2
$0.00
$3,423.90
3,501.30
3,599.40
3,714.60
E–8 ...
2,858.10
2,940.60
3,017.70
3,110.10
3,210.30
E–7 ...
2,562.90
2,645.10
2,726.40
2,808.00
2,892.60
E–6 ...
2,254.50
2,337.30
2,417.40
2,499.30
2,558.10
E–5 ...
2,030.10
2,110.20
2,193.30
2,193.30
2,193.30
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ENLISTED MEMBERS 1—Continued
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
E–4 ...
1,752.30
1,752.30
1,752.30
1,752.30
1,752.30
E–3 ...
1,468.50
1,468.50
1,468.50
1,468.50
1,468.50
E–2 ...
1,239.30
1,239.30
1,239.30
1,239.30
1,239.30
E–1 ...
1,105.50
1,105.50
1,105.50
1,105.50
1,105.50
Over 18
Over 20
Over 22
Over 24
Over 26
E–9 2
$3,830.40
3,944.10
4,098.30
4,251.30
4,467.00
E–8 ...
3,314.70
3,420.30
3,573.00
3,724.80
3,937.80
E–7 ...
2,975.10
3,057.30
3,200.40
3,292.80
3,526.80
E–6 ...
2,602.80
2,602.80
2,602.80
2,602.80
2,602.80
E–5 ...
2,193.30
2,193.30
2,193.30
2,193.30
2,193.30
E–4 ...
1,752.30
1,752.30
1,752.30
1,752.30
1,752.30
E–3 ...
1,468.50
1,468.50
1,468.50
1,468.50
1,468.50
E–2 ...
1,239.30
1,239.30
1,239.30
1,239.30
1,239.30
E–1 ...
1,105.50
1,105.50
1,105.50
1,105.50
1,105.50
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for en-
listed members may not exceed the rate of pay for level V of the Executive Schedule.
2 Subject to the preceding footnote, while serving as Sergeant Major of the Army, Master Chief
Petty Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine
Corps, or Master Chief Petty Officer of the Coast Guard, basic pay for this grade is $5,382.90, re-
gardless of cumulative years of service computed under section 205 of title 37, United States Code.
3 In the case of members in pay grade E–1 who have served less than 4 months on active duty,
the rate of basic pay is $1,022.70.
SEC. 602. BASIC PAY RATE FOR CERTAIN RESERVE COM-
MISSIONED OFFICERS WITH PRIOR SERVICE
AS AN ENLISTED MEMBER OR WARRANT OF-
FICER.
Section 203(d) of title 37, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’;
(2) by striking ‘‘who is credited’’ and all that
follows through ‘‘and enlisted member’’ and insert-
ing ‘‘is described in paragraph (2)’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2) Paragraph (1) applies with respect to a commis-
sioned officer in pay grade O–1, O–2, or O–3 who—
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‘‘(A) is credited with a total of over four years’
active service as warrant officer or as a warrant offi-
cer and enlisted member; or
‘‘(B) earned a total of more than 1,460 points
credited under section 12732(a)(2) of title 10 while
serving as a warrant officer or enlisted member.’’.
SEC. 603. SUBSISTENCE ALLOWANCES.
(a) BASIC ALLOWANCE FOR SUBSISTENCE.—Section
402 of title 37, United States Code, is amended—
(1) in subsection (b), by adding at the end the
following new paragraph:
‘‘(4) For purposes of implementing paragraph (2),
the monthly rate of basic allowance for subsistence that
was in effect for an enlisted member for calendar year
2001 shall be deemed to be $233.’’; and
(2) by striking subsection (d) and inserting the
following new subsection:
‘‘(d) SPECIAL RULE FOR ENLISTED MEMBERS WHO
MESS SEPARATELY.—The Secretary of Defense may pre-
scribe a basic allowance for subsistence for enlisted mem-
bers at a rate higher than the rate provided for in sub-
section (b) when messing facilities of the United States
are not available for the members.’’.
(b) TERMINATION OF BAS TRANSITIONAL AUTHOR-
ITY.—Effective as of October 1, 2001, section 603(c) of
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the Floyd D. Spence National Defense Authorization Act
for Fiscal Year 2001 (as enacted by Public Law 106–398;
114 Stat. 1654A–145) is amended by striking ‘‘October
1, 2001’’ and inserting ‘‘January 1, 2002’’.
(c) FAMILY SUBSISTENCE SUPPLEMENTAL ALLOW-
ANCE
FOR LOW-INCOME MEMBERS
OF
THE ARMED
FORCES.—Section 402a(b)(1) of title 37, United States
Code, is amended by inserting ‘‘with dependents’’ after ‘‘a
member of the armed forces’’.
SEC. 604. ELIGIBILITY FOR BASIC ALLOWANCE FOR HOUS-
ING WHILE BETWEEN PERMANENT DUTY STA-
TIONS.
(a) REPEAL OF PAY GRADE LIMITATION.—Section
403(i) of title 37, United States Code, is amended by
striking ‘‘who is in a pay grade E–4 (4 or more years
of service) or above’’.
(b) EFFECTIVE DATE; APPLICATION.—The amend-
ment made by this section shall take effect on January
1, 2003, and apply to members of the uniformed services
in a travel or leave status between permanent duty sta-
tions on or after that date.
SEC. 605. UNIFORM ALLOWANCE FOR OFFICERS.
(a) RELATION TO INITIAL UNIFORM ALLOWANCE.—
Section 416(b)(1) of title 37, United States Code, is
amended by striking ‘‘$200’’ and inserting ‘‘$400’’.
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(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect as of October 1, 2000.
SEC. 606. FAMILY SEPARATION ALLOWANCE FOR CERTAIN
MEMBERS ELECTING TO SERVE UNACCOM-
PANIED TOUR OF DUTY.
(a) AVAILABILITY OF ALLOWANCE.—Section 427(c)
of title 37, United States Code, is amended—
(1) by striking ‘‘A member’’ in the first sen-
tence and inserting ‘‘(1) Except as provided in para-
graph (2) or (3), a member’’;
(2) by redesignating the second sentence as
paragraph (3); and
(3) by inserting after the first sentence the fol-
lowing new paragraph:
‘‘(2) A member who elects to serve an unaccompanied
tour of duty because the movement of a dependent of the
member to the permanent station is denied for certified
medical reasons is entitled to an allowance under sub-
section (a)(1)(A).’’.
(b) EFFECTIVE DATE; APPLICATION.—The amend-
ments made by this section shall take effect on January
1, 2002. Paragraph (2) of section 427(c) of title 37,
United States Code, as added by subsection (a), shall
apply with respect to pay periods beginning on or after
that date for a member of the uniformed services covered
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by such paragraph regardless of the date on which the
member first made the election to serve an unaccompanied
tour of duty.
Subtitle B—Bonuses and Special
and Incentive Pays
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS 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, 2001’’ and inserting ‘‘December
31, 2002’’.
(b) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f ) of such title is amended by striking ‘‘De-
cember 31, 2001’’ and inserting ‘‘December 31, 2002’’.
(c) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking ‘‘Decem-
ber 31, 2001’’ and inserting ‘‘December 31, 2002’’.
(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, 2001’’ and inserting ‘‘December 31, 2002’’.
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(e) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of such title is amended by striking ‘‘Decem-
ber 31, 2001’’ and inserting ‘‘December 31, 2002’’.
(f ) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended
by striking ‘‘December 31, 2001’’ and inserting ‘‘Decem-
ber 31, 2002’’.
(g) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(f ) of such title is amended by striking ‘‘December
31, 2001’’ and inserting ‘‘December 31, 2002’’.
(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, 2002’’
and inserting ‘‘January 1, 2003’’.
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND
SPECIAL PAY AUTHORITIES FOR NURSE OFFI-
CER 
CANDIDATES, 
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, 2001’’ and
inserting ‘‘December 31, 2002’’.
(b) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
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amended by striking ‘‘December 31, 2001’’ and inserting
‘‘December 31, 2002’’.
(c) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of title 37, United States
Code, is amended by striking ‘‘December 31, 2001’’ and
inserting ‘‘December 31, 2002’’.
SEC. 613. ONE-YEAR EXTENSION OF OTHER BONUS AND
SPECIAL PAY AUTHORITIES.
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended
by striking ‘‘December 31, 2001’’ and inserting ‘‘Decem-
ber 31, 2002’’.
(b) REENLISTMENT
BONUS
FOR
ACTIVE
MEM-
BERS.—Section 308(g) of such title is amended by strik-
ing ‘‘December 31, 2001’’ and inserting ‘‘December 31,
2002’’.
(c) ENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 309(e) of such title is amended by striking ‘‘De-
cember 31, 2001’’ and inserting ‘‘December 31, 2002’’.
(d) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section
312(e) of such title is amended by striking ‘‘December 31,
2001’’ and inserting ‘‘December 31, 2002’’.
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(e) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of such title is amended by striking ‘‘December
31, 2001’’ and inserting ‘‘December 31, 2002’’.
(f) 
NUCLEAR
CAREER
ANNUAL
INCENTIVE
BONUS.—Section 312c(d) of such title is amended by
striking ‘‘December 31, 2001’’ and inserting ‘‘December
31, 2002’’.
(g) RETENTION BONUS FOR MEMBERS WITH CRIT-
ICAL MILITARY SKILLS.—Section 323(i) of such title is
amended by striking ‘‘December 31, 2001’’ and inserting
‘‘December 31, 2002’’.
SEC. 614. CONFORMING ACCESSION BONUS FOR DENTAL
OFFICERS AUTHORITY WITH AUTHORITIES
FOR OTHER SPECIAL PAY AND BONUSES.
Section 302h(a)(1) of title 37, United States Code,
is amended by striking ‘‘the date of the enactment of this
section, and ending on September 30, 2002’’ and inserting
‘‘September 23, 1996, and ending on December 31,
2002’’.
SEC. 615. ADDITIONAL TYPE OF DUTY RESULTING IN ELIGI-
BILITY FOR HAZARDOUS DUTY INCENTIVE
PAY.
(a) PERFORMANCE
OF
MARITIME
BOARD
AND
SEARCH OPERATIONS.—Section 301(a) of title 37, United
States Code, is amended—
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(1) in paragraph (10), by striking ‘‘or’’ at the
end;
(2) by redesignating paragraph (11) as para-
graph (12); and
(3) by inserting after paragraph (10) the fol-
lowing new paragraph:
‘‘(11) involving regular participation as a mem-
ber of a team conducting visit, board, search, and
seizure operations aboard vessels in support of mari-
time interdiction operations; or’’.
(b) MONTHLY AMOUNT.—Subsection (c) of such sec-
tion is amended—
(1) in paragraph (1), by striking ‘‘(10)’’ and in-
serting ‘‘(11)’’; and
(2) in paragraph (2)(A), by striking ‘‘(11)’’ and
inserting ‘‘(12)’’.
(c) EFFECTIVE DATE; APPLICATION.—The amend-
ments made by this section shall take effect on January
1, 2002, and apply to duty described in the amendment
made by subsection (a)(2) on or after that date.
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SEC. 
616. 
EQUAL 
TREATMENT 
OF 
RESERVISTS 
PER-
FORMING INACTIVE-DUTY TRAINING FOR RE-
CEIPT OF AVIATION CAREER INCENTIVE PAY.
(a) INCENTIVE PAY EQUITY FOR RESERVISTS.—Sub-
section (d) of section 301a of title 37, United States Code,
is amended to read as follows:
‘‘(d) 
MEMBERS
PERFORMING
INACTIVE-DUTY
TRAINING.—Under regulations prescribed by the Presi-
dent and to the extent provided for by appropriations, in
the case of a member of a reserve component of a uni-
formed service, or of the National Guard, who is entitled
to compensation under section 206 of this title, and who
performs, under orders, duty described in subsection (a),
the member is also entitled to monthly incentive pay under
subsection (b) for the performance of that duty in the
same manner as a member with corresponding years of
aviation service who is entitled to basic pay. Such member
is entitled to the incentive pay for as long as the member
remains qualified for it, as provided in subsection (a). This
subsection does not apply to a member who is entitled to
basic pay under section 204 of this title.’’.
(b) EFFECTIVE DATE; APPLICATION.—The amend-
ment made by this section shall take effect on January
1, 2002, and apply to duty described in the amendment
made by subsection (a)(2) on or after that date.
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SEC. 617. SECRETARIAL DISCRETION IN PRESCRIBING SUB-
MARINE DUTY INCENTIVE PAY RATES.
(a) AUTHORITY OF SECRETARY OF THE NAVY; MAX-
IMUM RATE.—Section 301c of title 37, United States
Code, is amended by striking subsection (b) and inserting
the following new subsection:
‘‘(b) MONTHLY RATES.—(1) Subject to paragraph
(2), a member who meets the requirements prescribed in
subsection (a) is entitled to monthly submarine duty in-
centive pay in an amount prescribed by the Secretary of
the Navy.
‘‘(2) The monthly amount of submarine duty incen-
tive pay may not exceed $1,000.’’.
(b) CONFORMING AMENDMENTS.—Such section is
further amended—
(1) in subsection (a), by striking ‘‘set forth in’’
each place it appears and inserting ‘‘prescribed pur-
suant to’’; and
(2) in subsection (d), by striking ‘‘authorized
by’’ and inserting ‘‘prescribed pursuant to’’.
(c) EFFECTIVE DATE; TRANSITION.—The amend-
ments made by this section shall take effect on January
1, 2002. The tables set forth in subsection (b) of section
301c of title 37, United States Code, as in effect on De-
cember 31, 2001, shall continue to apply until the Sec-
retary of the Navy prescribes new submarine duty incen-
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tive pay rates as authorized by the amendment made by
subsection (a).
SEC. 618. IMPOSITION OF CRITICAL WARTIME SKILL RE-
QUIREMENT 
FOR 
ELIGIBILITY 
FOR 
INDI-
VIDUAL READY RESERVE BONUS.
Section 308h(a)(1) of title 37, United States Code,
is amended—
(1) by striking ‘‘and who’’ and inserting ‘‘, who
is qualified in a skill or speciality designated by the
Secretary concerned as critically short to meet war-
time requirements, and who’’; and
(2) by striking ‘‘a combat or combat support
skill of’’.
SEC. 619. INSTALLMENT PAYMENT AUTHORITY FOR 15-
YEAR CAREER STATUS BONUS.
(a) MEMBER ELECTION.—Section 322(d) of title 37,
United States Code, is amended—
(1) in paragraph (1), by striking ‘‘paid in a sin-
gle lump sum of’’ and inserting ‘‘equal to’’;
(2) by redesignating paragraph (2) as para-
graph (4), and in such paragraph, by striking ‘‘The
bonus’’ and inserting ‘‘The lump sum payment of
the bonus, and the first installment payment in the
case of members who elect to receive the bonus in
installments,’’; and
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(3) by inserting after paragraph (1) the fol-
lowing new paragraphs:
‘‘(2) A member electing to receive the bonus under
this section shall elect one of the following payment op-
tions:
‘‘(A) A single lump sum of $30,000.
‘‘(B) Two installments of $15,000 each.
‘‘(C) Three installments of $10,000 each.
‘‘(D) Four installments of $7,500 each.
‘‘(E) Five installments of $6,000 each.
‘‘(3) If a member elects installment payments under
paragraph (2), the second installment (and subsequent in-
stallments, as applicable) shall be paid on the earlier of
the following dates:
‘‘(A) The annual anniversary date of the pay-
ment of the first installment.
‘‘(B) January 15 of each succeeding calendar
year.’’.
(c) EFFECTIVE DATE; APPLICATION.—The amend-
ments made by this section shall take effect on the date
of the enactment of this Act. The Secretary concerned (as
defined in section 101(5) of title 37, United States Code)
shall extend to each member of the uniformed services who
has executed the written agreement required by subsection
(a)(2) of section 322 of such title before that date, but
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who has not received the lump sum payment by that date,
an opportunity to make the election authorized by sub-
section (d) of such section, as amended by subsection (a)
of this section.
SEC. 620. ACCESSION BONUS FOR NEW OFFICERS.
(a) BONUS AUTHORIZED.—Chapter 5 of title 37,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 324. Special pay: accession bonus for new officers
‘‘(a) ACCESSION BONUS AUTHORIZED.—Under regu-
lations prescribed by the Secretary concerned, a person
who executes a written agreement to accept a commission
as an officer of the armed forces and serve on active duty
for the period specified in the agreement may, upon ac-
ceptance of the agreement by the Secretary concerned, be
paid an accession bonus in an amount determined by the
Secretary concerned.
