Text: H.R.5408 — 106th Congress (1999-2000)All Information (Except Text)

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Introduced in House (10/06/2000)

 
[Congressional Bills 106th Congress]
[From the U.S. Government Printing Office]
[H.R. 5408 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5408

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 6, 2000

  Mr. Spence introduced the following bill; which was referred to the 
   Committee on Armed Services, and in addition to the Committee on 
Commerce, Education and the Workforce, Government Reform, International 
   Relations, the Judiciary, Resources, Science, Transportation and 
  Infrastructure, Veterans' Affairs, Ways and Means, and Intelligence 
 (Permanent Select), for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001''.
    (b) Findings.--Congress makes the following findings:
            (1) Representative Floyd D. Spence of South Carolina was 
        elected to the House of Representatives in 1970, for service in 
        the 92d Congress, after serving in the South Carolina 
        legislature for 10 years, and he has been reelected to each 
        subsequent Congress.
            (2) Representative Spence came to Congress as a 
        distinguished veteran of service in the Armed Forces of the 
        United States.
            (3) Upon graduation from college in 1952, Representative 
        Spence was commissioned as an ensign in the United States Naval 
        Reserve. After entering active duty, he served with distinction 
        aboard the USS CARTER HALL and the USS LSM-397 during the 
        Korean War and later served as commanding officer of a Naval 
        Reserve Surface Division and as group commander of all Naval 
        Reserve units in Columbia, South Carolina. Representative 
        Spence retired from the Naval Reserve in 1988 in the grade of 
        captain, after 41 years of dedicated service.
            (4) Upon election to the House of Representatives, 
        Representative Spence became a member of the Committee on Armed 
        Services of that body. During 30 years of service on that 
        committee (4 years of which were served while the committee was 
        known as the Committee on National Security), Representative 
        Spence's contributions to the national defense and security of 
        the United States have been profound and long lasting.
            (5) Representative Spence served as chairman of that 
        committee while known as the Committee on National Security 
        during the 104th and 105th Congresses and serves as chairman of 
        that committee for the 106th Congress. In addition, 
        Representative Spence served as the ranking minority member of 
        the Committee on Armed Services during the 103d Congress.
            (6) Dozens of awards from active duty and reserve military, 
        veterans service, military retiree, and industry organizations 
        and associations have recognized the distinguished character of 
        Representative Spence's service to the Nation.
            (7) Representative Spence has been a leading figure in the 
        debate over many of the most critical military readiness, 
        health care, recruiting, and retention issues currently 
        confronting the Nation's military. His concern for the men and 
        women in uniform has been unwavering, and his accomplishments 
        in promoting and gaining support for those issues that preserve 
        the combat effectiveness, morale, and quality of life of the 
        Nation's military personnel have been unparalleled.
            (8) During his tenure as chairman of the Committee on 
        National Security and the Committee on Armed Services of the 
        House of Representatives, Representative Spence has--
                    (A) led efforts to identify and reverse the effect 
                that declining resources and rising commitments have 
                had on military quality of life for service members and 
                their families, on combat readiness, and on equipment 
                modernization, with a direct result of those diligent 
                efforts and of his willingness to be an outspoken 
                proponent for America's military being that Congress 
                has added nearly $50,000,000,000 to the President's 
                defense budgets over the past 5 years;
                    (B) been a leading proponent of the need to 
                expeditiously develop and field a national missile 
                defense to protect American citizens and forward 
                deployed military forces from growing ballistic missile 
                threats;
                    (C) advocated reversing the growing disparity 
                between actual military capability and the requirements 
                associated with the National Military Strategy; and
                    (D) led efforts in Congress to reform Department of 
                Defense acquisition and management headquarters and 
                infrastructure and business practices.
            (9) This Act is the 30th annual authorization bill for the 
        Department of Defense for which Representative Spence has taken 
        a major responsibility as a member of the Committee on Armed 
        Services of the House of Representatives (including 4 years 
        while that committee was known as the Committee on National 
        Security).
            (10) In light of the findings in the preceding paragraphs, 
        it is altogether fitting and proper that this Act be named in 
        honor of Representative Floyd D. Spence of South Carolina, as 
        provided in subsection (a).

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into three divisions as 
follows:
            (1) Division A--Department of Defense Authorizations.
            (2) Division B--Military Construction Authorizations.
            (3) Division C--Department of Energy National Security 
        Authorizations and Other Authorizations.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; findings.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Defense Health Program.
                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority.
Sec. 112. Increase in limitation on number of bunker defeat munitions 
                            that may be acquired.
Sec. 113. Reports and limitations relating to Army transformation.
                       Subtitle C--Navy Programs

Sec. 121. CVNX-1 nuclear aircraft carrier program.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. Virginia class submarine program.
Sec. 124. Limitation during fiscal year 2001 on changes in submarine 
                            force structure.
Sec. 125. ADC(X) ship program.
Sec. 126. Refueling and complex overhaul program of the U.S.S. Dwight 
                            D. Eisenhower.
Sec. 127. Analysis of certain shipbuilding programs.
Sec. 128. Helicopter support of FFG-7 frigates during fiscal year 2001.
Sec. 129. V-22 cockpit aircraft voice and flight data recorders.
                     Subtitle D--Air Force Programs

Sec. 131. Annual report on B-2 bomber.
Sec. 132. Report on modernization of Air National Guard F-16A units.
                       Subtitle E--Joint Programs

Sec. 141. Study of final assembly and checkout alternatives for the 
                            Joint Strike Fighter program.
                 Subtitle F--Chemical Demilitarization

Sec. 151. Pueblo Chemical Depot chemical agent and munitions 
                            destruction technologies.
Sec. 152. Report on assessment of need for Federal economic assistance 
                            for communities impacted by chemical 
                            demilitarization activities.
Sec. 153. Prohibition against disposal of non-stockpile chemical 
                            warfare material at Anniston chemical 
                            stockpile disposal facility.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

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

Sec. 211. Management of Space-Based Infrared System--Low.
Sec. 212. Joint Strike Fighter program.
Sec. 213. Fiscal year 2002 joint field experiment.
Sec. 214. Nuclear aircraft carrier design and production modeling.
Sec. 215. DD-21 class destroyer program.
Sec. 216. Limitation on Russian American Observation Satellites 
                            program.
Sec. 217. Joint biological defense program.
Sec. 218. Report on biological warfare defense vaccine research and 
                            development programs.
Sec. 219. Cost limitations applicable to F-22 aircraft program.
Sec. 220. Unmanned advanced capability combat aircraft and ground 
                            combat vehicles.
Sec. 221. Global Hawk high altitude endurance unmanned aerial vehicle.
Sec. 222. Army space control technology development.
                 Subtitle C--Ballistic Missile Defense

Sec. 231. Funding for fiscal year 2001.
Sec. 232. Reports on ballistic missile threat posed by North Korea.
Sec. 233. Plan to modify ballistic missile defense architecture.
Sec. 234. Management of Airborne Laser program.
                 Subtitle D--High Energy Laser Programs

Sec. 241. Funding.
Sec. 242. Implementation of High Energy Laser Master Plan.
Sec. 243. Designation of senior official for high energy laser 
                            programs.
Sec. 244. Site for Joint Technology Office.
Sec. 245. High energy laser infrastructure improvements.
Sec. 246. Cooperative programs and activities.
Sec. 247. Technology plan.
Sec. 248. Annual report.
Sec. 249. Definition.
Sec. 250. Review of defense-wide directed energy programs.
                       Subtitle E--Other Matters

Sec. 251. Reports on mobile offshore base concept and potential use for 
                            certain purposes of technologies associated 
                            with that concept.
Sec. 252. Air Force science and technology planning.
Sec. 253. Enhancement of authorities regarding education partnerships 
                            for purposes of encouraging scientific 
                            study.
Sec. 254. Recognition of those individuals instrumental to naval 
                            research efforts during the period from 
                            before World War II through the end of the 
                            Cold War.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Joint warfighting capabilities assessment teams.
                  Subtitle B--Environmental Provisions

Sec. 311. Establishment of additional environmental restoration account 
                            and use of accounts for operation and 
                            monitoring of environmental remedies.
Sec. 312. Certain environmental restoration activities.
Sec. 313. Annual reports under Strategic Environmental Research and 
                            Development Program.
Sec. 314. Payment of fines and penalties for environmental compliance 
                            at Fort Wainwright, Alaska.
Sec. 315. Payment of fines or penalties imposed for environmental 
                            compliance violations at other Department 
                            of Defense facilities.
Sec. 316. Reimbursement for certain costs in connection with the former 
                            Nansemond Ordnance Depot Site, Suffolk, 
                            Virginia.
Sec. 317. Necessity of military low-level flight training to protect 
                            national security and enhance military 
                            readiness.
Sec. 318. Ship disposal project.
Sec. 319. Defense Environmental Security Corporate Information 
                            Management Program.
Sec. 320. Report on Plasma Energy Pyrolysis System.
Sec. 321. Sense of Congress regarding environmental restoration of 
                            former defense manufacturing site, Santa 
                            Clarita, California.
  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Use of appropriated funds to cover operating expenses of 
                            commissary stores.
Sec. 332. Adjustment of sales prices of commissary store goods and 
                            services to cover certain expenses.
Sec. 333. Use of surcharges for construction and improvement of 
                            commissary stores.
Sec. 334. Inclusion of magazines and other periodicals as an authorized 
                            commissary merchandise category.
Sec. 335. Use of most economical distribution method for distilled 
                            spirits.
Sec. 336. Report on effects of availability of slot machines on United 
                            States military installations overseas.
        Subtitle D--Department of Defense Industrial Facilities

Sec. 341. Designation of Centers of Industrial and Technical Excellence 
                            and public-private partnerships to increase 
                            utilization of such centers.
Sec. 342. Unutilized and underutilized plant-capacity costs of United 
                            States arsenals.
Sec. 343. Arsenal support program initiative.
Sec. 344. Codification and improvement of armament retooling and 
                            manufacturing support programs.
     Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Inclusion of additional information in reports to Congress 
                            required before conversion of commercial or 
                            industrial type functions to contractor 
                            performance.
Sec. 352 Effects of outsourcing on overhead costs of Centers of 
                            Industrial and Technical Excellence and 
                            Army ammunition plants.
Sec. 353. Consolidation, restructuring, or reengineering of Department 
                            of Defense organizations, functions, or 
                            activities.
Sec. 354. Monitoring of savings resulting from workforce reductions as 
                            part of conversion of functions to 
                            performance by private sector or other 
                            strategic sourcing initiatives.
Sec. 355. Performance of emergency response functions at chemical 
                            weapons storage installations.
Sec. 356. Suspension of reorganization or relocation of Naval Audit 
                            Service.
                Subtitle F--Defense Dependents Education

Sec. 361. Eligibility of dependents of American Red Cross employees for 
                            enrollment in Department of Defense 
                            domestic dependent schools in Puerto Rico.
Sec. 362. Assistance to local educational agencies that benefit 
                            dependents of members of the Armed Forces 
                            and Department of Defense civilian 
                            employees.
Sec. 363. Impact aid for children with severe disabilities.
Sec. 364. Assistance for maintenance, repair, and renovation of school 
                            facilities that serve dependents of members 
                            of the Armed Forces and Department of 
                            Defense civilian employees.
                 Subtitle G--Military Readiness Issues

Sec. 371. Measuring cannibalization of parts, supplies, and equipment 
                            under readiness reporting system.
Sec. 372. Reporting requirements regarding transfers from high-priority 
                            readiness appropriations.
Sec. 373. Effects of worldwide contingency operations on readiness of 
                            military aircraft and equipment.
Sec. 374. Identification of requirements to reduce backlog in 
                            maintenance and repair of defense 
                            facilities.
Sec. 375. New methodology for preparing budget requests to satisfy Army 
                            readiness requirements.
Sec. 376. Review of AH-64 aircraft program.
Sec. 377. Report on Air Force spare and repair parts program for C-5 
                            aircraft.
                       Subtitle H--Other Matters

Sec. 381. Annual report on public sale of certain military equipment 
                            identified on United States Munitions List.
Sec. 382. Resale of armor-piercing ammunition disposed of by the Army.
Sec. 383. Reimbursement by civil air carriers for support provided at 
                            Johnston Atoll.
Sec. 384. Travel by Reserves on military aircraft.
Sec. 385. Overseas airlift service on Civil Reserve Air Fleet aircraft.
Sec. 386. Additions to plan for ensuring visibility over all in-transit 
                            end items and secondary items.
Sec. 387. Reauthorization of pilot program for acceptance and use of 
                            landing fees charged for use of domestic 
                            military airfields by civil aircraft.
Sec. 388. Extension of authority to sell certain aircraft for use in 
                            wildfire suppression.
Sec. 389. Damage to aviation facilities caused by alkali silica 
                            reactivity.
Sec. 390. Demonstration project to increase reserve component internet 
                            access and services in rural communities.
Sec. 391. Additional conditions on implementation of Defense Joint 
                            Accounting System.
Sec. 392. Report on Defense Travel System.
Sec. 393. Review of Department of Defense costs of maintaining 
                            historical properties.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Adjustment to end strength flexibility authority.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2001 limitation on non-dual status technicians.
Sec. 415. Increase in numbers of members in certain grades authorized 
                            to be on active duty in support of the 
                            Reserves.
       Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Authority for Secretary of Defense to suspend certain 
                            personnel strength limitations during war 
                            or national emergency.
Sec. 422. Exclusion from active component end strengths of certain 
                            reserve component members on active duty in 
                            support of the combatant commands.
Sec. 423. Exclusion of Army and Air Force medical and dental officers 
                            from limitation on strengths of reserve 
                            commissioned officers in grades below 
                            brigadier general.
Sec. 424. Authority for temporary increases in number of reserve 
                            component personnel serving on active duty 
                            or full-time national guard duty in certain 
                            grades.
              Subtitle D--Authorization of Appropriations

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

                  Subtitle A--Officer Personnel Policy

Sec. 501. Eligibility of Army and Air Force Reserve colonels and 
                            brigadier generals for position vacancy 
                            promotions.
Sec. 502. Flexibility in establishing promotion zones for Coast Guard 
                            Reserve officers.
Sec. 503. Time for release of reports of officer promotion selection 
                            boards.
Sec. 504. Clarification of requirements for composition of active-duty 
                            list selection boards when reserve officers 
                            are under consideration.
Sec. 505. Authority to issue posthumous commissions in the case of 
                            members dying before official 
                            recommendation for appointment or promotion 
                            is approved by Secretary concerned.
Sec. 506. Technical corrections relating to retired grade of reserve 
                            commissioned officers.
Sec. 507. Grade of chiefs of reserve components and directors of 
                            National Guard components.
Sec. 508. Revision to rules for entitlement to separation pay for 
                            regular and reserve officers.
             Subtitle B--Reserve Component Personnel Policy

Sec. 521. Exemption from active-duty list for reserve officers on 
                            active duty for a period of three years or 
                            less.
Sec. 522. Termination of application requirement for consideration of 
                            officers for continuation on the reserve 
                            active-status list.
Sec. 523. Authority to retain Air Force Reserve officers in all medical 
                            specialties until specified age.
Sec. 524. Authority for provision of legal services to reserve 
                            component members following release from 
                            active duty.
Sec. 525. Extension of involuntary civil service retirement date for 
                            certain reserve technicians.
                   Subtitle C--Education and Training

Sec. 531. Eligibility of children of Reserves for Presidential 
                            appointment to service academies.
Sec. 532. Selection of foreign students to receive instruction at 
                            service academies.
Sec. 533. Revision of college tuition assistance program for members of 
                            Marine Corps Platoon Leaders Class program.
Sec. 534. Review of allocation of Junior Reserve Officers Training 
                            Corps units among the services.
Sec. 535. Authority for Naval Postgraduate School to enroll certain 
                            defense industry civilians in specified 
                            programs relating to defense product 
                            development.
           Subtitle D--Decorations, Awards, and Commendations

Sec. 541. Limitation on award of Bronze Star to members in receipt of 
                            imminent danger pay.
Sec. 542. Consideration of proposals for posthumous or honorary 
                            promotions or appointments of members or 
                            former members of the Armed Forces and 
                            other qualified persons.
Sec. 543. Waiver of time limitations for award of certain decorations 
                            to certain persons.
Sec. 544. Addition of certain information to markers on graves 
                            containing remains of certain unknowns from 
                            the U.S.S. Arizona who died in the Japanese 
                            attack on Pearl Harbor on December 7, 1941.
Sec. 545. Sense of Congress on the court-martial conviction of Captain 
                            Charles Butler McVay, Commander of the 
                            U.S.S. Indianapolis, and on the courageous 
                            service of the crew of that vessel.
Sec. 546. Posthumous advancement on retired list of Rear Admiral 
                            Husband E. Kimmel and Major General Walter 
                            C. Short, senior officers in command in 
                            Hawaii on December 7, 1941.
Sec. 547. Commendation of citizens of Remy, France, for World War II 
                            actions.
Sec. 548. Authority for Award of the Medal of Honor to William H. 
                            Pitsenbarger for valor during the Vietnam 
                            War.
       Subtitle E--Military Justice and Legal Assistance Matters

Sec. 551. Recognition by States of military testamentary instruments.
Sec. 552. Policy concerning rights of individuals whose names have been 
                            entered into Department of Defense official 
                            criminal investigative reports.
Sec. 553. Limitation on Secretarial authority to grant clemency for 
                            military prisoners serving sentence of 
                            confinement for life without eligibility 
                            for parole.
Sec. 554. Authority for civilian special agents of military department 
                            criminal investigative organizations to 
                            execute warrants and make arrests.
Sec. 555. Requirement for verbatim record in certain special court-
                            martial cases.
Sec. 556. Commemoration of the 50th anniversary of the Uniform Code of 
                            Military Justice.
               Subtitle F--Matters Relating to Recruiting

Sec. 561. Army recruiting pilot programs.
Sec. 562. Enhancement of recruitment market research and advertising 
                            programs.
Sec. 563. Access to secondary schools for military recruiting purposes.
Sec. 564. Pilot program to enhance military recruiting by improving 
                            military awareness of school counselors and 
                            educators.
                       Subtitle G--Other Matters

Sec. 571. Extension to end of calendar year of expiration date for 
                            certain force drawdown transition 
                            authorities.
Sec. 572. Voluntary separation incentive.
Sec. 573. Congressional review period for assignment of women to duty 
                            on submarines and for any proposed 
                            reconfiguration or design of submarines to 
                            accommodate female crew members.
Sec. 574. Management and per diem requirements for members subject to 
                            lengthy or numerous deployments.
Sec. 575. Pay in lieu of allowance for funeral honors duty.
Sec. 576. Test of ability of reserve component intelligence units and 
                            personnel to meet current and emerging 
                            defense intelligence needs.
Sec. 577. National Guard Challenge Program.
Sec. 578. Study of use of civilian contractor pilots for operational 
                            support missions.
Sec. 579. Reimbursement for expenses incurred by members in connection 
                            with cancellation of leave on short notice.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2001.
Sec. 602. Additional restructuring of basic pay rates for enlisted 
                            members.
Sec. 603. Revised method for calculation of basic allowance for 
                            subsistence.
Sec. 604. Family subsistence supplemental allowance for low-income 
                            members of the Armed Forces.
Sec. 605. Basic allowance for housing.
Sec. 606. Additional amount available for fiscal year 2001 increase in 
                            basic allowance for housing inside the 
                            United States.
Sec. 607. Equitable treatment of junior enlisted members in computation 
                            of basic allowance for housing.
Sec. 608. Eligibility of members in grade E-4 to receive basic 
                            allowance for housing while on sea duty.
Sec. 609. Personal money allowance for senior enlisted members of the 
                            Armed Forces.
Sec. 610. Increased uniform allowances for officers.
Sec. 611. Cabinet-level authority to prescribe requirements and 
                            allowance for clothing of enlisted members.
Sec. 612. Increase in monthly subsistence allowance for members of 
                            precommissioning programs.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 621. Extension of certain bonuses and special pay authorities for 
                            reserve forces.
Sec. 622. Extension of certain bonuses and special pay authorities for 
                            nurse officer candidates, registered 
                            nurses, and nurse anesthetists.
Sec. 623. Extension of authorities relating to payment of other bonuses 
                            and special pays.
Sec. 624. Revision of enlistment bonus authority.
Sec. 625. Consistency of authorities for special pay for reserve 
                            medical and dental officers.
Sec. 626. Elimination of required congressional notification before 
                            implementation of certain special pay 
                            authority.
Sec. 627. Special pay for physician assistants of the Coast Guard.
Sec. 628. Authorization of special pay and accession bonus for pharmacy 
                            officers.
Sec. 629. Correction of references to Air Force veterinarians.
Sec. 630. Career sea pay.
Sec. 631. Increased maximum rate of special duty assignment pay.
Sec. 632. Entitlement of members of the National Guard and other 
                            reserves not on active duty to receive 
                            special duty assignment pay.
Sec. 633. Authorization of retention bonus for members of the Armed 
                            Forces qualified in a critical military 
                            skill.
Sec. 634. Entitlement of active duty officers of the Public Health 
                            Service Corps to special pays and bonuses 
                            of health professional officers of the 
                            Armed Forces.
            Subtitle C--Travel and Transportation Allowances

Sec. 641. Advance payments for temporary lodging of members and 
                            dependents.
Sec. 642. Additional transportation allowance regarding baggage and 
                            household effects.
Sec. 643. Incentive for shipping and storing household goods in less 
                            than average weights.
Sec. 644. Equitable dislocation allowances for junior enlisted members.
Sec. 645. Authority to reimburse military recruiters, Senior ROTC 
                            cadre, and military entrance processing 
                            personnel for certain parking expenses.
Sec. 646. Expansion of funded student travel for dependents.
          Subtitle D--Retirement and Survivor Benefit Matters

Sec. 651. Exception to high-36 month retired pay computation for 
                            members retired following a disciplinary 
                            reduction in grade.
Sec. 652. Increase in maximum number of Reserve retirement points that 
                            may be credited in any year.
Sec. 653. Retirement from active reserve service after regular 
                            retirement.
Sec. 654. Same treatment for Federal judges as for other Federal 
                            officials regarding payment of military 
                            retired pay.
Sec. 655. Reserve component Survivor Benefit Plan spousal consent 
                            requirement.
Sec. 656. Sense of Congress on increasing Survivor Benefit Plan 
                            annuities for surviving spouses age 62 or 
                            older.
Sec. 657. Revision to special compensation authority to repeal 
                            exclusion of uniformed services retirees in 
                            receipt of disability retired pay.
                       Subtitle E--Other Matters

Sec. 661. Participation in Thrift Savings Plan.
Sec. 662. Determinations of income eligibility for special supplemental 
                            food program.
Sec. 663. Billeting services for reserve members traveling for 
                            inactive-duty training.
Sec. 664. Settlement of claims for payments for unused accrued leave 
                            and for retired pay.
Sec. 665. Additional benefits and protections for personnel incurring 
                            injury, illness, or disease in the 
                            performance of funeral honors duty.
Sec. 666. Authority for extension of deadline for filing claims 
                            associated with capture and internment of 
                            certain persons by North Vietnam.
Sec. 667. Back pay for members of the Navy and Marine Corps selected 
                            for promotion while interned as prisoners 
                            of war during World War II.
Sec. 668. Sense of Congress concerning funding for reserve components.
                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Provision of domiciliary and custodial care for CHAMPUS 
                            beneficiaries and certain former CHAMPUS 
                            beneficiaries.
Sec. 702. Chiropractic health care for members on active duty.
Sec. 703. School-required physical examinations for certain minor 
                            dependents.
Sec. 704. Two-year extension of dental and medical benefits for 
                            surviving dependents of certain deceased 
                            members.
Sec. 705. Two-year extension of authority for use of contract 
                            physicians at military entrance processing 
                            stations and elsewhere outside medical 
                            treatment facilities.
Sec. 706. Medical and dental care for Medal of Honor recipients.
                     Subtitle B--Senior Health Care

Sec. 711. Implementation of TRICARE senior pharmacy program.
Sec. 712. Conditions for eligibility for CHAMPUS and TRICARE upon the 
                            attainment of age 65; expansion and 
                            modification of medicare subvention 
                            project.
Sec. 713. Accrual funding for health care for medicare-eligible 
                            retirees and dependents.
                      Subtitle C--TRICARE Program

Sec. 721. Improvement of access to health care under the TRICARE 
                            program.
Sec. 722. Additional beneficiaries under TRICARE Prime Remote program 
                            in the continental United States.
Sec. 723. Modernization of TRICARE business practices and increase of 
                            use of military treatment facilities.
Sec. 724. Extension of TRICARE managed care support contracts.
Sec. 725. Report on protections against health care providers seeking 
                            direct reimbursement from members of the 
                            uniformed services.
Sec. 726. Voluntary termination of enrollment in TRICARE retiree dental 
                            program.
Sec. 727. Claims processing improvements.
Sec. 728. Prior authorizations for certain referrals and 
                            nonavailability-of-health-care statements.
                   Subtitle D--Demonstration Projects

Sec. 731. Demonstration project for expanded access to mental health 
                            counselors.
Sec. 732. Teleradiology demonstration project.
Sec. 733. Health care management demonstration program.
   Subtitle E--Joint Initiatives With Department of Veterans Affairs

Sec. 741. VA-DOD sharing agreements for health services.
Sec. 742. Processes for patient safety in military and veterans health 
                            care systems.
Sec. 743. Cooperation in developing pharmaceutical identification 
                            technology.
                       Subtitle F--Other Matters

Sec. 751. Management of anthrax vaccine immunization program.
Sec. 752. Elimination of copayments for immediate family.
Sec. 753. Medical informatics.
Sec. 754. Patient care reporting and management system.
Sec. 755. Augmentation of Army Medical Department by detailing Reserve 
                            officers of the Public Health Service.
Sec. 756. Privacy of Department of Defense medical records.
Sec. 757. Authority to establish special locality-based reimbursement 
                            rates; reports.
Sec. 758. Reimbursement for certain travel expenses.
Sec. 759. Reduction of cap on payments.
Sec. 760. Training in health care management and administration.
Sec. 761. Studies on feasibility of sharing biomedical research 
                            facility.
Sec. 762. Study on comparability of coverage for physical, speech, and 
                            occupational therapies.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 801. Department of Defense acquisition pilot programs.
Sec. 802. Multiyear services contracts.
Sec. 803. Clarification and extension of authority to carry out certain 
                            prototype projects.
Sec. 804. Clarification of authority of Comptroller General to review 
                            records of participants in certain 
                            prototype projects.
Sec. 805. Extension of time period of limitation on procurement of ball 
                            bearings and roller bearings.
Sec. 806. Reporting requirements relating to multiyear contracts.
Sec. 807. Eligibility of small business concerns owned and controlled 
                            by women for assistance under the mentor-
                            protege program.
Sec. 808. Qualifications required for employment and assignment in 
                            contracting positions.
Sec. 809. Revision of authority for solutions-based contracting pilot 
                            program.
Sec. 810. Procurement notice of contracting opportunities through 
                            electronic means.
                   Subtitle B--Information Technology

Sec. 811. Acquisition and management of information technology.
Sec. 812. Tracking and management of information technology purchases.
Sec. 813. Appropriate use of requirements regarding experience and 
                            education of contractor personnel in the 
                            procurement of information technology 
                            services.
Sec. 814. Navy-Marine Corps Intranet.
Sec. 815. Sense of Congress regarding information technology systems 
                            for Guard and Reserve components.
             Subtitle C--Other Acquisition-Related Matters

Sec. 821. Improvements in procurements of services.
Sec. 822. Financial analysis of use of dual rates for quantifying 
                            overhead costs at Army ammunition plants.
Sec. 823. Repeal of prohibition on use of Department of Defense funds 
                            for procurement of nuclear-capable shipyard 
                            crane from a foreign source.
Sec. 824. Extension of waiver period for live-fire survivability 
                            testing for MH-47E and MH-60K helicopter 
                            modification programs.
Sec. 825. Compliance with existing law regarding purchases of equipment 
                            and products.
Sec. 826. Requirement to disregard certain agreements in awarding 
                            contracts for the purchase of firearms or 
                            ammunition.
                    Subtitle D--Studies and Reports

Sec. 831. Study on impact of foreign sourcing of systems on long-term 
                            military readiness and related industrial 
                            infrastructure.
Sec. 832. Study of policies and procedures for transfer of commercial 
                            activities.
Sec. 833. Study and report on practice of contract bundling in military 
                            construction contracts.
Sec. 834. Requirement to conduct study on contract bundling.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

   Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Overall supervision of Department of Defense activities for 
                            combating terrorism.
Sec. 902. Change of title of certain positions in the Headquarters, 
                            Marine Corps.
Sec. 903. Clarification of scope of Inspector General authorities under 
                            military whistleblower law.
Sec. 904. Policy to ensure conduct of science and technology programs 
                            so as to foster the transition of science 
                            and technology to higher levels of 
                            research, development, test, and 
                            evaluation.
Sec. 905.. Additional components of Chairman of the Joint Chiefs of 
                            staff annual report on combatant command 
                            requirements.
            Subtitle B--Department of Defense Organizations

Sec. 911. Western Hemisphere Institute for Security Cooperation.
Sec. 912. Department of Defense regional centers for security studies.
Sec. 913. Change in name of Armed Forces Staff College to Joint Forces 
                            Staff College.
Sec. 914. Special authority for administration of Navy Fisher Houses.
Sec. 915. Supervisory control of Armed Forces Retirement Home board by 
                            Secretary of Defense.
Sec. 916. Semiannual report on Joint Requirements Oversight Council 
                            reform initiative.
Sec. 917. Comptroller General review of operations of Defense Logistics 
                            Agency.
Sec. 918. Comptroller General review of operations of Defense 
                            Information Systems Agency.
                    Subtitle C--Information Security

Sec. 921. Institute for Defense Computer Security and Information 
                            Protection.
Sec. 922. Information security scholarship program.
                          Subtitle D--Reports

Sec. 931. Date of submittal of reports on shortfalls in equipment 
                            procurement and military construction for 
                            the reserve components in future-years 
                            defense programs.
Sec. 932. Report on number of personnel assigned to legislative liaison 
                            functions.
Sec. 933. Joint report on establishment of national collaborative 
                            information analysis capability.
Sec. 934. Network centric warfare.
Sec. 935. Report on Air Force Institute of Technology.
                       Subtitle E--Other Matters

Sec. 941. Flexibility in implementation of limitation on major 
                            Department of Defense headquarters 
                            activities personnel.
Sec. 942. Consolidation of certain Navy gift funds.
Sec. 943. Temporary authority to dispose of a gift previously accepted 
                            for the Naval Academy.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of emergency supplemental appropriations for 
                            fiscal year 2000.
Sec. 1004. United States contribution to NATO common-funded budgets in 
                            fiscal year 2001.
Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping 
                            operations for fiscal year 2001.
Sec. 1006. Requirement for prompt payment of contract vouchers.
Sec. 1007. Plan for prompt recording of obligations of funds for 
                            contractual transactions.
Sec. 1008. Electronic submission and processing of claims for contract 
                            payments.
Sec. 1009. Administrative offsets for overpayment of transportation 
                            costs.
Sec. 1010. Interest penalties for late payment of interim payments due 
                            under Government service contracts.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Revisions to national defense features program.
Sec. 1012. Sense of Congress on the naming of the CVN-77 aircraft 
                            carrier.
Sec. 1013. Authority to transfer naval vessels to certain foreign 
                            countries.
Sec. 1014. Authority to consent to retransfer of alternative former 
                            naval vessel by Government of Greece.
                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority to provide support for counter-drug 
                            activities of Colombia.
Sec. 1022. Report on Department of Defense expenditures to support 
                            foreign counter-drug activities.
Sec. 1023. Recommendations on expansion of support for counter-drug 
                            activities.
Sec. 1024. Review of riverine counter-drug program.
Sec. 1025. Report on tethered aerostat radar system.
Sec. 1026. Sense of Congress regarding use of Armed Forces for counter-
                            drug and counter-terrorism activities.
         Subtitle D--Counterterrorism and Domestic Preparedness

Sec. 1031. Preparedness of military installation first responders for 
                            incidents involving weapons of mass 
                            destruction.
Sec. 1032. Additional weapons of mass destruction civil support teams.
Sec. 1033. Authority to provide loan guarantees to improve domestic 
                            preparedness to combat cyberterrorism.
Sec. 1034. Report on the status of domestic preparedness against the 
                            threat of biological terrorism.
Sec. 1035.  Report on strategy, policies, and programs to combat 
                            domestic terrorism.
                      Subtitle E--Strategic Forces

Sec. 1041. Revised nuclear posture review.
Sec. 1042. Plan for the long-term sustainment and modernization of 
                            United States strategic nuclear forces.
Sec. 1043. Modification of scope of waiver authority for limitation on 
                            retirement or dismantlement of strategic 
                            nuclear delivery systems.
Sec. 1044. Report on the defeat of hardened and deeply buried targets.
Sec. 1045. Sense of Congress on the maintenance of the strategic 
                            nuclear triad.
            Subtitle F--Miscellaneous Reporting Requirements

Sec. 1051. Management review of working-capital fund activities.
Sec. 1052. Report on submarine rescue support vessels.
Sec. 1053. Report on Federal Government progress in developing 
                            information assurance strategies.
Sec. 1054. Department of Defense process for decisionmaking in cases of 
                            false claims.
           Subtitle G--Government Information Security Reform

Sec. 1061. Coordination of Federal information policy.
Sec. 1062. Responsibilities of certain agencies.
Sec. 1063. Relationship of Defense Information Assurance Program to 
                            Government-wide information security 
                            program.
Sec. 1064. Technical and conforming amendments.
Sec. 1065. Effective date.
                      Subtitle H--Security Matters

Sec. 1071. Limitation on granting of security clearances.
Sec. 1072. Process for prioritizing background investigations for 
                            security clearances for Department of 
                            Defense personnel and defense contractor 
                            personnel.
Sec. 1073. Authority to withhold certain sensitive information from 
                            public disclosure.
Sec. 1074. Expansion of authority to exempt geodetic products of the 
                            Department of Defense from public 
                            disclosure.
Sec. 1075. Expenditures for declassification activities.
Sec. 1076. Enhanced access to criminal history record information for 
                            national security and other purposes
Sec. 1077. Two-year extension of authority to engage in commercial 
                            activities as security for intelligence 
                            collection activities.
Sec. 1078. Coordination of nuclear weapons secrecy policies and 
                            consideration of health of workers at 
                            former Department of Defense nuclear 
                            facilities.
                       Subtitle I--Other Matters

Sec. 1081. Funds for administrative expenses under Defense Export Loan 
                            Guarantee program.
Sec. 1082. Transit pass program for Department of Defense personnel in 
                            poor air quality areas.
Sec. 1083. Transfer of Vietnam era TA-4 aircraft to nonprofit 
                            foundation.
Sec. 1084. Transfer of 19th century cannon to museum.
Sec. 1085. Fees for providing historical information to the public.
Sec. 1086. Grants to American Red Cross for Armed Forces emergency 
                            services.
Sec. 1087. Technical and clerical amendments.
Sec. 1088. Maximum size of parcel post packages transported overseas 
                            for Armed Forces post offices.
Sec. 1089. Sense of Congress regarding tax treatment of members 
                            receiving special pay for duty subject to 
                            hostile fire or imminent danger.
Sec. 1090. Organization and management of Civil Air Patrol.
Sec. 1091. Additional duties for Commission to Assess United States 
                            National Security Space Management and 
                            Organization.
Sec. 1092. Commission on the Future of the United States Aerospace 
                            Industry.
Sec. 1093. Drug addiction treatment.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

          Subtitle A--Civilian Personnel Management Generally

Sec. 1101. Employment and compensation of employees for temporary 
                            organizations established by law or 
                            Executive order.
Sec. 1102. Assistive technology accommodations program.
Sec. 1103. Extension of authority for voluntary separations in 
                            reductions in force.
Sec. 1104. Electronic maintenance of performance appraisal systems.
Sec. 1105. Study on civilian personnel services.
              Subtitle B--Demonstration and Pilot Programs

Sec. 1111. Pilot program for reengineering the equal employment 
                            opportunity complaint process.
Sec. 1112. Work safety demonstration program.
Sec. 1113. Extension, expansion, and revision of authority for 
                            experimental personnel program for 
                            scientific and technical personnel.
Sec. 1114. Clarification of personnel management authority under 
                            personnel demonstration project.
                   Subtitle C--Educational Assistance

Sec. 1121. Restructuring the restriction on degree training.
Sec. 1122. Student loan repayment programs.
Sec. 1123. Extension of authority for tuition reimbursement and 
                            training for civilian employees in the 
                            defense acquisition workforce.
                       Subtitle D--Other Benefits

Sec. 1131. Additional special pay for foreign language proficiency 
                            beneficial for United States national 
                            security interests.
Sec. 1132. Approval authority for cash awards in excess of $10,000.
Sec. 1133. Leave for crews of certain vessels.
Sec. 1134. Life insurance for emergency essential Department of Defense 
                            employees.
              Subtitle E--Intelligence Civilian Personnel

Sec. 1141. Expansion of defense civilian intelligence personnel system 
                            positions.
Sec. 1142. Increase in number of positions authorized for the Defense 
                            Intelligence Senior Executive Service.
  Subtitle F--Voluntary Separation Incentive Pay and Early Retirement 
                               Authority

Sec. 1151. Extension, revision, and expansion of authorities for use of 
                            voluntary separation incentive pay and 
                            voluntary early retirement.
Sec. 1152. Department of Defense employee voluntary early retirement 
                            authority.
Sec. 1153. Limitations.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

              Subtitle A--Matters Related to Arms Control

Sec. 1201. Support of United Nations-sponsored efforts to inspect and 
                            monitor Iraqi weapons activities.
Sec. 1202. Support of consultations on Arab and Israeli arms control 
                            and regional security issues.
Sec. 1203. Furnishing of nuclear test monitoring equipment to foreign 
                            governments.
Sec. 1204. Additional matters for annual report on transfers of 
                            militarily sensitive technology to 
                            countries and entities of concern.
              Subtitle B--Matters Relating to the Balkans

Sec. 1211. Annual report assessing effect of continued operations in 
                            the Balkans region on readiness to execute 
                            the national military strategy.
Sec. 1212. Situation in the Balkans.
Sec. 1213. Semiannual report on Kosovo peacekeeping.
Subtitle C--North Atlantic Treaty Organization and United States Forces 
                               in Europe

Sec. 1221. NATO fair burdensharing.
Sec. 1222. Repeal of restriction preventing cooperative airlift support 
                            through acquisition and cross-servicing 
                            agreements.
Sec. 1223. GAO study on the benefits and costs of United States 
                            military engagement in Europe.
                       Subtitle D--Other Matters

Sec. 1231. Joint data exchange center with Russian Federation on early 
                            warning systems and notification of 
                            ballistic missile launches.
Sec. 1232. Report on sharing and exchange of ballistic missile launch 
                            early warning data.
Sec. 1233. Annual report of Communist Chinese military companies 
                            operating in the United States.
Sec. 1234. Adjustment of composite theoretical performance levels of 
                            high performance computers.
Sec. 1235. Increased authority to provide health care services as 
                            humanitarian and civic assistance.
Sec. 1236. Sense of Congress regarding the use of children as soldiers.
Sec. 1237. Sense of Congress regarding undersea rescue and recovery.
Sec. 1238. United States-China Security Review Commission.
  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1301. Specification of cooperative threat reduction programs and 
                            funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for elimination of conventional 
                            weapons.
Sec. 1304. Limitations on use of funds for fissile material storage 
                            facility.
Sec. 1305. Limitation on use of funds to support warhead dismantlement 
                            processing.
Sec. 1306. Agreement on nuclear weapons storage sites.
Sec. 1307. Limitation on use of funds for construction of fossil fuel 
                            energy plants; report.
Sec. 1308. Reports on activities and assistance under cooperative 
                            threat reduction programs.
Sec. 1309. Russian chemical weapons elimination.
Sec. 1310. Limitation on use of funds for elimination of weapons grade 
                            plutonium program.
Sec. 1311. Report on audits of Cooperative Threat Reduction programs.
 TITLE XIV--COMMISSION TO ASSESS THE THREAT TO THE UNITED STATES FROM 
                   ELECTROMAGNETIC PULSE (EMP) ATTACK

Sec. 1401. Establishment of commission.
Sec. 1402. Duties of commission.
Sec. 1403. Reports.
Sec. 1404. Powers.
Sec. 1405. Commission procedures.
Sec. 1406. Personnel matters.
Sec. 1407. Miscellaneous administrative provisions.
Sec. 1408. Funding.
Sec. 1409. Termination of the commission.
    TITLE XV--NAVY ACTIVITIES ON THE ISLAND OF VIEQUES, PUERTO RICO

Sec. 1501. Assistance for economic growth on Vieques.
Sec. 1502. Conveyance of Naval Ammunition Support Detachment, Vieques 
                            Island.
Sec. 1503. Determination regarding continuation of Navy training.
Sec. 1504. Actions if training is approved.
Sec. 1505. Requirements if training is not approved or mandate for 
                            referendum is vitiated.
Sec. 1506. Certain properties exempt from conveyance or transfer.
Sec. 1507. Moratorium on improvements at Fort Buchanan.
Sec. 1508. Transfer and management of Conservation Zones.
     TITLE XVI--GI BILL EDUCATIONAL ASSISTANCE AND VETERANS CLAIMS 
                               ASSISTANCE

                Subtitle A--Veterans Education Benefits

Sec. 1601. Additional opportunity for certain VEAP participants to 
                            enroll in basic educational assistance 
                            under Montgomery GI Bill.
Sec. 1602. Modification of authority to pay tuition for off-duty 
                            training and education.
                 Subtitle B--Veterans Claims Assistance

Sec. 1611. Clarification of Department of Veterans Affairs duty to 
                            assist.
                 TITLE XVII--ASSISTANCE TO FIREFIGHTERS

Sec. 1701. Firefighter assistance.
Sec. 1702. Volunteer fire assistance program.
Sec. 1703. Burn research.
Sec. 1704. Study and demonstration projects regarding cases of 
                            hepatitis C among certain emergency 
                            response employees.
Sec. 1705. Report on progress on spectrum sharing.
Sec. 1706. Sale or donation of excess defense property to assist 
                            firefighting agencies.
Sec. 1707. Identification of defense technologies suitable for use, or 
                            conversion for use, in providing fire and 
                            emergency medical services.
                        TITLE XVIII--IMPACT AID

Sec. 1801. Short title.
Sec. 1802. Purpose.
Sec. 1803. Payments relating to Federal acquisition of real property.
Sec. 1804. Payments for eligible federally connected children.
Sec. 1805. Maximum amount of basic support payments.
Sec. 1806. Basic support payments for heavily impacted local 
                            educational agencies.
Sec. 1807. Basic support payments for local educational agencies 
                            affected by removal of Federal property.
Sec. 1808. Additional payments for local educational agencies with high 
                            concentrations of children with severe 
                            disabilities.
Sec. 1809. Application for payments under sections 8002 and 8003.
Sec. 1810. Payments for sudden and substantial increases in attendance 
                            of military dependents.
Sec. 1811. Construction.
Sec. 1812. State consideration of payments in providing State aid.
Sec. 1813. Federal administration.
Sec. 1814. Administrative hearings and judicial review.
Sec. 1815. Forgiveness of overpayments.
Sec. 1816. Definitions.
Sec. 1817. Authorization of appropriations.
Sec. 1818. Effective date.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
                            2000 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
                            1999 projects.
Sec. 2107. Modification of authority to carry out fiscal year 1998 
                            project.
Sec. 2108. Authority to accept funds for realignment of certain 
                            military construction project, Fort 
                            Campbell, Kentucky.
                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out fiscal year 1997 
                            project at Marine Corps Combat Development 
                            Command, Quantico, Virginia.
                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
                            projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Modification of authority to carry out certain fiscal year 
                            1990 project.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
                            acquisition projects.
Sec. 2602. Authority to contribute to construction of airport tower, 
                            Cheyenne Airport, Cheyenne, Wyoming.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                            specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1998 
                            projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1997 
                            projects.
Sec. 2704. Effective date.
                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

Sec. 2801. Joint use military construction projects.
Sec. 2802. Exclusion of certain costs from determination of 
                            applicability of limitation on use of funds 
                            for improvement of family housing.
Sec. 2803. Revision of space limitations for military family housing.
Sec. 2804. Modification of lease authority for high-cost military 
                            family housing.
Sec. 2805. Provision of utilities and services under alternative 
                            authority for acquisition and improvement 
                            of military housing.
Sec. 2806. Extension of alternative authority for acquisition and 
                            improvement of military housing.
Sec. 2807. Expansion of definition of armory to include readiness 
                            centers.
        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in threshold for notice and wait requirements for 
                            real property transactions.
Sec. 2812. Enhancement of authority of military departments to lease 
                            non-excess property.
Sec. 2813. Conveyance authority regarding utility systems of military 
                            departments.
Sec. 2814. Permanent conveyance authority to improve property 
                            management.
            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Scope of agreements to transfer property to redevelopment 
                            authorities without consideration under the 
                            base closure laws.
                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Transfer of jurisdiction, Rock Island Arsenal, Illinois.
Sec. 2832. Land conveyance, Army Reserve Center, Galesburg, Illinois.
Sec. 2833. Land conveyance, Charles Melvin Price Support Center, 
                            Illinois.
Sec. 2834. Land conveyance, Fort Riley, Kansas.
Sec. 2835. Land conveyance, Fort Polk, Louisiana.
Sec. 2836. Land conveyance, Army Reserve Center, Winona, Minnesota.
Sec. 2837. Land conveyance, Fort Dix, New Jersey.
Sec. 2838. Land conveyance, Nike Site 43, Elrama, Pennsylvania.
Sec. 2839. Land exchange, Army Reserve Local Training Center, 
                            Chattanooga, Tennessee.
Sec. 2840. Land exchange, Fort Hood, Texas.
Sec. 2841. Land conveyance, Fort Pickett, Virginia.
Sec. 2842. Land conveyance, Fort Lawton, Washington.
Sec. 2843. Land conveyance, Vancouver Barracks, Washington.
                       Part II--Navy Conveyances

Sec. 2846. Modification of land conveyance, Marine Corps Air Station, 
                            El Toro, California.
Sec. 2847. Modification of authority for Oxnard Harbor District, Port 
                            Hueneme, California, to use certain Navy 
                            property.
Sec. 2848. Transfer of jurisdiction, Marine Corps Air Station, Miramar, 
                            California.
Sec. 2849. Land exchange, Marine Corps Recruit Depot, San Diego, 
                            California.
Sec. 2850. Lease of property, Naval Air Station, Pensacola, Florida.
Sec. 2851. Land conveyance, Naval Reserve Center, Tampa, Florida.
Sec. 2852. Modification of land conveyance, Defense Fuel Supply Point, 
                            Casco Bay, Maine.
Sec. 2853. Land conveyance, Naval Computer and Telecommunications 
                            Station, Cutler, Maine.
Sec. 2854. Modification of land conveyance authority, former Naval 
                            Training Center, Bainbridge, Cecil County, 
                            Maryland.
Sec. 2855. Land conveyance, Marine Corps Base, Camp Lejeune, North 
                            Carolina.
Sec. 2856. Land exchange, Naval Air Reserve Center, Columbus, Ohio.
Sec. 2857. Land conveyance, Naval Station, Bremerton, Washington.
                    Part III--Air Force Conveyances

Sec. 2861. Land conveyance, Los Angeles Air Force Base, California.
Sec. 2862. Land conveyance, Point Arena Air Force Station, California.
Sec. 2863. Land conveyance, Lowry Air Force Base, Colorado.
Sec. 2864. Land conveyance, Wright Patterson Air Force Base, Ohio.
Sec. 2865. Modification of land conveyance, Ellsworth Air Force Base, 
                            South Dakota.
Sec. 2866. Land conveyance, Mukilteo Tank Farm, Everett, Washington.
                       Part IV--Other Conveyances

Sec. 2871Land conveyance, Army and Air Force Exchange Service property, 
                            Farmers Branch, Texas.
Sec. 2872Land conveyance, former National Ground Intelligence Center, 
                            Charlottesville, Virginia.
                       Subtitle E--Other Matters

Sec. 2881. Relation of easement authority to leased parkland, Marine 
                            Corps Base, Camp Pendleton, California.
Sec. 2882. Extension of demonstration project for purchase of fire, 
                            security, police, public works, and utility 
                            services from local government agencies.
Sec. 2883. Acceptance and use of gifts for construction of third 
                            building at United States Air Force Museum, 
                            Wright-Patterson Air Force Base, Ohio.
Sec. 2884. Development of Marine Corps Heritage Center at Marine Corps 
                            Base, Quantico, Virginia.
Sec. 2885. Activities relating to greenbelt at Fallon Naval Air 
                            Station, Nevada.
Sec. 2886. Establishment of World War II memorial on Guam.
Sec. 2887. Naming of Army missile testing range at Kwajalein Atoll as 
                            the Ronald Reagan Ballistic Missile Defense 
                            Test Site at Kwajalein Atoll.
Sec. 2888. Designation of building at Fort Belvoir, Virginia, in honor 
                            of Andrew T. McNamara.
Sec. 2889. Designation of Balboa Naval Hospital, San Diego, California, 
                            in honor of Bob Wilson, a former member of 
                            the House of Representatives.
Sec. 2890. Sense of Congress regarding importance of expansion of 
                            National Training Center, Fort Irwin, 
                            California.
Sec. 2891. Sense of Congress regarding land transfers at Melrose Range, 
                            New Mexico, and Yakima Training Center, 
                            Washington.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense environmental management privatization.
Sec. 3105. Defense nuclear waste disposal.
                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
                            activities.
Sec. 3127. Funds available for all national security programs of the 
                            Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.
   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Funding for termination costs of River Protection Project, 
                            Richland, Washington.
Sec. 3132. Enhanced cooperation between National Nuclear Security 
                            Administration and Ballistic Missile 
                            Defense Organization.
Sec. 3133. Reprogramming of funds available for infrastructure upgrades 
                            or maintenance in certain accounts of the 
                            National Nuclear Security Administration.
Sec. 3134. Adjustment of composite theoretical performance levels for 
                            post-shipment verification reports on 
                            advanced supercomputer sales to certain 
                            foreign nations.
Sec. 3135. Modification of counterintelligence polygraph program.
Sec. 3136. Employee incentives for employees at closure project 
                            facilities.
Sec. 3137. Continuation of processing, treatment, and disposition of 
                            legacy nuclear materials.
Sec. 3138. Limitation on use of certain funds pending certification of 
                            compliance with Formerly Utilized Sites 
                            Remedial Action Program funding 
                            prohibition.
Sec. 3139. Conceptual design for Subsurface Geosciences Laboratory at 
                            Idaho National Engineering and 
                            Environmental Laboratory, Idaho Falls, 
                            Idaho.
Sec. 3140. Report on National Ignition Facility, Lawrence Livermore 
                            National Laboratory, Livermore, California.
Sec. 3141. River Protection Project, Richland, Washington.
Sec. 3142. Report on tank waste remediation system, Hanford 
                            Reservation, Richland, Washington.
Subtitle D--Matters Relating to Management of National Nuclear Security 
                             Administration

Sec. 3151. Term of office of person first appointed as Under Secretary 
                            for Nuclear Security of the Department of 
                            Energy.
Sec. 3152. Membership of Under Secretary for Nuclear Security on the 
                            Joint Nuclear Weapons Council.
Sec. 3153. Organization plan for field offices of the National Nuclear 
                            Security Administration.
Sec. 3154. Required contents of future-years nuclear security program.
Sec. 3155. Future-years nuclear security program for fiscal year 2001.
Sec. 3156. Engineering and manufacturing research, development, and 
                            demonstration by plant managers of certain 
                            nuclear weapons production plants.
Sec. 3157. Prohibition on individuals engaging in concurrent service or 
                            duties within National Nuclear Security 
                            Administration and outside that 
                            Administration but within Department of 
                            Energy.
Sec. 3158. Annual plan for obligation of funds of the National Nuclear 
                            Security Administration.
Sec. 3159. Authority to reorganize National Nuclear Security 
                            Administration.
       Subtitle E--National Laboratories Partnership Improvement

Sec. 3161. Technology Infrastructure Pilot Program.
Sec. 3162. Report on small business participation in National Nuclear 
                            Security Administration activities.
Sec. 3163. Study and report related to improving mission effectiveness, 
                            partnerships, and technology transfer at 
                            national security laboratories and nuclear 
                            weapons production facilities.
Sec. 3164. Report on effectiveness of National Nuclear Security 
                            Administration technology development 
                            partnerships with non-Federal entities.
Sec. 3165. Definitions.
    Subtitle F--Matters Relating to Defense Nuclear Nonproliferation

Sec. 3171. Annual report on status of nuclear materials protection, 
                            control, and accounting program.
Sec. 3172. Nuclear Cities Initiative.
Sec. 3173. Department of Energy nonproliferation monitoring.
Sec. 3174. Sense of Congress on the need for coordination of 
                            nonproliferation programs.
Sec. 3175. Limitation on use of funds for International Nuclear Safety 
                            Program.
                       Subtitle G--Other Matters

Sec. 3191. Extension of authority for appointment of certain 
                            scientific, engineering, and technical 
                            personnel.
Sec. 3192. Biennial report containing update on nuclear test readiness 
                            postures.
Sec. 3193. Frequency of reports on inadvertent releases of Restricted 
                            Data and Formerly Restricted Data.
Sec. 3194. Form of certifications regarding the safety or reliability 
                            of the nuclear weapons stockpile.
Sec. 3195. Authority to provide certificate of commendation to 
                            Department of Energy and contractor 
                            employees for exemplary service in 
                            stockpile stewardship and security.
Sec. 3196. Cooperative research and development agreements for 
                            government-owned, contractor-operated 
                            laboratories.
Sec. 3197. Office of Arctic Energy.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of stockpile funds.
Sec. 3302. Increased receipts under prior disposal authority.
Sec. 3303. Disposal of titanium.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Minimum price of petroleum sold from certain naval petroleum 
                            reserves.
Sec. 3402. Repeal of authority to contract for cooperative or unit 
                            plans affecting Naval Petroleum Reserve 
                            Numbered 1.
Sec. 3403. Disposal of Oil Shale Reserve Numbered 2.
                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2001.
Sec. 3502.. Scrapping of National Defense Reserve Fleet vessels.
Sec. 3503. Authority to convey National Defense Reserve Fleet vessel, 
                            Glacier.
Sec. 3504. Maritime intermodal research.
Sec. 3505. Maritime research and technology development.
Sec. 3506. Reporting of administered and oversight funds.
TITLE XXXVI--ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION PROGRAM

Sec. 3601. Short title.
Sec. 3602. Findings; sense of Congress.
Subtitle A--Establishment of Compensation Program and Compensation Fund

Sec. 3611. Establishment of Energy Employees Occupational Illness 
                            Compensation Program.
Sec. 3612. Establishment of Energy Employees Occupational Illness 
                            Compensation Fund.
Sec. 3613. Legislative proposal.
Sec. 3614. Authorization of appropriations.
                   Subtitle B--Program Administration

Sec. 3621. Definitions for program administration.
Sec. 3622. Expansion of list of beryllium vendors.
Sec. 3623. Exposure in the performance of duty.
Sec. 3624. Advisory Board on Radiation and Worker Health.
Sec. 3625. Responsibilities of Secretary of Health and Human Services.
Sec. 3626. Designation of additional members of Special Exposure 
                            Cohort.
Sec. 3627. Separate treatment of chronic silicosis.
Sec. 3628. Compensation and benefits to be provided.
Sec. 3629. Medical benefits.
Sec. 3630. Separate treatment of certain uranium employees.
Sec. 3631. Assistance for claimants and potential claimants.
Subtitle C--Treatment, Coordination, and Forfeiture of Compensation and 
                                Benefits

Sec. 3641. Offset for certain payments.
Sec. 3642. Subrogation of the United States.
Sec. 3643. Payment in full settlement of claims.
Sec. 3644. Exclusivity of remedy against the United States and against 
                            contractors and subcontractors.
Sec. 3645. Election of remedy for beryllium employees and atomic 
                            weapons employees.
Sec. 3646. Certification of treatment of payments under other laws.
Sec. 3647. Claims not assignable or transferable; choice of remedies.
Sec. 3648. Attorney fees.
Sec. 3649. Certain claims not affected by awards of damages.
Sec. 3650. Forfeiture of benefits by convicted felons.
Sec. 3651. Coordination with other Federal radiation compensation laws.
   Subtitle D--Assistance in State Workers' Compensation Proceedings

Sec. 3661. Agreements with States.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Defense Health Program.
                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority.
Sec. 112. Increase in limitation on number of bunker defeat munitions 
                            that may be acquired.
Sec. 113. Reports and limitations relating to Army transformation.
                       Subtitle C--Navy Programs

Sec. 121. CVNX-1 nuclear aircraft carrier program.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. Virginia class submarine program.
Sec. 124. Limitation during fiscal year 2001 on changes in submarine 
                            force structure.
Sec. 125. ADC(X) ship program.
Sec. 126. Refueling and complex overhaul program of the U.S.S. Dwight 
                            D. Eisenhower.
Sec. 127. Analysis of certain shipbuilding programs.
Sec. 128. Helicopter support of FFG-7 frigates during fiscal year 2001.
Sec. 129. V-22 cockpit aircraft voice and flight data recorders.
                     Subtitle D--Air Force Programs

Sec. 131. Annual report on B-2 bomber.
Sec. 132. Report on modernization of Air National Guard F-16A units.
                       Subtitle E--Joint Programs

Sec. 141. Study of final assembly and checkout alternatives for the 
                            Joint Strike Fighter program.
                 Subtitle F--Chemical Demilitarization

Sec. 151. Pueblo Chemical Depot chemical agent and munitions 
                            destruction technologies.
Sec. 152. Report on assessment of need for Federal economic assistance 
                            for communities impacted by chemical 
                            demilitarization activities.
Sec. 153. Prohibition against disposal of non-stockpile chemical 
                            warfare material at Anniston chemical 
                            stockpile disposal facility.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for procurement for the Army as follows:
            (1) For aircraft, $1,550,012,000.
            (2) For missiles, $1,320,681,000.
            (3) For weapons and tracked combat vehicles, 
        $2,436,324,000.
            (4) For ammunition, $1,179,916,000.
            (5) For other procurement, $4,235,719,000.
            (6) For chemical agents and munitions destruction, 
        $980,100,000, for--
                    (A) the destruction of lethal chemical agents and 
                munitions in accordance with section 1412 of the 
                Department of Defense Authorization Act, 1986 (50 
                U.S.C. 1521); and
                    (B) the destruction of chemical warfare materiel of 
                the United States that is not covered by section 1412 
                of such Act.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2001 for procurement for the Navy as follows:
            (1) For aircraft, $8,394,338,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,443,600,000.
            (3) For shipbuilding and conversion, $12,826,919,000.
            (4) For other procurement, $3,380,680,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2001 for procurement for the Marine Corps in the amount 
of $1,212,768,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2001 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $487,749,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for procurement for the Air Force as follows:
            (1) For aircraft, $9,923,868,000.
            (2) For missiles, $2,863,778,000.
            (3) For ammunition, $646,808,000.
            (4) For other procurement, $7,711,647,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    (a) Amount Authorized.--Funds are hereby authorized to be 
appropriated for fiscal year 2001 for Defense-wide procurement in the 
amount of $2,278,408,000.
    (b) Amount for National Missile Defense.--Of the funds authorized 
to be appropriated in subsection (a), $74,530,000 shall be available 
for the National Missile Defense program.

SEC. 105. DEFENSE INSPECTOR GENERAL.

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

SEC. 106. DEFENSE HEALTH PROGRAMS.

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

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY.

    (a) M2A3 Bradley Fighting Vehicle.--(1) Beginning with the fiscal 
year 2001 program year, the Secretary of the Army may, in accordance 
with section 2306b of title 10, United States Code, enter into one or 
more multiyear contracts for procurement of M2A3 Bradley fighting 
vehicles.
    (2) The Secretary of the Army may execute a contract authorized by 
paragraph (1) only after--
            (A) there is a successful completion of a M2A3 Bradley 
        initial operational test and evaluation (IOT&E); and
            (B) the Secretary certifies in writing to the congressional 
        defense committees that the vehicle met all required test 
        parameters.
    (b) Utility Helicopters.--Beginning with the fiscal year 2002 
program year, the Secretary of the Army may, in accordance with section 
2306b of title 10, United States Code, enter into one or more multiyear 
contracts for procurement of UH-60 Blackhawk utility helicopters and, 
acting as executive agent for the Department of the Navy, CH-60 
Knighthawk utility helicopters.

SEC. 112. INCREASE IN LIMITATION ON NUMBER OF BUNKER DEFEAT MUNITIONS 
              THAT MAY BE ACQUIRED.

    Section 116(2) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2682) is amended by striking 
``6,000'' and inserting ``8,500''.

SEC. 113. REPORTS AND LIMITATIONS RELATING TO ARMY TRANSFORMATION.

    (a) Secretary of the Army Report on Objective Force Development 
Process.--The Secretary of the Army shall submit to the congressional 
defense committees a report on the process for developing the objective 
force in the transformation of the Army. The report shall include the 
following:
            (1) The operational environments envisioned for the 
        objective force.
            (2) The threat assumptions on which research and 
        development efforts for transformation of the Army into the 
        objective force are based.
            (3) The potential operational and organizational concepts 
        for the objective force.
            (4) The operational requirements anticipated for the 
        operational requirements document of the objective force.
            (5) The anticipated schedule of Army transformation 
        activities through fiscal year 2012, together with--
                    (A) the projected funding requirements through that 
                fiscal year for research and development activities and 
                procurement activities related to transition to the 
                objective force; and
                    (B) a summary of the anticipated investments of the 
                Defense Advanced Research Projects Agency in programs 
                designed to lead to the fielding of future combat 
                systems for the objective force.
            (6) A proposed plan for the comparison referred to in 
        subsection (c).
If any of the information required by paragraphs (1) through (5) is not 
available at the time the report is submitted, the Secretary shall 
include in the report the anticipated schedule for the availability of 
that information.
    (b) Secretary of Defense Report on Objective Force Development 
Process.--Not later than March 1, 2001, the Secretary of Defense shall 
submit to the congressional defense committees a report on the process 
for developing the objective force in the transformation of the Army. 
The report shall include the following:
            (1) The joint warfighting requirements that will be 
        supported by the fielding of the objective force, together with 
        a description of the adjustments that are planned to be made in 
        the war plans of the commanders of the unified combatant 
        commands in relation to the fielding of the objective force.
            (2) The changes in lift requirements that may result from 
        the establishment and fielding of the combat brigades of the 
        objective force.
            (3) The evaluation process that will be used to support 
        decisionmaking on the course of the Army transformation, 
        including a description of the operational evaluations and 
        experimentation that will be used to validate the operational 
        requirements for the operational requirements document of the 
        objective force.
If any of the information required by paragraphs (1) through (3) is not 
available at the time the report is submitted, the Secretary shall 
include in the report the anticipated schedule for the availability of 
that information.
    (c) Costs and Effectiveness of Medium Armored Combat Vehicles for 
the Interim Brigade Combat Teams.--(1) The Secretary of the Army shall 
develop a plan for comparing--
            (A) the costs and operational effectiveness of the infantry 
        carrier variant of the interim armored vehicles selected for 
        the infantry battalions of the interim brigade combat teams; 
        and
            (B) the costs and operational effectiveness of the troop-
        carrying medium armored vehicles currently in the Army 
        inventory for the use of infantry battalions.
    (2) The Secretary of the Army may not carry out the comparison 
described in paragraph (1) until the Director of Operational Test and 
Evaluation of the Department of Defense approves the plan for that 
comparison developed under that paragraph.
    (d) Limitation Pending Receipt of Secretary of the Army Report.--
Not more than 80 percent of the amount appropriated for fiscal year 
2001 for the procurement of armored vehicles in the family of new 
medium armored vehicles may be obligated until--
            (1) the Secretary of the Army submits to the congressional 
        defense committees the report required under subsection (a); 
        and
            (2) a period of 30 days has elapsed from the date of the 
        submittal of such report.
    (e) Limitation Pending Comparison and Certification.--No funds 
appropriated or otherwise made available to the Department of the Army 
for any fiscal year may be obligated for acquisition of medium armored 
combat vehicles to equip a third interim brigade combat team until--
            (1) the plan for a comparison of costs and operational 
        effectiveness developed under subsection (c)(1), as approved 
        under subsection (c)(2), is carried out;
            (2) the Secretary of Defense submits to the congressional 
        defense committees, after the completion of the comparison 
        referred to in paragraph (1), a certification that--
                    (A) the Secretary approves of the obligation of 
                funds for that purpose; and
                    (B) the force structure resulting from the 
                acquisition and subsequent operational capability of 
                interim brigade combat teams will not diminish the 
                combat power of the Army; and
            (3) a period of 30 days has elapsed from the date of the 
        certification under paragraph (2).
    (f) Definitions.--In this section:
            (1) The term ``transformation'', with respect to the Army, 
        means the actions being undertaken to transform the Army, as it 
        is constituted in terms of organization, equipment, and 
        doctrine in 2000, into the objective force.
            (2) The term ``objective force'' means the Army that has 
        the organizational structure, the most advanced equipment that 
        early twenty-first century science and technology can provide, 
        and the appropriate doctrine to ensure that the Army is 
        responsive, deployable, agile, versatile, lethal, survivable, 
        and sustainable for the full spectrum of the operations 
        anticipated to be required of the Army during the early years 
        of the twenty-first century following 2010.
            (3) The term ``interim brigade combat team'' means an Army 
        brigade that is designated by the Secretary of the Army as a 
        brigade combat team and is reorganized and equipped with 
        currently available equipment in a configuration that 
        effectuates an evolutionary advancement toward transformation 
        of the Army to the objective force.

                       Subtitle C--Navy Programs

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

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

SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

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

SEC. 123. VIRGINIA CLASS SUBMARINE PROGRAM.

    (a) Amounts Authorized From SCN Account.--Of the amounts authorized 
to be appropriated by section 102(a)(3) for fiscal year 2001, 
$1,706,234,000 is available for the Virginia class submarine program.
    (b) Contract Authority.--(1) The Secretary of the Navy is 
authorized to enter into a contract for the procurement of up to five 
Virginia class submarines, including the procurement of material in 
economic order quantities when cost savings are achievable, during 
fiscal years 2003 through 2006. The submarines authorized under the 
preceding sentence are in addition to the submarines authorized under 
section 121(b) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1648).
    (2) A contract entered into under paragraph (1) shall provide that 
any obligation of the United States to make a payment under the 
contract is subject to the availability of appropriations for that 
purpose.
    (c) Shipbuilder Teaming.--Paragraphs (2)(A), (3), and (4) of 
section 121(b) of Public Law 105-85 apply to the procurement of 
submarines under this section.
    (d) Limitation of Liability.--If a contract entered into under this 
section is terminated, the United States shall not be liable for 
termination costs in excess of the total of the amounts appropriated 
for the Virginia class submarine program that remain available for the 
program.
    (e) Report Requirement.--At that same time that the President 
submits the budget for fiscal year 2002 to Congress under section 
1105(a) of title 31, United States Code, the Secretary of Defense shall 
submit to the congressional defense committees a report on the Navy's 
fleet of fast attack submarines. The report shall include the 
following:
            (1) A plan for maintaining at least 55 fast attack 
        submarines in commissioned service through 2015, including, by 
        2015, 18 Virginia class submarines.
            (2) Two assessments of the potential savings that would be 
        achieved under the Virginia class submarine program if the 
        production rate for that program were at least two submarines 
        each fiscal year, as follows:
                    (A) An assessment if that were the production rate 
                beginning in fiscal year 2004.
                    (B) An assessment if that were the production rate 
                beginning in fiscal year 2006.
            (3) An analysis of the advantages and disadvantages of 
        various contracting strategies for the Virginia class submarine 
        program, including one or more multiyear procurement strategies 
        and one or more strategies for block buy with economic order 
        quantity.

SEC. 124. LIMITATION DURING FISCAL YEAR 2001 ON CHANGES IN SUBMARINE 
              FORCE STRUCTURE.

    (a) Limitation on Retirement of Submarines.--During fiscal year 
2001, the Secretary of the Navy may not retire from the active force 
structure of the Navy any Los Angeles class nuclear-powered attack 
submarine or any Ohio class nuclear-powered ballistic missile submarine 
unless the Secretary of the Navy certifies to Congress in writing that 
he cannot assure the continued safe and militarily effective operation 
of that submarine.
    (b) Report.--Not later than April 15, 2001, the President shall 
submit to Congress a report on the required force structure for 
nuclear-powered submarines, including attack submarines (SSNs), 
ballistic missile submarines (SSBNs), and cruise missile submarines 
(SSGNs), to support the national military strategy through 2020. The 
report shall include a detailed discussion of the acquisition strategy 
and fleet maintenance requirements to achieve and maintain that force 
structure through--
            (1) the procurement of new construction submarines;
            (2) the refueling of Los Angeles class attack submarines 
        (SSNs) to achieve the maximum amount of operational useful 
        service; and
            (3) the conversion of Ohio class submarines that are no 
        longer required for the strategic deterrence mission from their 
        current ballistic missile (SSBN) configuration to a cruise-
        missile (SSGN) configuration.

SEC. 125. ADC(X) SHIP PROGRAM.

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

SEC. 126. REFUELING AND COMPLEX OVERHAUL PROGRAM OF THE U.S.S. DWIGHT 
              D. EISENHOWER.

