[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3230 Enrolled Bill (ENR)]

        H.R.3230

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six


                                 An Act


 
To authorize appropriations for fiscal year 1997 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.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 1997''.

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.
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. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.

                        Subtitle B--Army Programs

Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior 
helicopters.
Sec. 112. Multiyear procurement authority for Army programs.
Sec. 113. Bradley TOW 2 Test Program sets.

                        Subtitle C--Navy Programs

Sec. 121. Nuclear attack submarine programs.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. EA-6B aircraft reactive jammer program.
Sec. 124. T-39N trainer aircraft for the Navy.
Sec. 125. Penguin missile program.

                     Subtitle D--Air Force Programs

Sec. 131. Repeal of limitation on procurement of F-15E aircraft.
Sec. 132. Modification to multiyear procurement authority for C-17 
aircraft program.

                        Subtitle E--Other Matters

Sec. 141. Assessments of modernization priorities of the Reserve 
components.
Sec. 142. Destruction of existing stockpile of lethal chemical agents 
and munitions.
Sec. 143. Extension of authority to carry out Armament Retooling and 
Manufacturing Support Initiative.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology programs.
Sec. 204. Defense Special Weapons Agency.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Space-Based Infrared System program.
Sec. 213. Clementine 2 micro-satellite development program.
Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.
Sec. 215. Live-fire survivability testing of F-22 aircraft.
Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance 
aircraft.
Sec. 217. Cost analysis of F-22 aircraft program.
Sec. 218. F-22 aircraft program reports.
Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.
Sec. 220. Joint Advanced Strike Technology (JAST) program.
Sec. 221. Unmanned aerial vehicles.
Sec. 222. High altitude endurance unmanned aerial reconnaissance system.
Sec. 223. Cyclone class patrol craft self-defense.
Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber 
Optic Guided Missile (EFOG-M) system.
Sec. 225. Hydra-70 rocket product improvement program.
Sec. 226. Federally funded research and development centers.
Sec. 227. Demilitarization of conventional munitions, rockets, and 
explosives.
Sec. 228. Research activities of the Defense Advanced Research Projects 
Agency relating to chemical and biological warfare defense technology.
Sec. 229. Certification of capability of United States to prevent 
illegal importation of nuclear, biological, or chemical weapons.
Sec. 230. Nonlethal weapons and technologies programs.
Sec. 231. Counterproliferation support program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal year 
1997.
Sec. 242. Certification of capability of United States to defend against 
single ballistic missile.
Sec. 243. Report on ballistic missile defense and proliferation.
Sec. 244. Revision to annual report on ballistic missile defense 
program.
Sec. 245. Report on Air Force National Missile Defense Plan.
Sec. 246. Capability of National Missile Defense system.
Sec. 247. Actions to limit adverse effects on private sector employment 
of establishment of National Missile Defense Joint Program Office.
Sec. 248. ABM Treaty defined.

                        Subtitle D--Other Matters

Sec. 261. Maintenance and repair at Air Force installations.
Sec. 262. Report relating to Small Business Innovation Research Program.
Sec. 263. Amendment to University Research Initiative Support program.
Sec. 264. Amendments to Defense Experimental Program To Stimulate 
Competitive Research.
Sec. 265. Elimination of report on the use of competitive procedures for 
the award of certain contracts to colleges and universities.
Sec. 266. Pilot program for transfer of defense technology information 
to private industry.
Sec. 267. Research under transactions other than contracts and grants.
Sec. 268. Desalting technologies.
Sec. 269. Evaluation of digital video network equipment used in Olympic 
games.
Sec. 270. Annual joint warfighting science and technology plan.

         Subtitle E--National Oceanographic Partnership Program

Sec. 281. Findings.
Sec. 282. National Oceanographic Partnership Program.

                  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. Civil Air Patrol Corporation.
Sec. 306. Availability of additional funds for antiterrorism activities.
Sec. 307. Nonlethal weapons capabilities.
Sec. 308. SR-71 contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval shipyards 
to engage in defense-related production and services.
Sec. 312. Test programs for modernization-through-spares.

                  Subtitle C--Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on 
contractor reimbursement costs for response actions.
Sec. 322. Establishment of separate environmental restoration accounts 
for each military department.
Sec. 323. Payment of stipulated penalties assessed under CERCLA.
Sec. 324. Shipboard solid waste control.
Sec. 325. Authority to develop and implement land use plans for defense 
environmental restoration program.
Sec. 326. Pilot program to test alternative technology for limiting air 
emissions during shipyard blasting and coating operations.
Sec. 327. Agreements for services of other agencies in support of 
environmental technology certification.
Sec. 328. Repeal of redundant notification and consultation requirements 
regarding remedial investigations and feasibility studies at certain 
installations to be closed under the base closure laws.
Sec. 329. Authority for agreements with Indian tribes for services under 
environmental restoration program.
Sec. 330. Authority to withhold listing of Federal facilities on 
National Priorities List.
Sec. 331. Clarification of meaning of uncontaminated property for 
purposes of transfer by the United States.
Sec. 332. Conservation and cultural activities.
Sec. 333. Navy program to monitor ecological effects of organotin.
Sec. 334. Authority to transfer contaminated Federal property before 
completion of required response actions.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and 
services to promote efficient operation and management of exchanges and 
morale, welfare, and recreation activities.
Sec. 342. Noncompetitive procurement of brand-name commercial items for 
resale in commissary stores.
Sec. 343. Prohibition of sale or rental of sexually explicit material.

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

Sec. 351. Extension of requirement for competitive procurement of 
printing and duplication services.
Sec. 352. Reporting requirements under demonstration project for 
purchase of fire, security, police, public works, and utility services 
from local government agencies.

                        Subtitle F--Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting 
functions.
Sec. 362. Training of members of the uniformed services at non-
Government facilities.
Sec. 363. Requirement for preparation of plan for improved operation of 
working-capital funds and effect of failure to produce an approved plan.
Sec. 364. Increase in capital asset threshold under Defense Business 
Operations Fund.
Sec. 365. Expansion of authority to donate unusable food.
Sec. 366. Assistance to committees involved in inauguration of the 
President.
Sec. 367. Department of Defense support for sporting events.
Sec. 368. Storage of motor vehicle in lieu of transportation.
Sec. 369. Security protections at Department of Defense facilities in 
National Capital Region.
Sec. 370. Administration of midshipmen's store and other naval academy 
support activities as nonappropriated fund instrumentality.
Sec. 371. Reimbursement under agreement for instruction of civilian 
students at Foreign Language Institute of the Defense Language 
Institute.
Sec. 372. Assistance to local educational agencies that benefit 
dependents of members of the Armed Forces and Department of Defense 
civilian employees.
Sec. 373. Renovation of building for Defense Finance and Accounting 
Service Center, Fort Benjamin Harrison, Indiana.
Sec. 374. Food donation pilot program at service academies.
Sec. 375. Authority of Air National Guard to provide certain services at 
Lincoln Municipal Airport, Lincoln, Nebraska.
Sec. 376. Technical amendment regarding Impact Aid program.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
contingencies.
Sec. 403. Authorized strengths for commissioned officers on active duty 
in grades of major, lieutenant colonel, and colonel and Navy grades of 
lieutenant commander, commander, and captain.
Sec. 404. Extension of requirement for recommendations regarding 
appointments to joint 4-star officer positions.
Sec. 405. Increase in authorized number of general officers on active 
duty in the Marine Corps.

                       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.
Sec. 414. Assurance of continued assignment of military personnel to 
serve in Selective Service System.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.
Sec. 502. Chief and Assistant Chief of Army Nurse Corps and Air Force 
Nurse Corps.
Sec. 503. Navy spot promotion authority for certain lieutenants with 
critical skills.
Sec. 504. Time for award of degrees by unaccredited educational 
institutions for graduates to be considered educationally qualified for 
appointment as Reserve officers in grade O-3.
Sec. 505. Exception to baccalaureate degree requirement for appointment 
in the Naval Reserve in grades above O-2.
Sec. 506. Chief warrant officer promotions.
Sec. 507. Service credit for senior ROTC cadets and midshipmen in 
simultaneous membership program.
Sec. 508. Continuation on active status for certain Reserve officers of 
the Air Force.
Sec. 509. Reports on response to recommendations concerning improvements 
to Department of Defense joint manpower process.
Sec. 510. Frequency of reports to Congress on joint officer management 
policies.

                  Subtitle B--Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 
years of service.
Sec. 512. Authority to extend period for entry on active duty under the 
delayed entry program.

                    Subtitle C--Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.
Sec. 522. Clarification of definition of active status.
Sec. 523. Limitation of requirement for physical examinations of members 
of National Guard called into Federal service.

                Subtitle D--Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training 
creditable toward Reserve retirement.
Sec. 532. Retirement of Reserve enlisted members who qualify for active 
duty retirement after administrative reduction in enlisted grade.
Sec. 533. Authority for a Reserve on active duty to waive retirement 
sanctuary.
Sec. 534. Eligibility of Reserves for disability retirement.

               Subtitle E--Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the 
Reserves.
Sec. 542. Eligibility for enrollment in Ready Reserve mobilization 
income insurance program.
Sec. 543. Reserve credit for participation in Health Professions 
Scholarship and Financial Assistance Program.
Sec. 544. Amendments to Reserve Officer Personnel Management Act 
provisions.
Sec. 545. Report on number of advisers in active component support of 
Reserves pilot program.
Sec. 546. Sense of Congress and report regarding reemployment rights for 
mobilized Reservists employed in foreign countries.
Sec. 547. Payment of premiums under Mobilization Income Insurance 
Program.

                 Subtitle F--Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers' Training 
Corps program.
Sec. 552. Prohibition on reorganization of Army ROTC cadet command or 
termination of senior ROTC units pending report on ROTC.
Sec. 553. Pilot program to test expansion of ROTC program to include 
graduate students.
Sec. 554. Demonstration project for instruction and support of Army ROTC 
units by members of the Army Reserve and National Guard.
Sec. 555. Extension of maximum age for appointment as a cadet or 
midshipman in the Senior Reserve Officers' Training Corps and the 
service academies.
Sec. 556. Expansion of eligibility for education benefits to include 
certain Reserve Officers' Training Corps (ROTC) participants.
Sec. 557. Comptroller General report on cost and policy implications of 
permitting up to five percent of service academy graduates to be 
assigned directly to Reserve duty upon graduation.

                   Subtitle G--Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African 
American soldiers who served during World War II.
Sec. 562. Waiver of time limitations for award of certain decorations to 
specified persons.
Sec. 563. Replacement of certain American Theater Campaign Ribbons.

                        Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.
Sec. 572. Disability coverage for members granted excess leave for 
educational or emergency purposes.
Sec. 573. Clarification of authority of a Reserve judge advocate to act 
as a military notary public when not in a duty status.
Sec. 574. Panel on jurisdiction of courts-martial for the National Guard 
when not in Federal service.
Sec. 575. Authority to expand law enforcement placement program to 
include firefighters.
Sec. 576. Improvements to program to assist separated military and 
civilian personnel to obtain employment as teachers or teachers' aides.
Sec. 577. Retirement at grade to which selected for promotion when a 
physical disability is found at any physical examination.
Sec. 578. Revisions to missing persons authorities.

       Subtitle I--Commissioned Corps of the Public Health Service

Sec. 581. Applicability to Public Health Service of prohibition on 
crediting cadet or midshipmen service at the service academies.
Sec. 582. Exception to strength limitations for Public Health Service 
officers assigned to the Department of Defense.
Sec. 583. Authority to provide legal assistance to Public Health Service 
officers.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.
Sec. 602. Adjustment of rate of cadet and midshipman pay.
Sec. 603. Pay of senior noncommissioned officers while hospitalized.
Sec. 604. Availability of basic allowance for quarters for certain 
members without dependents who serve on sea duty.
Sec. 605. Uniform applicability of discretion to deny an election not to 
occupy Government quarters.
Sec. 606. Establishment of minimum monthly amount of variable housing 
allowance for high housing cost areas.
Sec. 607. Family separation allowance for members separated by military 
orders from spouses who are members.
Sec. 608. Waiver of time limitations for claim for pay and allowances.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
authorities for nurse officer candidates, registered nurses, and nurse 
anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
bonuses and special pays.
Sec. 614. Special pay for certain Public Health Service officers.
Sec. 615. Special incentives to recruit and retain dental officers.
Sec. 616. Foreign language proficiency pay for Public Health Service and 
National Oceanic and Atmospheric Administration officers.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at 
Government expense.
Sec. 622. Dislocation allowance at a rate equal to two and one-half 
months basic allowance for quarters.
Sec. 623. Allowance for travel performed in connection with leave 
between consecutive overseas tours.
Sec. 624. Funding for transportation of household effects of Public 
Health Service officers.

     Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 631. Effective date for military retiree cost-of-living adjustment 
for fiscal year 1998.
Sec. 632. Clarification of initial computation of retiree COLAs after 
retirement.
Sec. 633. Suspension of payment of retired pay of members who are absent 
from the United States to avoid prosecution.
Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.
Sec. 635. Increases in Survivor Benefit Plan contributions to be 
effective concurrently with payment of retired pay cost-of-living 
increases.
Sec. 636. Amendments to the Uniformed Services Former Spouses' 
Protection Act.
Sec. 637. Prevention of circumvention of court order by waiver of 
retired pay to enhance civil service retirement annuity.
Sec. 638. Administration of benefits for so-called minimum income 
widows.

                        Subtitle E--Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer 
pay.
Sec. 652. Reimbursement for adoption expenses incurred in adoptions 
through private placements.
Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from 
certain separation pay.
Sec. 654. Technical correction clarifying limitation on furnishing 
clothing or allowances for enlisted National Guard technicians.
Sec. 655. Technical correction to prior authority for payment of back 
pay to certain persons.
Sec. 656. Compensation for persons awarded prisoner of war medal who did 
not previously receive compensation as a prisoner of war.
Sec. 657. Payments to certain persons captured and interned by North 
Vietnam.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Preventive health care screening for colon and prostate 
cancer.
Sec. 702. Implementation of requirement for Selected Reserve dental 
insurance plan.
Sec. 703. Dental insurance plan for military retirees and unremarried 
surviving spouses and certain other dependents of military retirees.
Sec. 704. Plan for health care coverage for children with medical 
conditions caused by parental exposure to chemical munitions while 
serving as members of the Armed Forces.

                       Subtitle B--TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.
Sec. 712. Improved information exchange between military treatment 
facilities and TRICARE program contractors.
Sec. 713. Plans for medicare subvention demonstration programs.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Definitions.
Sec. 722. Inclusion of designated providers in uniformed services health 
care delivery system.
Sec. 723. Provision of uniform benefit by designated providers.
Sec. 724. Enrollment of covered beneficiaries.
Sec. 725. Application of CHAMPUS payment rules.
Sec. 726. Payments for services.
Sec. 727. Repeal of superseded authorities.

    Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically 
necessary treatment in connection with certain clinical trials.
Sec. 732. Exception to maximum allowable payments to individual health-
care providers under CHAMPUS.
Sec. 733. Codification of annual authority to credit CHAMPUS refunds to 
current year appropriation.
Sec. 734. Exceptions to requirements regarding obtaining 
nonavailability-of-health-care statements.
Sec. 735. Enhancement of third-party collection and secondary payer 
authorities under CHAMPUS.

                        Subtitle E--Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed 
Forces Health Professions Scholarship and Financial Assistance program 
and Uniformed Services University of the Health Sciences.
Sec. 742. External peer review for defense health program extramural 
medical research involving human subjects.
Sec. 743. Independent research regarding Gulf War syndrome.
Sec. 744. Comptroller General review of health care activities of 
Department of Defense relating to Gulf War illnesses.
Sec. 745. Report regarding specialized treatment facility program.
Sec. 746. Study of means of ensuring uniformity in provision of medical 
and dental care for members of Reserve components.
Sec. 747. Sense of Congress regarding tax treatment of Armed Forces 
Health Professions Scholarship and Financial Assistance program.

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

                   Subtitle A--Acquisition Management

Sec. 801. Procurement technical assistance programs.
Sec. 802. Extension of pilot mentor-protege program.
Sec. 803. Authority to waive certain requirements for defense 
acquisition pilot programs.
Sec. 804. Modification of authority to carry out certain prototype 
projects.
Sec. 805. Increase in threshold amounts for major systems.
Sec. 806. Revisions in information required to be included in selected 
acquisition reports.
Sec. 807. Increase in simplified acquisition threshold for humanitarian 
or peacekeeping operations.
Sec. 808. Expansion of audit reciprocity among Federal agencies to 
include post-award audits.
Sec. 809. Excessive compensation of certain contractor personnel.
Sec. 810. Exception to prohibition on procurement of foreign goods.

                        Subtitle B--Other Matters

Sec. 821. Prohibition on release of contractor proposals under Freedom 
of Information Act.
Sec. 822. Amendments relating to reports on procurement regulatory 
activity.
Sec. 823. Amendment of multiyear limitation on contracts for inspection, 
maintenance, and repair.
Sec. 824. Streamlined notice requirements to contractors and employees 
regarding termination or substantial reduction in contracts under major 
defense programs.
Sec. 825. Repeal of notice requirements for substantially or seriously 
affected parties in downsizing efforts.
Sec. 826. Study of effectiveness of defense mergers.
Sec. 827. Annual report relating to Buy American Act.
Sec. 828. Foreign environmental technology.
Sec. 829. Assessment of national defense technology and industrial base 
and dependency of base on supplies available only from foreign 
countries.
Sec. 830. Expansion of report on implementation of automated information 
systems to include additional matters regarding information resources 
management.
Sec. 831. Year 2000 software conversion.
Sec. 832. Procurement from firms in industrial base for production of 
small arms.
Sec. 833. Cable television franchise agreements.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

Sec. 901. Repeal of previously enacted reduction in number of statutory 
positions in Office of the Secretary of Defense.
Sec. 902. Additional required reduction in defense acquisition 
workforce.
Sec. 903. Reduction of personnel assigned to Office of the Secretary of 
Defense.
Sec. 904. Report on military department headquarters staffs.
Sec. 905. Matters to be considered in next assessment of current 
missions, responsibilities, and force structure of the unified combatant 
commands.
Sec. 906. Transfer of authority to control transportation systems in 
time of war.
Sec. 907. Codification of requirements relating to continued operation 
of the Uniformed Services University of the Health Sciences.
Sec. 908. Joint Requirements Oversight Council.
Sec. 909. Membership of the Ammunition Storage Board.
Sec. 910. Removal of Secretary of the Army from membership on the 
Foreign Trade Zone Board.
Sec. 911. Composition of aircraft accident investigation boards.
Sec. 912. Mission of the White House Communications Agency.

                   Subtitle B--Force Structure Review

Sec. 921. Short title.
Sec. 922. Findings.
Sec. 923. Quadrennial Defense Review.
Sec. 924. National Defense Panel.
Sec. 925. Postponement of deadlines.
Sec. 926. Definitions.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of certain unauthorized fiscal year 
1996 defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
for fiscal year 1996.
Sec. 1005. Format for budget requests for Navy/Marine Corps and Air 
Force ammunition accounts.
Sec. 1006. Format for annual budget requests for Defense Airborne 
Reconnaissance Program.
Sec. 1007. Limitation on use of Department of Defense funds transferred 
to the Coast Guard.
Sec. 1008. Fisher House Trust Fund for the Department of the Navy.
Sec. 1009. Designation and liability of disbursing and certifying 
officials for the Coast Guard.
Sec. 1010. Authority to suspend or terminate collection actions against 
deceased members of the Coast Guard.
Sec. 1011. Department of Defense disbursing official check cashing and 
exchange transactions.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of 
contracts for phased maintenance of AE class ships.
Sec. 1022. Funding for second and third maritime prepositioning ships 
out of National Defense Sealift Fund.
Sec. 1023. Transfer of certain obsolete tugboats of the Navy.
Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.
Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

                   Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug 
activities of Mexico.
Sec. 1032. Availability of funds for certain drug interdiction and 
counter-drug activities.
Sec. 1033. Transfer of excess personal property to support law 
enforcement activities.
Sec. 1034. Sale by Federal departments or agencies of chemicals used to 
manufacture controlled substances.

                     Subtitle D--Reports and Studies

Sec. 1041. Annual report on Operation Provide Comfort and Operation 
Enhanced Southern Watch.
Sec. 1042. Annual report on emerging operational concepts.
Sec. 1043. Report on Department of Defense military child care programs.
Sec. 1044. Report on Department of Defense military youth programs.
Sec. 1045. Quarterly reports regarding coproduction agreements.
Sec. 1046. Report on witness interview procedures for Department of 
Defense criminal investigations.

Sec. 1047. Report on military readiness requirements of the Armed 
Forces.
Sec. 1048. Report on NATO enlargement.

         Subtitle E--Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.
Sec. 1052. Acceptance of uncompensated services.
Sec. 1053. Disposal of tract of real property in the District of 
Columbia.

                        Subtitle F--Other Matters

Sec. 1061. Policy on protection of national information infrastructure 
against strategic attack.
Sec. 1062. Information systems security program.
Sec. 1063. Authority to accept services from foreign governments and 
international organizations for defense purposes.
Sec. 1064. Prohibition on collection and release of detailed satellite 
imagery relating to Israel.
Sec. 1065. George C. Marshall European Center for Strategic Security 
Studies.
Sec. 1066. Authority to award to civilian participants in the defense of 
Pearl Harbor the Congressional Medal previously authorized only for 
military participants in the defense of Pearl Harbor.
Sec. 1067. Assimilative crimes authority for traffic offenses on 
military installations.
Sec. 1068. Uniform Code of Military Justice amendments.
Sec. 1069. Punishment of interstate stalking.
Sec. 1070. Participation of members, dependents, and other persons in 
crime prevention efforts at installations.
Sec. 1071. Display of State flags at installations and facilities of the 
Department of Defense.
Sec. 1072. Treatment of excess operational support airlift aircraft.
Sec. 1073. Correction to statutory references to certain Department of 
Defense organizations.
Sec. 1074. Technical and clerical amendments.
Sec. 1075. Modification to third-party liability to United States for 
tortious infliction of injury or disease on members of the uniformed 
services.
Sec. 1076. Chemical Stockpile Emergency Preparedness Program.
Sec. 1077. Exemption from requirements applicable to savings 
associations for certain savings institutions serving military 
personnel.
Sec. 1078. Improvements to National Security Education Program.
Sec. 1079. Aviation and vessel war risk insurance.
Sec. 1080. Designation of memorial as National D-Day Memorial.
Sec. 1081. Sense of Congress regarding semiconductor trade agreement 
between United States and Japan.
Sec. 1082. Agreements for exchange of defense personnel between the 
United States and foreign countries.
Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.
Sec. 1084. Defense burdensharing.

              TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY

Sec. 1101. Short title.
Sec. 1102. Findings.
Sec. 1103. Role of Director of Central Intelligence in appointment and 
evaluation of certain intelligence officials.

                   Subtitle A--Establishment of Agency

Sec. 1111. Establishment.
Sec. 1112. Missions and authority.
Sec. 1113. Transfers of personnel and assets.
Sec. 1114. Compatibility with authority under the National Security Act 
of 1947.
Sec. 1115. Creditable civilian service for career conditional employees 
of the Defense Mapping Agency.
Sec. 1116. Saving provisions.
Sec. 1117. Definitions.
Sec. 1118. Authorization of appropriations.

          Subtitle B--Conforming Amendments and Effective Dates

Sec. 1121. Redesignation and repeals.
Sec. 1122. Reference amendments.
Sec. 1123. Headings and clerical amendments.
Sec. 1124. Effective date.

                TITLE XII--RESERVE FORCES REVITALIZATION

Sec. 1201. Short title.
Sec. 1202. Purpose.

                 Subtitle A--Reserve Component Structure

Sec. 1211. Reserve component commands.
Sec. 1212. Reserve component chiefs.
Sec. 1213. Review of active duty and Reserve general and flag officer 
authorizations.
Sec. 1214. Guard and Reserve technicians.

               Subtitle B--Reserve Component Accessibility

Sec. 1231. Report to Congress on measures to improve National Guard and 
Reserve ability to respond to emergencies.
Sec. 1232. Report to Congress concerning tax incentives for employers of 
members of Reserve components.
Sec. 1233. Report to Congress concerning income insurance program for 
activated Reservists.
Sec. 1234. Report to Congress concerning small business loans for 
members released from Reserve service during contingency operations.

                 Subtitle C--Reserve Forces Sustainment

Sec. 1251. Report concerning tax deductibility of nonreimbursable 
expenses.
Sec. 1252. Authority to pay transient housing charges for members 
performing active duty for training.
Sec. 1253. Sense of Congress concerning quarters allowance during 
service on active duty for training.
Sec. 1254. Sense of Congress concerning military leave policy.
Sec. 1255. Reserve Forces Policy Board.
Sec. 1256. Report on parity of benefits for active duty service and 
Reserve service.
Sec. 1257. Information on proposed funding for the Guard and Reserve 
components in future-years defense programs.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

 Subtitle A--Arms Control, Counterproliferation Activities, and Related 
                                 Matters

Sec. 1301. Extension of counterproliferation authorities.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
nuclear delivery systems.
Sec. 1303. Strengthening certain sanctions against nuclear proliferation 
activities.
Sec. 1304. Authority to pay certain expenses relating to humanitarian 
and civic assistance for clearance of landmines.
Sec. 1305. Report on military capabilities of People's Republic of 
China.
Sec. 1306. Presidential report regarding weapons proliferation and 
policies of the People's Republic of China.
Sec. 1307. United States-People's Republic of China Joint Defense 
Conversion Commission.
Sec. 1308. Sense of Congress concerning export controls.
Sec. 1309. Counterproliferation Program Review Committee.
Sec. 1310. Sense of Congress concerning assisting other countries to 
improve security of fissile material.
Sec. 1311. Review by Director of Central Intelligence of National 
Intelligence Estimate 95-19.

  Subtitle B--Commission to Assess the Ballistic Missile Threat to the 
                              United States

Sec. 1321. Establishment of Commission.
Sec. 1322. Duties of Commission.
Sec. 1323. Report.
Sec. 1324. Powers.
Sec. 1325. Commission procedures.
Sec. 1326. Personnel matters.
Sec. 1327. Miscellaneous administrative provisions.
Sec. 1328. Funding.
Sec. 1329. Termination of the Commission.

         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.

                    Subtitle A--Domestic Preparedness

Sec. 1411. Response to threats of terrorist use of weapons of mass 
destruction.
Sec. 1412. Emergency response assistance program.
Sec. 1413. Nuclear, chemical, and biological emergency response.
Sec. 1414. Chemical-biological emergency response team.
Sec. 1415. Testing of preparedness for emergencies involving nuclear, 
radiological, chemical, and biological weapons.
Sec. 1416. Military assistance to civilian law enforcement officials in 
emergency situations involving biological or chemical weapons.
Sec. 1417. Rapid response information system.

  Subtitle B--Interdiction of Weapons of Mass Destruction and Related 
                                Materials

Sec. 1421. Procurement of detection equipment United States border 
security.
Sec. 1422. Extension of coverage of International Emergency Economic 
Powers Act.
Sec. 1423. Sense of Congress concerning criminal penalties.
Sec. 1424. International border security.

 Subtitle C--Control and Disposition of Weapons of Mass Destruction and 
             Related Materials Threatening the United States

Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative 
Threat Reduction programs on elimination or transportation of nuclear 
weapons.
Sec. 1432. Elimination of plutonium production.

     Subtitle D--Coordination of Policy and Countermeasures Against 
              Proliferation of Weapons of Mass Destruction

Sec. 1441. National Coordinator on Nonproliferation.
Sec. 1442. National Security Council Committee on Nonproliferation.
Sec. 1443. Comprehensive preparedness program.
Sec. 1444. Termination.

                        Subtitle E--Miscellaneous

Sec. 1451. Sense of Congress concerning contracting policy.
Sec. 1452. Transfers of allocations among Cooperative Threat Reduction 
programs.
Sec. 1453. Sense of Congress concerning assistance to states of former 
Soviet Union.
Sec. 1454. Purchase of low-enriched uranium derived from Russian highly 
enriched uranium.
Sec. 1455. Sense of Congress concerning purchase, packaging, and 
transportation of fissile materials at risk of theft.

  TITLE XV--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET 
                                  UNION

Sec. 1501. Specification of Cooperative Threat Reduction programs.
Sec. 1502. Fiscal year 1997 funding allocations.
Sec. 1503. Prohibition on use of funds for specified purposes.
Sec. 1504. Limitation on use of funds until specified reports are 
submitted.
Sec. 1505. Availability of funds.

           TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Subtitle A--Miscellaneous Matters Relating to Personnel Management, Pay, 
                             and Allowances

Sec. 1601. Modification of requirement for conversion of military 
positions to civilian positions.
Sec. 1602. Retention of civilian employee positions at military training 
bases transferred to National Guard.
Sec. 1603. Clarification of applicability of certain management 
constraints on major range and test facility base structure.
Sec. 1604. Travel expenses and health care for civilian employees of the 
Department of Defense abroad.
Sec. 1605. Travel, transportation, and relocation allowances for certain 
former nonappropriated fund employees.
Sec. 1606. Employment and salary practices applicable to Department of 
Defense overseas teachers.
Sec. 1607. Employment and compensation of civilian faculty members at 
certain Department of Defense schools.
Sec. 1608. Reimbursement of Department of Defense domestic dependent 
school board members for certain expenses.
Sec. 1609. Modification of authority for civilian employees of 
Department of Defense to participate voluntarily in reductions in force.
Sec. 1610. Wage-board compensatory time off.
Sec. 1611. Liquidation of restored annual leave that remains unused upon 
transfer of employee from installation being closed or realigned.
Sec. 1612. Waiver of requirement for repayment of Voluntary Separation 
Incentive pay by former Department of Defense employees reemployed by 
the Government without pay.
Sec. 1613. Simplification of rules relating to the observance of certain 
holidays.
Sec. 1614. Revision of certain travel management authorities.
Sec. 1615. Failure to comply with veterans' preference requirements to 
be treated as a prohibited personnel practice.
Sec. 1616. Pilot programs for defense employees converted to contractor 
employees due to privatization at closed military installations.

     Subtitle B--Department of Defense Intelligence Personnel Policy

Sec. 1631. Short title.
Sec. 1632. Management of civilian intelligence personnel.

Sec. 1633. Repeal of superseded sections and clerical and conforming 
amendments.
Sec. 1634. Other personnel management authorities.
Sec. 1635. Effective date.

               TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1701. Short title.

                     Subtitle A--Relocation Benefits

Sec. 1711. Allowance for seeking permanent residence quarters.
Sec. 1712. Temporary quarters subsistence expenses allowance.
Sec. 1713. Modification of residence transaction expenses allowance.
Sec. 1714. Authority to pay for property management services.
Sec. 1715. Authority to transport a privately owned motor vehicle within 
the continental United States.
Sec. 1716. Authority to pay limited relocation allowances to an employee 
who is performing an extended assignment.
Sec. 1717. Authority to pay a home marketing incentive.
Sec. 1718. Revision and reenactment of additional provisions relating to 
relocation expenses.

                  Subtitle B--Miscellaneous Provisions

Sec. 1721. Repeal of the long-distance telephone call certification 
requirement.
Sec. 1722. Transfer of authority to prescribe regulations.
Sec. 1723. Conforming and clerical amendments.
Sec. 1724. Assessment of cost savings.
Sec. 1725. Effective date and issuance of regulations.

     TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

Sec. 1801. Recognition and grant of Federal charter.
Sec. 1802. Powers.
Sec. 1803. Purposes.
Sec. 1804. Service of process.
Sec. 1805. Membership.
Sec. 1806. Board of directors.
Sec. 1807. Officers.
Sec. 1808. Restrictions.
Sec. 1809. Liability.
Sec. 1810. Maintenance and inspection of books and records.
Sec. 1811. Audit of financial transactions.
Sec. 1812. Annual report.
Sec. 1813. Reservation of right to alter, amend, or repeal charter.
Sec. 1814. Tax-exempt status required as condition of charter.
Sec. 1815. Termination.
Sec. 1816. Definition of State.

            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. Land acquisition, National Ground Intelligence Center, 
Charlottesville, Virginia.

                            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. Beach replenishment, Naval Air Station, North Island, 
California.

                         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.
Sec. 2305. Elimination of authority to carry out fiscal year 1995 
project, Spangdahlem Air Force Base, Germany.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Military housing improvement program.
Sec. 2405. Energy conservation projects.
Sec. 2406. Authorization of appropriations, Defense Agencies.
Sec. 2407. Reduction in amounts authorized to be appropriated for fiscal 
year 1996 Defense Agencies military construction, land acquisition, and 
military family housing functions.

   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. Authorization and funding for construction and improvement of 
Naval Reserve Centers.
Sec. 2603. Upgrade Air National Guard facilities, Bangor International 
Airport, Maine.

         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 1994 
projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1993 
projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1992 
projects.
Sec. 2705. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in certain thresholds for unspecified minor 
construction projects.
Sec. 2802. Redesignation of North Atlantic Treaty Organization 
Infrastructure program.
Sec. 2803. Improvements to family housing units.
Sec. 2804. Availability of funds for planning, execution, and 
administration of contracts for family housing and unaccompanied 
housing.

            Subtitle B--Defense Base Closure and Realignment

Sec. 2811. Restoration of authority for certain intragovernment 
transfers under 1988 base closure law.
Sec. 2812. Contracting for certain services at facilities remaining on 
closed installations.
Sec. 2813. Authority to compensate owners of manufactured housing.
Sec. 2814. Additional purpose for which adjustment and diversification 
assistance is authorized.
Sec. 2815. Payment of stipulated penalties assessed under CERCLA in 
connection with Loring Air Force Base, Maine.
Sec. 2816. Plan for utilization, reutilization, or disposal of 
Mississippi Army Ammunition Plant.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, 
Virginia.
Sec. 2822. Land transfer, Fort Sill, Oklahoma.
Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.
Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South 
Carolina.
Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.
Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center, 
Manchester, New Hampshire.
Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.
Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

                        Part II--Navy Conveyances

Sec. 2831. Land transfer, Potomac Annex, District of Columbia.
Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, 
Virginia.
Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons 
Industrial Reserve Plant, Calverton, New York.
Sec. 2834. Land conveyance, former naval reserve facility, Lewes, 
Delaware.
Sec. 2835. Modification of land conveyance authority, Naval Reserve 
Center, Seattle, Washington.
Sec. 2836. Release of condition on reconveyance of transferred land, 
Guam.
Sec. 2837. Lease to facilitate construction of Reserve center, Naval Air 
Station, Meridian, Mississippi.

                     Part III--Air Force Conveyances

Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche, 
South Dakota.
Sec. 2842. Conveyance of primate research complex and Air Force-owned 
chimpanzees, Holloman Air Force Base, New Mexico.

                       Part IV--Other Conveyances

Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi.
Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla, 
North Dakota.
Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.
Sec. 2854. Modification of boundaries of White Sands National Monument 
and White Sands Missile Range.

                        Subtitle D--Other Matters

Sec. 2861. Authority to grant easements for rights-of-way.
Sec. 2862. Authority to enter into cooperative agreements for the 
management of cultural resources on military installations.
Sec. 2863. Demonstration project for installation and operation of 
electric power distribution system at Youngstown Air Reserve Station, 
Ohio.
Sec. 2864. Renovation of the Pentagon reservation.
Sec. 2865. Plan for repairs and stabilization of the historic district 
at the Forest Glen Annex of Walter Reed Medical Center, Maryland.
Sec. 2866. Naming of range at Camp Shelby, Mississippi.
Sec. 2867. Designation of Michael O'Callaghan military hospital.
Sec. 2868. Naming of building at the Uniformed Services University of 
the Health Sciences.

                  TITLE XXIX--MILITARY LAND WITHDRAWALS

     Subtitle A--Fort Carson-Pinon Canyon Military Lands Withdrawal

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military 
Reser- vation.
Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver 
Site.
Sec. 2904. Maps and legal descriptions.
Sec. 2905. Management of withdrawn lands.
Sec. 2906. Management of withdrawn and acquired mineral resources.
Sec. 2907. Hunting, fishing, and trapping.
Sec. 2908. Termination of withdrawal and reservation.
Sec. 2909. Determination of presence of contamination and effect of 
contamination.
Sec. 2910. Delegation.
Sec. 2911. Hold harmless.
Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.
Sec. 2913. Authorization of appropriations.

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

Sec. 2921. Short title and definitions.
Sec. 2922. Withdrawal and reservation of lands for El Centro.
Sec. 2923. Maps and legal descriptions.
Sec. 2924. Management of withdrawn lands.
Sec. 2925. Duration of withdrawal and reservation.
Sec. 2926. Continuation of ongoing decontamination activities.
Sec. 2927. Requirements for extension.
Sec. 2928. Early relinquishment of withdrawal.
Sec. 2929. Delegation of authority.
Sec. 2930. Hunting, fishing, and trapping.
Sec. 2931. Hold harmless.

 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. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Defense fixed asset acquisition/privatization.
Sec. 3104. Other defense activities.
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.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Stockpile stewardship program.
Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.
Sec. 3133. Tritium production.
Sec. 3134. Modernization and consolidation of tritium recycling 
facilities.
Sec. 3135. Production of high explosives.
Sec. 3136. Limitation on use of funds for certain research and 
development purposes.
Sec. 3137. Prohibition on funding nuclear weapons activities with 
People's Republic of China.

Sec. 3138. International cooperative stockpile stewardship programs.
Sec. 3139. Temporary authority relating to transfers of defense 
environmental management funds.
Sec. 3140. Management structure for nuclear weapons production 
facilities and nuclear weapons laboratories.
Sec. 3141. Accelerated schedule for isolating high-level nuclear waste 
at the defense waste processing facility, Savannah River Site.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
spent nuclear fuel rods.
Sec. 3143. Projects to accelerate closure activities at defense nuclear 
facilities.
Sec. 3144. Payment of costs of operation and maintenance of 
infrastructure at Nevada Test Site.

                        Subtitle D--Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing plans.
Sec. 3152. Amendments relating to baseline environmental management 
reports.
Sec. 3153. Requirement to develop future use plans for environmental 
management program.
Sec. 3154. Report on Department of Energy liability at Department 
superfund sites.
Sec. 3155. Requirement for annual five-year budget for the national 
security programs of the Department of Energy.
Sec. 3156. Requirements for Department of Energy weapons activities 
budgets for fiscal years after fiscal year 1997.
Sec. 3157. Repeal of requirement relating to accounting procedures for 
Department of Energy funds.
Sec. 3158. Update of report on nuclear test readiness postures.
Sec. 3159. Reports on critical difficulties at nuclear weapons 
laboratories and nuclear weapons production plants.
Sec. 3160. Extension of applicability of notice-and-wait requirement 
regarding proposed cooperation agreements.
Sec. 3161. Sense of Senate relating to redesignation of defense 
environmental restoration and waste management program.
Sec. 3162. Commission on maintaining United States nuclear weapons 
expertise.
Sec. 3163. Sense of Congress regarding reliability and safety of 
remaining nuclear forces.
Sec. 3164. Study on worker protection at the Mound facility.
Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement 
Project, Livermore, California.
Sec. 3166. Fellowship program for development of skills critical to 
Department of Energy nuclear weapons complex.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

Sec. 3171. Purpose.
Sec. 3172. Applicability.
Sec. 3173. Site manager.
Sec. 3174. Department of Energy orders.
Sec. 3175. Deployment of technology for remediation of defense nuclear 
waste.
Sec. 3176. Performance-based contracting.
Sec. 3177. Designation of covered facilities as environmental cleanup 
demonstration areas.
Sec. 3178. Definitions.
Sec. 3179. Termination.
Sec. 3180. Report.

 Subtitle F--Waste Isolation Pilot Plant Land Withdrawal Act Amendments

Sec. 3181. Short title.
Sec. 3182. Definitions.
Sec. 3183. Management plan.
Sec. 3184. Repeal of test phase and retrieval plans.
Sec. 3185. Test phase activities.
Sec. 3186. Disposal operations.
Sec. 3187. Environmental Protection Agency disposal regulations.
Sec. 3188. Compliance with environmental laws and regulations.
Sec. 3189. Sense of Congress on commencement of emplacement of 
transuranic waste.
Sec. 3190. Decommissioning of WIPP.
Sec. 3191. Authorizations for economic assistance and miscellaneous 
payments.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

         Subtitle A--Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of certain materials in National Defense Stockpile.

                     Subtitle B--Programmatic Change

Sec. 3311. Biennial report on stockpile requirements.
Sec. 3312. Notification requirements.
Sec. 3313. Importation of strategic and critical materials.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
year 1997.

                   TITLE XXXV--PANAMA CANAL COMMISSION

               Subtitle A--Authorization of Appropriations

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.

           Subtitle B--Amendments to Panama Canal Act of 1979

Sec. 3521. Short title; references.
Sec. 3522. Definitions and recommendation for legislation.
Sec. 3523. Administrator.
Sec. 3524. Deputy Administrator and Chief Engineer.
Sec. 3525. Office of Ombudsman.
Sec. 3526. Appointment and compensation; duties.
Sec. 3527. Applicability of certain benefits.
Sec. 3528. Travel and transportation.
Sec. 3529. Clarification of definition of agency.
Sec. 3530. Panama Canal Employment System; merit and other employment 
requirements.
Sec. 3531. Employment standards.
Sec. 3532. Repeal of obsolete provision regarding interim application of 
Canal Zone Merit System.
Sec. 3533. Repeal of provision relating to recruitment and retention 
remuneration.
Sec. 3534. Benefits based on basic pay.
Sec. 3535. Vesting of general administrative authority of Commission.
Sec. 3536. Applicability of certain laws.
Sec. 3537. Repeal of provision relating to transferred or reemployed 
employees.
Sec. 3538. Administration of special disability benefits.
Sec. 3539. Panama Canal Revolving Fund.
Sec. 3540. Printing.
Sec. 3541. Accounting policies.
Sec. 3542. Interagency services; reimbursements.
Sec. 3543. Postal service.
Sec. 3544. Investigation of accidents or injury giving rise to claim.
Sec. 3545. Operations regulations.
Sec. 3546. Miscellaneous repeals.
Sec. 3547. Exemption from Metric Conversion Act of 1975.
Sec. 3548. Conforming and clerical amendments.
Sec. 3549. Repeal of Panama Canal Code.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                          TITLE I--PROCUREMENT

                          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. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.

                        Subtitle B--Army Programs

Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior 
helicopters.
Sec. 112. Multiyear procurement authority for Army programs.
Sec. 113. Bradley TOW 2 Test Program sets.

                        Subtitle C--Navy Programs

Sec. 121. Nuclear attack submarine programs.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. EA-6B aircraft reactive jammer program.
Sec. 124. T-39N trainer aircraft for the Navy.
Sec. 125. Penguin missile program.

                     Subtitle D--Air Force Programs

Sec. 131. Repeal of limitation on procurement of F-15E aircraft.
Sec. 132. Modification to multiyear procurement authority for C-17 
aircraft program.

                        Subtitle E--Other Matters

Sec. 141. Assessments of modernization priorities of the reserve 
components.
Sec. 142. Destruction of existing stockpile of lethal chemical agents 
and munitions.
Sec. 143. Extension of authority to carry out Armament Retooling and 
Manufacturing Support Initiative.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for procurement for the Army as follows:
        (1) For aircraft, $1,314,015,000.
        (2) For missiles, $1,031,829,000.
        (3) For weapons and tracked combat vehicles, $1,409,514,000.
        (4) For ammunition, $1,003,028,000.
        (5) For other procurement, $2,990,240,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 1997 for procurement for the Navy as follows:
        (1) For aircraft, $7,034,926,000.
        (2) For weapons, including missiles and torpedoes, 
    $1,345,408,000.
        (3) For shipbuilding and conversion, $6,193,330,000.
        (4) For other procurement, $2,893,840,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1997 for procurement for the Marine Corps in the amount 
of $560,148,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for procurement of ammunition for the Navy and the 
Marine Corps in the amount of $293,239,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for procurement for the Air Force as follows:
        (1) For aircraft, $6,764,420,000.
        (2) For missiles, $2,525,875,000.
        (3) For ammunition, $278,302,000.
        (4) For other procurement, $5,814,419,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for Defense-wide procurement in the amount of $2,008,261,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for procurement of aircraft, vehicles, communications equipment, and 
other equipment for the reserve components of the Armed Forces as 
follows:
        (1) For the Army National Guard, $171,000,000.
        (2) For the Air National Guard, $234,000,000.
        (3) For the Army Reserve, $98,000,000.
        (4) For the Naval Reserve, $116,000,000.
        (5) For the Air Force Reserve, $94,000,000.
        (6) For the Marine Corps Reserve, $67,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for procurement for the Inspector General of the Department of Defense 
in the amount of $2,000,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1997 
the amount of $759,847,000 for--
        (1) the destruction of lethal chemical agents and munitions in 
    accordance with section 1412 of the Department of Defense 
    Authorization Act, 1986 (50 U.S.C. 1521); and
        (2) the destruction of chemical warfare materiel of the United 
    States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
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 $269,470,000.

                       Subtitle B--Army Programs

    SEC. 111. REPEAL OF LIMITATION ON PROCUREMENT OF ARMED KIOWA 
      WARRIOR HELICOPTERS.
    Section 133 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is repealed.
    SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY PROGRAMS.
    (a) Avenger Air Defense Missile System.--Notwithstanding the 
limitation in subsection (k) of section 2306b of title 10, United 
States Code, relating to the maximum duration of a multiyear contract 
under the authority of that section, the Secretary of the Army may 
extend the multiyear contract in effect during fiscal year 1996 for the 
Avenger Air DefenseMissile system through fiscal year 1997 and may 
award such an extension.
    (b) Army Tactical Missile System.--The Secretary of the Army may, 
in accordance with section 2306b of title 10, United States Code, enter 
into a multiyear procurement contract, beginning with the fiscal year 
1997 program year, for procurement of the Army Tactical Missile System 
(Army TACMS).
    (c) Javelin Missile System.--The Secretary of the Army may, in 
accordance with section 2306b of title 10, United States Code, enter 
into multiyear procurement contracts for the procurement of the Javelin 
missile system.

SEC. 113. BRADLEY TOW 2 TEST PROGRAM SETS.

    Of the funds authorized to be appropriated under section 101(3) of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 204), $6,000,000 is available for the procurement of 
Bradley TOW-2 Test Program sets.

                       Subtitle C--Navy Programs

SEC. 121. NUCLEAR ATTACK SUBMARINE PROGRAMS.

    (a) Amounts Authorized From SCN Account.--(1) Of the amount 
authorized to be appropriated by section 102(a)(3) for fiscal year 
1997--
        (A) $699,071,000 is available for continued construction of the 
    third vessel (designated SSN-23) in the Seawolf attack submarine 
    class, which shall be the final vessel in that class;
        (B) $296,186,000 is available for long-lead and advance 
    construction and procurement of components for construction of a 
    submarine (previously designated by the Navy as the New Attack 
    Submarine) beginning in fiscal year 1998 to be built by Electric 
    Boat Division; and
        (C) $701,000,000 is available for long-lead and advance 
    construction and procurement of components for construction of a 
    second submarine (previously designated by the Navy as the New 
    Attack Submarine) beginning in fiscal year 1999 to be built by 
    Newport News Shipbuilding.
    (2) In addition to the purposes for which the amounts under 
subparagraphs (B) and (C) of paragraph (1) are available, such amounts 
are also available for contracts with Electric Boat Division and 
Newport News Shipbuilding to carry out the provisions of the 
``Memorandum of Agreement Among the Department of the Navy, Electric 
Boat Corporation (EB) and Newport News Shipbuilding and Drydock Company 
(NNS) Concerning the New Attack Submarine'', dated April 5, 1996, 
relating to design data transfer, design improvements, integrated 
process teams, and updated design base.
    (b) Amounts Authorized From Navy RDT&E Account.--(1) Of the amount 
authorized to be appropriated by section 201(2), $487,611,000 is 
available for the design of the submarine previously designated by the 
Navy as the New Attack Submarine.
    (2)(A) Of the amount authorized to be appropriated by section 
201(2), $60,000,000 is available for obligation under contracts with 
Electric Boat Division and Newport News Shipbuilding and other entities 
to address the inclusion on future nuclear attack submarines of the 
core advanced technologies that are identified by the Secretary of 
Defense (in the report of the Secretary entitled ``Report on Nuclear 
Attack Submarine Procurement and Submarine Technology'', submitted to 
Congress on March 26, 1996) as those technologies the maturation of 
which the Submarine Technology Assessment Panel recommended be 
addressed in its March 15, 1996, final report to the Assistant 
Secretary of the Navy for Research, Development, and Acquisition, as 
follows: hydrodynamics, alternative sail designs, advanced arrays, 
electric drive, external weapons, and active controls and mounts.
    (B) Of the amount available under subparagraph (A), $20,000,000 
shall be equally divided between Electric Boat Division and Newport 
News Shipbuilding for the purpose of ensuring that those shipbuilders 
are principal participants in the process of addressing the inclusion 
of technologies referred to in subparagraph (A) on future nuclear 
attack submarines. Contracts with the shipbuilders under this 
subparagraph shall provide the shipbuilders with wide latitude to 
pursue submarine-wide, integrated systems approaches to the inclusion 
of such technologies. The Secretary of the Navy shall ensure that those 
shipbuilders have access for such purpose (under procedures prescribed 
by the Secretary) to the Navy laboratories and the Office of Naval 
Intelligence and (in accordance with arrangements to be made by the 
Secretary) to the Defense Advanced Research Projects Agency.
    (3) Of the amount authorized to be appropriated by section 201(2), 
$38,000,000 is available to begin funding those Category I and Category 
II advanced technologies described in Appendix C of the report of the 
Secretary of Defense referred to in paragraph (2)(A). The Secretary of 
the Navy shall ensure that Electric Boat Division and Newport News 
Shipbuilding are also principal participants in the technology 
initiatives pursued with such funds to ensure submarine-wide, 
integrated systems approaches to the inclusion of such technologies on 
future nuclear attack submarines.
    (4) In addition to the purposes for which the amounts under 
paragraphs (1), (2), and (3) are available, such amounts are also 
available for contracts with Electric Boat Division and Newport News 
Shipbuilding to carry out the provisions of the memorandum of agreement 
referred to in subsection (a)(2) for research and development 
activities under that memorandum of agreement.
    (c) Amount From Fiscal Year 1996 Funds for National Defense Sealift 
Fund.--(1) Section 132 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 210) is repealed.
    (2) The amount referred to in section 132 of the National Defense 
Authorization Act for Fiscal Year 1996 (as in effect immediately before 
the repeal by paragraph (1)) shall be available to the Secretary of the 
Navy for activities relating only to advanced submarine technology that 
involve the construction of large scale vehicles for purposes of 
hydrodynamic andhydroacoustic research on developmental designs for 
hulls and propulsion systems.
    (d) Contracts Authorized.--(1) The Secretary of the Navy is 
authorized, using funds available pursuant to subparagraphs (B) and (C) 
of subsection (a)(1), to enter into contracts with Electric Boat 
Division and Newport News Shipbuilding, and suppliers of components, 
during fiscal year 1997 for--
        (A) the procurement of long-lead components for the fiscal year 
    1998 submarine and the fiscal year 1999 submarine under this 
    section; and
        (B) advance construction of such components and other 
    components for such submarines.
    (2) The Secretary may enter into a contract or contracts under this 
section with the shipbuilder of the fiscal year 1998 submarine only if 
the Secretary enters into a contract or contracts under this section 
with the shipbuilder of the fiscal year 1999 submarine.
    (e) Limitations.--(1)(A) Of the amounts specified in subsection 
(a)(1), not more than $100,000,000 may be obligated until the Secretary 
of Defense certifies in writing to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives that procurement of nuclear attack submarines described 
in subparagraph (B) will be under one or more contracts that are 
entered into after competition between Electric Boat Division and 
Newport News Shipbuilding in which the Secretary of the Navy solicits 
competitive proposals and awards the contract or contracts on the basis 
of price.
    (B) The submarines referred to in subparagraph (A) are nuclear 
attack submarines that are to be constructed beginning--
        (i) after fiscal year 1999; or
        (ii) if four submarines are to be procured as provided for in 
    the plan required under section 131(c) of the National Defense 
    Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
    Stat. 208), after fiscal year 2001.
    (2) Of the amounts specified in subsection (a)(1), not more than 
$675,000,000 may be obligated until the Under Secretary of Defense for 
Acquisition and Technology submits to the congressional committees 
specified in paragraph (1) a report in writing detailing the following:
        (A) The Under Secretary's oversight activities to date, and 
    plans for the future, for the development and improvement of the 
    nuclear attack submarine program of the Navy as required by section 
    131(b)(2)(C) of the National Defense Authorization Act for Fiscal 
    Year 1996 (110 Stat. 207).
        (B) The implementation of, and activities conducted under, the 
    program required to be established by the Director of the Defense 
    Advanced Research Projects Agency by section 131(i) of the National 
    Defense Authorization Act for Fiscal Year 1996 (110 Stat. 210) for 
    the development and demonstration of advanced submarine 
    technologies and a rapid prototype acquisition strategy for both 
    land-based and at-sea subsystem and system demonstrations of such 
    technologies.
        (C) A description of all research, development, test, and 
    evaluation programs, projects, or activities within the Department 
    of Defense which, in the opinion of the Under Secretary, are 
    designed to contribute to the development and demonstration of 
    advanced submarine technologies leading to a more capable, more 
    affordable nuclear attack submarine, specifically identifying 
    ongoing involvement, and plans for future involvement, in any such 
    program, project, or activity by either Electric Boat Division or 
    Newport News Shipbuilding, or by both.
    (3) Of the amount specified in subsection (b)(1), not more than 
$100,000,000 may be obligated or expended until the Under Secretary of 
Defense (Comptroller) certifies in writing to the congressional 
committees specified in paragraph (1) that--
        (A) funds specified in subsection (c)(2) have been made 
    available for obligation; and
        (B) to the extent that funds specified in paragraphs (2) and 
    (3) of subsection (b) have been appropriated for the purposes 
    specified in such paragraphs, such funds have been made available 
    for obligation.
    (f) Acquisition Simplification.--In furtherance of the direction 
provided by subsection (d) of section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 (110 Stat. 209) to the Secretary 
of Defense regarding the application of acquisition reform policies and 
procedures to the submarine program under that section, the Secretary 
shall direct the Secretary of the Navy to implement for the submarine 
programs of the Navy acquisition reform initiatives similar in intent 
and approach to the initiatives begun by the Secretary of the Air Force 
in May 1995 and referred to as the ``Lightning Bolt'' initiatives. The 
Secretary of the Navy shall, not later than March 31, 1997, submit to 
the congressional committees specified in subsection (e)(1) a report on 
the results of the implementation of such initiatives.
    (g) Design Responsibility.--(1) The Secretary of the Navy shall 
carry out the submarine program described in section 131 of the 
National Defense Authorization Act for Fiscal Year 1996 in a manner 
that ensures that each of the two shipbuilders in- volved in the design 
and construction of the four submarines described in that section be 
allowed to propose to the Secretary any design improvement that the 
shipbuilder considers appropriate for the submarines to be built by 
that shipbuilder as part of those four submarines. The Secretary shall 
ensure that both shipbuilders have full and open access to all design 
data concerning the design of the submarine previously designated by 
the Navy as the New Attack Submarine.
    (2) The designs proposed by the shipbuilders should proceed from, 
but not be limited to, the specific advanced technologies referred to 
in subsection (b)(2)(A), especially technologies involving 
hydrodynamics and hydroacoustics concepts.
    (3) The Secretary shall require both shipbuilders to submit to the 
Secretary an annual report on the progress of the design work on the 
submarines referred to in paragraph (1) and shalltransmit each such 
report to the committees specified in subsection (e)(1).
    (4) The Secretary shall also submit an annual report to the 
committees specified in subsection (e)(1) on the design improvements 
proposed by the two shipbuilders under paragraph (1) for incorporation 
on any of the four submarines and on the degree to which design 
information on the base design and design improvements has been shared 
between the shipbuilders. Each annual report shall set forth each 
design improvement proposed and whether that proposal was--
        (A) reviewed, approved, and funded by the Navy;
        (B) reviewed and approved, but not funded; or
        (C) not approved, in which case the report shall include the 
    reasons therefor and any views of the shipyard making the proposal.
    (5) The reports referred to in paragraphs (3) and (4) shall be 
submitted concurrently with the annual revisions to the Secretary of 
Defense's nuclear attack submarine plan required by section 131(e) of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 209).
    (h) Serial Production.--The Secretary of Defense shall modify the 
plan relating to development of a program leading to production of a 
more capable and less expensive submarine than the New Attack Submarine 
that was submitted to Congress pursuant to section 131(c) of the 
National Defense Authorization Act for Fiscal Year 1996 in order to 
provide in such plan the option for selection of a design for a next 
submarine for serial production not earlier than fiscal year 2002 
(rather than fiscal year 2003, as provided in paragraph (3)(B) of such 
section 131(c)).
    (i) References to Shipbuilders.--For purposes of this section--
        (1) the shipbuilder referred to as ``Electric Boat Division'' 
    is the Electric Boat Division of the General Dynamics Corporation; 
    and
        (2) the shipbuilder referred to as ``Newport News 
    Shipbuilding'' is the Newport News Shipbuilding and Drydock 
    Company.
    (j) Submarines Defined by Reference to Fiscal Year.--For purposes 
of this section--
        (1) the term ``fiscal year 1998 submarine'' means the submarine 
    referred to in subsection (a)(1)(B); and
        (2) the term ``fiscal year 1999 submarine'' means the submarine 
    referred to in subsection (a)(1)(C).

SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

    (a) Funding.--(1) Subject to paragraph (3), funds authorized to be 
appropriated by section 102(a)(3) may be made available for contracts 
entered into during fiscal year 1996 under subsection (b)(1) of section 
135 of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 211) for construction for the third of 
the three Arleigh Burke class destroyers covered by that subsection. 
Such funds are in addition to amounts made available for such contracts 
by the second sentence of subsection (a) of that section.
    (2) Subject to paragraph (3), funds authorized to be appropriated 
by section 102(a)(3) may be made available for contracts entered into 
during fiscal year 1997 under subsection (b)(2) of such section 135 for 
construction (including advance procurement) for the Arleigh Burke 
class destroyers covered by such subsection (b)(2).
    (3) The aggregate amount of funds available under paragraphs (1) 
and (2) for contracts referred to in such paragraphs may not exceed 
$3,483,030,000.
    (4) Within the amount authorized to be appropriated by section 
102(a)(3), $525,000,000 is authorized to be appropriated for advance 
procurement for construction for the Arleigh Burke class destroyers 
authorized by subsection (b).
    (b) Authority for Multiyear Procurement of Twelve Vessels.--The 
Secretary of the Navy is authorized, pursuant to section 2306b of title 
10, United States Code, to enter into multiyear contracts for the 
procurement of a total of 12 Arleigh Burke class destroyers at a 
procurement rate of three ships in each of fiscal years 1998, 1999, 
2000, and 2001 in accordance with this subsection and subsection 
(a)(4), subject to the availability of appropriations for such 
destroyers. A contract for construction of one or more vessels that is 
entered into in accordance with this subsection shall include a clause 
that limits the liability of the Government to the contractor for any 
termination of the contract.

SEC. 123. EA-6B AIRCRAFT REACTIVE JAMMER PROGRAM.

    (a) Limitation.--None of the funds appropriated pursuant to section 
102(a)(1) for modifications or upgrades of EA-6B aircraft may be 
obligated, other than for a reactive jammer program for such aircraft, 
until 30 days after the date on which the Secretary of the Navy submits 
to the congressional defense committees in writing--
        (1) a certification that some or all of such funds have been 
    obligated for a reactive jammer program for EA-6B aircraft; and
        (2) a report that sets forth a detailed, well-defined program 
    for--
            (A) developing a reactive jamming capability for EA-6B 
        aircraft; and
            (B) upgrading the EA-6B aircraft of the Navy to incorporate 
        the reactive jamming capability.
    (b) Contingent Transfer of Funds to Air Force.--(1) If the 
Secretary of the Navy has not submitted the certification and report 
described in subsection (a) to the congressional defense committees 
before June 1, 1997, then, on that date, the Secretary of Defense shall 
transfer to the Air Force, out of appropriations available to the Navy 
for fiscal year 1997 for procurement of aircraft, the amount equal to 
the amount appropriated to the Navy for fiscal year 1997 for 
modifications and upgrades of EA-6B aircraft.
    (2) Funds transferred to the Air Force pursuant to paragraph (1) 
shall be available for maintaining and upgrading the jamming capability 
of EF-111 aircraft.

SEC. 124. T-39N TRAINER AIRCRAFT FOR THE NAVY.

    The Secretary of the Navy may, using funds appropriated for fiscal 
year 1996 for procurement of T-39N trainer aircraft for the Navy that 
remain available for obligation for such purpose, enter into a contract 
for the acquisition of T-39N aircraft for naval flight officer training 
that are suitable for low-level training flights. Such a contract may 
be entered into only after the Secretary complies with section 137 of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 212).

SEC. 125. PENGUIN MISSILE PROGRAM.

    (a) Multiyear Procurement Authority.--The Secretary of the Navy 
may, in accordance with section 2306b of title 10, United States Code, 
enter into multiyear procurement contracts for the procurement of not 
more than 106 Penguin missile systems.
    (b) Limitation on Total Cost.--The total amount obligated or 
expended for procurement of Penguin missile systems under contracts 
under subsection (a) may not exceed $84,800,000.

                     Subtitle D--Air Force Programs

    SEC. 131. REPEAL OF LIMITATION ON PROCUREMENT OF F-15E AIRCRAFT.
    Section 134 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is repealed.
    SEC. 132. MODIFICATION TO MULTIYEAR PROCUREMENT AUTHORITY FOR C-17 
      AIRCRAFT PROGRAM.
    (a) Multiyear Contracts Authorized.--The Secretary of the Air Force 
may enter into one or more multiyear contracts for the procurement of 
C-17 aircraft (including the section 2703 contract entered into before 
the date of the enactment of this Act under the authority of section 
2703 of the Supplemental Appropriations Act of 1996 (title II of Public 
Law 104-134)). The total number of aircraft contracted to be procured 
under such multiyear contracts may not exceed 80. Any such contract 
shall be entered into in accordance with section 2306b of title 10, 
United States Code (and subject to such modifications as may be 
authorized by law in the maximum period for such contracts specified in 
subsection (k) of such section).
    (b) Requirement To Negotiate Option to Convert Existing Contract to 
Six Program Years.--The Secretary of the Air Force shall negotiate with 
the prime contractor for the C-17 aircraft program so as to achieve a 
contract option for the United States under the section 2703 contract 
to convert the multiyear procurement period under that contract to a 
period of six program years based upon the level of funding for that 
program for fiscal year 1997.
    (c) Contract Period.--A contract entered into after the date of the 
enactment of this Act on a multiyear basis under the authority of 
subsection (a) may (notwithstanding section 2306b(k) of title 10, 
United States Code) be for a period of six program years.
    (d) Section 2703 Contract Defined.--For purposes of this section, 
the term ``section 2703 contract'' means the contract entered into by 
the Secretary of the Air Force on May 31, 1996, with the prime 
contractor for the C-17 aircraft program under the authority of section 
2703 of the Supplemental Appropriations Act of 1996 (title II of Public 
Law 104-134) providing for a multiyear procurement of C-17 aircraft 
over seven program years with an option for the Secretary to convert 
that period to six program years.

                       Subtitle E--Other Matters

    SEC. 141. ASSESSMENTS OF MODERNIZATION PRIORITIES OF THE RESERVE 
      COMPONENTS.
    (a) Assessments Required.--Not later than December 1, 1996, each 
officer referred to in subsection (b) shall submit to the congressional 
defense committees an assessment of the modernization priorities 
established for the reserve component or reserve components for which 
that officer is responsible.
    (b) Responsible Officers.--The officers required to submit a report 
under subsection (a) are as follows:
        (1) The Chief of the National Guard Bureau.
        (2) The Chief of Army Reserve.
        (3) The Chief of Air Force Reserve.
        (4) The Director of Naval Reserve.
        (5) The Commanding General, Marine Forces Reserve.
    SEC. 142. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL 
      AGENTS AND MUNITIONS.
    Section 152 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521 note) is 
amended by adding at the end the following new subsections:
    ``(e) Assessment of Alternative Technologies for Demilitarization 
of Assembled Chemical Munitions.--(1) In addition to the assessment 
required by subsection (c), the Secretary of Defense shall conduct an 
assessment of the chemical demilitarization program for destruction of 
assembled chemical munitions and of the alternative demilitarization 
technologies and processes (other than incineration) that could be used 
for the destruction of the lethal chemical agents that are associated 
with these munitions, while ensuring maximum protection for the general 
public, the personnel involved in the demilitarization program, and the 
environment. The measures considered shall be limited to those that 
would minimize the risk to the public and reduce the total cost of the 
chemical agents and munitions destruction program. The assessment shall 
be conducted without regard to any limitation that would otherwise 
apply to the conduct of such assessment under any provision of law.
    ``(2) The assessment shall be conducted in coordination with the 
National Research Council.
    ``(3) Among the alternatives, the assessment shall include a 
determination of the cost of incineration of the current chemical 
munitions stockpile by building incinerators at each existing facility 
compared to the proposed cost of dismantling those same munitions, 
neutralizing them at each storage site (other than Tooele Army Depot or 
Johnston Atoll), and transportingthe neutralized remains and all 
munitions parts to a treatment, storage, and disposal facility within 
the United States that has the necessary environmental permits to 
undertake incineration of the material.
    ``(4) Based on the results of the assessment, the Secretary shall 
develop appropriate recommendations for revision of the chemical 
demilitarization program.
    ``(5) Not later than December 31, 1997, the Secretary of Defense 
shall submit to Congress a report on the assessment conducted in 
accordance with paragraph (1) and any recommendations for revision of 
the chemical demilitarization program, including the continued 
development of alternative demilitarization technologies and processes 
other than incineration that could be used for the destruction of the 
lethal chemical agents that are associated with these assembled 
chemical munitions and the chemical munitions demilitarization sites 
for which the selected technologies should be developed.
    ``(f) Pilot Program for Demilitarization of Chemical Agents for 
Assembled Munitions.--(1) If the Secretary of Defense makes a decision 
to continue the development of an alternative demilitarization 
technology or process (other than incineration) that could be used for 
the destruction of the lethal chemical agents that are associated with 
assembled chemical munitions, $25,000,000 shall be available from the 
funds authorized to be appropriated in section 107 of the National 
Defense Authorization Act for Fiscal Year 1997 for the chemical agents 
and munitions destruction program, in order to initiate a pilot program 
using the selected alternative technology or process for the 
destruction of chemical agents that are stored at these sites.
    ``(2) Not less than 30 days before using funds to initiate the 
pilot program under paragraph (1), the Secretary shall submit notice in 
writing to Congress of the Secretary's intent to do so.
    ``(3) The pilot program shall be conducted at the selected chemical 
agent and munitions stockpile storage site for which the alternative 
technology or process is recommended.''.
    SEC. 143. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT RETOOLING 
      AND MANUFACTURING SUPPORT INITIATIVE.
    Section 193(a) of 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 amended by striking out ``During fiscal years 1993 
through 1996'' and inserting in lieu thereof ``During fiscal years 1993 
through 1998''.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology programs.
Sec. 204. Defense Special Weapons Agency.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Space-Based Infrared System program.
Sec. 213. Clementine 2 micro-satellite development program.
Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.
Sec. 215. Live-fire survivability testing of F-22 aircraft.
Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance 
aircraft.
Sec. 217. Cost analysis of F-22 aircraft program.
Sec. 218. F-22 aircraft program reports.
Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.
Sec. 220. Joint Advanced Strike Technology (JAST) program.
Sec. 221. Unmanned aerial vehicles.
Sec. 222. High altitude endurance unmanned aerial reconnaissance system.
Sec. 223. Cyclone class patrol craft self-defense.
Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber 
Optic Guided Missile (EFOG-M) system.
Sec. 225. Hydra-70 rocket product improvement program.
Sec. 226. Federally funded research and development centers.
Sec. 227. Demilitarization of conventional munitions, rockets, and 
explosives.
Sec. 228. Research activities of the Defense Advanced Research Projects 
Agency relating to chemical and biological warfare defense technology.
Sec. 229. Certification of capability of United States to prevent 
illegal importation of nuclear, biological, or chemical weapons.
Sec. 230. Nonlethal weapons and technologies programs.
Sec. 231. Counterproliferation support program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal year 
1997.
Sec. 242. Certification of capability of United States to defend against 
single ballistic missile.
Sec. 243. Report on ballistic missile defense and proliferation.
Sec. 244. Revision to annual report on ballistic missile defense 
program.
Sec. 245. Report on Air Force National Missile Defense Plan.
Sec. 246. Capability of National Missile Defense system.
Sec. 247. Actions to limit adverse effects on private sector employment 
of establishment of National Missile Defense Joint Program Office.
Sec. 248. ABM Treaty defined.

                        Subtitle D--Other Matters

Sec. 261. Maintenance and repair at Air Force installations.
Sec. 262. Report relating to Small Business Innovation Research Program.
Sec. 263. Amendment to University Research Initiative Support program.
Sec. 264. Amendments to Defense Experimental Program To Stimulate 
Competitive Research.
Sec. 265. Elimination of report on the use of competitive procedures for 
the award of certain contracts to colleges and universities.
Sec. 266. Pilot program for transfer of defense technology information 
to private industry.
Sec. 267. Research under transactions other than contracts and grants.
Sec. 268. Desalting technologies.
Sec. 269. Evaluation of digital video network equipment used in Olympic 
games.
Sec. 270. Annual joint warfighting science and technology plan.

         Subtitle E--National Oceanographic Partnership Program

Sec. 281. Findings.
Sec. 282. National Oceanographic Partnership Program.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
        (1) For the Army, $4,780,615,000.
        (2) For the Navy, $8,068,299,000.
        (3) For the Air Force, $14,756,366,000.
        (4) For Defense-wide activities, $9,691,293,000, of which--
            (A) $269,038,000 is authorized for the activities of the 
        Director, Test and Evaluation; and
            (B) $21,968,000 is authorized for the Director of 
        Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1997.--Of the amounts authorized to be appropriated 
by section 201, $4,031,343,000 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.

SEC. 203. DUAL-USE TECHNOLOGY PROGRAM.

    (a) Allocation of Funds.--Of the amount appropriated pursuant to 
the authorization in section 201(4), $85,000,000 shall be available for 
the dual-use technology program under this section.
    (b) Designation of Official for Dual-Use Program.--(1) The 
Secretary of Defense shall designate a senior official in the Office of 
the Secretary of Defense to have as that official's sole 
responsibilities developing policy relating to, and ensuring effective 
implementation of, the dual-use technology program of the Department of 
Defense. In carrying out such responsibilities, the official shall 
ensure--
        (A) that commercial technologies are integrated into current 
    and future military systems to the maximum extent practicable;
        (B) that dual-use projects are coordinated with the joint 
    warfighting science and technology plan referred to in section 270; 
    and
        (C) that dual-use projects of the military departments and the 
    defense agencies are coordinated and avoid unnecessary duplication.
    (2) The senior official designated under paragraph (1) shall carry 
out such responsibilities during the period beginning on October 1, 
1996, and ending on September 30, 2000. Such official shall report 
directly to the Under Secretary of Defense for Acquisition and 
Technology.
    (c) Funding Requirement.--Of the amounts appropriated pursuant to 
the authorizations in section 201 for the Department of Defense for 
science and technology programs for fiscal year 1997, at least 5 
percent of such amounts shall be available only for dual-use projects 
of the Department of Defense. The funds made available under the 
preceding sentence are in addition to the funds made available under 
subsection (a).
    (d) Limitation on Obligations.--Funds made available pursuant to 
subsections (a) and (c) may be used for a dual-use project only if the 
contract, cooperative agreement, or othertransaction by which the 
project is carried out is entered into through the use of competitive 
procedures.
    (e) Transfer Authority.--In addition to the transfer authority 
provided in section 1001, the Secretary of Defense may transfer funds 
made available pursuant to subsections (a) and (c) for a dual-use 
project from a military department or defense agency to another 
military department or defense agency to ensure efficient 
implementation of the dual-use technology program. The Secretary may 
delegate the authority provided in the preceding sentence to the senior 
official designated under subsection (b).
    (f) Federal Cost Share.--The share contributed by the Secretary of 
a military department or the head of a defense agency for the cost of a 
dual-use project during fiscal year 1997 may not be greater than 50 
percent of the cost of the project for that fiscal year.
    (g) Report.--At the same time the President submits to Congress the 
budget for fiscal year 1998 pursuant to section 1105(a) of title 31, 
United States Code, the Secretary of Defense shall submit to Congress a 
report that specifies the investment strategy for the dual-use 
technology program to be conducted during fiscal years 1998, 1999, and 
2000.
    (h) Definitions.--In this section:
        (1) The term ``dual-use technology program'' means the program 
    of the Department of Defense under which research or development of 
    a dual-use technology (as defined in section 2491 of title 10, 
    United States Code) is carried out and the costs of which are 
    shared between the Department of Defense and non-Government 
    entities. The term includes the dual-use critical technology 
    program established pursuant to section 2511 of title 10, United 
    States Code.
        (2) The term ``dual-use project'' means a project under the 
    dual-use technology program.
        (3) The term ``science and technology program'' means a program 
    of a military department under which basic research, applied 
    research, or advanced technology development is carried out.

SEC. 204. DEFENSE SPECIAL WEAPONS AGENCY.

    There is hereby authorized to be appropriated for fiscal year 1997 
the amount of $314,313,000 for the Defense Special Weapons Agency, of 
which--
        (1) $7,900,000 is for procurement;
        (2) $218,330,000 is for research, development, test, and 
    evaluation; and
        (3) $88,083,000 is for operations and maintenance.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

    (a) Funding.--Funds appropriated pursuant to the authorization of 
appropriations in section 201(3) are authorized to be made available 
for space launch modernization for purposes and in amounts as follows:
        (1) For the Evolved Expendable Launch Vehicle program, 
    $44,457,000.
        (2) For a competitive reusable launch vehicle program (program 
    element 63401F), $25,000,000.
    (b) Limitations.--(1) Of the funds made available for the reusable 
launch vehicle program pursuant to subsection (a)(2), the total amount 
obligated for such purpose may not exceed the total amount allocated in 
the fiscal year 1997 current operating plan of the National Aeronautics 
and Space Administration for the Reusable Space Launch program of the 
National Aeronautics and Space Administration.
    (2) Of the funds made available for the Evolved Expendable Launch 
Vehicle program pursuant to subsection (a)(1), the total amount 
obligated for such purpose may not exceed $20,000,000 until the 
Secretary of Defense certifies to Congress that the Secretary has made 
available for obligation the funds, if any, that are made available for 
the Reusable Launch Vehicle program pursuant to subsection (a)(2).
    (c) Coordination of Engine Testing.--Not later than 90 days after 
the date of the enactment of this Act, the Secretary of Defense and the 
Administrator of the National Aeronautics and Space Administration 
shall submit to Congress a joint plan for coordinating and eliminating 
unnecessary duplication in the operations and planned improvements of 
rocket engine and rocket engine component test facilities managed by 
the Department of the Air Force and the National Aeronautics and Space 
Administration. The plan shall provide, to the extent practical, for 
the development of commonly funded and commonly operated facilities.

SEC. 212. SPACE-BASED INFRARED SYSTEM PROGRAM.

    (a) Funding.--Funds appropriated pursuant to the authorization of 
appropriations in section 201(3) are authorized to be made available 
for the Space-Based Infrared System program for purposes and in amounts 
as follows:
        (1) For Space Segment High, $173,290,000.
        (2) For Space Segment Low (the Space and Missile Tracking 
    System), $247,221,000.
        (3) For Cobra Brass, $6,930,000.
    (b) Limitation.--Not more than $100,000,000 of the funds authorized 
to be made available under subsection (a)(1) may be obligated or 
expended until the Secretary of Defense certifies to Congress that the 
Secretary has made available the funds authorized to be made available 
under subsection (a)(2) for the purpose of accelerating the deployment 
of the Space Segment Low (the Space and Missile Tracking System).
    (c) Program Management.--Before the submission of the President's 
budget for fiscal year 1998, the Secretary of Defense shall conduct a 
review of the appropriate management responsibilities for the Space and 
Missile Tracking System, including whether transferring such management 
responsibility from the Air Force to the Ballistic Missile Defense 
Organization would result in improved program efficiencies and support.

SEC. 213. CLEMENTINE 2 MICRO-SATELLITE DEVELOPMENT PROGRAM.

    (a) Amount for Program.--Of the amount authorized to be 
appropriated under section 201(3), $50,000,000 shall be available for 
the Clementine 2 micro-satellite near-Earth asteroid interception 
mission.
    (b) Limitation.--Of the funds authorized to be appropriated 
pursuant to this Act for the global positioning system (GPS) Block II F 
Satellite system, not more than $25,000,000 may be obligated until the 
Secretary of Defense certifies to Congress that--
        (1) funds appropriated for fiscal year 1996 for the Clementine 
    2 Micro-Satellite development program have been obligated in 
    accordance with Public Law 104-106 and the Joint Explanatory 
    Statement of the Committee of Conference accompanying S. 1124 
    (House Report 104-450 (104th Congress, second session)); and
        (2) the Secretary has made available for obligation the funds 
    appropriated for fiscal year 1997 for the purpose specified in 
    subsection (a).
    SEC. 214. LIVE-FIRE SURVIVABILITY TESTING OF V-22 OSPREY AIRCRAFT.
    (a) Authority for Retroactive Waiver.--The Secretary of Defense 
may, in accordance with section 2366(c) of title 10, United States 
Code, waive for the V-22 Osprey aircraft program the survivability 
tests required by that section, notwithstanding that such program has 
entered engineering and manufacturing development.
    (b) Report to Congress.--In exercising the waiver authority in 
section 2366(c) of title 10, United States Code, the Secretary shall 
submit to Congress a report explaining how the Secretary plans to 
evaluate the survivability of the V-22 Osprey aircraft system and 
assessing possible alternatives to realistic survivability testing of 
the system.
    (c) Alternative Survivability Test Requirements.--If the Secretary 
of Defense submits in accordance with section 2366(c)(1) of title 10, 
United States Code, a certification that live-fire testing of the V-22 
Osprey aircraft would be unreasonably expensive and impractical, the 
Secretary shall require that components critical to the survivability 
of the V-22 Osprey aircraft be subjected to live-fire testing under an 
alternative live-fire testing program that, by reason of the number of 
such components tested and the realism of the threat environments under 
which the components are tested, will yield test results that provide a 
sufficient basis for drawing meaningful conclusions about the 
survivability of V-22 Osprey aircraft.
    (d) Funding.--The funds required to carry out any alternative live-
fire testing of the V-22 Osprey aircraft system shall be made available 
from amounts appropriated for the V-22 Osprey program.

SEC. 215. LIVE-FIRE SURVIVABILITY TESTING OF F-22 AIRCRAFT.

    (a) Authority for Retroactive Waiver.--The Secretary of Defense 
may, in accordance with section 2366(c) of title 10, United States 
Code, waive for the F-22 aircraft program the survivability tests 
required by that section, notwithstanding that such program has entered 
engineering and manufacturing development.
    (b) Alternative Survivability Test Requirements.--If the Secretary 
of Defense submits in accordance with section 2366(c)(1) of title 10, 
United States Code, a certification that live-fire testing of the F-22 
aircraft would be unreasonably expensive and impractical, the Secretary 
shall require that components and subsystems critical to the 
survivability of the F-22 aircraft be subjected to live-fire testing 
under an alternative live-fire testing program that, by reason of the 
number of such components and subsystems tested and the realism of the 
threat environments under which the components and subsystems are 
tested, will yield test results that provide a sufficient basis for 
drawing meaningful conclusions about the survivability of F-22 
aircraft.
    (c) Funding.--The funds required to carry out any alternative live-
fire testing of the F-22 aircraft system shall be made available from 
amounts appropriated for the F-22 program.
    SEC. 216. LIMITATION ON FUNDING FOR F-16 TACTICAL MANNED 
      RECONNAISSANCE AIRCRAFT.
    (a) Limitation.--Effective on the date of the enactment of this 
Act, not more than $50,000,000 (in fiscal year 1997 constant dollars) 
may be obligated or expended for--
        (1) research, development, test, and evaluation for, and 
    acquisition and modification of, the F-16 tactical manned 
    reconnaissance aircraft program; and
        (2) costs associated with the termination of such program.
    (b) Exception.--The limitation in subsection (a) shall not apply to 
obligations required for improvements planned before the date of the 
enactment of this Act to incorporate the common data link into the F-16 
tactical manned reconnaissance aircraft.

SEC. 217. COST ANALYSIS OF F-22 AIRCRAFT PROGRAM.

    (a) Review and Report.--The Secretary of Defense shall direct the 
Cost Analysis Improvement Group in the Office of the Secretary of 
Defense to review the F-22 aircraft program, analyze and estimate the 
production costs of the program, and submit to the Secretary a report 
on the results of the review.
    (b) Content of Report.--The report shall include--
        (1) a comparison of--
            (A) the results of the review, with
            (B) the results of the last independent estimate of 
        production costs of the program that was prepared by the Cost 
        Analysis Improvement Group in July 1991; and
        (2) a description of any major changes in programmatic 
    assumptions that have occurred since the estimate referred to in 
    paragraph (1)(B) was made, including any major change in 
    assumptions regarding the program schedule, the quantity of 
    aircraft to be developed and acquired, and the annual rates of 
    production, together withan assessment of the effects of such 
changes on the program.
    (c) Submission of Report.--Not later than March 30, 1997, the 
Secretary shall submit the report to the congressional defense 
committees, together with the Secretary's views on the matters covered 
by the report.
    (d) Limitation on Use of Funds Pending Submission of Report.--Not 
more than 92 percent of the funds appropriated for the F-22 aircraft 
program pursuant to the authorization of appropriations in section 
103(1) may be expended until the Secretary of Defense submits the 
report required under this section.

SEC. 218. F-22 AIRCRAFT PROGRAM REPORTS.

    (a) Annual Report.--(1) At the same time that the President submits 
the budget for a fiscal year to Congress pursuant to section 1105(a) of 
title 31, United States Code, the Secretary of Defense shall submit to 
Congress a report on event-based decisionmaking for the F-22 aircraft 
program for that fiscal year. The Secretary shall submit the report for 
fiscal year 1997 not later than October 1, 1996.
    (2) The report for a fiscal year shall include the following:
        (A) A discussion of each decision known within the Department 
    of Defense as an ``event-based decision'' that is expected to be 
    made during that fiscal year regarding whether the F-22 program is 
    to proceed into a new phase or into a new administrative 
    subdivision of a phase.
        (B) The criteria known within the Department of Defense as 
    ``exit criteria'' to be applied, for purposes of making the event-
    based decision, in determining whether the F-22 aircraft program 
    has demonstrated the specific progress necessary for proceeding 
    into the new phase or administrative subdivision of a phase.
    (b) Report on Event-Based Decisions.--Not later than 30 days after 
an event-based decision has been made for the F-22 aircraft program, 
the Secretary of Defense shall submit to Congress a report on the 
decision. The report shall include the following:
        (1) A discussion of the commitments made, and the commitments 
    to be made, under the program as a result of the decision.
        (2) The exit criteria applied for purposes of the decision.
        (3) How, in terms of the exit criteria, the program 
    demonstrated the specific progress justifying the decision.

SEC. 219. COST-BENEFIT ANALYSIS OF F/A-18E/F AIRCRAFT PROGRAM.

    (a) Report on Program.--Not later than March 30, 1997, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the F/A-18E/F aircraft program.
    (b) Content of Report.--The report shall contain the following:
        (1) A review of the F/A-18E/F aircraft program.
        (2) An analysis and estimate of the production costs of the 
    program for the total number of aircraft realistically expected to 
    be procured at each of three annual production rates as follows:
            (A) 18 aircraft.
            (B) 24 aircraft.
            (C) 36 aircraft.
        (3) A comparison of the costs and benefits of the program with 
    the costs and benefits of the F/A-18C/D aircraft program taking 
    into account the operational combat effectiveness of the aircraft.
    (c) Limitation on Use of Funds Pending Submission of Report.--Not 
more than 90 percent of the funds authorized to be appropriated by this 
Act for the procurement of F/A-18E/F aircraft may be obligated or 
expended for procurement of such aircraft before the date that is 30 
days after the date on which the congressional defense committees 
receive the report required under subsection (a).

SEC. 220. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

    (a) Allocation of Funds.--Of the amounts authorized to be 
appropriated pursuant to the authorizations in section 201, 
$602,069,000 shall be available only for advanced technology 
development for the Joint Advanced Strike Technology (JAST) program. Of 
that amount--
        (1) $259,833,000 shall be available only for program element 
    63800N in the budget of the Department of Defense for fiscal year 
    1997;
        (2) $263,836,000 shall be available only for program element 
    63800F in the budget of the Department of Defense for fiscal year 
    1997; and
        (3) $78,400,000 shall be available only for program element 
    63800E in the budget of the Department of Defense for fiscal year 
    1997.
    (b) Analysis of Force Structure.--Of the amounts authorized to be 
appropriated by section 201 for the Joint Advanced Strike Technology 
program, up to $10,000,000 shall be available for the conduct of an 
analysis by the Institute for Defense Analyses of the following:
        (1) The weapon systems force structure required to meet the 
    anticipated range of threats projected by the intelligence 
    community for the period 2000 through 2025.
        (2) Alternative force mixes, including, at a minimum, the 
    following force mixes:
            (A) Joint Strike Fighter derivative aircraft; 
        remanufactured AV-8 aircraft; F-18C/D, F-18E/F, AH-64, AH-1W, 
        RAH-66, F-14, F-16, F-15, F-117, F-22, B-1, B-2, and B-52 
        aircraft; and air-to-surface and surface-to-surface weapons 
        systems.
            (B) Joint Strike Fighter derivative aircraft; 
        remanufactured AV-8 aircraft; F-18C/D, F-18E/F, F-14, F-16, F-
        15, F-117, and F-22 aircraft; and air-to-surface and surface-
        to-surface weapons systems.
        (3) Cost and operational effectiveness of the alternative force 
    mixes analyzed under paragraph (2), includingsensitivity analyses 
related to system performance, costs, threats, and force employment 
scenarios.
        (4) Required operational capability dates of systems not yet in 
    production for the force mixes analyzed under paragraph (2).
        (5) Affordability, commonality, and roles and missions 
    considerations related to the alternative force mixes analyzed 
    under paragraph (2).
    (c) Cost Review of Force Structure Analysis.--The Secretary of 
Defense shall direct the Cost Analysis Improvement Group in the Office 
of the Secretary of Defense to review cost estimates made under the 
analysis conducted under subsection (b) and submit to the Secretary a 
report on the results of the review. The report may include comments 
and additional cost sensitivity analyses.
    (d) Briefing and Report.--(1) Not later than November 15, 1996, the 
Secretary of Defense shall make available to the congressional defense 
committees a briefing on the plan and assumptions for the analysis to 
be conducted under subsection (b).
    (2) Not later than May 15, 1997, the Secretary of Defense shall 
submit to the congressional defense committees a report containing a 
copy of the analysis conducted under subsection (b) and of the cost 
review conducted under subsection (c), together with the views of the 
Secretary on such analysis and cost review.

SEC. 221. UNMANNED AERIAL VEHICLES.

    (a) Procurement Funding Request.--The funding request for 
procurement for unmanned aerial vehicles for any fiscal year shall be 
set forth under the funding requests for the military departments in 
the budget of the Department of Defense.
    (b) Transfer of Program Management.--Program management for the 
Predator Unmanned Aerial Vehicle, and programmed funding for such 
vehicle for fiscal years 1998, 1999, 2000, 2001, and 2002 (as set forth 
in the future-years defense program), shall be transferred to the 
Department of the Air Force, effective October 1, 1996, or the date of 
the enactment of this Act, whichever is later.
    (c) Prohibition on Providing Operating Capability from Naval 
Vessels.--No funds authorized to be appropriated by this Act may be 
obligated for purposes of providing the capability of the Predator 
Unmanned Aerial Vehicle to operate from naval vessels.

SEC. 222. HIGH ALTITUDE ENDURANCE UNMANNED AERIAL RECONNAISSANCE 
              SYSTEM.

    Any concepts for an improved Tier III Minus (High Altitude 
Endurance Unmanned Aerial Reconnaissance) system, developed using funds 
authorized to be appropriated under this title, that would increase the 
unit flyaway cost for such system to an amount greater than the unit 
flyaway cost established in either of the original contracts for such 
system, may not be carried out under the original contracts, but must 
instead be carried out under another contract that is awarded using 
competitive procedures.

SEC. 223. CYCLONE CLASS PATROL CRAFT SELF-DEFENSE.

    (a) Study Required.--The Secretary of Defense shall perform a study 
of the operational requirements for vessel self-defense for the Cyclone 
class patrol craft and a comparative evaluation of the potential means 
for meeting the operational requirements for self-defense of the craft. 
The study shall consider the range of operational scenarios in which 
the craft is expected to be employed.
    (b) Systems To Be Evaluated.--The study under subsection (a) shall 
consider those self-defense systems that could be employed aboard the 
Cyclone class patrol craft, including the Barak ship self-defense 
missile system.
    (c) Report.--Not later than March 31, 1997, the Secretary shall 
submit to Congress a report containing the results of the study under 
subsection (a).
    SEC. 224. ONE-YEAR EXTENSION OF DEADLINE FOR DELIVERY OF ENHANCED 
      FIBER OPTIC GUIDED MISSILE (EFOG-M) SYSTEM.
    Section 272(a)(2) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 239) is amended by 
striking out ``September 30, 1998,'' and inserting in lieu thereof 
``September 30, 1999,''.

SEC. 225. HYDRA-70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

    (a) Funding Authorization.--Of the amount authorized to be 
appropriated under section 201(1) for the Army for Other Missile 
Product Improvement Programs, $9,000,000 is authorized as specified in 
subsection (b) for completion of the Hydra-70 product improvement 
program authorized for fiscal year 1996.
    (b) Authorized Actions.--Funding is authorized to be appropriated 
for the following:
        (1) Procurement for test and flight qualification of at least 
    one nondevelopmental item 2.75-inch composite rocket motor 
    propellant type, along with other nondevelopmental item candidate 
    motors that use composite propellant as the propulsion component.
        (2) Platform integration, including additional quantities of 
    the motor chosen for operational certification on the Apache attack 
    helicopter.
    (c) Definition.--In this section, the term ``nondevelopmental 
item'' has the meaning provided in section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403).
    SEC. 226. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.
    (a) Centers Covered.--Funds authorized to be appropriated for the 
Department of Defense for fiscal year 1997 under section 201 may be 
obligated to procure work from a federally funded research and 
development center (in this section referred to as an ``FFRDC'') only 
in the case of a center named in the report required by subsection (b) 
and, in the case of such a center, only in an amount not in excess of 
theamount of the proposed funding level set forth for that center in 
such report.
    (b) Report on Allocations for Centers.--(1) Not later than 30 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
containing--
        (A) the name of each FFRDC from which work is proposed to be 
    procured for the Department of Defense for fiscal year 1997;
        (B) for each such center, the proposed funding level and the 
    estimated personnel level for fiscal year 1997; and
        (C) for each such center, an unambiguous definition of the 
    unique core competencies required to be maintained for fiscal year 
    1997.
    (2) The total of the proposed funding levels set forth in the 
report for all FFRDCs may not exceed the amount set forth in subsection 
(d).
    (c) Limitation Pending Submission of Report.--Not more than 15 
percent of the funds authorized to be appropriated for the Department 
of Defense for fiscal year 1997 for FFRDCs under section 201 may be 
obligated to procure work from an FFRDC until the Secretary of Defense 
submits the report required by subsection (b).
    (d) Funding.--(1) Subject to paragraph (2), of the amounts 
authorized to be appropriated by section 201, not more than a total of 
$1,214,650,000 may be obligated to procure services from the FFRDCs 
named in the report required by subsection (b).
    (2) The limitation in paragraph (1) does not apply to funds 
obligated for the procurement of equipment for FFRDCs.
    (e) Authority To Waive Funding Limitation.--The Secretary of 
Defense may waive the limitation regarding the maximum funding amount 
that applies under subsection (a) to an FFRDC. Whenever the Secretary 
proposes to make such a waiver, the Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives notice of the proposed waiver 
and the reasons for the waiver. The waiver may then be made only after 
the end of the 60-day period that begins on the date on which the 
notice is submitted to those committees, unless the Secretary 
determines that it is essential to the national security that funds be 
obligated for work at that center in excess of that limitation before 
the end of such period and notifies those committees of that 
determination and the reasons for the determination.
    SEC. 227. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, ROCKETS, AND 
      EXPLOSIVES.
    (a) Establishment of Conventional Munitions, Rockets, and 
Explosives Demilitarization Program.--The Secretary of Defense shall 
establish an integrated program for the development and demonstration 
of technologies for the demilitarization and disposal of conventional 
munitions, rockets, and explosives in a manner that complies with 
applicable environmental laws.
    (b) Duration of Program.--The program established pursuant to 
subsection (a) shall be in effect for a period of at least five years, 
beginning with fiscal year 1997.
    (c) Funding.--Of the amount authorized to be appropriated in 
section 201, $15,000,000 is authorized to be appropriated for the 
program established pursuant to subsection (a). The funding request for 
the program shall be set forth separately in the budget justification 
documents for the budget of the Department of Defense for each fiscal 
year during which the program is in effect.
    (d) Reports.--The Secretary of Defense shall submit to Congress a 
report on the plan for the program established pursuant to subsection 
(a) at the same time the President submits to Congress the budget for 
fiscal year 1998. The Secretary shall submit an updated version of such 
report, setting forth in detail the progress of the program, at the 
same time the President submits the budget for each fiscal year after 
fiscal year 1998 during which the program is in effect.
    SEC. 228. RESEARCH ACTIVITIES OF THE DEFENSE ADVANCED RESEARCH 
      PROJECTS AGENCY RELATING TO CHEMICAL AND BIOLOGICAL WARFARE 
      DEFENSE TECHNOLOGY.
    (a) Authority.--Section 1701(c) of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 
1853; 50 U.S.C. 1522) is amended--
        (1) by inserting ``(1)'' before ``The Secretary''; and
        (2) by adding at the end the following new paragraph:
    ``(2) The Director of the Defense Advanced Research Projects Agency 
may conduct a program of basic and applied research and advanced 
technology development on chemical and biological warfare defense 
technologies and systems. In conducting such program, the Director 
shall seek to avoid unnecessary duplication of the activities under the 
program with chemical and biological warfare defense activities of the 
military departments and defense agencies and shall coordinate the 
activities under the program with those of the military departments and 
defense agencies.''.
    (b) Funding.--Section 1701(d) of such Act is amended--
        (1) in paragraph (1), by striking out ``military departments'' 
    and inserting in lieu thereof ``Department of Defense'';
        (2) in paragraph (2), by inserting after ``requests for the 
    program'' in the first sentence the following: ``(other than for 
    activities under the program conducted by the Defense Advanced 
    Research Projects Agency under subsection (c)(2))'';
        (3) by redesignating paragraph (3) as paragraph (4); and
        (4) by inserting after paragraph (2) the following new 
    paragraph (3):
    ``(3) The program conducted by the Defense Advanced Research 
Projects Agency under subsection (c)(2) shall be set forth as a 
separate program element in the budget of that agency.''.
    SEC. 229. CERTIFICATION OF CAPABILITY OF UNITED STATES TO PREVENT 
      ILLEGAL IMPORTATION OF NUCLEAR, BIOLOGICAL, AND CHEMICAL WEAPONS.
    Not later than 15 days after the date of the enactment of this Act, 
the President shall submit to Congress a certification in writing 
stating specifically whether or not the United States has the 
capability (as of the date of the certification) to prevent the illegal 
importation of nuclear, biological, and chemical weapons into the 
United States and its possessions.

SEC. 230. NONLETHAL WEAPONS AND TECHNOLOGIES PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated under 
section 201(2), $15,000,000 shall be available for joint service 
research, development, test, and evaluation of nonlethal weapons and 
nonlethal technologies under the program element established pursuant 
to subsection (b).
    (b) New Program Element Required.--The Secretary of Defense shall 
establish a new program element for the funds authorized to be 
appropriated under subsection (a). The funds within that program 
element shall be administered by the executive agent designated for 
joint service research, development, test, and evaluation of nonlethal 
weapons and nonlethal technologies.

SEC. 231. COUNTERPROLIFERATION SUPPORT PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated to the 
Department of Defense under section 201(4), $186,200,000 shall be 
available for the Counterproliferation Support Program, of which 
$75,000,000 shall be available for a tactical antisatellite 
technologies program.
    (b) Additional Authority To Transfer Authorizations.--(1) In 
addition to the transfer authority provided in section 1001, 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 1997 to counterproliferation programs, 
projects, and activities identified as areas for progress by the 
Counterproliferation Program Review Committee established by section 
1605 of the National Defense Authorization Act for Fiscal Year 1994 (22 
U.S.C. 2751 note). 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 transferred under the 
authority of this subsection may not exceed $50,000,000.
    (3) The authority provided by this subsection to transfer 
authorizations--
        (A) may only be used to provide authority for items that have a 
    higher priority than the items from which authority is transferred; 
    and
        (B) may not be used to provide authority for an item that has 
    been denied authorization by Congress.
    (4) A transfer made from one account to another under the authority 
of this subsection 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.
    (5) The Secretary of Defense shall promptly notify Congress of 
transfers made under the authority of this subsection.
    (c) Limitation on Use of Funds for Technical Studies and Analyses 
Pending Release of Funds.--(1) None of the funds authorized to be 
appropriated to the Department of Defense for fiscal year 1997 for 
program element 605104D, relating to technical studies and analyses, 
may be obligated or expended until the funds referred to in paragraph 
(2) have been released to the program manager of the tactical anti-
satellite technology program for implementation of that program.
    (2) The funds for release referred to in paragraph (1) are as 
follows:
        (A) Funds authorized to be appropriated by section 218(a) of 
    the National Defense Authorization Act for Fiscal Year 1996 (Public 
    Law 104-106; 110 Stat. 222) that are available for the program 
    referred to in paragraph (1).
        (B) Funds authorized to be appropriated to the Department for 
    fiscal year 1997 by this Act for the Counterproliferation Support 
    Program that are to be made available for that program.

             Subtitle C--Ballistic Missile Defense Programs

    SEC. 241. FUNDING FOR BALLISTIC MISSILE DEFENSE PROGRAMS FOR FISCAL 
      YEAR 1997.
    (a) Program Amounts.--Of the amount appropriated pursuant to 
section 201(4), the following amounts may be obligated for the 
following systems managed by the Ballistic Missile Defense 
Organization:
        (1) For the Theater High Altitude Area Defense (THAAD) System, 
    $621,798,000.
        (2) For the Navy Upper Tier (Theater Wide) system, 
    $304,171,000.
        (3) For the National Missile Defense System, $858,437,000.
        (4) For the Corps Surface-to-Air Missile (SAM)/Medium Extended 
    Air Defense System (MEADS), $56,200,000.
    (b) Limitation.--None of the funds appropriated or otherwise made 
available for the Department of Defense pursuant to this or any other 
Act may be obligated or expended by the Office of the Under Secretary 
of Defense for Acquisition and Technology for official representation 
activities, or related activities, until the Secretary of Defense 
certifies to Congress that--
        (1) the Secretary has made available for obligation the funds 
    provided under subsection (a) for the purposes specified in that 
    subsection and in the amounts appropriated pursuant to that 
    subsection; and
        (2) the Secretary has included the Navy Upper Tier theater 
    missile defense system in the theater missile defense core program.
    (c) Limitations.--Not more than $15,000,000 of the amount available 
for the Corps SAM/MEADS program undersubsection (a) may be obligated 
until the Secretary of Defense submits to the congressional defense 
committees the following:
        (1) An initial program estimate for the Corps SAM/MEADS 
    program, including a tentative schedule of major milestones and an 
    estimate of the total program cost through initial operational 
    capability.
        (2) A report on the options associated with the use of existing 
    systems, technologies, and program management mechanisms to satisfy 
    the requirement for the Corps surface-to-air missile, including an 
    assessment of cost and schedule implications in relation to the 
    program estimate submitted under paragraph (1).
        (3) A certification that there will be no increase in overall 
    United States funding commitment to the project definition and 
    validation phase of the Corps SAM/MEADS program as a result of the 
    withdrawal of France from participation in the program.
    SEC. 242. CERTIFICATION OF CAPABILITY OF UNITED STATES TO DEFEND 
      AGAINST SINGLE BALLISTIC MISSILE.
    Not later than 15 days after the date of the enactment of this Act, 
the President shall submit to Congress a certification in writing 
stating specifically whether or not the United States has the military 
capability (as of the time of the certification) to intercept and 
destroy a single ballistic missile launched at the territory of the 
United States.
    SEC. 243. REPORT ON BALLISTIC MISSILE DEFENSE AND PRO- LIFERATION.
    The Secretary of Defense shall submit to Congress a report on 
ballistic missile defense and the proliferation of weapons of mass 
destruction, including nuclear, chemical, and biological weapons, and 
the missiles that can be used to deliver them. The report shall be 
submitted not later than December 31, 1996, and shall include the 
following:
        (1) An assessment of how United States theater missile defenses 
    contribute to United States efforts to prevent proliferation, 
    including an evaluation of the specific effect United States 
    theater missile defense systems can have on dissuading other states 
    from acquiring ballistic missiles.
        (2) An assessment of how United States national missile 
    defenses contribute to United States efforts to prevent 
    proliferation.
        (3) An assessment of the effect of the lack of national missile 
    defenses on the desire of other states to acquire ballistic 
    missiles and an evaluation of the types of missiles other states 
    might seek to acquire as a result.
        (4) A detailed review of the linkages between missile defenses 
    (both theater and national) and each of the categories of 
    counterproliferation activities identified by the Secretary of 
    Defense as part of the Defense Counterproliferation Initiative 
    announced by the Secretary in December 1993.
        (5) A description of how theater and national ballistic missile 
    defenses can augment the effectiveness of other 
    counterproliferation tools.
    SEC. 244. REVISION TO ANNUAL REPORT ON BALLISTIC MISSILE DEFENSE 
      PROGRAM.
    Section 224(b) of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (10 U.S.C. 2431 note) is amended--
        (1) by striking out paragraphs (3), (4), and (10);
        (2) by redesignating paragraphs (5) and (6) as paragraphs (3) 
    and (4), respectively;
        (3) by redesignating paragraph (7) as paragraph (5) and in that 
    paragraph by striking out ``of the Soviet Union'' and ``for the 
    Soviet Union'';
        (4) by redesignating paragraph (8) as paragraph (6); and
        (5) by redesignating paragraph (9) as paragraph (7) and in that 
    paragraph--
            (A) by striking out ``of the Soviet Union'' in subparagraph 
        (A);
            (B) by striking out subparagraphs (C) through (F); and
            (C) by redesignating subparagraph (G) as subparagraph (C).

SEC. 245. REPORT ON AIR FORCE NATIONAL MISSILE DEFENSE PLAN.

    Not later than 120 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on the following matters regarding 
the National Missile Defense Plan of the Air Force:
        (1) The cost and operational effectiveness of a system that 
    could be developed pursuant to that plan.
        (2) The arms control implications of such a system.
        (3) The growth potential of such a system to meet future 
    threats.
        (4) The recommendations of the Secretary for improvements to 
    that plan.

SEC. 246. CAPABILITY OF NATIONAL MISSILE DEFENSE SYSTEM.

    The Secretary of Defense shall ensure that any National Missile 
Defense system deployed by the United States is capable of defeating 
the threat posed by the Taepo Dong II missile of North Korea.
    SEC. 247. ACTIONS TO LIMIT ADVERSE EFFECTS ON PRIVATE SECTOR 
      EMPLOYMENT OF ESTABLISHMENT OF NATIONAL MISSILE DEFENSE JOINT 
      PROGRAM OFFICE.
    The Secretary of Defense shall take such actions as are necessary 
in connection with the establishment of the National Missile Defense 
Joint Program Office within the Ballistic Missile Defense Organization 
to ensure that the establishment of that office does not make it 
necessary for a Federal Government contractor to reduce significantly 
the number of persons employed by that contractor for supporting the 
national missile defense development program at any particular location 
outside the National Capital Region (as defined in section 2674(f)(2) 
of title 10, United States Code).

SEC. 248. ABM TREATY DEFINED.

    For purposes of this subtitle, the term ``ABM Treaty'' means the 
Treaty Between the United States of America and the Union of Soviet 
Socialist Republics on the Limitation of Anti-Ballistic Missile 
Systems, and signed at Moscow on May 26, 1972, and includes the 
Protocols to that Treaty, signed at Moscow on July 3, 1974.

                       Subtitle D--Other Matters

SEC. 261. MAINTENANCE AND REPAIR AT AIR FORCE INSTALLATIONS.

    (a) Allocation of Funds.--The Secretary of the Air Force shall 
allocate funds authorized to be appropriated by this title and title 
III of this Act for maintenance and repair of real property at military 
installations of the Department of the Air Force without regard to 
whether the installation is supported with funds authorized by this 
title or title III of this Act.
    (b) Mixing of Funds Prohibited on Individual Projects.--The 
Secretary of the Air Force may not combine funds authorized to be 
appropriated by this title and funds authorized to be appropriated by 
title III for an individual project for maintenance and repair of real 
property at a military installation of the Department of the Air Force.
    SEC. 262. REPORT RELATING TO SMALL BUSINESS INNOVATION RESEARCH 
      PROGRAM.
    Not later than March 30, 1997, the Comptroller General shall submit 
to Congress and to the Secretary of Defense a report setting forth the 
following with respect to the Small Business Innovation Research 
Program (as defined by section 2491(11) of title 10, United States 
Code):
        (1) An assessment of whether there has been a demonstrable 
    reduction in the quality of research performed under funding 
    agreements awarded by the Department of Defense under the program 
    since fiscal year 1995.
        (2) An assessment of the degree to which competitive procedures 
    are being followed throughout the military departments and defense 
    agencies in awarding funding agreements under the program.
        (3) An assessment of the degree to which technologies developed 
    through the program are or are likely to be used in military 
    projects and programs.
    SEC. 263. AMENDMENT TO UNIVERSITY RESEARCH INITIATIVE SUPPORT 
      PROGRAM.
    Section 802(c) of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1701; 10 U.S.C. 2358 note) is 
amended by striking out ``fiscal years before the fiscal year in which 
the institution submits a proposal'' and inserting in lieu thereof 
``most recent fiscal years for which complete statistics are available 
when proposals are requested''.
    SEC. 264. AMENDMENTS TO DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
      COMPETITIVE RESEARCH.
    Section 257(d) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2705; 10 U.S.C. 2358 note) is 
amended--
        (1) in paragraph (1)--
            (A) by striking out ``Director of the National Science 
        Foundation'' and inserting in lieu thereof ``Under Secretary of 
        Defense for Acquisition and Technology''; and
            (B) by striking out ``and shall notify the Director of 
        Defense Research and Engineering of the States so designated''; 
        and
        (2) in paragraph (2)--
            (A) in the matter preceding subparagraph (A)--
                (i) by striking out ``Director of the National Science 
            Foundation'' and inserting in lieu thereof ``Under 
            Secretary of Defense for Acquisition and Technology''; and
                (ii) by striking out ``as determined by the Director'' 
            and inserting in lieu thereof ``as determined by the Under 
            Secretary'';
            (B) in subparagraph (A), by striking out ``(to be 
        determined in consultation with the Secretary of Defense);'' 
        and inserting in lieu thereof ``; and'';
            (C) by striking out ``; and'' at the end of subparagraph 
        (B) and inserting in lieu thereof a period; and
            (D) by striking out subparagraph (C).
    SEC. 265. ELIMINATION OF REPORT ON THE USE OF COMPETITIVE 
      PROCEDURES FOR THE AWARD OF CERTAIN CONTRACTS TO COLLEGES AND 
      UNIVERSITIES.
    Section 2361 of title 10, United States Code, is amended by 
striking out subsection (c).
    SEC. 266. PILOT PROGRAM FOR TRANSFER OF DEFENSE TECHNOLOGY 
      INFORMATION TO PRIVATE INDUSTRY.
    (a) Program Required.--The Secretary of Defense shall carry out a 
pilot program to demonstrate online transfers of information on defense 
technologies to businesses in the private sector through an interactive 
data network involving Small Business Development Centers of 
institutions of higher education.
    (b) Computerized Data Base of Defense Technologies.--(1) Under the 
pilot program, the Secretary shall enter into an agreement with the 
head of an eligible institution of higher education that provides for 
such institution--
        (A) to develop and maintain a computerized data base of 
    information on defense technologies;
        (B) to make such information available online to--
            (i) businesses; and
            (ii) other institutions of higher education entering into 
        partnerships with the Secretary under subsection (c).
    (2) The online accessibility may be established by means of any of, 
or any combination of, the following:
        (A) Digital teleconferencing.
        (B) International Signal Digital Network lines.
        (C) Direct modem hookup.
    (c) Partnership Network.--Under the pilot program, the Secretary 
shall seek to enter into agreements with the heads of several eligible 
institutions of higher education having strong business education 
programs to provide for the institutions of higher education entering 
into such agreements--
        (1) to establish interactive computer links with the data base 
    developed and maintained under subsection (b); and
        (2) to assist the Secretary in making information on defense 
    technologies available online to the broadest practicable number, 
    types, and sizes of businesses.
    (d) Eligible Institutions.--For the purposes of this section, an 
institution of higher education is eligible to enter into an agreement 
under subsection (b) or (c) if the institution has a Small Business 
Development Center.
    (e) Defense Technologies Covered.--(1) The Secretary shall 
designate the technologies to be covered by the pilot program from 
among the existing and experimental technologies that the Secretary 
determines--
        (A) are useful in meeting Department of Defense needs; and
        (B) should be made available under the pilot program to 
    facilitate the satisfaction of such needs by private sector 
    sources.
    (2) Technologies covered by the program should include technologies 
useful for defense purposes that can also be used for nondefense 
purposes (with or without modification).
    (f) Definitions.--In this section:
        (1) The term ``Small Business Development Center'' means a 
    small business development center established pursuant to section 
    21 of the Small Business Act (15 U.S.C. 648).
        (2) The term ``defense technology'' means a technology 
    designated by the Secretary of Defense under subsection (d).
        (3) The term ``partnership'' means an agreement entered into 
    under subsection (c).
    (g) Termination of Pilot Program.--The pilot program shall 
terminate one year after the Secretary enters into an agreement under 
subsection (b).
    (h) Authorization of Appropriations.--Of the amount authorized to 
be appropriated under section 201(4) for university research 
initiatives, $3,000,000 is available for the pilot program.
    SEC. 267. RESEARCH UNDER TRANSACTIONS OTHER THAN CONTRACTS AND 
      GRANTS.
    (a) Conditions for Use of Authority.--Subsection (e) of section 
2371 of title 10, United States Code, is amended--
        (1) by redesignating paragraphs (1) and (2) as subparagraphs 
    (A) and (B);
        (2) by inserting ``and'' after the semicolon at the end of 
    subparagraph (A), as so redesignated;
        (3) by striking out ``; and'' at the end of subparagraph (B), 
    as so redesignated, and inserting in lieu thereof a period;
        (4) by inserting ``(1)'' after ``(e) Conditions.--''; and
        (5) by striking out paragraph (3) and inserting in lieu thereof 
    the following:
    ``(2) A cooperative agreement containing a clause under subsection 
(d) or a transaction authorized by subsection (a) may be used for a 
research project when the use of a standard contract, grant, or 
cooperative agreement for such project is not feasible or 
appropriate.''.
    (b) Revised Requirement for Annual Report.--Section 2371 of such 
title is amended by striking out subsection (h) and inserting in lieu 
thereof the following:
    ``(h) Annual Report.--(1) Not later than 90 days after the end of 
each fiscal year, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the use by the 
Department of Defense during such fiscal year of--
        ``(A) cooperative agreements authorized under section 2358 of 
    this title that contain a clause under subsection (d); and
        ``(B) transactions authorized by subsection (a).
    ``(2) The report shall include, with respect to the cooperative 
agreements and other transactions covered by the report, the following:
        ``(A) The technology areas in which research projects were 
    conducted under such agreements or other transactions.
        ``(B) The extent of the cost-sharing among Federal Government 
    and non-Federal sources.
        ``(C) The extent to which the use of the cooperative agreements 
    and other transactions--
            ``(i) has contributed to a broadening of the technology and 
        industrial base available for meeting Department of Defense 
        needs; and
            ``(ii) has fostered within the technology and industrial 
        base new relationships and practices that support the national 
        security of the United States.
        ``(D) The total amount of payments, if any, that were received 
    by the Federal Government during the fiscal year covered by the 
    report pursuant to a clause described in subsection (d) that was 
    included in the cooperative agreements and other transactions, and 
    the amount of such payments, if any, that were credited to each 
    account established under subsection (f).''.
    (c) Division of Section Into Distinct Provisions by Subject 
Matter.--(1) Chapter 139 of title 10, United States Code, is amended--
        (A) by inserting before the last subsection of section 2371 
    (relating to cooperative research and development agreements under 
    the Stevenson-Wydler Technology Innovation Act of 1980) the 
    following:
``Sec. 2371a. Cooperative research and development agreements under 
      Stevenson-Wydler Technology Innovation Act of 1980'';
        (B) in section 2371a (as designated by the amendment made by 
    subparagraph (A)), by striking out ``(i) Cooperative Research and 
    Development Agreements Under Stevenson-Wydler Technology Innovation 
    Act of 1980.--''; and
        (C) in the table of sections at the beginning of such chapter, 
    by inserting after the item relating to section 2371 the following:

``2371a. Cooperative research and development agreements under 
Stevenson-Wydler Technology Innovation Act of 1980.''.

    (2) Section 2358(d) of such title is amended by striking out 
``section 2371'' and inserting in lieu thereof ``sections 2371 and 
2371a''.

SEC. 268. DESALTING TECHNOLOGIES.

    (a) Findings.--Congress makes the following findings:
        (1) Access to scarce fresh water is likely to be a cause of 
    future military conflicts in the Middle East and has a direct 
    impact on stability and security in the region.
        (2) The Middle East is an area of vital and strategic 
    importance to the United States.
        (3) The United States has played a military role in the Middle 
    East, most recently in the Persian Gulf War, and may likely be 
    called upon again to deter aggression in the region.
        (4) United States troops have used desalting technologies to 
    guarantee the availability of fresh water in past deployments in 
    the Middle East.
        (5) Adequate, efficient, and cheap access to high-quality fresh 
    water will be vital to maintaining the readiness and sustainability 
    of troops of both the United States and its allies.
    (b) Sense of Congress.--It is the sense of Congress that, as 
improved access to fresh water will be an important factor in helping 
prevent future conflicts in the Middle East, the United States should, 
in cooperation with its allies, promote and invest in technologies to 
reduce the costs of converting saline water into fresh water.
    (c) Funding for Research and Development.--Of the amounts 
authorized to be appropriated by this title, the Secretary shall place 
greater emphasis on making funds available for research and development 
into efficient and economical processes and methods for converting 
saline water into fresh water.
    SEC. 269. EVALUATION OF DIGITAL VIDEO NETWORK EQUIPMENT USED IN 
      OLYMPIC GAMES.
    (a) Evaluation.--The Secretary of Defense shall evaluate the 
digital video network equipment used in the 1996 Olympic games to 
determine whether such equipment would be the most appropriate 
equipment for use as a test bed for the military application of 
commercial off-the-shelf advanced technology linking multiple 
continents, multiple satellites, and multiple theaters of operations by 
compressed digital audio and visual broadcasting technology.
    (b) Report.--Not later than April 1, 1997, the Secretary of Defense 
shall submit to Congress a report on the results of the evaluation 
conducted under subsection (a).
    SEC. 270. ANNUAL JOINT WARFIGHTING SCIENCE AND TECHNOLOGY PLAN.
    (a) Annual Plan Required.--On March 1 of each year, the Secretary 
of Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a plan for ensuring that the science and technology 
program of the Department of Defense supports the development of the 
future joint warfighting capabilities identified as priority 
requirements for the Armed Forces.
    (b) First Plan.--The first plan under subsection (a) shall be 
submitted not later than March 1, 1997.

         Subtitle E--National Oceanographic Partnership Program

SEC. 281. FINDINGS.

    Congress finds the following:
        (1) The oceans and coastal areas of the United States are among 
    the Nation's most valuable natural resources, making substantial 
    contributions to economic growth, quality of life, and national 
    security.
        (2) Oceans drive global and regional climate. Hence, they 
    contain information affecting agriculture, fishing, and the 
    prediction of severe weather.
        (3) Understanding of the oceans through basic and applied 
    research is essential for using the oceans wisely and protecting 
    their limited resources. Therefore, the United States should 
    maintain its world leadership in oceanography as one key to its 
    competitive future.
        (4) Ocean research and education activities take place within 
    Federal agencies, academic institutions, and industry. These 
    entities often have similar requirements for research facilities, 
    data, and other resources (such as oceanographic research vessels).
        (5) The need exists for a formal mechanism to coordinate 
    existing partnerships and establish new partnerships for the 
    sharing of resources, intellectual talent, and facilities in the 
    ocean sciences and education, so that optimal use can be made of 
    this most important natural resource for the well-being of all 
    Americans.

SEC. 282. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

    (a) Program Required.--(1) Subtitle C of title 10, United States 
Code, is amended by adding after chapter 663 the following new chapter:

       ``CHAPTER 665--NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM

``Sec.
``7901. National Oceanographic Partnership Program.
``7902. National Ocean Research Leadership Council.
``7903. Ocean Research Advisory Panel.

``Sec. 7901. National Oceanographic Partnership Program

    ``(a) Establishment.--The Secretary of the Navy shall establish a 
program to be known as the `National Oceanographic Partnership 
Program'.
    ``(b) Purposes.--The purposes of the program are as follows:
        ``(1) To promote the national goals of assuring national 
    security, advancing economic development, protecting quality of 
    life, and strengthening science education and communication through 
    improved knowledge of the ocean.
        ``(2) To coordinate and strengthen oceanographic efforts in 
    support of those goals by--
            ``(A) identifying and carrying out partnerships among 
        Federal agencies, academia, industry, and other members of the 
        oceanographic scientific community in the areas of data, 
        resources, education, and communication; and
            ``(B) reporting annually to Congress on the program.

``Sec. 7902. National Ocean Research Leadership Council

    ``(a) Council.--There is a National Ocean Research Leadership 
Council (hereinafter in this chapter referred to as the `Council').
    ``(b) Membership.--The Council is composed of the following 
members:
        ``(1) The Secretary of the Navy.
        ``(2) The Administrator of the National Oceanic and Atmospheric 
    Administration.
        ``(3) The Director of the National Science Foundation.
        ``(4) The Administrator of the National Aeronautics and Space 
    Administration.
        ``(5) The Deputy Secretary of Energy.
        ``(6) The Administrator of the Environmental Protection Agency.
        ``(7) The Commandant of the Coast Guard.
        ``(8) The Director of the Geological Survey of the Department 
    of the Interior.
        ``(9) The Director of the Defense Advanced Research Projects 
    Agency.
        ``(10) The Director of the Minerals Management Service of the 
    Department of the Interior.
        ``(11) The President of the National Academy of Sciences, the 
    President of the National Academy of Engineering, and the President 
    of the Institute of Medicine.
        ``(12) The Director of the Office of Science and Technology.
        ``(13) The Director of the Office of Management and Budget.
        ``(14) One member appointed by the chairman from among 
    individuals who will represent the views of ocean industries.
        ``(15) One member appointed by the chairman from among 
    individuals who will represent the views of State governments.
        ``(16) One member appointed by the chairman from among 
    individuals who will represent the views of academia.
        ``(17) One member appointed by the chairman from among 
    individuals who will represent such other views as the chairman 
    considers appropriate.
    ``(c) Chairman and Vice Chairman.--(1) Except as provided in 
paragraph (2), the chairman and vice chairman of the Council shall be 
appointed every two years by a selection committee of the Council 
composed of, at a minimum, the Secretary of the Navy, the Administrator 
of the National Oceanic and Atmospheric Administration, and the 
Director of the National Science Foundation. The term of office of the 
chairman and vice chairman shall be two years. A person who has 
previously served as chairman or vice chairman may be reappointed.
    ``(2) The first chairman of the Council shall be the Secretary of 
the Navy. The first vice chairman of the Council shall be the 
Administrator of the National Oceanic and Atmospheric Administration.
    ``(d) Term of Office.--The term of office of a member of the 
Council appointed under paragraph (14), (15), (16), or (17) of 
subsection (b) shall be two years, except that any person appointed to 
fill a vacancy occurring before the expiration of the term for which 
his predecessor was appointed shall be appointed for the remainder of 
such term.
    ``(e) Responsibilities.--The Council shall have the following 
responsibilities:
        ``(1) To prescribe policies and procedures to implement the 
    National Oceanographic Partnership Program.
        ``(2) To review, select, and identify and allocate funds for 
    partnership projects for implementation under the program, based on 
    the following criteria:
            ``(A) Whether the project addresses critical research 
        objectives or operational goals, such as data accessibility and 
        quality assurance, sharing of resources, education, or 
        communication.
            ``(B) Whether the project has, or is designed to have, 
        broad participation within the oceanographic community.
            ``(C) Whether the partners have a long-term commitment to 
        the objectives of the project.
            ``(D) Whether the resources supporting the project are 
        shared among the partners.
            ``(E) Whether the project has been subjected to adequate 
        peer review.
        ``(3) To assess whether there is a need for a facility (or 
    facilities) to provide national centralization of oceanographic 
    data, and to establish such a facility or facilities if determined 
    necessary. In conducting the assessment, the Council shall review, 
    at a minimum, the following:
            ``(A) The need for a national oceanographic data center.
            ``(B) The need for a national coastal data center.
            ``(C) Accessibility by potential users of such centers.
            ``(D) Preexisting facilities and expertise.
    ``(f) Annual Report.--Not later than March 1 of each year, the 
Council shall submit to Congress a report on the National Oceanographic 
Partnership Program. The report shall contain the following:
        ``(1) A description of activities of the program carried out 
    during the fiscal year before the fiscal year in which the report 
    is prepared, together with a list of the members of the Ocean 
    Research Advisory Panel and any working groups in existence during 
    the fiscal year covered.
        ``(2) A general outline of the activities planned for the 
    program during the fiscal year in which the report is prepared.
        ``(3) A summary of projects continued from the fiscal year 
    before the fiscal year in which the report is prepared and projects 
    expected to be started during the fiscal year in which the report 
    is prepared and during the following fiscal year.
        ``(4) A description of the involvement of the program with 
    Federal interagency coordinating entities.
        ``(5) The amounts requested, in the budget submitted to 
    Congress pursuant to section 1105(a) of title 31, United States 
    Code, for the fiscal year following the fiscal year in which the 
    report is prepared, for the programs, projects, and activities of 
    the program and the estimated expenditures under such programs, 
    projects, and activities during such following fiscal year.
    ``(g) Partnership Program Office.--(1) The Council shall establish 
a partnership program office for the National Oceanographic Partnership 
Program. The Council shall use competitive procedures in selecting an 
operator for the partnership program office.
    ``(2) The Council shall assign the following duties to the 
partnership program office:
        ``(A) To establish and oversee working groups to propose 
    partnership projects to the Council and advise the Council on such 
    projects.
        ``(B) To manage the process for proposing partnership projects 
    to the Council, including managing peer review of such projects.
        ``(C) To submit to the Council an annual report on the status 
    of all partnership projects and activities of the office.
        ``(D) Any additional duties for the administration of the 
    National Oceanographic Partnership Program that the Council 
    considers appropriate.
    ``(3) The Council shall supervise the performance of duties by the 
partnership program office.
    ``(h) Contract and Grant Authority.--The Council may authorize one 
or more of the departments or agencies represented on the Council to 
enter into contracts and make grants, using funds appropriated pursuant 
to an authorization of appropriations for the National Oceanographic 
Partnership Program, for the purpose of implementing the program and 
carrying out the responsibilities of the Council.
    ``(i) Establishment and Forms of Partnership Projects.--(1) A 
partnership project under the National Oceanographic Partnership 
Program may be established by any instrument that the Council considers 
appropriate, including a memorandum of understanding, a cooperative 
research and development agreement, and any similar instrument.
    ``(2) Projects under the program may include demonstration 
projects.

``Sec. 7903. Ocean Research Advisory Panel

    ``(a) Establishment.--The Council shall establish an Ocean Research 
Advisory Panel consisting of not less than 10 and not more than 18 
members appointed by the Council from among persons eminent in the 
fields of marine science or marine policy, or related fields, and who 
are representative, at a minimum, of the interests of government, 
academia, and industry.
    ``(b) Responsibilities.--The Council shall assign to the Advisory 
Panel responsibilities that the Council considers appropriate.''.
    (2) The table of chapters at the beginning of subtitle C of title 
10, United States Code, and the table of chapters at the beginning of 
part IV of such subtitle, are each amended by inserting after the item 
relating to chapter 663 the following:

``665. National Oceanographic Partnership Program................7901''.

    (b) Initial Appointments of Council Members.--The Secretary of the 
Navy shall make the appointments required by section 7902(b) of title 
10, United States Code, as added by subsection (a)(1), not later than 
December 1, 1996.
    (c) Initial Appointments of Advisory Panel Members.--The National 
Ocean Research Leadership Council established by section 7902 of title 
10, United States Code, as added by subsection (a)(1), shall make the 
appointments required by section 7903 of such title not later than 
January 1, 1997.
    (d) First Annual Report of National Ocean Research Leadership 
Council.--The first annual report required by section 7902(f) of title 
10, United States Code, as added by subsection (a)(1), shall be 
submitted to Congress not later than March 1, 1997. The first report 
shall include, in addition to the information required by such section, 
information about the terms of office, procedures, and responsibilities 
of the Ocean Research Advisory Panel established by the Council.
    (e) Authorization.--(1) Of the amount authorized to be appropriated 
to the Department of the Navy by section 201(2), $13,000,000 shall be 
available for the National Oceanographic Partnership Program 
established pursuant to section 7901 of title 10, United States Code, 
as added by subsection (a)(1).
    (2) Of the amount authorized to be appropriated to the Department 
of the Navy by section 301(2), $7,500,000 shall be available for such 
program.
    (f) Funding for Program Office.--Of the amount appropriated for the 
National Oceanographic Partnership Program for fiscal year 1997, at 
least $500,000, or 3 percent of the amount appropriated, whichever is 
greater, shall be available for operations of the partnership program 
office established pursuant to section 7902(g) of title 10, United 
States Code, as added by subsection (a)(1), for such fiscal year.

                  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. Civil Air Patrol Corporation.
Sec. 306. Availability of additional funds for antiterrorism activities.
Sec. 307. Nonlethal weapons capabilities.
Sec. 308. SR-71 contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval shipyards 
to engage in defense-related production and services.
Sec. 312. Test programs for modernization-through-spares.

                  Subtitle C--Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on 
contractor reimbursement costs for response actions.
Sec. 322. Establishment of separate environmental restoration accounts 
for each military department.
Sec. 323. Payment of stipulated penalties assessed under CERCLA.
Sec. 324. Shipboard solid waste control.
Sec. 325. Authority to develop and implement land use plans for Defense 
Environmental Restoration program.
Sec. 326. Pilot program to test alternative technology for limiting air 
emissions during shipyard blasting and coating operations.
Sec. 327. Agreements for services of other agencies in support of 
environmental technology certification.
Sec. 328. Repeal of redundant notification and consultation requirements 
regarding remedial investigations and feasibility studies at certain 
installations to be closed under the base closure laws.
Sec. 329. Authority for agreements with Indian tribes for services under 
environmental restoration program.
Sec. 330. Authority to withhold listing of Federal facilities on 
National Priorities List.
Sec. 331. Clarification of meaning of uncontaminated property for 
purposes of transfer by the United States.
Sec. 332. Conservation and cultural activities.
Sec. 333. Navy program to monitor ecological effects of organotin.
Sec. 334. Authority to transfer contaminated Federal property before 
completion of required response actions.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and 
services to promote efficient operation and management of exchanges and 
morale, welfare, and recreation activities.
Sec. 342. Noncompetitive procurement of brand-name commercial items for 
resale in commissary stores.
Sec. 343. Prohibition of sale or rental of sexually explicit material.

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

Sec. 351. Extension of requirement for competitive procurement of 
printing and duplication services.
Sec. 352. Reporting requirements under demonstration project for 
purchase of fire, security, police, public works, and utility services 
from local government agencies.

                        Subtitle F--Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting 
functions.
Sec. 362. Training of members of the uniformed services at non-
Government facilities.
Sec. 363. Requirement for preparation of plan for improved operation of 
working-capital funds and effect of failure to produce an approved plan.
Sec. 364. Increase in capital asset threshold under Defense Business 
Operations Fund.
Sec. 365. Expansion of authority to donate unusable food.
Sec. 366. Assistance to committees involved in inauguration of the 
President.
Sec. 367. Department of Defense support for sporting events.
Sec. 368. Storage of motor vehicle in lieu of transportation.
Sec. 369. Security protections at Department of Defense facilities in 
National Capital Region.
Sec. 370. Administration of midshipmen's store and other Naval Academy 
support activities as nonappropriated fund instrumentality.
Sec. 371. Reimbursement under agreement for instruction of civilian 
students at Foreign Language Institute of the Defense Language 
Institute.
Sec. 372. Assistance to local educational agencies that benefit 
dependents of members of the Armed Forces and Department of Defense 
civilian employees.
Sec. 373. Renovation of building for Defense Finance and Accounting 
Service Center, Fort Benjamin Harrison, Indiana.
Sec. 374. Food donation pilot program at service academies.
Sec. 375. Authority of Air National Guard to provide certain services at 
Lincoln Municipal Airport, Lincoln, Nebraska.
Sec. 376. Technical amendment regarding Impact Aid program.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
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, $18,264,406,000.
        (2) For the Navy, $20,387,737,000.
        (3) For the Marine Corps, $2,421,007,000.
        (4) For the Air Force, $17,635,335,000.
        (5) For Defense-wide activities, $9,912,962,000.
        (6) For the Army Reserve, $1,136,436,000.
        (7) For the Naval Reserve, $858,927,000.
        (8) For the Marine Corps Reserve, $113,367,000.
        (9) For the Air Force Reserve, $1,499,553,000.
        (10) For the Army National Guard, $2,277,477,000.
        (11) For the Air National Guard, $2,711,173,000.
        (12) For the Defense Inspector General, $136,501,000.
        (13) For the United States Court of Appeals for the Armed 
    Forces, $6,797,000.
        (14) For Environmental Restoration, Army, $356,916,000.
        (15) For Environmental Restoration, Navy, $302,900,000.
        (16) For Environmental Restoration, Air Force, $414,700,000.
        (17) For Environmental Restoration, Defense-wide, $258,500,000.
        (18) For Overseas Humanitarian, Disaster, and Civic Aid 
    programs, $54,544,000.
        (19) For Drug Interdiction and Counter-drug Activities, 
    Defense-wide, $796,524,000.
        (20) For the Kaho'olawe Island Conveyance, Remediation, and 
    Environmental Restoration Trust Fund, $10,000,000.
        (21) For Medical Programs, Defense, $9,833,288,000.
        (22) For Cooperative Threat Reduction programs, $364,900,000.
        (23) For Domestic Emergency Assistance programs, $97,000,000.
        (24) For OPLAN 34A-35 P.O.W. payments, $20,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
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 Business Operations Fund, $947,900,000.
        (2) For the National Defense Sealift Fund, $1,118,002,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1997 
from the Armed Forces Retirement Home Trust Fund the sum of $57,300,000 
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 1997 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. CIVIL AIR PATROL CORPORATION.

    (a) Funding.--Of the amount authorized to be appropriated pursuant 
to section 301 for operation and maintenance, $14,526,000 shall be 
available for the Civil Air Patrol Corporation.
    (b) Amount for Certain Operations.--Of the amount made available to 
the Civil Air Patrol Corporation pursuant to subsection (a), not less 
than 25 percent of such amount shall be reserved to cover the costs of 
search and rescue missions and disaster relief missions.
    SEC. 306. AVAILABILITY OF ADDITIONAL FUNDS FOR ANTITERRORISM 
      ACTIVITIES.
    Of the amount authorized to be appropriated pursuant to section 301 
for operation and maintenance, $14,000,000 shall be available to the 
Secretary of Defense for activities designed to meet the antiterrorism 
responsibilities of the Department of Defense, including activities 
related to intelligence support, physical security measures, and 
education and training regarding antiterrorism. The amount made 
available by this section is in addition to amounts otherwise made 
available by this Act for antiterrorism activities.

SEC. 307. NONLETHAL WEAPONS CAPABILITIES.

    Of the amount authorized to be appropriated pursuant to section 
301, $5,000,000 shall be available for the immediate procurement of 
nonlethal weapons capabilities to meet existing deficiencies in 
inventories of such capabilities, of which--
        (1) $2,000,000 shall be available for the Army; and
        (2) $3,000,000 shall be available for the Marine Corps.

SEC. 308. SR-71 CONTINGENCY RECONNAISSANCE FORCE.

    Of the funds authorized to be appropriated by section 301(4), 
$30,000,000 is authorized to be made available for the SR-71 
contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

    SEC. 311. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL 
      SHIPYARDS TO ENGAGE IN DEFENSE-RELATED PRODUCTION AND SERVICES.
    Section 1425(e) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended by 
striking out ``September 30, 1996'' and inserting in lieu thereof 
``September 30, 1997''.

SEC. 312. TEST PROGRAMS FOR MODERNIZATION-THROUGH-SPARES.

    Not later than 60 days after the date of the enactment of this Act, 
the Secretary of the Army shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on the steps that the Secretary has 
taken to ensure that each program included in the modernization-
through-spares program of the Army is conducted in accordance with--
        (1) the competition requirements in section 2304 of title 10, 
    United States Code;
        (2) the core logistics requirements in section 2464 of such 
    title;
        (3) the public-private competition requirements in section 2469 
    of such title; and
        (4) requirements relating to contract bundling and spare parts 
    breakout in subsections (a) and (l) of section 15 of the Small 
    Business Act (15 U.S.C. 644) and regulations implementing such 
    subsections in the Defense Federal Acquisition Regulation 
    Supplement.