‘‘(b) LIMITATION
ON AMOUNT
OF BONUS.—The
amount of an accession bonus under subsection (a) may
not exceed $100,000.
‘‘(c) PAYMENT METHOD.—Upon acceptance of a
written agreement under subsection (a) by the Secretary
concerned, the total amount of the accession bonus pay-
able under the agreement becomes fixed. The agreement
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shall specify whether the accession bonus will be paid by
the Secretary in a lump sum or installments.
‘‘(d) RELATION TO OTHER ACCESSION BONUS AU-
THORITY.—An individual may not receive a accession
bonus under this section and section 302d, 302h, 302j,
or 312b of this title for the same period of service.
‘‘(e) REPAYMENT.—(1) If an individual who has en-
tered into an agreement under subsection (a) and has re-
ceived all or part of the accession bonus under the agree-
ment fails to accept a commission as an officer or to com-
mence or complete the total period of active duty service
specified in the agreement, the Secretary concerned may
require the individual to repay the United States, on a
pro rata basis and to the extent that the Secretary deter-
mines conditions and circumstances warrant, any or all
of the amount paid to the individual under the agreement.
‘‘(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 five years after the termination of a
written agreement entered into under subsection (a) does
not discharge the individual signing the agreement from
a debt arising under such agreement or under paragraph
(1).’’.
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(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘324. Special pay: accession bonus for new officers.’’.
Subtitle C—Travel and
Transportation Allowances
SEC. 631. MINIMUM PER DIEM RATE FOR TRAVEL AND
TRANSPORTATION ALLOWANCE FOR TRAVEL
PERFORMED UPON A CHANGE OF PERMA-
NENT STATION AND CERTAIN OTHER TRAV-
EL.
(a) ESTABLISHMENT OF RATE.—Section 404(d) of
title 37, United States Code, is amended by adding at the
end the following new paragraph:
‘‘(5) The per diem rates established under paragraph
(2)(A) for travel performed in connection with a change
of permanent station or for travel described in paragraph
(2) or (3) of subsection (a) shall be equal to the standard
per diem rates established in the Federal travel regulation
for travel within the continental United States of civilian
employees and their dependents, unless the Secretaries
concerned determines that a higher rate for members is
more appropriate.’’.
(b) EFFECTIVE DATE; APPLICATION.—The amend-
ment made by this section shall take effect on January
1, 2003, and apply to travel covered by such amendment
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that is performed on or after that date by members of
the uniformed services and their dependents.
SEC. 632. PAYMENT OR REIMBURSEMENT OF TEMPORARY
SUBSISTENCE EXPENSES.
(a) INCLUSION OF OFFICERS.—Subsection (a)(2)(C)
of section 404a of title 37, United States Code, is amend-
ed by striking ‘‘an enlisted member’’ and inserting ‘‘a
member’’.
(b) INCREASE
IN MAXIMUM DAILY AUTHORIZED
RATE.—Subsection (e) of such section is amended by
striking ‘‘$110’’ and inserting ‘‘$180’’.
(c) EFFECTIVE DATE; APPLICATION.—The amend-
ments made by this section shall take effect on January
1, 2002, and apply with respect to an order in connection
with a change of permanent station issued on or after that
date.
SEC. 633. INCREASED WEIGHT ALLOWANCE FOR TRANS-
PORTATION OF BAGGAGE AND HOUSEHOLD
EFFECTS FOR JUNIOR ENLISTED MEMBERS.
(a) INCREASED WEIGHT ALLOWANCES.—The table
in section 406(b)(1)(C) of title 37, United States Code,
is amended—
(1) by striking the two footnotes; and
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(2) by striking the items relating to pay grade
E–1 through E–4 and inserting the following new
items:
‘‘E–4 ...............................................................................................................
7,000
8,000
‘‘E–3 ...............................................................................................................
5,000
8,000
‘‘E–2 ...............................................................................................................
5,000
8,000
‘‘E–1 ...............................................................................................................
5,000
8,000’’.
(b) EFFECTIVE DATE; APPLICATION.—The amend-
ments made by this section shall take effect on January
1, 2003, and apply with respect to an order in connection
with a change of temporary or permanent station issued
on or after that date.
SEC. 634. REIMBURSEMENT OF MEMBERS FOR MANDATORY
PET QUARANTINE FEES FOR HOUSEHOLD
PETS.
Section 406(a)(1) of title 37, United States Code, is
amended in the last sentence by striking ‘‘$275’’ and in-
serting ‘‘$675’’.
SEC. 635. AVAILABILITY OF DISLOCATION ALLOWANCE FOR
MARRIED MEMBER, WHOSE SPOUSE IS A
MEMBER, ASSIGNED TO MILITARY FAMILY
HOUSING.
(a) ALLOWANCE AVAILABLE.—Section 407(a)(2) of
title 37, United States Code, is amended by adding at the
end the following new subparagraph:
‘‘(F) A member married to another member,
both of whom are without other dependents, who ac-
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tually moves to a new permanent duty station where
the member is assigned to family housing provided
by the United States, except that only one disloca-
tion allowance may be paid to the married couple
with respect to the move.’’.
(b) EFFECTIVE DATE; APPLICATION.—The amend-
ments made by this section shall take effect on January
1, 2003, and apply with respect to an order to move for
a member of a uniformed service issued on or after that
date.
SEC. 636. ELIMINATION OF PROHIBITION ON RECEIPT OF
DISLOCATION ALLOWANCE BY MEMBERS OR-
DERED TO FIRST DUTY STATION.
(a) ALLOWANCE AVAILABLE.—Section 407(e) of title
37, United States Code, is amended—
(1) by striking ‘‘FIRST OR LAST DUTY’’ and in-
serting ‘‘EFFECT
OF ORDER FROM LAST DUTY
STATION’’; and
(2) by striking ‘‘from the member’s home to the
member’s first duty station or’’.
(b) EFFECTIVE DATE; APPLICATION.—The amend-
ments made by this section shall take effect on January
1, 2003, and apply with respect to an order to move for
a member of a uniformed service issued on or after that
date.
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SEC. 637. PARTIAL DISLOCATION ALLOWANCE AUTHOR-
IZED FOR HOUSING MOVES ORDERED FOR
GOVERNMENT CONVENIENCE.
(a) AUTHORIZATION OF PARTIAL DISLOCATION AL-
LOWANCE.—Section 407 of title 37, United States Code
is amended—
(1) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively; and
(2) by inserting after subsection (e) the fol-
lowing new subsection:
‘‘(f) 
PARTIAL
DISLOCATION
ALLOWANCE.—(1)
Under regulations prescribed by the Secretary concerned,
a member ordered to occupy or vacate family housing pro-
vided by the United States to permit the privatization or
renovation of housing or for any other reason (other than
pursuant to a permanent change of station) may be paid
a partial dislocation allowance of $500.
‘‘(2) Effective on the same date that the monthly
rates of basic pay for all members are increased under
section 1009 of this title or another provision of law, the
Secretary of Defense shall adjust the rate of the partial
dislocation allowance authorized by this subsection by the
percentage equal to the average percentage increase in the
rates of basic pay.
‘‘(3) Subsections (c) and (d) do not apply to the par-
tial dislocation allowance authorized by this subsection.’’.
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(b) EFFECTIVE DATE; APPLICATION.—The amend-
ments made by this section shall take effect on January
1, 2002, and apply with respect to an order to move for
a member of a uniformed service issued on or after that
date.
SEC. 638. ALLOWANCES FOR TRAVEL PERFORMED IN CON-
NECTION WITH MEMBERS TAKING AUTHOR-
IZED LEAVE BETWEEN CONSECUTIVE OVER-
SEAS TOURS.
Section 411b(a)(1) of title 37, United States Code,
is amended by striking ‘‘, or his designee, or to a place
no farther distant than his home of record’’.
SEC. 639. FUNDED STUDENT TRAVEL AS PART OF SCHOOL-
SPONSORED EXCHANGE PROGRAMS.
(a) RECOGNITION OF TEMPORARY EXCHANGE PRO-
GRAMS.—Section 430 of title 37, United States Code, is
amended—
(1) in subsection (a)(3), by inserting before the
comma at the end the following: ‘‘or is attending a
school outside the continental United States, if the
dependent is attending the school outside the conti-
nental United States for less than one year under a
program approved by the school in the continental
United States at which the dependent is enrolled’’;
and
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(2) in subsection (b)(1), by striking ‘‘in the
continental United States for the purpose of obtain-
ing a formal education’’ in the first sentence and in-
serting ‘‘described in subsection (a)(3)’’.
(b) LIMITATION ON AMOUNT OF ALLOWANCE.—Sub-
section (b) of such section is amended by adding at the
end the following new paragraph:
‘‘(3) The transportation allowance under paragraph
(1) for a dependent child who is attending a school outside
the continental United States for less than one year under
a program approved by the school in the continental
United States at which the dependent is enrolled shall not
exceed the allowance the member would be paid for a trip
between the school in the continental United States and
the member’s duty station outside the continental United
States and return.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 2002.
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Subtitle D—Retirement and
Survivor Benefit Matters
SEC. 641. CONTINGENT AUTHORITY FOR CONCURRENT RE-
CEIPT OF MILITARY RETIRED PAY AND VET-
ERANS’ DISABILITY COMPENSATION.
(a) RESTORATION OF RETIRED PAY BENEFITS.—
Chapter 71 of title 10, United States Code, is amended
by adding at the end the following new section:
‘‘§ 1414. Members eligible for retired pay who have
service-connected disabilities: payment of
retired pay and veterans’ disability com-
pensation; contingent authority
‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM-
PENSATION.—Subject to subsection (b), a member or
former member of the uniformed services who is entitled
to retired pay (other than as specified in subsection (c))
and who is also entitled to veterans’ disability compensa-
tion is entitled to be paid both without regard to sections
5304 and 5305 of title 38, subject to the enactment of
qualifying offsetting legislation as specified in subsection
(f).
‘‘(b) SPECIAL RULE FOR CHAPTER 61 CAREER RE-
TIREES.—The retired pay of a member retired under
chapter 61 of this title with 20 years or more of service
otherwise creditable under section 1405 of this title at the
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time of the member’s retirement is subject to reduction
under sections 5304 and 5305 of title 38, but only to the
extent that the amount of the member’s retired pay under
chapter 61 of this title exceeds the amount of retired pay
to which the member would have been entitled under any
other provision of law based upon the member’s service
in the uniformed services if the member had not been re-
tired under chapter 61 of this title.
‘‘(c) EXCEPTION.—Subsection (a) does not apply to
a member retired under chapter 61 of this title with less
than 20 years of service otherwise creditable under section
1405 of this title at the time of the member’s retirement.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) The term ‘retired pay’ includes retainer
pay, emergency officers’ retirement pay, and naval
pension.
‘‘(2) The term ‘veterans’ disability compensa-
tion’ has the meaning given the term ‘compensation’
in section 101(12) of title 38.
‘‘(e) EFFECTIVE DATE.—If qualifying offsetting leg-
islation (as defined in subsection (f)) is enacted, the provi-
sions of subsection (a) shall take effect on—
‘‘(1) the first day of the first month beginning
after the date of the enactment of such qualifying
offsetting legislation; or
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‘‘(2) the first day of the fiscal year that begins
in the calendar year in which such legislation is en-
acted, if that date is later than the date specified in
paragraph (1).
‘‘(f) EFFECTIVENESS CONTINGENT ON ENACTMENT
OF OFFSETTING LEGISLATION.—(1) The provisions of
subsection (a) shall be effective only if—
‘‘(A) the President, in the budget for any fiscal
year, proposes the enactment of legislation that, if
enacted, would be qualifying offsetting legislation;
and
‘‘(B) after that budget is submitted to Con-
gress, there is enacted qualifying offsetting legisla-
tion.
‘‘(2) For purposes of this subsection:
‘‘(A) The term ‘qualifying offsetting legislation’
means legislation (other than an appropriations Act)
that includes provisions that—
‘‘(i) offset fully the increased outlays to be
made by reason of the provisions of subsection
(a) for each of the first 10 fiscal years begin-
ning after the date of the enactment of such
legislation;
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‘‘(ii) expressly state that they are enacted
for the purpose of the offset described in clause
(i); and
‘‘(iii) are included in full on the PayGo
scorecard.
‘‘(B) The term ‘PayGo scorecard’ means the es-
timates that are made by the Director of the Con-
gressional Budget Office and the Director of the Of-
fice of Management and Budget under section
252(d) of the Balanced Budget and Emergency Def-
icit Control Act of 1985 (2 U.S.C. 902(d)) with re-
spect to the ten fiscal years following the date of the
enactment of the legislation that is qualifying offset-
ting legislation for purposes of this section.’’.
(b) CONFORMING TERMINATION OF SPECIAL COM-
PENSATION PROGRAM.—Section 1413(a) of such title is
amended by adding at the end the following new sentence:
‘‘If the provisions of subsection (a) of section 1414 of this
title become effective in accordance with subsection (f) of
that section, payments under this section shall be termi-
nated effective as of the month beginning on the effective
date specified in subsection (e) of that section.’’.
(c) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
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‘‘1414. Members eligible for retired pay who have service-connected disabilities:
payment of retired pay and veterans’ disability compensation;
contingent authority.’’.
(d) PROHIBITION OF RETROACTIVE BENEFITS.—If
the provisions of subsection (a) of section 1414 of title
10, United States Code, becomes effective in accordance
with subsection (f) of that section, no benefit may be paid
to any person by reason of those provisions for any period
before the effective date specified in subsection (e) of that
section.
Subtitle E—Other Matters
SEC. 651. FUNERAL HONORS DUTY ALLOWANCE FOR RE-
TIRED MEMBERS.
(a) ALLOWANCE AUTHORIZED.—Subsection (a) of
section 435 of title 37, United States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary’’;
and
(2) by adding at the end the following new
paragraph:
‘‘(2) The Secretary concerned may also authorize
payment of an allowance under this section to a retired
member of the armed forces who performs at least two
hours of duty preparing for or performing honors at the
funeral of a veteran.’’.
(b) RELATION
TO OTHER COMPENSATION.—Such
section is further amended by adding at the end the fol-
lowing new subsection:
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‘‘(c) CONCURRENT PAYMENT.—Notwithstanding any
other provision of law, the allowance paid to a retired
member of the armed forces under this section shall be
in addition to any other compensation to which the retired
member may be entitled under this title or titles 10 or
38.’’.
TITLE VII—HEALTH CARE
PROVISIONS
Subtitle A—TRICARE Program
SEC. 
701. 
IMPLEMENTING 
COST-EFFECTIVE 
PAYMENT
RATES UNDER THE TRICARE PROGRAM.
Not later than January 1, 2002, the Secretary of De-
fense shall, with respect to categories of health care pro-
viders or services for which the Secretary has not already
done so and to the extent that the Secretary determines
is practicable—
(1) implement the payment rates used under
medicare, or similar rates based on medicare pay-
ment methods, to pay for health care services pro-
vided by institutional and noninstitutional providers
under the TRICARE program; and
(2) as a condition of participation in the
TRICARE program, prohibit balance billing of cov-
ered beneficiaries by institutional providers and limit
balance billing by noninstitutional providers (subject
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to any exceptions the Secretary determines appro-
priate) consistent with the limiting charge percent-
age under medicare.
SEC. 702. WAIVER OF NONAVAILABILITY STATEMENT OR
PREAUTHORIZATION REQUIREMENT.
(a) IN GENERAL.—Section 721 of the Floyd D.
Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted in Public Law 106–398; 114 Stat.