    (a) Amount Authorized From SCN Account.--Of the amount authorized 
to be appropriated by section 102(a)(3) for fiscal year 2001, 
$698,441,000 is available for the commencement of the nuclear refueling 
and complex overhaul of the U.S.S. Dwight D. Eisenhower (CVN-69) during 
fiscal year 2001. The amount made available in the preceding sentence 
is the first increment in the incremental funding planned for the 
nuclear refueling and complex overhaul of that vessel.
    (b) Contract Authority.--The Secretary of the Navy is authorized to 
enter into a contract during fiscal year 2001 for the nuclear refueling 
and complex overhaul of the U.S.S. Dwight D. Eisenhower.
    (c) Condition for Out-Year Contract Payments.--A contract entered 
into under subsection (b) shall provide that any obligation of the 
United States to make a payment under the contract for a fiscal year 
after fiscal year 2001 is subject to the availability of appropriations 
for that purpose for that later fiscal year.

SEC. 127. ANALYSIS OF CERTAIN SHIPBUILDING PROGRAMS.

    (a) Alternative Funding Analysis.--The Secretary of the Navy shall 
conduct an analysis on the potential benefits and risks associated with 
alternative funding mechanisms for the procurement of various classes 
of naval vessels and other naval capabilities beginning in fiscal year 
2002.
    (b) Alternative Funding Mechanisms.--For purposes of this section, 
the term ``alternative funding mechanism'' means any of the following:
            (1) The use of multiyear procurement.
            (2) The use of advance procurement for block buys of 
        materials in economic order quantities.
            (3) The use of advance procurement and advance construction 
        required in the number of years appropriate to minimize the 
        cost of ship construction.
            (4) The use of advance procurement and advance construction 
        apportioned roughly evenly across some number of fiscal years.
            (5) The use of resources from the National Defense Sealift 
        Fund to budget for auxiliary ships and strategic lift ships.
            (6) The use of the resources from the National Defense 
        Sealift Fund to provide advance payments for national defense 
        features to establish an active Ready Reserve Force.
    (c) Report.--The Secretary shall submit to the congressional 
defense committees a report providing the results of the analysis under 
subsection (a). The report shall be submitted concurrently with the 
submission of the President's budget for fiscal year 2002, but in no 
event later than February 5, 2001. The report shall include the 
following:
            (1) A detailed description of the funding mechanisms 
        considered.
            (2) The potential savings or costs associated with each 
        such funding mechanism.
            (3) The year-to-year effect of each such funding mechanism 
        on production stability of other shipbuilding programs funded 
        within the Shipbuilding and Conversion, Navy, account, given 
        the current acquisition plan of the Navy through fiscal year 
        2010.
            (4) The variables and constants used in the analysis which 
        should include economic, industrial base, and budget realities.
            (5) A description and discussion of any statutory or 
        regulatory restrictions that would preclude the use of any of 
        the funding mechanisms considered.

SEC. 128. HELICOPTER SUPPORT OF FFG-7 FRIGATES DURING FISCAL YEAR 2001.

    During fiscal year 2001, the Secretary of the Navy shall operate 
one squadron of six SH-2G helicopters to provide organic helicopter 
assets for operational support of missions that are to be carried out 
by FFG-7 Flight I and Flight II frigates during that fiscal year.

SEC. 129. V-22 COCKPIT AIRCRAFT VOICE AND FLIGHT DATA RECORDERS.

    The Secretary of Defense shall require that all V-22 Osprey 
aircraft be equipped with a state-of-the-art cockpit voice recorder and 
a state-of-the-art flight data recorder each of which meets, at a 
minimum, the standards for such devices recommended by the National 
Transportation Safety Board.

                     Subtitle D--Air Force Programs

SEC. 131. ANNUAL REPORT ON B-2 BOMBER.

    (a) In General.--(1) Chapter 136 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 2282. B-2 bomber: annual report
    ``Not later than March 1 of each year, 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 B-2 bomber aircraft. Each such report shall include the following:
            ``(1) Identification of the average full-mission capable 
        rate of B-2 aircraft for the preceding fiscal year and the 
        Secretary's overall assessment of the implications of that 
        full-mission capable rate on mission accomplishment for the B-2 
        aircraft, together with the Secretary's determination as to 
        whether that rate is adequate for the accomplishment of each of 
        the missions assigned to the B-2 aircraft as of the date of the 
        assessment.
            ``(2) An assessment of the technical capabilities of the B-
        2 aircraft and whether these capabilities are adequate to 
        accomplish each of the missions assigned to that aircraft as of 
        the date of the assessment.
            ``(3) Identification of all ongoing and planned development 
        of technologies to enhance the capabilities of that aircraft.
            ``(4) Identification and assessment of additional 
        technologies that would make that aircraft more capable or 
        survivable against known and evolving threats.
            ``(5) A fiscally phased program for each technology 
        identified in paragraphs (3) and (4) for the budget year and 
        the future-years defense program, based on the following three 
        funding situations:
                    ``(A) The President's current budget.
                    ``(B) The President's current budget and the 
                current Department of Defense unfunded priority list.
                    ``(C) The maximum executable funding for the B-2 
                aircraft given the requirement to maintain enough 
                operationally ready aircraft to accomplish missions 
                assigned to the B-2 aircraft.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2282. B-2 bomber: annual report.''.
    (b) Repeal of Superseded Reporting Requirement.--Section 112 of the 
National Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189) is repealed.

SEC. 132. REPORT ON MODERNIZATION OF AIR NATIONAL GUARD F-16A UNITS.

    The Secretary of the Air Force shall, not later than February 1, 
2001, submit to Congress a plan to modernize and upgrade the combat 
capabilities of those Air National Guard units that, as of the date of 
the enactment of this Act, are assigned F-16A aircraft so that those 
units can be deployed as part of Air Expeditionary Forces.

                       Subtitle E--Joint Programs

SEC. 141. STUDY OF FINAL ASSEMBLY AND CHECKOUT ALTERNATIVES FOR THE 
              JOINT STRIKE FIGHTER PROGRAM.

    (a) Report Required.--Not later than 180 days after the date of the 
award of a contract for engineering and manufacturing development for 
the Joint Strike Fighter aircraft program, the Secretary of Defense 
shall submit to Congress a report providing the results of a study of 
final assembly and checkout alternatives for that aircraft.
    (b) Matters To Be Included.--The report under subsection (a) shall 
include the following:
            (1) Examination of alternative final assembly and checkout 
        strategies for the program, including--
                    (A) final assembly and checkout of all aircraft 
                under the program at one location;
                    (B) final assembly and checkout at dual locations; 
                and
                    (C) final assembly and checkout at multiple 
                locations.
            (2) Identification of each Government and industry facility 
        that is a potential location for such final assembly and 
        checkout.
            (3) Identification of the anticipated costs of final 
        assembly and checkout at each facility identified pursuant to 
        paragraph (2), based upon a reasonable profile for the annual 
        procurement of that aircraft once it enters production.
            (4) A comparison of the anticipated costs of carrying out 
        such final assembly and checkout at each such location.
    (c) Cost Comparison.--In identifying costs under subsection (b)(3) 
and carrying out the cost comparisons required by subsection (b)(4), 
the Secretary shall include consideration of each of the following 
factors:
            (1) State tax credits.
            (2) State and local incentives.
            (3) Skilled resident workforce.
            (4) Supplier and technical support bases.
            (5) Available stealth production facilities.
            (6) Environmental standards.

                 Subtitle F--Chemical Demilitarization

SEC. 151. PUEBLO CHEMICAL DEPOT CHEMICAL AGENT AND MUNITIONS 
              DESTRUCTION TECHNOLOGIES.

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

SEC. 152. REPORT ON ASSESSMENT OF NEED FOR FEDERAL ECONOMIC ASSISTANCE 
              FOR COMMUNITIES IMPACTED BY CHEMICAL DEMILITARIZATION 
              ACTIVITIES.

    (a) Report Required.--Not later than April 1, 2001, the Secretary 
of Defense shall submit to the Committees on Armed Services of the 
Senate and of the House of Representatives a report on the impact of 
the Department of Defense chemical agents and munitions destruction 
program on the communities in the vicinity of the chemical weapons 
stockpile storage sites and associated chemical agent demilitarization 
activities at the following facilities:
            (1) Anniston Chemical Activity, Alabama.
            (2) Blue Grass Chemical Activity, Kentucky.
            (3) Deseret Chemical Depot, Utah.
            (4) Edgewood Chemical Activity, Maryland.
            (5) Newport Chemical Activity, Indiana.
            (6) Pine Bluff Chemical Activity, Arkansas.
            (7) Pueblo Chemical Activity, Colorado.
            (8) Umatilla Chemical Depot, Oregon.
    (b) Recommendation.--The Secretary shall include in the report a 
recommendation regarding whether Federal economic assistance for any or 
all of those communities to assist in meeting the impact of that 
program is needed and appropriate. If the Secretary's recommendation is 
that such economic assistance is needed and appropriate for any or all 
of such communities, the Secretary shall include in the report criteria 
for determining the amount of such economic assistance.
    (c) Matters To Be Considered in Assessing Impact.--In assessing the 
impact of the program referred to in subsection (a) for purposes of 
preparing the report required by that subsection and the recommendation 
required by subsection (b), the Secretary shall consider the following:
            (1) The impact that any change in population as a result of 
        chemical agent demilitarization activities would have on the 
        community.
            (2) The possible temporary nature of such a change in 
        population and the long-range financial impact of such a change 
        in population on the permanent residents of the community.
            (3) The initial capitalization required for the services, 
        facilities, or infrastructure to support any increase in 
        population.
            (4) The operating costs for sustaining or upgrading the 
        services, facilities, or infrastructure to support any increase 
        in population.
            (5) The costs incurred by local government entities for 
        improvements to emergency evacuation routes required by the 
        chemical demilitarization activities.
            (6) Such other factors as the Secretary considers 
        appropriate.

SEC. 153. PROHIBITION AGAINST DISPOSAL OF NON-STOCKPILE CHEMICAL 
              WARFARE MATERIAL AT ANNISTON CHEMICAL STOCKPILE DISPOSAL 
              FACILITY.

    No funds authorized to be made available under this or any other 
Act may be used to facilitate the disposal using the chemical stockpile 
disposal facility at Anniston, Alabama, of any non-stockpile chemical 
warfare material that is not stored (as of the date of the enactment of 
this Act) at the Anniston Army Depot.

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

              Subtitle A--Authorization of Appropriations

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

Sec. 211. Management of Space-Based Infrared System--Low.
Sec. 212. Joint Strike Fighter program.
Sec. 213. Fiscal year 2002 joint field experiment.
Sec. 214. Nuclear aircraft carrier design and production modeling.
Sec. 215. DD-21 class destroyer program.
Sec. 216. Limitation on Russian American Observation Satellites 
                            program.
Sec. 217. Joint biological defense program.
Sec. 218. Report on biological warfare defense vaccine research and 
                            development programs.
Sec. 219. Cost limitations applicable to F-22 aircraft program.
Sec. 220. Unmanned advanced capability combat aircraft and ground 
                            combat vehicles.
Sec. 221. Global Hawk high altitude endurance unmanned aerial vehicle.
Sec. 222. Army space control technology development.
                 Subtitle C--Ballistic Missile Defense

Sec. 231. Funding for fiscal year 2001.
Sec. 232. Reports on ballistic missile threat posed by North Korea.
Sec. 233. Plan to modify ballistic missile defense architecture.
Sec. 234. Management of Airborne Laser program.
                 Subtitle D--High Energy Laser Programs

Sec. 241. Funding.
Sec. 242. Implementation of High Energy Laser Master Plan.
Sec. 243. Designation of senior official for high energy laser 
                            programs.
Sec. 244. Site for Joint Technology Office.
Sec. 245. High energy laser infrastructure improvements.
Sec. 246. Cooperative programs and activities.
Sec. 247. Technology plan.
Sec. 248. Annual report.
Sec. 249. Definition.
Sec. 250. Review of Defense-wide directed energy programs.
                       Subtitle E--Other Matters

Sec. 251. Reports on mobile offshore base concept and potential use for 
                            certain purposes of technologies associated 
                            with that concept.
Sec. 252. Air Force science and technology planning.
Sec. 253. Enhancement of authorities regarding education partnerships 
                            for purposes of encouraging scientific 
                            study.
Sec. 254. Recognition of those individuals instrumental to naval 
                            research efforts during the period from 
                            before World War II through the end of the 
                            Cold War.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $5,568,482,000.
            (2) For the Navy, $8,715,335,000.
            (3) For the Air Force, $13,779,144,000.
            (4) For Defense-wide activities, $10,873,712,000, of which 
        $192,060,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 2001.--Of the amounts authorized to be appropriated 
by section 201, $4,557,188,000 shall be available for basic research 
and applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1 or 6.2.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. MANAGEMENT OF SPACE-BASED INFRARED SYSTEM--LOW.

    Not later than October 1, 2001, the Secretary of Defense shall 
direct that the Director of the Ballistic Missile Defense Organization 
shall have authority for program management for the ballistic missile 
defense program known on the date of the enactment of this Act as the 
Space-Based Infrared System--Low.

SEC. 212. JOINT STRIKE FIGHTER PROGRAM.

    (a) Report.--Not later than December 15, 2000, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the Joint Strike Fighter aircraft program describing the criteria 
for exit of the program from the demonstration and validation phase, 
and entry of the program into the engineering and manufacturing 
development phase, of the acquisition process.
    (b) Certification.--The Joint Strike Fighter program may not be 
approved for entry into the engineering and manufacturing development 
phase of the acquisition process until the Secretary of Defense 
certifies to the congressional defense committees that--
            (1) the exit criteria established in the report submitted 
        under subsection (a) have been accomplished;
            (2) the technological maturity of key technologies for the 
        program is sufficient to warrant entry of the program into the 
        engineering and manufacturing development phase; and
            (3) the short take-off, vertical-landing aircraft variant 
        selected for engineering and manufacturing development has 
        successfully flown at least 20 hours.
    (c) Transfers Within the Joint Strike Fighter Navy and Air Force 
Accounts.--(1) The Secretary of Defense may, subject to established 
congressional notification and reprogramming procedures, transfer 
within the Joint Strike Fighter program the following amounts:
            (A) Of the funds authorized to be appropriated for PE 
        64800N, up to $100,000,000 to PE 63800N.
            (B) Of the funds authorized to be appropriated for PE 
        64800F, up to $100,000,000 to PE 63800F.
    (2) The transfer authority authorized in paragraph (1) is in 
addition to the transfer authority provided in section 1001.

SEC. 213. FISCAL YEAR 2002 JOINT FIELD EXPERIMENT.

    (a) Requirements.--The Secretary of Defense shall carry out a joint 
field experiment in fiscal year 2002. The Secretary shall ensure that 
the planning for the joint field experiment is carried out in fiscal 
year 2001.
    (b) Purpose.--The purpose of the joint field experiment is to 
explore critical war fighting challenges at the operational level of 
war that will confront United States joint military forces after 2010.
    (c) Participating Forces.--(1) The joint field experiment shall 
involve elements of the Army, Navy, Marine Corps, and Air Force, and 
shall include special operations forces.
    (2) The forces designated to participate in the joint field 
experiment shall exemplify the concepts for organization, equipment, 
and doctrine that are conceived for the forces after 2010 under Joint 
Vision 2010 and Joint Vision 2020 (issued by the Joint Chiefs of Staff) 
and the current vision statements of the Chief of Staff of the Army, 
the Chief of Naval Operations, the Commandant of the Marine Corps, and 
the Chief of Staff of the Air Force, including the following concepts:
            (A) Army medium weight brigades.
            (B) Navy Forward-From-The-Sea.
            (C) Air Force expeditionary aerospace forces.
    (d) Report.--Not later than March 1, 2001, the Secretary shall 
submit to the congressional defense committees a report on the concept 
plan for the joint field experiment required under subsection (a). The 
report shall include the following:
            (1) The objectives of the experiment.
            (2) The forces participating in the experiment.
            (3) The schedule and location of the experiment.
            (4) For each joint command, defense agency, and service 
        component participating in the experiment, an identification 
        of--
                    (A) the funding required for the experiment by that 
                command, agency, or component; and
                    (B) any shortfall in the budget request for the 
                Department of Defense for fiscal year 2002 for that 
                funding for that command, agency, or component.

SEC. 214. NUCLEAR AIRCRAFT CARRIER DESIGN AND PRODUCTION MODELING.

    (a) Assessment Required.--The Secretary of the Navy shall conduct 
an assessment of the cost-effectiveness of--
            (1) converting design data for the Nimitz-class aircraft 
        carrier from non-electronic to electronic form; and
            (2) developing an electronic, three-dimensional design 
        product model for the CVNX class aircraft carrier.
    (b) Conduct of the Assessment.--The Secretary of the Navy shall 
carry out the assessment in a manner that ensures the participation of 
the nuclear aircraft carrier shipbuilding industry.
    (c) Report.--The Secretary of the Navy shall submit a report to the 
congressional defense committees on the assessment. The report shall 
include the results of the assessment and plans and funding 
requirements for developing the model specified in subsection (a)(2). 
The report shall be submitted with the submission of the budget request 
for the Department of Defense for fiscal year 2002.
    (d) Funding.--Of the amount authorized to be appropriated under 
section 201(2) for research, development, test, and evaluation for the 
Navy, $8,000,000 shall be available to initiate the conversion and 
development of nuclear aircraft carrier design data into an electronic, 
three-dimensional product model.

SEC. 215. DD-21 CLASS DESTROYER PROGRAM.

    (a) Authority.--The Secretary of the Navy is authorized to pursue a 
technology insertion approach for the construction of the DD-21 
destroyer that is based on the assumption of the following schedule:
            (1) Award of a contract for advance procurement for 
        construction of components for the DD-21 destroyer during 
        fiscal year 2004.
            (2) Delivery of the completed ship during fiscal year 2009.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) there are compelling reasons for starting the program 
        for constructing the DD-21 destroyer during fiscal year 2004 
        with available procurement funds and continuing with sequential 
        construction of DD-21 class destroyers during the ensuing 
        fiscal years until 32 DD-21 class destroyers have been 
        constructed; and
            (2) the Secretary of the Navy, in providing for the 
        acquisition of DD-21 class destroyers, should consider that--
                    (A) the Marine Corps needs the surface fire-support 
                capabilities of the DD-21 class destroyers as soon as 
                possible in order to mitigate the inadequacies of the 
                surface fire-support capabilities that are currently 
                available;
                    (B) the Navy and Marine Corps need to resolve 
                whether there is a requirement for surface fire-support 
                missile weapon systems to be easily sustainable by 
                means of replenishment while under way;
                    (C) the technology insertion approach has been 
                successful for other ship construction programs and is 
                being pursued for the CVNX aircraft carrier program and 
                the Virginia class submarine program;
                    (D) the establishment of a stable configuration for 
                the first 10 DD-21 class destroyers should enable the 
                construction of those ships with the greatest 
                capabilities at the lowest cost; and
                    (E) action to acquire DD-21 class destroyers should 
                be taken as soon as possible in order to realize fully 
                the cost savings that can be derived from the 
                construction and operation of DD-21 class destroyers, 
                including--
                            (i) savings in construction costs that 
                        would result from achievement of the Navy's 
                        target per-ship cost of $750,000,000 by the 
                        fifth ship constructed in each construction 
                        yard;
                            (ii) savings that would result from the 
                        estimated reduction of the crews of destroyers 
                        by 200 or more personnel for each ship; and
                            (iii) savings that would result from a 
                        reduction in the operating costs for destroyers 
                        by an estimated 70 percent.
    (c) Navy Plan for Use of Technology Insertion Approach for 
Construction of the DD-21 Ship.--The Secretary of the Navy shall submit 
to the Committees on Armed Services of the Senate and the House of 
Representatives, not later than April 18, 2001, a plan for pursuing a 
technology insertion approach for the construction of the DD-21 
destroyer as authorized under subsection (a). The plan shall include 
estimates of the resources necessary to carry out the plan.
    (d) Report on Acquisition and Maintenance Plan for DD-21 Class 
Ships.--The Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives, not 
later than April 18, 2001, a report on the Navy's plan for the 
acquisition and maintenance of DD-21 class destroyers. The report shall 
include a discussion of each of the following matters:
            (1) The technical feasibility of contracting for, and 
        commencing construction of, the first destroyer in that class 
        during fiscal year 2004 and achieving delivery of the completed 
        ship during fiscal year 2009.
            (2) An analysis of alternative contracting strategies for 
        the construction of the first 10 destroyers in that class, 
        including one or more multiyear procurement strategies and one 
        or more strategies for block buy in economic order quantity.
            (3) A comparison of the effects on the destroyer industrial 
        base and on costs to other Navy shipbuilding programs of the 
        following two options:
                    (A) Commencing construction of the first destroyer 
                in that class during fiscal year 2004, with delivery of 
                the completed ship during fiscal year 2009, and 
                delaying commencement of construction of the next 
                destroyer in that class until fiscal year 2006.
                    (B) Commencing construction of the first destroyer 
                in that class during fiscal year 2005 (rather than 
                fiscal year 2004), with advance procurement during 
                fiscal year 2004 and delivery of the completed ship 
                during fiscal year 2010, and delaying commencement of 
                construction of the next destroyer in that class until 
                fiscal year 2007 (rather than fiscal year 2006).
            (4) The effects on the fleet maintenance strategies of Navy 
        fleet commanders, on commercial maintenance facilities in fleet 
        concentration areas, and on the administration of funds in 
        compliance with section 2466 of title 10, United States Code, 
        of awarding to a contractor for the construction of a destroyer 
        in that class all maintenance workloads for destroyers in that 
        class that are below depot-level maintenance and above ship-
        level maintenance.

SEC. 216. LIMITATION ON RUSSIAN AMERICAN OBSERVATION SATELLITES 
              PROGRAM.

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

SEC. 217. JOINT BIOLOGICAL DEFENSE PROGRAM.

    (a) Limitation.--Subject to subsection (c), funds authorized to be 
appropriated by this Act may not be obligated for the procurement of a 
vaccine for the biological agent anthrax until the Secretary of Defense 
has submitted to the congressional defense committees each of the 
following:
            (1) A written notification that the Food and Drug 
        Administration has approved the current manufacturer for 
        production of the vaccine.
            (2) A report on the contingencies associated with 
        continuing to rely on the current manufacturer to supply the 
        vaccine.
    (b) Content of Report.--The report required under subsection (a)(2) 
shall include each of the following:
            (1) Recommended strategies to mitigate the risk to the 
        Department of Defense of losing the current manufacturer as a 
        source of anthrax vaccine, together with a discussion of the 
        criteria to be applied in determining whether to carry out any 
        of the strategies and which strategy to carry out.
            (2) Recommended strategies to ensure that the Department of 
        Defense can procure, from one or more sources other than the 
        current manufacturer, an anthrax vaccine approved by the Food 
        and Drug Administration that meets the requirements of the 
        Department if--
                    (A) the Food and Drug Administration does not 
                approve the release of the anthrax vaccine available 
                from the current manufacturer; or
                    (B) the current manufacturer terminates the 
                production of anthrax vaccine permanently.
            (3) A five-year budget to support each strategy recommended 
        under paragraph (1) or (2).
    (c) Permissible Obligations.--(1) This section does not limit the 
obligation of funds for any of the following purposes:
            (A) The support of any action that is necessary for the 
        current manufacturer to comply with standards of the Food and 
        Drug Administration (including those purposes necessary to 
        obtain or maintain a biological license application) applicable 
        to anthrax vaccine.
            (B) Establishing an additional source (other than or in 
        conjunction with the current manufacturer) for the production 
        of anthrax vaccine.
            (C) Any action that the Secretary determines necessary to 
        ensure production of anthrax vaccine for meeting an urgent and 
        immediate national defense requirement.
    (2) Not later than seven days after the total amount of the funds 
obligated (or obligated and expended) for purposes specified in 
paragraph (1) exceeds $5,000,000, the Secretary shall submit to 
Congress a notification that the total obligations exceed that amount, 
together with a written justification for the obligation of funds in 
excess of that amount.
    (d) Current Manufacturer.--In this section, the term ``current 
manufacturer'' means the manufacturing source from which the Department 
of Defense is procuring anthrax vaccine as of the date of the enactment 
of this Act.

SEC. 218. REPORT ON BIOLOGICAL WARFARE DEFENSE VACCINE RESEARCH AND 
              DEVELOPMENT PROGRAMS.

    (a) Report Required.--Not later than February 1, 2001, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the acquisition of biological warfare defense 
vaccines for the Department of Defense.
    (b) Contents.--The report shall include the following:
            (1) The Secretary's evaluation of the implications of 
        reliance on the commercial sector to meet the requirements of 
        the Department of Defense for biological warfare defense 
        vaccines.
            (2) A design for a government-owned, contractor-operated 
        facility for the production of biological warfare defense 
        vaccines that meets the requirements of the Department for such 
        vaccines, and the assumptions on which that design is based.
            (3) A preliminary cost estimate of, and schedule for, 
        establishing and bringing into operation such a facility, and 
        the estimated annual cost of operating such a facility 
        thereafter.
            (4) A determination, developed in consultation with the 
        Surgeon General, of the utility of such a facility to support 
        the production of vaccines for the civilian sector, and a 
        discussion of the effects that the use of such a facility for 
        that purpose might have on--
                    (A) the production of vaccines for the Armed 
                Forces; and
                    (B) the annual cost of operating such a facility.
            (5) An analysis of the effects that international 
        requirements for vaccines, and the production of vaccines in 
        response to those requirements, might have on--
                    (A) the production of vaccines for the Armed 
                Forces; and
                    (B) the annual cost of operating such a facility.
    (c) Biological Warfare Defense Vaccine Defined.--In this section, 
the term ``biological warfare defense vaccine'' means a vaccine useful 
for the immunization of military personnel to protect against 
biological agents on the Validated Threat List issued by the Joint 
Chiefs of Staff, whether such vaccine is in production or is being 
developed.

SEC. 219. COST LIMITATIONS APPLICABLE TO F-22 AIRCRAFT PROGRAM.

    (a) Flexibility in Engineering and Manufacturing Development Cost 
Cap.--Section 217(c) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1660) is amended by 
adding at the end the following new paragraph:
            ``(3) With respect to the limitation in subsection (a), an 
        increase by an amount that does not exceed 1\1/2\ percent of 
        the total amount of that limitation (taking into account the 
        increases and decreases, if any, under paragraphs (1) and (2)) 
        if the Director of Operational Test and Evaluation, after 
        consulting with the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics, determines that the increase is 
        necessary in order to ensure adequate testing.''.
    (b) Reestablishment of Separate Engineering and Manufacturing 
Development Cost Cap and Production Cost Cap.--The provisions of 
subsections (a) and (b) of section 217 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1660) shall continue to apply with respect to amounts obligated and 
expended for engineering and manufacturing development, and for 
production, respectively, for the F-22 aircraft program without regard 
to any provision of law establishing a single limitation on amounts 
obligated and expended for engineering and manufacturing development 
and for production for that program.

SEC. 220. UNMANNED ADVANCED CAPABILITY COMBAT AIRCRAFT AND GROUND 
              COMBAT VEHICLES.

    (a) Goal.--It shall be a goal of the Armed Forces to achieve the 
fielding of unmanned, remotely controlled technology such that--
            (1) by 2010, one-third of the aircraft in the operational 
        deep strike force aircraft fleet are unmanned; and
            (2) by 2015, one-third of the operational ground combat 
        vehicles are unmanned.
    (b) Report on Unmanned Advanced Capability Combat Aircraft and 
Ground Combat Vehicles.--(1) Not later than January 31, 2001, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the programs to demonstrate unmanned advanced 
capability combat aircraft and ground combat vehicles undertaken 
jointly between the Director of the Defense Advanced Research Projects 
Agency and any of the following:
            (A) The Secretary of the Army.
            (B) The Secretary of the Navy.
            (C) The Secretary of the Air Force.
    (2) The report shall include, for each program referred to in 
paragraph (1), the following:
            (A) A schedule for the demonstration to be carried out 
        under that program.
            (B) An identification of the funding required for fiscal 
        year 2002 and for the future-years defense program to carry out 
        that program and for the demonstration to be carried out under 
        that program.
            (C) In the case of the program relating to the Army, the 
        plan for modification of the existing memorandum of agreement 
        with the Defense Advanced Research Projects Agency for 
        demonstration and development of the Future Combat System to 
        reflect an increase in unmanned, remotely controlled enabling 
        technologies.
    (3) The report shall also include, for each Secretary referred to 
in paragraphs (1)(A), (1)(B), and (1)(C), a description and assessment 
of the acquisition strategy for unmanned advanced capability combat 
aircraft and ground combat vehicles planned by that Secretary, which 
shall include a detailed estimate of all research and development, 
procurement, operation, support, ownership, and other costs required to 
carry out such strategy through the year 2030, and--
            (A) in the case of the acquisition strategy relating to the 
        Army, the transition from the planned acquisition strategy for 
        the Future Combat System to an acquisition strategy capable of 
        meeting the goal specified in subsection (a)(2);
            (B) in the case of the acquisition strategy relating to the 
        Navy--
                    (i) the plan to implement a program that examines 
                the ongoing Air Force unmanned combat air vehicle 
                program and identifies an approach to develop a Navy 
                unmanned combat air vehicle program that has the goal 
                of developing an aircraft that is suitable for aircraft 
                carrier use and has maximum commonality with the 
                aircraft under the Air Force program; and
                    (ii) an analysis of alternatives between the 
                operational deep strike force aircraft fleet and that 
                fleet together with an additional 10 to 20 unmanned 
                advanced capability combat aircraft that are suitable 
                for aircraft carrier use and capable of penetrating 
                fully operational enemy air defense systems; and
            (C) in the case of the acquisition strategy relating to the 
        Air Force--
                    (i) the schedule for evaluation of demonstration 
                results for the ongoing unmanned combat air vehicle 
                program and the earliest possible transition of that 
                program into engineering and manufacturing development 
                and procurement; and
                    (ii) an analysis of alternatives between the 
                currently planned deep strike force aircraft fleet and 
                the operational deep strike force aircraft fleet that 
                could be acquired by fiscal year 2010 to meet the goal 
                specified in subsection (a)(1).
    (c) Funds.--Of the amount authorized to be appropriated for 
Defense-wide activities under section 201(4) for the Defense Advanced 
Research Projects Agency, $100,000,000 shall be available only to carry 
out the programs referred to in subsection (b)(1).
    (d) Definitions.--For purposes of this section:
            (1) An aircraft or ground combat vehicle has ``unmanned 
        advanced capability'' if it is an autonomous, semi-autonomous, 
        or remotely controlled system that can be deployed, re-tasked, 
        recovered, and re-deployed.
            (2) The term ``currently planned deep strike force aircraft 
        fleet'' means the early entry, deep strike aircraft fleet 
        (composed of F-117 stealth aircraft and B-2 stealth aircraft) 
        that is currently planned for fiscal year 2010.
            (3) The term ``operational deep strike force aircraft 
        fleet'' means the currently planned deep strike force aircraft 
        fleet, together with at least 30 unmanned advanced capability 
        combat aircraft that are capable of penetrating fully 
        operational enemy air defense systems.
            (4) The term ``operational ground combat vehicles'' means 
        ground combat vehicles acquired through the Future Combat 
        System acquisition program of the Army to equip the future 
        objective force, as outlined in the vision statement of the 
        Chief of Staff of the Army.

SEC. 221. GLOBAL HAWK HIGH ALTITUDE ENDURANCE UNMANNED AERIAL VEHICLE.

    (a) Concept Demonstration Required.--The Secretary of Defense shall 
require and coordinate a concept demonstration of the Global Hawk high 
altitude endurance unmanned aerial vehicle.
    (b) Purpose of Demonstration.--The purpose of the concept 
demonstration is to demonstrate the capability of the Global Hawk high 
altitude endurance unmanned aerial vehicle to operate in an airborne 
surveillance mode, using available, non-developmental technology.
    (c) Time for Demonstration.--The Secretary shall initiate the 
demonstration not later than March 1, 2001.
    (d) Participation by CINCs.--The Secretary shall require the 
commander of the United States Joint Forces Command and the commander 
of the United States Southern Command jointly to provide guidance for 
the demonstration and otherwise to participate in the demonstration.
    (e) Scenario for Demonstration.--The demonstration shall be 
conducted in a counter-drug surveillance scenario that is designed to 
replicate factual conditions typically encountered in the performance 
of the counter-drug surveillance mission of the commander of the United 
States Southern Command within that commander's area of responsibility.
    (f) Report.--Not later than 45 days after the demonstration is 
completed, the Secretary shall submit to Congress a report on the 
results of the demonstration. The report shall include the following:
            (1) The Secretary's assessment of the technical feasibility 
        of using the Global Hawk high altitude endurance unmanned 
        aerial vehicle for airborne air surveillance.
            (2) A discussion of the operational concept for the use of 
        the vehicle for that purpose.
    (g) Funding.--Of the funds authorized to be appropriated by section 
301(20) for Drug Interdiction and Counter-drug Activities, Defense-
wide, $18,000,000 shall be available for the concept demonstration 
required by subsection (a), including initiation of concurrent 
development for an improved surveillance radar.

SEC. 222. ARMY SPACE CONTROL TECHNOLOGY DEVELOPMENT.

    Of the funds authorized to be appropriated under section 201(1) for 
Army space control technology, $3,000,000 shall be available for the 
kinetic energy anti-satellite technology program.

                 Subtitle C--Ballistic Missile Defense

SEC. 231. FUNDING FOR FISCAL YEAR 2001.

    Of the funds authorized to be appropriated in section 201(4), 
$1,875,238,000 shall be available for the National Missile Defense 
program.

SEC. 232. REPORTS ON BALLISTIC MISSILE THREAT POSED BY NORTH KOREA.

    (a) Report On Ballistic Missile Threat.--Not later than two weeks 
after the next flight test by North Korea of a long-range ballistic 
missile, the President shall submit to Congress, in classified and 
unclassified form, a report on the North Korean ballistic missile 
threat to the United States. The report shall include the following:
            (1) An assessment of the current North Korean missile 
        threat to the United States.
            (2) An assessment of whether the United States is capable 
        of defeating the North Korean long-range missile threat to the 
        United States as of the date of the report.
            (3) An assessment of when the United States will be capable 
        of defeating the North Korean missile threat to the United 
        States.
            (4) An assessment of the potential for proliferation of 
        North Korean missile technologies to other states and whether 
        such proliferation will accelerate the development of 
        additional long-range ballistic missile threats to the United 
        States.
    (b) Report on Reducing Vulnerability.--Not later than two weeks 
after the next flight test by North Korea of a long-range ballistic 
missile, the President shall submit to Congress a report providing the 
following:
            (1) Any additional steps the President intends to take to 
        reduce the period of time during which the Nation is vulnerable 
        to the North Korean long-range ballistic missile threat.
            (2) The technical and programmatic viability of testing any 
        other missile defense systems against targets with flight 
        characteristics similar to the North Korean long-range missile 
        threat, and plans to do so if such tests are considered to be a 
        viable alternative.
    (c) Definition.--For purposes of this section, the term ``United 
States'', when used in a geographic sense, means the 50 States, the 
District of Columbia, and any Commonwealth, territory, or possession of 
the United States.

SEC. 233. PLAN TO MODIFY BALLISTIC MISSILE DEFENSE ARCHITECTURE.

    (a) Plan.--The Director of the Ballistic Missile Defense 
Organization shall develop a plan to adapt ballistic missile defense 
systems and architectures to counter potential threats to the United 
States, United States forces deployed outside the United States, and 
other United States national security interests that are posed by 
longer range medium-range ballistic missiles and intermediate-range 
ballistic missiles.
    (b) Use of Space-Based Sensors Included.--The plan shall include--
            (1) potential use of space-based sensors, including the 
        Space-Based Infrared System (SBIRS) Low and Space-Based 
        Infrared System (SBIRS) High, Navy theater missile defense 
        assets, upgrades of land-based theater missile defenses, the 
        airborne laser, and other assets available in the European 
        theater; and
            (2) a schedule for ground and flight testing against the 
        identified threats.
    (c) Report.--The Secretary of Defense shall assess the plan and, 
not later than February 15, 2001, shall submit to the congressional 
defense committees a report on the results of the assessment.

SEC. 234. MANAGEMENT OF AIRBORNE LASER PROGRAM.

    (a) Oversight of Funding, Schedule, and Technical Requirements.--
With respect to the program known as of the date of the enactment of 
this Act as the ``Airborne Laser'' program, the Secretary of Defense 
shall require that the Secretary of the Air Force obtain the 
concurrence of the Director of the Ballistic Missile Defense 
Organization before the Secretary--
            (1) makes any change to the funding plan or schedule for 
        that program that would delay to a date later than September 
        30, 2003, the first test of the airborne laser that is intended 
        to destroy a ballistic missile in flight;
            (2) makes any change to the funding plan for that program 
        in the future-years defense program that would delay the 
        initial operational capability of the airborne laser; and
            (3) makes any change to the technical requirements of the 
        airborne laser that would significantly reduce its ballistic 
        missile defense capabilities.
    (b) Report.--Not later than February 15, 2001, the Director of the 
Ballistic Missile Defense Organization shall submit to the 
congressional defense committees a report, to be prepared in 
coordination with the Secretary of the Air Force, on the role of the 
airborne laser in the family of systems missile defense architecture 
developed by the Director of the Ballistic Missile Defense Organization 
and the Director of the Joint Theater Air and Missile Defense 
Organization. The report shall be submitted in unclassified and, if 
necessary, classified form. The report shall include the following:
            (1) An assessment by the Secretary of the Air Force and the 
        Director of the Ballistic Missile Defense Organization of the 
        funding plan for that program required to achieve the schedule 
        identified in paragraphs (1) and (2) of subsection (a).
            (2) Potential future airborne laser roles in that 
        architecture.
            (3) An assessment of the effect of deployment of the 
        airborne laser on requirements for theater ballistic missile 
        defense systems.
            (4) An assessment of the cost effectiveness of the airborne 
        laser compared to other ballistic missile defense systems.
            (5) An assessment of the relative significance of the 
        airborne laser in the family of systems missile defense 
        architecture.

                 Subtitle D--High Energy Laser Programs

SEC. 241. FUNDING.

    (a) Funding for Fiscal Year 2001.--(1) Of the amount authorized to 
be appropriated by section 201(4), $30,000,000 is authorized for high 
energy laser development.
    (2) Funds available under this subsection are available to 
supplement the high energy laser programs of the military departments 
and Defense Agencies, as determined by the official designated under 
section 243.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Department of Defense should establish funding for 
        high energy laser programs within the science and technology 
        programs of each of the military departments and the Ballistic 
        Missile Defense Organization; and
            (2) the Secretary of Defense should establish a goal that 
        basic, applied, and advanced research in high energy laser 
        technology should constitute at least 4.5 percent of the total 
        science and technology budget of the Department of Defense by 
        fiscal year 2004.

SEC. 242. IMPLEMENTATION OF HIGH ENERGY LASER MASTER PLAN.

    The Secretary of Defense shall implement the management and 
organizational structure specified in the Department of Defense High 
Energy Laser Master Plan of March 24, 2000.

SEC. 243. DESIGNATION OF SENIOR OFFICIAL FOR HIGH ENERGY LASER 
              PROGRAMS.

    (a) Designation.--The Secretary of Defense shall designate a single 
senior civilian official in the Office of the Secretary of Defense (in 
this subtitle referred to as the ``designated official'') to chair the 
High Energy Laser Technology Council called for in the master plan 
referred to in section 242 and to carry out responsibilities for the 
programs for which funds are provided under this subtitle. The 
designated official shall report directly to the Under Secretary of 
Defense for Acquisition, Technology, and Logistics for matters 
concerning the responsibilities specified in subsection (b).
    (b) Responsibilities.--The primary responsibilities of the 
designated official shall include the following:
            (1) Establishment of priorities for the high energy laser 
        programs of the military departments and the Defense Agencies.
            (2) Coordination of high energy laser programs among the 
        military departments and the Defense Agencies.
            (3) Identification of promising high energy laser 
        technologies for which funding should be a high priority for 
        the Department of Defense and establishment of priority for 
        funding among those technologies.
            (4) Preparation, in coordination with the Secretaries of 
        the military departments and the Directors of the Defense 
        Agencies, of a detailed technology plan to develop and mature 
        high energy laser technologies.
            (5) Planning and programming appropriate to rapid evolution 
        of high energy laser technology.
            (6) Ensuring that high energy laser programs of each 
        military department and the Defense Agencies are initiated and 
        managed effectively and are complementary with programs managed 
        by the other military departments and Defense Agencies and by 
        the Office of the Secretary of Defense.
            (7) Ensuring that the high energy laser programs of the 
        military departments and the Defense Agencies comply with the 
        requirements specified in subsection (c).
    (c) Coordination and Funding Balance.--In carrying out the 
responsibilities specified in subsection (b), the designated official 
shall ensure that--
            (1) high energy laser programs of each military department 
        and of the Defense Agencies are consistent with the priorities 
        identified in the designated official's planning and 
        programming activities;
            (2) funding provided by the Office of the Secretary of 
        Defense for high energy laser research and development 
        complements high energy laser programs for which funds are 
        provided by the military departments and the Defense Agencies;
            (3) programs, projects, and activities to be carried out by 
        the recipients of such funds are selected on the basis of 
        appropriate competitive procedures or Department of Defense 
        peer review process;
            (4) beginning with fiscal year 2002, funding from the 
        Office of the Secretary of Defense in applied research and 
        advanced technology development program elements is not applied 
        to technology efforts in support of high energy laser programs 
        that are not funded by a military department or the Defense 
        Agencies; and
            (5) funding from the Office of the Secretary of Defense to 
        complement an applied research or advanced technology 
        development high energy laser program for which funds are 
        provided by one of the military departments or the Defense 
        Agencies do not exceed the amount provided by the military 
        department or the Defense Agencies for that program.

SEC. 244. SITE FOR JOINT TECHNOLOGY OFFICE.

    (a) Deadline for Selection of Site.--The Secretary of Defense shall 
locate the Joint Technology Office called for in the High Energy Laser 
Master Plan referred to in section 242 at a location determined 
appropriate by the Secretary not later than 30 days after the date of 
the enactment of this Act.
    (b) Consideration of Site.--In determining the location of the 
Joint Technology Office, the Secretary shall, in consultation with the 
Deputy Under Secretary of Defense for Science and Technology, assess--
            (1) cost;
            (2) accessibility between the Office and the Armed Forces 
        and senior Department of Defense leaders; and
            (3) the advantages and disadvantages of locating the Office 
        at a site at which occurs a substantial proportion of the 
        directed energy research, development, test, and evaluation 
        activities of the Department of Defense.

SEC. 245. HIGH ENERGY LASER INFRASTRUCTURE IMPROVEMENTS.

    (a) Enhancement of Industrial Base.--The Secretary of Defense shall 
consider, evaluate, and undertake to the extent appropriate 
initiatives, including investment initiatives, to enhance the 
industrial base to support military applications of high energy laser 
technologies and systems.
    (b) Enhancement of Test and Evaluation Capabilities.--The Secretary 
of Defense shall consider modernizing the High Energy Laser Test 
Facility at White Sands Missile Range, New Mexico, in order to enhance 
the test and evaluation capabilities of the Department of Defense with 
respect to high energy laser weapons.

SEC. 246. COOPERATIVE PROGRAMS AND ACTIVITIES.

    (a) Memorandum of Agreement With NNSA.--(1) The Secretary of 
Defense and the Administrator for Nuclear Security of the Department of 
Energy shall enter into a memorandum of agreement to conduct joint 
research and development on military applications of high energy 
lasers.
    (2) The projects pursued under the memorandum of agreement--
            (A) shall be of mutual benefit to the national security 
        programs of the Department of Defense and the National Nuclear 
        Security Administration of the Department of Energy;
            (B) shall be prioritized jointly by officials designated to 
        do so by the Secretary of Defense and the Administrator; and
            (C) shall be consistent with the technology plan prepared 
        pursuant to section 243(b)(4) and the requirements identified 
        in section 243(c).
    (3) The costs of each project pursued under the memorandum of 
agreement shall be shared equally by the Department of Defense and the 
National Nuclear Security Administration.
    (4) The memorandum of agreement shall provide for appropriate peer 
review of projects pursued under the memorandum of agreement.
    (b) Evaluation of Other Cooperative Programs and Activities.--The 
Secretary of Defense shall evaluate the feasibility and advisability of 
entering into cooperative programs or activities with other Federal 
agencies, institutions of higher education, and the private sector for 
the purpose of enhancing the programs, projects, and activities of the 
Department of Defense relating to high energy laser technologies, 
systems, and weapons.

SEC. 247. TECHNOLOGY PLAN.

    The designated official shall submit to the congressional defense 
committees by February 15, 2001, the technology plan prepared pursuant 
to section 243(b)(4). The report shall be submitted in unclassified 
and, if necessary, classified form.

SEC. 248. ANNUAL REPORT.

    Not later than February 15 of 2001, 2002, and 2003, the Secretary 
of Defense shall submit to the congressional defense committees a 
report on the high energy laser programs of the Department of Defense. 
Each report shall include an assessment of the following:
            (1) The adequacy of the management structure of the 
        Department of Defense for the high energy laser programs.
            (2) The funding available for the high energy laser 
        programs.
            (3) The technical progress achieved for the high energy 
        laser programs.
            (4) The extent to which goals and objectives of the high 
        energy laser technology plan have been met.

SEC. 249. DEFINITION.

    For purposes of this subtitle, the term ``high energy laser'' means 
a laser that has average power in excess of one kilowatt and that has 
potential weapons applications.

SEC. 250. REVIEW OF DEFENSE-WIDE DIRECTED ENERGY PROGRAMS.

    (a) Evaluation.--The Secretary of Defense, in consultation with the 
Deputy Under Secretary of Defense for Science and Technology, shall 
evaluate expansion of the High Energy Laser management structure 
specified in section 242 for possible inclusion in that management 
structure of science and technology programs in related areas, 
including the following:
            (1) High power microwave technologies.
            (2) Low energy and nonlethal laser technologies.
            (3) Other directed energy technologies.
    (b) Consideration of Prior Study.--The evaluation under subsection 
(a) shall take into consideration the July 1999 Department of Defense 
study on streamlining and coordinating science and technology and 
research, development, test, and evaluation within the Department of 
Defense.
    (c) Report.--The Secretary of Defense shall submit to the 
congressional defense committees a report on the findings of the 
evaluation under subsection (a). The report shall be submitted not 
later than March 15, 2001.

                       Subtitle E--Other Matters

SEC. 251. REPORTS ON MOBILE OFFSHORE BASE CONCEPT AND POTENTIAL USE FOR 
              CERTAIN PURPOSES OF TECHNOLOGIES ASSOCIATED WITH THAT 
              CONCEPT.

    (a) Report on Merits of Mobile Offshore Base Concept.--Not later 
than March 1, 2001, the Secretary of Defense shall submit to the 
congressional defense committees a report on the mobile offshore base 
concept. The report shall include the following:
            (1) A cost-benefit analysis of the mobile offshore base, 
        using operational concepts that would support the National 
        Military Strategy.
            (2) A recommendation regarding whether to proceed with the 
        mobile offshore base as a program and, if so--
                    (A) a statement regarding which of the Armed Forces 
                is to be designated to have the lead responsibility for 
                the program; and
                    (B) a schedule for the program.
    (b) Report on Potential Use for Certain Purposes of Associated 
Technologies.--Not later than March 1, 2001, the Secretary of the Navy 
shall submit to the congressional defense committees a report on the 
potential use of technologies associated with the mobile offshore base 
concept. The report shall include an assessment of the potential 
application and feasibility of using existing technologies, including 
those technologies associated with the mobile offshore base concept, to 
a sea-based landing platform for support of naval aviation training.

SEC. 252. AIR FORCE SCIENCE AND TECHNOLOGY PLANNING.

    (a) Requirement for Review.--The Secretary of the Air Force shall 
conduct a review of the long-term challenges and short-term objectives 
of the Air Force science and technology programs. The Secretary shall 
complete the review not later than one year after the date of the 
enactment of this Act.
    (b) Matters To Be Reviewed.--The review shall include the 
following:
            (1) An assessment of the budgetary resources that are being 
        used for fiscal year 2001 for addressing the long-term 
        challenges and the short-term objectives of the Air Force 
        science and technology programs.
            (2) The budgetary resources that are necessary to address 
        those challenges and objectives adequately.
            (3) A course of action for each projected or ongoing Air 
        Force science and technology program that does not address 
        either the long-term challenges or the short-term objectives.
            (4) The matters required under subsection (c)(5) and 
        (d)(6).
    (c) Long-Term Challenges.--(1) The Secretary of the Air Force shall 
establish an integrated product team to identify high-risk, high-payoff 
challenges that will provide a long-term focus and motivation for the 
Air Force science and technology programs over the next 20 to 50 years 
following the enactment of this Act. The integrated product team shall 
include representatives of the Office of Scientific Research and 
personnel from the Air Force Research Laboratory.
    (2) The team shall solicit views from the entire Air Force science 
and technology community on the matters under consideration by the 
team.
    (3) The team--
            (A) shall select for consideration science and technology 
        challenges that involve--
                    (i) compelling requirements of the Air Force;
                    (ii) high-risk, high-payoff areas of exploration; 
                and
                    (iii) very difficult, but probably achievable, 
                results; and
            (B) should not select a linear extension of any ongoing Air 
        Force science and technology program for consideration as a 
        science and technology challenge under subparagraph (A).
    (4) The Deputy Assistant Secretary of the Air Force for Science, 
Technology, and Engineering shall designate a technical coordinator and 
a management coordinator for each science and technology challenge 
identified pursuant to this subsection. Each technical coordinator 
shall have sufficient expertise in fields related to the challenge to 
be able to identify other experts in such fields and to affirm the 
credibility of the challenge. The coordinator for a science and 
technology challenge shall conduct workshops within the relevant 
scientific and technological community to obtain suggestions for 
possible approaches to addressing the challenge and to identify ongoing 
work that addresses the challenge, deficiencies in current work 
relating to the challenge, and promising areas of research.
    (5) In carrying out subsection (a), the Secretary of the Air Force 
shall review the science and technology challenges identified pursuant 
to this subsection and, for each such challenge, at a minimum--
            (A) consider the results of the workshops conducted 
        pursuant to paragraph (4); and
            (B) identify any work not currently funded by the Air Force 
        that should be performed to meet the challenge.
    (d) Short-Term Objectives.--(1) The Secretary of the Air Force 
shall establish a task force to identify short-term technological 
objectives of the Air Force science and technology programs. The task 
force shall be chaired by the Deputy Assistant Secretary of the Air 
Force for Science, Technology, and Engineering and shall include 
representatives of the Chief of Staff of the Air Force and the 
specified combatant commands of the Air Force.
    (2) The task force shall solicit views from the entire Air Force 
requirements community, user community, and acquisition community.
    (3) The task force shall select for consideration short-term 
objectives that involve--
            (A) compelling requirements of the Air Force;
            (B) support in the user community; and
            (C) likely attainment of the desired benefits within a 
        five-year period.
    (4) The Deputy Assistant Secretary of the Air Force for Science, 
Technology, and Engineering shall establish an integrated product team 
for each short-term objective identified pursuant to this subsection. 
Each integrated product team shall include representatives of the 
requirements community, the user community, and the science and 
technology community with relevant expertise.
    (5) The integrated product team for a short-term objective shall be 
responsible for--
            (A) identifying, defining, and prioritizing the enabling 
        capabilities that are necessary for achieving the objective;
            (B) identifying deficiencies in the enabling capabilities 
        that must be addressed if the short-term objective is to be 
        achieved; and
            (C) working with the Air Force science and technology 
        community to identify science and technology projects and 
        programs that should be undertaken to eliminate each deficiency 
        in an enabling capability.
    (6) In carrying out subsection (a), the Secretary of the Air Force 
shall review the short-term science and technology objectives 
identified pursuant to this subsection and, for each such objective, at 
a minimum--
            (A) consider the work of the integrated product team 
        conducted pursuant to paragraph (5); and
            (B) identify the science and technology work of the Air 
        Force that should be undertaken to eliminate each deficiency in 
        enabling capabilities that is identified by the integrated 
        product team pursuant to subparagraph (B) of that paragraph.
    (e) Comptroller General Review.--(1) Not later than 90 days after 
the Secretary of the Air Force completes the review required by 
subsection (a), the Comptroller General shall submit to Congress a 
report on the results of the review. The report shall include the 
Comptroller General's assessment regarding the extent to which the 
review was conducted in compliance with the requirements of this 
section.
    (2) Immediately upon completing the review required by subsection 
(a), the Secretary of Defense shall notify the Comptroller General of 
the completion of the review. For the purposes of paragraph (1), the 
date of the notification shall be considered the date of the completion 
of the review.

SEC. 253. ENHANCEMENT OF AUTHORITIES REGARDING EDUCATION PARTNERSHIPS 
              FOR PURPOSES OF ENCOURAGING SCIENTIFIC STUDY.

    (a) Assistance in Support of Partnerships.--Subsection (b) of 
section 2194 of title 10, United States Code, is amended--
            (1) in the matter preceding paragraph (1), by inserting ``, 
        and is encouraged to provide,'' after ``may provide'';
            (2) in paragraph (1), by inserting before the semicolon the 
        following: ``for any purpose and duration in support of such 
        agreement that the director considers appropriate''; and
            (3) by striking paragraph (2) and inserting the following 
        new paragraph (2):
            ``(2) notwithstanding the provisions of the Federal 
        Property and Administrative Services Act of 1949 (40 U.S.C. 471 
        et seq.) or any provision of law or regulation relating to 
        transfers of surplus property, transferring to the institution 
        any computer equipment, or other scientific equipment, that 
        is--
                    ``(A) commonly used by educational institutions;
                    ``(B) surplus to the needs of the defense 
                laboratory; and
                    ``(C) determined by the director to be appropriate 
                for support of such agreement;''.
    (b) Defense Laboratory Defined.--Subsection (e) of that section is 
amended to read as follows:
    ``(e) In this section:
            ``(1) The term `defense laboratory' means any laboratory, 
        product center, test center, depot, training and educational 
        organization, or operational command under the jurisdiction of 
        the Department of Defense.
            ``(2) The term `local educational agency' has the meaning 
        given such term in section 14101 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 8801).''.

SEC. 254. RECOGNITION OF THOSE INDIVIDUALS INSTRUMENTAL TO NAVAL 
              RESEARCH EFFORTS DURING THE PERIOD FROM BEFORE WORLD WAR 
              II THROUGH THE END OF THE COLD WAR.

    (a) Findings.--Congress makes the following findings:
            (1) The contributions of the Nation's scientific community 
        and of science research to the victory of the United States and 
        its allies in World War II resulted in the understanding that 
        science and technology are of critical importance to the future 
        security of the Nation.
            (2) Academic institutions and oceanographers provided vital 
        support to the Navy and the Marine Corps during World War II.
            (3) Congress created the Office of Naval Research in the 
        Department of the Navy in 1946 to ensure the availability of 
        resources for research in oceanography and other fields related 
        to the missions of the Navy and Marine Corps.
            (4) The Office of Naval Research of the Department of the 
        Navy, in addition to its support of naval research within the 
        Federal Government, has also supported the conduct of 
        oceanographic and scientific research through partnerships with 
        educational and scientific institutions throughout the Nation.
            (5) These partnerships have long been recognized as among 
        the most innovative and productive research partnerships ever 
        established by the Federal Government and have resulted in a 
        vast improvement in understanding of basic ocean processes and 
        the development of new technologies critical to the security 
        and defense of the Nation.
    (b) Congressional Recognition and Appreciation.--Congress--
            (1) applauds the commitment and dedication of the officers, 
        scientists, researchers, students, and administrators who were 
        instrumental to the program of partnerships for oceanographic 
        and scientific research between the Federal Government and 
        academic institutions, including those individuals who helped 
        forge that program before World War II, implement it during 
        World War II, and improve it throughout the Cold War;
            (2) recognizes that the Nation, in ultimately prevailing in 
        the Cold War, relied to a significant extent on research 
        supported by, and technologies developed through, those 
        partnerships and, in particular, on the superior understanding 
        of the ocean environment generated through that research;
            (3) supports efforts by the Secretary of the Navy and the 
        Chief of Naval Research to honor those individuals, who 
        contributed so greatly and unselfishly to the naval mission and 
        the national defense, through those partnerships during the 
        period beginning before World War II and continuing through the 
        end of the Cold War; and
            (4) expresses appreciation for the ongoing efforts of the 
        Office of Naval Research to support oceanographic and 
        scientific research and the development of researchers in those 
        fields, to ensure that such partnerships will continue to make 
        important contributions to the defense and the general welfare 
        of the Nation.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Joint warfighting capabilities assessment teams.
                  Subtitle B--Environmental Provisions

Sec. 311. Establishment of additional environmental restoration account 
                            and use of accounts for operation and 
                            monitoring of environmental remedies.
Sec. 312. Certain environmental restoration activities.
Sec. 313. Annual reports under Strategic Environmental Research and 
                            Development Program.
Sec. 314. Payment of fines and penalties for environmental compliance 
                            at Fort Wainwright, Alaska.
Sec. 315. Payment of fines or penalties imposed for environmental 
                            compliance violations at other Department 
                            of Defense facilities.
Sec. 316. Reimbursement for certain costs in connection with the former 
                            Nansemond Ordnance Depot Site, Suffolk, 
                            Virginia.
Sec. 317. Necessity of military low-level flight training to protect 
                            national security and enhance military 
                            readiness.
Sec. 318. Ship disposal project.
Sec. 319. Defense Environmental Security Corporate Information 
                            Management Program.
Sec. 320. Report on Plasma Energy Pyrolysis System.
Sec. 321. Sense of Congress regarding environmental restoration of 
                            former defense manufacturing site, Santa 
                            Clarita, California.
  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Use of appropriated funds to cover operating expenses of 
                            commissary stores.
Sec. 332. Adjustment of sales prices of commissary store goods and 
                            services to cover certain expenses.
Sec. 333. Use of surcharges for construction and improvement of 
                            commissary stores.
Sec. 334. Inclusion of magazines and other periodicals as an authorized 
                            commissary merchandise category.
Sec. 335. Use of most economical distribution method for distilled 
                            spirits.
Sec. 336. Report on effects of availability of slot machines on United 
                            States military installations overseas.
        Subtitle D--Department of Defense Industrial Facilities

Sec. 341. Designation of Centers of Industrial and Technical Excellence 
                            and public-private partnerships to increase 
                            utilization of such centers.
Sec. 342. Unutilized and underutilized plant-capacity costs of United 
                            States arsenals.
Sec. 343. Arsenal support program initiative.
Sec. 344. Codification and improvement of armament retooling and 
                            manufacturing support programs.
     Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Inclusion of additional information in reports to Congress 
                            required before conversion of commercial or 
                            industrial type functions to contractor 
                            performance.
Sec. 352 Effects of outsourcing on overhead costs of Centers of 
                            Industrial and Technical Excellence and 
                            Army ammunition plants.
Sec. 353. Consolidation, restructuring, or reengineering of Department 
                            of Defense organizations, functions, or 
                            activities.
Sec. 354. Monitoring of savings resulting from workforce reductions as 
                            part of conversion of functions to 
                            performance by private sector or other 
                            strategic sourcing initiatives.
Sec. 355. Performance of emergency response functions at chemical 
                            weapons storage installations.
Sec. 356. Suspension of reorganization or relocation of Naval Audit 
                            Service.
                Subtitle F--Defense Dependents Education

Sec. 361. Eligibility of dependents of American Red Cross employees for 
                            enrollment in Department of Defense 
                            domestic dependent schools in Puerto Rico.
Sec. 362. Assistance to local educational agencies that benefit 
                            dependents of members of the Armed Forces 
                            and Department of Defense civilian 
                            employees.
Sec. 363. Impact aid for children with severe disabilities.
Sec. 364. Assistance for maintenance, repair, and renovation of school 
                            facilities that serve dependents of members 
                            of the Armed Forces and Department of 
                            Defense civilian employees.
                 Subtitle G--Military Readiness Issues

Sec. 371. Measuring cannibalization of parts, supplies, and equipment 
                            under readiness reporting system.
Sec. 372. Reporting requirements regarding transfers from high-priority 
                            readiness appropriations.
Sec. 373. Effects of worldwide contingency operations on readiness of 
                            military aircraft and equipment.
Sec. 374. Identification of requirements to reduce backlog in 
                            maintenance and repair of defense 
                            facilities.
Sec. 375. New methodology for preparing budget requests to satisfy Army 
                            readiness requirements.
Sec. 376. Review of AH-64 aircraft program.
Sec. 377. Report on Air Force spare and repair parts program for C-5 
                            aircraft.
                       Subtitle H--Other Matters

Sec. 381. Annual report on public sale of certain military equipment 
                            identified on United States Munitions List.
Sec. 382. Resale of armor-piercing ammunition disposed of by the Army.
Sec. 383. Reimbursement by civil air carriers for support provided at 
                            Johnston Atoll.
Sec. 384. Travel by Reserves on military aircraft.
Sec. 385. Overseas airlift service on Civil Reserve Air Fleet aircraft.
Sec. 386. Additions to plan for ensuring visibility over all in-transit 
                            end items and secondary items.
Sec. 387. Reauthorization of pilot program for acceptance and use of 
                            landing fees charged for use of domestic 
                            military airfields by civil aircraft.
Sec. 388. Extension of authority to sell certain aircraft for use in 
                            wildfire suppression.
Sec. 389. Damage to aviation facilities caused by alkali silica 
                            reactivity.
Sec. 390. Demonstration project to increase reserve component internet 
                            access and services in rural communities.
Sec. 391. Additional conditions on implementation of Defense Joint 
                            Accounting System.
Sec. 392. Report on Defense Travel System.
Sec. 393. Review of Department of Defense costs of maintaining 
                            historical properties.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the Army, $19,280,381,000.
            (2) For the Navy, $23,766,610,000.
            (3) For the Marine Corps, $2,826,291,000.
            (4) For the Air Force, $22,395,221,000.
            (5) For Defense-wide activities, $11,740,569,000.
            (6) For the Army Reserve, $1,561,418,000.
            (7) For the Naval Reserve, $978,946,000.
            (8) For the Marine Corps Reserve, $144,159,000.
            (9) For the Air Force Reserve, $1,903,859,000.
            (10) For the Army National Guard, $3,233,835,000.
            (11) For the Air National Guard, $3,468,375,000.
            (12) For the Defense Inspector General, $144,245,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $8,574,000.
            (14) For Environmental Restoration, Army, $389,932,000.
            (15) For Environmental Restoration, Navy, $294,038,000.
            (16) For Environmental Restoration, Air Force, 
        $376,300,000.
            (17) For Environmental Restoration, Defense-wide, 
        $21,412,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $231,499,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $55,900,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $869,000,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $25,000,000.
            (22) For Defense Health Program, $11,480,123,000.
            (23) For Cooperative Threat Reduction programs, 
        $443,400,000.
            (24) For Overseas Contingency Operations Transfer Fund, 
        $4,100,577,000.
            (25) For Quality of Life Enhancements, Defense-Wide, 
        $10,500,000.

SEC. 302. WORKING CAPITAL FUNDS.

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

SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

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

SEC. 305. JOINT WARFIGHTING CAPABILITIES ASSESSMENT TEAMS.

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

                  Subtitle B--Environmental Provisions

SEC. 311. ESTABLISHMENT OF ADDITIONAL ENVIRONMENTAL RESTORATION ACCOUNT 
              AND USE OF ACCOUNTS FOR OPERATION AND MONITORING OF 
              ENVIRONMENTAL REMEDIES.

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

SEC. 312. CERTAIN ENVIRONMENTAL RESTORATION ACTIVITIES.

    Subsection (b) of section 2703 of title 10, United States Code, is 
amended to read as follows:
    ``(b) Obligation of Authorized Amounts.--(1) Funds authorized for 
deposit in an account under subsection (a) may be obligated or expended 
from the account only--
            ``(A) to carry out the environmental restoration functions 
        of the Secretary of Defense and the Secretaries of the military 
        departments under this chapter and under any other provision of 
        law; and
            ``(B) to pay for the costs of permanently relocating a 
        facility because of a release or threatened release of 
        hazardous substances, pollutants, or contaminants from--
                    ``(i) real property on which the facility is 
                located and that is currently under the jurisdiction of 
                the Secretary of Defense or the Secretary of a military 
                department; or
                    ``(ii) real property on which the facility is 
                located and that was under the jurisdiction of the 
                Secretary of Defense or the Secretary of a military 
                department at the time of the actions leading to the 
                release or threatened release.
    ``(2) The authority provided by paragraph (1)(B) expires September 
30, 2003. The Secretary of Defense or the Secretary of a military 
department may not pay the costs of permanently relocating a facility 
under such paragraph unless the Secretary--
            ``(A) determines that permanent relocation--
                    ``(i) is the most cost effective method of 
                responding to the release or threatened release of 
                hazardous substances, pollutants, or contaminants from 
                the real property on which the facility is located;
                    ``(ii) has the approval of relevant regulatory 
                agencies; and
                    ``(iii) is supported by the affected community; and
            ``(B) submits to Congress written notice of the 
        determination before undertaking the permanent relocation of 
        the facility, including a description of the response action 
        taken or to be taken in connection with the permanent 
        relocation and a statement of the costs incurred or to be 
        incurred in connection with the permanent relocation.
    ``(3) If relocation costs are to be paid under paragraph (1)(B) 
with respect to a facility located on real property described in clause 
(ii) of such paragraph, the Secretary of Defense or the Secretary of 
the military department concerned may use only fund transfer mechanisms 
otherwise available to the Secretary.
    ``(4) Funds authorized for deposit in an account under subsection 
(a) shall remain available until expended. Not more than 5 percent of 
the funds deposited in an account under subsection (a) for a fiscal 
year may be used to pay relocation costs under paragraph (1)(B).''.

SEC. 313. ANNUAL REPORTS UNDER STRATEGIC ENVIRONMENTAL RESEARCH AND 
              DEVELOPMENT PROGRAM.

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

SEC. 314. PAYMENT OF FINES AND PENALTIES FOR ENVIRONMENTAL COMPLIANCE 
              AT FORT WAINWRIGHT, ALASKA.

    The Secretary of Defense, or the Secretary of the Army, may pay, as 
part of a settlement of liability, a fine or penalty of not more than 
$2,000,000 for matters addressed in the Notice of Violation issued on 
March 5, 1999, by the Administrator of the Environmental Protection 
Agency to Fort Wainwright, Alaska.

SEC. 315. PAYMENT OF FINES OR PENALTIES IMPOSED FOR ENVIRONMENTAL 
              COMPLIANCE VIOLATIONS AT OTHER DEPARTMENT OF DEFENSE 
              FACILITIES.

    (a) Army Violations.--Using amounts authorized to be appropriated 
by section 301(1) for operation and maintenance for the Army, the 
Secretary of the Army may pay the following amounts in connection with 
environmental compliance violations at the following locations:
            (1) $993,000 for a supplemental environmental project to 
        implement an installation-wide hazardous substance management 
        system at Walter Reed Army Medical Center, Washington, District 
        of Columbia, in satisfaction of a fine imposed by Environmental 
        Protection Agency Region 3 under the Solid Waste Disposal Act 
        (42 U.S.C. 6901 et seq.).
            (2) $377,250 for a supplemental environmental project to 
        install new parts washers at Fort Campbell, Kentucky, in 
        satisfaction of a fine imposed by Environmental Protection 
        Agency Region 4 under the Solid Waste Disposal Act.
            (3) $20,701 for a supplemental environmental project to 
        upgrade the wastewater treatment plant at Fort Gordon, Georgia, 
        in satisfaction of a fine imposed by the State of Georgia under 
        the Solid Waste Disposal Act.
            (4) $78,500 for supplemental environmental projects to 
        reduce the generation of hazardous waste at Pueblo Chemical 
        Depot, Colorado, in satisfaction of a fine imposed by the State 
        of Colorado under the Solid Waste Disposal Act.
            (5) $20,000 for a supplemental environmental project to 
        repair cracks in floors of igloos used to store munitions 
        hazardous waste at Deseret Chemical Depot, Utah, in 
        satisfaction of a fine imposed by the State of Utah under the 
        Solid Waste Disposal Act.
            (6) $7,975 for payment to the Texas Natural Resource 
        Conservation Commission of a cash penalty for permit violations 
        assessed with respect to Fort Sam Houston, Texas, under the 
        Solid Waste Disposal Act.
    (b) Navy Violations.--Using amounts authorized to be appropriated 
by section 301(2) for operation and maintenance for the Navy, the 
Secretary of the Navy may pay the following amounts in connection with 
environmental compliance violations at the following locations:
            (1) $108,800 for payment to the West Virginia Division of 
        Environmental Protection of a cash penalty with respect to 
        Allegany Ballistics Laboratory, West Virginia, under the Solid 
        Waste Disposal Act.
            (2) $5,000 for payment to Environmental Protection Agency 
        Region 6 of a cash penalty with respect to Naval Air Station, 
        Corpus Christi, Texas, under the Clean Air Act (42 U.S.C. 
        7401).
            (3) $1,650 for payment to Environmental Protection Agency 
        Region 3 of a cash penalty with respect to Marine Corps Combat 
        Development Command, Quantico, Virginia, under the Clean Air 
        Act.

SEC. 316. REIMBURSEMENT FOR CERTAIN COSTS IN CONNECTION WITH THE FORMER 
              NANSEMOND ORDNANCE DEPOT SITE, SUFFOLK, VIRGINIA.