                  Subtitle C--Environmental Provisions

    SEC. 321. DEFENSE CONTRACTORS COVERED BY REQUIREMENT FOR REPORTS ON 
      CONTRACTOR REIMBURSEMENT COSTS FOR RESPONSE ACTIONS.
    Section 2706(d)(1)(A) of title 10, United States Code, is amended 
by striking out ``100'' and inserting in lieu thereof ``20''.
    SEC. 322. ESTABLISHMENT OF SEPARATE ENVIRONMENTAL RESTORATION 
      ACCOUNTS FOR EACH MILITARY DEPARTMENT.
    (a) Establishment.--(1) Section 2703 of title 10, United States 
Code, is amended to read as follows:

``Sec. 2703. Environmental restoration accounts

    ``(a) Establishment of Accounts.--There are hereby established in 
the Department of Defense the following accounts:
        ``(1) An account to be known as the `Environmental Restoration 
    Account, Defense'.
        ``(2) An account to be known as the `Environmental Restoration 
    Account, Army'.
        ``(3) An account to be known as the `Environmental Restoration 
    Account, Navy'.
        ``(4) An account to be known as the `Environmental Restoration 
    Account, Air Force'.
    ``(b) Obligation of Authorized Amounts.--Funds authorized for 
deposit in an account under subsection (a) may be obligated or expended 
from the account only in order 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. Funds so authorized shall remain available until 
expended.
    ``(c) Budget Reports.--In proposing the budget for any fiscal year 
pursuant to section 1105 of title 31, United States Code, the President 
shall set forth separately the amounts requested for environmental 
restoration programs of the Department of Defense and of each of the 
military departments under this chapter and under any other Act.
    ``(d) Credit of Amounts Recovered.--The following amounts shall be 
credited to the appropriate environmental restoration account:
        ``(1) Amounts recovered under CERCLA for response actions.
        ``(2) Any other amounts recovered from a contractor, insurer, 
    surety, or other person to reimburse the Department of Defense or a 
    military department for any expenditure for environmental response 
    activities.
    ``(e) Payments of Fines and Penalties.--None of the funds 
appropriated to the Environmental Restoration Account, Defense, for 
fiscal years 1995 through 1999, or to any environmental restoration 
account of a military department for fiscal years 1997 through 1999, 
may be used for the payment of a fine or penalty (including any 
supplemental environmental project carried out as part of such penalty) 
imposed against the Department of Defense or a military department 
unless the act or omission for which the fine or penalty is imposed 
arises out of an activity funded by the environmental restoration 
account concerned and the payment of the fine or penalty has been 
specifically authorized by law.''.
    (2) The table of sections at the beginning of chapter 160 of title 
10, United States Code, is amended by striking out the item relating to 
section 2703 and inserting in lieu thereof the following new item:
``2703. Environmental restoration accounts.''.

    (b) References.--Any reference to the Defense Environmental 
Restoration Account in any Federal law, Executive Order, regulation, 
delegation of authority, or document shall be deemed to refer to the 
appropriate environmental restoration account established under section 
2703(a)(1) of title 10, United States Code (as amended by subsection 
(a)(1)).
    (c) Conforming Amendment.--Section 2705(g)(1) of title 10, United 
States Code, is amended by striking out ``the Defense Environmental 
Restoration Account established'' and inserting in lieu thereof ``the 
environmental restoration account concerned''.
    (d) Treatment of Unobligated Balances.--Any unobligated balances 
that remain in the Defense Environmental Restoration Account under 
section 2703(a) of title 10, United States Code, as of the effective 
date specified in subsection (e) shall be transferred on such date to 
the Environmental Restoration Account, Defense, established under 
section 2703(a)(1) of title 10, United States Code (as amended by 
subsection (a)(1)).
    (e) Effective Date.--The amendments made by this section shall take 
effect on the later of--
        (1) October 1, 1996; or
        (2) the date of the enactment of this Act.
    SEC. 323. PAYMENTS OF STIPULATED PENALTIES ASSESSED UNDER CERCLA.
    (a) Authority.--The Secretary of Defense may pay the following:
        (1) Stipulated civil penalties, to the Hazardous Substance 
    Superfund established under section 9507 of the Internal Revenue 
    Code of 1986, in amounts, and using funds, as follows:
            (A) Using funds authorized to be appropriated to the 
        Environmental Restoration Account, Army, established under 
        section 2703(a)(2) of title 10, United States Code (as amended 
        by section 322 of this Act)--
                (i) not more than $34,000 assessed against Fort Riley, 
            Kansas, under CERCLA; and
                (ii) not more than $37,500 assessed against Lake City 
            Army Ammunition Plant, Missouri, under CERCLA.
            (B) Using funds authorized to be appropriated to the 
        Environmental Restoration Account, Navy, established under 
        section 2703(a)(3) of that title, as so amended, not more than 
        $30,000 assessed against the Naval Education and Training 
        Center, Newport, Rhode Island, under CERCLA.
            (C) Using funds authorized to be appropriated to the 
        Environmental Restoration Account, Air Force, established under 
        section 2703(a)(4) of that title, as so amended--
                (i) not more than $55,000 assessed against the 
            Massachusetts Military Reservation, Massachusetts, under 
            CERCLA; and
                (ii) not more than $10,000 assessed against F.E. Warren 
            Air Force Base, Wyoming, under CERCLA.
        (2) Using funds authorized to be appropriated to the 
    Environmental Restoration Account, Air Force, established under 
    section 2703(a)(4) of that title, as so amended, not more than 
    $500,000 to carry out one environmental restoration project, as 
    part of a negotiated agreement in lieu of stipulated penalties 
    assessed under CERCLA against the Massachusetts Military 
    Reservation, Massachusetts.
    (b) CERCLA Defined.--In this section, the term ``CERCLA'' means the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.).

SEC. 324. SHIPBOARD SOLID WASTE CONTROL.

    (a) In General.--Section 3(c) of the Act to Prevent Pollution from 
Ships (33 U.S.C. 1902(c)) is amended--
        (1) in paragraph (1), by striking out ``Not later than'' and 
    inserting in lieu thereof ``Except as provided in paragraphs (2) 
    and (3), not later than''; and
        (2) by striking out paragraphs (2), (3), and (4) and inserting 
    in lieu thereof the following:
    ``(2)(A) Subject to subparagraph (B), any ship described in 
subparagraph (C) may discharge, without regard to the special area 
requirements of Regulation 5 of Annex V to the Convention, the 
following non-plastic, non-floating garbage:
        ``(i) A slurry of seawater, paper, cardboard, or food waste 
    that is capable of passing through a screen with openings no larger 
    than 12 millimeters in diameter.
        ``(ii) Metal and glass that have been shredded and bagged so as 
    to ensure negative buoyancy.
    ``(B)(i) Garbage described in subparagraph (A)(i) may not be 
discharged within 3 nautical miles of land.
    ``(ii) Garbage described in subparagraph (A)(ii) may not be 
discharged within 12 nautical miles of land.
    ``(C) This paragraph applies to any ship that is owned or operated 
by the Department of the Navy that, as determined by the Secretary of 
the Navy--
        ``(i) has unique military design, construction, manning, or 
    operating requirements; and
        ``(ii) cannot fully comply with the special area requirements 
    of Regulation 5 of Annex V to the Convention because compliance is 
    not technologically feasible or would impair the operations or 
    operational capability of the ship.
    ``(3)(A) Not later than December 31, 2000, the Secretary of the 
Navy shall prescribe and publish in the Federal Register standards to 
ensure that each ship described in subparagraph (B) is, to the maximum 
extent practicable without impairing the operations or operational 
capabilities of the ship, operated in a manner that is consistent with 
the special area requirements of Regulation 5 of Annex V to the 
Convention.
    ``(B) Subparagraph (A) applies to surface ships that are owned or 
operated by the Department of the Navy that the Secretary plans to 
decommission during the period beginning on January 1, 2001, and ending 
on December 31, 2005.
    ``(C) At the same time that the Secretary publishes standards under 
subparagraph (A), the Secretary shall publish in the Federal Register a 
list of the ships covered by subparagraph (B).''.
    (b) Sense of Congress.--(1) It is the sense of Congress that it 
should be an objective of the Navy to achieve full compliance with 
Annex V to the Convention as part of the Navy's development of ships 
that are environmentally sound.
    (2) In this subsection, the terms ``Convention'' and ``ship'' have 
the meanings given such terms in section 2(a) of the Act to Prevent 
Pollution from Ships (33 U.S.C. 1901(a)).
    (c) Report on Compliance With Annex V to the Convention.--The 
Secretary of Defense shall include in each report on environmental 
compliance activities submitted to Congress under section 2706(b) of 
title 10, United States Code, the following information:
        (1) A list of the ship types, if any, for which the Secretary 
    of the Navy has made the determination referred to in paragraph 
    (2)(C) of section 3(c) of the Act to Prevent Pollution from Ships, 
    as amended by subsection (a)(2) of this section.
        (2) A list of ship types which the Secretary of the Navy has 
    determined can comply with Regulation 5 of Annex V to the 
    Convention.
        (3) A summary of the progress made by the Navy in implementing 
    the requirements of paragraphs (2) and (3) of such section 3(c), as 
    so amended.
        (4) A description of any emerging technologies offering the 
    potential to achieve full compliance with Regulation 5 of Annex V 
    to the Convention.
        (5) The amount and nature of the discharges in special areas, 
    not otherwise authorized under the Act to Prevent Pollution from 
    Ships (33 U.S.C. 1901 et seq.), during the preceding year from 
    ships referred to in section 3(b)(1)(A) of such Act owned or 
    operated by the Department of the Navy.
    (d) Publication Regarding Special Area Discharges.--Subparagraph 
(A) of section 3(e)(4) of the Act to Prevent Pollution from Ships (33 
U.S.C. 1902(e)(4)) is amended to read as follows:
            ``(A) Each year, the amount and nature of the discharges in 
        special areas, not otherwise authorized under this Act, during 
        the preceding year from ships referred to in subsection 
        (b)(1)(A) of this section owned or operated by the Department 
        of the Navy.''.
    SEC. 325. AUTHORITY TO DEVELOP AND IMPLEMENT LAND USE PLANS FOR 
      DEFENSE ENVIRONMENTAL RESTORATION PROGRAM.
    (a) Authority.--The Secretary of Defense may, to the extent 
possible and practical, develop and implement, as part of the Defense 
Environmental Restoration Program provided for in chapter 160 of title 
10, United States Code, a land useplan for any defense site selected by 
the Secretary under subsection (b).
    (b) Selection of Sites.--The Secretary may select up to 10 defense 
sites, from among sites where the Secretary is planning or implementing 
environmental restoration activities, for which land use plans may be 
developed under this section.
    (c) Requirement To Consult With Review Committee or Advisory 
Board.--In developing a land use plan under this section, the Secretary 
shall consult with a technical review committee established pursuant to 
section 2705(c) of title 10, United States Code, a restoration advisory 
board established pursuant to section 2705(d) of such title, a local 
land use redevelopment authority, or another appropriate State agency.
    (d) 50-Year Planning Period.--A land use plan developed under this 
section shall cover a period of at least 50 years.
    (e) Implementation.--For each defense site for which the Secretary 
develops a land use plan under this section, the Secretary shall take 
into account the land use plan in selecting and implementing, in 
accordance with applicable law, environmental restoration activities at 
the site.
    (f) Deadlines.--For each defense site for which the Secretary 
intends to develop a land use plan under this section, the Secretary 
shall develop a draft land use plan by October 1, 1997, and a final 
land use plan by March 15, 1998.
    (g) Definition of Defense Site.--For purposes of this section, the 
term ``defense site'' means (A) any building, structure, installation, 
equipment, pipe or pipeline (including any pipe into a sewer or 
publicly owned treatment works), well, pit, pond, lagoon, impoundment, 
ditch, landfill, storage container, motor vehicle, rolling stock, or 
aircraft under the jurisdiction of the Department of Defense, or (B) 
any site or area under the jurisdiction of the Department of Defense 
where a hazardous substance has been deposited, stored, disposed of, or 
placed, or otherwise come to be located; but does not include any 
consumer product in consumer use or any vessel.
    (h) Report.--In the annual report required under section 2706(a) of 
title 10, United States Code, the Secretary shall include information 
on the land use plans developed under this section and the effect such 
plans have had on environmental restoration activities at the defense 
sites where they have been implemented. The annual report submitted in 
1999 shall include recommendations on whether such land use plans 
should be developed and implemented throughout the Department of 
Defense.
    (i)  Savings Provisions.--(1) Nothing in this section, or in a land 
use plan developed under this section with respect to a defense site, 
shall be construed as requiring any modification to a land use plan 
that was developed before the date of the enactment of this Act.
    (2) Nothing in this section may be construed to affect statutory 
requirements for an environmental restoration or waste management 
activity or project or to modify or otherwise affect applicable 
statutory or regulatory environmental restoration and waste management 
requirements, including substantive standards intended to protect 
public health and the environment, nor shall anything in this section 
be construed to preempt or impair any local land use planning or zoning 
authority or State authority.
    SEC. 326. PILOT PROGRAM TO TEST ALTERNATIVE TECHNOLOGY FOR LIMITING 
      AIR EMISSIONS DURING SHIPYARD BLASTING AND COATING OPERATIONS.
    (a) Determination by Secretary of the Navy.--(1) The Secretary of 
the Navy shall make a determination whether the alternative technology 
described in paragraph (2) has the clear potential for significant 
benefit to the Navy. The Secretary shall submit to Congress a 
notification in writing of the determination not later than 60 days 
after the date of the enactment of this Act.
    (2) The technology referred to in paragraph (1) is an alternative 
technology designed to capture and destroy or remove particulate 
emissions and volatile air pollutants that occur during abrasive 
blasting and coating operations at naval shipyards.
    (b) Pilot Program.--If the determination made under subsection 
(a)(1) is in the affirmative, the Secretary shall establish a pilot 
program to test the alternative technology. In conducting the test, the 
Secretary shall seek to demonstrate whether the technology is valid, 
cost effective, and in compliance with environmental laws and 
regulations.
    (c) Report.--Upon completion of the test conducted under the pilot 
program, the Secretary shall submit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the House of 
Representatives a report setting forth in detail the results of the 
test. The report shall include recommendations on whether the 
alternative technology merits implementation at naval shipyards and 
such other recommendations as the Secretary considers appropriate.
    SEC. 327. AGREEMENTS FOR SERVICES OF OTHER AGENCIES IN SUPPORT OF 
      ENVIRONMENTAL TECHNOLOGY CERTIFICATION.
    (a) Authority.--Subject to subsection (b), the Secretary of Defense 
may enter into a cooperative agreement with an agency of a State or 
local government to obtain assistance in certifying environmental 
technologies.
    (b) Limitations.--The Secretary of Defense may enter into a 
cooperative agreement with respect to an environmental technology under 
subsection (a) only if the Secretary determines--
        (1) that the technology has clear potential to be of 
    significant value to the Department of Defense in carrying out its 
    environmental restoration activities; and
        (2) that there is no reasonably available market in the private 
    sector for the technology without a certification by the Department 
    of Defense, the Environmental Protection Agency, or a State 
    environmental agency.
    (c) Types of Assistance.-- The types of assistance that may be 
obtained under subsection (a) include the following:
        (1) Data collection and analysis.
        (2) Technical assistance in conducting a demonstration of an 
    environmental technology, including the implementation of quality 
    assurance and quality control programs.
    (d) Report.--In the annual report required under section 2706(a) of 
title 10, United States Code, the Secretary of Defense shall include 
the following information with respect to cooperative agreements 
entered into under this section:
        (1) The number of such agreements.
        (2) The number of States in which such agreements have been 
    entered into.
        (3) A description of the nature of the technology involved in 
    each such agreement.
        (4) The amount of funds obligated or expended by the Department 
    of Defense for each such agreement during the year covered by the 
    report.
    (e) Termination of Authority.--The authority provided under 
subsection (a) shall terminate five years after the date of the 
enactment of this Act.
    SEC. 328. REPEAL OF REDUNDANT NOTIFICATION AND CONSULTATION 
      REQUIREMENTS REGARDING REMEDIAL INVESTIGATIONS AND FEASIBILITY 
      STUDIES AT CERTAIN INSTALLATIONS TO BE CLOSED UNDER THE BASE 
      CLOSURE LAWS.
    Section 334 of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1340; 10 U.S.C. 2687 
note) is repealed.
    SEC. 329. AUTHORITY FOR AGREEMENTS WITH INDIAN TRIBES FOR SERVICES 
      UNDER ENVIRONMENTAL RESTORATION PROGRAM.
    Section 2701(d) of title 10, United States Code, is amended--
        (1) in the first sentence of paragraph (1), by striking out ``, 
    or with any State or local government agency,'' and inserting in 
    lieu thereof ``, with any State or local government agency, or with 
    any Indian tribe,''; and
        (2) by adding at the end the following:
        ``(3) Definition.--In this subsection, the term `Indian tribe' 
    has the meaning given such term in section 101(36) of the 
    Comprehensive Environmental Response, Compensation, and Liability 
    Act of 1980 (42 U.S.C. 9601(36)).''.
    SEC. 330. AUTHORITY TO WITHHOLD LISTING OF FEDERAL FACILITIES ON 
      NATIONAL PRIORITIES LIST.
    Section 120(d) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(d)) is 
amended--
        (1) by redesignating paragraphs (1) and (2) as subparagraphs 
    (A) and (B), respectively;
        (2) by striking out ``Not later than 18 months after the 
    enactment of the Superfund Amendments and Reauthorization Act of 
    1986, the Administrator'' and inserting in lieu thereof the 
    following:
        ``(1) In general.--The Administrator'';
        (3) by moving the remainder of the text of paragraph (1), as 
    designated by paragraph (2) of this section (including 
    subparagraphs (A) and (B), as redesignated by paragraph (1) of this 
    section) 2 ems to the right; and
        (4) by striking out ``Such criteria'' and all that follows 
    through the end of the subsection and inserting in lieu thereof the 
    following:
        ``(2) Application of criteria.--
            ``(A) In general.--Subject to subparagraph (B), the 
        criteria referred to in paragraph (1) shall be applied in the 
        same manner as the criteria are applied to facilities that are 
        owned or operated by persons other than the United States.
            ``(B) Response under other law.--It shall be an appropriate 
        factor to be taken into consideration for the purposes of 
        section 105(a)(8)(A) that the head of the department, agency, 
        or instrumentality that owns or operates a facility has 
        arranged with the Administrator or appropriate State 
        authorities to respond appropriately, under authority of a law 
        other than this Act, to a release or threatened release of a 
        hazardous substance.
        ``(3) Completion.--Evaluation and listing under this subsection 
    shall be completed in accordance with a reasonable schedule 
    established by the Administrator.''.
    SEC. 331. CLARIFICATION OF MEANING OF UNCONTAMINATED PROPERTY FOR 
      PURPOSES OF TRANSFER BY THE UNITED STATES.
    Section 120(h)(4)(A) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)(4)(A)) is 
amended in the first sentence by striking out ``stored for one year or 
more, known to have been released,'' and inserting in lieu thereof 
``known to have been released''.

SEC. 332. CONSERVATION AND CULTURAL ACTIVITIES.

    (a) In General.--(1) Chapter 159 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 2694. Conservation and cultural activities

    ``(a) Establishment.--The Secretary of Defense may establish and 
carry out a program to conduct and manage in a coordinated manner the 
conservation and cultural activities described in subsection (b).
    ``(b) Activities.--(1) A conservation or cultural activity eligible 
for the program that the Secretary establishes under subsection (a) is 
any activity--
        ``(A) that has regional or Department of Defense-wide 
    significance and that involves more than one military department;
        ``(B) that is necessary to meet legal requirements or to 
    support military operations;
        ``(C) that can be more effectively managed at the Department of 
    Defense level; and
        ``(D) for which no executive ageny has been designated 
    responsible by the Secretary.
    ``(2) Such activities include the following:
        ``(A) The development of ecosystem-wide land management plans.
        ``(B) The conduct of wildlife studies to ensure the safety of 
    military operations.
        ``(C) The identification and return of Native American human 
    remains and cultural items in the possession or control of the 
    Department of Defense, or discovered on land under the jurisdiction 
    of the Department, to the appropriate Native American tribes.
        ``(D) The control of invasive species that may hinder military 
    activities or degrade military training ranges.
        ``(E) The establishment of a regional curation system for 
    artifacts found on military installations.
    ``(c) Cooperative Agreements.--The Secretary may negotiate and 
enter into cooperative agreements with public and private agencies, 
organizations, institutions, individuals, or other entities to carry 
out the program established under subsection (a).
    ``(d) Effect on Other Laws.--Nothing in this section shall be 
construed or interpreted as preempting any otherwise applicable 
Federal, State, or local law or regulation relating to the management 
of natural and cultural resources on military installations.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2694. Conservation and cultural activities.''.

    (b) Effective Date.--Section 2694 of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 1996.
    SEC. 333. NAVY PROGRAM TO MONITOR ECOLOGICAL EFFECTS OF ORGANOTIN.
    (a) Monitoring Requirement.--The Secretary of the Navy shall, in 
consultation with the Administrator of the Environmental Protection 
Agency, develop and implement a program to monitor the concentrations 
of organotin in the water column, sediments, and aquatic organisms of 
representative estuaries and near-coastal waters in the United States, 
as described in section 7(a) of the Organotin Antifouling Paint Control 
Act of 1988 (33 U.S.C. 2406(a)). The program shall be designed to 
produce high-quality data to enable the Environmental Protection Agency 
to develop water quality criteria concerning organotin compounds.
    (b) Funding.--The Administrator of the Environmental Protection 
Agency shall provide, in advance, such sums as are necessary to the 
Secretary of the Navy for the costs of developing and implementing the 
program under subsection (a).
    (c) Written Agreement.--The Secretary of the Navy and the 
Administrator of the Environmental Protection Agency shall enter into a 
written agreement setting forth the actions that the Secretary plans to 
take under subsection (a) and the funding that the Administrator agrees 
to provide under subsection (b). If the Secretary determines that the 
Administrator will not enter into such an agreement, the Secretary 
shall notify the Committee on National Security of the House of 
Representatives and the Committee on Armed Services of the Senate not 
later than 30 days after such determination.
    (d) Nonimpairment of Mission.--Compliance with subsection (a) shall 
be conducted in such a manner so as not to impair the ability of the 
Department of the Navy to meet its operational requirements.
    (e) Report.--Not later than June 1, 1997, the Secretary of the Navy 
shall submit to Congress a report containing the following:
        (1) A description of the monitoring program developed pursuant 
    to subsection (a).
        (2) An analysis of the results of the monitoring program as of 
    the date of the submission of the report.
        (3) Information about the progress of Navy programs, referred 
    to in section 7(c) of the Organotin Antifouling Paint Control Act 
    of 1988 (33 U.S.C. 2406(c)), for evaluating the laboratory toxicity 
    and environmental risks associated with the use of antifouling 
    paints containing organotin.
        (4) An assessment, developed in consultation with the 
    Administrator of the Environmental Protection Agency, of the 
    effectiveness of existing laws and rules concerning organotin 
    compounds in ensuring protection of human health and the 
    environment.
    (f) Sense of Congress.--(1) It is the sense of Congress that the 
Administrator of the Environmental Protection Agency, in consultation 
with the Secretary of the Navy, should develop, for purposes of the 
national pollutant discharge elimination system, a model permit for the 
discharge of organotin compounds at shipbuilding and ship repair 
facilities.
    (2) For purposes of this subsection, the term ``organotin'' has the 
meaning provided in section 3 of the Organotin Antifouling Paint 
Control Act of 1988 (33 U.S.C. 2402).
    (g) Termination.--The program required by subsection (a) shall 
terminate five years after the date of the enactment of this Act.
    SEC. 334. AUTHORITY TO TRANSFER CONTAMINATED FEDERAL PROPERTY 
      BEFORE COMPLETION OF REQUIRED RESPONSE ACTIONS.
    (a) In General.--Section 120(h)(3) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9620(h)(3)) is amended--
        (1) by redesignating subparagraph (A) as clause (i) and clauses 
    (i), (ii), and (iii) of that subparagraph as subclauses (I), (II), 
    and (III), respectively;
        (2) by striking out ``After the last day'' and inserting in 
    lieu thereof the following:
            ``(A) In general.--After the last day'';
        (3) by redesignating subparagraph (B) as clause (ii) and 
    clauses (i) and (ii) of that subparagraph as subclauses (I) and 
    (II), respectively;
        (4) by redesignating subparagraph (C) as clause (iii);
        (5) by moving the remainder of the text of subparagraph (A), as 
    designated by paragraph (2) of this subsection (including the 
    clauses and subclauses redesignatedby paragraphs (1), (3), and (4) 
of this subsection) 2 ems to the right;
        (6) by striking ``For purposes of subparagraph (B)(i)'' and 
    inserting the following:
            ``(B) Covenant requirements.--For purposes of subparagraphs 
        (A)(ii)(I) and (C)(iii)'';
        (7) in subparagraph (B), as designated by paragraph (5), by 
    striking ``subparagraph (B)'' each place it appears and inserting 
    ``subparagraph (A)(ii)''; and
        (8) by adding at the end the following:
            ``(C) Deferral.--
                ``(i) In general.--The Administrator, with the 
            concurrence of the Governor of the State in which the 
            facility is located (in the case of real property at a 
            Federal facility that is listed on the National Priorities 
            List), or the Governor of the State in which the facility 
            is located (in the case of real property at a Federal 
            facility not listed on the National Priorities List) may 
            defer the requirement of subparagraph (A)(ii)(I) with 
            respect to the property if the Administrator or the 
            Governor, as the case may be, determines that the property 
            is suitable for transfer, based on a finding that--

                    ``(I) the property is suitable for transfer for the 
                use intended by the transferee, and the intended use is 
                consistent with protection of human health and the 
                environment;
                    ``(II) the deed or other agreement proposed to 
                govern the transfer between the United States and the 
                transferee of the property contains the assurances set 
                forth in clause (ii);
                    ``(III) the Federal agency requesting deferral has 
                provided notice, by publication in a newspaper of 
                general circulation in the vicinity of the property, of 
                the proposed transfer and of the opportunity for the 
                public to submit, within a period of not less than 30 
                days after the date of the notice, written comments on 
                the suitability of the property for transfer; and
                    ``(IV) the deferral and the transfer of the 
                property will not substantially delay any necessary 
                response action at the property. 

                ``(ii) Response action assurances.--With regard to a 
            release or threatened release of a hazardous substance for 
            which a Federal agency is potentially responsible under 
            this section, the deed or other agreement proposed to 
            govern the transfer shall contain assurances that--

                    ``(I) provide for any necessary restrictions on the 
                use of the property to ensure the protection of human 
                health and the environment;
                    ``(II) provide that there will be restrictions on 
                use necessary to ensure that required remedial 
                investigations, response action, and oversight 
                activities will not be disrupted;
                    ``(III) provide that all necessary response action 
                will be taken and identify the schedules for 
                investigation and completion of all necessary response 
                action as approved by the appropriate regulatory 
                agency; and
                    ``(IV) provide that the Federal agency responsible 
                for the property subject to transfer will submit a 
                budget request to the Director of the Office of 
                Management and Budget that adequately addresses 
                schedules for investigation and completion of all 
                necessary response action, subject to congressional 
                authorizations and appropriations.

                ``(iii) Warranty.--When all response action necessary 
            to protect human health and the environment with respect to 
            any substance remaining on the property on the date of 
            transfer has been taken, the United States shall execute 
            and deliver to the transferee an appropriate document 
            containing a warranty that all such response action has 
            been taken, and the making of the warranty shall be 
            considered to satisfy the requirement of subparagraph 
            (A)(ii)(I).
                ``(iv) Federal responsibility.--A deferral under this 
            subparagraph shall not increase, diminish, or affect in any 
            manner any rights or obligations of a Federal agency 
            (including any rights or obligations under sections 106, 
            107, and 120 existing prior to transfer) with respect to a 
            property transferred under this subparagraph.''.
    (b) Continued Application of State Law.--The first sentence of 
section 120(a)(4) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(a)(4)) is 
amended by inserting ``or facilities that are the subject of a deferral 
under subsection (h)(3)(C)'' after ``United States''.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

    SEC. 341. CONTRACTS WITH OTHER AGENCIES TO PROVIDE OR OBTAIN GOODS 
      AND SERVICES TO PROMOTE EFFICIENT OPERATION AND MANAGEMENT OF 
      EXCHANGES AND MORALE, WELFARE, AND RECREATION ACTIVITIES.
    (a) Contracts To Promote Efficient Operation and Management.--(1) 
Chapter 147 of title 10, United States Code, is amended by inserting 
after section 2482 the following new section:
``Sec. 2482a. Nonappropriated fund instrumentalities: contracts with 
      other agencies and instrumentalities to provide and obtain goods 
      and services
    ``An agency or instrumentality of the Department of Defense that 
supports the operation of the exchange system, or the operation of a 
morale, welfare, and recreation system, of the Department of Defense 
may enter into a contract or otheragreement with another element of the 
Department of Defense or with another Federal department, agency, or 
instrumentality to provide or obtain goods and services beneficial to 
the efficient management and operation of the exchange system or that 
morale, welfare, and recreation system.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2482 the 
following new item:

``2482a. Nonappropriated fund instrumentalities: contracts with other 
agencies and instrumentalities to provide and obtain goods and 
services.''.

    (b) Conforming Amendment Regarding Commissary System.--Section 
2482(b)(1) of such title is amended by striking out ``another 
department'' and all that follows through ``provide services'' and 
inserting in lieu thereof ``another element of the Department of 
Defense or with another Federal department, agency, or instrumentality 
to provide or obtain services''.
    SEC. 342. NONCOMPETITIVE PROCUREMENT OF BRAND-NAME COMMERCIAL ITEMS 
      FOR RESALE IN COMMISSARY STORES.
    (a) Clarification of Exception to Competitive Procurement.--Section 
2486 of title 10, United States Code, is amended by adding at the end 
the following new subsection:
    ``(e) The Secretary of Defense may not use the exception provided 
in section 2304(c)(5) of this title regarding the procurement of a 
brand-name commercial item for resale in commissary stores unless the 
commercial item is regularly sold outside of commissary stores under 
the same brand name as the name by which the commercial item will be 
sold in commissary stores.''.
    (b) Effect on Existing Contracts or Other Agreements.--Section 
2486(e) of title 10, United States Code, as added by subsection (a), 
shall not affect the terms, conditions, or duration of any contract or 
other agreement entered into by the Secretary of Defense before the 
date of the enactment of this Act for the procurement of commercial 
items for resale in commissary stores.
    SEC. 343. PROHIBITION OF SALE OR RENTAL OF SEXUALLY EXPLICIT 
      MATERIAL.
    (a) In General.--(1) Chapter 147 of title 10, United States Code, 
is amended by inserting after section 2489 the following new section:
``Sec. 2489a. Sale or rental of sexually explicit material pro- hibited
    ``(a) Prohibition of Sale or Rental.--The Secretary of Defense may 
not permit the sale or rental of sexually explicit material on property 
under the jurisdiction of the Department of Defense.
    ``(b) Prohibition of Officially Provided Sexually Explicit 
Material.--A member of the armed forces or a civilian officer or 
employee of the Department of Defense acting in an official capacity 
may not provide for sale, remuneration, or rental sexually explicit 
material to another person.
    ``(c) Regulations.--The Secretary of Defense shall prescribe 
regulations to implement this section.
    ``(d) Definitions.--In this section:
        ``(1) The term `sexually explicit material' means an audio 
    recording, a film or video recording, or a periodical with visual 
    depictions, produced in any medium, the dominant theme of which 
    depicts or describes nudity, including sexual or excretory 
    activities or organs, in a lascivious way.
        ``(2) The term `property under the jurisdiction of the 
    Department of Defense' includes commissaries, all facilities 
    operated by the Army and Air Force Exchange Service, the Navy 
    Exchange Service Command, the Navy Resale and Services Support 
    Office, Marine Corps exchanges, and ships' stores.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2489 the 
following new item:

``2489a. Sale or rental of sexually explicit material prohibited.''.

    (b) Effective Date.--Subsection (a) of section 2489a of title 10, 
United States Code, as added by subsection (a) of this section, shall 
take effect 90 days after the date of the enactment of this Act.

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

    SEC. 351. EXTENSION OF REQUIREMENT FOR COMPETITIVE PROCUREMENT OF 
      PRINTING AND DUPLICATION SERVICES.
    (a) Extension.--Section 351(a) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
266) is amended by striking out ``fiscal year 1996'' and inserting in 
lieu thereof ``fiscal years 1996 and 1997''.
    (b) Reporting Requirements.--Such section is further amended by 
adding at the end the following new subsection:
    ``(c) Reporting Requirements.--(1) Not later than 90 days after the 
end of each fiscal year in which the requirement of subsection (a) 
applies, the Secretary of Defense shall submit to Congress a report--
        ``(A) describing the extent of the compliance of the Secretary 
    with the requirement during that fiscal year;
        ``(B) specifying the total volume of printing and duplication 
    services procured by the Department of Defense during that fiscal 
    year--
            ``(i) from sources within the Department of Defense;
            ``(ii) from private-sector sources; and
            ``(iii) from other sources in the Federal Govern- ment; and
        ``(C) specifying the total volume of printed and duplicated 
    material during that fiscal year covered by the exception in 
    subsection (b).
    ``(2) The report required for fiscal year 1996 shall also include 
the plans of the Secretary for further implementation of the 
requirement of subsection (a) during fiscal year 1997.''.
    SEC. 352. REPORTING REQUIREMENTS UNDER DEMONSTRATION PROJECT FOR 
      PURCHASE OF FIRE, SECURITY, POLICE, PUBLIC WORKS, AND UTILITY 
      SERVICES FROM LOCAL GOVERNMENT AGENCIES.
    Section 816(b) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2820) is amended by striking 
out ``, 1996'' and inserting in lieu thereof ``of each of the years 
1997 and 1998''.

                       Subtitle F--Other Matters

    SEC. 361. AUTHORITY FOR USE OF APPROPRIATED FUNDS FOR RECRUITING 
      FUNCTIONS.
    (a) Authority.--Chapter 31 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 520c. Recruiting functions: use of funds

    ``(a) Provision of Meals and Refreshments.--Under regulations 
prescribed by the Secretary concerned, funds appropriated to the 
Department of Defense for recruitment of military personnel may be 
expended for small meals and refreshments during recruiting functions 
for the following persons:
        ``(1) Persons who have enlisted under the Delayed Entry Program 
    authorized by section 513 of this title.
        ``(2) Persons who are objects of armed forces recruiting 
    efforts.
        ``(3) Persons whose assistance in recruiting efforts of the 
    military departments is determined to be influential by the 
    Secretary concerned.
        ``(4) Members of the armed forces and Federal employees when 
    attending recruiting events in accordance with a requirement to do 
    so.
        ``(5) Other persons whose presence at recruiting efforts will 
    contribute to recruiting efforts.
    ``(b) Annual Report.--Not later than February 1 of each of the 
years 1998 through 2002, the Secretary of Defense shall submit to 
Congress a report on the extent to which the authority under subsection 
(a) was exercised during the fiscal year ending in the preceding year.
    ``(c) Termination of Authority.--The authority in subsection (a) 
may not be exercised after September 30, 2001.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``520c. Recruiting functions: use of funds.''.

    SEC. 362. TRAINING OF MEMBERS OF THE UNIFORMED SERVICES AT NON-
      GOVERNMENT FACILITIES.
    (a) Authority to Enter Into Agreements for Training at Non-
Government Facilities.--(1) Chapter 101 of title 10, United States 
Code, is amended by adding at the end the following new section:

``Sec. 2013. Training at non-Government facilities

    ``(a) Authority To Enter Into Agreements.--(1) The Secretary 
concerned, without regard to section 3709 of the Revised Statutes (41 
U.S.C. 5), may make agreements or other arrangements for the training 
of members of the uniformed services under the jurisdiction of that 
Secretary by, in, or through non-Government facilities.
    ``(2) In this section, the term `non-Government facility' means any 
of the following:
        ``(A) The government of a State or of a territory or possession 
    of the United States, including the Commonwealth of Puerto Rico, an 
    interstate governmental organization, and a unit, subdivision, or 
    instrumentality of any of the foregoing.
        ``(B) A foreign government or international organization, or 
    instrumentality of either, which is designated by the President as 
    eligible to provide training under this section.
        ``(C) A medical, scientific, technical, educational, research, 
    or professional institution, foundation, or organization.
        ``(D) A business, commercial, or industrial firm, corporation, 
    partnership, proprietorship, or other organization.
        ``(E) Individuals other than civilian or military personnel of 
    the Government.
        ``(F) The services and property of any of the foregoing 
    providing the training.
    ``(b) Expenses.--The Secretary concerned, from appropriations or 
other funds available to the Secretary, may--
        ``(1) pay all or a part of the pay of a member of a uniformed 
    service who is selected and assigned for training under this 
    section, for the period of training; and
        ``(2) pay, or reimburse the member of a uniformed service for, 
    all or a part of the necessary expenses of the training (without 
    regard to subsections (a) and (b) of section 3324 of title 31), 
    including among those expenses the necessary costs of the 
    following:
            ``(A) Travel and per diem instead of subsistence under 
        sections 404 and 405 of title 37 and the Joint Travel 
        Regulations for the Uniformed Services.
            ``(B) Transportation of immediate family, household goods 
        and personal effects, packing, crating, temporarily storing, 
        draying, and unpacking under sections 406 and 409 of title 37 
        and the Joint Travel Regulations for the Uniformed Services 
        when the estimated costs of transportation and related services 
        are less than the estimated aggregate per diem payments for the 
        period of training.
            ``(C) Tuition and matriculation fees.
            ``(D) Library and laboratory services.
            ``(E) Purchase or rental of books, materials, and supplies.
            ``(F) Other services or facilities directly related to the 
        training of the member.
    ``(c) Certain Expenses Excluded.--The expenses of training do not 
include membership fees except to the extent that the fee is a 
necessary cost directly related to the training itself or that payment 
of the fee is a condition precedent to undergoing the training.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2013. Training at non-Government facilities.''.

  (b) Effective Date.--Section 2013 of title 10, United States Code, as 
added by subsection (a), shall take effect on October 1, 1996.
    SEC. 363. REQUIREMENT FOR PREPARATION OF PLAN FOR IMPROVED 
      OPERATION OF WORKING-CAPITAL FUNDS AND EFFECT OF FAILURE TO 
      PRODUCE AN APPROVED PLAN.
    (a) Plan for Improved Operation of Working-Capital Funds.--Not 
later than September 30, 1997, the Secretary of Defense shall submit to 
Congress a plan to improve the management and performance of the 
industrial, commercial, and support type activities of the military 
departments or the Defense Agencies that are currently managed through 
the Defense Business Operations Fund.
    (b) Elements of Plan.--The plan required by subsection (a) shall 
address the following issues:
        (1) The ability of each military department or Defense Agency 
    to set working capital requirements and set charges at its own 
    industrial and supply activities.
        (2) The desirability of separate business accounts for the 
    management of both industrial and supply activities for each 
    military department or Defense Agency.
        (3) Liability for operation losses at industrial and supply 
    activities.
        (4) Reimbursement to the Department of Defense by each military 
    department or Defense Agency of its fair share of the costs of 
    legitimate common business support services (such as accounting and 
    financial services and central logistics services) provided by the 
    Department of Defense.
        (5) The role of the Department of Defense in setting charges or 
    imposing surcharges for activities managed by the business accounts 
    of a military department or Defense Agency (except for the common 
    business support cost described in paragraph (4)), and what such 
    charges should properly reflect.
        (6) The appropriate use of operating profits arising from the 
    operations of the industrial and supply activities of a military 
    department or Defense Agency.
        (7) The ability of a military department or Defense Agency to 
    purchase industrial and supply services from, and provide such 
    services to, other military departments or Defense Agencies.
        (8) Standardization of financial management and accounting 
    practices employed by the business accounts of a military 
    department or Defense Agency.
        (9) Reporting requirements related to actual and projected 
    performance of business management account activities of a military 
    department or Defense Agency.
    (c) Effect of Failure to Submit or Approve of Plan.--(1) Unless, 
before October 1, 1999, the Secretary of Defense submits the plan 
required by subsection (a) and Congress enacts a provision of law 
described in paragraph (2) that approves of the plan as submitted or in 
an amended form, then section 2216a of title 10, United States Code, 
regarding the Defense Business Operations Fund (as redesignated by 
section 1074(a)(10) of this Act), shall be repealed effective as of 
that date.
    (2) The provision of law referred to in paragraph (1) is a 
provision of law that--
        (A) is enacted after the submission of the plan required by 
    subsection (a);
        (B) specifically refers to the plan and this section; and
        (C) specifically states that the plan required by subsection 
    (a) is approved as submitted or with such amendments as may be 
    contained in such law.
    (d) Basis for Charges for Goods And Services; Comptroller General 
Review.--(1) In the development of the proposed budget for the Defense 
Business Operations Fund for a fiscal year, the Secretary of Defense 
shall ensure that accurate and realistic pricing and quantity estimates 
are used regarding the goods and services to be provided by working-
capital funds and industrial, commercial, and support type activities 
managed through the Fund.
    (2) The Secretary of Defense shall make available to the 
Comptroller General information used to establish the charges for goods 
and services to be provided by working-capital funds and industrial, 
commercial, and support type activities managed through the Fund. The 
Comptroller General shall conduct an annual review of the adequacy of 
the basis for the charges. Not later than 30 days after the date on 
which the Secretary submits the annual report and proposed budget for 
the Fund under subsection (h) of section 2216a of title 10, United 
States Code, as redesignated by section 1074(a)(10) of this Act, the 
Comptroller General shall submit to Congress a report containing the 
results of the review.
    SEC. 364. INCREASE IN CAPITAL ASSET THRESHOLD UNDER DEFENSE 
      BUSINESS OPERATIONS FUND.
    Section 2216a of title 10, United States Code, as redesignated by 
section 1074(a)(10) of this Act, is amended in subsection (i)(1) by 
striking out ``$50,000'' and inserting in lieu thereof ``$100,000''.

SEC. 365. EXPANSION OF AUTHORITY TO DONATE UNUSABLE FOOD.

    (a) Authority for Donations From Defense Agencies.--Section 2485 of 
title 10, United States Code, is amended by striking out ``Secretary of 
a military department'' in subsections (a) and (b) and inserting in 
lieu thereof ``Secretary of Defense''.
    (b) Expansion of Eligible Recipients.--Such section is further 
amended--
        (1) in subsection (a), by striking out ``authorized charitable 
    nonprofit food banks'' and inserting in lieu thereof ``entities 
    specified under subsection (d)''; and
        (2) in subsection (d), by striking out ``may only be made'' and 
    all that follows and inserting in lieu thereof thefollowing: ``may 
only be made to an entity that is one of the following:
        ``(1) A charitable nonprofit food bank that is designated by 
    the Secretary of Defense or the Secretary of Health and Human 
    Services as authorized to receive such donations.
        ``(2) A State or local agency that is designated by the 
    Secretary of Defense or the Secretary of Health and Human Services 
    as authorized to receive such donations.
        ``(3) A chapter or other local unit of a recognized national 
    veterans organization that provides services to persons without 
    adequate shelter and is designated by the Secretary of Veterans 
    Affairs as authorized to receive such donations.
        ``(4) A not-for-profit organization that provides care for 
    homeless veterans and is designated by the Secretary of Veterans 
    Affairs as authorized to receive such donations.''.
    (c) Clarification of Food That May Be Donated.--Subsection (b) of 
such section is further amended by inserting ``rations known as 
humanitarian daily rations (HDRs),'' after ``(MREs),''.
    SEC. 366. ASSISTANCE TO COMMITTEES INVOLVED IN INAUGURATION OF THE 
      PRESIDENT.
    (a) In General.--Section 2543 of title 10, United States Code, is 
amended to read as follows:
``Sec. 2543. Equipment and services: Presidential inaugural ceremonies
    ``(a) Assistance Authorized.--The Secretary of Defense may, with 
respect to the ceremonies relating to the inaugu- ration of a 
President, provide the assistance referred to in subsection (b) to--
        ``(1) the Presidential Inaugural Committee; and
        ``(2) the congressional Joint Inaugural Committee.
    ``(b) Assistance.--Assistance that may be provided under subsection 
(a) is the following:
        ``(1) Planning and carrying out activities relating to security 
    and safety.
        ``(2) Planning and carrying out ceremonial activities.
        ``(3) Loan of property.
        ``(4) Any other assistance that the Secretary considers 
    appropriate.
    ``(c) Reimbursement.--(1) The Presidential Inaugural Committee 
shall reimburse the Secretary for any costs incurred in connection with 
the provision to the committee of assistance referred to in subsection 
(b)(4).
    ``(2) Costs reimbursed under paragraph (1) shall be credited to the 
appropriations from which the costs were paid. The amount credited to 
an appropriation shall be proportionate to the amount of the costs 
charged to that appropriation.
    ``(d) Loaned Property.--With respect to property loaned for a 
presidential inauguration under subsection (b)(3), the Presidential 
Inaugural Committee shall--
        ``(1) return that property within nine days after the date of 
    the ceremony inaugurating the President;
        ``(2) give good and sufficient bond for the return in good 
    order and condition of that property;
        ``(3) indemnify the United States for any loss of, or damage 
    to, that property; and
        ``(4) defray any expense incurred for the delivery, return, 
    rehabilitation, replacement, or operation of that property.
    ``(e) Definitions.--In this section:
        ``(1) The term `Presidential Inaugural Committee' means the 
    committee referred to in subsection (b)(2) of the first section of 
    the Presidential Inaugural Ceremonies Act (36 U.S.C. 721) that is 
    appointed with respect to the inauguration of a President-elect and 
    Vice President-elect.
        ``(2) The term `congressional Joint Inaugural Committee' means 
    the joint committee of the Senate and House of Representatives 
    referred to in the proviso in section 9 of the Presidential 
    Inaugural Ceremonies Act (36 U.S.C. 729) that is appointed with 
    respect to the inauguration of a President-elect and Vice 
    President-elect.''.
    (b) Clerical Amendment.--The item relating to section 2543 in the 
table of sections at the beginning of chapter 152 of such title is 
amended to read as follows:

``2543. Equipment and services: Presidential inaugural ceremonies.''.

    SEC. 367. DEPARTMENT OF DEFENSE SUPPORT FOR SPORTING EVENTS.
    (a) Authority To Provide Support.--Subchapter II of chapter 152 of 
title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 2554. Provision of support for certain sporting events

    ``(a) Security and Safety Assistance.--At the request of a Federal, 
State, or local government agency responsible for providing law 
enforcement services, security services, or safety services, the 
Secretary of Defense may authorize the commander of a military 
installation or other facility of the Department of Defense or the 
commander of a specified or unified combatant command to provide 
assistance for the World Cup Soccer Games, the Goodwill Games, the 
Olympics, and any other civilian sporting event in support of essential 
security and safety at such event, but only if the Attorney General 
certifies that such assistance is necessary to meet essential security 
and safety needs.
    ``(b) Other Assistance.--The Secretary of Defense may authorize a 
commander referred to in subsection (a) to provide assistance for a 
sporting event referred to in that subsection in support of other needs 
relating to such event, but only--
        ``(1) to the extent that such needs cannot reasonably be met by 
    a source other than the Department;
        ``(2) to the extent that the provision of such assistance does 
    not adversely affect the military preparedness of the armed forces; 
    and
        ``(3) if the organization requesting such assistance agrees to 
    reimburse the Department for amounts expended by the Department in 
    providing the assistance in accordance with the provisions of 
    section 377 of this title and other applicable provisions of law.
    ``(c) Inapplicability to Certain Events.--Subsections (a) and (b) 
do not apply to the following sporting events:
        ``(1) Sporting events for which funds have been appropriated 
    before the date of the enactment of this Act.
        ``(2) The Special Olympics.
        ``(3) The Paralympics.
    ``(d) Terms and Conditions.--The Secretary of Defense may require 
such terms and conditions in connection with the provision of 
assistance under this section as the Secretary considers necessary and 
appropriate to protect the interests of the United States.
    ``(e) Report on Assistance.--Not later than January 30 of each year 
following a year in which the Secretary of Defense provides assistance 
under this section, the Secretary shall submit to Congress a report on 
the assistance provided. The report shall set forth--
        ``(1) a description of the assistance provided;
        ``(2) the amount expended by the Department in providing the 
    assistance;
        ``(3) if the assistance was provided under subsection (a), the 
    certification of the Attorney General with respect to the 
    assistance under that subsection; and
        ``(4) if the assistance was provided under subsection (b)--
            ``(A) an explanation why the assistance could not 
        reasonably be met by a source other than the Department; and
            ``(B) the amount the Department was reimbursed under that 
        subsection.
    ``(f) Relationship to Other Laws.--Assistance provided under this 
section shall be subject to the provisions of sections 375 and 376 of 
this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``2554. Provision of support for certain sporting events.''.

SEC. 368. STORAGE OF MOTOR VEHICLE IN LIEU OF TRANSPORTATION.

    (a) Storage Authorized.--(1) Section 2634 of title 10, United 
States Code, is amended--
        (A) by redesignating subsection (b) as subsection (g);
        (B) by transferring subsection (g), as so redesignated, to the 
    end of such section; and
        (C) by inserting after subsection (a) the following new 
    subsection:
    ``(b)(1) In lieu of transportation authorized by this section, if a 
member is ordered to make a change of permanent station to a foreign 
country and the laws, regulations, or other restrictions imposed by the 
foreign country or the United States preclude entry of a motor vehicle 
described in subsection (a) into that country, or would require 
extensive modification of the vehicle as a condition to entry, the 
member may elect to have the vehicle stored at the expense of the 
United States at a location approved by the Secretary concerned.
    ``(2) If a member is transferred or assigned in connection with a 
contingency operation to duty at a location other than the permanent 
station of the member for a period of more than 30 consecutive days, 
but the transfer or assignment is not considered a change of permanent 
station, the member may elect to have a motor vehicle described in 
subsection (a) stored at the expense of the United States at a location 
approved by the Secretary concerned.
    ``(3) Authorized expenses under this subsection include costs 
associated with the delivery of the motor vehicle for storage and 
removal of the vehicle for delivery to a destination approved by the 
Secretary concerned.''.
    (2)(A) The heading of such section is amended to read as follows:
``Sec. 2634. Motor vehicles: transportation or storage for members on 
     change of permanent station or extended deployment''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 157 of title 10, United States Code, is 
amended to read as follows:

``2634. Motor vehicles: transportation or storage for members on change 
          of permanent station or extended deployment.''.

    (b) Conforming Amendment.--Subparagraph (B) of section 406(h)(1) of 
title 37, United States Code, is amended to read as follows:
        ``(B) in the case of a member described in paragraph (2)(A), 
    authorize the transportation of one motor vehicle, which is owned 
    or leased by the member (or a dependent of the member) and is for 
    the personal use of a dependent of the member, to that location by 
    means of transportation authorized under section 2634 of title 10 
    or authorize the storage of the motor vehicle pursuant to 
    subsection (b) of such section.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on April 1, 1997.
    SEC. 369. SECURITY PROTECTIONS AT DEPARTMENT OF DEFENSE FACILITIES 
      IN NATIONAL CAPITAL REGION.
    (a) Expansion of Authority.--Subsection (b) of section 2674 of 
title 10, United States Code, is amended by striking out ``at the 
Pentagon Reservation'' and inserting in lieu thereof ``in the National 
Capital Region''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 2674. Operation and control of Pentagon Reservation and defense 
     facilities in National Capital Region''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 159 of such title is amended to read as 
follows:

``2674. Operation and control of Pentagon Reservation and defense 
          facilities in National Capital Region.''.

SEC. 370. ADMINISTRATION OF MIDSHIPMEN'S STORE AND OTHER NAVAL ACADEMY 
              SUPPORT ACTIVITIES AS NONAPPROPRIATED FUND 
              INSTRUMENTALITY.

    (a) In General.--Section 6971 of title 10, United States Code, is 
amended to read as follows:
 ``Sec. 6971. Midshipmen's store, trade shops, dairy, and laundry: 
     nonappropriated fund instrumentality and accounts
    ``(a) Operation as Nonappropriated Fund Instrumentality.--The 
Superintendent of the Naval Academy shall operate the Naval Academy 
activities referred to in subsection (b) as a nonappropriated fund 
instrumentality under the jurisdiction of the Navy.
    ``(b) Covered Activities.--The nonappropriated fund instrumentality 
required under subsection (a) shall consist of the following Naval 
Academy activities:
        ``(1) The midshipmen's store.
        ``(2) The barber shop.
        ``(3) The cobbler shop.
        ``(4) The tailor shop.
        ``(5) The dairy.
        ``(6) The laundry.
    ``(c) Nonappropriated Fund Accounts.--The Superintendent of the 
Naval Academy shall administer a separate nonappropriated fund account 
for each of the Naval Academy activities included in the 
nonappropriated fund instrumentality required under subsection (a).
    ``(d) Crediting of Revenue.--The Superintendent shall credit all 
revenue received from a Naval Academy activity referred to in 
subsection (b) to the account administered with respect to that 
activity under subsection (c), and amounts so credited shall be 
available for operating expenses of that activity.
    ``(e) Regulations.--This section shall be carried out under 
regulations prescribed by the Secretary of the Navy.''.
    (b) Civil Service Employment Status of Employees of Covered 
Activities.--Section 2105(b) of title 5, United States Code, is 
amended--
        (1) by inserting ``who is'' after ``An individual''; and
        (2) by inserting ``and whose employment in such a position 
    began before October 1, 1996, and has been uninterrupted in such a 
    position since that date'' after ``Academy dairy,''.
    (c) Conforming Repeal.--Section 6970 of title 10, United States 
Code, is repealed.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 603 of title 10, United States Code, is amended by striking out 
the items relating to sections 6970 and 6971 and inserting in lieu 
thereof the following new item:

``6971. Midshipmen's store, trade shops, dairy, and laundry: 
          nonappropriated fund instrumentality and accounts.''.

    (e) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1996.
    SEC. 371. REIMBURSEMENT UNDER AGREEMENT FOR INSTRUCTION OF CIVILIAN 
      STUDENTS AT FOREIGN LANGUAGE INSTITUTE OF THE DEFENSE LANGUAGE 
      INSTITUTE.
    (a) Authority to Accept Reimbursement In Kind.--Section 559(a)(1) 
of the National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2776; 10 U.S.C. 4411 note) is amended--
        (1) by redesignating subsections (c), (d), and (e) as 
    subsections (d), (e), and (f), respectively; and
        (2) by inserting after subsection (b) the following new 
    subsection:
    ``(c) Reimbursement Options for Certain Instruction.--In the case 
of instruction provided to students described in subsection (a)(1), the 
Secretary may provide the instruction on a cost-reimbursable basis, a 
reimbursement-in-kind basis, or a combination of both options. 
Regardless of the reimbursement option, the value of the reimbursement 
received under this subsection may not be less than the amount charged 
for providing language instruction to Federal employees who are not 
Department of Defense employees. The Secretary may not delegate the 
authority to accept an offer for in-kind reimbursement below the level 
of the Assistant Secretary of the Army.''.
    (b) Conforming Amendments.--Such section is further amended--
        (1) in subsection (a)(1), by striking out ``cost-reimburs- 
    able,''; and
        (2) in subsection (d), as redesignated by subsection (a)(1) of 
    this section, by striking out ``subsection (a)'' the first place it 
    appears and inserting in lieu thereof ``subsection (a) or (c)''.
    SEC. 372. 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 
1997.--Of the amounts authorized to be appropriated in section 301(5)--
        (1) $30,000,000 shall be available for providing educational 
    agencies assistance (as defined in subsection (d)(1)) to local 
    educational agencies; and
        (2) $5,000,000 shall be available for making educational 
    agencies payments (as defined in subsection (d)(2)) to local 
    educational agencies.
    (b) Notification.--Not later than June 30, 1997, the Secretary of 
Defense shall--
        (1) notify each local educational agency that is eligible for 
    educational agencies assistance for fiscal year 1997 of that 
    agency's eligibility for such assistance and the amount of such 
    assistance for which that agency is eligible; and
        (2) notify each local educational agency that is eligible for 
    an educational agencies payment for fiscal year 1997 of that 
    agency's eligibility for such payment and the amount of the payment 
    for which that agency is eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under paragraphs (1) and (2) of 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 ``educational agencies payments'' means payments 
    authorized under section 386(d) of the National Defense 
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 
    U.S.C. 7703 note).
        (3) 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. 373. RENOVATION OF BUILDING FOR DEFENSE FINANCE AND ACCOUNTING 
      SERVICE CENTER, FORT BENJAMIN HARRISON, INDIANA.
    (a) Transfer Authority.--To pay the costs of planning, design, and 
renovation of Building One, Fort Benjamin Harrison, Indiana, for use as 
a Defense Finance and Accounting Service Center, the Secretary of 
Defense may transfer to the Administrator of General Services in the 
manner provided in subsection (b) funds available to the Department of 
Defense for the Defense Finance and Accounting Service for a fiscal 
year for operation and maintenance.
    (b) Authority Subject to Authorizations and Appropriations.--To the 
extent provided in appropriations Acts--
        (1) of funds described in subsection (a) and appropriated for 
    fiscal year 1997, $9,000,000 may be transferred under such 
    subsection; and
        (2) of funds described in subsection (a) and appropriated for 
    fiscal years 1998, 1999, 2000, and 2001, funds may be transferred 
    under such subsection in such amounts as are authorized to be 
    transferred in an Act enacted after the date of the enactment of 
    this Act.
    (c) Authority Subject To Agreement Between Department of Defense 
and General Services Administration.--The transfer authority provided 
in subsection (a) shall not take effect until the date on which the 
Secretary of Defense and the Administrator of General Services enter 
into an agreement that provides for the Department of Defense to 
receive a full reimbursement for the funds transferred under such 
subsection. Such reimbursement may include reimbursement in the form of 
reduced or static rental rates for Building One.

SEC. 374. FOOD DONATION PILOT PROGRAM AT SERVICE ACADEMIES.

    (a) Program Authorized.--The Secretaries of the military 
departments and the Secretary of Transportation may each carry out a 
food donation pilot program at the service academy under the 
jurisdiction of such Secretary.
    (b) Donations and Collections of Food and Grocery Products.--Under 
the pilot program, the Secretary concerned may donate to, and permit 
others to collect for, a nonprofit organization any food or grocery 
product that--
        (1) is--
            (A) an apparently wholesome food;
            (B) an apparently fit grocery product; or
            (C) a food or grocery product that is donated in accordance 
        with section 402(e) of the National and Community Service Act 
        of 1990 (42 U.S.C. 12672(e));
        (2) is owned by the United States;
        (3) is located at a service academy under the jurisdiction of 
    such Secretary; and
        (4) is excess to the requirements of the academy.
    (c) Program Commencement.--The Secretary concerned shall commence 
carrying out the pilot program, if at all, during fiscal year 1997.
    (d) Applicability of Good Samaritan Food Donation Act.--Section 402 
of the National and Community Service Act of 1990 (42 U.S.C. 12672) 
shall apply to donations and collections of food and grocery products 
under the pilot program without regard to section 403 of such Act (42 
U.S.C. 12673).
    (e) Reports.--(1) Each Secretary that carries out a pilot program 
at a service academy under this section shall submit to Congress an 
interim report and a final report on the pilot program.
    (2) The Secretary concerned shall submit the interim report not 
later than one year after the date on which the Secretary commences the 
pilot program at a service academy.
    (3) The Secretary concerned shall submit the final report not later 
than 90 days after the Secretary completes the pilot program at a 
service academy.
    (4) Each report shall include the following:
        (A) A description of the conduct of the pilot program.
        (B) A discussion of the experience under the pilot program.
        (C) An evaluation of the extent to which section 402 of the 
    National and Community Service Act of 1990 (42 U.S.C. 12672) has 
    been effective in protecting the United States and others from 
    liabilities associated with actions taken under the pilot program.
        (D) Any recommendations for legislation to facilitate donations 
    or collections of excess food and grocery products of the United 
    States or others for nonprofit organizations.
    (f) Definitions.--For purposes of this section:
        (1) The term ``service academy'' means each of the following:
            (A) The United States Military Academy.
            (B) The United States Naval Academy.
            (C) The United States Air Force Academy.
            (D) The United States Coast Guard Academy.
        (2) The term ``Secretary concerned'' means the following:
            (A) The Secretary of the Army, with respect to the United 
        States Military Academy.
            (B) The Secretary of the Navy, with respect to the United 
        States Naval Academy.
            (C) The Secretary of the Air Force, with respect to the 
        United States Air Force Academy.
            (D) The Secretary of Transportation, with respect to the 
        United States Coast Guard Academy.
        (3) The terms ``apparently fit grocery product'', ``apparently 
    wholesome food'', ``donate'', ``food'', and ``grocery product'' 
    have the meanings given those terms in section 402(b) of the 
    National and Community Service Act of 1990 (42 U.S.C. 12672(b)).
    SEC. 375. AUTHORITY OF AIR NATIONAL GUARD TO PROVIDE CERTAIN 
      SERVICES AT LINCOLN MUNICIPAL AIRPORT, LINCOLN, NEBRASKA.
    (a) Authority.--The Nebraska Air National Guard may provide fire 
protection services and rescue services relating to aircraft at Lincoln 
Municipal Airport, Lincoln, Nebraska, on behalf of the Lincoln 
Municipal Airport Authority, Lincoln, Nebraska.
    (b) Agreement.--The Nebraska Air National Guard may not provide 
services under subsection (a) until the Nebraska Air National Guard and 
the authority enter into an agreement under which the authority 
agrees--
        (1) to reimburse the Nebraska Air National Guard for the cost 
    of the services provided; and
        (2) to hold harmless and indemnify the United States, except in 
    cases of willful misconduct or gross negligence, from any claim for 
    damages or injury to any person or property arising out of the 
    provision of, or the failure to provide, such services.
    (c) Effect on Military Preparedness.--Services may only be provided 
under subsection (a) to the extent that the provision of such services 
does not adversely affect the military preparedness of the Armed 
Forces.
    SEC. 376. TECHNICAL AMENDMENT REGARDING IMPACT AID PROGRAM.
    Paragraph (3) of section 8003(a) of the Elementary and  Secondary 
Education Act of 1965 (20 U.S.C. 7703(a)) is amended by striking out 
``2,000 and such number equals or exceeds 15'' and inserting in lieu 
thereof ``1,000 or such number equals or exceeds 10''.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
contingencies.
Sec. 403. Authorized strengths for commissioned officers on active duty 
in grades of major, lieutenant colonel, and colonel and navy grades of 
lieutenant commander, commander, and captain.
Sec. 404. Extension of requirement for recommendations regarding 
appointments to joint 4-star officer positions.
Sec. 405. Increase in authorized number of general officers on active 
duty in the Marine Corps.

                       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.
Sec. 414. Assurance of continued assignment of military personnel to 
serve in Selective Service System.

               Subtitle C--Authorization of Appropriations

Sec. 421. 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, 1997, as follows:
        (1) The Army, 495,000.
        (2) The Navy, 407,318.
        (3) The Marine Corps, 174,000.
        (4) The Air Force, 381,100.

SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR REGIONAL 
              CONTINGENCIES.

    (a) Requirement To Budget for and Maintain Statutory End Strength 
Levels.--Section 691 of title 10, United States Code, is amended--
        (1) by redesignating subsections (d) and (e) as subsections (e) 
    and (f), respectively; and
        (2) by striking out subsection (c) and inserting in lieu 
    thereof the following:
    ``(c) The budget for the Department of Defense for any fiscal year 
as submitted to Congress shall include amounts for funding for each of 
the armed forces (other than the Coast Guard) at least in the amounts 
necessary to maintain the active duty end strengths prescribed in 
subsection (b), as in effect at the time that such budget is submitted.
    ``(d) No funds appropriated to the Department of Defense may be 
used to implement a reduction of the active duty end strength for any 
of the armed forces (other than the Coast Guard) for any fiscal year 
below the level specified in subsection (b) unless the reduction in end 
strength for that armed force for that fiscal year is specifically 
authorized by law.''.
    (b) Temporary Flexibility Relating to Permanent End Strength 
Levels.--Subsection (e) of such section, as redesignated by subsection 
(a)(1), is amended by striking out ``not more than 0.5 percent'' and 
inserting in lieu thereof ``not more than 1 percent''.
    SEC. 403. AUTHORIZED STRENGTHS FOR COMMISSIONED OFFICERS ON ACTIVE 
      DUTY IN GRADES OF MAJOR, LIEUTENANT COLONEL, AND COLONEL AND NAVY 
      GRADES OF LIEUTENANT COMMANDER, COMMANDER, AND CAPTAIN.
    (a) Revision in Army, Air Force, and Marine Corps Limitations.--The 
table in paragraph (1) of section 523(a) of title 10, United States 
Code, is amended to read as follows:
---------------------------------------------------------------------------
  

----------------------------------------------------------------------------------------------------------------
                                                                     Number of officers who may be serving on   
                                                                           active duty in the grade of:         
 ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
     categories specified in subsection (b)) on active duty:                        Lieutenant                  
                                                                       Major          Colonel         Colonel   
----------------------------------------------------------------------------------------------------------------
Army:                                                                                                           
  20,000........................................................           6,848           5,253        1,613   
  25,000........................................................           7,539           5,642        1,796   
  30,000........................................................           8,231           6,030        1,980   
  35,000........................................................           8,922           6,419        2,163   
  40,000........................................................           9,614           6,807        2,347   
  45,000........................................................          10,305           7,196        2,530   
  50,000........................................................          10,997           7,584        2,713   
  55,000........................................................          11,688           7,973        2,897   
  60,000........................................................          12,380           8,361        3,080   
  65,000........................................................          13,071           8,750        3,264   
  70,000........................................................          13,763           9,138        3,447   
  75,000........................................................          14,454           9,527        3,631   
  80,000........................................................          15,146           9,915        3,814   
  85,000........................................................          15,837          10,304        3,997   
  90,000........................................................          16,529          10,692        4,181   
  95,000........................................................          17,220          11,081        4,364   
  100,000.......................................................          17,912          11,469        4,548   
  110,000.......................................................          19,295          12,246        4,915   
  120,000.......................................................          20,678          13,023        5,281   
  130,000.......................................................          22,061          13,800        5,648   
  170,000.......................................................          27,593          16,908        7,116   
Air Force:                                                                                                      
  35,000........................................................           9,216           7,090        2,125   
  40,000........................................................          10,025           7,478        2,306   
  45,000........................................................          10,835           7,866        2,487   
  50,000........................................................          11,645           8,253        2,668   
  55,000........................................................          12,454           8,641        2,849   
  60,000........................................................          13,264           9,029        3,030   
  65,000........................................................          14,073           9,417        3,211   
  70,000........................................................          14,883           9,805        3,392   
  75,000........................................................          15,693          10,193        3,573   
  80,000........................................................          16,502          10,582        3,754   
  85,000........................................................          17,312          10,971        3,935   
  90,000........................................................          18,121          11,360        4,115   
  95,000........................................................          18,931          11,749        4,296   
  100,000.......................................................          19,741          12,138        4,477   
  105,000.......................................................          20,550          12,527        4,658   
  110,000.......................................................          21,360          12,915        4,838   
  115,000.......................................................          22,169          13,304        5,019   
  120,000.......................................................          22,979          13,692        5,200   
  125,000.......................................................          23,789          14,081        5,381   
Marine Corps:                                                                                                   
  10,000........................................................           2,525           1,480          571   
  12,500........................................................           2,900           1,600          592   
  15,000........................................................           3,275           1,720          613   
  17,500........................................................           3,650           1,840          633   
  20,000........................................................           4,025           1,960          654   
  22,500........................................................           4,400           2,080          675   
  25,000........................................................           4,775           2,200          695.''
----------------------------------------------------------------------------------------------------------------


    (b) Revision in Navy Limitations.--The table in paragraph (2) of 
such section is amended to read as follows:
---------------------------------------------------------------------------
  

----------------------------------------------------------------------------------------------------------------
                                                                     Number of officers who may be serving on   
                                                                             active duty in grade of:           
 ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
     categories specified in subsection (b)) on active duty:        Lieutenant                                  
                                                                     commander       Commander        Captain   
----------------------------------------------------------------------------------------------------------------
Navy:                                                                                                           
  30,000........................................................           7,331           5,018        2,116   
  33,000........................................................           7,799           5,239        2,223   
  36,000........................................................           8,267           5,460        2,330   
  39,000........................................................           8,735           5,681        2,437   
  42,000........................................................           9,203           5,902        2,544   
  45,000........................................................           9,671           6,123        2,651   
  48,000........................................................          10,139           6,343        2,758   
  51,000........................................................          10,606           6,561        2,864   
  54,000........................................................          11,074           6,782        2,971   
  57,000........................................................          11,541           7,002        3,078   
  60,000........................................................          12,009           7,222        3,185   
  63,000........................................................          12,476           7,441        3,292   
  66,000........................................................          12,944           7,661        3,398   
  70,000........................................................          13,567           7,954        3,541   
  90,000........................................................          16,683           9,419        4,254.''
----------------------------------------------------------------------------------------------------------------


    (c) Repeal of Temporary Authority for Variations in End 
Strengths.--The following provisions of law are repealed:
        (1) Section 402 of the National Defense Authorization Act for 
    Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1639; 10 U.S.C. 523 
    note).
        (2) Section 402 of the National Defense Authorization Act for 
    Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2743; 10 U.S.C. 523 
    note).
        (3) Section 402 of the National Defense Authorization Act for 
    Fiscal Year 1996 (Public Law 104-106; 110 Stat. 286; 10 U.S.C. 523 
    note).
    (d) Effective Date.--The amendments made by subsections (a), (b), 
and (c) shall take effect on September 1, 1997.

SEC. 404. EXTENSION OF REQUIREMENT FOR RECOMMENDATIONS REGARDING 
              APPOINTMENTS TO JOINT 4-STAR OFFICER POSITIONS.

    (a) Service Secretary Recommendation Required.--Section 604(c) of 
title 10, United States Code, is amended by striking out ``September 
30, 1997'' and inserting in lieu thereof ``September 30, 2000''.
    (b) Grade Relief When Recommendation Made.--Section 525(b)(5)(C) of 
such title is amended by striking out ``September 30, 1997'' and 
inserting in lieu thereof ``September 30, 2000''.
    SEC. 405. INCREASE IN AUTHORIZED NUMBER OF GENERAL OFFICERS ON 
      ACTIVE DUTY IN THE MARINE CORPS.
    Section 526(a)(4) of title 10, United States Code, is amended by 
striking out ``68'' and inserting in lieu thereof ``80''.

                       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, 1997, as follows:
        (1) The Army National Guard of the United States, 366,758.
        (2) The Army Reserve, 215,179.
        (3) The Naval Reserve, 96,304.
        (4) The Marine Corps Reserve, 42,000.
        (5) The Air National Guard of the United States, 109,178.
        (6) The Air Force Reserve, 73,311.
        (7) The Coast Guard Reserve, 8,000.
    (b) Waiver Authority.--The Secretary of Defense may vary the end 
strength authorized by subsection (a) by not more than 2 percent.
    (c) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component for a fiscal year 
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, 
1997, 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, 22,798.
        (2) The Army Reserve, 11,729.
        (3) The Naval Reserve, 16,603.
        (4) The Marine Corps Reserve, 2,559.
        (5) The Air National Guard of the United States, 10,403.
        (6) The Air Force Reserve, 655.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS.

    (a) Authorization for Fiscal Year 1997.--The minimum number of 
military technicians as of the last day of fiscal year 1997 for the 
reserve components of the Army and the Air Force (notwithstanding 
section 129 of title 10, United States Code) shall be the following:
        (1) For the Army Reserve, 6,799.
        (2) For the Army National Guard of the United States, 25,500.
        (3) For the Air Force Reserve, 9,802.
        (4) For the Air National Guard of the United States, 23,299.
    (b) Information To Be Provided With Future Authorization 
Requests.--Section 10216 of title 10, United States Code, is amended--
        (1) by redesignating subsection (b) as subsection (c); and
        (2) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) Information Required To Be Submitted With Annual End Strength 
Authorization Request.--(1) The Secretary of Defense shall include as 
part of the budget justification documents submitted to Congress with 
the budget of the Department of Defense for any fiscal year the 
following information with respect to the end strengths for military 
technicians requested in that budget pursuant to section 115(g) of this 
title, shown separately for each of the Army and Air Force reserve 
components:
        ``(A) The number of dual-status technicians in the high 
    priority units and organizations specified in subsection (a)(1).
        ``(B) The number of technicians other than dual-status 
    technicians in the high priority units and organizations specified 
    in subsection (a)(1).
        ``(C) The number of dual-status technicians in other than high 
    priority units and organizations specified in subsection (a)(1).
        ``(D) The number of technicians other than dual-status 
    technicians in other than high priority units and organizations 
    specified in subsection (a)(1).
    ``(2)(A) If the budget submitted to Congress for any fiscal year 
requests authorization for that fiscal year under section 115(g) of 
this title of a military technician end strength for a reserve 
component of the Army or Air Force in a number that constitutes a 
reduction from the end strength minimum established by law for that 
reserve component for the fiscal year during which the budget is 
submitted, the Secretary of Defense shall submit to the congressional 
defense committees with that budget a justification providing the basis 
for that requested reduction in technician end strength.
    ``(B) Any justification submitted under subparagraph (A) shall 
clearly delineate--
        ``(i) in the case of a reduction that includes a reduction in 
    technicians described in subparagraph (A) or (C) of paragraph (1), 
    the specific force structure reductions forming the basis for such 
    requested technician reduction (andthe numbers related to those 
force structure reductions); and
        ``(ii) in the case of a reduction that includes reductions in 
    technicians described in subparagraphs (B) or (D) of paragraph (1), 
    the specific force structure reductions, Department of Defense 
    civilian personnel reductions, or other reasons forming the basis 
    for such requested technician reduction (and the numbers related to 
    those reductions).''.
    (c) Technical Amendments.--Such section is further amended--
        (1) in subsection (a), by striking out ``section 115'' and 
    inserting in lieu thereof ``section 115(g)''; and
        (2) in subsection (c), as redesignated by subsection (b)(1), by 
    striking out ``after the date of the enactment of this section'' 
    both places it appears and inserting in lieu thereof ``after 
    February 10, 1996,''.
    SEC. 414. ASSURANCE OF CONTINUED ASSIGNMENT OF MILITARY PERSONNEL 
      TO SERVE IN SELECTIVE SERVICE SYSTEM.
    (a) Number of Military Personnel To Be Assigned.--Section 10 of the 
Military Selective Service Act (50 U.S.C. App. 460) is amended--
        (1) in subsection (b)(2), by inserting ``, subject to 
    subsection (e),'' after ``to employ such number of civilians, 
    and''; and
        (2) by inserting after subsection (d) the following new 
    subsection:
    ``(e) The total number of armed forces personnel assigned to the 
Selective Service System under subsection (b)(2) at any time may not be 
less than the number of such personnel determined by the Director of 
Selective Service to be necessary, but not to exceed 745 persons, 
except that the President may assign additional armed forces personnel 
to the Selective Service System during a time of war or a national 
emergency declared by Congress or the President.''.
    (b) Stylistic Amendments.--Subsection (b) of such section is 
amended--
        (1) by striking out ``authorized--'' in the matter preceding 
    paragraph (1) and inserting in lieu thereof ``authorized to 
    undertake the following:'';
        (2) by striking out ``to'' at the beginning of paragraphs (1) 
    through (7) and inserting in lieu thereof ``To'';
        (3) by striking out ``subject'' at the beginning of paragraphs 
    (8), (9), and (10) and inserting in lieu thereof ``Subject''; and
        (4) by striking out the semicolon at the end of paragraphs (1) 
    through (9) and inserting in lieu thereof a period.

              Subtitle C--Authorization of Appropriations

    SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.
    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 1997 a total of 
$70,056,130,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1997.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.
Sec. 502. Chief and assistant chief of Army Nurse Corps and Air Force 
Nurse Corps.
Sec. 503. Navy spot promotion authority for certain lieutenants with 
critical skills.
Sec. 504. Time for award of degrees by unaccredited educational 
institutions for graduates to be considered educationally qualified for 
appointment as Reserve officers in grade O-3.
Sec. 505. Exception to baccalaureate degree requirement for appointment 
in the Naval Reserve in grades above O-2.
Sec. 506. Chief warrant officer promotions.
Sec. 507. Service credit for senior ROTC cadets and midshipmen in 
simultaneous membership program.
Sec. 508. Continuation on active status for certain Reserve officers of 
the Air Force.
Sec. 509. Reports on response to recommendations concerning improvements 
to Department of Defense joint manpower process.
Sec. 510. Frequency of reports to Congress on joint officer management 
policies.

                  Subtitle B--Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 
years of service.
Sec. 512. Authority to extend period for entry on active duty under the 
delayed entry program.

                    Subtitle C--Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.
Sec. 522. Clarification of definition of active status.
Sec. 523. Limitation of requirement for physical examinations of members 
of National Guard called into Federal service.

                Subtitle D--Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training 
creditable toward reserve retirement.
Sec. 532. Retirement of reserve enlisted members who qualify for active 
duty retirement after administrative reduction in enlisted grade.
Sec. 533. Authority for a Reserve on active duty to waive retirement 
sanctuary.
Sec. 534. Eligibility of Reserves for disability retirement.

               Subtitle E--Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the 
Reserves.
Sec. 542. Eligibility for enrollment in Ready Reserve mobilization 
income insurance program.
Sec. 543. Reserve credit for participation in Health Professions 
Scholarship and Financial Assistance Program.
Sec. 544. Amendments to Reserve Officer Personnel Management Act 
provisions.
Sec. 545. Report on number of advisers in active component support of 
Reserves pilot program.
Sec. 546. Sense of Congress and report regarding reemployment rights for 
mobilized Reservists employed in foreign countries.
Sec. 547. Payment of premiums under Mobilization Income Insurance 
Program.

                 Subtitle F--Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers' Training 
Corps program.
Sec. 552. Prohibition on reorganization of Army ROTC cadet command or 
termination of senior ROTC units pending report on ROTC.
Sec. 553. Pilot program to test expansion of ROTC program to include 
graduate students.
Sec. 554. Demonstration project for instruction and support of Army ROTC 
units by members of the Army Reserve and National Guard.
Sec. 555. Extension of maximum age for appointment as a cadet or 
midshipman in the Senior Reserve Officers' Training Corps and the 
service academies.
Sec. 556. Expansion of eligibility for education benefits to include 
certain Reserve Officers' Training Corps (ROTC) participants.
Sec. 557. Comptroller General report on cost and policy implications of 
permitting up to five percent of service academy graduates to be 
assigned directly to Reserve duty upon graduation.

                   Subtitle G--Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African 
American soldiers who served during World War II.
Sec. 562. Waiver of time limitations for award of certain decorations to 
specified persons.
Sec. 563. Replacement of certain American Theater Campaign Ribbons.

                        Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.
Sec. 572. Disability coverage for members granted excess leave for 
educational or emergency purposes.
Sec. 573. Clarification of authority of a reserve judge advocate to act 
as a military notary public when not in a duty status.
Sec. 574. Panel on jurisdiction of courts-martial for the National Guard 
when not in Federal service.
Sec. 575. Authority to expand law enforcement placement program to 
include firefighters.
Sec. 576. Improvements to program to assist separated military and 
civilian personnel to obtain employment as teachers or teachers' aides.
Sec. 577. Retirement at grade to which selected for promotion when a 
physical disability is found at any physical examination.
Sec. 578. Revisions to missing persons authorities.

       Subtitle I--Commissioned Corps of the Public Health Service

Sec. 581. Applicability to Public Health Service of prohibition on 
crediting cadet or midshipmen service at the service academies.
Sec. 582. Exception to strength limitations for Public Health Service 
officers assigned to the Department of Defense.
Sec. 583. Authority to provide legal assistance to Public Health Service 
officers.

                  Subtitle A--Officer Personnel Policy

    SEC. 501. GRADE OF CHIEF OF NAVAL RESEARCH.
    (a) Rear Admiral (Upper Half).--Section 5022(a) of title 10, United 
States Code, is amended--
        (1) by inserting ``(1)'' after ``(a)''; and
        (2) by adding at the end the following:
    ``(2) Unless appointed to higher grade under another provision of 
law, an officer, while serving in the Office of Naval Research as Chief 
of Naval Research, has the rank of rear admiral (upper half).''.
    (b) Effective Date.--Paragraph (2) of section 5022(a) of title 10, 
United States Code, as added by subsection (a), shall take effect upon 
the occurrence of the first vacancy in the position of Chief of Naval 
Research after the date of the enactment of this Act.
    Sec. 502. CHIEF AND ASSISTANT CHIEF OF ARMY NURSE CORPS AND AIR 
      FORCE NURSE CORPS.
    (a) Army Nurse Corps.--(1) Subsection (b) of section 3069 of title 
10, United States Code, is amended--
        (A) in the first sentence, by striking out ``major'' and 
    inserting in lieu thereof ``lieutenant colonel'';
        (B) by inserting after the first sentence the following: ``An 
    appointee who holds a lower regular grade shall be appointed in the 
    regular grade of brigadier general.''; and
        (C) in the last sentence, by inserting ``to the same position'' 
    before the period at the end.
    (2) Subsection (c) of such section is amended by striking out 
``major'' in the first sentence and inserting in lieu thereof 
``lieutenant colonel''.
    (3) The heading of such section is amended to read as follows:
 ``Sec. 3069. Army Nurse Corps: composition; Chief and assistant chief; 
     appointment; grade
    (b) Air Force Nurse Corps.--Chapter 807 of such title is amended by 
inserting after section 8067 the following new section:
 ``Sec. 8069. Air Force nurses: Chief and assistant chief; appointment; 
     grade
    ``(a) Positions of Chief and Assistant Chief.--There are a Chief 
and assistant chief of the Air Force Nurse Corps.
    ``(b) Chief.--The Secretary of the Air Force shall appoint the 
Chief from the officers of the Regular Air Force designated as Air 
Force nurses whose regular grade is above lieutenant colonel and who 
are recommended by the Surgeon General. An appointee who holds a lower 
regular grade shall be appointed in the regular grade of brigadier 
general. The Chief serves during the pleasure of the Secretary, but not 
for more than three years, and may not be reappointed to the same 
position.
    ``(c) Assistant Chief.--The Surgeon General shall appoint the 
assistant chief from the officers of the Regular Air Force designated 
as Air Force nurses whose regular grade is above lieutenant colonel.''.
    (c) Clerical Amendments.--(1) The item relating to section 3069 in 
the table of sections at the beginning of chapter 307 of such title is 
amended to read as follows:
``3069. Army Nurse Corps: composition; Chief and assistant chief; 
appointment; grade.''.

    (2) The table of sections at the beginning of chapter 807 of such 
title is amended by inserting after the item relating to section 8067 
the following new item:
``8069. Air Force Nurse Corps: Chief and assistant chief; appointment; 
grade.''.

Sec. 503. NAVY SPOT PROMOTION AUTHORITY FOR CERTAIN LIEUTENANTS WITH 
              CRITICAL SKILLS.

    (a) Advice-and-Consent Appointments.--Subsection (a) of section 
5721 of title 10, United States Code, is amended by striking out ``the 
President alone'' and inserting in lieu thereof ``the President, by and 
with the advice and consent of the Senate''.
    (b) Repeal of Termination of Authority.--Such section is further 
amended by striking out subsection (g).
    (c) Clerical Amendment.--The caption for subsection (a) is amended 
to read as follows: ``Promotion Authority for Certain Officers With 
Critical Skills.--''.
    SEC. 504. TIME FOR AWARD OF DEGREES BY UNACCREDITED EDUCATIONAL 
      INSTITUTIONS FOR GRADUATES TO BE CONSIDERED EDUCATIONALLY 
      QUALIFIED FOR APPOINTMENT AS RESERVE OFFICERS IN GRADE O-3.
    Section 12205(c)(2)(C) of title 10, United States Code, is amended 
by striking out ``three years'' and inserting in lieu thereof ``eight 
years''.
    SEC. 505. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR 
      APPOINTMENT IN THE NAVAL RESERVE IN GRADES ABOVE O-2.
    Section 12205(b)(3) of title 10, United States Code, is amended by 
inserting ``or the Seaman to Admiral program'' after ``(NAVCAD) 
program''.
    SEC. 506. CHIEF WARRANT OFFICER PROMOTIONS.
    (a) Reduction of Minimum Time in Grade Required for Consideration 
for Promotion.--Section 574(e) of title 10, United States Code, is 
amended by striking out ``three years of service'' and inserting in 
lieu thereof ``two years of service''.
    (b) Below-Zone Selection.--Section 575(b)(1) of such title is 
amended by inserting ``chief warrant officer, W-3,'' in the first 
sentence after ``to consider warrant officers for selection for 
promotion to the grade of''.
    SEC. 507. SERVICE CREDIT FOR SENIOR ROTC CADETS AND MIDSHIPMEN IN 
      SIMULTANEOUS MEMBERSHIP PROGRAM.
    (a) Amendments to Title 10.--(1) Section 2106(c) of title 10, 
United States Code, is amended by striking out ``while serving on 
active duty other than for training after July 31, 1990, while a member 
of the Selected Reserve'' and inserting in lieu thereof ``performed on 
or after August 1, 1979, as a member of the Selected Reserve''.
    (2) Section 2107(g) of such title is amended by striking out 
``while serving on active duty other than for training after July 31, 
1990, while a member of the Selected Reserve'' and inserting in lieu 
thereof ``performed on or after August 1, 1979, as a member of the 
Selected Reserve''.
    (3) Section 2107a(g) of such title is amended by inserting ``, 
other than enlisted service performed after August 1, 1979, as a member 
of Selected Reserve'' after ``service as a cadet or with concurrent 
enlisted service''.
    (b) Amendment to Title 37.--Section 205(d) of title 37, United 
States Code, is amended by striking out ``that service after July 31, 
1990, that the officer performed while serving on active duty'' and 
inserting in lieu thereof ``for service that the officer performed on 
or after August 1, 1979.''.
    (c) Benefits Not To Accrue for Prior Periods.--No increase in pay 
or retired or retainer pay shall accrue for periods before the date of 
the enactment of this Act by reason of the amendments made by this 
section.
    SEC. 508. CONTINUATION ON ACTIVE STATUS FOR CERTAIN RESERVE 
      OFFICERS OF THE AIR FORCE.
    (a) Authority.--Section 14507 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) Temporary Authority To Retain Certain Officers Designated as 
Judge Advocates.--(1) Notwithstanding the provisions of subsections (a) 
and (b), the Secretary of the Air Force may retain on the reserve 
active-status list any reserve officer of the Air Force who is 
designated as a judge advocate and who obtained the first professional 
degree in law while on an educational delay program subsequent to being 
commissioned through the Reserve Officers' Training Corps.
    ``(2) No more than 50 officers may be retained on the reserve 
active-status list under the authority of paragraph (1) at any time.
    ``(3) No officer may be retained on the reserve active-status list 
under the authority of paragraph (1) for a period exceeding three years 
from the date on which, but for that authority, that officer would have 
been removed from the reserve active-status list under subsection (a) 
or (b).
    ``(4) The authority of the Secretary of the Air Force under 
paragraph (1) expires on September 30, 2003.''.
  (b) Effective Date.--Subsection (c) of section 14507 of title 10, 
United States Code, as added by subsection (a), shall take effect on 
October 1, 1996.
    SEC. 509. REPORTS ON RESPONSE TO RECOMMENDATIONS CONCERNING 
      IMPROVEMENTS TO DEPARTMENT OF DEFENSE JOINT MANPOWER PROCESS.
    (a) Semiannual Report.--The Secretary of Defense shall submit to 
Congress a semiannual report on the status of actions taken by the 
Secretary to implement the recommendations made by the Department of 
Defense Inspector General in the report of November 29, 1995, entitled 
``Inspection of the Department of Defense Joint Manpower Process'' 
(Report No. 96-029). The first such report shall be submitted not later 
than February 1, 1997. The requirement to submit such reports 
terminates after the fourth such report is submitted.
    (b) Additional Matter for First Report.--As part of the first 
report under subsection (a), the Secretary shall include the following:
        (1) The Secretary's assessment as to the need to establish a 
    joint, centralized permanent organization in the Department of 
    Defense to determine, validate, approve, and manage military and 
    civilian manpower requirements resources at joint organizations.
        (2) The Secretary's assessment of the Department of Defense 
    timeline and plan to increase the capability of the joint 
    professional military education system (including the Armed Forces 
    Staff College) to overcome the capacity limitations cited in the 
    report referred to in subsection (a).
        (3) The Secretary's plan and timeline to provide the necessary 
    training and education of reserve component officers.
    (c) GAO Assessment.--The Comptroller General of the United States 
shall assess the completeness and adequacy of the corrective actions 
taken by the Secretary with respect to the matters covered in the 
Inspector General report referred to in subsection (a). Not later than 
one year after the date of the enactment of this Act, the Comptroller 
General shall submit to Congress a report, based on the assessment 
under this subsection, providing the Comptroller General's findings and 
recommendations.
    SEC. 510. FREQUENCY OF REPORTS TO CONGRESS ON JOINT OFFICER 
      MANAGEMENT POLICIES.
    (a) Change from Semiannual to Annual Report.--Section 662(b) of 
title 10, United States Code, is amended by striking out ``Report.--The 
Secretary of Defense shall periodically (and not less often than every 
six months) report to Congress on the promotion rates'' and inserting 
in lieu thereof ``Annual Report.--Not later than January 1 of each 
year, the Secretary of Defense shall submit to Congress a report on the 
promotion rates during the preceding fiscal year''.
    (b) Technical and Conforming Amendments.--Such section is further 
amended--
        (1) in the first sentence, by striking out ``clauses'' and 
    inserting in lieu thereof ``paragraphs''; and
        (2) in the second sentence--
            (A) by inserting ``for any fiscal year'' after ``such 
        objectives''; and
            (B) by striking out ``periodic report required by this 
        subsection'' and inserting in lieu thereof ``report for that 
        fiscal year''.

                 Subtitle B--Enlisted Personnel Policy

    SEC. 511. CAREER SERVICE REENLISTMENTS FOR MEMBERS WITH AT LEAST 10 
      YEARS OF SERVICE.
    Subsection (d) of section 505 of title 10, United States Code, is 
amended to read as follows:
    ``(d)(1) The Secretary concerned may accept a reenlistment in the 
Regular Army, Regular Navy, Regular Air Force, Regular Marine Corps, or 
Regular Coast Guard, as the case may be, for a period determined under 
this subsection.
    ``(2) In the case of a member who has less than 10 years of service 
in the armed forces as of the day before the first day of the period 
for which reenlisted, the period for which the member reenlists shall 
be at least two years but not more than six years.
    ``(3) In the case of a member who has at least 10 years of service 
in the armed forces as of the day before the first day of the period 
for which reenlisted, the Secretary concerned may accept a reenlistment 
for either--
        ``(A) a specified period of at least two years but not more 
    than six years; or
        ``(B) an unspecified period.
    ``(4) No enlisted member is entitled to be reenlisted for a period 
that would expire before the end of the member's current enlistment.''.
    SEC. 512. AUTHORITY TO EXTEND PERIOD FOR ENTRY ON ACTIVE DUTY UNDER 
      THE DELAYED ENTRY PROGRAM.
    (a) Authority.--Section 513(b) of title 10, United States Code, is 
amended by inserting after the first sentence the following: ``The 
Secretary concerned may extend the 365-day period for any person for up 
to an additional 180 days if the Secretary determines that it is in the 
best interests of the armed force of which that person is a member to 
do so.''.
    (b) Technical Amendments.--Section 513(b) of such title, as amended 
by subsection (a), is further amended--
        (1) by inserting ``(1)'' after ``(b)'';
        (2) by designating the third sentence as paragraph (2); and
        (3) in paragraph (2), as so designated, by striking out ``the 
    preceding sentence'' and inserting in lieu thereof ``paragraph 
    (1)''.

                   Subtitle C--Activation and Recall

    SEC. 521. LIMITATIONS ON RECALL OF RETIRED MEMBERS TO ACTIVE DUTY.
    (a) Revision and Recodification of Authorities Relating to Retired 
Members Ordered to Active Duty.--Chapter 39 of title 10, United States 
Code, is amended by striking out section 688 and inserting in lieu 
thereof the following:
 ``Sec. 688. Retired members: authority to order to active duty; duties
    ``(a) Authority.--Under regulations prescribed by the Secretary of 
Defense, a member described in subsection (b) may be ordered to active 
duty by the Secretary of the military department concerned at any time.
    ``(b) Covered Members.--Except as provided in subsection (d), 
subsection (a) applies to the following members of the armed forces:
        ``(1) A retired member of the Regular Army, Regular Navy, 
    Regular Air Force, or Regular Marine Corps.
        ``(2) A member of the Retired Reserve who was retired under 
    section 1293, 3911, 3914, 6323, 8911, or 8914 of this title.
        ``(3) A member of the Fleet Reserve or Fleet Marine Corps 
    Reserve.
    ``(c) Duties of Member Ordered to Active Duty.--The Secretary 
concerned may, to the extent consistent with other provisions of law, 
assign a member ordered to active duty under this section to such 
duties as the Secretary considers necessary in the interests of 
national defense.
    ``(d) Exclusion of Officers Retired on Selective Early Retirement 
Basis.--The following officers may not be ordered to active duty under 
this section:
        ``(1) An officer who retired under section 638 of this title.
        ``(2) An officer who--
            ``(A) after having been notified that the officer was to be 
        considered for early retirement under section638 of this title 
by a board convened under section 611(b) of this title and before being 
considered by that board, requested retirement under section 3911, 
6323, or 8911 of this title; and
            ``(B) was retired pursuant to that request.
    ``(e) Limitation of Period of Recall Service.--A member ordered to 
active duty under subsection (a) may not serve on active duty pursuant 
to orders under that subsection for more than 12 months within the 24 
months following the first day of the active duty to which ordered 
under that subsection.
    ``(f) Waiver for Periods of War or National Emergency.--Subsections 
(d) and (e) do not apply in time of war or of national emergency 
declared by Congress or the President.
 ``Sec. 689. Retired members: grade in which ordered to active duty and 
    upon release from active duty
    ``(a) General Rule for Grade in Which Ordered to Active Duty.--
Except as provided in subsections (b) and (c), a retired member ordered 
to active duty under section 688 of this title shall be ordered to 
active duty in the member's retired grade.
    ``(b) Members Retired in O-9 and O-10 Grades.--A retired member 
ordered to active duty under section 688 of this title whose retired 
grade is above the grade of major general or rear admiral shall be 
ordered to active duty in the highest permanent grade held by such 
member while serving on active duty.
    ``(c) Members Who Previously Served in Grade Higher Than Retired 
Grade.--(1) A retired member ordered to active duty under section 688 
of this title who has previously served on active duty satisfactorily, 
as determined by the Secretary of the military department concerned, in 
a grade higher than that member's retired grade may be ordered to 
active duty in the highest grade in which the member had so served 
satisfactorily, except that such a member may not be so ordered to 
active duty in a grade above major general or rear admiral.
    ``(2) A retired member ordered to active duty in a grade that is 
higher than the member's retired grade pursuant to subsection (a) shall 
be treated for purposes of section 690 of this title as if the member 
was promoted to that higher grade while on that tour of active duty.
    ``(3) If, upon being released from that tour of active duty, such a 
retired member has served on active duty satisfactorily, as determined 
by the Secretary concerned, for not less than a total of 36 months in a 
grade that is a higher grade than the member's retired grade, the 
member is entitled to placement on the retired list in that grade.
    ``(d) Grade Upon Release From Active Duty.--A member ordered to 
active duty under section 688 of this title who, while on active duty, 
is promoted to a grade that is higher than that member's retired grade 
is entitled, upon that member's release from that tour of active duty, 
to placement on the retired list in the highest grade in which the 
member served on active duty satisfactorily, as determined by the 
Secretary of the military department concerned, for not less than six 
months.
 ``Sec. 690. Retired members ordered to active duty: limitation on 
    number
    ``(a) General and Flag Officers.--Not more than 15 retired general 
officers of the Army, Air Force, or Marine Corps, and not more than 15 
retired flag officers of the Navy, may be on active duty at any one 
time. For the purposes of this subsection a retired officer ordered to 
active duty for a period of 60 days or less is not counted.
    ``(b) Limitation by Service.--(1) Not more than 25 officers of any 
one armed force may be serving on active duty concurrently pursuant to 
orders to active duty issued under section 688 of this title.
    ``(2) In the administration of paragraph (1), the following 
officers shall not be counted:
        ``(A) A chaplain who is assigned to duty as a chaplain for the 
    period of active duty to which ordered.
        ``(B) A health care professional (as characterized by the 
    Secretary concerned) who is assigned to duty as a health care 
    professional for the period of the active duty to which ordered.
        ``(C) Any officer assigned to duty with the American Battle 
    Monuments Commission for the period of active duty to which 
    ordered.
    ``(c) Waiver for Periods of War or National Emergency.--Subsection 
(a) does not apply in time of war or of national emergency declared by 
Congress or the President after November 30, 1980. Subsection (b) does 
not apply in time of war or of national emergency declared by Congress 
or the President.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on September 30, 1997.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by striking out the item relating to section 
688 and inserting in lieu thereof the following:

``688. Retired members: authority to order to active duty; duties.

``689. Retired members: grade in which ordered to active duty and upon 
release from active duty.

``690. Retired members ordered to active duty: limitation on number.''.

    (d) Cross Reference Amendment.--Section 6151(a) of title 10, United 
States Code, is amended by striking out ``688'' and inserting in lieu 
thereof ``689''.

SEC. 522. CLARIFICATION OF DEFINITION OF ACTIVE STATUS.

    Section 101(d)(4) of title 10, United States Code, is amended by 
striking out ``a reserve commissioned officer, other than a 
commissioned warrant officer,'' and inserting in lieu thereof the 
following: ``a member of a reserve component''.
    SEC. 523. LIMITATION OF REQUIREMENT FOR PHYSICAL EXAMINATIONS OF 
      MEMBERS OF NATIONAL GUARD CALLED INTO FEDERAL SERVICE.
    Section 12408(a) of title 10, United States Code, is amended by 
inserting ``under section 12301(a), 12302, or 12304 of this title'' 
after ``called into Federal service''.

                Subtitle D--Reserve Component Retirement

    SEC. 531. INCREASE IN ANNUAL LIMIT ON DAYS OF INACTIVE DUTY 
      TRAINING CREDITABLE TOWARD RESERVE RETIREMENT.
    (a) Increase in Limit.--Section 12733(3) is amended by inserting 
before the period at the end the following: ``of service before the 
year of service in which the date of the enactment of the National 
Defense Authorization Act for Fiscal Year 1997 occurs and not more than 
75 days in any subsequent year of service''.
    (b) Tracking System for Award of Retirement Points.--To better 
enable the Secretary of Defense and Congress to assess the cost and the 
effect on readiness of the amendment made by subsection (a) and of 
other potential changes to the Reserve retirement system under chapter 
1223 of title 10, United States Code, the Secretary of Defense shall 
require the Secretary of each military department to implement a system 
to monitor the award of retirement points for purposes of that chapter 
by categories in accordance with the recommendation set forth in the 
August 1988 report of the Sixth Quadrennial Review of Military 
Compensation.
    (c) Recommendations to Congress.--The Secretary shall submit to 
Congress, not later than one year after the date of the enactment of 
this Act, the recommendations of the Secretary with regard to the 
adoption of the following Reserve retirement initiatives recommended in 
the August 1988 report of the Sixth Quadrennial Review of Military 
Compensation:
        (1) Elimination of membership points under subparagraph (C) of 
    section 12732(a)(2) of title 10, United States Code, in conjunction 
    with a decrease from 50 to 35 in the number of points required for 
    a satisfactory year under that section.
        (2) Limitation to 60 in any year on the number of points that 
    may be credited under subparagraph (B) of section 12732(a)(2) of 
    such title at two points per day.
        (3) Limitation to 360 in any year on the total number of 
    retirement points countable for purposes of section 12733 of such 
    title.
    SEC. 532. RETIREMENT OF RESERVE ENLISTED MEMBERS WHO QUALIFY FOR 
      ACTIVE DUTY RETIREMENT AFTER ADMINISTRATIVE REDUCTION IN ENLISTED 
      GRADE.
    (a) Army.--(1) Chapter 369 of title 10, United States Code, is 
amended by inserting after section 3962 the following new section:
 ``Sec. 3963. Highest grade held satisfactorily: Reserve enlisted 
     members reduced in grade not as a result of the member's 
     misconduct
    ``(a) A Reserve enlisted member of the Army described in subsection 
(b) who is retired under section 3914 of this title shall be retired in 
the highest enlisted grade in which the member served on active duty 
satisfactorily (or, in the case of a member of the National Guard, in 
which the member served on full-time National Guard duty 
satisfactorily), as determined by the Secretary of the Army.
    ``(b) This section applies to a Reserve enlisted member who--
        ``(1) at the time of retirement is serving on active duty (or, 
    in the case of a member of the National Guard, on full-time 
    National Guard duty) in a grade lower than the highest enlisted 
    grade held by the member while on active duty (or full-time 
    National Guard duty); and
        ``(2) was previously administratively reduced in grade not as a 
    result of the member's own misconduct, as determined by the 
    Secretary of the Army.
    ``(c) This section applies with respect to Reserve enlisted members 
who are retired under section 3914 of this title after September 30, 
1996.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3962 the 
following new item:

``3963. Highest grade held satisfactorily: Reserve enlisted members 
reduced in grade not as a result of the member's misconduct.''.

    (b) Navy and Marine Corps.--(1) Chapter 571 of title 10, United 
States Code, is amended by adding at the end the following new section:
 ``Sec. 6336. Highest grade held satisfactorily: Reserve enlisted 
     members reduced in grade not as a result of the member's 
     misconduct
    ``(a) A member of the Naval Reserve or Marine Corps Reserve 
described in subsection (b) who is transferred to the Fleet Reserve or 
the Fleet Marine Corps Reserve under section 6330 of this title shall 
be transferred in the highest enlisted grade in which the member served 
on active duty satisfactorily, as determined by the Secretary of the 
Navy.
    ``(b) This section applies to a Reserve enlisted member who--
        ``(1) at the time of transfer to the Fleet Reserve or Fleet 
    Marine Corps Reserve is serving on active duty in a grade lower 
    than the highest enlisted grade held by the member while on active 
    duty; and
        ``(2) was previously administratively reduced in grade not as a 
    result of the member's own misconduct, as determined by the 
    Secretary of the Navy.
    ``(c) This section applies with respect to enlisted members of the 
Naval Reserve and Marine Corps Reserve who are transferred to the Fleet 
Reserve or the Fleet Marine Corps Reserve after September 30, 1996.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6336. Highest grade held satisfactorily: Reserve enlisted members 
reduced in grade not as a result of the member's misconduct.''.

    (c) Air Force.--(1) Chapter 869 of title 10, United States Code, is 
amended by inserting after section 8962 the following new section:
``Sec. 8963. Highest grade held satisfactorily: Reserve enlisted 
     members reduced in grade not as a result of the member's 
     misconduct
    ``(a) A Reserve enlisted member of the Air Force described in 
subsection (b) who is retired under section 8914 of this title shall be 
retired in the highest enlisted grade in which the member served on 
active duty satisfactorily (or, in the case of a member of the National 
Guard, in which the member served on full-time National Guard duty 
satisfactorily), as determined by the Secretary of the Air Force.
    ``(b) This section applies to a Reserve enlisted member who--
        ``(1) at the time of retirement is serving on active duty (or, 
    in the case of a member of the National Guard, on full-time 
    National Guard duty) in a grade lower than the highest enlisted 
    grade held by the member while on active duty (or full-time 
    National Guard duty); and
        ``(2) was previously administratively reduced in grade not as a 
    result of the member's own misconduct, as determined by the 
    Secretary of the Air Force.
    ``(c) This section applies with respect to Reserve enlisted members 
who are retired under section 8914 of this title after September 30, 
1996.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 8962 the 
following new item:

``8963. Highest grade held satisfactorily: Reserve enlisted members 
reduced in grade not as a result of the member's misconduct.''.

    (d) Computation of Retired and Retainer Pay Based Upon Retired 
Grade.--(1) Section 3991 of such title is amended by adding at the end 
the following new subsection:
    ``(c) Special Rule for Retired Reserve Enlisted Members Covered by 
Section 3963.--In the case of a Reserve enlisted member retired under 
section 3914 of this title whose retired grade is determined under 
section 3963 of this title and who first became a member of a uniformed 
service before September 8, 1980, the retired pay base of the member 
(notwithstanding section 1406(a)(1) of this title) is the amount of the 
monthly basic pay of the member's retired grade (determined based upon 
the rates of basic pay applicable on the date of the member's 
retirement), and that amount shall be used for the purposes of 
subsection (a)(1)(A) rather than the amount computed under section 
1406(c) of this title.''.
    (2) Section 6333 of such title is amended by adding at the end the 
following new subsection:
    ``(c) In the case of a Reserve enlisted member whose grade upon 
transfer to the Fleet Reserve or Fleet Marine Corps Reserve is 
determined under section 6336 of this title and who first became a 
member of a uniformed service before September 8, 1980, the retainer 
pay base of the member (notwithstanding section 1406(a)(1) of this 
title) is the amount of the monthly basic pay of the grade in which the 
member is so transferred (determined based upon the rates of basic pay 
applicable on the date of the member's transfer), and that amount shall 
be used for the purposes of the table in subsection (a) rather than the 
amount computed under section 1406(d) of this title.''.
    (3) Section 8991 of such title is amended by adding at the end the 
following new subsection:
    ``(c) Special Rule for Retired Reserve Enlisted Members Covered by 
Section 8963.--In the case of a Reserve enlisted member retired under 
section 8914 of this title whose retired grade is determined under 
section 8963 of this title and who first became a member of a uniformed 
service before September 8, 1980, the retired pay base of the member 
(notwithstanding section 1406(a)(1) of this title) is the amount of the 
monthly basic pay of the member's retired grade (determined based upon 
the rates of basic pay applicable on the date of the member's 
retirement), and that amount shall be used for the purposes of 
subsection (a)(1)(A) rather than the amount computed under section 
1406(e) of this title.''.
    SEC. 533. AUTHORITY FOR A RESERVE ON ACTIVE DUTY TO WAIVE 
      RETIREMENT SANCTUARY.
    Section 12686 of title 10, United States Code, is amended--
        (1) by inserting ``(a) Limitation.--'' before ``Under 
    regulations''; and
        (2) by adding at the end the following:
    ``(b) Waiver.--With respect to a member of a reserve component who 
is to be ordered to active duty (other than for training) under section 
12301 of this title pursuant to an order to active duty that specifies 
a period of less than 180 days and who (but for this subsection) would 
be covered by subsection (a), the Secretary concerned may require, as a 
condition of such order to active duty, that the member waive the 
applicability of subsection (a) to the member for the period of active 
duty covered by that order. In carrying out this subsection, the 
Secretary concerned may require that a waiver under the preceding 
sentence be executed before the period of active duty begins.''.

SEC. 534. ELIGIBILITY OF RESERVES FOR DISABILITY RETIREMENT.

    Paragraph (2) of section 1204 of title 10, United States Code, is 
amended to read as follows:
        ``(2) the disability is the proximate result of, or was 
    incurred in line of duty after the date of the enactment of this 
    Act as a result of--
            ``(A) performing active duty or inactive-duty training;
            ``(B) traveling directly to or from the place at which such 
        duty is performed; or
            ``(C) an injury, illness, or disease incurred or aggravated 
        while remaining overnight, between successive periods of 
        inactive-duty training, at or in the vicinity of the site of 
        the inactive duty training, if the site is outside reasonable 
        commuting distance of the member's residence;''.

              Subtitle E--Other Reserve Component Matters

    SEC. 541. TRAINING FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
      RESERVES.
    Subsection (b) of section 12310 of title 10, United States Code, is 
amended to read as follows:
    ``(b) A Reserve on active duty as described in subsection (a) may 
be provided training consistent with training provided to other members 
on active duty, as the Secretary concerned sees fit.''.

SEC. 542. ELIGIBILITY FOR ENROLLMENT IN READY RESERVE MOBILIZATION 
              INCOME INSURANCE PROGRAM.

    Section 12524 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) Members of Individual Ready Reserve.--Notwithstanding any 
other provision of this section, and pursuant to regulations issued by 
the Secretary, a member of the Individual Ready Reserve who becomes a 
member of the Selected Reserve shall not be denied eligibility to 
purchase insurance under this chapter upon becoming a member of the 
Selected Reserve unless the member previously declined to enroll in the 
program of insurance under this chapter while a member of the Selected 
Reserve.''.
    SEC. 543. RESERVE CREDIT FOR PARTICIPATION IN HEALTH PROFESSIONS 
      SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.
    (a) Credit Authorized.--Section 2126 of title 10, United States 
Code, is amended--
        (1) by striking out ``Service performed'' and inserting in lieu 
    thereof ``(a) Service Not Creditable.--Except as provided in 
    subsection (b), service performed''; and
        (2) by adding at the end the following:
    ``(b) Service Creditable for Certain Purposes.--(1) The Secretary 
concerned may authorize service performed by a member of the program in 
pursuit of a course of study under this subchapter to be counted in 
accordance with this subsection if the member--
        ``(A) completes the course of study;
        ``(B) completes the active duty obligation imposed under 
    section 2123(a) of this title; and
        ``(C) possesses a specialty designated by the Secretary 
    concerned as critically needed in wartime.
    ``(2) Service credited under paragraph (1) counts only for the 
following purposes:
        ``(A) Award of retirement points for computation of years of 
    service under section 12732 of this title and for computation of 
    retired pay under section 12733 of this title.
        ``(B) Computation of years of service creditable under section 
    205 of title 37.
    ``(3) For purposes of paragraph (2)(A), a member may be credited in 
accordance with paragraph (1) with not more than 50 points for each 
year of participation in a course of study that the member 
satisfactorily completes as a member of the program.
    ``(4) Service may not be counted under paragraph (1) for more than 
four years of participation in a course of study as a member of the 
program.
    ``(5) A member is not entitled to any retroactive award of, or 
increase in, pay or allowances under title 37 by reason of an award of 
service credit under paragraph (1).''.
    (b) Award of Retirement Points.--(1) Section 12732(a)(2) of such 
title is amended--
        (A) by inserting after clause (C) the following:
            ``(D) Points credited for the year under section 2126(b) of 
        this title.''; and
        (B) in the matter following clause (D), as inserted by 
    paragraph (1), by striking out ``and (C)'' and inserting in lieu 
    thereof ``(C), and (D)''.
    (2) Section 12733(3) of such title is amended by striking out ``or 
(C)'' and inserting in lieu thereof ``(C), or (D)''.
    SEC. 544. AMENDMENTS TO RESERVE OFFICER PERSONNEL MANAGEMENT ACT 
      PROVISIONS.
    (a) Service Requirement for Retirement in Highest Grade Held.--
Section 1370(d) of title 10, United States Code, is amended--
        (1) by redesignating paragraph (3) as paragraph (4);
        (2) in paragraph (2)(A), by striking out ``(A)'';
        (3) by redesignating paragraph (2)(B) as paragraph (3); and
        (4) in paragraph (3), as so redesignated--
            (A) by designating the first sentence as subpara- graph 
        (A);
            (B) by designating the second sentence as subparagraph (B);
            (C) in subparagraph (B), as so redesignated, by striking 
        out ``the preceding sentence'' and inserting in lieu thereof 
        ``subparagraph (A)''; and
            (D) by adding at the end the following:
    ``(C) If a person covered by subparagraph (A) has completed at 
least six months of satisfactory service in grade, the person was 
serving in that grade while serving in a position of adjutant general 
required under section 314 of title 32 or while serving in a position 
of assistant adjutant general subordinate to such a position of 
adjutant general, and the person has failed to complete three years of 
service in that grade solely because the person's appointment to such 
position has been terminated or vacated as described in section 324(b) 
of such title, then such person may be credited with satisfactory 
service in that grade, notwithstanding the failure to complete three 
years of service in that grade.
    ``(D) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been recommended for 
promotion in a report of a promotion board but before being promoted to 
the recommended grade, served in a position for which that grade is the 
minimum authorized grade may be credited for purposes of subparagraph 
(A) as having served in that grade for the period for which the 
personserved in that position while in the next lower grade. The period 
credited may not include any period before the date on which the Senate 
provides advice and consent for the appointment of that person in the 
recommended grade.
    ``(E) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been extended 
temporary Federal recognition as a reserve officer of the Army National 
Guard in a particular grade under section 308 of title 32 or temporary 
Federal recognition as a reserve officer of the Air National Guard in a 
particular grade under such section, served in a position for which 
that grade is the minimum authorized grade may be credited for purposes 
of subparagraph (A) as having served in that grade for the period for 
which the person served in that position while extended the temporary 
Federal recognition, but only if the person was subsequently extended 
permanent Federal recognition as a reserve officer in that grade and 
also served in that position after being extended the permanent Federal 
recognition.''.
    (b) Exception to Requirement for Retention of Reserve Officers 
Until Completion of Required Service.--Section 12645(b)(2) of such 
title is amended by inserting ``or a reserve active-status list'' after 
``active-duty list''.
    (c) Technical Correction.--Section 14314(b)(2)(B) of such title is 
amended by striking out ``of the Air Force''.
    SEC. 545. REPORT ON NUMBER OF ADVISERS IN ACTIVE COMPONENT SUPPORT 
      OF RESERVES PILOT PROGRAM.
    (a) Report on Number of Active Component Advisers.--Not later than 
six months after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report setting forth the Secretary's determination as 
to the appropriate number of active component personnel to be assigned 
to serve as advisers to reserve components under section 414 of the 
National Defense Authorization Act for Fiscal Years 1992 and 1993 (10 
U.S.C. 12001 note). If the Secretary's determination is that such 
number should be a number other than the required minimum number in 
effect under subsection (c) of such section, the Secretary shall 
include in the report an explanation providing the Secretary's 
justification for the number recommended.
    (b) Technical Amendment.--Section 414(a) of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note) 
is amended by striking out ``During fiscal years 1992 and 1993, the 
Secretary of the Army shall institute'' and inserting in lieu thereof 
``The Secretary of the Army shall carry out''.
    SEC. 546. SENSE OF CONGRESS AND REPORT REGARDING REEMPLOYMENT 
      RIGHTS FOR MOBILIZED RESERVISTS EMPLOYED IN FOREIGN COUNTRIES.
    (a) Sense of Congress.--Congress is concerned about the lack of 
reemployment rights afforded Reserve component members who reside in 
foreign countries and either work for United States companies that 
maintain offices or operations in foreign countries or work for foreign 
employers. Being outside the jurisdiction of the United States, these 
employers are not subject to the provisions of chapter 43 of title 38, 
United States Code, known as the Uniformed Services Employment and 
Reemployment Rights Act (USERRA). The purpose of that Act is to provide 
statutory employment protections that include reinstatement, seniority, 
status, and rate of pay coverage for Reservists who are ordered to 
active duty for a specified period of time, including involuntary 
active duty in support of an operational contingency. While most 
Reserve members are afforded the protections of that Act (which covers 
reemployment rights in their civilian jobs upon completion of military 
service), approximately 2,000 members of the Selected Reserve reside 
outside the United States and its territories and, not being guaranteed 
the job protection envisioned by the USERRA, are potentially subject to 
reemployment problems after release from active duty. This situation 
poses a continuing personnel management challenge for the reserve 
components.
    (b) Recognition of Problem.--Congress, while recognizing that 
foreign governments and companies located abroad, not being within the 
jurisdiction of the United States, cannot be required to comply with 
the provisions of the Uniformed Services Employment and Reemployment 
Rights Act, also recognizes that there is a need to provide assistance 
to Reservists in the situation described in subsection (a), both in the 
near term and the long term.
    (c) Report Requirement.--Not later than April 1, 1997, the 
Secretary of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives a report that sets forth recommended actions to help 
alleviate reemployment problems for Reservists who are employed outside 
the United States and its territories by United States companies that 
maintain offices or operations in foreign countries or by foreign 
employers. The report shall include recommendations on the assistance 
and support that may be required by other organizations of the 
Government, including the Defense Attache Offices, the Department of 
Labor, and the Department of State. The report shall be prepared in 
consultation with the Secretary of State and the Secretary of Labor.
    SEC. 547. PAYMENT OF PREMIUMS UNDER MOBILIZATION INCOME INSURANCE 
      PROGRAM.
    Section 12527(a) of title 10, United States Code, is amended--
        (1) in paragraph (1), by inserting ``of the Selected Reserve'' 
    after ``a member''; and
        (2) by striking out paragraph (2) and inserting in lieu thereof 
    the following:
    ``(2) The Secretary of Defense, in consultation with the Secretary 
of Transportation, shall prescribe regulations which specify the 
procedures for payment of premiums by members of the Individual Ready 
Reserve and other members who do not receive pay on a monthly basis.''.

                 Subtitle F--Officer Education Programs

    SEC. 551. OVERSIGHT AND MANAGEMENT OF SENIOR RESERVE OFFICERS' 
      TRAINING CORPS PROGRAM.
    (a) Enrollment Priority To Be Consistent With Purpose of Program.--
(1) Section 2103 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) An educational institution at which a unit of the program has 
been established shall give priority for enrollment in the program to 
students who are eligible for advanced training under section 2104 of 
this title.''.
    (2) Section 2109 of such title is amended by adding at the end the 
following new subsection:
    ``(c)(1) A person who is not qualified for, and (as determined by 
the Secretary concerned) will not be able to become qualified for, 
advanced training by reason of one or more of the requirements 
prescribed in paragraphs (1) through (3) of section 2104(b) of this 
title shall not be permitted to participate in--
        ``(A) field training or a practice cruise under section 
    2106(b)(6) of this title; or
        ``(B) practical military training under subsection (a).
    ``(2) The Secretary of the military department concerned may waive 
the limitation in paragraph (1) under procedures prescribed by the 
Secretary. Such procedures shall ensure uniform application of 
limitations and restrictions without regard to the reason for 
disqualification for advanced training.''.
    (b) Wear of the Military Uniform.--Section 772(h) of such title is 
amended by inserting before the period at the end the following: ``if 
the wear of such uniform is specifically authorized under regulations 
prescribed by the Secretary of the military department concerned''.
    SEC. 552. PROHIBITION ON REORGANIZATION OF ARMY ROTC CADET COMMAND 
      OR TERMINATION OF SENIOR ROTC UNITS PENDING REPORT ON ROTC.
    (a) Prohibition.--(1) The Secretary of the Army may not reorganize 
or restructure the Reserve Officers Training Corps Cadet Command, and 
may not terminate any Senior Reserve Officer Training Corps unit 
identified in the document referred to in paragraph (2), until 180 days 
after the date on which the Secretary submits to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives the report described in subsection (b).
    (2) The document referred to in paragraph (1) is the Department of 
Defense document dated May 20, 1996, entitled ``Information for Members 
of Congress concerning Senior Reserve Officer Training Corps (ROTC) 
Unit Closures''.
    (b) Report Contents.--The report referred to in subsection (a) is a 
report by the Secretary of the Army in which the Secretary--
        (1) describes the selection process used to identify the 
    Reserve Officer Training Corps units of the Army to be terminated;
        (2) lists the criteria used by the Army to select Reserve 
    Officer Training Corps units for termination;
        (3) sets forth the specific ranking of each unit of the Reserve 
    Officer Training Corps of the Army to be terminated as against all 
    other such units;
        (4) sets forth the authorized and actual cadre staffing of each 
    such unit for each fiscal year of the 10-fiscal year period ending 
    with fiscal year 1996;
        (5) sets forth the production goals and performance evaluations 
    of each such unit for each fiscal year of the 10-fiscal year period 
    ending with fiscal year 1996;
        (6) describes how cadets currently enrolled in the units 
    referred to in paragraph (5) will be accommodated after the closure 
    of such units;
        (7) describes the incentives to enhance the Reserve Officer 
    Training Corps program that are provided by each of the colleges on 
    the closure list;
        (8) includes the projected officer accession plan by source of 
    commission for the active-duty Army, the Army Reserve, and the Army 
    National Guard; and
        (9) describes whether the closure of any ROTC unit will 
    adversely affect the recruitment of minority officer candidates.
    SEC. 553. PILOT PROGRAM TO TEST EXPANSION OF ROTC PROGRAM TO 
      INCLUDE GRADUATE STUDENTS.
    (a) Test Program.--Section 2107(c) of title 10, United States Code, 
is amended--
        (1) by inserting ``(1)'' after ``(c)''; and
        (2) by adding at the end the following:
    ``(2) The Secretary of Defense shall authorize the Secretaries of 
the military departments to carry out a test program to determine the 
desirability of enabling graduate students to participate in the 
financial assistance program under this section. As part of such test 
program, the Secretary of a military department may provide financial 
assistance, as described in paragraph (1), to a student enrolled in an 
advanced education program beyond the baccalaureate degree level if the 
student also is a cadet or midshipman in an advanced training program. 
Not more than 15 percent of the total number of scholarships awarded 
under this section in any year may be awarded under the test program. 
No scholarship may be awarded under the test program after September 
30, 1999.''.
    (b) Authority To Enroll in Advanced Training Program.--Paragraph 
(3) of section 2101 of title 10, United States Code, is amended by 
inserting ``students enrolled in an advanced education program beyond 
the baccalaureate degree level or to'' after `instruction offered in 
the Senior Reserve Officers' Training Corps to''.
    (c) Report to Congress.--Not later than December 31, 1998, the 
Secretary of Defense shall submit to Congress areport on the experience 
to that date under the test program authorized under the amendment made 
by subsection (a)(2). The report shall include the Secretary's 
assessment of the effect of the test program on the Senior ROTC program 
and the Secretary's recommendation as to whether the authority under 
the test program should be made permanent.
    SEC. 554. DEMONSTRATION PROJECT FOR INSTRUCTION AND SUPPORT OF ARMY 
      ROTC UNITS BY MEMBERS OF THE ARMY RESERVE AND NATIONAL GUARD.
    (a) Demonstration Project Required.--The Secretary of the Army 
shall carry out a demonstration project in order to assess the 
feasibility and advisability of providing instruction and similar 
support to units of the Senior Reserve Officers' Training Corps of the 
Army through members of the Army Reserve (including members of the 
Individual Ready Reserve) and members of the Army National Guard.
    (b) Project Requirements.--(1) The Secretary shall carry out the 
demonstration project at at least one institution of higher education.
    (2) In order to enhance the value of the project, the Secretary may 
take actions to ensure that members of the Army Reserve and the Army 
National Guard provide instruction and support under the project in a 
variety of innovative ways.
    (c) Inapplicability of Limitation on Reserves in Support of ROTC.--
The assignment of a member of the Army Reserve or the Army National 
Guard to provide instruction or support under the demonstration project 
shall not be treated as an assignment of the member to duty with a unit 
of a Reserve Officer Training Corps program for purposes of section 
12321 of title 10, United States Code.
    (d) Reports to Congress.--Not later than February 1 in each of 1998 
and 1999, the Secretary shall submit to Congress a report assessing the 
activities under the demonstration project during the preceding year. 
The report submitted in 1999 shall include the Secretary's 
recommendation as to the advisability of continuing or expanding the 
authority for the project.
    (e) Termination.--The authority of the Secretary to carry out the 
demonstration project shall expire three years after the date of the 
enactment of this Act.
    SEC. 555. EXTENSION OF MAXIMUM AGE FOR APPOINTMENT AS A CADET OR 
      MIDSHIPMAN IN THE SENIOR RESERVE OFFICERS' TRAINING CORPS AND THE 
      SERVICE ACADEMIES.
    (a) Senior Reserve Officers' Training Corps.--Sections 2107(a) and 
2107a(a) of title 10, United States Code, are amended--
        (1) by striking out ``25 years of age'' and inserting in lieu 
    thereof ``27 years of age''; and
        (2) by striking out ``29 years of age'' and inserting in lieu 
    thereof ``30 years of age''.
    (b) United States Military Academy.--Section 4346(a) of such title 
is amended by striking out ``twenty-second birthday'' and inserting in 
lieu thereof ``twenty-third birthday''.
    (c) United States Naval Academy.--Section 6958(a)(1) of such title 
is amended by striking out ``twenty-second birthday'' and inserting in 
lieu thereof ``twenty-third birthday''.
    (d) United States Air Force Academy.--Section 9346(a) of such title 
is amended by striking out ``twenty-second birthday'' and inserting in 
lieu thereof ``twenty-third birthday''.
    SEC. 556. EXPANSION OF ELIGIBILITY FOR EDUCATION BENEFITS TO 
      INCLUDE CERTAIN RESERVE OFFICERS' TRAINING CORPS (ROTC) 
      PARTICIPANTS.
    (a) Active Duty Service.--Section 3011(c) of title 38, United 
States Code, is amended--
        (1) by striking out ``or upon completion of a program of 
    educational assistance under section 2107 of title 10'' in 
    paragraph (2); and
        (2) by adding at the end the following:
    ``(3) An individual who after December 31, 1976, receives a 
commission as an officer in the Armed Forces upon completion of a 
program of educational assistance under section 2107 of title 10 is not 
eligible for educational assistance under this section if the 
individual enters on active duty--
        ``(A) before October 1, 1996; or
        ``(B) after September 30, 1996, and while participating in such 
    program received more than $2,000 for each year of such 
    participation.''.
    (b) Selected Reserve.--Section 3012(d) of title 38, United States 
Code, is amended--
        (1) by striking out ``or upon completion of a program of 
    educational assistance under section 2107 of title 10'' in 
    paragraph (2); and
        (2) by adding at the end the following:
    ``(3) An individual who after December 31, 1976, receives a 
commission as an officer in the Armed Forces upon completion of a 
program of educational assistance under section 2107 of title 10 is not 
eligible for educational assistance under this section if the 
individual enters on active duty--
        ``(A) before October 1, 1996; or
        ``(B) after September 30, 1996, and while participating in such 
    program received more than $2,000 for each year of such 
    participation.''.
    SEC. 557. COMPTROLLER GENERAL REPORT ON COST AND POLICY 
      IMPLICATIONS OF PERMITTING UP TO FIVE PERCENT OF SERVICE ACADEMY 
      GRADUATES TO BE ASSIGNED DIRECTLY TO RESERVE DUTY UPON 
      GRADUATION.
    (a) Report Required.--The Comptroller General of the United States 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
providing an analysis of the cost implications, and the policy 
implications, of permitting up to five percent of each graduating class 
of each of the service academies to be placed, upon graduation and 
commissioning, in an active status in the appropriate reserve component 
(without a minimum period of obligated active duty service), with 
acorresponding increase in the number of ROTC graduates each year who 
are permitted to serve on active duty upon commissioning.
    (b) Information on Current Academy Graduates in Reserve 
Components.--The Comptroller General shall include in the report 
information (shown in the aggregate and separately for each of the 
Armed Forces and for graduates of each service academy) on--
        (1) the number of academy graduates who at the time of the 
    report are serving in an active status in a reserve component; and
        (2) within the number under paragraph (1), the number for each 
    reserve component and, of those, the number within each reserve 
    component who are on active duty under section 12301(d) of title 
    10, United States Code, for the purpose of organizing, 
    administering, recruiting, instructing, or training the reserve 
    components.
    (c) Submission of Report.--The report shall be submitted not later 
than six months after the date of the enactment of this Act.
    (d) Service Academies.--For purposes of this section, the term 
``service academies'' means--
        (1) the United States Military Academy;
        (2) the United States Naval Academy; and
        (3) the United States Air Force Academy.

                   Subtitle G--Decorations and Awards

    SEC. 561. AUTHORITY FOR AWARD OF MEDAL OF HONOR TO CERTAIN AFRICAN 
      AMERICAN SOLDIERS WHO SERVED DURING WORLD WAR II.
    (a) Inapplicability of Time Limitations.--Notwithstanding the time 
limitations in section 3744(b) of title 10, United States Code, or any 
other time limitation, the President may award the Medal of Honor to 
the persons specified in subsection (b), each of whom has been found by 
the Secretary of the Army to have distinguished himself conspicuously 
by gallantry and intrepidity at the risk of his life above and beyond 
the call of duty while serving in the United States Army during World 
War II.
    (b) Persons Eligible To Receive the Medal of Honor.--The persons 
referred to in subsection (a) are the following:
        (1) Vernon J. Baker, who served as a first lieutenant in the 
    370th Infantry Regiment, 92nd Infantry Division.
        (2) Edward A. Carter, who served as a staff sergeant in the 
    56th Armored Infantry Battalion, Twelfth Armored Division.
        (3) John R. Fox, who served as a first lieutenant in the 366th 
    Infantry Regiment, 92nd Infantry Division.
        (4) Willy F. James, Jr., who served as a private first class in 
    the 413th Infantry Regiment, 104th Infantry Division.
        (5) Ruben Rivers, who served as a staff sergeant in the 761st 
    Tank Battalion.
        (6) Charles L. Thomas, who served as a first lieutenant in the 
    614th Tank Destroyer Battalion.
        (7) George Watson, who served as a private in the 29th 
    Quartermaster Regiment.
    (c) Posthumous Award.--The Medal of Honor may be awarded under this 
section posthumously, as provided in section 3752 of title 10, United 
States Code.
    (d) Prior Award.--The Medal of Honor may be awarded under this 
section for service for which a Distinguished-Service Cross, or other 
award, has been awarded.
    SEC. 562. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN 
      DECORATIONS TO SPECIFIED PERSONS.
    (a) Waiver of Time Limitation.--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 in the 
case of awards of decorations as described in subsection (b), the award 
of each such decoration having been determined by the Secretary of the 
Navy to be warranted in accordance with section 1130 of title 10, 
United States Code.
    (b) Distinguished Flying Cross.--Subsection (a) applies to awards 
of the Distinguished Flying Cross for service during World War II as 
follows:
        (1) First award.--First award, for completion of at least 20 
    qualifying combat missions, to the following members and former 
    members of the Armed Forces:
            Vernard V. Aiken of Wilmington, Vermont.
            Ira V. Babcock of Dothan, Georgia.
            George S. Barlow of Grafton, Virginia.
            Earl A. Bratton of Bodega Bay, California.
            Travis C. Cork of Leesburg, Florida.
            Herman C. Edwards of Johns Island, South Carolina.
            Norman J. Ehr of Kiel, Wisconsin.
            James M. Fitzgerald of Anchorage, Alaska.
            Raymond C. Gordon of Sherborn, Massachusetts.
            Paul L. Hitchcock of Raleigh, North Carolina.
            Harold H. Hottle of Hillsboro, Ohio.
            Samuel M. Keith of Anderson, South Carolina.
            Stanley J. Ksiadz of Cheektowaga, New York.
            Otis Lancaster of Wyoming, Michigan.
            Robert W. Lorette of Wilton, New Hampshire.
            John B. McCabe of Biglerville, Pennsylvania.
            James P. Merriman of Midland, Texas.
            The late Michael L. Michalak, formerly of Akron, New York.
            The late Edward J. Naparkowsky, formerly of Hartford, 
        Connecticut.
            Pete G. Nicora of Warren, Ohio.
            Stanley J. Orlowski of Jackson, Michigan.
            Raymond A. Peischl of Allentown, Pennsylvania.
            A. Jerome Pfeiffer of Racine, Wisconsin.
            Duane L. Rhodes of Earp, California.
            Frank V. Roach of Bloomfield, New Jersey.
            Arnold V. Rosekrans of Horseheads, New York.
            Joseph E. Seaman, Jr. of Bordentown, New Jersey.
            Richard F. Shumaker of Hilliard, Ohio.
            Luther E. Thomas of Panama City, Florida.
            Merton S. Ward of South Hamilton, Massachusetts.
            Simon L. Webb of Magnolia, Mississippi.
            Jerry W. Webster of Leander, Texas.
        (2) Second award.--Second award, for completion of at least 40 
    qualifying combat missions, to the following members and former 
    members of the Armed Forces:
            Arthur C. Adair of Grants Pass, Oregon.
            Robert B. Carnes of West Yarmouth, Massachusetts.
            Daniel K. Connors of Hampton, New Hampshire.
            Glen E. Danielson of Whittier, California.
            Ralph J. Deceuster of Dover, Ohio.
            Albert P. Emsley of Bothell, Washington.
            Urbain J. Fournier of Houma, Louisiana.
            Prescott C. Jernegan of Hemet, California.
            Stephen K. Johnson of Englewood, Florida.
            Warren E. Johnson of Vista, California.
            Elbert J. Kimble of San Francisco, California.
            George W. Knauff of Monument, Colorado.
            John W. Lincoln of Rockland, Massachusetts.
            Alan D. Marker of Sonoma, California.
            Joseph J. Oliver of White Haven, Pennsylvania.
            Shefield Phelps of Seattle, Washington.
            John B. Tagliapiri of St. Helena, California.
            Dewilles A.H.W. Schwartz of Watertown, South Dakota.
            Ray B. Stiltner of Centralia, Washington.
        (3) Third award.--Third award, for completion of at least 60 
    qualifying combat missions, to the following members and former 
    members of the Armed Forces:
            Glenn Bowers of Dillsburg, Pennsylvania.
            Arthur C. Casey of Irving, California.
            Robert J. Larsen of Gulf Breeze, Florida.
            David Mendoza of McAllen, Texas.
            William A. Nickerson of Portland, Oregon.
            Maurice F. Smith of Sequim, Washington.
        (4) Fourth award.--Fourth award, for completion of at least 80 
    qualifying combat missions, to the following members and former 
    members of the Armed Forces:
            Robert Bair of Ontario, California.
            Arvid L. Kretz of Santa Rosa, California.
            George E. McClane of Cocoa Beach, Florida.
            Orville R. Swick of Issaquah, Washington.
        (5) Fifth award.--Fifth award, for completion of at least 100 
    qualifying combat missions, to the following members and former 
    members of the Armed Forces:
            William A. Baldwin of San Clemente, California.
            George Bobb of Blackwood, New Jersey.
            John R. Conrad of Hot Springs, Arkansas.
            Herbert R. Hetrick of Roaring Springs, Pennsylvania.
            William L. Wells of Cordele, Georgia.
        (6) Sixth award.--Sixth award, for completion of at least 120 
    qualifying combat missions, to Richard L. Murray of Dallas, Texas.
    SEC. 563. REPLACEMENT OF CERTAIN AMERICAN THEATER CAMPAIGN RIBBONS.
    (a) Replacement Ribbons.--The Secretary of the Army, pursuant to 
section 3751 of title 10, United States Code, may replace any World War 
II decoration known as the American Theater Campaign Ribbon that was 
awarded to a person listed in the order described in subsection (b).
     (b) Ribbons Properly Awarded.--Any person listed in the document 
titled ``General Order Number 1'', issued by the Third Auxiliary 
Surgical Group, APO 647, United States Army, dated February 1, 1943, 
shall be considered to have been properly awarded the American Theater 
Campaign Ribbon for service during World War II.

                       Subtitle H--Other Matters

SEC. 571. HATE CRIMES IN THE MILITARY.