1654A–184) is amended—
(1) in the matter preceding paragraph (1) in
subsection (a), by striking ‘‘new’’;
(2) by striking subsection (c) and inserting the
following:
‘‘(c) EXCEPTIONS.—(1) Subject to paragraph (2), the
Secretary may provide that subsection (a) shall not apply
for a period of up to one year if—
‘‘(A) the Secretary—
‘‘(i) demonstrates significant costs would
be avoided by performing specific procedures at
the affected military medical treatment facility
or facilities;
‘‘(ii) determines that a specific procedure
must be provided at the affected military med-
ical treatment facility or facilities to ensure the
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proficiency levels of the practitioners at the fa-
cility or facilities; or
‘‘(iii) determines that the lack of nonavail-
ability statement data would significantly inter-
fere with TRICARE contract administration;
‘‘(B) the Secretary provides notification of the
Secretary’s intent to make an exception under this
subsection to covered beneficiaries who receive care
at the military medical treatment facility or facilities
that will be affected by the decision to make an ex-
ception under this subsection;
‘‘(C) the Secretary provides notification to the
Committees on Armed Services of the House of Rep-
resentatives and the Senate of the Secretary’s intent
to make an exception under this subsection, the rea-
son for making an exception, and the date that a
nonavailability statement will be required; and
‘‘(D) 60 days have elapsed since the date of the
notification described in subparagraph (C).
‘‘(2)(A) Except as provided in subparagraph (B), the
Secretary may make an exception under this subsection
with respect to—
‘‘(i) one or more services performed at a mili-
tary medical treatment facility or facilities; or
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‘‘(ii) one or more services performed in a
TRICARE region.
‘‘(B) With respect to maternity care, the Secretary
may make an exception under this subsection with respect
to a military medical treatment facility.
‘‘(3) In the case of health care provided in conjunc-
tion with a graduate medical education program, the pe-
riod of nonapplicability described in paragraph (1) shall
be, instead of one year, the period for which a residency
review committee has approved the program.’’; and
(3) in subsection (d), by striking ‘‘October 1,
2001’’ and inserting ‘‘two years after the date of the
enactment of the National Defense Authorization
Act for Fiscal Year 2002’’.
(b) REPORT.—Not later than March 1, 2002, the
Secretary of Defense shall submit to the Committees on
Armed Services of the House of Representatives and the
Senate a report on the Secretary’s plans for implementing
such section.
SEC. 703. IMPROVEMENTS IN ADMINISTRATION OF THE
TRICARE PROGRAM.
(a) EXPANSION OF TRICARE PROGRAM.—Section
1072(7) of title 10, United States Code, is amended by
striking ‘‘the competitive selection of contractors to finan-
cially underwrite’’.
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(b) REDUCTION OF CONTRACT START-UP TIME.—
Section 1095c(b) of such title is amended—
(1) in paragraph (1)—
(A) by striking ‘‘The’’ and inserting ‘‘Ex-
cept as provided in paragraph (3), the’’; and
(B) by striking ‘‘contract.’’ and all that
follows through ‘‘as soon as practicable after
the award of the’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3) The Secretary may reduce the nine-month start-
up period required under paragraph (1) if—
‘‘(A) the Secretary—
‘‘(i) determines that a shorter period is
sufficient to ensure effective implementation of
all contract requirements; and
‘‘(ii) submits notification to the Commit-
tees on Armed Services of the House of Rep-
resentatives and the Senate of the Secretary’s
intent to reduce the nine-month start-up period;
and
‘‘(B) 60 days have elapsed since the date of
such notification.’’.
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SEC. 704. SUB-ACUTE AND LONG-TERM CARE PROGRAM RE-
FORM.
(a) IN GENERAL.—(1) Chapter 55 of title 10, United
States Code, is amended by inserting after section 1074i
the following new section:
‘‘§ 1074j. Sub-acute care program
‘‘(a) ESTABLISHMENT.—The Secretary of Defense
shall establish an effective, efficient, and integrated sub-
acute care benefits program under this chapter (herein-
after referred to in this section as the ‘program’). Except
as otherwise provided in this section, the types of health
care authorized under the program shall be the same as
those provided under section 1079 of this title. The Sec-
retary, after consultation with the other administering
Secretaries, shall promulgate regulations to carry out this
section.
‘‘(b) BENEFITS.—(1) The program shall include a
uniform skilled nursing facility benefit that shall be pro-
vided in the manner and under the conditions described
in section 1861(h) and (i) of the Social Security Act (42
U.S.C. 1395x(h) and (i)), except that the limitation on
the number of days of coverage under section 1812(a) and
(b) of such Act (42 U.S.C. 1395d(a) and (b)) shall not
be applicable under the program. Skilled nursing facility
care for each spell of illness shall continue to be provided
for as long as medically necessary and appropriate.
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‘‘(2) In this subsection:
‘‘(A) The term ‘skilled nursing facility’ has the
meaning given such term in section 1819(a) of the
Social Security Act (42 U.S.C. 1395i–3(a)).
‘‘(B) The term ‘spell of illness’ has the meaning
given such term in section 1861(a) of such Act (42
U.S.C. 1395x(a)).
‘‘(3) The program shall include a comprehensive,
intermittent home health care benefit that shall be pro-
vided in the manner and under the conditions described
in section 1861(m) of the Social Security Act (42 U.S.C.
1395x(m)).’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1074i the following new item:
‘‘1074j. Sub-acute care program.’’.
(b) EXTENDED BENEFITS FOR CERTAIN DEPEND-
ENTS.—Section 1079 of such title is amended by striking
subsections (d), (e), and (f) and inserting the following
new subsections:
‘‘(d)(1) The Secretary of Defense shall establish a
program to provide extended benefits for eligible depend-
ents, which may include the provision of comprehensive
health care services, including case management services,
to assist in the reduction of the disabling effects of a quali-
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fying condition of an eligible dependent. Registration shall
be required to receive the extended benefits.
‘‘(2) The Secretary of Defense, after consultation
with the other administering Secretaries, shall promulgate
regulations to carry out this subsection.
‘‘(3) In this subsection:
‘‘(A) The term ‘eligible dependent’ means a de-
pendent of a member of the uniformed services on
active duty for a period of more than 30 days, as
described in subparagraph (A), (D), or (I) of section
1072(2) of this title, who has a qualifying condition.
‘‘(B) The term ‘qualifying condition’ means the
condition of a dependent who is moderately or se-
verely mentally retarded, has a serious physical dis-
ability, or has an extraordinary physical or psycho-
logical condition.
‘‘(e) Extended benefits for eligible dependents under
subsection (d) may include comprehensive health care
services with respect to the qualifying condition of such
a dependent, and include, to the extent such benefits are
not provided under provisions of this chapter other than
under this section, the following:
‘‘(1) Diagnosis.
‘‘(2) Inpatient, outpatient, and comprehensive
home health care supplies and services.
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‘‘(3) Training, rehabilitation, and special edu-
cation.
‘‘(4) Institutional care in private nonprofit,
public, and State institutions and facilities and, if
appropriate, transportation to and from such institu-
tions and facilities.
‘‘(5) Custodial care, notwithstanding the prohi-
bition in section 1077(b)(1) of this title.
‘‘(6) Respite care for the primary caregiver of
the eligible dependent.
‘‘(7) Such other services and supplies as deter-
mined appropriate by the Secretary, notwithstanding
the limitations in subsection (a)(13).
‘‘(f) Members shall be required to share in the cost
of any benefits provided to their dependents under sub-
section (d) as follows:
‘‘(1) Members in the lowest enlisted pay grade
shall be required to pay the first $25 incurred each
month, and members in the highest commissioned
pay grade shall be required to pay the first $250 in-
curred each month. The amounts to be paid by
members in all other pay grades shall be determined
under regulations to be prescribed by the Secretary
of Defense in consultation with the administering
Secretaries.
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‘‘(2) A member who has more than one depend-
ent incurring expenses in a given month under a
plan covered by subsection (d) shall not be required
to pay an amount greater than would be required if
the member had only one such dependent.’’.
(c) DEFINITIONS OF CUSTODIAL CARE AND DOMI-
CILIARY CARE.—Section 1072 of title 10, United States
Code, is amended by adding at the end the following new
paragraphs:
‘‘(8) The term ‘custodial care’ means treatment
or services, regardless of who recommends such
treatment or services or where such treatment or
services are provided, that—
‘‘(A) can be rendered safely and reasonably
by a person who is not medically skilled; or
‘‘(B) is or are designed mainly to help the
patient with the activities of daily living.
‘‘(9) The term ‘domiciliary care’ means care
provided to a patient in an institution or homelike
environment because—
‘‘(A) providing support for the activities of
daily living in the home is not available or is
unsuitable; or
‘‘(B) members of the patient’s family are
unwilling to provide the care.’’.
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(d) CONFORMING AMENDMENT.—Section 1079 of
title 10, United States Code, is amended in subsection (a)
by striking paragraph (17).
(e) CONTINUATION OF INDIVIDUAL CASE MANAGE-
MENT
SERVICES
FOR
CERTAIN
ELIGIBLE
BENE-
FICIARIES.—(1) Notwithstanding the termination of the
Individual Case Management Program by subsection (d),
the Secretary of Defense shall, in any case in which the
Secretary makes the determination described in paragraph
(2), continue to provide payment as if such program were
in effect for home health care or custodial care services
provided to an eligible beneficiary that would otherwise be
excluded from coverage under regulations implementing
chapter 55 of title 10, United States Code.
(2) The determination referred to in paragraph (1)
is a determination that discontinuation of payment for
services not otherwise provided under such chapter would
result in the provision of services inadequate to meet the
needs of the eligible beneficiary and would be unjust to
such beneficiary.
(3) For purposes of this subsection, ‘‘eligible bene-
ficiary’’ means a covered beneficiary (as that term is de-
fined in section 1072 of title 10, United States Code) who,
before the effective date of this section, was provided cus-
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todial care services under the Individual Case Manage-
ment Program for which the Secretary provided payment.
(f) REPORT
ON INITIATIVES REGARDING LONG-
TERM CARE.—The Secretary of Defense shall, not later
than April 1, 2002, submit to Congress a report on the
feasibility and desirability of establishing new initiatives,
taking into account chapter 90 of title 5, United States
Code, to improve the availability of long-term care for
members and retired members of the uniformed services
and their families.
(g) REFERENCE IN TITLE 10 TO LONG-TERM CARE
PROGRAM IN TITLE 5.—(1) Chapter 55 of title 10, United
States Code, is amended by inserting after section 1074j
(as added by subsection (a)) the following new section:
‘‘§ 1074k. Long-term care insurance
‘‘Provisions regarding long-term care insurance for
members and certain former members of the uniformed
services and their families are set forth in chapter 90 of
title 5.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1074j (as added by subsection (a)) the following
new item:
‘‘1074k. Long-term care insurance.’’.
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(h) EFFECTIVE DATE.—This section, and the amend-
ments made by this section, shall take effect on October
1, 2001.
SEC. 705. REIMBURSEMENT OF TRAVEL EXPENSES OF A
PARENT, GUARDIAN, OR RESPONSIBLE FAM-
ILY MEMBER OF A MINOR COVERED BENE-
FICIARY.
Section 1074i of title 10, United States Code, is
amended by adding at the end the following new sentence:
‘‘In any case in which reimbursement of travel expenses
of a covered beneficiary who is a minor and dependent
is required under this section, the Secretary also shall pro-
vide reimbursement for reasonable travel expenses of the
parent or guardian of, or the family member responsible
for, such covered beneficiary.’’.
Subtitle B—Other Matters
SEC. 711. PROHIBITION AGAINST REQUIRING MILITARY RE-
TIREES TO RECEIVE HEALTH CARE SOLELY
THROUGH THE DEPARTMENT OF DEFENSE.
No provision of law (whether enacted before or after
this Act) may be construed as authorizing the Secretary
of Defense to take any action that would require, or have
the effect of requiring, a member or former member of
the Armed Forces who is entitled to retired or retainer
pay to enroll to receive health care from the Federal Gov-
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ernment only through the Department of Defense. This
section may not be superseded by a subsequent Act unless
that Act—
(1) specifically refers to this section; and
(2) specifically states that such provision of law
supersedes the provisions of this section.
SEC. 712. TRAUMA AND MEDICAL CARE PILOT PROGRAM.
(a) REQUIREMENT TO CONDUCT PILOT PROGRAM.—
The Secretary of Defense shall conduct a pilot program
under which the Brooke Army Medical Center and the
Wilford Hall Air Force Medical Center in San Antonio,
Texas, may charge civilians who are not covered bene-
ficiaries under chapter 55 of title 10, United States Code,
fees representing the actual costs of trauma and other
medical care provided to such civilians using private sector
itemized rates.
(b) USE OF FEES COLLECTED.—(1) The Brooke
Army Medical Center and the Wilford Hall Air Force
Medical Center may use the amounts collected under the
pilot program for—
(A) trauma consortium activities;
(B) administrative, operating, and equipment
costs; and
(C) readiness training.
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(2) The operating budgets of those medical centers
shall not be reduced as a result of fees collected under
the pilot program.
(c) EFFICIENT PRACTICES.—Under the pilot pro-
gram, the commander of the Brooke Army Medical Center
or Wilford Hall Air Force Medical Center may authorize
the use of funds appropriated to the Department of De-
fense for medical care for trauma and other medical care
provided at such center to civilians described in subsection
(a).
(d) LENGTH OF PILOT PROGRAM.—The pilot pro-
gram under this section shall commence on October 1,
2001, and be conducted for a period of three years.
(e) REPORTS.—The Secretary of Defense shall sub-
mit to Congress not later than October 1st of each of 2002
through 2004 a report describing the progress and effec-
tiveness of the pilot program carried out under this sec-
tion.
SEC. 713. ENHANCEMENT OF MEDICAL PRODUCT DEVELOP-
MENT.
Section 980 of title 10, United States Code, is
amended—
(1) by inserting ‘‘(a)’’ before ‘‘Funds’’; and
(2) by adding at the end the following new sub-
section:
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‘‘(b) The Secretary of Defense may waive the prohibi-
tion in this section with respect to a specific research
project to advance the development of a medical product
necessary to the armed forces if the research project is
carried out in accordance with all other applicable laws.’’.
SEC. 714. REPEAL OF OBSOLETE REPORT REQUIREMENT.
Section 701 of the National Defense Authorization
Act for Fiscal Year 2000 (Public Law 106–65; 10 U.S.C.
1074g note) is amended by striking subsection (d).
SEC. 715. CLARIFICATIONS AND IMPROVEMENTS REGARD-
ING THE DEPARTMENT OF DEFENSE MEDI-
CARE-ELIGIBLE 
RETIREE 
HEALTH 
CARE
FUND.
(a) CLARIFICATION REGARDING COVERAGE.—Sub-
section (b) of section 1111 of title 10, United States Code,
is amended to read as follows:
‘‘(b) In this chapter:
‘‘(1) The term ‘Department of Defense retiree
health care programs’ means the provisions of this
title or any other provision of law creating an enti-
tlement to or eligibility for health care under a De-
partment of Defense or uniformed service program
for a member or former member of a participating
uniformed service who is entitled to retired or re-
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tainer pay, and an eligible dependent under such
program.
‘‘(2) The term ‘eligible dependent’ means a de-
pendent (as such term is defined in section 1072(2)
of this title) described in section 1076(a)(2) (other
than a dependent of a member on active duty),
1076(b), 1086(c)(2), or 1086(c)(3).
‘‘(3) The term ‘medicare-eligible’, with respect
to any person, means entitled to benefits under part
A of title XVIII of the Social Security Act (42
U.S.C. 1395c et seq.).
‘‘(4) The term ‘participating uniformed service’
means the Army, Navy, Air Force, and Marine
Corps, and any other uniformed service that is cov-
ered by an agreement entered into under subsection
(c).’’.
(b) PARTICIPATION OF OTHER UNIFORMED SERV-
ICES.—(1) Section 1111 of such title is further amended
by adding at the end the following new subsection:
‘‘(c) The Secretary of Defense may enter into an
agreement with any other administering Secretary (as de-
fined in section 1072(3)) for participation in the Fund by
a uniformed service under the jurisdiction of that Sec-
retary. Any such agreement shall require that Secretary
to make contributions to the Fund on behalf of the mem-
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bers of the uniformed service under the jurisdiction of that
Secretary comparable to the contributions to the Fund
made by the Secretary of Defense under section 1116, and
such administering Secretary may make such contribu-
tions.’’.
(2) Section 1112 of such title is amended by adding
at the end the following new paragraph:
‘‘(4) Amounts paid into the Fund pursuant to section
1111(c).’’.
(3) Section 1115 of such title is amended—
(A) in subsection (a), by inserting ‘‘partici-
pating’’ before ‘‘uniformed services’’;
(B) in subparagraphs (A)(ii) and (B)(ii) of sub-
section (b)(1), by inserting ‘‘under the jurisdiction of
the Secretary of Defense’’ after ‘‘uniformed serv-
ices’’;
(C) in subsection (b)(2), by inserting ‘‘(or to
the other executive department having jurisdiction
over the participating uniformed service)’’ after ‘‘De-
partment of Defense’’; and
(D) in subparagraphs (A) and (B) of subsection
(c)(1), by inserting ‘‘participating’’ before ‘‘uni-
formed services’’.