    (a) Authority.--The Secretary of Defense may pay, using funds 
described in subsection (b), not more than $98,210 to the Former 
Nansemond Ordnance Depot Site Special Account within the Hazardous 
Substance Superfund established by section 9507 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9507) to reimburse the Environmental Protection 
Agency for costs incurred by the agency in overseeing a time critical 
removal action under CERCLA being performed by the Department of 
Defense under the Defense Environmental Restoration Program for 
ordnance and explosive safety hazards at the Former Nansemond Ordnance 
Depot Site, Suffolk, Virginia, pursuant to an Interagency Agreement 
entered into by the Department of the Army and the Environmental 
Protection Agency on January 3, 2000.
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using amounts authorized to be appropriated by section 301 to the 
Environmental Restoration Account, Formerly Used Defense Sites, 
established by paragraph (5) of section 2703(a) of title 10, United 
States Code, as added by section 311(a) of this Act.
    (c) Definitions.--In this section:
            (1) The term ``CERCLA'' means the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601 et seq.).
            (2) The term ``Defense Environmental Restoration Program'' 
        means the program of environmental restoration carried out 
        under chapter 160 of title 10, United States Code.

SEC. 317. NECESSITY OF MILITARY LOW-LEVEL FLIGHT TRAINING TO PROTECT 
              NATIONAL SECURITY AND ENHANCE MILITARY READINESS.

    Nothing in the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) or the regulations implementing such law shall require 
the Secretary of Defense or the Secretary of a military department to 
prepare a programmatic, nation-wide environmental impact statement for 
low-level flight training as a precondition to the use by the Armed 
Forces of an airspace for the performance of low-level training 
flights.

SEC. 318. SHIP DISPOSAL PROJECT.

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

SEC. 319. DEFENSE ENVIRONMENTAL SECURITY CORPORATE INFORMATION 
              MANAGEMENT PROGRAM.

    (a) Management and Oversight of Program.--The Chief Information 
Officer of the Department of Defense shall ensure that management and 
oversight of the Defense Environmental Security Corporate Information 
Management Program is consistent with the requirements of the Clinger-
Cohen Act of 1996 (divisions D and E of Public Law 104-106), section 
2223 of title 10, United States Code, Department of Defense Directives 
5000.1, 5000.2-R, and 5137.1, and all other laws, directives, 
regulations, and management controls applicable to investment in 
information technology and related services.
    (b) Program Report Required.--Not later than 60 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report on the Defense 
Environmental Security Corporate Information Management Program.
    (c) Mission.--The report shall include a mission statement and 
strategic objectives for the Defense Environmental Security Corporate 
Information Management Program, including the recommendations of the 
Secretary for the future mission and objectives of the Program.
    (d) Personnel, Organization, and Oversight.--The report shall 
include--
            (1) the personnel requirements and organizational structure 
        of the Defense Environmental Security Corporate Information 
        Management Program to carry out the mission statement; and
            (2) a discussion of--
                    (A) the means by which the Program will ensure 
                program accountability, including accountability for 
                all past, current, and future activities funded under 
                the Program; and
                    (B) the role of the Chief Information Officer of 
                the Department of Defense in ensuring program 
                accountability as required by subsection (a).
    (e) Program Activities.--The report shall include a discussion of 
the means by which the Defense Environmental Security Corporate 
Information Management Program will address or provide--
            (1) information access procedures that keep pace with 
        current and evolving requirements for information access;
            (2) data standardization and systems integration;
            (3) product failures and cost-effective results;
            (4) user confidence and utilization; and
            (5) program continuity.

SEC. 320. REPORT ON PLASMA ENERGY PYROLYSIS SYSTEM.

    (a) Report Required.--Not later than February 1, 2001, the 
Secretary of the Army shall submit to the congressional defense 
committees a report on the Plasma Energy Pyrolysis System.
    (b) Report Elements.--The report on the Plasma Energy Pyrolysis 
System shall include the following:
            (1) An analysis of available information and data on the 
        fixed-transportable unit demonstration phase of the System and 
        on the mobile unit demonstration phase of the System.
            (2) Recommendations regarding future applications for each 
        phase of the System described in paragraph (1).
            (3) A statement of the projected funding for such future 
        applications.

SEC. 321. SENSE OF CONGRESS REGARDING ENVIRONMENTAL RESTORATION OF 
              FORMER DEFENSE MANUFACTURING SITE, SANTA CLARITA, 
              CALIFORNIA.

    It is the sense of the Congress that--
            (1) there exists a 1,000-acre former defense manufacturing 
        site in Santa Clarita, California (known as the ``Santa Clarita 
        site''), that could be environmentally restored to serve a 
        future role in the community, and every effort should be made 
        to apply all known public and private sector innovative 
        technologies to restore the Santa Clarita site to productive 
        use for the benefit of the community; and
            (2) the experience gained from environmental restoration at 
        the Santa Clarita site by private and public sector 
        partnerships has the potential to benefit not only the 
        community of Santa Clarita, but all sites in need of 
        environmental restoration.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 331. USE OF APPROPRIATED FUNDS TO COVER OPERATING EXPENSES OF 
              COMMISSARY STORES.

    (a) In General.--(1) Section 2484 of title 10, United States Code, 
is amended to read as follows:
``Sec. 2484. Commissary stores: use of appropriated funds to cover 
              operating expenses
    ``(a) Operation of Agency and System.--Except as otherwise provided 
in this title, the operation of the Defense Commissary Agency and the 
defense commissary system may be funded using such amounts as are 
appropriated for such purpose.
    ``(b) Operating Expenses of Commissary Stores.--Appropriated funds 
may be used to cover the expenses of operating commissary stores and 
central product processing facilities of the defense commissary system. 
For purposes of this subsection, operating expenses include the 
following:
            ``(1) Salaries and wages of employees of the United States, 
        host nations, and contractors supporting commissary store 
        operations.
            ``(2) Utilities.
            ``(3) Communications.
            ``(4) Operating supplies and services.
            ``(5) Second destination transportation costs within or 
        outside the United States.
            ``(6) Any cost associated with above-store-level management 
        or other indirect support of a commissary store or a central 
        product processing facility, including equipment maintenance 
        and information technology costs.''.
    (2) The table of sections at the beginning of chapter 147 of such 
title is amended by striking the item relating to section 2484 and 
inserting the following new item:

``2484. Commissary stores: use of appropriated funds to cover operating 
                            expenses.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2001.

SEC. 332. ADJUSTMENT OF SALES PRICES OF COMMISSARY STORE GOODS AND 
              SERVICES TO COVER CERTAIN EXPENSES.

    (a) Adjustment Required.--Section 2486 of title 10, United States 
Code, is amended--
            (1) in subsection (c), by striking ``section 2484(b) or'' 
        and inserting ``subsection (d) or section''; and
            (2) in subsection (d)--
                    (A) in paragraph (1), by striking ``sections 2484 
                and'' and inserting ``section''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3) The sales price of merchandise and services sold in, at, or 
by commissary stores shall be adjusted to cover the following:
            ``(A) The cost of first destination commercial 
        transportation of the merchandise in the United States to the 
        place of sale.
            ``(B) The actual or estimated cost of shrinkage, spoilage, 
        and pilferage of merchandise under the control of commissary 
        stores.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2001.

SEC. 333. USE OF SURCHARGES FOR CONSTRUCTION AND IMPROVEMENT OF 
              COMMISSARY STORES.

    (a) Expansion of Authorized Uses.--Subsection (b) of section 2685 
of title 10, United States Code, is amended to read as follows:
    ``(b) Use for Construction, Repair, Improvement, and Maintenance.--
(1) The Secretary of Defense may use the proceeds from the adjustments 
or surcharges authorized by subsection (a) only--
            ``(A) to acquire (including acquisition by lease), 
        construct, convert, expand, improve, repair, maintain, and 
        equip the physical infrastructure of commissary stores and 
        central product processing facilities of the defense commissary 
        system; and
            ``(B) to cover environmental evaluation and construction 
        costs related to activities described in paragraph (1), 
        including costs for surveys, administration, overhead, 
        planning, and design.
    ``(2) In paragraph (1), the term `physical infrastructure' includes 
real property, utilities, and equipment (installed and free standing 
and including computer equipment), necessary to provide a complete and 
usable commissary store or central product processing facility.''.
    (b) Authority of Secretary of Defense.--Such section is further 
amended--
            (1) in subsection (a), by striking ``Secretary of a 
        military department, under regulations established by him and 
        approved by the Secretary of Defense,'' and inserting 
        ``Secretary of Defense'';
            (2) in subsection (c)--
                    (A) by striking ``Secretary of a military 
                department, with the approval of the Secretary of 
                Defense and'' and inserting ``Secretary of Defense, 
                with the approval of''; and
                    (B) by striking ``Secretary of the military 
                department determines'' and inserting ``Secretary 
                determines''; and
            (3) in subsection (d)(1), by striking ``Secretary of a 
        military department'' and inserting ``Secretary of Defense''.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2001.

SEC. 334. INCLUSION OF MAGAZINES AND OTHER PERIODICALS AS AN AUTHORIZED 
              COMMISSARY MERCHANDISE CATEGORY.

    (a) Additional Authorized Category.--Subsection (b) of section 2486 
of title 10, United States Code, is amended--
            (1) by redesignating paragraph (11) as paragraph (12); and
            (2) by inserting after paragraph (10) the following new 
        paragraph:
            ``(11) Magazines and other periodicals.''.
    (b) Conforming Amendments.--Subsection (f) of such section is 
amended--
            (1) by striking ``(1)'' before ``Notwithstanding'';
            (2) by striking ``items in the merchandise categories 
        specified in paragraph (2)'' and inserting ``tobacco 
        products''; and
            (3) by striking paragraph (2).

SEC. 335. USE OF MOST ECONOMICAL DISTRIBUTION METHOD FOR DISTILLED 
              SPIRITS.

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

SEC. 336. REPORT ON EFFECTS OF AVAILABILITY OF SLOT MACHINES ON UNITED 
              STATES MILITARY INSTALLATIONS OVERSEAS.

    (a) Report Required.--Not later than March 31, 2001, the Secretary 
of Defense shall submit to Congress a report evaluating the effect that 
the ready availability of slot machines as a morale, welfare, and 
recreation activity on United States military installations outside of 
the United States has on members of the Armed Forces, their dependents, 
and other persons who use such slot machines, the morale of military 
communities overseas, and the personal financial stability of members 
of the Armed Forces.
    (b) Matters To Be Included.--The Secretary shall include in the 
report--
            (1) an estimate of the number of persons who used such slot 
        machines during the preceding two years and, of such persons, 
        the percentage who were enlisted members (shown both in the 
        aggregate and by pay grade), officers (shown both in the 
        aggregate and by pay grade), Department of Defense civilians, 
        other United States persons, and foreign nationals;
            (2) to the extent feasible, information with respect to 
        military personnel referred to in paragraph (1) showing the 
        number (as a percentage and by pay grade) who have--
                    (A) sought financial services counseling at least 
                partially due to the use of such slot machines;
                    (B) qualified for Government financial assistance 
                at least partially due to the use of such slot 
                machines; or
                    (C) had a personal check returned for insufficient 
                funds or received any other nonpayment notification 
                from a creditor at least partially due to the use of 
                such slot machines; and
            (3) to the extent feasible, information with respect to the 
        average amount expended by each category of persons referred to 
        in paragraph (1) in using such slot machines per visit, to be 
        shown by pay grade in the case of military personnel.

        Subtitle D--Department of Defense Industrial Facilities

SEC. 341. DESIGNATION OF CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE 
              AND PUBLIC-PRIVATE PARTNERSHIPS TO INCREASE UTILIZATION 
              OF SUCH CENTERS.

    (a) Designation Method.--Subsection (a) of section 2474 of title 
10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The Secretary of Defense'' and 
                inserting ``The Secretary concerned, or the Secretary 
                of Defense in the case of a Defense Agency,''; and
                    (B) by striking ``of the activity'' and inserting 
                ``of the designee'';
            (2) in paragraph (2)--
                    (A) by inserting ``of Defense'' after ``The 
                Secretary''; and
                    (B) by striking ``depot-level activities'' and 
                inserting ``Centers of Industrial and Technical 
                Excellence''; and
            (3) in paragraph (3)--
                    (A) by striking ``depot-level operations'' and 
                inserting ``operations at Centers of Industrial and 
                Technical Excellence'';
                    (B) by striking ``depot-level activities'' and 
                inserting ``the Centers''; and
                    (C) by striking ``such activities'' and inserting 
                ``the Centers''.
    (b) Public-Private Partnerships.--Subsection (b) of such section is 
amended to read as follows:
    ``(b) Public-Private Partnerships.--(1) To achieve one or more 
objectives set forth in paragraph (2), the Secretary designating a 
Center of Industrial and Technical Excellence under subsection (a) may 
authorize and encourage the head of the Center to enter into public-
private cooperative arrangements (in this section referred to as a 
`public-private partnership') to provide for any of the following:
            ``(A) For employees of the Center, private industry, or 
        other entities outside the Department of Defense to perform 
        (under contract, subcontract, or otherwise) work related to the 
        core competencies of the Center, including any depot-level 
        maintenance and repair work that involves one or more core 
        competencies of the Center.
            ``(B) For private industry or other entities outside the 
        Department of Defense to use, for any period of time determined 
        to be consistent with the needs of the Department of Defense, 
        any facilities or equipment of the Center that are not fully 
        utilized for a military department's own production or 
        maintenance requirements.
    ``(2) The objectives for exercising the authority provided in 
paragraph (1) are as follows:
            ``(A) To maximize the utilization of the capacity of a 
        Center of Industrial and Technical Excellence.
            ``(B) To reduce or eliminate the cost of ownership of a 
        Center by the Department of Defense in such areas of 
        responsibility as operations and maintenance and environmental 
        remediation.
            ``(C) To reduce the cost of products of the Department of 
        Defense produced or maintained at a Center.
            ``(D) To leverage private sector investment in--
                    ``(i) such efforts as plant and equipment 
                recapitalization for a Center; and
                    ``(ii) the promotion of the undertaking of 
                commercial business ventures at a Center.
            ``(E) To foster cooperation between the armed forces and 
        private industry.
    ``(3) If the Secretary concerned, or the Secretary of Defense in 
the case of a Defense Agency, authorizes the use of public-private 
partnerships under this subsection, the Secretary shall submit to 
Congress a report evaluating the need for loan guarantee authority, 
similar to the ARMS Initiative loan guarantee program under section 
4555 of this title, to facilitate the establishment of public-private 
partnerships and the achievement of the objectives set forth in 
paragraph (2).''.
    (c) Private Sector Use of Excess Capacity.--Such section is further 
amended--
            (1) by striking subsection (d);
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Private Sector Use of Excess Capacity.--Any facilities or 
equipment of a Center of Industrial and Technical Excellence made 
available to private industry may be used to perform maintenance or to 
produce goods in order to make more efficient and economical use of 
Government-owned industrial plants and encourage the creation and 
preservation of jobs to ensure the availability of a workforce with the 
necessary manufacturing and maintenance skills to meet the needs of the 
armed forces.''.
    (d) Crediting of Amounts for Performance.--Subsection (d) of such 
section, as redesignated by subsection (c)(2), is amended by adding at 
the end the following new sentences: ``Consideration in the form of 
rental payments or (notwithstanding section 3302(b) of title 31) in 
other forms may be accepted for a use of property accountable under a 
contract performed pursuant to this section. Notwithstanding section 
2667(d) of this title, revenues generated pursuant to this section 
shall be available for facility operations, maintenance, and 
environmental restoration at the Center where the leased property is 
located.''.
    (e) Availability of Excess Equipment to Private-Sector Partners.--
Such section is further amended by adding at the end the following new 
subsections:
    ``(e) Availability of Excess Equipment to Private-Sector 
Partners.--Equipment or facilities of a Center of Industrial and 
Technical Excellence may be made available for use by a private-sector 
entity under this section only if--
            ``(1) the use of the equipment or facilities will not have 
        a significant adverse effect on the readiness of the armed 
        forces, as determined by the Secretary concerned or, in the 
        case of a Center in a Defense Agency, by the Secretary of 
        Defense; and
            ``(2) the private-sector entity agrees--
                    ``(A) to reimburse the Department of Defense for 
                the direct and indirect costs (including any rental 
                costs) that are attributable to the entity's use of the 
                equipment or facilities, as determined by that 
                Secretary; and
                    ``(B) to hold harmless and indemnify the United 
                States from--
                            ``(i) any claim for damages or injury to 
                        any person or property arising out of the use 
                        of the equipment or facilities, except in a 
                        case of willful conduct or gross negligence; 
                        and
                            ``(ii) any liability or claim for damages 
                        or injury to any person or property arising out 
                        of a decision by the Secretary concerned or the 
                        Secretary of Defense to suspend or terminate 
                        that use of equipment or facilities during a 
                        war or national emergency.
    ``(f) Construction of Provision.--Nothing in this section may be 
construed to authorize a change, otherwise prohibited by law, from the 
performance of work at a Center of Industrial and Technical Excellence 
by Department of Defense personnel to performance by a contractor.''.
    (f) Use of Working Capital-Funded Facilities.--Section 2208(j)(1) 
of title 10, United States Code, is amended--
            (1) by striking ``contract; and'' at the end of 
        subparagraph (A) and all that follows through ``(B) the 
        solicitation'' and inserting ``contract, and the 
        solicitation'';
            (2) by striking the period at the end and inserting ``; 
        or''; and
            (3) by adding at the end the following new subparagraph:
            ``(B) the Secretary would advance the objectives set forth 
        in section 2474(b)(2) of this title by authorizing the facility 
        to do so.''.
    (g) Repeal of General Authority To Lease Excess Depot-Level 
Equipment and Facilities to Outside Tenants.--(1) Section 2471 of title 
10, United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 146 of such 
title is amended by striking the item relating to section 2471.

SEC. 342. UNUTILIZED AND UNDERUTILIZED PLANT-CAPACITY COSTS OF UNITED 
              STATES ARSENALS.

    (a) Treatment of Unutilized and Underutilized Plant-Capacity 
Costs.--Chapter 433 of title 10, United States Code, is amended by 
inserting after section 4540 the following new section:
``Sec. 4541. Army arsenals: treatment of unutilized or underutilized 
              plant-capacity costs
    ``(a) Estimate of Costs.--The Secretary of the Army shall include 
in the budget justification documents submitted to Congress in support 
of the President's budget for a fiscal year submitted under section 
1105 of title 31 an estimate of the funds to be required in that fiscal 
year to cover unutilized and underutilized plant-capacity costs at Army 
arsenals.
    ``(b) Use of Funds.--Funds appropriated to the Secretary of the 
Army for a fiscal year to cover unutilized and underutilized plant-
capacity costs at Army arsenals shall be used in such fiscal year only 
for such costs.
    ``(c) Treatment of Costs.--(1) The Secretary of the Army shall not 
include unutilized and underutilized plant-capacity costs when 
evaluating the bid of an Army arsenal for purposes of the arsenal's 
contracting to provide a good or service to a Government agency.
    ``(2) When an Army arsenal is serving as a subcontractor to a 
private-sector entity with respect to a good or service to be provided 
to a Government agency, the cost charged by the arsenal shall not 
include unutilized and underutilized plant-capacity costs that are 
funded by a direct appropriation.
    ``(d) Definitions.--In this section:
            ``(1) The term `Army arsenal' means a Government-owned, 
        Government-operated defense plant of the Department of the Army 
        that manufactures weapons, weapon components, or both.
            ``(2) The term `unutilized and underutilized plant-capacity 
        costs' means the costs associated with operating and 
        maintaining the facilities and equipment of an Army arsenal 
        that the Secretary of the Army determines are required to be 
        kept for mobilization needs, in those months in which the 
        facilities and equipment are not used or are used only 20 
        percent or less of available work days.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
4540 the following new item:

``4541. Army arsenals: treatment of unutilized or underutilized plant-
                            capacity costs.''.

SEC. 343. ARSENAL SUPPORT PROGRAM INITIATIVE.

    (a) Demonstration Program Required.--To help maintain the viability 
of the Army manufacturing arsenals and the unique capabilities of these 
arsenals to support the national security interests of the United 
States, the Secretary of the Army shall carry out a demonstration 
program under this section during fiscal years 2001 and 2002 at each 
manufacturing arsenal of the Department of the Army.
    (b) Purposes of Demonstration Program.--The purposes of the 
demonstration program are as follows:
            (1) To provide for the utilization of the existing skilled 
        workforce at the Army manufacturing arsenals by commercial 
        firms.
            (2) To provide for the reemployment and retraining of 
        skilled workers who, as a result of declining workload and 
        reduced Army spending on arsenal production requirements at 
        these Army arsenals, are idled or underemployed.
            (3) To encourage commercial firms, to the maximum extent 
        practicable, to use these Army arsenals for commercial 
        purposes.
            (4) To increase the opportunities for small businesses 
        (including socially and economically disadvantaged small 
        business concerns and new small businesses) to use these Army 
        arsenals for those purposes.
            (5) To maintain in the United States a work force having 
        the skills in manufacturing processes that are necessary to 
        meet industrial emergency planned requirements for national 
        security purposes.
            (6) To demonstrate innovative business practices, to 
        support Department of Defense acquisition reform, and to serve 
        as both a model and a laboratory for future defense conversion 
        initiatives of the Department of Defense.
            (7) To the maximum extent practicable, to allow the 
        operation of these Army arsenals to be rapidly responsive to 
        the forces of free market competition.
            (8) To reduce or eliminate the cost of Government ownership 
        of these Army arsenals, including the costs of operations and 
        maintenance, the costs of environmental remediation, and other 
        costs.
            (9) To reduce the cost of products of the Department of 
        Defense produced at these Army arsenals.
            (10) To leverage private investment at these Army arsenals 
        through long-term facility use contracts, property management 
        contracts, leases, or other agreements that support and advance 
        the demonstration program for the following activities:
                    (A) Recapitalization of plant and equipment.
                    (B) Environmental remediation.
                    (C) Promotion of commercial business ventures.
                    (D) Other activities approved by the Secretary of 
                the Army.
            (11) To foster cooperation between the Department of the 
        Army, property managers, commercial interests, and State and 
        local agencies in the implementation of sustainable development 
        strategies and investment in these Army arsenals.
    (c) Contract Authority.--(1) In the case of each Army manufacturing 
arsenal, the Secretary of the Army may enter into contracts with 
commercial firms to authorize the contractors, consistent with section 
4543 of title 10, United States Code--
            (A) to use the arsenal, or a portion of the arsenal, and 
        the skilled workforce at the arsenal to manufacture weapons, 
        weapon components, or related products consistent with the 
        purposes of the program; and
            (B) to enter into subcontracts for the commercial use of 
        the arsenal consistent with such purposes.
    (2) A contract under paragraph (1) shall require the contractor to 
contribute toward the operation and maintenance of the Army 
manufacturing arsenal covered by the contract.
    (3) In the event an Army manufacturing arsenal is converted to 
contractor operation, the Secretary may enter into a contract with the 
contractor to authorize the contractor, consistent with section 4543 of 
title 10, United States Code--
            (A) to use the facility during the period of the program in 
        a manner consistent with the purposes of the program; and
            (B) to enter into subcontracts for the commercial use of 
        the facility consistent with such purposes.
    (d) Loan Guarantees.--(1) Subject to paragraph (2), the Secretary 
of the Army may guarantee the repayment of any loan made to a 
commercial firm to fund, in whole or in part, the establishment of a 
commercial activity at an Army manufacturing arsenal under this 
section.
    (2) Loan guarantees under this subsection may not be committed 
except to the extent that appropriations of budget authority to cover 
their costs are made in advance, as required by section 504 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661c).
    (3) The Secretary of the Army may enter into agreements with the 
Administrator of the Small Business Administration or the Administrator 
of the Farmers Home Administration, the Administrator of the Rural 
Development Administration, or the head of other appropriate agencies 
of the Department of Agriculture, under which such Administrators may, 
under this subsection--
            (A) process applications for loan guarantees;
            (B) guarantee repayment of loans; and
            (C) provide any other services to the Secretary of the Army 
        to administer this subsection.
    (4) An Administrator referred to in paragraph (3) may guarantee 
loans under this section to commercial firms of any size, 
notwithstanding any limitations on the size of applicants imposed on 
other loan guarantee programs that the Administrator administers. To 
the extent practicable, each Administrator shall use the same 
procedures for processing loan guarantee applications under this 
subsection as the Administrator uses for processing loan guarantee 
applications under other loan guarantee programs that the Administrator 
administers.
    (e) Loan Limits.--The maximum amount of loan principal guaranteed 
during a fiscal year under subsection (d) may not exceed--
            (1) $20,000,000, with respect to any single borrower; and
            (2) $320,000,000 with respect to all borrowers.
    (f) Transfer of Funds.--The Secretary of the Army may transfer to 
an Administrator providing services under subsection (d), and the 
Administrator may accept, such funds as may be necessary to administer 
loan guarantees under such subsection.
    (g) Reporting Requirements.--(1) Not later than July 1 of each year 
in which a guarantee issued under subsection (d) is in effect, the 
Secretary of the Army shall submit to Congress a report specifying the 
amounts of loans guaranteed under such subsection during the preceding 
calendar year. No report is required after fiscal year 2002.
    (2) Not later than July 1, 2001, the Secretary of the Army shall 
submit to the congressional defense committees a report on the 
implementation of the demonstration program. The report shall contain a 
comprehensive review of contracting at the Army manufacturing arsenals 
covered by the program and such recommendations as the Secretary 
considers appropriate regarding changes to the program.

SEC. 344. CODIFICATION AND IMPROVEMENT OF ARMAMENT RETOOLING AND 
              MANUFACTURING SUPPORT PROGRAMS.

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

                ``CHAPTER 434--ARMAMENTS INDUSTRIAL BASE

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

``434. Armaments Industrial Base............................    4551''.
    (b) Implementation Report.--Not later than July 1, 2001, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the procedures and controls implemented to carry 
out section 4554 of title 10, United States Code, as added by 
subsection (a).
    (c) Relationship to National Defense Technology and Industrial 
Base.--(1) Subchapter IV of chapter 148 of title 10, United States 
Code, is amended--
            (A) by redesignating section 2525 as section 2521; and
            (B) by adding at the end the following new section:
``Sec. 2522. Armament retooling and manufacturing
    ``The Secretary of the Army is authorized by chapter 434 of this 
title to carry out programs for the support of armaments retooling and 
manufacturing in the national defense industrial and technology 
base.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by striking the item relating to section 2525 and inserting the 
following new items:

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

     Subtitle E--Performance of Functions by Private-Sector Sources

SEC. 351. INCLUSION OF ADDITIONAL INFORMATION IN REPORTS TO CONGRESS 
              REQUIRED BEFORE CONVERSION OF COMMERCIAL OR INDUSTRIAL 
              TYPE FUNCTIONS TO CONTRACTOR PERFORMANCE.

    (a) Information Required Before Commencement of Conversion 
Analysis.--Subsection (b)(1)(D) of section 2461 of title 10, United 
States Code, is amended by inserting before the period the following: 
``, and a specific identification of the budgetary line item from which 
funds will be used to cover the cost of the analysis''.
    (b) Information Required in Notification of Decision.--Subsection 
(c)(1) of such section is amended--
            (1) by redesignating subparagraphs (A), (B), (C), (D), and 
        (E) as subparagraphs (B), (C), (F), (H), and (I), respectively;
            (2) by inserting before subparagraph (B), as so 
        redesignated, the following new subparagraph:
            ``(A) The date when the analysis of that commercial or 
        industrial type function for possible change to performance by 
        the private sector was commenced.'';
            (3) by inserting after subparagraph (C), as so 
        redesignated, the following new subparagraphs:
            ``(D) The number of Department of Defense civilian 
        employees who were performing the function when the analysis 
        was commenced, the number of such employees whose employment 
        was terminated or otherwise affected in implementing the most 
        efficient organization of the function, and the number of such 
        employees whose employment would be terminated or otherwise 
        affected by changing to performance of the function by the 
        private sector.
            ``(E) The Secretary's certification that the factors 
        considered in the examinations performed under subsection 
        (b)(3), and in the making of the decision to change 
        performance, did not include any predetermined personnel 
        constraint or limitation in terms of man years, end strength, 
        full-time equivalent positions, or maximum number of 
        employees.''; and
            (4) by inserting after subparagraph (F), as so 
        redesignated, the following new subparagraph:
            ``(G) A statement of the potential economic effect of the 
        change on each affected local community, as determined in the 
        examination under subsection (b)(3)(B)(ii).''.

SEC. 352. EFFECTS OF OUTSOURCING ON OVERHEAD COSTS OF CENTERS OF 
              INDUSTRIAL AND TECHNICAL EXCELLENCE AND ARMY AMMUNITION 
              PLANTS.

    Section 2461(c) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
    ``(2) If the commercial or industrial type function to be changed 
to performance by the private sector is performed at a Center of 
Industrial and Technical Excellence designated under section 2474(a) of 
this title or an Army ammunition plant--
            ``(A) the report required by this subsection shall also 
        include a description of the effect that the performance and 
        administration of the resulting contract will have on the 
        overhead costs of the center or ammunition plant, as the case 
        may be; and
            ``(B) notwithstanding paragraph (3), the change of the 
        function to contractor performance may not begin until at least 
        60 days after the submission of the report.''.

SEC. 353. CONSOLIDATION, RESTRUCTURING, OR REENGINEERING OF DEPARTMENT 
              OF DEFENSE ORGANIZATIONS, FUNCTIONS, OR ACTIVITIES.

    (a) In General.--Chapter 146 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2475. Consolidation, restructuring, or reengineering of 
              organizations, functions, or activities: notification 
              requirements
    ``(a) Requirement To Submit Plan Annually.--Concurrently with the 
submission of the President's annual budget request under section 1105 
of title 31, the Secretary of Defense shall submit to Congress each 
Strategic Sourcing Plan of Action for the Department of Defense (as 
identified in the Department of Defense Interim Guidance dated February 
29, 2000, or any successor Department of Defense guidance or 
directive), for the following year.
    ``(b) Notification of Decision To Execute Plan.--If a decision is 
made to consolidate, restructure, or reengineer an organization, 
function, or activity of the Department of Defense pursuant to a 
Strategic Sourcing Plan of Action described in subsection (a), and such 
consolidation, restructuring, or reengineering would result in a 
manpower reduction affecting 50 or more personnel of the Department of 
Defense (including military and civilian personnel)--
            ``(1) the Secretary of Defense shall submit to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives a report describing that decision, including--
                    ``(A) a projection of the savings that will be 
                realized as a result of the consolidation, 
                restructuring, or reengineering, compared with the cost 
                incurred by the Department of Defense to perform the 
                function or to operate the organization or activity 
                prior to such proposed consolidation, restructuring, or 
                reengineering;
                    ``(B) a description of all missions, duties, or 
                military requirements that will be affected as a result 
                of the decision to consolidate, restructure, or 
                reengineer the organization, function, or activity that 
                was analyzed;
                    ``(C) the Secretary's certification that the 
                consolidation, restructuring, or reengineering will not 
                result in any diminution of military readiness;
                    ``(D) a schedule for performing the consolidation, 
                restructuring, or reengineering; and
                    ``(E) the Secretary's certification that the entire 
                analysis for the consolidation, restructuring, or 
                reengineering is available for examination; and
            ``(2) the head of the Defense Agency or the Secretary of 
        the military department concerned may not implement the plan 
        until 30 days after the date that the agency head or Secretary 
        submits notification to the Committees on Armed Services of the 
        Senate and House of Representatives of the intent to carry out 
        such plan.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2475. Consolidation, restructuring, or reengineering of 
                            organizations, functions, or activities: 
                            notification requirements.''.

SEC. 354. MONITORING OF SAVINGS RESULTING FROM WORKFORCE REDUCTIONS AS 
              PART OF CONVERSION OF FUNCTIONS TO PERFORMANCE BY PRIVATE 
              SECTOR OR OTHER STRATEGIC SOURCING INITIATIVES.

    (a) Requirement for a Monitoring System.--Chapter 146 of title 10, 
United States Code, is amended by inserting after section 2461 the 
following new section:
``Sec. 2461a. Development of system for monitoring cost savings 
              resulting from workforce reductions
    ``(a) Workforce Review Defined.--In this section, the term 
`workforce review', with respect to a function of the Department of 
Defense performed by Department of Defense civilian employees, means a 
review conducted under Office of Management and Budget Circular A-76 
(or any successor administrative regulation or policy), the Strategic 
Sourcing Program Plan of Action (or any successor Department of Defense 
guidance or directive), or any other authority to determine whether the 
function--
            ``(1) should be performed by a workforce composed of 
        Department of Defense civilian employees or by a private sector 
        workforce; or
            ``(2) should be reorganized or otherwise reengineered to 
        improve the effeciency or effectiveness of the performance of 
        the function, with a resulting decrease in the number of 
        Department of Defense civilian employees performing the 
        function.
    ``(b) System for Monitoring Performance.--(1) The Secretary of 
Defense shall establish a system for monitoring the performance, 
including the cost of performance, of each function of the Department 
of Defense that, after the date of the enactment of this section, is 
the subject of a workforce review.
    ``(2) The monitoring system shall be designed to compare the 
following:
            ``(A) The costs to perform a function before the workforce 
        review to the costs actually incurred to perform the function 
        after implementing the conversion, reorganization, or 
        reengineering actions recommended by the workforce review.
            ``(B) The anticipated savings to the actual savings, if 
        any, resulting from conversion, reorganization, or 
        reengineering actions undertaken in response to the workforce 
        review.
    ``(3) The monitoring of a function shall continue under this 
section for at least five years after the conversion, reorganization, 
or reengineering of the function.
    ``(c) Waiver for Certain Workforce Reviews.--Subsection (b) shall 
not apply to a workforce review that would result in a manpower 
reduction affecting fewer than 50 Department of Defense civilian 
employees.
    ``(d) Annual Report.--Not later than February 1 of each fiscal 
year, the Secretary of Defense shall submit to Congress a report on the 
results of the monitoring performed under the system established under 
subsection (b). For each function subject to monitoring during the 
previous fiscal year, the report shall indicate the following:
            ``(1) The cost of the workforce review.
            ``(2) The cost of performing the function before the 
        workforce review compared to the costs incurred after 
        implementing the conversion, reorganization, or reengineering 
        actions recommended by the workforce review.
            ``(3) The actual savings derived from the implementation of 
        the recommendations of the workforce review, if any, compared 
        to the anticipated savings that were to result from the 
        conversion, reorganization, or reengineering actions.
    ``(e) Consideration in Preparation of Future-Years Defense 
Program.--In preparing the future-years defense program under section 
221 of this title, the Secretary of Defense shall, for the fiscal years 
covered by the program, estimate and take into account the costs to be 
incurred and the savings to be derived from the performance of 
functions by workforces selected in workforce reviews. The Secretary 
shall consider the results of the monitoring under this section in 
making the estimates.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2461 the following new item:

``2461a. Development of system for monitoring cost savings resulting 
                            from workforce reductions.''.

SEC. 355. PERFORMANCE OF EMERGENCY RESPONSE FUNCTIONS AT CHEMICAL 
              WEAPONS STORAGE INSTALLATIONS.

    (a) Restriction on Conversion.--The Secretary of the Army may not 
convert to contractor performance the emergency response functions of 
any chemical weapons storage installation that, as of the date of the 
enactment of this Act, are performed for that installation by employees 
of the United States until the certification required by subsection (c) 
has been submitted in accordance with that subsection.
    (b) Covered Installations.--For the purposes of this section, a 
chemical weapons storage installation is any installation of the 
Department of Defense on which lethal chemical agents or munitions are 
stored.
    (c) Certification Requirement.--The Secretary of the Army shall 
certify in writing to the Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House of Representatives that, 
to ensure that there will be no lapse of capability to perform the 
chemical weapon emergency response mission at a chemical weapons 
storage installation during any transition to contractor performance of 
those functions at the installation, the plan for conversion of the 
performance of those functions--
            (1) is consistent with the recommendation contained in 
        General Accounting Office Report NSIAD-00-88, entitled ``DoD 
        Competitive Sourcing'', dated March 2000;
            (2) provides for a transition to contractor performance of 
        emergency response functions which ensures an adequate transfer 
        of the relevant knowledge and expertise regarding chemical 
        weapon emergency response to the contractor personnel; and
            (3) complies with section 2465 of title 10, United States 
        Code.

SEC. 356. SUSPENSION OF REORGANIZATION OR RELOCATION OF NAVAL AUDIT 
              SERVICE.

    (a) Suspension.--During the period specified in subsection (b), the 
Secretary of the Navy may not commence or continue any consolidation, 
involuntary transfer, buy-out, or other reduction in force of the 
workforce of auditors and administrative support personnel of the Naval 
Audit Service if the consolidation, involuntary transfer, buy-out, or 
other reduction in force is associated with the reorganization or 
relocation of the performance of the auditing functions of the Naval 
Audit Service.
    (b) Duration.--Subsection (a) applies during the period beginning 
on the date of the enactment of this Act and ending 180 days after the 
date on which the Secretary submits to the congressional defense 
committees a report that sets forth in detail the Navy's plans and 
justification for the reorganization or relocation of the performance 
of the auditing functions of the Naval Audit Service, as the case may 
be.

                Subtitle F--Defense Dependents Education

SEC. 361. ELIGIBILITY OF DEPENDENTS OF AMERICAN RED CROSS EMPLOYEES FOR 
              ENROLLMENT IN DEPARTMENT OF DEFENSE DOMESTIC DEPENDENT 
              SCHOOLS IN PUERTO RICO.

    Section 2164 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(i) American Red Cross Employee Dependents in Puerto Rico.--(1) 
The Secretary may authorize the dependent of an American Red Cross 
employee described in paragraph (2) to enroll in an education program 
provided by the Secretary pursuant to subsection (a) in Puerto Rico if 
the American Red Cross agrees to reimburse the Secretary for the 
educational services so provided.
    ``(2) An employee referred to in paragraph (1) is an American Red 
Cross employee who--
            ``(A) resides in Puerto Rico; and
            ``(B) performs, on a full-time basis, emergency services on 
        behalf of members of the armed forces.
    ``(3) In determining the dependency status of any person for the 
purposes of paragraph (1), the Secretary shall apply the same 
definitions as apply to the determination of such status with respect 
to Federal employees in the administration of this section.
    ``(4) Subsection (g) shall apply with respect to determining the 
reimbursement rates for educational services provided pursuant to this 
subsection. Amounts received as reimbursement for such educational 
services shall be treated in the same manner as amounts received under 
subsection (g).''.

SEC. 362. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
              DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT 
              OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year 
2001.--Of the amount authorized to be appropriated by section 301(5) 
for operation and maintenance for Defense-wide activities, $35,000,000 
shall be available only for the purpose of providing educational 
agencies assistance (as defined in subsection (d)(1)) to local 
educational agencies.
    (b) Notification.--Not later than June 30, 2001, the Secretary of 
Defense shall notify each local educational agency that is eligible for 
educational agencies assistance for fiscal year 2001 of--
            (1) that agency's eligibility for educational agencies 
        assistance; and
            (2) the amount of the educational agencies assistance for 
        which that agency is eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under subsection (a) not later than 30 days after 
the date on which notification to the eligible local educational 
agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 363. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    (a) Payments.--Subject to subsection (f), the Secretary of Defense 
shall make a payment for fiscal years after fiscal year 2001, to each 
local educational agency eligible to receive a payment for a child 
described in subparagraph (A)(ii), (B), (D)(i) or (D)(ii) of section 
8003(a)(1) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7703(a)(1)) that serves two or more such children with severe 
disabilities, for costs incurred in providing a free appropriate public 
education to each such child.
    (b) Payment Amount.--The amount of the payment under subsection (a) 
to a local educational agency for a fiscal year for each child referred 
to in such subsection with a severe disability shall be--
            (1) the payment made on behalf of the child with a severe 
        disability that is in excess of the average per pupil 
        expenditure in the State in which the local educational agency 
        is located; less
            (2) the sum of the funds received by the local educational 
        agency--
                    (A) from the State in which the child resides to 
                defray the educational and related services for such 
                child;
                    (B) under the Individuals with Disabilities 
                Education Act (20 U.S.C. 1400 et seq.) to defray the 
                educational and related services for such child; and
                    (C) from any other source to defray the costs of 
                providing educational and related services to the child 
                which are received due to the presence of a severe 
                disabling condition of such child.
    (c) Exclusions.--No payment shall be made under subsection (a) on 
behalf of a child with a severe disability whose individual cost of 
educational and related services does not exceed--
            (1) five times the national or State average per pupil 
        expenditure (whichever is lower), for a child who is provided 
        educational and related services under a program that is 
        located outside the boundaries of the school district of the 
        local educational agency that pays for the free appropriate 
        public education of the student; or
            (2) three times the State average per pupil expenditure, 
        for a child who is provided educational and related services 
        under a program offered by the local educational agency, or 
        within the boundaries of the school district served by the 
        local educational agency.
    (d) Ratable reduction.--If the amount available for a fiscal year 
for payments under subsection (a) is insufficient to pay the full 
amount all local educational agencies are eligible to receive under 
such subsection, the Secretary of Defense shall ratably reduce the 
amounts of the payments made under such subsection to all local 
educational agencies by an equal percentage.
    (e) Report.--Each local educational agency desiring a payment under 
subsection (a) shall report to the Secretary of Defense--
            (1) the number of severely disabled children for which a 
        payment may be made under this section; and
            (2) a breakdown of the average cost, by placement (inside 
        or outside the boundaries of the school district of the local 
        educational agency), of providing education and related 
        services to such children.
    (f) Payments Subject to Appropriation.--Payments shall be made for 
any period in a fiscal year under this section only to the extent that 
funds are appropriated specifically for making such payments for that 
fiscal year.
    (g) Local Educational Agency Defined.--In this section, the term 
``local educational agency'' has the meaning given that term in section 
8013(9) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7713(9)).

SEC. 364. ASSISTANCE FOR MAINTENANCE, REPAIR, AND RENOVATION OF SCHOOL 
              FACILITIES THAT SERVE DEPENDENTS OF MEMBERS OF THE ARMED 
              FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Repair and Renovation Assistance.--(1) During fiscal year 2001, 
the Secretary of Defense may make a grant to an eligible local 
educational agency to assist the agency to repair and renovate--
            (A) an impacted school facility that is used by significant 
        numbers of military dependent students; or
            (B) a school facility that was a former Department of 
        Defense domestic dependent elementary or secondary school.
    (2) Authorized repair and renovation projects may include repairs 
and improvements to an impacted school facility (including the grounds 
of the facility) designed to ensure compliance with the requirements of 
the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) 
or local health and safety ordinances, to meet classroom size 
requirements, or to accommodate school population increases.
    (3) The total amount of assistance provided under this subsection 
to an eligible local educational agency may not exceed $2,500,000 
during fiscal year 2001.
    (b) Maintenance Assistance.--(1) During fiscal year 2001, the 
Secretary of Defense may make a grant to an eligible local educational 
agency whose boundaries are the same as a military installation to 
assist the agency to maintain an impacted school facility, including 
the grounds of such a facility.
    (2) The total amount of assistance provided under this subsection 
to an eligible local educational agency may not exceed $250,000 during 
fiscal year 2001.
    (c) Determination of Eligible Local Educational Agencies.--(1) A 
local educational agency is an eligible local educational agency under 
this section only if the Secretary of Defense determines that the local 
educational agency has--
            (A) one or more federally impacted school facilities; and
            (B) satisfies at least one of the following eligibility 
        requirements:
                    (i) The local educational agency is eligible to 
                receive assistance under subsection (f) of section 8003 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7703) and at least 10 percent of the 
                students who were in average daily attendance in the 
                schools of such agency during the preceding school year 
                were students described under paragraph (1)(A) or 
                (1)(B) of section 8003(a) of the Elementary and 
                Secondary Education Act of 1965.
                    (ii) At least 35 percent of the students who were 
                in average daily attendance in the schools of the local 
                educational agency during the preceding school year 
                were students described under paragraph (1)(A) or 
                (1)(B) of section 8003(a) of the Elementary and 
                Secondary Education Act of 1965.
                    (iii) The State education system and the local 
                educational agency are one and the same.
    (2) A local educational agency is also an eligible local 
educational agency under this section if the local educational agency 
has a school facility that was a former Department of Defense domestic 
dependent elementary or secondary school, but assistance provided under 
subsection (a) may only be used to repair and renovate that specific 
facility.
    (d) Notification of Eligibility.--Not later than April 30, 2001, 
the Secretary of Defense shall notify each local educational agency 
identified under subsection (c) that the local educational agency is 
eligible to apply for a grant under subsection (a), subsection (b), or 
both subsections.
    (e) Relation to Impact Aid Construction Assistance.--A local 
education agency that receives a grant under subsection (a) to repair 
and renovate a school facility may not also receive a payment for 
school construction under section 8007 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7707) for fiscal year 2001.
    (f) Grant Considerations.--In determining which eligible local 
educational agencies will receive a grant under this section, the 
Secretary of Defense shall take into consideration the following 
conditions and needs at impacted school facilities of eligible local 
educational agencies:
            (1) The repair or renovation of facilities is needed to 
        meet State mandated class size requirements, including student-
        teacher ratios and instructional space size requirements.
            (2) There is an increase in the number of military 
        dependent students in facilities of the agency due to increases 
        in unit strength as part of military readiness.
            (3) There are unhoused students on a military installation 
        due to other strength adjustments at military installations.
            (4) The repair or renovation of facilities is needed to 
        address any of the following conditions:
                    (A) The condition of the facility poses a threat to 
                the safety and well-being of students.
                    (B) The requirements of the Americans with 
                Disabilities Act of 1990.
                    (C) The cost associated with asbestos removal, 
                energy conservation, or technology upgrades.
                    (D) Overcrowding conditions as evidenced by the use 
                of trailers and portable buildings and the potential 
                for future overcrowding because of increased 
                enrollment.
            (5) The repair or renovation of facilities is needed to 
        meet any other Federal or State mandate.
            (6) The number of military dependent students as a 
        percentage of the total student population in the particular 
        school facility.
            (7) The age of facility to be repaired or renovated.
    (g) Definitions.--In this section:
            (1) Local educational agency.--The term ``local educational 
        agency'' has the meaning given that term in section 8013(9) of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7713(9)).
            (2) Impacted school facility.--The term ``impacted school 
        facility'' means a facility of a local educational agency--
                    (A) that is used to provide elementary or secondary 
                education at or near a military installation; and
                    (B) at which the average annual enrollment of 
                military dependent students is a high percentage of the 
                total student enrollment at the facility, as determined 
                by the Secretary of Defense.
            (3) Military dependent students.--The term ``military 
        dependent students'' means students who are dependents of 
        members of the armed forces or Department of Defense civilian 
        employees.
            (4) Military installation.--The term ``military 
        installation'' has the meaning given that term in section 
        2687(e) of title 10, United States Code.
    (h) Funding Source.--The amount authorized to be appropriated under 
section 301(25) for Quality of Life Enhancements, Defense-Wide, shall 
be available to the Secretary of Defense to make grants under this 
section.

                 Subtitle G--Military Readiness Issues

SEC. 371. MEASURING CANNIBALIZATION OF PARTS, SUPPLIES, AND EQUIPMENT 
              UNDER READINESS REPORTING SYSTEM.

    Section 117(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(7) Measure, on a quarterly basis, the extent to which 
        units of the armed forces remove serviceable parts, supplies, 
        or equipment from one vehicle, vessel, or aircraft in order to 
        render a different vehicle, vessel, or aircraft operational.''.

SEC. 372. REPORTING REQUIREMENTS REGARDING TRANSFERS FROM HIGH-PRIORITY 
              READINESS APPROPRIATIONS.

    (a) Continuation of Reporting Requirements.--Section 483 of title 
10, United States Code, is amended by striking subsection (e).
    (b) Level of Detail.--Subsection (c)(2) of such section is amended 
by inserting before the period the following: ``, including 
identification of the sources from which funds were transferred into 
that activity and identification of the recipients of the funds 
transferred out of that activity''.
    (c) Additional Covered Budget Activities.--Subsection (d)(5) of 
such section is amended by adding at the end the following new 
subparagraphs:
                    ``(G) Combat Enhancement Forces.
                    ``(H) Combat Communications.''.

SEC. 373. EFFECTS OF WORLDWIDE CONTINGENCY OPERATIONS ON READINESS OF 
              MILITARY AIRCRAFT AND EQUIPMENT.

    (a) Requirement for Report.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report assessing the effects of worldwide contingency 
operations on--
            (1) the readiness of aircraft and ground equipment of the 
        Armed Forces; and
            (2) the capability of the Armed Forces to maintain a high 
        level of equipment readiness and to manage a high operating 
        tempo for the aircraft and ground equipment.
    (b) Effects on Aircraft.--With respect to aircraft, the assessment 
contained in the report shall address the following effects:
            (1) The effects of the contingency operations carried out 
        during fiscal years 1995 through 2000 on the aircraft of each 
        of the Armed Forces in each category of aircraft, as follows:
                    (A) Combat tactical aircraft.
                    (B) Strategic aircraft.
                    (C) Combat support aircraft.
                    (D) Combat service support aircraft.
            (2) The types of adverse effects on the aircraft of each of 
        the Armed Forces in each category of aircraft specified in 
        paragraph (1) resulting from contingency operations, as 
        follows:
                    (A) Patrolling in no-fly zones over Iraq in 
                Operation Northern Watch and Operation Southern Watch 
                and over the Balkans in Operation Allied Force.
                    (B) Air operations in the North Atlantic Treaty 
                Organization air war against Serbia in Operation Sky 
                Anvil, Operation Noble Anvil, and Operation Allied 
                Force.
                    (C) Air operations in Operation Shining Hope in 
                Kosovo.
                    (D) All other activities within the general context 
                of worldwide contingency operations.
            (3) Any other effects that the Secretary of Defense 
        considers appropriate in carrying out subsection (a).
    (c) Effects on Ground Equipment.--With respect to ground equipment, 
the assessment contained in the report shall address following effects:
            (1) The effects of the contingency operations carried out 
        during fiscal years 1995 through 2000 on the ground equipment 
        of each of the Armed Forces.
            (2) Any other effects that the Secretary of Defense 
        considers appropriate in carrying out subsection (a).
    (d) Definitions.--In this section:
            (1) The term ``Armed Forces'' means the Army, Navy, Marine 
        Corps, and Air Force.
            (2) The term ``contingency operation'' has the meaning 
        given the term in section 101(a)(13) of title 10, United States 
        Code.

SEC. 374. IDENTIFICATION OF REQUIREMENTS TO REDUCE BACKLOG IN 
              MAINTENANCE AND REPAIR OF DEFENSE FACILITIES.

    (a) Report to Address Maintenance and Repair Backlog.--Not later 
than March 15, 2001, the Secretary of Defense shall submit to Congress 
a report identifying a list of requirements to reduce the backlog in 
maintenance and repair needs of facilities and infrastructure under the 
jurisdiction of the Department of Defense or a military department.
    (b) Elements of Report.--At a minimum, the report shall include or 
address the following:
            (1) The extent of the work necessary to repair and 
        revitalize facilities and infrastructure, or to demolish and 
        replace unusable facilities, carried as backlog by the 
        Secretary of Defense or the Secretary of a military department.
            (2) Measurable goals, over specified time frames, for 
        addressing all of the identified requirements.
            (3) Expected funding for each military department and 
        Defense Agency to address the identified requirements during 
        the period covered by the most recent future-years defense 
        program submitted to Congress pursuant to section 221 of title 
        10, United States Code.
            (4) The cost of the current backlog in maintenance and 
        repair for each military department and Defense Agency, which 
        shall be determined using the standard costs to standard 
        facility categories in the Department of Defense Facilities 
        Cost Factors Handbook, shown both in the aggregate and 
        individually for each major military installation.
            (5) The total number of square feet of building space of 
        each military department and Defense Agency to be demolished or 
        proposed for demolition, shown both in the aggregate and 
        individually for each major military installation.
            (6) The initiatives underway to identify facility and 
        infrastructure requirements at military installation to 
        accommodate new and developing weapons systems and to prepare 
        installations to accommodate these systems.
    (c) Annual Updates.--The Secretary of Defense shall update the 
report required under subsection (a) annually. The annual updates shall 
be submitted to Congress at or about the time that the budget is 
submitted to Congress for a fiscal year under section 1105(a) of title 
31, United States Code.

SEC. 375. NEW METHODOLOGY FOR PREPARING BUDGET REQUESTS TO SATISFY ARMY 
              READINESS REQUIREMENTS.

    (a) Requirement for New Methodology.--The Secretary of the Army 
shall develop a new methodology for preparing budget requests for 
operation and maintenance for the Army that can be used to ensure that 
the budget requests for operation and maintenance for future fiscal 
years more accurately reflect the Army's requirements than did the 
budget requests submitted to Congress for fiscal year 2001 and 
preceding fiscal years.
    (b) Sense of Congress Regarding New Methodology.--It is the sense 
of Congress that--
            (1) the methodology required by subsection (a) should 
        provide for the determination of the budget levels to request 
        for operation and maintenance for the Army to be based on--
                    (A) the level of training that must be conducted in 
                order for the Army to execute successfully the full 
                range of missions called for in the national defense 
                strategy delineated pursuant to section 118 of title 
                10, United States Code, at a low-to-moderate level of 
                risk;
                    (B) the cost of conducting training at the level of 
                training described in subparagraph (A); and
                    (C) the costs of all other Army operations, 
                including the cost of meeting infrastructure 
                requirements; and
            (2) the Secretary of the Army should use the new 
        methodology in the preparation of the budget requests for 
        operation and maintenance for the Army for fiscal years after 
        fiscal year 2001.

SEC. 376. REVIEW OF AH-64 AIRCRAFT PROGRAM.

    (a) Requirement for Review.--The Comptroller General shall conduct 
a review of the Army's AH-64 aircraft program to determine--
            (1) whether obsolete spare parts, rather than spare parts 
        for the latest aircraft configuration, are being procured;
            (2) whether there is insufficient sustaining system 
        technical support;
            (3) whether technical data packages and manuals are 
        obsolete;
            (4) whether there are unfunded requirements for airframe 
        and component upgrades; and
            (5) if one or more of the conditions described in the 
        preceding paragraphs exist, whether the readiness of the 
        aircraft is impaired by the conditions.
    (b) Report.--Not later than March 1, 2001, the Comptroller General 
shall submit to the congressional defense committees a report on the 
results of the review under subsection (a).

SEC. 377. REPORT ON AIR FORCE SPARE AND REPAIR PARTS PROGRAM FOR C-5 
              AIRCRAFT.

    (a) Findings.--Congress makes the following findings:
            (1) There exists a significant shortfall in the Nation's 
        current strategic airlift requirement, even though strategic 
        airlift remains critical to the national security strategy of 
        the United States.
            (2) This shortfall results from the slow phase-out of C-141 
        aircraft and their replacement with C-17 aircraft and from 
        lower than optimal reliability rates for the C-5 aircraft.
            (3) One of the primary causes of these reliability rates 
        for C-5 aircraft, and especially for operational unit aircraft, 
        is the shortage of spare repair parts. Over the past 5 years, 
        this shortage has been particularly evident in the C-5 fleet.
            (4) Not Mission Capable for Supply rates for C-5 aircraft 
        have increased significantly in the period between 1997 and 
        1999. At Dover Air Force Base, Delaware, for example, an 
        average of 7 to 9 C-5 aircraft were not available during that 
        period because of a lack of parts.
            (5) Average rates of cannibalization of C-5 aircraft per 
        100 sorties of such aircraft have also increased during that 
        period and are well above the Air Mobility Command standard. In 
        any given month, this means devoting additional manhours to 
        cannibalization of C-5 aircraft. At Dover Air Force Base, for 
        example, an average of 800 to 1,000 additional manhours were 
        required for cannibalization of C-5 aircraft during that 
        period. Cannibalization is often required for aircraft that 
        transit through a base such as Dover Air Force Base, as well as 
        those that are based there.
            (6) High cannibalization rates indicate a significant 
        problem in delivering spare parts in a timely manner and 
        systemic problems within the repair and maintenance process, 
        and also demoralize overworked maintenance crews.
            (7) The C-5 aircraft remains an absolutely critical asset 
        in air mobility and airlifting heavy equipment and personnel to 
        both military contingencies and humanitarian relief efforts 
        around the world.
            (8) Despite increased funding for spare and repair parts 
        and other efforts by the Air Force to mitigate the parts 
        shortage problem, Congress continues to receive reports of 
        significant cannibalization to airworthy C-5 aircraft and parts 
        backlogs.
    (b) Report Required.--Not later than January 1, 2001, and September 
30, 2001, the Secretary of the Air Force shall submit to Congress a 
report on the overall status of the spare and repair parts program of 
the Air Force for the C-5 aircraft.
    (c) Elements of Report.--Each report shall include the following:
            (1) A statement of the funds currently allocated to the 
        acquisition of spare and repair parts for the C-5 aircraft and 
        the adequacy of such funds to meet current and future repair 
        and maintenance requirements for that aircraft.
            (2) A description of current efforts to address shortfalls 
        in the availability of spare and repair parts for the C-5 
        aircraft, including an assessment of potential short-term and 
        long-term effects of such efforts.
            (3) An assessment of the effects of such parts shortfalls 
        on readiness and reliability ratings for the C-5 aircraft.
            (4) A description of rates at which spare and repair parts 
        for one C-5 aircraft are taken from another C-5 aircraft (known 
        as parts cannibalization) and the manhours devoted to part 
        cannibalization of such aircraft.
            (5) An assessment of the effects of parts shortfalls and 
        parts cannibalization with respect to C-5 aircraft on readiness 
        and retention.

                       Subtitle H--Other Matters

SEC. 381. ANNUAL REPORT ON PUBLIC SALE OF CERTAIN MILITARY EQUIPMENT 
              IDENTIFIED ON UNITED STATES MUNITIONS LIST.

    (a) Annual Report Required.--Chapter 153 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 2582. Military equipment identified on United States munitions 
              list: annual report of public sales
    ``(a) Report Required.--The Secretary of Defense shall prepare an 
annual report identifying each public sale conducted by a military 
department or Defense Agency of military items that are--
            ``(1) identified on the United States Munitions List 
        maintained under section 121.1 of title 22, Code of Federal 
        Regulations; and
            ``(2) assigned a demilitarization code of `B' or its 
        equivalent.
    ``(b) Elements of Report.--(1) A report under this section shall 
cover all public sales described in subsection (a) that were conducted 
during the preceding fiscal year.
    ``(2) The report shall specify the following for each sale:
            ``(A) The date of the sale.
            ``(B) The military department or Defense Agency conducting 
        the sale.
            ``(C) The manner in which the sale was conducted.
            ``(D) The military items described in subsection (a) that 
        were sold or offered for sale.
            ``(E) The purchaser of each item.
            ``(F) The stated end-use of each item sold.
    ``(c) Submission of Report.--Not later than March 31 of each year, 
the Secretary of Defense shall submit to the Committee on Armed 
Services of the House of Representatives and the Committee on Armed 
Services of the Senate the report required by this section for the 
preceding fiscal 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:

``2582. Military equipment identified on United States munitions list: 
                            annual report of public sales.''.

SEC. 382. RESALE OF ARMOR-PIERCING AMMUNITION DISPOSED OF BY THE ARMY.

    (a) Restriction.--(1) Chapter 443 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 4688. Armor-piercing ammunition and components: condition on 
              disposal
    ``(a) Limitation on Resale or Other Transfer.--Except as provided 
in subsection (b), whenever the Secretary of the Army carries out a 
disposal (by sale or otherwise) of armor-piercing ammunition, or a 
component of armor-piercing ammunition, the Secretary shall require as 
a condition of the disposal that the recipient agree in writing not to 
sell or otherwise transfer any of the ammunition (reconditioned or 
otherwise), or any armor-piercing component of that ammunition, to any 
purchaser in the United States other than a law enforcement or other 
governmental agency.
    ``(b) Exception.--Subsection (a) does not apply to a transfer of a 
component of armor-piercing ammunition solely for the purpose of metal 
reclamation by means of a destructive process such as melting, 
crushing, or shredding.
    ``(c) Special Rule for Non-Armor-Piercing Components.--A component 
of the armor-piercing ammunition that is not itself armor-piercing and 
is not subjected to metal reclamation as described in subsection (b) 
may not be used as a component in the production of new or 
remanufactured armor-piercing ammunition other than for sale to a law 
enforcement or other governmental agency or for a government-to-
government sale or commercial export to a foreign government under the 
Arms Export Control Act (22 U.S.C. 2751).
    ``(d) Definition.--In this section, the term `armor-piercing 
ammunition' means a center-fire cartridge the military designation of 
which includes the term `armor penetrator' or `armor-piercing', 
including a center-fire cartridge designated as armor-piercing 
incendiary (API) or armor-piercing incendiary-tracer (API-T).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

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

SEC. 383. REIMBURSEMENT BY CIVIL AIR CARRIERS FOR SUPPORT PROVIDED AT 
              JOHNSTON ATOLL.

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

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

SEC. 384. TRAVEL BY RESERVES ON MILITARY AIRCRAFT.

    (a) Space-Required Travel for Travel to Duty Stations.--Subsection 
(a) of section 18505 of title 10, United States Code, is amended to 
read as follows:
    ``(a) A member of a reserve component traveling for annual training 
duty or inactive-duty training (including a place other than the place 
of the member's unit training assembly if the member is performing 
annual training duty or inactive-duty training in another location) may 
travel in a space-required status on aircraft of the armed forces 
between the member's home and the place of the annual training duty or 
inactive-duty training.''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 18505. Reserves traveling for annual training duty or inactive-
              duty training: space-required travel on military 
              aircraft''.
    (2) The table of sections at the beginning of chapter 1805 of such 
title is amended by striking the item relating to section 18505 and 
inserting the following new item:

``18505. Reserves traveling for annual training duty or inactive-duty 
                            training: space-required travel on military 
                            aircraft.''.

SEC. 385. OVERSEAS AIRLIFT SERVICE ON CIVIL RESERVE AIR FLEET AIRCRAFT.

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

SEC. 386. ADDITIONS TO PLAN FOR ENSURING VISIBILITY OVER ALL IN-TRANSIT 
              END ITEMS AND SECONDARY ITEMS.

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

SEC. 387. REAUTHORIZATION OF PILOT PROGRAM FOR ACCEPTANCE AND USE OF 
              LANDING FEES CHARGED FOR USE OF DOMESTIC MILITARY 
              AIRFIELDS BY CIVIL AIRCRAFT.

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

SEC. 388. EXTENSION OF AUTHORITY TO SELL CERTAIN AIRCRAFT FOR USE IN 
              WILDFIRE SUPPRESSION.

    Section 2 of the Wildfire Suppression Aircraft Transfer Act of 1996 
(Public Law 104-307; 10 U.S.C. 2576 note) is amended--
            (1) in subsection (a)(1), by striking ``September 30, 
        2000'' and inserting ``September 30, 2005'';
            (2) in subsection (d)(1)--
                    (A) by striking ``the date of the enactment of this 
                Act'' and inserting ``October 14, 1996''; and
                    (B) by adding at the end the following: ``The 
                regulations prescribed under this paragraph shall be 
                effective until the end of the period specified in 
                subsection (a)(1).''; and
            (3) in subsection (f), by striking ``March 31, 2000'' and 
        inserting ``March 31, 2005''.

SEC. 389. DAMAGE TO AVIATION FACILITIES CAUSED BY ALKALI SILICA 
              REACTIVITY.

    (a) Assessment of Damage and Prevention and Mitigation 
Technology.--The Secretary of Defense shall require the Secretaries of 
the military departments to assess--
            (1) the damage caused to aviation facilities of the Armed 
        Forces by alkali silica reactivity; and
            (2) the availability of technologies capable of preventing, 
        treating, or mitigating alkali silica reactivity in hardened 
        concrete structures and pavements.
    (b) Evaluation of Technologies.--(1) Taking into consideration the 
assessment under subsection (a), the Secretary of each military 
department may conduct a demonstration project at a location selected 
by the Secretary concerned to test and evaluate the effectiveness of 
technologies intended to prevent, treat, or mitigate alkali silica 
reactivity in hardened concrete structures and pavements.
    (2) The Secretary of Defense shall ensure that the locations 
selected for the demonstration projects represent the diverse operating 
environments of the Armed Forces.
    (c) New Construction.--The Secretary of Defense shall develop 
specific guidelines for appropriate testing and use of lithium salts to 
prevent alkali silica reactivity in new construction of the Department 
of Defense.
    (d) Completion of Assessment and Demonstration.--The assessment 
conducted under subsection (a) and the demonstration projects, if any, 
conducted under subsection (b) shall be completed not later than 
September 30, 2006.
    (e) Delegation of Authority.--The authority to conduct the 
assessment under subsection (a) may be delegated only to the Chief of 
Engineers of the Army, the Commander of the Naval Facilities 
Engineering Command, and the Civil Engineer of the Air Force.
    (f) Limitation on Expenditures.--The Secretary of Defense and the 
Secretaries of the military departments may not expend more than a 
total of $5,000,000 to conduct both the assessment under subsection (a) 
and all of the demonstration projects under subsection (b).

SEC. 390. DEMONSTRATION PROJECT TO INCREASE RESERVE COMPONENT INTERNET 
              ACCESS AND SERVICES IN RURAL COMMUNITIES.

    (a) Authorization and Purpose of Project.--The Secretary of the 
Army, acting through the Chief of the National Guard Bureau, may carry 
out a demonstration project in rural communities that are unserved or 
underserved by the telecommunications medium known as the Internet to 
provide or increase Internet access and services to units and members 
of the National Guard and other reserve components located in these 
communities.
    (b) Project Elements.--In carrying out the demonstration project, 
the Secretary may--
            (1) establish and operate distance learning classrooms in 
        communities described in subsection (a), including any support 
        systems required for such classrooms; and
            (2) provide Internet access and services in such classrooms 
        through GuardNet, the telecommunications infrastructure of the 
        National Guard.
    (c) Report.--Not later than February 1, 2005, the Secretary shall 
submit to Congress a report on the demonstration project. The report 
shall describe the activities conducted under the demonstration project 
and include any recommendations for the improvement or expansion of the 
demonstration project that the Secretary considers appropriate.

SEC. 391. ADDITIONAL CONDITIONS ON IMPLEMENTATION OF DEFENSE JOINT 
              ACCOUNTING SYSTEM.

    (a) Report on Deployment of System.--The proposed Defense Joint 
Accounting System is not prohibited, but the Secretary of Defense may 
not grant a Milestone III decision for the system unless and until the 
Secretary of Defense submits to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives a report--
            (1) explaining the reasons for the withdrawal of the 
        Department of the Air Force from the proposed Defense Joint 
        Accounting System and the effect of the withdrawal on the 
        development of the system;
            (2) explaining the reasons why the Department of the Navy 
        is not required to participate in the system;
            (3) identifying business process reengineering initiatives 
        reviewed, considered, or undertaken by the Department of the 
        Air Force and the Department of the Navy before the decisions 
        were made to exclude the Department of the Navy from the system 
        and to allow the Department of the Air Force to withdraw from 
        the system; and
            (4) containing an analysis, prepared with the participation 
        of the Secretaries of the military departments, of alternatives 
        to the system to determine whether the system warrants 
        deployment.
    (b) Certification.--If the Secretary of Defense determines that the 
proposed Defense Joint Accounting System warrants a Milestone III 
decision, the Secretary shall submit to the Committee on Armed Services 
of the Senate and the Committee on Armed Services of the House of 
Representatives a certification that the system will meet--
            (1) the required functionality for users of the system;
            (2) Department of Defense acquisition standards;
            (3) the applicable requirements for Milestones I, II and 
        III; and
            (4) the applicable requirements of the Clinger-Cohen Act of 
        1996 (divisions D and E of Public Law 104-106).

SEC. 392. REPORT ON DEFENSE TRAVEL SYSTEM.

    (a) Requirement for Report.--Not later than November 30, 2000, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the Defense Travel System.
    (b) Content of Report.--The report shall include the following:
            (1) A detailed discussion of the development, testing, and 
        fielding of the system, including the performance requirements, 
        the evaluation criteria, the funding that has been provided for 
        the development, testing, and fielding of the system, and the 
        funding that is projected to be required for completing the 
        development, testing, and fielding of the system.
            (2) The schedule for the testing of the system, including 
        the initial operational test and evaluation and the final 
        operational testing and evaluation, together with the results 
        of the testing.
            (3) The cost savings expected to result from the deployment 
        of the system and from the completed implementation of the 
        system, together with a discussion of how the savings are 
        estimated and the expected schedule for the realization of the 
        savings.
            (4) An analysis of the costs and benefits of fielding the 
        front-end software for the system throughout all 18 
        geographical areas selected for the original fielding of the 
        system.

SEC. 393. REVIEW OF DEPARTMENT OF DEFENSE COSTS OF MAINTAINING 
              HISTORICAL PROPERTIES.

    (a) Requirement for Review.--The Comptroller General shall conduct 
a review of the annual costs incurred by the Department of Defense to 
comply with the requirements of the National Historic Preservation Act 
(16 U.S.C. 470 et seq.).
    (b) Report.--Not later than February 28, 2001, the Comptroller 
General shall submit to the congressional defense committees a report 
on the results of the review. The report shall contain the following:
            (1) For each military department and Defense Agency and for 
        the Department of Defense in the aggregate, the cost for fiscal 
        year 2000 and the projected costs for the ensuing 10 fiscal 
        years to comply with the requirements of the National Historic 
        Preservation Act.
            (2) Of the costs referred to in paragraph (1), the portion 
        of such costs related to maintenance of those properties that 
        qualified as historic properties under the National Historic 
        Preservation Act when such Act was originally enacted in 1966.
            (3) The accounts used for paying the costs of complying 
        with the requirements of the National Historic Preservation 
        Act.
            (4) For each military department and Defense Agency, the 
        identity of all properties that must be maintained in order to 
        comply with the requirements of the National Historic 
        Preservation Act.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Adjustment to end strength flexibility authority.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2001 limitation on non-dual status technicians.
Sec. 415. Increase in numbers of members in certain grades authorized 
                            to be on active duty in support of the 
                            Reserves.
       Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Authority for Secretary of Defense to suspend certain 
                            personnel strength limitations during war 
                            or national emergency.
Sec. 422. Exclusion from active component end strengths of certain 
                            reserve component members on active duty in 
                            support of the combatant commands.
Sec. 423. Exclusion of Army and Air Force medical and dental officers 
                            from limitation on strengths of reserve 
                            commissioned officers in grades below 
                            brigadier general.
Sec. 424. Authority for temporary increases in number of reserve 
                            component personnel serving on active duty 
                            or full-time national guard duty in certain 
                            grades.
              Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2001, as follows:
            (1) The Army, 480,000.
            (2) The Navy, 372,642.
            (3) The Marine Corps, 172,600.
            (4) The Air Force, 357,000.