    (a) Human Relations Training.--(1) The Secretary of Defense shall 
ensure that the Secretary of each military department conducts ongoing 
programs for human relations training for all members of the Armed 
Forces under the jurisdiction of the Secretary. Matters to be covered 
by such training include race relations, equal opportunity, opposition 
to gender discrimination, and sensitivity to ``hate group'' activity. 
Such training shall be provided during basic training (or other initial 
military training) and on a regular basis thereafter.
    (2) The Secretary of Defense shall also ensure that unit commanders 
are aware of their responsibilities in ensuring that impermissible 
activity based upon discriminatory motives does not occur in units 
under their command.
    (b) Information To Be Provided to Prospective Recruits.--The 
Secretary of Defense shall ensure that each individual preparing to 
enter an officer accession program or to execute an original enlistment 
agreement is provided information concerning the meaning of the oath of 
office or oath of enlistment for service in the Armed Forces in terms 
of the equal protection and civil liberties guarantees of the 
Constitution, and each such individual shall be informed that if 
supporting those guarantees is not possible personally for that 
individual, then that individual should decline to enter the Armed 
Forces.
    (c) Annual Survey.--(1) Section 451 of title 10, United States 
Code, is amended to read as follows:
``Sec. 451. Race relations, gender discrimination, and hate group 
    activity: annual survey and report
    ``(a) Annual Survey.--The Secretary of Defense shall carry out an 
annual survey to measure the state of racial, ethnic, and gender issues 
and discrimination among members of the Armed Forces serving on active 
duty and the extent (if any) of activity among such members that may be 
seen as so-called `hate group' activity. The survey shall solicit 
information on therace relations and gender relations climate in the 
Armed Forces, including--
        ``(1) indicators of positive and negative trends of relations 
    among all racial and ethnic groups and between the sexes;
        ``(2) the effectiveness of Department of Defense policies 
    designed to improve race, ethnic, and gender relations; and
        ``(3) the effectiveness of current processes for complaints on 
    and investigations into racial, ethnic, and gender discrimination.
    ``(b) Implementing Entity.--The Secretary shall carry out each 
annual survey through the entity in the Department of Defense known as 
the Armed Forces Survey on Race/Ethnic Issues.
    ``(c) Reports to Congress.--Upon completion of each annual survey 
under subsection (a), the Secretary shall submit to Congress a report 
containing the results of the survey.''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 22 of such title is amended to read as 
follows:

``451. Race relations, gender discrimination, and hate group activity: 
annual survey and report.''.

SEC. 572. DISABILITY COVERAGE FOR MEMBERS GRANTED EXCESS LEAVE FOR 
              EDUCATIONAL OR EMERGENCY PURPOSES.

    (a) Eligibility for Retirement.--Section 1201 of title 10, United 
States Code, is amended--
        (1) by striking out the matter preceding paragraph (1) and 
    inserting in lieu thereof the following:
    ``(a) Retirement.--Upon a determination by the Secretary concerned 
that a member described in subsection (c) is unfit to perform the 
duties of the member's office, grade, rank, or rating because of 
physical disability incurred while entitled to basic pay or while 
absent as described in subsection (c)(3), the Secretary may retire the 
member, with retired pay computed under section 1401 of this title, if 
the Secretary also makes the determinations with respect to the member 
and that disability specified in subsection (b).
    ``(b) Required Determinations of Disability.--Determinations 
referred to in subsection (a) are determinations by the Secretary 
that--''; and
        (2) by adding at the end the following:
    ``(c) Eligible Members.--This section and sections 1202 and 1203 of 
this title apply to the following members:
        ``(1) A member of a regular component of the armed forces 
    entitled to basic pay.
        ``(2) Any other member of the armed forces entitled to basic 
    pay who has been called or ordered to active duty (other than for 
    training under section 10148(a) of this title) for a period of more 
    than 30 days.
        ``(3) Any other member of the armed forces who is on active 
    duty but is not entitled to basic pay by reason of section 502(b) 
    of title 37 due to authorized absence (A) to participate in an 
    educational program, or (B) for an emergency purpose, as determined 
    by the Secretary concerned.''.
    (b) Eligibility for Placement on Temporary Disability Retirement 
List.--Section 1202 of title 10, United States Code, is amended by 
striking out ``a member of a regular component'' and all that follows 
through ``more than 30 days,'' and inserting in lieu thereof ``a member 
described in section 1201(c) of this title''.
    (c) Eligibility for Separation.--Section 1203 of title 10, United 
States Code, is amended by striking out the matter preceding paragraph 
(1) and inserting in lieu thereof the following:
    ``(a) Separation.--Upon a determination by the Secretary concerned 
that a member described in section 1201(c) of this title is unfit to 
perform the duties of the member's office, grade, rank, or rating 
because of physical disability incurred while entitled to basic pay or 
while absent as described in section 1201(c)(3) of this title, the 
member may be separated from the member's armed force, with severance 
pay computed under section 1212 of this title, if the Secretary also 
makes the determinations with respect to the member and that disability 
specified in subsection (b).
    ``(b) Required Determinations of Disability.--Determinations 
referred to in subsection (a) are determinations by the Secretary 
that--''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply with 
respect to physical disabilities incurred on or after such date.
    SEC. 573. CLARIFICATION OF AUTHORITY OF A RESERVE JUDGE ADVOCATE TO 
      ACT AS A MILITARY NOTARY PUBLIC WHEN NOT IN A DUTY STATUS.
    Section 1044a(b) of title 10, United States Code, is amended--
        (1) in paragraph (1), by striking out ``on active duty or 
    performing inactive-duty training'' and inserting in lieu thereof 
    ``, including reserve judge advocates when not in a duty status'';
        (2) in paragraph (3), by striking out ``adjutants on active 
    duty or performing inactive-duty training'' and inserting in lieu 
    thereof ``adjutants, including reserve members when not in a duty 
    status''; and
        (3) in paragraph (4), by striking out ``persons on active duty 
    or performing inactive-duty training'' and inserting in lieu 
    thereof ``members of the armed forces, including reserve members 
    when not in a duty status,''.
    SEC. 574. PANEL ON JURISDICTION OF COURTS-MARTIAL FOR THE NATIONAL 
      GUARD WHEN NOT IN FEDERAL SERVICE.
    (a) Establishment.--The Secretary of Defense shall establish a 
panel to review the various authorities for court-martial and 
nonjudicial punishment jurisdiction for the National Guard not in 
Federal service and the use of those authorities.
    (b) Membership.--The Secretary shall appoint the members of the 
panel so as to ensure representation of the following:
        (1) The State Adjutants General of the National Guard.
        (2) The State Attorneys General.
        (3) The Joint Service Committee on Military Justice of the 
    Department of Defense.
    (c) Duties.--Matters reviewed by the panel shall include the 
following:
        (1) The extent of the use of court-martial and nonjudicial 
    punishment authority for the National Guard not in Federal service.
        (2) The extent to which the authority used is--
            (A) authority under title 32, United States Code; or
            (B) authority under State law.
    (d) Report.--(1) Not later than February 1, 1997, the panel shall 
submit a report on the panel's findings and conclusions to the 
Secretary of Defense.
    (2) The report shall include recommended legislation for amending 
title 32, United States Code--
        (A) to increase the uniformity in State use of courts-martial 
    and nonjudicial punishment for the National Guard when not in 
    Federal service; and
        (B) to achieve increased comparability between the court-
    martial and nonjudicial punishment procedures that are applicable 
    to the National Guard not in Federal service and the court-martial 
    and nonjudicial punishment procedures that are applicable under the 
    Uniform Code of Military Justice to the National Guard in Federal 
    service.
    (e) Submission of Report to Congress.--Not later than March 1, 
1997, the Secretary of Defense shall submit to Congress the report of 
the panel under subsection (d) together with the views of the Secretary 
regarding the report and the matters covered in the report.
    SEC. 575. AUTHORITY TO EXPAND LAW ENFORCEMENT PLACEMENT PROGRAM TO 
      INCLUDE FIREFIGHTERS.
    Section 1152(g) of title 10, United States Code, is amended--
        (1) by striking out ``(g) Conditional Expansion of Placement to 
    Include Firefighters.--(1) Subject to paragraph (2), the'' and 
    inserting in lieu thereof ``(g) Authority To Expand Placement To 
    Include Firefighters.--The''; and
        (2) in paragraph (2)--
            (A) by striking out the first sentence; and
            (B) in the second sentence, by inserting ``authorized by 
        this subsection'' after ``expansion''.
    SEC. 576. IMPROVEMENTS TO PROGRAM TO ASSIST SEPARATED MILITARY AND 
      CIVILIAN PERSONNEL TO OBTAIN EMPLOYMENT AS TEACHERS OR TEACHERS' 
      AIDES.
    (a) Program for Separated Members.--(1) Section 1151 of title 10, 
United States Code, is amended--
        (A) in subsection (f)(2), by striking out ``five school years'' 
    in subparagraphs (A) and (B) and inserting in lieu thereof ``two 
    school years''; and
        (B) in subsection (h)(3)(A), by striking out ``five consecutive 
    school years'' and inserting in lieu thereof ``two consecutive 
    school years''.
    (2) Subsection (g)(2) of such section is amended--
        (A) by striking out the comma after ``section 1174a of this 
    title'' and inserting in lieu thereof ``or''; and
        (B) by striking out ``, or retires pursuant to the authority 
    provided in section 4403 of the National Defense Authorization Act 
    for fiscal year 1993 (Public Law 102-484; 10 U.S.C. 1293 note)''.
    (3) Subsection (h)(3)(B) of such section is amended--
        (A) in clause (i), by striking out ``$25,000'' and inserting in 
    lieu thereof ``$17,000'';
        (B) in clause (ii)--
            (i) by striking out ``40 percent'' and inserting in lieu 
        thereof ``25 percent''; and
            (ii) by striking out ``$10,000'' and inserting in lieu 
        thereof ``$8,000''; and
        (C) by striking out clauses (iii), (iv), and (v).
    (b) Separated Civilian Employees of the Department of Defense.--
Section 1598(d)(2) of such title is amended by striking out ``five 
school years'' in subparagraphs (A) and (B) and inserting in lieu 
thereof ``two school years''.
    (c) Displaced Department of Defense Contractor Employees.--Section 
2410j(f)(2) of such title is amended by striking out ``five school 
years'' in subparagraphs (A) and (B) and inserting in lieu thereof 
``two school years''.
    (d) Savings Provision.--The amendments made by this section do not 
affect obligations under agreements entered into in accordance with 
section 1151, 1598, or 2410j of title 10, United States Code, before 
the date of the enactment of this Act.
    SEC. 577. RETIREMENT AT GRADE TO WHICH SELECTED FOR PROMOTION WHEN 
      A PHYSICAL DISABILITY IS FOUND AT ANY PHYSICAL EXAMINATION.
    Section 1372 of title 10, United States Code, is amended by 
striking out ``his physical examination for promotion'' in paragraphs 
(3) and (4) and inserting in lieu thereof ``a physical examination''.

SEC. 578. REVISIONS TO MISSING PERSONS AUTHORITIES.

    (a) Repeal of Applicability of Authorities to Department of Defense 
Civilian Employees and Contractor Employees.--(1) Section 1501 of title 
10, United States Code, is amended--
        (A) in subsection (c)--
            (i) by striking out ``applies in the case of'' and all that 
        follows through ``(1) Any member'' and inserting in lieu 
        thereof ``applies in the case of any member''; and
            (ii) by striking out paragraph (2); and
        (B) by striking out subsection (f).
    (2) Section 1503(c) of such title is amended--
        (A) in paragraph (1), by striking out ``one individual 
    described in paragraph (2)'' and inserting in lieu thereof ``one 
    military officer'';
        (B) by striking out paragraph (2); and
        (C) by redesignating paragraphs (3) and (4) as paragraphs (2) 
    and (3), respectively.
    (3) Section 1504(d) of such title is amended--
        (A) by striking out the text of paragraph (1) and inserting in 
    lieu thereof the following new text: ``A board appointed under this 
    section shall be composed of at least three members who are 
    officers having the grade of major or lieutenant commander or 
    above.''; and
        (B) in paragraph (4), by striking out ``section 1503(c)(4)'' 
    and inserting in lieu thereof ``section 1503(c)(3)''.
    (4) Paragraph (1) of section 1513 of such title is amended to read 
as follows:
        ``(1) The term `missing person' means a member of the armed 
    forces on active duty who is in a missing status.''.
    (b) Report on Preliminary Assessment of Status.--(1) Section 1502 
of such title is amended--
        (A) in subsection (a)(2)--
            (i) by striking out ``48 hours'' and inserting in lieu 
        thereof ``10 days''; and
            (ii) by striking out ``theater component commander with 
        jurisdiction over the missing person'' and inserting in lieu 
        thereof ``Secretary concerned'';
        (B) by striking out subsection (b);
        (C) by redesignating subsection (c) as subsection (b); and
        (D) in subsection (b), as so redesignated, by striking out the 
    second sentence.
    (2) Section 1503(a) of such title is amended by striking out 
``section 1502(b)'' and inserting in lieu thereof ``section 1502(a)''.
    (3) Section 1513 of such title is amended by striking out paragraph 
(8).
    (c) Frequency of Subsequent Reviews.--Subsection (b) of section 
1505 of such title is amended to read as follows:
    ``(b) Frequency of Subsequent Reviews.--The Secretary concerned 
shall conduct inquiries into the whereabouts and status of a person 
under subsection (a) upon receipt of information that may result in a 
change of status of the person. The Secretary concerned shall appoint a 
board to conduct such inquiries.''.
    (d) Repeal of Statutory Penalties for Wrongful Withholding of 
Information.--Section 1506 of such title is amended--
        (1) by striking out subsection (e); and
        (2) by redesignating subsection (f) as subsection (e).
    (e) Information To Accompany Recommendation of Status of Death.--
Section 1507(b) of such title is amended by striking out paragraphs (3) 
and (4).
    (f) Scope of Preenactment Review.--(1) Section 1509 of such title 
is amended--
        (A) by striking out subsection (c); and
        (B) by redesignating subsection (d) as subsection (c).
    (2)(A) The heading of such section is amended by striking out ``, 
special interest''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 76 of such title is amended by striking out 
``, special interest''.

      Subtitle I--Commissioned Corps of the Public Health Service

    SEC. 581. APPLICABILITY TO PUBLIC HEALTH SERVICE OF PROHIBITION ON 
      CREDITING CADET OR MIDSHIPMEN SERVICE AT THE SERVICE ACADEMIES.
    (a) Prohibition on Counting Enlisted Service Performed While at 
Service Academy.--Subsection (a) of section 971 of title 10, United 
States Code, is amended by inserting before the period at the end the 
following: ``or an officer in the Commissioned Corps of the Public 
Health Service''.
    (b) Prohibition on Counting Service as a Cadet or Midshipman.--
Subsection (b) of such section is amended to read as follows:
    ``(b) Prohibition on Counting Service as a Cadet or Midshipman.--In 
computing length of service for any purpose, service as a cadet or 
midshipman may not be credited to any of the following officers:
        ``(1) An officer of the Navy or Marine Corps.
        ``(2) A commissioned officer of the Army or Air Force.
        ``(3) An officer of the Coast Guard.
        ``(4) An officer in the commissioned corps of the Public Health 
    Service.''.
    (c) Technical Amendments.--(1) Such section is further amended by 
adding at the end the following new subsection:
    ``(c) Service as a Cadet or Midshipman Defined.--In this section, 
the term `service as a cadet or midshipman' means--
        ``(1) service as a cadet at the United States Military Academy, 
    United States Air Force Academy, or United States Coast Guard 
    Academy; or
        ``(2) service as a midshipman at the United States Naval 
    Academy.''.
    (2) Subsection (a) of such section is further amended--
        (A) by inserting ``Prohibition on Counting Enlisted Service 
    Performed While at Service Academy or in Naval Reserve.--'' after 
    ``(a)''; and
        (B) by striking out ``while also serving'' and all that follows 
    through ``Naval Academy or'' and inserting in lieu thereof ``while 
    also performing service as a cadet or midshipman or serving as a 
    midshipman''.
    (3) The heading of such section, and the item relating to such 
section in the table of sections at the beginning of chapter 49 of such 
title, are amended by striking out the seventh word.
    SEC. 582. EXCEPTION TO STRENGTH LIMITATIONS FOR PUBLIC HEALTH 
      SERVICE OFFICERS ASSIGNED TO THE DEPARTMENT OF DEFENSE.
    Section 206 of the Public Health Service Act (42 U.S.C. 207) is 
amended by adding at the end the following new subsection:
    ``(f) In computing the maximum number of commissioned officers of 
the Public Health Service authorized by law or administrative 
determination to serve on active duty, there may be excluded from such 
computation officers who are assigned to duty in the Department of 
Defense.''.
    SEC. 583. AUTHORITY TO PROVIDE LEGAL ASSISTANCE TO PUBLIC HEALTH 
      SERVICE OFFICERS.
    (a) Legal Assistance Available.--Subsection (a) of section 1044 of 
title 10, United States Code, is amended by striking out paragraph (3) 
and inserting in lieu thereof the following:
        ``(3) Officers of the commissioned corps of the Public Health 
    Service who are on active duty or entitled to retired or equivalent 
    pay.
        ``(4) Dependents of members and former members described in 
    paragraphs (1), (2), and (3).''.
    (b) Limitation on Assistance.--Subsection (c) of such section is 
amended--
        (1) by striking out ``armed forces'' and inserting in lieu 
    thereof ``uniformed services described in subsection (a)''; and
        (2) by inserting ``such'' after ``dependent of''.
    (c) Clarifying Amendments.--Subsection (a) of such section is 
further amended by striking out ``under his jurisdiction'' in 
paragraphs (1) and (2).
    (d) Stylistic Amendments.--Subsection (a) of such section is 
further amended--
        (1) in the matter preceding paragraph (1), by striking out 
    ``to--'' and inserting in lieu thereof ``to the following 
    persons:'';
        (2) by capitalizing the first letter of the first word of 
    paragraphs (1) and (2);
        (3) by striking out the semicolon at the end of paragraph (1) 
    and inserting in lieu thereof a period; and
        (4) by striking out ``; and'' at the end of paragraph (2) and 
    inserting in lieu thereof a period.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.
Sec. 602. Adjustment of rate of cadet and midshipman pay.
Sec. 603. Pay of senior noncommissioned officers while hospitalized.
Sec. 604. Availability of basic allowance for quarters for certain 
members without dependents who serve on sea duty.
Sec. 605. Uniform applicability of discretion to deny an election not to 
occupy Government quarters.
Sec. 606. Establishment of minimum monthly amount of variable housing 
allowance for high housing cost areas.
Sec. 607. Family separation allowance for members separated by military 
orders from spouses who are members.
Sec. 608. Waiver of time limitations for claim for pay and allowances.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
authorities for Reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
authorities for nurse officer candidates, registered nurses, and nurse 
anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
bonuses and special pays.
Sec. 614. Special pay for certain Public Health Service officers.
Sec. 615. Special incentives to recruit and retain dental officers.
Sec. 616. Foreign language proficiency pay for Public Health Service and 
National Oceanic and Atmospheric Administration officers.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at 
Government expense.
Sec. 622. Dislocation allowance at a rate equal to two and one-half 
months basic allowance for quarters.
Sec. 623. Allowance for travel performed in connection with leave 
between consecutive overseas tours.
Sec. 624. Funding for transportation of household effects of Public 
Health Service officers.

     Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 631. Effective date for military retiree cost-of-living adjustment 
for fiscal year 1998.
Sec. 632. Clarification of initial computation of retiree COLAs after 
retirement.
Sec. 633. Suspension of payment of retired pay of members who are absent 
from the United States to avoid prosecution.
Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.
Sec. 635. Increases in Survivor Benefit Plan contributions to be 
effective concurrently with payment of retired pay cost-of-living 
increases.
Sec. 636. Amendments to the Uniformed Services Former Spouses' 
Protection Act.
Sec. 637. Prevention of circumvention of court order by waiver of 
retired pay to enhance civil service retirement annuity.
Sec. 638. Administration of benefits for so-called minimum income 
widows.

                        Subtitle E--Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer 
pay.
Sec. 652. Reimbursement for adoption expenses incurred in adoptions 
through private placements.
Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from 
certain separation pay.
Sec. 654. Technical correction clarifying limitation on furnishing 
clothing or allowances for enlisted National Guard technicians.
Sec. 655. Technical correction to prior authority for payment of back 
pay to certain persons.
Sec. 656. Compensation for persons awarded prisoner of war medal who did 
not previously receive compensation as a prisoner of war.
Sec. 657. Payments to certain persons captured and interned by North 
Vietnam.

                     Subtitle A--Pay and Allowances

SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1997.

    (a) Waiver of Section 1009 Adjustment.--Any adjustment required by 
section 1009 of title 37, United States Code, in elements of 
compensation of members of the uniformed services to become effective 
during fiscal year 1997 shall not be made.
    (b) Increase in Basic Pay and BAS.--Effective on January 1, 1997, 
the rates of basic pay and basic allowance for subsistence of members 
of the uniformed services are increased by 3.0 percent.
    (c) Increase in BAQ.--Effective on January 1, 1997, the rates of 
basic allowance for quarters of members of the uniformed services are 
increased by 4.6 percent.

SEC. 602. ADJUSTMENT OF RATE OF CADET AND MIDSHIPMAN PAY.

    Section 203(c) of title 37, United States Code, is amended--
        (1) by striking out paragraph (2); and
        (2) in paragraph (1), by striking out ``(1)''.
    SEC. 603. PAY OF SENIOR NONCOMMISSIONED OFFICERS WHILE 
      HOSPITALIZED.
    (a) Pay During Hospitalization.--Section 210 of title 37, United 
States Code, is amended--
        (1) by redesignating subsection (b) as subsection (c); and
        (2) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) A noncommissioned officer of an armed force who is 
hospitalized and who, during or immediately before such 
hospitalization, completed service as the senior enlisted member of 
that armed force, shall continue to be entitled, for not more than 180 
days while so hospitalized, to the rate of basic pay authorized for the 
senior enlisted member of that armed force.''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:

``Sec. 210. Pay of senior enlisted members during terminal leave and 
            while hospitalized''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 3 of title 37, United States Code, is amended 
to read as follows:

``210. Pay of senior enlisted members during terminal leave and while 
          hospitalized.''.

SEC. 604. AVAILABILITY OF BASIC ALLOWANCE FOR QUARTERS FOR CERTAIN 
              MEMBERS WITHOUT DEPENDENTS WHO SERVE ON SEA DUTY.

    (a) Entitlement of Single Members Above Grade E-5.--Section 
403(c)(2) of title 37, United States Code, is amended--
        (1) by striking out ``A member'' in the first sentence and 
    inserting in lieu thereof ``(A) Except as provided in subparagraphs 
    (B) and (C), a member''; and
        (2) by striking out the second sentence.
    (b) Entitlement of Certain Single Members in Grade E-5.--Such 
section is further amended by adding at the end the following new 
subparagraph:
    ``(B) Under regulations prescribed by the Secretary concerned, the 
Secretary may authorize the payment of a basic allowance for quarters 
to a member of a uniformed service without dependents who is serving in 
pay grade E-5 and is assigned to sea duty. In prescribing regulations 
under this subparagraph, the Secretary concerned shall consider the 
availability of quarters for members serving in pay grade E-5.''.
    (c) Entitlement When Both Spouses in Grades Below Grade E-6 Are 
Assigned to Sea Duty.--Such section is further amended by inserting 
after subparagraph (B), as added by subsection (b), the following new 
subparagraph:
    ``(C) Notwithstanding section 421 of this title, two members of the 
uniformed services in a pay grade below pay grade E-6 who are married 
to each other, have no other dependents, and are simultaneously 
assigned to sea duty are jointly entitled to one basic allowance for 
quarters during the period of such simultaneous sea duty. The amount of 
the allowance shall be based on the without dependents rate for the pay 
grade of the senior member of the couple. However, this subparagraph 
shall not apply to a couple if one or both of the members are entitled 
to a basic allowance for quarters under subparagraph (B).''.
    (d) Conforming Amendment Regarding Variable Housing Allowance.--
Section 403a(b)(2)(C) of title 37, United States Code, is amended by 
striking out ``E-6'' and inserting in lieu thereof ``E-4''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on July 1, 1997.
    SEC. 605. UNIFORM APPLICABILITY OF DISCRETION TO DENY AN ELECTION 
      NOT TO OCCUPY GOVERNMENT QUARTERS.
    Section 403(b)(3) of title 37, United States Code, is amended by 
striking out ``A member'' and inserting in lieu thereof ``Subject to 
the provisions of subsection (j), a member''.
    SEC. 606. ESTABLISHMENT OF MINIMUM MONTHLY AMOUNT OF VARIABLE 
      HOUSING ALLOWANCE FOR HIGH HOUSING COST AREAS.
    (a) Minimum Monthly Amount of Allowance.--Subsection (c) of section 
403a of title 37, United States Code, is amended by striking out 
paragraph (1) and inserting in lieu thereof the following new 
paragraph:
    ``(1) The monthly amount of a variable housing allowance under this 
section for a member of a uniformed service with respect to an area is 
equal to the greater of the following amounts:
        ``(A) An amount equal to the difference between--
            ``(i) the median monthly cost of housing in that area for 
        members of the uniformed services serving in the same pay grade 
        and with the same dependency status as that member; and
            ``(ii) 80 percent of the median monthly cost of housing in 
        the United States for members of the uniformed services serving 
        in the same pay grade and with the same dependency status as 
        that member.
        ``(B) An amount equal to the difference between--
            ``(i) the adequate housing allowance floor determined by 
        the Secretary of Defense for all members of the uniformed 
        services in that area entitled to a variable housing allowance 
        under this section; and
            ``(ii) the monthly basic allowance for quarters for members 
        of the uniformed services serving in the same pay grade and 
        with the same dependency status as that member.''.
    (b) Adequate Housing Allowance Floor.--Such subsection is further 
amended by adding at the end the following new paragraph:
    ``(7)(A) For purposes of paragraph (1)(B)(i), the Secretary of 
Defense shall establish an adequate housing allowance floor for members 
of the uniformed services in an area as a selected percentage, not to 
exceed 85 percent, of the cost of adequate housing in that area based 
on an index of housing costs selected by the Secretary of Defense from 
among the following:
        ``(i) The fair market rentals established annually by the 
    Secretary of Housing and Urban Development under section 8(c)(1) of 
    the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(1)).
        ``(ii) An index developed in the private sector that the 
    Secretary of Defense determines is comparable to the fair market 
    rentals referred to in clause (i) and is appropriate for use to 
    determine the adequate housing allowance floor.
    ``(B) The Secretary of Defense shall carry out this paragraph in 
consultation with the Secretary of Transportation, the Secretary of 
Commerce, and the Secretary of Health and Human Services.''.
    (c) Effect on Total Amount Available for Allowance.--Subsection 
(d)(3) of such section is amended in the second sentence by striking 
out ``the second sentence of subsection (c)(3)'' and inserting in lieu 
thereof ``paragraph (1)(B) of subsection (c) and the second sentence of 
paragraph (3) of that subsection''.
    (d) Conforming Amendments.--Subsection (c) of such section is 
further amended--
        (1) in paragraph (3), by striking out ``this subsection'' in 
    the first sentence and inserting in lieu thereof ``paragraph (1)(A) 
    or the minimum amount of a variable housing allowance under 
    paragraph (1)(B)''; and
        (2) in paragraph (5), by inserting ``or minimum amount of a 
    variable housing allowance'' after ``costs of housing''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1997, except that the Secretary of Defense may 
delay implementation of the requirements imposed by the amendments to 
such later date as the Secretary considers appropriate upon publication 
of notice to that effect in the Federal Register.
    SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS SEPARATED BY 
      MILITARY ORDERS FROM SPOUSES WHO ARE MEMBERS.
    (a) Additional Basis for Allowance.--Paragraph (1) of section 
427(b) of title 37, United States Code, is amended--
        (1) by striking out ``or'' at the end of subparagraph (B);
        (2) by striking out the period at the end of subparagraph (C) 
    and inserting in lieu thereof ``; or''; and
        (3) by adding at the end the following new subparagraph:
        ``(D) the member is married to a member of a uniformed service, 
    the member has no dependent other than the spouse, the two members 
    are separated by reason of the execution of military orders, and 
    the two members were residing together immediately before being 
    separated by reason of execution of military orders.''.
    (b) Conforming Amendment.--Such section is further amended by 
adding at the end the following new paragraph:
    ``(5) Section 421 of this title does not apply to bar an 
entitlement to an allowance under paragraph (1)(D). However, not more 
than one monthly allowance may be paid with respect to a married couple 
under paragraph (1)(D) for any month.''.
    SEC. 608. WAIVER OF TIME LIMITATIONS FOR CLAIM FOR PAY AND 
      ALLOWANCES.
    Section 3702 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e)(1) Upon the request of the Secretary concerned (as defined in 
section 101 of title 37, United States Code), the Comptroller General 
may waive the time limitations set forth in subsection (b) or (c) in 
the case of a claim for pay or allowances provided under title 37 and, 
subject to paragraph (2), settle the claim.
    ``(2) Payment of a claim settled under paragraph (1) shall be 
subject to the availability of appropriations for payment of that 
particular claim.
    ``(3) This subsection does not apply to a claim in excess of 
$25,000.''.

           Subtitle B--Bonuses and Special and Incentive Pays

    SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
      AUTHORITIES FOR RESERVE FORCES.
    (a) Special Pay for Critically Short Wartime Health Specialists.--
Section 302g(f) of title 37, United States Code, is amended by striking 
out ``September 30, 1997'' and inserting in lieu thereof ``September 
30, 1998''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of title 37, United States Code, is 
amended by striking out ``September 30, 1997'' and inserting in lieu 
thereof ``September 30, 1998''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking out 
``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1998''.
    (g) Prior Service Enlistment Bonus.--Section 308i(i) of title 37, 
United States Code, is amended by striking out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998''.
    SEC. 612. ONE-YEAR 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 out ``September 
30, 1997'' and inserting in lieu thereof ``September 30, 1998''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 
30, 1997'' and inserting in lieu thereof ``September 30, 1998''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking out 
``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1998''.
    SEC. 613. ONE-YEAR 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 out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (c) Enlistment Bonuses for Critical Skills.--Sections 308a(c) and 
308f(c) of title 37, United States Code, are each amended by striking 
out ``September 30, 1997'' and inserting in lieu thereof ``September 
30, 1998''.
    (d) Special Pay for Nuclear Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking out ``September 30, 1997'' and inserting in lieu 
thereof ``September 30, 1998''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of 
title 37, United States Code, is amended by striking out ``October 1, 
1997'' and inserting in lieu thereof ``October 1, 1998''.
    (g) 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 out ``October 1, 1997'' and 
inserting in lieu thereof ``October 1, 1998''.
    SEC. 614. SPECIAL PAY FOR CERTAIN PUBLIC HEALTH SERVICE OFFICERS.
    (a) Optometrists.--Section 302a(b) of title 37, United States Code, 
is amended--
        (1) in paragraph (2)--
            (A) by striking out ``an armed force'' in the matter 
        preceding subparagraph (A) and inserting in lieu thereof ``a 
        uniformed service''; and
            (B) by striking out ``of the military department'' in 
        subparagraph (C); and
        (2) in paragraph (4), by striking out ``of the military 
    department''.
    (b) Nonphysician Health Care Providers.--Section 302c(d) of title 
37, United States Code, is amended--
        (1) in the matter preceding paragraph (1), by striking out 
    ``Secretary of Defense'' and inserting in lieu thereof ``Secretary 
    concerned''; and
        (2) in paragraph (1)--
            (A) by striking out ``or'' the third place it appears; and
            (B) by inserting before the period at the end the 
        following: ``, or an officer in the Regular or Reserve Corps of 
        the Public Health Service''.
    SEC. 615. SPECIAL INCENTIVES TO RECRUIT AND RETAIN DENTAL OFFICERS.
    (a) Variable, Additional, and Board Certified Special Pays for 
Active Duty Dental Officers.--Section 302b(a) of title 37, United 
States Code, is amended--
        (1) in paragraph (2)--
            (A) in subparagraph (A), by striking out ``$1,200'' and 
        inserting in lieu thereof ``$3,000'';
            (B) in subparagraph (B), by striking out ``$2,000'' and 
        inserting in lieu thereof ``$7,000''; and
            (C) in subparagraph (C), by striking out ``$4,000'' and 
        inserting in lieu thereof ``$7,000'';
        (2) in paragraph (4), by striking out subparagraphs (A), (B), 
    and (C) and inserting in lieu thereof the following:
        ``(A) $4,000 per year, if the officer has less than three years 
    of creditable service.
        ``(B) $6,000 per year, if the officer has at least three but 
    less than 14 years of creditable service.
        ``(C) $8,000 per year, if the officer has at least 14 but less 
    than 18 years of creditable service.
        ``(D) $10,000 per year, if the officer has at least 18 or more 
    years of creditable service.''; and
        (3) in paragraph (5), by striking out subparagraphs (A), (B), 
    and (C) and inserting in lieu thereof the following:
        ``(A) $2,500 per year, if the officer has less than 10 years of 
    creditable service.
        ``(B) $3,500 per year, if the officer has at least 10 but less 
    than 12 years of creditable service.
        ``(C) $4,000 per year, if the officer has at least 12 but less 
    than 14 years of creditable service.
        ``(D) $5,000 per year, if the officer has at least 14 but less 
    than 18 years of creditable service.
        ``(E) $6,000 per year, if the officer has 18 or more years of 
    creditable service.''.
    (b) Reserve Dental Officers Special Pay.--Section 302b of title 37, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(h) Reserve Dental Officers Special Pay.--(1) A reserve dental 
officer described in paragraph (2) is entitled to special pay at the 
rate of $350 a month for each month of active duty, including active 
duty in the form of annual training, active duty for training, and 
active duty for special work.
    ``(2) A reserve dental officer referred to in paragraph (1) is a 
reserve officer who--
        ``(A) is an officer of the Dental Corps of the Army or the Navy 
    or an officer of the Air Force designated as a dental officer; and
        ``(B) is on active duty under a call or order to active duty 
    for a period of less than one year.''.
    (c) Accession Bonus for Dental School Graduates Who Enter the Armed 
Forces.--(1) Chapter 5 of title 37, United States Code, is amended by 
inserting after section 302g the following new section:

``Sec. 302h. Special pay: accession bonus for dental officers

    ``(a) Accession Bonus Authorized.--(1) A person who is a graduate 
of an accredited dental school and who, during the period beginning on 
the date of the enactment of this section, and ending on September 30, 
2002, executes a written agreement described in subsection (c) to 
accept a commission as an officer of the armed forces and remain on 
active duty for a period of not less than four years may, upon the 
acceptance of the agreement by the Secretary concerned, be paid an 
accession bonus in an amount determined by the Secretary concerned.
    ``(2) The amount of an accession bonus under paragraph (1) may not 
exceed $30,000.
    ``(b) 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 an officer, received financial assistance from the 
    Department of Defense to pursue a course of study in dentistry; or
        ``(2) the Secretary concerned determines that the person is not 
    qualified to become and remain certified and licensed as a dentist.
    ``(c) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the armed service concerned, 
the person executing the agreement will be assigned to duty, for the 
period of obligated service covered by the agreement, as an officer of 
the Dental Corps of the Army or the Navy or an officer of the Air Force 
designated as a dental officer.
    ``(d) Repayment.--(1) An officer who receives a payment under 
subsection (a) and who fails to become and remain certified or licensed 
as a dentist 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 imposed 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 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 this subsection. This paragraph 
applies to any case commenced under title 11 after the date of the 
enactment of this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 302g the 
following new item:

``302h. Special pay: accession bonus for dental officers.''.

    (3) Section 303a of title 37, United States Code, is amended by 
striking out ``302g'' each place it appears and inserting in lieu 
thereof ``302h''.
    (d) Report on Additional Activities To Increase Recruitment of 
Dentists.--Not later than April 1, 1997, the Secretary of Defense shall 
submit to Congress a report describing the feasibility of increasing 
the number of persons enrolled in the Armed Forces Health Professions 
Scholarship and Financial Assistance program who are pursuing a course 
of study in dentistry in anticipation of service as an officer of the 
Dental Corps of the Army or the Navy or an officer of the Air Force 
designated as a dental officer.
    (e) Stylistic Amendments.--Section 302b of title 37, United States 
Code, is amended--
        (1) in subsection (a), by inserting ``Variable, Additional, and 
    Board Certification Special Pay.--'' after ``(a)'';
        (2) in subsection (b), by inserting ``Active-Duty Agreement.--
    '' after ``(b)'';
        (3) in subsection (c), by inserting ``Regulations.--'' after 
    ``(c)'';
        (4) in subsection (d), by inserting ``Frequency of Payments.--
    '' after ``(d)'';
        (5) in subsection (e), by inserting ``Refund for Period of 
    Unserved Obligated Service.--'' after ``(e)'';
        (6) in subsection (f), by inserting ``Effect of Discharge in 
    Bankruptcy.--'' after ``(f)''; and
        (7) in subsection (g), by inserting ``Determination of 
    Creditable Service.--'' after ``(g)''.
    SEC. 616. FOREIGN LANGUAGE PROFICIENCY PAY FOR PUBLIC HEALTH 
      SERVICE AND NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION 
      OFFICERS.
    (a) Eligibility.--Subsection (a) of section 316 of title 37, United 
States Code, is amended--
        (1) in the matter preceding paragraph (1), by striking out 
    ``armed forces'' and inserting in lieu thereof ``uniformed 
    services'';
        (2) in paragraph (2)--
            (A) by striking out ``Secretary of Defense'' and inserting 
        in lieu thereof ``Secretary concerned''; and
            (B) by inserting ``or public health'' after ``national 
        defense''; and
        (3) in paragraph (3)--
            (A) in subparagraph (A), by striking out ``military'' and 
        inserting in lieu thereof ``uniformed services'';
            (B) in subparagraph (C), by striking out ``military''; and
            (C) in subparagraph (D)--
                (i) by striking out ``Department of Defense'' and 
            inserting in lieu thereof ``uniformed service''; and
                (ii) by striking out ``Secretary of Defense'' and 
            inserting in lieu thereof ``Secretary concerned''.
    (b) Administration.--Subsection (d) of such section is amended--
        (1) by striking out ``his jurisdiction and'' and inserting in 
    lieu thereof ``the jurisdiction of the Secretary,''; and
        (2) by inserting before the period at the end the following: 
    ``, by the Secretary of Health and Human Services for the 
    Commissioned Corps of the Public Health Service, and by the 
    Secretary of Commerce for the National Oceanic and Atmospheric 
    Administration''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1996, and apply with respect to months beginning 
on or after such date.

            Subtitle C--Travel and Transportation Allowances

    SEC. 621. ALLOWANCE IN CONNECTION WITH SHIPPING MOTOR VEHICLE AT 
      GOVERNMENT EXPENSE.
    (a) Allowance Authorized.--Section 406(b)(1)(B) of title 37, United 
States Code, is amended by adding at the end the following: ``If clause 
(i)(I) applies to the transportation by the member of a motor vehicle 
from the old duty station, the monetary allowance under this 
subparagraph shall also cover return travel to the old duty station by 
the member or other person transporting the vehicle. In the case of 
transportation described in clause (ii), the monetary allowance shall 
also cover travel from the new duty station to the port of debarkation 
to pick up the vehicle.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1997.
    SEC. 622. DISLOCATION ALLOWANCE AT A RATE EQUAL TO TWO AND ONE-HALF 
      MONTHS BASIC ALLOWANCE FOR QUARTERS.
    (a) Allowance Authorized.--Section 407(a) of title 37, United 
States Code, is amended in the matter preceding paragraph (1) by 
striking out ``two months'' and inserting in lieu thereof ``two and 
one-half months''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1997.
    SEC. 623. ALLOWANCE FOR TRAVEL PERFORMED IN CONNECTION WITH LEAVE 
      BETWEEN CONSECUTIVE OVERSEAS TOURS.
    (a) Authority for Additional Deferral of Travel.--Section 
411b(a)(2) of title 37, United States Code, is amended by adding at the 
end the following: ``If the member is unable to undertake the travel 
before the end of such one-year period as a result of duty in 
connection with a contingency operation, the member may defer the 
travel for one additional year beginning on the date the duty of the 
member in connection with the contingency operation ends.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as of November 1, 1995.
    SEC. 624. FUNDING FOR TRANSPORTATION OF HOUSEHOLD EFFECTS OF PUBLIC 
      HEALTH SERVICE OFFICERS.
    Section 406(j) of title 37, United States Code, is amended--
        (1) in the first sentence of paragraph (1)--
            (A) by striking out ``Appropriations available'' and all 
        that follows through ``to a member'' and inserting in lieu 
        thereof ``The Secretary concerned may pay a monetary allowance 
        to a member of the armed forces or a member of the Commissioned 
        Corps of the Public Health Service''; and
            (B) by striking out ``of the military department''; and
        (2) by adding at the end the following new paragraph:
    ``(3) Appropriations available to the Department of Defense for 
providing transportation of household effects of members of the armed 
forces under subsection (b) shall be available to pay the monetary 
allowance authorized under paragraph (1) to such members. 
Appropriations available to the Department of Health and Human Services 
for providing transportation of household effects of members of the 
Commissioned Corps of the Public Health Service under subsection (b) 
shall be available to pay the monetary allowance authorized under 
paragraph (1) to such members.''.

    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

    SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING 
      ADJUSTMENT FOR FISCAL YEAR 1998.
    (a) Repeal of Adjustment of Effective Date for Fiscal Year 1998.--
Section 1401a(b)(2)(B) of title 10, United States Code, is amended--
        (1) by striking out ``(B) Special rules'' and all that follows 
    through ``In the case of'' in clause(i) and inserting in lieu 
thereof ``(B) Special rule for fiscal year 1996.--In the case of''; and
        (2) by striking out clause (ii).
    (b) Repeal of Contingent Alternative Date for Fiscal Year 1998.--
Section 631 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; 110 Stat. 364) is amended by striking out 
subsection (b).
    SEC. 632. CLARIFICATION OF INITIAL COMPUTATION OF RETIREE COLAS 
      AFTER RETIREMENT.
    (a) In General.--Section 1401a of title 10, United States Code, is 
amended by striking out subsections (c) and (d) and inserting in lieu 
thereof the following new subsections:
    ``(c) First COLA Adjustment for Members With Retired Pay Computed 
Using Final Basic Pay.--
        ``(1) First adjustment with intervening increase in basic 
    pay.--Notwithstanding subsection (b), if a person described in 
    paragraph (3) becomes entitled to retired pay based on rates of 
    monthly basic pay that became effective after the last day of the 
    calendar quarter of the base index, the retired pay of the member 
    or former member shall be increased on the effective date of the 
    next adjustment of retired pay under subsection (b) only by the 
    percent (adjusted to the nearest one-tenth of 1 percent) by which--
            ``(A) the price index for the base quarter of that year, 
        exceeds
            ``(B) the price index for the calendar quarter immediately 
        before the calendar quarter in which the rates of monthly basic 
        pay on which the retired pay is based became effective.
        ``(2) First adjustment with no intervening increase in basic 
    pay.--If a person described in paragraph (3) becomes entitled to 
    retired pay on or after the effective date of an adjustment in 
    retired pay under subsection (b) but before the effective date of 
    the next increase in the rates of monthly basic pay, the retired 
    pay of the member or former member shall be increased, effective on 
    the date the member becomes entitled to that pay, by the percent 
    (adjusted to the nearest one-tenth of 1 percent) by which--
            ``(A) the base index, exceeds
            ``(B) the price index for the calendar quarter immediately 
        before the calendar quarter in which the rates of monthly basic 
        pay on which the retired pay is based became effective.
        ``(3) Members covered.--Paragraphs (1) and (2) apply to a 
    member or former member of an armed force who first became a member 
    of a uniformed service before August 1, 1986, and whose retired pay 
    base is determined under section 1406 of this title.
    ``(d) First COLA Adjustment for Members With Retired Pay Computed 
Using High-Three.--Notwithstanding subsection (b), the retired pay of a 
member or former member of an armed force who first became a member of 
a uniformed service before August 1, 1986, and whose retired pay base 
is determined under section 1407 of this title shall be increased on 
the effective date of the first adjustment of retired pay under 
subsection (b) after the member or former member becomes entitled to 
retired pay by the percent (adjusted to the nearest one-tenth of 1 
percent) equal to the difference between the percent by which--
        ``(1) the price index for the base quarter of that year, 
    exceeds
        ``(2) the price index for the calendar quarter immediately 
    before the calendar quarter during which the member became entitled 
    to retired pay.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply only to adjustments of retired and retainer pay effective after 
the date of the enactment of this Act.
    SEC. 633. SUSPENSION OF PAYMENT OF RETIRED PAY OF MEMBERS WHO ARE 
      ABSENT FROM THE UNITED STATES TO AVOID PROSECUTION.
    (a) Development of Procedures for Suspension.--The Secretary of 
Defense shall develop uniform procedures under which the Secretary of a 
military department may suspend the payment of the retired pay of a 
member or former member of the Armed Forces during periods in which the 
member willfully remains outside the United States to avoid criminal 
prosecution or civil liability. The procedures shall address the types 
of criminal offenses and civil proceedings for which the procedures may 
be used, including the offenses specified in section 8312 of title 5, 
United States Code, and the manner by which a member, upon the return 
of the member to the United States, may obtain retired pay withheld 
during the member's absence.
    (b) Report to Congress.--The Secretary of Defense shall submit to 
Congress a report describing the procedures developed under subsection 
(a). The report shall include recommendations regarding changes to 
existing provisions of law (including section 8313 of title 5, United 
States Code) that the Secretary determines are necessary to fully 
implement the procedures.
    (c) Retired Pay Defined.--For purposes of this section, the term 
``retired pay'' means retired pay, retirement pay, retainer pay, or 
equivalent pay, payable under a statute to a member or former member of 
a uniformed service.
    (d) Effective Date.--The uniform procedures required by subsection 
(a) shall be developed not later than 30 days after the date of the 
enactment of this Act.
    SEC. 634. NONSUBSTANTIVE RESTATEMENT OF SURVIVOR BENEFIT PLAN 
      STATUTE.
    Subchapter II of chapter 73 of title 10, United States Code, is 
amended to read as follows:

                 ``SUBCHAPTER II--SURVIVOR BENEFIT PLAN

``Sec.
``1447. Definitions.
``1448. Application of Plan.
``1449. Mental incompetency of member.
``1450. Payment of annuity: beneficiaries.
``1451. Amount of annuity.
``1452. Reduction in retired pay.
``1453. Recovery of amounts erroneously paid.
``1454. Correction of administrative errors.
``1455. Regulations.

``Sec. 1447. Definitions

    ``In this subchapter:
        ``(1) Plan.--The term `Plan' means the Survivor Benefit Plan 
    established by this subchapter.
        ``(2) Standard annuity.--The term `standard annuity' means an 
    annuity provided by virtue of eligibility under section 
    1448(a)(1)(A) of this title.
        ``(3) Reserve-component annuity.--The term `reserve-component 
    annuity' means an annuity provided by virtue of eligibility under 
    section 1448(a)(1)(B) of this title.
        ``(4) Retired pay.--The term `retired pay' includes retainer 
    pay paid under section 6330 of this title.
        ``(5) Reserve-component retired pay.--The term `reserve-
    component retired pay' means retired pay under chapter 1223 of this 
    title (or under chapter 67 of this title as in effect before the 
    effective date of the Reserve Officer Personnel Management Act).
        ``(6) Base amount.--The term `base amount' means the following:
            ``(A) Full amount under standard annuity.--In the case of a 
        person who dies after becoming entitled to retired pay, such 
        term means the amount of monthly retired pay (determined 
        without regard to any reduction under section 1409(b)(2) of 
        this title) to which the person--
                ``(i) was entitled when he became eligible for that 
            pay; or
                ``(ii) later became entitled by being advanced on the 
            retired list, performing active duty, or being transferred 
            from the temporary disability retired list to the permanent 
            disability retired list.
            ``(B) Full amount under reserve-component annuity.--In the 
        case of a person who would have become eligible for reserve-
        component retired pay but for the fact that he died before 
        becoming 60 years of age, such term means the amount of monthly 
        retired pay for which the person would have been eligible--
                ``(i) if he had been 60 years of age on the date of his 
            death, for purposes of an annuity to become effective on 
            the day after his death in accordance with a designation 
            made under section 1448(e) of this title; or
                ``(ii) upon becoming 60 years of age (if he had lived 
            to that age), for purposes of an annuity to become 
            effective on the 60th anniversary of his birth in 
            accordance with a designation made under section 1448(e) of 
            this title.
            ``(C) Reduced amount.--Such term means any amount less than 
        the amount otherwise applicable under subparagraph (A) or (B) 
        with respect to an annuity provided under the Plan but which is 
        not less than $300 and which is designated by the person (with 
        the concurrence of the person's spouse, if required under 
        section 1448(a)(3) of this title) providing the annuity on or 
        before--
                ``(i) the first day for which he becomes eligible for 
            retired pay, in the case of a person providing a standard 
            annuity, or
                ``(ii) the end of the 90-day period beginning on the 
            date on which he receives the notification required by 
            section 12731(d) of this title that he has completed the 
            years of service required for eligibility for reserve-
            component retired pay, in the case of a person providing a 
            reserve-component annuity.
        ``(7) Widow.--The term `widow' means the surviving wife of a 
    person who, if not married to the person at the time he became 
    eligible for retired pay--
            ``(A) was married to him for at least one year immediately 
        before his death; or
            ``(B) is the mother of issue by that marriage.
        ``(8) Widower.--The term `widower' means the surviving husband 
    of a person who, if not married to the person at the time she 
    became eligible for retired pay--
            ``(A) was married to her for at least one year immediately 
        before her death; or
            ``(B) is the father of issue by that marriage.
        ``(9) Surviving spouse.--The term `surviving spouse' means a 
    widow or widower.
        ``(10) Former spouse.--The term `former spouse' means the 
    surviving former husband or wife of a person who is eligible to 
    participate in the Plan.
        ``(11) Dependent child.--
            ``(A) In general.--The term `dependent child' means a 
        person who--
                ``(i) is unmarried;
                ``(ii) is (I) under 18 years of age, (II) at least 18, 
            but under 22, years of age and pursuing a full-time course 
            of study or training in a high school, trade school, 
            technical or vocational institute, junior college, college, 
            university, or comparable recognized educational 
            institution, or (III) incapable of self support because of 
            a mental or physical incapacity existing before the 
            person's eighteenth birthday or incurred on or after that 
            birthday, but before the person's twenty-second birthday, 
            while pursuing such a full-time course of study or 
            training; and
                ``(iii) is the child of a person to whom the Plan 
            applies, including (I) an adopted child, and (II) a 
            stepchild, foster child, or recognized natural child who 
            lived with that person in a regular parent-child 
            relationship.
            ``(B) Special rules for college students.--For the purpose 
        of subparagraph (A), a child whose twenty-second birthday 
        occurs before July 1 or after August 31 of a calendar year, and 
        while regularly pursuing such a course of study or training, is 
        considered to have become 22 years of age on the first day of 
        July after that birthday. A child who is a student is 
        considered not to have ceased to be a student during an interim 
        between school years if the interim is not more than 150 days 
        and if the child shows to the satisfaction of the Secretary of 
        Defense that the child has a bona fide intention of continuing 
        to pursue a course of study or training in the same or a 
        different school during the school semester (or other period 
        into which the school year is divided) immediately after the 
        interim.
            ``(C) Foster children.--A foster child, to qualify under 
        this paragraph as the dependent child of a person to whom the 
        Plan applies, must, at the time of the death of that person, 
        also reside with, and receive over one-half of his support 
        from, that person, and not be cared for under a social agency 
        contract. The temporary absence of a foster child from the 
        residence of that person, while a student as described in this 
        paragraph, shall not be considered to affect the residence of 
        such a foster child.
        ``(12) Court.--The term `court' has the meaning given that term 
    by section 1408(a)(1) of this title.
        ``(13) Court order.--
            ``(A) In general.--The term `court order' means a court's 
        final decree of divorce, dissolution, or annulment or a court 
        ordered, ratified, or approved property settlement incident to 
        such a decree (including a final decree modifying the terms of 
        a previously issued decree of divorce, dissolution, annulment, 
        or legal separation, or of a court ordered, ratified, or 
        approved property settlement agreement incident to such 
        previously issued decree).
            ``(B) Final decree.--The term `final decree' means a decree 
        from which no appeal may be taken or from which no appeal has 
        been taken within the time allowed for the taking of such 
        appeals under the laws applicable to such appeals, or a decree 
        from which timely appeal has been taken and such appeal has 
        been finally decided under the laws applicable to such appeals.
            ``(C) Regular on its face.--The term `regular on its face', 
        when used in connection with a court order, means a court order 
        that meets the conditions prescribed in section 1408(b)(2) of 
        this title.

``Sec. 1448. Application of plan

    ``(a) General Rules for Participation in the Plan.--
        ``(1) Name of plan; eligible participants.--The program 
    established by this subchapter shall be known as the Survivor 
    Benefit Plan. The following persons are eligible to participate in 
    the Plan:
            ``(A) Persons entitled to retired pay.
            ``(B) Persons who would be eligible for reserve-component 
        retired pay but for the fact that they are under 60 years of 
        age.
        ``(2) Participants in the plan.--The Plan applies to the 
    following persons, who shall be participants in the Plan:
            ``(A) Standard annuity participants.--A person who is 
        eligible to participate in the Plan under paragraph (1)(A) and 
        who is married or has a dependent child when he becomes 
        entitled to retired pay, unless he elects (with his spouse's 
        concurrence, if required under paragraph (3)) not to 
        participate in the Plan before the first day for which he is 
        eligible for that pay.
            ``(B) Reserve-component annuity participants.--A person who 
        (i) is eligible to participate in the Plan under paragraph 
        (1)(B), (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, and (iii) elects to participate 
        in the Plan (and makes a designation under subsection (e)) 
        before the end of the 90-day period beginning on the date he 
        receives such notification.
    A person described in clauses (i) and (ii) of subparagraph (B) who 
    does not elect to participate in the Plan before the end of the 90-
    day period referred to in that clause remains eligible, upon 
    reaching 60 years of age and otherwise becoming entitled to retired 
    pay, to participate in the Plan in accordance with eligibility 
    under paragraph (1)(A).
        ``(3) Elections.--
            ``(A) Spousal consent for certain elections respecting 
        standard annuity.--A married person who is eligible to provide 
        a standard annuity may not without the concurrence of the 
        person's spouse elect--
                ``(i) not to participate in the Plan;
                ``(ii) to provide an annuity for the person's spouse at 
            less than the maximum level; or
                ``(iii) to provide an annuity for a dependent child but 
            not for the person's spouse.
            ``(B) Spousal consent for certain elections respecting 
        reserve-component annuity.--A married person who elects to 
        provide a reserve-component annuity may not without the 
        concurrence of the person's spouse elect--
                ``(i) to provide an annuity for the person's spouse at 
            less than the maximum level; or
                ``(ii) to provide an annuity for a dependent child but 
            not for the person's spouse.
            ``(C) Exception when spouse unavailable.--A person may make 
        an election described in subparagraph (A) or (B) without the 
        concurrence of the person's spouse if the person establishes to 
        the satisfaction of the Secretary concerned--
                ``(i) that the spouse's whereabouts cannot be 
            determined; or
                ``(ii) that, due to exceptional circumstances, 
            requiring the person to seek the spouse's consent would 
            otherwise be inappropriate.
            ``(D) Construction with former spouse election 
        provisions.--This paragraph does not affect any right or 
        obligation to elect to provide an annuity for a former spouse 
        (or for a former spouse and dependent child) under subsection 
        (b)(2).
            ``(E) Notice to spouse of election to provide former spouse 
        annuity.--If a married person who is eligible to provide a 
        standard annuity elects to provide an annuity for a former 
        spouse (or for a former spouse and dependent child) under 
        subsection (b)(2), that person's spouse shall be notified of 
        that election.
        ``(4) Irrevocability of elections.--
            ``(A) Standard annuity.--An election under paragraph (2)(A) 
        not to participate in the Plan is irrevocable if not revoked 
        before the date on which the person first becomes entitled to 
        retired pay.
            ``(B) Reserve-component annuity.--An election under 
        paragraph (2)(B) to participate in the Plan is irrevocable if 
        not revoked before the end of the 90-day period referred to in 
        that paragraph.
        ``(5) Participation by person marrying after re- tirement, 
    etc.--
            ``(A) Election to participate in plan.--A person who is not 
        married and has no dependent child upon becoming eligible to 
        participate in the Plan but who later marries or acquires a 
        dependent child may elect to participate in the Plan.
            ``(B) Manner and time of election.--Such an election must 
        be written, signed by the person making the election, and 
        received by the Secretary concerned within one year after the 
        date on which that person marries or acquires that dependent 
        child.
            ``(C) Limitation on revocation of election.--Such an 
        election may not be revoked except in accordance with 
        subsection (b)(3).
            ``(D) Effective date of election.--The election is 
        effective as of the first day of the first calendar month 
        following the month in which the election is received by the 
        Secretary concerned.
            ``(E) Designation if rcsbp election.--In the case of a 
        person providing a reserve-component annuity, such an election 
        shall include a designation under subsection (e).
        ``(6) Election out of plan by person with spouse coverage who 
    remarries.--
            ``(A) General rule.--A person--
                ``(i) who is a participant in the Plan and is providing 
            coverage under the Plan for a spouse (or a spouse and 
            child);
                ``(ii) who does not have an eligible spouse beneficiary 
            under the Plan; and
                ``(iii) who remarries,
        may elect not to provide coverage under the Plan for the 
        person's spouse.
            ``(B) Effect of election on retired pay.--If such an 
        election is made, reductions in the retired pay of that person 
        under section 1452 of this title shall not be made.
            ``(C) Terms and conditions of election.--An election under 
        this paragraph--
                ``(i) is irrevocable;
                ``(ii) shall be made within one year after the person's 
            remarriage; and
                ``(iii) shall be made in such form and manner as may be 
            prescribed in regulations under section 1455 of this title.
            ``(D) Notice to spouse.--If a person makes an election 
        under this paragraph--
                ``(i) not to participate in the Plan;
                ``(ii) to provide an annuity for the person's spouse at 
            less than the maximum level; or
                ``(iii) to provide an annuity for a dependent child but 
            not for the person's spouse,
        the person's spouse shall be notified of that election.
            ``(E) Construction with former spouse election 
        provisions.--This paragraph does not affect any right or 
        obligation to elect to provide an annuity to a former spouse 
        under subsection (b).
    ``(b) Insurable Interest and Former Spouse Coverage.--
        ``(1) Coverage for person with insurable interest.--
            ``(A) General rule.--A person who is not married and does 
        not have a dependent child upon becoming eligible to 
        participate in the Plan may elect to provide an annuity under 
        the Plan to a natural person with an insurable interest in that 
        person. In the case of a person providing a reserve-component 
        annuity, such an election shall include a designation under 
        subsection (e).
            ``(B) Termination of coverage.--An election under 
        subparagraph (A) for a beneficiary who is not the former spouse 
        of the person providing the annuity may be terminated. Any such 
        termination shall be made by a participant by the submission to 
        the Secretary concerned of a request to discontinue 
        participation in the Plan, and such participation in the Plan 
        shall be discontinued effective on the first day of the first 
        month following the month in which the request is received by 
        the Secretary concerned. Effective onsuch date, the Secretary 
concerned shall discontinue the reduction being made in such person's 
retired pay on account of participation in the Plan or, in the case of 
a person who has been required to make deposits in the Treasury on 
account of participation in the Plan, such person may discontinue 
making such deposits effective on such date.
            ``(C) Form for discontinuation.--A request under 
        subparagraph (B) to discontinue participation in the Plan shall 
        be in such form and shall contain such information as may be 
        required under regulations prescribed by the Secretary of 
        Defense.
            ``(D) Withdrawal of request for discontinuation.--The 
        Secretary concerned shall furnish promptly to each person who 
        submits a request under subparagraph (B) to discontinue 
        participation in the Plan a written statement of the advantages 
        and disadvantages of participating in the Plan and the possible 
        disadvantages of discontinuing participation. A person may 
        withdraw the request to discontinue participation if withdrawn 
        within 30 days after having been submitted to the Secretary 
        concerned.
            ``(E) Consequences of discontinuation.--Once participation 
        is discontinued, benefits may not be paid in conjunction with 
        the earlier participation in the Plan and premiums paid may not 
        be refunded. Participation in the Plan may not later be resumed 
        except through a qualified election under paragraph (5) of 
        subsection (a).
        ``(2) Former spouse coverage upon becoming a participant in the 
    plan.--
            ``(A) General rule.--A person who has a former spouse upon 
        becoming eligible to participate in the Plan may elect to 
        provide an annuity to that former spouse.
            ``(B) Effect of former spouse election on spouse or 
        dependent child.--In the case of a person with a spouse or a 
        dependent child, such an election prevents payment of an 
        annuity to that spouse or child (other than a child who is a 
        beneficiary under an election under paragraph (4)), including 
        payment under subsection (d).
            ``(C) Designation if more than one former spouse.--If there 
        is more than one former spouse, the person shall designate 
        which former spouse is to be provided the annuity.
            ``(D) Designation if rcsbp election.--In the case of a 
        person providing a reserve-component annuity, such an election 
        shall include a designation under subsection (e).
        ``(3) Former spouse coverage by persons already participating 
    in plan.--
            ``(A) Election of coverage.--
                ``(i) Authority for election.--A person--

                    ``(I) who is a participant in the Plan and is 
                providing coverage for a spouse or a spouse and child 
                (even though there is no beneficiary currently eligible 
                for such coverage), and
                    ``(II) who has a former spouse who was not that 
                person's former spouse when that person became eligible 
                to participate in the Plan,

            may (subject to subparagraph (B)) elect to provide an 
            annuity to that former spouse.
                ``(ii) Termination of previous coverage.--Any such 
            election terminates any previous coverage under the Plan.
                ``(iii) Manner and time of election.--Any such election 
            must be written, signed by the person making the election, 
            and received by the Secretary concerned within one year 
            after the date of the decree of divorce, dissolution, or 
            annulment.
            ``(B) Limitation on election.--A person may not make an 
        election under subparagraph (A) to provide an annuity to a 
        former spouse who that person married after becoming eligible 
        for retired pay unless--
                ``(i) the person was married to that former spouse for 
            at least one year, or
                ``(ii) that former spouse is the parent of issue by 
            that marriage.
            ``(C) Irrevocability, effective date, etc.--An election 
        under this paragraph may not be revoked except in accordance 
        with section 1450(f) of this title. Such an election is 
        effective as of the first day of the first calendar month 
        following the month in which it is received by the Secretary 
        concerned. This paragraph does not provide the authority to 
        change a designation previously made under subsection (e).
            ``(D) Notice to spouse.--If a person who is married makes 
        an election to provide an annuity to a former spouse under this 
        paragraph, that person's spouse shall be notified of the 
        election.
        ``(4) Former spouse and child coverage.--A person who elects to 
    provide an annuity for a former spouse under paragraph (2) or (3) 
    may, at the time of the election, elect to provide coverage under 
    that annuity for both the former spouse and a dependent child, if 
    the child resulted from the person's marriage to that former 
    spouse.
        ``(5) Disclosure of whether election of former spouse coverage 
    is required.--A person who elects to provide an annuity to a former 
    spouse under paragraph (2) or (3) shall, at the time of making the 
    election, provide the Secretary concerned with a written statement 
    (in a form to be prescribed by that Secretary and signed by such 
    person and the former spouse) setting forth--
            ``(A) whether the election is being made pursuant to the 
        requirements of a court order; or
            ``(B) whether the election is being made pursuant to a 
        written agreement previously entered into voluntarily by such 
        person as a part of, or incident to, a proceeding of divorce, 
        dissolution, or annulment and (if so)whether such voluntary 
written agreement has been incorporated in, or ratified or approved by, 
a court order.
    ``(c) Persons on Temporary Disability Retired List.--The 
application of the Plan to a person whose name is on the temporary 
disability retired list terminates when his name is removed from that 
list and he is no longer entitled to disability retired pay.
    ``(d) Coverage for Survivors of Retirement-Eligible Members Who Die 
on Active Duty.--
        ``(1) Surviving spouse annuity.--The Secretary concerned shall 
    pay an annuity under this subchapter to the surviving spouse of a 
    member who dies on active duty after--
            ``(A) becoming eligible to receive retired pay;
            ``(B) qualifying for retired pay except that he has not 
        applied for or been granted that pay; or
            ``(C) completing 20 years of active service but before he 
        is eligible to retire as a commissioned officer because he has 
        not completed 10 years of active commissioned service.
        ``(2) Dependent child annuity.--The Secretary concerned shall 
    pay an annuity under this subchapter to the dependent child of a 
    member described in paragraph (1) if there is no surviving spouse 
    or if the member's surviving spouse subsequently dies.
        ``(3) Mandatory former spouse annuity.--If a member described 
    in paragraph (1) is required under a court order or spousal 
    agreement to provide an annuity to a former spouse upon becoming 
    eligible to be a participant in the Plan or has made an election 
    under subsection (b) to provide an annuity to a former spouse, the 
    Secretary--
            ``(A) may not pay an annuity under paragraph (1) or (2); 
        but
            ``(B) shall pay an annuity to that former spouse as if the 
        member had been a participant in the Plan and had made an 
        election under subsection (b) to provide an annuity to the 
        former spouse, or in accordance with that election, as the case 
        may be, if the Secretary receives a written request from the 
        former spouse concerned that the election be deemed to have 
        been made in the same manner as provided in section 1450(f)(3) 
        of this title.
        ``(4) Priority.--An annuity that may be provided under this 
    subsection shall be provided in preference to an annuity that may 
    be provided under any other provision of this subchapter on account 
    of service of the same member.
        ``(5) Computation.--The amount of an annuity under this 
    subsection is computed under section 1451(c) of this title.
    ``(e) Designation for Commencement of Reserve-Component Annuity.--
In any case in which a person electing to participate in the Plan is 
required to make a designation under this subsection, the person making 
such election shall designate whether, in the event he dies before 
becoming 60 years of age, the annuity provided shall become effective 
on--
        ``(1) the day after the date of his death; or
        ``(2) the 60th anniversary of his birth.
    ``(f) Coverage of Survivors of Persons Dying When Eligible To Elect 
Reserve-Component Annuity.--
        ``(1) Surviving spouse annuity.--The Secretary concerned shall 
    pay an annuity under this subchapter to the surviving spouse of a 
    person who is eligible to provide a reserve-component annuity and 
    who dies--
            ``(A) before being notified under section 12731(d) of this 
        title that he has completed the years of service required for 
        eligibility for reserve-component retired pay; or
            ``(B) during the 90-day period beginning on the date he 
        receives notification under section 12731(d) of this title that 
        he has completed the years of service required for eligibility 
        for reserve-component retired pay if he had not made an 
        election under subsection (a)(2)(B) to participate in the Plan.
        ``(2) Dependent child annuity.--The Secretary concerned shall 
    pay an annuity under this subchapter to the dependent child of a 
    person described in paragraph (1) if there is no surviving spouse 
    or if the person's surviving spouse subsequently dies.
        ``(3) Mandatory former spouse annuity.--If a person described 
    in paragraph (1) is required under a court order or spousal 
    agreement to provide an annuity to a former spouse upon becoming 
    eligible to be a participant in the Plan or has made an election 
    under subsection (b) to provide an annuity to a former spouse, the 
    Secretary--
            ``(A) may not pay an annuity under paragraph (1) or (2); 
        but
            ``(B) shall pay an annuity to that former spouse as if the 
        person had been a participant in the Plan and had made an 
        election under subsection (b) to provide an annuity to the 
        former spouse, or in accordance with that election, as the case 
        may be, if the Secretary receives a written request from the 
        former spouse concerned that the election be deemed to have 
        been made in the same manner as provided in section 1450(f)(3) 
        of this title.
        ``(4) Computation.--The amount of an annuity under this 
    subsection is computed under section 1451(c) of this title.
    ``(g) Election To Increase Coverage Upon Remarriage.--
        ``(1) Election.--A person--
            ``(A) who is a participant in the Plan and is providing 
        coverage under subsection (a) for a spouse or a spouse and 
        child, but at less than the maximum level; and
            ``(B) who remarries,
    may elect, within one year of such remarriage, to increase the 
    level of coverage provided under the Plan to a level not in excess 
    of the current retired pay of that person.
        ``(2) Payment required.--Such an election shall be contingent 
    on the person paying to the United States the amount determined 
    under paragraph (3) plus interest on such amount at a rate 
    determined under regulations prescribed by the Secretary of 
    Defense.
        ``(3) Amount to be paid.--The amount referred to in paragraph 
    (2) is the amount equal to the difference between--
            ``(A) the amount that would have been withheld from such 
        person's retired pay under section 1452 of this title if the 
        higher level of coverage had been in effect from the time the 
        person became a participant in the Plan; and
            ``(B) the amount of such person's retired pay actually 
        withheld.
        ``(4) Manner of making election.--An election under paragraph 
    (1) shall be made in such manner as the Secretary shall prescribe 
    and shall become effective upon receipt of the payment required by 
    paragraph (2).
        ``(5) Disposition of payments.--A payment received under this 
    subsection by the Secretary of Defense shall be deposited into the 
    Department of Defense Military Retirement Fund. Any other payment 
    received under this subsection shall be deposited in the Treasury 
    as miscellaneous receipts.

``Sec. 1449. Mental incompetency of member

    ``(a) Election by Secretary Concerned on Behalf of Mentally 
Incompetent Member.--If a person to whom section 1448 of this title 
applies is determined to be mentally incompetent by medical officers of 
the armed force concerned or of the Department of Veterans Affairs, or 
by a court of competent jurisdiction, an election described in 
subsection (a)(2) or (b) of section 1448 of this title may be made on 
behalf of that person by the Secretary concerned.
    ``(b) Revocation of Election by Member.--
        ``(1) Authority upon subsequent determination of mental 
    competence.--If a person for whom the Secretary has made an 
    election under subsection (a) is later determined to be mentally 
    competent by an authority named in that subsection, that person 
    may, within 180 days after that determination, revoke that 
    election.
        ``(2) Deductions from retired pay not to be refunded.--Any 
    deduction made from retired pay by reason of such an election may 
    not be refunded.

``Sec. 1450. Payment of annuity: beneficiaries

    ``(a) In General.--Effective as of the first day after the death of 
a person to whom section 1448 of this title applies (or on such other 
day as that person may provide under subsection (j)), a monthly annuity 
under section 1451 of this title shall be paid to the person's 
beneficiaries under the Plan, as follows:
        ``(1) Surviving spouse or former spouse.--The eligible 
    surviving spouse or the eligible former spouse.
        ``(2) Surviving children.--The surviving dependent children in 
    equal shares, if the eligible surviving spouse or the eligible 
    former spouse is dead, dies, or otherwise becomes ineligible under 
    this section.
        ``(3) Dependent children.--The dependent children in equal 
    shares if the person to whom section 1448 of this title applies 
    (with the concurrence of the person's spouse, if required under 
    section 1448(a)(3) of this title) elected to provide an annuity for 
    dependent children but not for the spouse or former spouse.
        ``(4) Natural person designated under `insurable interest' 
    coverage.--The natural person designated under section 1448(b)(1) 
    of this title, unless the election to provide an annuity to the 
    natural person has been changed as provided in subsection (f).
    ``(b) Termination of Annuity for Death, Remarriage Before Age 55, 
Etc.--
        ``(1) General rule.--An annuity payable to the beneficiary 
    terminates effective as of the first day of the month in which 
    eligibility is lost.
        ``(2) Termination of spouse annuity upon death or remarriage 
    before age 55.--An annuity for a surviving spouse or former spouse 
    shall be paid to the surviving spouse or former spouse while the 
    surviving spouse or former spouse is living or, if the surviving 
    spouse or former spouse remarries before reaching age 55, until the 
    surviving spouse or former spouse remarries.
        ``(3) Effect of termination of subsequent marriage before age 
    55.--If the surviving spouse or former spouse remarries before 
    reaching age 55 and that marriage is terminated by death, 
    annulment, or divorce, payment of the annuity shall be resumed 
    effective as of the first day of the month in which the marriage is 
    so terminated. However, if the surviving spouse or former spouse is 
    also entitled to an annuity under the Plan based upon the marriage 
    so terminated, the surviving spouse or former spouse may not 
    receive both annuities but must elect which to receive.
    ``(c) Offset for Amount of Dependency and Indemnity Compensation.--
        ``(1) Required offset.--If, upon the death of a person to whom 
    section 1448 of this title applies, the surviving spouse or former 
    spouse of that person is also entitled to dependency and indemnity 
    compensation under section 1311(a) of title 38, the surviving 
    spouse or former spouse may be paid an annuity under this section, 
    but only in the amount that the annuity otherwise payable under 
    this section would exceed that compensation.
        ``(2) Effective date of offset.--A reduction in an annuity 
    under this section required by paragraph (1) shall be effective on 
    the date of the commencement of the period of payment of such 
    dependency and indemnity compensation under title 38.
    ``(d) Limitation on Payment of Annuities When Coverage Under Civil 
Service Retirement Elected.--If, upon the death of a person to whom 
section 1448 of this title applies, that person had in effect a waiver 
of that person's retired pay for the purposes of subchapter III of 
chapter 83 of title 5, an annuity under this section shall not be 
payable unless, in accordance with section 8339(j) of title 5, that 
personnotified the Office of Personnel Management that he did not 
desire any spouse surviving him to receive an annuity under section 
8341(b) of that title.
    ``(e) Refund of Amounts Deducted From Retired Pay When DIC Offset 
Is Applicable.--
        ``(1) Full refund when dic greater than sbp annuity.--If an 
    annuity under this section is not payable because of subsection 
    (c), any amount deducted from the retired pay of the deceased under 
    section 1452 of this title shall be refunded to the surviving 
    spouse or former spouse.
        ``(2) Partial refund when sbp annuity reduced by dic.--If, 
    because of subsection (c), the annuity payable is less than the 
    amount established under section 1451 of this title, the annuity 
    payable shall be recalculated under that section. The amount of the 
    reduction in the retired pay required to provide that recalculated 
    annuity shall be computed under section 1452 of this title, and the 
    difference between the amount deducted before the computation of 
    that recalculated annuity and the amount that would have been 
    deducted on the basis of that recalculated annuity shall be 
    refunded to the surviving spouse or former spouse.
    ``(f) Change in Election of Insurable Interest or Former Spouse 
Beneficiary.--
        ``(1) Authorized changes.--
            ``(A) Election in favor of spouse or child.--A person who 
        elects to provide an annuity to a person designated by him 
        under section 1448(b) of this title may, subject to paragraph 
        (2), change that election and provide an annuity to his spouse 
        or dependent child.
            ``(B) Notice.--The Secretary concerned shall notify the 
        former spouse or other natural person previously designated 
        under section 1448(b) of this title of any change of election 
        under subparagraph (A).
            ``(C) Procedures, effective date, etc.--Any such change of 
        election is subject to the same rules with respect to 
        execution, revocation, and effectiveness as are set forth in 
        section 1448(a)(5) of this title (without regard to the 
        eligibility of the person making the change of election to make 
        such an election under that section).
        ``(2) Limitation on change in beneficiary when former spouse 
    coverage in effect.--A person who, incident to a proceeding of 
    divorce, dissolution, or annulment, is required by a court order to 
    elect under section 1448(b) of this title to provide an annuity to 
    a former spouse (or to both a former spouse and child), or who 
    enters into a written agreement (whether voluntary or required by a 
    court order) to make such an election, and who makes an election 
    pursuant to such order or agreement, may not change that election 
    under paragraph (1) unless, of the following requirements, 
    whichever are applicable in a particular case are satisfied:
            ``(A) In a case in which the election is required by a 
        court order, or in which an agreement to make the election has 
        been incorporated in or ratified or approved by a court order, 
        the person--
                ``(i) furnishes to the Secretary concerned a certified 
            copy of a court order which is regular on its face and 
            which modifies the provisions of all previous court orders 
            relating to such election, or the agreement to make such 
            election, so as to permit the person to change the 
            election; and
                ``(ii) certifies to the Secretary concerned that the 
            court order is valid and in effect.
            ``(B) In a case of a written agreement that has not been 
        incorporated in or ratified or approved by a court order, the 
        person--
                ``(i) furnishes to the Secretary concerned a statement, 
            in such form as the Secretary concerned may prescribe, 
            signed by the former spouse and evidencing the former 
            spouse's agreement to a change in the election under 
            paragraph (1); and
                ``(ii) certifies to the Secretary concerned that the 
            statement is current and in effect.
        ``(3) Required former spouse election to be deemed to have been 
    made.--
            ``(A) Deemed election upon request by former spouse.--If a 
        person described in paragraph (2) or (3) of section 1448(b) of 
        this title is required (as described in subparagraph (B)) to 
        elect under section 1448(b) of this title to provide an annuity 
        to a former spouse and such person then fails or refuses to 
        make such an election, such person shall be deemed to have made 
        such an election if the Secretary concerned receives the 
        following:
                ``(i) Request from former spouse.--A written request, 
            in such manner as the Secretary shall prescribe, from the 
            former spouse concerned requesting that such an election be 
            deemed to have been made.
                ``(ii) Copy of court order or other official 
            statement.--Either--

                    ``(I) a copy of the court order, regular on its 
                face, which requires such election or incorporates, 
                ratifies, or approves the written agreement of such 
                person; or
                    ``(II) a statement from the clerk of the court (or 
                other appropriate official) that such agreement has 
                been filed with the court in accordance with applicable 
                State law.

            ``(B) Persons required to make election.--A person shall be 
        considered for purposes of subparagraph (A) to be required to 
        elect under section 1448(b) of this title to provide an annuity 
        to a former spouse if--
                ``(i) the person enters, incident to a proceeding of 
            divorce, dissolution, or annulment, into a written 
            agreement to make such an election and the agreement (I) 
            has been incorporated in or ratified orapproved by a court 
order, or (II) has been filed with the court of appropriate 
jurisdiction in accordance with appli- cable State law; or
                ``(ii) the person is required by a court order to make 
            such an election.
            ``(C) Time limit for request by former spouse.--An election 
        may not be deemed to have been made under subparagraph (A) in 
        the case of any person unless the Secretary concerned receives 
        a request from the former spouse of the person within one year 
        of the date of the court order or filing involved.
            ``(D) Effective date of deemed election.--An election 
        deemed to have been made under subparagraph (A) shall become 
        effective on the first day of the first month which begins 
        after the date of the court order or filing involved.
        ``(4) Former spouse coverage may be required by court order.--A 
    court order may require a person to elect (or to enter into an 
    agreement to elect) under section 1448(b) of this title to provide 
    an annuity to a former spouse (or to both a former spouse and 
    child).
    ``(g) Limitation on Changing or Revoking Elections.--
        ``(1) In general.--An election under this section may not be 
    changed or revoked.
        ``(2) Exceptions.--Paragraph (1) does not apply to--
            ``(A) a revocation of an election under section 1449(b) of 
        this title; or
            ``(B) a change in an election under subsection (f).
    ``(h) Treatment of Annuities Under Other Laws.--Except as provided 
in section 1451 of this title, an annuity under this section is in 
addition to any other payment to which a person is entitled under any 
other provision of law. Such annuity shall be considered as income 
under laws administered by the Secretary of Veterans Affairs.
    ``(i) Annuities Exempt From Certain Legal Process.--Except as 
provided in subsection (l)(3)(B), an annuity under this section is not 
assignable or subject to execution, levy, attachment, garnishment, or 
other legal process.
    ``(j) Effective Date of Reserve-Component Annuities.--
        ``(1) Persons making section 1448(e) designation.--An annuity 
    elected by a person providing a reserve-component annuity shall be 
    effective in accordance with the designation made by such person 
    under section 1448(e) of this title.
        ``(2) Persons dying before making section 1448(e) 
    designation.--An annuity payable under section 1448(f) of this 
    title shall be effective on the day after the date of the death of 
    the person upon whose service the right to the annuity is based.
    ``(k) Adjustment of Spouse or Former Spouse Annuity Upon Loss of 
Dependency and Indemnity Compensation.--
        ``(1) Readjustment if beneficiary 55 years of age or more.--If 
    a surviving spouse or former spouse whose annuity has been adjusted 
    under subsection (c) subsequently loses entitlement to dependency 
    and indemnity compensation under section 1311(a) of title 38 
    because of the remarriage of the surviving spouse, or former 
    spouse, and if at the time of such remarriage the surviving spouse 
    or former spouse is 55 years of age or more, the amount of the 
    annuity of the surviving spouse or former spouse shall be 
    readjusted, effective on the effective date of such loss of 
    dependency and indemnity compensation, to the amount of the annuity 
    which would be in effect with respect to the surviving spouse or 
    former spouse if the adjustment under subsection (c) had never been 
    made.
        ``(2) Repayment of amounts previously refunded.--
            ``(A) General rule.--A surviving spouse or former spouse 
        whose annuity is readjusted under paragraph (1) shall repay any 
        amount refunded under subsection (e) by reason of the 
        adjustment under subsection (c).
            ``(B) Interest required if repayment not a lump sum.--If 
        the repayment is not made in a lump sum, the surviving spouse 
        or former spouse shall pay interest on the amount to be repaid. 
        Such interest shall commence on the date on which the first 
        such payment is due and shall be applied over the period during 
        which any part of the repayment remains to be paid.
            ``(C) Manner of repayment; rate of interest.--The manner in 
        which such repayment shall be made, and the rate of any such 
        interest, shall be prescribed in regulations under section 1455 
        of this title.
            ``(D) Deposit of amounts repaid.--An amount repaid under 
        this paragraph (including any such interest) received by the 
        Secretary of Defense shall be deposited into the Department of 
        Defense Military Retirement Fund. Any other amount repaid under 
        this paragraph shall be deposited into the Treasury as 
        miscellaneous receipts.
    ``(l) Participants in the Plan Who Are Missing.--
        ``(1) Authority to presume death of missing participant.--
            ``(A) In general.--Upon application of the beneficiary of a 
        participant in the Plan who is missing, the Secretary concerned 
        may determine for purposes of this subchapter that the 
        participant is presumed dead.
            ``(B) Participant who is missing.--A participant in the 
        Plan is considered to be missing for purposes of this 
        subsection if--
                ``(i) the retired pay of the participant has been 
            suspended on the basis that the participant is missing; or
                ``(ii) in the case of a participant in the Plan who 
            would be eligible for reserve-component retired pay but for 
            the fact that he is under 60 years ofage, his retired pay, 
if he were entitled to retired pay, would be suspended on the basis 
that he is missing.
            ``(C) Requirements applicable to presumption of death.--Any 
        such determination shall be made in accordance with regulations 
        prescribed under section 1455 of this title. The Secretary 
        concerned may not make a determination for purposes of this 
        subchapter that a participant who is missing is presumed dead 
        unless the Secretary finds that--
                ``(i) the participant has been missing for at least 30 
            days; and
                ``(ii) the circumstances under which the participant is 
            missing would lead a reasonably prudent person to conclude 
            that the participant is dead.
        ``(2) Commencement of annuity.--Upon a determination under 
    paragraph (1) with respect to a participant in the Plan, an annuity 
    otherwise payable under this subchapter shall be paid as if the 
    participant died on the date as of which the retired pay of the 
    participant was suspended.
        ``(3) Effect of person not being dead.--
            ``(A) Termination of annuity.--If, after a determination 
        under paragraph (1), the Secretary concerned determines that 
        the participant is alive--
                ``(i) any annuity being paid under this subchapter by 
            reason of this subsection shall be terminated; and
                ``(ii) the total amount of any annuity payments made by 
            reason of this subsection shall constitute a debt to the 
            United States.
            ``(B) Collection from participant of annuity amounts 
        erroneously paid.--A debt under subparagraph (A)(ii) may be 
        collected or offset--
                ``(i) from any retired pay otherwise payable to the 
            participant;
                ``(ii) if the participant is entitled to compensation 
            under chapter 11 of title 38, from that compen- sation; or
                ``(iii) if the participant is entitled to any other 
            payment from the United States, from that payment.
            ``(C) Collection from beneficiary.--If the participant dies 
        before the full recovery of the amount of annuity payments 
        described in subparagraph (A)(ii) has been made by the United 
        States, the remaining amount of such annuity payments may be 
        collected from the participant's beneficiary under the Plan if 
        that beneficiary was the recipient of the annuity payments made 
        by reason of this subsection.

``Sec. 1451. Amount of annuity

    ``(a) Computation of Annuity for a Spouse, Former Spouse, or 
Child.--
        ``(1) Standard annuity.--In the case of a standard annuity 
    provided to a beneficiary under section 1450(a) of this title 
    (other than under section 1450(a)(4)), the monthly annuity payable 
    to the beneficiary shall be determined as follows:
            ``(A) Beneficiary under 62 years of age.--If the 
        beneficiary is under 62 years of age or is a dependent child 
        when becoming entitled to the annuity, the monthly annuity 
        shall be the amount equal to 55 percent of the base amount.
            ``(B) Beneficiary 62 years of age or older.--
                ``(i) General rule.--If the beneficiary (other than a 
            dependent child) is 62 years of age or older when becoming 
            entitled to the annuity, the monthly annuity shall be the 
            amount equal to 35 percent of the base amount.
                ``(ii) Rule if beneficiary eligible for social security 
            offset computation.--If the beneficiary is eligible to have 
            the annuity computed under subsection (e) and if, at the 
            time the beneficiary becomes entitled to the annuity, 
            computation of the annuity under that subsection is more 
            favorable to the beneficiary than computation under clause 
            (i), the annuity shall be computed under that subsection 
            rather than under clause (i).
        ``(2) Reserve-component annuity--In the case of a reserve-
    component annuity provided to a beneficiary under section 1450(a) 
    of this title (other than under section 1450(a)(4)), the monthly 
    annuity payable to the beneficiary shall be determined as follows:
            ``(A) Beneficiary under 62 years of age.--If the 
        beneficiary is under 62 years of age or is a dependent child 
        when becoming entitled to the annuity, the monthly annuity 
        shall be the amount equal to a percentage of the base amount 
        that--
                ``(i) is less than 55 percent; and
                ``(ii) is determined under subsection (f).
            ``(B) Beneficiary 62 years of age or older.--
                ``(i) General rule.--If the beneficiary (other than a 
            dependent child) is 62 years of age or older when becoming 
            entitled to the annuity, the monthly annuity shall be the 
            amount equal to a percentage of the base amount that--

                    ``(I) is less than 35 percent; and
                    ``(II) is determined under subsection (f).

                ``(ii) Rule if beneficiary eligible for social security 
            offset computation.--If the beneficiary is eligible to have 
            the annuity computed under subsection (e) and if, at the 
            time the beneficiary becomes entitled to the annuity, 
            computation of the annuity under that subsection is more 
            favorable to the beneficiary than computation under clause 
            (i), the annuity shall be computed under that subsection 
            rather than under clause (i).
    ``(b) Insurable Interest Beneficiary.--
        ``(1) Standard annuity.--In the case of a standard annuity 
    provided to a beneficiary under section 1450(a)(4) of this title, 
    the monthly annuity payable to the beneficiary shall be the amount 
    equal to 55 percent of the retired pay of the person who elected to 
    provide the annuity after the reduction in that pay in accordance 
    with section 1452(c) of this title.
        ``(2) Reserve-component annuity.--In the case of a reserve-
    component annuity provided to a beneficiary under section 
    1450(a)(4) of this title, the monthly annuity payable to the 
    beneficiary shall be the amount equal to a percentage of the 
    retired pay of the person who elected to provide the annuity after 
    the reduction in such pay in accordance with section 1452(c) of 
    this title that--
            ``(A) is less than 55 percent; and
            ``(B) is determined under subsection (f).
        ``(3) Computation of reserve-component annuity when participant 
    dies before age 60.--For the purposes of paragraph (2), a person--
            ``(A) who provides an annuity that is determined in 
        accordance with that paragraph;
            ``(B) who dies before becoming 60 years of age; and
            ``(C) who at the time of death is otherwise entitled to 
        retired pay,
    shall be considered to have been entitled to retired pay at the 
    time of death. The retired pay of such person for the purposes of 
    such paragraph shall be computed on the basis of the rates of basic 
    pay in effect on the date on which the annuity provided by such 
    person is to become effective in accordance with the designation of 
    such person under section 1448(e) of this title.
    ``(c) Annuities for Survivors of Certain Persons Dying During a 
Period of Special Eligibility for SBP.--
        ``(1) In general.--In the case of an annuity provided under 
    section 1448(d) or 1448(f) of this title, the amount of the annuity 
    shall be determined as follows:
            ``(A) Beneficiary under 62 years of age.--If the person 
        receiving the annuity is under 62 years of age or is a 
        dependent child when the member or former member dies, the 
        monthly annuity shall be the amount equal to 55 percent of the 
        retired pay to which the member or former member would have 
        been entitled if the member or former member had been entitled 
        to that pay based upon his years of active service when he 
        died.
            ``(B) Beneficiary 62 years of age or older.--
                ``(i) General rule.--If the person receiving the 
            annuity (other than a dependent child) is 62 years of age 
            or older when the member or former member dies, the monthly 
            annuity shall be the amount equal to 35 percent of the 
            retired pay to which the member or former member would have 
            been entitled if the member or former member had been 
            entitled to that pay based upon his years of active service 
            when he died.
                ``(ii) Rule if beneficiary eligible for social security 
            offset computation.--If the beneficiary is eligible to have 
            the annuity computed under subsection (e) and if, at the 
            time the beneficiary becomes entitled to the annuity, 
            computation of the annuity under that subsection is more 
            favorable to the beneficiary than computation under clause 
            (i), the annuity shall be computed under that subsection 
            rather than under clause (i).
        ``(2) DIC offset.--An annuity computed under paragraph (1) that 
    is paid to a surviving spouse shall be reduced by the amount of 
    dependency and indemnity compensation to which the surviving spouse 
    is entitled under section 1311(a) of title 38. Any such reduction 
    shall be effective on the date of the commencement of the period of 
    payment of such compensation under title 38.
        ``(3) Servicemembers not yet granted retired pay.--In the case 
    of an annuity provided by reason of the service of a member 
    described in section 1448(d)(1)(B) or 1448(d)(1)(C) of this title 
    who first became a member of a uniformed service before September 
    8, 1980, the retired pay to which the member would have been 
    entitled when he died shall be determined for purposes of paragraph 
    (1) based upon the rate of basic pay in effect at the time of death 
    for the grade in which the member was serving at the time of death, 
    unless (as determined by the Secretary concerned) the member would 
    have been entitled to be retired in a higher grade.
        ``(4) Rate of pay to be used in computing annuity.--In the case 
    of an annuity paid under section 1448(f) of this title by reason of 
    the service of a person who first became a member of a uniformed 
    service before September 8, 1980, the retired pay of the person 
    providing the annuity shall for the purposes of paragraph (1) be 
    computed on the basis of the rates of basic pay in effect on the 
    effective date of the annuity.
    ``(d) Reduction of Annuities at Age 62.--
        ``(1) Reduction required.--The annuity of a person whose 
    annuity is computed under subparagraph (A) of subsection (a)(1), 
    (a)(2), or (c)(1) shall be reduced on the first day of the month 
    after the month in which the person becomes 62 years of age.
        ``(2) Amount of annuity as reduced.--
            ``(A) 35 percent annuity.--Except as provided in 
        subparagraph (B), the reduced amount of the annuity shall be 
        the amount of the annuity that the person would be receiving on 
        that date if the annuity had initially been computed under 
        subparagraph (B) of that subsection.
            ``(B) Savings provision for beneficiaries eligible for 
        social security offsetcomputation.--In the case of a person 
eligible to have an annuity computed under subsection (e) and for whom, 
at the time the person becomes 62 years of age, the annuity computed 
with a reduction under subsection (e)(3) is more favorable than the 
annuity with a reduction described in subparagraph (A), the reduction 
in the annuity shall be computed in the same manner as a reduction 
under subsection (e)(3).
    ``(e) Savings Provision for Certain Beneficiaries.--
        ``(1) Persons covered.--The following beneficiaries under the 
    Plan are eligible to have an annuity under the Plan computed under 
    this subsection:
            ``(A) A beneficiary receiving an annuity under the Plan on 
        October 1, 1985, as the surviving spouse or former spouse of 
        the person providing the annuity.
            ``(B) A spouse or former spouse beneficiary of a person who 
        on October 1, 1985--
                ``(i) was a participant in the Plan;
                ``(ii) was entitled to retired pay or was qualified for 
            that pay except that he had not applied for and been 
            granted that pay; or
                ``(iii) would have been eligible for reserve-component 
            retired pay but for the fact that he was under 60 years of 
            age.
        ``(2) Amount of annuity.--Subject to paragraph (3), an annuity 
    computed under this subsection is determined as follows:
            ``(A) Standard annuity.--In the case of the beneficiary of 
        a standard annuity, the annuity shall be the amount equal to 55 
        percent of the base amount.
            ``(B) Reserve-component annuity.--In the case of the 
        beneficiary of a reserve-component annuity, the annuity shall 
        be the percentage of the base amount that--
                ``(i) is less than 55 percent; and
                ``(ii) is determined under subsection (f).
            ``(C) Beneficiaries of persons dying during a period of 
        special eligibility for sbp.--In the case of the beneficiary of 
        an annuity under section 1448(d) or 1448(f) of this title, the 
        annuity shall be the amount equal to 55 percent of the retired 
        pay of the person providing the annuity (as that pay is 
        determined under subsection (c)).
        ``(3) Social security offset.--An annuity computed under this 
    subsection shall be reduced by the lesser of the following:
            ``(A) Social security computation.--The amount of the 
        survivor benefit, if any, to which the surviving spouse (or the 
        former spouse, in the case of a former spouse beneficiary who 
        became a former spouse under a divorce that became final after 
        November 29, 1989) would be entitled under title II of the 
        Social Security Act (42 U.S.C. 401 et seq.) based solely upon 
        service by the person concerned as described in section 
        210(l)(1) of such Act (42 U.S.C. 410(l)(1)) and calculated 
        assuming that the person concerned lives to age 65.
            ``(B) Maximum amount of reduction.--40 percent of the 
        amount of the monthly annuity as determined under paragraph 
        (2).
        ``(4) Special rules for social security offset computation.--
            ``(A) Treatment of deductions made on account of work.--For 
        the purpose of paragraph (3), a surviving spouse (or a former 
        spouse, in the case of a person who becomes a former spouse 
        under a divorce that becomes final after November 29, 1989) 
        shall not be considered as entitled to a benefit under title II 
        of the Social Security Act (42 U.S.C. 401 et seq.) to the 
        extent that such benefit has been offset by deductions under 
        section 203 of such Act (42 U.S.C. 403) on account of work.
            ``(B) Treatment of certain periods for which social 
        security refunds are made.--In the computation of any reduction 
        made under paragraph (3), there shall be excluded any period of 
        service described in section 210(l)(1) of the Social Security 
        Act (42 U.S.C. 410(l)(1))--
                ``(i) which was performed after December 1, 1980; and
                ``(ii) which involved periods of service of less than 
            30 continuous days for which the person concerned is 
            entitled to receive a refund under section 6413(c) of the 
            Internal Revenue Code of 1986 of the social security tax 
            which the person had paid.
    ``(f) Determination of Percentages Applicable to Computation of 
Reserve-Component Annuities.--The percentage to be applied in 
determining the amount of an annuity computed under subsection (a)(2), 
(b)(2), or (e)(2)(B) shall be determined under regulations prescribed 
by the Secretary of Defense. Such regulations shall be prescribed 
taking into consideration the following:
        ``(1) The age of the person electing to provide the annuity at 
    the time of such election.
        ``(2) The difference in age between such person and the 
    beneficiary of the annuity.
        ``(3) Whether such person provided for the annuity to become 
    effective (in the event he died before becoming 60 years of age) on 
    the day after his death or on the 60th anniversary of his birth.
        ``(4) Appropriate group annuity tables.
        ``(5) Such other factors as the Secretary considers relevant.
    ``(g) Adjustments to Annuities.--
        ``(1) Periodic adjustments for cost-of-living.--
            ``(A) Increases in annuities when retired pay increased.--
        Whenever retired pay is increased under section 1401a of this 
        title (or any other provisionof law), each annuity that is 
payable under the Plan shall be increased at the same time.
            ``(B) Percentage of increase.--The increase shall, in the 
        case of any annuity, be by the same percent as the percent by 
        which the retired pay of the person providing the annuity would 
        have been increased at such time if the person were alive (and 
        otherwise entitled to such pay).
            ``(C) Certain reductions to be disregarded.--The amount of 
        the increase shall be based on the monthly annuity payable 
        before any reduction under section 1450(c) of this title or 
        under subsection (c)(2).
        ``(2) Rounding down.--The monthly amount of an annuity payable 
    under this subchapter, if not a multiple of $1, shall be rounded to 
    the next lower multiple of $1.
    ``(h) Adjustments to Base Amount.--
        ``(1) Periodic adjustments for cost-of-living.--
            ``(A) Increases in base amount when retired pay 
        increased.--Whenever retired pay is increased under section 
        1401a of this title (or any other provision of law), the base 
        amount applicable to each participant in the Plan shall be 
        increased at the same time.
            ``(B) Percentage of increase.--The increase shall be by the 
        same percent as the percent by which the retired pay of the 
        participant is so increased.
        ``(2) Recomputation at age 62.--When the retired pay of a 
    person who first became a member of a uniformed service on or after 
    August 1, 1986, and who is a participant in the Plan is recomputed 
    under section 1410 of this title upon the person's becoming 62 
    years of age, the base amount applicable to that person shall be 
    recomputed (effective on the effective date of the recomputation of 
    such retired pay under section 1410 of this title) so as to be the 
    amount equal to the amount of the base amount that would be in 
    effect on that date if increases in such base amount under 
    paragraph (1) had been computed as provided in paragraph (2) of 
    section 1401a(b) of this title (rather than under paragraph (3) of 
    that section).
        ``(3) Disregarding of retired pay reductions for retirement 
    before 30 years of service.--Computation of a member's retired pay 
    for purposes of this section shall be made without regard to any 
    reduction under section 1409(b)(2) of this title.
    ``(i) Recomputation of Annuity for Certain Beneficiaries.--In the 
case of an annuity under the Plan which is computed on the basis of the 
retired pay of a person who would have been entitled to have that 
retired pay recomputed under section 1410 of this title upon attaining 
62 years of age, but who dies before attaining that age, the annuity 
shall be recomputed, effective on the first day of the first month 
beginning after the date on which the member or former member would 
have attained 62 years of age, so as to be the amount equal to the 
amount of the annuity that would be in effect on that date if increases 
under subsection (h)(1) in the base amount applicable to that annuity 
to the time of the death of the member or former member, and increases 
in such annuity under subsection (g)(1), had been computed as provided 
in paragraph (2) of section 1401a(b) of this title (rather than under 
paragraph (3) of that section).

``Sec. 1452. Reduction in retired pay

    ``(a) Spouse and Former Spouse Annuities.--
        ``(1) Required reduction in retired pay.--Except as provided in 
    subsection (b), the retired pay of a participant in the Plan who is 
    providing spouse coverage (as described in paragraph (5)) shall be 
    reduced as follows:
            ``(A) Standard annuity.--If the annuity coverage being 
        providing is a standard annuity, the reduction shall be as 
        follows:
                ``(i) Disability and nonregular service re- tirees.--In 
            the case of a person who is entitled to retired pay under 
            chapter 61 or chapter 1223 of this title, the reduction 
            shall be in whichever of the alternative reduction amounts 
            is more favorable to that person.
                ``(ii) Members as of enactment of flat-rate 
            reduction.--In the case of a person who first became a 
            member of a uniformed service before March 1, 1990, the 
            reduction shall be in whichever of the alternative 
            reduction amounts is more favorable to that person.
                ``(iii) New entrants after enactment of flat-rate 
            reduction.--In the case of a person who first becomes a 
            member of a uniformed service on or after March 1, 1990, 
            and who is entitled to retired pay under a provision of law 
            other than chapter 61 or chapter 1223 of this title, the 
            reduction shall be in an amount equal to 6\1/2\ percent of 
            the base amount.
                ``(iv) Alternative reduction amounts.--For purposes of 
            clauses (i) and (ii), the alternative reduction amounts are 
            the following:

                    ``(I) Flat-rate reduction.--An amount equal to 6\1/
                2\ percent of the base amount.
                    ``(II) Amount under pre-flat-rate reduction.--An 
                amount equal to 2\1/2\ percent of the first $337 (as 
                adjusted after November 1, 1989, under paragraph (4)) 
                of the base amount plus 10 percent of the remainder of 
                the base amount.

            ``(B) Reserve-component annuity.--If the annuity coverage 
        being provided is a reserve-component annuity, the reduction 
        shall be in whichever of the following amounts is more 
        favorable to that person:
                ``(i) Flat-rate reduction.--An amount equal to 6\1/2\ 
            percent of the base amount plus an amount determined in 
            accordance with regulations prescribed by the Secretary of 
            Defense as a premium for the additional coverage provided 
            throughreserve-component annuity coverage under the Plan.
                ``(ii) Amount under pre-flat-rate reduction.--An amount 
            equal to 2\1/2\ percent of the first $337 (as adjusted 
            after November 1, 1989, under paragraph (4)) of the base 
            amount plus 10 percent of the remainder of the base amount 
            plus an amount determined in accordance with regulations 
            prescribed by the Secretary of Defense as a premium for the 
            additional coverage provided through reserve-component 
            annuity coverage under the Plan.
        ``(2) Additional reduction for child coverage.--If there is a 
    dependent child as well as a spouse or former spouse, the amount 
    prescribed under paragraph (1) shall be increased by an amount 
    prescribed under regulations of the Secretary of Defense.
        ``(3) No reduction when no beneficiary.--The reduction in 
    retired pay prescribed by paragraph (1) shall not be applicable 
    during any month in which there is no eligible spouse or former 
    spouse beneficiary.
        ``(4) Periodic adjustments.--
            ``(A) Adjustments for increases in rates of basic pay.--
        Whenever there is an increase in the rates of basic pay of 
        members of the uniformed services effective on or after October 
        1, 1985, the amounts under paragraph (1) with respect to which 
        the percentage factor of 2\1/2\ is applied shall be increased 
        by the overall percentage of such increase in the rates of 
        basic pay. The increase under the preceding sentence shall 
        apply only with respect to persons whose retired pay is 
        computed based on the rates of basic pay in effect on or after 
        the date of such increase in rates of basic pay.
            ``(B) Adjustments for retired pay colas.--In addition to 
        the increase under subparagraph (A), the amounts under 
        paragraph (1) with respect to which the percentage factor of 
        2\1/2\ is applied shall be further increased at the same time 
        and by the same percentage as an increase in retired pay under 
        section 1401a of this title effective on or after October 1, 
        1985. Such increase under the preceding sentence shall apply 
        only with respect to a person who initially participates in the 
        Plan on a date which is after both the effective date of such 
        increase under section 1401a and the effective date of the 
        rates of basic pay upon which that person's retired pay is 
        computed.
        ``(5) Spouse coverage described.--For the purposes of paragraph 
    (1), a participant in the Plan who is providing spouse coverage is 
    a participant who--
            ``(A) has (i) a spouse or former spouse, or (ii) a spouse 
        or former spouse and a dependent child; and
            ``(B) has not elected to provide an annuity to a person 
        designated by him under section 1448(b)(1) of this title or, 
        having made such an election, has changed his election in favor 
        of his spouse under section 1450(f) of this title.
    ``(b) Child-Only Annuities.--
        ``(1) Required reduction in retired pay.--The retired pay of a 
    participant in the Plan who is providing child-only coverage (as 
    described in paragraph (4)) shall be reduced by an amount 
    prescribed under regulations by the Secretary of Defense.
        ``(2) No reduction when no child.--There shall be no reduction 
    in retired pay under paragraph (1) for any month during which the 
    participant has no eligible dependent child.
        ``(3) Special rule for certain rcsbp participants.--In the case 
    of a participant in the Plan who is participating in the Plan under 
    an election under section 1448(a)(2)(B) of this title and who 
    provided child-only coverage during a period before the participant 
    becomes entitled to receive retired pay, the retired pay of the 
    participant shall be reduced by an amount prescribed under 
    regulations by the Secretary of Defense to reflect the coverage 
    provided under the Plan during the period before the participant 
    became entitled to receive retired pay. A reduction under this 
    paragraph is in addition to any reduction under paragraph (1) and 
    is made without regard to whether there is an eligible dependent 
    child during a month for which the reduction is made.
        ``(4) Child-only coverage defined.--For the purposes of this 
    subsection, a participant in the Plan who is providing child-only 
    coverage is a participant who has a dependent child and who--
            ``(A) does not have an eligible spouse or former spouse; or
            ``(B) has a spouse or former spouse but has elected to 
        provide an annuity for dependent children only.
    ``(c) Reduction for Insurable Interest Coverage.--
        ``(1) Required reduction in retired pay.--The retired pay of a 
    person who has elected to provide an annuity to a person designated 
    by him under section 1450(a)(4) of this title shall be reduced as 
    follows:
            ``(A) Standard annuity.--In the case of a person providing 
        a standard annuity, the reduction shall be by 10 percent plus 5 
        percent for each full five years the individual designated is 
        younger than that person.
            ``(B) Reserve component annuity.--In the case of a person 
        providing a reserve-component annuity, the reduction shall be 
        by an amount prescribed under regulations of the Secretary of 
        Defense.
        ``(2) Limitation on total reduction.--The total reduction under 
    paragraph (1) may not exceed 40 percent.
        ``(3) Duration of reduction.--The reduction in retired pay 
    prescribed by this subsection shall continue during the lifetime of 
    the person designated under section 1450(a)(4) of this title or 
    until the person receiving retired pay changes his election under 
    section 1450(f) of this title.
        ``(4) Rule for computation.--Computation of a member's retired 
    pay for purposes of this subsection shallbe made without regard to 
any reduction under section 1409(b)(2) of this title.
    ``(d) Deposits To Cover Periods When Retired Pay Not Paid.--
        ``(1) Required deposits.--If a person who has elected to 
    participate in the Plan has been awarded retired pay and is not 
    entitled to that pay for any period, that person must deposit in 
    the Treasury the amount that would otherwise have been deducted 
    from his pay for that period.
        ``(2) Deposits not required when participant on active duty.--
    Paragraph (1) does not apply to a person with respect to any period 
    when that person is on active duty under a call or order to active 
    duty for a period of more than 30 days.
    ``(e) Deposits Not Required for Certain Participants in CSRS.--When 
a person who has elected to participate in the Plan waives that 
person's retired pay for the purposes of subchapter III of chapter 83 
of title 5, that person shall not be required to make the deposit 
otherwise required by subsection (d) as long as that waiver is in 
effect unless, in accordance with section 8339(i) of title 5, that 
person has notified the Office of Personnel Management that he does not 
desire a spouse surviving him to receive an annuity under section 
8331(b) of title 5.
    ``(f) Refunds of Deductions Not Allowed.--
        ``(1) General rule.--A person is not entitled to refund of any 
    amount deducted from retired pay under this section.
        ``(2) Exceptions.--Paragraph (1) does not apply--
            ``(A) in the case of a refund authorized by section 1450(e) 
        of this title; or
            ``(B) in case of a deduction made through administrative 
        error.
    ``(g) Discontinuation of Participation by Participants Whose 
Surviving Spouses Will Be Entitled to DIC.--
        ``(1) Discontinuation.--
            ``(A) Conditions.--Notwithstanding any other provision of 
        this subchapter but subject to paragraphs (2) and (3), a person 
        who has elected to participate in the Plan and who is suffering 
        from a service-connected disability rated by the Secretary of 
        Veterans Affairs as totally disabling and has suffered from 
        such disability while so rated for a continuous period of 10 or 
        more years (or, if so rated for a lesser period, has suffered 
        from such disability while so rated for a continuous period of 
        not less than 5 years from the date of such person's last 
        discharge or release from active duty) may discontinue 
        participation in the Plan by submitting to the Secretary 
        concerned a request to discontinue participation in the Plan.
            ``(B) Effective date.--Participation in the Plan of a 
        person who submits a request under subparagraph (A) shall be 
        discontinued effective on the first day of the first month 
        following the month in which the request under subparagraph (A) 
        is received by the Secretary concerned. Effective on such date, 
        the Secretary concerned shall discontinue the reduction being 
        made in such person's retired pay on account of participation 
        in the Plan or, in the case of a person who has been required 
        to make deposits in the Treasury on account of participation in 
        the Plan, such person may discontinue making such deposits 
        effective on such date.
            ``(C) Form for request for discontinuation.--Any request 
        under this paragraph to discontinue participation in the Plan 
        shall be in such form and shall contain such information as the 
        Secretary concerned may require by regulation.
        ``(2) Consent of beneficiaries required.--A person described in 
    paragraph (1) may not discontinue participation in the Plan under 
    such paragraph without the written consent of the beneficiary or 
    beneficiaries of such person under the Plan.
        ``(3) Information on plan to be provided by secretary 
    concerned.--
            ``(A) Information to be provided promptly to participant.--
        The Secretary concerned shall furnish promptly to each person 
        who files a request under paragraph (1) to discontinue 
        participation in the Plan a written statement of the advantages 
        of participating in the Plan and the possible disadvantages of 
        discontinuing participation.
            ``(B) Right to withdraw discontinuation request.--A person 
        may withdraw a request made under paragraph (1) if it is 
        withdrawn within 30 days after having been submitted to the 
        Secretary concerned.
        ``(4) Refund of deductions from retired pay.--Upon the death of 
    a person described in paragraph (1) who discontinued participation 
    in the Plan in accordance with this subsection, any amount deducted 
    from the retired pay of that person under this section shall be 
    refunded to the person's surviving spouse.
        ``(5) Resumption of participation in plan.--
            ``(A) Conditions for resumption.--A person described in 
        paragraph (1) who discontinued participation in the Plan may 
        elect to participate again in the Plan if--
                ``(i) after having discontinued participation in the 
            Plan the Secretary of Veterans Affairs reduces that 
            person's service-connected disability rating to a rating of 
            less than total; and
                ``(ii) that person applies to the Secretary concerned, 
            within such period of time after the reduction in such 
            person's service-connected disability rating has been made 
            as the Secretary concerned may prescribe, to again 
            participate in the Plan and includes in such application 
            such information as the Secretary concerned may require.
            ``(B) Effective date of resumed coverage.--Such person's 
        participation in the Plan underthis paragraph is effective 
beginning on the first day of the month after the month in which the 
Secretary concerned receives the application for resumption of 
participation in the Plan.
            ``(C) Resumption of contributions.--When a person elects to 
        participate in the Plan under this paragraph, the Secretary 
        concerned shall begin making reductions in that person's 
        retired pay, or require such person to make deposits in the 
        Treasury under subsection (d), as appropriate, effective on the 
        effective date of such participation under subparagraph (B).
    ``(h) Increases in Reduction With Increases in Retired Pay.--
        ``(1) General rule.--Whenever retired pay is increased under 
    section 1401a of this title (or any other provision of law), the 
    amount of the reduction to be made under subsection (a) or (b) in 
    the retired pay of any person shall be increased at the same time 
    and by the same percentage as such retired pay is so increased.
    ``(i) Recomputation of Reduction Upon Recomputation of Retired 
Pay.--When the retired pay of a person who first became a member of a 
uniformed service on or after August 1, 1986, and who is a participant 
in the Plan is recomputed under section 1410 of this title upon the 
person's becoming 62 years of age, the amount of the reduction in such 
retired pay under this section shall be recomputed (effective on the 
effective date of the recomputation of such retired pay under section 
1410 of this title) so as to be the amount equal to the amount of such 
reduction that would be in effect on that date if increases in such 
retired pay under section 1401a(b) of this title, and increases in 
reductions in such retired pay under subsection (h), had been computed 
as provided in paragraph (2) of section 1401a(b) of this title (rather 
than under paragraph (3) of that section).

``Sec. 1453. Recovery of amounts erroneously paid

    ``(a) Recovery.--In addition to any other method of recovery 
provided by law, the Secretary concerned may authorize the recovery of 
any amount erroneously paid to a person under this subchapter by 
deduction from later payments to that person.
    ``(b) Authority To Waive Recovery.--Recovery of an amount 
erroneously paid to a person under this subchapter is not required if, 
in the judgment of the Secretary concerned and the Comptroller 
General--
        ``(1) there has been no fault by the person to whom the amount 
    was erroneously paid; and
        ``(2) recovery of such amount would be contrary to the purposes 
    of this subchapter or against equity and good conscience.

``Sec. 1454. Correction of administrative errors

    ``(a) Authority.--The Secretary concerned may, under regulations 
prescribed under section 1455 of this title, correct or revoke any 
election under this subchapter when the Secretary considers it 
necessary to correct an administrative error.
    ``(b) Finality.--Except when procured by fraud, a correction or 
revocation under this section is final and conclusive on all officers 
of the United States.

``Sec. 1455. Regulations

    ``(a) In General.--The President shall prescribe regulations to 
carry out this subchapter. Those regulations shall, so far as 
practicable, be uniform for the uniformed services.
    ``(b) Notice of Elections.--Regulations prescribed under this 
section shall provide that before the date on which a member becomes 
entitled to retired pay--
        ``(1) if the member is married, the member and the member's 
    spouse shall be informed of the elections available under section 
    1448(a) of this title and the effects of such elections; and
        ``(2) if the notification referred to in section 1448(a)(3)(E) 
    of this title is required, any former spouse of the member shall be 
    informed of the elections available and the effects of such 
    elections.
    ``(c) Procedure for Depositing Certain Receipts.--Regulations 
prescribed under this section shall establish procedures for depositing 
the amounts referred to in sections 1448(g), 1450(k)(2), and 1452(d) of 
this title.
    ``(d) Payments to Guardians and Fiduciaries.--
        ``(1) In general.--Regulations prescribed under this section 
    shall provide procedures for the payment of an annuity under this 
    subchapter in the case of--
            ``(A) a person for whom a guardian or other fiduciary has 
        been appointed; and
            ``(B) a minor, mentally incompetent, or otherwise legally 
        disabled person for whom a guardian or other fiduciary has not 
        been appointed.
        ``(2) Authorized procedures.--The regulations under paragraph 
    (1) may include provisions for the following:
            ``(A) In the case of an annuitant referred to in paragraph 
        (1)(A), payment of the annuity to the appointed guardian or 
        other fiduciary.
            ``(B) In the case of an annuitant referred to in paragraph 
        (1)(B), payment of the annuity to any person who, in the 
        judgment of the Secretary concerned, is responsible for the 
        care of the annuitant.
            ``(C) Subject to subparagraphs (D) and (E), a requirement 
        for the payee of an annuity to spend or invest the amounts paid 
        on behalf of the annuitant solely for benefit of the annuitant.
            ``(D) Authority for the Secretary concerned to permit the 
        payee to withhold from the annuity payment such amount, not in 
        excess of 4 percent of the annuity, as the Secretary concerned 
        considers a reasonable fee for the fiduciary services of the 
        payee when a court appointment order provides for payment of 
        such a fee to the payee for such services or the Secretary 
        concerned determines that payment of a fee to such payee is 
        necessary in order to obtain the fiduciary services of the 
        payee.
            ``(E) Authority for the Secretary concerned to require the 
        payee to provide a surety bond in an amountsufficient to 
protect the interests of the annuitant and to pay for such bond out of 
the annuity.
            ``(F) A requirement for the payee of an annuity to maintain 
        and, upon request, to provide to the Secretary concerned an 
        accounting of expenditures and investments of amounts paid to 
        the payee.
            ``(G) In the case of an annuitant referred to in paragraph 
        (1)(B)--
                ``(i) procedures for determining incompetency and for 
            selecting a payee to represent the annuitant for the 
            purposes of this section, including provisions for 
            notifying the annuitant of the actions being taken to make 
            such a determination and to select a representative payee, 
            an opportunity for the annuitant to review the evidence 
            being considered, and an opportunity for the annuitant to 
            submit additional evidence before the determination is 
            made; and
                ``(ii) standards for determining incompetency, 
            including standards for determining the sufficiency of 
            medical evidence and other evidence.
            ``(H) Provisions for any other matter that the President 
        considers appropriate in connection with the payment of an 
        annuity in the case of a person referred to in paragraph (1).
        ``(3) Legal effect of payment to guardian or fiduciary.--An 
    annuity paid to a person on behalf of an annuitant in accordance 
    with the regulations prescribed pursuant to paragraph (1) 
    discharges the obligation of the United States for payment to the 
    annuitant of the amount of the annuity so paid.''.
    SEC. 635. INCREASES IN SURVIVOR BENEFIT PLAN CONTRIBUTIONS TO BE 
      EFFECTIVE CONCURRENTLY WITH PAYMENT OF RETIRED PAY COST-OF-LIVING 
      INCREASES.
    (a) Survivor Benefit Plan.--Section 1452(h) of title 10, United 
States Code, as amended by section 634, is amended by adding at the end 
the following new paragraph:
        ``(2) Coordination when payment of increase in retired pay is 
    delayed by law.--
            ``(A) In general.--Notwithstanding paragraph (1), when the 
        initial payment of an increase in retired pay under section 
        1401a of this title (or any other provision of law) to a person 
        is for a month that begins later than the effective date of 
        that increase by reason of the application of subsection 
        (b)(2)(B) of such section (or section 631(b) of Public Law 104-
        106 (110 Stat. 364)), then the amount of the reduction in the 
        person's retired pay shall be effective on the date of that 
        initial payment of the increase in retired pay rather than the 
        effective date of the increase in retired pay.
            ``(B) Delay not to affect computation of annuity.--
        Subparagraph (A) may not be construed as delaying, for purposes 
        of determining the amount of a monthly annuity under section 
        1451 of this title, the effective date of an increase in a base 
        amount under subsection (h) of such section from the effective 
        date of an increase in retired pay under section 1401a of this 
        title to the date on which the initial payment of that increase 
        in retired pay is made in accordance with subsection (b)(2)(B) 
        of such section.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to retired pay payable for months beginning on or 
after the date of the enactment of this Act.
    SEC. 636. AMENDMENTS TO THE UNIFORMED SERVICES FORMER SPOUSES' 
      PROTECTION ACT.
    (a) Manner of Service of Process.--Subsection (b)(1)(A) of section 
1408 of title 10, United States Code, is amended by striking out 
``certified or registered mail, return receipt requested'' and 
inserting in lieu thereof ``facsimile or electronic transmission or by 
mail''.
    (b) Subsequent Court Order From Another State.--Subsection (d) of 
such section is amended by adding at the end the following new 
paragraph:
    ``(6)(A) The Secretary concerned may not accept service of a court 
order that is an out-of State modification, or comply with the 
provisions of such a court order, unless the court issuing that order 
has jurisdiction in the manner specified in subsection (c)(4) over both 
the member and the spouse or former spouse involved.
    ``(B) A court order shall be considered to be an out-of-State 
modification for purposes of this paragraph if the order--
        ``(i) modifies a previous court order under this section upon 
    which payments under this subsection are based; and
        ``(ii) is issued by a court of a State other than the State of 
    the court that issued the previous court order.''.
    SEC. 637. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY WAIVER OF 
      RETIRED PAY TO ENHANCE CIVIL SERVICE RETIREMENT ANNUITY.
    (a) Civil Service Retirement and Disability System.--(1) Subsection 
(c) of section 8332 of title 5, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4) If, after January 1, 1997, an employee or Member waives 
retired pay that is subject to a court order for which there has been 
effective service on the Secretary concerned for purposes of section 
1408 of title 10, the military service on which the retired pay is 
based may be credited as service for purposes of this subchapter only 
if the employee or Member authorizes the Director to deduct and 
withhold from the annuitypayable to the employee or Member under this 
subchapter an amount equal to the amount that, if the annuity payment 
was instead a payment of the employee's or Member's retired pay, would 
have been deducted and withheld and paid to the former spouse covered 
by the court order under such section 1408. The amount deducted and 
withheld under this paragraph shall be paid to that former spouse. The 
period of civil service employment by the employee or Member shall not 
be taken into consideration in determining the amount of the deductions 
and withholding or the amount of the payment to the former spouse. The 
Director of the Office of Personnel Management shall prescribe 
regulations to carry out this paragraph.''.
    (2) Paragraph (1) of such subsection is amended by striking out 
``Except as provided in paragraph (2)'' and inserting in lieu thereof 
``Except as provided in paragraphs (2) and (4)''.
    (b) Federal Employees' Retirement System.--(1) Subsection (c) of 
section 8411 of title 5, United States Code, is amended by adding at 
the end the following new paragraph:
    ``(5) If, after January 1, 1997, an employee or Member waives 
retired pay that is subject to a court order for which there has been 
effective service on the Secretary concerned for purposes of section 
1408 of title 10, the military service on which the retired pay is 
based may be credited as service for purposes of this chapter only if 
the employee or Member authorizes the Director to deduct and withhold 
from the annuity payable to the employee or Member under this 
subchapter an amount equal to the amount that, if the annuity payment 
was instead a payment of the employee's or Member's retired pay, would 
have been deducted and withheld and paid to the former spouse covered 
by the court order under such section 1408. The amount deducted and 
withheld under this paragraph shall be paid to that former spouse. The 
period of civil service employment by the employee or Member shall not 
be taken into consideration in determining the amount of the deductions 
and withholding or the amount of the payment to the former spouse. The 
Director of the Office of Personnel Management shall prescribe 
regulations to carry out this paragraph.''.
    (2) Paragraph (1) of such subsection is amended by striking 
``Except as provided in paragraph (2) or (3)'' and inserting ``Except 
as provided in paragraphs (2), (3), and (5)''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on January 1, 1997.
    SEC. 638. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME 
      WIDOWS.
    (a) Adjusted Annual Income Limitation Appliable to Eligibility for 
Income Supplement.--(1) Section 4 of Public Law 92-425 (10 U.S.C. 1448 
note) is amended--
        (A) in subsection (a)(3), by striking out ``$2,340'' and 
    inserting in lieu thereof ``the maximum annual rate of pension in 
    effect under section 1541(b) of title 38, United States Code''; and
        (B) in the first sentence of subsection (b), by striking out 
    ``$2,340 a year'' and inserting in lieu thereof ``the maximum 
    annual rate of pension in effect under section 1541(b) of title 38, 
    United States Code''.
    (2) Subsection (c) of such section is repealed.
    (b) Payments To Be Made by Secretary of Veterans Affairs.--Such 
section is further amended by adding at the end the following new 
subsection:
    ``(e)(1) Payment of annuities under this section shall be made by 
the Secretary of Veterans Affairs. If appropriate for administrative 
convenience (or otherwise determined appropriate by the Secretary of 
Veterans Affairs), that Secretary may combine a payment to any person 
for any month under this section with any other payment for that month 
under laws administered by the Secretary so as to provide that person 
with a single payment for that month.
    ``(2) The Secretary concerned shall annually transfer to the 
Secretary of Veterans Affairs such amounts as may be necessary for 
payments by the Secretary of Veterans Affairs under this section and 
for costs of the Secretary of Veterans Affairs in administering this 
section. Such transfers shall be made from amounts that would otherwise 
be used for payment of annuities by the Secretary concerned under this 
section. The authority to make such a transfer is in addition to any 
other authority of the Secretary concerned to transfer funds for a 
purpose other than the purpose for which the funds were originally made 
available. In the case of a transfer by the Secretary of a military 
department, the provisions of section 2215 of title 10, United States 
Code, do not apply.
    ``(3) The Secretary concerned shall promptly notify the Secretary 
of Veterans Affairs of any change in beneficiaries under this 
section.''.
    (c) Clarification of Continuing Eligiblity for Department of 
Veterans Affairs Pension.--Such section, as amended by subsection 
(a)(2), is further amended by inserting after subsection (b) the 
following new subsection (c):
    ``(c) The amount of an annuity payable under this section, although 
counted as income in determining the amount of any pension described in 
subsection (a)(2) of this section, shall not be considered to affect 
the eligiblity of the recipient of such annuity for such pension, even 
though, as a result of including the amount of the annuity as income, 
no amount of such pension is due.''.
    (d) Effective Date.--The amendments made by this section take 
effect on July 1, 1997, and apply with respect to payments of benefits 
for any month after June 1997.

                       Subtitle E--Other Matters

    SEC. 651. DISCRETIONARY ALLOTMENT OF PAY, INCLUDING RETIRED OR 
      RETAINER PAY.
    (a) Allotments Authorized.--Section 701 of title 37, United States 
Code, is amended by striking out subsection (d) and inserting in lieu 
thereof the following new subsections:
    ``(d) Under regulations prescribed by the Secretary of Defense, a 
member of the Army, Navy, Air Force, or Marine Corps and a contract 
surgeon of the Army, Navy, or Air Force may make allotments from the 
pay of the member or surgeon for the purpose of supporting relatives or 
for any other purpose that the Secretary considers proper. Such 
allotments may include a maximum of six allotments considered to be 
discretionary under such regulations. For a member or former member 
entitled to retired or retainer pay, a maximum of six discretionary 
allotments authorized during active military service may be continued 
into retired status, and new discretionary allotments may be authorized 
so long as the total number of discretionary allotments does not exceed 
six.
    ``(e) If an allotment made under subsection (d) is paid to the 
allottee before the disbursing officer receives a notice of 
discontinuance from the officer required by regulation to furnish the 
notice, the amount of the allotment shall be credited to the disbursing 
officer. If an allotment is erroneously paid because the officer 
required by regulation to so report failed to report the death of the 
allotter or any other fact that makes the allotment not payable, the 
amount of the payment not recovered from the allottee shall, if 
practicable, be collected by the Secretary concerned from the officer 
who failed to make the report.''.
    (b) Issuance of Regulations.--The Secretaries of the military 
departments shall prescribe regulations under subsection (d) of section 
701 of title 37, United States Code, as added by subsection (a), not 
later than October 1, 1997.
    SEC. 652. REIMBURSEMENT FOR ADOPTION EXPENSES INCURRED IN ADOPTIONS 
      THROUGH PRIVATE PLACEMENTS.
    (a) Department of Defense.--Section 1052(g) of title 10, United 
States Code, is amended--
        (1) in paragraph (1), by striking out ``State or local 
    government'' and all that follows through the period at the end of 
    the first sentence and inserting in lieu thereof ``qualified 
    adoption agency.''; and
        (2) by adding at the end the following new paragraph:
        ``(3) The term `qualified adoption agency' means any of the 
    following:
            ``(A) A State or local government agency which has 
        responsibility under State or local law for child placement 
        through adoption.
            ``(B) A nonprofit, voluntary adoption agency which is 
        authorized by State or local law to place children for 
        adoption.
            ``(C) Any other source authorized by a State to provide 
        adoption placement if the adoption is supervised by a court 
        under State or local law.''.
    (b) Coast Guard.--Section 514(g) of title 14, United States Code, 
is amended--
        (1) in paragraph (1), by striking out ``State or local 
    government'' and all that follows through the period at the end of 
    the first sentence and inserting in lieu thereof ``qualified 
    adoption agency.''; and
        (2) by adding at the end the following new paragraph:
        ``(3) The term `qualified adoption agency' means any of the 
    following:
            ``(A) A State or local government agency which has 
        responsibility under State or local law for child placement 
        through adoption.
            ``(B) A nonprofit, voluntary adoption agency which is 
        authorized by State or local law to place children for 
        adoption.
            ``(C) Any other source authorized by a State to provide 
        adoption placement if the adoption is supervised by a court 
        under State or local law.''.
    SEC. 653. WAIVER OF RECOUPMENT OF AMOUNTS WITHHELD FOR TAX PURPOSES 
      FROM CERTAIN SEPARATION PAY.
    (a) In General.--Section 1174(h)(2) of title 10, United States 
Code, is amended by inserting before the period at the end of the first 
sentence the following: ``, less the amount of Federal income tax 
withheld from such pay (such withholding being at the flat withholding 
rate for Federal income tax withholding, as in effect pursuant to 
regulations prescribed under chapter 24 of the Internal Revenue Code of 
1986)''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1996, and shall apply to payments of separation 
pay, severance pay, or readjustment pay that are made after September 
30, 1996.
    SEC. 654. TECHNICAL CORRECTION CLARIFYING LIMITATION ON FURNISHING 
      CLOTHING OR ALLOWANCES FOR ENLISTED NATIONAL GUARD TECHNICIANS.
    Section 418(c) of title 37, United States Code, is amended by 
striking out ``for which a uniform allowance is paid under section 415 
or 416 of this title'' and inserting in lieu thereof ``for which 
clothing is furnished or a uniform allowance is paid under this 
section''.
    SEC. 655. TECHNICAL CORRECTION TO PRIOR AUTHORITY FOR PAYMENT OF 
      BACKPAY TO CERTAIN PERSONS.
    Section 634 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 366) is amended--
        (1) in subsection (b)(1), by striking out ``Island of Bataan'' 
    and inserting in lieu thereof ``peninsula of Bataan or island of 
    Corregidor''; and
        (2) in subsection (c), by inserting after the first sentence 
    the following: ``For the purposes of this subsection, the Secretary 
    of War shall be deemed to have determinedthat conditions in the 
Philippines during the specified period justified payment under 
applicable regulations of quarters and subsistence allowances at the 
maximum special rate for duty where emergency conditions existed.''.
    SEC. 656. COMPENSATION FOR PERSONS AWARDED PRISONER OF WAR MEDAL 
      WHO DID NOT PREVIOUSLY RECEIVE COMPENSATION AS A PRISONER OF WAR.
    (a) Authority To Make Payments.--The Secretary of the military 
department concerned shall make payments in the manner provided in 
section 6 of the War Claims Act of 1948 (50 U.S.C. App. 2005) to (or on 
behalf of) any person described in subsection (b) who submits an 
application for such payment in accordance with subsection (d).
    (b) Eligible Persons.--This section applies with respect to a 
member or former member of the Armed Forces who--
        (1) has received the prisoner of war medal under section 1128 
    of title 10, United States Code; and
        (2) has not previously received a payment under section 6 of 
    the War Claims Act of 1948 (50 U.S.C. App. 2005) with respect to 
    the period of internment for which the person received the prisoner 
    of war medal.
    (c) Amount of Payment.--The amount of the payment to any person 
under this section shall be determined based upon the provisions of 
section 6 of the War Claims Act of 1948 that are applicable with 
respect to the period of time during which the internment occurred for 
which the person received the prisoner of war medal.
    (d) One-Year Period for Submission of Applications.--A payment may 
be made by reason of this section only in the case of a person who 
submits an application to the Secretary concerned for such payment 
during the one-year period beginning on the date of the enactment of 
this Act. Any such application shall be submitted in such form and 
manner as the Secretary may require.
    SEC. 657. PAYMENTS TO CERTAIN PERSONS CAPTURED AND INTERNED BY 
      NORTH VIETNAM.
    (a) Payment Authorized to Eligible Persons.--(1) Using amounts made 
available under subsection (g), the Secretary of Defense shall make a 
payment under this section to a person who demonstrates to the 
satisfaction of the Secretary of Defense that the person was captured 
and incarcerated by the Democratic Republic of Vietnam as a result of 
the participation by the person in operations conducted under OPLAN 34A 
or its predecessor.
    (2) Using amounts made available under subsection (g), the 
Secretary of Defense shall also make a payment under this section to a 
person who demonstrates to the satisfaction of the Secretary of Defense 
that the person--
        (A) served as a Vietnamese operative pursuant to OPLAN 35;
        (B) was captured and incarcerated by North Vietnamese forces as 
    a result of the participation by the person in operations in Laos 
    or along the Lao-Vietnamese border pursuant to OPLAN 35;
        (C) remained in captivity after 1973 (or died in captivity); 
    and
        (D) has not previously received payment from the United States 
    for the period spent in captivity.
    (3) A payment may not be made under this section to, or with 
respect to, a person who the Secretary of Defense determines, based on 
the available evidence, served in the Peoples Army of Vietnam or 
provided active assistance to the Government of the Democratic Republic 
of Vietnam during the period from 1958 through 1975.
    (b) Effect of Death of Eligible Person.--In the case of a decedent 
who would have been eligible for a payment under this section if alive, 
the documentation required under subsection (a) may be provided by 
survivors of the decedent, and the payment under this section shall be 
made to survivors of the decedent in the following order:
        (1) To the surviving spouse.
        (2) If there is no surviving spouse, to the surviving children 
    (including natural children and adopted children) of the decedent, 
    in equal shares.
    (c) Amount Payable.--The amount payable to, or with respect to, a 
person under this section is $40,000. If a person can demonstrate to 
the Secretary of Defense that confinement or incarceration exceeded 20 
years, the Secretary may pay an additional $2,000 for each full year in 
excess of 20 (and a proportionate amount for a partial year), but the 
total amount paid to, or with respect to, a person under this section 
may not exceed $50,000.
    (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 Defense within 18 months of the effective date of the 
regulations implementing 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.--(1) The Secretary of Defense shall prescribe 
regulations to carry out this section. Such regulations shall include 
procedures by which persons may submit claims for payment under this 
section. Such regulations shall be prescribed not later than six months 
after the date of the enactment of this Act.
    (2) The Secretary of Defense may establish guidelines regarding 
what constitutes adequate documentation for determining whether a 
person satisfies the requirements specified in subsection (a) regarding 
eligibility for a payment under this section. Such guidelines shall be 
established in consultation with the heads of other agencies of the 
Government involved with OPLAN 34A or its predecessor or OPLAN 35.
    (f) Limitation on Disbursement.--(1) The actual disbursement of a 
payment under this section may be made onlyto the person who is 
eligible for the payment under subsection (a) or (b) and only--
        (A) upon the appearance of that person, in person, at any 
    designated disbursement office in the United States or its 
    territories; or
        (B) at such other location or in such other manner as that 
    person may request in writing.
    (2) In the case of a claim approved for payment but not disbursed 
as a result of operation of paragraph (1), the Secretary of Defense 
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) Funding.--To the extent provided in advance for this section in 
appropriations Acts, of amounts authorized to be appropriated under 
section 301(24) for this purpose, $20,000,000 shall be available until 
expended for payments under this section.
    (h) Payment in Full Satisfaction of Claims Against the United 
States.--The acceptance of payment by, or with respect to, a person 
under this section shall be in full satisfaction of all claims by or on 
behalf of that individual against the United States arising from 
operations under OPLAN 34A or its predecessor or OPLAN 35.
    (i) 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 a payment made under this section on 
that claim.
    (j) No Right to Judicial Review.--All determinations by the 
Secretary of Defense pursuant to this section are final and conclusive, 
notwithstanding any other provision of law. Claimants under this 
section have no right to judicial review, and such review is 
specifically precluded.
    (k) Reports to Congress.--(1) Not later than 24 months after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report on the payment of claims under this 
section.
    (2) After the submission of the report under paragraph (1), the 
Secretary shall periodically submit to Congress a report on the status 
of payment of claims under this section.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Preventive health care screening for colon and prostate 
cancer.
Sec. 702. Implementation of requirement for Selected Reserve dental 
insurance plan.
Sec. 703. Dental insurance plan for military retirees and unremarried 
surviving spouses and certain other dependents of military retirees.
Sec. 704. Plan for health care coverage for children with medical 
conditions caused by parental exposure to chemical munitions while 
serving as members of the Armed Forces.