(4) Section 1116(a) of such title is amended in para-
graphs (1)(B) and (2)(B) by inserting ‘‘under the jurisdic-
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tion of the Secretary of Defense’’ after ‘‘uniformed serv-
ices’’.
(c) CLARIFICATION
OF
PAYMENTS
FROM
THE
FUND.—(1) Subsection (a) of section 1113 of such title
is amended to read as follows:
‘‘(a) There shall be paid from the Fund amounts pay-
able for the costs of all Department of Defense retiree
health care programs for the benefit of members or former
members of a participating uniformed service who are en-
titled to retired or retainer pay and are medicare eligible,
and eligible dependents described in section 1111(b)(3)
who are medicare eligible.’’.
(2) Such section is further amended by adding at the
end the following new subsections:
‘‘(c)(1) In carrying out subsection (a), the Secretary
of Defense may transfer periodically from the Fund to ap-
plicable appropriations of the Department of Defense, or
to applicable appropriations of other departments or agen-
cies, such amounts as the Secretary determines necessary
to cover the costs chargeable to those appropriations for
Department of Defense retiree health care programs for
beneficiaries under those programs who are medicare-eligi-
ble. Such transfers may include amounts necessary for the
administration of such programs. Amounts so transferred
shall be merged with and be available for the same pur-
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poses and for the same time period as the appropriation
to which transferred. Upon a determination that all or
part of the funds transferred from the Fund are not nec-
essary for the purposes for which transferred, such
amounts may be transferred back to the Fund. This trans-
fer authority is in addition to any other transfer authority
that may be available to the Secretary.
‘‘(2) A transfer from the Fund under paragraph (1)
may not be made to an appropriation after the end of the
second fiscal year after the fiscal year that the appropria-
tion is available for obligation. A transfer back to the
Fund under paragraph (1) may not be made after the end
of the second fiscal year after the fiscal year that the ap-
propriation to which the funds were originally transferred
is available for obligation.
‘‘(d) The Secretary of Defense shall by regulation es-
tablish the method or methods for calculating amounts to
be transferred under subsection (c). Such method or meth-
ods may be based (in whole or in part) on a proportionate
share of the volume (measured as the Secretary deter-
mines appropriate) of health care services provided or paid
for under Department of Defense retiree health care pro-
grams for beneficiaries under those programs who are
medicare-eligible in relation to the total volume of health
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care services provided or paid for under Department of
Defense health care programs.
‘‘(e) The regulations issued by the Secretary under
subsection (d) shall be provided to the Comptroller Gen-
eral not less than 60 days before such regulations become
effective. The Comptroller General shall, not later than 30
days after receiving such regulations, report to the Sec-
retary of Defense and Congress on the adequacy and ap-
propriateness of the regulations.
‘‘(f) If the Secretary of Defense enters into an agree-
ment with another administering Secretary pursuant to
section 1111(c), the Secretary of Defense may take ac-
tions comparable to those described in subsections (c), (d),
and (e) to effect comparable activities in relation to the
beneficiaries and programs of the other participating uni-
formed service.’’.
(d) SOURCE OF FUNDS FOR MONTHLY ACCRUAL
PAYMENTS INTO THE FUND.—Section 1116 of such title
is further amended—
(1) in subsection (a)(2)(B) (as amended by sub-
section (b)(7)), by striking the sentence beginning
‘‘Amounts paid into’’; and
(2) by adding at the end the following new sub-
section:
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‘‘(c) Amounts paid into the Fund under subsection
(a) shall be paid from funds available for the health care
programs of the participating uniformed services under
the jurisdiction of the respective administering Secre-
taries.’’.
(e) LIMITATION ON TOTAL AMOUNT CONTRIBUTED
DURING A FISCAL YEAR.—Section 1116 of such title is
further amended by adding at the end the following new
subsection:
‘‘(d) In no case may the total amount of monthly con-
tributions to the Fund during a fiscal year under sub-
section (a) exceed the amount paid from the Fund during
such fiscal year under section 1113.’’.
(f) TECHNICAL AMENDMENTS.—(1) The heading for
section 1111 of such title is amended to read as follows:
‘‘§ 1111. Establishment and purpose of Fund; defini-
tions; authority to enter into agree-
ments’’.
(2) The item relating to section 1111 in the table of
sections at the beginning of chapter 56 of such title is
amended to read as follows:
‘‘1111. Establishment and purpose of Fund; definitions; authority to enter into
agreements.’’.
(3) Section 1115(c)(1)(B) of such title is amended
by inserting an open parenthesis before ‘‘other than for
training)’’.
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(g) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the enact-
ment of chapter 56 of title 10, United States Code, by
section 713(a)(1) of the Floyd D. Spence National De-
fense Authorization Act for Fiscal Year 2001 (Public Law
106–398; 114 Stat. 1654A–179).
(h) FIRST YEAR CONTRIBUTIONS.—With respect to
contributions under section 1116(a) of title 10, United
States Code, for the first year that the Department of De-
fense Medicare-Eligible Retiree Health Care Fund is es-
tablished under chapter 56 of such title, if the Board of
Actuaries is unable to execute its responsibilities with re-
spect to such section, the Secretary of Defense may make
contributions under such section using methods and as-
sumptions developed by the Secretary.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Acquisition Policy and
Management
SEC. 801. ACQUISITION MILESTONES.
(a) TITLE 10, U.S.C.—Title 10, United States Code,
is amended—
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(1) in section 2366(c), subsections (b)(3)(A),
(c)(3)(A), and (h)(1) of section 2432, and section
2434(a), by striking ‘‘engineering and manufac-
turing development’’ each place such words appear
and inserting ‘‘system development and demonstra-
tion’’;
(2) in section 2400—
(A) in subsection (a)(2), by striking ‘‘engi-
neering and manufacturing development’’ and
inserting ‘‘system development and demonstra-
tion’’; and
(B) in subsections (a)(1)(A), (a)(2), (a)(4)
and (a)(5), by striking ‘‘milestone II’’ each
place such term appears and inserting ‘‘mile-
stone B’’; and
(3) in section 2435—
(A) in subsection (b), by striking ‘‘engi-
neering and manufacturing development’’ and
inserting ‘‘system development and demonstra-
tion’’;
(B) in subsection (c)(1), by striking ‘‘dem-
onstration and validation’’ and inserting ‘‘sys-
tem development and demonstration’’;
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(C) in subsection (c)(2), by striking ‘‘engi-
neering and manufacturing development’’ and
inserting ‘‘production and deployment’’; and
(D) in subsection (c)(3), by striking ‘‘pro-
duction and deployment’’ and inserting ‘‘full
rate production’’.
(b) OTHER LAWS.—(1) Section 811(c) of the Floyd
D. Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted in Public Law 106–398; 114 Stat.
1654A–211) is amended—
(A) by striking ‘‘Milestone I’’ and inserting
‘‘Milestone B’’;
(B) by striking ‘‘Milestone II’’ and inserting
‘‘Milestone C’’; and
(C) by striking ‘‘Milestone III’’ and inserting
‘‘full rate production’’.
(2) Section 8102(b) of the Department of Defense
Appropriations Act, 2001 (Public Law 106–259; 114 Stat.
696) is amended—
(A) by striking ‘‘Milestone I’’ and inserting
‘‘Milestone B’’;
(B) by striking ‘‘Milestone II’’ and inserting
‘‘Milestone C’’; and
(C) by striking ‘‘Milestone III’’ and inserting
‘‘full rate production’’.
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SEC. 802. ACQUISITION WORKFORCE QUALIFICATIONS.
(a) QUALIFICATIONS.—Section 1724 of title 10,
United States Code, is amended—
(1) in subsection (a)—
(A) by striking the matter preceding para-
graph (1) and inserting the following:
‘‘(a) CONTRACTING OFFICERS.—The Secretary of
Defense shall require that, in order to qualify to serve in
an acquisition position as a contracting officer with au-
thority to award or administer contracts for amounts
above the simplified acquisition threshold referred to in
section 2304(g) of this title, an employee of the Depart-
ment of Defense or member of the armed forces (other
than the Coast Guard) must, except as provided in sub-
sections (c) and (d)—’’;
(B) in paragraph (1)—
(i) by striking ‘‘mandatory’’; and
(ii) by striking ‘‘at the grade level’’
and all that follows and inserting ‘‘(A) in
the case of an employee, serving in the po-
sition within the grade of the General
Schedule in which the employee is serving,
and (B) in the case of a member of the
armed forces, in the member’s grade;’’;
and
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(C) in paragraph (3)(A), by inserting a
comma after ‘‘business’’;
(2) by striking subsection (b) and inserting the
following new subsection:
‘‘(b) GS–1102 SERIES POSITIONS
AND SIMILAR
MILITARY POSITIONS.—(1) The Secretary of Defense
shall require that in order to qualify to serve in a position
in the Department of Defense that is in the GS–1102 oc-
cupational series an employee or potential employee of the
Department of Defense meet the requirements set forth
in paragraph (3) of subsection (a). The Secretary may not
require that in order to serve in such a position an em-
ployee or potential employee meet any of the requirements
of paragraphs (1) and (2) of that subsection.
‘‘(2) The Secretary of Defense shall require that in
order for a member of the armed forces to be selected for
an occupational specialty within the armed forces that (as
determined by the Secretary) is similar to the GS–1102
occupational series a member of the armed forces meet
the requirements set forth in paragraph (3) of subsection
(a). The Secretary may not require that in order to be
selected for such an occupational specialty a member meet
any of the requirements of paragraphs (1) and (2) of that
subsection.’’; and
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(3) by striking subsections (c) and (d) inserting
the following new subsections:
‘‘(c) EXCEPTIONS.—The qualification requirements
imposed by the Secretary of Defense pursuant to sub-
sections (a) and (b) shall not apply to an employee of the
Department of Defense or member of the armed forces
who—
‘‘(1) served as a contracting officer with author-
ity to award or administer contracts in excess of the
simplified acquisition threshold on or before Sep-
tember 30, 2000;
‘‘(2) served, on or before September 30, 2000,
in a position either as an employee in the GS–1102
series or as a member of the armed forces in similar
occupational specialty;
‘‘(3) is in the contingency contracting force; or
‘‘(4) is described in subsection (e)(1)(B).
‘‘(d) WAIVER.—The acquisition career program
board concerned may waive any or all of the requirements
of subsections (a) and (b) with respect to an employee of
the Department of Defense or member of the armed forces
if the board certifies that the individual possesses signifi-
cant potential for advancement to levels of greater respon-
sibility and authority, based on demonstrated job perform-
ance and qualifying experience. With respect to each waiv-
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er granted under this subsection, the board shall set forth
in a written document the rationale for its decision to
waive such requirements. Such document shall be sub-
mitted to and retained by the Director of Acquisition Edu-
cation, Training, and Career Development.
‘‘(e) DEVELOPMENTAL OPPORTUNITIES.—(1) The
Secretary of Defense may—
‘‘(A) establish or continue one or more pro-
grams for the purpose of recruiting, selecting, ap-
pointing, educating, qualifying, and developing the
careers of individuals to meet the requirements in
subparagraphs (A) and (B) of subsection (a)(3);
‘‘(B) appoint individuals to developmental posi-
tions in those programs; and
‘‘(C) separate from the civil service after a
three-year probationary period any individual ap-
pointed under this subsection who, as determined by
the Secretary, fails to complete satisfactorily any
program described in subparagraph (A).
‘‘(2) To qualify for any developmental program de-
scribed in paragraph (1)(A), an individual shall have—
‘‘(A) been awarded a baccalaureate degree from
an accredited institution of higher education author-
ized to grant baccalaureate degrees; or
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‘‘(B) completed at least 24 semester credit
hours or the equivalent of study from an accredited
institution of higher education in any of the dis-
ciplines of accounting, business, finance, law, con-
tracts, purchasing, economics, industrial manage-
ment, marketing, quantitative methods, or organiza-
tion and management.
‘‘(f) CONTINGENCY CONTRACTING FORCE.—The Sec-
retary shall establish qualification requirements for the
contingency contracting force consisting of members of the
armed forces whose mission is to deploy in support of con-
tingency operations and other operations of the Depart-
ment of Defense, including—
‘‘(1) completion of at least 24 semester credit
hours or the equivalent of study from an accredited
institution of higher education or similar educational
institution in any of the disciplines of accounting,
business, finance, law, contracts, purchasing, eco-
nomics, industrial management, marketing, quan-
titative methods, or organization and management;
or
‘‘(2) passage of an examination that dem-
onstrates skills, knowledge, or abilities comparable
to that of an individual who has completed at least
24 semester credit hours or the equivalent of study
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in any of the disciplines described in paragraph
(1).’’.
(b) CLERICAL AMENDMENT.—Section 1732(c)(2) of
such title is amended by inserting a comma after ‘‘busi-
ness’’.
SEC. 803. TWO-YEAR EXTENSION OF PROGRAM APPLYING
SIMPLIFIED PROCEDURES TO CERTAIN COM-
MERCIAL ITEMS.
Section 4202(e) of the Clinger-Cohen Act of 1996
(divisions D and E of Public Law 104–106; 110 Stat. 654;
10 U.S.C. 2304 note) is amended by striking ‘‘January
1, 2002’’ and inserting ‘‘January 1, 2004’’.
SEC. 804. CONTRACTS FOR SERVICES TO BE PERFORMED
OUTSIDE THE UNITED STATES.
(a) IN GENERAL.—Chapter 141 of title 10, United
States Code, is amended by inserting after section 2381
the following new section:
‘‘§ 2382. Contracts for services to be performed out-
side the United States
‘‘The Secretary of Defense may enter into contracts
to employ individuals or organizations to perform services
in countries other than the United States without regard
to laws regarding the negotiation, making, and perform-
ance of contracts and performance of work in the United
States. Individuals employed by contract to perform such
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services shall not by virtue of such employment be consid-
ered to be employees of the United States Government for
purposes of any law administered by the Office of Per-
sonnel Management, but the Secretary may determine the
applicability to such individuals of any other law adminis-
tered by the Secretary concerning the employment of such
individuals in countries other than the United States.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 2381 the following new
item:
‘‘2382. Contracts for services to be performed outside the United States.’’.
SEC. 805. CODIFICATION AND MODIFICATION OF ‘‘BERRY
AMENDMENT’’ REQUIREMENTS.
(a) 
BERRY
AMENDMENT
REQUIREMENTS.—(1)
Chapter 148 of title 10, United States Code, is amended
by inserting after section 2533 the following new section:
‘‘§ 2533a. Requirement to buy certain articles from
American sources; exceptions
‘‘(a) REQUIREMENT.—Except as provided in sub-
sections (c) through (g), funds appropriated or otherwise
available to the Department of Defense may not be used
for the procurement of an item described in subsection (b)
if the item is not grown, reprocessed, reused, or produced
in the United States.
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‘‘(b) COVERED ITEMS.—An item referred to in sub-
section (a) is any of the following:
‘‘(1) An article or item of—
‘‘(A) food;
‘‘(B) clothing;
‘‘(C) tents, tarpaulins, parachutes, or cov-
ers;
‘‘(D) cotton and other natural fiber prod-
ucts, woven silk or woven silk blends, spun silk
yarn for cartridge cloth, synthetic fabric or
coated synthetic fabric (including all textile fi-
bers and yarns that are for use in such fabrics),
canvas products, or wool (whether in the form
of fiber or yarn or contained in fabrics, mate-
rials, or manufactured articles); or
‘‘(E) any item of individual equipment
manufactured from or containing such fibers,
yarns, fabrics, or materials.
‘‘(2) Specialty metals, including stainless steel
flatware.
‘‘(3) Hand or measuring tools.
‘‘(c) EXCEPTION.—The Secretary of Defense or the
Secretary of the military department concerned may waive
the requirement in subsection (a) if—
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‘‘(1) such Secretary determines that satisfac-
tory quality and sufficient quantity of any such arti-
cle or item described in subsection (b)(1) or spe-
cialty metals (including stainless steel flatware)
grown, reprocessed, reused, or produced in the
United States cannot be procured as and when need-
ed at United States market prices;
‘‘(2) such Secretary has provided notice to the
public regarding the waiver;
‘‘(3) such Secretary has notified the Commit-
tees on Appropriations, Armed Services, and Small
Business of the House of Representatives and the
Senate regarding the waiver and provided a jus-
tification to such committees for the waiver; and
‘‘(4) 30 days have elapsed since the date of the
notification of such committees.