SEC. 402. REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS.

    (a) Revised End Strength Floors.--Section 691(b) of title 10, 
United States Code, is amended--
            (1) in paragraph (2), by striking ``371,781'' and inserting 
        ``372,000'';
            (2) in paragraph (3), by striking ``172,148'' and inserting 
        ``172,600''; and
            (3) in paragraph (4), by striking ``360,877'' and inserting 
        ``357,000''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2000.

SEC. 403. ADJUSTMENT TO END STRENGTH FLEXIBILITY AUTHORITY.

    Section 691(e) of title 10, United States Code, is amended by 
inserting ``or greater than'' after ``identical to''.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2001, as follows:
            (1) The Army National Guard of the United States, 350,526.
            (2) The Army Reserve, 205,300.
            (3) The Naval Reserve, 88,900.
            (4) The Marine Corps Reserve, 39,558.
            (5) The Air National Guard of the United States, 108,022.
            (6) The Air Force Reserve, 74,358.
            (7) The Coast Guard Reserve, 8,000.
    (b) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
            (1) the total authorized strength of units organized to 
        serve as units of the Selected Reserve of such component which 
        are on active duty (other than for training) at the end of the 
        fiscal year; and
            (2) the total number of individual members not in units 
        organized to serve as units of the Selected Reserve of such 
        component who are on active duty (other than for training or 
        for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2001, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 22,974.
            (2) The Army Reserve, 13,106.
            (3) The Naval Reserve, 14,649.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 11,170.
            (6) The Air Force Reserve, 1,336.

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

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2001 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army National Guard of the United States, 
        23,128.
            (2) For the Army Reserve, 5,921.
            (3) For the Air National Guard of the United States, 
        22,247.
            (4) For the Air Force Reserve, 9,785.

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

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

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

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


------------------------------------------------------------------------
                                                          Air     Marine
                 ``Grade                Army     Navy    Force    Corps
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,316    1,071      948      140
Lieutenant Colonel or Commander.....    1,759      520      852       90
Colonel or Navy Captain.............      529      188      317    30''.
------------------------------------------------------------------------

    (b) Senior Enlisted Members.--The table in section 12012(a) of such 
title is amended to read as follows:


------------------------------------------------------------------------
                                                          Air     Marine
                 ``Grade                Army     Navy    Force    Corps
------------------------------------------------------------------------
E-9.................................      764      202      502       20
E-8.................................    2,821      429    1,117    94''.
------------------------------------------------------------------------

    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2000.
    (d) Report.--(1) Not later than March 31, 2001, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report on 
management of the grade structure for reserve-component officers who 
are subject to section 12011 of title 10, United States Code, and on 
the grade structure of enlisted members who are subject to section 
12012 of that title. The Secretary of Defense shall include in the 
report recommendations for a permanent solution for managing the grade 
structures for those officers and enlisted members without requirement 
for frequent statutory adjustments to the limitations in those 
sections.
    (2) In developing recommendations for the report under 
paragraph(1), the Secretary shall consider the following areas:
            (A) The grade structure authorized for field-grade officers 
        in the active-duty forces and the reasons why the grade 
        structure for field-grade reserve officers on active duty in 
        support of the reserves is different.
            (B) The grade structure authorized for senior enlisted 
        members in the active-duty forces and the reasons why the grade 
        structure for senior enlisted reserve members on active duty in 
        support of the reserves is different.
            (C) The need for independent grade limits for each reserve 
        component under sections 12011 and 12012 of title 10, United 
        States Code.
            (D) The advantages and disadvantage of replacing management 
        by the current grade tables in those sections with management 
        through a system based on the grade authorized for the position 
        occupied by the member.
            (E) The current mix within each reserve component, for each 
        controlled grade, of (i) traditional reservists, (ii) military 
        technicians, (iii) regular component members, and (iv) reserve 
        members on active duty in support of the reserves, and how that 
        mix, for each component, would shift over time under the 
        Secretary's recommended solution as specified in paragraph (1).

       Subtitle C--Other Matters Relating to Personnel Strengths

SEC. 421. AUTHORITY FOR SECRETARY OF DEFENSE TO SUSPEND CERTAIN 
              PERSONNEL STRENGTH LIMITATIONS DURING WAR OR NATIONAL 
              EMERGENCY.

    (a) Senior Enlisted Members on Active Duty.--Section 517 of title 
10, United States Code, is amended by adding at the end the following 
new subsection:
    ``(c) Whenever under section 527 of this title the President may 
suspend the operation of any provision of section 523, 525, or 526 of 
this title, the Secretary of Defense may suspend the operation of any 
provision of this section. Any such suspension shall, if not sooner 
ended, end in the manner specified in section 527 for a suspension 
under that section.''.
    (b) Field Grade Reserve Component Officers.--Section 12011 of such 
title is amended by adding at the end the following new subsection:
    ``(c) Whenever under section 527 of this title the President may 
suspend the operation of any provision of section 523, 525, or 526 of 
this title, the Secretary of Defense may suspend the operation of any 
provision of this section. Any such suspension shall, if not sooner 
ended, end in the manner specified in section 527 for a suspension 
under that section.''.
    (c) Senior Enlisted Member in Reserve Components.--Section 12012 of 
such title is amended by adding at the end the following new 
subsection:
    ``(c) Whenever under section 527 of this title the President may 
suspend the operation of any provision of section 523, 525, or 526 of 
this title, the Secretary of Defense may suspend the operation of any 
provision of this section. Any such suspension shall, if not sooner 
ended, end in the manner specified in section 527 for a suspension 
under that section.''.

SEC. 422. EXCLUSION FROM ACTIVE COMPONENT END STRENGTHS OF CERTAIN 
              RESERVE COMPONENT MEMBERS ON ACTIVE DUTY IN SUPPORT OF 
              THE COMBATANT COMMANDS.

    Section 115(d) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(9) Members of reserve components (not described in 
        paragraph (8)) on active duty for more than 180 days but less 
        than 271 days to perform special work in support of the 
        combatant commands, except that--
                    ``(A) general and flag officers may not be excluded 
                under this paragraph; and
                    ``(B) the number of members of any of the armed 
                forces excluded under this paragraph may not exceed the 
                number equal to 0.2 percent of the end strength 
                authorized for active-duty personnel of that armed 
                force under subsection (a)(1)(A).''.

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

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

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

    (a) Field Grade Officers.--Section 12011 of title 10, United States 
Code, as amended by section 421(b), is amended by adding at the end the 
following new subsection:
    ``(d) Upon increasing under subsection (c)(2) of section 115 of 
this title the end strength that is authorized under subsection 
(a)(1)(B) of that section for a fiscal year for active-duty personnel 
and full-time National Guard duty personnel of an armed force who are 
to be paid from funds appropriated for reserve personnel, the Secretary 
of Defense may increase for that fiscal year the limitation that is set 
forth in subsection (a) of this section for the number of officers of 
that armed force serving in any grade if the Secretary determines that 
such action is in the national interest. The percent of the increase 
may not exceed the percent by which the Secretary increases that end 
strength.''.
    (b) Senior Enlisted Personnel.--Section 12012 of such title, as 
amended by section 421(c), is amended by adding at the end the 
following new subsection:
    ``(d) Upon increasing under subsection (c)(2) of section 115 of 
this title the end strength that is authorized under subsection 
(a)(1)(B) of that section for a fiscal year for active-duty personnel 
and full-time National Guard duty personnel of an armed force who are 
to be paid from funds appropriated for reserve personnel, the Secretary 
of Defense may increase for that fiscal year the limitation that is set 
forth in subsection (a) of this section for the number of enlisted 
members of that armed force serving in any grade if the Secretary 
determines that such action is in the national interest. The percent of 
the increase may not exceed the percent by which the Secretary 
increases that end strength.''.

              Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2001 a total of 
$75,801,666,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 2001.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Eligibility of Army and Air Force Reserve colonels and 
                            brigadier generals for position vacancy 
                            promotions.
Sec. 502. Flexibility in establishing promotion zones for Coast Guard 
                            Reserve officers.
Sec. 503. Time for release of reports of officer promotion selection 
                            boards.
Sec. 504. Clarification of requirements for composition of active-duty 
                            list selection boards when reserve officers 
                            are under consideration.
Sec. 505. Authority to issue posthumous commissions in the case of 
                            members dying before official 
                            recommendation for appointment or promotion 
                            is approved by Secretary concerned.
Sec. 506. Technical corrections relating to retired grade of reserve 
                            commissioned officers.
Sec. 507. Grade of chiefs of reserve components and directors of 
                            National Guard components.
Sec. 508. Revision to rules for entitlement to separation pay for 
                            regular and reserve officers.
             Subtitle B--Reserve Component Personnel Policy

Sec. 521. Exemption from active-duty list for reserve officers on 
                            active duty for a period of three years or 
                            less.
Sec. 522. Termination of application requirement for consideration of 
                            officers for continuation on the reserve 
                            active-status list.
Sec. 523. Authority to retain Air Force Reserve officers in all medical 
                            specialties until specified age.
Sec. 524. Authority for provision of legal services to reserve 
                            component members following release from 
                            active duty.
Sec. 525. Extension of involuntary civil service retirement date for 
                            certain reserve technicians.
                   Subtitle C--Education and Training

Sec. 531. Eligibility of children of Reserves for Presidential 
                            appointment to service academies.
Sec. 532. Selection of foreign students to receive instruction at 
                            service academies.
Sec. 533. Revision of college tuition assistance program for members of 
                            Marine Corps Platoon Leaders Class program.
Sec. 534. Review of allocation of Junior Reserve Officers Training 
                            Corps units among the services.
Sec. 535. Authority for Naval Postgraduate School to enroll certain 
                            defense industry civilians in specified 
                            programs relating to defense product 
                            development.
           Subtitle D--Decorations, Awards, and Commendations

Sec. 541. Limitation on award of Bronze Star to members in receipt of 
                            imminent danger pay.
Sec. 542. Consideration of proposals for posthumous or honorary 
                            promotions or appointments of members or 
                            former members of the Armed Forces and 
                            other qualified persons.
Sec. 543. Waiver of time limitations for award of certain decorations 
                            to certain persons.
Sec. 544. Addition of certain information to markers on graves 
                            containing remains of certain unknowns from 
                            the U.S.S. Arizona who died in the Japanese 
                            attack on Pearl Harbor on December 7, 1941.
Sec. 545. Sense of Congress on the court-martial conviction of Captain 
                            Charles Butler McVay, Commander of the 
                            U.S.S. Indianapolis, and on the courageous 
                            service of the crew of that vessel.
Sec. 546. Posthumous advancement on retired list of Rear Admiral 
                            Husband E. Kimmel and Major General Walter 
                            C. Short, senior officers in command in 
                            Hawaii on December 7, 1941.
Sec. 547. Commendation of citizens of Remy, France, for World War II 
                            actions.
Sec. 548. Authority for Award of the Medal of Honor to William H. 
                            Pitsenbarger for valor during the Vietnam 
                            War.
       Subtitle E--Military Justice and Legal Assistance Matters

Sec. 551. Recognition by States of military testamentary instruments.
Sec. 552. Policy concerning rights of individuals whose names have been 
                            entered into Department of Defense official 
                            criminal investigative reports.
Sec. 553. Limitation on Secretarial authority to grant clemency for 
                            military prisoners serving sentence of 
                            confinement for life without eligibility 
                            for parole.
Sec. 554. Authority for civilian special agents of military department 
                            criminal investigative organizations to 
                            execute warrants and make arrests.
Sec. 555. Requirement for verbatim record in certain special court-
                            martial cases.
Sec. 556. Commemoration of the 50th anniversary of the Uniform Code of 
                            Military Justice.
               Subtitle F--Matters Relating to Recruiting

Sec. 561. Army recruiting pilot programs.
Sec. 562. Enhancement of recruitment market research and advertising 
                            programs.
Sec. 563. Access to secondary schools for military recruiting purposes.
Sec. 564. Pilot program to enhance military recruiting by improving 
                            military awareness of school counselors and 
                            educators.
                       Subtitle G--Other Matters

Sec. 571. Extension to end of calendar year of expiration date for 
                            certain force drawdown transition 
                            authorities.
Sec. 572. Voluntary separation incentive.
Sec. 573. Congressional review period for assignment of women to duty 
                            on submarines and for any proposed 
                            reconfiguration or design of submarines to 
                            accommodate female crew members.
Sec. 574. Management and per diem requirements for members subject to 
                            lengthy or numerous deployments.
Sec. 575. Pay in lieu of allowance for funeral honors duty.
Sec. 576. Test of ability of reserve component intelligence units and 
                            personnel to meet current and emerging 
                            defense intelligence needs.
Sec. 577. National Guard Challenge Program.
Sec. 578. Study of use of civilian contractor pilots for operational 
                            support missions.
Sec. 579. Reimbursement for expenses incurred by members in connection 
                            with cancellation of leave on short notice.

                  Subtitle A--Officer Personnel Policy

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

    Section 14315(b) of title 10, United States Code, is amended--
            (1) in paragraph (1), by inserting after ``(A) is assigned 
        to the duties of a general officer of the next higher reserve 
        grade in the Army Reserve'' the following: ``or is recommended 
        for such an assignment under regulations prescribed by the 
        Secretary of the Army''; and
            (2) in paragraph (2), by inserting after ``(A) is assigned 
        to the duties of a general officer of the next higher reserve 
        grade'' the following: ``or is recommended for such an 
        assignment under regulations prescribed by the Secretary of the 
        Air Force''.

SEC. 502. FLEXIBILITY IN ESTABLISHING PROMOTION ZONES FOR COAST GUARD 
              RESERVE OFFICERS.

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

``731. Establishment of promotion zones under running mate system.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to selection boards convened under section 730 of 
title 14, United States Code, on or after the date of the enactment of 
this Act.

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

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

SEC. 504. CLARIFICATION OF REQUIREMENTS FOR COMPOSITION OF ACTIVE-DUTY 
              LIST SELECTION BOARDS WHEN RESERVE OFFICERS ARE UNDER 
              CONSIDERATION.

    (a) Clarification.--Section 612(a) of title 10, United States Code, 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``who are on the active-duty list'' 
                in the second sentence; and
                    (B) by inserting after the second sentence the 
                following new sentence: ``Each member of a selection 
                board (except as provided in paragraphs (2), (3), and 
                (4)) shall be an officer on the active-duty list.''; 
                and
            (2) in paragraph (3)--
                    (A) by striking ``of that armed force, with the 
                exact number of reserve officers to be'' and inserting 
                ``of that armed force on active duty (whether or not on 
                the active-duty list). The actual number of reserve 
                officers shall be''; and
                    (B) by striking ``his discretion, except that'' and 
                inserting ``the Secretary's discretion. Notwithstanding 
                the first sentence of this paragraph,''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to any selection board convened under section 611(a) of title 10, 
United States Code, on or after August 1, 1981.

SEC. 505. AUTHORITY TO ISSUE POSTHUMOUS COMMISSIONS IN THE CASE OF 
              MEMBERS DYING BEFORE OFFICIAL RECOMMENDATION FOR 
              APPOINTMENT OR PROMOTION IS APPROVED BY SECRETARY 
              CONCERNED.

    (a) Repeal of Limitation to Deaths Occurring After Secretarial 
Approval.--Subsection (a)(3) of section 1521 of title 10, United States 
Code, is amended by striking ``and the recommendation for whose 
appointment or promotion was approved by the Secretary concerned''.
    (b) Effective Date of Commission.--Subsection (b) of such section 
is amended by striking ``approval'' both places it appears and 
inserting ``official recommendation''.

SEC. 506. TECHNICAL CORRECTIONS RELATING TO RETIRED GRADE OF RESERVE 
              COMMISSIONED OFFICERS.

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

SEC. 507. GRADE OF CHIEFS OF RESERVE COMPONENTS AND DIRECTORS OF 
              NATIONAL GUARD COMPONENTS.

    (a) Chief of Army Reserve.--Subsections (b) and (c) of section 3038 
of title 10, United States Code, are amended to read as follows:
    ``(b) Appointment.--(1) The President, by and with the advice and 
consent of the Senate, shall appoint the Chief of Army Reserve from 
general officers of the Army Reserve who have had at least 10 years of 
commissioned service in the Army Reserve.
    ``(2) The Secretary of Defense may not recommend an officer to the 
President for appointment as Chief of Army Reserve unless the officer--
            ``(A) is recommended by the Secretary of the Army; and
            ``(B) is determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process 
        established by the Chairman, to have significant joint duty 
        experience.
    ``(3) An officer on active duty for service as the Chief of Army 
Reserve shall be counted for purposes of the grade limitations under 
sections 525 and 526 of this title.
    ``(4) Until October 1, 2003, the Secretary of Defense may waive 
subparagraph (B) of paragraph (2) with respect to the appointment of an 
officer as Chief of Army Reserve if the Secretary of the Army requests 
the waiver and, in the judgment of the Secretary of Defense--
            ``(A) the officer is qualified for service in the position; 
        and
            ``(B) the waiver is necessary for the good of the service.
Any such waiver shall be made on a case-by-case basis.
    ``(c) Term; Reappointment; Grade.--(1) The Chief of Army Reserve is 
appointed for a period of four years, but may be removed for cause at 
any time. An officer serving as Chief of Army Reserve may be 
reappointed for one additional four-year period.
    ``(2) The Chief of Army Reserve, while so serving, holds the grade 
of lieutenant general.''.
    (b) Chief of Naval Reserve.--Subsections (b) and (c) of section 
5143 of such title are amended to read as follows:
    ``(b) Appointment.--(1) The President, by and with the advice and 
consent of the Senate, shall appoint the Chief of Naval Reserve from 
flag officers of the Navy (as defined in section 5001(1)) who have had 
at least 10 years of commissioned service.
    ``(2) The Secretary of Defense may not recommend an officer to the 
President for appointment as Chief of Naval Reserve unless the 
officer--
            ``(A) is recommended by the Secretary of the Navy; and
            ``(B) is determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process 
        established by the Chairman, to have significant joint duty 
        experience.
    ``(3) An officer on active duty for service as the Chief of Naval 
Reserve shall be counted for purposes of the grade limitations under 
sections 525 and 526 of this title.
    ``(4) Until October 1, 2003, the Secretary of Defense may waive 
subparagraph (B) of paragraph (2) with respect to the appointment of an 
officer as Chief of Naval Reserve if the Secretary of the Navy requests 
the waiver and, in the judgment of the Secretary of Defense--
            ``(A) the officer is qualified for service in the position; 
        and
            ``(B) the waiver is necessary for the good of the service.
Any such waiver shall be made on a case-by-case basis.
    ``(c) Term; Reappointment; Grade.--(1) The Chief of Naval Reserve 
is appointed for a term determined by the Chief of Naval Operations, 
normally four years, but may be removed for cause at any time. An 
officer serving as Chief of Naval Reserve may be reappointed for one 
additional term of up to four years.
    ``(2) The Chief of Naval Reserve, while so serving, holds the grade 
of vice admiral.''.
    (c) Commander, Marine Forces Reserve.--Subsections (b) and (c) of 
section 5144 of such title are amended to read as follows:
    ``(b) Appointment.--(1) The President, by and with the advice and 
consent of the Senate, shall appoint the Commander, Marine Forces 
Reserve, from general officers of the Marine Corps (as defined in 
section 5001(2)) who have had at least 10 years of commissioned 
service.
    ``(2) The Secretary of Defense may not recommend an officer to the 
President for appointment as Commander, Marine Forces Reserve, unless 
the officer--
            ``(A) is recommended by the Secretary of the Navy; and
            ``(B) is determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process 
        established by the Chairman, to have significant joint duty 
        experience.
    ``(3) An officer on active duty for service as the Commander, 
Marine Forces Reserve, shall be counted for purposes of the grade 
limitations under sections 525 and 526 of this title.
    ``(4) Until October 1, 2003, the Secretary of Defense may waive 
subparagraph (B) of paragraph (2) with respect to the appointment of an 
officer as Commander, Marine Forces Reserve, if the Secretary of the 
Navy requests the waiver and, in the judgment of the Secretary of 
Defense--
            ``(A) the officer is qualified for service in the position; 
        and
            ``(B) the waiver is necessary for the good of the service.
Any such waiver shall be made on a case-by-case basis.
    ``(c) Term; Reappointment; Grade.--(1) The Commander, Marine Forces 
Reserve, is appointed for a term determined by the Commandant of the 
Marine Corps, normally four years, but may be removed for cause at any 
time. An officer serving as Commander, Marine Forces Reserve, may be 
reappointed for one additional term of up to four years.
    ``(2) The Commander, Marine Forces Reserve, while so serving, holds 
the grade of lieutenant general.''.
    (d) Chief of Air Force Reserve.--Subsections (b) and (c) of section 
8038 of such title are amended to read as follows:
    ``(b) Appointment.--(1) The President, by and with the advice and 
consent of the Senate, shall appoint the Chief of Air Force Reserve 
from general officers of the Air Force Reserve who have had at least 10 
years of commissioned service in the Air Force.
    ``(2) The Secretary of Defense may not recommend an officer to the 
President for appointment as Chief of Air Force Reserve unless the 
officer--
            ``(A) is recommended by the Secretary of the Air Force; and
            ``(B) is determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process 
        established by the Chairman, to have significant joint duty 
        experience.
    ``(3) An officer on active duty for service as the Chief of Air 
Force Reserve shall be counted for purposes of the grade limitations 
under sections 525 and 526 of this title.
    ``(4) Until October 1, 2003, the Secretary of Defense may waive 
subparagraph (B) of paragraph (2) with respect to the appointment of an 
officer as Chief of Air Force Reserve if the Secretary of the Air Force 
requests the waiver and, in the judgment of the Secretary of Defense--
            ``(A) the officer is qualified for service in the position; 
        and
            ``(B) the waiver is necessary for the good of the service.
Any such waiver shall be made on a case-by-case basis.
    ``(c) Term; Reappointment; Grade.--(1) The Chief of Air Force 
Reserve is appointed for a period of four years, but may be removed for 
cause at any time. An officer serving as Chief of Air Force Reserve may 
be reappointed for one additional four-year period.
    ``(2) The Chief of Air Force Reserve, while so serving, holds the 
grade of lieutenant general.''.
    (e) Directors in the National Guard Bureau.--Section 10506(a) of 
such title is amended--
            (1) in subparagraphs (A) and (B) of paragraph (1), by 
        striking ``while so serving shall hold the grade of major 
        general or, if appointed to that position in accordance with 
        section 12505(a)(2) of this title, the grade of lieutenant 
        general, and'' and inserting ``shall be appointed in accordance 
        with paragraph (3), shall hold the grade of lieutenant general 
        while so serving, and shall''; and
            (2) by adding at the end the following new paragraph:
    ``(3)(A) The President, by and with the advice and consent of the 
Senate, shall appoint the Director, Army National Guard, from general 
officers of the Army National Guard of the United States and shall 
appoint the Director, Air National Guard, from general officers of the 
Air National Guard of the United States.
    ``(B) The Secretary of Defense may not recommend an officer to the 
President for appointment as Director, Army National Guard, or as 
Director, Air National Guard, unless the officer--
            ``(i) is recommended by the Secretary of the military 
        department concerned; and
            ``(ii) is determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process 
        established by the Chairman, to have significant joint duty 
        experience.
    ``(C) An officer on active duty for service as the Director, Army 
National Guard, or the Director, Air National Guard, shall be counted 
for purposes of the grade limitations under sections 525 and 526 of 
this title.
    ``(D) Until October 1, 2003, the Secretary of Defense may waive 
clause (ii) of subparagraph (B) with respect to the appointment of an 
officer as Director, Army National Guard, or as Director, Air National 
Guard, if the Secretary of the military department concerned requests 
the waiver and, in the judgment of the Secretary of Defense--
            ``(i) the officer is qualified for service in the position; 
        and
            ``(ii) the waiver is necessary for the good of the service.
Any such waiver shall be made on a case-by-case basis.
    ``(E) The Director, Army National Guard, and the Director, Air 
National Guard, are appointed for a period of four years, but may be 
removed for cause at any time. An officer serving as either Director 
may be reappointed for one additional four-year period.''.
    (f) Repeal of Superseded Section.--(1) Section 12505 of such title 
is repealed.
    (2) The table of sections at the beginning of chapter 1213 is 
amended by striking the item relating to section 12505.
    (g) Conforming Increase in Authorized Number of O-9 Positions.--
Section 525(b) of such title is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Army, Air Force, or Marine 
                Corps'' in the first sentence and inserting ``Army or 
                Air Force'';
                    (B) by striking ``15 percent'' both places it 
                appears and inserting ``15.7 percent'';
                    (C) by striking ``In the case of the Army and Air 
                Force, of'' at the beginning of the second sentence and 
                inserting ``Of''; and
                    (D) by inserting ``of the Army or Air Force'' in 
                the second sentence after ``general officers''; and
            (2) in paragraph (2)--
                    (A) by inserting ``(A)'' after ``(2)'';
                    (B) by striking ``15 percent'' both places it 
                appears and inserting ``15.7 percent''; and
                    (C) by adding at the end the following:
    ``(B) No appointment may be made in a grade above major general in 
the Marine Corps if that appointment would result in more than 16.2 
percent of the general officers of the Marine Corps on active duty 
being in grades above major general.''.
    (h) Study of Increase in Grade for Vice Chief of National Guard 
Bureau.--(1) The Secretary of Defense shall conduct a study of the 
advisability of changing the grade authorized for the Vice Chief of the 
National Guard Bureau from major general to lieutenant general.
    (2) As part of the study, the Chief of the National Guard Bureau 
shall submit to the Secretary of Defense an analysis of the functions 
and responsibilities of the Vice Chief of the National Guard Bureau and 
the Chief's recommendation as to whether the grade for the Vice Chief 
should be changed from major general to lieutenant general.
    (3) Not later than February 1, 2001, the Secretary shall submit to 
the Committees on Armed Services of the Senate and House of 
Representatives a report on the study. The report shall include the 
following--
            (A) the recommendation of the Chief of the National Guard 
        Bureau and any other information provided by the Chief to the 
        Secretary of Defense pursuant to paragraph (2);
            (B) the conclusions resulting from the study; and
            (C) the Secretary's recommendations regarding whether the 
        grade authorized for the Vice Chief of the National Guard 
        Bureau should be changed to lieutenant general.
    (i) Implementation.--(1) An appointment or reappointment, in the 
case of the incumbent in a reserve component chief position, shall be 
made to each of the reserve component chief positions not later than 12 
months after the date of the enactment of this Act, in accordance with 
the amendments made by subsections (a) through (e).
    (2) An officer serving in a reserve component chief position on the 
date of the enactment of this Act may be reappointed to that position 
under the amendments made by subsection (a) through (e), if eligible 
and otherwise qualified in accordance with those amendments. If such an 
officer is so reappointed, the appointment may be made for the 
remainder of the officer's original term or for a full new term, as 
specified at the time of the appointment.
    (3) An officer serving on the date of the enactment of this Act in 
a reserve component chief position may continue to serve in that 
position in accordance with the provisions of law in effect immediately 
before the amendments made by this section until a successor is 
appointed under paragraph (1) (or that officer is reappointed under 
paragraph (1)).
    (4) The amendments made by subsection (g) shall be implemented so 
that each increase authorized by those amendments in the number of 
officers in the grades of lieutenant general and vice admiral is 
implemented on a case-by-case basis with an initial appointment made 
after the date of the enactment of this Act, as specified in paragraph 
(1), to a reserve component chief position.
    (5) For purposes of this subsection, the term ``reserve component 
chief position'' means a position specified in section 3038, 5143, 
5144, or 8038 of title 10, United States Code, or the position of 
Director, Army National Guard or Director, Air National Guard under 
section 10506(a)(1) of such title.

SEC. 508. REVISION TO RULES FOR ENTITLEMENT TO SEPARATION PAY FOR 
              REGULAR AND RESERVE OFFICERS.

    (a) Regular Officers.--Subsection (a) of section 1174 of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
    ``(4) Notwithstanding paragraphs (1) and (2), an officer who is 
subject to discharge under any provision of chapter 36 of this title or 
under section 580 or 6383 of this title by reason of having twice 
failed of selection for promotion to the next higher grade is not 
entitled to separation pay under this section if that officer, after 
such second failure of selection for promotion, is selected for, and 
declines, continuation on active duty for a period that is equal to or 
more than the amount of service required to qualify the officer for 
retirement.''.
    (b) Reserve Officers.--Subsection (c) of such section is amended by 
adding at the end the following new paragraph:
    ``(4) In the case of an officer who is subject to discharge or 
release from active duty under a law or regulation requiring that an 
officer who has failed of selection for promotion to the next higher 
grade for the second time be discharged or released from active duty 
and who, after such second failure of selection for promotion, is 
selected for, and declines, continuation on active duty--
            ``(A) if the period of time for which the officer was 
        selected for continuation on active duty is less than the 
        amount of service that would be required to qualify the officer 
        for retirement, the officer's discharge or release from active 
        duty shall be considered to be involuntary for purposes of 
        paragraph (1)(A); and
            ``(B) if the period of time for which the officer was 
        selected for continuation on active duty is equal to or more 
        than the amount of service that would be required to qualify 
        the officer for retirement, the officer's discharge or release 
        from active duty shall not be considered to be involuntary for 
        the purposes of paragraph (1)(A).''.
    (c) Effective Date.--Paragraph (4) of section 1174(a) of title 10, 
United States Code, as added by subsection (a), and paragraph (4) of 
section 1174(c) of such title, as added by subsection (b), shall apply 
with respect to any offer of selective continuation on active duty that 
is declined on or after the date of the enactment of this Act.

             Subtitle B--Reserve Component Personnel Policy

SEC. 521. EXEMPTION FROM ACTIVE-DUTY LIST FOR RESERVE OFFICERS ON 
              ACTIVE DUTY FOR A PERIOD OF THREE YEARS OR LESS.

    Section 641(1) of title 10, United States Code, is amended--
            (1) by redesignating subparagraphs (D) through (G) as 
        subparagraphs (E) through (H), respectively; and
            (2) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) on the reserve active-status list who are on 
                active duty under section 12301(d) of this title, other 
                than as provided in subparagraph (C), under a call or 
                order to active duty specifying a period of three years 
                or less;''.

SEC. 522. TERMINATION OF APPLICATION REQUIREMENT FOR CONSIDERATION OF 
              OFFICERS FOR CONTINUATION ON THE RESERVE ACTIVE-STATUS 
              LIST.

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

SEC. 523. AUTHORITY TO RETAIN AIR FORCE RESERVE OFFICERS IN ALL MEDICAL 
              SPECIALTIES UNTIL SPECIFIED AGE.

    Section 14703(a)(3) of title 10, United States Code, is amended by 
striking ``veterinary officer'' and all that follows through the period 
and inserting ``Air Force nurse, Medical Service Corps officer, 
biomedical sciences officer, or chaplain.''.

SEC. 524. AUTHORITY FOR PROVISION OF LEGAL SERVICES TO RESERVE 
              COMPONENT MEMBERS FOLLOWING RELEASE FROM ACTIVE DUTY.

    (a) Legal Services.--Section 1044(a) of title 10, United States 
Code, is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph (4):
            ``(4) Members of reserve components not covered by 
        paragraph (1) or (2) following release from active duty under a 
        call or order to active duty for more than 30 days issued under 
        a mobilization authority (as determined by the Secretary of 
        Defense), for a period of time, prescribed by the Secretary of 
        Defense, that begins on the date of the release and is not less 
        than twice the length of the period served on active duty under 
        that call or order to active duty.''.
    (b) Dependents.--Paragraph (5) of such section, as redesignated by 
subsection (a)(1), is amended by striking ``and (3)'' and inserting 
``(3), and (4)''.
    (c) Implementing Regulations.--Regulations to implement the 
amendments made by this section shall be prescribed not later than 180 
days after the date of the enactment of this Act.

SEC. 525. EXTENSION OF INVOLUNTARY CIVIL SERVICE RETIREMENT DATE FOR 
              CERTAIN RESERVE TECHNICIANS.

    (a) Mandatory Retirement Not Applicable Until Age 60.--Section 
10218 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``and is age 60 or older at that 
                time'' after ``unreduced annuity'' in paragraph (2);
                    (B) by inserting ``or is under age 60 at that 
                time'' after ``unreduced annuity'' in paragraph (3)(A); 
                and
                    (C) by inserting ``and becoming 60 years of age'' 
                after ``unreduced annuity'' in paragraph (3)(B)(ii)(I); 
                and
            (2) in subsection (b)--
                    (A) by inserting ``and is age 60 or older'' after 
                ``unreduced annuity'' in paragraph (1);
                    (B) by inserting ``or is under age 60'' after 
                ``unreduced annuity'' in paragraph (2)(A); and
                    (C) by inserting ``and becoming 60 years of age'' 
                after ``unreduced annuity'' in paragraph (2)(B)(ii)(I).
    (b) Transition Provision.--(1) An individual who before the date of 
the enactment of this Act was involuntarily separated or retired from 
employment as an Army Reserve or Air Force Reserve technician under 
section 10218 of title 10, United States Code, and who would not have 
been so separated if the provisions of subsection (c) of that section, 
as amended by subsection (a), had been in effect at the time of such 
separation may, with the approval of the Secretary concerned, be 
reinstated to the technician status held by that individual immediately 
before that separation. The effective date of any such reinstatement is 
the date the employee resumes technician status.
    (2) The authority under paragraph (1) applies only to reinstatement 
for which an application is received by the Secretary concerned before 
the end of the one-year period beginning on the date of the enactment 
of this Act.

                   Subtitle C--Education and Training

SEC. 531. ELIGIBILITY OF CHILDREN OF RESERVES FOR PRESIDENTIAL 
              APPOINTMENT TO SERVICE ACADEMIES.

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

SEC. 532. SELECTION OF FOREIGN STUDENTS TO RECEIVE INSTRUCTION AT 
              SERVICE ACADEMIES.

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

SEC. 533. REVISION OF COLLEGE TUITION ASSISTANCE PROGRAM FOR MEMBERS OF 
              MARINE CORPS PLATOON LEADERS CLASS PROGRAM.

    (a) Eligibility of Officers.--Section 16401 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking ``enlisted'' in the 
        matter preceding paragraph (1); and
            (2) in subsection (b)(1)--
                    (A) by striking ``an enlisted member'' in the 
                matter preceding subparagraph (A) and inserting ``a 
                member''; and
                    (B) by striking ``an officer candidate in'' in 
                subparagraph (A) and inserting ``a member of''.
    (b) Repeal of Age Limitations.--Subsection (b) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (B);
                    (B) by redesignating subparagraphs (C) and (D) as 
                subparagraphs (B) and (C), respectively; and
                    (C) in subparagraph (C), as so redesignated, by 
                striking ``paragraph (3)'' and inserting ``paragraph 
                (2)'';
            (2) by striking paragraph (2);
            (3) by redesignating paragraph (3) as paragraph (2); and
            (4) in paragraph (2), as so redesignated, by striking 
        ``paragraph (1)(D)'' and inserting ``paragraph (1)(C)''.
    (c) Candidates for Law Degrees.--Subsection (a)(2) of such section 
is amended by striking ``three'' and inserting ``four''.
    (d) Sanctions; Exceptions.--Subsection (f) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``A member who'' and inserting ``An 
                enlisted member who'';
                    (B) by inserting ``and an officer who receives 
                financial assistance under this section may be required 
                to repay the full amount of financial assistance,'' 
                after ``for more than four years,''; and
                    (C) by inserting ``or, if already a commissioned 
                officer in the Marine Corps, refuses to accept an 
                assignment on active duty when offered'' in 
                subparagraph (A) after ``when offered''; and
            (2) by striking paragraph (2) and inserting the following:
    ``(2) The Secretary of the Navy may waive the requirements of 
paragraph (1) in the case of a person who--
            ``(A) becomes unqualified to serve on active duty as an 
        officer due to a circumstance not within the control of the 
        person;
            ``(B) is not physically qualified for appointment under 
        section 532 of this title and later is determined by the 
        Secretary of the Navy under section 505 of this title to be 
        unqualified for service as an enlisted member of the Marine 
        Corps due to a physical or medical condition that was not the 
        result of misconduct or grossly negligent conduct; or
            ``(C) fails to complete the military or academic 
        requirements of the Marine Corps Platoon Leaders Class program 
        due to a circumstance not within the control of the person.''.
    (e) Clarification of Service Excluded in Computation of Creditable 
Service as a Marine Corps Officer.--(1) Section 205(f) of title 37, 
United States Code, is amended by striking ``that the officer performed 
concurrently as a member'' and inserting ``that the officer performed 
concurrently as an enlisted member''.
    (2) Such section is further amended by striking ``section 12209'' 
and inserting ``section 12203''.
    (f) Amendments of Headings.--(1) The heading of section 16401 of 
title 10, United States Code, is amended to read as follows:
``Sec. 16401. Marine Corps Platoon Leaders Class: college tuition 
              assistance program''.
    (2) The heading for subsection (a) of such section is amended by 
striking ``for Financial Assistance Program''.
    (g) Clerical Amendment.--The item relating to such section in the 
table of chapters at the beginning of chapter 1611 of title 10, United 
States Code, is amended to read as follows:

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

SEC. 534. REVIEW OF ALLOCATION OF JUNIOR RESERVE OFFICERS TRAINING 
              CORPS UNITS AMONG THE SERVICES.

    (a) Reallocation of JROTC Units.--Not later than March 31, 2001, 
the Secretary of Defense shall--
            (1) review the allocation among the military departments of 
        the statutory maximum number of Junior Reserve Officers' 
        Training Corps (JROTC) units; and
            (2) redistribute the allocation of those units planned (as 
        of the date of the enactment of this Act) for fiscal years 2001 
        through 2006 so as to increase the number of units for a 
        military department that proposes to more quickly eliminate the 
        current waiting list for such units and to commit the necessary 
        resources for that purpose.
    (b) Proposal for Increase in Statutory Maximum.--If, based on the 
review under subsection (a) and the redistribution of the allocation of 
JROTC units under that subsection, the Secretary determines that an 
increase in the statutory maximum number of such units is warranted, 
the Secretary shall include a proposal for such an increase in the 
budget proposal of the Department of Defense for fiscal year 2002.

SEC. 535. AUTHORITY FOR NAVAL POSTGRADUATE SCHOOL TO ENROLL CERTAIN 
              DEFENSE INDUSTRY CIVILIANS IN SPECIFIED PROGRAMS RELATING 
              TO DEFENSE PRODUCT DEVELOPMENT.

    (a) In General.--(1) Chapter 605 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 7049. Defense industry civilians: admission to defense product 
              development program
    ``(a) Authority for Admission.--The Secretary of the Navy may 
permit eligible defense industry employees to receive instruction at 
the Naval Postgraduate School in accordance with this section. Any such 
defense industry employee may only be enrolled in, and may only be 
provided instruction in, a program leading to a masters's degree in a 
curriculum related to defense product development. No more than 10 such 
defense industry employees may be enrolled at any one time. Upon 
successful completion of the course of instruction in which enrolled, 
any such defense industry employee may be awarded an appropriate degree 
under section 7048 of this title.
    ``(b) Eligible Defense Industry Employees.--For purposes of this 
section, an eligible defense industry employee is an individual 
employed by a private firm that is engaged in providing to the 
Department of Defense significant and substantial defense-related 
systems, products, or services. A defense industry employee admitted 
for instruction at the school remains eligible for such instruction 
only so long at that person remains employed by the same firm.
    ``(c) Annual Certification by the Secretary of the Navy.--Defense 
industry employees may receive instruction at the school during any 
academic year only if, before the start of that academic year, the 
Secretary of the Navy determines, and certifies to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives, that providing instruction to defense 
industry employees under this section during that year--
            ``(1) will further the military mission of the school;
            ``(2) will enhance the ability of the Department of Defense 
        and defense-oriented private sector contractors engaged in the 
        design and development of defense systems to reduce the product 
        and project lead times required to bring such systems to 
        initial operational capability; and
            ``(3) will be done on a space-available basis and not 
        require an increase in the size of the faculty of the school, 
        an increase in the course offerings of the school, or an 
        increase in the laboratory facilities or other infrastructure 
        of the school.
    ``(d) Program Requirements.--The Secretary of the Navy shall ensure 
that--
            ``(1) the curriculum for the defense product development 
        program in which defense industry employees may be enrolled 
        under this section is not readily available through other 
        schools and concentrates on defense product development 
        functions that are conducted by military organizations and 
        defense contractors working in close cooperation; and
            ``(2) the course offerings at the school continue to be 
        determined solely by the needs of the Department of Defense.
    ``(e) Tuition.--The Superintendent of the school shall charge 
tuition for students enrolled under this section at a rate not less 
than the rate charged for employees of the United States outside the 
Department of the Navy.
    ``(f) Standards of Conduct.--While receiving instruction at the 
school, students enrolled under this section, to the extent 
practicable, are subject to the same regulations governing academic 
performance, attendance, norms of behavior, and enrollment as apply to 
Government civilian employees receiving instruction at the school.
    ``(g) Use of Funds.--Amounts received by the school for instruction 
of students enrolled under this section shall be retained by the school 
to defray the costs of such instruction. The source, and the 
disposition, of such funds shall be specifically identified in records 
of the school.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``7049. Defense industry civilians: admission to defense product 
                            development program.''.
    (b) Program Evaluation and Report.--(1) Before the start of the 
fourth year of instruction, but no earlier than the start of the third 
year of instruction, of defense industry employees at the Naval 
Postgraduate School under section 7049 of title 10, United States Code, 
as added by subsection (a), the Secretary of the Navy shall conduct an 
evaluation of the admission of such students under that section. The 
evaluation shall include the following:
            (A) An assessment of whether the authority for instruction 
        of nongovernment civilians at the school has resulted in a 
        discernible benefit for the Government.
            (B) Determination of whether the receipt and disposition of 
        funds received by the school as tuition for instruction of such 
        civilians at the school have been properly identified in 
        records of the school.
            (C) A summary of the disposition and uses made of those 
        funds.
            (D) An assessment of whether instruction of such civilians 
        at the school is in the best interests of the Government.
    (2) Not later than 30 days after completing the evaluation referred 
to in paragraph (1), the Secretary of the Navy shall submit to the 
Secretary of Defense a report on the program under such section. The 
report shall include--
            (A) the results of the evaluation under paragraph (1);
            (B) the Secretary's conclusions and recommendation with 
        respect to continuing to allow nongovernment civilians to 
        receive instruction at the Naval Postgraduate School as part of 
        a program related to defense product development; and
            (C) any proposals for legislative changes recommended by 
        the Secretary.
    (3) Not later than 60 days after receiving the report of the 
Secretary of the Navy under paragraph (2), the Secretary of Defense 
shall submit the report, together with any comments that the Secretary 
considers appropriate, to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives.

           Subtitle D--Decorations, Awards, and Commendations

SEC. 541. LIMITATION ON AWARD OF BRONZE STAR TO MEMBERS IN RECEIPT OF 
              IMMINENT DANGER PAY.

    (a) In General.--Chapter 57 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1133. Bronze Star: limitation to members receiving imminent 
              danger pay
    ``The decoration known as the `Bronze Star' may only be awarded to 
a member of the armed forces who is in receipt of special pay under 
section 310 of title 37 at the time of the events for which the 
decoration is to be awarded or who receives such pay as a result of 
those events.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1133. Bronze star: limitation to members receiving imminent danger 
                            pay.''.

SEC. 542. CONSIDERATION OF PROPOSALS FOR POSTHUMOUS OR HONORARY 
              PROMOTIONS OR APPOINTMENTS OF MEMBERS OR FORMER MEMBERS 
              OF THE ARMED FORCES AND OTHER QUALIFIED PERSONS.

    (a) In General.--Chapter 80 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1563. Consideration of proposals for posthumous and honorary 
              promotions and appointments: procedures for review and 
              recommendation
    ``(a) Review by Secretary Concerned.--Upon request of a Member of 
Congress, the Secretary concerned shall review a proposal for the 
posthumous or honorary promotion or appointment of a member or former 
member of the armed forces, or any other person considered qualified, 
that is not otherwise authorized by law. Based upon such review, the 
Secretary shall make a determination as to the merits of approving the 
posthumous or honorary promotion or appointment and the other 
determinations necessary to comply with subsection (b).
    ``(b) Notice of Results of Review.--Upon making a determination 
under subsection (a) as to the merits of approving the posthumous or 
honorary promotion or appointment, the Secretary concerned shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives and to the requesting 
Member of Congress notice in writing of one of the following:
            ``(1) The posthumous or honorary promotion or appointment 
        does not warrant approval on the merits.
            ``(2) The posthumous or honorary promotion or appointment 
        warrants approval and authorization by law for the promotion or 
        appointment is recommended.
            ``(3) The posthumous or honorary promotion or appointment 
        warrants approval on the merits and has been recommended to the 
        President as an exception to policy.
            ``(4) The posthumous or honorary promotion or appointment 
        warrants approval on the merits and authorization by law for 
        the promotion or appointment is required but is not 
        recommended.
A notice under paragraph (1) or (4) shall be accompanied by a statement 
of the reasons for the decision of the Secretary.
    ``(c) Definition.--In this section, the term `Member of Congress' 
means--
            ``(1) a Senator; or
            ``(2) a Representative in, or a Delegate or Resident 
        Commissioner to, Congress.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1563. Consideration of proposals for posthumous and honorary 
                            promotions and appointments: procedures for 
                            review and recommendation.''.

SEC. 543. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
              TO CERTAIN PERSONS.

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

SEC. 544. ADDITION OF CERTAIN INFORMATION TO MARKERS ON GRAVES 
              CONTAINING REMAINS OF CERTAIN UNKNOWNS FROM THE U.S.S. 
              ARIZONA WHO DIED IN THE JAPANESE ATTACK ON PEARL HARBOR 
              ON DECEMBER 7, 1941.

    (a) Information To Be Provided Secretary of Veterans Affairs.--The 
Secretary of the Army shall provide to the Secretary of Veterans 
Affairs certain information, as specified in subsection (b), pertaining 
to the remains of certain unknown persons that are interred in the 
National Memorial Cemetery of the Pacific, Honolulu, Hawaii. The 
Secretary of Veterans Affairs shall add to the inscriptions on the 
markers on the graves containing those remains the information 
provided.
    (b) Information To Be Added--The information to be added to grave 
markers under subsection (a)--
            (1) shall be determined by the Secretary of the Army, based 
        on a review of the information that, as of the date of the 
        enactment of this Act, has been authenticated by the director 
        of the Naval Historical Center, Washington, D.C., pertaining to 
        the interment of remains of certain unknown casualties from the 
        U.S.S. ARIZONA who died as a result of the Japanese attack on 
        Pearl Harbor on December 7, 1941; and
            (2) shall, at a minimum, indicate that the interred remains 
        are from the U.S.S. ARIZONA.
    (c) Limitation of Scope of Section.--This section does not impose 
any requirement on the Secretary of the Army to undertake a review of 
any information pertaining to the interred remains of any unknown 
person other than as provided in subsection (b).

SEC. 545. SENSE OF CONGRESS ON THE COURT-MARTIAL CONVICTION OF CAPTAIN 
              CHARLES BUTLER MCVAY, COMMANDER OF THE U.S.S. 
              INDIANAPOLIS, AND ON THE COURAGEOUS SERVICE OF THE CREW 
              OF THAT VESSEL.

    (a) Findings.--Congress makes the following findings:
            (1) Shortly after midnight on the morning of July 30, 1945, 
        during the closing days of World War II, the United States Navy 
        heavy cruiser U.S.S. Indianapolis (CA-35) was torpedoed and 
        sunk by the Japanese submarine I-58 in what became the worst 
        sea disaster in the history of the United States Navy.
            (2) Although approximately 900 of the ship's crew of 1,196 
        survived the actual sinking, only 316 of those courageous 
        sailors survived when rescued after four and a half days adrift 
        in the open sea, the remainder having perishing from battle 
        wounds, drowning, predatory shark attacks, exposure to the 
        elements, and lack of food and potable water.
            (3) Rescue for the remaining 316 sailors came only when 
        they were spotted by chance by Navy Lieutenant Wilbur C. Gwinn 
        while flying a routine naval air patrol mission.
            (4) After the end of World War II, the commanding officer 
        of the U.S.S. Indianapolis, Captain Charles Butler McVay, III, 
        who was rescued with the other survivors, was court-martialed 
        for ``suffering a vessel to be hazarded through negligence'' by 
        failing to zigzag (a naval tactic employed to help evade 
        submarine attacks) and was convicted even though--
                    (A) the choice to zigzag was left to Captain 
                McVay's discretion in his orders; and
                    (B) Motchisura Hashimoto, the commander of the 
                Japanese submarine that sank the U.S.S. Indianapolis, 
                and Glynn R. Donaho, a United States Navy submarine 
                commander highly decorated for his service during World 
                War II, both testified at Captain McVay's court-martial 
                trial that the Japanese submarine could have sunk the 
                U.S.S. Indianapolis whether or not it had been 
                zigzagging, an assertion that has since been reaffirmed 
                in a letter to the Chairman of the Committee on Armed 
                Services of the Senate dated November 24, 1999.
            (5) Although not argued by Captain McVay's defense counsel 
        in the court-martial trial, poor visibility on the night of the 
        sinking (as attested in surviving crew members' handwritten 
        accounts recently discovered at the National Archives) 
        justified Captain McVay's choice not to zigzag as that choice 
        was consistent with the applicable Navy directives in force in 
        1945, which stated that, ``During thick weather and at night, 
        except on very clear nights or during bright moonlight, vessels 
        normally cease zig-zagging.''.
            (6) Before the U.S.S. Indianapolis sailed from Guam on what 
        became her final voyage, Naval officials failed to provide 
        Captain McVay with available support that was critical to the 
        safety of the U.S.S. Indianapolis and her crew by--
                    (A) disapproving a request made by Captain McVay 
                for a destroyer escort for the U.S.S. Indianapolis 
                across the Philippine Sea as being ``not necessary'';
                    (B) not informing Captain McVay that naval 
                intelligence sources, through signal intelligence (the 
                Japanese code having been broken earlier in World War 
                II), had become aware that the Japanese submarine I-58 
                was operating in the area of the U.S.S. Indianapolis' 
                course (as disclosed in evidence presented in a hearing 
                of the Committee on Armed Services of the Senate 
                conducted September 14, 1999); and
                    (C) not informing Captain McVay of the sinking of 
                the destroyer escort U.S.S. Underhill by a Japanese 
                submarine within range of the course of the U.S.S. 
                Indianapolis four days before the U.S.S. Indianapolis 
                departed Guam for the Philippine Islands.
            (7) Captain McVay's court-martial initially was opposed by 
        his immediate command superiors, Fleet Admiral Chester Nimitz 
        (CINCPAC) and Vice Admiral Raymond Spruance of the 5th fleet, 
        for whom the U.S.S. Indianapolis had served as flagship, but, 
        despite their recommendations, Secretary of the Navy James 
        Forrestal ordered the court-martial, largely on the basis of 
        the recommendation of Fleet Admiral Ernest King, Chief of Naval 
        Operations.
            (8) There is no explanation on the public record for the 
        overruling by Secretary Forestal of the recommendations made by 
        Admirals Nimitz and Spruance.
            (9) Captain McVay was the only commander of a United States 
        Navy vessel lost in combat to enemy action during World War II 
        who was subjected to a court-martial trial for such a loss, 
        even though several hundred United States Navy ships were lost 
        in combat to enemy action during World War II.
            (10) The survivors of the U.S.S. Indianapolis 
        overwhelmingly conclude that Captain McVay was not at fault in 
        the loss of the Indianapolis and have dedicated their lives to 
        vindicating their Captain McVay.
            (11) Although promoted to the grade of rear admiral in 
        accordance with then-applicable law upon retirement from the 
        Navy in 1949, Captain McVay never recovered from the stigma of 
        his post-war court-martial and in 1968, tragically, took his 
        own life.
            (12) Charles Butler McVay, III--
                    (A) was a graduate of the United States Naval 
                Academy;
                    (B) was an exemplary career naval officer with an 
                outstanding record (including participation in the 
                amphibious invasions of North Africa, the assault on 
                Iwo Jima, and the assault on Okinawa where the U.S.S. 
                Indianapolis under his command survived a fierce 
                kamikaze attack);
                    (C) was a recipient of the Silver Star earned for 
                courage under fire during the Solomon Islands campaign; 
                and
                    (D) with the crew of the U.S.S. Indianapolis, had 
                so thoroughly demonstrated proficiency in naval warfare 
                that the Navy entrusted him and the crew of the U.S.S. 
                Indianapolis with transporting to the Pacific theater 
                components necessary for assembling the atomic bombs 
                that were exploded over Hiroshima and Nagasaki to end 
                the war with Japan (delivery of such components to the 
                island of Tinian having been accomplished on July 25, 
                1945).
    (b) Sense of Congress Concerning Charles Butler McVay, III.--With 
respect to the sinking of the U.S.S. Indianapolis (CA-35) on July 30, 
1945, and the subsequent court-martial conviction of the ship's 
commanding officer, Captain Charles Butler McVay, III, arising from 
that sinking, it is the sense of Congress, based on the review of 
evidence by the Senate and the House of Representatives--
            (1) that, in light of the remission by the Secretary of the 
        Navy of the sentence of the court-martial and the restoration 
        of Captain McVay to active duty by the Chief of Naval 
        Operations, Fleet Admiral Chester Nimitz, the American people 
        should now recognize Captain McVay's lack of culpability for 
        the tragic loss of the U.S.S. Indianapolis and the lives of the 
        men who died as a result of the sinking of that vessel; and
            (2) that, in light of the fact that certain exculpatory 
        information was not available to the court-martial board and 
        that Captain McVay's conviction resulted therefrom, Captain 
        McVay's military record should now reflect that he is 
        exonerated for the loss of the U.S.S. Indianapolis and so many 
        of her crew.
    (c) Unit Citation for Final Crew of U.S.S. Indianapolis.--The 
Secretary of the Navy should award a Navy Unit Commendation to the 
U.S.S. Indianapolis (CA-35) and her final crew.

SEC. 546. POSTHUMOUS ADVANCEMENT ON RETIRED LIST OF REAR ADMIRAL 
              HUSBAND E. KIMMEL AND MAJOR GENERAL WALTER C. SHORT, 
              SENIOR OFFICERS IN COMMAND IN HAWAII ON DECEMBER 7, 1941.

    (a) Findings.--Congress makes the following findings:
            (1) The late Rear Admiral Husband E. Kimmel, while serving 
        in the temporary grade of admiral, was the Commander in Chief 
        of the United States Fleet and the Commander in Chief, United 
        States Pacific Fleet, at the time of the Japanese attack on 
        Pearl Harbor, Hawaii, on December 7, 1941, with an excellent 
        and unassailable record throughout his career in the United 
        States Navy before that date.
            (2) The late Major General Walter C. Short, while serving 
        in the temporary grade of lieutenant general, was the Commander 
        of the United States Army Hawaiian Department, at the time of 
        the Japanese attack on Pearl Harbor, Hawaii, on December 7, 
        1941, with an excellent and unassailable record throughout his 
        career in the United States Army before that date.
            (3) Numerous investigations following the attack on Pearl 
        Harbor have documented that Admiral Kimmel and Lieutenant 
        General Short were not provided necessary and critical 
        intelligence that was available, that foretold of war with 
        Japan, that warned of imminent attack, and that would have 
        alerted them to prepare for the attack, including such 
        essential communiques as the Japanese Pearl Harbor Bomb Plot 
        message of September 24, 1941, and the message sent from the 
        Imperial Japanese Foreign Ministry to the Japanese Ambassador 
        in the United States from December 6 to 7, 1941, known as the 
        Fourteen-Part Message.
            (4) On December 16, 1941, Admiral Kimmel and Lieutenant 
        General Short were relieved of their commands and returned to 
        their permanent grades of rear admiral and major general, 
        respectively.
            (5) Admiral William Harrison Standley, who served as a 
        member of the investigating commission known as the Roberts 
        Commission that accused Admiral Kimmel and Lieutenant General 
        Short of ``dereliction of duty'' only six weeks after the 
        attack on Pearl Harbor, later disavowed the report, maintaining 
        that ``these two officers were martyred'' and ``if they had 
        been brought to trial, both would have been cleared of the 
        charge''.
            (6) On October 19, 1944, a Naval Court of Inquiry--
                    (A) exonerated Admiral Kimmel on the grounds that 
                his military decisions and the disposition of his 
                forces at the time of the December 7, 1941, attack on 
                Pearl Harbor were proper ``by virtue of the information 
                that Admiral Kimmel had at hand which indicated neither 
                the probability nor the imminence of an air attack on 
                Pearl Harbor'';
                    (B) criticized the higher command for not sharing 
                with Admiral Kimmel ``during the very critical period 
                of November 26 to December 7, 1941, important 
                information . . . regarding the Japanese situation''; 
                and
                    (C) concluded that the Japanese attack and its 
                outcome was attributable to no serious fault on the 
                part of anyone in the naval service.
            (7) On June 15, 1944, an investigation conducted by Admiral 
        T. C. Hart at the direction of the Secretary of the Navy 
        produced evidence, subsequently confirmed, that essential 
        intelligence concerning Japanese intentions and war plans was 
        available in Washington but was not shared with Admiral Kimmel.
            (8) On October 20, 1944, the Army Pearl Harbor Board of 
        Investigation determined that--
                    (A) Lieutenant General Short had not been kept 
                ``fully advised of the growing tenseness of the 
                Japanese situation which indicated an increasing 
                necessity for better preparation for war'';
                    (B) detailed information and intelligence about 
                Japanese intentions and war plans were available in 
                ``abundance'' but were not shared with the Lieutenant 
                General Short's Hawaii command; and
                    (C) Lieutenant General Short was not provided ``on 
                the evening of December 6th and the early morning of 
                December 7th, the critical information indicating an 
                almost immediate break with Japan, though there was 
                ample time to have accomplished this''.
            (9) The reports by both the Naval Court of Inquiry and the 
        Army Pearl Harbor Board of Investigation were kept secret, and 
        Rear Admiral Kimmel and Major General Short were denied their 
        requests to defend themselves through trial by court-martial.
            (10) The joint committee of Congress that was established 
        to investigate the conduct of Admiral Kimmel and Lieutenant 
        General Short completed, on May 31, 1946, a 1,075-page report 
        which included the conclusions of the committee that the two 
        officers had not been guilty of dereliction of duty.
            (11) On April 27, 1954, the Chief of Naval Personnel, 
        Admiral J. L. Holloway, Jr., recommended that Rear Admiral 
        Kimmel be advanced in rank in accordance with the provisions of 
        the Officer Personnel Act of 1947.
            (12) On November 13, 1991, a majority of the members of the 
        Board for the Correction of Military Records of the Department 
        of the Army found that Major General Short ``was unjustly held 
        responsible for the Pearl Harbor disaster'' and that ``it would 
        be equitable and just'' to advance him to the rank of 
        lieutenant general on the retired list.
            (13) In October 1994, the Chief of Naval Operations, 
        Admiral Carlisle Trost, withdrew his 1988 recommendation 
        against the advancement of Rear Admiral Kimmel and recommended 
        that his case be reopened.
            (14) Although the Dorn Report, a report on the results of a 
        Department of Defense study that was issued on December 15, 
        1995, did not provide support for an advancement of Rear 
        Admiral Kimmel or Major General Short in grade, it did set 
        forth as a conclusion of the study that ``responsibility for 
        the Pearl Harbor disaster should not fall solely on the 
        shoulders of Admiral Kimmel and Lieutenant General Short, it 
        should be broadly shared''.
            (15) The Dorn Report found--
                    (A) that ``Army and Navy officials in Washington 
                were privy to intercepted Japanese diplomatic 
                communications . . . which provided crucial 
                confirmation of the imminence of war'';
                    (B) that ``the evidence of the handling of these 
                messages in Washington reveals some ineptitude, some 
                unwarranted assumptions and misestimations, limited 
                coordination, ambiguous language, and lack of 
                clarification and followup at higher levels''; and
                    (C) that ``together, these characteristics resulted 
                in failure . . . to appreciate fully and to convey to 
                the commanders in Hawaii the sense of focus and urgency 
                that these intercepts should have engendered''.
            (16) On July 21, 1997, Vice Admiral David C. Richardson 
        (United States Navy, retired) responded to the Dorn Report with 
        his own study which confirmed findings of the Naval Court of 
        Inquiry and the Army Pearl Harbor Board of Investigation and 
        established, among other facts, that the war effort in 1941 was 
        undermined by a restrictive intelligence distribution policy, 
        and the degree to which the commanders of the United States 
        forces in Hawaii were not alerted about the impending attack on 
        Hawaii was directly attributable to the withholding of 
        intelligence from Admiral Kimmel and Lieutenant General Short.
            (17) The Officer Personnel Act of 1947, in establishing a 
        promotion system for the Navy and the Army, provided a legal 
        basis for the President to honor any officer of the Armed 
        Forces of the United States who served his country as a senior 
        commander during World War II with a placement of that officer, 
        with the advice and consent of the Senate, on the retired list 
        with the highest grade held while on the active duty list.
            (18) Rear Admiral Kimmel and Major General Short are the 
        only two officers eligible for advancement under the Officer 
        Personnel Act of 1947 as senior World War II commanders who 
        were excluded from the list of retired officers presented for 
        advancement on the retired lists to their highest wartime 
        grades under that Act.
            (19) This singular exclusion of those two officers from 
        advancement on the retired list serves only to perpetuate the 
        myth that the senior commanders in Hawaii were derelict in 
        their duty and responsible for the success of the attack on 
        Pearl Harbor, a distinct and unacceptable expression of 
        dishonor toward two of the finest officers who have served in 
        the Armed Forces of the United States.
            (20) Major General Walter Short died on September 23, 1949, 
        and Rear Admiral Husband Kimmel died on May 14, 1968, without 
        the honor of having been returned to their wartime grades as 
        were their fellow commanders of World War II.
            (21) The Veterans of Foreign Wars, the Pearl Harbor 
        Survivors Association, the Admiral Nimitz Foundation, the Naval 
        Academy Alumni Association, the Retired Officers Association, 
        and the Pearl Harbor Commemorative Committee, and other 
        associations and numerous retired military officers have called 
        for the rehabilitation of the reputations and honor of Admiral 
        Kimmel and Lieutenant General Short through their posthumous 
        advancement on the retired lists to their highest wartime 
        grades.
    (b) Advancement of Rear Admiral Kimmel and Major General Short on 
Retired Lists.--(1) The President is requested--
            (A) to advance the late Rear Admiral Husband E. Kimmel, 
        United States Navy (retired), to the grade of admiral on the 
        retired list of the Navy; and
            (B) to advance the late Major General Walter C. Short, 
        United States Army (retired), to the grade of lieutenant 
        general on the retired list of the Army.
    (2) Any advancement in grade on a retired list requested under 
paragraph (1) shall not increase or change the compensation or benefits 
from the United States to which any person is now or may in the future 
be entitled based upon the military service of the officer advanced.
    (c) Sense of Congress Regarding the Professional Performance of 
Admiral Kimmel and Lieutenant General Short.--It is the sense of 
Congress--
            (1) that the late Rear Admiral Husband E. Kimmel performed 
        his duties as Commander in Chief, United States Pacific Fleet, 
        competently and professionally and, therefore, that the losses 
        incurred by the United States in the attacks on the naval base 
        at Pearl Harbor, Hawaii, and other targets on the island of 
        Oahu, Hawaii, on December 7, 1941, were not a result of 
        dereliction in the performance of those duties by then Admiral 
        Kimmel; and
            (2) that the late Major General Walter C. Short performed 
        his duties as Commanding General, Hawaiian Department, 
        competently and professionally and, therefore, that the losses 
        incurred by the United States in the attacks on Hickam Army Air 
        Field and Schofield Barracks, Hawaii, and other targets on the 
        island of Oahu, Hawaii, on December 7, 1941, were not a result 
        of dereliction in the performance of those duties by then 
        Lieutenant General Short.

SEC. 547. COMMENDATION OF CITIZENS OF REMY, FRANCE, FOR WORLD WAR II 
              ACTIONS.

    (a) Findings.--The Congress finds the following:
            (1) On August 2, 1944, a squadron of P-51s from the United 
        States 364th Fighter Group strafed a German munitions train in 
        Remy, France.
            (2) The resulting explosion killed Lieutenant Houston 
        Braly, one of the attacking pilots, and destroyed much of the 
        village of Remy, including seven stained glass windows in the 
        13th century church.
            (3) Despite threats of reprisals from the occupying German 
        authorities, the citizens of Remy recovered Lieutenant Braly's 
        body from the wreckage, buried his body with dignity and honor 
        in the church's cemetery, and decorated the grave site daily 
        with fresh flowers.
            (4) On Armistice Day, 1995, the village of Remy renamed the 
        crossroads near the site of Lieutenant Braly's death in his 
        honor.
            (5) The surviving members of the 364th Fighter Group desire 
        to express their gratitude to the brave citizens of Remy.
            (6) To express their gratitude, the surviving members of 
        the 364th Fighter Group have organized a nonprofit corporation 
        to raise funds, through its project ``Windows for Remy'', to 
        restore the church's stained glass windows.
    (b) Commendation and Recognition.--The Congress commends the 
bravery and honor of the citizens of Remy, France, for their actions 
with respect to the American fighter pilot Lieutenant Houston Braly 
during and after August 1944, and recognizes the efforts of the 
surviving members of the United States 364th Fighter Group to raise 
funds to restore the stained glass windows of Remy's 13th century 
church.

SEC. 548. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO WILLIAM H. 
              PITSENBARGER FOR VALOR DURING THE VIETNAM WAR.

    (a) Waiver of Time Limitations.--Notwithstanding the period of 
limitations specified in section 8744 of title 10, United States Code, 
or any other time limitation with respect to the awarding of certain 
medals to persons who served in the Air Force, the President may award 
the Medal of Honor under section 8741 of that title, posthumously, to 
William H. Pitsenbarger of Piqua, Ohio, for the acts of valor referred 
to in subsection (b).
    (b) Action Defined.--The acts of valor referred to in subsection 
(a) are the actions of William H. Pitsenbarger on April 11, 1966, as an 
Air Force pararescue crew member, serving in the grade of Airman First 
Class at Cam My, Republic of Vietnam, with Detachment 6, 38th Aerospace 
Rescue and Recovery Helicopter Squadron, in support of the combat 
mission known as ``Operations Abilene''.

       Subtitle E--Military Justice and Legal Assistance Matters

SEC. 551. RECOGNITION BY STATES OF MILITARY TESTAMENTARY INSTRUMENTS.

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

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

SEC. 552. POLICY CONCERNING RIGHTS OF INDIVIDUALS WHOSE NAMES HAVE BEEN 
              ENTERED INTO DEPARTMENT OF DEFENSE OFFICIAL CRIMINAL 
              INVESTIGATIVE REPORTS.

    (a) Policy Requirement.--The Secretary of Defense shall establish a 
policy creating a uniform process within the Department of Defense 
that--
            (1) affords any individual who, in connection with the 
        investigation of a reported crime, is designated (by name or by 
        any other identifying information) as a suspect in the case in 
        any official investigative report, or in a central index for 
        potential retrieval and analysis by law enforcement 
        organizations, an opportunity to obtain a review of that 
        designation; and
            (2) requires the expungement of the name and other 
        identifying information of any such individual from such report 
        or index in any case in which it is determined the entry of 
        such identifying information on that individual was made 
        contrary to Department of Defense requirements.
    (b) Effective Date.--The policy required by subsection (a) shall be 
established not later than 120 days after the date of the enactment of 
this Act.

SEC. 553. LIMITATION ON SECRETARIAL AUTHORITY TO GRANT CLEMENCY FOR 
              MILITARY PRISONERS SERVING SENTENCE OF CONFINEMENT FOR 
              LIFE WITHOUT ELIGIBILITY FOR PAROLE.

    (a) Limitation.--Section 874(a) of title 10, United States Code 
(article 74(a) of the Uniform Code of Military Justice), is amended by 
adding at the end the following new sentence: ``However, in the case of 
a sentence of confinement for life without eligibility for parole, 
after the sentence is ordered executed, the authority of the Secretary 
concerned under the preceding sentence (1) may not be delegated, and 
(2) may be exercised only after the service of a period of confinement 
of not less than 20 years.''.
    (b) Effective Date.--The amendment made by subsection (a) shall not 
apply with respect to a sentence of confinement for life without 
eligibility for parole that is adjudged for an offense committed before 
the date of the enactment of this Act.

SEC. 554. AUTHORITY FOR CIVILIAN SPECIAL AGENTS OF MILITARY DEPARTMENT 
              CRIMINAL INVESTIGATIVE ORGANIZATIONS TO EXECUTE WARRANTS 
              AND MAKE ARRESTS.