                       Subtitle B--TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.
Sec. 712. Improved information exchange between military treatment 
facilities and TRICARE program contractors.
Sec. 713. Plans for medicare subvention demonstration programs.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Definitions.
Sec. 722. Inclusion of designated providers in uniformed services health 
care delivery system.
Sec. 723. Provision of uniform benefit by designated providers.
Sec. 724. Enrollment of covered beneficiaries.
Sec. 725. Application of CHAMPUS payment rules.
Sec. 726. Payments for services.
Sec. 727. Repeal of superseded authorities.

    Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically 
necessary treatment in connection with certain clinical trials.
Sec. 732. Exception to maximum allowable payments to individual health-
care providers under CHAMPUS.
Sec. 733. Codification of annual authority to credit CHAMPUS refunds to 
current year appropriation.
Sec. 734. Exceptions to requirements regarding obtaining 
nonavailability-of-health-care statements.
Sec. 735. Enhancement of third-party collection and secondary payer 
authorities under CHAMPUS.

                        Subtitle E--Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed 
Forces Health Professions Scholarship and Financial Assistance program 
and Uniformed Services University of the Health Sciences.
Sec. 742. External peer review for defense health program extramural 
medical research involving human subjects.
Sec. 743. Independent research regarding Gulf War syndrome.
Sec. 744. Comptroller General review of health care activities of 
Department of Defense relating to Gulf War illnesses.
Sec. 745. Report regarding specialized treatment facility program.
Sec. 746. Study of means of ensuring uniformity in provision of medical 
and dental care for members of reserve components.
Sec. 747. Sense of Congress regarding tax treatment of Armed Forces 
Health Professions Scholarship and Financial Assistance program.

                    Subtitle A--Health Care Services

    SEC. 701. PREVENTIVE HEALTH CARE SCREENING FOR COLON AND PROSTATE 
      CANCER.
    (a) Members and Former Members.--(1) Section 1074d of title 10, 
United States Code, is amended--
        (A) in subsection (a)--
            (i) by inserting ``(1)'' before ``Female''; and
            (ii) by adding at the end the following new paragraph:
    ``(2) Male members and former members of the uniformed services 
entitled to medical care under section 1074 or 1074a of this title 
shall also be entitled to preventive health care screening for colon or 
prostate cancer at such intervals and using such screening methods as 
the administering Secretaries consider appropriate.''; and
        (B) in subsection (b), by adding at the end the following new 
    paragraph:
        ``(8) Colon cancer screening, at the intervals and using the 
    screening methods prescribed under subsection (a)(2).''.
    (2)(A) The heading of such section is amended to read as follows:
``Sec. 1074d. Certain primary and preventive health care services
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 55 of such title is amended to read as 
follows:

``1074d. Certain primary and preventive health care services.''.

    (b) Dependents.--(1) Section 1077(a) of such title is amended by 
adding at the end the following new paragraph:
        ``(14) Preventive health care screening for colon or prostate 
    cancer, at the intervals and using the screening methods prescribed 
    under section 1074d(a)(2) of this title.''.
    (2) Section 1079(a)(2) of such title is amended--
        (A) in the matter preceding subparagraph (A), by inserting 
    ``the schedule and method of colon and prostate cancer 
    screenings,'' after ``pap smears and mammograms,''; and
        (B) in subparagraph (B), by inserting ``or colon and prostate 
    cancer screenings'' after ``pap smears and mammograms''.
    SEC. 702. IMPLEMENTATION OF REQUIREMENT FOR SELECTED RESERVE DENTAL 
      INSURANCE PLAN.
    (a) Implementation by Contract.--Subsection (a) of section 1076b of 
title 10, United States Code, is amended--
        (1) by inserting ``(1)'' after ``(a) Authority To Establish 
    Plan.--'';
        (2) by designating the third sentence as paragraph (3); and
        (3) by inserting after paragraph (1), as designated by 
    paragraph (1) of this subsection, the following new paragraph:
    ``(2) The Secretary shall provide benefits under the plan through 
one or more contracts awarded after full and open competition.''.
    (b) Collection of Premiums of Members Not Receiving Basic Pay.--
Subsection (b)(3) of such section is amended by adding at the end the 
following: ``In the case of a member who does not receive basic pay, 
the Secretary of Defense shall establish procedures for the collection 
of the member's share of the premium for coverage.''.
    (c) Schedule for Implementation.--Section 705(b) of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 373; 10 U.S.C. 1076b note) is amended--
        (1) in the first sentence, by striking out ``October 1, 1996'' 
    and inserting in lieu thereof ``October 1, 1997''; and
        (2) by striking out ``fiscal year 1996'' both places it appears 
    and inserting in lieu thereof ``fiscal years 1996 and 1997''.
    SEC. 703. DENTAL INSURANCE PLAN FOR MILITARY RETIREES AND 
      UNREMARRIED SURVIVING SPOUSES AND CERTAIN OTHER DEPENDENTS OF 
      MILITARY RETIREES.
    (a) Establishment of Dental Plan.--(1) Chapter 55 of title 10, 
United States Code, is amended by inserting after section 1076b the 
following new section:
 ``Sec. 1076c. Dental insurance plan: certain retirees and their 
      surviving spouses and other dependents
    ``(a) Requirement for Plan.--The Secretary of Defense shall 
establish a dental insurance plan for military retirees, certain 
unremarried surviving spouses, and dependents in accordance with this 
section.
    ``(b) Persons Eligible for Plan.--The following persons are 
eligible to enroll in the dental insurance plan established under 
subsection (a):
        ``(1) Members of the Armed Forces who are entitled to retired 
    pay.
        ``(2) Members of the Retired Reserve who would be entitled to 
    retired pay under chapter 1223 of this title but for being under 60 
    years of age.
        ``(3) Eligible dependents of a member described in paragraph 
    (1) or (2) who are covered by the enrollment of the member in the 
    plan.
        ``(4) The unremarried surviving spouse and eligible child 
    dependents of a deceased member--
            ``(A) who dies while in a status described in paragraph (1) 
        or (2); or
            ``(B) who is described in section 1448(d)(1) of this title.
    ``(c) Premiums.--(1) A member enrolled in the dental insurance plan 
established under subsection (a) shall pay the premiums charged for the 
insurance coverage.
    ``(2) The amount of the premiums payable by a member entitled to 
retired pay shall be deducted and withheld from the retired pay and 
shall be disbursed to pay the premiums. The regulations prescribed 
under subsection (h) shall specify the procedures for payment of the 
premiums by other enrolled members and by enrolled surviving spouses.
    ``(d) Benefits Available Under the Plan.--The dental insurance plan 
established under subsection (a) shall provide benefits for basic 
dental care and treatment, including diagnostic services, preventative 
services, basic restorative services (including endodontics), surgical 
services, and emergency services.
    ``(e) Coverage.--(1) The Secretary shall prescribe a minimum 
required period for enrollment by a member or surviving spouse in the 
dental insurance plan established under subsection (a).
    ``(2) The dental insurance plan shall provide for voluntary 
enrollment of participants and shall authorize a member or eligible 
unremarried surviving spouse to enroll for self only or for self and 
eligible dependents.
    ``(f) Termination of Enrollment.--The Secretary shall terminate the 
enrollment of any enrollee, and any eligible dependents of the enrollee 
covered by the enrollment, in the dental insurance plan established 
under subsection (a) upon the occurrence of the following:
        ``(1) In the case of an enrollment under subsection (b)(1), 
    termination of the member's entitlement to retired pay.
        ``(2) In the case of an enrollment under subsection (b)(2), 
    termination of the member's status as a member of the Retired 
    Reserve.
        ``(3) In the case of an enrollment under subsection (b)(4), 
    remarriage of the surviving spouse.
    ``(g) Continuation of Dependents' Enrollment Upon Death of 
Enrollee.--Coverage of a dependent in the dental insurance plan 
established under subsection (a) under an enrollment of a member or a 
surviving spouse who dies during the period of enrollment shall 
continue until the end of that period and may be renewed by (or for) 
the dependent, so long as the premium paid is sufficient to cover 
continuation of the dependent's enrollment. The Secretary may terminate 
coverage of the dependent when the premiums paid are no longer 
sufficient to cover continuation of the enrollment. The Secretary shall 
prescribe in regulations under subsection (h) the parties responsible 
for paying the remaining premiums due on the enrollment and the manner 
for collection of the premiums.
    ``(h) Regulations.--The dental insurance plan established under 
subsection (a) shall be administered under regulations prescribed by 
the Secretary of Defense, in consultation with the Secretary of 
Transportation.
    ``(i) Definitions.--In this section:
        ``(1) The term `eligible dependent' means a dependent described 
    in subparagraph (A), (D), or (I) of section 1072(2) of this title.
        ``(2) The term `eligible child dependent' means a dependent 
    described in subparagraph (D) or (I) of section 1072(2) of this 
    title.
        ``(3) The term `retired pay' includes retainer pay.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1076b the 
following new item:

``1076c. Dental insurance plan: certain retirees and their surviving 
          spouses and other dependents.''.

    (b) Implementation.--Beginning not later than October 1, 1997, the 
Secretary of Defense shall--
        (1) offer members of the Armed Forces and other persons 
    described in subsection (b) of section 1076c of title 10, United 
    States Code (as added by subsection (a)(1) of this section), the 
    opportunity to enroll in the dental insurance plan required under 
    that section; and
        (2) begin to provide benefits under the plan.
    SEC. 704. PLAN FOR HEALTH CARE COVERAGE FOR CHILDREN WITH MEDICAL 
      CONDITIONS CAUSED BY PARENTAL EXPOSURE TO CHEMICAL MUNITIONS 
      WHILE SERVING AS MEMBERS OF THE ARMED FORCES.
    (a) Plan Required.--The Secretary of Defense, in coordination with 
the Secretary of Veterans Affairs, shall develop a plan for ensuring 
the provision of medical care to any natural child of a member of the 
Armed Forces (including former members and members discharged or 
otherwise separated from active duty) who has a congenital defect or 
catastrophic illness, proven to a reasonable degree of scientific 
certainty on the basis of scientific research to have resulted from 
exposure of the member to a chemical warfare agent or other hazardous 
material to which the member was exposed during active military 
service.
    (b) Submission to Congress.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit the 
plan developed under subsection (a) to Congress.
    (c) Definitions of Congenital Defect and Catastrophic Illness.--The 
Secretary of Defense shall prescribe in regulations a definition of the 
terms ``congenital defect'' and ``catastrophic illness'' for the 
purposes of this section.

                      Subtitle B--TRICARE Program

    SEC. 711. CHAMPUS PAYMENT LIMITS FOR TRICARE PRIME ENROLLEES.
    Section 1079(h)(4) of title 10, United States Code, is amended in 
the second sentence by striking out ``emergency''.
    SEC. 712. IMPROVED INFORMATION EXCHANGE BETWEEN MILITARY TREATMENT 
      FACILITIES AND TRICARE PROGRAM CONTRACTORS.
    (a) Uniform Interfaces.--The Secretary of Defense shall ensure that 
the automated medical information system being developed by the 
Department of Defense (known as the Composite Health Care System) 
provides for uniform interfaces between information systems of military 
treatment facilities and private contractors under managed care 
programs of the TRICARE program. The uniform interface shall provide 
for a full electronic two-way exchange of health care information 
between the military treatment facilities and contractor information 
systems, including enrollment information, information regarding 
eligibility determinations, provider network information, appointment 
information, and information regarding the existence of third-party 
payers.
    (b) Amendment of Existing Contracts.--To assure a single consistent 
source of information throughout the health care delivery system of the 
uniformed services, the Secretary of Defense shall amend each TRICARE 
program contract, with the consent of the TRICARE program contractor 
and notwithstanding any requirement for competition, to require the 
contractor--
        (1) to use software furnished under the Composite Health Care 
    System to record military treatment facility provider appointments; 
    and
        (2) to record TRICARE program enrollment through direct use of 
    the Composite Health Care System software or through the uniform 
    two-way interface between the contractor and military treatment 
    facilities systems, where applicable.
    (c) Definition of TRICARE Program.--For purposes of this section, 
the term ``TRICARE program'' means the managed health care program that 
is established by the Secretary of Defense under the authority of 
chapter 55 of title 10, United States Code, principally section 1097 of 
such title, and includes the competitive selection of contractors to 
financially underwrite the delivery of health care services under the 
Civilian Health and Medical Program of the Uniformed Services.
    SEC. 713. PLANS FOR MEDICARE SUBVENTION DEMONSTRATION PROGRAMS.
    (a) Program for Enrollment in TRICARE Managed Care Option.--Not 
later than September 6, 1996, the Secretary of Defense and the 
Secretary of Health and Human Services shall jointly submit to Congress 
and the President a report containing a specific plan (including the 
recommendations of the Secretaries required under subsection (b)) 
regarding the establishment of a demonstration program under which--
        (1) covered beneficiaries under chapter 55 of title 10, United 
    States Code, who are also entitled to benefits under part A of the 
    medicare program are permitted to enroll in the managed care option 
    of the TRICARE program; and
        (2) the Secretary of Health and Human Services reimburses the 
    Secretary of Defense from the Medicare program on a capitated basis 
    for the costs of providing health care services to military 
    retirees who enroll.
    (b) Specific Elements of Report.--The report shall include the 
following:
        (1) The number of covered beneficiaries described in subsection 
    (a) who are projected to participate in the demonstration program 
    and the minimum number of such participants necessary to conduct 
    the demonstration program effectively.
        (2) A plan for notifying such covered beneficiaries of their 
    eligibility for enrollment in the demonstration program and for any 
    other matters connected with enrollment.
        (3) A recommendation for the duration of the demonstration 
    program.
        (4) A recommendation for the geographic regions in which the 
    demonstration program should be conducted.
        (5) The appropriate level of capitated reimbursement, and a 
    schedule for such reimbursement, from the Medicare program to the 
    Department of Defense for health care services provided enrollees 
    in the demonstration program.
        (6) An estimate of the amounts that, in the absence of the 
    demonstration program, would be required to be allocated by the 
    Department of Defense for the provision of health care services to 
    covered beneficiaries described in subsection (a) who reside in the 
    regions in which the demonstration program is proposed to be 
    conducted.
        (7) An assessment of revisions to the allocation estimated 
    under paragraph (6) that would result from the conduct of the 
    demonstration program in such regions.
        (8) An estimate of the cost to the Department of Defense and to 
    the Medicare program of providing health care services to covered 
    beneficiaries described in subsection (a) who enroll in the 
    demonstration program.
        (9) An assessment of the likelihood of cost shifting among the 
    Department of Defense and the Medicare program under the 
    demonstration program.
        (10) A proposal for mechanisms for reconciling and reimbursing 
    any improper payments among the Department of Defense and the 
    Medicare program under the demonstration program.
        (11) A methodology for evaluating the demonstration program, 
    including cost analyses.
        (12) As assessment of the extent to which the TRICARE program 
    is prepared to meet requirements of the Medicare program for 
    purposes of the demonstration program and the provisions of law or 
    regulation that would have to be waived in order to facilitate the 
    carrying out of the demonstration program.
        (13) An assessment of the impact of the demonstration program 
    on military readiness.
        (14) Contingency plans for the provision of health care 
    services under the demonstration program in the event of the 
    mobilization of health care personnel.
        (15) A recommendation of the reports that the Department of 
    Defense and the Department of Health and Human Services should 
    submit to Congress describing the conduct of the demonstration 
    program.
    (c) Program for Enrollment in TRICARE Fee-For-Service Option.--Not 
later than January 3, 1997, the Secretary of Defense and the Secretary 
of Health and Human Services shall jointly submit to Congress and the 
President a report on the feasibility and advisability of expanding the 
demonstration program referred to in subsection (a) so as to provide 
the Department of Defense with reimbursement from the Medicare program 
on a fee-for-service basis for health care services provided covered 
beneficiaries described in subsection (a) who enroll in the 
demonstration program. The report shall include a proposal for the 
expansion of the program if the expansion is determined to be 
advisable.

          Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. DEFINITIONS.

    In this subtitle:
        (1) The term ``administering Secretaries'' means the Secretary 
    of Defense, the Secretary of Transportation, and the Secretary of 
    Health and Human Services.
        (2) The term ``agreement'' means the agreement required under 
    section 722(b) between the Secretary of Defense and a designated 
    provider.
        (3) The term ``capitation payment'' means an actuarially sound 
    payment for a defined set of health care services that is 
    established on a per enrollee per month basis.
        (4) The term ``covered beneficiary'' means a beneficiary under 
    chapter 55 of title 10, United States Code, other than a 
    beneficiary under section 1074(a) of such title.
        (5) The term ``designated provider'' means a public or 
    nonprofit private entity that was a transferee of a Public Health 
    Service hospital or other station under section 987 of the Omnibus 
    Budget Reconciliation Act of 1981 (Public Law 97-35; 42 U.S.C. 
    248b) and that, before the date of the enactment of this Act, was 
    deemed to be a facility of the uniformed services for the purposes 
    of chapter 55 of title 10, United States Code. The term includes 
    any legal successor in interest of the transferee.
        (6) The term ``enrollee'' means a covered beneficiary who 
    enrolls with a designated provider.
        (7) The term ``health care services'' means the health care 
    services provided under the health plan known as the ``TRICARE 
    PRIME'' option under the TRICARE program.
        (8) The term ``Secretary'' means the Secretary of Defense.
        (9) The term ``TRICARE program'' means the managed health care 
    program that is established by the Secretary of Defense under the 
    authority of chapter 55 of title 10, United States Code, 
    principally section 1097 of such title, and includes the 
    competitive selection of contractors to financially underwrite the 
    delivery of health care services under the Civilian Health and 
    Medical Program of the Uniformed Services.
    SEC. 722. INCLUSION OF DESIGNATED PROVIDERS IN UNIFORMED SERVICES 
      HEALTH CARE DELIVERY SYSTEM.
    (a) Inclusion in System.--The health care delivery system of the 
uniformed services shall include the designated providers.
    (b) Agreements to Provide Managed Health Care Services.--(1) After 
consultation with the other administering Secretaries, the Secretary of 
Defense shall negotiate and enter into an agreement with each 
designated provider under which the designated provider will provide 
health care services in or through managed care plans to covered 
beneficiaries who enroll with the designated provider.
    (2) The agreement shall be entered into on a sole source basis. The 
Federal Acquisition Regulation, except for those requirements regarding 
competition, issued pursuant to section 25(c) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 421(c)) shall apply to the agreements 
as acquisitions of commercial items.
    (3) The implementation of an agreement is subject to availability 
of funds for such purpose.
    (c) Effective Date of Agreements.--(1) Unless an earlier effective 
date is agreed upon by the Secretary and the designated provider, the 
agreement shall take effect upon the later of the following:
        (A) The date on which a managed care support contract under the 
    TRICARE program is implemented in the service area of the 
    designated provider.
        (B) October 1, 1997.
    (2) Notwithstanding paragraph (1), the designated provider whose 
service area includes Seattle, Washington, shall implement its 
agreement as soon as the agreement permits.
    (d) Temporary Continuation of Existing Participation Agreements.--
The Secretary shall extend the participation agreement of a designated 
provider in effect immediately before the date of the enactment of this 
Act under section 718(c) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 248c) until the 
agreement required by this section takes effect under subsection (c).
    (e) Service Area.--The Secretary may not reduce the size of the 
service area of a designated provider below the size of the service 
area in effect as of September 30, 1996.
    (f) Compliance With Administrative Requirements.--(1) Unless 
otherwise agreed upon by the Secretary and a designated provider, the 
designated provider shall comply with necessary and appropriate 
administrative requirements established by the Secretary for other 
providers of health care services and requirements established by the 
Secretary of Health and Human Services for risk-sharing contractors 
under section 1876 of the Social Security Act (42 U.S.C. 1395mm). The 
Secretary and the designated provider shall determine and apply only 
such administrative requirements as are minimally necessary and 
appropriate. A designated provider shall not be required to comply with 
a law or regulation of a State government requiring licensure as a 
health insurer or health maintenance organization.
    (2) A designated provider may not contract out more than five 
percent of its primary care enrollment without the approval of the 
Secretary, except in the case of primary care contracts between a 
designated provider and a primary care contractor in force on the date 
of the enactment of this Act.
    SEC. 723. PROVISION OF UNIFORM BENEFIT BY DESIGNATED PROVIDERS.
    (a) Uniform Benefit Required.--A designated provider shall offer to 
enrollees the health benefit option prescribed and implemented by the 
Secretary under section 731 of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 1073 note), 
including accompanying cost-sharing requirements.
    (b) Time for Implementation of Benefit.--A designated provider 
shall offer the health benefit option described in subsection (a) to 
enrollees upon the later of the following:
        (1) The date on which health care services within the health 
    care delivery system of the uniformed services are rendered through 
    the TRICARE program in the region in which the designated provider 
    operates.
        (2) October 1, 1997.
    (c) Adjustments.--The Secretary may establish a later date under 
subsection (b)(2) or prescribe reduced cost-sharing requirements for 
enrollees.

SEC. 724. ENROLLMENT OF COVERED BENEFICIARIES.

    (a) Fiscal Year 1997 Limitation.--(1) During fiscal year 1997, the 
number of covered beneficiaries who are enrolled in managed care plans 
offered by designated providers may not exceed the number of such 
enrollees as of October 1, 1995.
    (2) The Secretary may waive the limitation under paragraph (1) if 
the Secretary determines that additional enrollment authority for a 
designated provider is required to accommodate covered beneficiaries 
who are dependents of members of the uniformed services entitled to 
health care under section 1074(a) of title 10, United States Code.
    (b) Permanent Limitation.--For each fiscal year beginning after 
September 30, 1997, the number of enrollees in managed care plans 
offered by designated providers may not exceed 110 percent of the 
number of such enrollees as of the first day of the immediately 
preceding fiscal year. The Secretary may waive this limitation as 
provided in subsection (a)(2).
    (c) Retention of Current Enrollees.--An enrollee in the managed 
care plan of a designated provider as of September 30, 1997, or such 
earlier date as the designated provider and the Secretary may agree 
upon, shall continue receiving services from the designated provider 
pursuant to the agreement entered into under section 722 unless the 
enrollee disenrolls from the designated provider. Except as provided in 
subsection (e), the administering Secretaries may not disenroll such an 
enrollee unless the disenrollment is agreed to by the Secretary and the 
designated provider.
    (d) Additional Enrollment Authority.--Other covered beneficiaries 
may also receive health care services from a designated provider, 
except that the designated provider may market such services to, and 
enroll, only those covered beneficiaries who--
        (1) do not have other primary health insurance coverage (other 
    than Medicare coverage) covering basic primary care and inpatient 
    and outpatient services; or
        (2) are enrolled in the direct care system under the TRICARE 
    program, regardless of whether the covered beneficiaries were users 
    of the health care delivery system of the uniformed services in 
    prior years.
    (e) Special Rule for Medicare-Eligible Beneficiaries.--If a covered 
beneficiary who desires to enroll in the managed care program of a 
designated provider is also entitled to hospital insurance benefits 
under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c 
et seq.), the covered beneficiary shall elect whether to receive health 
care services as an enrollee or under part A of title XVIII of the 
Social Security Act. The Secretary may disenroll an enrollee who 
subsequently violates the election made under this subsection and 
receives benefits under part A of title XVIII of the Social Security 
Act.
    (f) Information Regarding Eligible Covered Beneficiaries.--The 
Secretary shall provide, in a timely manner, a designated provider with 
an accurate list of covered beneficiaries within the marketing area of 
the designated provider to whom the designated provider may offer 
enrollment.

SEC. 725. APPLICATION OF CHAMPUS PAYMENT RULES.

    (a) Application of Payment Rules.--Subject to subsection (b), the 
Secretary shall require a private facility orhealth care provider that 
is a health care provider under the Civilian Health and Medical Program 
of the Uniformed Services to apply the payment rules described in 
section 1074(c) of title 10, United States Code, in imposing charges 
for health care that the private facility or provider provides to 
enrollees of a designated provider.
    (b) Authorized Adjustments.--The payment rules imposed under 
subsection (a) shall be subject to such modifications as the Secretary 
considers appropriate. The Secretary may authorize a lower rate than 
the maximum rate that would otherwise apply under subsection (a) if the 
lower rate is agreed to by the designated provider and the private 
facility or health care provider.
    (c) Regulations.--The Secretary shall prescribe regulations to 
implement this section after consultation with the other administering 
Secretaries.
    (d) Conforming Amendment.--Section 1074 of title 10, United States 
Code, is amended by striking out subsection (d).

SEC. 726. PAYMENTS FOR SERVICES.

    (a) Form of Payment.--Unless otherwise agreed to by the Secretary 
and a designated provider, the form of payment for health care services 
provided by a designated provider shall be on a full risk capitation 
payment basis. The capitation payments shall be negotiated and agreed 
upon by the Secretary and the designated provider. In addition to such 
other factors as the parties may agree to apply, the capitation 
payments shall be based on the utilization experience of enrollees and 
competitive market rates for equivalent health care services for a 
comparable population to such enrollees in the area in which the 
designated provider is located.
    (b) Limitation on Total Payments.--Total capitation payments for 
health care services to a designated provider shall not exceed an 
amount equal to the cost that would have been incurred by the 
Government if the enrollees had received such health care services 
through a military treatment facility, the TRICARE program, or the 
Medicare program, as the case may be.
    (c) Establishment of Payment Rates on Annual Basis.--The Secretary 
and a designated provider shall establish capitation payments on an 
annual basis, subject to periodic review for actuarial soundness and to 
adjustment for any adverse or favorable selection reasonably 
anticipated to result from the design of the program under this 
subtitle.
    (d) Alternative Basis for Calculating Payments.--After September 
30, 1999, the Secretary and a designated provider may mutually agree 
upon a new basis for calculating capitation payments.

SEC. 727. REPEAL OF SUPERSEDED AUTHORITIES.

    (a) Repeals.--The following provisions of law are repealed:
        (1) Section 911 of the Military Construction Authorization Act, 
    1982 (42 U.S.C. 248c).
        (2) Section 1252 of the Department of Defense Authorization 
    Act, 1984 (42 U.S.C. 248d).
        (3) Section 718(c) of the National Defense Authorization Act 
    for Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 248c note).
        (4) Section 726 of the National Defense Authorization Act for 
    Fiscal Year 1996 (Public Law 104-106; 42 U.S.C. 248c note).
    (b) Effective Date.--The amendments made by paragraphs (1), (2), 
and (3) of subsection (a) shall take effect on October 1, 1997.

   Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

    SEC. 731. AUTHORITY TO WAIVE CHAMPUS EXCLUSION REGARDING 
      NONMEDICALLY NECESSARY TREATMENT IN CONNECTION WITH CERTAIN 
      CLINICAL TRIALS.
    (a) Waiver Authority.--Paragraph (13) of section 1079(a) of title 
10, United States Code, is amended--
        (1) by striking out ``any service'' and inserting in lieu 
    thereof ``Any service'';
        (2) by striking out the semicolon at the end and inserting in 
    lieu thereof a period; and
        (3) by adding at the end the following: ``Pursuant to an 
    agreement with the Secretary of Health and Human Services and under 
    such regulations as the Secretary of Defense may prescribe, the 
    Secretary of Defense may waive the operation of this paragraph in 
    connection with clinical trials sponsored or approved by the 
    National Institutes of Health if the Secretary of Defense 
    determines that such a waiver will promote access by covered 
    beneficiaries to promising new treatments and contribute to the 
    development of such treatments.''.
    (b) Clerical Amendments.--Such section is further amended--
        (1) in the matter preceding paragraph (1), by striking out 
    ``except that--'' and inserting in lieu thereof ``except as 
    follows:'';
        (2) by capitalizing the first letter of the first word of each 
    of paragraphs (1) through (17);
        (3) by striking out the semicolon at the end of each of 
    paragraphs (1) through (12) and paragraphs (14) and (15) and 
    inserting in lieu thereof a period; and
        (4) in paragraph (16), by striking out ``; and'' and inserting 
    in lieu thereof a period.
    SEC. 732. EXCEPTION TO MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL 
      HEALTH-CARE PROVIDERS UNDER CHAMPUS.
    Section 1079(h) of title 10, United States Code, is amended--
        (1) by redesignating paragraph (5) as paragraph (6); and
        (2) by inserting after paragraph (4) the following new 
    paragraph:
    ``(5) In addition to the authority provided under paragraph (4), 
the Secretary may authorize the commander of a facility of the 
uniformed services, the lead agent (if other than the commander), and 
the health care contractor to modify the payment limitations under 
paragraph (1) for certain health care providers when necessary to 
ensure both the availability of certain services for covered 
beneficiaries and lower costs than would otherwise be incurred to 
provide the services.''.
    SEC. 733. CODIFICATION OF ANNUAL AUTHORITY TO CREDIT CHAMPUS 
      REFUNDS TO CURRENT YEAR APPROPRIATION.
    (a) Credits to CHAMPUS Accounts.--(1) Chapter 55 of title 10, 
United States Code, is amended by inserting after section 1079 the 
following new section:
``Sec. 1079a. CHAMPUS: treatment of refunds and other amounts collected
    ``All refunds and other amounts collected in the administration of 
the Civilian Health and Medical Program of the Uniformed Services shall 
be credited to the appropriation available for that program for the 
fiscal year in which the refund or amount is collected.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1079 the 
following new item:

``1079a. CHAMPUS: treatment of refunds and other amounts collected.''.

    (b) Conforming Repeal.--Section 8094 of the Department of Defense 
Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 671), is 
repealed.
    SEC. 734. EXCEPTIONS TO REQUIREMENTS REGARDING OBTAINING 
      NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS.
    (a) Reference to Inpatient Medical Care.--(1) Section 1080(a) of 
title 10, United States Code, is amended by inserting ``inpatient'' 
before ``medical care'' in the first sentence.
    (2) Section 1086(e) of such title is amended in the first sentence 
by striking out ``benefits'' and inserting in lieu thereof ``inpatient 
medical care''.
    (b) Waivers and Exceptions to Requirements.--(1) Section 1080 of 
such title is amended by adding at the end the following new 
subsection:
    ``(c) Waivers and Exceptions to Requirements.--(1) A covered 
beneficiary enrolled in a managed care plan offered pursuant to any 
contract or agreement under this chapter for the provision of health 
care services shall not be required to obtain a nonavailability-of-
health-care statement as a condition for the receipt of health care.
    ``(2) The Secretary of Defense may waive the requirement to obtain 
nonavailability-of-health-care statements following an evaluation of 
the effectiveness of such statements in optimizing the use of 
facilities of the uniformed services.''.
    (2) Section 1086(e) of such title is amended in the last sentence 
by striking out ``section 1080(b)'' and inserting in lieu thereof 
``subsections (b) and (c) of section 1080''.
    (c) Conforming Amendments.--Section 1080(b) of such title is 
amended--
        (1) by striking out ``Nonavailability of Health Care 
    Statements'' and inserting in lieu thereof ``Nonavailability-of-
    Health-Care Statements''; and
        (2) by striking out ``nonavailability of health care 
    statement'' and inserting in lieu thereof ``nonavailability-of-
    health-care statement''.
    SEC. 735. ENHANCEMENT OF THIRD-PARTY COLLECTION AND SECONDARY PAYER 
      AUTHORITIES UNDER CHAMPUS.
    (a) Retention and Use by Treatment Facilities of Amounts 
Collected.--Subsection (g)(1) of section 1095 of title 10, United 
States Code, is amended by inserting ``or through'' after ``provided 
at''.
    (b) Expansion of Definition of Third-Party Payer.--Subsection (h) 
of such section is amended--
        (1) in the first sentence of paragraph (1), by inserting ``and 
    a workers' compensation program or plan'' before the period; and
        (2) in paragraph (2)--
            (A) by striking out ``organization and'' and inserting in 
        lieu thereof a ``organization,''; and
            (B) by inserting before the period at the end the 
        following: ``, and a personal injury protection plan or medical 
        payments benefit plan for personal injuries resulting from the 
        operation of a motor vehicle''.
    (c) Applicability of Secondary Payer Requirement.--Section 
1079(j)(1) of such title is amended by inserting after ``or health 
plan'' the following: ``, including any plan offered by a third-party 
payer (as defined in section 1095(h)(1) of this title),''.

                       Subtitle E--Other Matters

    SEC. 741. ALTERNATIVES TO ACTIVE DUTY SERVICE OBLIGATION UNDER 
      ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL 
      ASSISTANCE PROGRAM AND UNIFORMED SERVICES UNIVERSITY OF THE 
      HEALTH SCIENCES.
    (a) Armed Forces Health Professions Scholarship and Financial 
Assistance Program.--Subsection (e) of section 2123 of title 10, United 
States Code, is amended to read as follows:
    ``(e)(1) A member of the program who is relieved of the member's 
active duty obligation under this subchapter before the completion of 
that active duty obligation may be given, with or without the consent 
of the member, any of the following alternative obligations, as 
determined by the Secretary of the military department concerned:
        ``(A) A service obligation in another armed force for a period 
    of time not less than the member's remaining active duty service 
    obligation.
        ``(B) A service obligation in a component of the Selected 
    Reserve for a period not less than twice as long as the member's 
    remaining active duty service obligation.
        ``(C) Repayment to the Secretary of Defense of a percentage of 
    the total cost incurred by the Secretary under this subchapter on 
    behalf of the member equal to the percentage of the member's total 
    active duty service obligation being relieved, plus interest.
    ``(2) In addition to the alternative obligations specified in 
paragraph (1), if the member is relieved of an active duty obligation 
by reason of the separation of the member because of a physical 
disability, the Secretary of the military department concerned may give 
the member a service obligation as a civilian employee employed as a 
health care professional in a facility of the uniformed services for a 
period of time equal to the member's remaining active duty service 
obligation.
    ``(3) The Secretary of Defense shall prescribe regulations 
describing the manner in which an alternative obligation may be given 
under this subsection.''.
    (b) Uniformed Services University of the Health Sciences.--Section 
2114 of title 10, United States Code is amended by adding at the end 
the following new subsection:
    ``(h) A graduate of the University who is relieved of the 
graduate's active-duty service obligation under subsection (b) before 
the completion of that active-duty service obligation may be given, 
with or without the consent of the graduate, an alternative obligation 
in the same manner as provided in subparagraphs (A) and (B) of 
paragraph (1) of section 2123(e)(1) of this title or paragraph (2) of 
such section for members of the Armed Forces Health Professions 
Scholarship and Financial Assistance program.''.
    (c) Application of Amendments.--The amendments made by this section 
shall apply with respect to individuals who first become members of the 
Armed Forces Health Professions Scholarship and Financial Assistance 
program or students of the Uniformed Services University of the Health 
Sciences on or after October 1, 1996.
    (d) Transition Provision.--(1) In the case of any member of the 
Armed Forces Health Professions Scholarship and Financial Assistance 
program who, as of October 1, 1996, is serving an active duty 
obligation under the program or is incurring an active duty obligation 
as a participant in the program, and who is subsequently relieved of 
the active duty obligation before the completion of the obligation, the 
alternative obligations authorized by the amendment made by subsection 
(a) may be used by the Secretary of the military department concerned 
with the agreement of the member.
    (2) In the case of any person who, as of October 1, 1996, is 
serving an active-duty service obligation as a graduate of the 
Uniformed Services University of the Health Sciences or is incurring an 
active-duty service obligation as a student of the University, and who 
is subsequently relieved of the active-duty service obligation before 
the completion of the obligation, the alternative obligations 
authorized by the amendment made by subsection (b) may be implemented 
by the Secretary of Defense with the agreement of the person.
    (e) Report on Utilization of Graduates of University.--Not later 
than 120 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to Congress a report on the 
utilization by the Department of Defense of graduates of the Uniformed 
Services University of the Health Sciences. The report shall include a 
discussion of means of ensuring that graduates of the University have 
received training in medical specialties for which the Department has 
particular need.
    SEC. 742. EXTERNAL PEER REVIEW FOR DEFENSE HEALTH PROGRAM 
      EXTRAMURAL MEDICAL RESEARCH INVOLVING HUMAN SUBJECTS.
    (a) Establishment of External Peer Review Process.--The Secretary 
of Defense shall establish a peer review process that will use persons 
who are not officers or employees of the Government to review the 
research protocols of medical research projects.
    (b) Peer Review Requirements.--Funds of the Department of Defense 
may not be obligated or expended for any medical research project 
unless the research protocol for the project has been approved by the 
external peer review process established under subsection (a).
    (c) Medical Research Project Defined.--For purposes of this 
section, the term ``medical research project'' means a research project 
that--
        (1) involves the participation of human subjects;
        (2) is conducted solely by a non-Federal entity; and
        (3) is funded through the Defense Health Program account.
    (d) Effective Date.--The peer review requirements of subsection (b) 
shall take effect on October 1, 1996, and, except as provided in 
subsection (e), shall apply to all medical research projects proposed 
funded on or after that date, includingmedical research projects funded 
pursuant to any requirement of law enacted before, on, or after that 
date.
    (e) Exceptions.--Only the following medical research projects shall 
be exempt from the peer review requirements of sub- section (b):
        (1) A medical research project that the Secretary determines 
    has been substantially completed by October 1, 1996.
        (2) A medical research project funded pursuant to any provision 
    of law enacted on or after that date if the provision of law 
    specifically refers to this section and specifically states that 
    the peer review requirements do not apply.
    SEC. 743. INDEPENDENT RESEARCH REGARDING GULF WAR SYNDROME.
    (a) Definitions.--For purposes of this section:
        (1) The term ``Gulf War service'' means service on active duty 
    as a member of the Armed Forces in the Southwest Asia theater of 
    operations during the Persian Gulf War.
        (2) The term ``Gulf War syndrome'' means the complex of 
    illnesses and symptoms commonly known as Gulf War syndrome.
        (3) The term ``Persian Gulf War'' has the meaning given that 
    term in section 101(33) of title 38, United States Code.
    (b) Research.--The Secretary of Defense shall provide, by contract, 
grant, or other transaction, for scientific research to be carried out 
by entities independent of the Federal Government on possible causal 
relationships between Gulf War syndrome and--
        (1) the possible exposures of members of the Armed Forces to 
    chemical warfare agents or other hazardous materials during Gulf 
    War service; and
        (2) the use by the Department of Defense during the Persian 
    Gulf War of combinations of various inoculations and 
    investigational new drugs.
    (c) Procedures for Awarding Grants.--The Secretary shall prescribe 
the procedures to be used to make research awards under subsection (b). 
The procedures shall--
        (1) include a comprehensive, independent peer-review process 
    for the evaluation of proposals for scientific research that are 
    submitted to the Department of Defense; and
        (2) provide for the final selection of proposals for award to 
    be based on the scientific merit and program relevance of the 
    proposed research.
    (d) Availability of Funds.--Of the amount authorized to be 
appropriated under section 301(21) for defense medical programs, 
$10,000,000 is available for research under subsection (b).
    SEC. 744. COMPTROLLER GENERAL REVIEW OF HEALTH CARE ACTIVITIES OF 
      DEPARTMENT OF DEFENSE RELATING TO GULF WAR ILLNESSES.
    (a) Medical Research and Clinical Care Programs.--The Comptroller 
General shall analyze the effectiveness of the medical research 
programs and clinical care programs of the Department of Defense that 
relate to illnesses that might have been contracted by members of the 
Armed Forces as a result of service in the Southwest Asia theater of 
operations during the Persian Gulf War.
    (b) Policies Regarding Investigational New Drugs.--The Comptroller 
General shall analyze the scope and effectiveness of the policies of 
the Department of Defense with respect to--
        (1) the use of investigational new drugs during the Persian 
    Gulf War to treat members of the Armed Forces who served in the 
    Southwest Asia theater of operations; and
        (2) the current use of investigational new drugs to treat 
    illnesses referred to in subsection (a).
    (c) Administration of Medical Records.--The Comptroller General 
shall analyze the administration of medical records by the military 
departments in order to assess the extent to which such records 
accurately reflect the pre-deployment medical assessments, immunization 
records, informed consent releases, complaints during routine sick 
call, emergency room visits, visits with unit medics during deployment, 
and other relevant medical information relating to the members and 
former members referred to in subsection (a) with respect to the 
illnesses referred to in that subsection.
    (d) Reports.--Not later than March 1, 1997, the Comptroller General 
shall submit to Congress a separate report on each of the analyses 
required under subsections (a), (b), and (c).
    SEC. 745. REPORT REGARDING SPECIALIZED TREATMENT FACILITY PROGRAM.
    Not later than April 1, 1997, the Secretary of Defense shall submit 
to Congress a report evaluating the impact on the military health care 
system of limiting the service area of a facility designated as part of 
the specialized treatment facility program under section 1105 of title 
10, United States Code, to not more than 100 miles from the facility.
    SEC. 746. TUDY OF MEANS OF ENSURING UNIFORMITY IN PROVISION OF 
      MEDICAL AND DENTAL CARE FOR MEMBERS OF RESERVE COMPONENTS.
    (a) Study.--(1) In consultation with the Secretary of 
Transportation, the Secretary of Defense shall conduct a study of means 
of improving the provision of medical and dental care to members of the 
reserve components referred to in paragraph (2) in order to ensure 
uniformity and consistency in the provision of such care to such 
members.
    (2) The members of the reserve components referred to in paragraph 
(1) are the following:
        (A) Members on active duty, including active duty for training 
    and annual training duty.
        (B) Members on full-time National Guard duty.
        (C) Members on inactive-duty training, regardless of whether 
    such members are in a pay or nonpay status.
    (b) 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 on the study conducted under subsection (a). The 
report shall include such recommendations (including recommendations 
for legislation) as the Secretary considers appropriate.
    SEC. 747. SENSE OF CONGRESS REGARDING TAX TREATMENT OF ARMED FORCES 
      HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.
    It is the sense of Congress that the Secretary of Defense should 
work with the Secretary of the Treasury to interpret section 117 of the 
Internal Revenue Code of 1986 so that the limitation on the amount of a 
qualified scholarship or qualified tuition reduction excluded from 
gross income does not apply to any portion of a scholarship or 
financial assistance provided by the Secretary of Defense to a person 
enrolled in the Armed Forces Health Professions Scholarship and 
Financial Assistance program under subchapter I of chapter 105 of title 
10, United States Code.

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

                   Subtitle A--Acquisition Management

Sec. 801. Procurement technical assistance programs.
Sec. 802. Extension of pilot mentor-protege program.
Sec. 803. Authority to waive certain requirements for defense 
          acquisition pilot programs.
Sec. 804. Modification of authority to carry out certain prototype 
          projects.
Sec. 805. Increase in threshold amounts for major systems.
Sec. 806. Revisions in information required to be included in selected 
          acquisition reports.
Sec. 807. Increase in simplified acquisition threshold for humanitarian 
          or peacekeeping operations.
Sec. 808. Expansion of audit reciprocity among Federal agencies to 
          include post-award audits.
Sec. 809. Excessive compensation of certain contractor personnel.
Sec. 810. Exception to prohibition on procurement of foreign goods.

                        Subtitle B--Other Matters

Sec. 821. Prohibition on release of contractor proposals under Freedom 
          of Information Act.
Sec. 822. Amendments relating to reports on procurement regulatory 
          activity.
Sec. 823. Amendment of multiyear limitation on contracts for inspection, 
          maintenance, and repair.
Sec. 824. Streamlined notice requirements to contractors and employees 
          regarding termination or substantial reduction in contracts 
          under major defense programs.
Sec. 825. Repeal of notice requirements for substantially or seriously 
          affected parties in downsizing efforts.
Sec. 826. Study of effectiveness of defense mergers.
Sec. 827. Annual report relating to Buy American Act.
Sec. 828. Foreign environmental technology.
Sec. 829. Assessment of national defense technology and industrial base 
          and dependency of base on supplies available only from foreign 
          countries.
Sec. 830. Expansion of report on implementation of automated information 
          systems to include additional matters regarding information 
          resources management.
Sec. 831. Year 2000 software conversion.
Sec. 832. Procurement from firms in industrial base for production of 
          small arms.
Sec. 833. Cable television franchise agreements.

                   Subtitle A--Acquisition Management

SEC. 801. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated under 
section 301(5), $12,000,000 shall be available for carrying out the 
provisions of chapter 142 of title 10, United States Code.
    (b) Specific Programs.--Of the amounts made available pursuant to 
subsection (a), $600,000 shall be available for fiscal year 1997 for 
the purpose of carrying out programs sponsored by eligible entities 
referred to in subparagraph (D) of section 2411(1) of title 10, United 
States Code, that provide procurement technical assistance in 
distressed areas referred to in subparagraph (B) of section 2411(2) of 
such title. If there is an insufficient number of satisfactory 
proposals for cooperative agreements in such distressed areas to allow 
effective use of the funds made available in accordance with this 
subsection in such areas, the funds shall be allocated among the 
Defense Contract Administration Services regions in accordance with 
section 2415 of such title.

SEC. 802. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

    Section 831(j) of the National Defense Authorization Act for Fiscal 
Year 1991 (10 U.S.C. 2302 note) is amended--
        (1) in paragraph (1), by striking out ``1995'' and inserting in 
    lieu thereof ``1998''; and
        (2) in paragraph (2), by striking out ``1996'' and inserting in 
    lieu thereof ``1999''.
    SEC. 803. AUTHORITY TO WAIVE CERTAIN REQUIREMENTS FOR DEFENSE 
      ACQUISITION PILOT PROGRAMS.
    (a) Authority.--The Secretary of Defense may waive sections 2399, 
2403, 2432, and 2433 of title 10, United States Code, in accordance 
with this section for any defense acquisition program designated by the 
Secretary of Defense for participation in the defense acquisition pilot 
program authorized by section 809 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2430 note).
    (b) Operational Test and Evaluation.--The Secretary of Defense may 
waive the requirements for operational test and evaluation for such a 
defense acquisition program as set forth in section 2399 of title 10, 
United States Code, if the Secretary--
        (1) determines (without delegation) that such test would be 
    unreasonably expensive or impractical;
        (2) develops a suitable alternate operational test program for 
    the system concerned;
        (3) describes in the test and evaluation master plan, as 
    approved by the Director of Operational Test and Evaluation, the 
    method of evaluation that will be used to evaluate whether the 
    system will be effective and suitable for combat; and
        (4) submits to the congressional defense committees a report 
    containing the determination that was made under paragraph (1), a 
    justification for that determination, and a copy of the plan 
    required by paragraph (3).
    (c) Contractor Guarantees for Major Weapons Systems.--The Secretary 
of Defense may waive the requirements of section 2403 of title 10, 
United States Code, for such a defense acquisition program if an 
alternative guarantee is used that ensures high quality weapons 
systems.
    (d) Selected Acquisition Reports.--The Secretary of Defense may 
waive the requirements of sections 2432 and 2433 of title 10, United 
States Code, for such a defense acquisition program if the Secretary 
provides a single annual report to Congress at the end of each fiscal 
year that describes the status of the program in relation to the 
baseline description for the program established under section 2435 of 
such title.
    SEC. 804. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE 
      PROJECTS.
    (a) Authorized Officials.--(1) Subsection (a) of section 845 of the 
National Defense Authorization Act for Fiscal Year 1994 (Public Law 
103-160; 107 Stat. 1721; 10 U.S.C. 2371 note) is amended by inserting 
``, the Secretary of a military department, or any other official 
designated by the Secretary of Defense'' after ``Agency''.
    (2) Subsection (b)(2) of such section is amended to read as 
follows:
    ``(2) To the maximum extent practicable, competitive procedures 
shall be used when entering into agreements to carry out projects under 
subsection (a).''.
    (b) Extension of Authority.--Subsection (c) of such section is 
amended by striking out ``terminate'' and all that follows and 
inserting in lieu thereof ``terminate at the end of September 30, 
1999.''.
    (c) Conforming and Technical Amendments.--Section 845 of such Act 
is further amended--
        (1) in subsection (b)--
            (A) in paragraph (1), by striking out ``(c)(2) and (c)(3) 
        of such section 2371, as redesignated by section 
        827(b)(1)(B),'' and inserting in lieu thereof ``(e)(2) and 
        (e)(3) of such section 2371''; and
            (B) in paragraph (2), by inserting after ``Director'' the 
        following: ``, Secretary, or other official''; and
        (2) in subsection (c), by striking out ``of the Director''.

SEC. 805. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR SYSTEMS.

    (a) Increase and Adjustment.--Chapter 137 of title 10, United 
States Code, is amended--
        (1) in section 2302(5), by striking out the third sentence and 
    inserting in lieu thereof the following: ``A system shall be 
    considered a major system if (A) the conditions of section 2302d of 
    this title are satisfied, or (B) the system is designated a `major 
    system' by the head of the agency responsible for the system.''; 
    and
        (2) by inserting after section 2302c the following:
``Sec. 2302d. Major system: definitional threshold amounts
    ``(a) Department of Defense Systems.--For purposes of section 
2302(5) of this title, a system for which the Department of Defense is 
responsible shall be considered a major system if--
        ``(1) the total expenditures for research, development, test, 
    and evaluation for the system are estimated to be more than 
    $115,000,000 (based on fiscal year 1990 constant dollars); or
        ``(2) the eventual total expenditure for procurement of more 
    than $540,000,000 (based on fiscal year 1990 constant dollars).
    ``(b) Civilian Agency Systems.--For purposes of section 2302(5) of 
this title, a system for which a civilian agency is responsible shall 
be considered a major system if total expenditures for the system are 
estimated to exceed the greater of--
        ``(1) $750,000 (based on fiscal year 1980 constant dollars); or
        ``(2) the dollar threshold for a `major system' established by 
    the agency pursuant to Office of Management and Budget (OMB) 
    Circular A-109, entitled `Major Systems Acquisitions'.
    ``(c) Adjustment Authority.--(1) The Secretary of Defense may 
adjust the amounts and the base fiscal year provided in subsection (a) 
on the basis of Department of Defense escalation rates.
    ``(2) An amount, as adjusted under paragraph (1), that is not 
evenly divisible by $5,000,000 shall be rounded to the nearest multiple 
of $5,000,000. In the case of an amount that is evenly divisible by 
$2,500,000 but not evenly divisible by $5,000,000, the amount shall be 
rounded to the next higher multiple of $5,000,000.
    ``(3) An adjustment under this subsection shall be effective after 
the Secretary transmits to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a written notification of the adjustment.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2302c the following:

``2302d. Major system: definitional threshold amounts.''.

SEC. 806. REVISIONS IN INFORMATION REQUIRED TO BE INCLUDED IN SELECTED 
              ACQUISITION REPORTS.

    Section 2432 of title 10, United States Code, is amended--
        (1) in subsection (c)(1)--
            (A) by striking out ``and'' at the end of subpara- graph 
        (B);
            (B) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (C) by inserting after subparagraph (B) the following new 
        subparagraph (C):
        ``(C) the current procurement unit cost for each major defense 
    acquisition program included in the report and the history of that 
    cost from the date the program was first included in a Selected 
    Acquisition Report to the end of the quarter for which the current 
    report is submitted; and''; and
        (2) in subsection (e), by striking out paragraph (8) and 
    redesignating paragraph (9) as paragraph (8).
    SEC. 807. INCREASE IN SIMPLIFIED ACQUISITION THRESHOLD FOR 
      HUMANITARIAN OR PEACEKEEPING OPERATIONS.
    (a) Armed Services Acquisitions.--Section 2302(7) of title 10, 
United States Code, is amended--
        (1) by inserting ``(A)'' after ``(7)'';
        (2) by inserting after ``contingency operation'' the following: 
    ``or a humanitarian or peacekeeping operation''; and
        (3) by adding at the end the following:
        ``(B) In subparagraph (A), the term `humanitarian or 
    peacekeeping operation' means a military operation in support of 
    the provision of humanitarian or foreign disaster assistance or in 
    support of a peacekeeping operation under chapter VI or VII of the 
    Charter of the United Nations. The term does not include routine 
    training, force rotation, or stationing.''.
    (b) Civilian Agency Acquisitions.--Section 309(d) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 259(d)) is 
amended--
        (1) by inserting ``(1)'' after ``(d)'';
        (2) by inserting after ``contingency operation'' the following: 
    ``or a humanitarian or peacekeeping operation''; and
        (3) by adding at the end the following:
    ``(2) In paragraph (1):
        ``(A) The term `contingency operation' has the meaning given 
    such term in section 101(a) of title 10, United States Code.
        ``(B) The term `humanitarian or peacekeeping operation' means a 
    military operation in support of the provision of humanitarian or 
    foreign disaster assistance or in support of a peacekeeping 
    operation under chapter VI or VII of the Charter of the United 
    Nations. The term does not include routine training, force 
    rotation, or stationing.''.
    SEC. 808. EXPANSION OF AUDIT RECIPROCITY AMONG FEDERAL AGENCIES TO 
      INCLUDE POST-AWARD AUDITS.
    (a) Armed Services Acquisitions.--Subsection (d) of section 2313 of 
title 10, United States Code, is amended to read as follows:
    ``(d) Limitation on Audits Relating to Indirect Costs.--The head of 
an agency may not perform an audit of indirect costs under a contract, 
subcontract, or modification before or after entering into the 
contract, subcontract, or modification in any case in which the 
contracting officer determines that the objectives of the audit can 
reasonably be met by accepting the results of an audit that was 
conducted by any other department or agency of the Federal Government 
within one year preceding the date of the contracting officer's 
determination.''.
    (b) Civilian Agency Acquisitions.--Subsection (d) of section 304C 
of the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 254d) is amended to read as follows:
    ``(d) Limitation on Audits Relating to Indirect Costs.--An 
executive agency may not perform an audit of indirect costs under a 
contract, subcontract, or modification before or after entering into 
the contract, subcontract, or modification in any case in which the 
contracting officer determines that the objectives of the audit can 
reasonably be met by accepting the results of an audit that was 
conducted by any other department or agency of the Federal Government 
within one year preceding the date of the contracting officer's 
determination.''.
    (c) Guidelines for Acceptance of Audits by State and Local 
Governments Receiving Federal Assistance.--The Director of the Office 
of Management and Budget shall issue guidelines to ensure that an audit 
of indirect costs performed by the Federal Government is accepted by 
State and local governments that receive Federal funds under contracts, 
grants, or other Federal assistance programs.

SEC. 809. COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL.

    (a) Armed Services Procurements.--(1) During fiscal year 1997, the 
head of an agency shall treat the costs described in paragraph (2) as 
not allowable under a covered contract, in the same manner as costs 
listed in section 2324(e)(1) of title 10, United States Code.
    (2) The costs covered by paragraph (1) are costs of compensation 
paid with respect to services of any one officer to the extent that the 
total amount of the compensation paid in a fiscal year exceeds 
$250,000.
    (b) Civilian Agency Procurements.--(1) During fiscal year 1997, an 
executive agency shall treat the costs described in paragraph (2) as 
not allowable under a covered contract, in the same manner as costs 
listed in section 306(e)(1) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 256(e)(1)).
    (2) The costs covered by paragraph (1) are costs of compensation 
paid with respect to services of any one officer to the extent that the 
total amount of the compensation paid in a fiscal year exceeds 
$250,000.
    (c) Definitions.--In this section:
        (1) The term ``head of an agency'' has the meaning provided in 
    section 2302 of title 10, United States Code.
        (2) The term ``executive agency'' has the meaning provided in 
    section 3 of the Federal Property and Administrative Services Act 
    of 1949 (40 U.S.C. 472).
        (3) The term ``covered contract''--
            (A) with respect to procurements subject to chapter 137 of 
        title 10, United States Code, has the meaning provided by 
        section 2324(l) of such title; and
            (B) with respect to procurements subject to title III of 
        the Federal Property and Administrative Services Act of 1949 
        (41 U.S.C. 251 et seq.), has the meaning provided by section 
        306(l) of such Act (41 U.S.C. 256(l)).
        (4) The term ``compensation'' means--
            (A) the total amount of wages as defined in section 3401(a) 
        of the Internal Revenue Code of 1986 for the year concerned; 
        and
            (B) the total amount of elective deferrals (within the 
        meaning of section 402(g)(3) of such Code) for the year 
        concerned.
        (5) The term ``officer'' means a person who is determined to be 
    in a senior management position as established by regulation.
    (d) Review.--The Administrator for Federal Procurement Policy, in 
consultation with the Secretary of Defense, shall conduct a 
comprehensive review of the levels of compensation received by senior 
executives of corporations performing a significant amount of business 
with the Federal Government in order to determine the appropriate cost 
allowability policy in this area. Such a review should include the 
following:
        (1) In consultation with the Secretary of the Treasury, an 
    examination of the appropriate definition and treatment of 
    compensation, including deferred compensation.
        (2) An examination of the appropriate definition of senior 
    executive positions and any other positions that should be covered 
    under the cost allowability policy.
        (3) An examination of how to apply the cost allowability policy 
    to individual contracts and aggregations of contracts within a 
    corporation.
        (4) Any other matter related to the cost allowability of 
    executive compensation that the Administrator considers 
    appropriate.
    (e) Legislative Proposal.--Not later than March 1, 1997, the 
President shall submit to Congress a legislative proposal incorporating 
the conclusions reached by the review conducted under subsection (d) 
and establishing a statutory Government standard on the cost 
allowability of executive compensation.
    SEC. 810. EXCEPTION TO PROHIBITION ON PROCUREMENT OF FOREIGN GOODS.
    Section 2534(d)(3) of title 10, United States Code, is amended by 
inserting ``or would impede the reciprocal procurement of defense items 
under a memorandum of understanding providing for reciprocal 
procurement of defense items that is entered into under section 2531 of 
this title,'' after ``a foreign country,''.

                       Subtitle B--Other Matters

    SEC. 821. PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS UNDER 
      FREEDOM OF INFORMATION ACT.
    (a) Armed Services Acquisitions.--Section 2305 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(g) Prohibition on Release of Contractor Proposals.--(1) Except 
as provided in paragraph (2), a proposal in the possession or control 
of the Department of Defense may not be made available to any person 
under section 552 of title 5.
    ``(2) Paragraph (1) does not apply to any proposal that is set 
forth or incorporated by reference in a contract entered into between 
the Department and the contractor that submitted the proposal.
    ``(3) In this subsection, the term `proposal' means any proposal, 
including a technical, management, or cost proposal, submitted by a 
contractor in response to the requirements of a solicitation for a 
competitive proposal.''.
    (b) Civilian Agency Acquisitions.--Section 303B of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253b) is 
amended by adding at the end the following new subsection:
    ``(m) Prohibition on Release of Contractor Proposals.--(1) Except 
as provided in paragraph (2), a proposal in the possession or control 
of an executive agency may not be made available to any person under 
section 552 of title 5, United States Code.
    ``(2) Paragraph (1) does not apply to any proposal that is set 
forth or incorporated by reference in a contract entered into between 
the agency and the contractor that submitted the proposal.
    ``(3) In this subsection, the term `proposal' means any proposal, 
including a technical, management, or cost proposal, submitted by a 
contractor in response to the requirements of a solicitation for a 
competitive proposal.''.
    SEC. 822. AMENDMENTS RELATING TO REPORTS ON PROCUREMENT REGULATORY 
      ACTIVITY.
    Subsection (g) of section 25 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 421) is amended--
        (1) in paragraph (1)--
            (A) by striking out ``within 6 months after the date of 
        enactment of this section and every 6 months thereafter'' and 
        inserting in lieu thereof ``every 12 months''; and
            (B) by inserting ``and'' after the semicolon at the end;
        (2) in paragraph (2)(H), by striking out ``; and'' and 
    inserting in lieu thereof a period; and
        (3) by striking out paragraph (3).
    SEC. 823. AMENDMENT OF MULTIYEAR LIMITATION ON CONTRACTS FOR 
      INSPECTION, MAINTENANCE, AND REPAIR.
    Paragraph (14) of section 210(a) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 490(a)) is amended by 
striking out ``for periods not exceeding three years'' and inserting in 
lieu thereof ``for periods not exceeding five years''.
    SEC. 824. STREAMLINED NOTICE REQUIREMENTS TO CONTRACTORS AND 
      EMPLOYEES REGARDING TERMINATION OR SUBSTANTIAL REDUCTION IN 
      CONTRACTS UNDER MAJOR DEFENSE PROGRAMS.
    (a) Elimination of Unnecessary Requirements.--Section 4471 of the 
Defense Conversion, Reinvestment, and Transition Assistance Act of 1992 
(division D of Public Law 102-484; 10 U.S.C. 2501 note) is amended--
        (1) by striking out subsection (a);
        (2) by striking out subsection (f), except paragraph (4);
        (3) by redesignating subsections (b), (c), (d), (e), and (g) as 
    subsections (a), (b), (c), (d), and (f), respectively; and
        (4) by redesignating such paragraph (4) as subsection (e).
    (b) Notice to Contractors.--Subsection (a) of such section, as 
redesignated by subsection (a)(3), is amended by striking out 
paragraphs (1) and (2) and inserting in lieu thereof the following:
        ``(1) shall identify each contract (if any) under major defense 
    programs of the Department of Defense that will be terminated or 
    substantially reduced as a result of the funding levels provided in 
    that Act; and
        ``(2) shall ensure that notice of the termination of, or 
    substantial reduction in, the funding of the contract is provided--
            ``(A) directly to the prime contractor under the con- 
        tract; and
            ``(B) directly to the Secretary of Labor.''.
    (c) Notice to Subcontractors.--Subsection (b) of such section, as 
redesignated by subsection (a)(3), is amended--
        (1) by striking out ``As soon as'' and all that follows through 
    ``prime contractor shall--'' in the matter preceding paragraph (1) 
    and inserting in lieu thereof ``Not later than 60 days after the 
    date on which the prime contractor for a contract under a major 
    defense program receives notice under subsection (a), the prime 
    contractor shall--'';
        (2) in paragraph (1)--
            (A) by striking out ``for that program under a contract'' 
        and inserting in lieu thereof ``under that prime contract for 
        subcontracts''; and
            (B) by striking out ``for the program''; and
        (3) in paragraph (2)(A), by striking out ``for the program 
    under a contract'' and inserting in lieu thereof ``for 
    subcontracts''.
    (d) Notice to Employees and State Dislocated Worker Unit.--
Subsection (c) of such section, as redesignated by subsection (a)(3), 
is amended by striking out ``under subsection (a)(1)'' and all that 
follows through ``a defense program,'' in the matter preceding 
paragraph (1) and inserting in lieu thereof ``under subsection (a),''.
    (e) Cross References and Conforming Amendments.--(1) Subsection (d) 
of such section, as redesignated by subsection (a)(3), is amended--
        (A) by striking out ``a major defense program provided under 
    subsection (d)(1)'' and inserting in lieu thereof ``a defense 
    contract provided under subsection (c)(1)''; and
        (B) by striking out ``the program'' and inserting in lieu 
    thereof ``the contract''.
    (2) Subsection (e) of such section, as redesignated by subsection 
(a)(4), is amended--
        (A) by striking out ``eligibility'' and inserting in lieu 
    thereof ``Eligibility''; and
        (B) by striking out ``under paragraph (3)'' and inserting in 
    lieu thereof ``or cancellation of the termination of, or 
    substantial reduction in, contract funding''.
    (3) Subsection (f) of such section, as redesignated by subsection 
(a)(3), is amended in paragraph (2)--
        (A) by inserting ``a defense contract under'' before ``a major 
    defense program''; and
        (B) by striking out ``contracts under the program'' and 
    inserting in lieu thereof ``the funds obligated by the contract''.
    SEC. 825. REPEAL OF NOTICE REQUIREMENTS FOR SUBSTANTIALLY OR 
      SERIOUSLY AFFECTED PARTIES IN DOWNSIZING EFFORTS.
    Sections 4101 and 4201 of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1850, 1851; 10 
U.S.C. 2391 note) are repealed.

SEC. 826. STUDY OF EFFECTIVENESS OF DEFENSE MERGERS.

    (a) Study.--The Secretary of Defense shall conduct a study on 
mergers and acquisitions in the defense sector. The study shall address 
the following:
        (1) The effectiveness of defense mergers and acquisitions in 
    eliminating excess capacity within the defense industry.
        (2) The degree of change in the dependence by defense 
    contractors on defense-related Federal contracts within their 
    overall business after mergers.
        (3) The effect on defense industry employment resulting from 
    defense mergers and acquisitions occurring during the three years 
    preceding the date of the enactment of this Act.
        (4) The effect on competition for defense contracts.
    (b) Report.--Not later than six months after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the results of the study conducted under 
subsection (a).

SEC. 827. ANNUAL REPORT RELATING TO BUY AMERICAN ACT.

    The Secretary of Defense shall submit to Congress, not later than 
120 days after the end of each fiscal year, a report on the amount of 
purchases by the Department of Defense from foreign entities in that 
fiscal year. Such report shall separately indicate the dollar value of 
items for which the Buy American Act (41 U.S.C. 10a et seq.) was waived 
pursuant to any of the following:
        (1) Any reciprocal defense procurement memorandum of 
    understanding described in section 849(c)(2) of Public Law 103-160 
    (41 U.S.C. 10b-2 note).
        (2) The Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.)
        (3) Any international agreement to which the United States is a 
    party.

SEC. 828. FOREIGN ENVIRONMENTAL TECHNOLOGY.

    Subsection (b) of section 2536 of title 10, United States Code, is 
amended to read as follows:
    ``(b) Waiver Authority.--(1) The Secretary concerned may waive the 
application of subsection (a) to a contract award if--
        ``(A) the Secretary concerned determines that the waiver is 
    essential to the national security interests of the United States; 
    or
        ``(B) in the case of a contract awarded for environmental 
    restoration, remediation, or waste management at a Department of 
    Defense or Department of Energy facility--
            ``(i) the Secretary concerned determines that the waiver 
        will advance the environmental restoration, remediation, or 
        waste management objectives of the department concerned and 
        will not harm the national security interests of the United 
        States; and
            ``(ii) the entity to which the contract is awarded is 
        controlled by a foreign government with which the Secretary 
        concerned is authorized to exchange Restricted Data under 
        section 144 c. of the Atomic Energy Act of 1954 (42 U.S.C. 
        2164(c)).
    ``(2) The Secretary concerned shall notify Congress of any decision 
to grant a waiver under paragraph (1)(B) with respect to a contract. 
The contract may be awarded only after the end of the 45-day period 
beginning on the date the notification is received by the 
committees.''.
    SEC. 829. ASSESSMENT OF NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL 
      BASE AND DEPENDENCY OF BASE ON SUPPLIES AVAILABLE ONLY FROM 
      FOREIGN COUNTRIES.
    (a) National Security Objectives for National Technology and 
Industrial Base.--Section 2501(a) of title 10, United States Code, is 
amended by adding at the end the following:
        ``(5) Providing for the development, manufacture, and supply of 
    items and technologies critical to the production and sustainment 
    of advanced military weapon systems within the national technology 
    and industrial base.''.
    (b) National Defense Program for Analysis of the Technology and 
Industrial Base.--Section 2503 of title 10, United States Code, is 
amended--
        (1) in subsection (a)--
            (A) by striking out ``(1) The Secretary of Defense, in 
        consultation with the National Defense Technology and 
        Industrial Base Council,'' in paragraph (1) and inserting in 
        lieu thereof ``The Secretary of Defense''; and
            (B) by striking out paragraphs (2), (3), and (4); and
        (2) in subsection (c)(3)(A)--
            (A) by striking out ``the National Defense Technology and 
        Industrial Base Council in'' and inserting in lieu thereof 
        ``the Secretary of Defense for''; and
            (B) by striking out ``and the periodic plans required by 
        section 2506 of this title''.
    (c) Periodic Defense Capability Assessments, Including Foreign 
Dependency.--(1) Section 2505 of title 10, United States Code, is 
amended to read as follows:
``Sec. 2505. National technology and industrial base: periodic defense 
     capability assessments
    ``(a) Periodic Assessment.--Each fiscal year, the Secretary of 
Defense shall prepare selected assessments of the capability of the 
national technology and industrial base to attain the national security 
objectives set forth in section 2501(a) of this title. The Secretary of 
Defense shall prepare such assessments in consultation with the 
Secretary of Commerce and the Secretary of Energy.
    ``(b) Assessment Process.--The Secretary of Defense shall ensure 
that technology and industrial capability assessments--
        ``(1) describe sectors or capabilities, their underlying 
    infrastructure and processes;
        ``(2) analyze present and projected financial performance of 
    industries supporting the sectors or capabilities in the 
    assessment; and
        ``(3) identify technological and industrial capabilities and 
    processes for which there is potential for the national industrial 
    and technology base not to be able to support the achievement of 
    national security objectives.
    ``(c) Assessment of Extent of Dependency on Foreign Source Items.--
Each assessment under subsection (a) shall include a separate 
discussion and presentation regarding the extent to which the national 
technology and industrial base is dependent on items for which the 
source of supply, manufacture, or technology is outside of the United 
States and Canada and for which there is no immediately available 
source in the United States or Canada. The discussion and presentation 
regarding foreign dependency shall--
        ``(1) identify cases that pose an unacceptable risk of foreign 
    dependency, as determined by the Secretary; and
        ``(2) present actions being taken or proposed to be taken to 
    remedy the risk posed by the cases identified under paragraph (1), 
    including efforts to develop a domestic source for the item in 
    question.
    ``(d) Integrated Process.--The Secretary of Defense shall ensure 
that consideration of the technology and industrial base assessments is 
integrated into the overall budget, acquisition, and logistics support 
decision processes of the Department of Defense.''.
    (2) Section 2502(b) of title 10, United States Code, is amended--
        (A) by striking out ``the following responsibilities:'' and all 
    that follows through ``effective cooperation'' and inserting in 
    lieu thereof ``the responsibility to ensure effective 
    cooperation''; and
        (B) by striking out paragraph (2); and
    (3) by redesignating subparagraphs (A), (B), and (C) as paragraphs 
(1), (2), and (3), respectively, and adjusting the margin of such 
paragraphs two ems to the left.
    (d) Repeal of Requirement for Periodic Defense Capability Plan; 
Development of Policy Guidance.--Section 2506 of title 10, United 
States Code, is amended to read as follows:
``Sec. 2506. Department of Defense technology and industrial base 
     policy guidance
    ``(a) Departmental Guidance.--The Secretary of Defense shall 
prescribe departmental guidance for the attainment of each of the 
national security objectives set forth in section 2501(a) of this 
title. Such guidance shall provide for technological and industrial 
capability considerations to be integrated into the budget allocation, 
weapons acquisition, and logistics support decision processes.
    ``(b) Report to Congress.--The Secretary of Defense shall report on 
the implementation of the departmental guidance in the annual report to 
Congress submitted pursuant to section 2504 of this title.''.
    (e) Annual Report to Congress.--Subchapter II of chapter 148 of 
title 10, United States Code, is amended by inserting after section 
2503 the following new section:

``Sec. 2504. Annual report to Congress

    ``The Secretary of Defense shall transmit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives by March 1 of each year a report which shall 
include the following information:
        ``(1) A description of the departmental guidance prepared 
    pursuant to section 2506 of this title.
        ``(2) A description of the methods and analyses being 
    undertaken by the Department of Defense alone or in cooperation 
    with other Federal agencies, to identify and address concerns 
    regarding technological and industrial capabilities of the national 
    technology and industrial base.
        ``(3) A description of the assessments prepared pursuant to 
    section 2505 of this title and other analyses used in developing 
    the budget submission of the Department of Defense for the next 
    fiscal year.
        ``(4) Identification of each program designed to sustain 
    specific essential technological and industrial capabilities and 
    processes of the national technology and industrial base.''.
    (f) Repeal of Requirement To Coordinate the Encouragement of 
Technology Transfer With the Council.--Subsection 2514(c) of title 10, 
United States Code, is amended by striking out paragraph (5).
    (g) Clerical Amendments.--(1) The table of sections at the 
beginning of subchapter II of chapter 148 of title 10, United States 
Code, is amended by inserting after the item relating to section 2503 
the following new item:

``2504. Annual report to Congress.''.

    (2) Such table of sections is further amended by striking out the 
item relating to section 2506 and inserting in lieu thereof the 
following new item:

``2506. Department of Defense technology and industrial base policy 
          guidance.''.

    (h) Repeal of Superseded and Executed Law.--Sections 4218, 4219, 
and 4220 of the National Defense Authorization Act for Fiscal Year 1993 
(Public Law 102-484; 10 U.S.C. 2505 note and 2506 note) are repealed.
    SEC. 830. EXPANSION OF REPORT ON IMPLEMENTATION OF AUTOMATED 
      INFORMATION SYSTEMS TO INCLUDE ADDITIONAL MATTERS REGARDING 
      INFORMATION RESOURCES MANAGEMENT.
    (a) Expanded Report.--The Secretary of Defense shall include in the 
report submitted in 1997 under section 381(f) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 
113 note) a discussion of the following matters relating to information 
resources management:
        (1) The progress made in implementing the Information 
    Technology Management Reform Act of 1996 (division E of Public Law 
    104-106; 110 Stat. 679; 40 U.S.C. 1401 et seq.) and the amendments 
    made by that Act.
        (2) The progress made in implementing the strategy for the 
    development or modernization of automated information systems for 
    the Department of Defense, as required by section 366 of the 
    National Defense Authorization Act for Fiscal Year 1996 (Public Law 
    104-106; 110 Stat. 275; 10 U.S.C. 113 note).
        (3) Plans of the Department of Defense for establishing an 
    integrated framework for management of information resources within 
    the department.
    (b) Specific Elements of Report.--The presentation of matters under 
subsection (a) shall specifically include a discussion of the 
following:
        (1) The status of the implementation of performance measures.
        (2) The specific actions being taken to link the proposed 
    performance measures to the planning, programming, and budgeting 
    system of the Department of Defense and to the life-cycle 
    management processes of the department.
        (3) The results of pilot program testing of proposed 
    performance measures.
        (4) The additional training necessary for the implementation of 
    performance-based information management.
        (5) The department-wide actions that are necessary to comply 
    with the requirements of the following provisions of law:
            (A) The amendments made by the Government Performance and 
        Results Act of 1993 (Public Law 103-62; 107 Stat. 285).
            (B) The Information Technology Management Reform Act of 
        1996 (division E of Public Law 104-106; 110 Stat. 679; 40 
        U.S.C. 1401 et seq.) and the amendments made by that Act.
            (C) Title V of the Federal Acquisition Streamlining Act of 
        1994 (Public Law 103-355; 108 Stat. 3349) and the amendments 
        made by that title.
            (D) The Chief Financial Officers Act of 1990 (Public Law 
        101-576; 104 Stat. 2838) and the amendments made by that Act.

SEC. 831. YEAR 2000 SOFTWARE CONVERSION.

    (a) Year 2000 Software Conversion.--The Secretary of Defense shall 
ensure that, as soon as practicable, all information technology 
acquired by the Department of Defense pursuant to contracts entered 
into after September 30, 1996, has the capabilities to process date and 
date-related data in 2000.
    (b) Assessment.--The Secretary, acting through the chief 
information officers within the department (as designated pursuant to 
section 3506 of title 44, United States Code), shall assess all 
information technology within the Department of Defense to determine 
the extent to which such technology has the capabilities to operate 
effectively.
    (c) Plan.--Not later than January 1, 1997, the Secretary shall 
submit to Congress a detailed plan for eliminating anydeficiencies 
identified pursuant to subsection (b). The plan shall include--
        (1) a list of affected major systems;
        (2) a description of how the deficiencies could affect the 
    national security of the United States; and
        (3) an estimate and prioritization of the resources that are 
    necessary to eliminate the deficiencies.
    SEC. 832. PROCUREMENT FROM FIRMS IN INDUSTRIAL BASE FOR PRODUCTION 
      OF SMALL ARMS.
    (a) Requirement.--Chapter 146 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2473. Procurements from the small arms production industrial 
     base
    ``(a) Authority To Limit Procurements To Certain Sources.--To the 
extent that the Secretary of Defense determines necessary to preserve 
the small arms production industrial base, the Secretary may require 
that any procurement of property or services described in subsection 
(b) for the Department of Defense be made only from a firm in the small 
arms production industrial base.
    ``(b) Covered Property and Services.--Subsection (a) applies to the 
following:
        ``(1) Repair parts for small arms.
        ``(2) Modifications of parts to improve small arms used by the 
    armed forces.
    ``(c) Small Arms Production Industrial Base.--In this section, the 
term `small arms production industrial base' means the firms comprising 
the small arms production industrial base, as described in the plan 
entitled `Preservation of Critical Elements of the Small Arms 
Industrial Base', dated January 8, 1994, that was prepared by an 
independent assessment panel of the Army Science Board.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2473. Procurements from the small arms production industrial base.''.

SEC. 833. CABLE TELEVISION FRANCHISE AGREEMENTS.

    Based on the advisory opinion from the United States Court of 
Federal Claims, In the Matter of the Department of Defense Cable 
Television Franchise Agreements, National Defense Authorization Act for 
Fiscal Year 1996, Section 823, No. 96-133X (July 11, 1996)--
        (1) cable television franchise agreements for the construction, 
    installation, or capital improvement of cable systems at military 
    installations shall be considered contracts for purposes of the 
    Federal Acquisition Regulation;
        (2) cable television operators are entitled to recovery of 
    their investments at such installations to the extent authorized in 
    part 49 of the Federal Acquisition Regulation; and
        (3) the appropriate official of the Department of Defense shall 
    promptly issue a written notice of the termination for the 
    convenience of the Government of the contracts described in such 
    advisory opinion and commence settlement negotiations pursuant to 
    the requirements of part 49 of the Federal Acquisition Regulation.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

Sec. 901. Repeal of previously enacted reduction in number of statutory 
          positions in Office of the Secretary of Defense.
Sec. 902. Additional required reduction in defense acquisition 
          workforce.
Sec. 903. Reduction of personnel assigned to Office of the Secretary of 
          Defense.
Sec. 904. Report on military department headquarters staffs.
Sec. 905. Matters to be considered in next assessment of current 
          missions, responsibilities, and force structure of the unified 
          combatant commands.
Sec. 906. Transfer of authority to control transportation systems in 
          time of war.
Sec. 907. Codification of requirements relating to continued operation 
          of the Uniformed Services University of the Health Sciences.
Sec. 908. Joint Requirements Oversight Council.
Sec. 909. Membership of the Ammunition Storage Board.
Sec. 910. Removal of Secretary of the Army from membership on the 
          Foreign Trade Zone Board.
Sec. 911. Composition of aircraft accident investigation boards.
Sec. 912. Mission of the White House Communications Agency.

                   Subtitle B--Force Structure Review

Sec. 921. Short title.
Sec. 922. Findings.
Sec. 923. Quadrennial Defense Review.
Sec. 924. National Defense Panel.
Sec. 925. Postponement of deadlines.
Sec. 926. Definitions.

                      Subtitle A--General Matters

    SEC. 901. REPEAL OF PREVIOUSLY ENACTED REDUCTION IN NUMBER OF 
      STATUTORY POSITIONS IN OFFICE OF THE SECRETARY OF DEFENSE.
    Section 903 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 401) is repealed.
    SEC. 902. ADDITIONAL REQUIRED REDUCTION IN DEFENSE ACQUISITION 
      WORKFORCE.
    (a) Additional Reductions for Fiscal Year 1997.--Section 906(d) of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 405) is amended in paragraph (1) by striking out 
``positions during fiscal year 1996'' and all that follows and 
inserting in lieu thereof ``so that--
        ``(A) the total number of defense acquisition personnel as of 
    October 1, 1996, is less than the baseline number by at least 
    15,000; and
        ``(B) the total number of defense acquisition personnel as of 
    October 1, 1997, is less than the baseline number by at least 
    30,000.''.
    (b) Baseline Number.--Such section is further amended by adding at 
the end the following new paragraph:
    ``(3) For purposes of this subsection, the term `baseline number' 
means the total number of defense acquisition personnel as of October 
1, 1995.''.
    SEC. 903. REDUCTION OF PERSONNEL ASSIGNED TO OFFICE OF THE 
      SECRETARY OF DEFENSE.
    (a) Permanent Limitation on OSD Personnel.--Effective October 1, 
1999, the number of OSD personnel may not exceed 75 percent of the 
baseline number.
    (b) Phased Reduction.--The number of OSD personnel--
        (1) as of October 1, 1997, may not exceed 85 percent of the 
    baseline number; and
        (2) as of October 1, 1998, may not exceed 80 percent of the 
    baseline number.
    (c) Baseline Number.--For purposes of this section, the term 
``baseline number'' means the number of OSD personnel as of October 1, 
1994.
    (d) OSD Personnel Defined.--For purposes of this section, the term 
``OSD personnel'' means military and civilian personnel of the 
Department of Defense who are assigned to, or employed in, functions in 
the Office of the Secretary of Defense (including Direct Support 
Activities of that Office and the Washington Headquarters Services of 
the Department of Defense).
    (e) Limitation on Reassignment of Functions.--In carrying out 
reductions in the number of personnel assigned to, or employed in, the 
Office of the Secretary of Defense in order to comply with this 
section, the Secretary of Defense may not reassign functions solely in 
order to evade the requirements contained in this section.
    (f) Flexibility.--If the Secretary of Defense determines, and 
certifies to Congress, that the limitation in subsection (b) with 
respect to any fiscal year would adversely affect United States 
national security, the Secretary may waive the limitation under that 
subsection with respect to that fiscal year. If the Secretary of 
Defense determines, and certifies to Congress, that the limitation in 
subsection (a) during fiscal year 1999 would adversely affect United 
States national security, the Secretary may waive the limitation under 
that subsection with respect to that fiscal year. The authority under 
this subsection may be used only once, with respect to a single fiscal 
year.
    (g) Repeal of Prior Requirement.--Section 901(d) of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 401) is repealed.
    SEC. 904. REPORT ON MILITARY DEPARTMENT HEADQUARTERS STAFFS.
    (a) Review by Secretary of Defense.--The Secretary of Defense shall 
conduct a review of the size, mission, organization, and functions of 
the military department headquarters staffs. This review shall include 
the following:
        (1) An assessment on the adequacy of the present organization 
    structure to efficiently and effectively support the mission of the 
    military departments.
        (2) An assessment of options to reduce the number of personnel 
    assigned to the military department headquarters staffs.
        (3) An assessment of the extent of unnecessary duplication of 
    functions between the Office of the Secretary of Defense and the 
    military department headquarters staffs.
        (4) An assessment of the possible benefits that could be 
    derived from further functional consolidation between the civilian 
    secretariat of the military departments and the staffs of the 
    military service chiefs.
        (5) An assessment of the possible benefits that could be 
    derived from reducing the number of civilian officers inthe 
military departments who are appointed by and with the advice and 
consent of the Senate.
    (b) Report.--Not later than March 1, 1997, the Secretary of Defense 
shall submit to the congressional defense committees a report 
containing--
        (1) the findings and conclusions of the Secretary resulting 
    from the review under subsection (a); and
        (2) a plan for implementing resulting recommendations, 
    including proposals for legislation (with supporting rationale) 
    that would be required as a result of the review.
    (c) Reduction in Total Number of Personnel Assigned.--In developing 
the plan under subsection (b)(2), the Secretary shall make every effort 
to provide for significant reductions in the overall number of military 
and civilian personnel assigned to or serving in the military 
department headquarters staffs.
    (d) Military Department Headquarters Staffs Defined.--For the 
purposes of this section, the term ``military department headquarters 
staffs'' means the offices, organizations, and other elements of the 
Department of Defense comprising the following:
        (1) The Office of the Secretary of the Army.
        (2) The Army Staff.
        (3) The Office of the Secretary of the Air Force.
        (4) The Air Staff.
        (5) The Office of the Secretary of the Navy.
        (6) The Office of the Chief of Naval Operations.
        (7) Headquarters, Marine Corps.
    SEC. 905. MATTERS TO BE CONSIDERED IN NEXT ASSESSMENT OF CURRENT 
      MISSIONS, RESPONSIBILITIES, AND FORCE STRUCTURE OF THE UNIFIED 
      COMBATANT COMMANDS.
    The Chairman of the Joint Chiefs of Staff shall consider, as part 
of the next periodic review by the Chairman of the missions, 
responsibilities, and force structure of the unified combatant commands 
pursuant to section 161(b) of title 10, United States Code, the 
following matters:
        (1) Whether there exists an adequate distribution of threats, 
    mission requirements, and responsibilities for geographic areas 
    among the regional unified combatant commands.
        (2) Whether reductions in the overall force structure of the 
    Armed Forces permit the United States to better execute its 
    warfighting plans through fewer or differently configured unified 
    combatant commands, including--
            (A) a total of five or fewer commands, all of which are 
        regional;
            (B) a total of three commands consisting of an eastward-
        oriented command, a westward-oriented command, and a central 
        command;
            (C) a purely functional command structure, involving (for 
        example) a first theater command, a second theater command, a 
        logistics command, a special contingencies command, and a 
        strategic command; or
            (D) any other command structure or configuration the 
        Chairman finds appropriate.
        (3) Whether any missions, staff, facilities, equipment, 
    training programs, or other assets or activities of the unified 
    combatant commands are redundant.
        (4) Whether warfighting requirements are adequate to justify 
    the current functional commands.
        (5) Whether the exclusion of certain nations from the Areas of 
    Responsibility of the unified combatant commands presents 
    difficulties with respect to the achievement of United States 
    national security objectives in those areas.
        (6) Whether the current geographic boundary between the United 
    States Central Command and the United States European Command 
    through the Middle East could create command conflicts in the 
    context of a major regional conflict in the Middle East region.
    SEC. 906. TRANSFER OF AUTHORITY TO CONTROL TRANSPORTATION SYSTEMS 
      IN TIME OF WAR.
    (a) Authority of Secretary of Defense.--Section 4742 of title 10, 
United States Code, is amended by striking out ``Secretary of the 
Army'' and inserting in lieu thereof ``Secretary of Defense''.
    (b) Transfer of Section.--Such section, as amended by subsection 
(a), is transferred to the end of chapter 157 of such title and is 
redesignated as section 2644.
    (c) Conforming Repeal.--Section 9742 of such title is repealed.
    (d) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 157 of such title is amended by adding at the end 
the following new item:

``2644. Control of transportation systems in time of war.''.

    (2) The table of sections at the beginning of chapter 447 of such 
title is amended by striking out the item relating to section 4742.
    (3) The table of sections at the beginning of chapter 947 of such 
title is amended by striking out the item relating to section 9742.
    SEC. 907. CODIFICATION OF REQUIREMENTS RELATING TO CONTINUED 
      OPERATION OF THE UNIFORMED SERVICES UNIVERSITY OF THE HEALTH 
      SCIENCES.
    (a) Codification of Existing Law.--(1) Chapter 104 of title 10, 
United States Code, is amended by inserting after section 2112 the 
following new section:

``Sec. 2112a. Continued operation of University

    ``(a) Closure Prohibited.--The University may not be closed.
    ``(b) Personnel Strength.--During the five-year period beginning on 
October 1, 1996, the personnel staffing levels for the University may 
not be reduced below the personnel staffing levels for the University 
as of October 1, 1993.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2112 the 
following new item:

``2112a. Continued operation of University.''.

    (b) Repeal of Superseded Law.--(1) Section 922 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2829; 10 U.S.C. 2112 note) is amended by striking out subsection 
(a).
    (2) Section 1071 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 445; 10 U.S.C. 2112 
note) is amended by striking out subsection (b).
    SEC. 908. JOINT REQUIREMENTS OVERSIGHT COUNCIL.
    Section 181 of title 10, United States Code, as added effective 
January 31, 1997, is amended by adding at the end the following new 
subsection:
    ``(d) Availability of Oversight Information to Congressional 
Defense Committees.--(1) The Secretary of Defense shall ensure that, in 
the case of a recommendation by the Chairman to the Secretary that is 
approved by the Secretary, oversight information with respect to such 
recommendation that is produced as a result of the activities of the 
Joint Requirements Oversight Council is made available in a timely 
fashion to the congressional defense committees.
    ``(2) In this subsection:
        ``(A) The term `oversight information' means information and 
    materials comprising analysis and justification that are prepared 
    to support a recommendation that is made to, and approved by, the 
    Secretary of Defense.
        ``(B) The term `congressional defense committees' means--
            ``(i) the Committee on Armed Services and the Committee on 
        Appropriations of the Senate; and
            ``(ii) the Committee on National Security and the Committee 
        on Appropriations of the House of Representatives.''.
    SEC. 909. MEMBERSHIP OF THE AMMUNITION STORAGE BOARD.
    Section 172(a) of title 10, United States Code, is amended by 
striking out ``a joint board of officers selected by them'' and 
inserting in lieu thereof ``a joint board selected by them composed of 
officers, civilian officers and employees of the Department of Defense, 
or both''.
    SEC. 910. REMOVAL OF SECRETARY OF THE ARMY FROM MEMBERSHIP ON THE 
      FOREIGN TRADE ZONE BOARD.
    The first section of the Act of June 18, 1934 (Public Law Numbered 
397, Seventy-third Congress; 48 Stat. 998) (19 U.S.C. 81a), popularly 
known as the ``Foreign Trade Zones Act'', is amended--
        (1) in subsection (b), by striking out ``the Secretary of the 
    Treasury, and the Secretary of War'' and inserting in lieu thereof 
    ``and the Secretary of the Treasury''; and
        (2) in subsection (c), by striking out ``Alaska, Hawaii,''.
    SEC. 911. COMPOSITION OF AIRCRAFT ACCIDENT INVESTIGATION BOARDS.
    (a) Selection of Board Members.--(1) Chapter 134 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2255. Aircraft accident investigation boards: composition 
     requirements
    ``(a) Required Membership of Boards.--Whenever the Secretary of a 
military department convenes an aircraft accident investigation board 
to conduct an accident investigation (as described in section 
2254(a)(2) of this title) with respect to a Class A accident involving 
an aircraft under the jurisdiction of the Secretary, the Secretary 
shall select the membership of the board so that--
        ``(1) a majority of the members (or in the case of a board 
    consisting of a single member, the member) is selected from units 
    other than the mishap unit or a unit subordinate to the mishap 
    unit; and
        ``(2) in the case of a board consisting of more than one 
    member, at least one member of the board is a member of the armed 
    forces or an officer or an employee of the Department of Defense 
    who possesses knowledge and expertise relevant to aircraft accident 
    investigations.
    ``(b) Exception.--(1) The Secretary of the military department 
concerned may waive the requirement of subsection (a)(1) in the case of 
an aircraft accident if the Secretary determines that--
        ``(A)  it  is  not  practicable  to  meet  the  requirement 
    because of--
            ``(i) the remote location of the aircraft accident;
            ``(ii) an urgent need to promptly begin the investi- 
        gation; or
            ``(iii) a lack of available persons outside of the mishap 
        unit who have adequate knowledge and expertise regarding the 
        type of aircraft involved in the accident; and
        ``(B) the objectivity and independence of the aircraft accident 
    investigation board will not be compromised.
    ``(2) The Secretary shall notify Congress of a waiver exercised 
under this subsection and the reasons therefor.
    ``(c) Consultation Requirement.--In the case of an aircraft 
accident investigation board consisting of a single member, the member 
shall consult with a member of the armed forces or an officer or an 
employee of the Department of Defense who possesses knowledge and 
expertise relevant to aircraft accident investigations.
    ``(d) Designation of Class A Accidents.--Not later than 60 days 
after an aircraft accident involving an aircraft under the jurisdiction 
of the Secretary of a military department, the Secretary shall 
determine whether the aircraft accident should be designated as a Class 
A accident for purposes of this section.
    ``(e) Definitions.--In this section:
        ``(1) The term `Class A accident' means an accident involving 
    an aircraft that results in--
            ``(A) the loss of life or permanent disability;
            ``(B) damages to the aircraft, other property, or a 
        combination of both, in an amount in excess of the amount 
        specified by the Secretary of Defense for purposes of 
        determining Class A accidents; or
            ``(C) the destruction of the aircraft.
        ``(2) The term `mishap unit', with respect to an aircraft 
    accident investigation, means the unit of the armed forces (at the 
    squadron or battalion level or equivalent) to which was assigned 
    the flight crew of the aircraft that sustained the accident that is 
    the subject of the investigation.''.
    (2) The table of sections at the beginning of subchapter II of such 
chapter is amended by adding at the end the following new item:

``2255. Aircraft accident investigation boards: composition 
          requirements.''.

    (b) Effective Date.--Section 2255 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to any aircraft 
accident investigation board convened by the Secretary of a military 
department after the end of the six-month period beginning on the date 
of the enactment of this Act.

SEC. 912. MISSION OF THE WHITE HOUSE COMMUNICATIONS AGENCY.

    (a) Telecommunications Support.--The Secretary of Defense shall 
ensure that the activities of the White House Communications Agency in 
providing support services on a nonreimbursable basis for the President 
from funds appropriated for the Department of Defense for any fiscal 
year are limited to the provision of telecommunications support to the 
President and Vice President and to related elements (as defined in 
regulations of that agency and specified by the President with respect 
to particular individuals within those related elements).
    (b) Other Support.--Support services other than telecommunications 
support services described in subsection (a) may be provided by the 
Department of Defense for the President through the White House 
Communications Agency on a reimbursable basis.
    (c) White House Communications Agency.--For purposes of this 
section, the term ``White House Communications Agency'' means the 
element of the Department of Defense within the Defense Communications 
Agency that is known on the date of the enactment of this Act as the 
White House Communications Agency and includes any successor agency.
    (d) Report on Issues Raised by DOD Inspector General Review of 
White House Communications Agency.--Not later than October 1, 1996, or 
30 days after the date of the enactment of this Act, whichever is 
later, the Secretary of Defense shall submit to Congress a report 
setting forth the actions taken by the Secretary to address the issues 
raised by the report of the Department of Defense Inspector General 
reviewing the mission of the White House Communications Agency.
    (e) Quarterly Reports During Fiscal Year 1997.--Not later than 30 
days after the end of each quarter of fiscal year 1997, the Secretary 
of Defense shall submit to Congress a report describing the support 
services other than telecommunications support services described in 
subsection (a) that were provided during the preceding quarter by the 
Department of Defense for the President through the White House 
Communications Agency.
    (f) Effective Date.--This section takes effect on October 1, 1997, 
and applies to funds appropriated for the Department of Defense for any 
fiscal year after fiscal year 1997.

                   Subtitle B--Force Structure Review

SEC. 921. SHORT TITLE.

    This subtitle may be cited as the ``Military Force Structure Review 
Act of 1996''.

SEC. 922. FINDINGS.

    Congress makes the following findings:
        (1) Since the collapse of the Soviet Union in 1991, the United 
    States has conducted two substantial assessments of the force 
    structure of the Armed Forces necessary to meet United States 
    defense requirements.
        (2) The assessment by the Bush Administration (known as the 
    ``Base Force'' assessment) and the assessment by the Clinton 
    Administration (known as the ``Bottom-Up Review'') were intended to 
    reassess the force structure of the Armed Forces in light of the 
    changing realities of the post-Cold War world.
        (3) Both assessments served an important purpose in focusing 
    attention on the need to reevaluate the military posture of the 
    United States, but the pace of global change necessitates a new, 
    comprehensive assessment of the defense strategy of the United 
    States and the force structure of the Armed Forces required to meet 
    the threats to the United States in the twenty-first century.
        (4) The Bottom-Up Review has been criticized on several points, 
    including--
            (A) the assumptions underlying the strategy of planning to 
        fight and win two nearly simultaneous major regional conflicts;
            (B) the force levels recommended to carry out that 
        strategy; and
            (C) the funding proposed for such recommended force levels.
        (5) In response to the recommendations of the Commission on 
    Roles and Missions of the Armed Forces, the Secretary of Defense 
    endorsed the concept of conducting a quadrennial review of the 
    defense program at the beginning of each newly elected Presidential 
    administration, and the Department intends to complete the first 
    such review in 1997.
        (6) The review is to involve a comprehensive examination of 
    defense strategy, the force structure of the active, guard, and 
    reserve components, force modernization plans, infrastructure, and 
    other elements of the defense program and policies in order to 
    determine and express the defensestrategy of the United States and 
to establish a revised defense program through the year 2005.
        (7) In order to ensure that the force structure of the Armed 
    Forces is adequate to meet the challenges to the national security 
    interests of the United States in the twenty-first century, to 
    assist the Secretary of Defense in conducting the review referred 
    to in paragraph (5), and to assess the appropriate force structure 
    of the Armed Forces through the year 2010 and beyond (if 
    practicable), it is important to provide for the conduct of an 
    independent, nonpartisan review of the force structure that is more 
    comprehensive than prior assessments of the force structure, 
    extends beyond the quadrennial defense review, and explores 
    innovative and forward-thinking ways of meeting such challenges.

SEC. 923. QUADRENNIAL DEFENSE REVIEW.

    (a) Requirement in 1997.--The Secretary of Defense, in consultation 
with the Chairman of the Joint Chiefs of Staff, shall complete in 1997 
a review of the defense program of the United States intended to 
satisfy the requirements for a Quadrennial Defense Review as identified 
in the recommendations of the Commission on Roles and Missions of the 
Armed Forces. The review shall include a comprehensive examination of 
the defense strategy, force structure, force modernization plans, 
infrastructure, budget plan, and other elements of the defense program 
and policies with a view toward determining and expressing the defense 
strategy of the United States and establishing a revised defense 
program through the year 2005.
    (b) Involvement of National Defense Panel.--(1) The Secretary shall 
apprise the National Defense Panel established under section 924, on an 
ongoing basis, of the work undertaken in the conduct of the review.
    (2) Not later than March 14, 1997, the Chairman of the National 
Defense Panel shall submit to the Secretary the Panel's assessment of 
work undertaken in the conduct of the review as of that date and shall 
include in the assessment the recommendations of the Panel for 
improvements to the review, including recommendations for additional 
matters to be covered in the review.
    (c) Assessments of Review.--Upon completion of the review, the 
Chairman of the Joint Chiefs of Staff and the Chairman of the National 
Defense Panel, on behalf of the Panel, shall each prepare and submit to 
the Secretary such Chairman's assessment of the review in time for the 
inclusion of the assessment in its entirety in the report under 
subsection (d).
    (d) Report.--Not later than May 15, 1997, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a 
comprehensive report on the review. The report shall include the 
following:
        (1) The results of the review, including a comprehensive 
    discussion of the defense strategy of the United States and the 
    force structure best suited to implement that strategy.
        (2) The threats examined for purposes of the review and the 
    scenarios developed in the examination of such threats.
        (3) The assumptions used in the review, including assumptions 
    relating to the cooperation of allies and mission-sharing, levels 
    of acceptable risk, warning times, and intensity and duration of 
    conflict.
        (4) The effect on the force structure of preparations for and 
    participation in peace operations and military operations other 
    than war.
        (5) The effect on the force structure of the utilization by the 
    Armed Forces of technologies anticipated to be available by the 
    year 2005, including precision guided munitions, stealth, night 
    vision, digitization, and communications, and the changes in 
    doctrine and operational concepts that would result from the 
    utilization of such technologies.
        (6) The manpower and sustainment policies required under the 
    defense strategy to support engagement in conflicts lasting more 
    than 120 days.
        (7) The anticipated roles and missions of the reserve 
    components in the defense strategy and the strength, capabilities, 
    and equipment necessary to assure that the reserve components can 
    capably discharge those roles and missions.
        (8) The appropriate ratio of combat forces to support forces 
    (commonly referred to as the ``tooth-to-tail'' ratio) under the 
    defense strategy, including, in particular, the appropriate number 
    and size of headquarter units and Defense Agencies for that 
    purpose.
        (9) The air-lift and sea-lift capabilities required to support 
    the defense strategy.
        (10) The forward presence, pre-positioning, and other 
    anticipatory deployments necessary under the defense strategy for 
    conflict deterrence and adequate military response to anticipated 
    conflicts.
        (11) The extent to which resources must be shifted among two or 
    more theaters under the defense strategy in the event of conflict 
    in such theaters.
        (12) The advisability of revisions to the Unified Command Plan 
    as a result of the defense strategy.
        (13) Any other matter the Secretary considers appropriate.

SEC. 924. NATIONAL DEFENSE PANEL.

    (a) Establishment.--Not later than December 1, 1996, the Secretary 
of Defense shall establish a nonpartisan, independent panel to be known 
as the National Defense Panel (in this section referred to as the 
``Panel''). The Panel shall have the duties set forth in this section.
    (b) Membership.--The Panel shall be composed of a chairman and 
eight other individuals appointed by the Secretary, in consultation 
with the chairman and ranking member of the Committee on Armed Services 
of the Senate and the chairman and ranking member of the Committee on 
National Security of the House of Representatives, from among 
individuals in the private sector who are recognized experts in matters 
relating to the national security of the United States.
    (c) Duties.--The Panel shall--
        (1) conduct and submit to the Secretary the assessment of the 
    review under section 923 that is required by subsection (b)(2) of 
    that section;
        (2) conduct and submit to the Secretary the comprehensive 
    assessment of the review that is required by subsection (c) of that 
    section upon completion of the review; and
        (3) conduct the assessment of alternative force structures for 
    the Armed Forces required under subsection (d).
    (d) Alternative Force Structure Assessment.--(1) The Panel shall 
submit to the Secretary an independent assessment of a variety of 
possible force structures of the Armed Forces through the year 2010 and 
beyond, including the force structure identified in the report on the 
review under section 923(d). The purpose of the assessment is to 
develop proposals for an ``above the line'' force structure of the 
Armed Forces and to provide the Secretary and Congress recommendations 
regarding the optimal force structure to meet anticipated threats to 
the national security of the United States through the time covered by 
the assessment.
    (2) In conducting the assessment, the Panel shall examine a variety 
of potential threats (including near-term threats and long-term 
threats) to the national security interests of the United States, 
including the following:
        (A) Conventional threats across a spectrum of conflicts.
        (B) The proliferation of weapons of mass destruction and the 
    means of delivering such weapons, and the illicit transfer of 
    technology relating to such weapons.
        (C) The vulnerability of United States technology to 
    nontraditional threats, including information warfare.
        (D) Domestic and international terrorism.
        (E) The emergence of a major potential adversary having 
    military capabilities similar to those of the United States.
        (F) Any other significant threat, or combination of threats, 
    identified by the Panel.
    (3) For purposes of the assessment, the Panel shall develop a 
variety of scenarios requiring a military response by the United 
States, including the following:
        (A) Scenarios developed in light of the threats examined under 
    paragraph (2).
        (B) Scenarios developed in light of a continuum of conflicts 
    ranging from a conflict of lesser magnitude than the conflict 
    described in the Bottom-Up Review to a conflict of greater 
    magnitude than the conflict so described.
    (4) As part of the assessment, the Panel shall also--
        (A) develop recommendations regarding a variety of force 
    structures for the Armed Forces that permit the forward deployment 
    of sufficient air, land, and sea-based forces to provide an 
    effective deterrent to conflict and to permit a military response 
    by the United States to the scenarios developed under paragraph 
    (3);
        (B) to the extent practicable, estimate the funding required by 
    fiscal year, in constant fiscal year 1997 dollars, to organize, 
    equip, and support the forces contemplated under the force 
    structures assessed in the assessment; and
        (C) comment on each of the matters also to be included by the 
    Secretary in the report required by section 923(d).
    (e) Report.--(1) Not later than December 1, 1997, the Panel shall 
submit to the Secretary a report setting forth the activities and the 
findings and recommendations of the Panel under subsection (d), 
including any recommendations for legislation that the Panel considers 
appropriate.
    (2) Not later than December 15, 1997, the Secretary shall, after 
consultation with the Chairman of the Joint Chiefs of Staff, submit to 
the committees referred to in subsection (b) a copy of the report under 
paragraph (1), together with the Secretary's comments on the report.
    (f) Information From Federal Agencies.--The Panel may secure 
directly from the Department of Defense and any of its components and 
from any other Federal department and agency such information as the 
Panel considers necessary to carry out its duties under this section. 
The head of the department or agency concerned shall ensure that 
information requested by the Panel under this subsection is promptly 
provided.
    (g) Personnel Matters.--(1) Each member of the Panel shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in the performance of 
the duties of the Panel.
    (2) The members of the Panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Panel.
    (3)(A) The chairman of the Panel may, without regard to the civil 
service laws and regulations, appoint and terminate an executive 
director, and a staff of not more than four additional individuals, if 
the Panel determines that an executive director and staff are necessary 
in order for the Panel to perform its duties effectively. The 
employment of an executive director shall be subject to confirmation by 
the Panel.
    (B) The chairman may fix the compensation of the executive director 
without regard to the provisions of chapter 51 and subchapter III of 
chapter 53 of title 5, United States Code, relating to classification 
of positions and General Schedule pay rates, except that the rate of 
pay for the executive director may not exceed the rate payable for 
level V of the Executive Schedule under section 5316 of such title.
    (4) Any Federal Government employee may be detailed to the Panel 
without reimbursement, and such detail shall be without interruption or 
loss of civil service status or privilege. The Secretary shall ensure 
that sufficient personnel are detailed to the Panel to enable the Panel 
to carry out its duties effectively.
    (5) To the maximum extent practicable, the members and employees of 
the Panel shall travel on military aircraft, military ships, military 
vehicles, or other military conveyances when travel is necessary in the 
performance of a duty of the Panel, except that no such aircraft, ship, 
vehicle, or other conveyance may be scheduled primarily for the 
transportation of any such member or employee when the cost of 
commercial transportation is less expensive.
    (h) Administrative Provisions.--(1) The Panel may use the United 
States mails and obtain printing and binding services in the same 
manner and under the same conditions as other departments and agencies 
of the Federal Government.
    (2) The Secretary shall furnish the Panel any administrative and 
support services requested by the Panel.
    (3) The Panel may accept, use, and dispose of gifts or donations of 
services or property.
    (i) Payment of Panel Expenses.--The compensation, travel expenses, 
and per diem allowances of members and employees of the Panel shall be 
paid out of funds available to the Department of Defense for the 
payment of compensation, travel allowances, and per diem allowances, 
respectively, of civilian employees of the Department. The other 
expenses of the Panel shall be paid out of funds available to the 
Department for the payment of similar expenses incurred by the 
Department.
    (j) Termination.--The Panel shall terminate 30 days after the date 
on which the Panel submits its report to the Secretary under subsection 
(e).

SEC. 925. POSTPONEMENT OF DEADLINES.

    If the Presidential election in 1996 results in the election of a 
new President, each deadline set forth in this subtitle shall be 
postponed by three months.

SEC. 926. DEFINITIONS.

    In this subtitle:
        (1) The term ```above the line' force structure of the Armed 
    Forces'' means the force structure (including numbers, strengths, 
    and composition and major items of equipment) for the Armed Forces 
    at the following unit levels:
            (A) In the case of the Army, the division.
            (B) In the case of the Navy, the battle group.
            (C) In the case of the Air Force, the wing.
            (D) In the case of the Marine Corps, the expeditionary 
        force.
            (E) In the case of special operations forces of the Army, 
        Navy, or Air Force, the major operating unit.
            (F) In the case of the strategic forces, the ballistic 
        missile submarine fleet, the heavy bomber force, and the 
        intercontinental ballistic missile force.
        (2) The term ``Commission on Roles and Missions of the Armed 
    Forces'' means the Commission on Roles and Missions of the Armed 
    Forces established by subtitle E of title IX of the National 
    Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
    107 Stat. 1738; 10 U.S.C. 111 note).
        (3) The term ``military operation other than war'' means any 
    operation other than war that requires the utilization of the 
    military capabilities of the Armed Forces, including peace 
    operations, humanitarian assistance operations and activities, 
    counter-terrorism operations and activities, disaster relief 
    activities, and counter-drug operations and activities.
        (4) The term ``peace operations'' means military operations in 
    support of diplomatic efforts to reach long-term political 
    settlements of conflicts and includes peacekeeping operations and 
    peace enforcement operations.

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of certain unauthorized fiscal year 
1996 defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
for fiscal year 1996.
Sec. 1005. Format for budget requests for Navy/Marine Corps and Air 
Force ammunition accounts.
Sec. 1006. Format for annual budget requests for Defense Airborne 
Reconnaissance Program.
Sec. 1007. Limitation on use of Department of Defense funds transferred 
to the Coast Guard.
Sec. 1008. Fisher House Trust Fund for the Department of the Navy.
Sec. 1009. Designation and liability of disbursing and certifying 
officials for the Coast Guard.
Sec. 1010. Authority to suspend or terminate collection actions against 
deceased members of the Coast Guard.
Sec. 1011. Department of Defense disbursing official check cashing and 
exchange transactions.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of 
contracts for phased maintenance of AE class ships.
Sec. 1022. Funding for second and third maritime prepositioning ships 
out of National Defense Sealift Fund.
Sec. 1023. Transfer of certain obsolete tugboats of the Navy.
Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.
Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

                   Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug 
activities of Mexico.
Sec. 1032. Availability of funds for certain drug interdiction and 
counter-drug activities.
Sec. 1033. Transfer of excess personal property to support law 
enforcement activities.
Sec. 1034. Sale by Federal departments or agencies of chemicals used to 
manufacture controlled substances.

                     Subtitle D--Reports and Studies

Sec. 1041. Annual report on Operation Provide Comfort and Operation 
Enhanced Southern Watch.
Sec. 1042. Annual report on emerging operational concepts.
Sec. 1043. Report on Department of Defense military child care programs.
Sec. 1044. Report on Department of Defense military youth programs.
Sec. 1045. Quarterly reports regarding coproduction agreements.
Sec. 1046. Report on witness interview procedures for Department of 
Defense criminal investigations.
Sec. 1047. Report on military readiness requirements of the Armed 
Forces.
Sec. 1048. Report on NATO enlargement.

         Subtitle E--Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.
Sec. 1052. Acceptance of uncompensated services.
Sec. 1053. Disposal of tract of real property in the District of 
Columbia.

                        Subtitle F--Other Matters

Sec. 1061. Policy on protection of national information infrastructure 
against strategic attack.
Sec. 1062. Information systems security program.
Sec. 1063. Authority to accept services from foreign governments and 
international organizations for defense purposes.
Sec. 1064. Prohibition on collection and release of detailed satellite 
imagery relating to Israel.
Sec. 1065. George C. Marshall European Center for Strategic Security 
Studies.
Sec. 1066. Authority to award to civilian participants in the defense of 
Pearl Harbor the Congressional Medal previously authorized only for 
military participants in the defense of Pearl Harbor.
Sec. 1067. Assimilative crimes authority for traffic offenses on 
military installations.
Sec. 1068. Uniform Code of Military Justice amendments.
Sec. 1069. Punishment of interstate stalking.
Sec. 1070. Participation of members, dependents, and other persons in 
crime prevention efforts at installations.
Sec. 1071. Display of State flags at installations and facilities of the 
Department of Defense.
Sec. 1072. Treatment of excess operational support airlift aircraft.
Sec. 1073. Correction to statutory references to certain Department of 
Defense organizations.
Sec. 1074. Technical and clerical amendments.
Sec. 1075. Modification to third-party liability to United States for 
tortious infliction of injury or disease on members of the uniformed 
services.
Sec. 1076. Chemical Stockpile Emergency Preparedness Program.
Sec. 1077. Exemption from requirements applicable to savings 
associations for certain savings institutions serving military 
personnel.
Sec. 1078. Improvements to National Security Education Program.
Sec. 1079. Aviation and vessel war risk insurance.
Sec. 1080. Designation of memorial as National D-Day Memorial.
Sec. 1081. Sense of Congress regarding semiconductor trade agreement 
between United States and Japan.
Sec. 1082. Agreements for exchange of defense personnel between the 
United States and foreign countries.
Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.
Sec. 1084. Defense burdensharing.

                     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 1997 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 of 
Defense 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. 3230 of the One Hundred Fourth 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. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL YEAR 
1996 DEFENSE APPROPRIATIONS.
    (a) Authority.--The amounts described in subsection (b) may be 
obligated and expended for programs, projects, and activities of the 
Department of Defense in accordance with fiscal year 1996 defense 
appropriations.
    (b) Covered Amounts.--The amounts referred to in subsection (a) are 
the amounts provided for programs, projects, and activities of the 
Department of Defense in fiscal year 1996 defense appropriations that 
are in excess of the amounts provided for such programs, projects, and 
activities in fiscal year 1996 defense authorizations.
    (c) Definitions.--For the purposes of this section:
        (1) Fiscal year 1996 defense appropriations.--The term ``fiscal 
    year 1996 defense appropriations'' means amounts appropriated or 
    otherwise made available to the Department of Defense for fiscal 
    year 1996 in the Department of Defense Appropriations Act, 1996 
    (Public Law 104-61).
        (2) Fiscal year 1996 defense authorizations.--The term ``fiscal 
    year 1996 defense authorizations'' means amounts authorized to be 
    appropriated for the Department of Defense for fiscal year 1996 in 
    the National Defense Authorization Act for Fiscal Year 1996 (Public 
    Law 104-106).
SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
FOR FISCAL YEAR 1996.
    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 1996 in the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106) 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 Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (Public Law 
104-134).
SEC. 1005. FORMAT FOR BUDGET REQUESTS FOR NAVY/MARINE CORPS AND AIR 
FORCE AMMUNITION ACCOUNTS.
    Section 114 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f) In each budget submitted by the President to Congress under 
section 1105 of title 31, amounts requested for procurement of 
ammunition for the Navy and Marine Corps, and for procurement of 
ammunition for the Air Force, shall be set forth separately from other 
amounts requested for procurement.''.
SEC. 1006. FORMAT FOR ANNUAL BUDGET REQUESTS FOR DEFENSE AIRBORNE 
RECONNAISSANCE PROGRAM.
    (a) Separate Display Required.--The Secretary of Defense shall 
ensure that in the budget justification documents for any fiscal year 
there are set forth separately the amount requested for research, 
development, test, and evaluation, and the amount requested for 
procurement, for each program area within the Defense Airborne 
Reconnaissance Program.
    (b) Program Areas Within Defense Airborne Reconnaissance Program.--
For purposes of subsection (a), the programs of the Defense Airborne 
Reconnaissance Program shall be categorized as being within one of the 
following areas:
        (1) Tactical unmanned aerial vehicles.
        (2) Endurance unmanned aerial vehicles.
        (3) Airborne reconnaissance systems.
        (4) Manned reconnaissance systems.
        (5) Distributed common ground systems.
        (6) Any additional program area established by the Secretary of 
    Defense.
    (c) Budget Justification Documents.--For purposes of subsection 
(a), the term ``budget justification documents'' means the supporting 
budget documentation submitted to the congressional defense committees 
in support of the budget of the Department of Defense for a fiscal year 
as included in the budget of the President submitted under section 1105 
of title 31, United States Code, for that fiscal year.
SEC. 1007. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS TRANSFERRED 
TO THE COAST GUARD.
    (a) Limitation to National Security Functions.--Funds appropriated 
to the Department of Defense for fiscal year 1997 that are transferred 
pursuant to law to the Coast Guard may be used only for the performance 
of national security functions of the Coast Guard in support of the 
Department of Defense.
    (b) Certification Required.--Funds appropriated to the Department 
of Defense for fiscal year 1997 may not be transferred to the Coast 
Guard until the Secretary of Defense and the Secretary of 
Transportation jointly certify to Congress that the funds so 
transferred will be used only in accordance with the limitation in 
subsection (a).
    (c) Periodic GAO Audits.--The Comptroller General of the United 
States shall--
        (1) audit, from time to time, the use of funds transferred to 
    the Coast Guard from appropriations for the Department of Defense 
    for fiscal year 1997 in order to verify that those funds are being 
    used in accordance with the limitation in subsection (a); and
        (2) notify the congressional defense committees of any use of 
    those funds that, in the judgment of the Comptroller General, is a 
    violation of that limitation.
SEC. 1008. FISHER HOUSE TRUST FUND FOR THE DEPARTMENT OF THE NAVY.
    (a) Authority.--Section 2221 of title 10, United States Code, is 
amended--
        (1) by adding at the end of subsection (a) the following:
        ``(3) The Fisher House Trust Fund, Department of the Navy.'';
        (2) in subsection (c)--
            (A) by redesignating paragraph (3) as paragraph (4); and
            (B) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3) Amounts in the Fisher House Trust Fund, Department of the 
Navy, that are attributable to earnings or gains realized from 
investments shall be available for the operation and maintenance of 
Fisher houses that are located in proximity to medical treatment 
facilities of the Navy.''; and
        (3) in subsection (d)(1), by striking out ``or the Air Force'' 
    and inserting in lieu thereof ``, the Air Force, or the Navy''.
    (b) Corpus of Trust Funds.--The Secretary of the Navy shall 
transfer to the Fisher House Trust Fund, Department of the Navy, 
established by section 2221(a)(3) of title 10, United States Code (as 
added by subsection (a)(1)), all amounts in the accounts for Navy 
installations and other facilities that, as of the date of the 
enactment of this Act, are available for operation and maintenance of 
Fisher houses, as defined in section 2221(d) of such title.
    (c) Conforming Amendments.--Section 1321 of title 31, United States 
Code, is amended--
        (1) by adding at the end of subsection (a) the following:
        ``(94) Fisher House Trust Fund, Department of the Navy.''; and
        (2) by adding at the end of subsection (b)(2) the following:
        ``(D) Fisher House Trust Fund, Department of the Navy.''.
SEC. 1009. DESIGNATION AND LIABILITY OF DISBURSING AND CERTIFYING 
OFFICIALS FOR THE COAST GUARD.
    (a) Disbursing Officials.--(1) Section 3321(c) of title 31, United 
States Code, is amended by adding at the end the following:
        ``(3) The Department of Transportation (with respect to public 
    money available for expenditure by the Coast Guard when it is not 
    operating as a service in the Navy).''.
    (2)(A) Chapter 17 of title 14, United States Code, is amended by 
adding at the end the following new section:
``Sec. 673. Designation, powers, and accountability of deputy 
    disbursing officials
    ``(a)(1) Subject to paragraph (3), a disbursing official of the 
Coast Guard may designate a deputy disbursing official--
        ``(A) to make payments as the agent of the disbursing official;
        ``(B) to sign checks drawn on disbursing accounts of the 
    Secretary of the Treasury; and
        ``(C) to carry out other duties required under law.
    ``(2) The penalties for misconduct that apply to a disbursing 
official apply to a deputy disbursing official designated under this 
subsection.
    ``(3) A disbursing official may make a designation under paragraph 
(1) only with the approval of the Secretary of Transportation (when the 
Coast Guard is not operating as a service in the Navy).
    ``(b)(1) If a disbursing official of the Coast Guard dies, becomes 
disabled, or is separated from office, a deputy disbursing official may 
continue the accounts and payments in the name of the former disbursing 
official until the last day of the second month after the month in 
which the death, disability, or separation occurs. The accounts and 
payments shall be allowed, audited, and settled as provided by law. The 
Secretary of the Treasury shall honor checks signed in the name of the 
former disbursing official in the same way as if the former disbursing 
official had continued in office.
    ``(2) The deputy disbursing official, and not the former disbursing 
official or the estate of the former disbursing official, is liable for 
the actions of the deputy disbursing official under this subsection.
    ``(c)(1) Except as provided in paragraph (2), this section does not 
apply to the Coast Guard when section 2773 of title 10 applies to the 
Coast Guard by reason of the operation of the Coast Guard as a service 
in the Navy.
    ``(2) A designation of a deputy disbursing official under 
subsection (a) that is made while the Coast Guard is not operating as a 
service in the Navy continues in effect for purposes of section 2773 of 
title 10 while the Coast Guard operates as a service in the Navy unless 
and until the designation is terminated by the disbursing official who 
made the designation or an official authorized to approve such a 
designation under subsection (a)(3) of such section.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``673. Designation, powers, and accountability of deputy disbursing 
          officials.''.

    (b) Designation of Members of the Armed Forces To Have Authority To 
Certify Vouchers.--Section 3325(b) of title 31, United States Code, is 
amended by striking out ``members of the armed forces under the 
jurisdiction of the Secretary of Defense may certify vouchers when 
authorized, in writing, by the Secretary to do so'' and inserting in 
lieu thereof ``members of the armed forces may certify vouchers when 
authorized, in writing, by the Secretary of Defense or, in the case of 
the Coast Guard when it is not operating as a service in the Navy, by 
the Secretary of Transportation''.
    (c) Conforming Amendments.--(1) Section 1007(a) of title 37, United 
States Code, is amended by inserting after ``Secretary of Defense'' the 
following: ``(or the Secretary of Transportation, in the case of an 
officer of the Coast Guard when the Coast Guard is not operating as a 
service in the Navy)''.
    (2) Section 3527(b)(1) of title 31, United States Code, is 
amended--
        (A) in subparagraph (A)(i), by inserting after ``Department of 
    Defense'' the following: ``(or the Secretary of Transportation, in 
    the case of a disbursing official of the Coast Guard when the Coast 
    Guard is not operating as a service in the Navy)''; and
        (B) in subparagraph (B), by inserting after ``or the Secretary 
    of the appropriate military department'' the following: ``(or the 
    Secretary of Transportation, in the case of a disbursing official 
    of the Coast Guard when the Coast Guard is not operating as a 
    service in the Navy)''.
SEC. 1010. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION ACTIONS AGAINST 
DECEASED MEMBERS OF THE COAST GUARD.
    Section 3711(g) of title 31, United States Code, is amended--
        (1) in paragraph (1), by striking out ``or Marine Corps'' and 
    inserting in lieu thereof ``Marine Corps, or Coast Guard during a 
    period when the Coast Guard is operating as a service in the 
    Navy'';
        (2) by redesignating paragraph (2) as paragraph (3); and
        (3) by inserting after paragraph (1) the following new 
    paragraph (2):
    ``(2) The Secretary of Transportation may suspend or terminate an 
action by the Secretary under subsection (a) to collect a claim against 
the estate of a person who died while serving on active duty as a 
member of the Coast Guard if the Secretary determines that, under the 
circumstances applicable with respect to the deceased person, it is 
appropriate to do so.''.
SEC. 1011. DEPARTMENT OF DEFENSE DISBURSING OFFICIAL CHECK CASHING AND 
EXCHANGE TRANSACTIONS.
    Section 3342(b) of title 31, United States Code, is amended--
        (1) by striking out the period at the end of paragraph (3) and 
    inserting in lieu thereof a semicolon;
        (2) by striking out ``and'' at the end of paragraph (5);
        (3) by striking out the period at the end of paragraph (6) and 
    inserting in lieu thereof ``; or''; and
        (4) by adding at the end the following new paragraph:
        ``(7) a Federal credit union (as defined in section 101(1) of 
    the Federal Credit Union Act (12 U.S.C. 1752(1)) that at the 
    request of the Secretary of Defense is operating on a United States 
    military installation in a foreign country, but only if that 
    country does not permit contractor-operated military banking 
    facilities to operate on such installations.''.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1021. REPEAL OF REQUIREMENT FOR CONTINUOUS APPLICABILITY OF 
CONTRACTS FOR PHASED MAINTENANCE OF AE CLASS SHIPS.
    Section 1016 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 425) is repealed.
SEC. 1022. FUNDING FOR SECOND AND THIRD MARITIME PREPOSITIONING SHIPS 
OUT OF NATIONAL DEFENSE SEALIFT FUND.
    (a) National Defense Sealift Fund.--To the extent provided in 
appropriations Acts, funds in the National Defense Sealift Fund may be 
obligated and expended for the purchase and conversion, or 
construction, of a total of three ships for the purpose of enhancing 
Marine Corps prepositioning ship squadrons.
    (b) Authorization of Appropriations.--Of the amount authorized to 
be appropriated under section 302(2), $240,000,000 is authorized to be 
appropriated for the purpose stated in subsection (a).

SEC. 1023. TRANSFER OF CERTAIN OBSOLETE TUGBOATS OF THE NAVY.

    (a) Requirement To Transfer Vessels.--The Secretary of the Navy 
shall transfer the six obsolete tugboats of the Navy specified in 
subsection (b) to the Northeast Wisconsin Railroad Transportation 
Commission, an instrumentality of the State of Wisconsin, if the 
Secretary determines that the tugboats are not needed for transfer, 
donation, or other disposal under title II of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481 et seq.).
    (b) Vessels Covered.--The requirement in subsection (a) applies to 
the six decommissioned Cherokee class tugboats, listed as of the date 
of the enactment of this Act as being surplus to the Navy, that are 
designatedas ATF-105, ATF-110, ATF-149, ATF-158, ATF-159, and ATF-160.
    (c) Condition Relating to Environmental Compliance.--The Secretary 
shall require as a condition of the transfer of a vessel under 
subsection (a) that use of the vessel by the Commission not commence 
until the terms of any necessary environmental compliance letter or 
agreement with respect to that vessel have been complied with.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions (including a requirement that the 
transfer be at no cost to the Government) in connection with the 
transfers required by subsection (a) as the Secretary considers 
appropriate.
SEC. 1024. TRANSFER OF U.S.S. DRUM TO CITY OF VALLEJO, CALIFORNIA.
    (a) Transfer.--The Secretary of the Navy shall transfer the U.S.S. 
Drum (SSN-677) to the city of Vallejo, California, in accordance with 
this section and upon satisfactory completion of a ship donation 
application. Before making such transfer, the Secretary of the Navy 
shall remove from the vessel the reactor compartment and other 
classified and sensitive military equipment.
    (b) Funding.--As provided in section 7306(c) of title 10, United 
States Code, the transfer of the vessel authorized by this section 
shall be made at no cost to the United States (beyond the cost which 
the United States would otherwise incur for dismantling and recycling 
of the vessel).
    (c) Applicable Law.--The transfer under this section shall be 
subject to subsection (b) of section 7306 of title 10, United States 
Code, but the provisions of subsection (d) of such section shall not be 
applicable to such transfer.

SEC. 1025. SENSE OF CONGRESS CONCERNING USS LCS 102 (LSSL 102).

    It is the sense of Congress that the Secretary of Defense should 
use existing authorities in law to seek the expeditious return, upon 
completion of service, of the former USS LCS102 (LSSL 102) from the 
Government of Thailand in order for the ship to be transferred to the 
United States Shipbuilding Museum in Quincy, Massachusetts.

                  Subtitle C--Counter-Drug Activities

SEC. 1031. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG 
ACTIVITIES OF MEXICO.
    (a) Authority To Provide Additional Support.--Subject to subsection 
(e), during fiscal year 1997, the Secretary of Defense may provide the 
Government of Mexico with the support described in subsection (b) for 
the counter-drug activities of the Government of Mexico. The support 
provided under the authority of this subsection shall be in addition to 
support provided to the Government of Mexico under any other provision 
of law.
    (b) Types of Support.--The authority under subsection (a) is 
limited to the provision of the following types of support:
        (1) The transfer of nonlethal protective and utility per- 
    sonnel equipment.
        (2) The transfer of the following nonlethal specialized 
    equipment:
            (A) Navigation equipment.
            (B) Secure and nonsecure communications equipment.
            (C) Photo equipment.
            (D) Radar equipment.
            (E) Night vision systems.
            (F) Repair equipment and parts for equipment referred to in 
        subparagraphs (A), (B), (C), (D), and (E).
        (3) The transfer of nonlethal components, accessories, 
    attachments, parts (including ground support equipment), firmware, 
    and software for aircraft or patrol boats, and related repair 
    equipment.
        (4) The maintenance and repair of equipment of the Government 
    of Mexico that is used for counter-drug activities.
    (c) Applicability of Other Support Authorities.--Except as 
otherwise provided in this section, the provisions of section 1004 of 
the National Defense Authorization Act for Fiscal Year 1991 (Public Law 
101-510; 10 U.S.C. 374 note) shall apply to the provision of support 
under this section.
    (d) Funding.--Of the amount authorized to be appropriated under 
section 301(19) for drug interdiction and counter-drug activities, not 
more than $8,000,000 shall be available for the provision of support 
under this section.
    (e) Limitations.--(1) The Secretary may not obligate or expend 
funds to provide support under this section until 15 days after the 
date on which the Secretary submits to the committees referred to in 
paragraph (3) the certification described in paragraph (2).
    (2) The certification referred to in paragraph (1) is a written 
certification of the following:
        (A) That the provision of support under this section will not 
    adversely affect the military preparedness of the United States 
    Armed Forces.
        (B) That the equipment and materiel provided as support will be 
    used only by officials and employees of the Government of Mexico 
    who have undergone a background check by that government.
        (C) That the Government of Mexico has certified to the 
    Secretary that--
            (i) the equipment and material provided as support will be 
        used only by the officials and employees referred to in 
        subparagraph (B);
            (ii) none of the equipment or materiel will be transferred 
        (by sale, gift, or otherwise) to any person or entity not 
        authorized by the United States to receive the equipment or 
        materiel; and
            (iii) the equipment and materiel will be used only for the 
        purposes intended by the United States Government.
        (D) That the Government of Mexico has implemented, to the 
    satisfaction of the Secretary, a system that will provide an 
    accounting and inventory of the equipment and materiel provided as 
    support.
        (E) That the departments, agencies, and instrumentalities of 
    the Government of Mexico will grant United States Government 
    personnel access to any of the equipment or materiel provided as 
    support, or to any of the records relating to such equipment or 
    materiel, under terms and conditions similar to the terms and 
    conditions imposed with respect to such access under section 
    505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 
    2314(a)(3)).
        (F) That the Government of Mexico will provide security with 
    respect to the equipment and materiel provided as support that is 
    substantially the same degree of security that the United States 
    Government would provide with respect to such equipment and 
    materiel.
        (G) That the Government of Mexico will permit continuous 
    observation and review by United States Government personnel of the 
    use of the equipment and materiel provided as support under terms 
    and conditions similar to the terms and conditions imposed with 
    respect to such observation and review under section 505(a)(3) of 
    the Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).
    (3) The committees referred to in this paragraph are the following:
        (A) The Committee on Armed Services and the Committee on 
    Foreign Relations of the Senate.
        (B) The Committee on National Security and the Committee on 
    International Relations of the House of Representatives.
SEC. 1032. AVAILABILITY OF FUNDS FOR CERTAIN DRUG INTERDICTION AND 
COUNTER-DRUG ACTIVITIES.
    (a) P-3B Aircraft.--Of the funds authorized to be appropriated 
under section 301(19) for drug interdiction and counter-drug 
activities, not more than $98,000,000 may be used for the purpose of 
procuring or modifying two P-3B aircraft for use by departments and 
agencies of the United Statesoutside the Department of Defense for drug 
interdiction and counter-drug activities. However, funds may not be 
obligated for such purpose until the Secretary of Defense submits to 
the congressional defense committees a certification that the 
procurement or modification of such aircraft and the use of such 
aircraft by other departments or agencies of the United States will 
significantly reduce the level of support that would otherwise be 
required of E-3 AWACS aircraft as part of the drug interdiction and 
counter-drug mission of the Department of Defense.
    (b) Nonintrusive Inspection Devices.--Of the funds authorized to be 
appropriated under section 301(19) for drug interdiction and counter-
drug activities, not more than $10,000,000 may be used to procure three 
nonintrusive inspection devices for use by departments and agencies of 
the United States outside the Department of Defense for drug 
interdiction and counter-drug activities.
    (c) Authority To Transfer Equipment.--The Secretary of Defense may 
transfer to the head of any department or agency of the United States 
outside the Department of Defense any equipment procured or modified 
under this section with funds referred to in this section.
SEC. 1033. TRANSFER OF EXCESS PERSONAL PROPERTY TO SUPPORT LAW 
ENFORCEMENT ACTIVITIES.
    (a) Transfer Authority.--(1) Chapter 153 of title 10, United States 
Code, is amended by inserting after section 2576 the following new 
section:
``Sec. 2576a. Excess personal property: sale or donation for law 
      enforcement activities
    ``(a) Transfer Authorized.--(1) Notwithstanding any other provision 
of law and subject to subsection (b), the Secretary of Defense may 
transfer to Federal and State agencies personal property of the 
Department of Defense, including small arms and ammunition, that the 
Secretary determines is--
        ``(A) suitable for use by the agencies in law enforcement 
    activities, including counter-drug and counter-terrorism 
    activities; and
        ``(B) excess to the needs of the Department of Defense.
    ``(2) The Secretary shall carry out this section in consultation 
with the Attorney General and the Director of National Drug Control 
Policy.
    ``(b) Conditions for Transfer.--The Secretary of Defense may 
transfer personal property under this section only if--
        ``(1) the property is drawn from existing stocks of the 
    Department of Defense;
        ``(2) the recipient accepts the property on an as-is, where-is 
    basis;
        ``(3) the transfer is made without the expenditure of any funds 
    available to the Department of Defense for the procurement of 
    defense equipment; and
        ``(4) all costs incurred subsequent to the transfer of the 
    property are borne or reimbursed by the recipient.
    ``(c) Consideration.--Subject to subsection (b)(4), the Secretary 
may transfer personal property under this section without charge to the 
recipient agency.
    ``(d) Preference for Certain Transfers.--In considering 
applications for the transfer of personal property under this section, 
the Secretary shall give a preference to those applications indicating 
that the transferred property will be used in the counter-drug or 
counter-terrorism activities of the recipient agency.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2576 the 
following new item:
``2576a. Excess personal property: sale or donation for law enforcement 
          activities.''.

    (b) Conforming Amendments.--(1) Section 1208 of the National 
Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 10 U.S.C. 372 note) is repealed.
    (2) Section 1005 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1630) is amended by 
striking out ``section 1208 of the National Defense Authorization Act 
for Fiscal Years 1990 and 1991 (10 U.S.C. 372 note) and section 372'' 
and inserting in lieu thereof ``sections 372 and 2576a''.
SEC. 1034. SALE BY FEDERAL DEPARTMENTS OR AGENCIES OF CHEMICALS USED TO 
MANUFACTURE CONTROLLED SUBSTANCES.
    (a) DEA Certification.--The Controlled Substances Act is amended by 
inserting after section 519 (21 U.S.C. 889) the following new section:
``SEC. 520. REVIEW OF FEDERAL SALES OF CHEMICALS USABLE TO MANUFACTURE 
CONTROLLED SUBSTANCES.
    ``A Federal department or agency may not sell from the stocks of 
the department or agency any chemical which, as determined by the 
Administrator of the Drug Enforcement Administration, could be used in 
the manufacture of a controlled substance unless the Administrator 
certifies in writing to the head of the department or agency that there 
is no reasonable cause to believe that the sale of the chemical would 
result in the illegal manufacture of a controlled substance.''.
    (b) Clerical Amendment.--The table of contents of the Comprehensive 
Drug Abuse Prevention and Control Act of 1970 (84 Stat. 1236) is 
amended by inserting after the item relating to section 519 the 
following new item:
``Sec. 520. Review of Federal sales of chemicals usable to manufacture 
          controlled substances.''.