‘‘(d) EXCEPTION
FOR
CERTAIN
PROCUREMENTS
OUTSIDE THE UNITED STATES.—Subsection (a) does not
apply to the following:
‘‘(1) Procurements outside the United States in
support of combat operations.
‘‘(2) Procurements by vessels in foreign waters.
‘‘(3) Emergency procurements or procurements
of perishable foods by an establishment located out-
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side the United States for the personnel attached to
such establishment.
‘‘(e) EXCEPTION
FOR
SPECIALTY
METALS
AND
CHEMICAL
WARFARE
PROTECTIVE
CLOTHING.—Sub-
section (a) does not preclude the procurement of specialty
metals or chemical warfare protective clothing produced
outside the United States if—
‘‘(1) such procurement is necessary—
‘‘(A) to comply with agreements with for-
eign governments requiring the United States
to purchase supplies from foreign sources for
the purposes of offsetting sales made by the
United States Government or United States
firms under approved programs serving defense
requirements; or
‘‘(B) in furtherance of agreements with
foreign governments in which both such govern-
ments agree to remove barriers to purchases of
supplies produced in the other country or serv-
ices performed by sources of the other country;
and
‘‘(2) any such agreement with a foreign govern-
ment complies, where applicable, with the require-
ments of section 36 of the Arms Export Control Act
(22 U.S.C. 2776) and with section 2457 of this title.
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‘‘(f) EXCEPTION FOR CERTAIN FOODS.—Subsection
(a) does not preclude the procurement of foods manufac-
tured or processed in the United States.
‘‘(g) EXCEPTION
FOR SMALL PURCHASES.—Sub-
section (a) does not apply to purchases for amounts not
greater than the simplified acquisition threshold referred
to in section 2304(g) of this title.
‘‘(h) APPLICABILITY
TO
CONTRACTS
AND
SUB-
CONTRACTS
FOR
PROCUREMENT
OF
COMMERCIAL
ITEMS.—This section is applicable to contracts and sub-
contracts for the procurement of commercial items not-
withstanding section 34 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 430).
‘‘(i) GEOGRAPHIC COVERAGE.—In this section, the
term ‘United States’ includes the commonwealths, terri-
tories, and possessions of the United States.
‘‘(j) EXCEPTION FOR COMMISSARIES, EXCHANGES,
AND OTHER NONAPPROPRIATED FUND INSTRUMENTAL-
ITIES.—Subsection (a) does not apply to items purchased
for resale purposes in commissaries, military exchanges,
or nonappropriated fund instrumentalities operated by the
military departments or the Department of Defense.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2533 the following new item:
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‘‘2533a. Requirement to buy certain articles from American sources; excep-
tions.’’.
(b) REPEAL OF SOURCE PROVISIONS.—The following
provisions of law are repealed:
(1) Section 9005 of the Department of Defense
Appropriations Act, 1993 (Public Law 102–396; 10
U.S.C. 2241 note).
(2) Section 8109 of the Department of Defense
Appropriations Act, 1997 (as contained in section
101(b) of Public Law 104–208; 110 Stat. 3009–
111; 10 U.S.C. 2241 note).
SEC. 806. INCREASE OF ASSISTANCE LIMITATION REGARD-
ING PROCUREMENT TECHNICAL ASSISTANCE
PROGRAMS.
Section 2414(a)(1) of title 10, United States Code,
is amended by striking ‘‘$300,000’’ and inserting
‘‘$600,000’’.
SEC. 807. STUDY OF CONTRACT CONSOLIDATIONS.
The Secretary of Defense, in consultation with the
Comptroller General of the United States, shall develop
a database to track contract consolidations which consoli-
date 2 or more contracts previously awarded by the De-
partment of Defense to small business concerns. The data-
base shall contain, at a minimum, the names and address-
es of the businesses to which the contracts that were con-
solidated were previously awarded, the rationale for con-
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solidating the contracts, and the monetary benefit pro-
jected to be realized by the contract consolidation. Not
later than December 1st of each year, the Secretary of
Defense shall submit a report regarding the information
contained in such database to the Committees on Armed
Services of the House of Representatives and the Senate,
the Committee on Small Business of the House of Rep-
resentatives, and the Committee on Small Business and
Entrepreneurship of the Senate.
Subtitle B—Erroneous Payments
Recovery
SEC. 811. SHORT TITLE.
This subtitle may be cited as the ‘‘Erroneous Pay-
ments Recovery Act of 2001’’.
SEC. 812. IDENTIFICATION OF ERRORS MADE BY EXECU-
TIVE AGENCIES IN PAYMENTS TO CONTRAC-
TORS AND RECOVERY OF AMOUNTS ERRO-
NEOUSLY PAID.
(a) PROGRAM REQUIRED.—The head of each execu-
tive agency that enters into contracts with a total value
in excess of $500,000,000 in a fiscal year shall carry out
a cost-effective program for identifying any errors made
in paying the contractors and for recovering any amounts
erroneously paid to the contractors.
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(b) RECOVERY AUDITS AND ACTIVITIES.—A program
of an executive agency under subsection (a) shall include
recovery audits and recovery activities. The head of the
executive agency shall determine, in accordance with guid-
ance provided under subsection (c), the classes of con-
tracts to which recovery audits and recovery activities are
appropriately applied.
(c) OMB GUIDANCE.—The Director of the Office of
Management and Budget shall issue guidance for the con-
duct of programs under subsection (a). The guidance shall
include the following:
(1) Definitions of the terms ‘‘recovery audit’’
and ‘‘recovery activity’’ for the purposes of the pro-
grams.
(2) The classes of contracts to which recovery
audits and recovery activities are appropriately ap-
plied under the programs.
(3) Protections for the confidentiality of—
(A) sensitive financial information that has
not been released for use by the general public;
and
(B) information that could be used to iden-
tify a person.
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(4) Policies and procedures for ensuring that
the implementation of the programs does not result
in duplicative audits of contractor records.
(5) Policies regarding the types of contracts ex-
ecutive agencies may use for the procurement of re-
covery services, including guidance for use, in appro-
priate circumstances, of a contingency contract pur-
suant to which the head of an executive agency may
pay a contractor an amount equal to a percentage
of the total amount collected for the United States
pursuant to that contract.
(6) Protections for a contractor’s records and
facilities through restrictions on the authority of a
contractor under a contract for the procurement of
recovery services for an executive agency—
(A) to require the production of any record
or information by any person other than an of-
ficer, employee, or agent of the executive agen-
cy;
(B) to establish, or otherwise have, a phys-
ical presence on the property or premises of any
private sector entity for the purposes of per-
forming the contract; or
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(C) to act as agents for the Government in
the recovery of funds erroneously paid to con-
tractors.
(7) Policies for the appropriate types of man-
agement improvement programs authorized by sec-
tion 815 that executive agencies may carry out to
address overpayment problems and the recovery of
overpayments.
SEC. 813. DISPOSITION OF RECOVERED FUNDS.
(a) AVAILABILITY OF FUNDS FOR RECOVERY AUDITS
AND ACTIVITIES PROGRAM.—Funds collected under a pro-
gram carried out by an executive agency under section 812
shall be available to the executive agency, in such amounts
as are provided in advance in appropriations Acts, for the
following purposes:
(1) To reimburse the actual expenses incurred
by the executive agency in the administration of the
program.
(2) To pay contractors for services under the
program in accordance with the guidance issued
under section 812(c)(5).
(b) FUNDS
NOT
USED
FOR
PROGRAM.—Any
amounts erroneously paid by an executive agency that are
recovered under such a program of an executive agency
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and are not used to reimburse expenses or pay contractors
under subsection (a)—
(1) shall be credited to the appropriations from
which the erroneous payments were made that re-
main available for obligation as of the time such
amounts were collected, shall be merged with other
amounts in those appropriations, and shall be avail-
able for the purposes and period for which such ap-
propriations are available; or
(2) if no such appropriation remains available
for obligation at that time, shall be disposed of as
provided in subsection (c).
(c) OTHER DISPOSITIONS.—Of the total amount col-
lected under such a program of an executive agency that
is to be disposed of under this subsection—
(1) up to 25 percent of such amount may be ex-
pended by the head of the executive agency for car-
rying out any management improvement program of
the executive agency under section 815; and
(2) the remainder of that total amount, includ-
ing any amount not expended under paragraph (1),
shall be deposited in the Treasury as miscellaneous
receipts.
(d) PRIORITY
OF OTHER AUTHORIZED DISPOSI-
TIONS.—Notwithstanding subsections (b) and (c), the au-
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thority under such subsections may not be exercised to
use, credit, or deposit funds collected under such a pro-
gram as provided in those subsections to the extent that
any other provision of law requires or authorizes the cred-
iting of such funds to a nonappropriated fund instrumen-
tality, revolving fund, working-capital fund, trust fund, or
other fund or account.
SEC. 814. SOURCES OF RECOVERY SERVICES.
(a) CONSIDERATION OF AVAILABLE RECOVERY RE-
SOURCES.—(1) In carrying out a program under section
812, the head of an executive agency shall consider all re-
sources available to that official to carry out the program.
(2) The resources considered by the head of an execu-
tive agency for carrying out the program shall include the
resources available to the executive agency for such pur-
pose from the following sources:
(A) The executive agency.
(B) Other departments and agencies of the
United States.
(C) Private sector sources.
(b) COMPLIANCE WITH APPLICABLE LAW AND REG-
ULATIONS.—Before entering into a contract with a private
sector source for the performance of services under a pro-
gram of the executive agency carried out under section
812, the head of an executive agency shall comply with—
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(1) any otherwise applicable provisions of Office
of Management and Budget Circular A–76; and
(2) any other applicable provision of law or reg-
ulation with respect to the selection between employ-
ees of the United States and private sector sources
for the performance of services.
SEC. 815. MANAGEMENT IMPROVEMENT PROGRAMS.
In accordance with guidance provided by the Director
of the Office of Management and Budget under section
812, the head of an executive agency required to carry
out a program under section 812 may carry out a program
for improving management processes within the executive
agency—
(1) to address problems that contribute directly
to the occurrence of errors in the paying of contrac-
tors of the executive agency; or
(2) to improve the recovery of overpayments
due to the agency.
SEC. 816. REPORTS.
(a) REQUIREMENT FOR REPORTS.—Not later than
30 months after the date of the enactment of this Act,
and annually for each of the first two years following the
year of the first report, the Director of the Office of Man-
agement and Budget shall submit to the Committee on
Government Reform of the House of Representatives and
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the Committee on Governmental Affairs of the Senate, a
report on the implementation of this subtitle.
(b) CONTENT.—Each report shall include—
(1) a general description and evaluation of the
steps taken by the heads of executive agencies to
carry out the programs under this subtitle, including
any management improvement programs carried out
under section 815;
(2) the costs incurred by executive agencies to
carry out the programs under this subtitle; and
(3) the amounts recovered under the programs
under this subtitle.
SEC. 817. RELATIONSHIP TO AUTHORITY OF INSPECTORS
GENERAL.
Nothing in this subtitle shall be construed as impair-
ing the authority of an Inspector General under the In-
spector General Act of 1978 or any other provision of law.
SEC. 818. PRIVACY PROTECTIONS.
(a) PROHIBITION.—Any nongovernmental entity
that, in the course of recovery auditing or recovery activity
under this subtitle, obtains information that identifies an
individual or with respect to which there is a reasonable
basis to believe that the information can be used to iden-
tify an individual, may not disclose the information for
any purpose other than such recovery auditing or recovery
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activity and governmental oversight of such activity, un-
less disclosure for that other purpose is authorized by the
individual to the executive agency that contracted for the
performance of the recovery auditing or recovery activity.
(b) LIABILITY.—Any person that violates subsection
(a) shall be liable for any damages (including nonpecu-
niary damages), costs, and attorneys fees incurred by the
individual as a result of the violation.
SEC. 819. DEFINITION.
In this subtitle, the term ‘‘executive agency’’ has the
meaning given that term in section 4(1) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(1)).
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND
MANAGEMENT
SEC. 901. 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 2002 so that the
total number of such personnel as of October 1, 2002, is
less than the total number of such personnel as of October
1, 2001, by at least 13,000.
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(b) 
DEFENSE
ACQUISITION
WORKFORCE
DE-
FINED.—For purposes of this section, the term ‘‘defense
acquisition and support personnel’’ 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. 902. SENSE OF CONGRESS ON ESTABLISHMENT OF AN
OFFICE OF TRANSFORMATION IN THE DE-
PARTMENT OF DEFENSE.
(a) FINDINGS.—Congress finds the following:
(1) The Armed Forces should give careful con-
sideration to implementating transformation to meet
operational challenges and exploit opportunities re-
sulting from changes in the threat environment and
the emergence of new technologies.
(2) A 1999 Defense Science Board report on
transformation concluded that there was no overall
Department of Defense vision for transformation, no
road map, no metrics to measure progress, and little
sense of urgency.
(3) Historic case studies have shown that with-
in the military, as well as commercial enterprises,
successful transformation must be directed from the
highest levels of an organization.
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(b) SENSE OF CONGRESS ON ESTABLISHMENT OF
OFFICE OF TRANSFORMATION.—It is the sense of Con-
gress that the Secretary of Defense should consider the
establishment of an Office of Transformation within the
Office of the Secretary of Defense to advise the Secretary
on—
(1) development of force transformation strate-
gies to ensure that the military of the future is pre-
pared to dissuade potential military competitors and,
if that fails, to fight and win decisively across the
spectrum of future conflict;
(2) ensuring a continuous and broadly focused
transformation process;
(3) service and joint acquisition and experimen-
tation efforts, funding for experimentation efforts,
promising operational concepts and technologies, and
other transformation activities, as appropriate; and
(4) development of service and joint operational
concepts, transformation implementation strategies,
and risk management strategies.
(c) SENSE OF CONGRESS ON FUNDING.—It is the
sense of Congress that the Secretary of Defense should
consider providing funding adequate for sponsoring selec-
tive prototyping efforts, wargames, and studies and anal-
yses and for appropriate staffing, as recommended by the
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director of an Office of Transformation as described in
subsection (b).
SEC. 903. REVISED JOINT REPORT ON ESTABLISHMENT OF
NATIONAL 
COLLABORATIVE 
INFORMATION
ANALYSIS CAPABILITY.
(a) REVISED REPORT.—At the same time as the sub-
mission of the budget for fiscal year 2003 under section
1105 of title 31, United States Code, the Secretary of De-
fense and the Director of Central Intelligence shall submit
to the congressional defense committees and the congres-
sional intelligence committees a revised report assessing
alternatives for the establishment of a national collabo-
rative information analysis capability.
(b) MATTERS INCLUDED.—The revised report shall
cover the same matters required to be included in the
DOD/CIA report, except that the alternative architectures
assessed in the revised report shall be limited to architec-
tures that include the participation of all Federal agencies
involved in the collection of intelligence. The revised report
shall also include a draft of legislation sufficient to carry
out the preferred architecture identified in the revised re-
port.
(c) OFFICIALS TO BE CONSULTED.—The revised re-
port shall be prepared after consultation with all appro-
priate Federal officials, including the following:
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(1) The Secretary of the Treasury.
(2) The Secretary of Commerce.
(3) The Secretary of State.
(4) The Attorney General.
(5) The Director of the Federal Bureau of In-
vestigation.
(6) The Administrator of the Drug Enforce-
ment Administration.
(7) The Director of the Defense Threat Reduc-
tion Agency.
(8) The Director of the Defense Information
Systems Agency.
(d) DOD/CIA REPORT DEFINED.—In this section,
the term ‘‘DOD/CIA report’’ means the joint report re-
quired by section 933 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as en-
acted into law by Public Law 106–398; 114 Stat. 1654A–
237).
SEC. 904. ELIMINATION OF TRIENNIAL REPORT BY CHAIR-
MAN OF THE JOINT CHIEFS OF STAFF ON
ROLES 
AND 
MISSIONS 
OF 
THE 
ARMED
FORCES.