    (a) Department of the Army.--(1) Chapter 373 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 4027. Civilian special agents of the Criminal Investigation 
              Command: authority to execute warrants and make arrests
    ``(a) Authority.--The Secretary of the Army may authorize any 
Department of the Army civilian employee described in subsection (b) to 
have the same authority to execute and serve warrants and other 
processes issued under the authority of the United States and to make 
arrests without a warrant as may be authorized under section 1585a of 
this title for special agents of the Defense Criminal Investigative 
Service.
    ``(b) Agents To Have Authority.--Subsection (a) applies to any 
employee of the Department of the Army who is a special agent of the 
Army Criminal Investigation Command (or a successor to that command) 
whose duties include conducting, supervising, or coordinating 
investigations of criminal activity in programs and operations of the 
Department of the Army.
    ``(c) Guidelines for Exercise of Authority.--The authority provided 
under subsection (a) shall be exercised in accordance with guidelines 
prescribed by the Secretary of the Army and approved by the Secretary 
of Defense and the Attorney General and any other applicable guidelines 
prescribed by the Secretary of the Army, the Secretary of Defense, or 
the Attorney General.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end following new item:

``4027. Civilian special agents of the Criminal Investigation Command: 
                            authority to execute warrants and make 
                            arrests.''.
    (b) Department of the Navy.--(1) Chapter 643 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 7480. Special agents of the Naval Criminal Investigative 
              Service: authority to execute warrants and make arrests
    ``(a) Authority.--The Secretary of the Navy may authorize any 
Department of the Navy civilian employee described in subsection (b) to 
have the same authority to execute and serve warrants and other 
processes issued under the authority of the United States and to make 
arrests without a warrant as may be authorized under section 1585a of 
this title for special agents of the Defense Criminal Investigative 
Service.
    ``(b) Agents To Have Authority.--Subsection (a) applies to any 
employee of the Department of the Navy who is a special agent of the 
Naval Criminal Investigative Service (or any successor to that service) 
whose duties include conducting, supervising, or coordinating 
investigations of criminal activity in programs and operations of the 
Department of the Navy.
    ``(c) Guidelines for Exercise of Authority.--The authority provided 
under subsection (a) shall be exercised in accordance with guidelines 
prescribed by the Secretary of the Navy and approved by the Secretary 
of Defense and the Attorney General and any other applicable guidelines 
prescribed by the Secretary of the Navy, the Secretary of Defense, or 
the Attorney General.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end following new item:

``7480. Special agents of the Naval Criminal Investigative Service: 
                            authority to execute warrants and make 
                            arrests.''.
    (c) Department of the Air Force.--(1) Chapter 873 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 9027. Civilian special agents of the Office of Special 
              Investigations: authority to execute warrants and make 
              arrests
    ``(a) Authority.--The Secretary of the Air Force may authorize any 
Department of the Air Force civilian employee described in subsection 
(b) to have the same authority to execute and serve warrants and other 
processes issued under the authority of the United States and to make 
arrests without a warrant as may be authorized under section 1585a of 
this title for special agents of the Defense Criminal Investigative 
Service.
    ``(b) Agents To Have Authority.--Subsection (a) applies to any 
employee of the Department of the Air Force who is a special agent of 
the Air Force Office of Special Investigations (or a successor to that 
office) whose duties include conducting, supervising, or coordinating 
investigations of criminal activity in programs and operations of the 
Department of the Air Force.
    ``(c) Guidelines for Exercise of Authority.--The authority provided 
under subsection (a) shall be exercised in accordance with guidelines 
prescribed by the Secretary of the Air Force and approved by the 
Secretary of Defense and the Attorney General and any other applicable 
guidelines prescribed by the Secretary of the Air Force, the Secretary 
of Defense, or the Attorney General.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end following new item:

``9027. Civilian special agents of the Office of Special 
                            Investigations: authority to execute 
                            warrants and make arrests.''.

SEC. 555. REQUIREMENT FOR VERBATIM RECORD IN CERTAIN SPECIAL COURT-
              MARTIAL CASES.

    (a) When Required.--Subsection (c)(1)(B) of section 854 of title 
10, United States Code (article 54 of the Uniform Code of Military 
Justice), is amended by inserting after ``bad-conduct discharge'' the 
following: ``, confinement for more than six months, or forfeiture of 
pay for more than six months''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as of April 1, 2000, and shall apply with respect to 
charges referred on or after that date to trial by special court-
martial.

SEC. 556. COMMEMORATION OF THE 50TH ANNIVERSARY OF THE UNIFORM CODE OF 
              MILITARY JUSTICE.

    (a) Findings.--Congress makes the following findings:
            (1) The American military justice system predates the 
        United States itself, having had a continuous existence since 
        the enactment of the first American Articles of War by the 
        Continental Congress in 1775.
            (2) Pursuant to article I of the Constitution, which 
        explicitly empowers Congress ``To make Rules for the Government 
        and Regulation of the land and naval Forces'', Congress enacted 
        the Articles of War and an Act to Govern the Navy, which were 
        revised on several occasions between the ratification of the 
        Constitution and the end of World War II.
            (3) Dissatisfaction with the administration of military 
        justice during World War I and World War II (including 
        dissatisfaction arising from separate systems of justice for 
        the Army and for the Navy and Marine Corps) led both to 
        significant statutory reforms in the Articles of War and to the 
        convening of a committee, under Department of Defense auspices, 
        to draft a single code of military justice applicable uniformly 
        to all of the Armed Forces.
            (4) The committee, chaired by Professor Edmund M. Morgan of 
        Harvard Law School, made recommendations that formed the basis 
        of bills introduced in Congress to establish such a uniform 
        code of military justice.
            (5) After lengthy hearings and debate on the congressional 
        proposals, the Uniform Code of Military Justice was enacted 
        into law on May 5, 1950, when President Harry S Truman signed 
        the legislation.
            (6) President Truman then issued a revised Manual for 
        Courts-Martial implementing the new code, and the code became 
        effective on May 31, 1951.
            (7) One of the greatest innovations of the Uniform Code of 
        Military Justice (now codified as chapter 47 of title 10, 
        United States Code) was the establishment of a civilian court 
        of appeals within the military justice system. That court, the 
        United States Court of Military Appeals (now the United States 
        Court of Appeals for the Armed Forces), held its first session 
        on July 25, 1951.
            (8) Congress enacted major revisions of the Uniform Code of 
        Military Justice in 1968 and 1983 and, in addition, has amended 
        the code from time to time over the years as practice under the 
        code indicated a need for updating the substance or procedure 
        of the law of military justice.
            (9) The evolution of the system of military justice under 
        the Uniform Code of Military Justice may be traced in the 
        decisions of the Courts of Criminal Appeals of each of the 
        Armed Forces and the decisions of the United States Court of 
        Appeals for the Armed Forces. These courts have produced a 
        unique body of jurisprudence upon which commanders and judge 
        advocates rely in the performance of their duties.
            (10) It is altogether fitting that the 50th anniversary of 
        the Uniform Code of Military Justice be duly commemorated.
    (b) Commemoration.--The Congress--
            (1) requests the President to issue a proclamation 
        commemorating the 50th anniversary of the Uniform Code of 
        Military Justice; and
            (2) calls upon the Department of Defense, the Armed Forces, 
        and the United States Court of Appeals for the Armed Forces and 
        interested organizations and members of the bar and the public 
        to commemorate the occasion of that anniversary with ceremonies 
        and activities befitting its importance.

               Subtitle F--Matters Relating to Recruiting

SEC. 561. ARMY RECRUITING PILOT PROGRAMS.

    (a) Requirement for Programs.--The Secretary of the Army shall 
carry out pilot programs to test various recruiting approaches under 
this section for the following purposes:
            (1) To assess the effectiveness of the recruiting 
        approaches for creating enhanced opportunities for recruiters 
        to make direct, personal contact with potential recruits.
            (2) To improve the overall effectiveness and efficiency of 
        Army recruiting activities.
    (b) Outreach Through Motor Sports.--(1) One of the pilot programs 
shall be a pilot program of public outreach that associates the Army 
with motor sports competitions to achieve the objectives set forth in 
paragraph (2).
    (2) The events and activities undertaken under the pilot program 
shall be designed to provide opportunities for Army recruiters to make 
direct, personal contact with high school students to achieve the 
following objectives:
            (A) To increase enlistments by students graduating from 
        high school.
            (B) To reduce attrition in the Delayed Entry Program of the 
        Army by sustaining the personal commitment of students who have 
        elected delayed entry into the Army under the program.
    (3) Under the pilot program, the Secretary of the Army shall 
provide for the following:
            (A) For Army recruiters or other Army personnel--
                    (i) to organize Army sponsored career day events in 
                association with national motor sports competitions; 
                and
                    (ii) to arrange for or encourage attendance at the 
                competitions by high school students, teachers, 
                guidance counselors, and administrators of high schools 
                located near the competitions.
            (B) For Army recruiters and other soldiers to attend 
        national motor sports competitions--
                    (i) to display exhibits depicting the contemporary 
                Army and career opportunities in the Army; and
                    (ii) to discuss those opportunities with potential 
                recruits.
            (C) For the Army to sponsor a motor sports racing team as 
        part of an integrated program of recruitment and publicity for 
        the Army.
            (D) For the Army to sponsor motor sports competitions for 
        high school students at which recruiters meet with potential 
        recruits.
            (E) For Army recruiters or other Army personnel to compile 
        in an Internet accessible database the names, addresses, 
        telephone numbers, and electronic mail addresses of persons who 
        are identified as potential recruits through activities under 
        the pilot program.
            (F) Any other activities associated with motor sports 
        competition that the Secretary determines appropriate for Army 
        recruitment purposes.
    (c) Outreach at Vocational Schools and Community Colleges.--(1) One 
of the pilot programs shall be a pilot program under which Army 
recruiters are assigned, as their primary responsibility, at 
postsecondary vocational institutions and community colleges for the 
purpose of recruiting students graduating from those institutions and 
colleges, recent graduates of those institutions and colleges, and 
students withdrawing from enrollments in those institutions and 
colleges.
    (2) The Secretary of the Army shall select the institutions and 
colleges to be invited to participate in the pilot program.
    (3) The conduct of the pilot program at an institution or college 
shall be subject to an agreement which the Secretary shall enter into 
with the governing body or authorized official of the institution or 
college, as the case may be.
    (4) Under the pilot program, the Secretary shall provide for the 
following:
            (A) For Army recruiters to be placed in postsecondary 
        vocational institutions and community colleges to serve as a 
        resource for guidance counselors and to recruit for the Army.
            (B) For Army recruiters to recruit from among students and 
        graduates described in paragraph (1).
            (C) For the use of telemarketing, direct mail, interactive 
        voice response systems, and Internet website capabilities to 
        assist the recruiters in the postsecondary vocational 
        institutions and community colleges.
            (D) For any other activities that the Secretary determines 
        appropriate for recruitment activities in postsecondary 
        vocational institutions and community colleges.
    (5) In this subsection, the term ``postsecondary vocational 
institution'' has the meaning given the term in section 102(c) of the 
Higher Education Act of 1965 (20 U.S.C. 1002(c)).
    (d) Contract Recruiting Initiatives.--(1) One of the pilot programs 
shall be a program that expands in accordance with this subsection the 
scope of the Army's contract recruiting initiatives that are ongoing as 
of the date of the enactment of this Act. Under the pilot program, the 
Secretary of the Army shall select at least 10 recruiting companies to 
apply the initiatives in efforts to recruit personnel for the Army.
    (2) Under the pilot program, the Secretary shall provide for the 
following:
            (A) For replacement of the Regular Army recruiters by 
        contract recruiters in the 10 recruiting companies selected 
        under paragraph (1).
            (B) For operation of the 10 companies under the same rules 
        and chain of command as the other Army recruiting companies.
            (C) For use of the offices, facilities, and equipment of 
        the 10 companies by the contract recruiters.
            (D) For reversion to performance of the recruiting 
        activities by Regular Army soldiers in the 10 companies upon 
        termination of the pilot program.
            (E) For any other uses of contractor personnel for Army 
        recruiting activities that the Secretary determines 
        appropriate.
    (e) Duration of Pilot Programs.--The pilot programs required by 
this section shall be carried out during the period beginning on 
October 1, 2000, and, subject to subsection (f), ending on December 31, 
2005.
    (f) Authority To Expand or Extend Pilot Programs.--The Secretary 
may expand the scope of any of the pilot programs (under subsection 
(b)(3)(F), (c)(4)(D), (d)(2)(E), or otherwise) or extend the period for 
any of the pilot programs. Before doing so in the case of a pilot 
program, the Secretary of the Army shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives a written notification of the expansion of the 
pilot program (together with the scope of the expansion) or the 
continuation of the pilot program (together with the period of the 
extension), as the case may be.
    (g) Reports.--Not later than February 1, 2006, the Secretary of the 
Army shall submit to the Committees on Armed Services of the Senate and 
the House of Representatives a separate report on each of the pilot 
programs carried out under this section. The report on a pilot program 
shall include the following:
            (1) The Secretary's assessment of the value of the actions 
        taken in the administration of the pilot program for increasing 
        the effectiveness and efficiency of Army recruiting.
            (2) Any recommendations for legislation or other action 
        that the Secretary considers appropriate to increase the 
        effectiveness and efficiency of Army recruiting.

SEC. 562. ENHANCEMENT OF RECRUITMENT MARKET RESEARCH AND ADVERTISING 
              PROGRAMS.

    Section 503(a) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Secretary of Defense shall act on a continuing basis to 
enhance the effectiveness of recruitment programs of the Department of 
Defense (including programs conducted jointly and programs conducted by 
the separate armed forces) through an aggressive program of advertising 
and market research targeted at prospective recruits for the armed 
forces and those who may influence prospective recruits. Subchapter I 
of chapter 35 of title 44 shall not apply to actions taken as part of 
that program.''.

SEC. 563. ACCESS TO SECONDARY SCHOOLS FOR MILITARY RECRUITING PURPOSES.

    (a) Requirement for Access.--Subsection (c) of section 503 of title 
10, United States Code, is amended to read as follows:
    ``(c) Access to Secondary Schools.--(1) Each local educational 
agency shall (except as provided under paragraph (5)) provide to the 
Department of Defense, upon a request made for military recruiting 
purposes, the same access to secondary school students, and to 
directory information concerning such students, as is provided 
generally to post-secondary educational institutions or to prospective 
employers of those students.
    ``(2) If a local educational agency denies a request by the 
Department of Defense for recruiting access, the Secretary of Defense, 
in cooperation with the Secretary of the military department concerned, 
shall designate an officer in a grade not below the grade of colonel 
or, in the case of the Navy, captain, or a senior executive of that 
military department to meet with representatives of that local 
educational agency in person, at the offices of that agency, for the 
purpose of arranging for recruiting access. The designated officer or 
senior executive shall seek to have that meeting within 120 days of the 
date of the denial of the request for recruiting access.
    ``(3) If, after a meeting under paragraph (2) with representatives 
of a local educational agency that has denied a request for recruiting 
access or (if the educational agency declines a request for the 
meeting) after the end of such 120-day period, the Secretary of Defense 
determines that the agency continues to deny recruiting access, the 
Secretary shall transmit to the chief executive of the State in which 
the agency is located a notification of the denial of recruiting access 
and a request for assistance in obtaining that access. The notification 
shall be transmitted within 60 days after the date of the 
determination. The Secretary shall provide to the Secretary of 
Education a copy of such notification and any other communication 
between the Secretary and that chief executive with respect to such 
access.
    ``(4) If a local educational agency continues to deny recruiting 
access one year after the date of the transmittal of a notification 
regarding that agency under paragraph (3), the Secretary--
            ``(A) shall determine whether the agency denies recruiting 
        access to at least two of the armed forces (other than the 
        Coast Guard when it is not operating as a service in the Navy); 
        and
            ``(B) upon making an affirmative determination under 
        subparagraph (A), shall transmit a notification of the denial 
        of recruiting access to--
                    ``(i) the specified congressional committees;
                    ``(ii) the Senators of the State in which the local 
                educational agency is located; and
                    ``(iii) the member of the House of Representatives 
                who represents the district in which the local 
                educational agency is located.
    ``(5) The requirements of this subsection do not apply to--
            ``(A) a local educational agency with respect to access to 
        secondary school students or access to directory information 
        concerning such students for any period during which there is 
        in effect a policy of that agency, established by majority vote 
        of the governing body of the agency, to deny recruiting access 
        to those students or to that directory information, 
        respectively; or
            ``(B) a private secondary school which maintains a 
        religious objection to service in the armed forces and which 
        objection is verifiable through the corporate or other 
        organizational documents or materials of that school.
    ``(6) In this subsection:
            ``(A) The term `local educational agency' means--
                    ``(i) a local educational agency, within the 
                meaning of that term in section 14101(18) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 8801(18)); and
                    ``(ii) a private secondary school.
            ``(B) The term `recruiting access' means access requested 
        as described in paragraph (1).
            ``(C) The term `senior executive' has the meaning given 
        that term in section 3132(a)(3) of title 5.
            ``(D) The term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Mariana Islands, Guam, the Virgin Islands, American 
        Samoa, the Federated States of Micronesia, the Republic of the 
        Marshall Islands, and the Republic of Palau.
            ``(E) The term `specified congressional committees' means 
        the following:
                    ``(i) The Committee on Armed Services and the 
                Committee on Health, Education, Labor, and Pensions of 
                the Senate.
                    ``(ii) The Committee on Armed Services and the 
                Committee on Education and the Workforce of the House 
                of Representatives.
            ``(F) The term `member of the House of Representatives' 
        includes a Delegate or Resident Commissioner to Congress.''.
    (b) Definition of Directory Information.--Such section is further 
amended--
            (1) by striking paragraph (7) of subsection (b); and
            (2) by adding at the end the following new subsection:
    ``(d) Directory Information Defined.--In this section, the term 
`directory information' has the meaning given that term in subsection 
(a)(5)(A) of section 444 of the General Education Provisions Act (20 
U.S.C. 1232g).''.
    (c) Technical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Recruiting 
        Campaigns.--'' after ``(a)''; and
            (2) in subsection (b), by inserting ``Compilation of 
        Directory Information.--'' after ``(b)''.
    (d) Effective Date.--The amendment made by subsection (a) shall 
take effect on July 1, 2002.

SEC. 564. PILOT PROGRAM TO ENHANCE MILITARY RECRUITING BY IMPROVING 
              MILITARY AWARENESS OF SCHOOL COUNSELORS AND EDUCATORS.

    (a) In General.--The Secretary of Defense shall conduct a pilot 
program to determine if cooperation with military recruiters by local 
educational agencies and by institutions of higher education could be 
enhanced by improving the understanding of school counselors and 
educators about military recruiting and military career opportunities. 
The pilot program shall be conducted during a three-year period 
beginning not later than 180 days after the date of the enactment of 
this Act.
    (b) Conduct of Pilot Program Through Participation in Interactive 
Internet Site.--(1) The pilot program shall be conducted by means of 
participation by the Department of Defense in a qualifying interactive 
Internet site.
    (2) For purposes of this section, a qualifying interactive Internet 
site is an Internet site in existence as of the date of the enactment 
of this Act that is designed to provide to employees of local 
educational agencies and institutions of higher education participating 
in the Internet site--
            (A) systems for communicating;
            (B) resources for individual professional development;
            (C) resources to enhance individual on-the-job 
        effectiveness; and
            (D) resources to improve organizational effectiveness.
    (3) Participation in an Internet site by the Department of Defense 
for purposes of this section shall include--
            (A) funding;
            (B) assistance; and
            (C) access by other Internet site participants to 
        Department of Defense aptitude testing programs, career 
        development information, and other resources, in addition to 
        information on military recruiting and career opportunities.
    (c) Report.--The Secretary of Defense shall submit to the Committee 
on Armed Services of the Senate and the Committee on Armed Services of 
the House of Representatives a report providing the Secretary's 
findings and conclusions on the pilot program not later than 180 days 
after the end of the three-year program period.

                       Subtitle G--Other Matters

SEC. 571. EXTENSION TO END OF CALENDAR YEAR OF EXPIRATION DATE FOR 
              CERTAIN FORCE DRAWDOWN TRANSITION AUTHORITIES.

    (a) Early Retirement Authority for Active Force Members.--Section 
4403 of the National Defense Authorization Act for Fiscal Year 1993 (10 
U.S.C. 1293 note) is amended--
            (1) in subsection (a), by striking ``through fiscal year 
        1999'' and inserting ``during the active force drawdown 
        period''; and
            (2) in subsection (i), by striking ``October 1, 2001'' and 
        inserting ``December 31, 2001''.
    (b) SSB and VSI.--Sections 1174a(h)(1) and 1175(d)(3) of title 10, 
United States Code, are amended by striking ``September 30, 2001'' and 
inserting ``December 31, 2001''.
    (c) Selective Early Retirement Boards.--Section 638a(a) of such 
title is amended by striking ``September 30, 2001'' and inserting 
``December 31, 2001''.
    (d) Time-in-Grade Requirement for Retention of Grade Upon Voluntary 
Retirement.--Section 1370 of such title is amended by striking 
``September 30, 2001'' in subsections (a)(2)(A) and (d)(5) and 
inserting ``December 31, 2001''.
    (e) Minimum Commissioned Service for Voluntary Retirement as an 
Officer.--Sections 3911(b), 6323(a)(2), and 8911(b) of such title are 
amended by striking ``September 30, 2001'' and inserting ``December 31, 
2001''.
    (f) Travel, Transportation, and Storage Benefits.--Sections 
404(c)(1)(C), 404(f)(2)(B)(v), 406(a)(2)(B)(v), and 406(g)(1)(C) of 
title 37, United States Code, and section 503(c)(1) of the National 
Defense Authorization Act for Fiscal Year 1991 (37 U.S.C. 406 note) are 
amended by striking ``September 30, 2001'' and inserting ``December 31, 
2001''.
    (g) Educational Leave for Public and Community Service.--Section 
4463(f) of the National Defense Authorization Act for Fiscal Year 1993 
(10 U.S.C. 1143a note) is amended by striking ``September 30, 2001'' 
and inserting ``December 31, 2001''.
    (h) Transitional Health Benefits.--Subsections (a)(1), (c)(1), and 
(e) of section 1145 of title 10, United States Code, are amended by 
striking ``September 30, 2001'' and inserting ``December 31, 2001''.
    (i) Transitional Commissary and Exchange Benefits.--Section 1146 of 
such title is amended by striking ``September 30, 2001'' both places it 
appears and inserting ``December 31, 2001''.
    (j) Transitional Use of Military Housing.--Paragraphs (1) and (2) 
of section 1147(a) of such title are amended by striking ``September 
30, 2001'' and inserting ``December 31, 2001''.
    (k) Continued Enrollment of Dependents in Defense Dependents' 
Education System.--Section 1407(c)(1) of the Defense Dependents' 
Education Act of 1978 (20 U.S.C. 926(c)(1)) is amended by striking 
``September 30, 2001'' and inserting ``December 31, 2001''.
    (l) Force Reduction Transition Period Defined for Certain Guard and 
Reserve Benefits.--Section 4411 of the National Defense Authorization 
Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is amended by striking 
``September 30, 2001'' and inserting ``December 31, 2001''.
    (m) Temporary Special Authority for Force Reduction Period 
Retirements.--Section 4416(b)(1) of the National Defense Authorization 
Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is amended by striking 
``October 1, 2001'' and inserting ``the end of the force reduction 
period''.
    (n) Retired Pay for Non-Regular Service.--(1) Section 12731(f) of 
title 10, United States Code, is amended by striking ``September 30, 
2001'' and inserting ``December 31, 2001''.
    (2) Section 12731a of such title is amended--
            (A) in subsection (a)(1)(B), by striking ``October 1, 
        2001'' and inserting ``the end of the period described in 
        subsection (b)''; and
            (B) in subsection (b), by striking ``October 1, 2001'' and 
        inserting ``December 31, 2001''.
    (o) Affiliation With Guard and Reserve Units; Waiver of Certain 
Limitations.--Section 1150(a) of such title is amended by striking 
``September 30, 2001'' and inserting ``December 31, 2001''.
    (p) Reserve Montgomery GI Bill.--Section 16133(b)(1)(B) of such 
title is amended by striking ``September 30, 2001'' and inserting 
``December 31, 2001''.

SEC. 572. VOLUNTARY SEPARATION INCENTIVE.

    (a) Authority for Termination Upon Entitlement to Retired Pay.--
Section 1175(e)(3) of title 10, United States Code, is amended--
            (1) inserting ``(A)'' after ``(3)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) If a member is receiving simultaneous voluntary separation 
incentive payments and retired or retainer pay, the member may elect to 
terminate the receipt of voluntary separation incentive payments. Any 
such election is permanent and irrevocable. The rate of monthly 
recoupment from retired or retainer pay of voluntary separation 
incentive payments received after such an election shall be reduced by 
a percentage that is equal to a fraction with a denominator equal to 
the number of months that the voluntary separation incentive payments 
were scheduled to be paid and a numerator equal to the number of months 
that would not be paid as a result of the member's decision to 
terminate the voluntary separation incentive.''.
    (b) Effective Date.--Subparagraph (B) of section 1175(e)(3) of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to decisions by members to terminate voluntary separation 
incentive payments under section 1175 of title 10, United States Code, 
to be effective after September 30, 2000.

SEC. 573. CONGRESSIONAL REVIEW PERIOD FOR ASSIGNMENT OF WOMEN TO DUTY 
              ON SUBMARINES AND FOR ANY PROPOSED RECONFIGURATION OR 
              DESIGN OF SUBMARINES TO ACCOMMODATE FEMALE CREW MEMBERS.

    (a) In General.--(1) Chapter 555 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 6035. Female members: congressional review period for assignment 
              to duty on submarines or for reconfiguration of 
              submarines
    ``(a) No change in the Department of the Navy policy limiting 
service on submarines to males, as in effect on May 10, 2000, may take 
effect until--
            ``(1) the Secretary of Defense submits to Congress written 
        notice of the proposed change; and
            ``(2) a period of 30 days of continuous session of Congress 
        (excluding any day on which either House of Congress is not in 
        session) expires following the date on which the notice is 
        received.
    ``(b) No funds available to the Department of the Navy may be 
expended to reconfigure any existing submarine, or to design any new 
submarine, to accommodate female crew members until--
            ``(1) the Secretary of Defense submits to Congress written 
        notice of the proposed reconfiguration or design; and
            ``(2) a period of 30 days of continuous session of Congress 
        (excluding any day on which either House of Congress is not in 
        session) expires following the date on which the notice is 
        received.
    ``(c) For purposes of this section, the continuity of a session of 
Congress is broken only by an adjournment of the Congress sine die.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6035. Female members: congressional review period for assignment to 
                            duty on submarines or for reconfiguration 
                            of submarines.''.
    (b) Conforming Amendment.--Section 542(a)(1) of the National 
Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 113 note) is 
amended by inserting ``or by section 6035 of title 10, United States 
Code'' after ``Except in a case covered by subsection (b)''.

SEC. 574. MANAGEMENT AND PER DIEM REQUIREMENTS FOR MEMBERS SUBJECT TO 
              LENGTHY OR NUMEROUS DEPLOYMENTS.

    (a) Approving Authority for Lengthy Deployments of Members.--
Subsection (a) of section 991 of title 10, United States Code, is 
amended--
            (1) by striking ``unless an officer'' in the second 
        sentence of paragraph (1) and all that follows through the 
        period at the end of that sentence and inserting a period and 
        the following: ``However, the member may be deployed, or 
        continued in a deployment, without regard to the preceding 
        sentence if such deployment, or continued deployment, is 
        approved--
            ``(A) in the case of a member who is assigned to a 
        combatant command in a position under the operational control 
        of the officer in that combatant command who is the service 
        component commander for the members of that member's armed 
        force in that combatant command, by that officer; and
            ``(B) in the case of a member not assigned as described in 
        subparagraph (A), by the service chief of that member's armed 
        force (or, if so designated by that service chief, by an 
        officer of the same armed force on active duty who is in the 
        grade of general or admiral or who is the personnel chief for 
        that armed force).''; and
            (2) by adding at the end the following new paragraph:
    ``(3) In paragraph (1)(B), the term `service chief' means the Chief 
of Staff of the Army, the Chief of Naval Operations, the Chief of Staff 
of the Air Force, or the Commandant of the Marine Corps.''.
    (b) Clarification of Definition of Deployment.--Subsection (b) of 
such section is amended--
            (1) in paragraph (1), by inserting ``or homeport, as the 
        case may be'' before the period at the end;
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) In the case of a member of a reserve component performing 
active service, the member shall be considered deployed or in a 
deployment for the purposes of paragraph (1) on any day on which, 
pursuant to orders that do not establish a permanent change of station, 
the member is performing the active service at a location that--
            ``(A) is not the member's permanent training site; and
            ``(B) is--
                    ``(i) at least 100 miles from the member's 
                permanent residence; or
                    ``(ii) a lesser distance from the member's 
                permanent residence that, under the circumstances 
                applicable to the member's travel, is a distance that 
                requires at least three hours of travel to traverse.''; 
                and
            (4) in paragraph (3), as redesignated by paragraph (2) of 
        this subsection--
                    (A) by striking ``or'' at the end of subparagraph 
                (A);
                    (B) by striking the period at the end of 
                subparagraph (B) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
            ``(C) unavailable solely because of--
                    ``(i) a hospitalization of the member at the 
                member's permanent duty station or homeport or in the 
                immediate vicinity of the member's permanent residence; 
                or
                    ``(ii) a disciplinary action taken against the 
                member.''.
    (c) Associated Per Diem Allowance.--Section 435 of title 37, United 
States Code (as added to that title effective October 1, 2001, by 
section 586(b) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 638)) is amended--
            (1) in subsection (a), by striking ``251 days or more out 
        of the preceding 365 days'' and inserting ``401 or more days 
        out of the preceding 730 days''; and
            (2) in subsection (b), by striking ``prescribed under 
        paragraph (3)'' and inserting ``prescribed under paragraph 
        (4)''.
    (d) Review of Management of Deployments of Individual Members.-- 
Not later than March 31, 2002, the Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives a report on the administration of section 991 of title 
10, United States Code, during fiscal year 2001. The report shall 
include--
            (1) a discussion of the experience in tracking and 
        recording the deployments of members of the Armed Forces; and
            (2) any recommendations for revision of such section that 
        the Secretary considers appropriate.
    (e) Effective Date.--If this Act is enacted before October 1, 2000, 
the amendments made by subsections (a) and (b) shall take effect on 
October 1, 2000, immediately after the amendment made by section 586(a) 
of the National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65; 113 Stat. 637) adding section 991 of title 10, United 
States Code, to such title.

SEC. 575. PAY IN LIEU OF ALLOWANCE FOR FUNERAL HONORS DUTY.

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

SEC. 576. TEST OF ABILITY OF RESERVE COMPONENT INTELLIGENCE UNITS AND 
              PERSONNEL TO MEET CURRENT AND EMERGING DEFENSE 
              INTELLIGENCE NEEDS.

    (a) Test Program Required.--(1) Beginning not later than June 1, 
2001, the Secretary of Defense shall conduct a three-year test program 
of reserve component intelligence units and personnel. The purpose of 
the test program shall be--
            (A) to determine the most effective peacetime structure and 
        operational employment of reserve component intelligence assets 
        for meeting current and future Department of Defense peacetime 
        operational intelligence requirements; and
            (B) to establish a means to coordinate and transition that 
        peacetime intelligence operational support network into use for 
        meeting wartime requirements.
    (2) The test program shall be carried out using the Joint Reserve 
Intelligence Program and appropriate reserve component intelligence 
units and personnel.
    (3) In conducting the test program, the Secretary of Defense shall 
expand the current Joint Reserve Intelligence Program as needed to meet 
the objectives of the test program.
    (b) Oversight Panel.--The Secretary shall establish an oversight 
panel to structure the test program so as to achieve the objectives of 
the test program, ensure proper funding for the test program, and 
oversee the conduct and evaluation of the test program. The panel 
members shall include--
            (1) the Assistant Secretary of Defense for Command, 
        Control, Communications and Intelligence;
            (2) the Assistant Secretary of Defense for Reserve Affairs; 
        and
            (3) representatives from the Defense Intelligence Agency, 
        the Army, Navy, Air Force, and Marine Corps, the Joint Staff, 
        and the combatant commands.
    (c) Test Program Objectives.--The test program shall have the 
following objectives:
            (1) To identify the range of peacetime roles and missions 
        that are appropriate for reserve component intelligence units 
        and personnel, including the following missions: counterdrug, 
        counterintelligence, counterterrorism, information operations, 
        information warfare, and other emerging threats.
            (2) To recommend a process for justifying and validating 
        reserve component intelligence force structure and manpower to 
        support the peacetime roles and missions identified under 
        paragraph (1) and to establish a means to coordinate and 
        transition that peacetime operational support network and 
        structure into wartime requirements.
            (3) To provide, pursuant to paragraphs (1) and (2), the 
        basis for new or revised intelligence and reserve component 
        policy guidelines for the peacetime use, organization, 
        management, infrastructure ,and funding of reserve component 
        intelligence units and personnel.
            (4) To determine the most effective structure, 
        organization, manning, and management of Joint Reserve 
        Intelligence Centers to enable them to be both reserve training 
        facilities and virtual collaborative production facilities in 
        support of Department of Defense peacetime operational 
        intelligence requirements.
            (5) To determine the most effective uses of technology for 
        virtual collaborative intelligence operational support during 
        peacetime and wartime.
            (6) To determine personnel and career management 
        initiatives or modifications that are required to improve the 
        recruiting and retention of personnel in the reserve component 
        intelligence specialties and occupational skills.
            (7) To identify and make recommendations for the 
        elimination of statutory prohibitions and barriers to using 
        reserve component intelligence units and individuals to carry 
        out peacetime operational requirements.
    (d) Reports.--The Secretary of Defense shall submit to Congress--
            (1) interim reports on the status of the test program not 
        later than July 1, 2002, and July 1, 2003; and
            (2) a final report, with such recommendations for changes 
        as the Secretary considers necessary, not later than December 
        1, 2004.

SEC. 577. NATIONAL GUARD CHALLENGE PROGRAM.

    (a) Responsibility of Secretary of Defense.--Subsection (a) of 
section 509 of title 32, United States Code, is amended by striking ``, 
acting through the Chief of the National Guard Bureau,''.
    (b) Sources of Federal Support.--Subsection (b) of such section is 
amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense'';
            (2) by striking ``, except that Federal expenditures under 
        the program may not exceed $62,500,000 for any fiscal year''; 
        and
            (3) by adding at the end the following new paragraphs:
    ``(2) The Secretary shall carry out the National Guard Challenge 
Program using--
            ``(A) funds appropriated directly to the Secretary of 
        Defense for the program, except that the amount of funds 
        appropriated directly to the Secretary and expended for the 
        program in a fiscal year may not exceed $62,500,000; and
            ``(B) nondefense funds made available or transferred to the 
        Secretary of Defense by other Federal agencies to support the 
        program.
    ``(3) Federal funds made available or transferred to the Secretary 
of Defense under paragraph (2)(B) by other Federal agencies to support 
the National Guard Challenge Program may be expended for the program in 
excess of the fiscal year limitation specified in paragraph (2)(A).''.
    (c) Regulations.--Such section is further amended by adding at the 
end the following new subsection:
    ``(m) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out the National Guard Challenge Program. The 
regulations shall address at a minimum the following:
            ``(1) The terms to be included in the program agreements 
        required by subsection (c).
            ``(2) The qualifications for persons to participate in the 
        program, as required by subsection (e).
            ``(3) The benefits authorized for program participants, as 
        required by subsection (f).
            ``(4) The status of National Guard personnel assigned to 
        duty in support of the program under subsection (g).
            ``(5) The conditions for the use of National Guard 
        facilities and equipment to carry out the program, as required 
        by subsection (h).
            ``(6) The status of program participants, as described in 
        subsection (i).
            ``(7) The procedures to be used by the Secretary when 
        communicating with States about the program.''.
    (d) Conforming Amendment.--Section 2033 of title 10, United States 
Code, is amended by striking ``appropriated for'' and inserting 
``appropriated directly to the Secretary of Defense for''.

SEC. 578. STUDY OF USE OF CIVILIAN CONTRACTOR PILOTS FOR OPERATIONAL 
              SUPPORT MISSIONS.

    (a) Study.--The Secretary of Defense shall conduct a study to 
determine the feasibility and cost, as well as the advantages and 
disadvantages, of using civilian contractor personnel as pilots and 
other air crew members to fly nonmilitary Government aircraft (referred 
to as ``operational support aircraft'') to perform non-combat personnel 
transportation missions worldwide. In carrying out the study, the 
Secretary shall consider the views and recommendations of the Chairman 
of the Joint Chiefs and the other members of the Joint Chiefs of Staff.
    (b) Matters to Be Included.--The study shall, as a minimum--
            (1) determine whether use of civilian contractor personnel 
        as pilots and other air crew members for such operational 
        support missions would be a cost effective means of freeing for 
        duty in units with combat and combat support missions those 
        military pilots and other personnel who now perform such 
        operational support missions; and
            (2) the effect on retention of military pilots and other 
        personnel if they are no longer required to fly operational 
        support missions.
    (c) Submission of Report.--The Secretary shall submit a report 
containing the results of the study to the Committee on Armed Services 
of the Senate and the Committee on Armed Services of the House of 
Representatives not later than six months after the date of the 
enactment of this Act.

SEC. 579. REIMBURSEMENT FOR EXPENSES INCURRED BY MEMBERS IN CONNECTION 
              WITH CANCELLATION OF LEAVE ON SHORT NOTICE.

    (a) Reimbursement Authorized.--Chapter 53 of title 10, United 
States Code, is amended by inserting after section 1053 the following 
new section:
``Sec. 1053a. Expenses incurred in connection with leave canceled due 
              to contingency operations: reimbursement
    ``(a) Authorization To Reimburse.--The Secretary concerned may 
reimburse a member of the armed forces under the jurisdiction of the 
Secretary for travel and related expenses (to the extent not otherwise 
reimbursable under law) incurred by the member as a result of the 
cancellation of previously approved leave when the leave is canceled in 
connection with the member's participation in a contingency operation 
and the cancellation occurs within 48 hours of the time the leave would 
have commenced.
    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations to establish the criteria for the applicability of 
subsection (a).
    ``(c) Conclusiveness of Settlement.--The settlement of an 
application for reimbursement under subsection (a) is final and 
conclusive.''.
    (b) Effective Date.--Section 1053a of title 10, United States Code, 
as added by subsection (a) shall apply with respect to any travel and 
related expenses incurred by a member in connection with leave canceled 
after the date of the enactment of this Act.
    (c) Conforming and Clerical Amendments.--(1) The heading of section 
1052 of such title is amended to read as follows:
``Sec. 1052. Adoption expenses: reimbursement''.
    (2) The heading of section 1053 of such title is amended to read as 
follows:
``Sec. 1053. Financial institution charges incurred because of 
              Government error in direct deposit of pay: 
              reimbursement''.
    (3) The table of sections at the beginning of chapter 53 of such 
title is amended by striking the items relating to sections 1052 and 
1053 and inserting the following:

``1052. Adoption expenses: reimbursement.
``1053. Financial institution charges incurred because of Government 
                            error in direct deposit of pay: 
                            reimbursement.
``1053a. Expenses incurred in connection with leave canceled due to 
                            contingency operations: reimbursement.''.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2001.
Sec. 602. Additional restructuring of basic pay rates for enlisted 
                            members.
Sec. 603. Revised method for calculation of basic allowance for 
                            subsistence.
Sec. 604. Family subsistence supplemental allowance for low-income 
                            members of the Armed Forces.
Sec. 605. Basic allowance for housing.
Sec. 606. Additional amount available for fiscal year 2001 increase in 
                            basic allowance for housing inside the 
                            United States.
Sec. 607. Equitable treatment of junior enlisted members in computation 
                            of basic allowance for housing.
Sec. 608. Eligibility of members in grade E-4 to receive basic 
                            allowance for housing while on sea duty.
Sec. 609. Personal money allowance for senior enlisted members of the 
                            Armed Forces.
Sec. 610. Increased uniform allowances for officers.
Sec. 611. Cabinet-level authority to prescribe requirements and 
                            allowance for clothing of enlisted members.
Sec. 612. Increase in monthly subsistence allowance for members of 
                            precommissioning programs.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 621. Extension of certain bonuses and special pay authorities for 
                            reserve forces.
Sec. 622. Extension of certain bonuses and special pay authorities for 
                            nurse officer candidates, registered 
                            nurses, and nurse anesthetists.
Sec. 623. Extension of authorities relating to payment of other bonuses 
                            and special pays.
Sec. 624. Revision of enlistment bonus authority.
Sec. 625. Consistency of authorities for special pay for reserve 
                            medical and dental officers.
Sec. 626. Elimination of required congressional notification before 
                            implementation of certain special pay 
                            authority.
Sec. 627. Special pay for physician assistants of the Coast Guard.
Sec. 628. Authorization of special pay and accession bonus for pharmacy 
                            officers.
Sec. 629. Correction of references to Air Force veterinarians.
Sec. 630. Career sea pay.
Sec. 631. Increased maximum rate of special duty assignment pay.
Sec. 632. Entitlement of members of the National Guard and other 
                            reserves not on active duty to receive 
                            special duty assignment pay.
Sec. 633. Authorization of retention bonus for members of the Armed 
                            Forces qualified in a critical military 
                            skill.
Sec. 634. Entitlement of active duty officers of the Public Health 
                            Service Corps to special pays and bonuses 
                            of health professional officers of the 
                            Armed Forces.
            Subtitle C--Travel and Transportation Allowances

Sec. 641. Advance payments for temporary lodging of members and 
                            dependents.
Sec. 642. Additional transportation allowance regarding baggage and 
                            household effects.
Sec. 643. Incentive for shipping and storing household goods in less 
                            than average weights.
Sec. 644. Equitable dislocation allowances for junior enlisted members.
Sec. 645. Authority to reimburse military recruiters, Senior ROTC 
                            cadre, and military entrance processing 
                            personnel for certain parking expenses.
Sec. 646. Expansion of funded student travel for dependents.
          Subtitle D--Retirement and Survivor Benefit Matters

Sec. 651. Exception to high-36 month retired pay computation for 
                            members retired following a disciplinary 
                            reduction in grade.
Sec. 652. Increase in maximum number of Reserve retirement points that 
                            may be credited in any year.
Sec. 653. Retirement from active reserve service after regular 
                            retirement.
Sec. 654. Same treatment for Federal judges as for other Federal 
                            officials regarding payment of military 
                            retired pay.
Sec. 655. Reserve component Survivor Benefit Plan spousal consent 
                            requirement.
Sec. 656. Sense of Congress on increasing Survivor Benefit Plan 
                            annuities for surviving spouses age 62 or 
                            older.
Sec. 657. Revision to special compensation authority to repeal 
                            exclusion of uniformed services retirees in 
                            receipt of disability retired pay.
                       Subtitle E--Other Matters

Sec. 661. Participation in Thrift Savings Plan.
Sec. 662. Determinations of income eligibility for special supplemental 
                            food program.
Sec. 663. Billeting services for reserve members traveling for 
                            inactive-duty training.
Sec. 664. Settlement of claims for payments for unused accrued leave 
                            and for retired pay.
Sec. 665. Additional benefits and protections for personnel incurring 
                            injury, illness, or disease in the 
                            performance of funeral honors duty.
Sec. 666. Authority for extension of deadline for filing claims 
                            associated with capture and internment of 
                            certain persons by North Vietnam.
Sec. 667. Back pay for members of the Navy and Marine Corps selected 
                            for promotion while interned as prisoners 
                            of war during World War II.
Sec. 668. Sense of Congress concerning funding for reserve components.

                     Subtitle A--Pay and Allowances

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

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

SEC. 602. ADDITIONAL RESTRUCTURING OF BASIC PAY RATES FOR ENLISTED 
              MEMBERS.

    (a) Minimum Pay Increases for Mid-Level Enlisted Grades.--(1) 
Subject to paragraph (2), effective on July 1, 2001, the rates of 
monthly basic pay for enlisted members of the Armed Forces in the pay 
grades E-7, E-6, and E-5 shall be as follows:
        

                            ENLISTED MEMBERS
 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-7..............   1,831.20   1,999.20   2,075.10   2,149.80   2,228.10
E-6..............   1,575.00   1,740.30   1,817.40   1,891.80   1,969.80
E-5..............   1,381.80   1,549.20   1,623.90   1,701.00   1,779.30
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-7..............   2,362.20   2,437.80   2,512.80   2,588.10   2,666.10
E-6..............   2,097.30   2,174.10   2,248.80   2,325.00   2,379.60
E-5..............   1,888.50   1,962.90   2,040.30   2,040.30   2,040.30
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-7..............   2,742.00   2,817.90   2,949.60   3,034.80   3,250.50
E-6..............   2,421.30   2,421.30   2,421.30   2,421.30   2,421.30
E-5..............   2,040.30   2,040.30   2,040.30   2,040.30   2,040.30
------------------------------------------------------------------------

    (2) The amounts specified in the table in paragraph (1) are subject 
to such revision as the Secretary of Defense and the Secretary of 
Transportation may prescribe under subsection (b)(1)(A).
    (b) Secretarial Authority to Further Revise.--(1) To ensure the 
efficient and effective operation of the military pay system, the 
Secretary of Defense, and the Secretary of Transportation with regard 
to the Coast Guard, may--
            (A) further increase any of the amounts specified in the 
        table in subsection (a) for enlisted members of the Armed 
        Forces in the pay grades E-7, E-6, and E-5; and
            (B) increase any of the amounts specified for other 
        enlisted members in the table under the heading ``ENLISTED 
        MEMBERS'' in section 601(c) of the National Defense 
        Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 
        Stat. 648), as adjusted on January 1, 2001, pursuant to section 
        601(b) of this Act.
    (2) The revisions in monthly basic pay made by the Secretary of 
Defense and the Secretary of Transportation under paragraph (1) shall 
take effect on July 1, 2001, but only if the Secretaries also comply 
with paragraph (3).
    (3) If the Secretary of Defense or the Secretary of Transportation 
exercises the authority provided by paragraph (1), the Secretaries 
shall include, in the budget justification materials submitted to 
Congress in support of the President's budget submitted under section 
1105 of title 31, United States Code, for fiscal year 2002--
            (A) a revised pay table for enlisted members of the Armed 
        Forces to reflect the increases in monthly basic pay to take 
        effect on July 1, 2001; and
            (B) a description of the various increases made and the 
        reasons therefor.

SEC. 603. REVISED METHOD FOR CALCULATION OF BASIC ALLOWANCE FOR 
              SUBSISTENCE.

    (a) Annual Revision of Rate.--Subsection (b) of section 402 of 
title 37, United States Code, is amended--
            (1) in paragraph (1), by striking ``The monthly rate'' and 
        inserting ``Through December 31, 2001, the monthly rate'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following new 
        paragraph:
    ``(2) On and after January 1, 2002, the monthly rate of basic 
allowance for subsistence to be in effect for an enlisted member for a 
year (beginning on January 1 of that year) shall be equal to the sum 
of--
            ``(A) the monthly rate of basic allowance for subsistence 
        that was in effect for an enlisted member for the preceding 
        year; plus
            ``(B) the product of the monthly rate under subparagraph 
        (A) and the percentage increase in the monthly cost of a 
        liberal food plan for a male in the United States who is 
        between 20 and 50 years of age over the preceding fiscal year, 
        as determined by the Secretary of Agriculture each October 
        1.''.
    (b) Conforming Amendment.--Subsection (d)(1) of such section is 
amended by striking ``established under subsection (b)(1)'' and 
inserting ``in effect under paragraph (1) or (2) of subsection (b)''.
    (c) Early Termination of BAS Transitional Authority.--Effective 
October 1, 2001, subsections (c) through (f) of section 602 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 37 U.S.C. 402 note) are repealed.

SEC. 604. FAMILY SUBSISTENCE SUPPLEMENTAL ALLOWANCE FOR LOW-INCOME 
              MEMBERS OF THE ARMED FORCES.

    (a) Supplemental Allowance Required.--(1) Chapter 7 of title 37, 
United States Code, is amended by inserting after section 402 the 
following new section:
``Sec. 402a. Supplemental subsistence allowance for low-income members 
              with dependents
    ``(a) Supplemental Allowance Required.--(1) The Secretary concerned 
shall increase the basic allowance for subsistence to which a member of 
the armed forces described in subsection (b) is otherwise entitled 
under section 402 of this title by an amount (in this section referred 
to as the `supplemental subsistence allowance') designed to remove the 
member's household from eligibility for benefits under the food stamp 
program.
    ``(2) The supplemental subsistence allowance may not exceed $500 
per month. In establishing the amount of the supplemental subsistence 
allowance to be paid an eligible member under this paragraph, the 
Secretary shall take into consideration the amount of the basic 
allowance for housing that the member receives under section 403 of 
this title or would otherwise receive under such section, in the case 
of a member who is not entitled to that allowance as a result of 
assignment to quarters of the United States or a housing facility under 
the jurisdiction of a uniformed service.
    ``(3) In the case of a member described in subsection (b) who 
establishes to the satisfaction of the Secretary concerned that the 
allotment of the member's household under the food stamp program, 
calculated in the absence of the supplemental subsistence allowance, 
would exceed the amount established by the Secretary concerned under 
paragraph (2), the amount of the supplemental subsistence allowance for 
the member shall be equal to the lesser of the following:
            ``(A) The value of that allotment.
            ``(B) $500.
    ``(b) Members Entitled to Allowance.--(1) Subject to subsection 
(d), a member of the armed forces is entitled to receive the 
supplemental subsistence allowance if the Secretary concerned 
determines that the member's income, together with the income of the 
rest of the member's household (if any), is within the highest income 
standard of eligibility, as then in effect under section 5(c) of the 
Food Stamp Act of 1977 (7 U.S.C. 2014(c)) and without regard to 
paragraph (1) of such section, for participation in the food stamp 
program.
    ``(2) In determining whether a member meets the eligibility 
criteria under paragraph (1), the Secretary--
            ``(A) shall not take into consideration the amount of the 
        supplemental subsistence allowance payable under this section; 
        but
            ``(B) shall take into consideration the amount of the basic 
        allowance for housing that the member receives under section 
        403 of this title or would otherwise receive under such 
        section, in the case of a member who is not entitled to that 
        allowance as a result of assignment to quarters of the United 
        States or a housing facility under the jurisdiction of a 
        uniformed service.
    ``(c) Application for Allowance.--To request the supplemental 
subsistence allowance, a member shall submit an application to the 
Secretary concerned in such form and containing such information as the 
Secretary concerned may prescribe. A member applying for the 
supplemental subsistence allowance shall furnish such evidence 
regarding the member's satisfaction of the eligibility criteria under 
subsection (b) as the Secretary concerned may require.
    ``(d) Effective Period.--The entitlement of a member to receive the 
supplemental subsistence allowance terminates upon the occurrence of 
any of the following events, even though the member continues to meet 
the eligibility criteria described in subsection (b):
            ``(1) Payment of the supplemental subsistence allowance for 
        12 consecutive months.
            ``(2) Promotion of the member to a higher grade.
            ``(3) Transfer of the member in a permanent change of 
        station.
    ``(e) Reapplication.--Upon the termination of the effective period 
of the supplemental subsistence allowance for a member, or in 
anticipation of the imminent termination of the allowance, a member may 
reapply for the allowance under subsection (c), and the Secretary 
concerned shall approve the application and resume payment of the 
allowance to the member, if the member continues to meet, or once again 
meets, the eligibility criteria described in subsection (b).
    ``(f) Reporting Requirement.--Not later than March 1 of each year 
after 2001, the Secretary of Defense shall submit to Congress a report 
specifying the number of members of the armed forces who received, at 
any time during the preceding year, the supplemental subsistence 
allowance. In preparing the report, the Secretary of Defense shall 
consult with the Secretary of Transportation. No report is required 
under this subsection after March 1, 2006.
    ``(g) Definitions.--In this section:
            ``(1) The term `Secretary concerned' means--
                    ``(A) the Secretary of Defense; and
                    ``(B) the Secretary of Transportation, with respect 
                to the Coast Guard when it is not operating as a 
                service in the Navy.
            ``(2) The terms `allotment' and `household' have the 
        meanings given those terms in section 3 of the Food Stamp Act 
        of 1977 (7 U.S.C. 2012).
            ``(3) The term `food stamp program' means the program 
        established pursuant to section 4 of the Food Stamp Act of 1977 
        (7 U.S.C. 2013).
    ``(h) Termination of Authority.--No supplemental subsistence 
allowance may be provided under this section after September 30, 
2006.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 402 the 
following:

``402a. Supplemental subsistence allowance for low-income members with 
                            dependents.''.
    (b) Effective Date.--Section 402a of title 37, United States Code, 
as added by subsection (a), shall take effect on the first day of the 
first month that begins not less than 180 days after the date of the 
enactment of this Act.

SEC. 605. BASIC ALLOWANCE FOR HOUSING.

    (a) Calculation of Rates.--Subsection (b) of section 403 of title 
37, United States Code, is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraph (1) as paragraph (2); and
            (3) by inserting after the subsection heading the 
        following: ``(1) The Secretary of Defense shall prescribe the 
        rates of the basic allowance for housing that are applicable 
        for the various military housing areas in the United States. 
        The rates for an area shall be based on the costs of adequate 
        housing determined for the area under paragraph (2).''.
    (b) Minimum Annual Amount Available for Housing Allowances.--
Subsection (b) of such section is further amended--
            (1) by striking paragraphs (3) and (5); and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
    ``(3) The total amount that may be paid for a fiscal year for the 
basic allowance for housing under this subsection may not be less than 
the product of--
            ``(A) the total amount authorized to be paid for such 
        allowance for the preceding fiscal year; and
            ``(B) a fraction--
                    ``(i) the numerator of which is the index of the 
                national average monthly cost of housing for June of 
                the preceding fiscal year; and
                    ``(ii) the denominator of which is the index of the 
                national average monthly cost of housing for June of 
                the second preceding fiscal year.''.
    (c) Limitations on Reduction in Member's Allowance.--(1) Paragraph 
(6) of such subsection is amended by striking ``, changes in the 
national average monthly cost of housing,''.
    (2) Paragraph (7) of such subsection is amended by striking 
``without dependents''.
    (d) Allowance When Dependents Are Unable To Accompany Members.--
Subsection (d) of such section is amended by striking paragraph (3) and 
inserting the following new paragraph:
    ``(3) If a member with dependents is assigned to duty in an area 
that is different from the area in which the member's dependents 
reside, the member is entitled to a basic allowance for housing as 
provided in subsection (b) or (c), whichever applies to the member, 
subject to the following:
            ``(A) If the member's assignment to duty in that area, or 
        the circumstances of that assignment, require the member's 
        dependents to reside in a different area, as determined by the 
        Secretary concerned, the amount of the basic allowance for 
        housing for the member shall be based on the area in which the 
        dependents reside or the member's last duty station, whichever 
        the Secretary concerned determines to be most equitable.
            ``(B) If the member's assignment to duty in that area is 
        under the conditions of a low-cost or no-cost permanent change 
        of station or permanent change of assignment, the amount of the 
        basic allowance for housing for the member shall be based on 
        the member's last duty station if the Secretary concerned 
        determines that it would be inequitable to base the allowance 
        on the cost of housing in the area to which the member is 
        reassigned.''.
    (e) Extension of Transition Period.--Section 603(b) of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 37 
U.S.C. 403 note) is amended by striking ``six years'' and inserting 
``eight years''.
    (f) Effective Date; Application.--(1) The amendments made by this 
section shall take effect on October 1, 2000.
    (2) In the case of the amendment made by subsection (c)(2), the 
amendment shall apply with respect to pay periods beginning on and 
after October 1, 2000, for a member of the uniformed services covered 
by the provision of law so amended regardless of the date on which the 
member was first reassigned to duty under the conditions of a low-cost 
or no-cost permanent change of station or permanent change of 
assignment.
    (3) In the case of the amendment made by subsection (d), the 
amendment shall apply with respect to pay periods beginning on and 
after October 1, 2000, for a member of the uniformed services covered 
by the provision of law so amended regardless of the date on which the 
member was first assigned to duty in an area that is different from the 
area in which the member's dependents reside.

SEC. 606. ADDITIONAL AMOUNT AVAILABLE FOR FISCAL YEAR 2001 INCREASE IN 
              BASIC ALLOWANCE FOR HOUSING INSIDE THE UNITED STATES.

    In addition to the amount determined by the Secretary of Defense 
under section 403(b)(3) of title 37, United States Code, as amended by 
section 605(b), to be the total amount to be paid during fiscal year 
2001 for the basic allowance for housing for military housing areas 
inside the United States, $30,000,000 of the amount authorized to be 
appropriated by section 421 for military personnel shall be used by the 
Secretary to further increase the total amount available for the basic 
allowance for housing for military housing areas inside the United 
States.

SEC. 607. EQUITABLE TREATMENT OF JUNIOR ENLISTED MEMBERS IN COMPUTATION 
              OF BASIC ALLOWANCE FOR HOUSING.

    (a) Determination of Costs of Adequate Housing.--Paragraph (2) of 
subsection (b) of section 403 of title 37, United States Code, as 
redesignated by section 605(a)(2), is amended by adding at the end the 
following new sentence: ``After June 30, 2001, the Secretary may not 
differentiate between members with dependents in pay grades E-1 through 
E-4 in determining what constitutes adequate housing for members.''.
    (b) Single Rate; Minimum.--Subsection (b) of such section, as 
amended by section 605(b)(1), is amended by inserting after paragraph 
(4) the following new paragraph:
    ``(5) On and after July 1, 2001, the Secretary of Defense shall 
establish a single monthly rate for members of the uniformed services 
with dependents in pay grades E-1 through E-4 in the same military 
housing area. The rate shall be consistent with the rates paid to 
members in pay grades other than pay grades E-1 through E-4 and shall 
be based on the following:
            ``(A) The average cost of a two-bedroom apartment in that 
        military housing area.
            ``(B) One-half of the difference between the average cost 
        of a two-bedroom townhouse in that area and the amount 
        determined in subparagraph (A).''.

SEC. 608. ELIGIBILITY OF MEMBERS IN GRADE E-4 TO RECEIVE BASIC 
              ALLOWANCE FOR HOUSING WHILE ON SEA DUTY.

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

SEC. 609. PERSONAL MONEY ALLOWANCE FOR SENIOR ENLISTED MEMBERS OF THE 
              ARMED FORCES.

    (a) Authority.--Section 414 of title 37, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) Allowance for Senior Enlisted Members.--In addition to other 
pay or allowances authorized by this title, a noncommissioned officer 
is entitled to a personal money allowance of $2,000 a year while 
serving as the Sergeant Major of the Army, the Master Chief Petty 
Officer of the Navy, the Chief Master Sergeant of the Air Force, the 
Sergeant Major of the Marine Corps, or the Master Chief Petty Officer 
of the Coast Guard.''.
    (b) Stylistic Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Allowance for 
        Officers Serving in Certain Ranks or Positions.--'' after 
        ``(a)''; and
            (2) in subsection (b), by inserting ``Allowance for Certain 
        Naval Officers.--'' after ``(b)''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2000.

SEC. 610. INCREASED UNIFORM ALLOWANCES FOR OFFICERS.

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

SEC. 611. CABINET-LEVEL AUTHORITY TO PRESCRIBE REQUIREMENTS AND 
              ALLOWANCE FOR CLOTHING OF ENLISTED MEMBERS.

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

SEC. 612. INCREASE IN MONTHLY SUBSISTENCE ALLOWANCE FOR MEMBERS OF 
              PRECOMMISSIONING PROGRAMS.

    (a) Pay Rates for Cadets and Midshipmen.--Section 203(c) of title 
37, United States Code, is amended by striking ``at the rate of 
$600.00.'' and inserting ``at the monthly rate equal to 35 percent of 
the basic pay of a commissioned officer in the pay grade O-1 with less 
than two years of service.''.
    (b) Subsistence Allowance Rates.--Subsection (a) of section 209 of 
such title is amended--
            (1) by inserting ``(1)'' before ``Except'';
            (2) by striking ``subsistence allowance of $200 a month'' 
        and inserting ``monthly subsistence allowance at a rate 
        prescribed under paragraph (2)'';
            (3) by striking ``Subsistence'' and inserting the 
        following:
    ``(3) A subsistence''; and
            (4) by inserting after the first sentence the following:
    ``(2) The Secretary of Defense shall prescribe by regulation the 
monthly rates for subsistence allowances provided under this section. 
The rate may not be less than $250 per month, but may not exceed $674 
per month.''.
    (c) Conforming and Stylistic Amendments.--Section 209 of such title 
is further amended--
            (1) in subsection (a), by inserting ``Senior ROTC Members 
        in Advanced Training.--'' after ``(a)'';
            (2) in subsection (b)--
                    (A) by inserting ``Senior ROTC Members Appointed in 
                Reserves.--'' after ``(b)''; and
                    (B) by striking ``in the amount provided in 
                subsection (a)'' and inserting ``at a rate prescribed 
                under subsection (a)'';
            (3) in subsection (c), by inserting ``Pay While Attending 
        Training or Practice Cruise.--'' after ``(c)'' the first place 
        it appears; and
            (4) in subsection (d)--
                    (A) by inserting ``Members of Marine Corps Officer 
                Candidate Program.--'' after ``(d)''; and
                    (B) by striking ``the same rate as that prescribed 
                by subsection (a),'' and inserting ``a monthly rate 
                prescribed under subsection (a)''.
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect October 1, 2001.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 621. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR 
              RESERVE FORCES.

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

SEC. 622. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR 
              NURSE OFFICER CANDIDATES, REGISTERED NURSES, AND NURSE 
              ANESTHETISTS.

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

SEC. 623. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES 
              AND SPECIAL PAYS.

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

SEC. 624. REVISION OF ENLISTMENT BONUS AUTHORITY.

    (a) Bonus Authorized.--(1) Title 37, United States Code, is amended 
by inserting after section 308i the following new section:
``Sec. 309. Special pay: enlistment bonus
    ``(a) Bonus Authorized; Bonus Amount.--A person who enlists in an 
armed force for a period of at least 2 years may be paid a bonus in an 
amount not to exceed $20,000. The bonus may be paid in a single lump 
sum or in periodic installments.
    ``(b) Repayment of Bonus.--(1) A member of the armed forces who 
voluntarily, or because of the member's misconduct, does not complete 
the term of enlistment for which a bonus was paid under this section, 
or a member who is not technically qualified in the skill for which the 
bonus was paid, if any (other than a member who is not qualified 
because of injury, illness, or other impairment not the result of the 
member's misconduct), shall refund to the United States that percentage 
of the bonus that the unexpired part of member's enlistment is of the 
total enlistment period for which the bonus was paid.
    ``(2) An obligation to reimburse the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of an enlistment for which a bonus 
was paid under this section does not discharge the person receiving the 
bonus from the debt arising under paragraph (1).
    ``(c) Relation to Prohibition on Bounties.--The enlistment bonus 
authorized by this section is not a bounty for purposes of section 
514(a) of title 10.
    ``(d) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense for the armed forces 
under the jurisdiction of the Secretary of Defense and by the Secretary 
of Transportation for the Coast Guard when the Coast Guard is not 
operating as a service in the Navy.
    ``(e) Duration of Authority.--No bonus shall be paid under this 
section with respect to any enlistment in the armed forces made after 
December 31, 2001.''.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended by inserting after the item relating to section 308i 
the following new item:

``309. Special pay: enlistment bonus.''.
    (b) Repeal of Superseded Enlistment Bonus Authorities.--(1) 
Sections 308a and 308f of title 37, United States Code, are repealed.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended by striking the items relating to such sections.
    (c) Effective Date.--(1) The amendments made by subsection (a) 
shall take effect on October 1, 2000, and apply with respect to 
enlistments in the Armed Forces made on or after that date.
    (2) The amendments made by subsection (b) shall take effect on 
October 1, 2000. The repeal of sections 308a and 308f of title 37, 
United States Code, by such subsection shall not affect the validity or 
terms of any bonus provided under such sections for enlistments in the 
Armed Forces made before that date.

SEC. 625. CONSISTENCY OF AUTHORITIES FOR SPECIAL PAY FOR RESERVE 
              MEDICAL AND DENTAL OFFICERS.

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

SEC. 626. ELIMINATION OF REQUIRED CONGRESSIONAL NOTIFICATION BEFORE 
              IMPLEMENTATION OF CERTAIN SPECIAL PAY AUTHORITY.

    (a) Retention Special Pay for Optometrists.--(1) Section 302a(b)(1) 
of title 37, United States Code, is amended by striking ``an officer 
described in paragraph (2) may be paid'' and inserting ``the Secretary 
concerned may pay an officer described in paragraph (2) a''.
    (2) Section 617 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 302a note) is amended 
by striking subsection (b).
    (b) Special Pay for Officers in Nursing Specialties.--(1) Section 
302e(b)(2)(A) of title 37, United States Code, is amended by striking 
``the Secretary'' and inserting ``the Secretary of the military 
department concerned''.
    (2) Section 614 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 302e note) is amended 
by striking subsection (c).

SEC. 627. SPECIAL PAY FOR PHYSICIAN ASSISTANTS OF THE COAST GUARD.

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

SEC. 628. AUTHORIZATION OF SPECIAL PAY AND ACCESSION BONUS FOR PHARMACY 
              OFFICERS.

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

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

SEC. 629. CORRECTION OF REFERENCES TO AIR FORCE VETERINARIANS.

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

SEC. 630. CAREER SEA PAY.

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

SEC. 631. INCREASED MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT PAY.

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

SEC. 632. ENTITLEMENT OF MEMBERS OF THE NATIONAL GUARD AND OTHER 
              RESERVES NOT ON ACTIVE DUTY TO RECEIVE SPECIAL DUTY 
              ASSIGNMENT PAY.

    (a) Authority.--Section 307 of title 37, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d)(1) Under regulations prescribed by the Secretary concerned 
and to the extent provided for by appropriations, when an enlisted 
member of the National Guard or a reserve component of a uniformed 
service who is entitled to compensation under section 206 of this title 
performs duty for which a member described in subsection (a) is 
entitled to special pay under such subsection, the member of the 
National Guard or reserve component is entitled to an increase in 
compensation equal to \1/30\ of the monthly special duty assignment pay 
prescribed by the Secretary concerned for the performance of that same 
duty by members described in subsection (a).
    ``(2) A member of the National Guard or a reserve component 
entitled to an increase in compensation under paragraph (1) is entitled 
to the increase--
            ``(A) for each regular period of instruction, or period of 
        appropriate duty, at which the member is engaged for at least 
        two hours, including that performed on a Sunday or holiday; or
            ``(B) for the performance of such other equivalent 
        training, instruction, duty, or appropriate duties, as the 
        Secretary may prescribe under section 206(a) of this title.
    ``(3) This subsection does not apply to a member of the National 
Guard or a reserve component who is entitled to basic pay under section 
204 of this title.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect October 1, 2000.

SEC. 633. AUTHORIZATION OF RETENTION BONUS FOR MEMBERS OF THE ARMED 
              FORCES QUALIFIED IN A CRITICAL MILITARY SKILL.

    (a) Bonus Authorized.--(1) Chapter 5 of title 37, United States 
Code, is amended by adding at the end the following new section:
``Sec. 323. Special pay: retention incentives for members qualified in 
              a critical military skill
    ``(a) Retention Bonus Authorized.--An officer or enlisted member of 
the armed forces who is serving on active duty and is qualified in a 
designated critical military skill may be paid a retention bonus as 
provided in this section if--
            ``(1) in the case of an officer, the member executes a 
        written agreement to remain on active duty for at least 1 year; 
        or
            ``(2) in the case of an enlisted member, the member 
        reenlists or voluntarily extends the member's enlistment for a 
        period of at least 1 year.
    ``(b) Designation of Critical Skills.--(1) A designated critical 
military skill referred to in subsection (a) is a military skill 
designated as critical by the Secretary of Defense, or by the Secretary 
of Transportation with respect to the Coast Guard when it is not 
operating as a service in the Navy.
    ``(2) The Secretary of Defense, and the Secretary of Transportation 
with respect to the Coast Guard when it is not operating as a service 
in the Navy, shall notify Congress, in advance, of each military skill 
to be designated by the Secretary as critical for purposes of this 
section. The notice shall be submitted at least 90 days before any 
bonus with regard to that critical skill is offered under subsection 
(a) and shall include a discussion of the necessity for the bonus, the 
amount and method of payment of the bonus, and the retention results 
that the bonus is expected to achieve.
    ``(c) Payment Methods.--A bonus under this section may be paid in a 
single lump sum or in periodic installments.
    ``(d) Maximum Bonus Amount.--A member may enter into an agreement 
under this section, or reenlist or voluntarily extend the member's 
enlistment, more than once to receive a bonus under this section. 
However, a member may not receive a total of more than $200,000 in 
payments under this section.
    ``(e) Certain Members Ineligible.--A retention bonus may not be 
provided under subsection (a) to a member of the armed forces who--
            ``(1) has completed more than 25 years of active duty; or
            ``(2) will complete the member's twenty-fifth year of 
        active duty before the end of the period of active duty for 
        which the bonus is being offered.
    ``(f) Relationship to Other Incentives.--A retention bonus paid 
under this section is in addition to any other pay and allowances to 
which a member is entitled.
    ``(g) Repayment of Bonus.--(1) If an officer who has entered into a 
written agreement under subsection (a) fails to complete the total 
period of active duty specified in the agreement, or an enlisted member 
who voluntarily or because of misconduct does not complete the term of 
enlistment for which a bonus was paid under this section, the Secretary 
of Defense, and the Secretary of Transportation with respect to members 
of the Coast Guard when it is not operating as a service in the Navy, 
may require the member to repay the United States, on a pro rata basis 
and to the extent that the Secretary determines conditions and 
circumstances warrant, all sums paid under this section.
    ``(2) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of a written agreement entered into 
under subsection (a) does not discharge the member from a debt arising 
under paragraph (2).
    ``(h) Annual Report.--Not later than February 15 of each year, the 
Secretary of Defense and the Secretary of Transportation shall submit 
to Congress a report--
            ``(1) analyzing the effect, during the preceding fiscal 
        year, of the provision of bonuses under this section on the 
        retention of members qualified in the critical military skills 
        for which the bonuses were offered; and
            ``(2) describing the intentions of the Secretary regarding 
        the continued use of the bonus authority during the current and 
        next fiscal years.
    ``(i) Termination of Bonus Authority.--No bonus may be paid under 
this section with respect to any reenlistment, or voluntary extension 
of an enlistment, in the armed forces entered into after December 31, 
2001, and no agreement under this section may be entered into after 
that date.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``323. Special pay: retention incentives for members qualified in a 
                            critical military skill.''.
    (b) Effective Date.--Section 323 of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 2000.