                    Subtitle D--Reports and Studies

SEC. 1041. ANNUAL REPORT ON OPERATION PROVIDE COMFORT AND OPERATION 
ENHANCED SOUTHERN WATCH.
    (a) Annual Report.--Not later than March 1 of each year, the 
Secretary of Defense shall submit to Congress a report on Operation 
Provide Comfort and Operation Enhanced Southern Watch.
    (b) Matters Relating to Operation Provide Comfort.--Each report 
under subsection (a) shall include, with respect to Operation Provide 
Comfort, the following:
        (1) A detailed presentation of the projected costs to be 
    incurred by the Department of Defense for that operation during the 
    fiscal year in which the report is submitted and projected for the 
    following fiscal year, together with a discussion of missions and 
    functions expected to be performed by the Department as part of 
    that operation during each of those fiscal years.
        (2) A detailed presentation of the projected costs to be 
    incurred by other departments and agencies of the Federal 
    Government participating in or providing support to that operation 
    during each of those fiscal years.
        (3) A discussion of options being pursued to reduce the 
    involvement of the Department of Defense in those aspects of that 
    operation that are not directly related to the military mission of 
    the Department of Defense.
        (4) A discussion of the exit strategy for United States 
    involvement in, and support for, that operation.
        (5) A description of alternative approaches to accomplishing 
    the mission of that operation that are designed to limit the scope 
    and cost to the Department of Defense of accomplishing that mission 
    while maintaining mission success.
        (6) The contributions (both in-kind and actual) by other 
    nations to the costs of conducting that operation.
        (7) A detailed presentation of significant Iraqi military 
    activity (including specific violations of the no-fly zone) 
    determined to jeopardize the security of the Kurdish population in 
    northern Iraq.
    (c) Matters Relating to Operation Enhanced Southern Watch.--Each 
report under subsection (a) shall include, with respect to Operation 
Enhanced Southern Watch, the following:
        (1) The expected duration and annual costs of the various 
    elements of that operation.
        (2) The political and military objectives associated with that 
    operation.
        (3) The contributions (both in-kind and actual) by other 
    nations to the costs of conducting that operation.
        (4) A description of alternative approaches to accomplishing 
    the mission of that operation that are designed to limit the scope 
    and cost of accomplishing that mission while maintaining mission 
    success.
        (5) A comprehensive discussion of the political and military 
    objectives and initiatives that the Department of Defense has 
    pursued, and intends to pursue, in order to reduce United States 
    involvement in that operation.
        (6) A detailed presentation of significant Iraqi military 
    activity (including specific violations of the no-fly zone) 
    determined to jeopardize the security of the Shiite population by 
    air attack in southern Iraq or to jeopardize the security of 
    Kuwait.
    (d) Termination of Report Requirement.--The requirement under 
subsection (a) shall cease to apply with respect to an operation named 
in that subsection upon the termination of United States involvement in 
that operation.
    (e) Definitions.--For purposes of this section:
        (1) Operation enhanced southern watch.--The term ``Operation 
    Enhanced Southern Watch'' means the operation of the Department of 
    Defense that as of October 30, 1995, is designated as Operation 
    Enhanced Southern Watch.
        (2) Operation provide comfort.--The term ``Operation Provide 
    Comfort'' means the operation of the Department of Defense that as 
    of October 30, 1995, is designated as Operation Provide Comfort.

SEC. 1042. ANNUAL REPORT ON EMERGING OPERATIONAL CONCEPTS.

    (a) Report Required.--Not later than March 1 of each year through 
2000, the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on emerging operational concepts. 
Each such report shall be prepared by the Secretary in consultation 
with the Chairman of the Joint Chiefs of Staff.
    (b) Matters To Be Included.--Each such report shall contain a 
description, for the year preceding the year in which the report is 
submitted, of the following:
        (1) The process undertaken in the Department of Defense, and in 
    each of the Army, Navy, Air Force, and Marine Corps, to define and 
    develop doctrine, operational concepts, organizational concepts, 
    and acquisition strategies to address--
            (A) the potential of emerging technologies for 
        significantly improving the operational effectiveness of the 
        Armed Forces;
            (B) changes in the international order that may necessitate 
        changes in the operational capabilities of the Armed Forces;
            (C) emerging capabilities of potential adversary states; 
        and
            (D) changes in defense budget projections.
        (2) The manner in which the processes described in paragraph 
    (1) are harmonized to ensure that there is a sufficient 
    consideration of the development of joint doctrine, operational 
    concepts, and acquisition strategies.
        (3) The manner in which the processes described in paragraph 
    (1) are coordinated through the Joint Requirements Oversight 
    Council and reflected in the planning, programming, and budgeting 
    process of the Department of Defense.
SEC. 1043. REPORT ON DEPARTMENT OF DEFENSE MILITARY CHILD CARE 
PROGRAMS.
    (a) Findings.--Congress makes the following findings:
        (1) The Department of Defense should be congratulated on the 
    successful implementation of the Military Child Care Act of 1989 
    (originally enacted as title XV of Public Law 101-189 and 
    subsequently codified as subchapter II of chapter 88 of title 10, 
    United States Code).
        (2) The actions taken by the Department as a result of that Act 
    have dramatically improved the availability, affordability, 
    quality, and consistency of the child-care services provided to 
    members of the Armed Forces.
        (3) Child care is important to the readiness of members of the 
    Armed Forces since single parents and couples in military service 
    must have access to affordable child care of good quality if they 
    are to perform their jobs and respond effectively to long work 
    hours or deployments.
        (4) Child care is important to the retention of members of the 
    Armed Forces in military service because the dissatisfaction of the 
    families of such members with military life is a primary reason for 
    the departure of such members from military service.
    (b) Sense of Congress Related to Military-Civilian Child-Care 
Partnership Programs.--It is the sense of Congress that--
        (1) the civilian and military child-care communities, Federal, 
    State, and local agencies, and businesses and communities involved 
    in the provision of child-care services could benefit from the 
    development of partnerships to foster an exchange of ideas, 
    information, and materials relating to their experiences with the 
    provision of such services and to encourage closer relationships 
    between military installations and the communities that support 
    them;
        (2) such partnerships would be beneficial to all families by 
    helping providers of child-care services exchange ideas about 
    innovative ways to address barriers to the effective provision of 
    such services; and
        (3) there are many ways that such partnerships could be 
    developed, including--
            (A) cooperation between the directors and curriculum 
        specialists of military child development centers and civilian 
        child development centers in assisting such centers in the 
        accreditation process;
            (B) use of family support staff to conduct parent and 
        family workshops for new parents and parents with young 
        children in family housing on military installations and in 
        communities in the vicinity of such installations;
            (C) internships in Department of Defense child-care 
        programs for civilian child-care providers to broaden the base 
        of good-quality child-care services in communities in the 
        vicinity of military installations; and
            (D) attendance by civilian child-care providers at 
        Department child-care training classes on a space-available 
        basis.
    (c) Report.--Not later than June 30, 1997, the Secretary of Defense 
shall submit to Congress a report on the status of any partnerships and 
other initiatives undertaken by the Department of Defense as described 
in subsection (b), including recommendations for additional ways to 
improve the child-care programs of the Department of Defense and to 
improve such programs so as to benefit civilian child-care providers in 
communities in the vicinity of military installations.
SEC. 1044. REPORT ON DEPARTMENT OF DEFENSE MILITARY YOUTH PROGRAMS.
    (a) Findings.--Congress makes the following findings:
        (1) Programs of the Department of Defense for youth who are 
    dependents of members of the Armed Forces have not received the 
    same level of attention and resources as have child-care programs 
    of the Department since the passage of the Military Child Care Act 
    of 1989 (originally enacted as title XV of Public Law 101-189 and 
    subsequently codified as subchapter II of chapter 88 of title 10, 
    United States Code).
        (2) Older children deserve as much attention to their 
    developmental needs as do younger children.
        (3) The Department has started to direct more attention to 
    programs for youths who are dependents of members of the Armed 
    Forces by providing funds for the implementation of 20 model 
    community programs to address the needs of such youths.
        (4) The lessons learned from such programs could apply to 
    civilian youth programs as well.
    (b) Sense of Congress Related to Military-Civilian Youth 
Partnership Programs.--It is the sense of Congress that--
        (1) the Department of Defense, Federal, State, and local 
    agencies, and businesses and communities involved in conducting 
    youth programs could benefit from the development of partnerships 
    to foster an exchange of ideas, information, and materials relating 
    to such programs and to encourage closer relationships between 
    military installations and the communities that support them;
        (2) such partnerships could be beneficial to all families by 
    helping the providers of services for youths exchange ideas about 
    innovative ways to address barriers to the effective provision of 
    such services; and
        (3) there are many ways that such partnerships could be 
    developed, including--
            (A) cooperation between the Department and Federal and 
        State educational agencies in exploring the use of public 
        school facilities for child-care programs and youth programs 
        that are mutually beneficial to the Department and civilian 
        communities and complement programs of the Department carried 
        out at its facilities; and
            (B) improving youth programs that enable adolescents to 
        relate to new peer groups when families of members of the Armed 
        Forces are relocated.
    (c) Report.--Not later than June 30, 1997, the Secretary of Defense 
shall submit to Congress a report on the status of any partnerships and 
other initiatives undertaken by the Department as described in 
subsection (b), including recommendations for additional ways to 
improve the youth programs of the Department of Defense and to improve 
such programs so as to benefit communities in the vicinity of military 
installations.
SEC. 1045. QUARTERLY REPORTS REGARDING COPRODUCTION AGREEMENTS.
    (a) Quarterly Reports on Coproduction Agreements.--Section 36(a) of 
the Arms Export Control Act (22 U.S.C. 2776(a)) is amended--
        (1) by striking out ``and'' at the end of paragraph (10);
        (2) by striking out the period at the end of paragraph (11) and 
    inserting in lieu thereof ``; and''; and
        (3) by inserting after paragraph (11) the following new 
    paragraph:
        ``(12) a report on all concluded government-to-government 
    agreements regarding foreign coproduction of defense articles of 
    United States origin and all other concluded agreements involving 
    coproduction or licensed production outside of the United States of 
    defense articles of United States origin (including coproduction 
    memoranda of understanding or agreement) that have not been 
    previously reported under this subsection, which shall include--
            ``(A) the identity of the foreign countries, international 
        organizations, or foreign firms involved;
            ``(B) a description and the estimated value of the articles 
        authorized to be produced, and an estimate of the quantity of 
        the articles authorized to be produced;
            ``(C) a description of any restrictions on third-party 
        transfers of the foreign-manufactured articles; and
            ``(D) if any such agreement does not provide for United 
        States access to and verification of quantities of articles 
        produced overseas and their disposition in the foreign country, 
        a description of alternative measures and controls incorporated 
        in the coproduction or licensing program to ensure compliance 
        with restrictions in the agreement on production quantities and 
        third-party transfers.''.
    (b) Effective Date.--Paragraph (12) of section 36(a) of the Arms 
Export Control Act, as added by subsection (a)(3), does not apply with 
respect to an agreement described in such paragraph entered into before 
the date of the enactment of this Act.
SEC. 1046. REPORT ON WITNESS INTERVIEW PROCEDURES FOR DEPARTMENT OF 
DEFENSE CRIMINAL INVESTIGATIONS.
    (a) Survey of Military Department Policies and Practices.--The 
Comptroller General of the United States shall conduct a survey of the 
policies and practices of the Naval Criminal Investigative Service with 
respect to the manner in which interviews of suspects and witnesses are 
conducted in connection with criminal investigations of allegations of 
contractor fraud. The purpose of the survey shall be to ascertain 
whether or not investigators and agents of the Naval Criminal 
Investigative Service conduct investigations of contractor fraud in 
accordance with generally accepted Federal law enforcement standards 
and applicable law.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Committee on National Security of the House of Representatives and the 
Committee on Armed Services of the Senate a report concerning the 
survey under subsection (a). The report shall specifically address the 
following:
        (1) The extent to which investigators of the Naval Criminal 
    Investigative Service investigators and agents of the Naval 
    Criminal Investigative Service conduct investigations of contractor 
    fraud in accordance with generally accepted Federal law enforcement 
    standards and applicable law.
        (2) The extent to which the interview policies established by 
    Department of Defense directives or Navy regulations are adequate 
    to instruct and guide investigators in the proper conduct of 
    subject and witness interviews.
        (3) The desirability and feasibility of providing for video and 
    audio recording of interviews and, if recording is desirable, the 
    circumstances under which recordings should be made.
        (4) The desirability and feasibility of making such recordings 
    or written transcriptions of interviews, or both, available on 
    demand to the subject or witness interviewed.
        (5) The extent to which existing Department of Defense 
    directives and Navy regulations address the carrying and display of 
    weapons by agents, together with an assessment of whether any 
    change in any such directive or regulation is necessary.
        (6) The extent to which existing Department of Defense 
    directives and Navy regulations provide guidance to agents to 
    ensure that the agents' conduct and demeanor is in accordance with 
    generally accepted Federal law enforcement standards and applicable 
    law.
        (7) Any recommendation for legislation to ensure that 
    investigators and agents of the Naval Criminal Investigative 
    Service use legal and proper tactics during interviews in 
    connection with criminal investigations of allegations of 
    contractor fraud.
SEC. 1047. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED 
FORCES.
    (a) Report Required.--Not later than January 31, 1997, the 
Secretary of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives a report on the military readiness requirements of the 
active and reserve components of the Armed Forces, including specific 
combat units, combat support units, and combat service support units. 
Based on the assessment scenario described in subsection (c), the 
report shall assess such readiness requirements under a tiered 
readiness and response system that categorizes a given unit of the 
Armed Forces according to the likelihood that the unit will be required 
to respond to a military conflict and the time in which the unit will 
be required to respond.
    (b) Preparation of Report.--The Chairman of the Joint Chiefs of 
Staff, together with the other members of the Joint Chiefs of Staff 
specified in section 151(a) of title 10, United States Code, shall 
prepare the report required bysubsection (a). The Chairman of the Joint 
Chiefs of Staff shall consult with the Commander of the Special 
Operations Command in the preparation of the report.
    (c) Assessment Scenario.--The report shall assess readiness 
requirements in a scenario based on the following assumptions:
        (1) The conflict is in a generic theater of operations located 
    anywhere in the world and does not exceed the notional limits for a 
    major regional conflict.
        (2) The forces available for deployment include the forces 
    described in the Bottom-Up Review force structure, including all 
    planned force enhancements.
        (3) Assistance is not available from allies.
    (d) Assessment Elements.--The report shall identify by unit type 
and component, and assess the readiness requirements of, all active and 
reserve component units. Each such unit shall be categorized within one 
of the following classifications:
        (1) Forward-deployed and crisis response forces, or ``Tier I'' 
    forces, that possess limited internal sustainment capability and do 
    not require immediate access to regional air bases or ports or 
    overflight rights, including the following:
            (A) Force units that are routinely deployed forward at sea 
        or on land outside the United States.
            (B) Combat-ready crises response forces that are capable of 
        mobilizing and deploying within 10 days after receipt of 
        orders.
            (C) Forces that are supported by prepositioning equipment 
        afloat or are capable of being inserted into a theater upon the 
        capture of a port or airfield by forcible entry forces.
        (2) Combat-ready follow-on forces, or ``Tier II'' forces, that 
    can be mobilized and deployed to a theater within approximately 60 
    days after receipt of orders.
        (3) Combat-ready conflict resolution forces, or ``Tier III'' 
    forces, that can be mobilized and deployed to a theater within 
    approximately 180 days after receipt of orders.
        (4) All other active and reserve component force units which 
    are not categorized within a classification described in paragraph 
    (1), (2), or (3).
    (e) Additional Information Regarding Certain Units.--With regard to 
each unit that is not categorized within a classification described in 
paragraph (1), (2), or (3) of subsection (d), the report shall 
include--
        (1) a description of the mission and mobilization or deployment 
    schedule (or both) of the unit in connection with the requirements 
    of the assessment scenario and the combat readiness requirements of 
    the Armed Forces; or
        (2) an identification of the unit as excess to the needs of the 
    national military strategy and the reasons therefor.
    (f) Form of Report.--The report under this section shall be 
submitted in unclassified form but may contain a classified annex.

SEC. 1048. REPORT ON NATO ENLARGEMENT.

    (a) Report.--Not later than February 1, 1997, the President shall 
transmit to the Committee on Armed Services and the Committee on 
Foreign Relations of the Senate and the Committee on National Security 
and the Committee on International Relations of the House of 
Representatives a report on the enlargement of the North Atlantic 
Treaty Organization. The report shall contain a comprehensive 
discussion of the following:
        (1) Geopolitical and financial costs and benefits, including 
    financial savings, associated with--
            (A) enlargement of the North Atlantic Treaty Organization;
            (B) further delays in the process of enlargement of the 
        North Atlantic Treaty Organization; and
            (C) a failure to enlarge the North Atlantic Treaty 
        Organization.
        (2) Additional North Atlantic Treaty Organization and United 
    States military expenditures requested by prospective members of 
    the North Atlantic Treaty Organization to facilitate their 
    admission into the North Atlantic Treaty Organization.
        (3) Modifications necessary in the military strategy of the 
    North Atlantic Treaty Organization and force structure required by 
    the inclusion of new members and steps necessary to integrate new 
    members, including the role of nuclear and conventional 
    capabilities, reinforcement, force deployments, prepositioning of 
    equipment, mobility, and headquarter locations.
        (4) The relationship between enlargement of the North Atlantic 
    Treaty Organization and transatlantic stability and security.
        (5) The state of military preparedness and interoperability of 
    Central and Eastern European nations as it relates to the 
    responsibilities of membership of the North Atlantic Treaty 
    Organization and additional security costs or benefits that may 
    accrue to the United States from enlargement of the North Atlantic 
    Treaty Organization.
        (6) The state of democracy and free market development as it 
    affects the preparedness of Central and Eastern European nations 
    for the responsibilities of membership of the North Atlantic Treaty 
    Organization, including civilian control of the military, the rule 
    of law, human rights, and parliamentary oversight.
        (7) The state of relations between prospective members of the 
    North Atlantic Treaty Organization and their neighbors, steps taken 
    by prospective members to reduce tensions, and mechanisms for the 
    peaceful resolution of border disputes.
        (8) The commitment of prospective members of the North Atlantic 
    Treaty Organization to the principles of the North Atlantic Treaty 
    and the security of the North Atlantic area.
        (9) The effect of enlargement of the North Atlantic Treaty 
    Organization on the political, economic, and security conditions of 
    European Partnership for Peace nations not among the first new 
    members of the North Atlantic Treaty Organization.
        (10) The relationship between enlargement of the North Atlantic 
    Treaty Organization and EU enlargement and the costs and benefits 
    of both.
        (11) The relationship between enlargement of the North Atlantic 
    Treaty Organization and treaties relevant to United States and 
    European security, such as the Conventional Armed Forces in Europe 
    Treaty.
        (12) The anticipated impact both of enlargement of the North 
    Atlantic Treaty Organization and further delays of enlargement on 
    Russian foreign and defense policies and the costs and benefits of 
    a security relationship between the North Atlantic Treaty 
    Organization and Russia.
    (b) Interpretation.--Nothing in this section shall be interpreted 
or construed to affect the implementation of the NATO Participation Act 
of 1994 (title II of Public Law 103-447; 22 U.S.C. 1928 note), or any 
other program or activity which facilitates or assists prospective 
members of the North Atlantic Treaty Organization.

         Subtitle E--Management of Armed Forces Retirement Home

SEC. 1051. RETIREMENT HOME BOARDS OF DIRECTORS.

    (a) Additional Term of Office.--Subsection (e) of section 1515 of 
the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 415) is amended 
by adding at the end the following new paragraph:
    ``(3) The Chairman of the Retirement Home Board may appoint a 
member of the Retirement Home Board for a second consecutive term. The 
Chairman of a Local Board may appoint a member of that Local Board for 
a second consecutive term.''.
    (b) Early Expiration of Term.--(1) Subsection (f) of such section 
is amended to read as follows:
    ``(f) Early Expiration of Term.--A member of the Armed Forces or 
Federal civilian employee who is appointed as a member of the 
Retirement Home Board or a Local Board may serve as a board member only 
so long as the member of the Armed Forces or Federal civilian employee 
is assigned to or serving in the duty position that gave rise to the 
appointment as a board member.''.
    (2) The amendment made by this subsection shall not affect the 
staggered terms of members of the Armed Forces Retirement Home Board or 
a Local Board of the Retirement Home under section 1515(f) of such Act, 
as such section is in effect before the date of the enactment of this 
Act.
    (c) Annual Evaluation of Directors.--Section 1517 of such Act (24 
U.S.C. 417) is amended by striking out subsection (f) and inserting in 
lieu thereof the following:
    ``(f) Annual Evaluation of Directors.--The Chairman of the 
Retirement Home Board shall annually evaluate the performance of the 
Directors and shall make such recommendations to the Secretary of 
Defense as the Chairman considers appropriate in light of the 
evaluation.''.

SEC. 1052. ACCEPTANCE OF UNCOMPENSATED SERVICES.

    (a) Authority.--Part A of 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 adding at the end the following new section:
``SEC. 1522. AUTHORITY TO ACCEPT CERTAIN UNCOMPENSATED SERVICES.
    ``(a) Authority To Accept Services.--Subject to subsection (b) and 
notwithstanding section 1342 of title 31, United States Code, the 
Chairman of the Retirement Home Board or the Director of each 
establishment of the Retirement Home may accept from any person 
voluntary personal services or gratuitous services unless the 
acceptance of the voluntary services is disapproved by the Retirement 
Home Board.
    ``(b) Requirements and Limitations.--(1) The Chairman of the 
Retirement Home Board or the Director of the establishment accepting 
the services shall notify the person of the scope of the services 
accepted.
    ``(2) The Chairman or Director shall--
        ``(A) supervise the person providing the services to the same 
    extent as that official would supervise a compensated employee 
    providing similar services; and
        ``(B) ensure that the person is licensed, privileged, has 
    appropriate credentials, or is otherwise qualified under applicable 
    laws or regulations to provide such services.
    ``(3) A person providing services accepted under subsection (a) may 
not--
        ``(A) serve in a policymaking position of the Retirement Home; 
    or
        ``(B) be compensated for the services by the Retirement Home.
    ``(c) Authority To Recruit and Train Persons Providing Services.--
The Chairman of the Retirement Home Board or the Director of an 
establishment of the Retirement Home may recruit and train persons to 
provide services authorized to be accepted under subsection (a).
    ``(d) Status of Persons Providing Services.--(1) Subject to 
paragraph (3), while providing services accepted under subsection (a) 
or receiving training under subsection (c), a person shall be 
considered to be an employee of the Federal Government only for 
purposes of the following provisions of law:
        ``(A) Subchapter I of chapter 81 of title 5, United States Code 
    (relating to compensation for work-related injuries).
        ``(B) Chapter 171 of title 28, United States Code (relating to 
    claims for damages or loss).
    ``(2) A person providing services accepted under subsection (a) 
shall be considered to be an employee of the Federal Government under 
paragraph (1) only with respect to services that are within the scope 
of the services accepted.
    ``(3) For purposes of determining the compensation for work-related 
injuries payable under chapter 81 of title 5,United States Code 
(pursuant to this subsection) to a person providing services accepted 
under subsection (a), the monthly pay of the person for such services 
shall be deemed to be the amount determined by multiplying--
        ``(A) the average monthly number of hours that the person 
    provided the services, by
        ``(B) the minimum wage determined in accordance with section 
    6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
    206(a)(1)).
    ``(e) Reimbursement of Incidental Expenses.--The Chairman of the 
Retirement Board or the Director of the establishment accepting 
services under subsection (a) may provide for reimbursement of a person 
for incidental expenses incurred by the person in providing the 
services accepted under subsection (a). The Chairman or Director shall 
determine which expenses qualify for reimbursement under this 
subsection.''.
    (b) Federal Status of Residents Paid for Part-Time or Intermittent 
Services.--Paragraph (2) of section 1521(b) of the Armed Forces 
Retirement Home Act of 1991 (24 U.S.C. 421(b)) is amended to read as 
follows:
        ``(2) being an employee of the United States for any purpose 
    other than--
            ``(A) subchapter I of chapter 81 of title 5, United States 
        Code (relating to compensation for work-related injuries); and
            ``(B) chapter 171 of title 28, United States Code (relating 
        to claims for damages or loss).''.
SEC. 1053. DISPOSAL OF TRACT OF REAL PROPERTY IN THE DISTRICT OF 
COLUMBIA.
    (a) Disposal Authorized.--Notwithstanding title II the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 481 et 
seq.), title VIII of such Act (40 U.S.C. 531 et seq.), section 501 of 
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411), or 
any other provision of law relating to the management and disposal of 
real property by the United States, the Armed Forces Retirement Home 
Board may convey, by sale or otherwise, all right, title, and interest 
of the United States in a parcel of real property, including 
improvements thereon, consisting of approximately 49 acres located in 
Washington, District of Columbia, east of North Capitol Street, and 
recorded as District Parcel 121/19.
    (b) Manner, Terms, and Conditions of Disposal.--The Armed Forces 
Retirement Home Board may determine--
        (1) the manner for the disposal of the real property under 
    subsection (a); and
        (2) the terms and conditions for the conveyance of that 
    property, including any terms and conditions that the Board 
    considers necessary to protect the interests of the United States.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Armed Forces 
Retirement Home Board. The cost of the survey shall be borne by the 
party or parties to which the property is to be conveyed.
    (d) Congressional Notification.--(1) Before disposing of real 
property under subsection (a), the Armed Forces Retirement Home Board 
shall notify the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives of the 
proposed disposal. The Board may not dispose of the real property until 
the later of--
        (A) the date that is 60 days after the date on which the 
    notification is received by the committees; or
        (B) the date of the next day following the expiration of the 
    first period of 30 days of continuous session of Congress that 
    follows the date on which the notification is received by the 
    committees.
    (2) For the purposes of paragraph (1)--
        (A) continuity of session is broken only by an adjournment of 
    Congress sine die; and
        (B) the days on which either House is not in session because of 
    an adjournment of more than three days to a day certain are 
    excluded in the computation of any period of time in which Congress 
    is in continuous session.

                       Subtitle F--Other Matters

SEC. 1061. POLICY ON PROTECTION OF NATIONAL INFORMATION INFRASTRUCTURE 
AGAINST STRATEGIC ATTACK.
    (a) Report Requirement.--Not later than 180 days after the date of 
the enactment of this Act, the President shall submit to Congress a 
report setting forth a national policy on protecting the national 
information infrastructure against strategic attack.
    (b) Matters To Be Included.--The policy described in the report 
shall include the following:
        (1) Plans to meet essential Government and civilian needs 
    during a national security emergency associated with a strategic 
    attack on elements of the national information infrastructure the 
    functioning of which depend on networked computer systems.
        (2) The identification of information infrastructure functions 
    that must be performed during such an emergency.
        (3) The assignment of responsibilities to Federal departments 
    and agencies, and a description of the roles of Government and 
    industry, relating to indications and warning of, assessment of, 
    response to, and reconstitution after, potential strategic attacks 
    on the elements of the national information infrastructure 
    described under paragraph (1).
    (c) Unresolved Issues.--The report shall also identify--
        (1) matters relating to the national policy described in the 
    report that, as of the submission of the report, are in need of 
    further study and resolution, such as technology and funding 
    shortfalls; and
        (2) legal and regulatory considerations relating to the 
    national policy.
    (d) Update of Earlier Report.--The report shall include an update 
of the report required to be submitted toCongress pursuant to section 
1053 of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 440).
SEC. 1062. INFORMATION SYSTEMS SECURITY PROGRAM.
    (a) Allocation.--Of the amounts appropriated for the Department of 
Defense for the Defense Information Infrastructure for each of fiscal 
years 1999 through 2002, the Secretary of Defense shall allocate to the 
information systems security program (program element 0303140K) amounts 
as follows:
        (1) For fiscal year 1999, 2.5 percent.
        (2) For fiscal year 2000, 3.0 percent.
        (3) For fiscal year 2001, 3.5 percent.
        (4) For fiscal year 2002, 4.0 percent.
    (b) Relationship to Other Amounts.--Amounts allocated under 
subsection (a) are in addition to amounts appropriated to the National 
Security Agency and the Defense Advanced Research Projects Agency for 
development of information security systems, acquisition of information 
security systems, and operation of information security systems.
    (c) Report.--Not later than November 15, 1997, the Secretary of 
Defense shall submit to the congressional defense committees and the 
congressional intelligence committees a report on information security 
activities of the Department of Defense. The report shall describe--
        (1) the objectives of the Secretary with respect to information 
    security and the strategy of the Secretary (including the strategy 
    with respect to funding) during fiscal years 1999 through 2002 to 
    achieve those objectives;
        (2) how the Secretary intends to manage and allocate the funds 
    required by subsection (a) to be allocated to the information 
    systems security program; and
        (3) if the Secretary determines that a funding plan for the 
    information systems security program for fiscal years 1999 through 
    2002 other than that specified in subsection (a) is appropriate, 
    the alternative funding plan proposed by the Secretary.
    (d) Defense Information Infrastructure.--For purposes of this 
section, the Defense Information Infrastructure is the web of 
communications networks, computers, software, databases, applications, 
data security services, and other capabilities that meets the 
information processing and transport needs of Department of Defense 
users.
SEC. 1063. AUTHORITY TO ACCEPT SERVICES FROM FOREIGN GOVERNMENTS AND 
INTERNATIONAL ORGANIZATIONS FOR DEFENSE PURPOSES.
    Section 2608(a) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``and may accept 
from any foreign government or international organization any 
contribution of services made by such foreign government or 
international organization for use by the Department of Defense''.
SEC. 1064. PROHIBITION ON COLLECTION AND RELEASE OF DETAILED SATELLITE 
IMAGERY RELATING TO ISRAEL.
    (a) Collection and Dissemination.--A department or agency of the 
United States may issue a license for the collection or dissemination 
by a non-Federal entity of satellite imagery with respect to Israel 
only if such imagery is no more detailed or precise than satellite 
imagery of Israel that is available from commercial sources.
    (b) Declassification and Release.--A department or agency of the 
United States may declassify or otherwise release satellite imagery 
with respect to Israel only if such imagery is no more detailed or 
precise than satellite imagery of Israel that is available from 
commercial sources.

SEC. 1065. GEORGE C. MARSHALL EUROPEAN CENTER FOR STRATEGIC SECURITY 
              STUDIES.

    (a) Authority To Accept Foreign Gifts and Donations.--(1) The 
Secretary of Defense may, on behalf of the George C. Marshall European 
Center for Strategic Security Studies (in this section referred to as 
the ``Marshall Center''), accept foreign gifts or donations in order to 
defray the costs of, or enhance the operation of, the Marshall Center.
    (2) Funds received by the Secretary under paragraph (1) shall be 
credited to appropriations available for the Department of Defense for 
the Marshall Center. Funds so credited shall be merged with the 
appropriations to which credited and shall be available for the 
Marshall Center for the same purposes and same period as the 
appropriations with which merged.
    (3) The Secretary of Defense shall notify Congress if the total 
amount of money accepted under paragraph (1) exceeds $2,000,000 in any 
fiscal year. Any such notice shall list each of the contributors of 
such amounts and the amount of each contribution in such fiscal year.
    (4) For purposes of this subsection, a foreign gift or donation is 
a gift or donation of funds, materials (including research materials), 
property, or services (including lecture services and faculty services) 
from a foreign government, a foundation or other charitable 
organization in a foreign country, or an individual in a foreign 
country.
    (b) Marshall Center Participation By Foreign Nations.--(1) 
Notwithstanding any other provision of law, the Secretary of Defense 
may authorize participation by a European or Eurasian nation in 
Marshall Center programs if the Secretary determines, after 
consultation with the Secretary of State, that such participation is in 
the national interest of the United States.
    (2) Not later than January 31 of each year, the Secretary of 
Defense shall submit to Congress a report setting forth the names of 
the foreign nations permitted to participate in programs of the 
Marshall Center during the preceding year under paragraph (1). Each 
such report shall be prepared by the Secretary with the assistance of 
the Director of the Marshall Center.
    (c) Exemptions for Members of Marshall Center Board of Visitors 
From Certain Requirements.--(1) In the case of any person invited to 
serve without compensation on the Marshall Center Board of Visitors, 
the Secretary of Defense may waive any requirement for financial 
disclosure thatwould otherwise apply to that person solely by reason of 
service on such Board.
    (2) Notwithstanding any other provision of law, a member of the 
Marshall Center Board of Visitors may not be required to register as an 
agent of a foreign government solely by reason of service as a member 
of the Board.
    (3) Notwithstanding section 219 of title 18, United States Code, a 
non-United States citizen may serve on the Marshall Center Board of 
Visitors even though registered as a foreign agent.
SEC. 1066. AUTHORITY TO AWARD TO CIVILIAN PARTICIPANTS IN THE DEFENSE 
OF PEARL HARBOR THE CONGRESSIONAL MEDAL PREVIOUSLY AUTHORIZED ONLY FOR 
MILITARY PARTICIPANTS IN THE DEFENSE OF PEARL HARBOR.
    (a) Authority.--The Speaker of the House of Representatives and the 
President pro tempore of the Senate are authorized jointly to present, 
on behalf of Congress, a bronze medal provided for under section 1492 
of the National Defense Authorization Act for Fiscal Year 1991 (Public 
Law 101-510; 104 Stat. 1721) to any person who meets the eligibility 
requirements set forth in subsection (d) of that section other than the 
requirement for membership in the Armed Forces, as certified under 
subsection (e) of that section or under subsection (b) of this section.
    (b) Certification.--The Secretary of Defense shall, not later than 
12 months after the date of the enactment of this Act, certify to the 
Speaker of the House of Representatives and the President pro tempore 
of the Senate the names of persons who are eligible for award of the 
medal under this Act and have not previously been certified under 
section 1492(e) of the National Defense Authorization Act for Fiscal 
Year 1991.
    (c) Applications.--Subsections (d)(2) and (f) of section 1492 of 
the National Defense Authorization Act for Fiscal Year 1991 shall apply 
in the administration of this section.
    (d) Additional Striking Authority.--The Secretary of the Treasury 
shall strike such additional medals as may be necessary for 
presentation under the authority of subsection (a).
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated such sum as may be necessary to carry out this section.
    (f) Retroactive Effective Date.--The authority under subsection (a) 
shall be effective as of November 5, 1990.
SEC. 1067. ASSIMILATIVE CRIMES AUTHORITY FOR TRAFFIC OFFENSES ON 
MILITARY INSTALLATIONS.
    Section 4 of the Act of June 1, 1948 (40 U.S.C. 318c), is amended--
        (1) by striking out ``Whoever shall violate'' and inserting in 
    lieu thereof ``(a) Except as provided in subsection (b), whoever 
    violates'';
        (2) by inserting ``than'' after ``not more''; and
        (3) by adding at the end the following:
    ``(b)(1) Whoever violates any military traffic regulation shall be 
fined an amount not to exceed the amount of the maximum fine for a like 
or similar offense under the criminal or civil law of the State, 
territory, possession, or district where the military installation in 
which the violation occurred is located, or imprisoned for not more 
than 30 days, or both.
    ``(2) For purposes of this subsection, the term `military traffic 
regulation' means a rule or regulation for the control of vehicular or 
pedestrian traffic on military installations that is promulgated by the 
Secretary of Defense, or the designee of the Secretary, under the 
authority delegated pursuant to section 2.''.

SEC. 1068. UNIFORM CODE OF MILITARY JUSTICE AMENDMENTS.

    (a) Technical Amendment Regarding Forfeitures During Confinement 
Adjudged by a Court-martial.--(1) Section 858b(a)(1) of title 10, 
United States Code (article 58b(a)(1) of the Uniform Code of Military 
Justice), is amended--
        (A) in the first sentence, by inserting ``(if adjudged by a 
    general court-martial)'' after ``all pay and''; and
        (B) in the third sentence, by striking out ``two-thirds of all 
    pay and allowances'' and inserting in lieu thereof ``two-thirds of 
    all pay''.
    (2) The amendments made by paragraph (1) shall take effect as of 
April 1, 1996, and shall apply to any case in which a sentence is 
adjudged by a court-martial on or after that date.
    (b)  Excepted Service Appointments to Certain Nonattorney Positions 
of the United States Court of Appeals for the Armed Forces.--(1) 
Subsection (c) of section 943 of title 10, United States Code (article 
143(c) of the Uniform Code of Military Justice) is amended in paragraph 
(1) by inserting after the first sentence the following: ``A position 
of employment under the Court that is provided primarily for the 
service of one judge of the court, reports directly to the judge, and 
is a position of a confidential character is excepted from the 
competitive service.''.
    (2) The caption for such subsection is amended by striking out 
``attorney'' and inserting in lieu thereof ``certain''.
    (c) Repeal of 13-Year Special Limit on Term of Transitional Judge 
of United States Court of Appeals for the Armed Forces.--(1) Subsection 
(d)(2) of section 1301 of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1575; 10 
U.S.C. 942 note) is amended by striking out ``to the judges who are 
first appointed to the two new positions of the court created as of 
October 1, 1990--'' and all that follows and inserting in lieu thereof 
``to the judge who is first appointed to one of the two new positions 
of the court created as of October 1, 1990, as designated by the 
President at the time of appointment, the anniversary referred to in 
subparagraph (A) of that paragraph shall be treated as being the 
seventh anniversary and the number of years referred to in subparagraph 
(B) of that paragraph shall be treated as being seven.''.
    (2) Subsection (e)(1) of such section is amended by striking out 
``each judge'' and inserting in lieu thereof ``a judge''.

SEC. 1069. PUNISHMENT OF INTERSTATE STALKING.

    (a) In General.--Chapter 110A of title 18, United States Code, is 
amended by inserting after section 2261 the following new section:

``Sec. 2261A. Interstate stalking

    ``Whoever travels across a State line or within the special 
maritime and territorial jurisdiction of the United States with the 
intent to injure or harass another person, and in the course of, or as 
a result of, such travel places that person in reasonable fear of the 
death of, or serious bodily injury (as defined in section 1365(g)(3) of 
this title) to, that person or a member of that person's immediate 
family (as defined in section 115 of this title) shall be punished as 
provided in section 2261 of this title.''.
    (b) Conforming Amendments.--Title 18, United States Code, is 
amended as follows:
        (1) Section 2261(b) is amended by inserting ``or section 
    2261A'' after ``this section''.
        (2) Sections 2261(b) and 2262(b) are each amended by striking 
    ``offender's spouse or intimate partner'' each place it appears and 
    inserting ``victim''.
        (3) The chapter heading for chapter 110A is amended by 
    inserting ``AND STALKING'' after ``VIOLENCE''.
        (4) The item relating to chapter 110A in the table of chapters 
    at the beginning of part I is amended to read as follows:

``110A.    Domestic violence and stalking........................2261''.

    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 110A of such title is amended by inserting after the item 
relating to section 2261 the following new item:
``2261A. Interstate stalking.''.
SEC. 1070. PARTICIPATION OF MEMBERS, DEPENDENTS, AND OTHER PERSONS IN 
CRIME PREVENTION EFFORTS AT INSTALLATIONS.
    (a) Crime Prevention Plan.--The Secretary of Defense shall prepare 
and implement an incentive-based plan to encourage members of the Armed 
Forces, dependents of members, civilian employees of the Department of 
Defense, and employees of defense contractors performing work at 
military installations to report to an appropriate military law 
enforcement agency any crime or criminal activity that the person 
reasonably believes occurred on a military installation or involves a 
member of the Armed Forces.
    (b) Incentives to Report Criminal Activity.--The Secretary of 
Defense shall include in the plan developed under subsection (a) 
incentives for members and other persons described in such subsection 
to provide information to appropriate military law enforcement agencies 
regarding any crime or criminal activity occurring on a military 
installation or involving a member of the Armed Forces.
    (c) Report Regarding Implementation.--Not later than February 1, 
1997, the Secretary shall submit to Congress a report describing the 
plan being developed under subsection (a).

SEC. 1071. DISPLAY OF STATE FLAGS AT INSTALLATIONS AND FACILITIES OF 
              THE DEPARTMENT OF DEFENSE.

    (a) In General.--Subchapter I of chapter 134 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2249b. Display of State flags: prohibition on use of funds to 
      arbitrarily exclude flag; position and manner of display
    ``(a) Prohibition on Use of Funds.--Funds available to the 
Department of Defense may not be used to prescribe or enforce any rule 
that arbitrarily excludes the official flag of any State, territory, or 
possession of the United States from any display of the flags of the 
States, territories, and possessions of the United States at an 
official ceremony of the Department of Defense.
    ``(b) Position and Manner of Display.--The display of an official 
flag of a State, territory, or possession of the United States at an 
installation or other facility of the Department shall be governed by 
the provisions of section 3 of the Joint Resolution of June 22, 1942 
(56 Stat. 378, chapter 435; 36 U.S.C. 175), and any modification of 
such provisions under section 8 of that Joint Resolution (36 U.S.C. 
178).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter I of such chapter is amended by adding at the end the following 
new item:

``2249b. Display of State flags: prohibition on use of funds to 
          arbitrarily exclude flag; position and manner of display.''.

SEC. 1072. TREATMENT OF EXCESS OPERATIONAL SUPPORT AIRLIFT AIRCRAFT.

    (a) Reutilization or Sale Before Transfer.--An operational support 
airlift aircraft that is excess to the requirements of the United 
States shall be placed in an inactive status and stored at Davis-
Monthan Air Force Base, Arizona, only upon the determination of the 
Secretary of Defense that all reasonable efforts for the reutilization 
of the aircraft by, or sale of the aircraft to, Federal agencies or 
other persons have been completed. The Secretary shall ensure that 
attempts to reutilize or sell the entire aircraft are given precedence 
over any reutilization or sale of individual parts or components of the 
aircraft.
    (b) Operational Support Airlift Aircraft Defined.--In this section, 
the term ``operational support airlift aircraft'' has the meaning given 
such term in section 1086(f) of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 458).

SEC. 1073. CORRECTION TO STATUTORY REFERENCES TO CERTAIN DEPARTMENT OF 
              DEFENSE ORGANIZATIONS.

    (a) North American Aerospace Defense Command.--Section 162(a) of 
title 10, United States Code, is amended by striking out ``North 
American Air Defense Command'' in paragraphs (1), (2), and (3) and 
inserting in lieu thereof ``North American Aerospace Defense Command''.
    (b) Former Naval Records and History Office and Fund.--(1) Section 
7222 of title 10, United States Code, is amended by striking out 
``Office of Naval Records andHistory'' each place it appears in 
subsections (a) and (c) and inserting in lieu thereof ``Naval 
Historical Center''.
    (2)(A) The heading of such section is amended to read as follows:

``Sec. 7222. Naval Historical Center Fund''.

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 631 of title 10, United States Code, is 
amended to read as follows:

``7222. Naval Historical Center Fund.''.

    (3) Section 2055(g) of the Internal Revenue Code of 1986 is amended 
by striking out paragraph (4) and inserting in lieu thereof the 
following:

            ``(4) For treatment of gifts and bequests for the benefit of 
        the Naval Historical Center as gifts or bequests to or for the 
        use of the United States, see section 7222 of title 10, United 
        States Code.''.

    (c) Defense Distribution Center, Anniston.--The Corporation for the 
Promotion of Rifle Practice and Firearms Safety Act (title XVI of 
Public Law 104-106; 110 Stat. 515; 36 U.S.C. 5501 et seq.) is amended 
by striking out ``Anniston Army Depot'' each place it appears in the 
following provisions and inserting in lieu thereof ``Defense 
Distribution Depot, Anniston'':
        (1) Section 1615(a)(3) (36 U.S.C. 5505(a)(3)).
        (2) Section 1616(b) (36 U.S.C. 5506(b)).
        (3) Section 1619(a)(1) (36 U.S.C. 5509(a)(1)).
    (d) Chemical Demilitarization Citizens Advisory Commissions.--
Section 172 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 106 Stat. 2341; 50 U.S.C. 1521 note) is 
amended by striking out ``Assistant Secretary of the Army 
(Installations, Logistics, and Environment)'' in subsections (b) and 
(f) and inserting in lieu thereof ``Assistant Secretary of the Army 
(Research, Development and Acquisition)''.
    (e) Defense Advanced Research Projects Agency.--(1) Each of the 
following provisions of law is amended by inserting ``Defense'' before 
``Advanced Research Projects Agency'' each place it appears:
        (A) Section 5316 of title 5, United States Code.
        (B) Subsections (b), (f), and (i) of section 2371 of title 10, 
    United States Code.
        (C) Section 822(c)(1)(D) of Public Law 101-510 (42 U.S.C. 
    6686).
        (D) Section 845(a) of Public Law 103-160 (10 U.S.C. 2371 note).
        (E) Section 243(a) of Public Law 103-160 (10 U.S.C. 2431 note).
        (F) Sections 1352(c)(2), 1353, and 1354(a) of Public Law 103-
    160 (10 U.S.C. 2501 note).
    (2) The section headings of each of the following sections are 
amended by inserting ``defense'' before ``advanced'':
        (A) Section 845 of Public Law 103-160 (10 U.S.C. 2371 note).
        (B) Sections 1353 and 1354 of Public Law 103-160 (10 U.S.C. 
    2501 note).
    (3) The heading for subsection (a) of section 1354 of Public Law 
103-160 (10 U.S.C. 2501 note) is amended by striking out ``ARPA'' and 
inserting in lieu thereof ``DARPA''.

SEC. 1074. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Miscellaneous Amendments to Title 10, United States Code.--
Title 10, United States Code, is amended as follows:
        (1) Section 129(a) is amended by striking out ``the date of the 
    enactment of the National Defense Authorization Act for Fiscal Year 
    1996'' and inserting in lieu thereof ``February 10, 1996,''.
        (2) Section 401 is amended--
            (A) in subsection (a)(4), by striking out ``Armed Forces'' 
        both places it appears and inserting in lieu thereof ``armed 
        forces''; and
            (B) in subsection (e), by inserting ``any of the 
        following'' after ``means''.
        (3) Section 528(b) is amended by striking out ``(1)'' after 
    ``(b)'' and inserting ``(1)'' before ``The limitation''.
        (4) Section 1078a(a) is amended by striking out ``Beginning on 
    October 1, 1994, the'' and inserting in lieu thereof ``The''.
        (5) Section 1161(b)(2) is amended by striking out ``section 
    1178'' and inserting in lieu thereof ``section 1167''.
        (6) Section 1167 is amended by striking out ``person'' and 
    inserting in lieu thereof ``member''.
        (7) The table of sections at the beginning of chapter 81 is 
    amended by striking out ``Sec.'' in the item relating to section 
    1599a.
        (8) Section 1588(d)(1)(C) is amended by striking out ``Section 
    522a'' and inserting in lieu thereof ``Section 552a''.
        (9) Chapter 87 is amended--
            (A) in section 1723(a), by striking out the second 
        sentence;
            (B) in section 1724--
                (i) in subsection (a), by striking out ``small purchase 
            threshold'' and inserting in lieu thereof ``simplified 
            acquisition threshold''; and
                (ii) in subsections (a) and (b), by striking out ``, 
            beginning on October 1, 1993,'';
            (C) in section 1733(a), by striking out ``On and after 
        October 1, 1993, a'' and inserting in lieu thereof ``A''; and
            (D) in section 1734--
                (i) in subsection (a)(1), by striking out ``, on and 
            after October 1, 1993,''; and
                (ii) in subsection (b)(1)(A), by striking out ``, on 
            and after October 1, 1991,''.
        (10) Section 2216, as added by section 371 of the National 
    Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
    107 Stat. 277), is redesignated as section 2216a, and the item 
    relating to that section in thetable of sections at the beginning 
of chapter 131 is revised so as to reflect such redesignation.
        (11) Section 2305(b)(6) is amended--
            (A) in subparagraph (B), by striking out ``of this 
        section'' and ``of this paragraph'';
            (B) in subparagraph (C), by striking out ``this 
        subsection'' and inserting in lieu thereof ``subparagraph 
        (A)''; and
            (C) in subparagraph (D), by striking out ``pursuant to this 
        subsection'' and inserting in lieu thereof ``under subparagraph 
        (A)''.
        (12) Section 2306a(h)(3) is amended by inserting ``(41 U.S.C. 
    403(12))'' before the period at the end.
        (13) Section 2323a(a) is amended by striking out ``section 1207 
    of the National Defense Authorization Act for Fiscal Year 1987 (10 
    U.S.C. 2301 note)'' and inserting in lieu thereof ``section 2323 of 
    this title''.
        (14) Section 2534(c)(4) is amended by striking out ``the date 
    occurring two years after the date of the enactment of the National 
    Defense Authorization Act for Fiscal Year 1996'' and inserting in 
    lieu thereof ``February 10, 1998''.
        (15) The table of sections at the beginning of chapter 155 is 
    amended by striking out the item relating to section 2609.
        (16) Section 2610(e) is amended by striking out ``two years 
    after the date of the enactment of the National Defense 
    Authorization Act for Fiscal Year 1996'' and inserting in lieu 
    thereof ``on February 10, 1998''.
        (17) Sections 2824(c) and 2826(i)(1) are amended by striking 
    out ``the date of the enactment of the National Defense 
    Authorization Act for Fiscal Year 1996'' and inserting in lieu 
    thereof ``February 10, 1996''.
        (18) Section 3036(d)(3) is amended by striking out ``For 
    purposes of this subsection,'' and inserting in lieu thereof ``In 
    this subsection,''.
        (19) The table of sections at the beginning of chapter 641 is 
    amended by striking out the item relating to section 7434.
        (20) Section 7863 is amended by inserting ``were'' in the first 
    sentence after ``the stores''.
        (21) Section 10542(b)(21) is amended by striking out ``261'' 
    and inserting in lieu thereof ``12001''.
        (22) Section 12205(a) is amended by striking out ``After 
    September 30, 1995, no person'' and inserting in lieu thereof ``No 
    person''.
    (b) Amendments to Public Law 104-106.--The National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
186 et seq.) is amended as follows:
        (1) Section 561(d)(1) (110 Stat. 322) is amended by inserting 
    ``of such title'' after ``Section 1405(c)''.
        (2) Section 1092(b)(2) (110 Stat. 460) is amended by striking 
    out the period at the end and inserting in lieu thereof ``; and''.
        (3) Section 4301(a)(1) (110 Stat. 656) is amended by inserting 
    ``of subsection (a)'' after ``in paragraph (2)''.
        (4) Section 5601 (110 Stat. 699) is amended--
            (A) in subsection (a), by inserting ``of title 10, United 
        States Code,'' before ``is amended''; and
            (B) in subsection (c), by striking out ``use of equipment 
        or services if,'' in the second quoted matter therein and 
        inserting in lieu thereof ``use of the equipment or services''.
        (5) Section 3403 (110 Stat. 631) is amended by striking out 
    ``Act of Fiscal'' and inserting in lieu thereof ``Act for Fiscal''.
        (6) Section 4202(c)(1) (110 Stat. 653) is amended, effective as 
    of February 10, 1996, by striking out ``purchases of''' in the 
    first quoted matter therein and inserting in lieu thereof 
    ``contracts for'''.
        (7) Section 5607(c) (110 Stat. 701) is amended, effective as of 
    February 10, 1996--
            (A) by striking out ``303B(h)'' and by inserting in lieu 
        thereof ``303B(k)''; and
            (B) by striking out ``253b(h)'' and by inserting in lieu 
        thereof ``253b(k)''.
    (c) Provisions Executed Before Enactment of Public Law 104-106.--
        (1) Section 533(b) of the National Defense Authorization Act 
    for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 315) shall 
    apply as if enacted as of December 31, 1995.
        (2) The authority provided under section 942(f) of title 10, 
    United States Code, shall be effective as if section 1142 of the 
    National Defense Authorization Act for Fiscal Year 1996 (Public Law 
    104-106; 110 Stat. 467) had been enacted on September 29, 1995.
    (d) Amendments to Other Acts.--
        (1) The last section of the Office of Federal Procurement 
    Policy Act (41 U.S.C. 434), as added by section 5202 of Public Law 
    104-106 (110 Stat. 690), is redesignated as section 38, and the 
    item appearing after section 34 in the table of contents in the 
    first section of that Act is transferred to the end of such table 
    of contents and revised so as to reflect such redesignation.
        (2) Section 1412(g)(2) of the Department of Defense 
    Authorization Act, 1986 (50 U.S.C. 1521(g)(2)), is amended--
            (A) in the matter preceding subparagraph (A), by striking 
        out ``shall contain--'' and inserting in lieu thereof ``shall 
        include the following:'';
            (B) in subparagraph (A)--
                (i) by striking out ``a'' before ``site-by-site'' and 
            inserting in lieu thereof ``A''; and
                (ii) by striking out the semicolon at the end and 
            inserting in lieu thereof a period; and
            (C) in subparagraphs (B) and (C), by striking out ``an'' at 
        the beginning of the subparagraph and inserting in lieu thereof 
        ``An''.
        (3) Section 3131 of Public Law 99-570 (19 U.S.C. 2081; 100 
    Stat. 3207-91) is amended in clause (v) of subsection (a)(1)(A) by 
    striking out ``and (c)'' both places it appears.
    (e) Coordination With Other Amendments.--For purposes of applying 
amendments made by provisions of this Act other than provisions of this 
section, this section shall be treated as having been enacted 
immediately before the other provisions of this Act.
    (f) Amendments to the Office of Federal Procurement Policy Act.--
The Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is 
amended as follows:
        (1) Section 6(f) (41 U.S.C. 405(f)) is amended by striking out 
    ``the policies set forth in section 2 or''.
        (2) Section 15(a) (41 U.S.C. 413(a)) is amended by striking out 
    the second sentence.
        (3) Section 25 (41 U.S.C. 421) is amended--
            (A) in subsection (c)--
                (i) in paragraph (3), by striking out ``the policies 
            set forth in section 2 of this Act or''; and
                (ii) in paragraph (5), by striking out ``or the 
            policies set forth in section 2 of this Act''; and
            (B) in subsection (e), by striking out ``the policies of 
        section 2 and''.
SEC. 1075. MODIFICATION TO THIRD-PARTY LIABILITY TO UNITED STATES FOR 
TORTIOUS INFLICTION OF INJURY OR DISEASE ON MEMBERS OF THE UNIFORMED 
SERVICES.
    (a) Recovery of Pay and Allowances.--The first section of Public 
Law 87-693 (42 U.S.C. 2651) is amended--
        (1) in the first sentence of subsection (a)--
            (A) by inserting ``or pay for'' after ``required by law to 
        furnish''; and
            (B) by striking out ``or to be furnished'' both places it 
        appears and inserting in lieu thereof ``, to be furnished, paid 
        for, or to be paid for'';
        (2) by redesignating subsections (b) and (c) as subsections (d) 
    and (e), respectively;
        (3) by inserting after subsection (a), the following new 
    subsections:
    ``(b) If a member of the uniformed services is injured, or 
contracts a disease, under circumstances creating a tort liability upon 
a third person (other than or in addition to the United States and 
except employers of seamen referred to in subsection (a)) for damages 
for such injury or disease and the member is unable to perform the 
member's regular military duties as a result of the injury or disease, 
the United States shall have a right (independent of the rights of the 
member) to recover from the third person or an insurer of the third 
person, or both, the amount equal to the total amount of the pay that 
accrues and is to accrue to the member for the period for which the 
member is unable to perform such duties as a result of the injury or 
disease and is not assigned to perform other military duties.
    ``(c)(1) If, pursuant to the laws of a State that are applicable in 
a case of a member of the uniformed services who is injured or 
contracts a disease as a result of tortious conduct of a third person, 
there is in effect for such a case (as a substitute or alternative for 
compensation for damages through tort liability) a system of 
compensation or reimbursement for expenses of hospital, medical, 
surgical, or dental care and treatment or for lost pay pursuant to a 
policy of insurance, contract, medical or hospital service agreement, 
or similar arrangement, the United States shall be deemed to be a 
third-party beneficiary of such a policy, contract, agreement, or 
arrangement.
    ``(2) For the purposes of paragraph (1)--
        ``(A) the expenses incurred or to be incurred by the United 
    States for care and treatment for an injured or diseased member as 
    described in subsection (a) shall be deemed to have been incurred 
    by the member;
        ``(B) the cost to the United States of the pay of the member as 
    described in subsection (b) shall be deemed to have been pay lost 
    by the member as a result of the injury or disease; and
        ``(C) the United States shall be subrogated to any right or 
    claim that the injured or diseased member or the member's guardian, 
    personal representative, estate, dependents, or survivors have 
    under a policy, contract, agreement, or arrangement referred to in 
    paragraph (1) to the extent of the reasonable value of the care and 
    treatment and the total amount of the pay deemed lost under 
    subparagraph (B).'';
        (4) in subsection (d), as redesignated by paragraph (2), by 
    inserting ``or paid for'' after ``treatment is furnished''; and
        (5) by adding at the end the following:
    ``(f)(1) Any amount recovered under this section for medical care 
and related services furnished by a military medical treatment facility 
or similar military activity shall be credited to the appropriation or 
appropriations supporting the operation of that facility or activity, 
as determined under regulations prescribed by the Secretary of Defense.
    ``(2) Any amount recovered under this section for the cost to the 
United States of pay of an injured or diseased member of the uniformed 
services shall be credited to the appropriation that supports the 
operation of the command, activity, or other unit to which the member 
was assigned at the time of the injury or illness, as determined under 
regulations prescribed by the Secretary concerned.
    ``(g) For the purposes of this section:
        ``(1) The term `uniformed services' has the meaning given such 
    term in section 101 of title 10, United States Code.
        ``(2) The term `tortious conduct' includes any tortious 
    omission.
        ``(3) The term `pay', with respect to a member of the uniformed 
    services, means basic pay, special pay, and incentive pay that the 
    member is authorized to receive undertitle 37, United States Code, 
or any other law providing pay for service in the uniformed services.
        ``(4) The term `Secretary concerned' means--
            ``(A) the Secretary of Defense, with respect to the Army, 
        the Navy, the Air Force, the Marine Corps, and the Coast Guard 
        (when it is operating as a service in the Navy);
            ``(B) the Secretary of Transportation, with respect to the 
        Coast Guard when it is not operating as a service in the Navy;
            ``(C) the Secretary of Health and Human Services, with 
        respect to the commissioned corps of the Public Health Service; 
        and
            ``(D) the Secretary of Commerce, with respect to the 
        commissioned corps of the National Oceanic and Atmospheric 
        Administration.''.
    (b) Conforming Amendments.--The first section of Public Law 87-693 
(42 U.S.C. 2651) is amended--
        (1) in the first sentence of subsection (a)--
            (A) by inserting ``(independent of the rights of the 
        injured or diseased person)'' after ``a right to recover''; and
            (B) by inserting ``, or that person's insurer,'' after 
        ``from said third person'';
        (2) in subsection (d), as redesignated by subsection (a)(2)--
            (A) by striking out ``such right,'' and inserting in lieu 
        thereof ``a right under subsections (a), (b), and (c)''; and
            (B) by inserting ``or the insurance carrier or other entity 
        responsible for the payment or reimbursement of medical 
        expenses or lost pay'' after ``the third person who is liable 
        for the injury or disease'' each place it appears.
    (c) Effective Date.--The authority to collect pursuant to the 
amendments made by this section shall apply to expenses described in 
the first section of Public Law 87-693 (as amended by this section) 
that are incurred, or are to be incurred, by the United States on or 
after the date of the enactment of this Act, whether the event from 
which the claim arises occurs before, on, or after that date.
SEC. 1076. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.
    (a) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of the Army shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report assessing the 
implementation and success of the establishment of site-specific 
Integrated Product and Process Teams as a management tool for the 
Chemical Stockpile Emergency Preparedness Program.
    (b) Contingent Mandated Reforms.--If at the end of the 120-day 
period beginning on the date of the enactment of this Act the Secretary 
of the Army and the Director of the Federal Emergency Management Agency 
have been unsuccessful in implementing a site-specific Integrated 
Product and Process Team with each of the affected States, the 
Secretary of the Army shall--
        (1) assume full control and responsibility for the Chemical 
    Stockpile Emergency Preparedness Program (eliminating the role of 
    the Director of the Federal Emergency Management Agency as joint 
    manager of the program);
        (2) establish programmatic agreement with each of the affected 
    States regarding program requirements, implementation schedules, 
    training and exercise requirements, and funding (to include direct 
    grants for program support);
        (3) clearly define the goals of the program; and
        (4) establish fiscal constraints for the program.
SEC. 1077. EXEMPTION FROM REQUIREMENTS APPLICABLE TO SAVINGS 
ASSOCIATIONS FOR CERTAIN SAVINGS INSTITUTIONS SERVING MILITARY 
PERSONNEL.
    Section 10(m)(3)(F) of the Home Owners' Loan Act (12 U.S.C. 
1467a(m)(3)(F)) is amended--
        (1) in the subparagraph caption, by striking out ``association 
    serving transient'' and inserting in lieu thereof ``associations 
    serving certain'';
        (2) by striking out ``company if--'' and all that follows 
    through ``90 percent'' and inserting in lieu thereof ``company if 
    at least 90 percent''; and
        (3) by striking out ``officers'' both places it appears and 
    inserting in lieu thereof ``members''.
SEC. 1078. IMPROVEMENTS TO NATIONAL SECURITY EDUCATION PROGRAM.
    (a) Temporary Requirement Relating to Employment.--Title VII of the 
Department of Defense Appropriations Act, 1996 (Public Law 104-61; 109 
Stat. 650), is amended in the paragraph under the heading ``National 
Security Education Trust Fund'' by striking out the proviso.
    (b) General Program Requirements.--(1) Subparagraph (A) of 
subsection (a)(1) of section 802 of the David L. Boren National 
Security Education Act of 1991 (50 U.S.C. 1902) is amended to read as 
follows:
            ``(A) awarding scholarships to undergraduate students who--
                ``(i) are United States citizens in order to enable 
            such students to study, for at least one academic semester 
            or equivalent term, in foreign countries that are critical 
            countries (as determined under section 803(d)(4)(A)) in 
            those languages and study areas where deficiencies exist 
            (as identified in the assessments undertaken pursuant to 
            section 806(d)); and
                ``(ii) pursuant to subsection (b)(2)(A), enter into an 
            agreement to work in a national security position or work 
            in the field of higher education in the area of study for 
            which the scholarship was awarded;''; and
    (2) Subparagraph (B) of that subsection is amended--
        (A) in clause (i), by inserting ``relating to the national 
    security interests of the United States'' after ``international 
    fields''; and
        (B) in clause (ii)--
            (i) by striking out ``subsection (b)(2)'' and inserting in 
        lieu thereof ``subsection (b)(2)(B)''; and
            (ii) by striking out ``work for an agency or office of the 
        Federal Government or in'' and inserting in lieu thereof ``work 
        in a national security position or work in''.
    (c) Service Agreement.--(1) Subsection (b) of that section is 
amended in the matter preceding paragraph (1) by striking out ``, or of 
scholarships'' and all that follows through ``12 months or more,'' and 
inserting in lieu thereof ``or any scholarship''.
    (2) Paragraph (2) of that subsection is amended to read as follows:
        ``(2) will--
            ``(A) not later than eight years after such recipient's 
        completion of the study for which scholarship assistance was 
        provided under the program, and in accordance with regulations 
        issued by the Secretary--
                ``(i) work in a national security position for a period 
            specified by the Secretary, which period shall be no longer 
            than the period for which scholarship assistance was 
            provided; or
                ``(ii) if the recipient demonstrates to the Secretary 
            (in accordance with such regulations) that no national 
            security position is available, work in the field of higher 
            education in a discipline relating to the foreign country, 
            foreign language, area study, or international field of 
            study for which the scholarship was awarded, for a period 
            specified by the Secretary, which period shall be 
            determined in accordance with clause (i); or
            ``(B) upon completion of such recipient's education under 
        the program, and in accordance with such regulations--
                ``(i) work in a national security position for a period 
            specified by the Secretary, which period shall be not less 
            than one and not more than three times the period for which 
            the fellowship assistance was provided; or
                ``(ii) if the recipient demonstrates to the Secretary 
            (in accordance with such regulations) that no national 
            security position is available upon the completion of the 
            degree, work in the field of higher education in a 
            discipline relating to the foreign country, foreign 
            language, area study, or international field of study for 
            which the fellowship was awarded, for a period specified by 
            the Secretary, which period shall be established in 
            accordance with clause (i); and''.
    (d) Evaluation of Progress in Language Skills.--Such section is 
further amended--
        (1) by redesignating subsections (c), (d), and (e) as 
    subsections (d), (e), and (f), respectively; and
        (2) by inserting after subsection (b) the following new 
    subsection (c):
    ``(c) Evaluation of Progress in Language Skills.--The Secretary 
shall, through the National Security Education Program office, 
administer a test of the foreign language skills of each recipient of a 
scholarship or fellowship under this title before the commencement of 
the study or education for which the scholarship or fellowship is 
awarded and after the completion of such study or education. The 
purpose of these tests is to evaluate the progress made by recipients 
of scholarships and fellowships in developing foreign language skills 
as a result of assistance under this title.''.
    (e) Functions of the National Security Education Board.--Section 
803(d) of that Act (50 U.S.C. 1903(d)) is amended--
        (1) in paragraph (1), by inserting ``, including an order of 
    priority in such awards that favors individuals expressing an 
    interest in national security issues or pursuing a career in a 
    national security position'' before the period;
        (2) in paragraph (4)--
            (A) in the matter preceding subparagraph (A), by striking 
        out ``Make recommendations'' and inserting in lieu thereof 
        ``After taking into account the annual analyses of trends in 
        language, international, and area studies under section 
        806(b)(1), make recommendations'';
            (B) in subparagraph (A), by inserting ``and countries which 
        are of importance to the national security interests of the 
        United States'' after ``are studying''; and
            (C) in subparagraph (B), by inserting ``relating to the 
        national security interests of the United States'' after 
        ``section 802(a)(1)(B)'';
        (3) by redesignating paragraph (5) as paragraph (8); and
        (4) by inserting after paragraph (4) the following new 
    paragraphs:
        ``(5) Encourage applications for fellowships under this title 
    from graduate students having an educational background in any 
    academic discipline, particularly in the areas of science or 
    technology.
        ``(6) Provide the Secretary biennially with a list of 
    scholarship recipients and fellowship recipients, including an 
    assessment of their foreign area and language skills, who are 
    available to work in a national security position.
        ``(7) Not later than 30 days after a scholarship or fellowship 
    recipient completes the study or education for which assistance was 
    provided under the program, provide the Secretary with a report 
    fully describing the foreign area and language skills obtained by 
    the recipient as a result of the assistance.''.
    (f) National Security Position Defined.--(1) Section 808 of that 
Act (50 U.S.C. 1908) is amended by adding at the end the following new 
paragraph:
        ``(4) The term `national security position' means a position--
            ``(A) having national security responsibilities in a agency 
        or office of the Federal Government that has national security 
        responsibilities, as determined under section 802(g); and
            ``(B) in which the individual in such position makes their 
        foreign language skills available to such agency or office.''.
    (2) Section 802 of that Act (50 U.S.C. 1902), as amended by 
subsection (d)(1) of this section, is further amended by adding at the 
end the following new subsection:
    ``(g) Determination of Agencies and Offices of the Federal 
Government Having National Security Responsibilities.--(1) The 
Secretary, in consultation with the Board, shall annually determine and 
develop a list identifying each agency or office of the Federal 
Government having national security responsibilities at which a 
recipient of a fellowship or scholarship under this title will be able 
to make the recipient's foreign area and language skills available to 
such agency or office. The Secretary shall submit the first such list 
to the Congress and include each subsequent list in the annual report 
to the Congress, as required by section 806(b)(6).
    ``(2) Notwithstanding section 804, funds may not be made available 
from the Fund to carry out this title for fiscal year 1997 until 30 
days after the date on which the Secretary of Defense submits to the 
Congress the first such list required by paragraph (1).''.
    (3) Section 806(b) of that Act (50 U.S.C. 1906(b)) is amended by 
striking out ``and'' at the end of paragraph (5), redesignating 
paragraph (6) as paragraph (7), and inserting after paragraph (5) the 
following new paragraph (6):
        ``(6) the current list of agencies and offices of the Federal 
    Government required to be developed by section 802(g); and''.
    (g) Report on Program.--(1) Not later than six months after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report assessing the improvements to the program 
established under the David L. Boren National Security Education Act of 
1991 (50 U.S.C. 1901 et seq.) that result from the amendments made by 
this section.
    (2) The report shall include an assessment of the contribution of 
the program, as so improved, in meeting the national security 
objectives of the United States.

SEC. 1079. AVIATION AND VESSEL WAR RISK INSURANCE.

    (a) Aviation Risk Insurance.--(1) Chapter 931 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 9514. Indemnification of Department of Transportation for losses 
     covered by defense-related aviation insurance
    ``(a) Prompt Indemnification Required.--(1) In the event of a loss 
that is covered by defense-related aviation insurance, the Secretary of 
Defense shall promptly indemnify the Secretary of Transportation for 
the amount of the loss consistent with the indemnification agreement 
between the two Secretaries that underlies such insurance. The 
Secretary of Defense shall make such indemnification--
        ``(A) in the case of a claim for the loss of an aircraft hull, 
    not later than 30 days after the date on which the Secretary of 
    Transportation determines the claim to be payable or that amounts 
    are due under the policy that provided the defense-related aviation 
    insurance; and
        ``(B) in the case of any other claim, not later than 180 days 
    after the date on which the Secretary of Transportation determines 
    the claim to be payable.
    ``(2) When there is a loss of an aircraft hull that is (or may be) 
covered by defense-related aviation insurance, the Secretary of 
Transportation may make, during the period when a claim for such loss 
is pending with the Secretary of Transportation, any required periodic 
payments owed by the insured party to a lessor or mortgagee of such 
aircraft. Such payments shall commence not later than 30 days following 
the date of the presentment of the claim for the loss of the aircraft 
hull to the Secretary of Transportation. If the Secretary of 
Transportation determines that the claim is payable, any amount paid 
under this paragraph arising from such claim shall be credited against 
the amount payable under the aviation insurance. If the Secretary of 
Transportation determines that the claim is not payable, any amount 
paid under this paragraph arising from such claim shall constitute a 
debt to the United States, payable to the insurance fund. Any such 
amounts so returned to the United States shall be promptly credited to 
the fund or account from which the payments were made under this 
paragraph.
    ``(b) Source of Funds for Payment of Indemnity.--The Secretary of 
Defense may pay an indemnity described in subsection (a) from any funds 
available to the Department of Defense for operation and maintenance, 
and such sums as may be necessary for payment of such indemnity are 
hereby authorized to be transferred to the Secretary of Transportation 
for such purpose.
    ``(c) Notice to Congress.--In the event of a loss that is covered 
by defense-related aviation insurance in the case of an incident in 
which the covered loss is (or is expected to be) in an amount in excess 
of $1,000,000, the Secretary of Defense shall submit to Congress--
        ``(1) notification of the loss as soon after the occurrence of 
    the loss as possible and in no event more than 30 days after the 
    date of the loss; and
        ``(2) semiannual reports thereafter updating the information 
    submitted under paragraph (1) and showing with respect to losses 
    arising from such incident the total amount expended to cover such 
    losses, the source of thosefunds, pending litigation, and estimated 
total cost to the Government.
    ``(d) Implementing Matters.--(1) Payment of indemnification under 
this section is not subject to section 2214 or 2215 of this title or 
any other provision of law requiring notification to Congress before 
funds may be transferred.
    ``(2) Consolidation of claims arising from the same incident is not 
required before indemnification of the Secretary of Transportation for 
payment of a claim may be made under this section.
    ``(e) Construction With Other Transfer Authority.--Authority to 
transfer funds under this section is in addition to any other authority 
provided by law to transfer funds (whether enacted before, on, or after 
the date of the enactment of this section) and is not subject to any 
dollar limitation or notification requirement contained in any other 
such authority to transfer funds.
    ``(f) Annual Report on Contingent Liabilities.--Not later than 
March 1 of each year, the Secretary of Defense shall submit to Congress 
a report setting forth the current amount of the contingent outstanding 
liability of the United States under the insurance program under 
chapter 443 of title 49.
    ``(g) Definitions.--In this section:
        ``(1) Defense-related aviation insurance.--The term `defense-
    related aviation insurance' means aviation insurance and 
    reinsurance provided through policies issued by the Secretary of 
    Transportation under chapter 443 of title 49 that pursuant to 
    section 44305(b) of that title is provided by that Secretary 
    without premium at the request of the Secretary of Defense and is 
    covered by an indemnity agreement between the Secretary of 
    Transportation and the Secretary of Defense.
        ``(2) Loss.--The term `loss' includes damage to or destruction 
    of property, personal injury or death, and other liabilities and 
    expenses covered by the defense-related aviation insurance.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``9514. Indemnification of Department of Transportation for losses 
          covered by defense-related aviation insurance.''.

    (b) Vessel War Risk Insurance.--(1) Chapter 157 of title 10, United 
States Code, is amended by adding after section 2644, as redesignated 
by section 906, the following new section:
``Sec. 2645. Indemnification of Department of Transportation for losses 
     covered by vessel war risk insurance
    ``(a) Prompt Indemnification Required.--(1) In the event of a loss 
that is covered by vessel war risk insurance, the Secretary of Defense 
shall promptly indemnify the Secretary of Transportation for the amount 
of the loss consistent with the indemnification agreement between the 
two Secretaries that underlies such insurance. The Secretary of Defense 
shall make such indemnification--
        ``(A) in the case of a claim for the loss of a vessel, not 
    later than 90 days after the date on which the Secretary of 
    Transportation determines the claim to be payable or that amounts 
    are due under the policy that provided the vessel war risk 
    insurance; and
        ``(B) in the case of any other claim, not later than 180 days 
    after the date on which on which the Secretary of Transportation 
    determines the claim to be payable.
    ``(2) When there is a loss of a vessel that is (or may be) covered 
by vessel war risk insurance, the Secretary of Transportation may make, 
during the period when a claim for such loss is pending with the 
Secretary of Transportation, any required periodic payments owed by the 
insured party to a lessor or mortgagee of such vessel. Such payments 
shall commence not later than 30 days following the date of the 
presentment of the claim for the loss of the vessel to the Secretary of 
Transportation. If the Secretary of Transportation determines that the 
claim is payable, any amount paid under this paragraph arising from 
such claim shall be credited against the amount payable under the 
vessel war risk insurance. If the Secretary of Transportation 
determines that the claim is not payable, any amount paid under this 
paragraph arising from such claim shall constitute a debt to the United 
States, payable to the insurance fund. Any such amounts so returned to 
the United States shall be promptly credited to the fund or account 
from which the payments were made under this paragraph.
    ``(b) Source of Funds for Payment of Indemnity.--The Secretary of 
Defense may pay an indemnity described in subsection (a) from any funds 
available to the Department of Defense for operation and maintenance, 
and such sums as may be necessary for payment of such indemnity are 
hereby authorized to be transferred to the Secretary of Transportation 
for such purpose.
    ``(c) Deposit of Funds.--Any amount transferred to the Secretary of 
Transportation under this section shall be deposited in, and merged 
with amounts in, the Vessel War Risk Insurance Fund as provided in the 
second sentence of section 1208(a) of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1288(a)).
    ``(d) Notice to Congress.--In the event of a loss that is covered 
by vessel war risk insurance in the case of an incident in which the 
covered loss is (or is expected to be) in an amount in excess of 
$1,000,000, the Secretary of Defense shall submit to Congress--
        ``(1) notification of the loss as soon after the occurrence of 
    the loss as possible and in no event more than 30 days after the 
    date of the loss; and
        ``(2) semiannual reports thereafter updating the information 
    submitted under paragraph (1) and showing with respect to losses 
    arising from such incident the total amount expended to cover such 
    losses, the source of such funds, pending litigation, and estimated 
    total cost to the Government.
    ``(e) Implementing Matters.--(1) Payment of indemnification under 
this section is not subject to section 2214 or2215 of this title or any 
other provision of law requiring notification to Congress before funds 
may be transferred.
    ``(2) Consolidation of claims arising from the same incident is not 
required before indemnification of the Secretary of Transportation for 
payment of a claim may be made under this section.
    ``(f) Construction With Other Transfer Authority.--Authority to 
transfer funds under this section is in addition to any other authority 
provided by law to transfer funds (whether enacted before, on, or after 
the date of the enactment of this section) and is not subject to any 
dollar limitation or notification requirement contained in any other 
such authority to transfer funds.
    ``(g) Annual Report on Contingent Liabilities.--Not later than 
March 1 of each year, the Secretary of Defense shall submit to Congress 
a report setting forth the current amount of the contingent outstanding 
liability of the United States under the vessel war risk insurance 
program under title XII of the Merchant Marine Act, 1936 (46 U.S.C. 
App. 1281 et seq.).
    ``(h) Definitions.--In this section:
        ``(1) Vessel war risk insurance.--The term `vessel war risk 
    insurance' means insurance and reinsurance provided through 
    policies issued by the Secretary of Transportation under title XII 
    of the Merchant Marine Act, 1936 (46 U.S.C. App. 1281 et seq.), 
    that is provided by that Secretary without premium at the request 
    of the Secretary of Defense and is covered by an indemnity 
    agreement between the Secretary of Transportation and the Secretary 
    of Defense.
        ``(2) Vessel war risk insurance fund.--The term `Vessel War 
    Risk Insurance Fund' means the insurance fund referred to in the 
    first sentence of section 1208(a) of the Merchant Marine Act, 1936 
    (46 U.S.C. App. 1288(a)).
        ``(3) Loss.--The term `loss' includes damage to or destruction 
    of property, personal injury or death, and other liabilities and 
    expenses covered by the vessel war risk insurance.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2644, as added by 
section 906, the following new item:

``2645. Indemnification of Department of Transportation for losses 
          covered by vessel war risk insurance.''.

SEC. 1080. DESIGNATION OF MEMORIAL AS NATIONAL D-DAY MEMORIAL.
    (a) Designation.--The memorial to be constructed by the National D-
Day Memorial Foundation in Bedford, Virginia, is hereby designated as a 
national memorial to be known as the ``National D-Day Memorial''. The 
memorial shall serve to honor the members of the Armed Forces of the 
United States who served in the liberation of Normandy, France, in June 
1944.
    (b) Public Proclamation.--The President is requested and urged to 
issue a public proclamation acknowledging the designation of the 
memorial to be constructed by the National D-Day Memorial Foundation in 
Bedford, Virginia, as the National D-Day Memorial.
    (c) Maintenance of Memorial.--All expenses for maintenance and care 
of the memorial shall be paid for with non-Federal funds, including 
funds provided by the National D-Day Memorial Foundation. The United 
States shall not be liable for any expense incurred for the maintenance 
and care of the memorial.
SEC. 1081. SENSE OF CONGRESS REGARDING SEMICONDUCTOR TRADE AGREEMENT 
BETWEEN UNITED STATES AND JAPAN.
    (a) Findings.--Congress makes the following findings:
        (1) The United States and Japan share a long and important 
    bilateral relationship which serves as an anchor of peace and 
    stability in the Asia Pacific region, an alliance which was 
    reaffirmed at the recent summit meeting between President Clinton 
    and Prime Minister Hashimoto in Tokyo.
        (2) The Japanese economy has experienced difficulty over the 
    past few years, demonstrating that it is no longer possible for 
    Japan, the world's second largest economy, to use exports as the 
    sole engine of economic growth, but that the Government of Japan 
    must promote deregulation of its domestic economy in order to 
    increase economic growth.
        (3) Deregulation of the Japanese economy requires government 
    attention to the removal of barriers to imports of manufactured 
    goods.
        (4) The United States-Japan Semiconductor Trade Agreement has 
    begun the process of deregulation in the semiconductor sector and 
    is opening the Japanese market to competitive foreign products.
        (5) The United States-Japan Semiconductor Trade Agreement has 
    put in place both government-to-government and industry-to-industry 
    mechanisms which have played a vital role in allowing cooperation 
    to replace conflict in this important high technology sector.
        (6) The mechanisms include joint calculation of foreign market 
    share, deterrence of dumping, and promotion of industrial 
    cooperation in the design of foreign semiconductor devices.
        (7) Because of these actions under the United States-Japan 
    Semiconductor Trade Agreement, the United States and Japan today 
    enjoy trade in semiconductors which is mutually beneficial, 
    harmonious, and free from the friction that once characterized the 
    semiconductor industry.
        (8) Because of structural barriers in Japan, a gap still 
    remains between the share of the world market for semiconductor 
    products outside Japan that the United States and other foreign 
    semiconductor sources are able to capture through competitiveness 
    and the share of the Japanese semiconductor market that the United 
    States and those other sources are able to capture through 
    competitiveness, and that gap is consistent across the full range 
    of semiconductor products as well as a full range of end-use 
    applications.
        (9) The competitiveness and health of the United States 
    semiconductor industry is of critical importance to the overall 
    economic well-being and high-technology defense capabilities of the 
    United States.
        (10) The economic interests of both the United States and Japan 
    are best served by well functioning, open markets, deterrence of 
    dumping, and continuing good cooperative relationships in all 
    sectors, including semiconductors.
        (11) A strong and healthy military and political alliance 
    between the United States and Japan requires continuation of the 
    industrial and economic cooperation promoted by the United States-
    Japan Semiconductor Trade Agreement.
        (12) President Clinton has called on the Government of Japan to 
    agree to a continuation of the United States-Japan Semiconductor 
    Trade Agreement beyond the current agreement's expiration on July 
    31, 1996.
        (13) The Government of Japan has opposed any continuation of 
    the United States-Japan Semiconductor Trade Agreement to promote 
    cooperation in United States-Japan semiconductor trade.
    (b) Sense of Congress.--On the basis of the findings contained in 
subsection (a), it is the sense of Congress that--
        (1) it is regrettable that the Government of Japan has refused 
    to consider continuation of the United States-Japan Semiconductor 
    Trade Agreement to ensure that cooperation continues in the 
    semiconductor sector beyond the expiration of the agreement on July 
    31, 1996; and
        (2) the President should take all necessary and appropriate 
    actions to ensure the resumption and extension of the United 
    States-Japan Semiconductor Trade Agreement beyond July 31, 1996.
    (c) Definition.--For purposes of this section, the term ``United 
States-Japan Semiconductor Trade Agreement'' refers to the agreement 
between the United States and Japan concerning trade in semiconductor 
products, with arrangement, done by exchange of letters at Washington 
on June 11, 1991.
SEC. 1082. AGREEMENTS FOR EXCHANGE OF DEFENSE PERSONNEL BETWEEN THE 
UNITED STATES AND FOREIGN COUNTRIES.
    (a) Authority To Enter Into International Exchange Agreements.--(1) 
The Secretary of Defense may enter into international defense personnel 
exchange agreements.
    (2) For purposes of this section, an international defense 
personnel exchange agreement is an agreement with the government of an 
ally of the United States or another friendly foreign country for the 
exchange of--
        (A) military and civilian personnel of the Department of 
    Defense; and
        (B) military and civilian personnel of the defense ministry of 
    that foreign government.
    (b) Assignment of Personnel.--(1) Pursuant to an international 
defense personnel exchange agreement, personnel of the defense ministry 
of a foreign government may be assigned to positions in the Department 
of Defense and personnel of the Department of Defense may be assigned 
to positions in the defense ministry of such foreign government. 
Positions to which exchanged personnel are assigned may include 
positions of instructors.
    (2) An agreement for the exchange of personnel engaged in research 
and development activities may provide for assignment of Department of 
Defense personnel to positions in private industry that support the 
defense ministry of the host foreign government.
    (3) An individual may not be assigned to a position pursuant to an 
international defense personnel exchange agreement unless the 
assignment is acceptable to both governments.
    (c) Reciprocity of Personnel Qualifications Required.--Each 
government shall be required under an international defense personnel 
exchange agreement to provide personnel with qualifications, training, 
and skills that are essentially equal to those of the personnel 
provided by the other government.
    (d) Payment of Personnel Costs.--(1) Each government shall pay the 
salary, per diem, cost of living, travel costs, cost of language or 
other training, and other costs for its own personnel in accordance 
with the applicable laws and regulations of such government.
    (2) Paragraph (1) does not apply to the following costs:
        (A) The cost of temporary duty directed by the host government.
        (B) The cost of training programs conducted to familiarize, 
    orient, or certify exchanged personnel regarding unique aspects of 
    the assignments of the exchanged personnel.
        (C) Costs incident to the use of the facilities of the host 
    government in the performance of assigned duties.
    (e) Prohibited Conditions.--No personnel exchanged pursuant to an 
agreement under this section may take or be required to take an oath of 
allegiance to the host country or to hold an official capacity in the 
government of such country.
    (f) Relationship to Other Authority.--The requirements in 
subsections (c) and (d) shall apply in the exercise of any authority of 
the Secretaries of the military departments to enter into an agreement 
with the government of a foreign country to provide for the exchange of 
members of the armed forces and military personnel of the foreign 
country. The Secretary of Defense may prescribe regulations for the 
application of such subsections in the exercise of such authority.

SEC. 1083. SENSE OF SENATE REGARDING BOSNIA AND HERZEGOVINA.

    It is the sense of the Senate that, notwithstanding any other 
provision of law, in order to maximize the amount of equipment provided 
to the Government of Bosnia and Herzegovina under the authority 
contained in section 540 of the Foreign Operations, Export Financing, 
and Related Programs Appropriations Act, 1996 (Public Law 104-107; 110 
Stat. 737), the price of the transferred equipment shall not exceed the 
lowest level at which the same or similar equipmenthas been transferred 
to any other country under any other United States Government program.

SEC. 1084. DEFENSE BURDENSHARING.

    (a) Efforts To Increase Allied Burdensharing.--The President shall 
seek to have each nation that has cooperative military relations with 
the United States (including security agreements, basing arrangements, 
or mutual participation in multinational military organizations or 
operations) take one or more of the following actions:
        (1) Increase its financial contributions to the payment of the 
    nonpersonnel costs incurred by the United States Government for 
    stationing United States military personnel in that nation, with a 
    goal of achieving by September 30, 2000, 75 percent of such costs. 
    An increase in financial contributions by any nation under this 
    paragraph may include the elimination of taxes, fees, or other 
    charges levied on United States military personnel, equipment, or 
    facilities stationed in that nation.
        (2) Increase its annual budgetary outlays for national defense 
    as a percentage of its gross domestic product by 10 percent or at 
    least to a level commensurate to that of the United States by 
    September 30, 1997.
        (3) Increase its annual budgetary outlays for foreign 
    assistance (to promote democratization, economic stabilization, 
    transparency arrangements, defense economic conversion, respect for 
    the rule of law, and internationally recognized human rights) by 10 
    percent or at least to a level commensurate to that of the United 
    States by September 30, 1997.
        (4) Increase the amount of military assets (including 
    personnel, equipment, logistics, support and other resources) that 
    it contributes, or would be prepared to contribute, to 
    multinational military activities worldwide.
    (b) Authorities To Encourage Actions by United States Allies.--In 
seeking the actions described in subsection (a) with respect to any 
nation, or in response to a failure by any nation to undertake one or 
more of such actions, the President may take any of the following 
measures to the extent otherwise authorized by law:
        (1) Reduce the end strength level of members of the Armed 
    Forces assigned to permanent duty ashore in that nation.
        (2) Impose on that nation fees or other charges similar to 
    those that such nation imposes on United States forces stationed in 
    that nation.
        (3) Reduce (through rescission, impoundment, or other 
    appropriate procedures as authorized by law) the amount the United 
    States contributes to the NATO Civil Budget, Military Budget, or 
    Security Investment Program.
        (4) Suspend, modify, or terminate any bilateral security 
    agreement the United States has with that nation, consistent with 
    the terms of such agreement.
        (5) Reduce (through rescission, impoundment, or other 
    appropriate procedures as authorized by law) any United States 
    bilateral assistance appropriated for that nation.
        (6) Take any other action the President determines to be 
    appropriate as authorized by law.
    (c) Report on Progress in Increasing Allied Burdensharing.--Not 
later than March 1, 1997, the Secretary of Defense shall submit to 
Congress a report on--
        (1) steps taken by other nations to complete the actions 
    described in subsection (a);
        (2) all measures taken by the President, including those 
    authorized in subsection (b), to achieve the actions described in 
    subsection (a); and
        (3) the budgetary savings to the United States that are 
    expected to accrue as a result of the steps described under 
    paragraph (1).
    (d) Report on National Security Bases for Forward Deployment and 
Burdensharing Relationships.--(1) In order to ensure the best 
allocation of budgetary resources, the President shall undertake a 
review of the status of elements of the United States Armed Forces that 
are permanently stationed outside the United States. The review shall 
include an assessment of the following:
        (A) The alliance requirements that are to be found in 
    agreements between the United States and other countries.
        (B) The national security interests that support permanently 
    stationing elements of the United States Armed Forces outside the 
    United States.
        (C) The stationing costs associated with the forward deployment 
    of elements of the United States Armed Forces.
        (D) The alternatives available to forward deployment (such as 
    material prepositioning, enhanced airlift and sealift, or joint 
    training operations) to meet such alliance requirements or national 
    security interests, with such alternatives identified and described 
    in detail.
        (E) The costs and force structure configurations associated 
    with such alternatives to forward deployment.
        (F) The financial contributions that allies of the United 
    States make to common defense efforts (to promote democratization, 
    economic stabilization, transparency arrangements, defense economic 
    conversion, respect for the rule of law, and internationally 
    recognized human rights).
        (G) The contributions that allies of the United States make to 
    meeting the stationing costs associated with the forward deployment 
    of elements of the United States Armed Forces.
        (H) The annual expenditures of the United States and its allies 
    on national defense, and the relative percentages of each nation's 
    gross domestic product constituted by those expenditures.
    (2) The President shall submit to Congress a report on the review 
under paragraph (1). The report shall be submitted not later than March 
1, 1997, in classified and unclassified form.
    (e) Report Date.--Section 1003(c) of Public Law 98-515 is amended 
by striking out ``each year'' and inserting ``by March 1, 1998, and 
every other year thereafter''.

             TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY

Sec. 1101. Short title.
Sec. 1102. Findings.
Sec. 1103. Role of Director of Central Intelligence in appointment and 
          evaluation of certain intelligence officials.

                   Subtitle A--Establishment of Agency

Sec. 1111. Establishment.
Sec. 1112. Missions and authority.
Sec. 1113. Transfers of personnel and assets.
Sec. 1114. Compatibility with authority under the National Security Act 
          of 1947.
Sec. 1115. Creditable civilian service for career conditional employees 
          of the Defense Mapping Agency.
Sec. 1116. Saving provisions.
Sec. 1117. Definitions.
Sec. 1118. Authorization of appropriations.

          Subtitle B--Conforming Amendments and Effective Dates

Sec. 1121. Redesignation and repeals.
Sec. 1122. Reference amendments.
Sec. 1123. Headings and clerical amendments.
Sec. 1124. Effective date.

SEC. 1101. SHORT TITLE.

    This title may be cited as the ``National Imagery and Mapping 
Agency Act of 1996''.

SEC. 1102. FINDINGS.

    Congress makes the following findings:
        (1) There is a need within the Department of Defense and the 
    Intelligence Community of the United States to provide a single 
    agency focus for the growing number and diverse types of customers 
    for imagery and geospatial information resources within the 
    Government, to ensure visibility and accountability for those 
    resources, and to harness, leverage, and focus rapid technological 
    developments to serve the imagery, imagery intelligence, and 
    geospatial information customers.
        (2) There is a need for a single Government agency to solicit 
    and advocate the needs of that growing and diverse pool of 
    customers.
        (3) A single combat support agency dedicated to imagery, 
    imagery intelligence, and geospatial information could act as a 
    focal point for support of all imagery intelligence and geospatial 
    information customers, including customers in the Department of 
    Defense, the Intelligence Community, and related agencies outside 
    of the Department of Defense.
        (4) Such an agency would best serve the needs of the imagery, 
    imagery intelligence, and geospatial information customers if it 
    were organized--
            (A) to carry out its mission responsibilities under the 
        authority, direction, and control of the Secretary of Defense, 
        with the advice of the Chairman of the Joint Chiefs of Staff; 
        and
            (B) to carry out its responsibilities to national 
        intelligence customers in accordance with policies and 
        priorities established by the Director of Central Intelligence.

SEC. 1103. ROLE OF DIRECTOR OF CENTRAL INTELLIGENCE IN APPOINTMENT AND 
              EVALUATION OF CERTAIN INTELLIGENCE OFFICIALS.

    (a) In General.--Section 201 of title 10, United States Code, is 
amended to read as follows:
``Sec. 201. Certain intelligence officials: consultation and 
    concurrence regarding appointments; evaluation of performance
    ``(a) Consultation Regarding Appointment.--Before submitting a 
recommendation to the President regarding the appointment of an 
individual to the position of Director of the Defense Intelligence 
Agency, the Secretary of Defense shall consult with the Director of 
Central Intelligence regarding the recommendation.
    ``(b) Concurrence in Appointment.--(1) Before submitting a 
recommendation to the President regarding the appointment of an 
individual to a position referred to in paragraph (2), the Secretary of 
Defense shall seek the concurrence of the Director of Central 
Intelligence in the recommendation. If the Director does not concur in 
the recommendation, the Secretary may make the recommendation to the 
President without the Director's concurrence, but shall include in the 
recommendation a statement that the Director does not concur in the 
recommendation.
    ``(2) Paragraph (1) applies to the following positions:
        ``(A) The Director of the National Security Agency.
        ``(B) The Director of the National Reconnaissance Office.
        ``(C) The Director of the National Imagery and Mapping Agency.
    ``(c) Performance Evaluations.--(1) The Director of Central 
Intelligence shall provide annually to the Secretary of Defense, for 
the Secretary's consideration, an evaluation of the performance of the 
individuals holding the positions referred to in paragraph (2) in 
fulfilling their respective responsibilities with regard to the 
National Foreign Intelligence Program.
    ``(2) The positions referred to in paragraph (1) are the following:
        ``(A) The Director of the National Security Agency.
        ``(B) The Director of the National Reconnaissance Office.
        ``(C) The Director of the National Imagery and Mapping 
    Agency.''.
    (b) Clerical Amendment.--The item relating to section 201 in the 
table of sections at the beginning of subchapter II of chapter 8 of 
such title is amended to read as follows:

``201. Certain intelligence officials: consultation and concurrence 
          regarding appointments; evaluation of performance.''.

                  Subtitle A--Establishment of Agency

SEC. 1111. ESTABLISHMENT.

    (a) Establishment.--There is hereby established in the Department 
of Defense a Defense Agency to be known as the National Imagery and 
Mapping Agency.
    (b) Transfer of Functions From Department of Defense Entities.--The 
missions and functions of the following elements of the Department of 
Defense are transferred to the National Imagery and Mapping Agency:
        (1) The Defense Mapping Agency.
        (2) The Central Imagery Office.
        (3) Other elements of the Department of Defense as specified in 
    the classified annex to this Act.
    (c) Transfer of Functions From Central Intelligence Agency.--The 
missions and functions of the following elements of the Central 
Intelligence Agency are transferred to the National Imagery and Mapping 
Agency:
        (1) The National Photographic Interpretation Center.
        (2) Other elements of the Central Intelligence Agency as 
    specified in the classified annex to this Act.
    (d) Preservation of Level and Quality of Imagery Intelligence 
Support to All-Source Analysis and Production.--In managing the 
establishment of the National Imagery and Mapping Agency, the Secretary 
of Defense, in consultation with the Director of Central Intelligence, 
shall ensure that imagery intelligence support provided to all-source 
analysis and production is in no way degraded or compromised.

SEC. 1112. MISSIONS AND AUTHORITY.

    (a) Agency Charter.--Part I of subtitle A of title 10, United 
States Code, is amended--
        (1) by redesignating chapter 22 as chapter 23; and
        (2) by inserting after chapter 21 the following new chapter 22:

           ``CHAPTER 22--NATIONAL IMAGERY AND MAPPING AGENCY

``Subchapter
                                                                    Sec.
``I. Missions and Authority.......................................   441

``II. Maps, Charts, and Geodetic Products.........................   451

``III. Personnel Management.......................................   461

``IV. Definitions.................................................   467

                 ``SUBCHAPTER I--MISSIONS AND AUTHORITY

``Sec.
``441. Establishment.
``442. Missions.
``443. Imagery intelligence and geospatial information: support for 
          foreign countries.
``444. Support from Central Intelligence Agency.
``445. Protection of agency identifications and organizational 
          information.

``Sec. 441. Establishment

    ``(a) Establishment.--The National Imagery and Mapping Agency is a 
combat support agency of the Department of Defense and has significant 
national missions.
    ``(b) Director.--(1) The Director of the National Imagery and 
Mapping Agency is the head of the agency.
    ``(2) Upon a vacancy in the position of Director, the Secretary of 
Defense shall recommend to the President an individual for appointment 
to the position.
    ``(3) If an officer of the armed forces on active duty is appointed 
to the position of Director, the position shall be treated as having 
been designated by the President as a position of importance and 
responsibility for purposes of section 601 of this title and shall 
carry the grade of lieutenant general, or, in the case of an officer of 
the Navy, vice admiral.
    ``(c) Director of Central Intelligence Collection Tasking 
Authority.--Unless otherwise directed by the President, the Director of 
Central Intelligence shall have authority (except as otherwise agreed 
by the Director and the Secretary of Defense) to--
        ``(1) approve collection requirements levied on national 
    imagery collection assets;
        ``(2) determine priorities for such requirements; and
        ``(3) resolve conflicts in such priorities.
    ``(d) Availability and Continued Improvement of Imagery 
Intelligence Support to All-Source Analysis and Production Function.--
The Secretary of Defense, in consultation with the Director of Central 
Intelligence, shall take all necessary steps to ensure the full 
availability and continued improvement of imagery intelligence support 
for all-source analysis and production.

``Sec. 442. Missions

    ``(a) National Security Missions.--(1) The National Imagery and 
Mapping Agency shall, in support of the national security objectives of 
the United States, provide the following:
        ``(A) Imagery.
        ``(B) Imagery intelligence.
        ``(C) Geospatial information.
    ``(2) Imagery, intelligence, and information provided in carrying 
out paragraph (1) shall be timely, relevant, and accurate.
    ``(b) Navigation Information.--The National Imagery and Mapping 
Agency shall improve means of navigating vessels of the Navy and the 
merchant marine by providing, under the authority of the Secretary of 
Defense, accurate and inexpensive nautical charts, sailing directions, 
books on navigation, and manuals of instructions for the use of all 
vessels of the United States and of navigators generally.
    ``(c) Maps, Charts, Etc.--The National Imagery and Mapping Agency 
shall prepare and distribute maps, charts, books, and geodetic products 
as authorized under subchapter II of this chapter.
    ``(d) National Missions.--The National Imagery and Mapping Agency 
also has national missions as specified in section 120(a) of the 
National Security Act of 1947.
    ``(e) Systems.--The National Imagery and Mapping Agency may, in 
furtherance of a mission of the Agency, design, develop, deploy, 
operate, and maintain systems related to the processing and 
dissemination of imagery intelligence and geospatial information that 
may be transferred to, accepted or used by, or used on behalf of--
        ``(1) the armed forces, including any combatant command, 
    component of a combatant command, joint task force, or tactical 
    unit; or
        ``(2) any other department or agency of the United States.
``Sec. 443. Imagery intelligence and geospatial information: support 
    for foreign countries
    ``(a) Use of Appropriated Funds.--The Director of the National 
Imagery and Mapping Agency may use appropriated funds available to the 
National Imagery and Mapping Agency to provide foreign countries with 
imagery intelligence and geospatial information support.
    ``(b) Use of Funds Other Than Appropriated Funds.--The Director may 
use funds other than appropriated funds to provide foreign countries 
with imagery intelligence and geospatial information support, 
notwithstanding provisions of law relating to the expenditure of funds 
of the United States, except that--
        ``(1) no such funds may be expended, in whole or in part, by or 
    for the benefit of the National Imagery and Mapping Agency for a 
    purpose for which Congress had previously denied funds.
        ``(2) proceeds from the sale of imagery intelligence or 
    geospatial information items may be used only to purchase 
    replacement items similar to the items that are sold; and
        ``(3) the authority provided by this subsection may not be used 
    to acquire items or services for the principal benefit of the 
    United States.
    ``(c) Accommodation Procurements.--The authority under this section 
may be exercised to conduct accommodation procurements on behalf of 
foreign countries.
    ``(d) Coordination With Director of Central Intelligence.--The 
Director of the Agency shall coordinate with the Director of Central 
Intelligence any action under this section that involves imagery 
intelligence or intelligence products or involves providing support to 
an intelligence or security service of a foreign country.
``Sec. 444. Support from Central Intelligence Agency
    ``(a) Support Authorized.--The Director of Central Intelligence may 
provide support in accordance with this section to the Director of the 
National Imagery and Mapping Agency. The Director of the National 
Imagery and Mapping Agency may accept support provided under this 
section.
    ``(b) Administrative and Contract Services.--(1) In furtherance of 
the national intelligence effort, the Director of Central Intelligence 
may provide administrative and contract services to the National 
Imagery and Mapping Agency as if that agency were an organizational 
element of the Central Intelligence Agency.
    ``(2) Services provided under paragraph (1) may include the 
services of security police. For purposes of section 15 of the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403o), an installation of 
the National Imagery and Mapping Agency that is provided security 
police services under this section shall be considered an installation 
of the Central Intelligence Agency.
    ``(3) Support provided under this subsection shall be provided 
under terms and conditions agreed upon by the Secretary of Defense and 
the Director of Central Intelligence.
    ``(c) Detail of Personnel.--The Director of Central Intelligence 
may detail personnel of the Central Intelligence Agency indefinitely to 
the National Imagery and Mapping Agency without regard to any 
limitation on the duration of interagency details of Federal Government 
personnel.
    ``(d) Reimbursable or Nonreimbursable Support.--Support under this 
section may be provided and accepted on either a reimbursable basis or 
a nonreimbursable basis.
    ``(e) Authority To Transfer Funds.--(1) The Director of the 
National Imagery and Mapping Agency may transfer funds available for 
that agency to the Director of Central Intelligence for the Central 
Intelligence Agency.
    ``(2) The Director of Central Intelligence--
        ``(A) may accept funds transferred under paragraph (1); and
        ``(B) shall expend such funds, in accordance with the Central 
    Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.), to 
    provide administrative and contract services or detail personnel to 
    the National Imagery and Mapping Agency under this section.
``Sec. 445. Protection of agency identifications and organizational 
    information
    ``(a) Unauthorized Use of Agency Name, Initials, or Seal.--(1) 
Except with the written permission of the Secretary of Defense, no 
person may knowingly use, in connection with any merchandise, retail 
product, impersonation, solicitation, or commercial activity in a 
manner reasonably calculatedto convey the impression that such use is 
approved, endorsed, or authorized by the Secretary of Defense, any of 
the following:
        ``(A) The words `National Imagery and Mapping Agency', the 
    initials `NIMA', or the seal of the National Imagery and Mapping 
    Agency.
        ``(B) The words `Defense Mapping Agency', the initials `DMA', 
    or the seal of the Defense Mapping Agency.
        ``(C) Any colorable imitation of such words, initials, or 
    seals.
    ``(2) Whenever it appears to the Attorney General that any person 
is engaged or about to engage in an act or practice which constitutes 
or will constitute conduct prohibited by paragraph (1), the Attorney 
General may initiate a civil proceeding in a district court of the 
United States to enjoin such act or practice. Such court shall proceed 
as soon as practicable to a hearing and determination of such action 
and may, at any time before such final determination, enter such 
restraining orders or prohibitions, or take such other action as is 
warranted, to prevent injury to the United States or to any person or 
class of persons for whose protection the action is brought.

          ``SUBCHAPTER II--MAPS, CHARTS, AND GEODETIC PRODUCTS

``Sec.
``451. Maps, charts, and books.
``452. Pilot charts.
``453. Prices of maps, charts, and navigational publications.
``454. Exchange of mapping, charting, and geodetic data with foreign 
          countries and international organizations.
``455. Maps, charts, and geodetic data: public availability; exceptions.
``456. Civil actions barred.

                 ``SUBCHAPTER III--PERSONNEL MANAGEMENT

``Sec.
``461. Management rights.

``Sec. 461. Management rights

    ``(a) Scope.--If there is no obligation under the provisions of 
chapter 71 of title 5 for the head of an agency of the United States to 
consult or negotiate with a labor organization on a particular matter 
by reason of that matter being covered by a provision of law or a 
Governmentwide regulation, the Director of the National Imagery and 
Mapping Agency is not obligated to consult or negotiate with a labor 
organization on that matter even if that provision of law or regulation 
is inapplicable to the National Imagery and Mapping Agency.
    ``(b) Bargaining Units.--The National Imagery and Mapping Agency 
shall accord exclusive recognition to a labor organization under 
section 7111 of title 5 only for a bargaining unit that was recognized 
as appropriate for the Defense Mapping Agency on the day before the 
date on which employees and positions of the Defense Mapping Agency in 
that bargaining unit became employees and positions of the National 
Imagery and Mapping Agency under the National Imagery and Mapping 
Agency Act of 1996 (title XI of the National Defense Authorization Act 
for Fiscal Year 1997).
    ``(c) Termination of Bargaining Unit Coverage of Position Modified 
To Affect National Security Directly.--(1) If the Director of the 
National Imagery and Mapping Agency determines that the 
responsibilities of a position within a collective bargaining unit 
should be modified to include intelligence, counterintelligence, 
investigative, or security duties not previously assigned to that 
position and that the performance of the newly assigned duties directly 
affects the national security of the United States, then, upon such a 
modification of the responsibilities of that position, the position 
shall cease to be covered by the collective bargaining unit and the 
employee in that position shall cease to be entitled to representation 
by a labor organization accorded exclusive recognition for that 
collective bargaining unit.
    ``(2) A determination described in paragraph (1) that is made by 
the Director of the National Imagery and Mapping Agency may not be 
reviewed by the Federal Labor Relations Authority or any court of the 
United States.

                      ``SUBCHAPTER IV--DEFINITIONS

``Sec.
``467. Definitions.

``Sec. 467. Definitions

    ``In this chapter:
        ``(1) The term `function' means any duty, obligation, 
    responsibility, privilege, activity, or program.
        ``(2)(A) The term `imagery' means, except as provided in 
    subparagraph (B), a likeness or presentation of any natural or 
    manmade feature or related object or activity and the positional 
    data acquired at the same time the likeness or representation was 
    acquired, including--
            ``(i) products produced by space-based national 
        intelligence reconnaissance systems; and
            ``(ii) likenesses or presentations produced by satellites, 
        airborne platforms, unmanned aerial vehicles, or other similar 
        means.
        ``(B) Such term does not include handheld or clandestine 
    photography taken by or on behalf of human intelligence collection 
    organizations.
        ``(3) The term `imagery intelligence' means the technical, 
    geographic, and intelligence information derived through the 
    interpretation or analysis of imagery and collateral materials.
        ``(4) The term `geospatial information' means information that 
    identifies the geographic location and characteristics of natural 
    or constructed features and boundaries on the earth and includes--
            ``(A) statistical data and information derived from, among 
        other things, remote sensing, mapping, and surveying 
        technologies;
            ``(B) mapping, charting, and geodetic data; and
            ``(C) geodetic products, as defined in section 455(c) of 
        this title.''.
    (b) Transfer of Defense Mapping Agency Provisions.--(1) Sections 
2792, 2793, 2794, 2795, 2796, and 2798 of title 10, United States Code, 
are transferred to subchapter II of chapter 22 of such title, as added 
by subsection (a), inserted in that sequence in such subchapter 
following the table of sections, and redesignated in accordance with 
the following table:

Section
                                                              Section as
transferred
                                                            redesignated
    2792..........................................................  451 

    2793..........................................................  452 

    2794..........................................................  453 

    2795..........................................................  454 

    2796..........................................................  455 

    2798..........................................................  456.

    (2) Sections 451(1), 452, 453, 454, and 455 (in subsections (a) and 
(b)(1)(C)), and 456 of title 10, United States Code, as transferred and 
redesignated by paragraph (1), are amended by striking out ``Defense 
Mapping Agency'' each place it appears and inserting in lieu thereof 
``National Imagery and Mapping Agency''.
    (c) Oversight of Agency as a Combat Support Agency.--Section 193 of 
title 10, United States Code, is amended--
        (1) in subsection (d)--
            (A) by striking out the caption and inserting in lieu 
        thereof ``Review of National Security Agency and National 
        Imagery and Mapping Agency.--'';
            (B) in paragraph (1)--
                (i) by inserting ``and the National Imagery and Mapping 
            Agency'' after ``the National Security Agency''; and
                (ii) by striking out ``the Agency'' and inserting in 
            lieu thereof ``that the agencies''; and
            (C) in paragraph (2), by inserting ``and the National 
        Imagery and Mapping Agency'' after ``the National Security 
        Agency'';
        (2) in subsection (e)--
            (A) by striking out ``DIA and NSA'' in the caption and 
        inserting in lieu thereof the following: ``DIA, NSA, and 
        NIMA''; and
            (B) by striking out ``and the National Security Agency'' 
        and inserting in lieu thereof ``, the National Security Agency, 
        and the National Imagery and Mapping Agency''; and
        (3) in subsection (f), by striking out paragraph (4) and 
    inserting in lieu thereof the following:
        ``(4) The National Imagery and Mapping Agency.''.
    (d) Consolidation and Standardization of Exemptions From Disclosure 
of Organizational and Personnel Information.--Chapter 21 of title 10, 
United States Code, is amended by striking out sections 424 and 425 and 
inserting in lieu thereof the following:
``Sec. 424. Disclosure of organizational and personnel information: 
    exemption for Defense Intelligence Agency, National Reconnaissance 
    Office, and National Imagery and Mapping Agency
    ``(a) Exemption From Disclosure.--Except as required by the 
President or as provided in subsection (c), no provision of law shall 
be construed to require the disclosure of--
        ``(1) the organization or any function of an organization of 
    the Department of Defense named in subsection (b); or
        ``(2) the number of persons employed by or assigned or detailed 
    to any such organization or the name, official title, occupational 
    series, grade, or salary of any such person.
    ``(b) Covered Organizations.--This section applies to the following 
organizations of the Department of Defense:
        ``(1) The Defense Intelligence Agency.
        ``(2) The National Reconnaissance Office.
        ``(3) The National Imagery and Mapping Agency.
    ``(c) Provision of Information to Congress.--Subsection (a) does 
not apply with respect to the provision of information to Congress.''.
    (e) Special Printing Authority for Agency.--(1) Section 
207(a)(2)(B) of the Legislative Branch Appropriations Act, 1993 (Public 
Law 102-392; 44 U.S.C. 501 note), is amended by inserting ``National 
Imagery and Mapping Agency,'' after ``Defense Intelligence Agency,''.
    (2) Section 1336 of title 44, United States Code, is amended--
        (A) by striking out ``Secretary of the Navy'' and inserting in 
    lieu thereof ``Director of the National Imagery and Mapping 
    Agency''; and
        (B) by striking out ``United States Naval Oceanographic 
    Office'' and inserting in lieu thereof ``National Imagery and 
    Mapping Agency''.

SEC. 1113. TRANSFERS OF PERSONNEL AND ASSETS.

    (a) Personnel and Assets.--Subject to subsections (b) and (c), the 
personnel, assets, unobligated balances of appropriations and 
authorizations of appropriations, and, to the extent jointly determined 
appropriate by the Secretary of Defense and Director of Central 
Intelligence, obligated balances of appropriations and authorizations 
of appropriations employed, used, held, arising from, or available in 
connection with the missions and functions transferred under section 
1111(b) or section 1111(c) are transferred to the National Imagery and 
Mapping Agency. Transfers of appropriations from the Central 
Intelligence Agency under this subsection shall be made in accordance 
with section 1531 of title 31, United States Code.
    (b) Determination of CIA Positions To Be Transferred.--Not earlier 
than two years after the effective date of this subtitle, the Secretary 
of Defense and the Director of Central Intelligence shall determine 
which, if any, positions and personnel of the Central Intelligence 
Agency are to be transferred to the National Imagery and Mapping 
Agency. The positions to be transferred, and the employees serving in 
such positions, shall be transferred to the National Imagery and 
Mapping Agency under terms and conditions prescribed by the Secretary 
of Defense and the Director of Central Intelligence.
    (c) Rule For CIA Imagery Activities Only Partially Transferred.--If 
the National Photographic Interpretation Center of the Central 
Intelligence Agency or any imagery-related activity of the Central 
Intelligence Agency authorized to be performed by the National Imagery 
and Mapping Agency is not completely transferred to the National 
Imagery and Mapping Agency, the Secretary of Defense and the Director 
of Central Intelligence shall--
        (1) jointly determine which, if any, contracts, leases, 
    property, and records employed, used, held, arising from, available 
    to, or otherwise relating to such Center or activity is to be 
    transferred to the National Imagery and Intelligence Agency; and
        (2) provide by written agreement for the transfer of such 
    items.
SEC. 1114. COMPATIBILITY WITH AUTHORITY UNDER THE NATIONAL SECURITY ACT 
OF 1947.
    (a) Agency Functions.--Paragraph (2) of section 105(b) of the 
National Security Act of 1947 (50 U.S.C. 403-5(b)) is amended to read 
as follows:
        ``(2) through the National Imagery and Mapping Agency (except 
    as otherwise directed by the President or the National Security 
    Council), with appropriate representation from the intelligence 
    community, the continued operation of an effective unified 
    organization within the Department of Defense--
            ``(A) for carrying out tasking of imagery collection;
            ``(B) for the coordination of imagery processing and 
        exploitation activities;
            ``(C) for ensuring the dissemination of imagery in a timely 
        manner to authorized recipients; and
            ``(D) notwithstanding any other provision of law, for--
                ``(i) prescribing technical architecture and standards 
            related to imagery intelligence and geospatial information 
            and ensuring compliance with such architecture and 
            standards; and
                ``(ii) developing and fielding systems of common 
            concern related to imagery intelligence and geospatial 
            information;''.
    (b) National Mission.--Title I of such Act (50 U.S.C. 402 et seq.) 
is amended by adding at the end the following new section:


        ``national mission of national imagery and mapping agency

    ``Sec. 120. (a) In General.--In addition to the Department of 
Defense missions set forth in section 442 of title 10, United States 
Code, the National Imagery and Mapping Agency shall support the imagery 
requirements of the Department of State and other departments and 
agencies of the United States outside the Department of Defense.
    ``(b) Requirements and Priorities.--The Director of Central 
Intelligence shall establish requirements and priorities governing the 
collection of national intelligence by the National Imagery and Mapping 
Agency under subsection (a).
    ``(c) Correction of Deficiencies.--The Director of Central 
Intelligence shall develop and implement such programs and policies as 
the Director and the Secretary of Defense jointly determine necessary 
to review and correct deficiencies identified in the capabilities of 
the National Imagery and Mapping Agency to accomplish assigned national 
missions, including support to the all-source analysis and production 
process. The Director shall consult with the Secretary of Defense on 
the development and implementation of such programs and policies. The 
Secretary shall obtain the advice of the Chairman of the Joint Chiefs 
of Staff regarding the matters on which the Director and the Secretary 
are to consult under the preceding sentence.''.
    (c) Tasking of Imagery Assets.--Title I of such Act is further 
amended by adding at the end the following new section:


                      ``collection tasking authority

    ``Sec. 121. Unless otherwise directed by the President, the 
Director of Central Intelligence shall have authority (except as 
otherwise agreed by the Director and the Secretary of Defense) to--
        ``(1) approve collection requirements levied on national 
    imagery collection assets;
        ``(2) determine priorities for such requirements; and
        ``(3) resolve conflicts in such priorities.''.
    (d) Clerical Amendment.--The table of contents in the first section 
of such Act is amended by inserting after the item relating to section 
109 the following new items:
``Sec. 120. National mission of National Imagery and Mapping Agency.
``Sec. 121. Collection tasking authority.''.
SEC. 1115. CREDITABLE CIVILIAN SERVICE FOR CAREER CONDITIONAL EMPLOYEES 
OF THE DEFENSE MAPPING AGENCY.
    In the case of an employee of the National Imagery and Mapping 
Agency who, on the day before the effective date of this title, was an 
employee of the Defense Mapping Agency in a career-conditional status, 
the continuous service of that employee as an employee of the National 
Imagery and Mapping Agency on and after such date shall be considered 
creditable service for the purpose of any determination of the career 
status of the employee.

SEC. 1116. SAVING PROVISIONS.

    (a) Continuing Effect on Legal Documents.--All orders, 
determinations, rules, regulations, permits, agreements, international 
agreements, grants, contracts, leases, certificates, licenses, 
registrations, privileges, and other administrative actions--
        (1) which have been issued, made, granted, or allowed to become 
    effective by the President, any Federal agency or official thereof, 
    or by a court of competent jurisdiction, in connection with any of 
    the functions which are transferred under this title or any 
    function that the National Imagery and Mapping Agency is authorized 
    to perform by law, and
        (2) which are in effect at the time this title takes effect, or 
    were final before the effective date of this title and are to 
    become effective on or after the effective date of this title,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Secretary of Defense, the Director of the National 
Imagery and Mapping Agency or other authorized official, a court of 
competent jurisdiction, or by operation of law.
    (b) Proceedings Not Affected.--This title and the amendments made 
by this title shall not affect any proceedings, including notices of 
proposed rulemaking, or any application for any license, permit, 
certificate, or financial assistance pending before an element of the 
Department of Defense or Central Intelligence Agency at the time this 
title takes effect, with respect to function of that element 
transferred by section 1122, but such proceedings and applications 
shall be continued. Orders shall be issued in such proceedings, appeals 
shall be taken therefrom, and payments shall be made pursuant to such 
orders, as if this title had not been enacted, and orders issued in any 
such proceedings shall continue in effect until modified, terminated, 
superseded, or revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Nothing in this section 
shall be deemed to prohibit the discontinuance or modification of any 
such proceeding under the same terms and conditions and to the same 
extent that such proceeding could have been discontinued or modified if 
this title had not been enacted.

SEC. 1117. DEFINITIONS.

    In this subtitle, the terms ``function'', ``imagery'', ``imagery 
intelligence'', and ``geospatial information'' have the meanings given 
those terms in section 467 of title 10, United States Code, as added by 
section 1112.

SEC. 1118. AUTHORIZATION OF APPROPRIATIONS.

    Funds are authorized to be appropriated for the National Imagery 
and Mapping Agency for fiscal year 1997 in amounts and for purposes, 
and subject to the terms, conditions, limitations, restrictions, and 
requirements, that are set forth in the Classified Annex to this Act.

         Subtitle B--Conforming Amendments and Effective Dates

SEC. 1121. REDESIGNATION AND REPEALS.

    (a) Redesignation.--Chapter 23 of title 10, United States Code (as 
redesignated by section 1112(a)(1)) is amended by redesignating the 
sections in that chapter as sections 481 and 482, respectively.
    (b) Repeal of Superseded Law.--Chapter 167 of such title, as 
amended by section 1112(b), is repealed.

SEC. 1122. REFERENCE AMENDMENTS.

    (a) Title 5, United States Code.--Title 5, United States Code, is 
amended as follows:
        (1) Central imagery office.--Sections 2302(a)(2)(C)(ii), 
    3132(a)(1)(B), 4301(1) (in clause (ii)), 4701(a)(1)(B), 5102(a)(1) 
    (in clause (xi)), 5342(a)(1)(L), 6339(a)(1)(E), and 
    7323(b)(2)(B)(i)(XIII) are amended by striking out ``Central 
    Imagery Office'' and inserting in lieu thereof ``National Imagery 
    and Mapping Agency''.
        (2) Director, central imagery office.--Section 6339(a)(2)(E) is 
    amended by striking out ``Central Imagery Office, the Director of 
    the Central Imagery Office'' and inserting in lieu thereof 
    ``National Imagery and Mapping Agency, the Director of the National 
    Imagery and Mapping Agency''.
    (b) Other Laws.--The following provisions of law are amended by 
striking out ``Central Imagery Office'' and inserting in lieu thereof 
``National Imagery and Mapping Agency'':
        (1) National security act of 1947.--Section 3(4)(E) of the 
    National Security Act of 1947 (50 U.S.C. 401a(4)(E)).
        (2) Ethics in government act of 1978.--Section 105(a) of the 
    Ethics in Government Act of 1978 (Public Law 95-521; 5 U.S.C. App. 
    4).
        (3) Employee polygraph protection act.--Section 7(b)(2)(A)(i) 
    of the Employee Polygraph Protection Act of 1988 (Public Law 100-
    347; 29 U.S.C. 2006(b)(2)(A)(i)).
    (c) Cross Reference.--Section 82 of title 14, United States Code, 
is amended by striking out ``chapter 167'' and inserting in lieu 
thereof ``subchapter II of chapter 22''.

SEC. 1123. HEADINGS AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--
        (1) The table of chapters at the beginning of subtitle A of 
    title 10, United States Code, is amended--
            (A) by striking out the item relating to chapter 22 and 
        inserting in lieu thereof the following:

``22. National Imagery and Mapping Agency.........................  441 

``23. Miscellaneous Studies and Reports...........................471'';

        and
            (B) by striking out the item relating to chapter 167.
        (2) The table of chapters at the beginning of part I of such 
    subtitle is amended by striking out the item relating to chapter 22 
    and inserting in lieu thereof the following:

``22. National Imagery and Mapping Agency.........................  441 

``23. Miscellaneous Studies and Reports...........................471'';

        (3) The table of chapters at the beginning of part IV of such 
    subtitle is amended by striking out the item relating to chapter 
    167.
        (4) The items in the table of sections at the beginning of 
    chapter 23 of title 10, United States Code (as redesignated by 
    section 1112(a)(1)), are revised so as to reflect the 
    redesignations made by section 1121(a).
    (b) Title 44, United States Code.--
        (1) The heading of section 1336 of title 44, United States 
    Code, is amended to read as follows:
``Sec. 1336. National Imagery and Mapping Agency: special 
     publications''.
        (2) The item relating to that section in the tables of sections 
    at the beginning of chapter 13 of such title is amended to read as 
    follows:
``1336. National Imagery and Mapping Agency: special publications.''.

SEC. 1124. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
on October 1, 1996, or the date of the enactment of this Act, whichever 
is later.

                TITLE XII--RESERVE FORCES REVITALIZATION

                TITLE XII--RESERVE FORCES REVITALIZATION

Sec. 1201. Short title.
Sec. 1202. Purpose.

                 Subtitle A--Reserve Component Structure

Sec. 1211. Reserve component commands.
Sec. 1212. Reserve component chiefs.
Sec. 1213. Review of active duty and Reserve general and flag officer 
          authorizations.
Sec. 1214. Guard and Reserve technicians.

               Subtitle B--Reserve Component Accessibility

Sec. 1231. Report to Congress on measures to improve National Guard and 
          Reserve ability to respond to emergencies.
Sec. 1232. Report to Congress concerning tax incentives for employers of 
          members of Reserve components.
Sec. 1233. Report to Congress concerning income insurance program for 
          activated Reservists.
Sec. 1234. Report to Congress concerning small business loans for 
          members released from Reserve service during contingency 
          operations.

                 Subtitle C--Reserve Forces Sustainment

Sec. 1251. Report concerning tax deductibility of nonreimbursable 
          expenses.
Sec. 1252. Authority to pay transient housing charges for members 
          performing active duty for training.
Sec. 1253. Sense of Congress concerning quarters allowance during 
          service on active duty for training.
Sec. 1254. Sense of Congress concerning military leave policy.
Sec. 1255. Reserve Forces Policy Board.
Sec. 1256. Report on parity of benefits for active duty service and 
          Reserve service.
Sec. 1257. Information on proposed funding for the Guard and Reserve 
          components in future-years defense programs.

SEC. 1201. SHORT TITLE.

    This title may be cited as the ``Reserve Forces Revitalization Act 
of 1996''.

SEC. 1202. PURPOSE.

    The purpose of this title is to revise the basic statutory 
authorities governing the organization and administration of the 
reserve components of the Armed Forces in order to recognize the 
realities of reserve component partnership in the Total Force and to 
better prepare the American citizen-soldier, sailor, airman, and Marine 
in time of peace for duties in war.

                Subtitle A--Reserve Component Structure

SEC. 1211. RESERVE COMPONENT COMMANDS.

    (a) Establishment.--(1) Part I of subtitle E of title 10, United 
States Code, is amended by inserting after chapter 1005 the following 
new chapter:

               ``CHAPTER 1006--RESERVE COMPONENT COMMANDS

``Sec.
``10171. United States Army Reserve Command.
``10172. Naval Reserve Force.
``10173. Marine Forces Reserve.
``10174. Air Force Reserve Command.

``Sec. 10171. United States Army Reserve Command

    ``(a) Command.--The United States Army Reserve Command is a 
separate command of the Army commanded by the Chief of Army Reserve.
    ``(b) Chain of Command.--Except as otherwise prescribed by the 
Secretary of Defense, the Secretary of the Army shall prescribe the 
chain of command for the United States Army Reserve Command.
    ``(c) Assignment of Forces.--The Secretary of the Army--
        ``(1) shall assign to the United States Army Reserve Command 
    all forces of the Army Reserve in the continental United States 
    other than forces assigned to the unified combatant command for 
    special operations forces established pursuant to section 167 of 
    this title; and
        ``(2) except as otherwise directed by the Secretary of Defense 
    in the case of forces assigned to carry out functions of the 
    Secretary of the Army specified in section 3013 of this title, 
    shall assign all such forces of the Army Reserve to the commander 
    of the United States Atlantic Command.

``Sec. 10172. Naval Reserve Force

    ``(a) Establishment of Command.--The Secretary of the Navy, with 
the advice and assistance of the Chief of Naval Operations, shall 
establish a Naval Reserve Force. The Naval Reserve Force shall be 
operated as a separate command of the Navy.
    ``(b) Commander.--The Chief of Naval Reserve shall be the commander 
of the Naval Reserve Force. The commander of the Naval Reserve Force 
reports directly to the Chief of Naval Operations.
    ``(c) Assignment of Forces.--The Secretary of the Navy--
        ``(1) shall assign to the Naval Reserve Force specified 
    portions of the Naval Reserve other than forces assigned to the 
    unified combatant command for special operations forces established 
    pursuant to section 167 of this title; and
        ``(2) except as otherwise directed by the Secretary of Defense 
    in the case of forces assigned to carry out functions of the 
    Secretary of the Navy specified in section 5013 of this title, 
    shall assign to the combatant commands all such forces assigned to 
    the Naval Reserve Force under paragraph (1) in the manner specified 
    by the Secretary of Defense.

``Sec. 10173. Marine Forces Reserve

    ``(a) Establishment.--The Secretary of the Navy, with the advice 
and assistance of the Commandant of the Marine Corps, shall establish 
in the Marine Corps a command known as the Marine Forces Reserve.
    ``(b) Commander.--The Marine Forces Reserve is commanded by the 
Commander, Marine Forces Reserve. The Commander, Marine Forces Reserve, 
reports directly to the Commandant of the Marine Corps.
    ``(c) Assignment of Forces.--The Commandant of the Marine Corps--
        ``(1) shall assign to the Marine Forces Reserve the forces of 
    the Marine Corps Reserve stationed in the continental United States 
    other than forces assigned to the unified combatant command for 
    special operations forces established pursuant to section 167 of 
    this title; and
        ``(2) except as otherwise directed by the Secretary of Defense 
    in the case of forces assigned to carry out functions of the 
    Secretary of the Navy specified in section 5013 of this title, 
    shall assign to the combatant commands (through the Marine Corps 
    component commander for each such command) all such forces assigned 
    to the Marine Forces Reserve under paragraph (1) in the manner 
    specified by the Secretary of Defense.

``Sec. 10174. Air Force Reserve Command

    ``(a) Establishment of Command.--The Secretary of the Air Force, 
with the advice and assistance of the Chief of Staff of the Air Force, 
shall establish an Air Force Reserve Command. The Air Force Reserve 
Command shall be operated as a separate command of the Air Force.
    ``(b) Commander.--The Chief of Air Force Reserve is the Commander 
of the Air Force Reserve Command. The commander of the Air Force 
Reserve Command reports directly to the Chief of Staff of the Air 
Force.
    ``(c) Assignment of Forces.--The Secretary of the Air Force--
        ``(1) shall assign to the Air Force Reserve Command all forces 
    of the Air Force Reserve stationed in the continental United States 
    other than forces assigned to the unified combatant command for 
    special operations forces established pursuant to section 167 of 
    this title; and
        ``(2) except as otherwise directed by the Secretary of Defense 
    in the case of forces assigned to carry out functions of the 
    Secretary of the Air Force specified in section 8013 of this title, 
    shall assign to the combatant commands all such forces assigned to 
    the Air Force Reserve Command under paragraph (1) in the manner 
    specified by the Secretary of Defense.''.
    (2) The tables of chapters at the beginning of part I of such 
subtitle and at the beginning of such subtitle are each amended by 
inserting after the item relating to chapter 1005 the following new 
item:

``1006. Reserve Component Commands..............................10171''.

    (b) Conforming Repeal.--Section 903 of the National Defense 
Authorization Act for Fiscal Year 1991 (10 U.S.C. 3074 note) is 
repealed.
    (c) Implementation Schedule.--Implementation of chapter 1006 of 
title 10, United States Code, as added by subsection (a), shall begin 
not later than 90 days after the date of the enactment of this Act and 
shall be completed not later than one year after such date.

SEC. 1212. RESERVE COMPONENT CHIEFS.

    (a) Chief of Army Reserve.--Section 3038 of title 10, United States 
Code, is amended by adding at the end the following new subsections:
    ``(d) Budget.--The Chief of Army Reserve is the official within the 
executive part of the Department of the Army who, subject to the 
authority, direction, and control of the Secretary of the Army and the 
Chief of Staff, is responsible for justification and execution of the 
personnel, operation and maintenance, and construction budgets for the 
Army Reserve. As such, the Chief of Army Reserve is the director and 
functional manager of appropriations made for the Army Reserve in those 
areas.
    ``(e) Full Time Support Program.--The Chief of Army Reserve 
manages, with respect to the Army Reserve, the personnel program of the 
Department of Defense known as the Full Time Support Program.
    ``(f) Annual Report.--(1) The Chief of Army Reserve shall submit to 
the Secretary of Defense, through the Secretary of the Army, an annual 
report on the state of the Army Reserve and the ability of the Army 
Reserve to meet its missions. The report shall be prepared in 
conjunction with the Chief of Staff of the Army and may be submitted in 
classified and unclassified versions.
    ``(2) The Secretary of Defense shall transmit the annual report of 
the Chief of Army Reserve under paragraph (1) to Congress, together 
with such comments on the report as the Secretary considers 
appropriate. The report shall be transmitted at the same time each year 
that the annual report of the Secretary under section 113 of this title 
is submitted to Congress.''.
    (b) Chief of Naval Reserve.--(1) Chapter 513 of such title is 
amended by inserting after section 5142a the following new section:

``Sec. 5143. Office of Naval Reserve: appointment of Chief

    ``(a) Establishment of Office: Chief of Naval Reserve.--There is in 
the executive part of the Department of the Navy, on the staff of the 
Chief of Naval Operations, an Office of the Naval Reserve, which is 
headed by a Chief of Naval Reserve. The Chief of Naval Reserve--
        ``(1) is the principal adviser on Naval Reserve matters to the 
    Chief of Naval Operations; and
        ``(2) is the commander of the Naval Reserve Force.
    ``(b) Appointment.--The President, by and with the advice and 
consent of the Senate, shall appoint the Chief of Naval Reserve from 
officers who--
        ``(1) have had at least 10 years of commissioned service;
        ``(2) are in a grade above captain; and
        ``(3) have been recommended by the Secretary of the Navy.
    ``(c) Grade.--(1) The Chief of Naval Reserve holds office for a 
term determined by the Chief of Naval Operations, normally four years, 
but may be removed for cause at any time. He is eligible to succeed 
himself.
    ``(2) The Chief of Naval Reserve, while so serving, has a grade 
above rear admiral (lower half), without vacating the officer's 
permanent grade.
    ``(d) Budget.--The Chief of Naval Reserve is the official within 
the executive part of the Department of the Navy who, subject to the 
authority, direction, and control of the Secretary of the Navy and the 
Chief of Naval Operations, is responsible for preparation, 
justification, and execution of the personnel, operation and 
maintenance, and construction budgets for the Naval Reserve. As such, 
the Chief of Naval Reserve is the director and functional manager of 
appropriations made for the Naval Reserve in those areas.
    ``(e) Annual Report.--(1) The Chief of Naval Reserve shall submit 
to the Secretary of Defense, through the Secretary of the Navy, an 
annual report on the state of the Naval Reserve and the ability of the 
Naval Reserve to meet its missions. The report shall be prepared in 
conjunction with the Chief of Naval Operations and may be submitted in 
classified and unclassified versions.
    ``(2) The Secretary of Defense shall transmit the annual report of 
the Chief of Naval Reserve under paragraph (1) to Congress, together 
with such comments on the report as the Secretary considers 
appropriate. The report shall be transmitted at the same time each year 
that the annual report of the Secretary under section 113 of this title 
is submitted to Congress.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 5142a the 
following new item:
``5143. Office of Naval Reserve: appointment of Chief.''.

    (c) Chief of Marine Forces Reserve.--(1) Chapter 513 of such title 
is amended by inserting after section 5143 (as added by subsection (b)) 
the following new section:

``Sec. 5144. Office of Marine Forces Reserve: appointment of Commander

    ``(a) Establishment of Office; Commander, Marine Forces Reserve.--
There is in the executive part of the Department of the Navy an Office 
of the Marine Forces Reserve, which is headed by the Commander, Marine 
Forces Reserve. The Commander, Marine Forces Reserve, is the principal 
adviser to the Commandant on Marine Forces Reserve matters.
    ``(b) Appointment.--The President, by and with the advice and 
consent of the Senate, shall appoint the Commander, Marine Forces 
Reserve, from officers of the Marine Corps who--
        ``(1) have had at least 10 years of commissioned service;
        ``(2) are in a grade above colonel; and
        ``(3) have been recommended by the Secretary of the Navy.
    ``(c) Term of Office; Grade.--(1) The Commander, Marine Forces 
Reserve, holds office for a term determined by the Commandant of the 
Marine Corps, normally four years, but may be removed for cause at any 
time. He is eligible to succeed himself.
    ``(2) The Commander, Marine Forces Reserve, while so serving, has a 
grade above brigadier general, without vacating the officer's permanent 
grade.
    ``(d) Annual Report.--(1) The Commander, Marine Forces Reserve, 
shall submit to the Secretary of Defense, through the Secretary of the 
Navy, an annual report on the state of the Marine Corps Reserve and the 
ability of the Marine Corps Reserve to meet its missions. The report 
shall be prepared in conjunction with the Commandant of the Marine 
Corps and may be submitted in classified and unclassified versions.
    ``(2) The Secretary of Defense shall transmit the annual report of 
the Commander, Marine Forces Reserve, under paragraph (1) to Congress, 
together with such comments on the report as the Secretary considers 
appropriate. The report shall be transmitted at the same time each year 
that the annual report of the Secretary under section 113 of this title 
is submitted to Congress.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 5143 (as added 
by subsection (b)) the following new item:

``5144. Office of Marine Forces Reserve: appointment of Commander.''.