(a) REPEAL OF REQUIREMENT FOR SEPARATE RE-
PORT BY CHAIRMAN OF THE JOINT CHIEFS OF STAFF.—
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Section 153 of title 10, United States Code, is amended
by striking subsection (b).
(b) ROLES AND MISSIONS CONSIDERED AS PART OF
DEFENSE QUADRENNIAL REVIEW.—Subsection 118(e) of
such title is amended—
(1) by inserting ‘‘(1)’’ before ‘‘Upon the com-
pletion’’;
(2) by designating the second and third sen-
tences as paragraph (3); and
(3) by inserting after paragraph (1), as des-
ignated by paragraph (1) of this subsection, the fol-
lowing new paragraph:
‘‘(2) As part of his assessment under paragraph (1),
the Chairman shall provide his assessment of the assign-
ment of functions (or roles and missions) to the armed
forces and such recommendations for changes thereto as
the Chairman considers necessary to achieve maximum ef-
ficiency of the armed forces. In preparing such assess-
ment, the Chairman shall consider (among other matters)
the following:
‘‘(A) Unnecessary duplication of effort among
the armed forces.
‘‘(B) Changes in technology that can be applied
effectively to warfare.’’.
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SEC. 905. REPEAL OF REQUIREMENT FOR SEMIANNUAL RE-
PORTS THROUGH MARCH 2003 ON ACTIVITIES
OF JOINT REQUIREMENTS OVERSIGHT COUN-
CIL.
Section 916 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into
law by Public Law 106–398; 114 Stat. 1654A–231) is re-
pealed.
SEC. 906. CORRECTION OF REFERENCES TO AIR MOBILITY
COMMAND.
(a) REFERENCES
IN TITLE 10, UNITED STATES
CODE.—Sections 2554(d) and 2555(a) of title 10, United
States Code, are each amended by striking ‘‘Military Air-
lift Command’’ and inserting ‘‘Air Mobility Command’’.
(b) REPEAL
OF OBSOLETE PROVISION.—Section
8074 of such title is amended by striking subsection (c).
(c) REFERENCES
IN TITLE 37, UNITED STATES
CODE.—Sections 430(c) and 432(b) of title 37, United
States Code, are each amended by striking ‘‘Military Air-
lift Command’’ and inserting ‘‘Air Mobility Command’’.
SEC. 907. ORGANIZATIONAL ALIGNMENT CHANGE FOR DI-
RECTOR FOR EXPEDITIONARY WARFARE.
Section 5038(a) of title 10, United States Code, is
amended by striking ‘‘Office of the Deputy Chief of Naval
Operations for Resources, Warfare Requirements, and As-
sessments’’ and inserting ‘‘office of the Deputy Chief of
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Naval Operations with responsibility for warfare require-
ments and programs’’.
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 2002 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—
(1) may only be used to provide authority for
items that have a higher priority than the items
from which authority is transferred; and
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(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. 2586 of the One Hundred Seventh 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
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
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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. LIMITATION ON FUNDS FOR BOSNIA AND
KOSOVO PEACEKEEPING OPERATIONS FOR
FISCAL YEAR 2002.
(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 $1,315,600,000 may be obli-
gated for incremental costs of the Armed Forces for
Bosnia peacekeeping operations; and
(2) no more than $1,528,600,000 may be obli-
gated for incremental costs of the Armed Forces for
Kosovo peacekeeping operations.
(b) PRESIDENTIAL WAIVER.—The President may
waive the limitation in subsection (a)(1), or the limitation
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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 2002.
(C) A discussion of the impact on the mili-
tary readiness of United States Armed Forces
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.
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(4) A supplemental appropriations request for
the Department of Defense for such amounts as are
necessary for the additional fiscal year 2002 costs
associated with United States military forces partici-
pating in, or supporting, Bosnia or Kosovo peace-
keeping 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
(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.
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SEC. 1004. INCREASE IN LIMITATIONS ON ADMINISTRATIVE
AUTHORITY OF THE NAVY TO SETTLE ADMI-
RALTY CLAIMS.
(a) ADMIRALTY
CLAIMS
AGAINST
THE
UNITED
STATES.—Section 7622 of title 10, United States Code,
is amended—
(1) in subsections (a) and (b), by striking
‘‘$1,000,000’’ and inserting ‘‘$15,000,000’’; and
(2) in subsection (c), by striking ‘‘$100,000’’
and inserting ‘‘$1,000,000’’.
(b) ADMIRALTY CLAIMS BY THE UNITED STATES.—
Section 7623 of such title is amended—
(1) 
in 
subsection 
(a)(2), 
by 
striking
‘‘$1,000,000’’ and inserting ‘‘$15,000,000’’; and
(2) in subsection (c), by striking ‘‘$100,000’’
and inserting ‘‘$1,000,000’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to any claim accruing
on or after February 1, 2001.
Subtitle B—Naval Vessels
SEC. 1011. REVISION IN TYPES OF EXCESS NAVAL VESSELS
FOR WHICH APPROVAL BY LAW IS REQUIRED
FOR DISPOSAL TO FOREIGN NATIONS.
(a) REVISION
IN
VESSEL
THRESHOLD.—Section
7307 of title 10, United States Code, is amended—
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(1) in subsection (a), by striking ‘‘A naval ves-
sel’’ and inserting ‘‘Except as provided in subsection
(b), a combatant naval vessel’’;
(2) by redesignating subsection (b) as sub-
section (c);
(3) by inserting after subsection (a) the fol-
lowing new subsection (b):
‘‘(b) TREATMENT OF VESSELS HELD BY FOREIGN
NATIONS BY LOAN OR LEASE.—Subsection (a) shall not
apply to the disposal to another nation of a vessel de-
scribed in that subsection that, at the time of the disposal,
is held by the nation to which the disposal is to be made
pursuant to a loan or lease arrangement made under sec-
tion 61 of the Arms Export Control Act (22 U.S.C. 2796)
or any other provision of law.’’; and
(4) by adding after subsection (c), as redesig-
nated by paragraph (2), the following new sub-
section:
‘‘(d) INAPPLICABILITY
OF VESSEL DISPOSALS
TO
AGGREGATE ANNUAL VALUE LIMITATIONS.—The value of
a vessel transferred to another country under an applica-
ble provision of law as described in subsection (c) shall
not be counted for the purposes of any aggregate limit
on the value of articles transferred to other countries
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under that provision of law during any year (or other ap-
plicable period of time).’’.
(b) TECHNICAL AMENDMENTS.—Subsection (a) of
such section is further amended—
(1) by striking ‘‘LARGER OR NEWER’’ in the
subsection heading and inserting ‘‘CERTAIN COM-
BATANT; and
(2) by striking ‘‘approved by law enacted after
August 5, 1974’’ and inserting ‘‘specifically ap-
proved by law’’.
Subtitle C—Counter-Drug
Activities
SEC. 1021. EXTENSION OF REPORTING REQUIREMENT RE-
GARDING DEPARTMENT OF DEFENSE EX-
PENDITURES 
TO 
SUPPORT 
FOREIGN
COUNTER-DRUG ACTIVITIES.
Section 1022 of the Floyd D. Spence National De-
fense Authorization Act for Fiscal Year 2001 (as enacted
by Public Law 106–398; 114 Stat. 1654A–255) is
amended—
(1) by inserting ‘‘and April 15, 2002,’’ after
‘‘January 1, 2001,’’; and
(2) by striking ‘‘fiscal year 2000’’ and inserting
‘‘the preceding fiscal year’’.
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SEC. 1022. AUTHORITY TO TRANSFER TRACKER AIRCRAFT
CURRENTLY USED BY ARMED FORCES FOR
COUNTER-DRUG PURPOSES.
(a) TRANSFER AUTHORITY.—The Secretary of De-
fense may transfer to the administrative jurisdiction and
operational control of another Federal agency all Tracker
aircraft in the inventory of the Department of Defense.
(b) EFFECT OF FAILURE TO TRANSFER.—If the
transfer authority provided by subsection (a) is not exer-
cised by the Secretary of Defense by September 30, 2002,
any Tracker aircraft remaining in the inventory of the De-
partment of Defense may not be used by the Armed
Forces for counter-drug purposes after that date.
SEC. 1023. AUTHORITY TO TRANSFER TETHERED AERO-
STAT RADAR SYSTEM CURRENTLY USED BY
ARMED FORCES FOR COUNTER-DRUG PUR-
POSES.
(a) TRANSFER AUTHORITY.—The Secretary of De-
fense may transfer to the administrative jurisdiction and
operational control of another Federal agency the Teth-
ered Aerostat Radar System currently used by the Armed
Forces in maritime, air, and land counter-drug detection
and monitoring.
(b) EFFECT OF FAILURE TO TRANSFER.—If the
transfer authority provided by subsection (a) is not exer-
cised by the Secretary of Defense by September 30, 2002,
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the Tethered Aerostat Radar System may not be used by
the Armed Forces for counter-drug purposes after that
date.
SEC. 1024. ASSIGNMENT OF MEMBERS TO ASSIST IMMIGRA-
TION AND NATURALIZATION SERVICE AND
CUSTOMS SERVICE.
(a) ASSIGNMENT AUTHORITY OF SECRETARY OF DE-
FENSE.—Chapter 18 of title 10, United States Code, is
amended by inserting after section 374 the following new
section:
‘‘§ 374a. Assignment of members to assist border pa-
trol and control
‘‘(a) ASSIGNMENT AUTHORIZED.—Upon submission
of a request consistent with subsection (b), the Secretary
of Defense may assign members of the Army, Navy, Air
Force, and Marine Corps to assist—
‘‘(1) the Immigration and Naturalization Serv-
ice in preventing the entry of terrorists and drug
traffickers into the United States; and
‘‘(2) the United States Customs Service in the
inspection of cargo, vehicles, and aircraft at points
of entry into the United States to prevent the entry
of weapons of mass destruction, components of
weapons of mass destruction, prohibited narcotics or
drugs, or other terrorist or drug trafficking items.
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‘‘(b) REQUEST FOR ASSIGNMENT.—The assignment
of members under subsection (a) may occur only if—
‘‘(1) the assignment is at the request of the At-
torney General, in the case of an assignment to the
Immigration and Naturalization Service, or the Sec-
retary of the Treasury, in the case of an assignment
to the United States Customs Service; and
‘‘(2) the request of the Attorney General or the
Secretary of the Treasury (as the case may be) is
accompanied by a certification by the President that
the assignment of members pursuant to the request
is necessary to respond to a threat to national secu-
rity posed by the entry into the United States of ter-
rorists or drug traffickers.
‘‘(c) TRAINING PROGRAM REQUIRED.—The Attorney
General or the Secretary of the Treasury (as the case may
be), together with the Secretary of Defense, shall establish
a training program to ensure that members receive general
instruction regarding issues affecting law enforcement in
the border areas in which the members may perform du-
ties under an assignment under subsection (a). A member
may not be deployed at a border location pursuant to an
assignment under subsection (a) until the member has
successfully completed the training program.
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‘‘(d) CONDITIONS OF USE.—(1) Whenever a member
who is assigned under subsection (a) to assist the Immi-
gration and Naturalization Service or the United States
Customs Service is performing duties at a border location
pursuant to the assignment, a civilian law enforcement of-
ficer from the agency concerned shall accompany the
member.
‘‘(2) Nothing in this section shall be construed to—
‘‘(A) authorize a member assigned under sub-
section (a) to conduct a search, seizure, or other
similar law enforcement activity or to make an ar-
rest; and
‘‘(B) supersede section 1385 of title 18 (popu-
larly known as the ‘Posse Comitatus Act’).
‘‘(e) ESTABLISHMENT
OF ONGOING JOINT TASK
FORCES.—(1) The Attorney General or the Secretary of
the Treasury may establish ongoing joint task forces when
accompanied by a certification by the President that the
assignment of members pursuant to the request to estab-
lish a joint task force is necessary to respond to a threat
to national security posed by the entry into the United
States of terrorists or drug traffickers.
‘‘(2) When established, any joint task force shall fully
comply with the standards as set forth in this section.
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‘‘(f) NOTIFICATION REQUIREMENTS.—The Attorney
General or the Secretary of the Treasury (as the case may
be) shall notify the Governor of the State in which mem-
bers are to be deployed pursuant to an assignment under
subsection (a), and local governments in the deployment
area, of the deployment of the members to assist the Im-
migration and Naturalization Service or the United States
Customs Service (as the case may be) and the types of
tasks to be performed by the members.
‘‘(g) REIMBURSEMENT REQUIREMENT.—Section 377
of this title shall apply in the case of members assigned
under subsection (a).
‘‘(h) TERMINATION OF AUTHORITY.—No assignment
may be made or continued under subsection (a) after Sep-
tember 30, 2004.’’.
(b) COMMENCEMENT OF TRAINING PROGRAM.—The
training program required by subsection (b) of section
374a of title 10, United States Code, shall be established
as soon as practicable after the date of the enactment of
this Act.
(c) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 374 the following new
item:
‘‘374a. Assignment of members to assist border patrol and control.’’.
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Subtitle D—Reports
SEC. 1031. REQUIREMENT THAT DEPARTMENT OF DEFENSE
REPORTS TO CONGRESS BE ACCOMPANIED
BY ELECTRONIC VERSION.
(a) IN GENERAL.—Chapter 23 of title 10, United
States Code, is amended by inserting after the table of
sections the following new section:
‘‘§ 480. Department of Defense reports: submission in
electronic form
‘‘(a) REQUIREMENT.—Whenever the Secretary of De-
fense or any other official of the Department of Defense
is required by law to submit a report to Congress (or any
committee of either House of Congress), the Secretary or
other official shall provide to Congress (or each such com-
mittee) a copy of the report in an electronic medium.
‘‘(b) EXCEPTION.—Subsection (a) does not apply to
a report submitted in classified form.
‘‘(c) DEFINITION.—In this section, the term ‘report’
includes any certification, notification, or other commu-
nication in writing.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
before the item relating to section 481 the following new
item:
‘‘480. Department of Defense reports: submission in electronic form.’’.
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SEC. 1032. REPORT ON DEPARTMENT OF DEFENSE ROLE IN
HOMELAND SECURITY MATTERS.
The Secretary of Defense shall conduct a study on
the appropriate role for the Department of Defense in
homeland security matters. The Secretary shall submit to
the Congress a report on the results of that study at the
same time that the budget of the President for fiscal year
2003 is submitted to Congress.
SEC. 1033. REVISION OF ANNUAL REPORT TO CONGRESS
ON NATIONAL GUARD AND RESERVE COMPO-
NENT EQUIPMENT.
The text of section 10541 of title 10, United States
Code, is amended to read as follows:
‘‘(a) REQUIREMENT.—The Secretary of Defense shall
submit to Congress each year, not later than March 1,
a written report concerning the equipment of the National
Guard and the reserve components of the armed forces.
Each such report shall cover the current fiscal year and
the three succeeding years.
‘‘(b) MATTERS TO BE INCLUDED IN REPORT.—Each
report under this section shall include the following
(shown in the aggregate and separately for each reserve
component):
‘‘(1) A list of major items of equipment re-
quired and on-hand in the inventories of the reserve
components.
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‘‘(2) A list of major items of equipment that
are expected to be procured from commercial sources
or transferred from the active component to the re-
serve components.
‘‘(3) A statement of major items of equipment
in the inventories of the reserve components that are
substitutes for a required major item of equipment.
‘‘(4) A narrative explanation of the plan of the
Secretary concerned to equip each reserve compo-
nent, including an explanation of the plan to equip
units of the reserve components that are short major
items of equipment at the outset of war or a contin-
gency operation.
‘‘(5) A narrative discussing the current status
of the compatibility and interoperability of equip-
ment between the reserve components and the active
forces and the effect of that level of compatibility or
interoperability on combat effectiveness, together
with a plan to achieve full equipment compatibility
and interoperability.
‘‘(6) A narrative discussing modernization
shortfalls and maintenance backlogs within the re-
serve components and the effect of those shortfalls
on combat effectiveness.
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‘‘(7) A narrative discussing the overall age and
condition of equipment currently in the inventory of
the reserve components.
‘‘(c) MAJOR ITEMS OF EQUIPMENT.—In this section,
the term ‘major items of equipment’ includes ships, air-
craft, combat vehicles, and key combat support equipment.