SEC. 634. ENTITLEMENT OF ACTIVE DUTY OFFICERS OF THE PUBLIC HEALTH 
              SERVICE CORPS TO SPECIAL PAYS AND BONUSES OF HEALTH 
              PROFESSIONAL OFFICERS OF THE ARMED FORCES.

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

            Subtitle C--Travel and Transportation Allowances

SEC. 641. ADVANCE PAYMENTS FOR TEMPORARY LODGING OF MEMBERS AND 
              DEPENDENTS.

    (a) Subsistence Expenses.--Section 404a of title 37, United States 
Code, is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (d) and (e), respectively; and
            (2) by striking subsection (a) and inserting the following:
    ``(a) Payment or Reimbursement of Subsistence Expenses.--(1) Under 
regulations prescribed by the Secretaries concerned, a member of a 
uniformed service who is ordered to make a change of permanent station 
described in paragraph (2) shall be paid or reimbursed for subsistence 
expenses of the member and the member's dependents for the period 
(subject to subsection (c)) for which the member and dependents occupy 
temporary quarters incident to that change of permanent station.
    ``(2) Paragraph (1) applies to the following:
            ``(A) A permanent change of station from any duty station 
        to a duty station in the United States (other than Hawaii or 
        Alaska).
            ``(B) A permanent change of station from a duty station in 
        the United States (other than Hawaii or Alaska) to a duty 
        station outside the United States or in Hawaii or Alaska.
            ``(C) In the case of an enlisted member who is reporting to 
        the member's first permanent duty station, the change from the 
        member's home of record or initial technical school to that 
        first permanent duty station.
    ``(b) Payment in Advance.--The Secretary concerned may make any 
payment for subsistence expenses to a member under this section in 
advance of the member actually incurring the expenses. The amount of an 
advance payment made to a member shall be computed on the basis of the 
Secretary's determination of the average number of days that members 
and their dependents occupy temporary quarters under the circumstances 
applicable to the member and the member's dependents.
    ``(c) Maximum Payment Period.--(1) In the case of a change of 
permanent station described in subparagraph (A) or (C) of subsection 
(a)(2), the period for which subsistence expenses are to be paid or 
reimbursed under this section may not exceed 10 days.
    ``(2) In the case of a change of permanent station described in 
subsection (a)(2)(B)--
            ``(A) the period for which such expenses are to be paid or 
        reimbursed under this section may not exceed five days; and
            ``(B) such payment or reimbursement may be provided only 
        for expenses incurred before leaving the United States (other 
        than Hawaii or Alaska).''.
    (b) Per Diem.--Section 405 of such title is amended to read as 
follows:
``Sec. 405. Travel and transportation allowances: per diem while on 
              duty outside the United States or in Hawaii or Alaska
    ``(a) Per Diem Authorized.--Without regard to the monetary 
limitation of this title, the Secretary concerned may pay a per diem to 
a member of the uniformed services who is on duty outside of the United 
States or in Hawaii or Alaska, whether or not the member is in a travel 
status. The Secretary may pay the per diem in advance of the accrual of 
the per diem.
    ``(b) Determination of Per Diem.--In determining the per diem to be 
paid under this section, the Secretary concerned shall consider all 
elements of the cost of living to members of the uniformed services 
under the Secretary's jurisdiction and their dependents, including the 
cost of quarters, subsistence, and other necessary incidental expenses. 
However, dependents may not be considered in determining the per diem 
allowance for a member in a travel status.
    ``(c) Treatment of Housing Cost and Allowance.--Housing cost and 
allowance may be disregarded in prescribing a station cost of living 
allowance under this section.''.
    (c) Stylistic Amendments.--Section 404a of such title is further 
amended--
            (1) in subsection (d), as redesignated by subsection (a), 
        by striking ``(d)'' and inserting ``(d) Daily Subsistence 
        Rates.--''; and
            (2) in subsection (e), as redesignated by subsection (a), 
        by striking ``(e)'' and inserting ``(e) Maximum Daily 
        Payment.--''.

SEC. 642. ADDITIONAL TRANSPORTATION ALLOWANCE REGARDING BAGGAGE AND 
              HOUSEHOLD EFFECTS.

    (a) Pet Quarantine Fees.--Section 406(a)(1) of title 37, United 
States Code, is amended by adding at the end the following new 
sentence: ``The Secretary concerned may also reimburse the member for 
mandatory pet quarantine fees for household pets, but not to exceed 
$275 per change of station, when the member incurs the fees incident to 
such change of station.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect October 1, 2000.

SEC. 643. INCENTIVE FOR SHIPPING AND STORING HOUSEHOLD GOODS IN LESS 
              THAN AVERAGE WEIGHTS.

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

SEC. 644. EQUITABLE DISLOCATION ALLOWANCES FOR JUNIOR ENLISTED MEMBERS.

    Section 407(c)(1) of title 37, United States Code, is amended by 
inserting before the period at the end the following: ``, except that 
the Secretary concerned may not differentiate between members with 
dependents in pay grades E-1 through E-5''.

SEC. 645. AUTHORITY TO REIMBURSE MILITARY RECRUITERS, SENIOR ROTC 
              CADRE, AND MILITARY ENTRANCE PROCESSING PERSONNEL FOR 
              CERTAIN PARKING EXPENSES.

    (a) Reimbursement Authority.--Chapter 7 of title 37, United States 
Code, is amended by inserting after section 411h the following new 
section:
``Sec. 411i. Travel and transportation allowances: parking expenses
    ``(a) Reimbursement Authority.--Under regulations prescribed by the 
Secretary of Defense, the Secretary of a military department may 
reimburse eligible Department of Defense personnel for expenses 
incurred after October 1, 2001, for parking a privately owned vehicle 
at a place of duty described in subsection (b).
    ``(b) Eligibility.--A member of the Army, Navy, Air Force, or 
Marine Corps or an employee of the Department of Defense may be 
reimbursed under subsection (a) for parking expenses while--
            ``(1) assigned to duty as a recruiter for any of the armed 
        forces;
            ``(2) assigned to duty at a military entrance processing 
        facility of the armed forces; or
            ``(3) detailed for instructional and administrative duties 
        at any institution where a unit of the Senior Reserve Officers' 
        Training Corps is maintained.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
411h the following new item:

``411i. Travel and transportation allowances: parking expenses.''.

SEC. 646. EXPANSION OF FUNDED STUDENT TRAVEL FOR DEPENDENTS.

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

          Subtitle D--Retirement and Survivor Benefit Matters

SEC. 651. EXCEPTION TO HIGH-36 MONTH RETIRED PAY COMPUTATION FOR 
              MEMBERS RETIRED FOLLOWING A DISCIPLINARY REDUCTION IN 
              GRADE.

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

SEC. 652. INCREASE IN MAXIMUM NUMBER OF RESERVE RETIREMENT POINTS THAT 
              MAY BE CREDITED IN ANY YEAR.

    Section 12733(3) of title 10, United States Code, is amended by 
striking ``but not more than'' and all that follows and inserting ``but 
not more than--
                    ``(A) 60 days in any one year of service before the 
                year of service that includes September 23, 1996;
                    ``(B) 75 days in the year of service that includes 
                September 23, 1996, and in any subsequent year of 
                service before the year of service that includes the 
                date of the enactment of the Floyd D. Spence National 
                Defense Authorization Act for Fiscal Year 2001; and
                    ``(C) 90 days in the year of service that includes 
                the date of the enactment of the Floyd D. Spence 
                National Defense Authorization Act for Fiscal Year 2001 
                and in any subsequent year of service.''.

SEC. 653. RETIREMENT FROM ACTIVE RESERVE SERVICE AFTER REGULAR 
              RETIREMENT.

    (a) Conversion to Reserve Retirement.--(1) Chapter 1223 of title 
10, United States Code, is amended by adding at the end the following 
new section:
``Sec. 12741. Retirement from active reserve service performed after 
              regular retirement
    ``(a) Election of Reserve Retired Pay.--A person who, after 
becoming entitled to retired or retainer pay under chapter 65, 367, 
571, or 867 of this title, serves in an active status in a reserve 
component is entitled to retired pay under this chapter if--
            ``(1) the person would, but for paragraphs (3) and (4) of 
        section 12731(a) of this title, otherwise be entitled to 
        retired pay under this chapter;
            ``(2) the person elects under this section to received 
        retired pay under this chapter; and
            ``(3) the person's service in an active status after having 
        become entitled to retired or retainer pay under that chapter 
        is determined by the Secretary concerned to have been 
        satisfactory.
    ``(b) Actions To Effectuate Election.--As of the effective date of 
an election made by a person under subsection (a), the Secretary 
concerned shall--
            ``(1) terminate the person's entitlement to retired or 
        retainer pay under the applicable chapter of this title 
        referred to in subsection (a); and
            ``(2) in the case of a reserve commissioned officer, 
        transfer the officer to the Retired Reserve.
    ``(c) Time and Form of Election.--An election under subsection (b) 
shall be made within such time and in such form as the Secretary 
concerned requires.
    ``(d) Effective Date of Election.--An election made by a person 
under subsection (b) shall be effective--
            ``(1) except as provided in paragraph (2)(B), as of the 
        date on which the person attains 60 years of age, if the 
        Secretary concerned receives the election in accordance with 
        this section within 180 days after that date; or
            ``(2) on the first day of the first month that begins after 
        the date on which the Secretary concerned receives the election 
        in accordance with this section, if--
                    ``(A) the date of the receipt of the election is 
                more than 180 days after the date on which the person 
                attains 60 years of age; or
                    ``(B) the person retires from service in an active 
                status within that 180-day period.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``12741. Retirement from active service performed after regular 
                            retirement.''.
    (b) Effective Date.--Section 12741 of title 10, United States Code, 
as added by subsection (a), shall take effect 180 days after the date 
of the enactment of this Act and shall apply with respect to retired 
pay payable for months beginning on of after that effective date.

SEC. 654. SAME TREATMENT FOR FEDERAL JUDGES AS FOR OTHER FEDERAL 
              OFFICIALS REGARDING PAYMENT OF MILITARY RETIRED PAY.

    (a) Article III Judges.--(1) Section 371 of title 28, United States 
Code, is amended--
            (A) by striking subsection (e); and
            (B) by redesignating subsection (f) as subsection (e).
    (2) Subsection (b) of such section is amended by striking 
``subsection (f)'' each place it appears and inserting ``subsection 
(e)''.
    (b) Judges of United States Court of Federal Claims.--(1) Section 
180 of title 28, United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 7 of such 
title is amended by striking the item relating to section 180.
    (c) Retroactive Effective Date.--The amendments made by this 
section shall take effect as of October 1, 1999.

SEC. 655. RESERVE COMPONENT SURVIVOR BENEFIT PLAN SPOUSAL CONSENT 
              REQUIREMENT.

    (a) Eligible Participants.--Subsection (a)(2)(B) of section 1448 of 
title 10, United States Code, is amended to read as follows:
                    ``(B) Reserve-component annuity participants.--A 
                person who (i) is eligible to participate in the Plan 
                under paragraph (1)(B), and (ii) is married or has a 
                dependent child when he is notified under section 
                12731(d) of this title that he has completed the years 
                of service required for eligibility for reserve-
                component retired pay, unless the person elects (with 
                his spouse's concurrence, if required under paragraph 
                (3)) not to participate in the Plan before the end of 
                the 90-day period beginning on the date on which he 
                receives that notification.''.
    (b) Subsequent Election To Participate.--Subsection (a)(3)(B) of 
such section is amended--
            (1) by striking ``who elects to provide'' and inserting 
        ``who is eligible to provide'';
            (2) by redesignating clauses (i) and (ii) as clauses (iii) 
        and (iv), respectively; and
            (3) by inserting before clause (iii) (as so redesignated) 
        the following new clauses:
                            ``(i) not to participate in the Plan;
                            ``(ii) to designate under subsection (e)(2) 
                        the effective date for commencement of annuity 
                        payments under the Plan in the event that the 
                        member dies before becoming 60 years of age to 
                        be the 60th anniversary of the member's birth 
                        (rather than the day after the date of the 
                        member's death);''.
    (c) Conforming Amendments.--Subchapter II of chapter 73 of such 
title is further amended--
            (1) in section 1448(a)(2), by striking ``described in 
        clauses (i) and (ii)'' in the sentence following subparagraph 
        (B) (as amended by subsection (a)) and all that follows through 
        ``that clause'' and inserting ``who elects under subparagraph 
        (B) not to participate in the Plan'';
            (2) in section 1448(a)(4)--
                    (A) by striking ``not to participate in the Plan'' 
                in subparagraph (A); and
                    (B) by striking ``to participate in the Plan'' in 
                subparagraph (B);
            (3) in section 1448(e), by striking ``a person electing to 
        participate'' and all that follows through ``making such 
        election'' and inserting ``a person is required to make a 
        designation under this subsection, the person''; and
            (4) in section 1450(j)(1), by striking ``An annuity'' and 
        all that follows through the period and inserting ``A reserve-
        component annuity shall be effective in accordance with the 
        designation made under section 1448(e) of this title by the 
        person providing the annuity.''.
    (d) Effective Date.--The amendments made by this section apply only 
with respect to a notification under section 12731(d) of title 10, 
United States Code, made after January 1, 2001, that a member of a 
reserve component has completed the years of service required for 
eligibility for reserve-component retired pay.

SEC. 656. SENSE OF CONGRESS ON INCREASING SURVIVOR BENEFIT PLAN 
              ANNUITIES FOR SURVIVING SPOUSES AGE 62 OR OLDER.

    (a) Sense of Congress.--It is the sense of Congress that, subject 
to the requirements and limitations of congressional budget procedures 
relating to the enactment of new (or increased) entitlement authority, 
there should be enacted legislation that increases the annuities 
provided under the Survivor Benefit Plan program for surviving spouses 
who are 62 years of age or older in order to reduce (and eventually 
eliminate) the different levels of annuities under that program for 
surviving spouses who are under age 62 and those who are 62 years of 
age and older.
    (b) Survivor Benefit Plan.--For purposes of this section, the term 
``Survivor Benefit Plan program'' means the program of annuities for 
survivors of members of the uniformed services provided under 
subchapter II of chapter 73 of title 10, United States Code.

SEC. 657. REVISION TO SPECIAL COMPENSATION AUTHORITY TO REPEAL 
              EXCLUSION OF UNIFORMED SERVICES RETIREES IN RECEIPT OF 
              DISABILITY RETIRED PAY.

    (a) Eligibility for Chapter 61 Retirees.--Section 1413(c) of title 
10, United States Code, is amended by striking ``(other than a member 
who is retired under chapter 61 of this title)''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2001, and shall apply to months that begin on 
or after that date. No benefit may be paid under section 1413 of title 
10, United States Code, to any person by reason of the amendment made 
by subsection (a) for any period before that date.

                       Subtitle E--Other Matters

SEC. 661. PARTICIPATION IN THRIFT SAVINGS PLAN.

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

``SEC. 663. EFFECTIVE DATE.

    ``(a) In General.--Except as provided in subsection (b), the 
amendments made by this subtitle shall take effect 180 days after the 
date of the enactment of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001.
    ``(b) Postponement Authority.--(1) The Secretary of Defense may 
postpone by up to 180 days after the date that would otherwise apply 
under subsection (a)--
            ``(A) the date as of which the amendments made by this 
        subtitle shall take effect; or
            ``(B) the date as of which section 211(a)(2) of title 37, 
        United States Code (as added by this subtitle) shall take 
        effect.
    ``(2) Postponement authority under this subsection may be exercised 
only to the extent that the failure to do so would prevent the Federal 
Retirement Thrift Investment Board from being able to provide timely 
and accurate services to investors or would place an excessive burden 
on the administrative capacity of the Board to accommodate participants 
in the Thrift Savings Plan, as determined by the Secretary of Defense 
after consultation with the Executive Director (appointed by the 
Board).
    ``(3) Paragraph (1) includes the authority to postpone the 
effective date of the amendments made by this subtitle (apart from 
section 211(a)(2) of title 37, United States Code), and the effective 
date of such section 211(a)(2), by different lengths of time.
    ``(4) The Secretary shall notify the congressional defense 
committees, the Committee on Government Reform of the House of 
Representatives, and the Committee on Governmental Affairs of the 
Senate of any determination made under this subsection.''.
    (b) Regulations.--Section 661(b) of such Act (113 Stat. 672; 5 
U.S.C. 8440e note) is amended by striking ``the date on which'' and all 
that follows through ``later,'' and inserting ``the 180th day after the 
date of the enactment of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001,''.
    (c) Conforming Amendment.--Section 8440e(b)(2)(B)(i) of title 5, 
United States Code, is amended by striking ``as of'' and all that 
follows through ``thereof)'' and inserting ``as of the effective date 
that applies with respect to such individual under section 663 of the 
National Defense Authorization Act for Fiscal Year 2000''.

SEC. 662. DETERMINATIONS OF INCOME ELIGIBILITY FOR SPECIAL SUPPLEMENTAL 
              FOOD PROGRAM.

    Section 1060a(c)(1)(B) of title 10, United States Code, is amended 
by striking the second sentence and inserting the following new 
sentence: ``In the application of such criterion, the Secretary shall 
exclude from income any basic allowance for housing as permitted under 
section 17(d)(2)(B) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(d)(2)(B)).''.

SEC. 663. BILLETING SERVICES FOR RESERVE MEMBERS TRAVELING FOR 
              INACTIVE-DUTY TRAINING.

    (a) In General.--(1) Chapter 1217 of title 10, United States Code, 
is amended by inserting after section 12603 the following new section:
``Sec. 12604. Billeting in Department of Defense facilities: Reserves 
              attending inactive-duty training
    ``(a) Authority for Billeting on Same Basis as Active Duty Members 
Traveling Under Orders.--The Secretary of Defense shall prescribe 
regulations authorizing a Reserve traveling to inactive-duty training 
at a location more than 50 miles from that Reserve's residence to be 
eligible for billeting in Department of Defense facilities on the same 
basis and to the same extent as a member of the armed forces on active 
duty who is traveling under orders away from the member's permanent 
duty station.
    ``(b) Proof of Reason for Travel.--The Secretary shall include in 
the regulations the means for confirming a Reserve's eligibility for 
billeting under subsection (a).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 12603 the 
following new item:

``12604. Billeting in Department of Defense facilities: Reserves 
                            attending inactive-duty training.''.
    (b) Effective Date.--Section 12604 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to periods of 
inactive-duty training beginning more than 180 days after the date of 
the enactment of this Act.

SEC. 664. SETTLEMENT OF CLAIMS FOR PAYMENTS FOR UNUSED ACCRUED LEAVE 
              AND FOR RETIRED PAY.

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

SEC. 665. ADDITIONAL BENEFITS AND PROTECTIONS FOR PERSONNEL INCURRING 
              INJURY, ILLNESS, OR DISEASE IN THE PERFORMANCE OF FUNERAL 
              HONORS DUTY.

    (a) Incapacitation Pay.--Section 204 of title 37, United States 
Code, is amended--
            (1) in subsection (g)(1)--
                    (A) by striking ``or'' at the end of subparagraph 
                (C);
                    (B) by striking the period at the end of 
                subparagraph (D) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(E) in line of duty while--
                    ``(i) serving on funeral honors duty under section 
                12503 of title 10 or section 115 of title 32;
                    ``(ii) traveling to or from the place at which the 
                duty was to be performed; or
                    ``(iii) remaining overnight at or in the vicinity 
                of that place immediately before so serving, if the 
                place is outside reasonable commuting distance from the 
                member's residence.''; and
            (2) in subsection (h)(1)--
                    (A) by striking ``or'' at the end of subparagraph 
                (C);
                    (B) by striking the period at the end of 
                subparagraph (D) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(E) in line of duty while--
                    ``(i) serving on funeral honors duty under section 
                12503 of title 10 or section 115 of title 32;
                    ``(ii) traveling to or from the place at which the 
                duty was to be performed; or
                    ``(iii) remaining overnight at or in the vicinity 
                of that place immediately before so serving, if the 
                place is outside reasonable commuting distance from the 
                member's residence.''.
    (b) Tort Claims.--Section 2671 of title 28, United States Code, is 
amended by inserting ``115,'' in the second paragraph after ``members 
of the National Guard while engaged in training or duty under 
section''.
    (c) Applicability.--(1) The amendments made by subsection (a) shall 
apply with respect to months beginning on or after the date of the 
enactment of this Act.
    (2) The amendment made by subsection (b) shall apply with respect 
to acts and omissions occurring before, on, or after the date of the 
enactment of this Act.

SEC. 666. AUTHORITY FOR EXTENSION OF DEADLINE FOR FILING CLAIMS 
              ASSOCIATED WITH CAPTURE AND INTERNMENT OF CERTAIN PERSONS 
              BY NORTH VIETNAM.

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

SEC. 667. BACK PAY FOR MEMBERS OF THE NAVY AND MARINE CORPS SELECTED 
              FOR PROMOTION WHILE INTERNED AS PRISONERS OF WAR DURING 
              WORLD WAR II.

    (a) Entitlement of Former Prisoners of War.--Upon receipt of a 
claim made in accordance with this section, the Secretary of the Navy 
shall pay, from any appropriation currently available to the Secretary, 
back pay to any person who, by reason of being interned as a prisoner 
of war while serving as a member of the Navy or the Marine Corps during 
World War II, was not available to accept a promotion for which the 
person had been selected.
    (b) Payment to Surviving Spouse of Deceased Former Member.--In the 
case of a person described in subsection (a) who is deceased, the back 
pay for that person under this section shall be paid to the living 
surviving spouse of that person, if any. If there is no living 
surviving spouse, no claim may be paid under this section with respect 
to that person.
    (c) Amount of Back Pay.--(1) The amount of back pay payable to or 
for a person described in subsection (a) is the amount equal to the 
difference between--
            (A) the total amount of basic pay that would have been paid 
        to that person for service in the Navy or the Marine Corps for 
        the back-pay computation period if the person had been promoted 
        to the grade to which selected to be promoted; and
            (B) the total amount of basic pay that was actually paid to 
        or for that person for such service for the back-pay 
        computation period.
    (2) For purposes of paragraph (1), the back-pay computation period 
for a person covered by subsection (a) is the period--
            (A) beginning on the date (as determined by the Secretary 
        of the Navy) as of when that person's promotion would have been 
        effective for pay purposes but for the person's internment as a 
        prisoner of war; and
            (B) ending on the earliest of--
                    (i) the date of the person's discharge or release 
                from active duty;
                    (ii) the date on which the person's promotion to 
                that grade in fact became effective for pay purposes; 
                and
                    (iii) the end of World War II.
    (d) Time Limitations.--(1) To be eligible for a payment under this 
section, a claimant must file a claim for such payment with the 
Secretary of the Navy within two years after the effective date of the 
regulations prescribed to carry out this section.
    (2) Not later than 18 months after receiving a claim for payment 
under this section, the Secretary shall determine the eligibility of 
the claimant for payment of the claim. Subject to subsection (f), if 
the Secretary determines that the claimant is eligible for the payment, 
the Secretary shall promptly pay the claim.
    (e) Regulations.--Not later than six months after the date of the 
enactment of this Act, the Secretary of the Navy shall prescribe 
regulations to carry out this section. Such regulations shall include 
procedures by which persons may submit claims for payment under this 
section.
    (f) Limitation on Disbursement.--(1) Notwithstanding any power of 
attorney, assignment of interest, contract, or other agreement, the 
actual disbursement of a payment of back pay under this section may be 
made only to a person who is eligible for the payment under subsection 
(a) or (b).
    (2) In the case of a claim approved for payment but not disbursed 
as a result of paragraph (1), the Secretary shall hold the funds in 
trust for the person in an interest bearing account until such time as 
the person makes an election under such paragraph.
    (g) Attorney Fees.--Notwithstanding any contract, the 
representative of a person may not receive, for services rendered in 
connection with the claim of, or with respect to, a person under this 
section, more than 10 percent of the amount of a payment made under 
this section on that claim.
    (h) Outreach.--The Secretary of the Navy shall take such actions as 
are necessary to ensure that the benefits and eligibility for benefits 
under this section are widely publicized by means designed to provide 
actual notice of the availability of the benefits in a timely manner to 
the maximum number of eligible persons practicable.
    (i) Definition.--In this section, the term ``World War II'' has the 
meaning given that term in section 101(8) of title 38, United States 
Code.

SEC. 668. SENSE OF CONGRESS CONCERNING FUNDING FOR RESERVE COMPONENTS.

    It is the sense of Congress that it is in the national interest for 
the President, in the President's Budget for each fiscal year, to 
provide funds for the reserve components of the Armed Forces at a level 
sufficient to ensure that the reserve components are able to meet the 
requirements, including training requirements, specified for them in 
the National Military Strategy.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Provision of domiciliary and custodial care for CHAMPUS 
                            beneficiaries and certain former CHAMPUS 
                            beneficiaries.
Sec. 702. Chiropractic health care for members on active duty.
Sec. 703. School-required physical examinations for certain minor 
                            dependents.
Sec. 704. Two-year extension of dental and medical benefits for 
                            surviving dependents of certain deceased 
                            members.
Sec. 705. Two-year extension of authority for use of contract 
                            physicians at military entrance processing 
                            stations and elsewhere outside medical 
                            treatment facilities.
Sec. 706. Medical and dental care for Medal of Honor recipients.
                     Subtitle B--Senior Health Care

Sec. 711. Implementation of TRICARE senior pharmacy program.
Sec. 712. Conditions for eligibility for CHAMPUS and TRICARE upon the 
                            attainment of age 65; expansion and 
                            modification of medicare subvention 
                            project.
Sec. 713. Accrual funding for health care for medicare-eligible 
                            retirees and dependents.
                      Subtitle C--TRICARE Program

Sec. 721. Improvement of access to health care under the TRICARE 
                            program.
Sec. 722. Additional beneficiaries under TRICARE Prime Remote program 
                            in the continental United States.
Sec. 723. Modernization of TRICARE business practices and increase of 
                            use of military treatment facilities.
Sec. 724. Extension of TRICARE managed care support contracts.
Sec. 725. Report on protections against health care providers seeking 
                            direct reimbursement from members of the 
                            uniformed services.
Sec. 726. Voluntary termination of enrollment in TRICARE retiree dental 
                            program.
Sec. 727. Claims processing improvements.
Sec. 728. Prior authorizations for certain referrals and 
                            nonavailability-of-health-care statements.
                   Subtitle D--Demonstration Projects

Sec. 731. Demonstration project for expanded access to mental health 
                            counselors.
Sec. 732. Teleradiology demonstration project.
Sec. 733. Health care management demonstration program.
   Subtitle E--Joint Initiatives With Department of Veterans Affairs

Sec. 741. VA-DOD sharing agreements for health services.
Sec. 742. Processes for patient safety in military and veterans health 
                            care systems.
Sec. 743. Cooperation in developing pharmaceutical identification 
                            technology.
                       Subtitle F--Other Matters

Sec. 751. Management of anthrax vaccine immunization program.
Sec. 752. Elimination of copayments for immediate family.
Sec. 753. Medical informatics.
Sec. 754. Patient care reporting and management system.
Sec. 755. Augmentation of Army Medical Department by detailing Reserve 
                            officers of the Public Health Service.
Sec. 756. Privacy of Department of Defense medical records.
Sec. 757. Authority to establish special locality-based reimbursement 
                            rates; reports.
Sec. 758. Reimbursement for certain travel expenses.
Sec. 759. Reduction of cap on payments.
Sec. 760. Training in health care management and administration.
Sec. 761. Studies on feasibility of sharing biomedical research 
                            facility.
Sec. 762. Study on comparability of coverage for physical, speech, and 
                            occupational therapies.

                    Subtitle A--Health Care Services

SEC. 701. PROVISION OF DOMICILIARY AND CUSTODIAL CARE FOR CHAMPUS 
              BENEFICIARIES AND CERTAIN FORMER CHAMPUS BENEFICIARIES.

    (a) Continuation of Care for Certain CHAMPUS Beneficiaries.--
Section 703(a)(1) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 682; 10 U.S.C. 1077 note) is 
amended by inserting before the period at the end the following: ``or 
by the prohibition in section 1086(d)(1) of such title''.
    (b) Reimbursement for Services Provided.--Section 703(a) of such 
Act is further amended by adding at the end the following new 
paragraph:
    ``(4) The Secretary may provide payment for domiciliary or 
custodial care services provided to an eligible beneficiary for which 
payment was discontinued by reason of section 1086(d) of title 10, 
United States Code, and subsequently reestablished under other legal 
authority. Such payment is authorized for the period beginning on the 
date of discontinuation of payment for domiciliary or custodial care 
services and ending on the date of reestablishment of payment for such 
services.''.
    (c) Cost Limitation for Individual Case Management Program.--(1) 
Section 1079(a)(17) of title 10, United States Code, is amended--
            (A) by inserting ``(A)'' after ``(17)''; and
            (B) by adding at the end the following:
            ``(B) The total amount expended under subparagraph (A) for 
        a fiscal year may not exceed $100,000,000.''.
    (2) Section 703 of the National Defense Authorization Act for 
Fiscal Year 2000 is further amended by adding at the end the following:
    ``(e) Cost Limitation.--The total amount paid for services for 
eligible beneficiaries under subsection (a) for a fiscal year (together 
with the costs of administering the authority under that subsection) 
shall be included in the expenditures limited by section 1079(a)(17)(B) 
of title 10, United States Code.''.
    (3) The amendments made by paragraphs (1) and (2) shall apply to 
fiscal years after fiscal year 1999.
    (d) Study Required.--(1) Not later than the date that is three 
months after the date of the enactment of this Act, the Comptroller 
General of the United States shall undertake a study to evaluate the 
coordination and effectiveness of the supplemental disability health 
care programs of the Department of Defense, the Program for Persons 
with Disabilities and the Individual Case Management Program for 
Persons with Disabilities, as such programs relate to other elements of 
the TRICARE program in meeting the health care needs of disabled 
dependents of members of the Armed Forces on active duty. The 
Comptroller General shall examine--
            (A) the number of such dependents who receive services 
        under the Program for Persons with Disabilities, and the number 
        of beneficiaries receiving care under the Individual Case 
        Management Program for Persons with Disabilities, and a 
        description of the patterns of use and expenditures for 
        services provided under such programs;
            (B) the effectiveness of the existing system for 
        coordinating the provision of services under the TRICARE 
        program and the supplemental disability programs of the 
        Department of Defense, including the comprehensiveness of 
        services and the cost effectiveness of providing services;
            (C) the extent to which the monthly maximum benefit imposed 
        under current law under the Program for Persons with 
        Disabilities affects the ability of beneficiaries to obtain 
        needed health care services;
            (D) the number of beneficiaries who are receiving services 
        that supplement services to the TRICARE program under the 
        Program for Persons with Disabilities and the Individual Case 
        Management Program for Persons with Disabilities; and
            (E) the extent to which costs or lack of coverage for 
        health care services for disabled dependents of members of the 
        Armed Forces on active duty under existing military health care 
        programs has caused increased enrollment of such dependents in 
        medicaid programs.
    (2) Not later than April 16, 2001, the Comptroller General shall 
submit to Congress a report on the results of the study under this 
section, including recommendations for legislative or administrative 
changes for providing a comprehensive, efficient, and complete system 
of health care services for disabled dependents of members of the Armed 
Forces on active duty.

SEC. 702. CHIROPRACTIC HEALTH CARE FOR MEMBERS ON ACTIVE DUTY.

    (a) Plan Required.--(1) Not later than March 31, 2001, the 
Secretary of Defense shall complete development of a plan to provide 
chiropractic health care services and benefits, as a permanent part of 
the Defense Health Program (including the TRICARE program), for all 
members of the uniformed services who are entitled to care under 
section 1074(a) of title 10, United States Code.
    (2) The plan shall provide for the following:
            (A) Access, at designated military medical treatment 
        facilities, to the scope of chiropractic services as determined 
        by the Secretary, which includes, at a minimum, care for neuro-
        musculoskeletal conditions typical among military personnel on 
        active duty.
            (B) A detailed analysis of the projected costs of fully 
        integrating chiropractic health care services into the military 
        health care system.
            (C) An examination of the proposed military medical 
        treatment facilities at which such services would be provided.
            (D) An examination of the military readiness requirements 
        for chiropractors who would provide such services.
            (E) An examination of any other relevant factors that the 
        Secretary considers appropriate.
            (F) Phased-in implementation of the plan over a 5-year 
        period, beginning on October 1, 2001.
    (b) Consultation Requirements.--The Secretary of Defense shall 
consult with the other administering Secretaries described in section 
1073 of title 10, United States Code, and the oversight advisory 
committee established under section 731 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 
1092 note) regarding the following:
            (1) The development and implementation of the plan required 
        under subsection (a).
            (2) Each report that the Secretary is required to submit to 
        Congress regarding the plan.
            (3) The selection of the military medical treatment 
        facilities at which the chiropractic services described in 
        subsection (a)(2)(A) are to be provided.
    (c) Continuation of Current Services.--Until the plan required 
under subsection (a) is implemented, the Secretary shall continue to 
furnish the same level of chiropractic health care services and 
benefits under the Defense Health Program that is provided during 
fiscal year 2000 at military medical treatment facilities that provide 
such services and benefits.
    (d) Report Required.--Not later than January 31, 2001, the 
Secretary of Defense shall submit a report on the plan required under 
subsection (a), together with appropriate appendices and attachments, 
to the Committees on Armed Services of the Senate and the House of 
Representatives.
    (e) GAO Reports.--The Comptroller General shall monitor the 
development and implementation of the plan required under subsection 
(a), including the administration of services and benefits under the 
plan, and periodically submit to the committees referred to in 
subsection (d) written reports on such development and implementation.

SEC. 703. SCHOOL-REQUIRED PHYSICAL EXAMINATIONS FOR CERTAIN MINOR 
              DEPENDENTS.

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

SEC. 704. TWO-YEAR EXTENSION OF DENTAL AND MEDICAL BENEFITS FOR 
              SURVIVING DEPENDENTS OF CERTAIN DECEASED MEMBERS.

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

SEC. 705. TWO-YEAR EXTENSION OF AUTHORITY FOR USE OF CONTRACT 
              PHYSICIANS AT MILITARY ENTRANCE PROCESSING STATIONS AND 
              ELSEWHERE OUTSIDE MEDICAL TREATMENT FACILITIES.

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

SEC. 706. MEDICAL AND DENTAL CARE FOR MEDAL OF HONOR RECIPIENTS.

    (a) In General.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1074g the following new section:
``Sec. 1074h. Medical and dental care: medal of honor recipients; 
              dependents
    ``(a) Medal of Honor Recipients.--A former member of the armed 
forces who is a Medal of Honor recipient and who is not otherwise 
entitled to medical and dental benefits under this chapter may, upon 
request, be given medical and dental care provided by the administering 
Secretaries in the same manner as if entitled to retired pay.
    ``(b) Immediate Dependents.--A person who is an immediate dependent 
of a Medal of Honor recipient and who is not otherwise entitled to 
medical and dental benefits under this chapter may, upon request, be 
given medical and dental care provided by the administering Secretaries 
in the same manner as if the Medal of Honor recipient were, or (if 
deceased) was at the time of death, entitled to retired pay.
    ``(c) Definitions--In this section:
            ``(1) The term `Medal of Honor recipient' means a person 
        who has been awarded a medal of honor under section 3741, 6241, 
        or 8741 of this title or section 491 of title 14.
            ``(2) The term `immediate dependent' means a dependent 
        described in subparagraph (A), (B), (C), or (D) of section 
        1072(2) of this title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1074g the 
following new item:

``1074h. Medical and dental care: medal of honor recipients; 
                            dependents.''.
    (b) Effective Date.--Section 1074h of title 10, United States Code, 
shall apply with respect to medical and dental care provided on or 
after the date of the enactment of this Act.

                     Subtitle B--Senior Health Care

SEC. 711. IMPLEMENTATION OF TRICARE SENIOR PHARMACY PROGRAM.

    (a) Expansion of TRICARE Senior Pharmacy Program.--Section 723 of 
the Strom Thurmond National Defense Authorization Act for Fiscal Year 
1999 (Public Law 105-261; 112 Stat. 2068; 10 U.S.C. 1073 note) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``October 1, 1999'' and inserting 
                ``April 1, 2001''; and
                    (B) by striking ``who reside in an area selected 
                under subsection (f)'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Program Requirements.--The same coverage for pharmacy 
services and the same requirements for cost sharing and reimbursement 
as are applicable under section 1086 of title 10, United States Code, 
shall apply with respect to the program required by subsection (a).'';
            (3) in subsection (d)--
                    (A) by striking ``December 31, 2000'' and inserting 
                ``December 31, 2001''; and
                    (B) by striking ``December 31, 2002'' and inserting 
                ``December 31, 2003'';
            (4) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by inserting 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (C), by striking ``; 
                        and'' and inserting a period; and
                            (iii) by striking subparagraph (D); and
                    (B) in paragraph (2), by striking ``at the time'' 
                and all that follows through ``facility'' and inserting 
                ``, before April 1, 2001, has attained the age of 65 
                and did not enroll in the program described in such 
                paragraph''; and
            (5) by striking subsection (f).
    (b) Termination of Demonstration Project and Retail Pharmacy 
Network Requirements.--Section 702 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 
1079 note) is amended by adding at the end the following:
    ``(h) Termination.--This section shall cease to apply to the 
Secretary of Defense on the date after the implementation of section 
711 of the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 that the Secretary determines appropriate, with a view 
to minimizing instability with respect to the provision of pharmacy 
benefits, but in no case later than the date that is one year after the 
date of the enactment of such Act.''.

SEC. 712. CONDITIONS FOR ELIGIBILITY FOR CHAMPUS AND TRICARE UPON THE 
              ATTAINMENT OF AGE 65; EXPANSION AND MODIFICATION OF 
              MEDICARE SUBVENTION PROJECT.

    (a) Eligibility of Medicare Eligible Persons.--(1) Section 1086(d) 
of title 10, United States Code, is amended--
            (A) by striking paragraph (2) and inserting the following:
    ``(2) The prohibition contained in paragraph (1) shall not apply to 
a person referred to in subsection (c) who--
            ``(A) is enrolled in the supplementary medical insurance 
        program under part B of such title (42 U.S.C. 1395j et seq.); 
        and
            ``(B) in the case of a person under 65 years of age, is 
        entitled to hospital insurance benefits under part A of title 
        XVIII of the Social Security Act pursuant to subparagraph (A) 
        or (C) of section 226(b)(2) of such Act (42 U.S.C. 426(b)(2)) 
        or section 226A(a) of such Act (42 U.S.C. 426-1(a)).''; and
            (B) in paragraph (4), by striking ``paragraph (1) who 
        satisfy only the criteria specified in subparagraphs (A) and 
        (B) of paragraph (2), but not subparagraph (C) of such 
        paragraph,'' and inserting ``subparagraph (B) of paragraph (2) 
        who do not satisfy the condition specified in subparagraph (A) 
        of such paragraph''.
    (2) Subsection (a)(4)(A) of section 1896 of the Social Security Act 
(42 U.S.C. 1395ggg) is amended to read as follows:
                    ``(A) is eligible for health benefits under section 
                1086 of such title by reason of subsection (c)(1) of 
                such section;''.
    (3) The amendments made by paragraphs (1) and (2) shall take effect 
on October 1, 2001.
    (b) 1-Year Extension of Medicare Subvention Project.--Section 1896 
of the Social Security Act (42 U.S.C. 1395ggg) is amended--
            (1) in subsection (b)(4), by striking ``3-year period'' and 
        inserting ``4-year period''; and
            (2) in subsection (i)(4)--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) $70,000,000 for calendar year 2001.''.
    (c) Further Extension of Medicare Subvention Project.--(1) 
Subsection (b)(4) of section 1896 of the Social Security Act (42 U.S.C. 
1395ggg) is amended by striking the period at the end and inserting the 
following: ``, except that the administering Secretaries may negotiate 
and (subject to section 701(f) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001) enter into a new or revised 
agreement under paragraph (1)(A) to continue the project after the end 
of such period. If the project is so continued, the administering 
Secretaries may terminate the agreement under which the program 
operates after providing notice to Congress in accordance with 
subsection (k)(2)(B)(v).''.
    (2) Such section is further amended--
            (A) in the heading, by striking ``demonstration project'' 
        and inserting ``program'';
            (B) by amending paragraph (2) of subsection (a) to read as 
        follows:
    ``(2) Program.--The term `program' means the program carried out 
under this section.'';
            (C) by striking ``Demonstration Project'' and 
        ``demonstration project'' and ``project'' each place each 
        appears and inserting ``Program'', ``program'', and ``program'' 
        respectively ; and
                    (D) by striking ``demonstration'' in the heading of 
                subsection (j)(1).
    (3) Subsection (i)(4) of such section is amended to read as 
follows:
            ``(4) Cap on amount.--The maximum aggregate expenditures 
        from the trust funds under this subsection pursuant to the 
        agreement entered into between the administering Secretaries 
        under subsection (b) for a fiscal year (before fiscal year 
        2006) shall not exceed the amount agreed by the Secretaries to 
        be the amount that would have been expended from the trust 
        funds on beneficiaries who enroll in the program, had the 
        program not been established, plus the following:
                    ``(A) $35,000,000 for fiscal year 2002.
                    ``(B) $55,000,000 for fiscal year 2003.
                    ``(C) $75,000,000 for fiscal year 2004.
                    ``(D) $100,000,000 for fiscal year 2005.''.
    (d) Authorizing Program Expansion and Modifications.--(1) Paragraph 
(2) of subsection (b) of such section 1896 is amended to read as 
follows:
            ``(2) Location of sites.--Subject to subsection (k)(2)(B), 
        the program shall be conducted in any site that is designated 
        jointly by the administering Secretaries.''.
    (2) Subsection (d)(2) of such section is amended by inserting ``, 
or (subject to subsection (k)(2)(B)) such comparable requirements as 
are included in the agreement under subsection (b)(1)(A)'' after ``the 
following areas''.
    (3) Subsection (i) of such section is amended--
            (A) in paragraph (2), by inserting ``subject to paragraph 
        (4),'' after ``paragraph (1)''; and
            (B) by striking paragraph (4) and inserting the following:
            ``(4) Modification of payment methodology.--The 
        administering Secretaries may, subject to subsection (k)(2)(B), 
        modify the payment methodology provided under paragraphs (1) 
        and (2) so long as the amount of the reimbursement provided to 
        the Secretary of Defense fully reimburses the Department of 
        Defense for its cost of providing services under the program 
        but does not exceed an amount that is estimated to be 
        equivalent to the amount that otherwise would have been 
        expended under this title for such services if provided other 
        than under the program (not including amounts described in 
        paragraph (2)). Such limiting amount may be based for any site 
        on the amount that would be payable to Medicare+Choice 
        organizations under part C for the area of the site or the 
        amounts that would be payable under parts A and B.''.
    (e) Change in Reports.--Paragraph (2) of subsection (k) of such 
section 1896 is amended to read as follows:
            ``(2) Reports on program operation and changes.--
                    ``(A) Annual report.--The administering Secretaries 
                shall submit to the Committees on Armed Services and 
                Finance of the Senate and the Committees on Armed 
                Services and Ways and Means of the House of 
                Representatives an annual report on the program and its 
                impact on costs and the provision of health services 
                under this title and title 10, United States Code.
                    ``(B) Before making certain program changes.--The 
                administering Secretaries shall submit to such 
                Committees a report at least 60 days before--
                            ``(i) changing the designation of a site 
                        under subsection (b)(2);
                            ``(ii) applying comparable requirements 
                        under subsection (d)(2);
                            ``(iii) making significant changes in 
                        payment methodology or amounts under subsection 
                        (i)(4);
                            ``(iv) making other significant changes in 
                        the operation of the program; or
                            ``(v) terminating the agreement under the 
                        second sentence of subsection (b)(4).
                    ``(C) Explanation.--Each report under subparagraph 
                (B) shall include justifications for the changes or 
                termination to which the report refers.''.
    (f) Conditional Effective Date.--(1) Upon negotiating an agreement 
under the amendment made by subsection (c)(1), the Secretary of Defense 
and the Secretary of Health and Human Services shall jointly transmit a 
notification of the proposed agreement to the Committee on Armed 
Services and the Committee on Finance of the Senate and the Committee 
on Armed Services and the Committee on Ways and Means of the House of 
Representatives, and shall include with the transmittal a copy of the 
proposed agreement and all related agreements and supporting documents.
    (2) Such proposed agreement shall take effect, and the amendments 
made by subsections (c)(2), (c)(3), (d), and (e) shall take effect, on 
such date as is provided for in such agreement and in an Act enacted 
after the date of the enactment of this Act.

SEC. 713. ACCRUAL FUNDING FOR HEALTH CARE FOR MEDICARE-ELIGIBLE 
              RETIREES AND DEPENDENTS.

    (a) Establishment of Fund.--(1) Part II of subtitle A of title 10, 
United States Code, is amended by inserting after chapter 55 the 
following new chapter:

 ``CHAPTER 56--DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH 
                               CARE FUND

``Sec.
``1111.    Establishment and purpose of Fund; definitions.
``1112.    Assets of Fund.
``1113.    Payments from the Fund.
``1114.    Board of Actuaries.
``1115.    Determination of contributions to the Fund.
``1116.    Payments into the Fund.
``1117.    Investment of assets of Fund.
``Sec. 1111. Establishment and purpose of Fund; definitions
    ``(a) There is established on the books of the Treasury a fund to 
be known as the Department of Defense Medicare-Eligible Retiree Health 
Care Fund (hereinafter in this chapter referred to as the ``Fund''), 
which shall be administered by the Secretary of the Treasury. The Fund 
shall be used for the accumulation of funds in order to finance on an 
actuarially sound basis liabilities of the Department of Defense under 
Department of Defense retiree health care programs for medicare-
eligible beneficiaries.
    ``(b) In this chapter:
            ``(1) The term `Department of Defense retiree health care 
        programs for medicare-eligible beneficiaries' means the 
        provisions of this title or any other provision of law creating 
        entitlement to health care for a medicare-eligible member or 
        former member of the uniformed services entitled to retired or 
        retainer pay, or a medicare-eligible dependent of a member or 
        former member of the uniformed services entitled to retired or 
        retainer pay.
            ``(2) The term `medicare-eligible' means entitled to 
        benefits under part A of title XVIII of the Social Security Act 
        (42 U.S.C. 1395c et seq.).
            ``(3) The term `dependent' means a dependent (as such term 
        is defined in section 1072 of this title) described in section 
        1076(b)(1) of this title.
``Sec. 1112. Assets of Fund
    ``There shall be deposited into the Fund the following, which shall 
constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under section 1116 of this 
        title.
            ``(2) Any amount appropriated to the Fund.
            ``(3) Any return on investment of the assets of the Fund.

``Sec. 1113. Payments from the Fund
    ``(a) There shall be paid from the Fund amounts payable for 
Department of Defense retiree health care programs for medicare-
eligible beneficiaries.
    ``(b) The assets of the Fund are hereby made available for payments 
under subsection (a).
``Sec. 1114. Board of Actuaries
    ``(a)(1) There is established in the Department of Defense a 
Department of Defense Medicare-Eligible Retiree Health Care Board of 
Actuaries (hereinafter in this chapter referred to as the ``Board''). 
The Board shall consist of three members who shall be appointed by the 
Secretary of Defense from among qualified professional actuaries who 
are members of the Society of Actuaries.
    ``(2)(A) Except as provided in subparagraph (B), the members of the 
Board shall serve for a term of 15 years, except that a member of the 
Board appointed to fill a vacancy occurring before the end of the term 
for which his predecessor was appointed shall only serve until the end 
of such term. A member may serve after the end of his term until his 
successor has taken office. A member of the Board may be removed by the 
Secretary of Defense for misconduct or failure to perform functions 
vested in the Board, and for no other reason.
    ``(B) Of the members of the Board who are first appointed under 
this paragraph, one each shall be appointed for terms ending five, ten, 
and 15 years, respectively, after the date of appointment, as 
designated by the Secretary of Defense at the time of appointment.
    ``(3) A member of the Board who is not otherwise an employee of the 
United States is entitled to receive pay at the daily equivalent of the 
annual rate of basic pay of the highest rate of basic pay under the 
General Schedule of subchapter III of chapter 53 of title 5, for each 
day the member is engaged in the performance of duties vested in the 
Board, and is entitled to travel expenses, including a per diem 
allowance, in accordance with section 5703 of title 5.
    ``(b) The Board shall report to the Secretary of Defense annually 
on the actuarial status of the Fund and shall furnish its advice and 
opinion on matters referred to it by the Secretary.
    ``(c) The Board shall review valuations of the Fund under section 
1115(c) of this title and shall report periodically, not less than once 
every four years, to the President and Congress on the status of the 
Fund. The Board shall include in such reports recommendations for such 
changes as in the Board's judgment are necessary to protect the public 
interest and maintain the Fund on a sound actuarial basis.
``Sec. 1115. Determination of contributions to the Fund
    ``(a) The Board shall determine the amount that is the present 
value (as of October 1, 2002) of future benefits payable from the Fund 
that are attributable to service in the uniformed services performed 
before October 1, 2002. That amount is the original unfunded liability 
of the Fund. The Board shall determine the period of time over which 
the original unfunded liability should be liquidated and shall 
determine an amortization schedule for the liquidation of such 
liability over that period. Contributions to the Fund for the 
liquidation of the original unfunded liability in accordance with such 
schedule shall be made as provided in section 1116(b) of this title.
    ``(b)(1) The Secretary of Defense shall determine each year, in 
sufficient time for inclusion in budget requests for the following 
fiscal year, the total amount of Department of Defense contributions to 
be made to the Fund during that fiscal year under section 1116(a) of 
this title. That amount shall be the sum of the following:
            ``(A) The product of--
                    ``(i) the current estimate of the value of the 
                single level dollar amount to be determined under 
                subsection (c)(1)(A) at the time of the next actuarial 
                valuation under subsection (c); and
                    ``(ii) the expected average force strength during 
                that fiscal year for members of the uniformed services 
                on active duty (other than active duty for training) 
                and full-time National Guard duty (other than full-time 
                National Guard duty for training only).
            ``(B) The product of--
                    ``(i) the current estimate of the value of the 
                single level dollar amount to be determined under 
                subsection (c)(1)(B) at the time of the next actuarial 
                valuation under subsection (c); and
                    ``(ii) the expected average force strength during 
                that fiscal year for members of the Ready Reserve of 
                the uniformed services other than members on full-time 
                National Guard duty other than for training) who are 
                not otherwise described in subparagraph (A)(ii).
    ``(2) The amount determined under paragraph (1) for any fiscal year 
is the amount needed to be appropriated to the Department of Defense 
for that fiscal year for payments to be made to the Fund during that 
year under section 1116(a) of this title. The President shall include 
not less than the full amount so determined in the budget transmitted 
to Congress for that fiscal year under section 1105 of title 31. The 
President may comment and make recommendations concerning any such 
amount.
    ``(c)(1) Not less often than every four years, the Secretary of 
Defense shall carry out an actuarial valuation of the Fund. Each such 
actuarial valuation shall include--
            ``(A) a determination (using the aggregate entry-age normal 
        cost method) of a single level dollar amount for members of the 
        uniformed services on active duty (other than active duty for 
        training) or full-time National Guard duty (other than full-
        time National Guard duty for training only); and
            ``(B) a determination (using the aggregate entry-age normal 
        cost method) of a single level dollar amount for members of the 
        Ready Reserve of the uniformed services and other than members 
        on full-time National Guard duty other than for training) who 
        are not otherwise described by subparagraph (A).
Such single level dollar amounts shall be used for the purposes of 
subsection (b) and section 1116(a) of this title.
    ``(2) If at the time of any such valuation there has been a change 
in benefits under the Department of Defense retiree health care 
programs for medicare-eligible beneficiaries that has been made since 
the last such valuation and such change in benefits increases or 
decreases the present value of amounts payable from the Fund, the 
Secretary of Defense shall determine an amortization methodology and 
schedule for the amortization of the cumulative unfunded liability (or 
actuarial gain to the Fund) created by such change and any previous 
such changes so that the present value of the sum of the amortization 
payments (or reductions in payments that would otherwise be made) 
equals the cumulative increase (or decrease) in the present value of 
such amounts.
    ``(3) If at the time of any such valuation the Secretary of Defense 
determines that, based upon changes in actuarial assumptions since the 
last valuation, there has been an actuarial gain or loss to the Fund, 
the Secretary shall determine an amortization methodology and schedule 
for the amortization of the cumulative gain or loss to the Fund created 
by such change in assumptions and any previous such changes in 
assumptions through an increase or decrease in the payments that would 
otherwise be made to the Fund.
    ``(4) If at the time of any such valuation the Secretary of Defense 
determines that, based upon the Fund's actuarial experience (other than 
resulting from changes in benefits or actuarial assumptions) since the 
last valuation, there has been an actuarial gain or loss to the Fund, 
the Secretary shall determine an amortization methodology and schedule 
for the amortization of the cumulative gain or loss to the Fund created 
by such actuarial experience and any previous actuarial experience 
through an increase or decrease in the payments that would otherwise be 
made to the Fund.
    ``(5) Contributions to the Fund in accordance with amortization 
schedules under paragraphs (2), (3), and (4) shall be made as provided 
in section 1116(b) of this title.
    ``(d) All determinations under this section shall be made using 
methods and assumptions approved by the Board of Actuaries (including 
assumptions of interest rates and medical inflation) and in accordance 
with generally accepted actuarial principles and practices.
    ``(e) The Secretary of Defense shall provide for the keeping of 
such records as are necessary for determining the actuarial status of 
the Fund.
``Sec. 1116. Payments into the Fund
    ``(a) The Secretary of Defense shall pay into the Fund at the end 
of each month as the Department of Defense contribution to the Fund for 
that month the amount that is the sum of the following:
            ``(1) The product of--
                    ``(A) the monthly dollar amount determined using 
                all the methods and assumptions approved for the most 
                recent (as of the first day of the current fiscal year) 
                actuarial valuation under section 1115(c)(1)(A) of this 
                title (except that any statutory change in the 
                Department of Defense retiree health care programs for 
                medicare-eligible beneficiaries that is effective after 
                the date of that valuation and on or before the first 
                day of the current fiscal year shall be used in such 
                determination); and
                    ``(B) the total end strength for that month for 
                members of the uniformed services on active duty (other 
                than active duty for training) and full-time National 
                Guard duty (other than full-time National Guard duty 
                for training only).
            ``(2) The product of--
                    ``(A) the level monthly dollar amount determined 
                using all the methods and assumptions approved for the 
                most recent (as of the first day of the current fiscal 
                year) actuarial valuation under section 1115(c)(1)(B) 
                of this title (except that any statutory change in the 
                Department of Defense retiree health care programs for 
                medicare-eligible beneficiaries that is effective after 
                the date of that valuation and on or before the first 
                day of the current fiscal year shall be used in such 
                determination); and
                    ``(B) the total end strength for that month for 
                members of the Ready Reserve of the uniformed services 
                other than members on full-time National Guard duty 
                other than for training) who are not otherwise 
                described in paragraph (1)(B). Amounts paid into the 
                Fund under this subsection shall be paid from funds 
                available for the Defense Health Program.
    ``(b)(1) At the beginning of each fiscal year the Secretary of the 
Treasury shall promptly pay into the Fund from the General Fund of the 
Treasury the amount certified to the Secretary by the Secretary of 
Defense under paragraph (3). Such payment shall be the contribution to 
the Fund for that fiscal year required by sections 1115(a) and 1115(c) 
of this title.
    ``(2) At the beginning of each fiscal year the Secretary of Defense 
shall determine the sum of the following:
            ``(A) The amount of the payment for that year under the 
        amortization schedule determined by the Board of Actuaries 
        under section 1115(a) of this title for the amortization of the 
        original unfunded liability of the Fund.
            ``(B) The amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary of Defense under section 1115(c)(2) of this title 
        for the amortization of any cumulative unfunded liability (or 
        any gain) to the Fund resulting from changes in benefits.
            ``(C) The amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary of Defense under section 1115(c)(3) of this title 
        for the amortization of any cumulative actuarial gain or loss 
        to the Fund resulting from actuarial assumption changes.
            ``(D) The amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary of Defense under section 111(c)(4) of this title 
        for the amortization of any cumulative actuarial gain or loss 
        to the Fund resulting from actuarial experience.
    ``(3) The Secretary of Defense shall promptly certify the amount 
determined under paragraph (2) each year to the Secretary of the 
Treasury.
``Sec. 1117. Investment of assets of Fund
    ``The Secretary of the Treasury shall invest such portion of the 
Fund as is not in the judgment of the Secretary of Defense required to 
meet current withdrawals. Such investments shall be in public debt 
securities with maturities suitable to the needs of the Fund, as 
determined by the Secretary of Defense, and bearing interest at rates 
determined by the Secretary of the Treasury, taking into consideration 
current market yields on outstanding marketable obligations of the 
United States of comparable maturities. The income on such investments 
shall be credited to and form a part of the Fund.''.
    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part II of subtitle A, of title 10, United States 
Code, are amended by inserting after the item relating to chapter 55 
the following new item:

``56. Department of Defense Medicare-Eligible Retiree Health   1111.''.
    Care Fund.
    (b) Delayed Effective Dates for Certain Provisions.--(1) Sections 
1113 and 1116 of title 10, United States Code (as added by subsection 
(a)), shall take effect on October 1, 2002.
    (2) Section 1115 of such title (as added by such subsection) shall 
take effect on October 1, 2001.

                      Subtitle C--TRICARE Program

SEC. 721. IMPROVEMENT OF ACCESS TO HEALTH CARE UNDER THE TRICARE 
              PROGRAM.

    (a) Waiver of Nonavailability Statement or Preauthorization.--In 
the case of a covered beneficiary under chapter 55 of title 10, United 
States Code, who is enrolled in TRICARE Standard, the Secretary of 
Defense may not require with regard to authorized health care services 
(other than mental health services) under any new contract for the 
provision of health care services under such chapter that the 
beneficiary--
            (1) obtain a nonavailability statement or preauthorization 
        from a military medical treatment facility in order to receive 
        the services from a civilian provider; or
            (2) obtain a nonavailability statement for care in 
        specialized treatment facilities outside the 200-mile radius of 
        a military medical treatment facility.
    (b) Notice.--The Secretary may require that the covered beneficiary 
inform the primary care manager of the beneficiary of any health care 
received from a civilian provider or in a specialized treatment 
facility.
    (c) Exceptions.--Subsection (a) shall not apply if--
            (1) the Secretary demonstrates significant costs would be 
        avoided by performing specific procedures at the affected 
        military medical treatment facilities;
            (2) the Secretary determines that a specific procedure must 
        be provided at the affected military medical treatment facility 
        to ensure the proficiency levels of the practitioners at the 
        facility; or
            (3) the lack of nonavailability statement data would 
        significantly interfere with TRICARE contract administration.
    (d) Effective Date--This section shall take effect on October 1, 
2001.

SEC. 722. ADDITIONAL BENEFICIARIES UNDER TRICARE PRIME REMOTE PROGRAM 
              IN THE CONTINENTAL UNITED STATES.

    (a) Coverage of Other Uniformed Services.--(1) Section 1074(c) of 
title 10, United States Code, is amended--
            (A) by striking ``armed forces'' each place it appears, 
        except in paragraph (3)(A), and inserting ``uniformed 
        services'';
            (B) in paragraph (1), by inserting after ``military 
        department'' in the first sentence the following: ``, the 
        Department of Transportation (with respect to the Coast Guard 
        when it is not operating as a service in the Navy), or the 
        Department of Health and Human Services (with respect to the 
        National Oceanic and Atmospheric Administration and the Public 
        Health Service)'';
            (C) in paragraph (2), by adding at the end the following:
    ``(C) The Secretary of Defense shall consult with the other 
administering Secretaries in the administration of this paragraph.''; 
and
            (D) in paragraph (3)(A), by striking ``The Secretary of 
        Defense may not require a member of the armed forces described 
        in subparagraph (B)'' and inserting ``A member of the uniformed 
        services described in subparagraph (B) may not be required''.
    (2)(A) Subsections (b), (c), and (d)(3) of section 731 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1811; 10 U.S.C. 1074 note) are amended by striking 
``Armed Forces'' and inserting ``uniformed services''.
    (B) Subsection (b) of such section is further amended by adding at 
the end the following:
    ``(4) The Secretary of Defense shall consult with the other 
administering Secretaries in the administration of this subsection.''.
    (C) Subsection (f) of such section is amended by adding at the end 
the following:
            ``(3) The terms `uniformed services' and `administering 
        Secretaries' have the meanings given those terms in section 
        1072 of title 10, United States Code.''.
    (3) Section 706(b) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 684) is amended by 
striking ``Armed Forces'' and inserting ``uniformed services (as 
defined in section 1072(1) of title 10, United States Code)''.
    (b) Coverage of Immediate Family.--(1) Section 1079 of title 10, 
United States Code, is amended by adding at the end the following:
    ``(p)(1) Subject to such exceptions as the Secretary of Defense 
considers necessary, coverage for medical care under this section for 
the dependents referred to in subsection (a) of a member of the 
uniformed services referred to in section 1074(c)(3) of this title who 
are residing with the member, and standards with respect to timely 
access to such care, shall be comparable to coverage for medical care 
and standards for timely access to such care under the managed care 
option of the TRICARE program known as TRICARE Prime.
    ``(2) The Secretary of Defense shall enter into arrangements with 
contractors under the TRICARE program or with other appropriate 
contractors for the timely and efficient processing of claims under 
this subsection.
    ``(3) The Secretary of Defense shall consult with the other 
administering Secretaries in the administration of this subsection.''.
    (2) Section 731(b) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1811; 10 U.S.C. 1074 
note) is amended--
            (A) in paragraph (1), by adding at the end the following: 
        ``A dependent of the member, as described in subparagraph (A), 
        (D), or (I) of section 1072(2) of title 10, United States Code, 
        who is residing with the member shall have the same entitlement 
        to care and to waiver of charges as the member.''; and
            (B) in paragraph (2), by inserting ``or dependent of the 
        member, as the case may be,'' after ``(2) A member''.
    (c) Effective Dates; Applicability.--(1) The amendments made by 
subsections (a)(1) and (b)(1) shall take effect on October 1, 2001.
    (2) The amendments made by subsection (a)(2), with respect to 
members of the uniformed services, and the amendments made by 
subsection (b)(2), with respect to dependents of members, shall take 
effect on the date of the enactment of this Act and shall expire with 
respect to a member or the dependents of a member, respectively, on the 
later of the following:
            (A) The date that is one year after the date of the 
        enactment of this Act.
            (B) The date on which the policies required by the 
        amendments made by subsection (a)(1) or (b)(1) are implemented 
        with respect to the coverage of medical care for and provision 
        of such care to the member or dependents, respectively.
    (3) Section 731(b)(3) of Public Law 105-85 does not apply to a 
member of the Coast Guard, the National Oceanic and Atmospheric 
Administration, or the Commissioned Corps of the Public Health Service, 
or to a dependent of a member of a uniformed service.

SEC. 723. MODERNIZATION OF TRICARE BUSINESS PRACTICES AND INCREASE OF 
              USE OF MILITARY TREATMENT FACILITIES.

    (a) Requirement To Implement Internet-Based System.--Not later than 
October 1, 2001, the Secretary of Defense shall implement a system to 
simplify and make accessible through the use of the Internet, through 
commercially available systems and products, critical administrative 
processes within the military health care system and the TRICARE 
program. The purposes of the system shall be to enhance efficiency, 
improve service, and achieve commercially recognized standards of 
performance.
    (b) Elements of System.--The system required by subsection (a)--
            (1) shall comply with patient confidentiality and security 
        requirements, and incorporate data requirements, that are 
        currently widely used by insurers under medicare and commercial 
        insurers;
            (2) shall be designed to achieve improvements with respect 
        to--
                    (A) the availability and scheduling of 
                appointments;
                    (B) the filing, processing, and payment of claims;
                    (C) marketing and information initiatives;
                    (D) the continuation of enrollments without 
                expiration;
                    (E) the portability of enrollments nationwide;
                    (F) education of beneficiaries regarding the 
                military health care system and the TRICARE program; 
                and
                    (G) education of health care providers regarding 
                such system and program; and
            (3) may be implemented through a contractor under TRICARE 
        Prime.
    (c) Areas of Implementation.--The Secretary shall implement the 
system required by subsection (a) in at least one region under the 
TRICARE program.
    (d) Plan for Improved Portability of Benefits.--Not later than 
March 15, 2001, the Secretary of Defense shall submit to the Committees 
on Armed Services of the Senate and the House of Representatives a plan 
to provide portability and reciprocity of benefits for all enrollees 
under the TRICARE program throughout all TRICARE regions.
    (e) Increase of Use of Military Medical Treatment Facilities.--The 
Secretary shall initiate a program to maximize the use of military 
medical treatment facilities by improving the efficiency of health care 
operations in such facilities.
    (f) Definition.--In this section the term ``TRICARE program'' has 
the meaning given such term in section 1072 of title 10, United States 
Code.

SEC. 724. EXTENSION OF TRICARE MANAGED CARE SUPPORT CONTRACTS.

    (a) Authority.--Notwithstanding any other provision of law and 
subject to subsection (b), any TRICARE managed care support contract in 
effect, or in the final stages of acquisition, on September 30, 1999, 
may be extended for four years.
    (b) Conditions.--Any extension of a contract under subsection (a)--
            (1) may be made only if the Secretary of Defense determines 
        that it is in the best interest of the United States to do so; 
        and
            (2) shall be based on the price in the final best and final 
        offer for the last year of the existing contract as adjusted 
        for inflation and other factors mutually agreed to by the 
        contractor and the Federal Government.

SEC. 725. REPORT ON PROTECTIONS AGAINST HEALTH CARE PROVIDERS SEEKING 
              DIRECT REIMBURSEMENT FROM MEMBERS OF THE UNIFORMED 
              SERVICES.

    Not later than January 31, 2001, the Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report recommending practices to discourage or 
prohibit health care providers under the TRICARE program, and 
individuals or entities working on behalf of such providers, from 
seeking direct reimbursement from members of the uniformed services or 
their dependents for health care received by such members or 
dependents.

SEC. 726. VOLUNTARY TERMINATION OF ENROLLMENT IN TRICARE RETIREE DENTAL 
              PROGRAM.

    (a) Procedures.--Section 1076c of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following new 
        subsection (i):
    ``(i) Voluntary Disenrollment.--(1) With respect to enrollment in 
the dental insurance plan established under subsection (a), the 
Secretary of Defense--
            ``(A) shall allow for a period of up to 30 days at the 
        beginning of the prescribed minimum enrollment period during 
        which an enrollee may disenroll; and
            ``(B) shall provide for limited circumstances under which 
        disenrollment shall be permitted during the prescribed 
        enrollment period, without jeopardizing the fiscal integrity of 
        the dental program.
    ``(2) The circumstances described in paragraph (1)(B) shall 
include--
            ``(A) a case in which a retired member, surviving spouse, 
        or dependent of a retired member who is also a Federal employee 
        is assigned to a location outside the jurisdiction of the 
        dental insurance plan established under subsection (a) that 
        prevents utilization of dental benefits under the plan;
            ``(B) a case in which a retired member, surviving spouse, 
        or dependent of a retired member is prevented by a serious 
        medical condition from being able to obtain benefits under the 
        plan;
            ``(C) a case in which severe financial hardship would 
        result; and
            ``(D) any other circumstances which the Secretary considers 
        appropriate.
    ``(3) The Secretary shall establish procedures for timely decisions 
on requests for disenrollment under this section and for appeal to the 
TRICARE Management Activity of adverse decisions.''
    (b) Clarifying Amendment.--The heading for subsection (f) is 
amended by striking ``Termination'' and inserting ``Required 
Terminations''.

SEC. 727. CLAIMS PROCESSING IMPROVEMENTS.

    Beginning on the date of the enactment of this Act, the Secretary 
of Defense shall, to the maximum extent practicable, take all necessary 
actions to implement the following improvements with respect to 
processing of claims under the TRICARE program:
            (1) Use of the TRICARE encounter data information system 
        rather than the health care service record in maintaining 
        information on covered beneficiaries under chapter 55 of title 
        10, United States Code.
            (2) Elimination of all delays in payment of claims to 
        health care providers that may result from the development of 
        the health care service record or TRICARE encounter data 
        information.
            (3) Requiring all health care providers under the TRICARE 
        program that the Secretary determines are high-volume providers 
        to submit claims electronically.
            (4) Processing 50 percent of all claims by health care 
        providers and institutions under the TRICARE program by 
        electronic means.
            (5) Authorizing managed care support contractors under the 
        TRICARE program to require providers to access information on 
        the status of claims through the use of telephone automated 
        voice response units.

SEC. 728. PRIOR AUTHORIZATIONS FOR CERTAIN REFERRALS AND 
              NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS.