    (d) Chief of Air Force Reserve.--Section 8038 of such title is 
amended by adding at the end the following new subsections:
    ``(d) Budget.--The Chief of Air Force Reserve is the official 
within the executive part of the Department of the Air Force who, 
subject to the authority, direction, and control of the Secretary of 
the Air Force and the Chief of Staff, is responsible for preparation, 
justification, and execution of the personnel, operation and 
maintenance, and construction budgets for the Air Force Reserve. As 
such, the Chief of Air Force Reserve is the director and functional 
manager of appropriations made for the Air Force Reserve in those 
areas.
    ``(e) Full Time Support Program.--(1) The Chief of Air Force 
Reserve manages, with respect to the Air Force Reserve, the personnel 
program of the Department of Defense known as the Full Time Support 
Program.
    ``(f) Annual Report.--(1) The Chief of Air Force Reserve shall 
submit to the Secretary of Defense, through the Secretary of the Air 
Force, an annual report on the state of the Air Force Reserve and the 
ability of the Air Force Reserve to meet its missions. The report shall 
be prepared in conjunction with the Chief of Staff of the Air Force and 
may be submitted in classified and unclassified versions.
    ``(2) The Secretary of Defense shall transmit the annual report of 
the Chief of Air Force Reserve under paragraph (1) to Congress, 
together with such comments on the report as the Secretary considers 
appropriate. The report shall be transmitted at the same time each year 
that the annual report of the Secretary under section 113 of this title 
is submitted to Congress.''.
    (e) Conforming Amendment.--Section 641(1)(B) of such title is 
amended by inserting ``5143, 5144,'' after ``3038,''.
SEC. 1213. REVIEW OF ACTIVE DUTY AND RESERVE GENERAL AND FLAG OFFICER 
AUTHORIZATIONS.
    (a) Report to Congress.--Not later than six months after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report containing any recommendations of the Secretary 
(together with the rationale of the Secretary for the recommendations) 
concerning the following:
        (1) Revision of the limitations on general and flag officer 
    grade authorizations and distribution in grade prescribed by 
    sections 525, 526, and 12004 of title 10, United States Code.
        (2) Statutory designation of the positions and grades of any 
    additional general and flag officers in the commands and offices 
    created by sections 1211 and 1212.
    (b) Matters To Be Included.--The Secretary shall include in the 
report under subsection (a) the Secretary's views on whether current 
limitations referred to in subsection (a)--
        (1) permit the Secretaries of the military departments, in view 
    of increased requirements for assignment of general and flag 
    officers in positions external to their organic services, to meet 
    adequately both internal and external requirements for general and 
    flag officers;
        (2) adequately recognize the significantly increased role of 
    the reserve components in both service-specific and joint 
    operations; and
        (3) permit the Secretaries of the military departments and the 
    reserve components to assign general and flag officers to active 
    and reserve component positions with grades commensurate with the 
    scope of duties and responsibilities of the position.
    (c) Exemptions From Active-Duty Ceilings.--(1) The Secretary shall 
include in the report under subsection (a) the Secretary's 
recommendations regarding the merits of exempting from any active-duty 
ceiling (established by law or administrative action) the following 
officers:
        (A) Reserve general and flag officers assigned to positions 
    specified in the organizations created by this title.
        (B) Reserve general and flag officers serving on active duty, 
    but who are excluded from the active-duty list.
    (2) If the Secretary determines under paragraph (1) that any 
Reserve general or flag officers should be exempt from active duty 
limits, the Secretary shall include in the report under subsection (a) 
the Secretary's recommendations for--
        (A) the effective management of those Reserve general and flag 
    officers; and
        (B) revision of active duty ceilings so as to prevent an 
    increase in the numbers of active general and flag officers 
    authorizations due solely to the removal of Reserve general and 
    flag officers from under the active duty authorizations.
    (3) If the Secretary determines under paragraph (1) that active and 
reserve general officers on active duty should continue to be managed 
under a common ceiling, the Secretary shall make recommendations for 
the appropriate apportionment of numbers for general and flag officers 
among active and reserve officers.
    (d) Reserve Forces Policy Board Participation.--The Secretary of 
Defense shall ensure that the Reserve Forces Policy Board participates 
in the internal Department of Defense process for development of the 
recommendations of the Secretary contained in the report under 
subsection (a). If the Board submits to the Secretary any comments or 
recommendations for inclusion in the report, the Secretary shall 
transmit them to Congress, with the report, in the same form as that in 
which they were submitted to the Secretary.
    (e) GAO Review.--The Comptroller General of the United States shall 
assess the criteria used by the Secretary of Defense to develop 
recommendations for purposes of the report under this section and shall 
submit to Congress, not later than 30 days after the date on which the 
report of the Secretary under this section is submitted, a report 
setting forth the Comptroller General's conclusions concerning the 
adequacy and completeness of the recommendations made by the Secretary 
in the report.

SEC. 1214. GUARD AND RESERVE TECHNICIANS.

    Section 10216 of title 10, United States Code, as amended by 
section 413, is amended--
        (1) by redesignating subsections (a), (b), and (c) as 
    subsections (b), (c), and (d), respectively;
        (2) by inserting after the section heading the following new 
    subsection (a):
    ``(a) In General.--Military technicians are Federal civilian 
employees hired under title 5 and title 32 who are required to maintain 
dual-status as drilling reserve component members as a condition of 
their Federal civilian employment. Such employees shall be authorized 
and accounted for as a separate category of dual-status civilian 
employees, exempt as specified in subsection (b)(3) from any general or 
regulatory requirement for adjustments in Department of Defense 
civilian personnel.''; and
        (3) in paragraph (3) of subsection (b), as redesignated by 
    paragraph (1), by striking out ``in high-priority units and 
    organizations specified in paragraph (1)''.

              Subtitle B--Reserve Component Accessibility

SEC. 1231. REPORT TO CONGRESS ON MEASURES TO IMPROVE NATIONAL GUARD AND 
RESERVE ABILITY TO RESPOND TO EMERGENCIES.
    (a) Report.--Not later than six months after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report regarding reserve component responsiveness to both 
domestic emergencies and national contingency operations. The report 
shall set forth the measures taken, underway, and projected to be taken 
to improve the timeliness, adequacy, and effectiveness of reserve 
component responses to such emergencies and operations.
    (b) Matters Related to Responsiveness to Domestic Emergencies.--The 
report shall address the following:
        (1) The need to expand the time period set by section 12301(b) 
    of title 10, United States Code, which permits the involuntary 
    recall at any time to active duty of units and individuals for up 
    to 15 days per year.
        (2) The recommendations of the 1995 report of the RAND 
    Corporation entitled ``Assessing the State and Federal Missions of 
    the National Guard'', as follows:
            (A) That Federal law be clarified and amended to authorize 
        Presidential use of the Federal reserves of all military 
        services for domestic emergencies and disasters without any 
        time constraint.
            (B) That the Secretary of Defense develop and support 
        establishment of an appropriate national level compact for 
        interstate sharing of resources, including the domestic 
        capabilities of the national guards of the States, during 
        emergencies and disasters.
            (C) That Federal level contingency stocks be created to 
        support the National Guard in domestic disasters.
            (D) That Federal funding and regulatory support be provided 
        for Federal-State disaster emergency response planning 
        exercises.
    (c) Matters Related to Presidential Reserve Call-Up Authority.--The 
report under this section shall specifically address matters related to 
the authority of the President to activate for service on active duty 
units and members of reserve components under sections 12301, 12302, 
and 12304 of title 10, United States Code, including--
        (1) whether such authority is adequate to meet the full range 
    of reserve component missions for the 21st century, particularly 
    with regard to the time periods for which such units and members 
    may be on active duty under those authorities and the ability to 
    activate both units and individual members; and
        (2) whether the three-tiered set of statutory authorities 
    (under such sections 12301, 12302, and 12304) should be 
    consolidated, modified, or in part eliminated in order to 
    facilitate current and future use of Reserve units and individual 
    reserve component members for a broader range of missions, and, if 
    so, in what manner.
    (d) Matters Related to Release From Active Duty.--The report under 
this section shall include findings and recommendations (based upon a 
review of current policies and procedures) concerning procedures for 
release from active duty of units and members of reserve components who 
have been involuntarily called or ordered to active duty under section 
12301, 12302, or 12304 of title 10, United States Code, with specific 
recommendations concerning the desirability of statutory provisions 
to--
        (1) establish specific guidelines for when it is appropriate 
    (or inappropriate) to retain on active duty such reserve component 
    units when active component units are available to perform the 
    mission being performed by the reserve component unit;
        (2) minimize the effects of frequent mobilization of the 
    civilian employers, as well as the effects of frequent mobilization 
    on recruiting and retention in the reserve components; and
        (3) address other matters relating to the needs of such members 
    of reserve components, their employers, and (in the case of such 
    members who own businesses) their employees, while such members are 
    on active duty.
    (e) Reserve Forces Policy Board Participation.--The Secretary of 
Defense shall ensure that the Reserve Forces Policy Board participates 
in the internal Department of Defense process for development of the 
recommendations of the Secretary contained in the report under 
subsection (a). If the Board submits to the Secretary any comments or 
recommendations for inclusion in the report, the Secretary shall 
transmit them to Congress, with the report, in the same form as that in 
which they were submitted to the Secretary.
    (f) GAO Review.--The Comptroller General of the United States shall 
assess the criteria used by the Secretary of Defense to develop 
recommendations for purposes of the report under this section and shall 
submit to Congress, not later than 30 days after the date on which the 
report of the Secretary under this section is submitted, a report 
setting forth the Comptroller General's conclusions concerning the 
adequacy and completeness of the recommendations made by the Secretary 
in the report.
SEC. 1232. REPORT TO CONGRESS CONCERNING TAX INCENTIVES FOR EMPLOYERS 
OF MEMBERS OF RESERVE COMPONENTS.
    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report setting 
forth a draft of legislation to provide tax incentives to employers of 
members of reserve components in order to compensate employers for 
absences of those employees due to required training and for absences 
due to performance of active duty.
SEC. 1233. REPORT TO CONGRESS CONCERNING INCOME INSURANCE PROGRAM FOR 
ACTIVATED RESERVISTS.
    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report setting 
forth legislative recommendations for changes to chapter 1214 of title 
10, United States Code. Such recommendations shall in particular 
provide, in the case of a mobilized member who owns a business, income 
replacement for that business and for employees of that member or 
business who have a loss of income during the period of such activation 
attributable to the activation of the member.
SEC. 1234. REPORT TO CONGRESS CONCERNING SMALL BUSINESS LOANS FOR 
MEMBERS RELEASED FROM RESERVE SERVICE DURING CONTINGENCY OPERATIONS.
    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report setting 
forth a draft of legislation to establish a small business loan program 
to provide members of reserve components who are ordered to active duty 
or active Federal service (other than for training) during a 
contingency operation (as defined in section 101 of title 10, United 
States Code) low-cost loans to assist those members in retaining or 
rebuilding businesses that were affected by their service on active 
duty or in active Federal service.

                 Subtitle C--Reserve Forces Sustainment

SEC. 1251. REPORT CONCERNING TAX DEDUCTIBILITY OF NONREIMBURSABLE 
EXPENSES.
    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report setting 
forth a draft of legislation to restore the tax deductibility of 
nonreimbursable expenses incurred by members of reserve components in 
connection with military service.
SEC. 1252. AUTHORITY TO PAY TRANSIENT HOUSING CHARGES FOR MEMBERS 
PERFORMING ACTIVE DUTY FOR TRAINING.
    Section 404(j)(1) of title 37, United States Code, is amended by 
striking out ``annual training duty'' and inserting in lieu thereof 
``active duty for training''.
SEC. 1253. SENSE OF CONGRESS CONCERNING QUARTERS ALLOWANCE DURING 
SERVICE ON ACTIVE DUTY FOR TRAINING.
    It is the sense of Congress that the United States should continue 
to pay members of reserve components appropriate quarters allowances 
during periods of service on active duty for training.
SEC. 1254. SENSE OF CONGRESS CONCERNING MILITARY LEAVE POLICY.
    It is the sense of Congress that military leave policies in effect 
as of the date of the enactment of this Act with respect to members of 
the reserve components should not be changed.
SEC. 1255. RESERVE FORCES POLICY BOARD.
    (a) Commendation.--The Congress commends the Reserve Forces Policy 
Board, created by the Armed Forces Reserve Act of 1952 (Public Law 82-
476), for its fine work in the past as an independent source of advice 
to the Secretary of Defense on all matters pertaining to the reserve 
components.
    (b) Sense of Congress.--It is the sense of Congress that the 
Reserve Forces Policy Board and the reserve forces policy committees 
for the individual branches of the ArmedForces should continue to 
perform the vital role of providing the civilian leadership of the 
Department of Defense with independent advice on matters pertaining to 
the reserve components.
    (c) Annual Report of Reserve Forces Policy Board.--Section 113(c) 
of title 10, United States Code, is amended--
        (1) by striking out paragraph (3);
        (2) by redesignating paragraphs (1), (2), and (4) as 
    subparagraphs (A), (B), and (C), respectively;
        (3) by inserting ``(1)'' after ``(c)'';
        (4) by inserting ``and'' at the end of subparagraph (B), as 
    redesignated by paragraph (2); and
        (5) by adding at the end the following:
    ``(2) At the same time that the Secretary submits the annual report 
under paragraph (1), the Secretary shall transmit to the President and 
Congress a separate report from the Reserve Forces Policy Board on the 
reserve programs of the Department of Defense and on any other matters 
that the Reserve Forces Policy Board considers appropriate to include 
in the report.''.
SEC. 1256. REPORT ON PARITY OF BENEFITS FOR ACTIVE DUTY SERVICE AND 
RESERVE SERVICE.
    No later than six months after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report 
providing recommendations for changes in law that the Secretary 
considers necessary, feasible, and affordable to reduce the disparities 
in pay and benefits that occur between active component members of the 
Armed Forces and reserve component members as a result of eligibility 
based on length of time on active duty.
SEC. 1257. INFORMATION ON PROPOSED FUNDING FOR THE GUARD AND RESERVE 
COMPONENTS IN FUTURE-YEARS DEFENSE PROGRAMS.
    (a) In General.--(1) Chapter 1013 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 10543. National Guard and reserve component equipment 
            procurement and military construction funding: inclusion in 
            future-years defense program

    ``The Secretary of Defense shall specify in each future-years 
defense program submitted to Congress under section 221 of this title 
the estimated expenditures and the proposed appropriations, for each 
fiscal year of the period covered by that program, for the procurement 
of equipment and for military construction for each of the reserve 
components of the armed forces.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``10543. National Guard and reserve component equipment procurement and 
          military construction funding: inclusion in future-years 
          defense program.''.

    (b) Effective Date.--Section 10543 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to each future-
years defense program submitted to Congress after the date of the 
enactment of this Act.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Subtitle A--Arms Control, Counterpro- liferation Activities, and Related 
                                 Matters

Sec. 1301. Extension of counterproliferation authorities.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
          nuclear delivery systems.
Sec. 1303. Strengthening certain sanctions against nuclear proliferation 
          activities.
Sec. 1304. Authority to pay certain expenses relating to humanitarian 
          and civic assistance for clearance of landmines.
Sec. 1305. Report on military capabilities of People's Republic of 
          China.
Sec. 1306. Presidential report regarding weapons proliferation and 
          policies of the People's Republic of China.
Sec. 1307. United States-People's Republic of China Joint Defense 
          Conversion Commission.
Sec. 1308. Sense of Congress concerning export controls.
Sec. 1309. Counterproliferation Program Review Committee.
Sec. 1310. Sense of Congress concerning assisting other countries to 
          improve security of fissile material.
Sec. 1311. Review by Director of Central Intelligence of National 
          Intelligence Estimate 95-19.

  Subtitle B--Commission to Assess the Ballistic Missile Threat to the 
                              United States

Sec. 1321. Establishment of Commission.
Sec. 1322. Duties of Commission.
Sec. 1323. Report.
Sec. 1324. Powers.
Sec. 1325. Commission procedures.
Sec. 1326. Personnel matters.
Sec. 1327. Miscellaneous administrative provisions.
Sec. 1328. Funding.
Sec. 1329. Termination of the Commission.

   Subtitle A--Arms Control, Counter- proliferation Activities, and 
                            Related Matters

SEC. 1301. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES.
    (a) One-Year Extension of Authority.--Section 1505 of the Weapons 
of Mass Destruction Control Act of 1992 (title XV of Public Law 102-
484; 22 U.S.C. 5859a) is amended--
        (1) in subsection (d)(3), by striking out ``or'' after ``fiscal 
    year 1995,'' and by inserting ``, or $15,000,000 for fiscal year 
    1997'' before the period at the end; and
        (2) in subsection (f), by striking out ``1996'' and inserting 
    in lieu thereof ``1997''.
    (b) Funding Flexibility.--Subsection (d) of such section is further 
amended by adding at the end the following new paragraph:
    ``(4)(A) In the event of a significant unforeseen development 
related to the activities of the United Nations Special Commission on 
Iraq for which the Secretary of Defense determines that financial 
assistance under this section is required at a level which would result 
in the total amount of assistance provided under this section during 
the then-current fiscal year exceeding the amount specified with 
respect to that year under paragraph (3), the Secretary of Defense may 
provide such assistance notwithstanding the limitation with respect to 
that fiscal year under paragraph (3). Funds for such purpose may be 
derived from any funds available to the Department of Defense for that 
fiscal year.
    ``(B) Financial assistance may be provided under subparagraph (A) 
only after the Secretary of Defense provides notice in writing to the 
committees of Congress named in subsection (e)(2) of the significant 
unforeseen development and of the Secretary's intent to provide 
assistance in excess of the limitation for that fiscal year under 
paragraph (3). However, if the Secretary determines in any case that 
under the specific circumstances of that case advance notice is not 
possible, such notice shall be provided as soon as possible and not 
later than 15 days after the date on which the assistance is provided. 
Any notice under this subparagraph shall include a description of the 
development, the amount of assistance provided or to be provided, and 
the source of the funds for that assistance.''.

SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC 
              NUCLEAR DELIVERY SYSTEMS.

    (a) Funding Limitation.--Funds available to the Department of 
Defense may not be obligated or expended during fiscal year 1997 for 
retiring or dismantling, or for preparing to retire or dismantle, any 
of the following strategic nuclear delivery systems:
        (1) B-52H bomber aircraft.
        (2) Trident ballistic missile submarines.
        (3) Minuteman III intercontinental ballistic missiles.
        (4) Peacekeeper intercontinental ballistic missiles.
    (b) Waiver Authority.--If the START II Treaty enters into force 
during fiscal year 1996 or fiscal year 1997, the Secretary of Defense 
may waive the application of the limitation under paragraphs (2), (3), 
and (4) of subsection (a) to Trident ballistic missile submarines, 
Minuteman III intercontinental ballistic missiles, and Peacekeeper 
intercontinental ballistic missiles, respectively, to the extent that 
the Secretary determines necessary in order to implement the treaty.
    (c) Funding Limitation on Early Deactivation.--(1) If the 
limitation under paragraphs (2), (3), and (4) of subsection (a) ceases 
to apply by reason of a waiver under subsection (b), funds available to 
the Department of Defense may nevertheless not be obligated or expended 
during fiscal year 1997 to implement any agreement or understanding to 
undertake substantial early deactivation of a strategic nuclear 
delivery system specified in subsection (b) until 30 days after the 
date on which the President submits to Congress a report concerning 
such actions.
    (2) For purposes of this subsection, a substantial early 
deactivation is an action during fiscal year 1997 to deactivate a 
substantial number of strategic nuclear delivery systems specified in 
subsection (b) by--
        (A) removing nuclear warheads from those systems; or
        (B) taking other steps to remove those systems from combat 
    status.
    (3) A report under this subsection shall include the following:
        (A) The text of any understanding or agreement between the 
    United States and the Russian Federation concerning substantial 
    early deactivation of strategic nuclear delivery systems under the 
    START II Treaty.
        (B) The plan of the Department of Defense for implementing the 
    agreement.
        (C) An assessment of the Secretary of Defense of the adequacy 
    of the provisions contained in the agreement for monitoring and 
    verifying compliance of Russia with the terms of the agreement.
        (D) A determination by the President as to whether the 
    deactivations to occur under the agreement will be carried out in a 
    symmetrical, reciprocal, or equivalent manner.
        (E) An assessment by the President of the effect of the 
    proposed early deactivation on the stability of the strategic 
    balance and relative strategic nuclear capabilities of the United 
    States and the Russian Federation at various stages during 
    deactivation and upon completion.
    (d) START II Treaty Defined.--For purposes of this section, the 
term ``START II Treaty'' means the Treaty Between the United States of 
America and the Russian Federation on Further Reduction and Limitation 
of Strategic Offensive Arms, signed at Moscow on January 3, 1993, 
including the following protocols and memorandum of understanding, all 
such documents being integral parts of and collectively referred to as 
the ``START II Treaty'' (contained in Treaty Document 103-1):
        (1) The Protocol on Procedures Governing Elimination of Heavy 
    ICBMs and on Procedures Governing Conversion of Silo Launchers of 
    Heavy ICBMs Relating to the Treaty Between the United States of 
    America and the Russian Federation on Further Reduction and 
    Limitation of Strategic Offensive Arms (also known as the 
    ``Elimination and Conversion Protocol'').
        (2) The Protocol on Exhibitions and Inspections of Heavy 
    Bombers Relating to the Treaty Between the United States and the 
    Russian Federation on Further Reduction and Limitation of Strategic 
    Offensive Arms (also known as the ``Exhibitions and Inspections 
    Protocol'').
        (3) The Memorandum of Understanding on Warhead Attribution and 
    Heavy Bomber Data Relating to the Treaty Between the United States 
    of America and the Russian Federation on Further Reduction and 
    Limitation of Strategic Offensive Arms (also known as the 
    ``Memorandum on Attribution'').
    (e) Retention of B-52H Aircraft on Active Status.--(1) The 
Secretary of the Air Force shall maintain in active status (including 
the performance of standard maintenance and upgrades) the current fleet 
of B-52H bomber aircraft.
    (2) For purposes of carrying out upgrades of B-52H bomber aircraft 
during fiscal year 1997, the Secretary shall treat the entire current 
fleet of such aircraft as aircraft expected to be maintained in active 
status during the six-year period beginning on October 1, 1996.
SEC. 1303. STRENGTHENING CERTAIN SANCTIONS AGAINST NUCLEAR 
PROLIFERATION ACTIVITIES.
    (a) Sanctions.--Section 2(b)(4) of the Export-Import Bank Act of 
1945 (12 U.S.C. 635(b)(4)) is amended to read as follows:
        ``(4)(A) If the Secretary of State determines that--
            ``(i) any country that has agreed to International Atomic 
        Energy Agency nuclear safeguards materially violates, 
        abrogates, or terminates, after October 26, 1977, such 
        safeguards;
            ``(ii) any country that has entered into an agreement for 
        cooperation concerning the civil use of nuclear energy with the 
        United States materially violates, abrogates, or terminates, 
        after October 26, 1977, any guarantee or other undertaking to 
        the United States made in such agreement;
            ``(iii) any country that is not a nuclear-weapon state 
        detonates, after October 26, 1977, a nuclear explosive device;
            ``(iv) any country willfully aids or abets, after June 29, 
        1994, any non-nuclear-weapon state to acquire any such nuclear 
        explosive device or to acquire unsafeguarded special nuclear 
        material; or
            ``(v) any person knowingly aids or abets, after the date of 
        enactment of the National Defense Authorization Act for Fiscal 
        Year 1997, any non-nuclear-weapon state to acquire any such 
        nuclear explosive device or to acquire unsafeguarded special 
        nuclear material,
    then the Secretary of State shall submit a report to the 
    appropriate committees of the Congress and to the Board of 
    Directors of the Bank stating such determination and identifying 
    each country or person the Secretary determines has so acted.
        ``(B)(i) If the Secretary of State makes a determination under 
    subparagraph (A)(v) with respect to a foreign person, the Congress 
    urges the Secretary to initiate consultations immediately with the 
    government with primary jurisdiction over that person with respect 
    to the imposition of the prohibition contained in subparagraph (C).
        ``(ii) In order that consultations with that government may be 
    pursued, the Board of Directors of the Bank shall delay imposition 
    of the prohibition contained in subparagraph (C) for up to 90 days 
    if the Secretary of State requests the Board to make such delay. 
    Following these consultations, the prohibition contained in 
    subparagraph (C) shall apply immediately unless the Secretary 
    determines and certifies to the Congress that that government has 
    taken specific and effective actions, including appropriate 
    penalties, to terminate the involvement of the foreign person in 
    the activities described in subparagraph (A)(v). The Board of 
    Directors of the Bank shall delay the imposition of the prohibition 
    contained in subparagraph (C) for up to an additional 90 days if 
    the Secretary requests the Board to make such additional delay and 
    if the Secretary determines and certifies to the Congress that that 
    government is in the process of taking the actions described in the 
    preceding sentence.
        ``(iii) Not later than 90 days after making a determination 
    under subparagraph (A)(v), the Secretary of State shall submit to 
    the appropriate committees of the Congress a report on the status 
    of consultations with the appropriate government under this 
    subparagraph, and thebasis for any determination under clause (ii) 
that such government has taken specific corrective actions.
        ``(C) The Board of Directors of the Bank shall not give 
    approval to guarantee, insure, or extend credit, or participate in 
    the extension of credit in support of United States exports to any 
    country, or to or by any person, identified in the report described 
    in subparagraph (A).
        ``(D) The prohibition in subparagraph (C) shall not apply to 
    approvals to guarantee, insure, or extend credit, or participate in 
    the extension of credit in support of United States exports to a 
    country with respect to which a determination is made under clause 
    (i), (ii), (iii), or (iv) of subparagraph (A) regarding any 
    specific event described in such clause if the President determines 
    and certifies in writing to the Congress not less than 45 days 
    prior to the date of the first approval following the determination 
    that it is in the national interest for the Bank to give such 
    approvals.
        ``(E) The prohibition in subparagraph (C) shall not apply to 
    approvals to guarantee, insure, or extend credit, or participate in 
    the extension of credit in support of United States exports to or 
    by a person with respect to whom a determination is made under 
    clause (v) of subparagraph (A) regarding any specific event 
    described in such clause if--
            ``(i) the Secretary of State determines and certifies to 
        the Congress that the appropriate government has taken the 
        corrective actions described in subparagraph (B)(ii); or
            ``(ii) the President determines and certifies in writing to 
        the Congress not less than 45 days prior to the date of the 
        first approval following the determination that--
                ``(I) reliable information indicates that--

                    ``(aa) such person has ceased to aid or abet any 
                non-nuclear-weapon state to acquire any nuclear 
                explosive device or to acquire unsafeguarded special 
                nuclear material; and
                    ``(bb) steps have been taken to ensure that the 
                activities described in item (aa) will not resume; or

                ``(II) the prohibition would have a serious adverse 
            effect on vital United States interests.
        ``(F) For purposes of this paragraph:
            ``(i) The term `country' has the meaning given to `foreign 
        state' in section 1603(a) of title 28, United States Code.
            ``(ii) The term `knowingly' is used within the meaning of 
        the term `knowing' in section 104(h)(3) of the Foreign Corrupt 
        Practices Act (15 U.S.C. 78dd-2(h)(3)).
            ``(iii) The term `person' means a natural person as well as 
        a corporation, business association, partnership, society, 
        trust, any other nongovernmental entity, organization, or 
        group, and any governmental entity operating as a business 
        enterprise, and any successor of any such entity.
            ``(iv) The term `nuclear-weapon state' has the meaning 
        given the term in Article IX(3) of the Treaty on the Non-
        Proliferation of Nuclear Weapons, signed at Washington, London, 
        and Moscow on July 1, 1968.
            ``(v) The term `non-nuclear-weapon state' has the meaning 
        given the term in section 830(5) of the Nuclear Proliferation 
        Prevention Act of 1994 (Public Law 103-236; 108 Stat. 521).
            ``(vi) The term `nuclear explosive device' has the meaning 
        given the term in section 830(4) of the Nuclear Proliferation 
        Prevention Act of 1994 (Public Law 103-236; 108 Stat. 521).
            ``(vii) The term `unsafeguarded special nuclear material' 
        has the meaning given the term in section 830(8) of the Nuclear 
        Proliferation Prevention Act of 1994.''.
    (b) Recommendations To Make Nonproliferation Laws More Effective.--
Not later than 180 days after the date of the enactment of this Act, 
the President shall submit to the Congress his recommendations on ways 
to make the laws of the United States more effective in controlling and 
preventing the proliferation of weapons of mass destruction and 
missiles. The report shall identify all sources of Government funds 
used for such nonproliferation activities.
SEC. 1304. AUTHORITY TO PAY CERTAIN EXPENSES RELATING TO HUMANITARIAN 
AND CIVIC ASSISTANCE FOR CLEARANCE OF LANDMINES.
    (a) Authority To Pay Expenses.--Section 401(c) of title 10, United 
States Code, is amended--
        (1) by redesignating paragraph (2) as paragraph (4); and
        (2) by inserting after paragraph (1) the following new 
    paragraphs:
    ``(2) Expenses covered by paragraph (1) include the following 
expenses incurred in providing assistance described in subsection 
(e)(5):
        ``(A) Travel, transportation, and subsistence expenses of 
    Department of Defense personnel providing such assistance.
        ``(B) The cost of any equipment, services, or supplies acquired 
    for the purpose of carrying out or supporting the activities 
    described in subsection (e)(5), including any nonlethal, 
    individual, or small-team landmine clearing equipment or supplies 
    that are to be transferred or otherwise furnished to a foreign 
    country in furtherance of the provision of assistance under this 
    section.
    ``(3) The cost of equipment, services, and supplies provided in any 
fiscal year under paragraph (2)(B) may not exceed $5,000,000.''.
    (b) Coordination With Other Laws.--Section 401(b) of such title is 
amended--
        (1) by inserting ``(1)'' after ``(b)''; and
        (2) by adding at the end the following:
    ``(2) Any authority provided under any other provision of law to 
provide assistance that is described in subsection (e)(5) to a foreign 
country shall be carried out in accordance with, and subject to, the 
limitations prescribed in this section. Any such provision may be 
construed as superseding a provision of this section only if, and to 
the extent that, such provision specifically refers to this section and 
specifically identifies the provision of this section that is to be 
considered superseded or otherwise inapplicable under such 
provision.''.
SEC. 1305. REPORT ON MILITARY CAPABILITIES OF PEOPLE'S REPUBLIC OF 
CHINA.
    (a) Report.--The Secretary of Defense shall prepare a report, in 
both classified and unclassified form, on the future pattern of 
military modernization of the People's Republic of China. The report 
shall address both the probable course of military-technological 
development in the People's Liberation Army and the development of 
Chinese military strategy and operational concepts.
    (b) Matters To Be Included.--The report shall include analyses and 
forecasts of the following:
        (1) Trends that would lead the People's Republic of China 
    toward advanced intelligence, surveillance, and reconnaissance 
    capabilities, either through a development program or by gaining 
    access to commercial or third-party systems with militarily 
    significant capabilities.
        (2) Efforts by the People's Republic of China to develop highly 
    accurate and low-observable ballistic and cruise missiles, and the 
    investments in infrastructure that would allow for production of 
    such weapons in militarily significant quantities, particularly in 
    numbers sufficient to conduct attacks capable of overwhelming 
    projected defense capabilities in the region.
        (3) Development by the People's Republic of China of enhanced 
    command and control networks, particularly those capable of battle 
    management that would include long-range precision strikes.
        (4) Programs of the People's Republic of China involving 
    unmanned aerial vehicles, particularly those with extended ranges 
    or loitering times.
        (5) Exploitation by the People's Republic of China of the 
    Global Positioning System or other similar systems, including 
    commercial land surveillance satellites, for significant military 
    purposes, including particularly for increasing the accuracy of 
    weapons or the situational awareness of operating forces.
        (6) Development by the People's Republic of China of 
    capabilities for denial of sea control, such as advanced sea mines 
    or improved submarine capabilities.
        (7) Continued development by the People's Republic of China of 
    follow-on forces, particularly those capable of rapid air or 
    amphibious assault.
    (c) Submission of Report.--The report shall be submitted to 
Congress not later than February 1, 1997.
SEC. 1306. PRESIDENTIAL REPORT REGARDING WEAPONS PROLIFERATION AND 
POLICIES OF THE PEOPLE'S REPUBLIC OF CHINA.
    (a) Findings.--The Congress finds that--
        (1) the People's Republic of China acceded to the Treaty on the 
    Non-Proliferation of Nuclear Weapons (hereafter in this section 
    referred to as the ``NPT'') on March 9, 1992;
        (2) the People's Republic of China is not a member of the 
    Nuclear Suppliers Group and remains the only major nuclear supplier 
    that continues to transfer nuclear technology, equipment, and 
    materials to countries that have not agreed to the application of 
    safeguards of the International Atomic Energy Agency (hereafter in 
    this section referred to as the ``IAEA'') over all of their nuclear 
    materials;
        (3) on June 30, 1995, the United States and 29 other members of 
    the Nuclear Suppliers Group notified the Director General of the 
    IAEA that the Government of each respective country has decided 
    that the controls of thatGroup should not be defeated by the 
transfer of component parts;
        (4) a state-owned entity in the People's Republic of China, the 
    China Nuclear Energy Industry Corporation, has knowingly 
    transferred specially designed ring magnets to an unsafeguarded 
    uranium enrichment facility in the Islamic Republic of Pakistan;
        (5) ring magnets are identified on the Trigger List of the 
    Nuclear Suppliers Group as a component of magnetic suspension 
    bearings which are to be exported only to countries that have 
    safeguards of the IAEA over all of their nuclear materials;
        (6) these ring magnets could contribute significantly to the 
    ability of the Islamic Republic of Pakistan to produce additional 
    unsafeguarded enriched uranium, a nuclear explosive material;
        (7) the Government of the People's Republic of China has 
    transferred nuclear equipment and technology to the Islamic 
    Republic of Iran, despite repeated claims by the Government of the 
    United States that the Islamic Republic of Iran is engaged in 
    clandestine efforts to acquire a nuclear explosive device;
        (8) representatives of the Government of the People's Republic 
    of China have repeatedly assured the Government of the United 
    States that the People's Republic of China would abide by the 
    guidelines of the Missile Technology Control Regime (hereafter in 
    this section referred to as the ``MTCR'');
        (9) the Government of China has transferred M-11 missiles to 
    the Islamic Republic of Pakistan; and
        (10) the M-11 missile conforms to the definition of a nuclear-
    capable missile under the MTCR.
    (b) Sense of the Congress.--It is the sense of the Congress that--
        (1) the assistance that the People's Republic of China has 
    provided to the Islamic Republic of Iran and to the Islamic 
    Republic of Pakistan could contribute to the ability of such 
    countries to manufacture nuclear weapons;
        (2) the recent transfer by the People's Republic of China of 
    ring magnets to an unsafeguarded uranium enrichment facility in the 
    Islamic Republic of Pakistan conflicts with China's obligations 
    under Articles I and III of the NPT, as well as the official 
    nonproliferation policies and assurances by the People's Republic 
    of China and the Islamic Republic of Pakistan with respect to the 
    nonproliferation of nuclear weapons and nuclear-capable missiles;
        (3) the transfer of M-11 missiles from the People's Republic of 
    China to the Islamic Republic of Pakistan is inconsistent with 
    longstanding United States Government interpretations of assurances 
    from the Government of the People's Republic of China with respect 
    to that country's intent to abide by the guidelines of the MTCR;
        (4) violations by the People's Republic of China of the 
    standards and objectives of the MTCR and global nuclear 
    nonproliferation regimes have jeopardized the credibility of the 
    MTCR and such regimes;
        (5) the MTCR and global nuclear nonproliferation regimes 
    require collective international action to impose costs against and 
    to withhold benefits from any country, including the People's 
    Republic of China, that engages in activities that are contrary to 
    the objectives of those regimes;
        (6) the President should explore with the governments of other 
    countries new opportunities for collective action in response to 
    activities of any country, including the People's Republic of 
    China, that aid or abet the global proliferation of weapons of mass 
    destruction or their means of delivery; and
        (7) the President should communicate to the Government of the 
    People's Republic of China the sense of the Congress that the 
    stability and growth of future relations between the people, the 
    economies, and the Governments of the United States and the 
    People's Republic of China willsignificantly depend upon 
substantive evidence of cooperation by the Government of the People's 
Republic of China in efforts to halt the global proliferation of 
weapons of mass destruction and their means of delivery.
    (c) Report.--Not later than 60 days after the date of the enactment 
of this Act, the President shall submit to the Congress a report, in 
both classified and unclassified form, concerning the transfer from the 
People's Republic of China to the Islamic Republic of Pakistan of 
technology, equipment, or materials important to the production of 
nuclear weapons and their means of delivery. The President shall 
include in the report the following:
        (1) The specific justification of the Secretary of State for 
    determining that there was not a sufficient basis for imposing 
    sanctions under section 2(b)(4) of the Export-Import Bank Act of 
    1945, as amended by section 825 of the Nuclear Proliferation 
    Prevention Act of 1994, by reason of the transfer of ring magnets 
    and other technology, equipment, or materials from the People's 
    Republic of China to the Islamic Republic of Pakistan.
        (2) What commitment the United States Government is seeking 
    from the People's Republic of China to ensure that the People's 
    Republic of China establishes a fully effective export control 
    system that will prevent transfers (such as the Pakistan sale) from 
    taking place in the future.
        (3) A description of the pledges, assurances, and other 
    commitments made by representatives of the Governments of the 
    People's Republic of China and the Islamic Republic of Pakistan to 
    the Government of the United States since January 1, 1991, with 
    respect to the nonproliferation of nuclear weapons or nuclear-
    capable missiles, and an assessment of the record of compliance 
    with such undertakings.
        (4) Whether, in light of the recent assurances provided by the 
    People's Republic of China, the President intends to make the 
    certification and submit the report required by section 
    902(a)(6)(B) of the Foreign Relations Authorization Act, Fiscal 
    Years 1990 and 1991 (22 U.S.C. 2151 note), and make the 
    certification and submit the report required by Public Law 99-183, 
    relating to the approval and implementation of the agreement for 
    nuclear cooperation between the United States and the People's 
    Republic of China, and, if not, why not.
        (5) Whether the Secretary of State considers the recent 
    assurances and clarifications provided by the People's Republic of 
    China to have provided sufficient information to allow the United 
    States to determine that the People's Republic of China is not in 
    violation of paragraph (2) of section 129 of the Atomic Energy Act 
    of 1954, as required by Public Law 99-183.
        (6) If the President is unable or unwilling to make the 
    certifications and reports referred to in paragraph (4), a 
    description of what the President considers to be the significance 
    of the clarifications and assurances provided by the People's 
    Republic of China in the course of the recent discussions regarding 
    the transfer by the People's Republic of China of nuclear-weapon-
    related equipment to the Islamic Republic of Pakistan.
        (7) A description of the laws, regulations, and procedures 
    currently used by the People's Republic of China to regulate 
    exports of nuclear technology, equipment, or materials, including 
    dual-use goods, and an assessment of the effectiveness of such 
    arrangements.
        (8) A description of the current policies and practices of 
    other countries in response to the transfer of nuclear and missile 
    technology by the People's Republic of China to the Islamic 
    Republic of Pakistan and the Islamic Republic of Iran.
SEC. 1307. UNITED STATES-PEOPLE'S REPUBLIC OF CHINA JOINT DEFENSE 
CONVERSION COMMISSION.
    None of the funds appropriated or otherwise available for the 
Department of Defense for fiscal year 1997 or any prior fiscal year may 
be obligated or expended for any activity associated with the United 
States-People's Republic of China JointDefense Conversion Commission 
until 15 days after the date on which the first semiannual report 
required by section 1343 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 487) is received by 
Congress.

SEC. 1308. SENSE OF CONGRESS CONCERNING EXPORT CONTROLS.

    (a) Findings.--The Congress makes the following findings:
        (1) Export controls are a part of a comprehensive response to 
    national security threats. The export of a United States commodity 
    or technology should be restricted in cases in which the export of 
    the commodity or technology would increase the threat to the 
    national security of the United States or would be contrary to the 
    nonproliferation goals or foreign policy interests of the United 
    States.
        (2) The export of certain commodities and technology may 
    adversely affect the national security and foreign policy of the 
    United States by making a significant contribution to the military 
    potential of countries or by enhancing the capability of countries 
    to design, develop, test, produce, stockpile, or use weapons of 
    mass destruction and missile delivery systems, and other 
    significant military capabilities. Therefore, the administration of 
    export controls should emphasize the control of these exports.
        (3) The acquisition of sensitive commodities and technologies 
    by those countries and end users whose actions or policies run 
    counter to United States national security or foreign policy 
    interests may enhance the military capabilities of those countries, 
    particularly their ability to design, develop, test, produce, 
    stockpile, use, and deliver nuclear, chemical, and biological 
    weapons and missile delivery systems, and other significant 
    military capabilities. This enhancement threatens the security of 
    the United States and its allies. The availability to countries and 
    end users of items that contribute to military capabilities or the 
    proliferation of weapons of mass destruction is a fundamental 
    concern of the United States and should be eliminated through 
    deterrence, negotiations, and other appropriate means whenever 
    possible.
        (4) The national security of the United States depends not only 
    on wise foreign policies and a strong defense, but also a vibrant 
    national economy. To be truly effective, export controls should be 
    applied uniformly by all suppliers.
        (5) On November 8, 1995, the President continued the national 
    emergency declared in Executive Order No. 12938 of November 14, 
    1994, ``with respect to the unusual and extraordinary threat to the 
    national security, foreign policy, and economy of the United States 
    posed by the proliferation of nuclear, biological, and chemical 
    weapons and the means of delivering such weapons''.
        (6) A successor regime to COCOM (the Coordinating Committee for 
    Multilateral Export Controls) has not been established. Currently, 
    each nation is determining independently which dual-use military 
    items, if any, will be controlled for export.
        (7) The United States should play a leading role in promoting 
    transparency and responsibility with regard to the transfers of 
    sensitive dual-use goods and technologies.
    (b) Sense of Congress.--It is the sense of the Congress that--
        (1) establishing an international export control regime, 
    empowered to control exports of dual-use technology, is critically 
    important and should be a top priority for the United States; and
        (2) the United States should strongly encourage its allies and 
    other friendly countries to--
            (A) adopt export controls that are the same or similar to 
        the export controls imposed by the United States on items on 
        the Commerce Control List;
            (B) strengthen enforcement of their export controls; and
            (C) explore the use of unilateral export controls where the 
        possibility exists that an export could contribute to the 
        enhancement of military capabilities orproliferation described 
in paragraphs (3) and (5) of subsection (a).

SEC. 1309. COUNTERPROLIFERATION PROGRAM REVIEW COMMITTEE.

    (a) Composition of the Committee.--Subsection (a) of section 1605 
of the National Defense Authorization Act for Fiscal Year 1994 (22 
U.S.C. 2751 note) is amended by adding at the end the following new 
paragraph:
    ``(5) The Assistant to the Secretary of Defense for Nuclear and 
Chemical and Biological Defense Programs shall serve as executive 
secretary to the committee.''.
    (b) Additional Purpose of the Committee.--Subsection (b)(1)(A) of 
such section is amended by inserting ``and efforts, including efforts 
to stem the proliferation of weapons of mass destruction and to negate 
paramilitary and terrorist threats involving weapons of mass 
destruction'' after ``counterproliferation policy''.
    (c) Four-Year Extension of the Committee.--Subsection (f) of such 
section is amended by striking out ``September 30, 1996'' and inserting 
in lieu thereof ``September 30, 2000''.
    (d) Reports on Counterproliferation Activities and Programs.--
Section 1503 of the National Defense Authorization Act for Fiscal Year 
1995 (22 U.S.C. 2751 note) is amended--
        (1) in subsection (a)--
            (A) by striking out ``Report Required.--(1) Not later than 
        May 1, 1995 and May 1, 1996, the Secretary'' and inserting in 
        lieu thereof ``Annual Report Required.--Not later than May 1 of 
        each year, the Secretary''; and
            (B) by striking out paragraph (2); and
        (2) by adding at the end the following new subsections:
    ``(d) Review Committee Charter Defined.--For purposes of this 
section, the term `Review Committee charter' means section 1605 of the 
National Defense Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 
note).
    ``(e) Termination of Requirement.--The final report required under 
subsection (a) is the report for the year following the year in which 
the Counterproliferation Program Review Committee established under the 
Review Committee Charter ceases to exist.''.
SEC. 1310. SENSE OF CONGRESS CONCERNING ASSISTING OTHER COUNTRIES TO 
IMPROVE SECURITY OF FISSILE MATERIAL.
    (a) Findings.--Congress finds the following:
        (1) With the end of the Cold War, the world is faced with the 
    need to manage the dismantling of vast numbers of nuclear weapons 
    and the disposition of the fissile materials that they contain.
        (2) If recently agreed reductions in nuclear weapons are fully 
    implemented, tens of thousands of nuclear weapons, containing a 
    hundred tons or more of plutonium and many hundreds of tons of 
    highly enriched uranium, will no longer be needed for military 
    purposes.
        (3) Plutonium and highly enriched uranium are the essential 
    ingredients of nuclear weapons.
        (4) Limits on access to plutonium and highly enriched uranium 
    are the primary technical barrier to acquiring nuclear weapons 
    capability in the world today.
        (5) Several kilograms of plutonium, or several times that 
    amount of highly enriched uranium, are sufficient to make a nuclear 
    weapon.
        (6) Plutonium and highly enriched uranium will continue to pose 
    a potential threat for as long as they exist.
        (7) Action is required to secure and account for plutonium and 
    highly enriched uranium.
        (8) It is in the national interest of the United States to--
            (A) minimize the risk that fissile materials could be 
        obtained by unauthorized parties;
            (B) minimize the risk that fissile materials could be 
        reintroduced into the arsenals from which they came, halting or 
        reversing the arms reduction process; and
            (C) strengthen the national and international control 
        mechanisms and incentives designed to ensure continued arms 
        reductions and prevent the spread of nuclear weapons.
    (b) Sense of Congress.--In light of the findings contained in 
subsection (a), it is the sense of Congress that the United States has 
a national security interest in assisting other countries to improve 
the security of their stocks of fissile material.
SEC. 1311. REVIEW BY DIRECTOR OF CENTRAL INTELLIGENCE OF NATIONAL 
INTELLIGENCE ESTIMATE 95-19.
    (a) Review.--The Director of Central Intelligence shall conduct a 
review of the underlying assumptions and conclusions of the National 
Intelligence Estimate designated as NIE 95-19 and entitled ``Emerging 
Missile Threats to North America During the Next 15 Years'', released 
by the Director in November 1995.
    (b) Methodology for Review.--The Director shall carry out the 
review under subsection (a) through a panel of independent, 
nongovernmental individuals with appropriate expertise and experience. 
Such a panel shall be convened by the Director not later than 45 days 
after the date of the enactment of this Act.
    (c) Report.--The Director shall submit the findings resulting from 
the review under subsection (a), together with any comments of the 
Director on the review and the findings, to Congress not later than 
three months after the appointment of the Commission under section 
1321.

 Subtitle B--Commission To Assess the Ballistic Missile Threat to the 
                             United States

SEC. 1321. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``Commission To Assess the Ballistic Missile Threat to the 
United States'' (hereafter in this subtitle referred to as the 
``Commission'').
    (b) Composition.--The Commission shall be composed of nine members 
appointed by the Director of Central Intelligence. In selecting 
individuals for appointment to the Commission, the Director should 
consult with--
        (1) the Speaker of the House of Representatives concerning the 
    appointment of three of the members of the Commission;
        (2) the majority leader of the Senate concerning the 
    appointment of three of the members of the Commission; and
        (3) the minority leader of the House of Representatives and the 
    minority leader of the Senate concerning the appointment of three 
    of the members of the Commission.
    (c) Qualifications.--Members of the Commission shall be appointed 
from among private United States citizens with knowledge and expertise 
in the political and military aspects of proliferation of ballistic 
missiles and the ballistic missile threat to the United States.
    (d) Chairman.--The Speaker of the House of Representatives, after 
consultation with the majority leader of the Senate and the minority 
leaders of the House of Representatives and the Senate, shall designate 
one of the members of the Commission to serve as chairman of the 
Commission.
    (e) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the Commission. Any vacancy in the Commission shall be 
filled in the same manner as the original appointment.
    (f) Security Clearances.--All members of the Commission shall hold 
appropriate security clearances.
    (g) Initial Organization Requirements.--(1) All appointments to the 
Commission shall be made not later than 45 days after the date of the 
enactment of this Act.
    (2) The Commission shall convene its first meeting not later than 
30 days after the date as of which all members of the Commission have 
been appointed, but not earlier than October 15, 1996.

SEC. 1322. DUTIES OF COMMISSION.

    (a) Review of Ballistic Missile Threat.--The Commission shall 
assess the nature and magnitude of the existing and emerging ballistic 
missile threat to the United States.
    (b) Cooperation From Government Officials.--In carrying out its 
duties, the Commission should receive the full and timely cooperation 
of the Secretary of Defense, the Director of Central Intelligence, and 
any other United States Government official responsible for providing 
the Commission with analyses, briefings, and other information 
necessary for the fulfillment of its respon- sibilities.

SEC. 1323. REPORT.

    The Commission shall, not later than six months after the date of 
its first meeting, submit to the Congress a report on its findings and 
conclusions.

SEC. 1324. POWERS.

    (a) Hearings.--The Commission or, at its direction, any panel or 
member of the Commission, may, for the purpose of carrying out the 
provisions of this subtitle, hold hearings, sit and act at times and 
places, take testimony, receive evidence, and administer oaths to the 
extent that the Commission or any panel or member considers advisable.
    (b) Information.--The Commission may secure directly from the 
Department of Defense, the Central Intelligence Agency, and any other 
Federal department or agency information that the Commission considers 
necessary to enable the Commission to carry out its responsibilities 
under this subtitle.

SEC. 1325. COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet at the call of the 
Chairman.
    (b) Quorum.--(1) Five members of the Commission shall constitute a 
quorum other than for the purpose of holding hearings.
    (2) The Commission shall act by resolution agreed to by a majority 
of the members of the Commission.
    (c) Commission.--The Commission may establish panels composed of 
less than full membership of the Commission for the purpose of carrying 
out the Commission's duties. The actions of each such panel shall be 
subject to the review and control of the Commission. Any findings and 
determinations made by such a panel shall not be considered the 
findings and determinations of the Commission unless approved by the 
Commission.
    (d) Authority of Individuals To Act for Commission.--Any member or 
agent of the Commission may, if authorized by the Commission, take any 
action which the Commission is authorized to take under this subtitle.

SEC. 1326. PERSONNEL MATTERS.

    (a) Pay of Members.--Members of the Commission shall serve without 
pay by reason of their work on the Commission.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--(1) The chairman of the Commission may, without regard 
to the provisions of title 5, United States Code, governing 
appointments in the competitive service, appoint a staff director and 
such additional personnel as may be necessary to enable the Commission 
to perform its duties. The appointment of a staff director shall be 
subject to the approval of the Commission.
    (2) The chairman of the Commission may fix the pay of the staff 
director and other personnel without regard to the provisions of 
chapter 51 and subchapter III of chapter 53 of title 5, United States 
Code, relating to classification of positions and General Schedule pay 
rates, except that the rate of pay fixed under this paragraph for the 
staff director may not exceed the rate payable for level V of the 
Executive Schedule under section 5316 of such title and the rate of pay 
for other personnel may not exceed the maximum rate payable for grade 
GS-15 of the General Schedule.
    (d) Detail of Government Employees.--Upon request of the chairman 
of the Commission, the head of any Federal department or agency may 
detail, on a nonreimbursable basis, any personnel of that department or 
agency to the Commission to assist it in carrying out its duties.
    (e) Procurement of Temporary and Intermittent Services.--The 
chairman of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay payable for level V of the Executive Schedule under 
section 5316 of such title.

SEC. 1327. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

    (a) Postal and Printing Services.--The Commission may use the 
United States mails and obtain printing and binding services in the 
same manner and under the same conditions as other departments and 
agencies of the Federal Government.
    (b) Miscellaneous Administrative and Support Services.--The 
Director of Central Intelligence shall furnish the Commission, on a 
reimbursable basis, any administrative and support services requested 
by the Commission.

SEC. 1328. FUNDING.

    Funds for activities of the Commission shall be provided from 
amounts appropriated for the Department of Defense for operation and 
maintenance for Defense-wide activities for fiscal year 1997. Upon 
receipt of a written certification from the Chairman of the Commission 
specifying the funds required for the activities of the Commission, the 
Secretary of Defense shall promptly disburse to the Commission, from 
such amounts, the funds required by the Commission as stated in such 
certification.

SEC. 1329. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 60 days after the date of the 
submission of its report under section 1323.

         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.

                    Subtitle A--Domestic Preparedness

Sec. 1411. Response to threats of terrorist use of weapons of mass 
          destruction.
Sec. 1412. Emergency response assistance program.
Sec. 1413. Nuclear, chemical, and biological emergency response.
Sec. 1414. Chemical-biological emergency response team.
Sec. 1415. Testing of preparedness for emergencies involving nuclear, 
          radiological, chemical, and biological weapons.
Sec. 1416. Military assistance to civilian law enforcement officials in 
          emergency situations involving biological or chemical weapons.
Sec. 1417. Rapid response information system.

  Subtitle B--Interdiction of Weapons of Mass Destruction and Related 
                                Materials

Sec. 1421. Procurement of detection equipment United States border 
          security.
Sec. 1422. Extension of coverage of International Emergency Economic 
          Powers Act.
Sec. 1423. Sense of Congress concerning criminal penalties.
Sec. 1424. International border security.

 Subtitle C--Control and Disposition of Weapons of Mass Destruction and 
             Related Materials Threatening the United States

Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative 
          Threat Reduction programs on elimination or transportation of 
          nuclear weapons.
Sec. 1432. Elimination of plutonium production.

     Subtitle D--Coordination of Policy and Countermeasures Against 
              Proliferation of Weapons of Mass Destruction

Sec. 1441. National Coordinator on Nonproliferation.
Sec. 1442. National Security Council Committee on Nonproliferation.
Sec. 1443. Comprehensive preparedness program.
Sec. 1444. Termination.

                        Subtitle E--Miscellaneous

Sec. 1451. Sense of Congress concerning contracting policy.
Sec. 1452. Transfers of allocations among Cooperative Threat Reduction 
          programs.
Sec. 1453. Sense of Congress concerning assistance to states of former 
          Soviet Union.
Sec. 1454. Purchase of low-enriched uranium derived from Russian highly 
          enriched uranium.
Sec. 1455. Sense of Congress concerning purchase, packaging, and 
          transportation of fissile materials at risk of theft.

SEC. 1401. SHORT TITLE.

    This title may be cited as the ``Defense Against Weapons of Mass 
Destruction Act of 1996''.

SEC. 1402. FINDINGS.

    Congress makes the following findings:
        (1) Weapons of mass destruction and related materials and 
    technologies are increasingly available from worldwide sources. 
    Technical information relating to such weapons is readily available 
    on the Internet, and raw materials for chemical, biological, and 
    radiological weapons are widely available for legitimate commercial 
    purposes.
        (2) The former Soviet Union produced and maintained a vast 
    array of nuclear, biological, and chemical weapons of mass 
    destruction.
        (3) Many of the states of the former Soviet Union retain the 
    facilities, materials, and technologies capable of producing 
    additional quantities of weapons of mass destruction.
        (4) The disintegration of the former Soviet Union was 
    accompanied by disruptions of command and control systems, 
    deficiencies in accountability for weapons, weapons-related 
    materials and technologies, economic hardships, and significant 
    gaps in border control among the states of the former Soviet Union. 
    The problems of organized crime and corruption in the states of the 
    former Soviet Union increase the potential for proliferation of 
    nuclear, radiological, biological, and chemical weapons and related 
    materials.
        (5) The conditions described in paragraph (4) have 
    substantially increased the ability of potentially hostile nations, 
    terrorist groups, and individuals to acquire weapons of mass 
    destruction and related materials and technologies from within the 
    states of the former Soviet Union and from unemployed scientists 
    who worked on those programs.
        (6) As a result of such conditions, the capability of 
    potentially hostile nations and terrorist groups to acquire 
    nuclear, radiological, biological, and chemical weapons is greater 
    than at any time in history.
        (7) The President has identified North Korea, Iraq, Iran, and 
    Libya as hostile states which already possess some weapons of mass 
    destruction and are developing others.
        (8) The acquisition or the development and use of weapons of 
    mass destruction is well within the capability of many extremist 
    and terrorist movements, acting independently or as proxies for 
    foreign states.
        (9) Foreign states can transfer weapons to or otherwise aid 
    extremist and terrorist movements indirectly and with plausible 
    deniability.
        (10) Terrorist groups have already conducted chemical attacks 
    against civilian targets in the United States and Japan, and a 
    radiological attack in Russia.
        (11) The potential for the national security of the United 
    States to be threatened by nuclear, radiological, chemical, or 
    biological terrorism must be taken seriously.
        (12) There is a significant and growing threat of attack by 
    weapons of mass destruction on targets that are not military 
    targets in the usual sense of the term.
        (13) Concomitantly, the threat posed to the citizens of the 
    United States by nuclear, radiological, biological, and chemical 
    weapons delivered by unconventional means is significant and 
    growing.
        (14) Mass terror may result from terrorist incidents involving 
    nuclear, radiological, biological, or chemical materials.
        (15) Facilities required for production of radiological, 
    biological, and chemical weapons are much smaller and harder to 
    detect than nuclear weapons facilities, and biological and chemical 
    weapons can be deployed by alternative delivery means other than 
    long-range ballistic missiles.
        (16) Covert or unconventional means of delivery of nuclear, 
    radiological, biological, and chemical weapons include cargo ships, 
    passenger aircraft, commercial and private vehicles and vessels, 
    and commercial cargo shipments routed through multiple 
    destinations.
        (17) Traditional arms control efforts assume large state 
    efforts with detectable manufacturing programs and weapons 
    production programs, but are ineffective in monitoring and 
    controlling smaller, though potentially more dangerous, 
    unconventional proliferation efforts.
        (18) Conventional counterproliferation efforts would do little 
    to detect or prevent the rapid development of a capability to 
    suddenly manufacture several hundred chemical or biological weapons 
    with nothing but commercial supplies and equipment.
        (19) The United States lacks adequate planning and 
    countermeasures to address the threat of nuclear, radiological, 
    biological, and chemical terrorism.
        (20) The Department of Energy has established a Nuclear 
    Emergency Response Team which is available in case of nuclear or 
    radiological emergencies, but no comparable units exist to deal 
    with emergencies involving biological or chemical weapons or 
    related materials.
        (21) State and local emergency response personnel are not 
    adequately prepared or trained for incidents involving nuclear, 
    radiological, biological, or chemical materials.
        (22) Exercises of the Federal, State, and local response to 
    nuclear, radiological, biological, or chemical terrorism have 
    revealed serious deficiencies in preparedness and severe problems 
    of coordination.
        (23) The development of, and allocation of responsibilities 
    for, effective countermeasures to nuclear, radiological, 
    biological, or chemical terrorism in the United States requires 
    well-coordinated participation of many Federal agencies, and 
    careful planning by the Federal Government and State and local 
    governments.
        (24) Training and exercises can significantly improve the 
    preparedness of State and local emergency response personnel for 
    emergencies involving nuclear, radiological, biological, or 
    chemical weapons or related materials.
        (25) Sharing of the expertise and capabilities of the 
    Department of Defense, which traditionally has provided assistance 
    to Federal, State, and local officials in neutralizing, dis- 
    mantling, and disposing of explosive ordnance, as well as 
    radiological, biological, and chemical materials, can be a vital 
    contribution to the development and deployment of countermeasures 
    against nuclear, biological, and chemical weapons of mass 
    destruction.
        (26) The United States lacks effective policy coordination 
    regarding the threat posed by the proliferation of weapons of mass 
    destruction.

SEC. 1403. DEFINITIONS.

    In this title:
        (1) The term ``weapon of mass destruction'' means any weapon or 
    device that is intended, or has the capability, to cause death or 
    serious bodily injury to a significant number of people through the 
    release, dissemination, or impact of--
            (A) toxic or poisonous chemicals or their precursors;
            (B) a disease organism; or
            (C) radiation or radioactivity.
        (2) The term ``independent states of the former Soviet Union'' 
    has the meaning given that term in section 3 of the FREEDOM Support 
    Act (22 U.S.C. 5801).
        (3) The term ``highly enriched uranium'' means uranium enriched 
    to 20 percent or more in the isotope U-235.

                   Subtitle A--Domestic Preparedness

SEC. 1411. RESPONSE TO THREATS OF TERRORIST USE OF WEAPONS OF MASS 
DESTRUCTION.
    (a) Enhanced Response Capability.--In light of the potential for 
terrorist use of weapons of mass destruction against the United States, 
the President shall take immediate action--
        (1) to enhance the capability of the Federal Government to 
    prevent and respond to terrorist incidents involving weapons of 
    mass destruction; and
        (2) to provide enhanced support to improve the capabilities of 
    State and local emergency response agencies to prevent and respond 
    to such incidents at both the national and the local level.
    (b) Report Required.--Not later than January 31, 1997, the 
President shall transmit to Congress a report containing--
        (1) an assessment of the capabilities of the Federal Government 
    to prevent and respond to terrorist incidents involving weapons of 
    mass destruction and to support State and local prevention and 
    response efforts;
        (2) requirements for improvements in those cap- abilities; and
        (3) the measures that should be taken to achieve such 
    improvements, including additional resources and legislative 
    authorities that would be required.

SEC. 1412. EMERGENCY RESPONSE ASSISTANCE PROGRAM.

    (a) Program Required.--(1) The Secretary of Defense shall carry out 
a program to provide civilian personnel of Federal, State, and local 
agencies with training and expert advice regarding emergency responses 
to a use or threatened use of a weapon of mass destruction or related 
materials.
    (2) The President may designate the head of an agency other than 
the Department of Defense to assume the responsibility for carrying out 
the program on or after October 1, 1999, and relieve the Secretary of 
Defense of that responsibility upon the assumption of the 
responsibility by the designated official.
    (3) In this section, the official responsible for carrying out the 
program is referred to as the ``lead official''.
    (b) Coordination.--In carrying out the program, the lead official 
shall coordinate with each of the following officials who is not 
serving as the lead official:
        (1) The Director of the Federal Emergency Management Agency.
        (2) The Secretary of Energy.
        (3) The Secretary of Defense.
        (4) The heads of any other Federal, State, and local government 
    agencies that have an expertise or responsibilities relevant to 
    emergency responses described in subsection (a)(1).
    (c) Eligible Participants.--The civilian personnel eligible to 
receive assistance under the program are civilian personnel of Federal, 
State, and local agencies who have emergency preparedness 
responsibilities.
    (d) Involvement of Other Federal Agencies.--(1) The lead official 
may use personnel and capabilities of Federal agencies outside the 
agency of the lead official to provide training and expert advice under 
the program.
    (2)(A) Personnel used under paragraph (1) shall be personnel who 
have special skills relevant to the particular assistance that the 
personnel are to provide.
    (B) Capabilities used under paragraph (1) shall be capabilities 
that are especially relevant to the particular assistance for which the 
capabilities are used.
    (3) If the lead official is not the Secretary of Defense, and 
requests assistance from the Department of Defense that, in the 
judgment of the Secretary of Defense would affect military readiness or 
adversely affect national security, the Secretary of Defense may appeal 
the request for Department of Defense assistance by the lead official 
to the President.
    (e) Available Assistance.--Assistance available under this program 
shall include the following:
        (1) Training in the use, operation, and maintenance of 
    equipment for--
            (A) detecting a chemical or biological agent or nuclear 
        radiation;
            (B) monitoring the presence of such an agent or radiation;
            (C) protecting emergency personnel and the public; and
            (D) decontamination.
        (2) Establishment of a designated telephonic link (commonly 
    referred to as a ``hot line'') to a designated source of relevant 
    data and expert advice for the use of State or local officials 
    responding to emergencies involving a weapon of mass destruction or 
    related materials.
        (3) Use of the National Guard and other reserve components for 
    purposes authorized under this section that are specified by the 
    lead official (with the concurrence of the Secretary of Defense if 
    the Secretary is not the lead official).
        (4) Loan of appropriate equipment.
    (f) Limitations on Department of Defense Assistance to Law 
Enforcement Agencies.--Assistance provided by the Department of Defense 
to law enforcement agencies under this section shall be provided under 
the authority of, and subject to the restrictions provided in, chapter 
18 of title 10, United States Code.
    (g) Administration of Department of Defense Assistance.--The 
Secretary of Defense shall designate an official within the Department 
of Defense to serve as the executive agent of the Secretary for the 
coordination of the provision of Department of Defense assistance under 
this section.
    (h) Funding.--(1) Of the total amount authorized to be appropriated 
under section 301, $35,000,000 is available for the program required 
under this section.
    (2) Of the amount available for the program pursuant to paragraph 
(1), $10,500,000 is available for use by the Secretary of Defense to 
assist the Secretary of Health and Human Services in the establishment 
of metropolitan emergency medical response teams (commonly referred to 
as ``Metropolitan Medical Strike Force Teams'') to provide medical 
services that are necessary or potentially necessary by reason of a use 
or threatened use of a weapon of mass destruction.
    (3) The amount available for the program under paragraph (1) is in 
addition to any other amounts authorized to be appropriated for the 
program under section 301.
SEC. 1413. NUCLEAR, CHEMICAL, AND BIOLOGICAL EMERGENCY RESPONSE.
    (a) Department of Defense.--The Secretary of Defense shall 
designate an official within the Department of Defense as the executive 
agent for--
        (1) the coordination of Department of Defense assistance to 
    Federal, State, and local officials in responding to threats 
    involving biological or chemical weapons or related materials or 
    technologies, including assistance in identifying, neutralizing, 
    dismantling, and disposing of biological and chemical weapons and 
    related materials and technologies; and
        (2) the coordination of Department of Defense assistance to the 
    Department of Energy in carrying out that department's 
    responsibilities under subsection (b).
    (b) Department of Energy.--The Secretary of Energy shall designate 
an official within the Department of Energy as the executive agent 
for--
        (1) the coordination of Department of Energy assistance to 
    Federal, State, and local officials in responding to threats 
    involving nuclear, chemical, and biological weapons or related 
    materials or technologies, including assistance in identifying, 
    neutralizing, dismantling, and disposing of nuclear weapons and 
    related materials and technologies; and
        (2) the coordination of Department of Energy assistance to the 
    Department of Defense in carrying out that department's 
    responsibilities under subsection (a).
    (c) Funding.--Of the total amount authorized to be appropriated 
under section 301, $15,000,000 is available for providing assistance 
described in subsection (a).
SEC. 1414. CHEMICAL-BIOLOGICAL EMERGENCY RESPONSE TEAM.
    (a) Department of Defense Rapid Response Team.--The Secretary of 
Defense shall develop and maintain at least one domestic terrorism 
rapid response team composed of members of the Armed Forces and 
employees of the Department of Defense who are capable of aiding 
Federal, State, and local officials in the detection, neutralization, 
containment, dismantlement, and disposal of weapons of mass destruction 
containing chemical, biological, or related materials.
    (b) Addition to Federal Response Plan.--Not later than December 31, 
1997, the Director of the Federal Emergency Management Agency shall 
develop and incorporate into existing Federal emergency response plans 
and programs prepared under section 611(b) of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5196(b)) 
guidance on the use and deployment of the rapid response teams 
established under this section to respond to emergencies involving 
weapons of mass destruction. The Director shall carry out this 
subsection in consultation with the Secretary of Defense and the heads 
of other Federal agencies involved with the emergency response plans.
SEC. 1415. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING NUCLEAR, 
RADIOLOGICAL, CHEMICAL, AND BIOLOGICAL WEAPONS.
    (a) Emergencies Involving Chemical or Biological Weapons.--(1) The 
Secretary of Defense shall develop and carry out a program for testing 
and improving the responses of Federal, State, and local agencies to 
emergencies involving biological weapons and related materials and 
emergencies involving chemical weapons and related materials.
    (2) The program shall include exercises to be carried out during 
each of five successive fiscal years beginning with fiscal year 1997.
    (3) In developing and carrying out the program, the Secretary shall 
coordinate with the Director of the Federal Bureau of Investigation, 
the Director of the Federal Emergency Management Agency, the Secretary 
of Energy, and the heads of any other Federal, State, and local 
government agencies that have an expertise or responsibilities relevant 
to emergencies described in paragraph (1).
    (b) Emergencies Involving Nuclear and Radiological Weapons.--(1) 
The Secretary of Energy shall develop and carry out a program for 
testing and improving the responses of Federal, State, and local 
agencies to emergencies involving nuclear and radiological weapons and 
related materials.
    (2) The program shall include exercises to be carried out during 
each of five successive fiscal years beginning with fiscal year 1997.
    (3) In developing and carrying out the program, the Secretary shall 
coordinate with the Director of the Federal Bureau of Investigation, 
the Director of the Federal Emergency Management Agency, the Secretary 
of Defense, and the heads of any other Federal, State, and local 
government agencies that have an expertise or responsibilities relevant 
to emergencies described in paragraph (1).
    (c) Annual Revisions of Programs.--The official responsible for 
carrying out a program developed under subsection (a) or (b) shall 
revise the program not later than June 1 in each fiscal year covered by 
the program. The revisions shall include adjustments that the official 
determines necessary or appropriate on the basis of the lessons learned 
from the exercise or exercises carried out under the program in the 
fiscal year, including lessons learned regarding coordination problems 
and equipment deficiencies.
    (d) Option To Transfer Responsibility.--(1) The President may 
designate the head of an agency outside the Department of Defense to 
assume the responsibility for carrying out the program developed under 
subsection (a) beginning on or after October 1, 1999, and relieve the 
Secretary of Defense of that responsibility upon the assumption of the 
responsibility by the designated official.
    (2) The President may designate the head of an agency outside the 
Department of Energy to assume the responsibility for carrying out the 
program developed under subsection (b) beginning on or after October 1, 
1999, and relieve the Secretary of Energy of that responsibility upon 
the assumption of the responsibility by the designated official.
    (e) Funding.--Of the total amount authorized to be appropriated 
under section 301, $15,000,000 is available for thedevelopment and 
execution of the programs required by this section, including the 
participation of State and local agencies in exercises carried out 
under the programs.
SEC. 1416. MILITARY ASSISTANCE TO CIVILIAN LAW ENFORCEMENT OFFICIALS IN 
EMERGENCY SITUATIONS INVOLVING BIOLOGICAL OR CHEMICAL WEAPONS.
    (a) Assistance Authorized.--(1) Chapter 18 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 382. Emergency situations involving chemical or biological 
    weapons of mass destruction
    ``(a) In General.--The Secretary of Defense, upon the request of 
the Attorney General, may provide assistance in support of Department 
of Justice activities relating to the enforcement of section 175 or 
2332c of title 18 during an emergency situation involving a biological 
or chemical weapon of mass destruction. Department of Defense 
resources, including personnel of the Department of Defense, may be 
used to provide such assistance if--
        ``(1) the Secretary of Defense and the Attorney General jointly 
    determine that an emergency situation exists; and
        ``(2) the Secretary of Defense determines that the provision of 
    such assistance will not adversely affect the military preparedness 
    of the United States.
    ``(b) Emergency Situations Covered.--In this section, the term 
`emergency situation involving a biological or chemical weapon of mass 
destruction' means a circumstance involving a biological or chemical 
weapon of mass destruction--
        ``(1) that poses a serious threat to the interests of the 
    United States; and
        ``(2) in which--
            ``(A) civilian expertise and capabilities are not readily 
        available to provide the required assistance to counter the 
        threat immediately posed by the weapon involved;
            ``(B) special capabilities and expertise of the Department 
        of Defense are necessary and critical to counter the threat 
        posed by the weapon involved; and
            ``(C) enforcement of section 175 or 2332c of title 18 would 
        be seriously impaired if the Department of Defense assistance 
        were not provided.
    ``(c) Forms of Assistance.--The assistance referred to in 
subsection (a) includes the operation of equipment (including equipment 
made available under section 372 of this title) to monitor, contain, 
disable, or dispose of the weapon involved or elements of the weapon.
    ``(d) Regulations.--(1) The Secretary of Defense and the Attorney 
General shall jointly prescribe regulations concerning the types of 
assistance that may be provided under this section. Such regulations 
shall also describe the actions that Department of Defense personnel 
may take in circumstances incident to the provision of assistance under 
this section.
    ``(2)(A) Except as provided in subparagraph (B), the regulations 
may not authorize the following actions:
        ``(i) Arrest.
        ``(ii) Any direct participation in conducting a search for or 
    seizure of evidence related to a violation of section 175 or 2332c 
    of title 18.
        ``(iii) Any direct participation in the collection of 
    intelligence for law enforcement purposes.
    ``(B) The regulations may authorize an action described in 
subparagraph (A) to be taken under the following conditions:
        ``(i) The action is considered necessary for the immediate 
    protection of human life, and civilian law enforcement officials 
    are not capable of taking the action.
        ``(ii) The action is otherwise authorized under subsection (c) 
    or under otherwise applicable law.
    ``(e) Reimbursements.--The Secretary of Defense shall require 
reimbursement as a condition for providing assistance under this 
section to the extent required under section 377 of this title.
    ``(f) Delegations of Authority.--(1) Except to the extent otherwise 
provided by the Secretary of Defense, the Deputy Secretary of Defense 
may exercise the authority of the Secretary of Defense under this 
section. The Secretary of Defense may delegate the Secretary's 
authority under this section only to an Under Secretary of Defense or 
an Assistant Secretary of Defense and only if the Under Secretary or 
Assistant Secretary to whom delegated has been designated by the 
Secretary to act for, and to exercise the general powers of, the 
Secretary.
    ``(2) Except to the extent otherwise provided by the Attorney 
General, the Deputy Attorney General may exercise the authority of the 
Attorney General under this section. The Attorney General may delegate 
that authority only to the Associate Attorney General or an Assistant 
Attorney General and only if the Associate Attorney General or 
Assistant Attorney General to whom delegated has been designated by the 
Attorney General to act for, and to exercise the general powers of, the 
Attorney General.
    ``(g) Relationship to Other Authority.--Nothing in this section 
shall be construed to restrict any executive branch authority regarding 
use of members of the armed forces or equipment of the Department of 
Defense that was in effect before the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 1997.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``382. Emergency situations involving chemical or biological weapons of 
mass destruction.''.

    (b) Conforming Amendment to Condition for Providing Equipment and 
Facilities.--Section 372(b)(1) of title 10, United States Code, is 
amended by adding at the end the following new sentence: ``The 
requirement for a determination that an item is not reasonably 
available from another source does not apply to assistance provided 
under section 382 of this title pursuant to a request of the Attorney 
General for the assistance.''.
    (c) Conforming Amendments Relating to Authority To Request 
Assistance.--(1)(A) Chapter 10 of title 18, United States Code, is 
amended by inserting after section 175 the following new section:
``Sec. 175a. Requests for military assistance to enforce prohibition in 
     certain emergencies
    ``The Attorney General may request the Secretary of Defense to 
provide assistance under section 382 of title 10 in support of 
Department of Justice activities relating to the enforcement of section 
175 of this title in an emergency situation involving a biological 
weapon of mass destruction. The authority to make such a request may be 
exercised by another official of the Department of Justice in 
accordance with section 382(f)(2) of title 10.''.
    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 175 the 
following new item:

``175a. Requests for military assistance to enforce prohibition in 
          certain emergencies.''.

    (2)(A) The chapter 133B of title 18, United States Code, that 
relates to terrorism is amended by inserting after section 2332c the 
following new section:
``Sec. 2332d. Requests for military assistance to enforce prohibition 
      in certain emergencies
    ``The Attorney General may request the Secretary of Defense to 
provide assistance under section 382 of title 10 in support of 
Department of Justice activities relating to the enforcement of section 
2332c of this title during an emergency situation involving a chemical 
weapon of mass destruction. The authority to make such a request may be 
exercised by another official of the Department of Justice in 
accordance with section 382(f)(2) of title 10.''.
    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2332c the 
following new item:

``2332d. Requests for military assistance to enforce prohibition in 
certain emergencies.''.

    (d) Civilian Expertise.--The President shall take reasonable 
measures to reduce the reliance of civilian law enforcement officials 
on Department of Defense resources to counter the threat posed by the 
use or potential use of biological and chemical weapons of mass 
destruction within the United States. The measures shall include--
        (1) actions to increase civilian law enforcement expertise to 
    counter such a threat; and
        (2) actions to improve coordination between civilian law 
    enforcement officials and other civilian sources of expertise, 
    within and outside the Federal Government, to counter such a 
    threat.
    (e) Reports.--The President shall submit to Congress the following 
reports:
        (1) Not later than 90 days after the date of the enactment of 
    this Act, a report describing the respective policy functions and 
    operational roles of Federal agencies in countering the threat 
    posed by the use or potential use of biological and chemical 
    weapons of mass destruction within the United States.
        (2) Not later than one year after such date, a report 
    describing--
            (A) the actions planned to be taken to carry out subsection 
        (d); and
            (B) the costs of such actions.
        (3) Not later than three years after such date, a report 
    updating the information provided in the reports submitted pursuant 
    to paragraphs (1) and (2), including the measures taken pursuant to 
    subsection (d).

SEC. 1417. RAPID RESPONSE INFORMATION SYSTEM.

    (a) Inventory of Rapid Response Assets.--(1) The head of each 
Federal Response Plan agency shall develop and maintain an inventory of 
physical equipment and assets under the jurisdiction of that agency 
that could be made available to aid State and local officials in search 
and rescue and other disaster management and mitigation efforts 
associated with an emergency involving weapons of mass destruction. The 
agency head shall submit a copy of the inventory, and any updates of 
the inventory, to the Director of the Federal Emergency Management 
Agency for inclusion in the master inventory required under subsection 
(b).
    (2) Each inventory shall include a separate listing of any 
equipment that is excess to the needs of that agency and could be 
considered for disposal as excess or surplus property for use for 
response and training with regard to emergencies involving weapons of 
mass destruction.
    (b) Master Inventory.--The Director of the Federal Emergency 
Management Agency shall compile and maintain a comprehensive listing of 
all inventories prepared under subsection (a). The first such master 
list shall be completed not later than December 31, 1997, and shall be 
updated annually thereafter.
    (c) Addition to Federal Response Plan.--Not later than December 31, 
1997, the Director of the Federal Emergency Management Agency shall 
develop and incorporate into existing Federal emergency response plans 
and programs prepared under section 611(b) of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5196(b)) 
guidance on accessing and using the physical equipment and assets 
included in the master list developed under subsection to respond to 
emergencies involving weapons of mass destruction.
    (d) Database on Chemical and Biological Materials.--The Director of 
the Federal Emergency Management Agency, in consultation with the 
Secretary of Defense, shall prepare a database on chemical and 
biological agents and munitions characteristics and safety precautions 
for civilian use. The initial design and compilation of the database 
shall be completed not later than December 31, 1997.
    (e) Access to Inventory and Database.--The Director of the Federal 
Emergency Management Agency shall design and maintain a system to give 
Federal, State, and local officials access to the inventory listing and 
database maintained under this section in the event of an emergency 
involving weapons of mass destruction or to prepare and train to 
respond to suchan emergency. The system shall include a secure but 
accessible emergency response hotline to access information and request 
assistance.

  Subtitle B--Interdiction of Weapons of Mass Destruction and Related 
                               Materials

SEC. 1421. PROCUREMENT OF DETECTION EQUIPMENT UNITED STATES BORDER 
SECURITY.
    Of the amount authorized to be appropriated by section 301, 
$15,000,000 is available for the procurement of--
        (1) equipment capable of detecting the movement of weapons of 
    mass destruction and related materials into the United States;
        (2) equipment capable of interdicting the movement of weapons 
    of mass destruction and related materials into the United States; 
    and
        (3) materials and technologies related to use of equipment 
    described in paragraph (1) or (2).
SEC. 1422. EXTENSION OF COVERAGE OF INTERNATIONAL EMERGENCY ECONOMIC 
POWERS ACT.
    Section 206 of the International Emergency Economic Powers Act (50 
U.S.C. 1705) is amended--
        (1) in subsection (a), by inserting ``, or attempts to 
    violate,'' after ``violates''; and
        (2) in subsection (b), by inserting ``, or willfully attempts 
    to violate,'' after ``violates''.

SEC. 1423. SENSE OF CONGRESS CONCERNING CRIMINAL PENALTIES.

    (a) Sense of Congress Concerning Inadequacy of Sentencing 
Guidelines.--It is the sense of Congress that the sentencing guidelines 
prescribed by the United States Sentencing Commission for the offenses 
of importation, attempted importation, exportation, and attempted 
exportation of nuclear, biological, and chemical weapons materials 
constitute inadequate punishment for such offenses.
    (b) Urging of Revison to Guidelines.--Congress urges the United 
States Sentencing Commission to revise the relevant sentencing 
guidelines to provide for increased penalties for offenses relating to 
importation, attempted importation, exportation, and attempted 
exportation of nuclear, biological, or chemical weapons or related 
materials or technologies under the following provisions of law:
        (1) Section 11 of the Export Administration Act of 1979 (50 
    U.S.C. App. 2410).
        (2) Sections 38 and 40 of the Arms Export Control Act (22 
    U.S.C. 2778 and 2780).
        (3) The International Emergency Economic Powers Act (50 U.S.C. 
    1701 et seq.).
        (4) Section 309(c) of the Nuclear Non-Proliferation Act of 1978 
    (22 U.S.C. 2156a(c)).

SEC. 1424. INTERNATIONAL BORDER SECURITY.

    (a) Secretary of Defense Responsibility.--The Secretary of Defense, 
in consultation and cooperation with the Commissioner of Customs, shall 
carry out programs for assisting customs officials and border guard 
officials in the independent states of the former Soviet Union, the 
Baltic states, and other countries of Eastern Europe in preventing 
unauthorized transfer and transportation of nuclear, biological, and 
chemical weapons and related materials. Training, expert advice, 
maintenance of equipment, loan of equipment, and audits may be provided 
under or in connection with the programs.
    (b) Funding.--Of the total amount authorized to be appropriated by 
section 301, $15,000,000 is available for carrying out the programs 
referred to in subsection (a).
    (c) Assistance to States of the Former Soviet Union.--Assistance 
under programs referred to in subsection (a) may (notwithstanding any 
provision of law prohibiting the extension of foreign assistance to any 
of the newly independent states of the former Soviet Union) be extended 
to include an independent state of the former Soviet Union if the 
President certifies to Congress that it is in the national interest of 
the United States to extend assistance under this section to that 
state.

Subtitle C--Control and Disposition of Weapons of Mass Destruction and 
            Related Materials Threatening the United States

SEC. 1431. COVERAGE OF WEAPONS-USABLE FISSILE MATERIALS IN COOPERATIVE 
THREAT REDUCTION PROGRAMS ON ELIMINATION OR TRANSPORTATION OF NUCLEAR 
WEAPONS.
    Section 1201(b)(1) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 469; 22 U.S.C. 5955 
note) is amended by inserting ``, fissile material suitable for use in 
nuclear weapons,'' after ``other weapons''.

SEC. 1432. ELIMINATION OF PLUTONIUM PRODUCTION.

    (a) Replacement Program.--The Secretary of Energy, in consultation 
with the Secretary of Defense, shall develop a cooperative program with 
the Government of Russia to eliminate the production of weapons grade 
plutonium by modifying or replacing the reactor cores at Tomsk-7 and 
Krasnoyarsk-26 with reactor cores that are less suitable for the 
production of weapons-grade plutonium.
    (b) Program Requirements.--(1) The program shall be designed to 
achieve completion of the modifications or replacements of the reactor 
cores within three years after the modification or replacement 
activities under the program are begun.
    (2) The plan for the program shall--
        (A) specify--
            (i) successive steps for the modification or replacement of 
        the reactor cores; and
            (ii) clearly defined milestones to be achieved; and
        (B) include estimates of the costs of the program.
    (c) Submission of Program Plan to Congress.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress--
        (1) a plan for the program under subsection (a);
        (2) an estimate of the United States funding that is necessary 
    for carrying out the activities under the program for each fiscal 
    year covered by the program; and
        (3) a comparison of the benefits of the program with the 
    benefits of other nonproliferation programs.

    Subtitle D--Coordination of Policy and Countermeasures Against 
              Proliferation of Weapons of Mass Destruction

SEC. 1441. NATIONAL COORDINATOR ON NONPROLIFERATION.

    (a) Designation of Position.--The President shall designate an 
individual to serve in the Executive Office of the President as the 
National Coordinator for Nonproliferation Matters.
    (b) Duties.--The Coordinator, under the direction of the National 
Security Council, shall advise and assist the President by--
        (1) advising the President on nonproliferation of weapons of 
    mass destruction, including issues related to terrorism, arms 
    control, and international organized crime;
        (2) chairing the Committee on Nonproliferation established 
    under section 1342; and
        (3) taking such actions as are necessary to ensure that there 
    is appropriate emphasis in, cooperation on, and coordination of, 
    nonproliferation research efforts of the United States, including 
    activities of Federal agencies as well as activities of contractors 
    funded by the Federal Government.
    (c) Allocation of Funds.--Of the total amount authorized to be 
appropriated under section 301, $2,000,000 is available to the 
Department of Defense for carrying out research referred to in 
subsection (b)(3).
SEC. 1442. NATIONAL SECURITY COUNCIL COMMITTEE ON NONPROLIFERATION.
    (a) Establishment.--The Committee on Nonproliferation (in this 
section referred to as the ``Committee'') is established as a committee 
of the National Security Council.
    (b) Membership.--(1) The Committee shall be composed of 
representatives of the following:
        (A) The Secretary of State.
        (B) The Secretary of Defense.
        (C) The Director of Central Intelligence.
        (D) The Attorney General.
        (E) The Secretary of Energy.
        (F) The Administrator of the Federal Emergency Management 
    Agency.
        (G) The Secretary of the Treasury.
        (H) The Secretary of Commerce.
        (I) Such other members as the President may designate.
    (2) The National Coordinator for Nonproliferation Matters shall 
chair the Committee on Nonproliferation.
    (c) Responsibilities.--The Committee has the following 
responsibilities:
        (1) To review and coordinate Federal programs, policies, and 
    directives relating to the proliferation of weapons of mass 
    destruction and related materials and technologies, including 
    matters relating to terrorism and international organized crime.
        (2) To make recommendations through the National Security 
    Council to the President regarding the following:
            (A) Integrated national policies for countering the threats 
        posed by weapons of mass destruction.
            (B) Options for integrating Federal agency budgets for 
        countering such threats.
            (C) Means to ensure that Federal, State, and local 
        governments have adequate capabilities to manage crises 
        involving nuclear, radiological, biological, or chemical 
        weapons or related materials or technologies, and to manage the 
        consequences of a use of such weapon or related materials or 
        technologies, and that use of those capabilities is 
        coordinated.
            (D) Means to ensure appropriate cooperation on, and 
        coordination of, the following:
                (i) Preventing the smuggling of weapons of mass 
            destruction and related materials and technologies.
                (ii) Promoting domestic and international law 
            enforcement efforts against proliferation-related efforts.
                (iii) Countering the involvement of organized crime 
            groups in proliferation-related activities.
                (iv) Safeguarding weapons of mass destruction materials 
            and related technologies.
                (v) Improving coordination and cooperation among 
            intelligence activities, law enforcement, and the 
            Departments of Defense, State, Commerce, and Energy in 
            support of nonproliferation and counterproliferation 
            efforts.
                (vi) Improving export controls over materials and 
            technologies that can contribute to the acquisition of 
            weapons of mass destruction.
                (vii) Reducing proliferation of weapons of mass 
            destruction and related materials and technologies.

SEC. 1443. COMPREHENSIVE PREPAREDNESS PROGRAM.

    (a) Program Required.--The President, acting through the Committee 
on Nonproliferation established under section 1442, shall develop a 
comprehensive program for carrying out this title.
    (b) Content of Program.--The program set forth in the report shall 
include specific plans as follows:
        (1) Plans for countering proliferation of weapons of mass 
    destruction and related materials and technologies.
        (2) Plans for training and equipping Federal, State, and local 
    officials for managing a crisis involving a use orthreatened use of 
a weapon of mass destruction, including the consequences of the use of 
such a weapon.
        (3) Plans for providing for regular sharing of information 
    among intelligence, law enforcement, and customs agencies.
        (4) Plans for training and equipping law enforcement units, 
    customs services, and border security personnel to counter the 
    smuggling of weapons of mass destruction and related materials and 
    technologies.
        (5) Plans for establishing appropriate centers for analyzing 
    seized nuclear, radiological, biological, and chemical weapons, and 
    related materials and technologies.
        (6) Plans for establishing in the United States appropriate 
    legal controls and authorities relating to the exporting of 
    nuclear, radiological, biological, and chemical weapons, and 
    related materials and technologies.
        (7) Plans for encouraging and assisting governments of foreign 
    countries to implement and enforce laws that set forth appropriate 
    penalties for offenses regarding the smuggling of weapons of mass 
    destruction and related materials and technologies.
        (8) Plans for building the confidence of the United States and 
    Russia in each other's controls over United States and Russian 
    nuclear weapons and fissile materials, including plans for 
    verifying the dismantlement of nuclear weapons.
        (9) Plans for reducing United States and Russian stockpiles of 
    excess plutonium, reflecting--
            (A) consideration of the desirability and feasibility of a 
        United States-Russian agreement governing fissile material 
        disposition and the specific technologies and approaches to be 
        used for disposition of excess plutonium; and
            (B) an assessment of the options for United States 
        cooperation with Russia in the disposition of Russian 
        plutonium.
        (10) Plans for studying the merits and costs of establishing a 
    global network of means for detecting and responding to terroristic 
    or other criminal use of biological agents against people or other 
    forms of life in the United States or any foreign country.
    (c) Report.--(1) At the same time that the President submits the 
budget for fiscal year 1998 to Congress pursuant to section 1105(a) of 
title 31, United States Code, the President shall submit to Congress a 
report that sets forth the comprehensive program developed under 
subsection (a).
    (2) The report shall include the following:
        (A) The specific plans for the program that are required under 
    subsection (b).
        (B) Estimates of the funds necessary, by agency or department, 
    for carrying out such plans in fiscal year 1998 and the following 
    five fiscal years.
    (3) The report shall be in an unclassified form. If there is a 
classified version of the report, the President shall submit the 
classified version at the same time.

SEC. 1444. TERMINATION.

    After September 30, 1999, the President--
        (1) is not required to maintain a National Coordinator for 
    Nonproliferation Matters under section 1341; and
        (2) may terminate the Committee on Nonproliferation established 
    under section 1342.

                       Subtitle E--Miscellaneous

SEC. 1451. SENSE OF CONGRESS CONCERNING CONTRACTING POLICY.

    It is the sense of Congress that the Secretary of Defense, the 
Secretary of Energy, the Secretary of the Treasury, and the Secretary 
of State, to the extent authorized by law, should--
        (1) contract directly with suppliers in independent states of 
    the former Soviet Union when such action would--
            (A) result in significant savings of the programs referred 
        to in subtitle C; and
            (B) substantially expedite completion of the programs 
        referred to in subtitle C; and
        (2) seek means to use innovative contracting approaches to 
    avoid delay and increase the effectiveness of such programs and of 
    the exercise of such authorities.
SEC. 1452. TRANSFERS OF ALLOCATIONS AMONG COOPERATIVE THREAT REDUCTION 
PROGRAMS.
    Congress finds that--
        (1) the various Cooperative Threat Reduction programs are being 
    carried out at different rates in the various countries covered by 
    such programs; and
        (2) it is necessary to authorize transfers of funding 
    allocations among the various programs in order to maximize the 
    effectiveness of United States efforts under such programs.
SEC. 1453. SENSE OF CONGRESS CONCERNING ASSISTANCE TO STATES OF FORMER 
SOVIET UNION.
    It is the sense of Congress that--
        (1) the Cooperative Threat Reduction programs and other United 
    States programs authorized in the National Defense Authorization 
    Act for Fiscal Years 1993 and 1994 should be expanded by offering 
    assistance under those programs to other independent states of the 
    former Soviet Union in addition to Russia, Ukraine, Kazakstan, and 
    Belarus; and
        (2) the President should offer assistance to additional 
    independent states of the former Soviet Union in each case in which 
    the participation of such states would benefit national security 
    interests of the United States by improving border controls and 
    safeguards over materials and technology associated with weapons of 
    mass destruction.
SEC. 1454. PURCHASE OF LOW-ENRICHED URANIUM DERIVED FROM RUSSIAN HIGHLY 
ENRICHED URANIUM.
    (a) Sense of Congress.--It is the sense of Congress that the allies 
of the United States and other nations should participate in efforts to 
ensure that stockpiles of weapons-grade nuclear material are reduced.
    (b) Actions by the Secretary of State.--Congress urges the 
Secretary of State to encourage, in consultation with the Secretary of 
Energy, other countries to purchase low-enriched uranium that is 
derived from highly enriched uranium extracted from Russian nuclear 
weapons.
SEC. 1455. SENSE OF CONGRESS CONCERNING PURCHASE, PACKAGING, AND 
TRANSPORTATION OF FISSILE MATERIALS AT RISK OF THEFT.
    It is the sense of Congress that--
        (1) the Secretary of Defense, the Secretary of Energy, the 
    Secretary of the Treasury, and the Secretary of State should 
    purchase, package, and transport to secure locations weapons-grade 
    nuclear materials from a stockpile of such materials if such 
    officials determine that--
            (A) there is a significant risk of theft of such materials; 
        and
            (B) there is no reasonable and economically feasible 
        alternative for securing such materials; and
        (2) if it is necessary to do so in order to secure the 
    materials, the materials should be imported into the United States, 
    subject to the laws and regulations that are applicable to the 
    importation of such materials into the United States.

 TITLE XV--COOPERATIVE THREAT RE- DUCTION WITH STATES OF FORMER SOVIET 
                                 UNION

Sec. 1501. Specification of Cooperative Threat Reduction programs.
Sec. 1502. Fiscal year 1997 funding allocations.
Sec. 1503. Prohibition on use of funds for specified purposes.
Sec. 1504. Limitation on use of funds until specified reports are 
          submitted.
Sec. 1505. Availability of funds.

SEC. 1501. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS.

    (a) In General.--For purposes of section 301 and other provisions 
of this Act, Cooperative Threat Reduction programs are the programs 
specified in subsection (b).
    (b) Specified Programs.--The programs referred to in subsection (a) 
are the following programs with respect to states of the former Soviet 
Union:
        (1) Programs to facilitate the elimination, and the safe and 
    secure transportation and storage, of nuclear, chemical, and other 
    weapons and their delivery vehicles.
        (2) Programs to facilitate the safe and secure storage of 
    fissile materials derived from the elimination of nuclear weapons.
        (3) Programs to prevent the proliferation of weapons, weapons 
    components, and weapons-related technology and expertise.
        (4) Programs to expand military-to-military and defense 
    contacts.

SEC. 1502. FISCAL YEAR 1997 FUNDING ALLOCATIONS.

    (a) In General.--Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs, not more than the following amounts may be 
obligated for the purposes specified:
        (1) For planning and design of a chemical weapons destruction 
    facility in Russia, $78,500,000.
        (2) For elimination of strategic offensive arms in Russia, 
    $52,000,000.
        (3) For strategic nuclear arms elimination in Ukraine, 
    $47,000,000.
        (4) For planning and design of a storage facility for Russian 
    fissile material, $66,000,000.
        (5) For fissile material containers in Russia, $38,500,000.
        (6) For weapons storage security in Russia, $15,000,000.
        (7) For activities designated as Defense and Military-to-
    Military Contacts in Russia, Ukraine, Belarus, and Kazakhstan, 
    $10,000,000.
        (8) For activities designated as Other Assessments/
    Administrative Support, $20,900,000.
        (9) For materials protection, control, and accounting 
    assistance or for destruction of nuclear, radiological, biological, 
    or chemical weapons or related materials at any site within the 
    former Soviet Union, $10,000,000.
        (10) For transfer to the Secretary of Energy to develop a 
    cooperative program with the Government of Russia to eliminate the 
    production of weapons grade plutonium at Russian reactors, 
    $10,000,000.
        (11) For dismantlement of biological and chemical weapons 
    facilities in the former Soviet Union, $15,000,000.
        (12) For expanding military-to-military programs of the United 
    States that focus on countering the threat of proliferation of 
    weapons of mass destruction to include the security forces of the 
    independent states of the former Soviet Union, particularly states 
    in the Caucasus region and Central Asia, $2,000,000.
    (b) Limited Authority To Vary Individual Amounts.--(1) If the 
Secretary of Defense determines that it is necessary to do so in the 
national interest, the Secretary may, subject to paragraph (2), 
obligate amounts for the purposes stated in any of the paragraphs of 
subsection (a) in excess of the amount specified for those purposes in 
that paragraph, but not in excess of 115 percent of that amount. 
However, the total amount obligated for the purposes stated in 
theparagraphs in subsection (a) may not by reason of the use of the 
authority provided in the preceding sentence exceed the sum of the 
amounts specified in those paragraphs.
    (2) An obligation for the purposes stated in any of the paragraphs 
in subsection (a) in excess of the amount specified in that paragraph 
may be made using the authority provided in paragraph (1) only after--
        (A) the Secretary submits to Congress a notification of the 
    intent to do so together with a complete discussion of the 
    justification for doing so; and
        (B) 15 days have elapsed following the date of the 
    notification.

SEC. 1503. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

    (a) In General.--None of the funds appropriated pursuant to the 
authorization in section 301 for Cooperative Threat Reduction programs, 
or appropriated for such programs for any prior fiscal year and 
remaining available for obligation, may be obligated or expended for 
any of the following purposes:
        (1) Conducting with Russia any peacekeeping exercise or other 
    peacekeeping-related activity.
        (2) Provision of housing.
        (3) Provision of assistance to promote environmental 
    restoration.
        (4) Provision of assistance to promote job retraining.
    (b) Limitation With Respect to Defense Conversion Assistance.--None 
of the funds appropriated to the Department of Defense for fiscal year 
1997 may be obligated or expended for defense conversion.
SEC. 1504. LIMITATION ON USE OF FUNDS UNTIL SPECIFIED REPORTS ARE 
SUBMITTED.
    None of the funds appropriated pursuant to the authorization in 
section 301 for Cooperative Threat Reduction programs may be obligated 
or expended until 15 days after the date which is the latest of the 
following:
        (1) The date on which the President submits to Congress the 
    determinations required under subsection (c) of section 211 of 
    Public Law 102-228 (22 U.S.C. 2551 note) with respect to any 
    certification transmitted to Congress under subsection (b) of that 
    section before the date of the enactment of this Act.
        (2) The date on which the Secretary of Defense submits to 
    Congress the first report under section 1206(a) of the National 
    Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
    110 Stat. 471).
        (3) The date on which the Secretary of Defense submits to 
    Congress the report for fiscal year 1996 required under section 
    1205(c) of the National Defense Authorization Act for Fiscal Year 
    1995 (Public Law 103-337; 108 Stat. 2883).

SEC. 1505. AVAILABILITY OF FUNDS.

    Funds appropriated pursuant to the authorization of appropriations 
in section 301 for Cooperative Threat Reduction programs shall be 
available for obligation for three fiscal years.

          TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Subtitle A--Miscellaneous Matters Relating to Personnel Management, Pay, 
                             and Allowances

Sec. 1601. Modification of requirement for conversion of military 
positions to civilian positions.
Sec. 1602. Retention of civilian employee positions at military training 
bases transferred to National Guard.
Sec. 1603. Clarification of applicability of certain management 
constraints on major range and test facility base structure.
Sec. 1604. Travel expenses and health care for civilian employees of the 
Department of Defense abroad.
Sec. 1605. Travel, transportation, and relocation allowances for certain 
former nonappropriated fund employees.
Sec. 1606. Employment and salary practices applicable to Department of 
Defense overseas teachers.
Sec. 1607. Employment and compensation of civilian faculty members at 
certain Department of Defense schools.
Sec. 1608. Reimbursement of Department of Defense domestic dependent 
school board members for certain expenses.
Sec. 1609. Modification of authority for civilian employees of 
Department of Defense to participate voluntarily in reductions in force.
Sec. 1610. Wage-board compensatory time off.
Sec. 1611. Liquidation of restored annual leave that remains unused upon 
transfer of employee from installation being closed or realigned.
Sec. 1612. Waiver of requirement for repayment of Voluntary Separation 
Incentive pay by former Department of Defense employees reemployed by 
the Government without pay.
Sec. 1613. Simplification of rules relating to the observance of certain 
holidays.
Sec. 1614. Revision of certain travel management authorities.
Sec. 1615. Failure to comply with veterans' preference requirements to 
be treated as a prohibited personnel practice.
Sec. 1616. Pilot programs for defense employees converted to contractor 
employees due to privatization at closed military installations.

     Subtitle B--Department of Defense Intelligence Personnel Policy

Sec. 1631. Short title.
Sec. 1632. Management of civilian intelligence personnel.

Sec. 1633. Repeal of superseded sections and clerical and conforming 
amendments.
Sec. 1634. Other personnel management authorities.
Sec. 1635. Effective date.

  Subtitle A--Miscellaneous Matters Relating to Personnel Management, 
                          Pay, and Allowances

SEC. 1601. MODIFICATION OF REQUIREMENT FOR CONVERSION OF MILITARY 
POSITIONS TO CIVILIAN POSITIONS.
    (a) Elimination of Requirement for Fiscal Year 1997 Conversions.--
Paragraph (1) of section 1032(a) of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 429; 10 U.S.C. 
129a note) is amended--
        (1) by striking out ``September 30, 1997'' and inserting in 
    lieu thereof ``September 30, 1996''; and
        (2) by striking out ``10,000'' and inserting in lieu thereof 
    ``3,000''.
    (b) Conforming Amendments.--Such section is further amended--
        (1) by striking out paragraph (2); and
        (2) by redesignating paragraph (3) as paragraph (2).
    (c) Effective Date.--(1) The amendments made by this section shall 
take effect 30 days after the date on which the Secretary of Defense 
submits to Congress a certification that at least 3,000 military 
positions have been converted to civilian positions during fiscal year 
1996 as required by section 1032(a) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
429).
    (2) The Secretary shall publish in the Federal Register a notice of 
the submission of any certification to Congress under paragraph (1), 
including the date on which the certification was submitted to 
Congress.
SEC. 1602. RETENTION OF CIVILIAN EMPLOYEE POSITIONS AT MILITARY 
TRAINING BASES TRANSFERRED TO NATIONAL GUARD.
    (a) Retention of Employee Positions.--In the case of a military 
training installation described in subsection (b), the Secretary of 
Defense shall retain civilian employee positions of the Department of 
Defense at the installation after transfer to the National Guard to 
facilitate active and reserve component training at the installation. 
The Secretary shall determine the extent to which positions at the 
installation are to be retained as positions of the Department of 
Defense in consultation with the Adjutant General of the National Guard 
of the State in which the installation is located.
    (b) Military Training Installations Affected.--This section applies 
with respect to each military training installation that--
        (1) was approved for closure in 1995 under the Defense Base 
    Closure and Realignment Act of 1990 (part A of title XXIX of Public 
    Law 101-510; 10 U.S.C. 2687 note);
        (2) is scheduled for transfer to National Guard operation and 
    control; and
        (3) will continue to be used, after such transfer, to provide 
    training support to active and reserve components of the Armed 
    Forces.
    (c) Maximum Positions Retained.--The number of civilian employee 
positions retained at an installation under this section may not exceed 
20 percent of the Federal civilian workforce employed at the 
installation as of September 8, 1995.
    (d) Removal of Position.--The requirement to maintain a civilian 
employee position at an installation under this section terminates upon 
the later of the following:
        (1) The date of the departure or retirement from that position 
    by the civilian employee initially employed or retained in the 
    position as a result of this section.
        (2) The date on which the Secretary certifies to Congress that 
    the position is no longer required to ensure that effective support 
    is provided at the installation for active and reserve component 
    training.
SEC. 1603. CLARIFICATION OF APPLICABILITY OF CERTAIN MANAGEMENT 
CONSTRAINTS ON MAJOR RANGE AND TEST FACILITY BASE STRUCTURE.
    Section 129 of title 10, United States Code, is amended--
        (1) in subsection (c)(1), by inserting ``, the Major Range and 
    Test Facility Base,'' after ``industrial-type activities''; and
        (2) by adding at the end the following:
    ``(e) Subsections (a), (b), and (c) apply to the Major Range and 
Test Facility Base (MRTFB) at the installation level. With respect to 
the MRTFB structure, the term `funds made available' includes both 
direct appropriated funds and funds provided by MRTFB customers.''.
SEC. 1604. TRAVEL EXPENSES AND HEALTH CARE FOR CIVILIAN EMPLOYEES OF 
THE DEPARTMENT OF DEFENSE ABROAD.
    (a) In General.--Chapter 81 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 1599b. Employees abroad: travel expenses; health care

    ``(a) In General.--The Secretary of Defense may provide civilian 
employees, and members of their families, abroad with benefits that are 
comparable to certain benefits that are provided by the Secretary of 
State to members of the Foreign Service and their families abroad as 
described in subsections (b) and (c). The Secretary may designate the 
employees and members of families who are eligible to receive the 
benefits.
    ``(b) Travel and Related Expenses.--The Secretary of Defense may 
pay travel expenses and related expenses for purposes and in amounts 
that are comparable to the purposes for which, and the amounts in 
which, travel and related expenses are paid by the Secretary of State 
under section 901 of the Foreign Service Act of 1980 (22 U.S.C. 4081).
    ``(c) Health Care Program.--The Secretary of Defense may establish 
a health care program that is comparable to the health care program 
established by the Secretary of State under section 904 of the Foreign 
Service Act of 1980 (22 U.S.C. 4084).
    ``(d) Assistance.--The Secretary of Defense may enter into 
agreements with the heads of other departments and agencies of the 
Government in order to facilitate the payment of expenses authorized by 
subsection (b) and to carry out a health care pro- gram authorized by 
subsection (c).
    ``(e) Abroad Defined.--In this section, the term `abroad' means 
outside--
        ``(1) the United States; and
        ``(2) the territories and possessions of the United States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``1599b. Employees abroad: travel expenses; health care.''.
SEC. 1605. TRAVEL, TRANSPORTATION, AND RELOCATION ALLOWANCES FOR 
CERTAIN FORMER NONAPPROPRIATED FUND EMPLOYEES.
    (a) In General.--(1) Subchapter II of chapter 57 of title 5, United 
States Code, is amended by adding at the end the following new section:
``Sec. 5736. Travel, transportation, and relocation expenses of certain 
    nonappropriated fund employees
    ``An employee of a nonappropriated fund instrumentality of the 
Department of Defense or the Coast Guard described in section 2105(c) 
of this title who moves, without a break in service of more than 3 
days, to a position in the Department of Defense or the Coast Guard, 
respectively, may be authorized travel, transportation, and relocation 
expenses and allowances under the same conditions and to the same 
extent authorized by this subchapter for transferred employees.''.
    (2) The table of sections at the beginning of chapter 57 of such 
title is amended by inserting after the item relating to section 5735 
the following new item:
``5736. Travel, transportation, and relocation expenses of certain 
          nonappropriated fund employees.''.

    (b) Applicability.--Section 5736 of title 5, United States Code (as 
added by subsection (a)(1)), shall apply to moves between positions as 
described in such section that are effective on or after October 1, 
1996.

SEC. 1606. EMPLOYMENT AND SALARY PRACTICES APPLICABLE TO DEPARTMENT OF 
              DEFENSE OVERSEAS TEACHERS.

    (a) Expansion of Scope of Educators Covered.--Section 2 of the 
Defense Department Overseas Teachers Pay and Personnel Practices Act 
(20 U.S.C. 901) is amended--
        (1) in subparagraph (A) of paragraph (1), by inserting ``, or 
    are performed by an individual who carried out certain teaching 
    activities identified in regulations prescribed by the Secretary of 
    Defense'' after ``Defense,''; and
        (2) by striking out subparagraph (C) of paragraph (2) and 
    inserting in lieu thereof the following:
            ``(C) who is employed in a teaching position described in 
        paragraph (1).''.
    (b) Transfer of Responsibility for Employment and Salary 
Practices.--Section 5 of such Act (20 U.S.C. 903) is amended--
        (1) in subsection (a)--
            (A) by striking out ``Secretary of each military department 
        in the Department of Defense'' and inserting in lieu thereof 
        ``Secretary of Defense''; and
            (B) by striking out ``his military department'' and 
        inserting in lieu thereof ``the Department of Defense'';
        (2) in subsection (b)--
            (A) in the matter preceding paragraph (1), by striking out 
        ``secretary of each military department--'' and inserting in 
        lieu thereof ``Secretary of Defense--''; and
            (B) in paragraph (1), by striking out ``his military 
        department,'' and inserting in lieu thereof ``the Department of 
        Defense'';
        (3) in subsection (c)--
            (A) by striking out ``Secretary of each military 
        department'' and inserting in lieu thereof ``Secretary of 
        Defense''; and
            (B) by striking out ``his military department'' and 
        inserting in lieu thereof ``the Department of Defense''; and
        (4) in subsection (d), by striking out ``Secretary of each 
    military department'' and inserting in lieu thereof ``Secretary of 
    Defense''.
SEC. 1607. EMPLOYMENT AND COMPENSATION OF CIVILIAN FACULTY MEMBERS AT 
CERTAIN DEPARTMENT OF DEFENSE SCHOOLS.
    (a) Faculties.--Subsection (c) of section 1595 of title 10, United 
States Code, is amended by adding at the end the following new 
paragraphs:
        ``(4) The English Language Center of the Defense Language 
    Institute.
        ``(5) The Asia-Pacific Center for Security Studies.''.
    (b) Certain Administrators.--Such section is further amended by 
adding at the end the following new subsection:
    ``(f) Application to Director and Deputy Director at Asia-Pacific 
Center for Security Studies.--In the case of the Asia-Pacific Center 
for Security Studies, this section also applies with respect to the 
Director and the Deputy Director.''.
SEC. 1608. REIMBURSEMENT OF DEPARTMENT OF DEFENSE DOMESTIC DEPENDENT 
SCHOOL BOARD MEMBERS FOR CERTAIN EXPENSES.
    Section 2164(d) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(7) The Secretary may provide for reimbursement of a school board 
member for expenses incurred by the member for travel, transportation, 
lodging, meals, program fees, activity fees, and other appropriate 
expenses that the Secretary determines are reasonable and necessary for 
the performance of school board duties by the member.''.
SEC. 1609. MODIFICATION OF AUTHORITY FOR CIVILIAN EMPLOYEES OF 
DEPARTMENT OF DEFENSE TO PARTICIPATE VOLUNTARILY IN REDUCTIONS IN 
FORCE.
    Subsection (f) of section 3502 of title 5, United States Code, is 
amended to read as follows:
    ``(f)(1) The Secretary of Defense or the Secretary of a military 
department may--
        ``(A) separate from service any employee who volunteers to be 
    separated under this subparagraph even though the employee is not 
    otherwise subject to separation due to a reduction in force; and
        ``(B) for each employee voluntarily separated under 
    subparagraph (A), retain an employee in a similar position who 
    would otherwise be separated due to a reduction in force.
    ``(2) The separation of an employee under paragraph (1)(A) shall be 
treated as an involuntary separation due to a reduction in force.
    ``(3) An employee with critical knowledge and skills (as defined by 
the Secretary concerned) may not participate in a voluntary separation 
under paragraph (1)(A) if the Secretary concerned determines that such 
participation would impair the performance of the mission of the 
Department of Defense or the military department concerned.
    ``(4) The regulations prescribed under this section shall 
incorporate the authority provided in this subsection.
    ``(5) No authority under paragraph (1) may be exercised after 
September 30, 2001.''.

SEC. 1610. WAGE-BOARD COMPENSATORY TIME OFF.

    (a) In General.--Section 5543 of title 5, United States Code, is 
amended--
        (1) by redesignating subsection (b) as subsection (c); and
        (2) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) The head of an agency may, on request of an employee, grant 
the employee compensatory time off from the employee's scheduled tour 
of duty instead of payment under section 5544 or section 7 of the Fair 
Labor Standards Act of 1938 for an equal amount of time spent in 
irregular or occasional overtime work. An agency head may not require 
an employee to be compensated for overtime work with an equivalent 
amount of compensatory time-off from the employee's tour of duty.''.
    (b) Conforming Amendment.--Section 5544(c) of title 5, United 
States Code, is amended by inserting ``and the provisions of section 
5543(b)'' after ``the last two sentences of subsection (a)''.
SEC. 1611. LIQUIDATION OF RESTORED ANNUAL LEAVE THAT REMAINS UNUSED 
UPON TRANSFER OF EMPLOYEE FROM INSTALLATION BEING CLOSED OR REALIGNED.
    (a) Lump-Sum Payment Required.--Section 5551 of title 5, United 
States Code, is amended by adding at the end the following:
    ``(c)(1) Annual leave that is restored to an employee of the 
Department of Defense under section 6304(d) of this title by reason of 
the operation of paragraph (3) of such section and remains unused upon 
the transfer of the employee to a position described in paragraph (2) 
shall be liquidated by payment of a lump-sum for such leave to the 
employee upon the transfer.
    ``(2) A position referred to in paragraph (1) is a position in a 
department or agency of the Federal Government outside the Department 
of Defense or a Department of Defense position that is not located at a 
Department of Defense installation being closed or realigned as 
described in section 6304(d)(3) of this title.''.
    (b) Applicability.--Subsection (c) of section 5551 of title 5, 
United States Code (as added by subsection (a)), shall apply with 
respect to transfers described in such subsection (c) that take effect 
on or after the date of the enactment of this Act.
SEC. 1612. WAIVER OF REQUIREMENT FOR REPAYMENT OF VOLUNTARY SEPARATION 
INCENTIVE PAY BY FORMER DEPARTMENT OF DEFENSE EMPLOYEES REEMPLOYED BY 
THE GOVERNMENT WITHOUT PAY.
    (a) In General.--Section 5597(g) of title 5, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(5) If the employment is without compensation, the appointing 
official may waive the repayment.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to employment accepted on or after the date of the 
enactment of this Act.
SEC. 1613. SIMPLIFICATION OF RULES RELATING TO THE OBSERVANCE OF 
CERTAIN HOLIDAYS.
    Section 6103 of title 5, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d)(1) For purposes of this subsection--
        ``(A) the term `compressed schedule' has the meaning given such 
    term by section 6121(5); and
        ``(B) the term `adverse agency impact' has the meaning given 
    such term by section 6131(b).
    ``(2) An agency may prescribe rules under which employees on a 
compressed schedule may, in the case of a holiday that occurs on a 
regularly scheduled non-workday for such employees, and notwithstanding 
any other provision of law or the terms of any collective bargaining 
agreement, be required to observe such holiday on a workday other than 
as provided by subsection (b), if the agency head determines that it is 
necessary to do so in order to prevent an adverse agency impact.''.
SEC. 1614. REVISION OF CERTAIN TRAVEL MANAGEMENT AUTHORITIES.
    (a) Repeal of Requirements Relating to Fire-Safe Accommodations.--
(1) Section 5707 of title 5, United States Code, is amended by striking 
out subsection (d).
    (2) Subsection (b) of section 5 of the Hotel and Motel Fire Safety 
Act of 1990 (Public Law 101-391; 104 Stat. 751; 5 U.S.C. 5707 note) is 
repealed.
    (b) Repeal of Prohibition on Payment of Lodging Expenses of 
Department of Defense Employees and Other Civilians When Adequate 
Government Quarters Are Available.--(1) Section 1589 of title 10, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 81 of such 
title is amended by striking out the item relating to such section.
SEC. 1615. FAILURE TO COMPLY WITH VETERANS' PREFERENCE REQUIREMENTS TO 
BE TREATED AS A PROHIBITED PERSONNEL PRACTICE.
    (a) In General.--(1) Chapter 81 of title 10, United States Code, as 
amended by section 1604, is further amended by adding at the end the 
following new section:
``Sec. 1599c. Veterans' preference requirements: Department of Defense 
     failure to comply treated as a prohibited personnel practice
    ``(a) Prohibited Personnel Practice.--It is a prohibited personnel 
practice for a person referred to in subsection (b) who has authority 
described in that subsection--
        ``(1) knowingly to take, recommend, or approve any personnel 
    action with respect to such authority if the taking of such action 
    violates a veterans' preference; or
        ``(2) knowingly to fail to take, recommend, or approve any 
    personnel action with respect to such authority, if the failure to 
    take such action violates a veterans' preference.
    ``(b) Persons Covered.--Subsection (a) applies with respect to--
        ``(1) an officer or employee of the Department of Defense who 
    has authority to take, direct others to take, recommend, or approve 
    a personnel action with respect to an employee of the Department of 
    Defense; and
        ``(2) a member of the armed forces who has such authority.
    ``(c) Veterans' Preference Defined.--(1) In this section, the term 
`veterans' preference' means any of the following provisions of law:
        ``(A) Sections 2108, 3305(b), 3309, 3310, 3311, 3312, 3313, 
    3314, 3315, 3316, 3317(b), 3318, 3320, 3351, 3352, 3363, 3501, 
    3502(b), 3504, and 4303(e) of title 5 and (with respect to a 
    preference eligible referred to in section 7511(a)(1)(B) of such 
    title) subchapter II of chapter 75 and section 7701 of such title.
        ``(B) Sections 943(c)(2) and 1784(c) of this title.
        ``(C) Section 1308(b) of the Alaska National Interest Lands 
    Conservation Act (16 U.S.C. 3198(b)).
        ``(D) Section 301(c) of the Foreign Service Act of 1980 (22 
    U.S.C. 3941(c)).
        ``(E) Section 3(a)(11) of the Administrative Office of the 
    United States Courts Personnel Act of 1990 (28 U.S.C. 602 note).
        ``(F) Sections 106(f), 7281(e), and 7802(5) of title 38.
        ``(G) Section 1005(a) of title 39.
        ``(H) Any other provision of law that the Director of the 
    Office of Personnel Management designates in regulations as being a 
    veterans' preference for the purposes of this section.
    ``(2) For the purposes of this section, such term includes any 
regulation prescribed under subsection (b) or (c) of section 1302 of 
title 5 and any other regulation that implements a provision of law 
referred to in paragraph (1).
    ``(d) Personnel Action Defined.--In this section, the term 
`personnel action' has the meaning given that term in section 2302 of 
title 5.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1599c. Veterans' preference requirements: Department of Defense 
          failure to comply treated as a prohibited personnel 
          practice.''.

    (b) Applicability of Title 5 Procedures and Sanctions.--Paragraph 
(1) of section 2302(a) of title 5, United States Code, is amended to 
read as follows:
    ``(1) For purposes of this title, `prohibited personnel practice' 
means the following:
        ``(A) Any action described in subsection (b) of this section.
        ``(B) Any action or failure to act that is designated as a 
    prohibited personnel action under section 1599c(a) of title 10.''.
    (c) Reporting Requirement.--Not later than six months after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a written report on--
        (1) the implementation of--
            (A) section 1599c of title 10, United States Code, as added 
        by subsection (a); and
            (B) subparagraph (B) of section 2302(a)(1) of title 5, 
        United States Code, as added by subsection (b); and
        (2) the administration of veterans' preference requirements by 
    the Department of Defense generally.
SEC. 1616. PILOT PROGRAMS FOR DEFENSE EMPLOYEES CONVERTED TO CONTRACTOR 
EMPLOYEES DUE TO PRIVATIZATION AT CLOSED MILITARY INSTALLATIONS.
    (a) Pilot Programs Authorized.--(1) The Secretary of Defense, after 
consultation with the Director of the Office of Personnel Management, 
may establish one or more pilot programs under which Federal retirement 
benefits are provided in accordance with this section to persons who 
convert from Federal employment to employment by a Department of 
Defense contractor in connection with the privatization of the 
performance of functions at selected military installations being 
closed under the base closure and realignment process.
    (2) The Secretary of Defense shall select the military 
installations to be covered by a pilot program under this section.
    (b) Eligible Converted Employees.--(1) A person is a converted 
employee eligible for Federal retirement benefits under this section if 
the person is a former employee of the Department of Defense (other 
than a temporary employee) who--
        (A) while employed by the Department of Defense at a military 
    installation selected to participate in a pilot program, performed 
    a function that was recommended, in a report of the Defense Base 
    Closure and Realignment Commission submitted to the President under 
    the Defense Base Closure and Realignment Act of 1990 (title XXIX of 
    Public Law 101-510; 10 U.S.C. 2687 note), to be privatized for 
    performance by a defense contractor at the same installation or in 
    the vicinity of the installation;
        (B) while so employed, separated from Federal service after 
    being notified that the employee would be separated in a reduction 
    in force resulting from such privatization;
        (C) at the time separated from Federal service, was covered 
    under the Civil Service Retirement System, but was not eligible for 
    an immediate annuity under the Civil Service Retirement System;
        (D) does not withdraw retirement contributions under section 
    8342 of title 5, United States Code;
        (E) within 60 days following such separation, is employed by 
    the defense contractor selected to privatize the function to 
    perform substantially the same function performed by the person 
    before the separation; and
        (F) remains employed by the defense contractor (or a successor 
    defense contractor) or subcontractor of the defense contractor (or 
    successor defense contractor) until attaining early deferred 
    retirement age (unless the employment is sooner involuntarily 
    terminated for reasons other than performance or conduct of the 
    employee).
    (2) A person who, under paragraph (1), would otherwise be eligible 
for an early deferred annuity under this section shall not be eligible 
for such benefits if the person received separation pay or severance 
pay due to a separation described in subparagraph (B) of that paragraph 
unless the person repays the full amount of such pay with interest 
(computed at a rate determined appropriate by the Director of the 
Office of Personnel Management) to the Department of Defense before 
attaining early deferred retirement age.
    (c) Retirement Benefits of Converted Employees.--In the case of a 
converted employee covered by a pilot program, payment of a deferred 
annuity for which the converted employee is eligible under section 
8338(a) of title 5, United States Code, shall commence on the first day 
of the first month that begins after the date on which the converted 
employee attains early deferred retirement age, notwithstanding the age 
requirement under that section. If the employment of a converted 
employee is involuntarily terminated by the defense contractor or 
subcontractor as described in subsection (b)(1)(F) and the converted 
employee resumes Federal service before the converted employee attains 
early deferred retirement age, the converted employee shall once again 
be covered under the Civil Service Retirement System instead of the 
pilot program.
    (d) Computation of Average Pay.--(1)(A) This paragraph applies to a 
converted employee who was employed in a position classified under the 
General Schedule immediately before the employee's covered separation 
from Federal service.
    (B) Subject to subparagraph (C), for purposes of computing the 
deferred annuity for a converted employee referred to in subparagraph 
(A), the average pay of the converted employee, computed under section 
8331(4) of title 5, United States Code, as of the date of the 
employee's covered separation from Federal service, shall be adjusted 
at the same time and by the same percentage that rates of basic pay are 
increased under section 5303 of such title during the period beginning 
on that date and ending on the date on which the converted employee 
attains early deferred retirement age.
    (C) The average pay of a converted employee, as adjusted under 
subparagraph (B), may not exceed the amount to which an annuity of the 
converted employee could be increased under section 8340 of title 5, 
United States Code, in accordance with the limitation in subsection 
(g)(1) of such section (relating to maximum pay, final pay, or average 
pay).
    (2)(A) This paragraph applies to a converted employee who was a 
prevailing rate employee (as defined under section5342(2) of title 5, 
United States Code) immediately before the employee's covered 
separation from Federal service.
    (B) For purposes of computing the deferred annuity for a converted 
employee referred to in subparagraph (A), the average pay of the 
converted employee, computed under section 8331(4) of title 5, United 
States Code, as of the date of the employee's covered separation from 
Federal service, shall be adjusted at the same time and by the same 
percentage that pay rates for positions that are in the same area as, 
and are comparable to, the last position the converted employee held as 
a prevailing rate employee, are increased under section 5343(a) of such 
title during the period beginning on that date and ending on the date 
on which the converted employee attains early deferred retirement age.
    (e) Payment of Unfunded Liability.--(1) The military department 
concerned shall be liable for that portion of any estimated increase in 
the unfunded liability of the Civil Service Retirement and Disability 
Fund established under section 8348 of title 5, United States Code, 
which is attributable to any benefits payable from such Fund to a 
converted employee, and any survivor of a converted employee, when the 
increase results from--
        (A) an increase in the average pay of the converted employee 
    under subsection (d) upon which such benefits are computed; and
        (B) the commencement of an early deferred annuity in accordance 
    with this section before the attainment of 62 years of age by the 
    converted employee.
    (2) The estimated increase in the unfunded liability for each 
department referred to in paragraph (1) shall be determined by the 
Director of the Office of Personnel Management. In making the 
determination, the Director shall consider any savings to the Fund as a 
result of a pilot program established under this section. The Secretary 
of the military department concerned shall pay the amount so determined 
to the Director in 10 equal annual installments with interest computed 
at the rate used in the most recent valuation of the Civil Service 
Retirement System, with the first payment thereof due at the end of the 
fiscal year in which an increase in average pay under subsection (d) 
becomes effective.
    (f) Contractor Service Not Creditable.--Service performed by a 
converted employee for a defense contractor after the employee's 
covered separation from Federal service is not creditable service for 
purposes of subchapter III of chapter 83 of title 5, United States 
Code.
    (g) Receipt of Benefits While Employed by a Defense Contractor.--A 
converted employee may commence receipt of an early deferred annuity in 
accordance with this section while continuing to work for a defense 
contractor.
    (h) Lump-Sum Credit Payment.--If a converted employee dies before 
attaining early deferred retirement age, such employee shall be treated 
as a former employee who dies not retired for purposes of payment of 
the lump-sum credit under section 8342(d) of title 5, United States 
Code.
    (i) Continued Federal Health Benefits Coverage.--Notwithstanding 
section 8905a(e)(1)(A) of title 5, United States Code, the continued 
coverage of a converted employee for health benefits under chapter 89 
of such title by reason of the application of section 8905a of such 
title to such employee shall terminate 90 days after the date of the 
employee's covered separation from Federal employment. For the purposes 
of the preceding sentence, a person who, except for subsection (b)(2), 
would be a converted employee shall be considered a converted employee.
    (j) Report by General Accounting Office.--The Comptroller General 
shall conduct a study of each pilot program, if any, established under 
this section and submit a report on the pilot program to Congress not 
later than two years after the date on which the program is 
established. The report shall contain the following:
        (1) A review and evaluation of the program, including--
            (A) an evaluation of the success of the privatization 
        outcomes of the program;
            (B) a comparison and evaluation of such privatization 
        outcomes with the privatization outcomes with respect to 
        facilities at other military installations closed or realigned 
        under the base closure laws;
            (C) an evaluation of the impact of the program on the 
        Federal workforce and whether the program results in the 
        maintenance of a skilled workforce for defense contractors at 
        an acceptable cost to the military department concerned; and
            (D) an assessment of the extent to which the program is a 
        cost-effective means of facilitating privatization of the 
        performance of Federal activities.
        (2) Recommendations relating to the expansion of the program to 
    other installations and employees.
        (3) Any other recommendation relating to the program.
    (k) Implementing Regulations.--Not later than 30 days after the 
Secretary of Defense notifies the Director of the Office of Personnel 
Management of a decision to establish a pilot program under this 
section, the Director shall prescribe regulations to carry out the 
provisions of this section with respect to that pilot program. Before 
prescribing the regulations, the Director shall consult with the 
Secretary.
    (l) Definitions.--In this section:
        (1) The term ``converted employee'' means a person who, 
    pursuant to subsection (b), is eligible for benefits under this 
    section.
        (2) The term ``covered separation from Federal service'' means 
    a separation from Federal service as described under subsection 
    (b)(1)(B).
        (3) The term ``Civil Service Retirement System'' means the 
    retirement system under subchapter III of chapter 83 of title 5, 
    United States Code.
        (4) The term ``defense contractor'' means any entity that--
            (A) contracts with the Department of Defense to perform a 
        function previously performed by Department of Defense 
        employees;
            (B) performs that function at the same installation at 
        which such function was previously performed by Department of 
        Defense employees or in the vicinity of that installation; and
            (C) is the employer of one or more converted employees.
        (5) The term ``early deferred retirement age'' means the first 
    age at which a converted employee would have been eligible for 
    immediate retirement under subsection (a) or (b) of section 8336 of 
    title 5, United States Code, if such converted employee had 
    remained an employee within the meaning of section 8331(1) of such 
    title continuously until attaining such age.
        (6) The term ``severance pay'' means severance pay payable 
    under section 5595 of title 5, United States Code.
        (7) The term ``separation pay'' means separation pay payable 
    under section 5597 of title 5, United States Code.
    (m) Application of Pilot Program.--In the event that a pilot 
program is established for a military installation, the pilot program 
shall apply to a covered separation from Federal service by an employee 
of the Department of Defense at the installation occurring on or after 
August 1, 1996.

    Subtitle B--Department of Defense Intelligence Personnel Policy

SEC. 1631. SHORT TITLE.

    This subtitle may be cited as the ``Department of Defense Civilian 
Intelligence Personnel Policy Act of 1996''.

SEC. 1632. MANAGEMENT OF CIVILIAN INTELLIGENCE PERSONNEL.

    (a) Consolidation and Standardization of Civilian Personnel 
Policy.--Chapter 83 of title 10, United States Code, is amended--
        (1) by redesignating section 1602 as section 1621 and 
    transferring that section so as to appear after section 1605;
        (2) by redesignating sections 1606 and 1608 as section 1622 and 
    1623, respectively; and
        (3) by striking out the chapter heading, the table of sections, 
    and sections 1601, 1603, and 1604 and inserting in lieu thereof the 
    following:

         ``CHAPTER 83--CIVILIAN DEFENSE INTELLIGENCE EMPLOYEES

``Subchapter
                                                                    Sec.
``I. Defense-Wide Intelligence Personnel Policy...................  1601

``II. Defense Intelligence Agency Personnel.......................  1621

       ``SUBCHAPTER I--DEFENSE-WIDE INTELLIGENCE PERSONNEL POLICY

``Sec.
``1601. Civilian intelligence personnel: general authority to establish 
          excepted positions, appoint personnel, and fix rates of pay.
``1602. Basic pay.
``1603. Additional compensation, incentives, and allowances.
``1605. Benefits for certain employees assigned outside the United 
          States.
``1606. Defense Intelligence Senior Executive Service.
``1607. Intelligence Senior Level positions.
``1608. Time-limited appointments.
``1609. Termination of defense intelligence employees.
``1610. Reductions and other adjustments in force.
``1611. Postemployment assistance: certain terminated intelligence 
          employees.
``1612. Merit system principles and civil service protections: 
          applicability.
``1613. Miscellaneous provisions.
``1614. Definitions.
``Sec. 1601. Civilian intelligence personnel: general authority to 
    establish excepted positions, appoint personnel, and fix rates of 
    pay
    ``(a) General Authority.--The Secretary of Defense may--
        ``(1) establish, as positions in the excepted service, such 
    defense intelligence positions in the intelligence components of 
    the Department of Defense and the military departments as the 
    Secretary determines necessary to carry out the intelligence 
    functions of those components and departments, including--
            ``(A) Intelligence Senior Level positions designated under 
        section 1607 of this title; and
            ``(B) positions in the Defense Intelligence Senior 
        Executive Service;
        ``(2) appoint individuals to those positions (after taking into 
    consideration the availability of preference eligibles for 
    appointment to those positions); and
        ``(3) fix the compensation of such individuals for service in 
    those positions.
    ``(b) Construction With Other Laws.--The authority of the Secretary 
of Defense under subsection (a) applies without regard to the 
provisions of any other law relating to the appointment, number, 
classification, or compensation of employees.

``Sec. 1602. Basic pay

    ``(a) Authority To Fix Rates of Basic Pay.--The Secretary of 
Defense (subject to the provisions of this section) shall fix the rates 
of basic pay for positions established under section 1601 of this title 
in relation to the rates of basic pay provided in subpart D of part III 
of title 5 for positions subject to that subpart which have 
corresponding levels of duties and responsibilities.
    ``(b) Maximum Rates.--A rate of basic pay fixed under subsection 
(a) for a position established under section 1601 of this title may not 
(except as otherwise provided by law) exceed--
        ``(1) in the case of a Defense Intelligence Senior Executive 
    Service position, the maximum rate provided in section 5382 of 
    title 5;
        ``(2) in the case of an Intelligence Senior Level position, the 
    maximum rate provided in section 5382 of title 5; and
        ``(3) in the case of any other position, the maximum rate 
    provided in section 5306(e) of title 5.
    ``(c) Prevailing Rate Systems.--The Secretary of Defense may, 
consistent with section 5341 of title 5, adopt such provisions of that 
title as provide for prevailing rate systems ofbasic pay and may apply 
those provisions to positions for civilian employees in or under which 
the Department of Defense may employ individuals described by section 
5342(a)(2)(A) of that title.

``Sec. 1603. Additional compensation, incentives, and allowances

    ``(a) Additional Compensation Based on Title 5 Authorities.--The 
Secretary of Defense may provide employees in defense intelligence 
positions compensation (in addition to basic pay), including benefits, 
incentives, and allowances, consistent with, and not in excess of the 
level authorized for, comparable positions authorized by title 5.
    ``(b) Allowances Based on Living Costs and Environment.--(1) In 
addition to basic pay, employees in defense intelligence positions who 
are citizens or nationals of the United States and are stationed 
outside the continental United States or in Alaska may be paid an 
allowance, in accordance with regulations prescribed by the Secretary 
of Defense, while they are so stationed.
    ``(2) An allowance under this subsection shall be based on--
        ``(A) living costs substantially higher than in the District of 
    Columbia;
        ``(B) conditions of environment which (i) differ substantially 
    from conditions of environment in the continental United States, 
    and (ii) warrant an allowance as a recruitment incentive; or
        ``(C) both of the factors specified in subparagraphs (A) and 
    (B).
    ``(3) An allowance under this subsection may not exceed the 
allowance authorized to be paid by section 5941(a) of title 5 for 
employees whose rates of basic pay are fixed by statute.''.
    (b) Matters Other Than Pay and Benefits.--Such chapter is further 
amended by inserting after section 1605 the following new sections:

``Sec. 1606. Defense Intelligence Senior Executive Service

    ``(a) Establishment.--The Secretary of Defense may establish a 
Defense Intelligence Senior Executive Service for defense intelligence 
positions established pursuant to section 1601(a) of this title that 
are equivalent to Senior Executive Service positions. The number of 
positions in the Defense Intelligence Senior Executive Service may not 
exceed 492.
    ``(b) Regulations Consistent With Title 5 Provisions.--The 
Secretary of Defense shall prescribe regulations for the Defense 
Intelligence Senior Executive Service which are consistent with the 
requirements set forth in sections 3131, 3132(a)(2), 3396(c), 3592, 
3595(a), 5384, and 6304 of title 5, subsections (a), (b), and (c) of 
section 7543 of such title (except that any hearing or appeal to which 
a member of the Defense Intelligence Senior Executive Service is 
entitled shall be held or decided pursuant to those regulations), and 
subchapter II of chapter 43 of such title. To the extent that the 
Secretary determines it practicable to apply to members of, or 
applicants for, the Defense Intelligence Senior Executive Service other 
provisions of title 5 that apply to members of, or applicants for, the 
Senior Executive Service, the Secretary shall also prescribe 
regulations to implement those provisions with respect to the Defense 
Intelligence Senior Executive Service.
    ``(c) Award of Rank to Members of the Defense Intelligence Senior 
Executive Service.--The President, based on the recommendations of the 
Secretary of Defense, may award a rank referred to in section 4507 of 
title 5 to members of the Defense Intelligence Senior Executive 
Service. The award of such rank shall be made in a manner consistent 
with the provisions of that section.