‘‘(d) FORMAT AND LEVEL OF DETAIL.—Each report
under this section shall be expressed in the same format
and with the same level of detail as the information pre-
sented in the Future-Years Defense Program Procure-
ment Annex prepared by the Department of Defense.’’.
Subtitle E—Other Matters
SEC. 1041. DEPARTMENT OF DEFENSE GIFT AUTHORITIES.
(a) ADDITIONAL ITEMS AUTHORIZED TO BE DO-
NATED BY SECRETARY OF THE NAVY.—Section 7545 of
title 10, United States Code, is amended—
(1) in subsection (a)—
(A) by striking ‘‘Subject to’’ and all that
follows through ‘‘by him,’’ and inserting ‘‘AU-
THORITY TO MAKE LOANS AND GIFTS.—The
Secretary of the Navy’’;
(B) by striking ‘‘captured, condemned,’’
and all that follows through ‘‘to—’’ and insert-
ing ‘‘items described in subsection (b) that are
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not needed by the Department of the Navy to
any of the following:’’
(C) by capitalizing the first letter after the
paragraph designation in each of paragraphs
(1) through (12);
(D) by striking the semicolon at the end of
paragraphs (1) through (10) and inserting a
period;
(E) by striking ‘‘; or’’ at the end of para-
graph (11) and inserting a period;
(F) in paragraph (5), by striking ‘‘World
War I or World War II’’ and inserting ‘‘a for-
eign war’’;
(G) in paragraph (6), by striking ‘‘soldiers’
monument’’ and inserting ‘‘servicemen’s monu-
ment’’; and
(H) in paragraph (8), by inserting ‘‘or me-
morial’’ after ‘‘a museum’’;
(2) by redesignating subsections (b) and (c) as
subsections (d) and (e), respectively;
(3) by inserting after subsection (a) the fol-
lowing new subsections:
‘‘(b) ITEMS ELIGIBLE FOR DISPOSAL.—This section
applies to the following types of property held by the De-
partment of the Navy:
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‘‘(1) Captured, condemned, or obsolete ord-
nance material.
‘‘(2) Captured, condemned, or obsolete combat
or shipboard material.
‘‘(c) REGULATIONS.—A loan or gift made under this
section shall be subject to regulations prescribed by the
Secretary of the Navy and to regulations under section
205 of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 486).’’;
(4) in subsection (d) (as redesignated by para-
graph (2)), by inserting ‘‘MAINTENANCE OF THE
RECORDS OF THE GOVERNMENT.—’’ after the sub-
section designation;
(5) in subsection (e) (as redesignated by para-
graph (2)), by inserting ‘‘ALTERNATIVE AUTHORI-
TIES TO MAKE GIFTS OR LOANS.—’’ after the sub-
section designation; and
(6) by adding at the end the following new sub-
section:
‘‘(f) AUTHORITY TO TRANSFER A PORTION OF A
VESSEL.—The Secretary may lend, give, or otherwise
transfer any portion of the hull or superstructure of a ves-
sel stricken from the Naval Vessel Register and designated
for scrapping to a qualified organization specified in sub-
section (a). The terms and conditions of an agreement for
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the transfer of a portion of a vessel under this section shall
include a requirement that the transferee will maintain the
material conveyed in a condition that will not diminish the
historical value of the material or bring discredit upon the
Navy.’’.
(b) CONFORMING AMENDMENTS.—Section 2572(a)
of such title is amended—
(1) in paragraph (2), by striking ‘‘soldiers’
monument’’ and inserting ‘‘servicemen’s monu-
ment’’; and
(2) in paragraph (4), by inserting ‘‘or memo-
rial’’ after ‘‘An incorporated museum’’.
SEC. 1042. TERMINATION OF REFERENDUM REQUIREMENT
REGARDING CONTINUATION OF MILITARY
TRAINING ON ISLAND OF VIEQUES, PUERTO
RICO, AND IMPOSITION OF ADDITIONAL CON-
DITIONS ON CLOSURE OF LIVE-FIRE TRAIN-
ING RANGE.
(a) IN GENERAL.—Title XV of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001
(as enacted by Public Law 106–398; 114 Stat. 1654A–
348) is amended by striking sections 1503, 1504, and
1505 and inserting the following new sections:
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‘‘SEC. 1503. CONDITIONS ON CLOSURE OF VIEQUES NAVAL
TRAINING RANGE.
‘‘(a) REQUIRED CERTIFICATION.—The Secretary of
the Navy may close the Vieques Naval Training Range
on the island of Vieques, Puerto Rico, and discontinue
live-fire training at that range only if—
‘‘(1) the Chief of Naval Operations and the
Commandant of the Marine Corps jointly certify
that there is an alternative training facility that pro-
vides an equivalent or superior level of training for
units of the Navy and the Marine Corps stationed
or deployed in the eastern United States; and
‘‘(2) the new facility is available and fully capa-
ble of supporting such training immediately upon
cessation of live-fire training on Vieques.
‘‘(b) EQUIVALENT OR SUPERIOR LEVEL OF TRAIN-
ING DEFINED.—In this section, the term ‘equal or supe-
rior level of training’ refers to an ability by the Armed
Forces to conduct at a single location coordinated live-fire
training, including simultaneous large-scale tactical air
strikes, naval surface fire support and artillery, and am-
phibious landing operations, as was conducted at Vieques
Naval Training Range before April 19, 1999.
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‘‘SEC. 1504. NAVY RETENTION OF CLOSED VIEQUES NAVAL
TRAINING RANGE.
‘‘(a) RETENTION.—If the conditions specified in sec-
tion 1503(a) are satisfied and the Secretary of the Navy
terminates all Navy and Marine Corps training operations
on the island of Vieques, the Secretary of the Navy shall
retain administrative jurisdiction over the Live Impact
Area and all other Department of Defense real properties
on the eastern side of the island for possible reactivation
for training use, including live-fire training, in the event
a national emergency.
‘‘(b) ADMINISTRATION.—The Secretary of the Navy
may enter into a cooperative agreement with the Secretary
of the Interior to provide for management of the property
described in subsection (a), pending reactivation for train-
ing use, by appropriate agencies of the Department of the
Interior as follows:
‘‘(1) Management of the Live Impact Area as
a wilderness area under the Wilderness Act (16
U.S.C. 1131 et seq.), including a prohibition on pub-
lic access to the area.
‘‘(2) Management of the remaining property as
wildlife refuges under the National Wildlife Refuge
System Administration Act of 1966 (16 U.S.C.
668dd et seq.).
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‘‘(c) LIVE IMPACT AREA DEFINED.—In this section,
the term ‘Live Impact Area’ means the parcel of real prop-
erty, consisting of approximately 900 acres (more or less),
on the island of Vieques that is designated by the Sec-
retary of the Navy for targeting by live ordnance in the
training of forces of the Navy and Marine Corps.’’.
(b) CONFORMING AMENDMENT.—Section 1507(c) of
such Act is amended by striking ‘‘the issuance of a procla-
mation described in section 1504(a) or’’.
SEC. 1043. REPEAL OF LIMITATION ON REDUCTIONS IN
PEACEKEEPER ICBM MISSILES.
Subsection (a)(1) of section 1302 of the National De-
fense Authorization Act for Fiscal Year 1998 (Public Law
105–85) is amended by striking subparagraph (D).
SEC. 1044. TRANSFER OF VIETNAM ERA F–4 AIRCRAFT TO
NONPROFIT MUSEUM.
(a) AUTHORITY TO CONVEY.—The Secretary of the
Air Force may convey, without consideration, to the non-
profit National Aviation Museum and Foundation of Okla-
homa (in this section referred to as the ‘‘museum’’), all
right, title, and interest of the United States in and to
one surplus F–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.
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(b) CONDITION OF AIRCRAFT.—(1) The Secretary
may not convey ownership of an aircraft under subsection
(a) until the Secretary determines that the museum has
altered 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
was designed to have.
(2) The Secretary is not required to repair or alter
the condition of the aircraft before conveying 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 museum 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 museum 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 museum has conveyed an own-
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ership 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
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
museum.
(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.
SEC. 1045. BOMBER FORCE STRUCTURE.
(a) LIMITATION.—None of the funds available to the
Department of Defense for fiscal year 2002 may be obli-
gated or expended for retiring or dismantling any of the
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93 B–1B Lancer bombers in service as of June 1, 2001,
or for transferring or reassigning any of those aircraft
from the unit or the facility to which assigned as of that
date, until each of the following has occurred:
(1) The President transmits to Congress a na-
tional security strategy report under section 108 of
the National Security Act of 1947 (50 U.S.C. 4040)
as required by subsection (a)(3) of that section.
(2) The Secretary of Defense submits to the
Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Rep-
resentatives the Quadrennial Defense Review (QDR)
under section 118 of title 10, United States Code,
that under that section is required to be submitted
not later than September 30, 2001.
(3) The Secretary of Defense submits to the
Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Rep-
resentatives a report that provides—
(A) the changes in national security con-
siderations from those applicable to the air
force bomber studies conducted during 1992
and 1995 that warrant changes in the current
configuration of the bomber fleet; and
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(B) the plans of the Department of De-
fense for assigning new missions to the Na-
tional Guard units that currently fly B–1 air-
craft and for the transition of those units and
their facilities from the current B–1 mission to
their future missions.
(4) The Secretary of Defense submits to Con-
gress the annual report of the Secretary for 2001 re-
quired by section 113(c) of title 10, United States
Code.
(5) The Secretary of Defense submits to Con-
gress a report on the results of the Revised Nuclear
Posture Review conducted under section 1042 of the
Floyd D. Spence National Defense Authorization
Act for Fiscal Year 2001 (as enacted into law by
Public Law 106–398; 114 Stat. 1654A–262), as re-
quired by subsection (c) of that section.
(6) The Secretary of Defense conducts, and
submits to the Committee on Armed Services of the
Senate and Committee on Armed Services of the
House of Representatives a report on the results of,
a comprehensive study to determine—
(A) the role of manned bomber aircraft ap-
propriate to meet the requirements derived
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from the National Security Strategy report re-
ferred to in paragraph (1);
(B) the amount and type of bomber force
structure in the United States Air Force appro-
priate to meet the requirements derived from
the National Security Strategy report referred
to in paragraph (1); and
(C) the most cost effective allocation of
bomber force structure, factoring in use of the
reserve components of the Air Force consistent
with the requirements of the National Security
Strategy report referred to in paragraph (1).
(b) GAO STUDY AND REPORT.—The Comptroller
General of the United States shall conduct a study on the
same matters as specified in subparagraphs (A), (B), and
(C) of subsection (a)(6). The Comptroller General shall
submit to Congress a report containing the results of that
study not later than 180 days after the date of the submis-
sion of the report referred to in subsection (a)(6)
(c) DEFINITIONS.—For purposes of this section:
(1) AMOUNT
AND
TYPE
OF
BOMBER
FORCE
STRUCTURE.—The term ‘‘amount and type of bomb-
er force structure’’ means the required numbers of
B–2 aircraft, B–52 aircraft, and B–1 aircraft con-
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sistent with the requirements of the National Secu-
rity Strategy referred to in subsection (a)(1).
(2) COST EFFECTIVE ALLOCATION OF BOMBER
FORCE STRUCTURE.—The term ‘‘cost effective allo-
cation of bomber force structure’’ means the lowest
cost for stationing, maintaining, and operating the
bomber fleet fully consistent with the requirements
of the National Security Strategy referred to in sub-
section (a)(1).
SEC. 1046. TECHNICAL AND CLERICAL AMENDMENTS.
(a) TITLE 10, UNITED STATES CODE.—Title 10,
United States Code, is amended as follows:
(1) The tables of chapters at the beginning of
subtitle A, and at the beginning of part II of subtitle
A, are each amended by striking the period after
‘‘1111’’ in the item relating to chapter 56.
(2) Section 119(g)(2) is amended by striking
‘‘National Security Subcommittee’’ and inserting
‘‘Subcommittee on Defense’’.
(3) Section 130c(b)(3)(C) is amended by strik-
ing ‘‘subsection (f)’’ and inserting ‘‘subsection (g)’’.
(4) Section 176(a)(3) is amended by striking
‘‘Chief Medical Director’’ and inserting ‘‘Under Sec-
retary for Health’’.
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(5)(A) Section 503(c) is amended in paragraph
(6)(A)(i) by striking ‘‘14101(18)’’ and ‘‘8801(18)’’
and inserting ‘‘14101’’ and ‘‘8801’’, respectively.
(B) The amendment made by subparagraph (A)
shall take effect on July 1, 2002, immediately after
the amendment to such section effective that date by
section 563(a) of the Floyd D. Spence National De-
fense Authorization Act for Fiscal Year 2001 (as en-
acted by Public Law 106–398; 114 Stat. 131).
(6) Section 663(e) is amended—
(A) by striking ‘‘Armed Forces Staff Col-
lege’’ in paragraph (1) and inserting ‘‘Joint
Forces Staff College’’; and
(B) by striking ‘‘ARMED FORCES STAFF
COLLEGE’’ and inserting ‘‘JOINT
FORCES
STAFF COLLEGE’’.
(7) Section 667(17) is amended by striking
‘‘Armed Forces Staff College’’ both places it appears
and inserting ‘‘Joint Forces Staff College’’.
(8) Section 874(a) is amended by inserting
after ‘‘a sentence of confinement for life without eli-
gibility for parole’’ the following: ‘‘that is adjudged
for an offense committed after October 29, 2000’’.
(9) Section 1056(c)(2) is amended by striking
‘‘, not later than September 30, 1991,’’.
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(10) The table of sections at the beginning of
chapter 55 is amended by transferring the item re-
lating to section 1074i, as inserted by section 758(b)
of the Floyd D. Spence National Defense Authoriza-
tion Act for Fiscal Year 2001 (as enacted by Public
Law 106–398; 114 Stat. 1654A–200), so as to ap-
pear after the item relating to section 1074h.
(11) Section 1097a(e) is amended by striking
‘‘section 1072’’ and inserting ‘‘section 1072(2)’’.
(12) Sections 1111(a) and 1114(a)(1) are each
amended by striking ‘‘hereafter’’ and inserting
‘‘hereinafter’’.
(13) Section 1116 is amended—
(A) in subsection (a)(2)(B), by inserting
an open parenthesis before ‘‘other than for
training’’; and
(B) in subsection (b)(2)(D), by striking
‘‘section 111(c)(4)’’ and inserting ‘‘section
1115(c)(4)’’.
(14) The heading for subchapter II of chapter
75 is transferred within that chapter so as to appear
before the table of sections at the beginning of that
subchapter (as if the amendment made by section
721(c)(1) of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106–65; 113 Stat.
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694) had inserted that heading following section
1471 instead of before section 1475).
(15) Section 1611(d) is amended by striking
‘‘with’’.
(16) Section 2166(e)(9) is amended by striking
‘‘App. 2’’ and inserting ‘‘App.’’.
(17) Section 2323(a)(1)(C) is amended—
(A) by striking ‘‘section 1046(3)’’ and in-
serting ‘‘section 365(3)’’;
(B) by striking ‘‘20 U.S.C. 1135d–5(3)’’
and inserting ‘‘20 U.S.C. 1067k’’; and
(C) by striking ‘‘, which, for the purposes
of this section’’ and all that follows through the
period at the end and inserting a period.
(18) Section 2375(b) is amended by inserting
‘‘(41 U.S.C. 430)’’ after ‘‘section 34 of the Office of
Federal Procurement Policy Act’’.
(19) Section 2376(1) is amended by inserting
‘‘(41 U.S.C. 403)’’ after ‘‘section 4 of the Office of
Federal Procurement Policy Act’’.
(20) Section 2410f(a) is amended by inserting
after ‘‘inscription’’ the following: ‘‘, or another in-
scription with the same meaning,’’.
(21) Section 2461a(a)(2) is amended by strik-
ing ‘‘effeciency’’ and inserting ‘‘efficiency’’.
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(22) Section 2467 is amended—
(A) in subsection (a)(2)—
(i) by striking ‘‘, United States Code’’
in subparagraph (A); and
(ii) by striking ‘‘such’’ in subpara-
graphs (B) and (C); and
(B) in subsection (b)(2)(A), by striking
‘‘United States Code,’’.