    (a) Prohibition Regarding Prior Authorization for Referrals.--(1) 
Chapter 55 of title 10, United States Code, is amended by inserting 
after section 1095e the following new section:
``Sec. 1095f. TRICARE program: referrals for specialty health care
    ``The Secretary of Defense shall ensure that no contract for 
managed care support under the TRICARE program includes any requirement 
that a managed care support contractor require a primary care or 
specialty care provider to obtain prior authorization before referring 
a patient to a specialty care provider that is part of the network of 
health care providers or institutions of the contractor.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1095e the 
following new item:

``1095f. TRICARE program: referrals for specialty health care.''.
    (b) Report.--Not later than February 1, 2001, the Comptroller 
General shall submit to Congress a report on the financial and 
management implications of eliminating the requirement to obtain 
nonavailability-of-health-care statements under section 1080 of title 
10, United States Code.
    (c) Effective Date.--Section 1095f of title 10, United States Code, 
as added by subsection (a), shall apply with respect to a TRICARE 
managed care support contract entered into by the Department of Defense 
after the date of the enactment of this Act.

                   Subtitle D--Demonstration Projects

SEC. 731. DEMONSTRATION PROJECT FOR EXPANDED ACCESS TO MENTAL HEALTH 
              COUNSELORS.

    (a) Requirement To Conduct Demonstration Project.--The Secretary of 
Defense shall conduct a demonstration project under which licensed and 
certified professional mental health counselors who meet eligibility 
requirements for participation as providers under the Civilian Health 
and Medical Program of the Uniformed Services (hereafter in this 
section referred to as ``CHAMPUS'') or the TRICARE program may provide 
services to covered beneficiaries under chapter 55 of title 10, United 
States Code, without referral by physicians or adherence to supervision 
requirements.
    (b) Duration and Location of Project.--The Secretary shall conduct 
the demonstration project required by subsection (a)--
            (1) during the 2-year period beginning October 1, 2001; and
            (2) in one established TRICARE region.
    (c) Regulations.--The Secretary shall prescribe regulations 
regarding participation in the demonstration project required by 
subsection (a).
    (d) Plan for Project.--Not later than March 31, 2001, the Secretary 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a plan to carry out the demonstration project. 
The plan shall include, but not be limited to, a description of the 
following:
            (1) The TRICARE region in which the project will be 
        conducted.
            (2) The estimated funds required to carry out the 
        demonstration project.
            (3) The criteria for determining which professional mental 
        health counselors will be authorized to participate under the 
        demonstration project.
            (4) The plan of action, including critical milestone dates, 
        for carrying out the demonstration project.
    (e) Report.--Not later than February 1, 2003, the Secretary shall 
submit to Congress a report on the demonstration project carried out 
under this section. The report shall include the following:
            (1) A description of the extent to which expenditures for 
        reimbursement of licensed or certified professional mental 
        health counselors change as a result of allowing the 
        independent practice of such counselors.
            (2) Data on utilization and reimbursement regarding non-
        physician mental health professionals other than licensed or 
        certified professional mental health counselors under CHAMPUS 
        and the TRICARE program.
            (3) Data on utilization and reimbursement regarding 
        physicians who make referrals to, and supervise, mental health 
        counselors.
            (4) A description of the administrative costs incurred as a 
        result of the requirement for documentation of referral to 
        mental health counselors and supervision activities for such 
        counselors.
            (5) For each of the categories described in paragraphs (1) 
        through (4), a comparison of data for a 1-year period for the 
        area in which the demonstration project is being implemented 
        with corresponding data for a similar area in which the 
        demonstration project is not being implemented.
            (6) A description of the ways in which allowing for 
        independent reimbursement of licensed or certified professional 
        mental health counselors affects the confidentiality of mental 
        health and substance abuse services for covered beneficiaries 
        under CHAMPUS and the TRICARE program.
            (7) A description of the effect, if any, of changing 
        reimbursement policies on the health and treatment of covered 
        beneficiaries under CHAMPUS and the TRICARE program, including 
        a comparison of the treatment outcomes of covered beneficiaries 
        who receive mental health services from licensed or certified 
        professional mental health counselors acting under physician 
        referral and supervision, other non-physician mental health 
        providers recognized under CHAMPUS and the TRICARE program, and 
        physicians, with treatment outcomes under the demonstration 
        project allowing independent practice of professional 
        counselors on the same basis as other non-physician mental 
        health providers.
            (8) The effect of policies of the Department of Defense on 
        the willingness of licensed or certified professional mental 
        health counselors to participate as health care providers in 
        CHAMPUS and the TRICARE program.
            (9) Any policy requests or recommendations regarding mental 
        health counselors made by health care plans and managed care 
        organizations participating in CHAMPUS or the TRICARE program.

SEC. 732. TELERADIOLOGY DEMONSTRATION PROJECT.

    (a) Authority To Conduct Project.--(1) The Secretary of Defense may 
conduct a demonstration project for the purposes of increasing 
efficiency of operations with respect to teleradiology at military 
medical treatment facilities, supporting remote clinics, and increasing 
coordination with respect to teleradiology between such facilities and 
clinics. Under the project, a military medical treatment facility and 
each clinic supported by such facility shall be linked by a digital 
radiology network through which digital radiology X-rays may be sent 
electronically from clinics to the military medical treatment facility.
    (2) The demonstration project may be conducted at several 
multispecialty tertiary-care military medical treatment facilities 
affiliated with a university medical school. One of such facilities 
shall be supported by at least 5 geographically dispersed remote 
clinics of the Departments of the Army, Navy, and Air Force, and 
clinics of the Department of Veterans Affairs and the Coast Guard. 
Another of such facilities shall be in an underserved rural geographic 
region served under established telemedicine contracts between the 
Department of Defense, the Department of Veterans Affairs, and a local 
university.
    (b) Duration of Project.--The Secretary shall conduct the project 
during the 2-year period beginning on the date of the enactment of this 
Act.

SEC. 733. HEALTH CARE MANAGEMENT DEMONSTRATION PROGRAM.

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

   Subtitle E--Joint Initiatives With Department of Veterans Affairs

SEC. 741. VA-DOD SHARING AGREEMENTS FOR HEALTH SERVICES.

    (a) Primacy of Sharing Agreements.--The Secretary of Defense 
shall--
            (1) give full force and effect to any agreement into which 
        the Secretary or the Secretary of a military department entered 
        under section 8111 of title 38, United States Code, or under 
        section 1535 of title 31, United States Code, which was in 
        effect on September 30, 1999; and
            (2) ensure that the Secretary of the military department 
        concerned directly reimburses the Secretary of Veterans Affairs 
        for any services or resources provided under such agreement in 
        accordance with the terms of such agreement, including terms 
        providing for reimbursement from funds available for that 
        military department.
    (b) Modification or Termination.--Any agreement described in 
subsection (a) shall remain in effect in accordance with such 
subsection unless, during the 12-month period following the date of the 
enactment of this Act, such agreement is modified or terminated in 
accordance with the terms of such agreement.

SEC. 742. PROCESSES FOR PATIENT SAFETY IN MILITARY AND VETERANS HEALTH 
              CARE SYSTEMS.

    (a) Error Tracking Process.--The Secretary of Defense shall 
implement a centralized process for reporting, compilation, and 
analysis of errors in the provision of health care under the defense 
health program that endanger patients beyond the normal risks 
associated with the care and treatment of such patients. To the extent 
practicable, that process shall emulate the system established by the 
Secretary of Veterans Affairs for reporting, compilation, and analysis 
of errors in the provision of health care under the Department of 
Veterans Affairs health care system that endanger patients beyond such 
risks.
    (b) Sharing of Information.--The Secretary of Defense and the 
Secretary of Veterans Affairs--
            (1) shall share information regarding the designs of 
        systems or protocols established to reduce errors in the 
        provision of health care described in subsection (a); and
            (2) shall develop such protocols as the Secretaries 
        consider necessary for the establishment and administration of 
        effective processes for the reporting, compilation, and 
        analysis of such errors.

SEC. 743. COOPERATION IN DEVELOPING PHARMACEUTICAL IDENTIFICATION 
              TECHNOLOGY.

    The Secretary of Defense and the Secretary of Veterans Affairs 
shall cooperate in developing systems for the use of bar codes for the 
identification of pharmaceuticals in the health care programs of the 
Department of Defense and the Department of Veterans Affairs. In any 
case in which a common pharmaceutical is used in such programs, the bar 
codes for those pharmaceuticals shall, to the maximum extent 
practicable, be identical.

                       Subtitle F--Other Matters

SEC. 751. MANAGEMENT OF ANTHRAX VACCINE IMMUNIZATION PROGRAM.

    (a) System and Procedures for Tracking Separations.--(1) Chapter 59 
of title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 1178. System and procedures for tracking separations resulting 
              from refusal to participate in anthrax vaccine 
              immunization program
    ``(a) Requirement To Establish System.--The Secretary of each 
military department shall establish a system for tracking, recording, 
and reporting separations of members of the armed forces under the 
Secretary's jurisdiction that result from procedures initiated as a 
result of a refusal to participate in the anthrax vaccine immunization 
program.
    ``(b) Report.--The Secretary of Defense shall consolidate the 
information recorded under the system described in subsection (a) and 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives not later than April 1 of each year a report 
on such information. Each such report shall include a description of--
            ``(1) the number of members separated, categorized by 
        military department, grade, and active-duty or reserve status; 
        and
            ``(2) any other information determined appropriate by the 
        Secretary.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1178. System and procedures for tracking separations resulting from 
                            refusal to participate in anthrax vaccine 
                            immunization program.''.
    (b) Procedures for Exemptions; Monitoring Adverse Reactions.--(1) 
Chapter 55 of such title is amended by adding at the end the following 
new section:
``Sec. 1110. Anthrax vaccine immunization program; procedures for 
              exemptions and monitoring reactions
    ``(a) Procedures for Medical and Administrative Exemptions.--(1) 
The Secretary of Defense shall establish uniform procedures under which 
members of the armed forces may be exempted from participating in the 
anthrax vaccine immunization program for either administrative or 
medical reasons.
    ``(2) The Secretaries of the military departments shall provide for 
notification of all members of the armed forces of the procedures 
established pursuant to paragraph (1).
    ``(b) System for Monitoring Adverse Reactions.--(1) The Secretary 
shall establish a system for monitoring adverse reactions of members of 
the armed forces to the anthrax vaccine. That system shall include the 
following:
            ``(A) Independent review of Vaccine Adverse Event Reporting 
        System reports.
            ``(B) Periodic surveys of personnel to whom the vaccine is 
        administered.
            ``(C) A continuing longitudinal study of a pre-identified 
        group of members of the armed forces (including men and women 
        and members from all services).
            ``(D) Active surveillance of a sample of members to whom 
        the anthrax vaccine has been administered that is sufficient to 
        identify, at the earliest opportunity, any patterns of adverse 
        reactions, the discovery of which might be delayed by reliance 
        solely on the Vaccine Adverse Event Reporting System.
    ``(2) The Secretary may extend or expand any ongoing or planned 
study or analysis of trends in adverse reactions of members of the 
armed forces to the anthrax vaccine in order to meet any of the 
requirements in paragraph (1).
    ``(3) The Secretary shall establish guidelines under which members 
of the armed forces who are determined by an independent expert panel 
to be experiencing unexplained adverse reactions may obtain access to a 
Department of Defense Center of Excellence treatment facility for 
expedited treatment and follow up.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1110. Anthrax vaccine immunization program; procedures for exemptions 
                            and monitoring reactions.''.
    (c) Emergency Essential Employees.--(1) Chapter 81 of such title is 
amended by inserting after section 1580 the following new section:
``Sec. 1580a. Emergency essential employees: notification of required 
              participation in anthrax vaccine immunization program
    ``The Secretary of Defense shall--
            ``(1) prescribe regulations for the purpose of ensuring 
        that any civilian employee of the Department of Defense who is 
        determined to be an emergency essential employee and who is 
        required to participate in the anthrax vaccine immunization 
        program is notified of the requirement to participate in the 
        program and the consequences of a decision not to participate; 
        and
            ``(2) ensure that any individual who is being considered 
        for a position as such an employee is notified of the 
        obligation to participate in the program before being offered 
        employment in such position.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1580 the 
following new item:

``1580a. Emergency essential employees: notification of required 
                            participation in anthrax vaccine 
                            immunization program.''.
    (d) Comptroller General Report.--(1) Not later than April 1, 2002, 
the Comptroller General shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a report on the 
effect of the Department of Defense anthrax vaccine immunization 
program on the recruitment and retention of active duty and reserve 
military personnel and civilian personnel of the Department of Defense. 
The study shall cover the period beginning on the date of the enactment 
of this Act and ending on December 31, 2001.
    (2) The Comptroller General shall include in the report required by 
paragraph (1) a description of any personnel actions (including 
transfer, termination, or reassignment of any personnel) taken as a 
result of the refusal of any civilian employee of the Department of 
Defense to participate in the anthrax vaccine immunization program.
    (e) Deadlines for Establishment and Implementation.--The Secretary 
of Defense shall--
            (1) not later than April 1, 2001, establish the uniform 
        procedures for exemption from participation in the anthrax 
        vaccine immunization program of the Department of Defense 
        required under subsection (a) of section 1110 of title 10, 
        United States Code (as added by subsection (b));
            (2) not later than July 1, 2001, establish the system for 
        monitoring adverse reactions of members of the Armed Forces to 
        the anthrax vaccine required under subsection (b)(1) of such 
        section;
            (3) not later than April 1, 2001, establish the guidelines 
        under which members of the Armed Forces may obtain access to a 
        Department of Defense Center of Excellence treatment facility 
        for expedited treatment and follow up required under subsection 
        (b)(3) of such section; and
            (4) not later than July 1, 2001, prescribe the regulations 
        regarding emergency essential employees of the Department of 
        Defense required under subsection (a) of section 1580a of such 
        title (as added by subsection(c)).

SEC. 752. ELIMINATION OF COPAYMENTS FOR IMMEDIATE FAMILY.

    (a) No Copayment for Immediate Family.--Section 1097a of title 10, 
United States Code, is amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) No Copayment for Immediate Family.--No copayment shall be 
charged a member for care provided under TRICARE Prime to a dependent 
of a member of the uniformed services described in subparagraph (A), 
(D), or (I) of section 1072 of this title.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect 180 days after the date of the enactment of this Act, and 
shall apply with respect to care provided on or after that date.

SEC. 753. MEDICAL INFORMATICS.

    (a) Additional Matters for Annual Report on Medical Informatics 
Advisory Committee.--Section 723(d)(5) of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 
697; 10 U.S.C. 1071 note) is amended to read as follows:
    ``(5) The Secretary of Defense shall submit to Congress an annual 
report on medical informatics. The report shall include a discussion of 
the following matters:
            ``(A) The activities of the Committee.
            ``(B) The coordination of development, deployment, and 
        maintenance of health care informatics systems within the 
        Federal Government, and between the Federal Government and the 
        private sector.
            ``(C) The progress or growth occurring in medical 
        informatics.
            ``(D) How the TRICARE program and the Department of 
        Veterans Affairs health care system can use the advancement of 
        knowledge in medical informatics to raise the standards of 
        health care and treatment and the expectations for improving 
        health care and treatment.''.
    (b) Limitation on Fiscal Year 2001 Funding for Pharmaceuticals-
Related Medical Informatics.--Of the funds authorized to be 
appropriated under section 301(22), any amounts used for 
pharmaceuticals-related informatics may be used only for the following:
            (1) Commencement of the implementation of a new 
        computerized medical record, including an automated entry order 
        system for pharmaceuticals and an infrastructure network that 
        is compliant with the provisions enacted in the Health 
        Insurance Portability and Accountability Act of 1996 (Public 
        Law 104-191; 110 Stat. 1936), to make all relevant clinical 
        information on beneficiaries under the Defense Health Program 
        available when needed.
            (2) An integrated pharmacy system under the Defense Health 
        Program that creates a single profile for all pharmaceuticals 
        for such beneficiaries prescribed at military medical treatment 
        facilities or private pharmacies that are part of the 
        Department of Defense pharmacy network.

SEC. 754. PATIENT CARE REPORTING AND MANAGEMENT SYSTEM.

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

SEC. 755. AUGMENTATION OF ARMY MEDICAL DEPARTMENT BY DETAILING RESERVE 
              OFFICERS OF THE PUBLIC HEALTH SERVICE.

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

SEC. 756. PRIVACY OF DEPARTMENT OF DEFENSE MEDICAL RECORDS.

    (a) Comprehensive Plan.--Not later than April 1, 2001, the 
Secretary of Defense shall submit to Congress a comprehensive plan to 
improve privacy protections for medical records maintained by the 
Department of Defense. Such plan shall be consistent with the 
regulations promulgated under section 264(c) of the Health Insurance 
Portability and Accountability Act of 1996 (Public Law 104-191; 42 
U.S.C. 1320d-2 note).
    (b) Interim Regulations.--(1) Notwithstanding any other provision 
of law, the Secretary shall prescribe interim regulations, pending full 
implementation of the comprehensive plan described in subsection (a), 
to improve privacy protections for medical records maintained by the 
Department of Defense.
    (2) The regulations prescribed under paragraph (1) shall provide 
maximum protections for privacy consistent with such actions that the 
Secretary determines are necessary for purposes of national security, 
law enforcement, patient treatment, public health reporting, 
accreditation and licensure review activities, external peer review and 
other quality assurance program activities, payment for health care 
services, fraud and abuse prevention, judicial and administrative 
proceedings, research consistent with regulations on Governmentwide 
protection of human subjects, Department of Veterans Affairs benefit 
programs, and any other purposes identified by the Secretary for the 
responsible management of the military health care system.

SEC. 757. AUTHORITY TO ESTABLISH SPECIAL LOCALITY-BASED REIMBURSEMENT 
              RATES; REPORTS.

    (a) In General.--Section 1079(h) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
    ``(5) To assure access to care for all covered beneficiaries, the 
Secretary of Defense, in consultation with the other administering 
Secretaries, shall designate specific rates for reimbursement for 
services in certain localities if the Secretary determines that without 
payment of such rates access to health care services would be severely 
impaired. Such a determination shall be based on consideration of the 
number of providers in a locality who provide the services, the number 
of such providers who are CHAMPUS participating providers, the number 
of covered beneficiaries under CHAMPUS in the locality, the 
availability of military providers in the location or a nearby 
location, and any other factors determined to be relevant by the 
Secretary.''.
    (b) Reports.--(1) Not later than March 31, 2001, the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives and the General Accounting Office a 
report on actions taken to carry out section 1079(h)(5) of title 10, 
United States Code (as added by subsection (a)) and section 1097b of 
such title.
    (2) Not later than May 1, 2001, the Comptroller General shall 
submit to Congress a report analyzing the utility of--
            (A) increased reimbursement authorities with respect to 
        ensuring the availability of network providers and nonnetwork 
        providers under the TRICARE program to covered beneficiaries 
        under chapter 55 of such title; and
            (B) requiring a reimbursement limitation of 70 percent of 
        usual and customary rates rather than 115 percent of maximum 
        allowable charges under the Civilian Health and Medical Program 
        of the Uniformed Services.
    (3)(A) Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a report 
on the extent to which physicians are choosing not to participate in 
contracts for the furnishing of health care in rural States under 
chapter 55 of title 10, United States Code. The report shall include 
the following:
            (i) The number of physicians in rural States who are 
        withdrawing from participation, or otherwise refusing to 
        participate, in the health care contracts.
            (ii) The reasons for the withdrawals and refusals.
            (iii) The actions that the Secretary of Defense can take to 
        encourage more physicians to participate in the health care 
        contracts.
            (iv) Any recommendations for legislation that the Secretary 
        considers necessary to encourage more physicians to participate 
        in the health care contracts.
    (B) In this paragraph, the term ``rural State'' means a State that 
has, on average, as determined by the Bureau of the Census in the 
latest decennial census--
            (i) fewer than 76 residents per square mile; and
            (ii) fewer than 211 actively practicing physicians (not 
        counting physicians employed by the United States) per 100,000 
        residents.

SEC. 758. REIMBURSEMENT FOR CERTAIN TRAVEL EXPENSES.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1074h (as added by section 706) the 
following new section:
``Sec. 1074i. Reimbursement for certain travel expenses
    ``In any case in which a covered beneficiary is referred by a 
primary care physician to a specialty care provider who provides 
services more than 100 miles from the location in which the primary 
care provider provides services to the covered beneficiary, the 
Secretary shall provide reimbursement for reasonable travel expenses 
for the covered beneficiary.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1074g the following new item:

``1074i. Reimbursement for certain travel expenses.''.

SEC. 759. REDUCTION OF CAP ON PAYMENTS.

    Section 1086(b)(4) of title 10, United States Code, is amended by 
striking ``$7,500'' and inserting ``$3,000''.

SEC. 760. TRAINING IN HEALTH CARE MANAGEMENT AND ADMINISTRATION.

    (a) Expansion of Program.--Section 715(a) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat 
375; 10 U.S.C. 1073 note) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``Not later than six months after the date of the enactment of 
        this Act, the'' and inserting ``The'';
            (2) in paragraph (1)--
                    (A) by inserting ``, deputy commander, and managed 
                care coordinator'' after ``commander''; and
                    (B) by inserting ``, and any other person,'' after 
                ``Defense''; and
            (3) by amending subsection (b) to read as follows:
    ``(b) Limitation on Assignment Until Completion of Training.--No 
person may be assigned as the commander, deputy commander, or managed 
care coordinator of a military medical treatment facility or as a 
TRICARE lead agent or senior member of the staff of a TRICARE lead 
agent office until the Secretary of the military department concerned 
submits a certification to the Secretary of Defense that such person 
has completed the training described in subsection (a).''.
    (b) Report Requirement.--(1) Not later than 18 months after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report on progress in meeting the requirements of 
section 715 of such Act (as amended by subsection (a)) by implementing 
a professional educational program to provide appropriate training in 
health care management and administration.
    (2) The report required by paragraph (1) shall include the 
following:
            (A) A survey of professional civilian certifications and 
        credentials which demonstrate achievement of the requirements 
        of such section.
            (B) A description of the continuing education activities 
        required to obtain initial certification and periodic required 
        recertification.
            (C) A description of the prominence of such credentials or 
        certifications among senior civilian health care executives.
    (c) Applicability.--The amendments made by subsection (a) to 
section 715 of such Act--
            (1) shall apply to a deputy commander, a managed care 
        coordinator of a military medical treatment facility, or a lead 
        agent for coordinating the delivery of health care by military 
        and civilian providers under the TRICARE program, who is 
        assigned to such position on or after the date that is one year 
        after the date of the enactment of this Act; and
            (2) may apply, in the discretion of the Secretary of 
        Defense, to a deputy commander, a managed care coordinator of 
        such a facility, or a lead agent for coordinating the delivery 
        of such health care, who is assigned to such position before 
        the date that is one year after the date of the enactment of 
        this Act.

SEC. 761. STUDIES ON FEASIBILITY OF SHARING BIOMEDICAL RESEARCH 
              FACILITY.

    (a) Studies Required.--(1) The Secretary of the Army shall conduct 
a study on the feasibility of the Tripler Army Medical Center, Hawaii, 
sharing a biomedical research facility with the Department of Veterans 
Affairs and the School of Medicine at the University of Hawaii for the 
purpose of making more efficient use of funding for biomedical 
research.
    (2) The Secretary of the Air Force shall conduct a study on the 
feasibility of the Little Rock Medical Facility, Arkansas, sharing a 
biomedical research facility with the Department of Veterans Affairs 
and the School of Medicine at the University of Arkansas for the 
purpose of making more efficient use of funding for biomedical 
research.
    (3) The biomedical research facilities described in paragraphs (1) 
and (2) would include a clinical research center and facilities for 
educational, academic, and laboratory research.
    (b) Reports.--Not later than March 1, 2001--
            (1) the Secretary of the Army shall submit to the 
        Committees on Armed Services of the House of Representatives 
        and the Senate a report on the study conducted under subsection 
        (a)(1); and
            (2) the Secretary of the Air Force shall submit to such 
        committees a report on the study conducted under subsection 
        (a)(2).

SEC. 762. STUDY ON COMPARABILITY OF COVERAGE FOR PHYSICAL, SPEECH, AND 
              OCCUPATIONAL THERAPIES.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
comparing coverage and reimbursement for covered beneficiaries under 
chapter 55 of title 10, United States Code, for physical, speech, and 
occupational therapies under the TRICARE program and the Civilian 
Health and Medical Program of the Uniformed Services to coverage and 
reimbursement for such therapies by insurers under Medicare and the 
Federal Employees Health Benefits Program. The study shall examine the 
following:
            (1) Types of services covered.
            (2) Whether prior authorization is required to receive such 
        services.
            (3) Reimbursement limits for services covered.
            (4) Whether services are covered on both an inpatient and 
        outpatient basis.
    (b) Report.--Not later than March 31, 2001, the Secretary shall 
submit a report on the findings of the study conducted under this 
section to the Committees on Armed Services of the Senate and the House 
of Representatives.

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

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 801. Department of Defense acquisition pilot programs.
Sec. 802. Multiyear services contracts.
Sec. 803. Clarification and extension of authority to carry out certain 
                            prototype projects.
Sec. 804. Clarification of authority of Comptroller General to review 
                            records of participants in certain 
                            prototype projects.
Sec. 805. Extension of time period of limitation on procurement of ball 
                            bearings and roller bearings.
Sec. 806. Reporting requirements relating to multiyear contracts.
Sec. 807. Eligibility of small business concerns owned and controlled 
                            by women for assistance under the mentor-
                            protege program.
Sec. 808. Qualifications required for employment and assignment in 
                            contracting positions.
Sec. 809. Revision of authority for solutions-based contracting pilot 
                            program.
Sec. 810. Procurement notice of contracting opportunities through 
                            electronic means.
                   Subtitle B--Information Technology

Sec. 811. Acquisition and management of information technology.
Sec. 812. Tracking and management of information technology purchases.
Sec. 813. Appropriate use of requirements regarding experience and 
                            education of contractor personnel in the 
                            procurement of information technology 
                            services.
Sec. 814. Navy-Marine Corps Intranet.
Sec. 815. Sense of Congress regarding information technology systems 
                            for Guard and Reserve components.
             Subtitle C--Other Acquisition-Related Matters

Sec. 821. Improvements in procurements of services.
Sec. 822. Financial analysis of use of dual rates for quantifying 
                            overhead costs at Army ammunition plants.
Sec. 823. Repeal of prohibition on use of Department of Defense funds 
                            for procurement of nuclear-capable shipyard 
                            crane from a foreign source.
Sec. 824. Extension of waiver period for live-fire survivability 
                            testing for MH-47E and MH-60K helicopter 
                            modification programs.
Sec. 825. Compliance with existing law regarding purchases of equipment 
                            and products.
Sec. 826. Requirement to disregard certain agreements in awarding 
                            contracts for the purchase of firearms or 
                            ammunition.
                    Subtitle D--Studies and Reports

Sec. 831. Study on impact of foreign sourcing of systems on long-term 
                            military readiness and related industrial 
                            infrastructure.
Sec. 832. Study of policies and procedures for transfer of commercial 
                            activities.
Sec. 833. Study and report on practice of contract bundling in military 
                            construction contracts.
Sec. 834. Requirement to conduct study on contract bundling.

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

SEC. 801. DEPARTMENT OF DEFENSE ACQUISITION PILOT PROGRAMS.

    (a) Extension of Authority.--Section 5064(d)(2) of the Federal 
Acquisition Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 
3361; 10 U.S.C. 2430 note) is amended by striking ``45 days after the 
date of the enactment of this Act and ends on September 30, 1998'' and 
inserting ``on October 13, 1994, and ends on October 1, 2007''.
    (b) Expansion of JDAM Program.--Section 5064(a)(2) of such Act is 
amended by striking ``1000-pound and 2000-pound bombs'' and inserting 
``500-pound, 1000-pound, and 2000-pound bombs''.
    (c) Report Required.--(1) Not later than January 1, 2001, the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the House of Representatives and the Senate a report on the 
acquisition pilot programs of the Department of Defense. The report 
shall describe, for each acquisition program identified in section 
5064(a) of the Federal Acquisition Streamlining Act of 1994, the 
following:
            (A) Each quantitative measure and goal established for each 
        item described in paragraph (2), which of such goals have been 
        achieved, and the extent to which the use of the authorities in 
        section 809 of the National Defense Authorization Act for 
        Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2430 note) and 
        section 5064 of the Federal Acquisition Streamlining Act of 
        1994 was a factor in achieving each of such goals.
            (B) Recommended revisions to statutes or the Federal 
        Acquisition Regulation as a result of participation in the 
        pilot program.
            (C) Any innovative business practices developed as a result 
        of participation in the pilot program, whether such business 
        practices could be applied to other acquisition programs, and 
        any impediments to application of such practices to other 
        programs.
            (D) Technological changes to the program, and to what 
        extent those changes affected the items in paragraph (2).
            (E) Any other information determined appropriate by the 
        Secretary.
    (2) The items under this paragraph are, with respect to defense 
acquisition programs, the following:
            (A) The acquisition management costs.
            (B) The unit cost of the items procured.
            (C) The acquisition cycle.
            (D) The total cost of carrying out the contract.
            (E) Staffing necessary to carry out the program.

SEC. 802. MULTIYEAR SERVICES CONTRACTS.

    (a) In General.--(1) Chapter 137 of title 10, United States Code, 
is amended by inserting after section 2306b the following:
``Sec. 2306c. Multiyear contracts: acquisition of services
    ``(a) Authority.--Subject to subsections (d) and (e), the head of 
an agency may enter into contracts for periods of not more than five 
years for services described in subsection (b), and for items of supply 
related to such services, for which funds would otherwise be available 
for obligation only within the fiscal year for which appropriated 
whenever the head of the agency finds that--
            ``(1) there will be a continuing requirement for the 
        services consonant with current plans for the proposed contract 
        period;
            ``(2) the furnishing of such services will require a 
        substantial initial investment in plant or equipment, or the 
        incurrence of substantial contingent liabilities for the 
        assembly, training, or transportation of a specialized work 
        force; and
            ``(3) the use of such a contract will promote the best 
        interests of the United States by encouraging effective 
        competition and promoting economies in operation.
    ``(b) Covered Services.--The authority under subsection (a) applies 
to the following types of services:
            ``(1) Operation, maintenance, and support of facilities and 
        installations.
            ``(2) Maintenance or modification of aircraft, ships, 
        vehicles, and other highly complex military equipment.
            ``(3) Specialized training necessitating high quality 
        instructor skills (for example, pilot and air crew members; 
        foreign language training).
            ``(4) Base services (for example, ground maintenance; in-
        plane refueling; bus transportation; refuse collection and 
        disposal).
    ``(c) Applicable Principles.--In entering into multiyear contracts 
for services under the authority of this section, the head of the 
agency shall be guided by the following principles:
            ``(1) The portion of the cost of any plant or equipment 
        amortized as a cost of contract performance should not exceed 
        the ratio between the period of contract performance and the 
        anticipated useful commercial life of such plant or equipment. 
        Useful commercial life, for this purpose, means the commercial 
        utility of the facilities rather than the physical life 
        thereof, with due consideration given to such factors as 
        location of facilities, specialized nature thereof, and 
        obsolescence.
            ``(2) Consideration shall be given to the desirability of 
        obtaining an option to renew the contract for a reasonable 
        period not to exceed three years, at prices not to include 
        charges for plant, equipment and other nonrecurring costs, 
        already amortized.
            ``(3) Consideration shall be given to the desirability of 
        reserving in the agency the right, upon payment of the 
        unamortized portion of the cost of the plant or equipment, to 
        take title thereto under appropriate circumstances.
    ``(d) Restrictions Applicable Generally.--(1) The head of an agency 
may not initiate under this section a contract for services that 
includes an unfunded contingent liability in excess of $20,000,000 
unless the committees of Congress named in paragraph (5) are notified 
of the proposed contract at least 30 days in advance of the award of 
the proposed contract.
    ``(2) The head of an agency may not initiate a multiyear contract 
for services under this section if the value of the multiyear contract 
would exceed $500,000,000 unless authority for the contract is 
specifically provided by law.
    ``(3) The head of an agency may not terminate a multiyear 
procurement contract for services until 10 days after the date on which 
notice of the proposed termination is provided to the committees of 
Congress named in paragraph (5).
    ``(4) Before any contract described in subsection (a) that contains 
a clause setting forth a cancellation ceiling in excess of $100,000,000 
may be awarded, the head of the agency concerned shall give written 
notification of the proposed contract and of the proposed cancellation 
ceiling for that contract to the committees of Congress named in 
paragraph (5), and such contract may not then be awarded until the end 
of a period of 30 days beginning on the date of such notification.
    ``(5) The committees of Congress referred to in paragraphs (1), 
(3), and (4) are as follows:
            ``(A) The Committee on Armed Services and the Committee on 
        Appropriations of the Senate.
            ``(B) The Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives.
    ``(e) Cancellation or Termination for Insufficient Funding After 
First Year.--In the event that funds are not made available for the 
continuation of a multiyear contract for services into a subsequent 
fiscal year, the contract shall be canceled or terminated, and the 
costs of cancellation or termination may be paid from--
            ``(1) appropriations originally available for the 
        performance of the contract concerned;
            ``(2) appropriations currently available for procurement of 
        the type of services concerned, and not otherwise obligated; or
            ``(3) funds appropriated for those payments.
    ``(f) Multiyear Contract Defined.--For the purposes of this 
section, a multiyear contract is a contract for the purchase of 
services for more than one, but not more than five, program years. Such 
a contract may provide that performance under the contract during the 
second and subsequent years of the contract is contingent upon the 
appropriation of funds and (if it does so provide) may provide for a 
cancellation payment to be made to the contractor if such 
appropriations are not made.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2306b the 
following:

``2306c. Multiyear contracts: acquisition of services.''.
    (b) Reference to Relocated Authority.--Subsection (g) of section 
2306 of such title is amended to read as follows:
    ``(g) Multiyear contracting authority for the acquisition of 
services is provided in section 2306c of this title.''.
    (c) Conforming Amendment.--Section 2306b(k) of title 10, United 
States Code, is amended by striking ``or services''.
    (d) Applicability.--Section 2306c of title 10, United States Code 
(as added by subsection (a)), shall apply with respect to contracts for 
which solicitations of offers are issued after the date of the 
enactment of this Act.

SEC. 803. CLARIFICATION AND EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN 
              PROTOTYPE PROJECTS.

    (a) Amendments to Authority.--Section 845 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 
2371 note) is amended--
            (1) by redesignating subsection (d) as subsection (f); and
            (2) by inserting after subsection (c) the following new 
        subsections:
    ``(d) Appropriate Use of Authority.--(1) The Secretary of Defense 
shall ensure that no official of an agency enters into a transaction 
(other than a contract, grant, or cooperative agreement) for a 
prototype project under the authority of this section unless--
            ``(A) there is at least one nontraditional defense 
        contractor participating to a significant extent in the 
        prototype project; or
            ``(B) no nontraditional defense contractor is participating 
        to a significant extent in the prototype project, but at least 
        one of the following circumstances exists:
                    ``(i) At least one third of the total cost of the 
                prototype project is to be paid out of funds provided 
                by parties to the transaction other than the Federal 
                Government.
                    ``(ii) The senior procurement executive for the 
                agency (as designated for the purposes of section 16(3) 
                of the Office of Federal Procurement Policy Act (41 
                U.S.C. 414(3)) determines in writing that exceptional 
                circumstances justify the use of a transaction that 
                provides for innovative business arrangements or 
                structures that would not be feasible or appropriate 
                under a contract.
    ``(2)(A) Except as provided in subparagraph (B), the amounts 
counted for the purposes of this subsection as being provided, or to be 
provided, by a party to a transaction with respect to a prototype 
project that is entered into under this section other than the Federal 
Government do not include costs that were incurred before the date on 
which the transaction becomes effective.
    ``(B) Costs that were incurred for a prototype project by a party 
after the beginning of negotiations resulting in a transaction (other 
than a contract, grant, or cooperative agreement) with respect to the 
project before the date on which the transaction becomes effective may 
be counted for purposes of this subsection as being provided, or to be 
provided, by the party to the transaction if and to the extent that the 
official responsible for entering into the transaction determines in 
writing that--
            ``(i) the party incurred the costs in anticipation of 
        entering into the transaction; and
            ``(ii) it was appropriate for the party to incur the costs 
        before the transaction became effective in order to ensure the 
        successful implementation of the transaction.
    ``(e) Nontraditional Defense Contractor Defined.--In this section, 
the term `nontraditional defense contractor' means an entity that has 
not, for a period of at least one year prior to the date that a 
transaction (other than a contract, grant, or cooperative agreement) 
for a prototype project under the authority of this section is entered 
into, entered into or performed with respect to--
            ``(1) any contract that is subject to full coverage under 
        the cost accounting standards prescribed pursuant to section 26 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 422) 
        and the regulations implementing such section; or
            ``(2) any other contract in excess of $500,000 to carry out 
        prototype projects or to perform basic, applied, or advanced 
        research projects for a Federal agency, that is subject to the 
        Federal Acquisition Regulation.''.
    (b) Extension of Authority.--Subsection (f) of such section, as 
redesignated by subsection (a)(1), is amended by striking ``September 
30, 2001'' and inserting ``September 30, 2004''.

SEC. 804. CLARIFICATION OF AUTHORITY OF COMPTROLLER GENERAL TO REVIEW 
              RECORDS OF PARTICIPANTS IN CERTAIN PROTOTYPE PROJECTS.

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

SEC. 805. EXTENSION OF TIME PERIOD OF LIMITATION ON PROCUREMENT OF BALL 
              BEARINGS AND ROLLER BEARINGS.

    Section 2534(c)(3) of title 10, United States Code, is amended by 
striking ``October 1, 2000'' and inserting ``October 1, 2005''.

SEC. 806. REPORTING REQUIREMENTS RELATING TO MULTIYEAR CONTRACTS.

    Section 2306b(l) of title 10, United States Code, is amended--
            (1) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``The head of an agency'' and all that follows 
                through ``following information'' and inserting ``Not 
                later than the date of the submission of the 
                President's budget request under section 1105 of title 
                31, the Secretary of Defense shall submit a report to 
                the congressional defense committees each year, 
                providing the following information with respect to 
                each multiyear contract (and each extension of an 
                existing multiyear contract) entered into, or planned 
                to be entered into, by the head of an agency during the 
                current or preceding year''; and
                    (B) in subparagraph (B), by striking ``in effect 
                immediately before the contract (or contract extension) 
                is entered into'' and inserting ``in effect at the time 
                the report is submitted'';
            (2) by redesignating paragraphs (5) through (9) as 
        paragraphs (6) through (10), respectively; and
            (3) by inserting after paragraph (4) the following new 
        paragraph (5):
    ``(5) The head of an agency may not enter into a multiyear contract 
(or extend an existing multiyear contract), the value of which would 
exceed $500,000,000 (when entered into or when extended, as the case 
may be), until the Secretary of Defense submits to the congressional 
defense committees a report containing the information described in 
paragraph (4) with respect to the contract (or contract extension).''.

SEC. 807. ELIGIBILITY OF SMALL BUSINESS CONCERNS OWNED AND CONTROLLED 
              BY WOMEN FOR ASSISTANCE UNDER THE MENTOR-PROTEGE PROGRAM.

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

SEC. 808. QUALIFICATIONS REQUIRED FOR EMPLOYMENT AND ASSIGNMENT IN 
              CONTRACTING POSITIONS.

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

SEC. 809. REVISION OF AUTHORITY FOR SOLUTIONS-BASED CONTRACTING PILOT 
              PROGRAM.

    (a) Pilot Projects Under the Program.--Section 5312 of the Clinger-
Cohen Act of 1996 (40 U.S.C. 1492) is amended--
            (1) in subsection (a), by striking ``subsection (d)(2)'' 
        and inserting ``subsection (d)''; and
            (2) by striking subsection (d) and inserting the following:
    ``(d) Pilot Program Projects.--The Administrator shall authorize to 
be carried out under the pilot program--
            ``(1) not more than 10 projects, each of which has an 
        estimated cost of at least $25,000,000 and not more than 
        $100,000,000; and
            ``(2) not more than 10 projects for small business 
        concerns, each of which has an estimated cost of at least 
        $1,000,000 and not more than $5,000,000.''.
    (b) Elimination of Requirement for Federal Funding of Program 
Definition Phase.--Subsection (c)(9)(B) of such section is amended by 
striking ``program definition phase (funded, in the case of the source 
ultimately awarded the contract, by the Federal Government)--'' and 
inserting ``program definition phase--''.

SEC. 810. PROCUREMENT NOTICE OF CONTRACTING OPPORTUNITIES THROUGH 
              ELECTRONIC MEANS.

    (a) Publication by Electronic Means.--Subsection (a) of section 18 
of the Office of Federal Procurement Policy Act (41 U.S.C. 416) is 
amended--
            (1) in paragraph (1)(A), by striking ``furnish for 
        publication by the Secretary of Commerce'' and inserting 
        ``publish'';
            (2) by striking paragraph (2) and inserting the following:
    ``(2)(A) A notice of solicitation required to be published under 
paragraph (1) may be published--
            ``(i) by electronic means that meets the requirements for 
        accessibility under paragraph (7); or
            ``(ii) by the Secretary of Commerce in the Commerce 
        Business Daily.
    ``(B) The Secretary of Commerce shall promptly publish in the 
Commerce Business Daily each notice or announcement received under this 
subsection for publication by that means.''; and
            (3) by adding at the end the following:
    ``(7) A publication of a notice of solicitation by electronic means 
meets the requirements for accessibility under this paragraph if the 
notice is electronically accessible in a form that allows convenient 
and universal user access through the single Government-wide point of 
entry designated in the Federal Acquisition Regulation.''.
    (b) Waiting Period for Issuance of Solicitation.--Paragraph (3) of 
such subsection is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``furnish a notice to the Secretary of Commerce'' and inserting 
        ``publish a notice of solicitation''; and
            (2) in subparagraph (A), by striking ``by the Secretary of 
        Commerce''.
    (c) Conforming Amendments To Small Business Act.--Subsection (e) of 
section 8 of the Small Business Act (15 U.S.C. 637) is amended--
            (1) in paragraph (1)(A), by striking ``furnish for 
        publication by the Secretary of Commerce'' and inserting 
        ``publish'';
            (2) by striking paragraph (2) and inserting the following:
    ``(2)(A) A notice of solicitation required to be published under 
paragraph (1) may be published--
            ``(i) by electronic means that meet the accessibility 
        requirements under section 18(a)(7) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 416(a)(7)); or
            ``(ii) by the Secretary of Commerce in the Commerce 
        Business Daily.
    ``(B) The Secretary of Commerce shall promptly publish in the 
Commerce Business Daily each notice or announcement received under this 
subsection for publication by that means.''; and
            (3) in paragraph (3)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``furnish a notice to the Secretary of 
                Commerce'' and inserting ``publish a notice of 
                solicitation''; and
                    (B) in subparagraph (A), by striking ``by the 
                Secretary of Commerce''.
    (d) Periodic Reports on Implementation of Electronic Commerce in 
Federal Procurement.--Section 30(e) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 426(e)) is amended--
            (1) in the first sentence, by striking ``Not later than 
        March 1, 1998, and every year afterward through 2003'' and 
        inserting ``Not later than March 1 of each even-numbered year 
        through 2004''; and
            (2) in paragraph (4)--
                    (A) by striking ``Beginning with the report 
                submitted on March 1, 1999, an'' and inserting ``An''; 
                and
                    (B) by striking ``calendar year'' and inserting 
                ``two fiscal years''.
    (e) Effective Date; Applicability.--The amendments made by this 
section shall take effect on October 1, 2000. The amendments made by 
subsections (a), (b), and (c) shall apply with respect to solicitations 
issued on or after that date.

                   Subtitle B--Information Technology

SEC. 811. ACQUISITION AND MANAGEMENT OF INFORMATION TECHNOLOGY.

    (a) Responsibility of DOD Chief Information Officer Relating to 
Mission Critical and Mission Essential Information Technology 
Systems.--Section 2223(a) of title 10, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) maintain a consolidated inventory of Department of 
        Defense mission critical and mission essential information 
        systems, identify interfaces between those systems and other 
        information systems, and develop and maintain contingency plans 
        for responding to a disruption in the operation of any of those 
        information systems.''.
    (b) Minimum Planning Requirements for the Acquisition of 
Information Technology Systems.--(1) Not later than 60 days after the 
date of the enactment of this Act, Department of Defense Directive 
5000.1 shall be revised to establish minimum planning requirements for 
the acquisition of information technology systems.
    (2) The revised directive required by (1) shall--
            (A) include definitions of the terms ``mission critical 
        information system'' and ``mission essential information 
        system'';
            (B) prohibit the award of any contract for the acquisition 
        of a mission critical or mission essential information 
        technology system until--
                    (i) the system has been registered with the Chief 
                Information Officer of the Department of Defense;
                    (ii) the Chief Information Officer has received all 
                information on the system that is required under the 
                directive to be provided to that official; and
                    (iii) the Chief Information Officer has determined 
                that there is in place for the system an appropriate 
                information assurance strategy; and
            (C) require that, in the case of each system registered 
        pursuant to subparagraph (B)(i), the information required under 
        subparagraph (B)(ii) to be submitted as part of the 
        registration shall be updated on not less than a quarterly 
        basis.
    (c) Milestone Approval for Major Automated Information Systems.--
The revised directive required by subsection (b) shall prohibit 
Milestone I approval, Milestone II approval, or Milestone III approval 
(or the equivalent) of a major automated information system within the 
Department of Defense until the Chief Information Officer has 
determined that--
            (1) the system is being developed in accordance with the 
        requirements of division E of the Clinger-Cohen Act of 1996 (40 
        U.S.C. 1401 et seq.);
            (2) appropriate actions have been taken with respect to the 
        system in the areas of business process reengineering, analysis 
        of alternatives, economic analysis, and performance measures; 
        and
            (3) the system has been registered as described in 
        subsection (b)(2)(B).
    (d) Notice of Redesignation of Systems.--(1) Whenever during fiscal 
year 2001, 2002, or 2003 the Chief Information Officer designates a 
system previously designated as a major automated information system to 
be in a designation category other than a major automated information 
system, the Chief Information Officer shall notify the congressional 
defense committees of that designation. The notice shall be provided 
not later than 30 days after the date of that designation. Any such 
notice shall include the rationale for the decision to make the 
designation and a description of the program management oversight that 
will be implemented for the system so designated.
    (2) Not later than 60 days after the date of the enactment of this 
Act, the Chief Information Officer shall submit to the congressional 
defense committees a report specifying each information system of the 
Department of Defense previously designated as a major automated 
information system that is currently designated in a designation 
category other than a major automated information system including 
designation as a ``special interest major technology initiative''. The 
report shall include for each such system the information specified in 
the third sentence of paragraph (1).
    (e) Annual Implementation Report.--(1) The Secretary of Defense 
shall submit to the congressional defense committees, not later than 
April 1 of each of fiscal years 2001, 2002, and 2003, a report on the 
implementation of the requirements of this section during the preceding 
fiscal year.
    (2) The report for a fiscal year under paragraph (1) shall include, 
at a minimum, for each major automated information system that was 
approved during such preceding fiscal year under Department of Defense 
Directive 5000.1 (as revised pursuant to subsection (b)), the 
following:
            (A) The funding baseline.
            (B) The milestone schedule.
            (C) The actions that have been taken to ensure compliance 
        with the requirements of this section and the directive.
    (3) The first report shall include, in addition to the information 
required by paragraph (2), an explanation of the manner in which the 
responsible officials within the Department of Defense have addressed, 
or intend to address, the following acquisition issues for each major 
automated information system planned to be acquired after that fiscal 
year:
            (A) Requirements definition.
            (B) Presentation of a business case analysis, including an 
        analysis of alternatives and a calculation of return on 
        investment.
            (C) Performance measurement.
            (D) Test and evaluation.
            (E) Interoperability.
            (F) Cost, schedule, and performance baselines.
            (G) Information assurance.
            (H) Incremental fielding and implementation.
            (I) Risk mitigation.
            (J) The role of integrated product teams.
            (K) Issues arising from implementation of the Command, 
        Control, Communications, Computers, Intelligence, Surveillance, 
        and Reconnaissance Plan required by Department of Defense 
        Directive 5000.1 and Chairman of the Joint Chiefs of Staff 
        Instruction 3170.01.
            (L) Oversight, including the Chief Information Officer's 
        oversight of decision reviews.
    (f) Definitions.--In this section:
            (1) The term ``Chief Information Officer'' means the senior 
        official of the Department of Defense designated by the 
        Secretary of Defense pursuant to section 3506 of title 44, 
        United States Code.
            (2) The term ``information technology system'' has the 
        meaning given the term ``information technology'' in section 
        5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
            (3) The term ``major automated information system'' has the 
        meaning given that term in Department of Defense Directive 
        5000.1.

SEC. 812. TRACKING AND MANAGEMENT OF INFORMATION TECHNOLOGY PURCHASES.

    (a) In General.--(1) Chapter 131 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 2225. Information technology purchases: tracking and management
    ``(a) Collection of Data Required.--To improve tracking and 
management of information technology products and services by the 
Department of Defense, the Secretary of Defense shall provide for the 
collection of the data described in subsection (b) for each purchase of 
such products or services made by a military department or Defense 
Agency in excess of the simplified acquisition threshold, regardless of 
whether such a purchase is made in the form of a contract, task order, 
delivery order, military interdepartmental purchase request, or any 
other form of interagency agreement.
    ``(b) Data To Be Collected.--The data required to be collected 
under subsection (a) includes the following:
            ``(1) The products or services purchased.
            ``(2) Whether the products or services are categorized as 
        commercially available off-the-shelf items, other commercial 
        items, nondevelopmental items other than commercial items, 
        other noncommercial items, or services.
            ``(3) The total dollar amount of the purchase.
            ``(4) The form of contracting action used to make the 
        purchase.
            ``(5) In the case of a purchase made through an agency 
        other than the Department of Defense--
                    ``(A) the agency through which the purchase is 
                made; and
                    ``(B) the reasons for making the purchase through 
                that agency.
            ``(6) The type of pricing used to make the purchase 
        (whether fixed price or another type of pricing).
            ``(7) The extent of competition provided in making the 
        purchase.
            ``(8) A statement regarding whether the purchase was made 
        from--
                    ``(A) a small business concern;
                    ``(B) a small business concern owned and controlled 
                by socially and economically disadvantaged individuals; 
                or
                    ``(C) a small business concern owned and controlled 
                by women.
            ``(9) A statement regarding whether the purchase was made 
        in compliance with the planning requirements under sections 
        5122 and 5123 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1422, 
        1423).
    ``(c) Responsibility To Ensure Fairness of Certain Prices.--The 
head of each contracting activity in the Department of Defense shall 
have responsibility for ensuring the fairness and reasonableness of 
unit prices paid by the contracting activity for information technology 
products and services that are frequently purchased commercially 
available off-the-shelf items.
    ``(d) Limitation on Certain Purchases.--No purchase of information 
technology products or services in excess of the simplified acquisition 
threshold shall be made for the Department of Defense from a Federal 
agency outside the Department of Defense unless--
            ``(1) the purchase data is collected in accordance with 
        subsection (a); or
            ``(2)(A) in the case of a purchase by a Defense Agency, the 
        purchase is approved by the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics; or
            ``(B) in the case of a purchase by a military department, 
        the purchase is approved by the senior procurement executive of 
        the military department.
    ``(e) Annual Report.--Not later than March 15 of each year, the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report containing a 
summary of the data collected in accordance with subsection (a).
    ``(f) Definitions.--In this section:
            ``(1) The term `senior procurement executive', with respect 
        to a military department, means the official designated as the 
        senior procurement executive for the military department for 
        the purposes of section 16(3) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 414(3)).
            ``(2) The term `simplified acquisition threshold' has the 
        meaning given the term in section 4(11) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403(11)).
            ``(3) The term `small business concern' means a business 
        concern that meets the applicable size standards prescribed 
        pursuant to section 3(a) of the Small Business Act (15 U.S.C. 
        632(a)).
            ``(4) The term `small business concern owned and controlled 
        by socially and economically disadvantaged individuals' has the 
        meaning given that term in section 8(d)(3)(C) of the Small 
        Business Act (15 U.S.C. 637(d)(3)(C)).
            ``(5) The term `small business concern owned and controlled 
        by women' has the meaning given that term in section 8(d)(3)(D) 
        of the Small Business Act (15 U.S.C. 637(d)(3)(D)).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``2225. Information technology purchases: tracking and management.''.
    (b) Time for Implementation; Applicability.--(1) The Secretary of 
Defense shall collect data as required under section 2225 of title 10, 
United States Code (as added by subsection (a)) for all contractual 
actions covered by such section entered into on or after the date that 
is one year after the date of the enactment of this Act.
    (2) Subsection (d) of such section shall apply with respect to 
purchases described in that subsection for which solicitations of 
offers are issued on or after the date that is one year after the date 
of the enactment of this Act.
    (c) GAO Report.--Not later than 15 months after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
congressional defense committees a report on the collection of data 
under such section 2225. The report shall include the Comptroller 
General's assessment of the extent to which the collection of data 
meets the requirements of that section.

SEC. 813. APPROPRIATE USE OF REQUIREMENTS REGARDING EXPERIENCE AND 
              EDUCATION OF CONTRACTOR PERSONNEL IN THE PROCUREMENT OF 
              INFORMATION TECHNOLOGY SERVICES.

    (a) Amendment of the Federal Acquisition Regulation.--Not later 
than 180 days after the date of the enactment of this Act, the Federal 
Acquisition Regulation issued in accordance with sections 6 and 25 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 405 and 421) 
shall be amended to address the use, in the procurement of information 
technology services, of requirements regarding the experience and 
education of contractor personnel.
    (b) Content of Amendment.--The amendment issued pursuant to 
subsection (a) shall, at a minimum, provide that solicitations for the 
procurement of information technology services shall not set forth any 
minimum experience or educational requirement for proposed contractor 
personnel in order for a bidder to be eligible for award of a contract 
unless--
            (1) the contracting officer first determines that the needs 
        of the executive agency cannot be met without any such 
        requirement; or
            (2) the needs of the executive agency require the use of a 
        type of contract other than a performance-based contract.
    (c) GAO Report.--Not later than one year after the date on which 
the regulations required by subsection (a) are published in the Federal 
Register, the Comptroller General shall submit to Congress an 
evaluation of--
            (1) executive agency compliance with the regulations; and
            (2) conformance of the regulations with existing law, 
        together with any recommendations that the Comptroller General 
        considers appropriate.
    (d) Definitions.--In this section:
            (1) 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)).
            (2) The term ``information technology'' has the meaning 
        given that term in section 5002(3) of the Clinger-Cohen Act of 
        1996 (40 U.S.C. 1401(3)).
            (3) The term ``performance-based'', with respect to a 
        contract, means that the contract includes the use of 
        performance work statements that set forth contract 
        requirements in clear, specific, and objective terms with 
        measurable outcomes.

SEC. 814. NAVY-MARINE CORPS INTRANET.

    (a) Limitation.--None of the funds authorized to be appropriated 
for the Department of the Navy may be obligated or expended to carry 
out a Navy-Marine Corps Intranet contract before--
            (1) the Comptroller of the Department of Defense and the 
        Director of the Office of Management and Budget--
                    (A) have reviewed--
                            (i) the Report to Congress on the Navy-
                        Marine Corps Intranet submitted by the 
                        Department of the Navy on June 30, 2000; and
                            (ii) the Business Case Analysis Supplement 
                        for the Report to Congress on the Navy-Marine 
                        Corps Intranet submitted by the Department of 
                        the Navy on July 15, 2000; and
                    (B) have provided their written comments to the 
                Secretary of the Navy and the Chief of Naval 
                Operations; and
            (2) the Secretary of the Navy and the Chief of Naval 
        Operations have submitted to Congress a joint certification 
        that they have reviewed the business case for the contract and 
        the comments provided by the Comptroller of the Department of 
        Defense and the Director of the Office of Management and Budget 
        and that they have determined that the implementation of the 
        contract is in the best interest of the Department of the Navy.
    (b) Phased Implementation--(1) Upon the submission of the 
certification under subsection (a)(2), the Secretary of the Navy may 
commence a phased implementation of a Navy-Marine Corps Intranet 
contract.
    (2) Not more than 15 percent of the total number of work stations 
to be provided under the Navy-Marine Corps Intranet program may be 
provided in the first increment of implementation of the Navy-Marine 
Corps Intranet contract.
    (3) No work stations in excess of the number permitted by paragraph 
(2) may be provided under the program until--
            (A) the Secretary of the Navy has conducted operational 
        testing and cost review of the increment covered by that 
        paragraph;
            (B) the Chief Information Officer of the Department of 
        Defense has certified to the Secretary of the Navy that the 
        results of the operational testing of the Intranet are 
        acceptable;
            (C) the Comptroller of the Department of Defense has 
        certified to the Secretary of the Navy that the cost review 
        provides a reliable basis for forecasting the cost impact of 
        continued implementation; and
            (D) the Secretary of the Navy and the Chief of Naval 
        Operations have submitted to Congress a joint certification 
        that they have reviewed the certifications submitted under 
        subparagraphs (B) and (C) and have determined that the 
        continued implementation of the contract is in the best 
        interest of the Department of the Navy.
    (4) No increment of the Navy-Marine Corps Intranet that is 
implemented during fiscal year 2001 may include any activities of the 
Marine Corps, the naval shipyards, or the naval aviation depots. Funds 
available for fiscal year 2001 for activities of the Marine Corps, the 
naval shipyards, or the naval aviation depots may not be expended for 
any contract for the Navy-Marine Corps Intranet.
    (c) Prohibition on Increase of Rates Charged.--The Secretary of the 
Navy shall ensure that rates charged by a working capital funded 
industrial facility of the Department of the Navy for goods or services 
provided by such facility are not increased during fiscal year 2001 for 
the purpose of funding the Navy-Marine Corps Intranet contract.
    (d) Applicability of Statutory and Regulatory Requirements.--The 
acquisition of a Navy-Marine Corps Intranet shall be managed by the 
Department of the Navy in accordance with the requirements of--
            (1) the Clinger-Cohen Act of 1996 (divisions D and E of 
        Public Law 104-106), including the requirement for utilizing 
        modular contracting in accordance with section 38 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 434); and
            (2) Department of Defense Directives 5000.1 and 5000.2-R 
        and all other directives, regulations, and management controls 
        that are applicable to major investments in information 
        technology and related services.
    (e) Impact on Federal Employees.--The Secretary shall mitigate any 
adverse impact of the implementation of the Navy-Marine Corps Intranet 
on civilian employees of the Department of the Navy who, as of the date 
of the enactment of this Act, are performing functions that are 
included in the scope of the Navy-Marine Corps Intranet program by--
            (1) developing a comprehensive plan for the transition of 
        such employees to the performance of other functions within the 
        Department of the Navy;
            (2) taking full advantage of transition authorities 
        available for the benefit of employees;
            (3) encouraging the retraining of employees who express a 
        desire to qualify for reassignment to the performance of other 
        functions within the Department of the Navy; and
            (4) including a provision in the Navy-Marine Corps Intranet 
        contract that requires the contractor to provide a preference 
        for hiring employees of the Department of the Navy who, as of 
        the date of the enactment of this Act, are performing functions 
        that are included in the scope of the contract.
    (f) Navy-Marine Corps Intranet Contract Defined.--In this section, 
the term ``Navy-Marine Corps Intranet contract'' means a contract 
providing for a long-term arrangement of the Department of the Navy 
with the commercial sector that imposes on the contractor a 
responsibility for, and transfers to the contractor the risk of, 
providing and managing the significant majority of desktop, server, 
infrastructure, and communication assets and services of the Department 
of the Navy.

SEC. 815. SENSE OF CONGRESS REGARDING INFORMATION TECHNOLOGY SYSTEMS 
              FOR GUARD AND RESERVE COMPONENTS.

    It is the sense of Congress--
            (1) that the Secretary of Defense should take appropriate 
        steps to provide for upgrading information technology systems 
        of the reserve components to ensure that those systems are 
        capable, as required for mission purposes, of communicating 
        with other relevant information technology systems of the 
        military department concerned and of the Department of Defense 
        in general; and
            (2) that the Secretary of each military department should 
        ensure that communications systems for the reserve components 
        under the Secretary's jurisdiction receive appropriate funding 
        for information technology systems in order to achieve the 
        capability referred to in paragraph (1).

             Subtitle C--Other Acquisition-Related Matters

SEC. 821. IMPROVEMENTS IN PROCUREMENTS OF SERVICES.

    (a) Preference for Performance-Based Service Contracting.--Not 
later than 180 days after the date of the enactment of this Act, the 
Federal Acquisition Regulation issued in accordance with sections 6 and 
25 of the Office of Federal Procurement Policy Act (41 U.S.C. 405 and 
421) shall be revised to establish a preference for use of contracts 
and task orders for the purchase of services in the following order of 
precedence:
            (1) A performance-based contract or performance-based task 
        order that contains firm fixed prices for the specific tasks to 
        be performed.
            (2) Any other performance-based contract or performance-
        based task order.
            (3) Any contract or task order that is not a performance-
        based contract or a performance-based task order.
    (b) Incentive for Use of Performance-Based Service Contracts.--(1) 
A Department of Defense performance-based service contract or 
performance-based task order may be treated as a contract for the 
procurement of commercial items if--
            (A) the contract or task order is valued at $5,000,000 or 
        less;
            (B) the contract or task order sets forth specifically each 
        task to be performed and, for each task--
                    (i) defines the task in measurable, mission-related 
                terms;
                    (ii) identifies the specific end products or output 
                to be achieved; and
                    (iii) contains a firm fixed price; and
            (C) the source of the services provides similar services 
        contemporaneously to the general public under terms and 
        conditions similar to those offered to the Federal Government.
    (2) The special simplified procedures provided in the Federal 
Acquisition Regulation pursuant to section 2304(g)(1)(B) of title 10, 
United States Code, shall not apply to a performance-based service 
contract or performance-based task order that is treated as a contract 
for the procurement of commercial items under paragraph (1).
    (3) Not later than 2 years after the date of the enactment of this 
Act, the Comptroller General shall submit a report on the 
implementation of this subsection to the congressional defense 
committees.
    (4) The authority under this subsection shall not apply to 
contracts entered into or task orders issued more than 3 years after 
the date of the enactment of this Act.
    (c) Centers of Excellence in Service Contracting.--Not later than 
180 days after the date of the enactment of this Act, the Secretary of 
each military department shall establish at least one center of 
excellence in contracting for services. Each center of excellence shall 
assist the acquisition community by identifying, and serving as a 
clearinghouse for, best practices in contracting for services in the 
public and private sectors.
    (d) Enhanced Training in Service Contracting.--(1) The Secretary of 
Defense shall ensure that classes focusing specifically on contracting 
for services are offered by the Defense Acquisition University and the 
Defense Systems Management College and are otherwise available to 
contracting personnel throughout the Department of Defense.
    (2) The Secretary of each military department and the head of each 
Defense Agency shall ensure that the personnel of the department or 
agency, as the case may be, who are responsible for the awarding and 
management of contracts for services receive appropriate training that 
is focused specifically on contracting for services.
    (e) Definitions.--In this section:
            (1) The term ``performance-based'', with respect to a 
        contract, a task order, or contracting, means that the 
        contract, task order, or contracting, respectively, includes 
        the use of performance work statements that set forth contract 
        requirements in clear, specific, and objective terms with 
        measurable outcomes.
            (2) The term ``commercial item'' has the meaning given the 
        term in section 4(12) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403(12)).
            (3) The term ``Defense Agency'' has the meaning given the 
        term in section 101(a)(11) of title 10, United States Code.

SEC. 822. FINANCIAL ANALYSIS OF USE OF DUAL RATES FOR QUANTIFYING 
              OVERHEAD COSTS AT ARMY AMMUNITION PLANTS.

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

SEC. 823. REPEAL OF PROHIBITION ON USE OF DEPARTMENT OF DEFENSE FUNDS 
              FOR PROCUREMENT OF NUCLEAR-CAPABLE SHIPYARD CRANE FROM A 
              FOREIGN SOURCE.

    Section 8093 of the Department of Defense Appropriations Act, 2000 
(Public Law 106-79; 113 Stat. 1253), is amended by striking subsection 
(d), relating to a prohibition on the use of Department of Defense 
funds to procure a nuclear-capable shipyard crane from a foreign 
source.

SEC. 824. EXTENSION OF WAIVER PERIOD FOR LIVE-FIRE SURVIVABILITY 
              TESTING FOR MH-47E AND MH-60K HELICOPTER MODIFICATION 
              PROGRAMS.

    (a) Existing Waiver Period Not Applicable.--Section 2366(c)(1) of 
title 10, United States Code, shall not apply with respect to 
survivability and lethality tests for the MH-47E and MH-60K helicopter 
modification programs. Except as provided in the previous sentence, the 
provisions and requirements in section 2366(c) of such title shall 
apply with respect to such programs, and the certification required by 
subsection (b) shall comply with the requirements in paragraph (3) of 
such section.
    (b) Extended Period for Waiver.--With respect to the MH-47E and MH-
60K helicopter modification programs, the Secretary of Defense may 
waive the application of the survivability and lethality tests 
described in section 2366(a) of title 10, United States Code, if the 
Secretary, before full materiel release of the MH-47E and MH-60K 
helicopters for operational use, certifies to Congress that live-fire 
testing of the programs would be unreasonably expensive and 
impracticable.
    (c) Conforming Amendment.--Section 142(a) of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 
2338) is amended by striking ``and survivability testing'' in 
paragraphs (1) and (2).

SEC. 825. COMPLIANCE WITH EXISTING LAW REGARDING PURCHASES OF EQUIPMENT 
              AND PRODUCTS.

    (a) Sense of Congress Regarding Purchase by the Department of 
Defense of Equipment and Products.--It is the sense of Congress that 
any entity of the Department of Defense, in expending funds authorized 
by this Act for the purchase of equipment or products, should fully 
comply with the Buy American Act (41 U.S.C. 10a et seq.) and section 
2533 of title 10, United States Code.
    (b) Debarment of Persons Convicted of Fraudulent Use of ``Made in 
America'' Labels.--If the Secretary of Defense determines that a person 
has been convicted of intentionally affixing a label bearing a ``Made 
in America'' inscription, or another inscription with the same meaning, 
to any product sold in or shipped to the United States that is not made 
in the United States, the Secretary shall determine, in accordance with 
section 2410f of title 10, United States Code, whether the person 
should be debarred from contracting with the Department of Defense.

SEC. 826. REQUIREMENT TO DISREGARD CERTAIN AGREEMENTS IN AWARDING 
              CONTRACTS FOR THE PURCHASE OF FIREARMS OR AMMUNITION.

    In accordance with the requirements contained in the amendments 
enacted in the Competition in Contracting Act of 1984 (title VII of 
division B of Public Law 98-369; 98 Stat. 1175), the Secretary of 
Defense may not, in awarding a contract for the purchase of firearms or 
ammunition, take into account whether a manufacturer or vendor of 
firearms or ammunition is a party to an agreement under which the 
manufacturer or vendor agrees to adopt limitations with respect to 
importing, manufacturing, or dealing in firearms or ammunition in the 
commercial market.

                    Subtitle D--Studies and Reports

SEC. 831. STUDY ON IMPACT OF FOREIGN SOURCING OF SYSTEMS ON LONG-TERM 
              MILITARY READINESS AND RELATED INDUSTRIAL INFRASTRUCTURE.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
analyzing in detail--
            (1) the amount and sources of parts, components, and 
        materials of the systems described in subsection (b) that are 
        obtained from foreign sources;
            (2) the impact of obtaining such parts, components, and 
        materials from foreign sources on the long-term readiness of 
        the Armed Forces and on the economic viability of the national 
        technology and industrial base;
            (3) the impact on military readiness that would result from 
        the loss of the ability to obtain parts, components, and 
        materials identified pursuant to paragraph (1) from foreign 
        sources; and
            (4) the availability of domestic sources for parts, 
        components, and materials identified as being obtained from 
        foreign sources pursuant to paragraph (1).
    (b) Systems.--The systems referred to in subsection (a) are the 
following:
            (1) AH-64D Apache helicopter.
            (2) F/A-18 E/F aircraft.
            (3) M1A2 Abrams tank.
            (4) AIM-120 AMRAAM missile.
            (5) Patriot missile ground station.
            (6) Hellfire missile.
    (c) Source of Information.--The Secretary shall collect information 
to be analyzed under the study from prime contractors and first and 
second tier subcontractors.
    (d) Report Required.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
describing the results of the study required by this section.
    (e) Definitions.--In this section:
            (1) The term ``domestic source'' means a person or 
        organization that falls within the term ``national technology 
        and industrial base'', as defined in section 2500(1) of title 
        10, United States Code.
            (2) The term ``foreign source'' means a person or 
        organization that does not fall within the meaning of the term 
        ``national technology and industrial base'', as defined in such 
        section.
            (3) The term ``national technology and industrial base'' 
        has the meaning given that term in such section.

SEC. 832. STUDY OF POLICIES AND PROCEDURES FOR TRANSFER OF COMMERCIAL 
              ACTIVITIES.