``Sec. 1607. Intelligence Senior Level positions

    ``(a) Designation of Positions.--The Secretary of Defense may 
designate as an Intelligence Senior Level position any defense 
intelligence position that, as determined by the Secretary--
        ``(1) is classifiable above grade GS-15 of the General 
    Schedule;
        ``(2) does not satisfy functional or program management 
    criteria for being designated a Defense Intelligence Senior 
    Executive Service position; and
        ``(3) has no more than minimal supervisory responsibilities.
    ``(b) Regulations.--Subsection (a) shall be carried out in 
accordance with regulations prescribed by the Secretary of Defense.

``Sec. 1608. Time-limited appointments

    ``(a) Authority for Time-Limited Appointments.--The Secretary of 
Defense may by regulation authorize appointing officials to make time-
limited appointments to defense intelligence positions specified in the 
regulations.
    ``(b) Review of Use of Authority.--The Secretary of Defense shall 
review each time-limited appointment in a defense intelligence position 
at the end of the first year of the period of the appointment and 
determine whether the appointment should be continued for the remainder 
of the period. The continuation of a time-limited appointment after the 
first year shall be subject to the approval of the Secretary.
    ``(c) Condition on Permanent Appointment to Defense Intelligence 
Senior Executive Service.--An employee serving in a defense 
intelligence position pursuant to a time-limited appointment is not 
eligible for a permanent appointment to a Defense Intelligence Senior 
Executive Service position (including a position in which the employee 
is serving) unless the employee is selected for the permanent 
appointment on a competitive basis.
    ``(d) Time-Limited Appointment Defined.--In this section, the term 
`time-limited appointment' means an appointment (subject to the 
condition in subsection (b)) for a period not to exceed two years.

``Sec. 1609. Termination of defense intelligence employees

    ``(a) Termination Authority.--Notwithstanding any other provision 
of law, the Secretary of Defense may terminate the employment of any 
employee in a defense intelligence position if the Secretary--
        ``(1) considers that action to be in the interests of the 
    United States; and
        ``(2) determines that the procedures prescribed in other 
    provisions of law that authorize the termination of the employment 
    of such employee cannot be invoked in a manner consistent with the 
    national security.
    ``(b) Finality.--A decision by the Secretary of Defense to 
terminate the employment of an employee under this section is final and 
may not be appealed or reviewed outside the Department of Defense.
    ``(c) Notification to Congressional Committees.--Whenever the 
Secretary of Defense terminates the employment of an employee under the 
authority of this section, the Secretary shall promptly notify the 
congressional oversight committees of such termination.
    ``(d) Preservation of Right To Seek Other Employment.--Any 
termination of employment under this section does not affect the right 
of the employee involved to seek or accept employment with any other 
department or agency of the United States if that employee is declared 
eligible for such employment by the Director of the Office of Personnel 
Management.
    ``(e) Limitation on Delegation.--The authority of the Secretary of 
Defense under this section may be delegated only to the Deputy 
Secretary of Defense, the head of an intelligence component of the 
Department of Defense (with respect to employees of that component), or 
the Secretary of a military department (with respect to employees of 
that department). An action to terminate employment of such an employee 
by any such official may be appealed to the Secretary of Defense.

``Sec. 1610. Reductions and other adjustments in force

    ``(a) In General.--The Secretary of Defense shall prescribe 
regulations for the separation of employees in defense intelligence 
positions, including members of the Defense Intelligence Senior 
Executive Service and employees in Intelligence Senior Level positions, 
during a reduction in force or other adjustment in force. The 
regulations shall apply to such a reduction in force or other 
adjustment in force notwithstanding sections 3501(b) and 3502 of title 
5.
    ``(b) Matters To Be Given Effect.--The regulations shall give 
effect to the following:
        ``(1) Tenure of employment.
        ``(2) Military preference, subject to sections 3501(a)(3) and 
    3502(b) of title 5.
        ``(3) The veteran's preference under section 3502(b) of title 
    5.
        ``(4) Performance.
        ``(5) Length of service computed in accordance with the second 
    sentence of section 3502(a) of title 5.
    ``(c) Regulations Relating to Defense Intelligence SES.--The 
regulations relating to removal from the Defense Intelligence Senior 
Executive Service in a reduction in force or other adjustment in force 
shall be consistent with section 3595(a) of title 5.
    ``(d) Right of Appeal.--(1) The regulations shall provide a right 
of appeal regarding a personnel action under the regulations. The 
appeal shall be determined within the Department of Defense. An appeal 
determined at the highest level provided in the regulations shall be 
final and not subject to review outside the Department of Defense. A 
personnel action covered by the regulations is not subject to any other 
provision of law that provides appellate rights or procedures.
    ``(2) Notwithstanding paragraph (1), a preference eligible referred 
to in section 7511(a)(1)(B) of title 5 may elect to have an appeal of a 
personnel action taken against the preference eligible under the 
regulation determined by the Merit Systems Protection Board instead of 
having the appeal determined within the Department of Defense. Section 
7701 of title 5 shall apply to any such appeal to the Merit Systems 
Protection Board.
    ``(e) Consultation With OPM.--Regulations under this section shall 
be prescribed in consultation with the Director of the Office of 
Personnel Management.''.
    (c) Transfer of Section 1599.--Subtitle A of title 10, United 
States Code, is amended by transferring section 1599 to chapter 83 of 
such title, inserting such section after section 1610 (as added by 
subsection (b)), redesignating such section as section 1611, and in 
subsection (f) striking out ``means'' and all that follows and 
inserting in lieu thereof ``includes the National Reconnaissance Office 
and any intelligence component of a military department.''.
    (d) Additional Provisions.--Such chapter is further amended by 
inserting after section 1611 (as so transferred and redesignated) the 
following new sections:
``Sec. 1612. Merit system principles and civil service protections: 
    applicability
    ``(a) Applicability of Merit System Principles.--Section 2301 of 
title 5 shall apply to the exercise of authority under this subchapter 
(other than sections 1605 and 1611).
    ``(b) Civil Service Protections.--(1) If, in the case of a position 
established under authority other than section 1601(a)(1) of this title 
that is reestablished as an excepted service position under that 
section, the provisions of law referred to in paragraph (2) applied to 
the person serving in that position immediately before the position is 
so reestablished and such provisions of law would not otherwise apply 
to the person while serving in the position as so reestablished, then 
such provisions of law shall, subject to paragraph (3), continue to 
apply to the person with respect to service in that position for as 
long as the person continues to serve in the position without a break 
in service.
    ``(2) The provisions of law referred to in paragraph (1) are the 
following provisions of title 5:
        ``(A) Section 2302, relating to prohibited personnel practices.
        ``(B) Chapter 75, relating to adverse actions.
    ``(3)(A) Notwithstanding any provision of chapter 75 of title 5, an 
appeal of an adverse action by an individual employee covered by 
paragraph (1) shall be determined within the Department of Defense if 
the employee so elects.
    ``(B) The Secretary of Defense shall prescribe the procedures for 
initiating and determining appeals of adverse actions pursuant to 
elections made under subparagraph (A).

``Sec. 1613. Miscellaneous provisions

    ``(a) Collective Bargaining Agreements.--Nothing in sections 1601 
through 1604 and 1606 through 1610 may be construed to impair the 
continued effectiveness of a collective bargaining agreement with 
respect to an agency or office that is a successor to an agency or 
office covered by the agreement before the succession.
    ``(b) Notice to Congress of Regulations.--The Secretary of Defense 
shall notify Congress of any regulations prescribed to carry out this 
subchapter (other than sections 1605 and 1611). Such notice shall be 
provided by submitting a copy of the regulations to the congressional 
oversight committees not less than 60 days before such regulations take 
effect.

``Sec. 1614. Definitions

    ``In this subchapter:
        ``(1) The term `defense intelligence position' means a civilian 
    position as an intelligence officer or intelligence employee of an 
    intelligence component of the Department of Defense or of a 
    military department.
        ``(2) The term `intelligence component of the Department of 
    Defense' means any of the following:
            ``(A) The National Security Agency.
            ``(B) The Defense Intelligence Agency.
            ``(C) The National Imagery and Mapping Agency.
            ``(D) Any other component of the Department of Defense that 
        performs intelligence functions and is designated by the 
        Secretary of Defense as an intelligence component of the 
        Department of Defense.
            ``(E) Any successor to a component specified in, or 
        designated pursuant to, this paragraph.
        ``(3) The term `congressional oversight committees' means--
            ``(A) the Committee on Armed Services and the Select 
        Committee on Intelligence of the Senate; and
            ``(B) the Committee on National Security and the Permanent 
        Select Committee on Intelligence of the House of 
        Representatives.
        ``(4) The term `excepted service' has the meaning given such 
    term in section 2103 of title 5.
        ``(5) The term `preference eligible' has the meaning given such 
    term in section 2108(3) of title 5.
        ``(6) The term `Senior Executive Service position' has the 
    meaning given such term in section 3132(a)(2) of title 5.
        ``(7) The term `collective bargaining agreement' has the 
    meaning given such term in section 7103(8) of title 5.''.
    (e) Designation of New Subchapter II.--Chapter 83 of such title is 
further amended by inserting after section 1614 (as added by subsection 
(d)) the following:

         ``SUBCHAPTER II--DEFENSE INTELLIGENCE AGENCY PERSONNEL

``Sec.
``1621. Defense Intelligence Agency merit pay system.
``1622. Uniform allowance: civilian employees.
``1623. Financial assistance to certain employees in acquisition of 
          critical skills.''.
SEC. 1633. REPEAL OF SUPERSEDED SECTIONS AND CLERICAL AND CONFORMING 
AMENDMENTS.
    (a) Repeal of Separate Military Department Authorities.--Section 
1590 of title 10, United States Code, is repealed.
    (b) Repeal of Separate National Security Agency Authorities.--The 
following provisions of law are repealed:
        (1) Sections 2 and 4 of the National Security Agency Act of 
    1959 (50 U.S.C. 402 note).
        (2) Section 303 of the Internal Security Act of 1950 (50 U.S.C. 
    833).
    (c) Clerical Amendments.--Title 10, United States Code, is amended 
as follows:
        (1) The heading for section 1605 is amended to read as follows:
``Sec. 1605. Benefits for certain employees assigned outside the United 
    States''.
        (2) The table of sections at the beginning of chapter 81 is 
    amended by striking out the items relating to sections 1590 and 
    1599.
        (3) The tables of chapters at the beginning of subtitle A, and 
    at the beginning of part II of subtitle A, are amended by striking 
    out the item relating to chapter 83 and inserting in lieu thereof 
    the following:

``83. Civilian Defense Intelligence Employees....................1601''.

    (d) Conforming Amendment.--Section 1621 of such title, as 
transferred and redesignated by section 1632(a)(1), is amended by 
striking out ``and Central Imagery Office''.
    (e) Cross Reference Amendments.--Chapter 81 of title 10, United 
States Code, is amended as follows:
        (1) Section 1593(a)(3) is amended by striking out ``section 
    1606'' and inserting in lieu thereof ``section 1622''.
        (2) Section 1596(c) is amended by striking out ``section 
    1604(b)'' and inserting in lieu thereof ``section 1602''.

SEC. 1634. OTHER PERSONNEL MANAGEMENT AUTHORITIES.

    (a) Applicability of Federal Labor-Management Relations System.--
Section 7103(a)(3) of title 5, United States Code, is amended--
        (1) by inserting ``or'' at the end of subparagraph (F);
        (2) by striking out ``; or'' at the end of subparagraph (G) and 
    inserting in lieu thereof a period; and
        (3) by striking out subparagraph (H).
    (b) Applicability of Authority and Procedures for Imposing Certain 
Adverse Actions.--Section 7511(b)(8) of such title is amended by 
striking out ``the National Security Agency'' and all that follows 
through ``title 10'' and inserting in lieu thereof ``an intelligence 
component of the Department of Defense (as defined in section 1614 of 
title 10), or an intelligence activity of a military department covered 
under subchapter I of chapter 83 of title 10''.

SEC. 1635. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect on October 1, 1996.

               TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1701. Short title.

                     Subtitle A--Relocation Benefits

Sec. 1711. Allowance for seeking permanent residence quarters.
Sec. 1712. Temporary quarters subsistence expenses allowance.
Sec. 1713. Modification of residence transaction expenses allowance.
Sec. 1714. Authority to pay for property management services.
Sec. 1715. Authority to transport a privately owned motor vehicle within 
          the continental United States.
Sec. 1716. Authority to pay limited relocation allowances to an employee 
          who is performing an extended assignment.
Sec. 1717. Authority to pay a home marketing incentive.
Sec. 1718. Revision and reenactment of additional provisions relating to 
          relocation expenses.

                  Subtitle B--Miscellaneous Provisions

Sec. 1721. Repeal of the long-distance telephone call certification 
          requirement.
Sec. 1722. Transfer of authority to prescribe regulations.
Sec. 1723. Conforming and clerical amendments.
Sec. 1724. Assessment of cost savings.
Sec. 1725. Effective date and issuance of regulations.

SEC. 1701. SHORT TITLE.

    This title may be cited as the ``Federal Employee Travel Reform Act 
of 1996''.

                    Subtitle A--Relocation Benefits

SEC. 1711. ALLOWANCE FOR SEEKING PERMANENT RESIDENCE QUARTERS.
    Section 5724a of title 5, United States Code, is amended to read as 
follows:
``Sec. 5724a. Relocation expenses of employees transferred or 
     reemployed
    ``(a) An agency shall pay to or on behalf of an employee who 
transfers in the interest of the Government, a per diem allowance or 
the actual subsistence expenses, or a combination thereof, of the 
immediate family of the employee for en route travel of the immediate 
family between the employee's old and new official stations.
    ``(b)(1) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government between official stations 
located within the United States--
        ``(A) the expenses of transportation of the employee and the 
    employee's spouse for travel to seek permanent residence quarters 
    at a new official station; and
        ``(B) either--
            ``(i) a per diem allowance or the actual subsistence 
        expenses (or a combination of both); or
            ``(ii) an amount for subsistence expenses.
    ``(2) Expenses may be allowed under paragraph (1) only for one 
round trip in connection with each change of station of the 
employee.''.
SEC. 1712. TEMPORARY QUARTERS SUBSISTENCE EXPENSES ALLOWANCE.
    Section 5724a of title 5, United States Code, as amended by section 
1712, is further amended by adding at the end the following new 
subsection:
    ``(c)(1) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government--
        ``(A) actual subsistence expenses of the employee and the 
    employee's immediate family for a period of up to 60 days while the 
    employee or family is occupying temporary quarters when the new 
    official station is located within the United States; or
        ``(B) an amount for subsistence expenses instead of the actual 
    subsistence expenses authorized in subparagraph (A) of this 
    paragraph.
    ``(2) The period authorized in paragraph (1) of this subsection for 
payment of expenses for residence in temporary quarters may be extended 
up to an additional 60 days if the head of the agency concerned or the 
designee of such head of the agency determines that there are 
compelling reasons for the continued occupancy of temporary quarters.
    ``(3) The regulations implementing paragraph (1)(A) shall prescribe 
daily rates and amounts for subsistence expenses per individual.''.
SEC. 1713. MODIFICATION OF RESIDENCE TRANSACTION EXPENSES ALLOWANCE.
    (a) Expenses of Sale.--Section 5724a of title 5, United States 
Code, as amended by section 1712, is further amended by adding at the 
end the following new subsection:
    ``(d)(1) An agency shall pay to or on behalf of an employee who 
transfers in the interest of the Government, expenses of the sale of 
the residence (or the settlement of an unexpired lease) of the employee 
at the old official station and purchase of a residence at the new 
official station that are required to be paid by the employee, when the 
old and new official stations are located within the United States.
    ``(2) An agency shall pay to or on behalf of an employee who 
transfers in the interest of the Government from a post of duty located 
outside the United States to an official station within the United 
States (other than the official station within the United States from 
which the employee was transferred when assigned to the foreign tour of 
duty)--
        ``(A) expenses required to be paid by the employee for the sale 
    of the residence (or the settlement of an unexpired lease) of the 
    employee at the old official station from which the employee was 
    transferred when the employee was assigned to the post of duty 
    located outside the United States; and
        ``(B) expenses required to be paid by the employee for the 
    purchase of a residence at the new official station within the 
    United States.
    ``(3) Reimbursement of expenses under paragraph (2) of this 
subsection shall not be allowed for any sale (or settlement of an 
unexpired lease) or purchase transaction that occurs prior to official 
notification that the employee's return to the United States would be 
to an official station other than the official station from which the 
employee was transferred when assigned to the post of duty outside the 
United States.
    ``(4) Reimbursement for brokerage fees on the sale of the residence 
and other expenses under this subsection may not exceed those 
customarily charged in the locality where the residence is located.
    ``(5) Reimbursement may not be made under this subsection for 
losses incurred by the employee on the sale of the residence.
    ``(6) This subsection applies regardless of whether title to the 
residence or the unexpired lease is--
        ``(A) in the name of the employee alone;
        ``(B) in the joint names of the employee and a member of the 
    employee's immediate family; or
        ``(C) in the name of a member of the employee's immediate 
    family alone.
    ``(7)(A) In connection with the sale of the residence at the old 
official station, reimbursement under this subsection shall not exceed 
10 percent of the sale price.
    ``(B) In connection with the purchase of a residence at the new 
official station, reimbursement under this subsection shall not exceed 
5 percent of the purchase price.''.
    (b) Relocation Services.--Section 5724c of title 5, United State 
Code, is amended to read as follows:

``Sec. 5724c. Relocation services

    ``Under regulations prescribed under section 5738 of this title, 
each agency may enter into contracts to provide relocation services to 
agencies and employees for the purpose of carrying out this subchapter. 
An agency may pay a fee for such services. Such services include 
arranging for the purchase of a transferred employee's residence.''.
SEC. 1714. AUTHORITY TO PAY FOR PROPERTY MANAGEMENT SERVICES.
    Section 5724a of title 5, United States Code, as amended by section 
1713, is further amended--
        (1) in subsection (d), by adding at the end the following:
    ``(8) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government expenses of property 
management services, instead of expenses under paragraph (2) or (3) of 
this subsection for sale of the employee's residence, when the agency 
determines that such transfer is advantageous and cost-effective for 
the Government.''; and
        (2) by adding at the end the following new subsection:
    ``(e) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government, the expenses of property 
management services when the employee transfers to a post of duty 
outside the United States. Such payment shall terminate upon return of 
the employee to an official station within the United States.''.
SEC. 1715. AUTHORITY TO TRANSPORT A PRIVATELY OWNED MOTOR VEHICLE 
WITHIN THE CONTINENTAL UNITED STATES.
    (a) In General.--Section 5727 of title 5, United States Code, is 
amended--
        (1) by redesignating subsections (c) through (e) as subsections 
    (d) through (f), respectively;
        (2) by inserting after subsection (b) the following new 
    subsection:
    ``(c) Under regulations prescribed under section 5738 of this 
title, the privately owned motor vehicle or vehicles of an employee, 
including a new appointee or a student trainee for whom travel and 
transportation expenses are authorized under section 5723 of this 
title, may be transported at Government expense to a new official 
station of the employee when the agency determines that such transport 
is advantageous and cost-effective to the Government.''; and
        (3) in subsection (e) (as so redesignated), by inserting ``or 
    (c)'' after ``subsection (b)''.
    (b) Availability of Appropriations.--(1) Section 5722(a) of title 
5, United States Code, is amended--
        (A) by striking out ``and'' at the end of paragraph (1);
        (B) by striking out the period at the end of paragraph (2) and 
    inserting in lieu thereof ``; and''; and
        (C) by adding at the end the following:
        ``(3) the expenses of transporting a privately owned motor 
    vehicle as authorized under section 5727(c) of this title.''.
    (2) Section 5723(a) of title 5, United States Code, is amended--
        (A) by striking out ``and'' at the end of paragraph (1);
        (B) by inserting ``and'' after the semicolon at the end of 
    paragraph (2); and
        (C) by adding at the end the following:
        ``(3) the expenses of transporting a privately owned motor 
    vehicle as authorized under section 5727(c) of this title;''.
SEC. 1716. AUTHORITY TO PAY LIMITED RELOCATION ALLOWANCES TO AN 
EMPLOYEE WHO IS PERFORMING AN EXTENDED ASSIGNMENT.
    Subchapter II of chapter 57 of title 5, United States Code, as 
amended by section 1605, is further amended by adding at the end the 
following new section:
``Sec. 5737. Relocation expenses of an employee who is performing an 
    extended assignment
    ``(a) Under regulations prescribed under section 5738 of this 
title, an agency may pay to or on behalf of an employee assigned from 
the employee's official station to a duty station for a period of not 
less than six months and not greater than 30 months, the following 
expenses in lieu of payment of expenses authorized under subchapter I 
of this chapter:
        ``(1) Travel expenses to and from the assignment location in 
    accordance with section 5724 of this title.
        ``(2) Transportation expenses of the immediate family and 
    household goods and personal effects to and from the assignment 
    location in accordance with section 5724 of this title.
        ``(3) A per diem allowance for en route travel of the 
    employee's immediate family to and from the assignment location in 
    accordance with section 5724a(a) of this title.
        ``(4) Travel and transportation expenses of the employee and 
    spouse to seek new residence quarters at the assignment location in 
    accordance with section 5724a(b) of this title.
        ``(5) Subsistence expenses of the employee and the employee's 
    immediate family while occupying temporary quarters upon 
    commencement and termination of the assignment in accordance with 
    section 5724a(c) of this title.
        ``(6) An amount, in accordance with section 5724a(f), to be 
    used by the employee for miscellaneous expenses of this title.
        ``(7) The expenses of transporting a privately owned motor 
    vehicle or vehicles to the assignment location in accordance with 
    section 5727 of this title.
        ``(8) An allowance as authorized under section 5724b of this 
    title for Federal, State, and local income taxes incurred on 
    reimbursement of expenses paid under this section or on services 
    provided in kind under this section.
        ``(9) Expenses of nontemporary storage of household goods and 
    personal effects as defined in section 5726(a) of this title, 
    subject to the limitation that the weight of the household goods 
    and personal effects stored, together with the weight of property 
    transported under section 5724(a) of this title, may not exceed the 
    total maximum weight which could be transported in accordance with 
    section 5724(a) of this title.
        ``(10) Expenses of property management services.
    ``(b) An agency shall not make payment under this section to or on 
behalf of the employee for expenses incurred after termination of the 
temporary assignment.''.

SEC. 1717. AUTHORITY TO PAY A HOME MARKETING INCENTIVE.

    Subchapter IV of chapter 57 of title 5, United States Code, is 
amended by adding at the end the following new section:

``Sec. 5756. Home marketing incentive payment

    ``(a) Under regulations prescribed under subsection (b), an agency 
may pay to an employee who transfers in the interest of the Government 
an amount to encourage the employee to aggressively market the 
employee's residence at the official station from which transferred 
when--
        ``(1) the residence is entered into a relocation services 
    program established under a contract in accordance with section 
    5724c of this title to arrange for the purchase of the residence;
        ``(2) the employee finds a buyer who completes the purchase of 
    the residence through the program; and
        ``(3) the sale of the residence results in a reduced cost to 
    the Government.
    ``(b)(1) The Administrator of General Services shall prescribe 
regulations to carry out this section.
    ``(2) The regulations shall include a limitation on the maximum 
amount payable with respect to an employee's residence. The 
Administrator shall establish the limitation in consultation with the 
Director of the Office of Management and Budget. For fiscal years 1997 
and 1998, the maximum amount shall be the amount equal to five percent 
of the sale price of the residence.''.
SEC. 1718. REVISION AND REENACTMENT OF ADDITIONAL PROVISIONS RELATING 
TO RELOCATION EXPENSES.
    Section 5724a of title 5, United States Code, as amended by section 
1714, is further amended by adding at the end the following new 
subsections:
    ``(f)(1) Subject to paragraph (2), an employee who is reimbursed 
under subsections (a) through (e) of this section or section 5724(a) of 
this title is entitled to an amount for miscellaneous expenses--
        ``(A) not to exceed two weeks' basic pay, if such employee has 
    an immediate family; or
        ``(B) not to exceed one week's basic pay, if such employee does 
    not have an immediate family.
    ``(2) Amounts paid under paragraph (1) may not exceed amounts 
determined at the maximum rate payable for a position at GS-13 of the 
General Schedule.
    ``(g) A former employee separated by reason of reduction in force 
or transfer of function who within one year after the separation is 
reemployed by a nontemporary appointment at a different geographical 
location from that where the separation occurred, may be allowed and 
paid the expenses authorized by sections 5724, 5725, 5726(b), and 5727 
of this title, and may receive the benefits authorized by subsections 
(a) through (f) of this section, in the same manner as though the 
employee had been transferred in the interest of the Government without 
a break in service to the location of reemployment from the location 
where separated.
    ``(h) Payments for subsistence expenses, including amounts in lieu 
of per diem or actual subsistence expenses or a combination thereof, 
authorized under this section may not exceed the maximum payment 
allowed under regulations which implement section 5702 of this title.
    ``(i) Subsections (a), (b), and (c) shall be implemented under 
regulations issued under section 5738 of this title.
    ``(j) For purposes of subsections (c), (d), and (e), the term 
`United States' includes the District of Columbia, the Commonwealth of 
Puerto Rico, the Commonwealth of the Northern Mariana Islands, the 
territories and possessions of the United States, and the areas and 
installations in the Republic of Panama that are made available to the 
United States pursuant to the Panama Canal Treaty of 1977 and related 
agreements (as described in section 3(a) of the Panama Canal Act of 
1979 (22 U.S.C. 3602(a))).''.

                  Subtitle B--Miscellaneous Provisions

SEC. 1721. REPEAL OF THE LONG-DISTANCE TELEPHONE CALL CERTIFICATION 
REQUIREMENT.
    Section 1348 of title 31, United States Code, is amended--
        (1) by striking the last sentence of subsection (a)(2);
        (2) by striking subsection (b); and
        (3) by redesignating subsections (c) and (d) as subsections (b) 
    and (c), respectively.

SEC. 1722. TRANSFER OF AUTHORITY TO PRESCRIBE REGULATIONS.

    Subchapter II of chapter 57 of title 5, United States Code, as 
amended by section 1716, is further amended by adding at the end the 
following new section:

``Sec. 5738. Regulations

    ``(a)(1) Except as specifically provided in this subchapter, the 
Administrator of General Services shall prescribe regulations necessary 
for the administration of this subchapter.
    ``(2) The Administrator of General Services shall include in the 
regulations authority for the head of an agency or his designee to 
waive any limitation of this subchapter or in any implementing 
regulation for any employee relocating to or from a remote or isolated 
location who would suffer hardship if the limitation were not waived. A 
waiver of a limitation under authority provided in the regulations 
pursuant to this paragraph shall be effective notwithstanding any other 
provision of this subchapter.
    ``(b) In prescribing regulations for the implementation of section 
5724b of this title, the Administrator of General Services shall 
consult with the Secretary of the Treasury.
    ``(c) The Secretary of Defense shall prescribe regulations 
necessary for the implementation of section 5735 of this title.''.

SEC. 1723. CONFORMING AND CLERICAL AMENDMENTS.

    (a) Cross References.--(1) Title 5, United States Code, is amended 
as follows:
        (A) Section 3375 is amended--
            (i) in subsection (a)(3), by striking out ``section 
        5724a(a)(1)'' and inserting in lieu thereof ``section 
        5724a(a)'';
            (ii) in subsection (a)(4), by striking out ``section 
        5724a(a)(3)'' and inserting in lieu thereof ``section 
        5724a(c)''; and
            (iii) in subsection (a)(5), by striking out ``section 
        5724a(b)'' and inserting in lieu thereof ``section 5724a(g)''; 
        and
        (B) Section 5724(e) is amended by striking out ``section 
    5724a(a), (b)'' and inserting in lieu thereof ``section 5724a (a) 
    through (f)''.
    (2) Section 707 of title 38, United States Code, is amended--
        (A) in subsection (a)(6), by striking out ``Section 
    5724a(a)(3)'' and inserting in lieu thereof ``Section 5724a(c)''; 
    and
        (B) in subsection (a)(7), by striking out ``Section 
    5724a(a)(4)'' and inserting in lieu thereof ``Section 5724a(d)''.
    (3) The Public Health Service Act is amended as follows:
        (A) Section 501(g)(2)(A) (42 U.S.C. 290aa(g)(2)(A)) is amended 
    by striking out ``5724a(a)(1), 5724a(a)(3)'' and inserting in lieu 
    thereof ``5724a(a), 5724a(c)''.
        (B) Section 925(f)(2)(A) (42 U.S.C. 299c-4(f)(2)(A)) is amended 
    by striking out ``5724a(a)(1), 5724a(a)(3)'' and inserting in lieu 
    thereof ``5724a(a), 5724a(c)''.
    (b) Regulations.--Title 5, United States Code, is amended as 
follows:
        (1) Sections 5722, 5723, 5724, (in subsections (a), (b), and 
    (c)), 5724b, 5726 (in subsections (b) and (c)), 5727(b), 5728 (in 
    subsections (a), (b), and (c)(1)), and 5729 (in subsections (a) and 
    (b)) of title 5, United States Code, are amended by striking out 
    ``Under such regulations as the President may prescribe'', and 
    inserting in lieu thereof ``Under regulations prescribed under 
    section 5738 of this title''.
        (2) Section 5724 of title 5, United States Code, is amended--
            (A) by striking out ``under regulations prescribed by the 
        President'' each place it appears in subsections (c) and (e) 
        and inserting in lieu thereof ``under regulations prescribed 
        under section 5738 of this title''; and
            (B) in subsection (f), by striking out ``under the 
        regulations of the President'' and inserting in lieu thereof 
        ``under regulations prescribed under section 5738 of this 
        title''.
        (3) Section 5726(a) of title 5, United States Code, is amended 
    by striking out ``as the President may by regulation authorize'' 
    and inserting in lieu thereof ``as authorized under regulations 
    prescribed under section 5738 of this title''.
        (4) Section 5731(a) of title 5, United States Code, is amended 
    by striking out ``in accordance with regulations prescribed by the 
    President'' and inserting in lieu thereof ``in accordance with 
    regulations prescribed under section 5738 of this title''.
    (c) Clerical Amendments.--The table of sections at the beginning of 
chapter 57 of title 5, United States Code, as amended by section 1605, 
is further amended--
        (1) by inserting after the item relating to section 5736 the 
    following:
``5737. Relocation expenses of an employee who is performing an extended 
          assignment.
``5738. Regulations.'';

    and
        (2) by inserting at the end the following:
``5756. Home marketing incentive payment.''.

SEC. 1724. ASSESSMENT OF COST SAVINGS.

    No later than one year after the effective date set forth in 
section 1725(a), the Comptroller General shall submit to the Committee 
on Governmental Affairs of the Senate and the Committee on Government 
Reform and Oversight of the House of Representatives an assessment of 
the costs of Federal travel administration that are saved as a result 
of the amendments made by this title and the regulations prescribed to 
carry out the amendments.

SEC. 1725. EFFECTIVE DATE AND ISSUANCE OF REGULATIONS.

    (a) Effective Date.--The amendments made by this title shall take 
effect 180 days after the date of the enactment of this Act.
    (b) Regulations.--The Administrator of General Services shall, not 
later than the effective date set forth under subsection (a), issue 
final regulations implementing the amendments made by this title.

     TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

Sec. 1801. Recognition and grant of Federal charter.
Sec. 1802. Powers.
Sec. 1803. Purposes.
Sec. 1804. Service of process.
Sec. 1805. Membership.
Sec. 1806. Board of directors.
Sec. 1807. Officers.
Sec. 1808. Restrictions.
Sec. 1809. Liability.
Sec. 1810. Maintenance and inspection of books and records.
Sec. 1811. Audit of financial transactions.
Sec. 1812. Annual report.
Sec. 1813. Reservation of right to alter, amend, or repeal charter.
Sec. 1814. Tax-exempt status required as condition of charter.
Sec. 1815. Termination.
Sec. 1816. Definition of State.

SEC. 1801. RECOGNITION AND GRANT OF FEDERAL CHARTER.

    The Fleet Reserve Association, a nonprofit corporation organized 
under the laws of the State of Delaware, is recognized as such and 
granted a Federal charter.

SEC. 1802. POWERS.

    The Fleet Reserve Association (in this title referred to as the 
``association'') shall have only those powers granted to it through its 
bylaws and articles of incorporation filed in the State of Delaware and 
subject to the laws of that State.

SEC. 1803. PURPOSES.

    The purposes of the association are those provided in its bylaws 
and articles of incorporation and shall include the following:
        (1) Upholding and defending the Constitution of the United 
    States.
        (2) Aiding and maintaining an adequate naval defense for the 
    United States.
        (3) Assisting the recruitment of the best personnel available 
    for the United States Navy, United States Marine Corps, and United 
    States Coast Guard.
        (4) Providing for the welfare of the personnel who serve in the 
    United States Navy, United States Marine Corps, and United States 
    Coast Guard.
        (5) Continuing to serve loyally the United States Navy, United 
    States Marine Corps, and United States Coast Guard.
        (6) Preserving the spirit of shipmanship by providing 
    assistance to shipmates and their families.
        (7) Instilling love of the United States and the flag and 
    promoting soundness of mind and body in the youth of the United 
    States.

SEC. 1804. SERVICE OF PROCESS.

    With respect to service of process, the association shall comply 
with the laws of the State of Delaware and those States in which it 
carries on its activities in furtherance of its corporate purposes.

SEC. 1805. MEMBERSHIP.

    Except as provided in section 1808(g), eligibility for membership 
in the association and the rights and privileges of members shall be as 
provided in the bylaws and articles of incorporation of the 
association.

SEC. 1806. BOARD OF DIRECTORS.

    Except as provided in section 1808(g), the composition of the board 
of directors of the association and the responsibilities of the board 
shall be as provided in the bylaws and articles of incorporation of the 
association and in conformity with the laws of the State of Delaware.

SEC. 1807. OFFICERS.

    Except as provided in section 1808(g), the positions of officers of 
the association and the election of members to such positions shall be 
as provided in the bylaws and articles of incorporation of the 
association and in conformity with the laws of the State of Delaware.

SEC. 1808. RESTRICTIONS.

    (a) Income and Compensation.--No part of the income or assets of 
the association may inure to the benefit of any member, officer, or 
director of the association or be distributed to any such individual 
during the life of this charter. Nothing in this subsection may be 
construed to prevent the payment of reasonable compensation to the 
officers and employees of the association or reimbursement for actual 
and necessary expenses in amounts approved by the board of directors.
    (b) Loans.--The association may not make any loan to any member, 
officer, director, or employee of the association.
    (c) Issuance of Stock and Payment of Dividends.--The association 
may not issue any shares of stock or declare or pay any dividends.
    (d) Disclaimer of Congressional or Federal Approval.--The 
association may not claim the approval of the Congress or the 
authorization of the Federal Government for any of its activities by 
virtue of this title.
    (e) Corporate Status.--The association shall maintain its status as 
a corporation organized and incorporated under the laws of the State of 
Delaware.
    (f) Corporate Function.--The association shall function as an 
educational, patriotic, civic, historical, and research organization 
under the laws of the State of Delaware.
    (g) Nondiscrimination.--In establishing the conditions of 
membership in the association and in determining the requirements for 
serving on the board of directors or as an officer of the association, 
the association may not discriminate on the basis of race, color, 
religion, sex, handicap, age, or national origin.

SEC. 1809. LIABILITY.

    The association shall be liable for the acts of its officers, 
directors, employees, and agents whenever such individuals act within 
the scope of their authority.

SEC. 1810. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.

    (a) Books and Records of Account.--The association shall keep 
correct and complete books and records of account and minutes of any 
proceeding of the association involving any of its members, the board 
of directors, or any committee having authority under the board of 
directors.
    (b) Names and Addresses of Members.--The association shall keep at 
its principal office a record of the names and addresses of all members 
having the right to vote in any proceeding of the association.
    (c) Right to Inspect Books and Records.--All books and records of 
the association may be inspected by any member having the right to vote 
in any proceeding of the association, or by any agent or attorney of 
such member, for any proper purpose at any reasonable time.
    (d) Application of State Law.--This section may not be construed to 
contravene any applicable State law.

SEC. 1811. AUDIT OF FINANCIAL TRANSACTIONS.

    The first section of the Act entitled ``An Act to provide for audit 
of accounts of private corporations established under Federal law'', 
approved August 30, 1964 (36 U.S.C. 1101), is amended by adding at the 
end the following:
        ``(77) Fleet Reserve Association.''.

SEC. 1812. ANNUAL REPORT.

    The association shall annually submit to Congress a report 
concerning the activities of the association during the preceding 
fiscal year. The annual report shall be submitted on the same date as 
the report of the audit required by reason of the amendment made in 
section 1811. The annual report shall not be printed as a public 
document.
SEC. 1813. RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL CHARTER.
    The right to alter, amend, or repeal this title is expressly 
reserved to Congress.
SEC. 1814. TAX-EXEMPT STATUS REQUIRED AS CONDITION OF CHARTER.
    If the association fails to maintain its status as an organization 
exempt from taxation as provided in the Internal Revenue Code of 1986 
the charter granted in this title shall terminate.

SEC. 1815. TERMINATION.

    The charter granted in this title shall expire if the association 
fails to comply with any of the provisions of this title.

SEC. 1816. DEFINITION OF STATE.

    For purposes of this title, the term ``State'' includes the 
District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth 
of the Northern Mariana Islands, and the territories and possessions of 
the United States.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 1997''.

                            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. Land acquisition, National Ground Intelligence Center, 
Charlottesville, Virginia.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.
    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), and, in 
the case of the projects described in paragraphs (2) and (3) of section 
2104(b), other amounts appropriated pursuant to authorizations enacted 
after this Act for the projects, the Secretary of the Army may acquire 
real property and carry out military construction projects for the 
installations and locations inside the United States, and in the 
amounts set forth in the following table:


                     Army: Inside the United States                     
------------------------------------------------------------------------
            State               Installation or location       Total    
------------------------------------------------------------------------
Alabama......................  Fort Rucker..............      $3,250,000
California...................  Army project, Naval                      
                                Weapons Station, Concord     $27,000,000
                               Camp Roberts.............      $5,500,000
Colorado.....................  Fort Carson..............     $17,550,000
District of Columbia.........  Fort McNair..............      $6,900,000
Georgia......................  Fort Benning.............     $53,400,000
                               Fort McPherson...........      $3,500,000
                               Fort Stewart, Hunter Army      $6,000,000
                                Air Field.                              
Hawaii.......................  Schofield Barracks.......     $16,500,000
Kansas.......................  Fort Riley...............     $26,000,000
Kentucky.....................  Fort Campbell............     $51,100,000
                               Fort Knox................     $45,000,000
New Jersey...................  Picatinny Arsenal........      $5,000,000
New Mexico...................  White Sands Missile Range     $41,000,000
New York.....................  Fort Drum................     $11,400,000
North Carolina...............  Fort Bragg...............     $14,000,000
Texas........................  Fort Hood................     $47,300,000
                               Fort Sam Houston.........      $3,100,000
Virginia.....................  Fort Eustis..............      $3,550,000
                               National Ground                          
                                Intelligence Center,                    
                                Charlottesville.........      $1,000,000
Washington...................  Fort Lewis...............     $54,600,000
CONUS Classified.............  Classified Locations.....      $4,600,000
                                                         ---------------
                                   Total:...............    $447,250,000
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(2), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the locations outside the United States, and 
in the amounts set forth in the following table:


                     Army: Outside the United States                    
------------------------------------------------------------------------
                                     Installation or                    
            Country                      location              Total    
------------------------------------------------------------------------
Germany........................  Lincoln Village,             $7,300,000
                                  Darmstadt.                            
                                 Spinelli Barracks,           $8,100,000
                                  Mannheim.                             
                                 Taylor Barracks,             $9,300,000
                                  Mannheim.                             
Italy..........................  Camp Ederle............      $3,100,000
Korea..........................  Camp Casey.............     $16,000,000
                                 Camp Red Cloud.........     $14,000,000
Overseas Classified............  Classified Locations...     $64,000,000
                                                         ---------------
                                     Total:.............    $121,800,000
------------------------------------------------------------------------


SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may construct or acquire 
family housing units (including land acquisition) at the installations, 
for the purposes, and in the amounts set forth in the following table:

                                              Army: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose                Total    
----------------------------------------------------------------------------------------------------------------
Hawaii..................................  Schofield Barracks........  54 Units..................     $10,000,000
North Carolina..........................  Fort Bragg................  88 Units..................      $9,800,000
Pennsylvania............................  Tobyhanna Army Depot......  200 Units.................        $890,000
Texas...................................  Fort Bliss................  64 Units..................     $11,000,000
                                          Fort Hood.................  140 Units.................     $18,500,000
                                                                                                 ---------------
                                                                          Total:................     $50,190,000
----------------------------------------------------------------------------------------------------------------


    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2104(a)(5)(A), the 
Secretary of the Army may carry out architectural and engineering 
services and construction designactivities with respect to the 
construction or improvement of family housing units in an amount not to 
exceed $2,963,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may improve existing 
military family housing units in an amount not to exceed $105,350,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1996, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Army in the total amount of $1,942,557,000 as 
follows:
        (1) For military construction projects inside the United States 
    authorized by section 2101(a), $394,250,000.
        (2) For military construction projects outside the United 
    States authorized by section 2101(b), $121,800,000.
        (3) For unspecified minor military construction projects 
    authorized by section 2805 of title 10, United States Code, 
    $5,000,000.
        (4) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $50,538,000.
        (5) For military family housing functions:
            (A) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $158,503,000.
            (B) For support of military family housing (including the 
        functions described in section 2833 of title 10, United States 
        Code), $1,212,466,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2101 of this 
Act may not exceed--
        (1) the total amount authorized to be appropriated under 
    paragraphs (1) and (2) of subsection (a);
        (2) $31,000,000 (the balance of the amount authorized under 
    section 2101(a) for the construction of the National Range Control 
    Center at White Sands Missile Range, New Mexico); and
        (3) $22,000,000 (the balance of the amount authorized under 
    section 2101(a) for the whole barracks complex renewal at Fort 
    Knox, Kentucky).
SEC. 2105. LAND ACQUISITION, NATIONAL GROUND INTELLIGENCE CENTER, 
CHARLOTTESVILLE, VIRGINIA.
    (a) Acquisition Authorized.--Subject to subsection (b), the 
Secretary of the Army may acquire real property for the National Ground 
Intelligence Center, Charlottesville, Virginia.
    (b) Requirement Relating to Acquisition.--The Secretary may not 
acquire real property pursuant to the authorization in subsection (a) 
until the Secretary certifies to the congressional defense committees, 
based on the results of an assessment of property currently owned or 
operated by the Federal Government in the vicinity of Charlottesville, 
Virginia, that the acquisition of the property would provide the most 
cost-effective means of securing a location for the National Ground 
Intelligence Center that satisfies the mission requirements of the 
center.
    (c) Funding.--Of the amounts authorized to be appropriated by 
section 2104(a)(1), $1,000,000 shall be available for the acquisition 
of real property pursuant to the authorization in subsection (a).

                            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.  Beach replenishment, Naval Air Station, North Island, 
          California.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.
    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), and, in 
the case of the projects described in paragraphs (2) and (3) of section 
2204(b), other amounts appropriated pursuant to authorizations enacted 
after this Act for the projects, the Secretary of the Navy may acquire 
real property and carry out military construction projects for the 
installations and locations inside the United States, and in the 
amounts, set forth in the following table:


                     Navy: Inside the United States                     
------------------------------------------------------------------------
                                     Installation or                    
             State                       location             Amount    
------------------------------------------------------------------------
Arizona........................  Navy Detachment, Camp        $3,920,000
                                  Navajo.                               
California.....................  Marine Corps Air-Ground                
                                  Combat Center,                        
                                  Twentynine Palms......      $4,020,000
                                 Marine Corps Air                       
                                  Station, Camp                         
                                  Pendleton.............      $6,240,000
                                 Marine Corps Base, Camp                
                                  Pendleton.............     $51,630,000
                                 Marine Corps Recruit                   
                                  Detachment, San Diego.      $8,150,000
                                 Naval Air Station,          $86,502,000
                                  North Island.                         
                                 Naval Command Control &                
                                  Ocean Surveillance                    
                                  Center, San Diego.....      $1,960,000
                                 Naval Facility, San         $17,000,000
                                  Clemente Island.                      
                                 Naval Station, San           $7,050,000
                                  Diego.                                
Connecticut....................  Naval Submarine Base,       $13,830,000
                                  New London.                           
District of Columbia...........  Naval District,             $19,300,000
                                  Washington.                           
Florida........................  Naval Air Station, Key       $2,250,000
                                  West.                                 
                                 Naval Station, Mayport.      $2,800,000
Georgia........................  Naval Submarine Base,        $1,550,000
                                  Kings Bay.                            
Hawaii.........................  Marine Corps, Air           $20,080,000
                                  Station, Kaneohe Bay.                 
                                 Naval Station, Pearl        $19,600,000
                                  Harbor.                               
                                 Naval Submarine Base,       $35,890,000
                                  Pearl Harbor.                         
Idaho..........................  Naval Surface Warfare        $7,150,000
                                  Center, Bayview.                      
Illinois.......................  Naval Hospital, Great       $15,200,000
                                  Lakes.                                
                                 Naval Training Center,      $22,900,000
                                  Great Lakes.                          
Indiana........................  Naval Surface Warfare        $5,000,000
                                  Center, Crane.                        
Maryland.......................  Naval Air Warfare                      
                                  Center, Patuxent River      $1,270,000
                                 United States Naval         $10,480,000
                                  Academy.                              
Mississippi....................  Navy Project, Stennis        $7,960,000
                                  Space Center.                         
Nevada.........................  Naval Air Station,          $21,630,000
                                  Fallon.                               
North Carolina.................  Marine Corps Air             $1,630,000
                                  Station, Cherry Point.                
                                 Marine Corps Air            $20,290,000
                                  Station, New River.                   
                                 Marine Corps Base, Camp     $20,750,000
                                  Lejeune.                              
Pennsylvania...................  Philadelphia Naval           $8,300,000
                                  Shipyard.                             
South Carolina.................  Marine Corps Recruit                   
                                  Depot, Parris Island..      $2,540,000
Texas..........................  Naval Air Station,           $1,810,000
                                  Kingsville.                           
                                 Naval Station,              $16,850,000
                                  Ingleside.                            
Virginia.......................  Armed Forces Staff                     
                                  College, Norfolk......     $12,900,000
                                 Marine Corps Combat                    
                                  Development Command,                  
                                  Quantico..............     $14,570,000
                                 Naval Station, Norfolk.     $56,120,000
                                 Naval Surface Warfare        $8,030,000
                                  Center, Dahlgren.                     
Washington.....................  Naval Station, Everett.     $25,740,000
                                 Naval Undersea Warfare                 
                                  Center, Keyport.......      $6,800,000
CONUS Various..................  Defense access roads...        $300,000
                                                         ---------------
                                     Total:.............    $589,992,000
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(2), and, in 
the case of the project described in section 2204(b)(4), other amounts 
appropriated pursuant to authorizations enacted after this Act for the 
project, the Secretary of the Navy may acquire real property and carry 
out military construction projects for the installations and locations 
outside the United States, and in the amounts, set forth in the 
following table:


                     Navy: Outside the United States                    
------------------------------------------------------------------------
                                     Installation or                    
            Country                      location             Amount    
------------------------------------------------------------------------
Bahrain........................  Administrative Support       $5,980,000
                                  Unit, Bahrain.                        
Greece.........................  Naval Support Activity,      $7,050,000
                                  Souda Bay.                            
Italy..........................  Naval Air Station,          $15,700,000
                                  Sigonella.                            
                                 Naval Support Activity,      $8,620,000
                                  Naples.                               
Puerto Rico....................  Naval Station,              $23,600,000
                                  Roosevelt Roads.                      
United Kingdom.................  Joint Maritime                         
                                  Communications Center,                
                                  St. Mawgan............      $4,700,000
                                                         ---------------
                                     Total:.............     $65,650,000
------------------------------------------------------------------------


SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may construct or acquire 
family housing units (including land acquisition) at the installations, 
for the purposes, and in the amounts set forth in the following table:

                                              Navy: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Marine Corps Air Station,                                             
                                           Yuma.....................  Ancillary Facility........        $709,000
California..............................  Marine Corps Air-Ground                                               
                                           Combat Center, Twentynine                                            
                                           Palms....................  Ancillary Facilities......      $2,938,000
                                          Marine Corps Base, Camp                                               
                                           Pendleton................  202 Units.................     $29,483,000
                                          Naval Air Station, Lemoore  276 Units.................     $39,837,000
                                          Navy Public Works Center,                                             
                                           San Diego................  366 Units.................     $48,719,000
Florida.................................  Naval Station, Mayport....  100 Units.................     $10,000,000
Hawaii..................................  Marine Corps Air Station,                                             
                                           Kaneohe Bay..............  54 Units..................     $11,676,000
                                          Navy Public Works Center,                                             
                                           Pearl Harbor.............  264 Units.................     $52,586,000
Maine...................................  Naval Air Station                                                     
                                           Brunswick................  92 Units..................     $10,925,000
Maryland................................  Naval Air Warfare Center,                                             
                                           Patuxent River...........  Ancillary Facility........      $1,233,000
North Carolina..........................  Marine Corps Base, Camp                                               
                                           Lejeune..................  Ancillary Facility........        $845,000
                                          Marine Corps Base, Camp                                               
                                           Lejeune..................  94 Units..................     $10,110,000
South Carolina..........................  Marine Corps Air Station,                                             
                                           Beaufort.................  140 Units.................     $14,000,000
Texas...................................  Corpus Christi Naval                                                  
                                           Complex..................  104 Units.................     $11,675,000
                                          Naval Air Station,                                                    
                                           Kingsville...............  48 Units..................      $7,550,000
Virginia................................  AEGIS Combat Systems                                                  
                                           Center, Wallops Island...  20 Units..................      $2,975,000
                                          Naval Security Group                                                  
                                           Activity, Northwest......  Ancillary Facility........        $741,000
Washington..............................  Naval Station, Everett....  100 Units.................     $15,015,000
                                          Naval Submarine Base,                                                 
                                           Bangor...................  Ancillary Facility........        $934,000
                                                                                                 ---------------
                                                                          Total:................    $281,951,000
----------------------------------------------------------------------------------------------------------------


    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2204(a)(5)(A), the 
Secretary of the Navy may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $22,552,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $205,383,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1996, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Navy in the total amount of $2,213,731,000 as 
follows:
        (1) For military construction projects inside the United States 
    authorized by section 2201(a), $579,312,000.
        (2) For military construction projects outside the United 
    States authorized by section 2201(b), $51,550,000.
        (3) For unspecified minor construction projects authorized by 
    section 2805 of title 10, United States Code, $5,115,000.
        (4) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $49,927,000.
        (5) For military family housing functions:
            (A) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $499,886,000.
            (B) For support of military housing (including functions 
        described in section 2833 of title 10, United States Code), 
        $1,014,241,000.
        (6) For the construction of a bachelor enlisted quarters at the 
    Naval Construction Battalion Center, Port Hueneme, California, 
    authorized by section 2201(a) of the Military Construction 
    Authorization Act for Fiscal Year 1996 (division B of Public Law 
    104-106; 110 Stat. 525), $7,700,000.
        (7) For the construction of a Strategic Maritime Research 
    Center at the Naval War College, Newport, Rhode Island, authorized 
    by section 2201(a) of the Military Construction Authorization Act 
    for Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 
    3031), $8,000,000.
        (8) For the construction of the large anachoic chamber facility 
    at the Patuxent River Naval Warfare Center, Aircraft Division, 
    Maryland, authorized by section 2201(a) of the Military 
    Construction Authorization Act for Fiscal Year 1993 (division B of 
    Public Law 102-484; 106 Stat. 2590), $10,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2201 of this 
Act may not exceed--
        (1) the total amount authorized to be appropriated under 
    paragraphs (1) and (2) of subsection (a);
        (2) $5,200,000 (the balance of the amount authorized under 
    section 2201(a) for the construction of a bachelors enlisted 
    quarters at Naval Hospital, Great Lakes, Illinois);
        (3) $5,480,000 (the balance of the amount authorized under 
    section 2201(a) for the construction of a chiller system upgrade at 
    the United States Naval Academy, Maryland); and
        (4) $14,100,000 (the balance of the amount authorized under 
    section 2201(b) for the construction of a bachelor enlisted 
    quarters at Naval Station, Roosevelt Roads, Puerto Rico).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (8) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by $12,000,000, which represents the combination of project savings 
resulting from favorable bids, reduced overhead costs, and 
cancellations due to force structure changes.
SEC. 2205. BEACH REPLENISHMENT, NAVAL AIR STATION, NORTH ISLAND, 
CALIFORNIA.
    (a) Cost-Sharing Agreement.--With regard to the portion of the 
military construction project for Naval Air Station, North Island, 
California, authorized by section 2201(a) and involving on-shore and 
near-shore beach replenishment, the Secretary of the Navy shall enter 
into an agreement with the State of California and local governments in 
the vicinity of the project, under which the State and local 
governments agree to cover not less than 50 percent of the cost 
incurred by the Secretary to carry out the beach replenishment portion 
of the project. Within amounts appropriated for the project, Federal 
expenditures may not exceed $9,630,000 for beach replenishment.
    (b) Activities Pending Agreement.--The Secretary shall not delay 
commencement of, or activities under, the construction project 
described in subsection (a), including the beach replenishment portion 
of the project, pending the execution of the cost-sharing agreement.

                         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.
Sec. 2305. Elimination of authority to carry out fiscal year 1995 
project, Spangdahlem Air Force Base, Germany.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
              PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(1), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
inside the United States, and in the amounts, set forth in the 
following table:


                   Air Force: Inside the United States                  
------------------------------------------------------------------------
                                     Installation or                    
             State                       location             Amount    
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.      $7,875,000
Alaska.........................  Elmendorf Air Force         $21,530,000
                                  Base.                                 
                                 Eielson Air Force Base.      $3,900,000
                                 King Salmon Air Force        $5,700,000
                                  Base.                                 
Arizona........................  Davis-Monthan Air Force      $9,920,000
                                  Base.                                 
                                 Luke Air Force Base....      $6,700,000
Arkansas.......................  Little Rock Air Force       $18,105,000
                                  Base.                                 
California.....................  Beale Air Force Base...     $14,425,000
                                 Edwards Air Force Base.     $20,080,000
                                 Travis Air Force Base..     $14,980,000
                                 Vandenberg Air Force         $3,290,000
                                  Base.                                 
Colorado.......................  Buckley Air National        $17,960,000
                                  Guard Base.                           
                                 Falcon Air Force             $2,095,000
                                  Station.                              
                                 Peterson Air Force Base     $20,720,000
                                 United States Air Force     $12,165,000
                                  Academy.                              
Delaware.......................  Dover Air Force Base...     $19,980,000
Florida........................  Eglin Air Force Base...      $4,590,000
                                 Eglin Auxiliary Field 9      $6,825,000
                                 Patrick Air Force Base.      $2,595,000
                                 Tyndall Air Force Base.      $3,600,000
Georgia........................  Moody Air Force Base...      $3,350,000
                                 Robins Air Force Base..     $25,045,000
Idaho..........................  Mountain Home Air Force     $15,945,000
                                  Base.                                 
Kansas.........................  McConnell Air Force         $19,130,000
                                  Base.                                 
Louisiana......................  Barksdale Air Force          $4,890,000
                                  Base.                                 
Maryland.......................  Andrews Air Force Base.      $8,140,000
Mississippi....................  Keesler Air Force Base.     $14,465,000
Montana........................  Malstrom Air Force Base      $6,300,000
Nevada.........................  Indian Springs Air                     
                                  Force Auxiliary Air                   
                                  Field.................      $4,690,000
                                 Nellis Air Force Base..      $9,900,000
New Mexico.....................  Cannon Air Force Base..      $7,100,000
                                 Kirtland Air Force Base     $10,000,000
New Jersey.....................  McGuire Air Force Base.      $8,080,000
North Carolina.................  Pope Air Force Base....      $5,915,000
                                 Seymour Johnson Air         $11,280,000
                                  Force Base.                           
North Dakota...................  Grand Forks Air Force       $12,470,000
                                  Base.                                 
                                 Minot Air Force Base...      $3,940,000
Ohio...........................  Wright-Patterson Air         $7,400,000
                                  Force Base.                           
Oklahoma.......................  Tinker Air Force Base..      $9,880,000
South Carolina.................  Charleston Air Force        $37,410,000
                                  Base.                                 
                                 Shaw Air Force Base....     $14,465,000
South Dakota...................  Ellsworth Air Force          $4,150,000
                                  Base.                                 
Tennessee......................  Arnold Engineering                     
                                  Development Center....     $12,481,000
Texas..........................  Brooks Air Force Base..      $5,400,000
                                 Dyess Air Force Base...     $12,295,000
                                 Kelly Air Force Base...      $3,250,000
                                 Lackland Air Force Base      $9,413,000
                                 Sheppard Air Force Base      $9,400,000
Utah...........................  Hill Air Force Base....      $3,690,000
Virginia.......................  Langley Air Force Base.      $8,005,000
Washington.....................  Fairchild Air Force         $18,155,000
                                  Base.                                 
                                 McChord Air Force Base.     $57,065,000
Wyoming........................  F.E. Warren Air Force        $3,700,000
                                  Base.                                 
                                                         ---------------
                                     Total:.............    $603,834,000
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(2), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
outside the United States, and in the amounts, set forth in the 
following table:


                  Air Force: Outside the United States                  
------------------------------------------------------------------------
                                     Installation or                    
            Country                      location             Amount    
------------------------------------------------------------------------
Germany........................  Ramstein Air Force Base      $5,370,000
                                 Spangdahlem Air Base...      $1,890,000
Italy..........................  Aviano Air Base........     $10,060,000
Korea..........................  Osan Air Base..........      $9,780,000
Turkey.........................  Incirlik Air Base......      $7,160,000
United Kingdom.................  Croughton Royal Air          $1,740,000
                                  Force Base.                           
                                 Lakenheath Royal Air        $17,525,000
                                  Force Base.                           
                                 Mildenhall Royal Air         $6,195,000
                                  Force Base.                           
Overseas Classified............  Classified Locations...     $18,395,000
                                                         ---------------
                                     Total:.............     $78,115,000
------------------------------------------------------------------------


SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(5)(A), the Secretary of the Air Force may construct or acquire 
family housing units (including land acquisition) at the installations, 
for the purposes, and in the amounts set forth in the following table:


                                            Air Force: Family Housing                                           
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Eielson Air Force Base....  72 Units..................     $21,127,000
                                          Eielson Air Force Base....  Ancillary Facility........      $2,950,000
California..............................  Beale Air Force Base......  56 Units..................      $8,893,000
                                          Los Angeles Air Force Base  25 Units..................      $6,425,000
                                          Travis Air Force Base.....  70 Units..................      $8,631,000
                                          Vandenberg Air Force Base.  112 Units.................     $20,891,000
District of Columbia....................  Bolling Air Force Base....  40 Units..................      $5,000,000
Florida.................................  Eglin Auxiliary Field 9...  1 Unit....................        $249,000
                                          MacDill Air Force Base....  56 Units..................      $8,822,000
                                          Patrick Air Force Base....  Ancillary Facility........      $2,430,000
                                          Tyndall Air Force Base....  42 Units..................      $6,000,000
Georgia.................................  Robins Air Force Base.....  46 Units..................      $5,252,000
Louisiana...............................  Barksdale Air Force Base..  80 Units..................      $9,570,000
Massachusetts...........................  Hanscom Air Force Base....  32 Units..................      $5,100,000
Missouri................................  Whiteman Air Force Base...  68 Units..................      $9,600,000
Montana.................................  Malstrom Air Force Base...  98 Units..................     $15,688,000
Nevada..................................  Nellis Air Force Base.....  50 Units..................      $7,955,000
New Mexico..............................  Kirtland Air Force Base...  50 Units..................      $5,450,000
North Dakota............................  Grand Forks Air Force Base  66 Units..................      $7,784,000
                                          Minot Air Force Base......  46 Units..................      $8,740,000
Texas...................................  Lackland Air Force Base...  82 Units..................     $11,500,000
                                          Lackland Air Force Base...  Ancillary Facility........        $800,000
Washington..............................  McChord Air Force Base....  50 Units..................      $5,659,000
                                                                                                 ---------------
                                                                          Total:................    $184,516,000
----------------------------------------------------------------------------------------------------------------


    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(5)(A), the 
Secretary of the Air Force may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $9,590,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(5)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$123,650,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1996, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Air Force in the total amount of 
$1,894,594,000 as follows:
        (1) For military construction projects inside the United States 
    authorized by section 2301(a), $603,834,000.
        (2) For military construction projects outside the United 
    States authorized by section 2301(b), $78,115,000.
        (3) For unspecified minor construction projects authorized by 
    section 2805 of title 10, United States Code, $9,328,000.
        (4) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $50,687,000.
        (5) For military housing functions:
            (A) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $317,756,000.
            (B) For support of military family housing (including the 
        functions described in section 2833 of title 10, United States 
        Code), $829,474,000.
        (6) For the construction of a corrosion control facility at 
    Tinker Air Force Base, Oklahoma, authorized by section 2301(a) of 
    the Military Construction Authorization Act for Fiscal Year 1996 
    (division B of Public Law 104-106; 110 Stat. 530), $5,400,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2301 of this 
Act may not exceed the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a).
SEC. 2305. ELIMINATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1995 
PROJECT, SPANGDAHLEM AIR FORCE BASE, GERMANY.
    (a) Elimination of Project.--The table in section 2301(b) of the 
Military Construction Authorization Act for Fiscal Year 1995 (division 
B of Public Law 103-337; 108 Stat. 3037) is amended in the item 
relating to Spangdahlem Air Base, Germany, by striking out 
``$9,473,000'' in the amount column and inserting in lieu thereof 
``$7,373,000'', such reduction corresponding to the project to upgrade 
the sewage and storm water system at the installation.
    (b) Conforming Amendment to Authorization of Appropriations.--
Section 2304(a) of the Military Construction Authorization Act for 
Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 3038) is 
amended--
        (1) in the matter preceding paragraph (1), by striking out 
    ``$1,601,602,000'' and inserting in lieu thereof 
    ``$1,599,502,000''; and
        (2) in paragraph (2), by striking out ``$38,273,000'' and 
    inserting in lieu thereof ``$36,173,000''.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Military housing improvement program.
Sec. 2405. Energy conservation projects.
Sec. 2406. Authorization of appropriations, Defense Agencies.
Sec. 2407. Reduction in amounts authorized to be appropriated for fiscal 
year 1996 Defense Agencies military construction, land acquisition, and 
military family housing functions.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2406(a)(1), and, in 
the case of the projects described in paragraphs (2) and (3) of section 
2406(b), other amounts appropriated pursuant to authorizations enacted 
after this Act for the projects, the Secretary of Defense may acquire 
real property and carry out military construction projects for the 
installations and locations inside the United States, and in the 
amounts, set forth in the following table:


               Defense Agencies: Inside the United States               
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      location             Amount    
------------------------------------------------------------------------
Chemical Demilitarization                                               
 Program.......................  Pueblo Chemical                        
                                  Activity, Colorado....    $179,000,000
Defense Finance & Accounting                                            
 Service.......................  Charleston, South                      
                                  Carolina..............      $6,200,000
                                 Fort Sill, Oklahoma....     $12,864,000
                                 Gentile Air Force                      
                                  Station, Ohio.........     $11,400,000
                                 Griffiss Air Force                     
                                  Base, New York........     $10,200,000
                                 Loring Air Force Base,                 
                                  Maine.................      $6,900,000
                                 Naval Training Center,                 
                                  Orlando, Florida......      $2,600,000
                                 Norton Air Force Base,                 
                                  California............     $13,800,000
                                 Offutt Air Force Base,                 
                                  Nebraska..............      $7,000,000
                                 Rock Island Arsenal,                   
                                  Illinois..............     $14,400,000
Defense Intelligence Agency....  Bolling Air Force Base,                
                                  District of Columbia..      $6,790,000
Defense Logistics Agency.......  Altus Air Force Base,                  
                                  Oklahoma..............      $3,200,000
                                 Andrews Air Force Base,                
                                  Maryland..............     $12,100,000
                                 Barksdale Air Force                    
                                  Base, Louisiana.......      $4,300,000
                                 Defense Construction                   
                                  Supply Center,                        
                                  Columbus, Ohio........        $600,000
                                 Defense Distribution,                  
                                  San Diego, California.     $15,700,000
                                 Elmendorf Air Force                    
                                  Base, Alaska..........     $21,000,000
                                 McConnell Air Force                    
                                  Base, Kansas..........      $2,200,000
                                 Naval Air Facility, El                 
                                  Centro, California....      $5,700,000
                                 Naval Air Station,                     
                                  Fallon, Nevada........      $2,100,000
                                 Naval Air Station,                     
                                  Oceana, Virginia......      $1,500,000
                                 Shaw Air Force Base,                   
                                  South Carolina........      $2,900,000
                                 Travis Air Force Base,                 
                                  California............     $15,200,000
Defense Medical Facility Office  Andrews Air Force Base,                
                                  Maryland..............     $15,500,000
                                 Charleston Air Force                   
                                  Base, South Carolina..      $1,800,000
                                 Fort Bliss, Texas......      $6,600,000
                                 Fort Bragg, North                      
                                  Carolina..............     $11,400,000
                                 Fort Hood, Texas.......      $1,950,000
                                 Marine Corps Base, Camp                
                                  Pendleton, California.      $3,300,000
                                 Maxwell Air Force Base,                
                                  Alabama...............     $25,000,000
                                 Naval Air Station, Key                 
                                  West, Florida.........     $15,200,000
                                 Naval Air Station,                     
                                  Norfolk, Virginia.....      $1,250,000
                                 Naval Air Station,                     
                                  Lemoore, California...     $38,000,000
Special Operations Command.....  Fort Bragg, North                      
                                  Carolina..............     $14,000,000
                                 Fort Campbell, Kentucky      $4,200,000
                                 MacDill Air Force Base,                
                                  Florida...............      $9,600,000
                                 Naval Amphibious Base,                 
                                  Coronado, California..      $7,700,000
                                 Naval Station, Ford                    
                                  Island, Pearl Harbor,                 
                                  Hawaii................     $12,800,000
                                                         ---------------
                                     Total:.............    $525,454,000
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2406(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:


               Defense Agencies: Outside the United States              
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      location             Amount    
------------------------------------------------------------------------
Defense Logistics Agency.......  Moron Air Base, Spain..     $12,958,000
                                 Naval Air Station,                     
                                  Sigonella, Italy......      $6,100,000
Defense Medical Facility Office  Administrative Support                 
                                  Unit, Bahrain, Bahrain      $4,600,000
                                                         ---------------
                                     Total:.............     $23,658,000
------------------------------------------------------------------------


SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

    Using amounts appropriated pursuant to the authorization of 
appropriation in section 2406(a)(14)(A), the Secretary of Defense may 
carry out architectural and engineering services and construction 
design activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed $500,000.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriation in 
section 2406(a)(14)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $3,871,000.

SEC. 2404. MILITARY HOUSING IMPROVEMENT PROGRAM.

    (a) Availability of Funds for Credit to Family Housing Improvement 
Fund.--(1) Of the amount authorized to be appropriated pursuant to 
section 2406(a)(14)(C), $25,000,000 shall be available for credit to 
the Department of Defense Family Housing Improvement Fund established 
by section 2883(a)(1) of title 10, United States Code.
    (2) Of the amount authorized to be appropriated pursuant to section 
2406(a)(14)(D), $5,000,000 shall be available for credit to the 
Department of Defense Military Unaccompanied Housing Improvement Fund 
established by section 2883(a)(2) of such title.
    (b) Use of Funds.--(1) The Secretary of Defense may use funds 
credited to the Department of Defense Family Housing Improvement Fund 
under subsection (a)(1) to carry outany activities authorized by 
subchapter IV of chapter 169 of such title with respect to military 
family housing.
    (2) The Secretary of Defense may use funds credited to the 
Department of Defense Military Unaccompanied Housing Improvement Fund 
under subsection (a)(2) to carry out any activities authorized by 
subchapter IV of chapter 169 of such title with respect to military 
unaccompanied housing.

SEC. 2405. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2406(a)(12), the Secretary of Defense may 
carry out energy conservation projects under section 2865 of title 10, 
United States Code.

SEC. 2406. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1996, for military 
construction, land acquisition, and military family housing functions 
of the Department of Defense (other than the military departments), in 
the total amount of $3,379,703,000 as follows:
        (1) For military construction projects inside the United States 
    authorized by section 2401(a), $344,854,000.
        (2) For military construction projects outside the United 
    States authorized by section 2401(b), $23,658,000.
        (3) For military construction projects at Naval Hospital, 
    Portsmouth, Virginia, hospital replacement, authorized by section 
    2401(a) of the Military Construction Authorization Act for Fiscal 
    Years 1990 and 1991 (division B of Public Law 101-189; 103 Stat. 
    1640), $24,000,000.
        (4) For military construction projects at Walter Reed Army 
    Institute of Research, Maryland, hospital replacement, authorized 
    by section 2401(a) of the Military Construction Authorization Act 
    for Fiscal Year 1993 (division B of Public Law 102-484; 106 Stat. 
    2599), $72,000,000.
        (5) For military construction projects at Fort Bragg, North 
    Carolina, hospital replacement, authorized by section 2401(a) of 
    the Military Construction Authorization Act for Fiscal Year 1993 
    (106 Stat. 2599), $89,000,000.
        (6) For military construction projects at Pine Bluff Arsenal, 
    Arkansas, authorized by section 2401(a) of the Military 
    Construction Authorization Act for Fiscal Year 1995 (division B of 
    the Public Law 103-337; 108 Stat. 3040), $46,000,000.
        (7) For military construction projects at Umatilla Army Depot, 
    Oregon, authorized by section 2401(a) of the Military Construction 
    Authorization Act for Fiscal Year 1995 (108 Stat. 3040), 
    $64,000,000.
        (8) For military construction projects at the Defense Finance 
    and Accounting Service, Columbus, Ohio, authorized by section 
    2401(a) of the Military Construction Authorization Act of Fiscal 
    Year 1996 (division B of Public Law 104-106; 110 Stat. 535), 
    $20,822,000.
        (9) For contingency construction projects of the Secretary of 
    Defense under section 2804 of title 10, United States Code, 
    $4,500,000.
        (10) For unspecified minor construction projects under section 
    2805 of title 10, United States Code, $21,874,000.
        (11) For architectural and engineering services and 
    construction design under section 2807 of title 10, United States 
    Code, $12,239,000.
        (12) For energy conservation projects under section 2865 of 
    title 10, United States Code, $47,765,000.
        (13) For base closure and realignment activities as authorized 
    by the Defense Base Closure and Realignment Act of 1990 (part A of 
    title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), 
    $2,507,476,000.
        (14) For military family housing functions:
            (A) For improvement and planning of military family housing 
        and facilities, $4,371,000.
            (B) For support of military housing (including functions 
        described in section 2833 of title 10, United States Code), 
        $30,963,000, of which not more than$25,637,000 may be obligated 
or expended for the leasing of military family housing units worldwide.
            (C) For credit to the Department of Defense Family Housing 
        Improvement Fund as authorized by section 2404(a)(1) of this 
        Act, $25,000,000.
            (D) For credit to the Department of Defense Military 
        Unaccompanied Housing Improvement Fund as authorized by section 
        2404(a)(2) of this Act, $5,000,000.
            (E) For the Homeowners Assistance Program as authorized by 
        section 2832 of title 10, United States Code, $36,181,000, to 
        remain available until expended.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853 of title 
10, United States Code, and any other cost variations authorized by 
law, the total cost of all projects carried out under section 2401 of 
this Act may not exceed--
        (1) the total amount authorized to be appropriated under 
    paragraphs (1) and (2) of subsection (a);
        (2) $179,000,000 (the balance of the amount authorized under 
    section 2401(a) of this Act for the construction of a chemical 
    demilitarization facility at Pueblo Army Depot, Colorado); and
        (3) $1,600,000 (the balance of the amount authorized under 
    section 2401(a) of this Act for the construction of a replacement 
    facility for the medical and dental clinic, Key West Naval Air 
    Station, Florida).
SEC. 2407. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR 
FISCAL YEAR 1996 DEFENSE AGENCIES MILITARY CONSTRUCTION, LAND 
ACQUISITION, AND MILITARY FAMILY HOUSING FUNCTIONS.
    Section 2405 of the Military Construction Authorization Act for 
Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 537) is 
amended by adding at the end the following new subsection:
    ``(c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (11) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by $7,000,000, which represents the combination of project savings 
resulting from favorable bids, reduced overhead costs, and 
cancellations due to force structure changes.''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.
    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment program as provided in 
section 2806 of title 10, United States Code, in an amount not to 
exceed the sum of the amount authorized to be appropriated for this 
purpose in section 2502 and the amount collected from the North 
Atlantic Treaty Organization as a result of construction previously 
financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 1996, for contributions by the Secretary 
of Defense under section 2806 of title 10, United States Code, for the 
share of the United States of the cost of projects for the North 
Atlantic Treaty Security Investment program as authorized by section 
2501, in the amount of $172,000,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.
Sec. 2602. Authorization and funding for construction and improvement of 
          Naval Reserve Centers.
Sec. 2603. Upgrade Air National Guard facilities, Bangor International 
          Airport, Maine.
SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
ACQUISITION PROJECTS.
    There are authorized to be appropriated for fiscal years beginning 
after September 30, 1996, for the costs of acquisition, architectural 
and engineering services, and construction of facilities for the Guard 
and Reserve Forces, and for contributions therefor, under chapter 1803 
of title 10, United States Code (including the cost of acquisition of 
land for those facilities), the following amounts:
        (1) For the Department of the Army--
            (A) for the Army National Guard of the United States, 
        $59,194,000; and
            (B) for the Army Reserve, $55,543,000.
        (2) For the Department of the Navy, for the Naval and Marine 
    Corps Reserve, $32,779,000.
        (3) For the Department of the Air Force--
            (A) for the Air National Guard of the United States, 
        $188,505,000; and
            (B) for the Air Force Reserve, $52,805,000.
SEC. 2602. AUTHORIZATION AND FUNDING FOR CONSTRUCTION AND IMPROVEMENT 
OF NAVAL RESERVE CENTERS.
    (a) Army Reserve Centers.--Using amounts appropriated under the 
heading ``Military Construction, Naval Reserve'' in the Military 
Construction Appropriations Act, 1995 (Public Law 103-307; 108 Stat. 
1661), for the construction of a Naval Reserve Center in Seattle, 
Washington, the Secretary of the Army may carry out a military 
construction project for the construction of an Army Reserve Center at 
Fort Lawton, Washington, in the total amount of $5,200,000, of which 
$700,000 may be used for program and design activities relating to such 
construction.
    (b) Naval Reserve Facilities.--Using amounts appropriated under the 
heading ``Military Construction, Naval Reserve'' in the Military 
Construction Appropriations Act, 1995 (Public Law 103-307; 108 Stat. 
1661), for the construction of a Naval Reserve Center in Seattle, 
Washington, the Secretary of the Navy may carry out--
        (1) a military construction project for the construction of an 
    addition to the Naval Reserve Center in Tacoma, Washington, in the 
    total amount of $4,200,000;
        (2) unspecified minor construction at Naval Reserve facilities 
    in the total amount of $500,000; and
        (3) planning and design activities with respect to improvements 
    at Naval Reserve facilities in the total amount of $500,000.
SEC. 2603. UPGRADE AIR NATIONAL GUARD FACILITIES, BANGOR INTERNATIONAL 
AIRPORT, MAINE.
    (a) Project Authorized.--Using amounts appropriated pursuant to the 
authorization of appropriations in section 2601(3)(A) and amounts 
appropriated pursuant to authorizations of appropriations enacted after 
the date of the enactment of this Act, the Secretary of the Air Force 
may carry out a construction project to upgrade Air National Guard base 
and support facilities at Bangor International Airport, Maine. The 
Secretary may contract for architectural and engineering services and 
construction design services in connection with the construction 
project.
    (b) Limitation on Total Cost of Project.--The total cost of the 
construction project authorized by subsection (a) may not exceed 
$13,000,000.
    (c) Fiscal Year 1997 Funding.--Of the amount authorized to be 
appropriated in section 2601(3)(A), $7,000,000 shall be available to 
carry out the construction project authorized by subsection (a).

        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 1994 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1993 
          projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1992 
          projects.
Sec. 2705. Effective date.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
              SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
        (1) October 1, 1999; or
        (2) the date of the enactment of an Act authorizing funds for 
    military construction for fiscal year 2000.
    (b) Exception.--Subsection (a) shall not apply to authorizations 
for military construction projects, land acquisition, family housing 
projects and facilities, and contributions to the North Atlantic Treaty 
Organization Security Investment program (and authorizations of 
appropriations therefor), for which appropriated funds have been 
obligated before the later of--
        (1) October 1, 1999; or
        (2) the date of the enactment of an Act authorizing funds for 
    fiscal year 2000 for military construction projects, land 
    acquisition, family housing projects and facilities, or 
    contributions to the North Atlantic Treaty Organization Security 
    Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1994 
              PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1994 (division B of 
Public Law 103-160; 107 Stat. 1880), authorizations for the projects 
set forth in the tables in subsection (b), as provided in section 2101, 
2102, 2201, 2301, or 2601 of that Act, shall remain in effect until 
October 1, 1997, or the date of the enactment of an Act authorizing 
funds for military construction for fiscal year 1998, whichever is 
later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:


                                 Army: Extension of 1994 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
New Jersey..............................  Picatinny Arsenal.........  Advance Warhead                           
                                                                       Development Facility.....      $4,400,000
North Carolina..........................  Fort Bragg................  Land Acquisition..........     $15,000,000
Wisconsin...............................  Fort McCoy................  Family Housing                            
                                                                       Construction (16 units)..      $2,950,000
----------------------------------------------------------------------------------------------------------------



                                 Navy: Extension of 1994 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
            State or location              Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
California..............................  Camp Pendleton Marine                                                 
                                           Corps Base...............  Sewage Facility...........      $7,930,000
Connecticut.............................  New London Naval Submarine                                            
                                           Base.....................  Hazardous Waste Transfer                  
                                                                       Facility.................      $1,450,000
New Jersey..............................  Earle Naval Weapons                                                   
                                           Station..................  Explosives Holding Yard...      $1,290,000
Virginia................................  Oceana Naval Air Station..  Jet Engine Test Cell                      
                                                                       Replacement..............      $5,300,000
Various Locations.......................  Various Locations.........  Land Acquisition Inside                   
                                                                       the United States........        $540,000
Various Locations.......................  Various Locations.........  Land Acquisition Outside                  
                                                                       the United States........        $800,000
----------------------------------------------------------------------------------------------------------------



                               Air Force: Extension of 1994 Project Authorizations                              
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Eielson Air Force Base....  Upgrade Water Treatment                   
                                                                       Plant....................      $3,750,000
                                          Elmendorf Air Force Base..  Corrosion Control Facility      $5,975,000
California..............................  Beale Air Force Base......  Educational Center........      $3,150,000
Florida.................................  Tyndall Air Force Base....  Base Supply Logistics                     
                                                                       Center...................      $2,600,000
Mississippi.............................  Keesler Air Force Base....  Upgrade Student Dormitory.      $4,500,000
North Carolina..........................  Pope Air Force Base.......  Add To and Alter                          
                                                                       Dormitories..............      $4,300,000
Virginia................................  Langley Air Force Base....  Fire Station..............      $3,850,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1994 Project Authorizations                         
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alabama.................................  Birmingham................  Aviation Support Facility.      $4,907,000
Arizona.................................  Marana....................  Organizational Maintenance                
                                                                       Shop.....................        $553,000
                                          Marana....................  Dormitory/Dining Facility.      $2,919,000
California..............................  Fresno....................  Organizational Maintenance                
                                                                       Shop Modification........        $905,000
                                          Van Nuys..................  Armory Addition...........      $6,518,000
New Mexico..............................  White Sands Missile Range.  Organizational Maintenance                
                                                                       Shop.....................      $2,940,000
                                                                      Tactical Site.............      $1,995,000
                                                                      MATES.....................      $3,570,000
Pennsylvania............................  Indiantown Gap............  State Military Building...      $9,200,000
                                          Johnstown.................  Armory Addition/Flight                    
                                                                       Facility.................      $5,004,000
                                          Johnstown.................  Armory....................      $3,000,000
South Carolina..........................  Summerville...............  Organizational Maintenance                
                                                                       Shop.....................        $834,000
----------------------------------------------------------------------------------------------------------------


SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993 
              PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1993 (division B of 
Public Law 102-484; 106 Stat. 2602), authorizations for the projects 
set forth in the tables in subsection (b), as provided in section 2101, 
2301, or 1601 of that Act and extended by section 2702 of the Military 
Construction Authorization Act for Fiscal Year 1996 (division B of 
Public Law 104-106; 110 Stat. 541), shall remain in effect until 
October 1, 1997, or the date of the enactment of an Act authorizing 
funds for military construction for fiscal year 1998, whichever is 
later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:


                                  Army: Extension of 1993 Project Authorization                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Arkansas................................  Pine Bluff Arsenal........  Ammunition                                
                                                                       Demilitarization Support                 
                                                                       Facility.................     $15,000,000
----------------------------------------------------------------------------------------------------------------



                               Air Force: Extension of 1993 Project Authorization                               
----------------------------------------------------------------------------------------------------------------
                 Country                   Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Portugal................................  Lajes Field...............  Water Wells...............        $865,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1993 Project Authorizations                         
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alabama.................................  Tuscaloosa................  Armory....................      $2,273,000
                                          Union Springs.............  Armory....................        $813,000
New Mexico..............................  Clayton...................  Armory....................      $1,400,000
----------------------------------------------------------------------------------------------------------------


SEC. 2704. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992 
PROJECTS.
    (a) Extensions.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1992 (division B of 
Public Law 102-190; 105 Stat. 1535), authorizations for the projects 
set forth in the table in subsection (b), as provided in section 2201 
of that Act and extended by section 2702(a) of the Military 
Construction Authorization Act for Fiscal Year 1995 (division B of 
Public Law 103-337; 108 Stat. 3047) and section 2703(a) of the Military 
Construction Authorization Act for Fiscal Year 1996 (division B of 
Public Law 104-106; 110 Stat. 543), shall remain in effect until 
October 1, 1997, or the date of the enactment of an Act authorizing 
funds for military construction for fiscal year 1998, whichever is 
later.
    (b) Table.--The table referred to in subsection (a) is as follows:


                                 Army: Extension of 1992 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Oregon..................................  Umatilla Army Depot.......  Ammunition                                
                                                                       Demilitarization Support                 
                                                                       Facility.................      $3,600,000
                                          Umatilla Army Depot.......  Ammunition                                
                                                                       Demilitarization                         
                                                                       Utilities................      $7,500,000
----------------------------------------------------------------------------------------------------------------


SEC. 2705. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on 
the later of--
        (1) October 1, 1996; or
        (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in certain thresholds for unspecified minor 
construction projects.
Sec. 2802. Redesignation of North Atlantic Treaty Organization 
Infrastructure program.
Sec. 2803. Improvements to family housing units.
Sec. 2804. Availability of funds for planning, execution, and 
administration of contracts for family housing and unaccompanied 
housing.

            Subtitle B--Defense Base Closure and Realignment

Sec. 2811. Restoration of authority for certain intragovernment 
transfers under 1988 base closure law.
Sec. 2812. Contracting for certain services at facilities remaining on 
closed installations.
Sec. 2813. Authority to compensate owners of manufactured housing.
Sec. 2814. Additional purpose for which adjustment and diversification 
assistance is authorized.
Sec. 2815. Payment of stipulated penalties assessed under CERCLA in 
connection with Loring Air Force Base, Maine.
Sec. 2816. Plan for utilization, reutilization, or disposal of 
Mississippi Army Ammunition Plant.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, 
Virginia.
Sec. 2822. Land transfer, Fort Sill, Oklahoma.
Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.
Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South 
Carolina.
Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.
Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center, 
Manchester, New Hampshire.
Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.
Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

                        Part II--Navy Conveyances

Sec. 2831. Land transfer, Potomac Annex, District of Columbia.
Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, 
Virginia.
Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons 
Industrial Reserve Plant, Calverton, New York.
Sec. 2834. Land conveyance, former naval reserve facility, Lewes, 
Delaware.
Sec. 2835. Modification of land conveyance authority, Naval Reserve 
Center, Seattle, Washington.
Sec. 2836. Release of condition on reconveyance of transferred land, 
Guam.
Sec. 2837. Lease to facilitate construction of reserve center, Naval Air 
Station, Meridian, Mississippi.

                     Part III--Air Force Conveyances

Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche, 
South Dakota.
Sec. 2842. Conveyance of primate research complex and Air Force-owned 
chimpanzees, Holloman Air Force Base, New Mexico.

                       Part IV--Other Conveyances

Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi.
Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla, 
North Dakota.
Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.
Sec. 2854. Modification of boundaries of White Sands National Monument 
and White Sands Missile Range.

                        Subtitle D--Other Matters

Sec. 2861. Authority to grant easements for rights-of-way.
Sec. 2862. Authority to enter into cooperative agreements for the 
management of cultural resources on military installations.
Sec. 2863. Demonstration project for installation and operation of 
electric power distribution system at Youngstown Air Reserve Station, 
Ohio.
Sec. 2864. Renovation of the Pentagon reservation.
Sec. 2865. Plan for repairs and stabilization of the historic district 
at the Forest Glen Annex of Walter Reed Medical Center, Maryland.
Sec. 2866. Naming of range at Camp Shelby, Mississippi.
Sec. 2867. Designation of Michael O'Callaghan military hospital.
Sec. 2868. Naming of building at the Uniformed Services University of 
the Health Sciences.

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

SEC. 2801. INCREASE IN CERTAIN THRESHOLDS FOR UNSPECIFIED MINOR 
CONSTRUCTION PROJECTS.
    (a) O&M Funding for Projects.--Section 2805(c)(1)(B) of title 10, 
United States Code, is amended by striking out ``$300,000'' and 
inserting in lieu thereof ``$500,000''.
    (b) O&M Funding for Reserve Component Facilities.--Subsection (b) 
of section 18233a of such title is amended by striking out ``$300,000'' 
and inserting in lieu thereof ``$500,000''.
    (c) Notification for Expenditures and Contributions for Reserve 
Component Facilities.--Subsection (a)(1) of such section 18233a is 
amended by striking out ``$400,000'' and inserting in lieu thereof 
``$1,500,000''.
SEC. 2802. REDESIGNATION OF NORTH ATLANTIC TREATY ORGANIZATION 
INFRASTRUCTURE PROGRAM.
    (a) Redesignation.--Subsection (b) of section 2806 of title 10, 
United States Code, is amended by striking out ``North Atlantic Treaty 
Organization Infrastructure program'' and inserting in lieu thereof 
``North Atlantic Treaty Organization Security Investment program''.
    (b) References.--Any reference to the North Atlantic Treaty 
Organization Infrastructure program in any Federal law, Executive 
order, regulation, delegation of authority, or document of or 
pertaining to the Department of Defense shall be deemed to refer to the 
North Atlantic Treaty Organization Security Investment program.
    (c) Clerical Amendments.--(1) The section heading of such section 
is amended to read as follows:
``Sec. 2806. Contributions for North Atlantic Treaty Organizations 
    Security Investment''.
    (2) The table of sections at the beginning of subchapter I of 
chapter 169 of title 10, United States Code, is amended by striking out 
the item relating to section 2806 and inserting in lieu thereof the 
following new item:

``2806. Contributions for North Atlantic Treaty Organizations Security 
Investment.''.

    (d) Conforming Amendments.--(1) Section 2861(b)(3) of title 10, 
United States Code, is amended by striking out ``North Atlantic Treaty 
Organization Infrastructure program'' and inserting in lieu thereof 
``North Atlantic Treaty Organization Security Investment program''.
    (2) Section 21(h)(1)(B) of the Arms Export Control Act (22 U.S.C. 
2761(h)(1)(B)) is amended by striking out ``North Atlantic Treaty 
Organization Infrastructure Program'' and inserting in lieu thereof 
``North Atlantic Treaty Organization Security Investment program''.

SEC. 2803. IMPROVEMENTS TO FAMILY HOUSING UNITS.

    (a) Authorized Improvements.--Subsection (a)(2) of section 2825 of 
title 10, United States Code, is amended--
        (1) by inserting ``major'' before ``maintenance''; and
        (2) by adding at the end the following: ``Such term does not 
    include day-to-day maintenance and repair work.''.
    (b) Limitation.--Subsection (b) of such section is amended by 
striking out paragraph (2) and inserting in lieu thereof the following 
new paragraph:
    ``(2) In determining the applicability of the limitation contained 
in paragraph (1), the Secretary concerned shall include as part of the 
cost of the improvement of the unit or units concerned the following:
        ``(A) The cost of major maintenance or repair work undertaken 
    in connection with the improvement.
        ``(B) Any cost, other than the cost of activities undertaken 
    beyond a distance of five feet from the unit or units concerned, in 
    connection with--
            ``(i) the furnishing of electricity, gas, water, and sewage 
        disposal;
            ``(ii) the construction or repair of roads, drives, and 
        walks; and
            ``(iii) grading and drainage work.''.
SEC. 2804. AVAILABILITY OF FUNDS FOR PLANNING, EXECUTION, AND 
ADMINISTRATION OF CONTRACTS FOR FAMILY HOUSING AND UNACCOMPANIED 
HOUSING.
    (a) Contracts for Family Housing.--Paragraph (1) of section 2883(d) 
of title 10, United States Code, is amended by adding at the end the 
following: ``The Secretary may also use for expenses of activities 
required in connection with the planning, execution, and administration 
of such contracts funds that are otherwise available to the Department 
of Defense for such types of expenses.''.
    (b) Contracts for Unaccompanied Housing.--Paragraph (2) of such 
section is amended by adding at the end the following: ``The Secretary 
may also use for expenses of activities required in connection with the 
planning, execution, and administration of such contracts funds that 
are otherwise available to the Department of Defense for such types of 
expenses.''.

            Subtitle B--Defense Base Closure and Realignment

SEC. 2811. RESTORATION OF AUTHORITY FOR CERTAIN INTRA- GOVERNMENT 
TRANSFERS UNDER 1988 BASE CLOSURE LAW.
    Section 204(b)(2) of the Defense Authorization Amendments and Base 
Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note), 
is amended--
        (1) by redesignating subparagraphs (D) and (E) as subparagraphs 
    (E) and (F), respectively; and
        (2) by inserting after subparagraph (C) the following new 
    subparagraph (D):
    ``(D) The Secretary of Defense may transfer real property or 
facilities located at a military installation to be closed or realigned 
under this title, with or without reimbursement, to a military 
department or other entity (including a nonappropriated fund 
instrumentality) within the Department of Defense or the Coast 
Guard.''.
SEC. 2812. CONTRACTING FOR CERTAIN SERVICES AT FACILITIES REMAINING ON 
CLOSED INSTALLATIONS.
    (a) 1988 Law.--Section 204(b)(8)(A) of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note) is amended by inserting ``, or at facilities not yet 
transferred or otherwise disposed of in the case of installations 
closed under this title,'' after ``under this title''.
    (b) 1990 Law.--Section 2905(b)(8)(A) of the Defense Base Closure 
and Realignment Act of 1990 (part A of title XXIX of Public Law 101-
510; 10 U.S.C. 2687 note) is amended by inserting ``, or at facilities 
not yet transferred or otherwise disposed of in the case of 
installations closed under this part,'' after ``under this part''.
SEC. 2813. AUTHORITY TO COMPENSATE OWNERS OF MANUFACTURED HOUSING.
    (a) 1988 Law.--Section 204 of the Defense Authorization Amendments 
and Base Closure and Realignment Act (PublicLaw 100-526; 10 U.S.C. 2687 
note), is amended by adding at the end the following new subsection:
    ``(f) Acquisition of Manufactured Housing.--(1) In closing or 
realigning any military installation under this title, the Secretary 
may purchase any or all right, title, and interest of a member of the 
Armed Forces and any spouse of the member in manufactured housing 
located at a manufactured housing park established at an installation 
closed or realigned under this title, or make a payment to the member 
to relocate the manufactured housing to a suitable new site, if the 
Secretary determines that--
        ``(A) it is in the best interests of the Federal Government to 
    eliminate or relocate the manufactured housing park; and
        ``(B) the elimination or relocation of the manufactured housing 
    park would result in an unreasonable financial hardship to the 
    owners of the manufactured housing.
    ``(2) Any payment made under this subsection shall not exceed 90 
percent of the purchase price of the manufactured housing, as paid by 
the member or any spouse of the member, plus the cost of any permanent 
improvements subsequently made to the manufactured housing by the 
member or spouse of the member.
    ``(3) The Secretary shall dispose of manufactured housing acquired 
under this subsection through resale, donation, trade or otherwise 
within one year of acquisition.''.
    (b) 1990 Law.--Section 2905 of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note), is amended by adding at the end the following new 
subsection:
    ``(g) Acquisition of Manufactured Housing.--(1) In closing or 
realigning any military installation under this part, the Secretary may 
purchase any or all right, title, and interest of a member of the Armed 
Forces and any spouse of the member in manufactured housing located at 
a manufactured housing park established at an installation closed or 
realigned under this part, or make a payment to the member to relocate 
the manufactured housing to a suitable new site, if the Secretary 
determines that--
        ``(A) it is in the best interests of the Federal Government to 
    eliminate or relocate the manufactured housing park; and
        ``(B) the elimination or relocation of the manufactured housing 
    park would result in an unreasonable financial hardship to the 
    owners of the manufactured housing.
    ``(2) Any payment made under this subsection shall not exceed 90 
percent of the purchase price of the manufactured housing, as paid by 
the member or any spouse of the member, plus the cost of any permanent 
improvements subsequently made to the manufactured housing by the 
member or spouse of the member.
    ``(3) The Secretary shall dispose of manufactured housing acquired 
under this subsection through resale, donation, trade or otherwise 
within one year of acquisition.''.
SEC. 2814. ADDITIONAL PURPOSE FOR WHICH ADJUSTMENT AND DIVERSIFICATION 
ASSISTANCE IS AUTHORIZED.
    Section 2391(b)(5) of title 10, United States Code, is amended--
        (1) by inserting ``(A)'' after ``(5)''; and
        (2) by adding at the end the following new subparagraph:
    ``(B) The Secretary of Defense may also make grants, conclude 
cooperative agreements, and supplement other Federal funds in order to 
assist a State in enhancing its capacities--
        ``(i) to assist communities, businesses, and workers adversely 
    affected by an action described in paragraph (1);
        ``(ii) to support local adjustment and diversification 
    initiatives; and
        ``(iii) to stimulate cooperation between statewide and local 
    adjustment and diversification efforts.''.
SEC. 2815. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA IN 
CONNECTION WITH LORING AIR FORCE BASE, MAINE.
    From amounts in the Department of Defense Base Closure Account 1990 
established by section 2906(a)(1) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note), the Secretary of Defense may expend not more than 
$50,000 to pay stipulated civil penalties assessed under the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.) against Loring Air Force Base, Maine.
SEC. 2816. PLAN FOR UTILIZATION, REUTILIZATION, OR DISPOSAL OF 
MISSISSIPPI ARMY AMMUNITION PLANT.
    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of the Army shall submit to the congressional 
defense committees a plan for the utilization, reutilization, or 
disposal of the Mississippi Army Ammunition Plant, Hancock County, 
Mississippi.

                      Subtitle C--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2821. TRANSFER OF LANDS, ARLINGTON NATIONAL CEMETERY, ARLINGTON, 
VIRGINIA.
    (a) Requirement for Secretary of Interior To Transfer Certain 
Section  29 Lands.--(1) Subject to paragraph (2), the Secretary of the 
Interior shall transfer to the Secretary of the Army administrative 
jurisdiction over the following lands located in section 29 of the 
National Park System at Arlington National Cemetery, Virginia:
        (A) The lands known as the Arlington National Cemetery 
    Interment Zone.
        (B) All lands in the Robert E. Lee Memorial Preservation Zone, 
    other than those lands in the Preservation Zone that the Secretary 
    of the Interior determines must be retained because of the 
    historical significance of such lands or for the maintenance of 
    nearby lands or facilities.
    (2)(A) The Secretary of the Interior may not make the transfer 
referred to in paragraph (1)(B) until 60 days after the date on which 
the Secretary submits to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives--
        (i) a summary of the document entitled ``Cultural Landscape and 
    Archaeological Study, Section 29, Arlington House, The Robert E. 
    Lee Memorial'';
        (ii) a summary of any environmental analysis required with 
    respect to the transfer under the National Environmental Policy Act 
    of 1969 (42 U.S.C. 4321 et seq.);
        (iii) an accounting of the effect of the transfer that 
    satisfies the requirements of section 106 of the National Historic 
    Preservation Act (16 U.S.C. 470f); and
        (iv) the proposal of the Secretary and the Secretary of the 
    Army setting forth the lands to be transferred and the general 
    manner in which the Secretary of the Army will develop such lands 
    after transfer.
    (B) The Secretary of the Interior shall submit the information 
required under subparagraph (A) not later than October 31, 1997.
    (3) The transfer of lands under paragraph (1) shall be carried out 
in accordance with the Interagency Agreement Between the Department of 
the Interior, the National Park Service, and the Department of the 
Army, dated February 22, 1995.
    (4) The exact acreage and legal descriptions of the lands to be 
transferred under paragraph (1) shall be determined by surveys 
satisfactory to the Secretary of the Interior and the Secretary of the 
Army.
    (b) Requirement for Additional Transfers.--(1) The Secretary of the 
Interior shall transfer to the Secretary of the Army administrative 
jurisdiction over a parcel of land, including any improvements thereon, 
consisting of approximately 2.43 acres, located in the Memorial Drive 
entrance area to Arlington National Cemetery.
    (2)(A) The Secretary of the Army shall transfer to the Secretary of 
the Interior administrative jurisdiction over a parcel of land, 
including any improvements thereon, consisting of approximately 0.17 
acres, located at Arlington National Cemetery, and known as the Old 
Administrative Building site. The site is part of the original 
reservation of Arlington National Cemetery.
    (B) In connection with the transfer under subparagraph (A), the 
Secretary of the Army shall grant to the Secretary of the Interior a 
perpetual right of ingress and egress to the parcel transferred under 
that subparagraph.
    (3) The exact acreage and legal descriptions of the lands to be 
transferred pursuant to this subsection shall be determined by surveys 
satisfactory to the Secretary of the Interior and the Secretary of the 
Army. The costs of such surveys shall be borne by the Secretary of the 
Army.

SEC. 2822. LAND TRANSFER, FORT SILL, OKLAHOMA.

    (a) Transfer of Land for National Cemetery.--The Secretary of the 
Army may transfer, without reimbursement, tothe administrative 
jurisdiction of the Secretary of Veterans Affairs a parcel of real 
property, including any improvements thereon, consisting of 
approximately 400 acres and comprising a portion of Fort Sill, 
Oklahoma.
    (b) Use of Property.--The Secretary of Veterans Affairs shall use 
the real property transferred under subsection (a) as a national 
cemetery under chapter 24 of title 38, United States Code.
    (c) Return of Unused Portion.--If the Secretary of Veterans Affairs 
determines that any portion of the real property transferred under 
subsection (a) is not needed for use as a national cemetery, the 
Secretary shall return such portion to the administrative jurisdiction 
of the Secretary of the Army.
    (d) Legal Description.--The exact acreage and legal description of 
the real property to be transferred under this section shall be 
determined by a survey satisfactory to the Secretary of the Army. The 
cost of the survey shall be borne by the Secretary of Veterans Affairs.
SEC. 2823. LAND CONVEYANCE, ARMY RESERVE CENTER, RUSHVILLE, INDIANA.
    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the City of Rushville, Indiana (in this 
section referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of excess real property, including 
improvements thereon, that is located in Rushville, Indiana, and 
contains the Rushville Army Reserve Center.
    (b) Condition of Conveyance.--The conveyance authorized under 
subsection (a) shall be subject to the condition that the City retain 
the conveyed property for the use and benefit of the Rushville Police 
Department.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the City.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2824. LAND CONVEYANCE, ARMY RESERVE CENTER, ANDERSON, SOUTH 
CAROLINA.
    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the County of Anderson, South Carolina (in 
this section referred to as the ``County''), all right, title, and 
interest of the United States in and to a parcel of real property, 
including improvements thereon, that is located at 805 East Whitner 
Street in Anderson, South Carolina, and contains an Army Reserve 
Center.
    (b) Condition of Conveyance.--The conveyance authorized under 
subsection (a) shall be subject to the condition that the County retain 
the conveyed property for the use and benefit of the Anderson County 
Department of Education.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the County.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2825. LAND CONVEYANCE, ARMY RESERVE CENTER, MONTPELIER, VERMONT.
    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the City of Montpelier, Vermont (in this 
section referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 4.3 acres and located 
on Route 2 in Montpelier, Vermont, the site of the Army Reserve Center, 
Montpelier, Vermont.
    (b) Condition.--The conveyance authorized under subsection (a) 
shall be subject to the condition that the City agree to lease to the 
Civil Air Patrol, at no rental charge to the Civil Air Patrol, the 
portion of the real property and improvements located on the parcel to 
be conveyed that the Civil Air Patrol leases from the Secretary as of 
the date of the enactment of this Act.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the City.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2826. LAND CONVEYANCE, CRAFTS BROTHERS RESERVE TRAINING CENTER, 
MANCHESTER, NEW HAMPSHIRE.
    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to Saint Anselm College, Manchester, New 
Hampshire, all right, title, and interest of the United States in and 
to a parcel of real property, including improvements thereon, 
consisting of approximately 3.5 acres and located on Rockland Avenue in 
Manchester, New Hampshire, the site of the Crafts Brothers Reserve 
Training Center.
    (b) Requirement Relating to Conveyance.--The Secretary may not make 
the conveyance authorized by subsection (a) until the Army Reserve 
units currently housed at the Crafts Brothers Reserve Training Center 
are relocated to the Joint Service Reserve Center to be constructed at 
the Manchester Airport, New Hampshire.
    (c) Requirement for Federal Screening of Property.--The Secretary 
may not carry out the conveyance of property authorized by subsection 
(a) unless the Secretary determines that no department or agency of the 
Federal Government will accept the transfer of the property.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2827. LAND CONVEYANCE, PINE BLUFF ARSENAL, ARKANSAS.
    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Economic Development Alliance of 
Jefferson County, Arkansas (in this section referred to as the 
``Alliance''), all right, title, and interest of the United States in 
and to a parcel of real property, together with any improvements 
thereon, consisting of approximately 1,500 acres and comprising a 
portion of the Pine Bluff Arsenal, Arkansas.
    (b) Requirements Relating to Conveyance.--The Secretary may not 
carry out the conveyance of property authorized under subsection (a) 
until--
        (1) the completion by the Secretary of any environmental 
    restoration and remediation that is required with respect to the 
    property under applicable law;
        (2) the Secretary secures all permits required under law 
    applicable regarding the conduct of the proposed chemical 
    demilitarization mission at the arsenal; and
        (3) the Secretary of Defense submits to the Committee on Armed 
    Services of the Senate and the Committee on National Security of 
    the House of Representatives a certification that the conveyance 
    will not adversely affect the ability of the Department of Defense 
    to conduct that chemical demilitarization mission.
    (c) Conditions of Conveyance.--The conveyance authorized under 
subsection (a) shall be subject to the following conditions:
        (1) That the Alliance agree not to carry out any activities on 
    the property to be conveyed that interfere with the construction, 
    operation, and decommissioning of the chemical demilitarization 
    facility to be constructed at Pine Bluff Arsenal. If the Alliance 
    fails to comply with its agreement in paragraph (1) the property 
    conveyed under this section, all rights, title, and interest in and 
    to the property shall revert to the United States, and the United 
    States shall have immediate rights of entry thereon.
        (2) That the property be used during the 25-year period 
    beginning on the date of the conveyance only as the site of the 
    facility known as the ``Bioplex'', and for activities related 
    thereto.
    (d) Costs of Conveyance.--The Alliance shall be responsible for any 
costs of the Army associated with the conveyance of property under this 
section, including administrative costs, the costs of an environmental 
baseline survey with respect to the property, and the cost of any 
protection services required by the Secretary in order to secure 
operations of the chemical demilitarization facility from activities on 
the property after the conveyance.
    (e) Reversionary Interests.--If the Secretary determines at any 
time during the 25-year period referred to in subsection (c)(2) that 
the property conveyed under this section is not being used in 
accordance with that subsection, all right, title, and interest in and 
to the property shall revert to the United States, and the United 
States shall have immediate right of entry thereon.
    (f) Sale of Property by Alliance.--If at any time during the 25-
year period referred to in subsection (c)(2) the Alliance sells all or 
a portion of the property conveyed under this section, the Alliance 
shall pay the United States an amount equal to the lesser of--
        (1) the amount of the sale of the property sold; or
        (2) the fair market value of the property sold at the time of 
    the sale, excluding the value of any improvements to the property 
    sold that have been made by the Alliance.
    (g) Description of Property.--The exact acreage and legal 
description of the property conveyed under this section shall be 
determined by a survey satisfactory to the Secretary. The cost of the 
survey shall be borne by the Alliance.
    (h) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2828. REAFFIRMATION OF LAND CONVEYANCES, FORT SHERIDAN, ILLINOIS.
    As soon as practicable after the date of the enactment of this Act, 
the Secretary of the Army shall complete the land conveyances involving 
Fort Sheridan, Illinois, required or authorized under section 125 of 
the Military Construction Appropriations Act, 1996 (Public Law 104-32; 
109 Stat. 290).

                       PART II--NAVY CONVEYANCES

SEC. 2831. LAND TRANSFER, POTOMAC ANNEX, DISTRICT OF COLUMBIA.
    (a) Transfer Authorized.--The Secretary of the Navy may transfer, 
without consideration other than the reimbursement provided for in 
subsection (d), to the United States Institute of Peace (in this 
section referred to as the ``Institute'') administrative jurisdiction 
over a parcel of real property, including any improvements thereon, 
consisting of approximately 3 acres, at the northwest corner of Twenty-
third Street and Constitution Avenue, Northwest, District of Columbia, 
the site of the Potomac Annex.
    (b) Condition.--The Secretary may not make the transfer specified 
in subsection (a) unless the Institute agrees to provide the Navy a 
number of parking spaces at or in the vicinity of the headquarters to 
be constructed on the parcel transferred equal to the number of parking 
spaces available to the Navy on the parcel as of the date of the 
transfer.
    (c) Requirement Relating to Transfer.--The transfer specified in 
subsection (a) may not occur until the Institute obtains all permits, 
approvals, and site plan reviews required by law with respect to the 
construction on the parcel of a headquarters for operations of the 
Institute.
    (d) Costs.--The Institute shall reimburse the Secretary for the 
costs incurred by the Secretary in carrying out the transfer specified 
in subsection (a).
    (e) Description of Property.--The exact acreage and legal 
description of the property to be transferred under subsection (a) 
shall be determined by a survey that is satisfactory to the Secretary. 
The cost of the survey shall be borne by the Institute.
SEC. 2832. LAND EXCHANGE, ST. HELENA ANNEX, NORFOLK NAVAL SHIPYARD, 
VIRGINIA.
    (a) Conveyance Authorized.--(1) The Secretary of the Navy may 
convey to such private person as the Secretary considers appropriate 
(in this section referred to as the ``transferee'') all right, title, 
and interest of the United States in and to a parcel of real property 
that is located at the Norfolk Naval Shipyard, Virginia, and, as of the 
date of the enactment of this Act, is a portion of the property leased 
to the Norfolk Shipbuilding and Drydock Company pursuant to the 
Department of the Navy lease N00024-84-L-0004, effective October 1, 
1984, as extended.
    (2) Pending completion of the conveyance authorized by paragraph 
(1), the Secretary may lease the real property to the transferee upon 
such terms as the Secretary considers appropriate.
    (b) Consideration.--As consideration for the conveyance under 
subsection (a), including any interim lease authorized by such 
subsection, the transferee shall--
        (1) convey to the United States all right, title, and interest 
    to a parcel or parcels of real property, together with any 
    improvements thereon, located in the area of Portsmouth, Virginia, 
    which are determined to be acceptable to the Secretary; and
        (2) pay to the Secretary an amount equal to the amount, if any, 
    by which the fair market value of the parcel conveyed by the 
    Secretary under subsection (a) exceeds the fair market value of the 
    parcel conveyed to the United States under paragraph (1).
    (c) Use of Rental Amounts.--The Secretary may use the amounts 
received as rent from any lease entered into under the authority of 
subsection (a)(2) to fund environmental studies of the parcels of real 
property to be conveyed under this section.
    (d) In-Kind Consideration.--The Secretary and the transferee may 
agree that, in lieu of all or any part of the consideration required by 
subsection (b)(2), the transferee may provide and the Secretary may 
accept the improvement, maintenance, protection, repair, or restoration 
of real property under the control of the Secretary in the area of 
Hampton Roads, Virginia.
    (e) Determination of Fair Market Value and Property Description.--
The Secretary shall determine the fair market value of the parcels of 
real property to be conveyed under subsections (a) and (b)(1). The 
exact acreage and legal description of the parcels shall be determined 
by a survey satisfactory to the Secretary. The cost of the survey shall 
be borne by the transferee.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyances 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2833. LAND CONVEYANCE, CALVERTON PINE BARRENS, NAVAL WEAPONS 
INDUSTRIAL RESERVE PLANT, CALVERTON, NEW YORK.
    (a) Conveyance Authorized.--The Secretary of the Navy may convey, 
without consideration, to the Department of Environmental Conservation 
of the State of New York (in this section referred to as the 
``Department''), all right, title, and interest of the United States in 
and to the Calverton Pine Barrens located at the Naval Weapons 
Industrial Reserve Plant, Calverton, New York.
    (b) Effect on Other Conveyance Authority.--The conveyance 
authorized by this subsection shall not affect the transfer of 
jurisdiction of a portion of the Calverton Pine Barrens authorized by 
section 2865 of the Military Construction Authorization Act for Fiscal 
Year 1996 (division B of Public Law 104-106; 110 Stat. 576).
    (c) Condition of Conveyance.--The conveyance under subsection (a) 
shall be subject to the condition that the Department agrees--
        (1) to maintain the conveyed property as a nature preserve, as 
    required by section 2854 of the Military Construction Authorization 
    Act for Fiscal Year 1993 (division B of Public Law 102-484; 106 
    Stat. 2626), as amended by section 2823 of the Military 
    Construction Authorization Act for Fiscal Year 1995 (division B of 
    Public Law 103-337; 108 Stat. 3058);
        (2) to designate the conveyed property as the ``Otis G. Pike 
    Preserve''; and
        (3) to continue to allow the level of sporting activities on 
    the conveyed property as permitted at the time of the conveyance.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Department.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.
    (f) Calverton Pine Barrens Defined.--In this section, the term 
``Calverton Pine Barrens'' has the meaning given that term in section 
2854(d)(1) of the Military Construction Authorization Act for Fiscal 
Year 1993 (division B of Public Law 102-484; 106 Stat. 2626).
SEC. 2834. LAND CONVEYANCE, FORMER NAVAL RESERVE FACILITY, LEWES, 
DELAWARE.
    (a) Conveyance Authorized.--The Secretary of the Navy may convey, 
without consideration, to the State of Delaware (in this section 
referred to as the ``State''), all right, title, and interest of the 
United States in and to a parcel of real property, including any 
improvements thereon, consisting of approximately 16.8 acres at the 
site of the former Naval Reserve Facility, Lewes, Delaware.
    (b) Condition of Conveyance.--The conveyance under subsection (a) 
shall be subject to the condition that the State use the real property 
conveyed under that subsection in perpetuity solely for public park or 
recreational purposes.
    (c) Reversion.--If the Secretary of the Navy determines at any time 
that the real property conveyed pursuant to this section is not being 
used for a purpose specified in subsection (b), all right, title, and 
interest in and to such real property, including any improvements 
thereon, shall revert to the United States, and the United States shall 
have the right of immediate entry thereon.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed pursuant to this 
section shall be determined by a survey satisfactory to the Secretary 
of the Navy. The cost of such survey shall be borne by the State.
    (e) Additional Terms and Conditions.--The Secretary of the Navy may 
require such additional terms and conditions in connection with the 
conveyance under this section as the Secretary considers appropriate to 
protect the interests of the United States.
SEC. 2835. MODIFICATION OF LAND CONVEYANCE AUTHORITY, NAVAL RESERVE 
CENTER, SEATTLE, WASHINGTON.
    Paragraph (2) of section 127(d) of the Military Construction 
Appropriations Act, 1995 (Public Law 103-307; 108 Stat. 1666), is 
amended to read as follows:
    ``(2) Before commencing construction of a facility to be the 
replacement facility for the Naval Reserve Center under paragraph (1), 
the Secretary shall comply with the requirements of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect 
to such facility.''.
SEC. 2836. RELEASE OF CONDITION ON RECONVEYANCE OF TRANSFERRED LAND, 
GUAM.
    (a) In General.--Section 818(b)(2) of the Military Construction 
Authorization Act, 1981 (Public Law 96-418; 94 Stat. 1782), relating to 
a condition on disposal by Guam of lands conveyed to Guam by the United 
States, shall have no force or effect and is repealed.
    (b) Execution of Instruments.--The Secretary of the Navy and the 
Administrator of General Services shall execute all instruments 
necessary to implement this section.
SEC. 2837. LEASE TO FACILITATE CONSTRUCTION OF RESERVE CENTER, NAVAL 
AIR STATION, MERIDIAN, MISSISSIPPI.
    (a) Lease of Property for Construction of Reserve Center.--(1) The 
Secretary of the Navy may lease, without reimbursement, to the State of 
Mississippi (in this section referred to as the ``State''), 
approximately five acres of real property located at Naval Air Station, 
Meridian, Mississippi. The State shall use the property to construct a 
reserve center of approximately 22,000 square feet and ancillary 
supporting facilities.
    (2) The term of the lease under this subsection shall expire on the 
same date that the lease authorized by subsection (b) expires.
    (b) Leaseback of Reserve Center.--(1) The Secretary may lease from 
the State the property and improvements constructed pursuant to 
subsection (a) for a five-year period. The term of the lease shall 
begin on the date on which the improvements are available for 
occupancy, as determined by the Secretary.
    (2) Rental payments under the lease under paragraph (1) may not 
exceed $200,000 per year, and the total amount of the rental payments 
for the entire period may not exceed 20 percent of the total cost of 
constructing the reserve center and ancillary supporting facilities.
    (3) Subject to the availability of appropriations for this purpose, 
the Secretary may use funds appropriated pursuant to an authorization 
of appropriations for the operation and maintenance of the Naval 
Reserve to make rental payments required under this subsection.
    (c) Effect of Termination of Leases.--At the end of the lease term 
under subsection (b), the State shall convey, without reimbursement, to 
the United States all right, title, and interest of the State in the 
reserve center and ancillary supporting facilities subject to the 
lease.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the leases 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.

                    PART III--AIR FORCE CONVEYANCES

SEC. 2841. LAND CONVEYANCE, RADAR BOMB SCORING SITE, BELLE FOURCHE, 
SOUTH DAKOTA.
    (a) Conveyance Authorized.--The Secretary of the Air Force may 
convey, without consideration, to the Belle Fourche School District, 
Belle Fourche, South Dakota (in this section referred to as the 
``District''), all right, title, and interest of the United States in 
and to a parcel of real property, together with any improvements 
thereon, consisting of approximately 37 acres located in Belle Fourche, 
South Dakota, which has served as the location of a support complex and 
housing facilities for Detachment 21 of the 554th Range Squadron, an 
Air Force Radar Bomb Scoring Site located in Belle Fourche, South 
Dakota. The conveyance may not include any portion of the radar bomb 
scoring site located in the State of Wyoming.
    (b) Condition of Conveyance.--The conveyance authorized under 
subsection (a) shall be subject to the condition that the District--
        (1) use the property and facilities conveyed under such 
    subsection for education, economic development, and housing 
    purposes; or
        (2) enter into an agreement with an appropriate public or 
    private entity to sell or lease the property and facilities to such 
    entity for such purposes.
    (c) Description of Property.--The exact acreage and legal 
description of the property conveyed under this section shall be 
determined by a survey satisfactory to the Secretary. The cost of the 
survey shall be borne by the District.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2842. CONVEYANCE OF PRIMATE RESEARCH COMPLEX AND AIR FORCE-OWNED 
CHIMPANZEES, HOLLOMAN AIR FORCE BASE, NEW MEXICO.
    (a) Disposal Authorized.--Notwithstanding any provision of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 
et seq.), or any regulations prescribed thereunder, the Secretary of 
the Air Force may dispose of all right, title, and interest of the 
United States in and to the primate research complex at Holloman Air 
Force Base, New Mexico. The disposal may include the chimpanzees owned 
by the Air Force that are housed at or managed from the primate 
research complex. The disposal shall not include the underlying real 
property on which the primate research complex is located. The disposal 
of the primate research complex shall be at no cost to the Air Force.
    (b) Competitive, Negotiated Disposal Process Required.--The 
Secretary shall select the persons or entities to which the primate 
research complex and chimpanzees are to be disposed of under subsection 
(a) using a competitive, negotiated process.
    (c) Standards To Be Used in Solicitation of Bids.--The Secretary 
shall develop standards for the care and use of the primate research 
complex, and of the chimpanzees, to be used in soliciting bids for the 
disposal authorized by subsection (a). The Secretary shall develop such 
standards in consultation with the Secretary of Agriculture and the 
Director of the National Institutes of Health.
    (d) Conditions of Disposal.--The disposal authorized by subsection 
(a) shall be subject to the followings conditions:
        (1) That a recipient of any chimpanzees--
            (A) utilize such chimpanzees only for scientific research 
        or medical research purposes; or
            (B) retire and provide adequate care for such chimpanzees.
        (2) That any recipient of chimpanzees, or the primate research 
    complex, take such chimpanzees, or the primate research complex, 
    subject to any existing leases or other encumbrances at the time of 
    the disposal.
    (e) Description of Complex and Chimpanzees.--The exact legal 
description of the primate research complex and chimpanzees to be 
disposed of under subsection (a) shall be determined by a survey or 
other means satisfactory to the Secretary. The cost of any survey or 
other services performed at the direction of the Secretary under the 
authority in the preceding sentence shall be borne by the recipient of 
the property concerned.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the disposal 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

                       PART IV--OTHER CONVEYANCES

SEC. 2851. LAND CONVEYANCE, TATUM SALT DOME TEST SITE, MISSISSIPPI.
    (a) Conveyance Authorized.--The Secretary of Energy may convey, 
without compensation, to the State of Mississippi (in this section 
referred to as the ``State'') the property known as the Tatum Salt Dome 
Test Site, as generally depicted on the map of the Department of Energy 
numbered 301913.104.02 and dated June 25, 1993.
    (b) Condition on Conveyance.--The conveyance under this section 
shall be subject to the condition that the State use the conveyed 
property as a wildlife refuge and working demonstration forest.
    (c) Designation.--The property to be conveyed is hereby designated 
as the ``Jamie Whitten Forest Management Area''.
    (d) Retained Rights.--The conveyance under this section shall be 
subject to each of the following rights to be retained by the United 
States:
        (1) Retention by the United States of subsurface estates below 
    the property conveyed.
        (2) Retention by the United States of rights of access, by 
    easement or otherwise, for such purposes as the Secretary considers 
    appropriate, including access to monitoring wells for sampling.
        (3) Retention by the United States of the right to install 
    wells additional to those identified in the remediation plan for 
    the property to the extent such additional wells are considered 
    necessary by the Secretary to monitor potential pathways of 
    contaminant migration. Such wells shall be in such locations as 
    specified by the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2852. LAND CONVEYANCE, WILLIAM LANGER JEWEL BEARING PLANT, ROLLA, 
NORTH DAKOTA.
    (a) Conveyance Authorized.--The Administrator of General Services 
may convey, without consideration, to the Job Development Authority of 
the City of Rolla, North Dakota (in this section referred to as the 
``Authority''), all right, title, and interest of the United States in 
and to a parcel of real property, with improvements thereon and all 
associated personal property, consisting of approximately 9.77 acres 
and comprising the William Langer Jewel Bearing Plant in Rolla, North 
Dakota.
    (b) Condition of Conveyance.--The conveyance authorized under 
subsection (a) shall be subject to the condition that the Authority--
        (1) use the real and personal property and improvements 
    conveyed under that subsection for economic development relating to 
    the jewel bearing plant;
        (2) enter into an agreement with an appropriate public or 
    private entity or person to lease such property and improvements to 
    that entity or person for such economic development; or
        (3) enter into an agreement with an appropriate public or 
    private entity or person to sell such property and improvements to 
    that entity or person for such economic development.
    (c) Preference for Domestic Disposal of Jewel Bearings.--(1) In 
offering to enter into agreements pursuant to any provision of law for 
the disposal of jewel bearings from the National Defense Stockpile, the 
President shall give a right of first refusal on all such offers to the 
Authority or to the appropriate public or private entity or person with 
which the Authority enters into an agreement under subsection (b).
    (2) For the purposes of this section, the term ``National Defense 
Stockpile'' means the stockpile provided for in section 4 of the 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98(c)).
    (d) Availability of Funds for Maintenance and Conveyance of 
Plant.--Notwithstanding any other provision of law, funds available 
under the Department of Defense Appropriations Act, 1995 (Public Law 
103-335), in fiscal year 1995 for the maintenance of the William Langer 
Jewel Bearing Plant shall be available for the maintenance of the plant 
pending the conveyance of the plant and for the conveyance of the plant 
under this section.
    (e) Description of Property.--The exact acreage and legal 
description of the property conveyed under this section shall be 
determined by a survey satisfactory to the Administrator. The cost of 
the survey shall be borne by the Administrator.
    (f) Additional Terms and Conditions.--The Administrator may require 
such additional terms and conditions in connection with the conveyance 
under this section as the Administrator determines appropriate to 
protect the interests of the United States.
SEC. 2853. LAND CONVEYANCE, AIR FORCE PLANT NO. 85, COLUMBUS, OHIO.
    (a) Conveyance Authorized.--Notwithstanding any other provision of 
law, the Secretary of the Air Force may instruct the Administrator of 
General Services to convey, without consideration, to the Columbus 
Municipal Airport Authority (in this section referred to as the 
``Authority'') all right, title, and interest of the United States in 
and to a parcel of real property, together with improvements thereon, 
at Air Force Plant No. 85, Columbus, Ohio, consisting of approximately 
240 acres that--
        (1) contains the land and buildings referred to as the 
    ``airport parcel'' in the correspondence from the General Services 
    Administration to the Authority dated April 30, 1996; and
        (2) is located adjacent to the Port Columbus International 
    Airport.
    (b) Effect of Change in Administrative Jurisdiction.--If, on the 
date of the enactment of this Act, the Secretary of the Air Force does 
not have administrative jurisdiction over the property to be conveyed, 
the conveyance shall be made by the Federal official who has 
administrative jurisdiction over the parcel as of that date.
    (c) Requirement for Federal Screening.--The Federal official 
responsible for making the conveyance authorized in subsection (a) may 
not convey the property unless the Federal official determines, in 
consultation with the Administrator of General Services, that no 
department or agency of the Federal Government will accept the transfer 
of the property.
    (d) Condition of Conveyance.--The conveyance authorized under 
subsection (a) shall be subject to the condition that the Authority use 
the conveyed property for public airport purposes.
    (e) Reversion.--If the Federal official making the conveyance under 
subsection (a) determines that any portion of the conveyed property is 
not being utilized in accordance with the condition in subsection (d), 
all right, title, and interest in and to such portion shall revert to 
the United States, and the United States shall have immediate right of 
entry thereon.
    (f) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Federal official 
responsible for making the conveyance. The cost of the survey shall be 
borne by the Authority.
    (g) Additional Terms and Conditions.--The Federal official 
responsible for making the conveyance of property under subsection (a) 
may require such additional terms and conditions in connection with the 
conveyance as such official considers appropriate to protect the 
interests of the United States.
SEC. 2854. MODIFICATION OF BOUNDARIES OF WHITE SANDS NATIONAL MONUMENT 
AND WHITE SANDS MISSILE RANGE.
    (a) Transfer of Lands by Secretary of Army.--The Secretary of the 
Army may transfer to the administrative jurisdiction of the Secretary 
of the Interior the following lands as generally depicted on the map 
entitled ``White Sands National Monument, Boundary Proposal'', numbered 
142/80,061, and dated January 1994:
        (1) Lands consisting of approximately 2,524 acres located 
    within White Sands National Monument, New Mexico.
        (2) Lands consisting of approximately 5,758 acres located 
    within White Sands Missile Range, New Mexico, and abutting White 
    Sands National Monument.
    (b) Transfer of Lands by Secretary of Interior.--The Secretary of 
the Interior may transfer to the administrative jurisdiction of the 
Secretary of the Army lands consisting of approximately 4,277 acres 
located in White Sands National Monument, which lands are generally 
depicted on the map referred to in subsection (a).
    (c) Boundary Modifications.--(1) The Secretary of the Army and the 
Secretary of the Interior shall jointly modify the boundary of White 
Sands National Monument so as to include within the national monument 
the lands transferred under subsection (a) and to exclude from the 
national monument the lands transferred under subsection (b).
    (2) The Secretary of the Army and the Secretary of the Interior 
shall jointly modify the boundary of White Sands Missile Range as to 
include within the missile range the lands transferred under subsection 
(b) and exclude from the missile range the lands transferred under 
subsection (a).
    (d) Administration of Transferred Lands.--(1) The Secretary of the 
Interior shall administer the lands transferred to that Secretary under 
subsection (a) in accordance with the laws applicable to the White 
Sands National Monument.
    (2) The Secretary of the Army shall administer the lands 
transferred to that Secretary under subsection (b) as part of White 
Sands Missile Range.
    (3) The Secretary of the Army shall maintain control of the 
airspace above the lands transferred to that Secretary under subsection 
(b) and administer that airspace in a mannerconsistent with the use of 
such lands as part of White Sands Missile Range.
    (e) Public Availability of Map of Monument.--The Secretary of the 
Interior and the Secretary of the Army shall jointly prepare, and the 
Secretary of the Interior shall keep on file for public inspection in 
the headquarters of White Sands National Monument, a map showing the 
boundary of White Sands National Monument as modified by this section.
    (f) Waiver of Limitation Under Prior Law.--Notwithstanding section 
303(b)(1) of the National Parks and Recreation Act of 1978 (Public Law 
95-625; 92 Stat. 3476), land or an interest in land that was deleted 
from White Sands National Monument by section 301(19) of the Act (92 
Stat. 3475) may, at the election of the Secretary of the Interior, be--
        (1) exchanged for land owned by the State of New Mexico within 
    the boundaries of any unit of the National Park System in the State 
    of New Mexico;
        (2) transferred to the jurisdiction of any other Federal agency 
    without monetary consideration; or
        (3) administered as public land.

                       Subtitle D--Other Matters

SEC. 2861. AUTHORITY TO GRANT EASEMENTS FOR RIGHTS-OF-WAY.

    (a) Easements for Electric Poles and Lines and for Communications 
Lines and Facilities.--Section 2668(a) of title 10, United States Code, 
is amended--
        (1) by striking out ``and'' at the end of paragraph (9);
        (2) by redesignating paragraph (10) as paragraph (13); and
        (3) by inserting after paragraph (9) the following new 
    paragraphs:
        ``(10) poles and lines for the transmission or distribution of 
    electric power;
        ``(11) poles and lines for the transmission or distribution of 
    communications signals (including telephone and telegraph signals);
        ``(12) structures and facilities for the transmission, 
    reception, and relay of such signals; and''.
    (b) Conforming Amendments.--Such section is further amended--
        (1) in paragraph (3), by striking out ``, telephone lines, and 
    telegraph lines,''; and
        (2) in paragraph (13), as redesignated by subsection (a)(2), by 
    striking out ``or by the Act of March 4, 1911 (43 U.S.C. 961)''.
SEC. 2862. AUTHORITY TO ENTER INTO COOPERATIVE AGREEMENTS FOR THE 
MANAGEMENT OF CULTURAL RESOURCES ON MILITARY INSTALLATIONS.
    (a) Agreements Authorized.--Chapter 159 of title 10, United States 
Code, is amended by inserting after section 2683 the following new 
section:
``Sec. 2684. Cooperative agreements for management of cultural 
    resources
    ``(a) Authority.--The Secretary of Defense or the Secretary of a 
military department may enter into a cooperative agreement with a State 
or local government or other entity for the preservation, management, 
maintenance, and improvement of cultural resources on military 
installations and for the conduct of research regarding the cultural 
resources. Activities under the cooperative agreement shall be subject 
to the availability of funds to carry out the cooperative agreement.
    ``(b) Application of Other Laws.--Section 1535 and chapter 63 of 
title 31, United States Code, shall not apply to a cooperative 
agreement entered into under this section.
    ``(c) Cultural Resource Defined.--In this section, the term 
`cultural resource' means any of the following:
        ``(1) A building, structure, site, district, or object eligible 
    for or included in the National Register of Historic Places 
    maintained under section 101(a) of the National Historic 
    Preservation Act (16 U.S.C. 470a(a)).
        ``(2) Cultural items, as that term is defined in section 2(3) 
    of the Native American Graves Protection and Repatriation Act (25 
    U.S.C. 3001(3)).
        ``(3) An archaeological resource, as that term is defined in 
    section 3(1) of the Archaeological Resources Protection Act of 1979 
    (16 U.S.C. 470bb(1)).
        ``(4) An archaeological artifact collection and associated 
    records covered by section 79 of title 36, Code of Federal 
    Regulations.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2683 the following new item:
``2684. Cooperative agreements for management of cultural resources.''.
SEC. 2863. DEMONSTRATION PROJECT FOR INSTALLATION AND OPERATION OF 
ELECTRIC POWER DISTRIBUTION SYSTEM AT YOUNGSTOWN AIR RESERVE STATION, 
OHIO.
    (a) Authority.--The Secretary of the Air Force may carry out a 
demonstration project to assess the feasibility and advisability of 
permitting private entities to install, operate, and maintain electric 
power distribution systems at military installations. The Secretary 
shall carry out the demonstration project through an agreement under 
subsection (b).
    (b) Agreement.--(1) In order to carry out the demonstration 
project, the Secretary shall enter into an agreement with an electric 
utility or other company in the Youngstown, Ohio, area, consistent with 
State law, under which the utility or company installs, operates, and 
maintains (in a manner satisfactory to the Secretary and the utility or 
company) an electric power distribution system at Youngstown Air 
Reserve Station, Ohio.
    (2) The Secretary may not enter into an agreement under this 
subsection until--
        (A) the Secretary submits to Congress a report on the agreement 
    to be entered into, including the costs to be incurred by the 
    United States under the agreement; and
        (B) a period of 30 days has elapsed from the date of the 
    receipt of the report by the committees.
    (c) Licenses and Easements.--In order to facilitate the 
installation, operation, and maintenance of the electric power 
distribution system under the agreement under subsection (b), the 
Secretary may grant the utility or company with which the Secretary 
enters into the agreement such licenses, easements, and rights-of-way, 
consistent with State law, as the Secretary and the utility or company 
jointly determine necessary for such purposes.
    (d) Ownership of System.--The agreement between the Secretary and 
the utility or company under subsection (b) may provide that the 
utility or company shall own the electric power distribution system 
installed under the agreement.
    (e) Rate.--The rate charged by the utility or company for providing 
or distributing electric power at Youngstown Air Reserve Station 
through the electric power distribution system installed under the 
agreement under subsection (b) shall be the rate established by the 
appropriate Federal or State regulatory authority.
    (f) Reports.--Not later than February 1, 1997, and February 1 of 
each year following a year in which the Secretary carries out the 
demonstration project under this section, the Secretary shall submit to 
Congress a report on the project. The report shall include the 
Secretary's current assessment of the project and the recommendations, 
if any, of the Secretary of extending the authority with respect to the 
project to other facilities and installations of the Department of 
Defense.
    (g) Funding.--In order to pay the costs of the United States under 
the agreement under subsection (b), the Secretary may use funds 
authorized to be appropriated by section 2601(3)(B) of the Military 
Construction Authorization Act for Fiscal Year 1996 (division B of 
Public Law 104-106; 110 Stat. 540) for the purpose of rebuilding the 
electric power distribution system at the Youngstown Air Reserve 
Station that were appropriated for that purpose by the Military 
Construction Appropriations Act, 1996 (Public Law 104-32; 109 Stat. 
283), and that remain available for obligation for that purpose as of 
the date of the enactment of this Act.
    (h) Application of Other Law.--Nothing in this section shall 
authorize actions which are inconsistent with Federal or State law.
    (i) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in the agreement under subsection 
(b) as the Secretary considers appropriate to protect the interests of 
the United States.

SEC. 2864. RENOVATION OF THE PENTAGON RESERVATION.

    The Secretary of Defense shall take such actions as are necessary 
to ensure that the total cost of the renovation of the Pentagon 
Reservation does not exceed $1,118,000,000.
SEC. 2865. PLAN FOR REPAIRS AND STABILIZATION OF THE HISTORIC DISTRICT 
AT THE FOREST GLEN ANNEX OF WALTER REED MEDICAL CENTER, MARYLAND.
    Not later than 120 days after the date of the enactment of this 
Act, the Secretary of the Army shall submit to the congressional 
defense committees a comprehensive plan for basic repairs and 
stabilization measures throughout the historic district at the Forest 
Glen Annex of Walter Reed Army Medical Center, Maryland, together with 
funding options for the implementation of the plan.