(23) Section 2535 is amended—
(A) in subsection (a)—
(i) by striking ‘‘intent of Congress’’
and inserting ‘‘intent of Congress—’’;
(ii) by realigning clauses (1), (2), (3),
and (4) so that each such clause appears
as a separate paragraph indented two ems
from the left margin; and
(iii) in paragraph (1), as so realigned,
by striking ‘‘Armed Forces’’ and inserting
‘‘armed forces’’;
(B) in subsection (b)(1)—
(i) by striking ‘‘in this section, the
Secretary is authorized and directed to—’’
and inserting ‘‘in subsection (a), the Sec-
retary of Defense shall—’’; and
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(ii) by striking ‘‘defense industrial re-
serve’’ in subparagraph (A) and inserting
‘‘Defense Industrial Reserve’’; and
(C) in subsection (c)—
(i) by striking paragraph (1);
(ii) by redesignating paragraph (2) as
paragraph (1) and in that paragraph—
(I) by striking ‘‘means’’ and in-
serting ‘‘means—’’;
(II) by realigning clauses (A),
(B), and (C) so that each such clause
appears as a separate subparagraph
indented four ems from the left mar-
gin; and
(III) by inserting ‘‘and’’ at the
end of subparagraph (B), as so re-
aligned; and
(iii) by redesignating paragraph (3) as
paragraph (2).
(24) Section 2541c is amended by striking
‘‘subtitle’’ both places it appears in the matter pre-
ceding paragraph (1) and inserting ‘‘subchapter’’.
(25) The second section 2555, added by section
1203(a) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted
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by Public Law 106–398; 114 Stat. 1654A–324), is
redesignated as section 2565, and the item relating
to that section in the table of sections at the begin-
ning of chapter 152 is revised to conform to such re-
designation.
(26) The second section 2582, added by section
1(a) of Public Law 106–446 (114 Stat. 1932), is re-
designated as section 2583, and the item relating to
that section in the table of sections at the beginning
of chapter 153 is revised to conform to such redesig-
nation.
(27)(A) Section 2693(a) is amended—
(i) in the matter preceding paragraph (1),
by inserting ‘‘of Defense’’ after ‘‘Secretary’’;
and
(ii) in paragraph (3)—
(I) by inserting ‘‘to the Secretary of
Defense’’ after ‘‘certifies’’;
(II) by inserting ‘‘(42 U.S.C. 3762a)’’
after ‘‘of 1968’’; and
(III) by striking ‘‘to the public agen-
cies referred to in section 515(a)(1) or
515(a)(3) of title I of such Act’’ and in-
serting ‘‘to a public agency referred to in
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paragraph (1) or (3) of subsection (a) of
such section’’.
(B)(i) The heading of such section is amended
to read as follows:
‘‘§ 2693. Conveyance of certain property: Department
of Justice correctional options program’’.
(ii) The item relating to such section in the
table of sections at the beginning of chapter 159 is
amended to read as follows:
‘‘2693. Conveyance of certain property: Department of Justice correctional op-
tions program.’’.
(28) Section 3014(f)(3) is amended by striking
‘‘the number equal to’’ and all that follows and in-
serting ‘‘67.’’.
(29) Section 5014(f)(3) is amended by striking
‘‘the number equal to’’ and all that follows and in-
serting ‘‘74.’’.
(30) Section 8014(f)(3) is amended by striking
‘‘the number equal to’’ and all that follows and in-
serting ‘‘60.’’.
(31) Section 9783(e)(1) is amended by striking
‘‘40101(a)(2)’’ and inserting ‘‘40102(a)(2)’’.
(32) Section 12741(a)(2) is amended by strik-
ing ‘‘received’’ and inserting ‘‘receive’’.
(b) AMENDMENTS RELATING TO CHANGE IN TITLE
OF UNDER SECRETARY OF DEFENSE FOR ACQUISITION,
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TECHNOLOGY, AND LOGISTICS.—Title 10, United States
Code, is further amended as follows:
(1) Section 133a(b) is amended by striking
‘‘shall assist the Under Secretary of Defense for Ac-
quisition and Technology’’ and inserting ‘‘shall assist
the Under Secretary of Defense for Acquisition,
Technology, and Logistics’’.
(2) The following provisions are each amended
by striking ‘‘Under Secretary of Defense for Acquisi-
tion and Technology’’ and inserting ‘‘Under Sec-
retary of Defense for Acquisition, Technology, and
Logistics’’: 
sections 
139(c), 
139(f), 
171(a)(3),
179(a)(1), 
1702, 
1703, 
1707(a), 
1722(a),
1722(b)(2)(B), 
1735(c)(1), 
1737(c)(1),
1737(c)(2)(B), 1741(b), 1746(a), 1761(b)(4), 1763,
2302c(a)(2), 
2304(f)(1)(B)(iii), 
2304(f)(6)(B),
2311(c)(1), 
2311(c)(2)(B), 
2350a(b)(2),
2350a(e)(1)(A), 
2350a(e)(2)(B), 
2350a(f)(1),
2399(b)(3), 2435(b), 2435(d)(2), 2521(a), and
2534(i)(3).
(3)(A) The heading for section 1702 is amend-
ed to read as follows:
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‘‘§ 1702. Under Secretary of Defense for Acquisition,
Technology, and Logistics: authorities
and responsibilities’’.
(B) The item relating to section 1702 in the
table of sections at the beginning of subchapter I of
chapter 87 is amended to read as follows:
‘‘1702. Under Secretary of Defense for Acquisition, Technology, and Logistics:
authorities and responsibilities.’’.
(4) Section 2503(b) is amended by striking
‘‘Under Secretary of Defense for Acquisition’’ and
inserting ‘‘Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics’’.
(c) AMENDMENTS
TO
SUBSTITUTE
CALENDAR
DATES FOR DATE-OF-ENACTMENT REFERENCES.—Title
10, United States Code, is further amended as follows:
(1) Section 130c(d)(1) is amended by striking
‘‘the date of the enactment of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year
2001’’ and inserting ‘‘October 30, 2000,’’.
(2) Section 184(a) is amended by striking ‘‘the
date of the enactment of this section,’’ and inserting
‘‘October 30, 2000,’’.
(3) Section 986(a) is amended by striking ‘‘the
date of the enactment of this section,’’ and inserting
‘‘October 30, 2000,’’.
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(4) Section 1074g(a)(8) is amended by striking
‘‘the date of the enactment of this section’’ and in-
serting ‘‘October 5, 1999,’’.
(5) Section 1079(h)(2) is amended by striking
‘‘the date of the enactment of this paragraph’’ and
inserting ‘‘February 10, 1996,’’.
(6) Section 1206(5) is amended by striking
‘‘the date of the enactment of the National Defense
Authorization Act for Fiscal Year 2000,’’ and insert-
ing ‘‘October 5, 1999,’’.
(7) Section 1405(c)(1) is amended by striking
‘‘the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1995,’’ and insert-
ing ‘‘October 5, 1994,’’.
(8) Section 1407(f)(2) is amended by striking
‘‘the date of the enactment of this subsection—’’
and inserting ‘‘October 30, 2000—’’.
(9) Section 1408(d)(6) is amended by striking
‘‘the date of the enactment of this paragraph’’ and
inserting ‘‘August 22, 1996,’’.
(10) Section 1511(b) is amended by striking
‘‘the date of the enactment of this chapter.’’ and in-
serting ‘‘February 10, 1996.’’.
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(11) Section 2461a(b)(1) is amended by strik-
ing ‘‘the date of the enactment of this section,’’ and
inserting ‘‘October 30, 2000,’’.
(12) Section 4021(c)(1) is amended by striking
‘‘the date of the enactment of this section.’’ and in-
serting ‘‘November 29, 1989.’’.
(13) Section 6328(a) is amended by striking
‘‘the date of the enactment of this section’’ and in-
serting ‘‘February 10, 1996,’’.
(14) Section 7439 is amended—
(A) in subsection (a)(2), by striking ‘‘one
year after the date of the enactment of this sec-
tion,’’ and inserting ‘‘November 18, 1998,’’;
(B) in subsection (b)(1), by striking ‘‘the
date of the enactment of this section,’’ and in-
serting ‘‘November 18, 1997,’’;
(C) in subsection (b)(2), by striking ‘‘the
end of the one-year period beginning on the
date of the enactment of this section.’’ and in-
serting ‘‘November 18, 1998.’’; and
(D) in subsection (f)(2), by striking ‘‘the
date of the enactment of this section’’ and in-
serting ‘‘November 18, 1997,’’.
(15) Section 12533 is amended—
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(A) in each of subsections (b) and (c)(1),
by striking ‘‘the date of the enactment of this
section.’’ and inserting ‘‘November 18, 1997.’’;
and
(B) in each of subsections (c)(2) and (d),
by striking ‘‘the date of the enactment of this
section’’ and inserting ‘‘November 18, 1997,’’.
(16) Section 12733(3) is amended—
(A) in subparagraph (B), by striking ‘‘the
date of the enactment of the Floyd D. Spence
National Defense Authorization Act for Fiscal
Year 2001;’’ and inserting ‘‘October 30,
2000;’’; and
(B) in subparagraph (C), by striking ‘‘the
date of the enactment of the Floyd D. Spence
National Defense Authorization Act for Fiscal
Year 2001’’ and inserting ‘‘October 30, 2000,’’.
(d) AMENDMENTS RELATING TO CHANGE IN TITLE
OF MCKINNEY-VENTO HOMELESS ASSISTANCE ACT.—
The following provisions are each amended by striking
‘‘Stewart B. McKinney Homeless Assistance Act’’ and in-
serting ‘‘McKinney-Vento Homeless Assistance Act’’:
(1) Sections 2814(j)(2), 2854a(d)(2), and
2878(d)(4) of title 10, United States Code.
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(2) Sections 2905(b)(6)(A) and 2910(11) 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).
(3) Section 204(b)(6)(A) of the Defense Au-
thorization Amendments and Base Closure and Re-
alignment Act (Public Law 100–526; 10 U.S.C.
2687 note).
(4) Section 2915(c)(10) of the National De-
fense Authorization Act for Fiscal Year 1994 (10
U.S.C. 2687 note).
(5) Section 2(e)(4)(A) of the Base Closure
Community Redevelopment and Homeless Assistance
Act of 1994 (Public Law 103–421; 10 U.S.C. 2687
note).
(6) Section 1053(a) of the National Defense
Authorization Act for Fiscal Year 1997 (110 Stat.
2650).
(e) AMENDMENTS TO REPEAL OBSOLETE PROVI-
SIONS.—Title 10, United States Code, is further amended
as follows:
(1) Section 1144 is amended—
(A) in subsection (a)(3), by striking the
second sentence; and
(B) by striking subsection (e).
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(2) Section 1581(b) is amended—
(A) by striking ‘‘(1)’’ and all that follows
through ‘‘The Secretary of Defense shall de-
posit’’ and inserting ‘‘The Secretary of Defense
shall deposit’’; and
(B) by striking ‘‘on or after December 5,
1991,’’.
(3) Subsection (e) of section 1722 is repealed.
(4) Subsection 1732(a) is amended by striking
the second sentence.
(5) Section 1734 is amended—
(A) in subsection (b)(1)(B), by striking
‘‘on and after October 1, 1991,’’; and
(B) in subsection (e)(2), by striking the
last sentence.
(6)(A) Section 1736 is repealed.
(B) The table of sections at the beginning of
subchapter III of chapter 87 is amended by striking
the item relating to section 1736.
(7)(A) Sections 1762 and 1764 are repealed.
(B) The table of sections at the beginning of
subchapter V of chapter 87 is amended by striking
the items relating to sections 1762 and 1764.
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(8) Section 2112(a) is amended by striking ‘‘,
with the first class graduating not later than Sep-
tember 21, 1982’’.
(9) Section 2218(d)(1) is amended by striking
‘‘for fiscal years after fiscal year 1993’’.
(10)(A) Section 2468 is repealed.
(B) The table of sections at the beginning of
chapter 146 is amended by striking the item relating
to section 2468.
(11) Section 2832 is amended—
(A) by striking ‘‘(a)’’ before ‘‘The Sec-
retary of Defense’’; and
(B) by striking subsection (b).
(12) Section 7430(b)(2) is amended—
(A) by striking ‘‘at a price less than’’ and
all that follows through ‘‘the current sales
price’’ and inserting ‘‘at a price less than the
current sales price’’;
(B) by striking ‘‘; or’’ and inserting a pe-
riod; and
(C) by striking subparagraph (B).
(f) PUBLIC LAW 106–398.—Effective as of October
30, 2000, and as if included therein as enacted, the Floyd
D. Spence National Defense Authorization Act for Fiscal
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Year 2001 (as enacted into law by Public Law 106–398)
is amended as follows:
(1) Section 525(b)(1) (114 Stat. 1654A–109) is
amended by striking ‘‘subsection (c)’’ and inserting
‘‘subsections (a) and (b)’’.
(2) Section 1152(c)(2) (114 Stat. 1654A–323)
is amended by inserting ‘‘inserting’’ after ‘‘and’’.
(g) PUBLIC LAW 106–65.—Effective as of October
5, 1999, and as if included therein as enacted, the Na-
tional Defense Authorization Act for Fiscal Year 2000
(Public Law 106–65) is amended as follows:
(1) Section 531(b)(2)(A) (113 Stat. 602) is
amended by inserting ‘‘in subsection (a),’’ after
‘‘(A)’’.
(2) Section 549(a)(2) (113 Stat. 611) is
amended by striking ‘‘such chapter’’ and inserting
‘‘chapter 49 of title 10, United States Code,’’.
(3) Section 576(a)(3) (10 U.S.C. 1501 note;
113 Stat. 625) is amended by adding a period at the
end.
(4) Section 577(a)(2) (113 Stat. 625) is
amended by striking ‘‘bad conduct’’ in the first
quoted matter and inserting ‘‘bad-conduct’’.
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(5) Section 811(d)(3)(B)(v) (10 U.S.C. 2302
note; 113 Stat. 709) is amended by striking ‘‘Men-
tor-Protegee’’ and inserting ‘‘Mentor-Protege’’.
(6) Section 1052(b)(1) (113 Stat. 764) is
amended by striking ‘‘ ‘The Department’’ and insert-
ing ‘‘the ‘Department’’.
(7) Section 1053(a)(5) (10 U.S.C. 113 note;
113 Stat. 764) is amended by inserting ‘‘and’’ be-
fore ‘‘Marines’’.
(8) Section 1402(f)(2)(A) (22 U.S.C. 2778
note; 113 Stat. 799) is amended by striking ‘‘3201
note’’ and inserting ‘‘6305(4)’’.
(9) Section 2902(d) (10 U.S.C. 111 note; 113
Stat. 882) is amended by striking ‘‘section 2871(b)’’
and inserting ‘‘section 2881(b)’’.
(h) PUBLIC LAW 102–484.—The National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102–
484) is amended as follows:
(1) 
Section 
3161(c)(6)(C) 
(42 
U.S.C.
7274h(c)(6)(C)) is amended by striking ‘‘title IX of
the Public Works and Economic Development Act of
1965 (42 U.S.C. 3241 et seq.)’’ and inserting ‘‘title
II of the Public Works and Economic Development
Act of 1965 (42 U.S.C. 3141 et seq.)’’.
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(2) Section 4416(b)(1) (10 U.S.C. 12681 note)
is amended by striking ‘‘force reduction period’’ and
inserting ‘‘force reduction transition period’’.
(3) Section 4461(5) (10 U.S.C. 1143 note) is
amended by adding a period at the end.
(i) OTHER LAWS.—
(1) Section 1083(c) of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law
105–85; 10 U.S.C. 113 note) is amended by striking
‘‘NAMES’’ and inserting ‘‘NAME’’.
(2) Section 845(d)(1)(B)(ii) of the National De-
fense Authorization Act for Fiscal Year 1994 (Pub-
lic Law 103–160; 10 U.S.C. 2371 note) is amended
by inserting a closed parenthesis after ‘‘41 U.S.C.
414(3))’’.
(3) Section 1123(b) of the National Defense
Authorization Act for Fiscal Years 1990 and 1991
(Public Law 101–189; 103 Stat. 1556) is amended
by striking ‘‘Armed Forces Staff College’’ each place
it appears and inserting ‘‘Joint Forces Staff Col-
lege’’.
(4) Section 1412(g)(2)(C)(vii) of the Depart-
ment of Defense Authorization Act, 1986 (50 U.S.C.
1521(g)(2)(C)(vii)) is amended by striking ‘‘(c)(3)’’
and inserting ‘‘(c)(4)’’.