    (a) GAO-Convened Panel.--The Comptroller General shall convene a 
panel of experts to study the policies and procedures governing the 
transfer of commercial activities for the Federal Government from 
Government personnel to a Federal contractor, including--
            (1) procedures for determining whether functions should 
        continue to be performed by Government personnel;
            (2) procedures for comparing the costs of performance of 
        functions by Government personnel and the costs of performance 
        of such functions by Federal contractors;
            (3) implementation by the Department of Defense of the 
        Federal Activities Inventory Reform Act of 1998 (Public Law 
        105-270; 31 U.S.C. 501 note); and
            (4) procedures of the Department of Defense for public-
        private competitions pursuant to the Office of Management and 
        Budget Circular A-76.
    (b) Composition of Panel.--(1) The Comptroller General shall 
appoint highly qualified and knowledgeable persons to serve on the 
panel and shall ensure that the following entities receive fair 
representation on the panel:
            (A) The Department of Defense.
            (B) Persons in private industry.
            (C) Federal labor organizations.
            (D) The Office of Management and Budget.
    (2) For the purposes of the requirement for fair representation 
under paragraph (1), persons serving on the panel under subparagraph 
(C) of that paragraph shall not be counted as persons serving on the 
panel under subparagraph (A), (B), or (D) of that paragraph.
    (c) Chairman.--The Comptroller General, or an individual within the 
General Accounting Office designated by the Comptroller General, shall 
be the chairman of the panel.
    (d) Participation by Other Interested Parties.--The chairman shall 
ensure that all interested parties, including individuals who are not 
represented on the panel who are officers or employees of the United 
States, persons in private industry, or representatives of Federal 
labor organizations, have the opportunity to submit information and 
views on the matters being studied by the panel.
    (e) Information From Agencies.--The panel may request directly from 
any department or agency of the United States any information that the 
panel considers necessary to carry out a meaningful study of the 
policies and procedures described in subsection (a), including the 
Office of Management and Budget Circular A-76 process. To the extent 
consistent with applicable laws and regulations, the head of such 
department or agency shall furnish the requested information to the 
panel.
    (f) Report.--Not later than May 1, 2002, the Comptroller General 
shall submit the report of the panel on the results of the study to 
Congress, including recommended changes with respect to implementation 
of policies and enactment of legislation.
    (g) Definition.--In this section, the term ``Federal labor 
organization'' has the meaning given the term ``labor organization'' in 
section 7103(a)(4) of title 5, United States Code.

SEC. 833. STUDY AND REPORT ON PRACTICE OF CONTRACT BUNDLING IN MILITARY 
              CONSTRUCTION CONTRACTS.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study regarding the use of the practice known as 
``contract bundling'' with respect to military construction contracts.
    (b) Report.--Not later than February 1, 2001, the Comptroller 
General shall submit to the committees on Armed Services of the Senate 
and the House of Representatives a report on the results of the study 
conducted under subsection (a).

SEC. 834. REQUIREMENT TO CONDUCT STUDY ON CONTRACT BUNDLING.

    (a) In General.--The Secretary of Defense shall conduct a 
comprehensive study on the practice known as ``contract bundling'' by 
the Department of Defense, and the effects of such practice on small 
business concerns, small business concerns owned and controlled by 
socially and economically disadvantaged individuals, small business 
concerns owned and controlled by women, and historically underutilized 
business zones (as such terms are used in the Small Business Act (15 
U.S.C. 631 et seq.)).
    (b) Deadline.--The Secretary shall submit the results of the study 
to the Committees on Armed Services and Small Business of the Senate 
and the House of Representatives before submission of the budget 
request of the Department of Defense for fiscal year 2002.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

   Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Overall supervision of Department of Defense activities for 
                            combating terrorism.
Sec. 902. Change of title of certain positions in the Headquarters, 
                            Marine Corps.
Sec. 903. Clarification of scope of Inspector General authorities under 
                            military whistleblower law.
Sec. 904. Policy to ensure conduct of science and technology programs 
                            so as to foster the transition of science 
                            and technology to higher levels of 
                            research, development, test, and 
                            evaluation.
Sec. 905. Additional components of Chairman of the Joint Chiefs of 
                            staff annual report on combatant command 
                            requirements.
            Subtitle B--Department of Defense Organizations

Sec. 911. Western Hemisphere Institute for Security Cooperation.
Sec. 912. Department of Defense regional centers for security studies.
Sec. 913. Change in name of Armed Forces Staff College to Joint Forces 
                            Staff College.
Sec. 914. Special authority for administration of Navy Fisher Houses.
Sec. 915. Supervisory control of Armed Forces Retirement Home board by 
                            Secretary of Defense.
Sec. 916. Semiannual report on Joint Requirements Oversight Council 
                            reform initiative.
Sec. 917. Comptroller General review of operations of Defense Logistics 
                            Agency.
Sec. 918. Comptroller General review of operations of Defense 
                            Information Systems Agency.
                    Subtitle C--Information Security

Sec. 921. Institute for Defense Computer Security and Information 
                            Protection.
Sec. 922. Information security scholarship program.
                          Subtitle D--Reports

Sec. 931. Date of submittal of reports on shortfalls in equipment 
                            procurement and military construction for 
                            the reserve components in future-years 
                            defense programs.
Sec. 932. Report on number of personnel assigned to legislative liaison 
                            functions.
Sec. 933. Joint report on establishment of national collaborative 
                            information analysis capability.
Sec. 934. Network centric warfare.
Sec. 935. Report on Air Force Institute of Technology.
                       Subtitle E--Other Matters

Sec. 941. Flexibility in implementation of limitation on major 
                            Department of Defense headquarters 
                            activities personnel.
Sec. 942. Consolidation of certain Navy gift funds.
Sec. 943. Temporary authority to dispose of a gift previously accepted 
                            for the Naval Academy.

   Subtitle A--Duties and Functions of Department of Defense Officers

SEC. 901. OVERALL SUPERVISION OF DEPARTMENT OF DEFENSE ACTIVITIES FOR 
              COMBATING TERRORISM.

    Section 138(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(6)(A) One of the Assistant Secretaries, as designated by the 
Secretary of Defense from among those Assistant Secretaries with 
responsibilities that include responsibilities related to combating     
terrorism, shall have, among that Assistant Secretary's duties, the 
duty to provide overall direction and supervision for policy, program 
planning and execution, and allocation and use of resources for the 
activities of the Department of Defense for combating terrorism, 
including antiterrorism activities, counterterrorism activities, 
terrorism consequences management activities, and terrorism-related 
intelligence support activities.
    ``(B) The Assistant Secretary designated under subparagraph (A) 
shall be the principal civilian adviser to the Secretary of Defense on 
combating terrorism and (after the Secretary and Deputy Secretary) 
shall be the principal official within the senior management of the 
Department of Defense responsible for combating terrorism.
    ``(C) If the Secretary of Defense designates under subparagraph (A) 
an Assistant Secretary other than the Assistant Secretary of Defense 
for Special Operations and Low Intensity Conflict, then the 
responsibilities of the Assistant Secretary of Defense for Special 
Operations and Low Intensity Conflict related to combating terrorism 
shall be exercised subject to subparagraph (B).''.

SEC. 902. CHANGE OF TITLE OF CERTAIN POSITIONS IN THE HEADQUARTERS, 
              MARINE CORPS.

    (a) Institution of Positions as Deputy Commandants.--Section 
5041(b) of title 10, United States Code, is amended--
            (1) by striking paragraphs (3) through (5) and inserting 
        the following:
            ``(3) The Deputy Commandants.''; and
            (2) by redesignating paragraphs (6) and (7) as paragraphs 
        (4) and (5), respectively.
    (b) Designation of Deputy Commandants.--(1) Section 5045 of such 
title is amended to read as follows:
``Sec. 5045. Deputy Commandants
    ``There are in the Headquarters, Marine Corps, not more than five 
Deputy Commandants, detailed by the Secretary of the Navy from officers 
on the active-duty list of the Marine Corps.''.
    (2) The item relating to section 5045 in the table of sections at 
the beginning of chapter 506 of such title is amended to read as 
follows:

``5045. Deputy Commandants.''.
    (c) Conforming Amendment.--Section 1502(7)(D) of the Armed Forces 
Retirement Home Act of 1991 (24 U.S.C. 401) is amended to read as 
follows:
                    ``(D) the Deputy Commandant of the Marine Corps 
                with responsibility for personnel matters.''.

SEC. 903. CLARIFICATION OF SCOPE OF INSPECTOR GENERAL AUTHORITIES UNDER 
              MILITARY WHISTLEBLOWER LAW.

    (a) Clarification of Responsibilities.--Subsection (c)(3)(A) of 
section 1034 of title 10, United States Code, is amended by inserting 
``, in accordance with regulations prescribed under subsection (h),'' 
after ``shall expeditiously determine''.
    (b) Redefinition of Inspector General.--Subsection (i)(2) of such 
section is amended--
            (1) by inserting ``any of'' in the matter preceding 
        subparagraph (A) after ``means'';
            (2) by striking subparagraphs (C), (D), (E), (F) and (G); 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph (C):
                    ``(C) Any officer of the armed forces or employee 
                of the Department of Defense who is assigned or 
                detailed to serve as an Inspector General at any level 
                in the Department of Defense.''.

SEC. 904. POLICY TO ENSURE CONDUCT OF SCIENCE AND TECHNOLOGY PROGRAMS 
              SO AS TO FOSTER THE TRANSITION OF SCIENCE AND TECHNOLOGY 
              TO HIGHER LEVELS OF RESEARCH, DEVELOPMENT, TEST, AND 
              EVALUATION.

    (a) In General.--(1) Chapter 139 of title 10, United States Code, 
is amended by inserting after section 2358 the following new section:
``Sec. 2359. Science and technology programs to be conducted so as to 
              foster the transition of science and technology to higher 
              levels of research, development, test, and evaluation
    ``(a) Policy.--Each official specified in subsection (b) shall 
ensure that the management and conduct of the science and technology 
programs under the authority of that official are carried out in a 
manner that will foster the transition of science and technology to 
higher levels of research, development, test, and evaluation.
    ``(b) Covered Officials.--Subsection (a) applies to the following 
officials of the Department of Defense:
            ``(1) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
            ``(2) The Secretary of each military department.
            ``(3) The Director of the Defense Advanced Research 
        Projects Agency.
            ``(4) The directors and heads of other offices and agencies 
        of the Department of Defense with assigned research, 
        development, test, and evaluation responsibilities.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2358 the 
following new item:

``2359. Science and technology programs to be conducted so as to foster 
                            the transition of science and technology to 
                            higher levels of research, development, 
                            test, and evaluation.''.
    (b) Office of Naval Research.--Section 5022(b) of title 10, United 
States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(4) the execution of, and management responsibility for, 
        programs for which funds are provided in the basic and applied 
        research and advanced technology categories of the Department 
        of the Navy research, development, test, and evaluation budget 
        in such a manner that will foster the transition of science and 
        technology to higher levels of research, development, test and 
        evaluation.''.

SEC. 905. ADDITIONAL COMPONENTS OF CHAIRMAN OF THE JOINT CHIEFS OF 
              STAFF ANNUAL REPORT ON COMBATANT COMMAND REQUIREMENTS.

    (a) Additional Components.--Section 153(d)(1) of title 10, United 
States Code, is amended by adding at the end the following new 
subparagraphs:
            ``(C) A description of the extent to which the most recent 
        future-years defense program (under section 221 of this title) 
        addresses the requirements on the consolidated lists.
            ``(D) A description of the funding proposed in the 
        President's budget for the next fiscal year, and for the 
        subsequent fiscal years covered by the most recent future-years 
        defense program, to address each deficiency in readiness 
        identified during the joint readiness review conducted under 
        section 117 of this title for the first quarter of the current 
        fiscal year.''.
    (b) Time for Submission.--Such section is further amended by 
striking ``Not later than August 15 of each year,'' and inserting ``At 
or about the time that the budget is submitted to Congress for a fiscal 
year under section 1105(a) of title 31,''.

            Subtitle B--Department of Defense Organizations

SEC. 911. WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

    (a) In General.--Chapter 108 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2166. Western Hemisphere Institute for Security Cooperation
    ``(a) Establishment and Administration.--(1) The Secretary of 
Defense may operate an education and training facility for the purpose 
set forth in subsection (b). The facility shall be known as the 
`Western Hemisphere Institute for Security Cooperation'.
    ``(2) The Secretary may designate the Secretary of a military 
department as the Department of Defense executive agent for carrying 
out the responsibilities of the Secretary of Defense under this 
section.
    ``(b) Purpose.--The purpose of the Institute is to provide 
professional education and training to eligible personnel of nations of 
the Western Hemisphere within the context of the democratic principles 
set forth in the Charter of the Organization of American States (such 
charter being a treaty to which the United States is a party), while 
fostering mutual knowledge, transparency, confidence, and cooperation 
among the participating nations and promoting democratic values, 
respect for human rights, and knowledge and understanding of United 
States customs and traditions.
    ``(c) Eligible Personnel.--(1) Subject to paragraph (2), personnel 
of nations of the Western Hemisphere are eligible for education and 
training at the Institute as follows:
            ``(A) Military personnel.
            ``(B) Law enforcement personnel.
            ``(C) Civilian personnel.
    ``(2) The Secretary of State shall be consulted in the selection of 
foreign personnel for education or training at the Institute.
    ``(d) Curriculum.--(1) The curriculum of the Institute shall 
include mandatory instruction for each student, for at least 8 hours, 
on human rights, the rule of law, due process, civilian control of the 
military, and the role of the military in a democratic society.
    ``(2) The curriculum may include instruction and other educational 
and training activities on the following:
            ``(A) Leadership development.
            ``(B) Counterdrug operations.
            ``(C) Peace support operations.
            ``(D) Disaster relief.
            ``(E) Any other matter that the Secretary determines 
        appropriate.
    ``(e) Board of Visitors.--(1) There shall be a Board of Visitors 
for the Institute. The Board shall be composed of the following:
            ``(A) The chairman and ranking minority member of the 
        Committee on Armed Services of the Senate, or a designee of 
        either of them.
            ``(B) The chairman and ranking minority member of the 
        Committee on Armed Services of the House of Representatives, or 
        a designee of either of them.
            ``(C) Six persons designated by the Secretary of Defense 
        including, to the extent practicable, persons from academia and 
        the religious and human rights communities.
            ``(D) One person designated by the Secretary of State.
            ``(E) The senior military officer responsible for training 
        and doctrine for the Army or, if the Secretary of the Navy or 
        the Secretary of the Air Force is designated as the executive 
        agent of the Secretary of Defense under subsection (a)(2), the 
        senior military officer responsible for training and doctrine 
        for the Navy or Marine Corps or for the Air Force, 
        respectively, or a designee of the senior military officer 
        concerned.
            ``(F) The commander of the unified combatant command having 
        geographic responsibility for Latin America, or a designee of 
        that officer.
    ``(2) A vacancy in a position on the Board shall be filled in the 
same manner as the position was originally filled.
    ``(3) The Board shall meet at least once each year.
    ``(4)(A) The Board shall inquire into the curriculum, instruction, 
physical equipment, fiscal affairs, and academic methods of the 
Institute, other matters relating to the Institute that the Board 
decides to consider, and any other matter that the Secretary of Defense 
determines appropriate.
    ``(B) The Board shall review the curriculum of the Institute to 
determine whether--
            ``(i) the curriculum complies with applicable United States 
        laws and regulations;
            ``(ii) the curriculum is consistent with United States 
        policy goals toward Latin America and the Caribbean;
            ``(iii) the curriculum adheres to current United States 
        doctrine; and
            ``(iv) the instruction under the curriculum appropriately 
        emphasizes the matters specified in subsection (d)(1).
    ``(5) Not later than 60 days after its annual meeting, the Board 
shall submit to the Secretary of Defense a written report of its 
activities and of its views and recommendations pertaining to the 
Institute.
    ``(6) Members of the Board shall not be compensated by reason of 
service on the Board.
    ``(7) With the approval of the Secretary of Defense, the Board may 
accept and use the services of voluntary and uncompensated advisers 
appropriate to the duties of the Board without regard to section 1342 
of title 31.
    ``(8) Members of the Board and advisers whose services are accepted 
under paragraph (7) shall be allowed travel and transportation 
expenses, including per diem in lieu of subsistence, while away from 
their homes or regular places of business in the performance of 
services for the Board. Allowances under this paragraph shall be 
computed--
            ``(A) in the case of members of the Board who are officers 
        or employees of the United States, at rates authorized for 
        employees of agencies under subchapter I of chapter 57 of title 
        5; and
            ``(B) in the case of other members of the Board and 
        advisers, as authorized under section 5703 of title 5 for 
        employees serving without pay.
    ``(9) The Federal Advisory Committee Act (5 U.S.C. App. 2), other 
than section 14 (relating to termination after two years), shall apply 
to the Board.
    ``(f) Fixed Costs.--The fixed costs of operating and maintaining 
the Institute for a fiscal year may be paid from--
            ``(1) any funds available for that fiscal year for 
        operation and maintenance for the executive agent designated 
        under subsection (a)(2); or
            ``(2) if no executive agent is designated under subsection 
        (a)(2), any funds available for that fiscal year for the 
        Department of Defense for operation and maintenance for 
        Defense-wide activities.
    ``(g) Tuition.--Tuition fees charged for persons who attend the 
Institute may not include the fixed costs of operating and maintaining 
the Institute.
    ``(h) Annual Report.--Not later than March 15 of each year, the 
Secretary of Defense shall submit to Congress a detailed report on the 
activities of the Institute during the preceding year. The report shall 
be prepared in consultation with the Secretary of State.''.
    (b) Repeal of Authority for United States Army School of the 
Americas.--Section 4415 of title 10, United States Code, is repealed.
    (c) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 108 of title 10, United States Code, is amended by 
inserting after the item relating to section 2165 the following new 
item:

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

SEC. 912. DEPARTMENT OF DEFENSE REGIONAL CENTERS FOR SECURITY STUDIES.

    (a) Requirement for Annual Report.--(1) Chapter 7 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 184. Department of Defense regional centers for security studies
    ``(a) Advance Notification to Congress of the Establishment of New 
Regional Centers.--After the date of the enactment of this section, a 
regional center for security studies may not be established in the 
Department of Defense until--
            ``(1) the Secretary of Defense submits to Congress a 
        notification of the intent of the Secretary to establish the 
        center, including a description of the mission and functions of 
        the proposed center and a justification for the proposed 
        center; and
            ``(2) a period of 90 days has elapsed after the date on 
        which that notification is submitted.
    ``(b) Requirement for Annual Report.--Not later than February 1 of 
each year, 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 operation of the Department of 
Defense regional centers for security studies during the preceding 
fiscal year. The annual report shall include, for each regional center, 
the following information:
            ``(1) The status and objectives of the center.
            ``(2) The budget of the center, including the costs of 
        operating the center.
            ``(3) A description of the extent of the international 
        participation in the programs of the center, including the 
        costs incurred by the United States for the participation of 
        each foreign nation.
            ``(4) A description of the foreign gifts and donations, if 
        any, accepted under any of the following provisions of law:
                    ``(A) Section 2611 of this title.
                    ``(B) Section 1306 of the National Defense 
                Authorization Act for Fiscal Year 1995 (Public Law 103-
                337; 108 Stat. 2892).
                    ``(C) Section 1065 of the National Defense 
                Authorization Act for Fiscal Year 1997 (Public Law 104-
                201; 110 Stat. 2653; 10 U.S.C. 113 note).
    ``(c) Regional Center for Security Studies Defined.--For the 
purposes of this section, a regional center for security studies is any 
center within the Department of Defense that--
            ``(1) is operated, and designated as such, by the Secretary 
        of Defense for the study of security issues relating to a 
        specified geographic region of the world; and
            ``(2) serves as a forum for bilateral and multilateral 
        communication and military and civilian exchanges with nations 
        in that region.''.
    (2) The table of sections at the beginning of chapter 7 of such 
title is amended by adding at the end the following new item:

``184. Department of Defense regional centers for security studies.''.
    (b) First Annual Report.--In the first annual report on Department 
of Defense regional centers for security studies under section 184(b) 
of title 10, United States Code (as added by subsection (a)), to be 
submitted not later than February 1, 2001, the Secretary of Defense 
shall include any recommendation for legislation that the Secretary 
considers appropriate for the operation of Department of Defense 
regional centers for security studies, together with a detailed 
justification for the recommended legislation.

SEC. 913. CHANGE IN NAME OF ARMED FORCES STAFF COLLEGE TO JOINT FORCES 
              STAFF COLLEGE.

    (a) Change in Name.--The Armed Forces Staff College of the 
Department of Defense is hereby renamed the ``Joint Forces Staff 
College''.
    (b) Conforming Amendment.--Section 2165(b)(3) of title 10, United 
States Code, is amended by striking ``Armed Forces Staff College'' and 
inserting ``Joint Forces Staff College''.
    (c) References.--Any reference to the Armed Forces Staff College in 
any law, regulation, map, document, record, or other paper of the 
United States shall be considered to be a reference to the Joint Forces 
Staff College.

SEC. 914. SPECIAL AUTHORITY FOR ADMINISTRATION OF NAVY FISHER HOUSES.

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

SEC. 915. SUPERVISORY CONTROL OF ARMED FORCES RETIREMENT HOME BOARD BY 
              SECRETARY OF DEFENSE.

    The Armed Forces Retirement Home Act of 1991 (title XV of Public 
Law 101-510; 24 U.S.C. 401 et seq.) is amended by inserting after 
section 1523 the following new section:

``SEC. 1524. CONDITIONAL SUPERVISORY CONTROL OF RETIREMENT HOME BOARD 
              BY SECRETARY OF DEFENSE.

    ``(a) Applicability.--This section shall apply only when the 
deduction authorized by section 1007(i)(1) of title 37, United States 
Code, to be made from the monthly pay of certain members of the armed 
forces is equal to $1.00 for each enlisted member, warrant officer, and 
limited duty officer of the armed forces on active duty.
    ``(b) Board Authority Subject to Secretary's Control.--The 
Retirement Home Board shall be subject to the authority, direction, and 
control of the Secretary of Defense in the performance of the Board's 
duties under section 1516.
    ``(c) Appointment of Board Members.--When an appointment of a 
member of the Retirement Home Board under section 1515 is not made by 
the Secretary of Defense, the appointment shall be subject to the 
approval of the Secretary of Defense.
    ``(d) Terms of Board Members.--(1) Notwithstanding section 
1515(e)(3), only the Secretary of Defense may appoint a member of the 
Retirement Home Board for a second consecutive term.
    ``(2) The Secretary of Defense may terminate the appointment of a 
member of the Retirement Home Board at the pleasure of the Secretary.
    ``(e) Responsibility of Chairman to the Secretary.--Notwithstanding 
section 1515(d)(1)(B), the chairman of the Retirement Home Board shall 
be responsible to the Secretary of Defense, but not to the Secretaries 
of the military departments, for direction and management of the 
Retirement Home or each facility maintained as a separate facility of 
the Retirement Home.''.

SEC. 916. SEMIANNUAL REPORT ON JOINT REQUIREMENTS OVERSIGHT COUNCIL 
              REFORM INITIATIVE.

    (a) Semiannual Report.--The Chairman of the Joints Chiefs of Staff 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a series of 
five semiannual reports, as prescribed by subsection (b), on the 
activities of the Joint Requirements Oversight Council. The principal 
focus of each such report shall be on the progress made on the 
initiative of the Chairman to reform and refocus the Joint Requirements 
Oversight Council.
    (b) Submission of Reports.--Reports under this section shall be 
submitted not later than March 1, 2001, September 1, 2001, March 1, 
2002, September 1, 2002, and March 1, 2003. Each report shall cover the 
half of a fiscal year that ends five months before the date on which 
the report is due.
    (c) Content.--In the case of any report under this section after 
the first such report, if any matter to be included is unchanged from 
the preceding report, that matter may be included by reference to the 
preceding report. Each such report shall include, to the extent 
practicable, the following:
            (1) A listing of each of the capability areas designated by 
        the Chairman of the Joints Chiefs of Staff as being within the 
        principal domain of the Joint Requirements Oversight Council 
        and a justification for each such designation.
            (2) A listing of the joint requirements developed, 
        considered, or approved within each of the capability areas 
        listed pursuant to paragraph (1).
            (3) A listing and explanation of the decisions made by the 
        Joint Requirements Oversight Council and, to the extent 
        appropriate, a listing of each of the recommendations to the 
        Council made by the commander of the United States Joint Forces 
        Command.
            (4) An assessment of--
                    (A) the progress made in shifting the Joint 
                Requirements Oversight Council to having a more 
                strategic focus on future war fighting requirements;
                    (B) the progress made on integration of 
                requirements; and
                    (C) the progress made on development of overarching 
                common architectures for defense information systems to 
                ensure that common defense information systems are 
                fully interoperable.
            (5) A description of any actions that have been taken to 
        improve the Joint Requirements Oversight Council.

SEC. 917. COMPTROLLER GENERAL REVIEW OF OPERATIONS OF DEFENSE LOGISTICS 
              AGENCY.

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

SEC. 918. COMPTROLLER GENERAL REVIEW OF OPERATIONS OF DEFENSE 
              INFORMATION SYSTEMS AGENCY.

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

                    Subtitle C--Information Security

SEC. 921. INSTITUTE FOR DEFENSE COMPUTER SECURITY AND INFORMATION 
              PROTECTION.

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

SEC. 922. INFORMATION SECURITY SCHOLARSHIP PROGRAM.

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

        ``CHAPTER 112--INFORMATION SECURITY SCHOLARSHIP PROGRAM

``Sec.
``2200.  Programs; purpose.
``2200a. Scholarship program.
``2200b. Grant program.
``2200c. Centers of Academic Excellence in Information Assurance 
                            Education.
``2200d. Regulations.
``2200e. Definitions.
``2200f. Inapplicability to Coast Guard.
``Sec. 2200. Programs; purpose
    ``(a) In General.--To encourage the recruitment and retention of 
Department of Defense personnel who have the computer and network 
security skills necessary to meet Department of Defense information 
assurance requirements, the Secretary of Defense may carry out programs 
in accordance with this chapter to provide financial support for 
education in disciplines relevant to those requirements at institutions 
of higher education.
    ``(b) Types of Programs.--The programs authorized under this 
chapter are as follows:
            ``(1) Scholarships for pursuit of programs of education in 
        information assurance at institutions of higher education.
            ``(2) Grants to institutions of higher education.
``Sec. 2200a. Scholarship program
    ``(a) Authority.--The Secretary of Defense may, subject to 
subsection (g), provide financial assistance in accordance with this 
section to a person--
            ``(1) who is pursuing an associate, baccalaureate, or 
        advanced degree, or a certification, in an information 
        assurance discipline referred to in section 2200(a) of this 
        title at an institution of higher education; and
            ``(2) who enters into an agreement with the Secretary as 
        described in subsection (b).
    ``(b) Service Agreement for Scholarship Recipients.--(1) To receive 
financial assistance under this section--
            ``(A) a member of the armed forces shall enter into an 
        agreement to serve on active duty in the member's armed force 
        for the period of obligated service determined under paragraph 
        (2);
            ``(B) an employee of the Department of Defense shall enter 
        into an agreement to continue in the employment of the 
        department for the period of obligated service determined under 
        paragraph (2); and
            ``(C) a person not referred to in subparagraph (A) or (B) 
        shall enter into an agreement--
                    ``(i) to enlist or accept a commission in one of 
                the armed forces and to serve on active duty in that 
                armed force for the period of obligated service 
                determined under paragraph (2); or
                    ``(ii) to accept and continue employment in the 
                Department of Defense for the period of obligated 
                service determined under paragraph (2).
    ``(2) For the purposes of this subsection, the period of obligated 
service for a recipient of financial assistance under this section 
shall be the period determined by the Secretary of Defense as being 
appropriate to obtain adequate service in exchange for the financial 
assistance and otherwise to achieve the goals set forth in section 
2200(a) of this title. In no event may the period of service required 
of a recipient be less than the period equal to three-fourths of the 
total period of pursuit of a degree for which the Secretary agrees to 
provide the recipient with financial assistance under this section. The 
period of obligated service is in addition to any other period for 
which the recipient is obligated to serve on active duty or in the 
civil service, as the case may be.
    ``(3) An agreement entered into under this section by a person 
pursuing an academic degree shall include terms that provide the 
following:
            ``(A) That the period of obligated service begins on a date 
        after the award of the degree that is determined under the 
        regulations prescribed under section 2200d of this title.
            ``(B) That the person will maintain satisfactory academic 
        progress, as determined in accordance with those regulations, 
        and that failure to maintain such progress constitutes grounds 
        for termination of the financial assistance for the person 
        under this section.
            ``(C) Any other terms and conditions that the Secretary of 
        Defense determines appropriate for carrying out this section.
    ``(c) Amount of Assistance.--The amount of the financial assistance 
provided for a person under this section shall be the amount determined 
by the Secretary of Defense as being necessary to pay all educational 
expenses incurred by that person, including tuition, fees, cost of 
books, laboratory expenses, and expenses of room and board. The 
expenses paid, however, shall be limited to those educational expenses 
normally incurred by students at the institution of higher education 
involved.
    ``(d) Use of Assistance for Support of Internships.--The financial 
assistance for a person under this section may also be provided to 
support internship activities of the person at the Department of 
Defense in periods between the academic years leading to the degree for 
which assistance is provided the person under this section.
    ``(e) Refund for Period of Unserved Obligated Service.--(1) A 
person who voluntarily terminates service before the end of the period 
of obligated service required under an agreement entered into under 
subsection (b) shall refund to the United States an amount determined 
by the Secretary of Defense as being appropriate to obtain adequate 
service in exchange for financial assistance and otherwise to achieve 
the goals set forth in section 2200(a) of this title.
    ``(2) An obligation to reimburse the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) The Secretary of Defense may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary determines that 
recovery would be against equity and good conscience or would be 
contrary to the best interests of the United States.
    ``(f) Effect of Discharge in Bankruptcy.--A discharge in bankruptcy 
under title 11 that is entered less than five years after the 
termination of an agreement under this section does not discharge the 
person signing such agreement from a debt arising under such agreement 
or under subsection (e).
    ``(g) Allocation of Funding.--Not less than 50 percent of the 
amount available for financial assistance under this section for a 
fiscal year shall be available only for providing financial assistance 
for the pursuit of degrees referred to in subsection (a) at 
institutions of higher education that have established, improved, or 
are administering programs of education in information assurance under 
the grant program established in section 2200b of this title, as 
determined by the Secretary of Defense.
``Sec. 2200b. Grant program
    ``(a) Authority.--The Secretary of Defense may provide grants of 
financial assistance to institutions of higher education to support the 
establishment, improvement, or administration of programs of education 
in information assurance disciplines referred to in section 2200(a) of 
this title.
    ``(b) Purposes.--The proceeds of grants under this section may be 
used by an institution of higher education for the following purposes:
            ``(1) Faculty development.
            ``(2) Curriculum development.
            ``(3) Laboratory improvements.
            ``(4) Faculty research in information security.
``Sec. 2200c. Centers of Academic Excellence in Information Assurance 
              Education
    ``In the selection of a recipient for the award of a scholarship or 
grant under this chapter, consideration shall be given to whether--
            ``(1) in the case of a scholarship, the institution at 
        which the recipient pursues a degree is a Center of Academic 
        Excellence in Information Assurance Education; and
            ``(2) in the case of a grant, the recipient is a Center of 
        Academic Excellence in Information Assurance Education.
``Sec. 2200d. Regulations
    ``The Secretary of Defense shall prescribe regulations for the 
administration of this chapter.
``Sec. 2200e. Definitions
    ``In this chapter:
            ``(1) The term `information assurance' includes the 
        following:
                    ``(A) Computer security.
                    ``(B) Network security.
                    ``(C) Any other information technology that the 
                Secretary of Defense considers related to information 
                assurance.
            ``(2) The term `institution of higher education' has the 
        meaning given the term in section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1001).
            ``(3) The term `Center of Academic Excellence in 
        Information Assurance Education' means an institution of higher 
        education that is designated by the Director of the National 
        Security Agency as a Center of Academic Excellence in 
        Information Assurance Education.
``Sec. 2200f. Inapplicability to Coast Guard
    ``This chapter does not apply to the Coast Guard when it is not 
operating as a service in the Navy.''.
    (2) The tables of chapters at the beginning of subtitle A of title 
10, United States Code, and the beginning of part III of such subtitle 
are amended by inserting after the item relating to chapter 111 the 
following new item:

``112. Information Security Scholarship Program.............    2200''.
    (b) Funding.--Of the amount authorized to be appropriated by 
section 301(5), $15,000,000 shall be available for carrying out chapter 
112 of title 10, United States Code (as added by subsection (a)).
    (c) Report.--Not later than April 1, 2001, the Secretary of Defense 
shall submit to the congressional defense committees a plan for 
implementing the programs under chapter 112 of title 10, United States 
Code.

                          Subtitle D--Reports

SEC. 931. DATE OF SUBMITTAL OF REPORTS ON SHORTFALLS IN EQUIPMENT 
              PROCUREMENT AND MILITARY CONSTRUCTION FOR THE RESERVE 
              COMPONENTS IN FUTURE-YEARS DEFENSE PROGRAMS.

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

SEC. 932. REPORT ON NUMBER OF PERSONNEL ASSIGNED TO LEGISLATIVE LIAISON 
              FUNCTIONS.

    (a) Report.--Not later than December 1, 2000, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives a 
report setting forth the number of personnel of the Department of 
Defense performing legislative liaison functions as of April 1, 2000.
    (b) Matters To Be Included.--The report shall include the 
following:
            (1) The number of military and civilian personnel of the 
        Department of Defense assigned to full-time legislative liaison 
        functions, shown by organizational entity and by pay grade.
            (2) The number of military and civilian personnel of the 
        Department not covered by paragraph (1) (other than personnel 
        described in subsection (e)) who perform legislative liaison 
        functions as part of their assigned duties, shown by 
        organizational entity and by pay grade.
    (c) Legislative Liaison Functions.--For purposes of this section, a 
legislative liaison function is a function (regardless of how 
characterized within the Department of Defense) that has been 
established or designated to principally provide advice, information, 
and assistance to the legislative branch on Department of Defense 
policies, plans, and programs.
    (d) Organizational Entities.--The display of information under 
subsection (b) by organizational entity shall be for the Department of 
Defense and for each military department as a whole and separately for 
each organization at the level of major command or Defense Agency or 
higher.
    (e) Personnel Not Covered.--Subsection (b)(2) does not apply to 
civilian officers appointed by the President, by and with the advice 
and consent of the Senate, or to general or flag officers.

SEC. 933. JOINT REPORT ON ESTABLISHMENT OF NATIONAL COLLABORATIVE 
              INFORMATION ANALYSIS CAPABILITY.

    (a) Report.--Not later than March 1, 2000, the Secretary of Defense 
and the Director of Central Intelligence shall submit to the 
congressional defense committees and the congressional intelligence 
committees a joint report assessing alternatives for the establishment 
of a national collaborative information analysis capability. The report 
shall include the following:
            (1) An assessment of alternative architectures to establish 
        a national collaborative information analysis capability to 
        conduct data mining and profiling of information from a wide 
        array of electronic data sources.
            (2) Identification, from among the various architectures 
        assessed under paragraph (1), of the preferred architecture and 
        a detailed description of that architecture and of a program to 
        acquire and implement the capability that would be provided 
        through that architecture.
            (3) A detailed explanation of how the personal information 
        resulting from the data mining and profiling capability 
        developed under the preferred architecture will be employed 
        consistent with the requirements of section 552a of title 5, 
        United States Code
    (b) Completion and Use of Army Land Information Warfare Activity.--
The Secretary of Defense--
            (1) shall ensure that the data mining, profiling, and 
        analysis capability of the Army's Land Information Warfare 
        Activity is completed and is fully operational as soon as 
        possible; and
            (2) shall make appropriate use of that capability to 
        provide support to all appropriate national defense components.

SEC. 934. NETWORK CENTRIC WARFARE.

    (a) Findings.--Congress makes the following findings:
            (1) Joint Vision 2020 set the goal for the Department of 
        Defense to pursue information superiority in order that joint 
        forces may possess superior knowledge and attain decision 
        superiority during operations across the spectrum of conflict.
            (2) One concept being pursued to attain information 
        superiority is known as Network Centric Warfare. The concept of 
        Network Centric Warfare links sensors, communications systems 
        and weapons systems in an interconnected grid that allows for a 
        seamless information flow to warfighters, policy makers, and 
        support personnel.
            (3) The Joint Staff, the Defense Agencies, and the military 
        departments are all pursuing various concepts related to 
        Network Centric Warfare.
    (b) Goal.--It shall be the goal of Department of Defense to fully 
coordinate various efforts being pursued by the Joint Staff, the 
Defense Agencies, and the military departments as they develop the 
concept of Network Centric Warfare.
    (c) Report on Network Centric Warfare.--(1) The Secretary of 
Defense shall submit to the congressional defense committees a report 
on the development and implementation of network centric warfare 
concepts within the Department of Defense. The report shall be prepared 
in consultation with the Chairman of the Joint Chiefs of Staff.
    (2) The report shall include the following:
            (A) A clear definition and terminology to describe the set 
        of operational concepts referred to as ``network centric 
        warfare''.
            (B) An identification and description of the current and 
        planned activities by the Office of the Secretary of Defense, 
        the Joint Chiefs of Staff, and the United States Joint Forces 
        Command relating to network centric warfare.
            (C) A discussion of how the concept of network centric 
        warfare is related to the strategy of transformation as 
        outlined in the document entitled ``Joint Vision 2020'', along 
        with the advantages and disadvantages of pursing that concept.
            (D) A discussion on how the Department is implementing the 
        concepts of network centric warfare as it relates to 
        information superiority and decision superiority articulated in 
        ``Joint Vision 2020.''
            (E) An identification and description of the current and 
        planned activities of each of the Armed Forces relating to 
        network centric warfare.
            (F) A discussion on how the Department plans to attain a 
        fully integrated, joint command, control, communications, 
        computers, intelligence, surveillance, and reconnaissance 
        (C<SUP>4</SUP>ISR) capability.
            (G) A description of the joint requirements under 
        development that will lead to the acquisition of technologies 
        for enabling network centric warfare and whether those joint 
        requirements are modifying existing service requirements and 
        vision statements.
            (H) A discussion of how Department of Defense activities to 
        establish a joint network centric capability are coordinated 
        with other departments and agencies of the United States and 
        with United States allies.
            (I) A discussion of the coordination of the science and 
        technology investments of the military departments and Defense 
        Agencies in the development of future joint network centric 
        warfare capabilities.
            (J) The methodology being used to measure progress toward 
        stated goals.
    (d) Study on the Use of Joint Experimentation for Developing 
Network Centric Warfare Concepts.--(1) The Secretary of Defense shall 
conduct a study on the present and future use of the joint 
experimentation program of the Department of Defense in the development 
of network centric warfare concepts.
    (2) The Secretary shall submit to the congressional defense 
committees a report on the results of the study. The report shall 
include the following:
            (A) A survey of and description of how experimentation 
        under the joint experimentation at United States Joint Forces 
        Command is being used for evaluating emerging concepts in 
        network centric warfare.
            (B) A survey of and description of how experimentation 
        under the joint experimentation of each of the armed services 
        are being used for evaluating emerging concepts in network 
        centric warfare.
            (C) A description of any emerging concepts and 
        recommendations developed by those experiments, with special 
        emphasis on force structure implications.
    (3) The Secretary of Defense, acting through the Chairman of the 
Joint Chief of Staff, shall designate the Commander in Chief of the 
United States Joint Forces Command to carry out the study and prepare 
the report required under this subsection.
    (e) Time for Submission of Reports.--Each report required under 
this section shall be submitted not later than March 1, 2001.

SEC. 935. REPORT ON AIR FORCE INSTITUTE OF TECHNOLOGY.

    (a) Report Required.--Not later than September 30, 2001, the 
Secretary of the Air Force 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 roles and missions, organizational 
structure, funding, and operations of the Air Force Institute of 
Technology as projected through 2010.
    (b) Matters To Be Included.--The report shall provide--
            (1) a statement of the Institute's roles and missions 
        through 2010 in meeting the critical scientific and educational 
        requirements of the Air Force;
            (2) a statement of the strategic priorities for the 
        Institute in meeting long-term core science and technology 
        educational needs of the Air Force; and
            (3) a plan for the near-term increase in the production by 
        the Institute of masters and doctoral degree graduates.
    (c) Recommendations To Be Provided.--Based on the matters 
determined for purposes of subsection (b), the report shall include 
recommendations of the Secretary of the Air Force with respect to the 
following:
            (1) The grade of the Commandant of the Institute.
            (2) The chain of command of the Commandant within the Air 
        Force.
            (3) The employment and compensation of civilian professors 
        at the Institute.
            (4) The processes for the identification of requirements 
        for personnel with advanced degrees within the Air Force and 
        identification and selection of candidates for annual 
        enrollment at the Institute.
            (5) Postgraduation opportunities within the Air Force for 
        graduates of the Institute.
            (6) The policies and practices regarding the admission to 
        the Institute of--
                    (A) officers of the Army, Navy, Marine Corps, and 
                Coast Guard;
                    (B) employees of the Department of the Army, 
                Department of the Navy, and Department of 
                Transportation;
                    (C) personnel of the military forces of foreign 
                countries;
                    (D) enlisted members of the Armed Forces; and
                    (E) other persons eligible for admission.
            (7) Near- and long-term funding of the institute.
            (8) Opportunities for cooperation, collaboration, and joint 
        endeavors with other military and civilian scientific and 
        technical educational institutions for the production of 
        qualified personnel to meet Department of Defense scientific 
        and technical requirements.
    (d) Consultation.--The report shall be prepared in consultation 
with the Chief of Staff of the Air Force and the Commander of the Air 
Force Materiel Command.

                       Subtitle E--Other Matters

SEC. 941. FLEXIBILITY IN IMPLEMENTATION OF LIMITATION ON MAJOR 
              DEPARTMENT OF DEFENSE HEADQUARTERS ACTIVITIES PERSONNEL.

    Section 130a of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) Flexibility.--(1) If during fiscal year 2001 or fiscal year 
2002 the Secretary of Defense determines, and certifies to Congress, 
that the limitation under subsection (a), or a limitation under 
subsection (b), would adversely affect United States national security, 
the Secretary may take any of the following actions:
            ``(A) Increase the percentage specified in subsection 
        (b)(1) by such amount as the Secretary determines necessary or 
        waive the limitation under that subsection.
            ``(B) Increase the percentage specified in subsection 
        (b)(2) by such amount as the Secretary determines necessary, 
        not to exceed a cumulative increase of 7.5 percentage points.
            ``(C) Increase the percentage specified in subsection (a) 
        by such amount as the Secretary determines necessary, not to 
        exceed a cumulative increase of 7.5 percentage points.
    ``(2) Any certification under paragraph (1) shall include notice of 
the specific waiver or increases made pursuant to the authority 
provided in that paragraph.''.

SEC. 942. CONSOLIDATION OF CERTAIN NAVY GIFT FUNDS.

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

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

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

SEC. 943. TEMPORARY AUTHORITY TO DISPOSE OF A GIFT PREVIOUSLY ACCEPTED 
              FOR THE NAVAL ACADEMY.

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

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of emergency supplemental appropriations for 
                            fiscal year 2000.
Sec. 1004. United States contribution to NATO common-funded budgets in 
                            fiscal year 2001.
Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping 
                            operations for fiscal year 2001.
Sec. 1006. Requirement for prompt payment of contract vouchers.
Sec. 1007. Plan for prompt recording of obligations of funds for 
                            contractual transactions.
Sec. 1008. Electronic submission and processing of claims for contract 
                            payments.
Sec. 1009. Administrative offsets for overpayment of transportation 
                            costs.
Sec. 1010. Interest penalties for late payment of interim payments due 
                            under Government service contracts.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Revisions to national defense features program.
Sec. 1012. Sense of Congress on the naming of the CVN-77 aircraft 
                            carrier.
Sec. 1013. Authority to transfer naval vessels to certain foreign 
                            countries.
Sec. 1014. Authority to consent to retransfer of alternative former 
                            naval vessel by Government of Greece.
                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority to provide support for counter-drug 
                            activities of Colombia.
Sec. 1022. Report on Department of Defense expenditures to support 
                            foreign counter-drug activities.
Sec. 1023. Recommendations on expansion of support for counter-drug 
                            activities.
Sec. 1024. Review of riverine counter-drug program.
Sec. 1025. Report on tethered aerostat radar system.
Sec. 1026. Sense of Congress regarding use of Armed Forces for counter-
                            drug and counter-terrorism activities.
         Subtitle D--Counterterrorism and Domestic Preparedness

Sec. 1031. Preparedness of military installation first responders for 
                            incidents involving weapons of mass 
                            destruction.
Sec. 1032. Additional weapons of mass destruction civil support teams.
Sec. 1033. Authority to provide loan guarantees to improve domestic 
                            preparedness to combat cyberterrorism.
Sec. 1034. Report on the status of domestic preparedness against the 
                            threat of biological terrorism.
Sec. 1035  Report on strategy, policies, and programs to combat 
                            domestic terrorism.
                      Subtitle E--Strategic Forces

Sec. 1041. Revised nuclear posture review.
Sec. 1042. Plan for the long-term sustainment and modernization of 
                            United States strategic nuclear forces.
Sec. 1043. Modification of scope of waiver authority for limitation on 
                            retirement or dismantlement of strategic 
                            nuclear delivery systems.
Sec. 1044. Report on the defeat of hardened and deeply buried targets.
Sec. 1045. Sense of Congress on the maintenance of the strategic 
                            nuclear triad.
            Subtitle F--Miscellaneous Reporting Requirements

Sec. 1051. Management review of working-capital fund activities.
Sec. 1052. Report on submarine rescue support vessels.
Sec. 1053. Report on Federal Government progress in developing 
                            information assurance strategies.
Sec. 1054. Department of Defense process for decisionmaking in cases of 
                            false claims.
           Subtitle G--Government Information Security Reform

Sec. 1061. Coordination of Federal information policy.
Sec. 1062. Responsibilities of certain agencies.
Sec. 1063. Relationship of Defense Information Assurance Program to 
                            Government-wide information security 
                            program.
Sec. 1064. Technical and conforming amendments.
Sec. 1065. Effective date.
                      Subtitle H--Security Matters

Sec. 1071. Limitation on granting of security clearances.
Sec. 1072. Process for prioritizing background investigations for 
                            security clearances for Department of 
                            Defense personnel and defense contractor 
                            personnel.
Sec. 1073. Authority to withhold certain sensitive information from 
                            public disclosure.
Sec. 1074. Expansion of authority to exempt geodetic products of the 
                            Department of Defense from public 
                            disclosure.
Sec. 1075. Expenditures for declassification activities.
Sec. 1076. Enhanced access to criminal history record information for 
                            national security and other purposes
Sec. 1077. Two-year extension of authority to engage in commercial 
                            activities as security for intelligence 
                            collection activities.
Sec. 1078. Coordination of nuclear weapons secrecy policies and 
                            consideration of health of workers at 
                            former Department of Defense nuclear 
                            facilities.
                       Subtitle I--Other Matters

Sec. 1081. Funds for administrative expenses under Defense Export Loan 
                            Guarantee program.
Sec. 1082. Transit pass program for Department of Defense personnel in 
                            poor air quality areas.
Sec. 1083. Transfer of Vietnam era TA-4 aircraft to nonprofit 
                            foundation.
Sec. 1084. Transfer of 19th century cannon to museum.
Sec. 1085. Fees for providing historical information to the public.
Sec. 1086. Grants to American Red Cross for Armed Forces emergency 
                            services.
Sec. 1087. Technical and clerical amendments.
Sec. 1088. Maximum size of parcel post packages transported overseas 
                            for Armed Forces post offices.
Sec. 1089. Sense of Congress regarding tax treatment of members 
                            receiving special pay for duty subject to 
                            hostile fire or imminent danger.
Sec. 1090. Organization and management of Civil Air Patrol.
Sec. 1091. Additional duties for Commission to Assess United States 
                            National Security Space Management and 
                            Organization.
Sec. 1092. Commission on the Future of the United States Aerospace 
                            Industry.
Sec. 1093. Drug addiction treatment.

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

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

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex prepared by 
the committee of conference to accompany the conference report on the 
bill H.R. 4205 of the One Hundred Sixth Congress and transmitted to the 
President is hereby incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to amounts 
authorized to be appropriated by other provisions of this Act.
    (c) Limitation on Use of Funds.--Funds appropriated pursuant to an 
authorization contained in this Act that are made available for a 
program, project, or activity referred to in the Classified Annex may 
only be expended for such program, project, or activity in accordance 
with such terms, conditions, limitations, restrictions, and 
requirements as are set out for that program, project, or activity in 
the Classified Annex.
    (d) Distribution of Classified Annex.--The President shall provide 
for appropriate distribution of the Classified Annex, or of appropriate 
portions of the annex, within the executive branch of the Government.

SEC. 1003. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR 
              FISCAL YEAR 2000.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 2000 in the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65) are hereby adjusted, with respect 
to any such authorized amount, by the amount by which appropriations 
pursuant to such authorization were increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, in the 
Emergency Supplemental Act, 2000 (division B of Public Law 106-246) or 
in title IX of the Department of Defense Appropriations Act, 2001 
(Public Law 106-259).

SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2001.

    (a) Fiscal Year 2001 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2001 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2000, of funds appropriated for fiscal years before 
        fiscal year 2001 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $743,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $181,981,000 
        for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-
        funded budgets of NATO'' means the Military Budget, the 
        Security Investment Program, and the Civil Budget of the North 
        Atlantic Treaty Organization (and any successor or additional 
        account or program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the maximum 
        annual amount of Department of Defense contributions for 
        common-funded budgets of NATO that is set forth as the annual 
        limitation in section 3(2)(C)(ii) of the resolution of the 
        Senate giving the advice and consent of the Senate to the 
        ratification of the Protocols to the North Atlantic Treaty of 
        1949 on the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that resolution), 
        approved by the Senate on April 30, 1998.

SEC. 1005. LIMITATION ON FUNDS FOR BOSNIA AND KOSOVO PEACEKEEPING 
              OPERATIONS FOR FISCAL YEAR 2001.

    (a) Limitation.--Of the amounts authorized to be appropriated by 
section 301(24) for the Overseas Contingency Operations Transfer Fund--
            (1) no more than $1,387,800,000 may be obligated for 
        incremental costs of the Armed Forces for Bosnia peacekeeping 
        operations; and
            (2) no more than $1,650,400,000 may be obligated 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 in subsection (a)(2), after 
submitting to Congress the following:
            (1) The President's written certification that the waiver 
        is necessary in the national security interests 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 necessary 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 operations, or Kosovo peacekeeping 
                operations, as the case may be, for fiscal year 2001.
                    (C) A discussion of the impact on the military 
                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.
            (4) A supplemental appropriations request for the 
        Department of Defense for such amounts as are necessary for the 
        additional fiscal year 2001 costs associated with United States 
        military forces participating in, or supporting, Bosnia or 
        Kosovo peacekeeping operations.
    (c) Peacekeeping Operations Defined.--For the purposes of this 
section:
            (1) The term ``Bosnia peacekeeping operations'' has the 
        meaning given such term in section 1004(e) of the Strom 
        Thurmond National Defense Authorization Act for Fiscal Year 
        1999 (Public Law 105-261; 112 Stat. 2112).
            (2) The term ``Kosovo peacekeeping operations''--
                    (A) means the operation designated as Operation 
                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 support of the 
                operation.

SEC. 1006. REQUIREMENT FOR PROMPT PAYMENT OF CONTRACT VOUCHERS.

    (a) Requirement.--(1) Chapter 131 of title 10, United States Code, 
is amended by adding after section 2225, as added by section 812(a)(1), 
the following new section:
``Sec. 2226. Contracted property and services: prompt payment of 
              vouchers
    ``(a) Requirement.--Of the contract vouchers that are received by 
the Defense Finance and Accounting Service by means of the 
mechanization of contract administration services system, the number of 
such vouchers that remain unpaid for more than 30 days as of the last 
day of each month may not exceed 5 percent of the total number of the 
contract vouchers so received that remain unpaid on that day.
    ``(b) Contract Voucher Defined.--In this section, the term 
`contract voucher' means a voucher or invoice for the payment to a 
contractor for services, commercial items (as defined in section 4(12) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12))), 
or other deliverable items provided by the contractor under a contract 
funded by the Department of Defense.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2225, as added by 
section 812(a)(2), the following new item:

``2226. Contracted property and services: prompt payment of 
                            vouchers.''.
    (b) Effective Date.--Section 2226 of title 10, United States Code 
(as added by subsection (a)), shall take effect on December 1, 2000.
    (c) Conditional Requirement for Report.--(1) If for any month of 
the noncompliance reporting period the requirement in section 2226 of 
title 10, United States Code (as added by subsection (a)), is not met, 
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 magnitude of the unpaid contract 
vouchers. The report for a month shall be submitted not later than 30 
days after the end of that month.
    (2) A report for a month under paragraph (1) shall include 
information current as of the last day of the month as follows:
            (A) The number of the vouchers received by the Defense 
        Finance and Accounting Service by means of the mechanization of 
        contract administration services system during each month.
            (B) The number of the vouchers so received, whenever 
        received by the Defense Finance and Accounting Service, that 
        remain unpaid for each of the following periods:
                    (i) Over 30 days and not more than 60 days.
                    (ii) Over 60 days and not more than 90 days.
                    (iii) More than 90 days.
            (C) The number of the vouchers so received that remain 
        unpaid for the major categories of procurements, as defined by 
        the Secretary of Defense.
            (D) The corrective actions that are necessary, and those 
        that are being taken, to ensure compliance with the requirement 
        in subsection (a).
    (3) For purposes of this subsection:
            (A) The term ``noncompliance reporting period'' means the 
        period beginning on December 1, 2000, and ending on November 
        30, 2004.
            (B) The term ``contract voucher'' has the meaning given 
        that term in section 2226(b) of title 10, United States Code 
        (as added by subsection (a)).

SEC. 1007. PLAN FOR PROMPT RECORDING OF OBLIGATIONS OF FUNDS FOR 
              CONTRACTUAL TRANSACTIONS.

    (a) Requirement for Plan.--The Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives, not later than November 15, 2000, a plan for ensuring 
that each obligation of the Department of Defense under a transaction 
described in subsection (c) be recorded in the appropriate financial 
administration systems of the Department of Defense not later than 10 
days after the date on which the obligation is incurred.
    (b) Content of Plan.--The plan under subsection (a) shall provide 
for the following:
            (1) The recording of obligations in accordance with 
        requirements that apply uniformly throughout the Department of 
        Defense, including requirements for the recording of detailed 
        data on each such obligation.
            (2) A system of accounting classification reference numbers 
        for the recording of obligations that applies uniformly 
        throughout the Department of Defense.
            (3) A discussion of how the plan is to be implemented, 
        including a schedule for implementation.
    (c) Covered Transactions.--The plan shall apply to each obligation 
under any of the following transactions of the Department of Defense:
            (1) A contract.
            (2) A grant.
            (3) A cooperative agreement.
            (4) A transaction authorized under section 2371 of title 
        10, United States Code.

SEC. 1008. ELECTRONIC SUBMISSION AND PROCESSING OF CLAIMS FOR CONTRACT 
              PAYMENTS.

    (a) Requirements.--(1) Chapter 131 of title 10, United States Code, 
is amended by adding after section 2226, as added by section 
1006(a)(1), the following new section:
``Sec. 2227. Electronic submission and processing of claims for 
              contract payments
    ``(a) Submission of Claims.--The Secretary of Defense shall require 
that any claim for payment under a Department of Defense contract shall 
be submitted to the Department of Defense in electronic form.
    ``(b) Processing.--A contracting officer, contract administrator, 
certifying official, or other officer or employee of the Department of 
Defense who receives a claim for payment in electronic form in 
accordance with subsection (a) and is required to transmit the claim to 
any other officer or employee of the Department of Defense for 
processing under procedures of the department shall transmit the claim 
and any additional documentation necessary to support the determination 
and payment of the claim to such other officer or employee 
electronically.
    ``(c) Waiver Authority.--If the Secretary of Defense determines 
that the requirement for using electronic means for submitting claims 
under subsection (a), or for transmitting claims and supporting 
documentation under subsection (b), is unduly burdensome in any 
category of cases, the Secretary may exempt the cases in that category 
from the application of the requirement.
    ``(d) Implementation of Requirements.--In implementing subsections 
(a) and (b), the Secretary of Defense shall provide for the following:
            ``(1) Policies, requirements, and procedures for using 
        electronic means for the submission of claims for payment to 
        the Department of Defense and for the transmission, between 
        Department of Defense officials, of claims for payment received 
        in electronic form, together with supporting documentation 
        (such as receiving reports, contracts and contract 
        modifications, and required certifications).
            ``(2) The format in which information can be accepted by 
        the corporate database of the Defense Finance and Accounting 
        Service.
            ``(3) The requirements to be included in contracts 
        regarding the electronic submission of claims for payment by 
        contractors.
    ``(e) Claim for Payment Defined.--In this section, the term `claim 
for payment' means an invoice or any other demand or request for 
payment.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2226, as added by 
section 1006(a)(2), the following new item:

``2227. Electronic submission and processing of claims for contract 
                            payments.''.
    (b) Implementation Plan.--Not later than March 30, 2001, the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a plan for the 
implementation of the requirements imposed under section 2227 of title 
10, United States Code (as added by subsection (a)). The plan shall 
provide for each of the matters specified in subsection (d) of that 
section.
    (c) Applicability.--(1) Subject to paragraph (2), the Secretary of 
Defense shall apply section 2227 of title 10, United States Code (as 
added by subsection (a)), with respect to contracts for which 
solicitations of offers are issued after June 30, 2001.
    (2)(A) The Secretary may delay the implementation of section 2227 
to a date after June 30, 2001, upon a finding that it is impracticable 
to implement that section until that later date. In no event, however, 
may the implementation be delayed to a date after October 1, 2002.
    (B) Upon determining to delay the implementation of such section 
2227 to a later date under subparagraph (A), the Secretary shall 
promptly publish a notice of the delay in the Federal Register. The 
notice shall include a specification of the later date on which the 
implementation of that section is to begin. Not later than 30 days 
before the later implementation date, the Secretary shall publish in 
the Federal Register another notice that such section is being 
implemented beginning on that date.

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

    (a) Offsets for Overpayments or Liquidated Damages.--(1) Section 
2636 of title 10, United States Code, is amended to read as follows:
``Sec. 2636. Deductions from amounts due carriers
    ``(a) Amounts for Loss or Damage.--An amount deducted from an 
amount due a carrier shall be credited as follows:
            ``(1) If deducted because of loss of or damage to material 
        in transit for a military department, the amount shall be 
        credited to the proper appropriation, account, or fund from 
        which the same or similar material may be replaced.
            ``(2) If deducted as an administrative offset for an 
        overpayment previously made to the carrier under any Department 
        of Defense contract for transportation services or as 
        liquidated damages due under any such contract, the amount 
        shall be credited to the appropriation or account from which 
        payments for the transportation services were made.
    ``(b) Simplified Offset for Collection of Claims Not in Excess of 
the Simplified Acquisition Threshold.--(1) In any case in which the 
total amount of a claim for the recovery of overpayments or liquidated 
damages under a contract described in subsection (a)(2) does not exceed 
the simplified acquisition threshold, the Secretary of Defense or the 
Secretary concerned, in exercising the authority to collect the claim 
by administrative offset under section 3716 of title 31, may apply 
paragraphs (2) and (3) of subsection (a) of that section with respect 
to that collection after (rather than before) the claim is so 
collected.
    ``(2) Regulations prescribed by the Secretary of Defense under 
subsection (b) of section 3716 of title 31--
            ``(A) shall include provisions to carry out paragraph (1); 
        and
            ``(B) shall provide the carrier for a claim subject to 
        paragraph (1) with an opportunity to offer an alternative 
        method of repaying the claim (rather than by administrative 
        offset) if the collection of the claim by administrative offset 
        has not already been made.
    ``(3) In this subsection, the term `simplified acquisition 
threshold' has the meaning given that term in section 4(11) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 157 of such title is amended to read as 
follows:

``2636. Deductions from amounts due carriers.''.
    (b) Effective Date.--Subsections (a)(2) and (b) of section 2636 of 
title 10, United States Code, as added by subsection (a)(1), shall 
apply with respect to contracts entered into after the date of the 
enactment of this Act.

SEC. 1010. INTEREST PENALTIES FOR LATE PAYMENT OF INTERIM PAYMENTS DUE 
              UNDER GOVERNMENT SERVICE CONTRACTS.

    (a) Prompt Payment Requirement for Interim Payments.--Under 
regulations prescribed under subsection (c), the head of an agency 
acquiring services from a business concern under a cost reimbursement 
contract requiring interim payments who does not pay the concern a 
required interim payment by the date that is 30 days after the date of 
the receipt of a proper invoice shall pay an interest penalty to the 
concern on the amount of the payment due. The interest shall be 
computed as provided in section 3902(a) of title 31, United States 
Code.
    (b) Regulations.--The Director of the Office of Management and 
Budget shall prescribe regulations to carry out this section. Such 
regulations shall be prescribed as part of the regulations prescribed 
under section 3903 of title 31, United States Code.
    (c) Incorporation of Certain Provisions of Law.--The provisions of 
chapter 39 of title 31, United States Code, shall apply to this section 
in the same manner as if this section were enacted as part of such 
chapter.
    (d) Effective Date.--Subsection (a) shall take effect on December 
15, 2000. No interest shall accrue by reason of that subsection for any 
period before that date.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. REVISIONS TO NATIONAL DEFENSE FEATURES PROGRAM.

    Section 2218(k) of title 10, United States Code, is amended--
            (1) by adding at the end of paragraph (1) the following new 
        sentence: ``As consideration for a contract with the head of an 
        agency under this subsection, the company entering into the 
        contract shall agree with the Secretary of Defense to make any 
        vessel covered by the contract available to the Secretary, 
        fully crewed and ready for sea, at any time at any port 
        determined by the Secretary, and for whatever duration the 
        Secretary determines necessary.'';
            (2) by adding at the end of paragraph (2) the following new 
        subparagraph:
            ``(E) Payments of such sums as the Government would 
        otherwise expend, if the vessel were placed in the Ready 
        Reserve Fleet, for maintaining the vessel in the status 
        designated as `ROS-4 status' in the Ready Reserve Fleet for 25 
        years.''; and
            (3) by adding at the end the following new paragraph:
    ``(6) The head of an agency may not enter into a contract under 
paragraph (1) that would provide for payments to the contractor as 
authorized in paragraph (2)(E) until notice of the proposed contract is 
submitted to the congressional defense committees and a period of 90 
days has elapsed.''.

SEC. 1012. SENSE OF CONGRESS ON THE NAMING OF THE CVN-77 AIRCRAFT 
              CARRIER.

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

SEC. 1013. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN 
              COUNTRIES.

    (a) Transfers by Grant.--The President is authorized to transfer 
vessels to foreign countries on a grant basis under section 516 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:
            (1) Brazil.--To the Government of Brazil--
                    (A) the THOMASTON class dock landing ships ALAMO 
                (LSD 33) and HERMITAGE (LSD 34); and
                    (B) the GARCIA class frigates BRADLEY (FF 1041), 
                DAVIDSON (FF 1045), SAMPLE (FF 1048) and ALBERT DAVID 
                (FF 1050).
            (2) Greece.--To the Government of Greece, the KNOX class 
        frigates VREELAND (FF 1068) and TRIPPE (FF 1075).
    (b) Transfers on a Combined Lease-Sale Basis.--(1) The President is 
authorized to transfer vessels to foreign countries on a combined 
lease-sale basis under sections 61 and 21 of the Arms Export Control 
Act (22 U.S.C. 2796 and 2761) and in accordance with subsection (c) as 
follows:
            (A) Chile.--To the Government of Chile, the OLIVER HAZARD 
        PERRY class guided missile frigates WADSWORTH (FFG 9), and 
        ESTOCIN (FFG 15).
            (B) Turkey.--To the Government of Turkey, the OLIVER HAZARD 
        PERRY class guided missile frigates JOHN A. MOORE (FFG 19) and 
        FLATLEY (FFG 21).
    (2) The authority provided under paragraph (1)(B) is in addition to 
the authority provided under section 1018(a)(9) of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 
745) for the transfer of those vessels to the Government of Turkey on a 
sale basis under section 21 of the Arms Export Control Act (22 U.S.C. 
2761).
    (c) Conditions Relating to Combined Lease-Sale Transfers.--A 
transfer of a vessel on a combined lease-sale basis authorized by 
subsection (b) shall be made in accordance with the following 
requirements:
            (1) The President may initially transfer the vessel by 
        lease, with lease payments suspended for the term of the lease, 
        if the country entering into the lease for the vessel 
        simultaneously enters into a foreign military sales agreement 
        for the transfer of title to the vessel.
            (2) The President may not deliver to the purchasing country 
        title to the vessel until the purchase price of the vessel 
        under such a foreign military sales agreement is paid in full.
            (3) Upon payment of the purchase price in full under such a 
        sales agreement and delivery of title to the recipient country, 
        the President shall terminate the lease.
            (4) If the purchasing country fails to make full payment of 
        the purchase price in accordance with the sales agreement by 
        the date required under the sales agreement--
                    (A) the sales agreement shall be immediately 
                terminated;
                    (B) the suspension of lease payments under the 
                lease shall be vacated; and
                    (C) the United States shall be entitled to retain 
                all funds received on or before the date of the 
                termination under the sales agreement, up to the amount 
                of the lease payments due and payable under the lease 
                and all other costs required by the lease to be paid to 
                that date.
            (5) If a sales agreement is terminated pursuant to 
        paragraph (4), the United States shall not be required to pay 
        any interest to the recipient country on any amount paid to the 
        United States by the recipient country under the sales 
        agreement and not retained by the United States under the 
        lease.
    (d) Authorization of Appropriations for Costs of Lease-Sale 
Transfers.--There is hereby authorized to be appropriated into the 
Defense Vessels Transfer Program Account such sums as may be necessary 
for paying the costs (as defined in section 502 of the Congressional 
Budget Act of 1974 (2 U.S.C. 661a)) of the lease-sale transfers 
authorized by subsection (b). Amounts so appropriated shall be 
available only for the purpose of paying those costs.
    (e) Grants Not Counted in Annual Total of Transferred Excess 
Defense Articles.--The value of a vessel transferred to another country 
on a grant basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j) pursuant to authority provided by subsection (a) 
shall not be counted for the purposes of subsection (g) of that section 
in the aggregate value of excess defense articles transferred to 
countries under that section in any fiscal year.
    (f) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by this section shall be 
charged to the recipient (notwithstanding section 516(e)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1))) in the case of 
a transfer authorized to be made on a grant basis under subsection 
(a)).
    (g) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the President shall require, as a condition 
of the transfer of a vessel under this section, that the country to 
which the vessel is transferred have such repair or refurbishment of 
the vessel as is needed, before the vessel joins the naval forces of 
that country, performed at a shipyard located in the United States, 
including a United States Navy shipyard.
    (h) Expiration of Authority.--The authority to transfer a vessel 
under this section shall expire at the end of the two-year period 
beginning on the date of the enactment of this Act.
    (i) Coordination of Provisions.--(1) If the Security Assistance Act 
of 2000 is enacted before this Act, the provisions of this section 
shall not take effect.
    (2) If the Security Assistance Act of 2000 is enacted after this 
Act, this section shall cease to be in effect upon the enactment of 
that Act.

SEC. 1014. AUTHORITY TO CONSENT TO RETRANSFER OF ALTERNATIVE FORMER 
              NAVAL VESSEL BY GOVERNMENT OF GREECE.

    (a) Authority for Retransfer of Alternative Vessel.--Section 1012 
of the National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65; 113 Stat. 740) is amended--
            (1) in subsection (a), by inserting after ``HS Rodos (ex-
        USS BOWMAN COUNTY (LST 391))'' the following: ``, LST 325, or 
        any other former United States LST previously transferred to 
        the Government of Greece that is excess to the needs of that 
        government''; and
            (2) in subsection (b)(1), by inserting ``retransferred 
        under subsection (a)'' after ``the vessel''.
    (b) Repeal.--Section 1305 of the Arms Control, Nonproliferation, 
and Security Assistance Act of 1999 (113 Stat. 1501A-511) is repealed.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. EXTENSION OF AUTHORITY TO PROVIDE SUPPORT FOR COUNTER-DRUG 
              ACTIVITIES OF COLOMBIA.

    (a) Extension of Authority.--Section 1033 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1881) is amended--
            (1) in subsection (a), by striking ``during fiscal years 
        1998 through 2002,''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting before the 
                period at the end the following: ``, for fiscal years 
                1998 through 2002''; and
                    (B) in paragraph (2), by inserting before the 
                period at the end the following: ``, for fiscal years 
                1998 through 2006''.
    (b) Maximum Annual Amount of Support.--Subsection (e)(2) of such 
section is amended by striking ``2002'' and inserting ``2006''.

SEC. 1022. REPORT ON DEPARTMENT OF DEFENSE EXPENDITURES TO SUPPORT 
              FOREIGN COUNTER-DRUG ACTIVITIES.

    Not later than January 1, 2001, the Secretary of Defense shall 
submit to the congressional defense committees a report detailing the 
expenditure of funds by the Secretary during fiscal year 2000 in direct 
or indirect support of the counter-drug activities of foreign 
governments. The report shall include the following for each foreign 
government:
            (1) The total amount of assistance provided to, or expended 
        on behalf of, the foreign government.
            (2) A description of the types of counter-drug activities 
        conducted using the assistance.
            (3) An explanation of the legal authority under which the 
        assistance was provided.

SEC. 1023. RECOMMENDATIONS ON EXPANSION OF SUPPORT FOR COUNTER-DRUG 
              ACTIVITIES.

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

SEC. 1024. REVIEW OF RIVERINE COUNTER-DRUG PROGRAM.

    (a) Requirement for Review.--The Secretary of Defense shall review 
the riverine counter-drug program supported under section 1033 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1881).