SEC. 2866. NAMING OF RANGE AT CAMP SHELBY, MISSISSIPPI.

    (a) Name.--The Multi Purpose Range Complex (Heavy) at Camp Shelby, 
Mississippi, shall after the date of the enactment of this Act be known 
and designated as the ``G.V. (Sonny) Montgomery Range''. Any reference 
to such range in any law, regulation, map, document, record, or other 
paper of the United States shall be considered to be a reference to the 
G. V. (Sonny) Montgomery Range.
    (b) Effective Date.--Subsection (a) shall take effect at noon on 
January 3, 1997, or the first day on which G. V. (Sonny) Montgomery 
otherwise ceases to be a Member of the House of Representatives.
SEC. 2867. DESIGNATION OF MICHAEL O'CALLAGHAN MILITARY HOSPITAL.
    (a) Designation.--The Nellis Federal Hospital, a Federal building 
located at 4700 North Las Vegas Boulevard, Las Vegas, Nevada, shall be 
known and designated as the ``Michael O'Callaghan Military Hospital''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the Federal building 
referred to in subsection (a) shall be deemed to be a reference to the 
``Michael O'Callaghan Military Hospital''.
SEC. 2868. NAMING OF BUILDING AT THE UNIFORMED SERVICES UNIVERSITY OF 
THE HEALTH SCIENCES.
    It is the sense of Congress that the Secretary of Defense should 
name Building A at the Uniformed Services University of the Health 
Sciences as the ``David Packard Building''.

                 TITLE XXIX--MILITARY LAND WITHDRAWALS

     Subtitle A--Fort Carson-Pinon Canyon Military Lands Withdrawal

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military 
          Reservation.
Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver 
          Site.
Sec. 2904. Maps and legal descriptions.
Sec. 2905. Management of withdrawn lands.
Sec. 2906. Management of withdrawn and acquired mineral resources.
Sec. 2907. Hunting, fishing, and trapping.
Sec. 2908. Termination of withdrawal and reservation.
Sec. 2909. Determination of presence of contamination and effect of 
          contamination.
Sec. 2910. Delegation.
Sec. 2911. Hold harmless.
Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.
Sec. 2913. Authorization of appropriations.

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

Sec. 2921. Short title and definitions.
Sec. 2922. Withdrawal and reservation of lands for El Centro.
Sec. 2923. Maps and legal descriptions.
Sec. 2924. Management of withdrawn lands.
Sec. 2925. Duration of withdrawal and reservation.
Sec. 2926. Continuation of ongoing decontamination activities.
Sec. 2927. Requirements for extension.
Sec. 2928. Early relinquishment of withdrawal.
Sec. 2929. Delegation of authority.
Sec. 2930. Hunting, fishing, and trapping.
Sec. 2931. Hold harmless.

     Subtitle A--Fort Carson-Pinon Canyon Military Lands Withdrawal

SEC. 2901. SHORT TITLE.

    This subtitle may be cited as the ``Fort Carson-Pinon Canyon 
Military Lands Withdrawal Act''.
SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS AT FORT CARSON MILITARY 
RESERVATION.
    (a) Withdrawal.--Subject to valid existing rights and except as 
otherwise provided in this subtitle, the lands at the Fort Carson 
Military Reservation, Colorado, that are described in subsection (c) 
are hereby withdrawn from all forms of appropriation under the public 
land laws, including the mining laws, the mineral and geothermal 
leasing laws, and the mineral materials disposal laws.
    (b) Reservation.--The lands withdrawn under subsection (a) are 
reserved for use by the Secretary of the Army--
        (1) for military maneuvering, training and weapons firing; and
        (2) for other defense related purposes consistent with the uses 
    specified in paragraph (1).
    (c) Land Description.--The lands referred to in subsection (a) 
comprise 3,133.02 acres of public land and 11,415.16 acres of 
federally-owned minerals in El Paso, Pueblo, and Fremont Counties, 
Colorado, as generally depicted on the map entitled ``Fort Carson 
Proposed Withdrawal--Fort Carson Base'', dated February 6, 1992, and 
published in accordance with section 2904.
SEC. 2903. WITHDRAWAL AND RESERVATION OF LANDS AT PINON CANYON MANEUVER 
SITE.
    (a) Withdrawal.--Subject to valid existing rights and except as 
otherwise provided in this subtitle, the lands at the Pinon Canyon 
Maneuver Site, Colorado, that are described in subsection (c) are 
hereby withdrawn from all forms of appropriation under the public land 
laws, including the mining laws, the mineral and geothermal leasing 
laws, and the mineral materials disposal laws.
    (b) Reservation.--The lands withdrawn under subsection (a) are 
reserved for use by the Secretary of the Army--
        (1) for military maneuvering and training; and
        (2) for other defense related purposes consistent with the uses 
    specified in paragraph (1).
    (c) Land Description.--The lands referred to in subsection (a) 
comprise 2,517.12 acres of public lands and 130,139 acres of federally-
owned minerals in Las Animas County, Colorado, as generally depicted on 
the map entitled ``Fort Carson Proposed Withdrawal--Fort Carson 
Maneuver Area--Pinon Canyon site'', dated February 6, 1992, and 
published in accordance with section 2904.

SEC. 2904. MAPS AND LEGAL DESCRIPTIONS.

    (a) Preparation of Maps and Legal Description.--As soon as 
practicable after the date of the enactment of this subtitle, the 
Secretary of the Interior shall prepare maps depicting the lands 
withdrawn and reserved by this subtitle and publish in the Federal 
Register a notice containing the legal description of such lands.
    (b) Legal Effect.--Such maps and legal descriptions shall have the 
same force and effect as if they were included in this subtitle, except 
that the Secretary of the Interior may correct clerical and 
typographical errors in such maps and legal descriptions.
    (c) Availability of Maps and Legal Description.--Copies of such 
maps and legal descriptions shall be available for public inspection in 
the offices of the Colorado State Director and the Canon City District 
Manager of the Bureau of Land Management and in the offices of the 
Commander of Fort Carson, Colorado.
    (d) Costs.--The Secretary of the Army shall reimburse the Secretary 
of the Interior for the costs of implementing this section.

SEC. 2905. MANAGEMENT OF WITHDRAWN LANDS.

    (a) Management Guidelines.--
        (1) Management by secretary of the army.--Except as provided in 
    section 2906, during the period of withdrawal, the Secretary of the 
    Army shall manage for military pur- poses the lands covered by this 
    subtitle and may authorize use of the lands by the other military 
    departments and agencies of the Department of Defense, and the 
    National Guard, as appropriate.
        (2) Access restrictions.--When military operations, public 
    safety, or national security, as determined by the Secretary of the 
    Army, require the closure of roads and trails on the lands 
    withdrawn by this subtitle commonly in public use, the Secretary of 
    the Army is authorized to take such action, except that such 
    closures shall be limited to the minimum areas and periods required 
    for the purposes specified in this subsection. Appropriate warning 
    notices shall be kept posted during closures.
        (3) Suppression of fires.--The Secretary of the Army shall take 
    necessary precautions to prevent and suppress brush and range fires 
    occurring within and outside the lands as a result of military 
    activities and may seek assistance from the Bureau of Land 
    Management in suppressing such fires. The memorandum of 
    understanding required by this section shall provide for Bureau of 
    Land Management assistance in the suppression of such fires, and 
    for a transfer of funds from the Department of the Army to the 
    Bureau of Land Management as compensation for such assistance.
    (b) Management Plan.--
        (1) Development required.--The Secretary of the Army, with the 
    concurrence of the Secretary of the Interior, shall develop a plan 
    for the management of acquired lands and lands withdrawn under 
    sections 2902 and 2903 for the period of withdrawal. The plan 
    shall--
            (A) be consistent with applicable law;
            (B) include such provisions as may be necessary for proper 
        resource management and protection of the natural, cultural, 
        and other resources and values of such lands; and
            (C) identify those withdrawn and acquired lands, if any, 
        which are to be open to mining or mineral and geothermal 
        leasing, including mineral materials disposal.
        (2) Time for development.--The management plan required by this 
    subsection shall be developed not later than 5 years after the date 
    of the enactment of this subtitle.
    (c) Implementation of Management Plan.--
        (1) Memorandum of understanding required.--The Secretary of the 
    Army and the Secretary of the Interior shall enter into a 
    memorandum of understanding toimplement the management plan 
developed under subsection (b).
        (2) Duration.--The duration of any such memorandum of 
    understanding shall be the same as the period of withdrawal 
    specified in section 2908(a).
        (3) Amendment.--The memorandum of understanding may be amended 
    by agreement of both Secretaries.
    (d) Use of Certain Resources.--The Secretary of the Army is 
authorized to utilize sand, gravel, or similar mineral or mineral 
material resources from the lands withdrawn by this subtitle when the 
use of such resources is required for construction needs of the Fort 
Carson Reservation or Pinon Canyon Maneuver Site.
SEC. 2906. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL RESOURCES.
    Except as provided in section 2905(d), the Secretary of the 
Interior shall manage all withdrawn and acquired mineral resources 
within the boundaries of the Fort Carson Military Reservation and Pinon 
Canyon Maneuver Site in the same manner as provided in section 12 of 
the Military Lands Withdrawal Act of 1986 (Public Law 99-606; 100 Stat. 
3466) for mining and mineral leasing on certain lands withdrawn by that 
Act from all forms of appropriation under the public land laws.

SEC. 2907. HUNTING, FISHING, AND TRAPPING.

    All hunting, fishing, and trapping on the lands withdrawn and 
reserved by this subtitle shall be conducted in accordance with section 
2671 of title 10, United States Code.

SEC. 2908. TERMINATION OF WITHDRAWAL AND RESERVATION.

    (a) Termination Date.--The withdrawal and reservation made by this 
subtitle shall terminate 15 years after the date of the enactment of 
this subtitle.
    (b) Determination of Continuing Military Need.--
        (1) Determination required.--At least three years before the 
    termination under subsection (a) of the withdrawal and reservation 
    established by this subtitle, the Secretary of the Army shall 
    advise the Secretary of the Interior as to whether or not the 
    Department of the Army will have a continuing military need for any 
    of the lands after the termination date.
        (2) Method of making determination.--If the Secretary of the 
    Army concludes under paragraph (1) that there will be a continuing 
    military need for any of the lands after the termination date 
    established by subsection (a), the Secretary of the Army, in 
    accordance with applicable law, shall--
            (A) evaluate the environmental effects of renewal of such 
        withdrawal and reservation;
            (B) hold at least one public hearing in Colorado concerning 
        such evaluation; and
            (C) file, after completing the requirements of 
        subparagraphs (A) and (B), an application for extension of the 
        withdrawal and reservation of such lands in accordance with the 
        regulations and procedures of the Department of the Interior 
        applicable to the extension of withdrawals for military uses.
        (3) Notification.--The Secretary of the Interior shall notify 
    the Congress concerning a filing under paragraph (3)(C).
    (c) Early Relinquishment of Withdrawal.--If the Secretary of the 
Army concludes under subsection (b) that before the termination date 
established by subsection (a) there will be no military need for all or 
any part of the lands withdrawn and reserved by this subtitle, or if, 
during the period of withdrawal, the Secretary of the Army otherwise 
decides to relinquish any or all of the lands withdrawn and reserved 
under this subtitle, the Secretary of the Army shall file with the 
Secretary of the Interior a notice of intention to relinquish such 
lands.
    (d) Acceptance of Lands Proposed for Relinquishment.--
Notwithstanding any other provision of law, the Secretary of the 
Interior, upon deciding that it is in the public interest to accept 
jurisdiction over the lands proposed for relinquishment, may revoke the 
withdrawal and reservation established by this subtitle as it applies 
to the lands proposed for relinquishment. Should the decision be made 
to revoke the withdrawal and reservation, the Secretary of the Interior 
shall publish in the Federal Register an appropriate order which 
shall--
        (1) terminate the withdrawal and reservation;
        (2) constitute official acceptance of full jurisdiction over 
    the lands by the Secretary of the Interior; and
        (3) state the date upon which the lands will be opened to the 
    operation of the public land laws, including the mining laws if 
    appropriate.
SEC. 2909. DETERMINATION OF PRESENCE OF CONTAMINATION AND EFFECT OF 
CONTAMINATION.
    (a) Determination of Presence of Contamination.--
        (1) Before relinquishment notice.--Before filing a 
    relinquishment notice under section 2908(c), the Secretary of the 
    Army shall prepare a written determination as to whether and to 
    what extent the lands to be relinquished are contaminated with 
    explosive, toxic, or other hazardous materials. A copy of the 
    determination made by the Secretary of the Army shall be supplied 
    with the relinquishment notice. Copies of both the relinquishment 
    notice and the determination under this subsection shall be 
    published in the Federal Register by the Secretary of the Interior.
        (2) Upon termination of withdrawal.--At the expiration of the 
    withdrawal period made by this Act, the Secretary of the Interior 
    shall determine whether and to what extent the lands withdrawn by 
    this subtitle are contaminated to an extent which prevents opening 
    such contaminated lands to operation of the public land laws.
    (b) Program of Decontamination.--
        (1) In general.--Throughout the duration of the withdrawal and 
    reservation made by this subtitle, the Secretary of the Army, to 
    the extent funds are made available, shall maintain a program of 
    decontamination of the landswithdrawn by this subtitle at least at 
the level of effort carried out during fiscal year 1992.
        (2) Decontamination of lands to be relinquished.--In the case 
    of lands subject to a relinquishment notice under section 2908(c) 
    that are contaminated, the Secretary of the Army shall 
    decontaminate the land to the extent that funds are appropriated 
    for such purpose if the Secretary of the Interior, in consultation 
    with the Secretary of the Army, determines that--
            (A) decontamination of the lands is practicable and 
        economically feasible, taking into consideration the potential 
        future use and value of the land; and
            (B) upon decontamination, the land could be opened to the 
        operation of some or all of the public land laws, including the 
        mining laws.
    (c) Authority of Secretary of the Interior To Refuse Contaminated 
Lands.--The Secretary of the Interior shall not be required to accept 
lands proposed for relinquishment if the Secretary of the Army and the 
Secretary of the Interior conclude that--
        (1) decontamination of any or all of the lands proposed for 
    relinquishment is not practicable or economically feasible;
        (2) the lands cannot be decontaminated sufficiently to allow 
    them to be opened to the operation of the public land laws; or
        (3) insufficient funds are appropriated for the purpose of 
    decontaminating the lands.
    (d) Effect of Continued Contamination.--If the Secretary of the 
Interior declines under subsection (c) to accept jurisdiction of lands 
proposed for relinquishment or if the Secretary of the Interior 
determines under subsection (a)(2) that some of the lands withdrawn by 
this subtitle are contaminated to an extent that prevents opening the 
contaminated lands to operation of the public land laws--
        (1) the Secretary of the Army shall take appropriate steps to 
    warn the public of the contaminated state of such lands and any 
    risks associated with entry onto such lands;
        (2) after the expiration of the withdrawal, the Secretary of 
    the Army shall undertake no activities on such lands except in 
    connection with decontamination of such lands; and
        (3) the Secretary of the Army shall report to the Secretary of 
    the Interior and to the Congress concerning the status of such 
    lands and all actions taken under paragraphs (1) and (2).
    (e) Effect of Subsequent Decontamination.--If the lands described 
in subsection (d) are subsequently decontaminated, upon certification 
by the Secretary of the Army that the lands are safe for all 
nonmilitary uses, the Secretary of the Interior shall reconsider 
accepting jurisdiction over the lands.
    (f) Effect on Other Laws.--Nothing in this subtitle shall affect, 
or be construed to affect, the obligations of the Secretary of the 
Army, if any, to decontaminate lands withdrawn by this subtitle 
pursuant to applicable law, including the Comprehensive Environmental 
Response Compensation and Liability Act of 1980 (42 U.S.C. 9601 et 
seq.) and the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).

SEC. 2910. DELEGATION.

    The functions of the Secretary of the Army under this subtitle may 
be delegated. The functions of the Secretary of the Interior under this 
subtitle may be delegated, except that the order referred to in section 
2908(d) may be approved and signed only by the Secretary of the 
Interior, the Deputy Secretary of the Interior, or an Assistant 
Secretary of the Department of the Interior.

SEC. 2911. HOLD HARMLESS.

    Any party conducting any mining, mineral, or geothermal leasing 
activity on lands comprising the Fort Carson Reservation or Pinon 
Canyon Maneuver Site shall indemnify the United States against any 
costs, fees, damages, or other liabilities (including costs of 
litigation) incurred by the United States and arising from or relating 
to such mining activities, including costs of mineral materials 
disposal, whether arising under the Comprehensive Environmental 
Response Compensation and Liability Act of 1980, the Solid Waste 
Disposal Act, or otherwise.
SEC. 2912. AMENDMENT TO MILITARY LANDS WITHDRAWAL ACT OF 1986.
    (a) Use of Certain Resources.--Section 3(f) of the Military Lands 
Withdrawal Act of 1986 (Public Law 99-606; 100 Stat. 3461) is amended 
by adding at the end the following new paragraph:
    ``(2) Subject to valid existing rights, the Secretary of the 
military department concerned may utilize sand, gravel, or similar 
mineral or material resources when the use of such resources is 
required for construction needs on the respective lands withdrawn by 
this Act.''.
    (b) Technical Correction.--Section 9(b) of the Military Lands 
Withdrawal Act of 1986 (Public Law 99-606; 100 Stat. 3466) is amended 
by striking ``section 7(f)'' and inserting in lieu thereof ``section 
8(f)''.

SEC. 2913. AUTHORIZATION OF APPROPRIATIONS.

    There are hereby authorized to be appropriated such sums as may be 
necessary to carry out the purposes of this subtitle.

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

SEC. 2921. SHORT TITLE AND DEFINITIONS.

    (a) Short Title.--This subtitle may be cited as the ``El Centro 
Naval Air Facility Ranges Withdrawal Act''.
    (b) Definitions.--In this subtitle:
        (1) The term ``El Centro'' means the Naval Air Facility, El 
    Centro, California.
        (2) The term ``cooperative agreement'' means the cooperative 
    agreement entered into between the Bureau of Land Management, the 
    Bureau of Reclamation, and the Department of the Navy, dated June 
    29, 1987, with regard to the defense-related uses of Federal lands 
    to further the mission of El Centro.
        (3) The term ``relinquishment notice'' means a notice of 
    intention by the Secretary of the Navy under section 2928(a) to 
    relinquish, before the termination date specified in section 2925, 
    the withdrawal and reservation of certain lands withdrawn under 
    this subtitle.
SEC. 2922. WITHDRAWAL AND RESERVATION OF LANDS FOR EL CENTRO.
    (a) Withdrawals.--Subject to valid existing rights, and except as 
otherwise provided in this subtitle, the Federal lands utilized in the 
mission of the Naval Air Facility, El Centro, California, that are 
described in subsection (c) are hereby withdrawn from all forms of 
appropriation under the public land laws, including the mining laws, 
but not the mineral leasing or geothermal leasing laws or the mineral 
materials sales laws.
    (b) Reservation.--The lands withdrawn under subsection (a) are 
reserved for the use by the Secretary of the Navy--
        (1) for defense-related purposes in accordance with the 
    cooperative agreement; and
        (2) subject to notice to the Secretary of the Interior under 
    section 2924(e), for other defense-related purposes determined by 
    the Secretary of the Navy.
    (c) Description of Withdrawn Lands.--The lands withdrawn and 
reserved under subsection (a) are--
        (1) the Federal lands comprising approximately 46,600 acres in 
    Imperial County, California, as generally depicted in part on a map 
    entitled ``Exhibit A, Naval Air Facility, El Centro, California, 
    Land Acquisition Map, Range 2510 (West Mesa)'' and dated March 1993 
    and in part on a map entitled ``Exhibit B, Naval Air Facility, El 
    Centro, California, Land Acquisition Map Range 2512 (East Mesa)'' 
    and dated March 1993; and
        (2) and all other areas within the boundaries of such lands as 
    depicted on such maps that may become subject to the operation of 
    the public land laws.

SEC. 2923. MAPS AND LEGAL DESCRIPTIONS.

    (a) Publication and Filing Requirements.--As soon as practicable 
after the date of the enactment of this subtitle, the Secretary of the 
Interior shall--
        (1) publish in the Federal Register a notice containing the 
    legal description of the lands withdrawn and reserved under this 
    subtitle; and
        (2) file maps and the legal description of the lands withdrawn 
    and reserved under this subtitle with the Committee on Energy and 
    Natural Resources of the Senate and with the Committee on Resources 
    of the House of Representatives.
    (b) Legal Effect.--The maps and legal description prepared under 
subsection (a) shall have the same force and effect as if they were 
included in this subtitle, except that the Secretary of the Interior 
may correct clerical and typographical errors in the maps and legal 
description.
    (c) Availability for Public Inspection.--Copies of the maps and 
legal description prepared under subsection (a) shall be available for 
public inspection in--
        (1) the Office of the State Director, California State Office 
    of the Bureau of Land Management, Sacramento, California;
        (2) the Office of the District Manager, California Desert 
    District of the Bureau of Land Management, Riverside, California; 
    and
        (3) the Office of the Commanding Officer, Marine Corps Air 
    Station, Yuma, Arizona.
    (d) Reimbursement.--The Secretary of Navy shall reimburse the 
Secretary of the Interior for the cost of implementing this section.

SEC. 2924. MANAGEMENT OF WITHDRAWN LANDS.

    (a) Management Consistent With Cooperative Agreement.--The lands 
and resources shall be managed in accordance with the cooperative 
agreement, revised as necessary to conform to the provisions of this 
subtitle. The parties to the cooperative agreement shall review the 
cooperative agreement for conformance with this subtitle and amend the 
cooperative agreement, if appropriate, within 120 days after the date 
of the enactment of this subtitle. The term of the cooperative 
agreement shall be amended so that its duration is at least equal to 
the duration of the withdrawal made by section 2925. The cooperative 
agreement may be reviewed and amended by the managing agencies as 
necessary.
    (b) Management by Secretary of the Interior.--
        (1) General management authority.--During the period of 
    withdrawal, the Secretary of the Interior shall manage the lands 
    withdrawn and reserved under this subtitle pursuant to the Federal 
    Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) and 
    other applicable laws, including this subtitle.
        (2) Specific authorities.--To the extent consistent with 
    applicable laws, Executive orders, and the cooperative agreement, 
    the lands withdrawn and reserved under this subtitle may be managed 
    in a manner permitting--
            (A) protection of wildlife and wildlife habitat;
            (B) control of predatory and other animals;
            (C) the prevention and appropriate suppression of brush and 
        range fires resulting from nonmilitary activities; and
            (D) geothermal leasing and development and related power 
        production, mineral leasing and development, and mineral 
        material sales.
        (3) Effect of withdrawal.--The Secretary of the Interior shall 
    manage the lands withdrawn and reserved under this subtitle, in 
    coordination with the Secretary of the Navy, such that all 
    nonmilitary use of such lands, including the uses described in 
    paragraph (2), shall be subject to such conditions and restrictions 
    as may be necessary to permit the military use of such lands for 
    the purposes specified in the cooperative agreement or authorized 
    pursuant to this subtitle.
    (c) Certain Activities Subject to Concurrence of Navy.--The 
Secretary of the Interior may issue a lease, easement, right-of-way, or 
other authorization with respect to the nonmilitary use of the 
withdrawn lands only with the concurrence of the Secretary of the Navy 
and under the terms of the cooperative agreement.
    (d) Access Restrictions.--If the Secretary of the Navy determines 
that military operations, public safety, or national security require 
the closure to public use of any road, trail, or other portion of the 
lands withdrawn under this subtitle, the Secretary may take such action 
as the Secretary determines necessary or desirable to effect and 
maintain such closure. Any such closure shall be limited to the minimum 
areas and periods which the Secretary of the Navy determines are 
required to carry out this subsection. Before and during any closure 
under this subsection, the Secretary of the Navy shall keep appropriate 
warning notices posted and take appropriate steps to notify the public 
concerning such closures.
    (e) Additional Military Uses.--Lands withdrawn under this subtitle 
may be used for defense-related uses other than those specified in the 
cooperative agreement. The Secretary of the Navy shall promptly notify 
the Secretary of the Interior in the event that the lands withdrawn 
under this subtitle will be used for additional defense-related 
purposes. Such notification shall indicate the additional use or uses 
involved, the proposed duration of such uses, and the extent to which 
such additional military uses of the withdrawn lands will require that 
additional or more stringent conditions or restrictions be imposed on 
otherwise-permitted nonmilitary uses of all or any portion of the 
withdrawn lands.

SEC. 2925. DURATION OF WITHDRAWAL AND RESERVATION.

    The withdrawal and reservation made under this subtitle shall 
terminate 25 years after the date of the enactment of this subtitle.
SEC. 2926. CONTINUATION OF ONGOING DECONTAMINATION ACTIVITIES.
    Throughout the duration of the withdrawal and reservation made 
under this subtitle, and subject to the availability of funds, the 
Secretary of the Navy shall maintain a program of decontamination of 
the lands withdrawn under this subtitle at least at the level of 
decontamination activities performed on such lands in fiscal year 1995. 
Such activities shall be subject to applicable laws, such as the 
amendments made by the Federal Facility Compliance Act of 1992 (Public 
Law 102-386; 106 Stat. 1505) and the Defense Environmental Restoration 
Program established under section 2701 of title 10, United States Code.

SEC. 2927. REQUIREMENTS FOR EXTENSION.

    (a) Notice of Continued Military Need.--Not later than five years 
before the termination date specified in section 2925, the Secretary of 
the Navy shall advise the Secretary of the Interior as to whether or 
not the Navy will have a continuing military need for any or all of the 
lands withdrawn and reserved under this subtitle after the termination 
date.
    (b) Application for Extension.--If the Secretary of the Navy 
determines that there will be a continuing military need for any or all 
of the withdrawn lands after the termination date specified in section 
2925, the Secretary of the Navy shall file an application for extension 
of the withdrawal and reservation of the lands in accordance with the 
then existing regulations and procedures of the Department of the 
Interior applicable to extension of withdrawal of lands for military 
purposes and that are consistent with this subtitle. Such application 
shall be filed with the Department of the Interior not later than four 
years before the termination date.
    (c) Extension Process.--The withdrawal and reservation established 
by this subtitle may not be extended except by an Act or Joint 
Resolution of Congress.

SEC. 2928. EARLY RELINQUISHMENT OF WITHDRAWAL.

    (a) Filing of Relinquishment Notice.--If, during the period of 
withdrawal and reservation specified in section 2925, the Secretary of 
the Navy decides to relinquish all or any portion of the lands 
withdrawn and reserved under this subtitle, the Secretary of the Navy 
shall file a notice of intention to relinquish with the Secretary of 
the Interior.
    (b) Determination of Presence of Contamination.--Before 
transmitting a relinquishment notice under subsection (a), the 
Secretary of the Navy, in consultation with the Secretary of the 
Interior, shall prepare a written determination concerning whether and 
to what extent the lands to be relinquished are contaminated with 
explosive, toxic, or other hazardous wastes and substances. A copy of 
such determination shall be transmitted with the relinquishment notice.
    (c) Decontamination and Remediation.--In the case of contaminated 
lands which are the subject of a relinquishment notice, the Secretary 
of the Navy shall decontaminate or remediate the land to the extent 
that funds are appropriated for such purpose if the Secretary of the 
Interior, in consultation with the Secretary of the Navy, determines 
that--
        (1) decontamination or remediation of the lands is practicable 
    and economically feasible, taking into consideration the potential 
    future use and value of the land; and
        (2) upon decontamination or remediation, the land could be 
    opened to the operation of some or all of the public land laws, 
    including the mining laws.
    (d) Decontamination and Remediation Activities Subject to Other 
Laws.--The activities of the Secretary of the Navy under subsection (c) 
are subject to applicable lawsand regulations, including the Defense 
Environmental Restoration Program established under section 2701 of 
title 10, United States Code, the Comprehensive Environmental Response 
Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.), and 
the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).
    (e) Authority of Secretary of the Interior To Refuse Contaminated 
Lands.--The Secretary of the Interior shall not be required to accept 
lands specified in a relinquishment notice if the Secretary of the 
Interior, after consultation with the Secretary of the Navy, concludes 
that--
        (1) decontamination or remediation of any land subject to the 
    relinquishment notice is not practicable or economically feasible;
        (2) the land cannot be decontaminated or remediated 
    sufficiently to be opened to operation of some or all of the public 
    land laws; or
        (3) a sufficient amount of funds are not appropriated for the 
    decontamination of the land.
    (f) Status of Contaminated Lands.--If, because of the condition of 
the lands, the Secretary of the Interior declines to accept 
jurisdiction of lands proposed for relinquishment or, if at the 
expiration of the withdrawal made under this subtitle, the Secretary of 
the Interior determines that some of the lands withdrawn under this 
subtitle are contaminated to an extent which prevents opening such 
contaminated lands to operation of the public land laws--
        (1) the Secretary of the Navy shall take appropriate steps to 
    warn the public of the contaminated state of such lands and any 
    risks associated with entry onto such lands;
        (2) after the expiration of the withdrawal, the Secretary of 
    the Navy shall retain jurisdiction over the withdrawn lands, but 
    shall undertake no activities on such lands except in connection 
    with the decontamination or remediation of such lands; and
        (3) the Secretary of the Navy shall report to the Secretary of 
    the Interior and to the Congress concerning the status of such 
    lands and all actions taken under paragraphs (1) and (2).
    (g) Subsequent Decontamination or Remediation.--If lands covered by 
subsection (f) are subsequently decontaminated or remediated and the 
Secretary of the Navy certifies that the lands are safe for nonmilitary 
uses, the Secretary of the Interior shall reconsider accepting 
jurisdiction over the lands.
    (h) Revocation Authority.--Notwithstanding any other provision of 
law, upon deciding that it is in the public interest to accept 
jurisdiction over lands specified in a relinquishment notice, the 
Secretary of the Interior may revoke the withdrawal and reservation 
made under this subtitle as it applies to such lands. If the decision 
be made to accept the relinquishment and to revoke the withdrawal and 
reservation, the Secretary of the Interior shall publish in the Federal 
Register an appropriate order which shall--
        (1) terminate the withdrawal and reservation;
        (2) constitute official acceptance of full jurisdiction over 
    the lands by the Secretary of the Interior; and
        (3) state the date upon which the lands will be opened to the 
    operation of the public land laws, including the mining laws, if 
    appropriate.

SEC. 2929. DELEGATION OF AUTHORITY.

    (a) Department of the Navy.--The functions of the Secretary of the 
Navy under this subtitle may be delegated.
    (b) Department of the Interior.--The functions of the Secretary of 
the Interior under this subtitle may be delegated, except that an order 
described in section 2928(h) may be approved and signed only by the 
Secretary of the Interior, the Deputy Secretary of the Interior, or an 
Assistant Secretary of the Department of the Interior.

SEC. 2930. HUNTING, FISHING, AND TRAPPING.

    All hunting, fishing, and trapping on the lands withdrawn under 
this subtitle shall be conducted in accordance with section 2671 of 
title 10, United States Code.

SEC. 2931. HOLD HARMLESS.

    Any party conducting any mining, mineral, or geothermal leasing 
activity on lands withdrawn and reserved under this subtitle shall 
indemnify the United States against any costs, fees, damages, or other 
liabilities (including costs of litigation) incurred by the United 
States and arising from or relating to such mining activities, 
including costs of mineral materials disposal, whether arising under 
the Comprehensive Environmental Response Compensation and Liability Act 
of 1980, the Solid Waste Disposal Act, or otherwise.

               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. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Defense fixed asset acquisition/privatization.
Sec. 3104. Other defense activities.
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.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Stockpile stewardship program.
Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.
Sec. 3133. Tritium production.
Sec. 3134. Modernization and consolidation of tritium recycling 
facilities.
Sec. 3135. Production of high explosives.
Sec. 3136. Limitation on use of funds for certain research and 
development purposes.
Sec. 3137. Prohibition on funding nuclear weapons activities with 
People's Republic of China.
Sec. 3138. International cooperative stockpile stewardship programs.
Sec. 3139. Temporary authority relating to transfers of defense 
environmental management funds.
Sec. 3140. Management structure for nuclear weapons production 
facilities and nuclear weapons laboratories.
Sec. 3141. Accelerated schedule for isolating high-level nuclear waste 
at the defense waste processing facility, Savannah River Site.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
spent nuclear fuel rods.
Sec. 3143. Projects to accelerate closure activities at defense nuclear 
facilities.
Sec. 3144. Payment of costs of operation and maintenance of 
infrastructure at Nevada Test Site.

                        Subtitle D--Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing plans.
Sec. 3152. Amendments relating to baseline environmental management 
reports.
Sec. 3153. Requirement to develop future use plans for environmental 
management program.
Sec. 3154. Report on Department of Energy liability at Department 
superfund sites.
Sec. 3155. Requirement for annual five-year budget for the national 
security programs of the Department of Energy.
Sec. 3156. Requirements for Department of Energy weapons activities 
budgets for fiscal years after fiscal year 1997.
Sec. 3157. Repeal of requirement relating to accounting procedures for 
Department of Energy funds.
Sec. 3158. Update of report on nuclear test readiness postures.
Sec. 3159. Reports on critical difficulties at nuclear weapons 
laboratories and nuclear weapons production plants.
Sec. 3160. Extension of applicability of notice-and-wait requirement 
regarding proposed cooperation agreements.
Sec. 3161. Sense of Senate relating to redesignation of defense 
environmental restoration and waste management program.
Sec. 3162. Commission on maintaining United States nuclear weapons 
expertise.
Sec. 3163. Sense of Congress regarding reliability and safety of 
remaining nuclear forces.
Sec. 3164. Study on worker protection at the Mound facility.
Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement 
Project, Livermore, California.
Sec. 3166. Fellowship program for development of skills critical to 
Department of Energy nuclear weapons complex.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

Sec. 3171. Purpose.
Sec. 3172. Applicability.
Sec. 3173. Site manager.
Sec. 3174. Department of Energy orders.
Sec. 3175. Deployment of technology for remediation of defense nuclear 
waste.
Sec. 3176. Performance-based contracting.
Sec. 3177. Designation of covered facilities as environmental cleanup 
demonstration areas.
Sec. 3178. Definitions.
Sec. 3179. Termination.
Sec. 3180. Report.

 Subtitle F--Waste Isolation Pilot Plant Land Withdrawal Act Amendments

Sec. 3181. Short title.
Sec. 3182. Definitions.
Sec. 3183. Management plan.
Sec. 3184. Repeal of test phase and retrieval plans.
Sec. 3185. Test phase activities.
Sec. 3186. Disposal operations.
Sec. 3187. Environmental Protection Agency disposal regulations.
Sec. 3188. Compliance with environmental laws and regulations.
Sec. 3189. Sense of Congress on commencement of emplacement of 
transuranic waste.
Sec. 3190. Decommissioning of WIPP.
Sec. 3191. Authorizations for economic assistance and miscellaneous 
payments.

         Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

    (a) Stockpile Stewardship.--Subject to subsection (d), funds are 
hereby authorized to be appropriated to the Department of Energy for 
fiscal year 1997 for stockpile stewardship in carrying out weapons 
activities necessary for national security programs in the amount of 
$1,661,767,000, to be allocated as follows:
        (1) For core stockpile stewardship, $1,235,907,000, to be 
    allocated as follows:
            (A) For operation and maintenance, $1,147,570,000.
            (B) For plant projects (including maintenance, restoration, 
        planning, construction, acquisition, modification of 
        facilities, and the continuation of projects authorized in 
        prior years, and land acquisition related thereto), 
        $88,337,000, to be allocated as follows:
                Project 96-D-102, stockpile stewardship facilities 
            revitalization, Phase VI, various locations, $19,250,000.
                Project 96-D-103, ATLAS, Los Alamos National 
            Laboratory, Los Alamos, New Mexico, $15,100,000.
                Project 96-D-104, processing and environmental 
            technology laboratory (PETL), Sandia National Laboratories, 
            Albuquerque, New Mexico, $14,100,000.
                Project 96-D-105, contained firing facility addition, 
            Lawrence Livermore National Laboratory, Livermore, 
            California, $17,100,000.
                Project 95-D-102, Chemical and Metallurgy Research 
            Building upgrades project, Los AlamosNational Laboratory, 
Los Alamos, New Mexico, $15,000,000.
                Project 94-D-102, nuclear weapons research, 
            development, and testing facilities revitalization, Phase 
            V, various locations, $7,787,000.
        (2) For inertial fusion, $366,460,000, to be allocated as 
    follows:
            (A) For operation and maintenance, $234,560,000.
            (B) For the following plant project (including maintenance, 
        restoration, planning, construction, acquisition, and 
        modification of facilities, and land acquisition related 
        thereto), $131,900,000 to be allocated as follows:
                Project 96-D-111, national ignition facility, location 
            to be determined, $131,900,000.
        (3) For technology transfer and education, $59,400,000.
    (b) Stockpile Management.--Subject to subsection (d), funds are 
hereby authorized to be appropriated to the Department of Energy for 
fiscal year 1997 for stockpile management in carrying out weapons 
activities necessary for national security programs in the amount of 
$1,962,831,000, to be allocated as follows:
        (1) For operation and maintenance, $1,868,470,000.
        (2) For plant projects (including maintenance, restoration, 
    planning, construction, acquisition, modification of facilities, 
    and the continuation of projects authorized in prior years, and 
    land acquisition related thereto), $94,361,000, to be allocated as 
    follows:
            Project 97-D-121, consolidated pit packaging system, Pantex 
        Plant, Amarillo, Texas, $870,000.
            Project 97-D-122, nuclear materials storage facility 
        renovation, Los Alamos National Laboratory, Los Alamos, New 
        Mexico, $4,000,000.
            Project 97-D-123, structural upgrades, Kansas City Plant, 
        Kansas City, Missouri, $1,400,000.
            Project 97-D-124, steam plant wastewater treatment facility 
        upgrade, Y-12 Plant, Oak Ridge, Tennessee, $600,000.
            Project 96-D-122, sewage treatment quality upgrade (STQU), 
        Pantex Plant, Amarillo, Texas, $100,000.
            Project 96-D-123, retrofit heating, ventilation, and air 
        conditioning and chillers for ozone protection, Y-12 Plant, Oak 
        Ridge, Tennessee, $7,000,000.
            Project 96-D-125, Washington measurements operations 
        facility, Andrews Air Force Base, Camp Springs, Maryland, 
        $3,825,000.
            Project 95-D-122, sanitary sewer upgrade, Y-12 Plant, Oak 
        Ridge, Tennessee, $10,900,000.
            Project 94-D-124, hydrogen fluoride supply system, Y-12 
        Plant, Oak Ridge, Tennessee, $4,900,000.
            Project 94-D-125, upgrade life safety, Kansas City Plant, 
        Kansas City, Missouri, $5,200,000.
            Project 94-D-127, emergency notification system, Pantex 
        Plant, Amarillo, Texas, $2,200,000.
            Project 93-D-122, life safety upgrades, Y-12 Plant, Oak 
        Ridge, Tennessee, $7,200,000.
            Project 93-D-123, complex-21, various locations, 
        $14,487,000.
            Project 88-D-122, facilities capability assurance program, 
        various locations, $21,940,000.
            Project 88-D-123, security enhancement, Pantex Plant, 
        Amarillo, Texas, $9,739,000.
    (c) Program Direction.--Subject to subsection (d), funds are hereby 
authorized to be appropriated to the Department of Energy for fiscal 
year 1997 for program direction in carrying out weapons activities 
necessary for national security programs in the amount of $313,404,000.
    (d) Adjustment.--The total amount authorized to be appropriated 
pursuant to this section is the sum of the amounts authorized to be 
appropriated in subsections (a) through (c) reduced by $20,000,000 for 
use of prior year balances.
SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.
    (a) Environmental Restoration.--Subject to subsection (j), funds 
are hereby authorized to be appropriated to the Department of Energy 
for fiscal year 1997 for environmental restoration in carrying out 
environmental restoration and waste management activities necessary for 
national security programs in the amount of $1,762,194,000, of which 
$376,648,000 shall be allocated to the uranium enrichment 
decontamination and decommissioning fund.
    (b) Waste Management.--Subject to subsection (j), funds are hereby 
authorized to be appropriated to the Department of Energy for fiscal 
year 1997 for waste management in carrying out environmental 
restoration and waste management activities necessary for national 
security programs in the amount of $1,578,653,000, to be allocated as 
follows:
        (1) For operation and maintenance, $1,490,326,000.
        (2) For plant projects (including maintenance, restoration, 
    planning, construction, acquisition, modification of facilities, 
    and the continuation of projects authorized in prior years, and 
    land acquisition related thereto), $88,327,000, to be allocated as 
    follows:
            Project 97-D-402, tank farm restoration and safe 
        operations, Richland, Washington, $7,584,000.
            Project 96-D-408, waste management upgrades, various 
        locations, $11,246,000.
            Project 95-D-402, install permanent electrical service, 
        Waste Isolation Pilot Plant, Carlsbad, New Mexico, $752,000.
            Project 95-D-405, industrial landfill V and construction/
        demolition landfill VII, Y-12 Plant, Oak Ridge, Tennessee, 
        $200,000.
            Project 94-D-404, Melton Valley storage tank capacity 
        increase, Oak Ridge National Laboratory, Oak Ridge, Tennessee, 
        $6,345,000.
            Project 94-D-407, initial tank retrieval systems, Richland, 
        Washington, $12,600,000.
            Project 93-D-182, replacement of cross-site transfer 
        system, Richland, Washington, $8,100,000.
            Project 93-D-187, high-level waste removal from filled 
        waste tanks, Savannah River Site, Aiken, South Carolina, 
        $20,000,000.
            Project 89-D-174, replacement high-level waste evaporator, 
        Savannah River Site, Aiken, South Carolina, $11,500,000.
            Project 86-D-103, decontamination and waste treatment 
        facility, Lawrence Livermore National Laboratory, Livermore, 
        California, $10,000,000.
    (c) Nuclear Materials and Facilities Stabilization.--Subject to 
subsection (j), funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1997 for nuclear materials and 
facilities stabilization in carrying out environmental restoration and 
waste management activities necessary for national security programs in 
the amount of $1,291,290,000 to be allocated as follows:
        (1) For operation and maintenance, $1,173,718,000.
        (2) For plant projects (including maintenance, restoration, 
    planning, construction, acquisition, modification of facilities, 
    and the continuation of projects authorized in prior years, and 
    land acquisition related thereto), $117,572,000, to be allocated as 
    follows:
            Project 97-D-450, Actinide packaging and storage facility, 
        Savannah River Site, Aiken, South Carolina, $7,900,000.
            Project 97-D-451, B-Plant safety class ventilation 
        upgrades, Richland, Washington, $1,500,000.
            Project 97-D-470, environmental monitoring laboratory, 
        Savannah River Site, Aiken, South Carolina, $2,500,000.
            Project 97-D-473, health physics site support facility, 
        Savannah River Site, Aiken, South Carolina, $2,000,000.
            Project 96-D-406, spent nuclear fuels canister storage and 
        stabilization facility, Richland, Washington, $60,672,000.
            Project 96-D-461, electrical distribution upgrade, Idaho 
        National Engineering Laboratory, Idaho, $6,790,000.
            Project 96-D-464, electrical and utility systems upgrade, 
        Idaho Chemical Processing Plant, Idaho National Engineering 
        Laboratory, Idaho, $10,440,000.
            Project 96-D-471, chlorofluorocarbon heating, ventilation, 
        and air conditioning and chiller retrofit, Savannah River Site, 
        Aiken, South Carolina, $8,541,000.
            Project 95-E-600, hazardous materials management and 
        emergency response training center, Richland, Washington, 
        $7,900,000.
            Project 95-D-155, upgrade site road infrastructure, 
        Savannah River Site, South Carolina, $4,137,000.
            Project 95-D-456, security facilities consolidation, Idaho 
        Chemical Processing Plant, Idaho National Engineering 
        Laboratory, Idaho, $4,645,000.
            Project 94-D-401, emergency response facility, Idaho 
        National Engineering Laboratory, Idaho, $547,000.
    (d) Program Direction.--Subject to subsection (j), funds are hereby 
authorized to be appropriated to the Department of Energy for fiscal 
year 1997 for program direction in carrying out environmental 
restoration and waste management activities necessary for national 
security programs in the amount of $411,511,000.
    (e) Technology Development.--Subject to subsection (j), funds are 
hereby authorized to be appropriated to the Department of Energy for 
fiscal year 1997 for technology development in carrying out 
environmental restoration and waste management activities necessary for 
national security programs in the amount of $303,771,000.
    (f) Policy and Management.--Subject to subsection (j), funds are 
hereby authorized to be appropriated to the Department of Energy for 
fiscal year 1997 for policy and management in carrying out 
environmental restoration and waste management activities necessary for 
national security programs in the amount of $23,155,000.
    (g) Environmental Science Program.--Subject to subsection (j), 
funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for the environmental science program in 
carrying out environmental restoration and waste management activities 
necessary for national security programs in the amount of $62,136,000.
    (h) Environmental Management Privatization.--Subject to subsection 
(j), funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 1997 for environmental management 
privatization in carrying out environmental restoration and waste 
management activities necessary for national security programs in the 
amount of $185,000,000.
    (i) Closure Projects.--Subject to subsection (j), funds are hereby 
authorized to be appropriated to the Department of Energy for fiscal 
year 1997 for closure projects selected under section 3143 in the 
amount of $50,000,000.
    (j) Adjustments.--The total amount authorized to be appropriated 
pursuant to this section is the sum of the amounts authorized to be 
appropriated in subsections (a) through (i) reduced by the sum of--
        (1) $150,400,000, for use of prior year balances; and
        (2) $8,000,000, for Savannah River Pension Refund.

SEC. 3103. DEFENSE FIXED ASSET ACQUISITION/PRIVATIZATION.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for the defense fixed asset acquisition/
privatization program in the amount of $182,000,000.

SEC. 3104. OTHER DEFENSE ACTIVITIES.

    (a) In General.--Subject to subsection (b), funds are hereby 
authorized to be appropriated to the Department of Energy for fiscal 
year 1997 for other defense activities in carryingout programs 
necessary for national security in the amount of $1,590,231,000, to be 
allocated as follows:
        (1) For verification and control technology, $456,348,000, to 
    be allocated as follows:
            (A) For nonproliferation and verification research and 
        development, $204,919,000.
            (B) For arms control, $216,244,000.
            (C) For intelligence, $35,185,000.
        (2) For nuclear safeguards and security, $47,208,000.
        (3) For security investigations, $22,000,000.
        (4) For emergency management, $16,794,000.
        (5) For program direction, $88,122,000.
        (6) For international nuclear safety, $15,200,000.
        (7) For environment, safety, and health, defense, $63,800,000.
        (8) For worker and community transition assistance, 
    $67,000,000.
        (9) For fissile materials disposition, $93,796,000, to be 
    allocated as follows:
            (A) For operation and maintenance, $76,796,000.
            (B) For the following plant project (including maintenance, 
        restoration, planning, construction, acquisition, and 
        modification of facilities, and land acquisition related 
        thereto):
                Project 97-D-140, consolidated special nuclear 
            materials storage facility, site to be determined, 
            $17,000,000.
        (10) For nuclear security/Russian production reactor shutdown, 
    $6,000,000.
        (11) For naval reactors development, $681,932,000, to be 
    allocated as follows:
            (A) For operation and infrastructure, $649,330,000.
            (B) For program direction, $18,902,000.
            (C) For plant projects (including maintenance, restoration, 
        planning, construction, acquisition, modification of 
        facilities, and the continuation of projects authorized in 
        prior years, and land acquisition related thereto), 
        $13,700,000, to be allocated as follows:
                Project 97-D-201, advanced test reactor secondary 
            coolant refurbishment, Idaho National Engineering 
            Laboratory, Idaho, $400,000.
                Project 95-D-200, laboratory systems and hot cell 
            upgrades, various locations, $4,800,000.
                Project 95-D-201, advanced test reactor radioactive 
            waste system upgrades, Idaho National Engineering 
            Laboratory, Idaho, $500,000.
                Project 90-N-102, expended core facility dry cell 
            project, Naval Reactors Facility, Idaho, $8,000,000.
    (b) Adjustment.--The total amount authorized to be appropriated 
pursuant to this section is the sum of the amounts authorized to be 
appropriated in paragraphs (1) through (10) of subsection (a) reduced 
by $25,500,000 for use of prior year balances.

SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for payment to the Nuclear Waste Fund 
established in section 302(c) of the Nuclear Waste Policy Act of 1982 
(42 U.S.C. 10222(c)) in the amount of $200,000,000.

                Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

    (a) In General.--Until the Secretary of Energy submits to the 
congressional defense committees the report referred to in subsection 
(b) and a period of 30 days has elapsed after the date on which such 
committees receive the report, the Secretary may not use amounts 
appropriated pursuant to this title for any program--
        (1) in amounts that exceed, in a fiscal year--
            (A) 110 percent of the amount authorized for that program 
        by this title; or
            (B) $1,000,000 more than the amount authorized for that 
        program by this title; or
        (2) which has not been presented to, or requested of, Congress.
    (b) Report.--(1) The report referred to in subsection (a) is a 
report containing a full and complete statement of the action proposed 
to be taken and the facts and circumstances relied upon in support of 
such proposed action.
    (2) In the computation of the 30-day period under subsection (a), 
there shall be excluded any day on which either House of Congress is 
not in session because of an adjournment of more than 3 days to a day 
certain.
    (c) Limitations.--(1) In no event may the total amount of funds 
obligated pursuant to this title exceed the total amount authorized to 
be appropriated by this title.
    (2) Funds appropriated pursuant to this title may not be used for 
an item for which Congress has specifically denied funds.

SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

    (a) In General.--The Secretary of Energy may carry out any 
construction project under the general plant projects authorized by 
this title if the total estimated cost of the construction project does 
not exceed $2,000,000.
    (b) Report to Congress.--If, at any time during the construction of 
any general plant project authorized by this title, the estimated cost 
of the project is revised because of unforeseen cost variations and the 
revised cost of the project exceeds $2,000,000, the Secretary shall 
immediately furnish a complete report to the congressional defense 
committees explaining the reasons for the cost variation.
    (c) Report on Permanent Authorization of Appropriations for General 
Plant Projects.--(1) Not later than February 1, 1997, the Secretary of 
Energy shall submit to the congressional defense committees a report on 
the desirability of a permanent authorization of appropriations for the 
defense general plant projects and civilian general plant projects of 
the Department of Energy.
    (2) If the Secretary determines for purposes of the report under 
paragraph (1) that a permanent authorization of appropriations is 
desirable, the report shall include--
        (A) recommendations for legislation to provide for a permanent 
    authorization of appropriations, including a formula for adjusting 
    for inflation the amount authorized to be appropriated for the 
    projects to be covered by such authorization of appropriations; and
        (B) a description of the actions to be undertaken by the 
    Secretary to control costs with respect to such projects, including 
    any actions that may depend on the size, nature, or scope of the 
    project concerned.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

    (a) In General.--(1) Except as provided in paragraph (2), 
construction on a construction project may not be started or additional 
obligations incurred in connection with the project above the total 
estimated cost, whenever the current estimated cost of the construction 
project, which is authorized by section 3101, 3102, or 3103, or which 
is in support of national security programs of the Department of Energy 
and was authorized by any previous Act, exceeds by more than 25 percent 
the higher of--
        (A) the amount authorized for the project; or
        (B) the amount of the total estimated cost for the project as 
    shown in the most recent budget justification data submitted to 
    Congress.
    (2) An action described in paragraph (1) may be taken if--
        (A) the Secretary of Energy has submitted to the congressional 
    defense committees a report on the actions and the circumstances 
    making such action necessary; and
        (B) a period of 30 days has elapsed after the date on which the 
    report is received by the committees.
    (3) In the computation of the 30-day period under paragraph (2), 
there shall be excluded any day on which either House of Congress is 
not in session because of an adjournment of more than 3 days to a day 
certain.
    (b) Exception.--Subsection (a) shall not apply to any construction 
project which has a current estimated cost of less than $5,000,000.

SEC. 3124. FUND TRANSFER AUTHORITY.

    (a) Transfer to Other Federal Agencies.--The Secretary of Energy 
may transfer funds authorized to be appropriated to the Department of 
Energy pursuant to this title to other Federal agencies for the 
performance of work for which the funds were authorized. Funds so 
transferred may be merged with and be available for the same purposes 
and for the same period as the authorizations of the Federal agency to 
which the amounts are transferred.
    (b) Transfer Within Department of Energy; Limitations.--(1) Subject 
to paragraph (2), the Secretary of Energy may transfer funds authorized 
to be appropriated to the Department of Energy pursuant to this title 
between any such authorizations. Amounts of authorizations so 
transferred may be merged with and be available for the same purposes 
and for the same period as the authorization to which the amounts are 
transferred.
    (2) Not more than five percent of any such authorization may be 
transferred between authorizations under paragraph (1). No such 
authorization may be increased or decreased by more than five percent 
by a transfer under such paragraph.
    (3) The authority provided by this section to transfer 
authorizations--
        (A) may only be used to provide funds for items relating to 
    weapons activities necessary for national security programs that 
    have a higher priority than the items from which the funds are 
    transferred; and
        (B) may not be used to provide authority for an item that has 
    been denied funds by Congress.
    (c) Notice to Congress.--The Secretary of Energy shall promptly 
notify the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives of any transfer of 
funds to or from authorizations under this title.
SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.
    (a) Requirement for Conceptual Design.--(1) Subject to paragraph 
(2) and except as provided in paragraph (3), before submitting to 
Congress a request for funds for a construction project that is in 
support of a national security program of the Department of Energy, the 
Secretary of Energy shall complete a conceptual design for that 
project. The Secretary shall submit to Congress a report on each 
conceptual design completed under this paragraph.
    (2) If the estimated cost of completing a conceptual design for a 
construction project exceeds $3,000,000, the Secretary shall submit to 
Congress a request for funds for the conceptual design before 
submitting a request for funds for the construction project.
    (3) The requirement in paragraph (1) does not apply to a request 
for funds--
        (A) for a construction project the total estimated cost of 
    which is less than $2,000,000; or
        (B) for emergency planning, design, and construction activities 
    under section 3126.
    (b) Authority for Construction Design.--(1) Within the amounts 
authorized by this title, the Secretary of Energy may carry out 
construction design (including architectural and engineering services) 
in connection with any proposed construction project if the total 
estimated cost for such design does not exceed $600,000.
    (2) If the total estimated cost for construction design in 
connection with any construction project exceeds $600,000, funds for 
such design must be specifically authorized by law.
SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION 
ACTIVITIES.
    (a) Authority.--The Secretary of Energy may use any funds available 
to the Department of Energy pursuant to an authorization in this title, 
including those funds authorized to be appropriated for advance 
planning and construction design under sections 3101, 3102, and 3103, 
to perform planning, design, and construction activities for any 
Department of Energy national security program construction project 
that, as determined by the Secretary, must proceed expeditiously in 
order to protect public health and safety, to meet the needs of 
national defense, or to protect property.
    (b) Limitation.--The Secretary may not exercise the authority under 
subsection (a) in the case of any construction project until the 
Secretary has submitted to the congressional defense committees a 
report on the activities that the Secretary intends to carry out under 
this section and the circumstances making such activities necessary.
    (c) Specific Authority.--The requirement of section 3125(b)(2) does 
not apply to emergency planning, design, and construction activities 
conducted under this section.
SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE 
DEPARTMENT OF ENERGY.
    Subject to the provisions of appropriations Acts and section 3121, 
amounts appropriated pursuant to this title for management and support 
activities and for general plant projects are available for use, when 
necessary, in connection with all national security programs of the 
Department of Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

    When so specified in an appropriations Act, amounts appropriated 
for operation and maintenance or for plant projects may remain 
available until expended.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. STOCKPILE STEWARDSHIP PROGRAM.

    (a) Purpose.--The purpose of this section is to provide for the 
enhanced implementation of the Department of Energy stockpile 
stewardship and management program, in order to provide greater 
confidence in the safety and continuing reliability of the nuclear 
weapons stockpile.
    (b) Funding.--Of the funds authorized to be appropriated to the 
Department of Energy pursuant to section 3101, $85,000,000 shall be 
available to enhance the Department's stockpile stewardship and 
management program for activities determined appropriate by the 
Secretary of Energy, including the following:
        (1) Enhanced surveillance of the nuclear weapons stockpile.
        (2) Dual revalidation of the warheads in the nuclear weapons 
    stockpile.
        (3) Stockpile life extension programs.
        (4) Production capability assurance programs for critical non-
    nuclear components.
        (5) Accelerating capability to produce prototype war reserve-
    quality plutonium pits.
        (6) Conducting subcritical tests.
    (c) Report.--Not later than 60 days after the date of the enactment 
of this Act, the Secretary of Energy shall submit to the congressional 
defense committees a report on the obligations the Secretary has 
incurred, and plans to incur, during fiscal year 1997 for the funds 
made available by subsection (b).
SEC. 3132. MANUFACTURING INFRASTRUCTURE FOR NUCLEAR WEAPONS STOCKPILE.
    (a) General Program Requirements.--Subsection (a) of section 3137 
of the National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 110 Stat. 620; 42 U.S.C. 2121 note) is amended--
        (1) by inserting ``(1)'' before ``The Secretary of Energy'';
        (2) by redesignating paragraphs (1) through (5) as 
    subparagraphs (A) through (E), respectively; and
        (3) by adding at the end the following:
    ``(2) The purpose of the program carried out under paragraph (1) 
shall also be to develop manufacturing capabilities and capacities 
necessary to meet the requirements specified in the annual Nuclear 
Weapons Stockpile Review.''.
    (b) Required Capabilities.--Subsection (b)(3) of such section is 
amended to read as follows:
        ``(3) The capabilities of the Savannah River Site relating to 
    tritium recycling and fissile materials components processing and 
    fabrication.''.
    (c) Plan and Report.--Not later than March 1, 1997, the Secretary 
of Energy shall submit to Congress a report containing a plan for 
carrying out the program established under section 3137(a) of the 
National Defense Authorization Act for Fiscal Year 1996, as amended by 
this section. The report shall set forth the obligations that the 
Secretary has incurred, and proposes to incur, during fiscal year 1997 
in carrying out the program.
    (d) Funding.--Of the funds authorized to be appropriated pursuant 
to section 3101, $90,000,000 shall be available for carrying out the 
program established under section 3137(a) of the National Defense 
Authorization Act for Fiscal Year 1996, as so amended.

SEC. 3133. TRITIUM PRODUCTION.

    (a) Acceleration of Tritium Production.--(1) The Secretary of 
Energy shall, during fiscal year 1997, make a final decision on the 
technologies to be utilized, and the accelerated schedule to be 
adopted, for tritium production in order to meet the requirements of 
the Nuclear Weapons Stockpile Memorandum relating to tritium 
production, including the new tritium production date of 2005 specified 
in the Nuclear Weapons Stockpile Memorandum.
    (2) In making the final decision, the Secretary shall take into 
account the following:
        (A) The requirements for tritium production specified in the 
    Nuclear Weapons Stockpile Memorandum, including, in particular, the 
    requirements for the ``upload hedge'' component of the nuclear 
    weapons stockpile.
        (B) The ongoing activities of the Department of Energy relating 
    to the evaluation and demonstration of technologies under the 
    accelerator reactor program and the commercial light water reactor 
    program.
    (b) Report.--(1) Not later than April 15, 1997, the Secretary shall 
submit to Congress a report that sets forth the final decision of the 
Secretary under subsection (a)(1). The report shall set forth in 
detail--
        (A) the technologies decided on under that subsection; and
        (B) the accelerated schedule for the production of tritium 
    decided on under that subsection.
    (2) If the Secretary determines that it is not possible to make the 
final decision by the date specified in paragraph (1), the Secretary 
shall submit to Congress on that date a report that explains in detail 
why the final decision cannot be made by that date.
    (c) New Tritium Production Facility.--The Secretary shall commence 
planning and design activities and infrastructure development for a new 
tritium production facility.
    (d) In-Reactor Tests.--The Secretary may perform in-reactor tests 
of tritium target rods as part of the activities carried out under the 
commercial light water reactor program.
    (e) Funding.--Of the funds authorized to be appropriated to the 
Department of Energy pursuant to section 3101(b)(1), $160,000,000 shall 
be available for activities related to tritium production.
SEC. 3134. MODERNIZATION AND CONSOLIDATION OF TRITIUM RECYCLING 
FACILITIES.
    (a) In General.--The Secretary of Energy shall carry out activities 
at the Savannah River Site, South Carolina, to--
        (1) modernize and consolidate the facilities for recycling 
    tritium from weapons; and
        (2) provide a modern tritium extraction facility so as to 
    ensure that such facilities have a capacity to recycle tritium from 
    weapons that is adequate to meet the requirements for tritium for 
    weapons specified in the Nuclear Weapons Stockpile Memorandum.
    (b) Funding.--Of the funds authorized to be appropriated to the 
Department of Energy pursuant to section 3101, not more than $9,000,000 
shall be available for activities under subsection (a).

SEC. 3135. PRODUCTION OF HIGH EXPLOSIVES.

    No funds appropriated or otherwise made available to the Department 
of Energy for fiscal year 1997 or any prior fiscal year may be used to 
move, or prepare to move, the manufacture and fabrication of high 
explosives and energetic materials for use as components in nuclear 
weapons systems from the Pantex Plant, Amarillo, Texas, to any other 
site or facility.
SEC. 3136. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH AND 
DEVELOPMENT PURPOSES.
    (a) Limitation.--No funds authorized to be appropriated or 
otherwise made available to the Department of Energy for fiscal year 
1997 under section 3101 may be obligated or expended for activities 
under the Department of Energy Laboratory Directed Research and 
Development Program, or under any Department of Energy technology 
transfer program or cooperative research and development agreement, 
unless such activities support the national security mission of the 
Department of Energy.
    (b) Annual Report.--(1) The Secretary of Energy shall annually 
submit to the congressional defense committees a report on the funds 
expended during the preceding fiscal year on activities under the 
Department of Energy Laboratory Directed Research and Development 
Program. The purpose of the report is to permit an assessment of the 
extent to which such activities support the national security mission 
of the Department of Energy.
    (2) Each report shall be prepared by the officials responsible for 
Federal oversight of the funds expended on activities under the 
program.
    (3) Each report shall set forth the criteria utilized by the 
officials preparing the report in determining whether or not the 
activities reviewed by such officials support the national security 
mission of the Department.
SEC. 3137. PROHIBITION ON FUNDING NUCLEAR WEAPONS ACTIVITIES WITH 
PEOPLE'S REPUBLIC OF CHINA.
    (a) Funding Prohibition.--No funds authorized to be appropriated or 
otherwise available to the Department of Energy for fiscal year 1997 
may be obligated or expended for any activity associated with the 
conduct of cooperative programs relating to nuclear weapons or nuclear 
weapons technology, including stockpile stewardship, safety, and use 
control, with the People's Republic of China.
    (b) Report.--(1) The Secretary of Energy shall prepare, in 
consultation with the Secretary of Defense, a report containing a 
description of all discussions and activities between the United States 
and the People's Republic of China regarding nuclear weapons matters 
that have occurred before the date of the enactment of this Act and 
that are planned to occur after such date. For each such discussion or 
activity, the report shall include--
        (A) the authority under which the discussion or activity took 
    or will take place;
        (B) the subject of the discussion or activity;
        (C) participants or likely participants;
        (D) the source and amount of funds used or to be used to pay 
    for the discussion or activity; and
        (E) a description of the actions taken or to be taken to ensure 
    that no classified information or unclassified controlled 
    information was or will be revealed, and a determination of whether 
    classified information or unclassified controlled information was 
    revealed in previous discussions.
    (2) The report shall be submitted to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives not later than January 15, 1997.
SEC. 3138. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP PROGRAMS.
    (a) Funding Prohibition.--No funds authorized to be appropriated or 
otherwise available to the Department of Energy for fiscal year 1997 
may be obligated or expended to conduct any activities associated with 
international cooperative stockpile stewardship.
    (b) Exception.--Subsection (a) does not apply--
        (1) with respect to such activities conducted between the 
    United States and the United Kingdom and between the United States 
    and France; and
        (2) to activities carried out under title XV of this Act 
    (relating to cooperative threat reduction with states of the former 
    Soviet Union).
SEC. 3139. TEMPORARY AUTHORITY RELATING TO TRANSFERS OF DEFENSE 
ENVIRONMENTAL MANAGEMENT FUNDS.
    (a) Transfer Authority for Defense Environmental Management 
Funds.--The Secretary of Energy shall provide the manager of each field 
office of the Department of Energy with the authority to transfer 
defense environmental management funds from a program or project under 
the jurisdiction of the office to another such program or project. Any 
such transfer may be made only once in a fiscal year to or from a 
program or project, and the amount transferred to or from a program or 
project may not exceed $5,000,000 in a fiscal year.
    (b) Determination.--A transfer may not be carried out by a manager 
of a field office pursuant to the authority provided under subsection 
(a) unless the manager determines that such transfer is necessary to 
address a riskto health, safety, or the environment or to assure the 
most efficient use of defense environmental management funds at that 
field office.
    (c) Exemption From Reprogramming Requirements.--The requirements of 
section 3121 shall not apply to transfers of funds pursuant to 
subsection (a).
    (d) Notification.--The Secretary of Energy, acting through the 
Assistant Secretary of Energy for Environmental Management, shall 
notify Congress of any transfer of funds pursuant to subsection (a) not 
later than 30 days after such a transfer occurs.
    (e) Limitation.--Funds transferred pursuant to subsection (a) may 
not be used for an item for which Congress has specifically denied 
funds or for a new program or project that has not been authorized by 
Congress.
    (f) Definitions.--In this section:
        (1) The term ``program or project'' means, with respect to a 
    field office of the Department of Energy, any of the following:
            (A) A project listed in subsection (b) or (c) of section 
        3102 being carried out by the office.
            (B) A program referred to in subsection (a), (b), (c), (e), 
        (g), or (h) of section 3102 being carried out by the office.
            (C) A project or program not described in subparagraph (A) 
        or (B) that is for environmental restoration or waste 
        management activities necessary for national security programs 
        of the Department of Energy, that is being carried out by the 
        office, and for which defense environmental management funds 
        have been authorized and appropriated before the date of the 
        enactment of this Act.
        (2) The term ``defense environmental management funds'' means 
    funds appropriated to the Department of Energy pursuant to an 
    authorization for carrying out environmental restoration and waste 
    management activities necessary for national security programs.
    (g) Duration of Authority.--The authority provided under subsection 
(a) to a manager of a field office shall be in effect from the date of 
the enactment of this Act to September 30, 1997.
    (h) Report.--Not later than September 1, 1997, the Secretary of 
Energy shall submit to the congressional defense committees a report on 
the effectiveness of the authority provided under subsection (a) in 
meeting an objective specified in subsection (b). The report shall 
include recommendations on whether the duration of the authority, as 
provided in subsection (g), should be extended.
SEC. 3140. MANAGEMENT STRUCTURE FOR NUCLEAR WEAPONS PRODUCTION 
FACILITIES AND NUCLEAR WEAPONS LABORATORIES.
    (a) Limitation on Delegation of Authority.--(1) The Secretary of 
Energy, in carrying out national security programs, may delegate 
specific management and planning authority over matters relating to 
site operation of the facilities and laboratories covered by this 
section only to the Assistant Secretary of Energy for Defense Programs. 
Such Assistant Secretary may redelegate such authority only to managers 
of area offices of the Department of Energy located at such facilities 
and laboratories.
    (2) Nothing in this section may be construed as affecting the 
delegation by the Secretary of Energy of authority relating to 
reporting, management, and oversight of matters relating to the 
Department of Energy generally, or safety, environment, and health at 
such facilities and laboratories.
    (b) Requirement To Consult With Area Offices.--The Assistant 
Secretary of Energy for Defense Programs, in exercising any delegated 
authority to oversee management of matters relating to site operation 
of a facility or laboratory, shall exercise such authority only after 
direct consultation with the manager of the area office of the 
Department of Energy located at the facility or laboratory.
    (c) Requirement for Direct Communication From Area Offices.--The 
Secretary of Energy, acting through the Assistant Secretary of Energy 
for Defense Programs, shall require the head of each area office of the 
Department of Energy located at each facility and laboratory covered by 
this section to report on matters relating to site operation other than 
those matters set forth in subsection (a)(2) directly to the Assistant 
Secretary of Energy for Defense Programs, without obtaining the 
approval or concurrence of any other official within the Department of 
Energy.
    (d) Defense Programs Reorganization Plan and Report.--(1) The 
Secretary of Energy shall develop a plan to reorganize the field 
activities and management of the national security functions of the 
Department of Energy.
    (2) Not later than 120 days after the date of the enactment of this 
Act, the Secretary shall submit to Congress a report on the plan 
developed under paragraph (1). The report shall specifically identify 
all significant functions performed by the operations offices relating 
to any of the facilities and laboratories covered by this section and 
which of those functions could be performed--
        (A) by the area offices of the Department of Energy located at 
    the facilities and laboratories covered by this section; or
        (B) by the Assistant Secretary of Energy for Defense Programs.
    (3) The report also shall address and make recommendations with 
respect to other internal streamlining and reorganization initiatives 
that the Department could pursue with respect to military or national 
security programs.
    (e) Defense Programs Management Council.--The Secretary of Energy 
shall establish a council to be known as the ``Defense Programs 
Management Council''. The Council shall advise the Secretary on policy 
matters, operational concerns, strategic planning, and development of 
priorities relating to the national security functions of the 
Department of Energy. The Council shall be composed of the directors of 
the facilities and laboratories covered by this section and shall 
report directly to the Assistant Secretary of Energy for Defense 
Programs.
    (f) Covered Site Operations.--For purposes of this section, matters 
relating to site operation of a facility or laboratory include matters 
relating to personnel, budget, and procurement in national security 
programs.
    (g) Covered Facilities and Laboratories.--This section applies to 
the following facilities and laboratories of the Department of Energy:
        (1) The Kansas City Plant, Kansas City, Missouri.
        (2) The Pantex Plant, Amarillo, Texas.
        (3) The Y-12 Plant, Oak Ridge, Tennessee.
        (4) The Savannah River Site, Aiken, South Carolina.
        (5) Los Alamos National Laboratory, Los Alamos, New Mexico.
        (6) Sandia National Laboratories, Albuquerque, New Mexico.
        (7) Lawrence Livermore National Laboratory, Livermore, 
    California.
        (8) The Nevada Test Site, Nevada.
SEC. 3141. ACCELERATED SCHEDULE FOR ISOLATING HIGH-LEVEL NUCLEAR WASTE 
AT THE DEFENSE WASTE PROCESSING FACILITY, SAVANNAH RIVER SITE.
    The Secretary of Energy shall accelerate the schedule for the 
isolation of high-level nuclear waste in glass canisters at the Defense 
Waste Processing Facility at the Savannah River Site, South Carolina, 
if the Secretary determines that the acceleration of such schedule--
        (1) will achieve long-term cost savings to the Federal 
    Government; and
        (2) could accelerate the removal and isolation of high-level 
    nuclear waste from long-term storage tanks at the site.
SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR WASTE AND 
SPENT NUCLEAR FUEL RODS.
    (a) In General.--(1) In order to provide for an effective response 
to requirements for managing the spent nuclear fuel described in 
paragraph (2), there shall be available to the Secretary of Energy, 
from amounts authorized to be appropriated pursuant to section 3102(c), 
the following amounts for the purposes stated:
        (A) Not more than $43,000,000 for the development and 
    implementation of a program to accelerate the receipt, processing 
    (including the H-canyon restart operations), reprocessing, 
    separation, reduction, deactivation, stabilization, isolation, and 
    interim storage of high-level nuclear waste associated with 
    Department of Energy aluminum clad spent fuel rods, foreign spent 
    fuel rods, and other nuclear materials.
        (B) Not more than $15,000,000 for the development and 
    implementation of a program for the receipt, treatment, 
    preparation, conditioning, interim storage, and final disposition 
    of high-level nuclear waste and spent nuclear fuel (including naval 
    spent nuclear fuel), non-aluminum clad fuel rods, and foreign fuel 
    rods.
    (2) The spent nuclear fuel referred to in paragraph (1) is the 
following:
        (A) Spent nuclear fuel that is sent to Department of Energy 
    consolidation sites pursuant to the Department of Energy 
    Programmatic Spent Nuclear Fuel Management and Idaho National 
    Engineering Laboratory Environmental Restoration and Waste 
    Management Programs Final Environmental Impact Statement, dated 
    April 1995.
        (B) Spent nuclear fuel described in the Interim Management of 
    Nuclear Materials Environmental Impact Statement, dated October 
    1995.
        (C) Other spent nuclear fuel located at the Savannah River Site 
    as of the date of the enactment of this Act.
    (3) The amounts made available under paragraph (1) are in addition 
to other amounts authorized to be appropriated by section 3102(c) for 
the purposes stated in subparagraphs (A) and (B) of that paragraph.
    (b) Use of Funds for Settlement Agreement.--Funds made available 
pursuant to subsection (a)(1)(B) for the Idaho National Engineering 
Laboratory shall be considered to be funds made available in partial 
fulfillment of the terms and obligations set forth in the settlement 
agreement entered into by the United States with the State of Idaho in 
the actions captioned Public Service Co. of Colorado v. Batt, Civil No. 
91-0035-S-EJL, and United States v. Batt, Civil No. 91-0054-S-EJL, in 
the United States District Court for the District of Idaho and the 
consent order of the United States District Court for the District of 
Idaho, dated October 17, 1995, that effectuates the settlement 
agreement.
    (c) Amendments to Implementation Plan for Managing Spent Nuclear 
Fuel at Certain Sites.--Section 3142(b) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
622) is amended--
        (1) by striking out ``April 30, 1996'' and inserting in lieu 
    thereof ``September 30, 1996'';
        (2) by striking out ``and'' at the end of paragraph (3);
        (3) by striking out the period at the end of paragraph (4) and 
    inserting in lieu thereof ``; and''; and
        (4) by adding at the end the following new paragraph:
        ``(5) an assessment of the progress made in implementing the 
    programs.''.
    (d) Near-Term Plan for Processing Spent Fuel Rods at Savannah River 
Site.--(1) Not later than March 15, 1997, the Secretary of Energy shall 
submit to Congress a plan for a near-term program to process, treat, 
package, and dispose of spent nuclear fuel rods described in paragraph 
(2) at the Savannah River Site. The plan shall include cost projections 
and resource requirements for the program and identify program 
milestones for the program.
    (2) The spent nuclear fuel rods to be included in the program 
referred to in paragraph (1) are the following:
        (A) Spent nuclear fuel rods produced at the Savannah River 
    Site.
        (B) Spent nuclear fuel rods being sent to the site from other 
    Department of Energy facilities for processing, interim storage, 
    and other treatment.
        (C) Foreign spent nuclear fuel rods being sent to the site for 
    processing, interim storage, and other treatment.
    (e) Multi-Year Plan for Clean-Up at Savannah River Site.--The 
Secretary shall develop and implement a multi-year plan for the clean-
up of nuclear waste at the Savannah River Site that results, or has 
resulted, from the following:
        (1) Nuclear weapons activities carried out at the site.
        (2) The processing, treating, packaging, and disposal of 
    Department of Energy domestic and foreign spent nuclear fuel rods 
    at the site.
    (f) Requirement for Continuing Operations at Savannah River Site.--
The Secretary shall continue operations and maintain a high state of 
readiness at the H-canyon facility and the F-canyon facility at the 
Savannah River Site, and shall provide technical staff necessary to 
operate and so maintain such facilities, pending the development and 
implementation of the plan referred to in subsection (e).
SEC. 3143. PROJECTS TO ACCELERATE CLOSURE ACTIVITIES AT DEFENSE NUCLEAR 
FACILITIES.
    (a) In General.--The Secretary of Energy shall select and carry out 
closure-acceleration projects in accordance with this section.
    (b) Purpose.--The purpose of a closure-acceleration project shall 
be, within a fixed period of time, to clean up or decommission a 
Department of Energy defense nuclear facility or portion thereof and to 
make the facility safe by stabilizing, consolidating, treating, or 
removing nuclear materials from the facility in order to reduce 
significantly or eliminate future costs at the facility.
    (c) Eligible Projects.--(1) The Secretary of Energy may establish a 
closure-acceleration project as eligible for selection under subsection 
(e) by--
        (A) developing a plan for the project that meets the criteria 
    under paragraph (2); and
        (B) determining that the project will achieve significant long-
    term cost savings to the Federal Government from the baseline cost 
    estimate made by the Department of Energy for the project.
    (2) A plan for a closure-acceleration project under this section 
shall--
        (A) define a clear, delineated scope of work for completion of 
    the project;
        (B) demonstrate that, with respect to the site of the proposed 
    project, there is a regulatory agreement between the Department of 
    Energy and other appropriate authorities for the implementation of 
    environmental remediation requirements that would allow for 
    successful completion of the project;
        (C) demonstrate, to the maximum extent possible, the support of 
    State and local elected officials and the public for the project;
        (D) contain performance-based provisions to be included in the 
    contract for the project, including--
            (i) clearly stated and results-oriented performance 
        criteria and measures;
            (ii) appropriate incentives for the contractor to meet and 
        exceed the performance criteria effectively and efficiently;
            (iii) appropriate criteria and incentives for the con- 
        tractor to seek and engage subcontractors who may more 
        effectively and efficiently perform either unique and 
        technologically challenging tasks or routine and 
        interchangeable services;
            (iv) specific incentives for cost savings;
            (v) financial accountability; and
            (vi) when appropriate, reduction of fee for failure to meet 
        minimum performance criteria and standards;
        (E) demonstrate that the project will use new and innovative 
    cleanup and waste management technology with potential for 
    application to other locations and facilities without requiring the 
    development of new technologies; and
        (F) demonstrate that the project can be completed within 10 
    years from the date of its selection.
    (d) Program Administration.--The Secretary of Energy, acting 
through the Assistant Secretary for Environmental Management, shall 
implement a program to carry out the provisions of this section.
    (e) Selection of Projects.--(1) The Secretary of Energy shall 
select closure-acceleration projects to be carried out under this 
section from among those projects established as eligible under 
subsection (c) that will result in the most significant long-term cost 
savings to the Government and the most significant reduction of 
imminent risk.
    (2) For each project selected, the Secretary shall submit to 
Congress a report setting forth the reasons why the project was 
selected, based on the criteria under subsection (c)(2) and paragraph 
(1) of this subsection.
    (f) Multiyear Contracts.--Notwithstanding section 304B(d) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
254c(d)), the Secretary of Energy may enter into multi- year contracts 
to carry out projects selected under this section for up to 10 program 
years.
    (g) Funding.--(1) In the budget submitted to Congress under section 
1105(a) of title 31, United States Code, each year, the President shall 
set forth funds for carrying out closure-acceleration projects under 
this section as a separate item in the environmental restoration and 
waste management account of the Department of Energy budget.
    (2) Funds appropriated for purposes of carrying out projects under 
this section shall remain available until expended.
    (3) If a closure-acceleration project is being carried out at a 
defense nuclear facility with funds appropriated for such projects, the 
Secretary of Energy may not reduce the funds otherwise allocated to 
that defense nuclear facility for environmental restoration and waste 
management by reason of the funds being used for the project at that 
facility.
    (4) Funds appropriated for purposes of carrying out projects under 
this section may not be used for an item for which Congress has 
specifically denied funds or for a new program or project that has not 
been authorized by Congress.
    (h) Annual Report.--The Secretary of Energy shall submit each year 
to Congress a report on the status of each closure-acceleration project 
being carried out under this section. The report shall include, for 
each such project, the following:
        (1) A description of the funding already provided for the 
    project.
        (2) A description of the extent of the cleanup, 
    decommissioning, stabilization, consolidation, treatment, or 
    removal activities completed.
        (3) A comparison of the actual results of the project to the 
    original proposal and the actual cost of the project to the 
    originally proposed cost.
        (4) A description of the funding needed in future fiscal years 
    for completion of the project.
    (i) Duration of Program.--No closure-acceleration project selected 
under this section may be carried out after the expiration of the 15-
year period beginning on the date of the enactment of this Act.
    (j) Savings Provision.--Nothing in this section may be construed to 
affect statutory requirements for an environmental restoration or waste 
management activity or project or to modify or otherwise affect 
applicable statutory or regulatory environmental restoration and waste 
management requirements, including substantive standards intended to 
protect public health and the environment, nor shall anything in this 
section be construed to preempt or impair any local land use planning 
or zoning authority or State authority.
SEC. 3144. PAYMENT OF COSTS OF OPERATION AND MAINTENANCE OF 
INFRASTRUCTURE AT NEVADA TEST SITE.
    Notwithstanding any other provision of law and effective as of 
September 30, 1996, the costs associated with operating and maintaining 
the infrastructure at the Nevada Test Site, Nevada, with respect to any 
activities initiated at the site after that date by the Department of 
Defense pursuant to a work-for-others agreement may be paid for from 
funds authorized to be appropriated to the Department of Energy for 
activities at the Nevada Test Site.

                       Subtitle D--Other Matters

SEC. 3151. REPORT ON PLUTONIUM PIT PRODUCTION AND RE- MANUFACTURING 
PLANS.
    (a) Report Requirement.--The Secretary of Energy shall submit to 
the congressional defense committees a report on plans for achieving 
the capability to produce and remanufacture plutonium pits. The report 
shall include a description of the baseline plan of the Department of 
Energy for achieving such capability, including the following:
        (1) The funding necessary, by fiscal year, to achieve the 
    capability.
        (2) The schedule necessary to achieve the capability, including 
    important technical and programmatic milestones.
        (3) Siting, capacity for expansion, and other issues included 
    in the baseline plan.
    (b) Deadline.--The report required by subsection (a) shall be 
submitted not later than 60 days after the date of the enactment of 
this Act.
SEC. 3152. AMENDMENTS RELATING TO BASELINE ENVIRONMENTAL MANAGEMENT 
REPORTS.
    Section 3153 of the National Defense Authorization Act for Fiscal 
Year 1994 (42 U.S.C. 7274k) is amended--
        (1) in subsection (b)--
            (A) by striking out the first word in the heading and 
        inserting in lieu thereof ``Biennial''; and
            (B) in paragraph (2)(B), by inserting before ``year after 
        1995'' the following: ``odd-numbered''; and
        (2) in subsection (d)--
            (A) by striking out the first word in the heading and 
        inserting in lieu thereof ``Biennial'';
            (B) in paragraph (1)(B), by striking out ``in each year 
        thereafter'' and inserting in lieu thereof ``in each odd-
        numbered year thereafter''; and
            (C) in paragraph (2)(A)--
                (i) in the matter preceding clause (i), by striking out 
            ``fiscal year immediately'' and inserting in lieu thereof 
            ``two fiscal years immediately''; and
                (ii) in clause (ii), by striking out ``prior fiscal 
            year'' and inserting in lieu thereof ``prior fiscal 
            years''.
SEC. 3153. REQUIREMENT TO DEVELOP FUTURE USE PLANS FOR ENVIRONMENTAL 
MANAGEMENT PROGRAM.
    (a) Authority To Develop Future Use Plans.--The Secretary of Energy 
may develop future use plans for any defense nuclear facility at which 
environmental restoration and waste management activities are 
occurring.
    (b) Requirement To Develop Future Use Plans.--The Secretary shall 
develop a future use plan for each of the following defense nuclear 
facilities:
        (1) Hanford Site, Richland, Washington.
        (2) Rocky Flats Plant, Golden, Colorado.
        (3) Savannah River Site, Aiken, South Carolina.
        (4) Idaho National Engineering Laboratory, Idaho.
    (c) Citizen Advisory Board.--(1) At each defense nuclear facility 
for which the Secretary of Energy intends or is required to develop a 
future use plan under this section and for which no citizen advisory 
board has been established, the Secretary shall establish a citizen 
advisory board.
    (2) The Secretary may authorize the manager of a defense nuclear 
facility for which a future use plan is developed under this section 
(or, if there is no such manager, an appropriate official of the 
Department of Energy designated by the Secretary) to pay routine 
administrative expenses of a citizen advisory board established for 
that facility. Such payments shall be made from funds available to the 
Secretary for program direction in carrying out environmental 
restoration and waste management activities necessary for national 
security programs.
    (d) Requirement To Consult With Citizen Advisory Board.--In 
developing a future use plan under this section with respect to a 
defense nuclear facility, the Secretary of Energy shall consult with a 
citizen advisory board established pursuant to subsection (c) or a 
similar advisory board already in existence as of the date of the 
enactment of this Act for such facility, affected local governments 
(including any local future use redevelopment authorities), and other 
appropriate State agencies.
    (e) 50-Year Planning Period.--A future use plan developed under 
this section shall cover a period of at least 50 years.
    (f) Deadlines.--For each facility listed in subsection (b), the 
Secretary of Energy shall develop a draft future use plan by October 1, 
1997, and a final future use plan by March 15, 1998.
    (g) Report.--Not later than 60 days after completing development of 
a final plan for a site listed in subsection (b), the Secretary of 
Energy shall submit to Congress a report on the plan. The report shall 
describe the plan and contain such findings and recommendations with 
respect to the site as the Secretary considers appropriate.
    (h)  Savings Provisions.--(1) Nothing in this section, or in a 
future use plan developed under this section with respect to a defense 
nuclear facility, shall be construed as requiring any modification to a 
future use plan with respect to a defense nuclear facility that was 
developed before the date of the enactment of this Act.
    (2) Nothing in this section may be construed to affect statutory 
requirements for an environmental restoration or waste management 
activity or project or to modify or otherwise affect applicable 
statutory or regulatory environmental restoration and waste management 
requirements, including substantive standards intended to protect 
public health and the environment, nor shall anything in this section 
be construed to preempt or impair any local land use planning or zoning 
authority or State authority.
SEC. 3154. REPORT ON DEPARTMENT OF ENERGY LIABILITY AT DEPARTMENT 
SUPERFUND SITES.
    (a) Study.--The Secretary of Energy shall, using funds authorized 
to be appropriated to the Department of Energy by section 3102, carry 
out a study to determine the extent and valuation of the injury to, 
destruction of, or loss of natural resources under section 107(a)(4)(C) 
of the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9607(a)(4)(C)) at each site controlled 
or operated by the Department that is or is anticipated to become 
subject to the provisions of that Act.
    (b) Conduct of Study.--(1) The Secretary shall carry out the study 
using personnel of the Department or by contract with an appropriate 
private entity.
    (2) In determining the extent and valuation of the injury to, 
destruction of, or loss of natural resources for purposes of the study, 
the Secretary shall--
        (A) treat the Department as a private person liable for 
    response, removal, and remediation costs and damages under section 
    107(a)(4) of that Act (42 U.S.C. 9607(a)(4)) and subject to an 
    action for damages by public trustees of natural resources under 
    section 107(f) of that Act (42 U.S.C. 9607(f)) or by any other 
    person pursuant to section 107(e) or 113(f) of that Act (42 U.S.C. 
    9607(e) and 9613(f)); and
        (B) determine the value of natural resource damages associated 
    with each site in accordance with all regulations promulgated under 
    section 301(c) of that Act (42 U.S.C. 9651(c)).
    (c) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary shall submit a report on the study carried 
out under subsection (a) to the following committees:
        (1) The Committees on Environment and Public Works, Armed 
    Services, and Energy and Natural Resources of the Senate.
        (2) The Committees on Commerce, National Security, 
    Transportation and Infrastructure, and Resources of the House of 
    Representatives.
SEC. 3155. REQUIREMENT FOR ANNUAL FIVE-YEAR BUDGET FOR THE NATIONAL 
SECURITY PROGRAMS OF THE DEPARTMENT OF ENERGY.
    (a) Requirement.--The Secretary of Energy shall prepare each year a 
budget for the national security programs of the Department of Energy 
for the five-year period beginning in the year the budget is prepared. 
Each budget shall contain the estimated expenditures and proposed 
appropriations necessary to support the programs, projects, and 
activities of the national security programs during the five-year 
period covered by the budget and shall be at a level of detail 
comparable to that contained in the budget submitted by the President 
to Congress under section 1105 of title 31, United States Code.
    (b) Submittal.--The Secretary shall submit each year to the 
congressional defense committees the budget required under subsection 
(a) in that year at the same time as the President submits to Congress 
the budget for the coming fiscal year pursuant to such section 1105.
SEC. 3156. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS ACTIVITIES 
BUDGETS FOR FISCAL YEARS AFTER FISCAL YEAR 1997.
    (a) In General.--The weapons activities budget of the Department of 
Energy for any fiscal year after fiscal year 1997 shall--
        (1) set forth with respect to each of the activities under the 
    budget (including stockpile stewardship, stockpile management, and 
    program direction) the funding requested to carry out each project 
    or activity that is necessary to meet the requirements of the 
    Nuclear Weapons Stockpile Memorandum; and
        (2) identify specific infrastructure requirements arising from 
    the Nuclear Posture Review, the Nuclear Weapons Stockpile 
    Memorandum, and the programmatic and technical requirements 
    associated with the review and memorandum.
    (b) Required Detail.--The Secretary of Energy shall include in the 
materials that the Secretary submits to Congress in support of the 
budget for any fiscal year after fiscal year 1997 that is submitted by 
the President pursuant to section 1105 of title 31, United States Code, 
the following:
        (1) A long-term program plan, and a near-term program plan, for 
    the certification and stewardship of the nuclear weapons stockpile.
        (2) An assessment of the effects of the plans referred to in 
    paragraph (1) on each nuclear weapons laboratory and each nuclear 
    weapons production plant.
    (c) Definitions.--In this section:
        (1) The term ``Nuclear Posture Review'' means the Department of 
    Defense Nuclear Posture Review as contained in the report of the 
    Secretary of Defense to the President and Congress dated February 
    19, 1995, or in subsequent such reports.
        (2) The term ``nuclear weapons laboratory'' means the 
    following:
            (A) Lawrence Livermore National Laboratory, California.
            (B) Los Alamos National Laboratory, New Mexico.
            (C) Sandia National Laboratories.
        (3) The term ``nuclear weapons production plant'' means the 
    following:
            (A) The Pantex Plant, Texas.
            (B) The Savannah River Site, South Carolina.
            (C) The Kansas City Plant, Missouri.
            (D) The Y-12 Plant, Oak Ridge, Tennessee.
SEC. 3157. REPEAL OF REQUIREMENT RELATING TO ACCOUNTING PROCEDURES FOR 
DEPARTMENT OF ENERGY FUNDS.
    Section 3151 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 3089) is repealed.
SEC. 3158. UPDATE OF REPORT ON NUCLEAR TEST READINESS POSTURES.
    Not later than June 1, 1997, the Secretary of Energy shall submit 
to Congress a report which updates the report submitted by the 
Secretary under section 3152 of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 623). The updated 
report shall include the matters specified under such section, current 
as of the date of the updated report.
SEC. 3159. REPORTS ON CRITICAL DIFFICULTIES AT NUCLEAR WEAPONS 
LABORATORIES AND NUCLEAR WEAPONS PRODUCTION PLANTS.
    (a) Reports by Heads of Laboratories and Plants.--In the event of a 
difficulty at a nuclear weapons laboratory or a nuclear weapons 
production plant that has a significant bearing on confidence in the 
safety or reliability of a nuclear weapon or nuclear weapon type, the 
head of the laboratory or plant, as the case may be, shall submit to 
the Assistant Secretary of Energy for Defense Programs a report on the 
difficulty. The head of the laboratory or plant shall submit the report 
as soon as practicable after discovery of the difficulty.
    (b) Transmittal by Assistant Secretary.--As soon as practicable 
after receipt of a report under subsection (a), the Assistant Secretary 
shall transmit the report (together with the comments of the Assistant 
Secretary) to the congressional defense committees and to the Secretary 
of Energy and the Secretary of Defense.
    (c) Reports by Nuclear Weapons Council.--Section 179 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) In addition to the responsibilities set forth in subsection 
(d), the Council shall also submit to Congress a report on any analysis 
conducted by the Council with respect to difficulties at nuclear 
weapons laboratories or nuclear weapons production plants that have 
significant bearing on confidence in the safety or reliability of 
nuclear weapons or nuclear weapon types.''.
    (d) Definitions.--In this section:
        (1) The term ``nuclear weapons laboratory'' means the 
    following:
            (A) Lawrence Livermore National Laboratory, California.
            (B) Los Alamos National Laboratory, New Mexico.
            (C) Sandia National Laboratories.
        (2) The term ``nuclear weapons production plant'' means the 
    following:
            (A) The Pantex Plant, Texas.
            (B) The Savannah River Site, South Carolina.
            (C) The Kansas City Plant, Missouri.
            (D) The Y-12 Plant, Oak Ridge, Tennessee.
SEC. 3160. EXTENSION OF APPLICABILITY OF NOTICE-AND-WAIT REQUIREMENT 
REGARDING PROPOSED COOPERATION AGREEMENTS.
    Section 3155(b) of the National Defense Authorization Act for 
Fiscal Year 1995 (42 U.S.C. 2153 note) is amended by striking out 
``October 1, 1996'' and inserting in lieu thereof ``October 1, 1997''.
SEC. 3161. SENSE OF SENATE RELATING TO REDESIGNATION OF DEFENSE 
ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT PROGRAM.
    (a) Sense of Senate.--It is the sense of the Senate that the 
program of the Department of Energy known as the Defense Environmental 
Restoration and Waste Management Program, and also known as the 
Environmental Management Program, be redesignated as the Defense 
Nuclear Waste Management Program of the Department of Energy.
    (b) Report on Redesignation.--Not later than January 31, 1997, the 
Secretary of Energy shall submit to the congressional defense 
committees a report on the costs and other difficulties, if any, 
associated with the following:
        (1) The redesignation of the program known as the Defense 
    Environmental Restoration and Waste Management Program, and also 
    known as the Environmental Management Program, as the Defense 
    Nuclear Waste Management Program of the Department of Energy.
        (2) The redesignation of the Defense Environmental Restoration 
    and Waste Management Account as the Defense Nuclear Waste 
    Management Account.
SEC. 3162. COMMISSION ON MAINTAINING UNITED STATES NUCLEAR WEAPONS 
EXPERTISE.
    (a) Establishment.--There is hereby established a commission to be 
known as the ``Commission on Maintaining United States Nuclear Weapons 
Expertise'' (in this section referred to as the ``Commission'').
    (b) Organizational Matters.--(1)(A) The Commission shall be 
composed of eight members appointed from among individuals in the 
public and private sectors who have significant experience in matters 
relating to nuclear weapons, as follows:
        (i) Two shall be appointed by the majority leader of the Senate 
    (in consultation with the minority leader of the Senate).
        (ii) One shall be appointed by the minority leader of the 
    Senate (in consultation with the majority leader of the Senate).
        (iii) Two shall be appointed by the Speaker of the House of 
    Representatives (in consultation with the minority leader of the 
    House of Representatives).
        (iv) One shall be appointed by the minority leader of the House 
    of Representatives (in consultation with the Speaker of the House 
    of Representatives).
        (v) Two shall be appointed by the Secretary of Energy.
    (B) Members shall be appointed for the life of the Commission. Any 
vacancy in the Commission shall not affect its powers, but shall be 
filled in the same manner as the original appointment.
    (C) The chairman of the Commission shall be designated from among 
the members of the Commission appointed under subparagraph (A) by the 
majority leader of the Senate, in consultation with the Speaker of the 
House of Representatives, the minority leader of the Senate, and the 
minority leader of the House of Representatives.
    (D) Members shall be appointed not later than 60 days after the 
date of the enactment of this Act.
    (2) The members of the Commission shall establish procedures for 
the activities of the Commission, including procedures for calling 
meetings, requirements for quorums, and the manner of taking votes.
    (c) Duties.--(1) The Commission shall develop a plan for recruiting 
and retaining within the Department of Energy nuclear weapons complex 
such scientific, engineering, and technical personnel as the Commission 
determines appropriate in order to permit the Department to maintain 
over the long term a safe and reliable nuclear weapons stockpile 
without engaging in underground testing.
    (2) In developing the plan, the Commission shall--
        (A) identify actions that the Secretary may undertake to 
    attract qualified scientific, engineering, and technical personnel 
    to the nuclear weapons complex of the Department; and
        (B) review and recommend improvements to the on-going efforts 
    of the Department to attract such personnel to the nuclear weapons 
    complex.
    (d) Report.--Not later than March 15, 1998, the Commission shall 
submit to the Secretary and to Congress a report containing the plan 
developed under subsection (c). The report may include recommendations 
for legislation and administrative action.
    (e) Commission Personnel Matters.--(1) Each member of the 
Commission who is not an officer or employee of the Federal Government 
shall be compensated at a rate equal to the daily equivalent of the 
annual rate of basic pay prescribed for level IV of the Executive 
Schedule under section 5315 of title 5, United States Code, for each 
day (including travel time) during which such member is engaged in the 
performance of the duties of the Commission. All members of the 
Commission who are officers or employees of the United States shall 
serve without compensation in addition to that received for their 
services as officers or employees of the United States.
    (2) The members of the Commission shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Commission.
    (3) The Commission may, without regard to the civil service laws 
and regulations, appoint and terminate such personnel as may be 
necessary to enable the Commission to perform its duties. The 
Commission may fix the compensation of the personnel of the Commission 
without regard to the provisions of chapter 51 and subchapter III of 
chapter 53 of title 5, United States Code, relating to classification 
of positions and General Schedule pay rates.
    (4) Any Federal Government employee may be detailed to the 
Commission without reimbursement, and such detail shall be without 
interruption or loss of civil service status or privilege.
    (f) Termination.--The Commission shall terminate 30 days after the 
date on which the Commission submits its report under subsection (d).
    (g) Applicability of FACA.--The provisions of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the activities of the 
Commission.
    (h) Funding.--Of the amounts authorized to be appropriated pursuant 
to section 3101, not more than $1,000,000 shall be available for the 
activities of the Commission under this section. Funds made available 
to the Commission under this section shall remain available until 
expended.
SEC. 3163. SENSE OF CONGRESS REGARDING RELIABILITY AND SAFETY OF 
REMAINING NUCLEAR FORCES.
    (a) Findings.--Congress makes the following findings:
        (1) The United States is committed to proceeding with a robust, 
    science-based stockpile stewardship program with respect to 
    production of nuclear weapons, and to maintaining nuclear weapons 
    production capabilities and capacities, that are adequate--
            (A) to ensure the safety, reliability, and performance of 
        the United States nuclear arsenal; and
            (B) to meet such changing national security requirements as 
        may result from international developments or technical 
        problems with nuclear warheads.
        (2) The United States is committed to reestablishing and 
    maintaining production facilities for nuclear weapons components at 
    levels that are sufficient--
            (A) to satisfy requirements for the safety, reliability, 
        and performance of United States nuclear weapons; and
            (B) to demonstrate and sustain production capabilities and 
        capacities.
        (3) The United States is committed to maintaining the nuclear 
    weapons laboratories and protecting core nuclear weapons 
    competencies.
        (4) The United States is committed to ensuring rapid access to 
    a new production source of tritium within the next decade, as it 
    currently has no meaningful capability to produce tritium, a 
    component that is essential to the performance of modern nuclear 
    weapons.
        (5) The United States reserves the right, consistent with 
    United States law, to resume underground nuclear testing to 
    maintain confidence in the United States stockpile of nuclear 
    weapons if warhead design flaws or aging of nuclear weapons result 
    in problems that a robust stockpile stewardship program cannot 
    solve.
        (6) The United States is committed to funding the Nevada Test 
    Site at a level that maintains the ability of the United States to 
    resume underground nuclear testing within one year after a national 
    decision to do so is made.
        (7) The United States reserves the right to invoke the supreme 
    national interest of the United States and withdraw from any future 
    arms control agreement to limit underground nuclear testing.
    (b) Sense of Congress Regarding Presidential Con- sultation With 
Congress.--It is the sense of Congress that the President should 
consult closely with Congress regarding United States policy and 
practices to ensure confidence in the safety, reliability, and 
performance of the nuclear stockpile of the United States.
    (c) Sense of Congress Regarding Notification and Consultation.--It 
is the sense of Congress that, upon a determination by the President 
that a problem with the safety, reliability, or performance of the 
nuclear stockpile has occurred and that the problem cannot be corrected 
within the stockpile stewardship program, the President shall--
        (1) immediately notify Congress of the problem; and
        (2) submit to Congress in a timely manner a plan for corrective 
    action with respect to the problem, including--
            (A) a technical description of the activities required 
        under the plan; and
            (B) if underground testing of nuclear weapons would assist 
        in such corrective action, an assessment of the advisability of 
        withdrawing from any treaty that prohibits underground testing 
        of nuclear weapons.

SEC. 3164. STUDY ON WORKER PROTECTION AT THE MOUND FACILITY.

    (a) Report.--Not later than March 15, 1997, the Secretary of Energy 
shall submit to the congressional defense committees a report regarding 
the status of projects and programs to improve worker safety and health 
at the Mound Facility in Miamisburg, Ohio.
    (b) Matters Covered.--The report shall include the following:
        (1) The status of actions completed in fiscal year 1996.
        (2) The status of actions completed or proposed to be completed 
    in fiscal years 1997 and 1998.
        (3) A description of the fiscal year 1998 budget request for 
    worker safety and health at the Mound Facility.
        (4) An accounting of expenditures for worker safety and health 
    at the Mound Facility by fiscal year from fiscal year 1994 through 
    and including fiscal year 1996.
SEC. 3165. FISCAL YEAR 1998 FUNDING FOR GREENVILLE ROAD IMPROVEMENT 
PROJECT, LIVERMORE, CALIFORNIA.
    (a) Funding.--The Secretary of Energy shall include in the budget 
for fiscal year 1998 submitted by the Secretary of Energy to the Office 
of Management and Budget a request for sufficient funds to pay the 
United States portion of the cost of transportation improvements under 
the Greenville Road Improvement Project, Livermore, California.
    (b) Cooperation With Livermore, California.--The Secretary shall 
work with the city of Livermore, California, to determine the cost of 
the transportation improvements referred to in subsection (a).
SEC. 3166. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS CRITICAL TO 
DEPARTMENT OF ENERGY NUCLEAR WEAPONS COMPLEX.
    (a) Funding.--Subject to subsection (b), of the funds authorized to 
be appropriated pursuant to section 3101(b), $5,000,000 may be used for 
conducting the fellowship program for the development of skills 
critical to the ongoing mission of the Department of Energy nuclear 
weapons complex required by section 3140 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
621; 42 U.S.C. 2121 note).
    (b) Notice and Wait.--The Secretary of Energy may not obligate or 
expend funds under subsection (a) for the fellowship program referred 
to in that subsection until--
        (1) the Secretary submits to Congress a report setting forth--
            (A) the actions the Department has taken to implement the 
        fellowship program;
            (B) the amount the Secretary proposes to obligate;
            (C) the purposes for which such amount will be obligated; 
        and
        (2) a period of 21 days elapses from the date of the receipt of 
    the report by Congress.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

SEC. 3171. PURPOSE.
    The purpose of this subtitle is to provide for the expedited 
environmental restoration and waste management of defense nuclear 
facilities through the use of cost-effective management mechanisms and 
innovative technologies.
SEC. 3172. APPLICABILITY.
    (a) In General.--The provisions of this subtitle shall apply to the 
following defense nuclear facilities:
        (1) Any defense nuclear facility for which the fiscal year 1996 
    environmental management budget was $350,000,000 or more.
        (2) Any other defense nuclear facility if--
            (A) the chief executive officer of the State in which the 
        facility is located submits to the Secretary a request that the 
        facility be covered by the provisions of this sub- title; and
            (B) the Secretary approves the request.
    (b) Limitation.--The Secretary may not approve a request under 
subsection (a)(2) until 60 days after the date on which the Secretary 
notifies Congress of the Secretary's receipt of the request.
SEC. 3173. SITE MANAGER.
    (a) Appointment.--(1) Subject to paragraph (2), the Secretary shall 
expeditiously appoint a Site Manager for each defense nuclear facility 
(in this subtitle referred to as the ``Site Manager'').
    (2) In the case of a defense nuclear facility at which another 
program, in addition to environmental management operations, is carried 
out, and such other program is subject to management by a site manager, 
field office manager, or operations office manager, the Secretary shall 
appoint such manager to be the Site Manager for such facility for 
purposes of this subtitle.
    (b) Authority.--(1) In addition to other authorities provided for 
in this Act, the Secretary may delegate to the Site Manager of a 
defense nuclear facility authority to oversee and direct environmental 
management operations at the facility, including the authority to--
        (A) enter into and modify contractual agreements to enhance 
    environmental restoration and waste management at the facility;
        (B) request that the Department headquarters submit to Congress 
    a reprogramming package shifting funds among accounts in order to 
    facilitate the most efficient and timely environmental restoration 
    and waste management of the facility, and, in the event that the 
    Department headquarters does not act upon the request within 60 
    days, submit such request to the appropriate congressional 
    committees for review;
        (C) subject to paragraph (2), negotiate amendments to 
    environmental agreements for the Department;
        (D) manage Department personnel at the facility;
        (E) consider the costs, risk reduction benefits, and other 
    benefits for the purposes of ensuring protection of human health 
    and the environment or safety, with respect to any environmental 
    remediation activity the cost of which exceeds $25,000,000; and
        (F) have assessments prepared for environmental restoration 
    activities (in several documents or a single document, as 
    determined by the Site Manager).
    (2) In using the authority described in paragraph (1)(C), a Site 
Manager may not negotiate an amendment that is expected to result in 
additional life cycle costs to the Department without the approval of 
the Secretary.
    (3) In using any authority described in paragraph (1), a Site 
Manager of a facility shall consult with the State where the facility 
is located and the advisory board for the facility.
    (4) The delegation of any authority pursuant to this subsection 
shall not be construed as restricting the Secretary's authority to 
delegate other authorities as necessary.
    (c) Information to Secretary.--The Site Manager of a defense 
nuclear facility shall regularly inform the Secretary, Congress, and 
the advisory board for the facility of the progress made by the Site 
Manager to achieve the expedited environmental restoration and waste 
management of the facility.
SEC. 3174. DEPARTMENT OF ENERGY ORDERS.
    An order imposed after the date of the enactment of this Act 
relating to the execution of environmental restoration, waste 
management, or technology development activities at a defense nuclear 
facility under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) 
may be imposed by the Secretary at the defense nuclear facility only if 
the Secretary finds that the order is necessary for the protection of 
human health and the environment or safety, the fulfillment of current 
legal requirements, or the conduct of critical administrative 
functions.
SEC. 3175. DEPLOYMENT OF TECHNOLOGY FOR REMEDIATION OF DEFENSE NUCLEAR 
WASTE.
    (a) In General.--The Site Manager of each defense nuclear facility 
shall promote the deployment of innovative environmental technologies 
for remediation of defense nuclear waste at the facility.
    (b) Criteria.--To carry out subsection (a), the Site Manager of a 
defense nuclear facility shall establish a program at the facility for 
the testing and deployment of innovative environmental technologies for 
the remediation of defense nuclear waste at the facility. In 
establishing such a program, the Site Manager may--
        (1) establish a simplified, standardized, and timely process 
    for the testing, verification, certification, and deployment of 
    environmental technologies;
        (2) solicit applications to test and deploy environmental 
    technologies suitable for environmental restoration and waste 
    management activities at the facility, including prevention, 
    control, characterization, treatment, and remediation of 
    contamination;
        (3) consult and cooperate with the heads of existing programs 
    at the facility for the verification and certification of 
    environmental technologies at the facility;
        (4) pay the costs of the demonstration of such technologies;
        (5) enter into contracts and other agreements with other public 
    and private entities to deploy environmental technologies at the 
    facility; and
        (6) include incentives, such as product performance 
    specifications, in contracts to encourage the implementation of 
    innovative environmental technologies.
    (c) Follow-On Contracts.--(1) If the Secretary and a person 
demonstrating a technology under the program enter into a contract for 
remediation of nuclear waste at a defense nuclear facility covered by 
this subtitle, or at any other Department facility, as a follow-on to 
the demonstration of the technology, the Secretary shall ensure that 
the contract provides for the Secretary to recoup from the contractor 
the costs incurred by the Secretary pursuant to subsection (b)(6) for 
the demonstration.
    (2) No contract between the Department and a contractor for the 
demonstration of technology under subsection (b) may provide for 
reimbursement of the costs of the contractor on a cost plus fee basis.
    (d) Safe Harbors.--In the case of an environmental technology 
tested, verified, certified, and deployed at a defense nuclear facility 
under a program established under subsection (b), the Site Manager of 
another defense nuclear facility may request the Secretary to waive or 
limit contractual or Department regulatory requirements that would 
otherwise apply in implementing the same environmental technology at 
such other facility.

SEC. 3176. PERFORMANCE-BASED CONTRACTING.

    (a) Program.--The Secretary shall develop and implement a program 
for performance-based contracting for contracts entered into for 
environmental remediation at defense nuclear facilities. The program 
shall ensure that, to the maximum extent practicable and appropriate, 
such contracts include the following:
        (1) Clearly stated and results oriented performance criteria 
    and measures.
        (2) Appropriate incentives for contractors to meet or exceed 
    the performance criteria effectively and efficiently.
        (3) Appropriate criteria and incentives for contractors to seek 
    and engage subcontractors who may more effectively and efficiently 
    perform either unique and technologically challenging tasks or 
    routine and interchangeable services.
        (4) Specific incentives for cost savings.
        (5) Financial accountability.
        (6) When appropriate, reduction of fee for failure to meet 
    minimum performance criteria and standards.
    (b) Criteria and Measures.--Performance criteria and measures 
should take into consideration, at a minimum, the following: managerial 
control; elimination or reduction of risk to public health and the 
environment; workplace safety; financial control; goal-oriented work 
scope; use of innovative and alternative technologies and techniques 
that result in cleanups being performed less expensively, more quickly, 
and within quality parameters; and performing within benchmark cost 
estimates.
    (c) Consultation.--In implementing this section, the Secretary 
shall consult with interested parties.
    (d) Deadline.--The Secretary shall implement this section not later 
than October 1, 1997, unless the Secretary submits to Congress before 
that date a report with a schedule for completion of action under this 
section.
SEC. 3177. DESIGNATION OF COVERED FACILITIES AS ENVIRONMENTAL CLEANUP 
DEMONSTRATION AREAS.
    (a) Designation.--Each defense nuclear facility is hereby 
designated as an environmental cleanup demonstration area to carry out 
the purposes of this subtitle, including the utilizationand evaluation 
of new technologies to be used in environmental restoration and 
remediation at other defense nuclear facilities.
    (b) Sense of Congress.--It is the sense of Congress that Federal 
and State regulatory agencies, members of the communities surrounding 
any defense nuclear facility, and other affected parties with respect 
to the facility should continue to--
        (1) develop expedited and streamlined processes and systems for 
    cleaning up such facility;
        (2) eliminate unnecessary administrative complexity and 
    unnecessary duplication of regulation with respect to the cleanup 
    of such facility;
        (3) proceed expeditiously and cost-effectively with 
    environmental restoration and remediation activities at such 
    facility;
        (4) consider future land use in selecting environmental cleanup 
    remedies at such facility; and
        (5) identify and recommend to Congress changes in law needed to 
    expedite the cleanup of such facility.

SEC. 3178. DEFINITIONS.

    In this subtitle:
        (1) The term ``Secretary'' means the Secretary of Energy.
        (2) The term ``Department'' means the Department of Energy.
        (3) The term ``defense nuclear facility'' has the meaning given 
    the term ``Department of Energy defense nuclear facility'' in 
    section 318 of the Atomic Energy Act of 1954 (42 U.S.C. 2286g).

SEC. 3179. TERMINATION.

    This subtitle is repealed effective September 30, 2001.

SEC. 3180. REPORT.

    Not later than September 30, 2000, the Secretary shall submit to 
Congress a report on the effectiveness of this subtitle in expediting 
environmental restoration and waste management of defense nuclear 
facilities. The report shall include recommendations on whether this 
subtitle should remain in effect beyond September 30, 2001.

 Subtitle F--Waste Isolation Pilot Plant Land Withdrawal Act Amendments

SEC. 3181. SHORT TITLE.

    This subtitle may be cited as the ``Waste Isolation Pilot Plant 
Land Withdrawal Amendment Act''.

SEC. 3182. DEFINITIONS.

    Section 2 of the Waste Isolation Pilot Plant Land Withdrawal Act 
(Public Law 102-579; 106 Stat. 4777) is amended--
        (1) by striking paragraphs (18) and (19); and
        (2) by redesignating paragraphs (20), (21), and (22), as 
    paragraphs (18), (19), and (20), respectively.

SEC. 3183. MANAGEMENT PLAN.

    Section 4(b)(5)(B) of the Waste Isolation Pilot Plant Land 
Withdrawal Act (106 Stat. 4781) is amended by striking ``or with the 
Solid Waste Disposal Act (42 U.S.C. 6901 et seq.)''.

SEC. 3184. REPEAL OF TEST PHASE AND RETRIEVAL PLANS.

    (a) Repeal.--Section 5 of the Waste Isolation Pilot Plant Land 
Withdrawal Act (106 Stat. 4782) is repealed.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act (106 Stat. 4777) is amended by striking out the item relating 
to section 5.

SEC. 3185. TEST PHASE ACTIVITIES.

    Section 6 of the Waste Isolation Pilot Plant Land Withdrawal Act 
(106 Stat. 4783) is amended--
        (1) by repealing subsections (a) and (b);
        (2) by repealing paragraph (1) of subsection (c);
        (3) by redesignating subsection (c) as subsection (a) and in 
    that subsection--
            (A) by repealing subparagraph (A) of paragraph (2);
            (B) by striking the subsection heading and the matter 
        immediately following the subsection heading and inserting 
        ``Study.--The following study shall be conducted:'';
            (C) by striking ``(2) Remote-handled waste.--'';
            (D) by striking ``(B) Study.--'';
            (E) by redesignating clauses (i), (ii), and (iii) as 
        paragraphs (1), (2), and (3), respectively; and
            (F) by realigning the margins of such clauses to be margins 
        of paragraphs;
        (4) in subsection (d), by striking ``, during the test phase, a 
    biennial'' and inserting ``a'' and by striking ``, consisting of a 
    documented analysis of'' and inserting ``as necessary to 
    demonstrate''; and
        (5) by redesignating subsection (d) as subsection (b).

SEC. 3186. DISPOSAL OPERATIONS.

    Subsection (b) of section 7 of the Waste Isolation Pilot Plant Land 
Withdrawal Act (106 Stat. 4785) is amended to read as follows:
    ``(b) Requirements for Commencement of Disposal Operations.--The 
Secretary may commence emplacement of transuranic waste underground for 
disposal at WIPP only upon com- pletion of--
        ``(1) the Administrator's certification under section 8(d)(1) 
    that the WIPP facility will comply with the final disposal 
    regulations;
        ``(2) the acquisition by the Secretary (whether by purchase, 
    condemnation, or otherwise) of Federal Oil and Gas Leases No. NMNM 
    02953 and No. NMNM 02953C, unless the Administrator determines 
    under section 4(b)(5) that such acquisition is not required; and
        ``(3) the 30-day period beginning on the date on which the 
    Secretary notifies Congress that the requirements of section 
    9(a)(1) have been met.''.
SEC. 3187. ENVIRONMENTAL PROTECTION AGENCY DISPOSAL REGULATIONS.
    (a) Section 8(d)(1).--Section 8(d)(1) of the Waste Isolation Pilot 
Plant Land Withdrawal Act (106 Stat. 4786) is amended--
        (1) by amending subparagraph (A) to read as follows:
            ``(A) Application for compliance.--Within 30 days after the 
        date of the enactment of the Waste Isolation Pilot Plant Land 
        Withdrawal Amendment Act, the Secretary shall provide to 
        Congress a schedule for the incremental submission of chapters 
        of the application to the Administrator beginning no later than 
        30 days after the date of the submittal of the schedule. The 
        Administrator shall review the submitted chapters and provide 
        requests for additional information from the Secretary as 
        needed for completeness within 45 days of the receipt of each 
        chapter. The Administrator shall notify Congress of such 
        requests. The schedule shall call for the Secretary to submit 
        all chapters to the Administrator no later than October 31, 
        1996. The Administrator may at any time request additional 
        information from the Secretary as needed to certify, pursuant 
        to subparagraph (B), whether the WIPP facility will comply with 
        the final disposal regulations.''; and
        (2) in subparagraph (D), by striking ``after the application 
    is'' and inserting ``after the full application has been''.
    (b) Section 8(d) (2) and (3).--Section 8(d) of such Act is amended 
by striking paragraphs (2) and (3), by striking ``(1) Compliance with 
disposal regulations.--'' and by redesignating subparagraphs (A), (B), 
(C), and (D) of paragraph (1) as paragraphs (1), (2), (3), and (4), 
respectively.
    (c) Section 8(g).--Section 8(g) of such Act is amended to read as 
follows:
    ``(g) Engineered and Natural Barriers, Etc.--The Secretary shall 
use both engineered and natural barriers and any other measures 
(including waste form modifications) to the extent necessary at WIPP to 
comply with the final disposal regulations.''.
SEC. 3188. COMPLIANCE WITH ENVIRONMENTAL LAWS AND REGULATIONS.
    (a) Section 9(a)(1).--Section 9(a)(1) of the Waste Isolation Pilot 
Plant Land Withdrawal Act (106 Stat. 4788) is amended by adding after 
and below subparagraph (H) the following: ``With respect to transuranic 
mixed waste designated by the Secretary for disposal at WIPP, such 
waste is exempt from treatment standards promulgated pursuant to 
section 3004(m) of the Solid Waste Disposal Act (42 U.S.C. 6924(m)) and 
shall not be subject to the land disposal prohibitions in section 
3004(d), (e), (f), and (g) of the Solid Waste Disposal Act.''.
    (b) Section 9(b).--Subsection (b) of section 9 of such Act is 
repealed.
    (c) Section 9(c)(2).--Subsection (c)(2) of section 9 of such Act is 
repealed.
    (d) Section 14.--Section 14 of such Act (106 Stat. 4791) is 
amended--
        (1) in subsection (a), by striking ``No provision'' and 
    inserting ``Except for the exemption from the land disposal 
    restrictions described in section 9(a)(1), no provision''; and
        (2) in subsection (b)(2), by striking ``including all terms and 
    conditions of the No-Migration Determination'' and inserting 
    ``except that the transuranic mixed waste designated by the 
    Secretary for disposal at WIPP is exempt from the land disposal 
    restrictions described in section 9(a)(1)''.
SEC. 3189. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT OF 
TRANSURANIC WASTE.
    (a) In General.--Section 10 of the Waste Isolation Pilot Plant Land 
Withdrawal Act (106 Stat. 4789) is amended to read as follows:
    ``SEC. 10. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT OF 
      TRANSURANIC WASTE.
    ``It is the sense of Congress that the Secretary should complete 
all actions required under section 7(b) to commence emplacement of 
transuranic waste underground for disposal at WIPP not later than 
November 30, 1997, provided that before that date all applicable health 
and safety standards have been met and all applicable laws have been 
complied with.''.
    (b) Clerical Amendment.--The item relating to section 10 in the 
table of contents in section 1 is amended to read as follows:
``Sec. 10. Sense of Congress on commencement of emplacement of 
transuranic waste.''.

SEC. 3190. DECOMMISSIONING OF WIPP.

    Section 13 of the Waste Isolation Pilot Plant Land Withdrawal Act 
(106 Stat. 4791) is amended--
        (1) by striking subsection (a); and
        (2) by striking ``(b) Management Plan for the Withdrawal After 
    Decommissioning.--Within 5 years after the date of the enactment of 
    this Act, the'' and inserting ``The''.
SEC. 3191. AUTHORIZATIONS FOR ECONOMIC ASSISTANCE AND MISCELLANEOUS 
PAYMENTS.
    (a) Authorization Amendment.--Section 15(a) of the Waste Isolation 
Pilot Plant Land Withdrawal Act (106 Stat. 4791) is amended--
        (1) in the subsection caption, by striking ``15-Year'' and 
    inserting ``14-Year''; and
        (2) by striking ``15 fiscal years beginning with the fiscal 
    year in which the transport of transuranic waste to WIPP is 
    initiated'' and inserting ``14 fiscal years beginning with fiscal 
    year 1998''.
    (b) Requirement for Separate Authorizations.--Such section 15(a) is 
further amended by adding at the end the following: ``The authorization 
of appropriations for funds for payments to the State under the 
preceding sentence shall be separate from any authorization of 
appropriations of funds for WIPP.''.
    (c) Fiscal Year 1997 Funding.--Of the amount authorized to be 
appropriated for the Department of Energy by section 3102(b), 
$20,000,000 shall be available for the purpose of a payment by the 
Secretary of Energy to the State of New Mexico for road improvements in 
connection with the Waste Isolation Pilot Plant.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 1997, 
$17,000,000 for the operation of the Defense Nuclear Facilities Safety 
Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

         Subtitle A--Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of certain materials in National Defense Stockpile.

                     Subtitle B--Programmatic Change

Sec. 3311. Biennial report on stockpile requirements.
Sec. 3312. Notification requirements.
Sec. 3313. Importation of strategic and critical materials.

        Subtitle A--Authorization of Disposals and Use of Funds

SEC. 3301. DEFINITIONS.

    In this title:
        (1) The term ``National Defense Stockpile'' means the stockpile 
    provided for in section 4 of the Strategic and Critical Materials 
    Stock Piling Act (50 U.S.C. 98c).
        (2) The term ``National Defense Stockpile Transaction Fund'' 
    means the fund in the Treasury of the United States established 
    under section 9(a) of the Strategic and Critical Materials Stock 
    Piling Act (50 U.S.C. 98h(a)).

SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 1997, the 
National Defense Stockpile Manager may obligate up to $60,000,000 of 
the funds in the National Defense Stockpile Transaction Fund for the 
authorized uses of such funds under section 9(b)(2) of the Strategic 
and Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)).
    (b) Additional Obligations.--The National Defense Stockpile Manager 
may obligate amounts in excess of the amount specified in subsection 
(a) if the National Defense Stockpile Manager notifies Congress that 
extraordinary or emergency conditions necessitate the additional 
obligations. The National Defense Stockpile Manager may make the 
additional obligations described in the notification after the end of 
the 45-day period beginning on the date Congress receives the 
notification.
    (c) Limitations.--The authorities provided by this section shall be 
subject to such limitations as may be provided in appropriations Acts.
SEC. 3303. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL DEFENSE STOCKPILE.
    (a) Disposal Required.--Subject to subsection (c), the President 
shall dispose of materials contained in the National Defense Stockpile 
and specified in the table in subsection (b) so as to result in 
receipts to the United States in amounts equal to--
        (1) $81,000,000 during fiscal year 1997; and
        (2) $612,000,000 during the ten-fiscal year period ending 
    September 30, 2006.
    (b) Limitation on Disposal Quantity.--The total quantities of 
materials authorized for disposal by the President under subsection (a) 
may not exceed the amounts set forth in the following table:



                     Authorized Stockpile Disposals                     
------------------------------------------------------------------------
   Material for disposal                              Quantity          
------------------------------------------------------------------------
Aluminum..................................  62,881 short tons           
Cobalt....................................  26,000,000 pounds contained 
Columbium Ferro...........................  930,911 pounds contained    
Germanium Metal...........................  40,000 kilograms            
Indium....................................  35,000 troy ounces          
Palladium.................................  15,000 troy ounces          
Platinum..................................  10,000 troy ounces          
Rubber, Natural...........................  125,138 long tons           
Tantalum, Carbide Powder..................  6,000 pounds contained      
Tantalum, Minerals........................  750,000 pounds contained    
Tantalum, Oxide...........................  40,000 pounds contained     
------------------------------------------------------------------------

    (c) Minimization of Disruption and Loss.--The President may not 
dispose of materials under subsection (a) to the extent that the 
disposal will result in--
        (1) undue disruption of the usual markets of producers, 
    processors, and consumers of the materials proposed for disposal; 
    or
        (2) avoidable loss to the United States.
    (d) Treatment of Receipts.--Notwithstanding section 9 of the 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), 
funds received as a result of the disposal of materials under 
subsection (a) shall be--
        (1) deposited into the general fund of the Treasury; and
        (2) to the extent necessary, used to offset the revenues that 
    will be lost as a result of execution of the amendments made by 
    section 4303(a) of the National Defense Authorization Act for 
    Fiscal Year 1996 (Public Law 104-106; 110 Stat. 658).
    (e) Qualifying Offsetting Legislation.--This section is 
specifically enacted as qualifying offsetting legislation for the 
purpose of offsetting fully the estimated revenues lost as a result of 
the amendments made by subsection (a) of section 4303 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 658), and as such is deemed to satisfy the conditions in 
subsection (b) of such section.
    (f) Relationship to Other Disposal Authority.--The disposal 
authority provided in subsection (a) is new disposal authority and is 
in addition to, and shall not affect, any other disposal authority 
provided by law regarding the materials specified in such subsection.

                    Subtitle B--Programmatic Change

SEC. 3311. BIENNIAL REPORT ON STOCKPILE REQUIREMENTS.

    (a) National Emergency Planning Assumptions.--Section 14 of the 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h-5) is 
amended--
        (1) by redesignating subsection (c) as subsection (e); and
        (2) by striking out subsection (b) and inserting in lieu 
    thereof the following new subsection:
    ``(b) Each report under this section shall set forth the national 
emergency planning assumptions used by the Secretary in making the 
Secretary's recommendations under subsection (a)(1) with respect to 
stockpile requirements. The Secretary shall base the national emergency 
planning assumptions on a military conflict scenario consistent with 
the scenario used by the Secretary in budgeting and defense planning 
purposes. The assumptions to be set forth include assumptions relating 
to each of the following:
        ``(1) The length and intensity of the assumed military 
    conflict.
        ``(2) The military force structure to be mobilized.
        ``(3) The losses anticipated from enemy action.
        ``(4) The military, industrial, and essential civilian 
    requirements to support the national emergency.
        ``(5) The availability of supplies of strategic and critical 
    materials from foreign sources during the mobilization period, the 
    military conflict, and the subsequent period of replenishment, 
    taking into consideration possible shipping losses.
        ``(6) The domestic production of strategic and critical 
    materials during the mobilization period, the military conflict, 
    and the subsequent period of replenishment, taking into 
    consideration possible shipping losses.
        ``(7) Civilian austerity measures required during the 
    mobilization period and military conflict.
    ``(c) The stockpile requirements shall be based on those strategic 
and critical materials necessary for the United States to replenish or 
replace, within three years of the end of the military conflict 
scenario required under subsection (b), all munitions, combat support 
items, and weapons systems that would be required after such a military 
conflict.
    ``(d) The Secretary shall also include in each report under this 
section an examination of the effect that alternative mobilization 
periods under the military conflict scenario required under subsection 
(b), as well as a range of other military conflict scenarios addressing 
potentially more serious threats to national security, would have on 
the Secretary's recommendations under subsection (a)(1) with respect to 
stockpile requirements.''.
    (b) Conforming Amendment.--Section 2 of such Act (50 U.S.C. 98a) is 
amended by striking out subsection (c) and inserting in lieu thereof 
the following new subsection:
    ``(c) The purpose of the National Defense Stockpile is to serve the 
interest of national defense only. The National Defense Stockpile is 
not to be used for economic or budgetary purposes.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1996.

SEC. 3312. NOTIFICATION REQUIREMENTS.

    (a) Proposed Changes in Stockpile Quantities.--Section 3(c)(2) of 
the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 
98b(c)(2)) is amended--
        (1) by striking out ``effective on or after the 30th 
    legislative day following'' and inserting in lieu thereof ``after 
    the end of the 45-day period beginning on''; and
        (2) by striking out the last sentence.
    (b) Waiver of Acquisition and Disposal Requirements.--Section 
6(d)(1) of such Act (50 U.S.C. 98e(d)(1)) is amended by striking out 
``thirty days'' and inserting in lieu thereof ``45 days''.
    (c) Time To Begin Disposal.--Section 6(d)(2) of such Act (50 U.S.C. 
98e(d)(2)) is amended by striking out ``thirty days'' and inserting in 
lieu thereof ``45 days''.

SEC. 3313. IMPORTATION OF STRATEGIC AND CRITICAL MATERIALS.

    Section 13 of the Strategic and Critical Materials Stock Piling Act 
(50 U.S.C. 98h-4) is amended--
        (1) by striking out ``as a Communist-dominated country or 
    area''; and
        (2) by striking out ``such Communist-dominated countries or 
    areas'' and inserting in lieu thereof ``a country or area listed in 
    such general note''.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
          year 1997.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    There is hereby authorized to be appropriated to the Secretary of 
Energy $149,500,000 for fiscal year 1997 for the purpose of carrying 
out activities under chapter 641 of title 10, United States Code, 
relating to the naval petroleum reserves (as defined in section 7420(2) 
of such title). Funds appropriated pursuant to such authorization shall 
remain available until expended.
SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM DURING FISCAL 
YEAR 1997.
    Notwithstanding section 7430(b)(2) of title 10, United States Code, 
during fiscal year 1997, any sale of any part of the United States 
share of petroleum produced from Naval Petroleum Reserves Numbered 1, 
2, and 3 shall be made at a price not less than 90 percent of the 
current sales price, as estimated by the Secretary of Energy, of 
comparable petroleum in the same area.

                  TITLE XXXV--PANAMA CANAL COMMISSION

               Subtitle A--Authorization of Appropriations

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.

           Subtitle B--Amendments to Panama Canal Act of 1979

Sec. 3521. Short title; references.
Sec. 3522. Definitions and recommendation for legislation.
Sec. 3523. Administrator.
Sec. 3524. Deputy Administrator and Chief Engineer.
Sec. 3525. Office of Ombudsman.
Sec. 3526. Appointment and compensation; duties.
Sec. 3527. Applicability of certain benefits.
Sec. 3528. Travel and transportation.
Sec. 3529. Clarification of definition of agency.
Sec. 3530. Panama Canal Employment System; merit and other employment 
          requirements.
Sec. 3531. Employment standards.
Sec. 3532. Repeal of obsolete provision regarding interim application of 
          Canal Zone Merit System.
Sec. 3533. Repeal of provision relating to recruitment and retention 
          remuneration.
Sec. 3534. Benefits based on basic pay.
Sec. 3535. Vesting of general administrative authority of commission.
Sec. 3536. Applicability of certain laws.
Sec. 3537. Repeal of provision relating to transferred or reemployed 
          employees.
Sec. 3538. Administration of special disability benefits.
Sec. 3539. Panama Canal Revolving Fund.
Sec. 3540. Printing.
Sec. 3541. Accounting policies.
Sec. 3542. Interagency services; reimbursements.
Sec. 3543. Postal service.
Sec. 3544. Investigation of accidents or injury giving rise to claim.
Sec. 3545. Operations regulations.
Sec. 3546. Miscellaneous repeals.
Sec. 3547. Exemption from Metric Conversion Act of 1975.
Sec. 3548. Conforming and clerical amendments.
Sec. 3549. Repeal of Panama Canal Code.

              Subtitle A--Authorization of Appropriations

SEC. 3501. SHORT TITLE.

    This subtitle may be cited as the ``Panama Canal Commission 
Authorization Act for Fiscal Year 1997''.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

    (a) In General.--Subject to subsection (b), the Panama Canal 
Commission is authorized to use amounts in the Panama Canal Revolving 
Fund to make such expenditures within the limits of funds and borrowing 
authority available to it in accordance with law, and to make such 
contracts and commitments, as may be necessary under the Panama Canal 
Act of 1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance, 
improvement, and administration of the Panama Canal for fiscal year 
1997.
    (b) Limitations.--For fiscal year 1997, the Panama Canal Commission 
may expend from funds in the Panama Canal Revolving Fund not more than 
$73,000 for reception and representation expenses, of which--
        (1) not more than $18,000 may be used for official reception 
    and representation expenses of the Supervisory Board of the 
    Commission;
        (2) not more than $10,000 may be used for official reception 
    and representation expenses of the Secretary of the Commission; and
        (3) not more than $45,000 may be used for official reception 
    and representation expenses of the Administrator of the Commission.

SEC. 3503. PURCHASE OF VEHICLES.

    Notwithstanding any other provisions of law, the funds available to 
the Commission shall be available for the purchase and transportation 
to the Republic of Panama of passenger motor vehicles, including large, 
heavy-duty vehicles.

SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

    Expenditures authorized under this subtitle may be made only in 
accordance with the Panama Canal Treaties of 1977 and any law of the 
United States implementing those treaties.

           Subtitle B--Amendments to Panama Canal Act of 1979

SEC. 3521. SHORT TITLE; REFERENCES.

    (a) Short Title.--This subtitle may be cited as the ``Panama Canal 
Act Amendments of 1996''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this subtitle an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.).

SEC. 3522. DEFINITIONS AND RECOMMENDATION FOR LEGISLATION.

    Section 3 (22 U.S.C. 3602) is amended--
        (1) in subsection (b), by inserting ``and'' after the semicolon 
    at the end of paragraph (4), by striking the semicolon at the end 
    of paragraph (5) and inserting a period, and striking paragraphs 
    (6) and (7); and
        (2) by striking subsection (d).

SEC. 3523. ADMINISTRATOR.

    (a) In General.--Section 1103 (22 U.S.C. 3613) is amended to read 
as follows:


                             ``administrator

    ``Sec. 1103. (a) There shall be an Administrator of the Commission 
who shall be appointed by the President, by and with the advice and 
consent of the Senate, and shall hold office at the pleasure of the 
President.
    ``(b) The Administrator shall be paid compensation in an amount, 
established by the Board, not to exceed level III of the Executive 
Schedule.''.
    (b) Savings Provisions.--Nothing in this section (or section 
3549(3)) shall be considered to affect--
        (1) the tenure of the individual serving as Administrator of 
    the Commission on the day before subsection (a) takes effect; or
        (2) until modified under section 1103(b) of the Panama Canal 
    Act of 1979, as amended by subsection (a), the compensation of the 
    individual so serving.

SEC. 3524. DEPUTY ADMINISTRATOR AND CHIEF ENGINEER.

    (a) In General.--Section 1104 (22 U.S.C. 3614) is amended to read 
as follows:


                          ``deputy administrator

    ``Sec. 1104. (a) There shall be a Deputy Administrator of the 
Commission who shall be appointed by the President. The Deputy 
Administrator shall perform such duties as may be prescribed by the 
Board.
    ``(b) The Deputy Administrator shall be paid compensation at a rate 
of pay, established by the Board, which does not exceed the rate of 
basic pay in effect for level IV of the Executive Schedule, and, if 
eligible, shall be paid the overseas recruitment and retention 
differential provided for in section 1217 of this Act.''.
    (b) Savings Provisions.--Nothing in this section shall be 
considered to affect--
        (1) the tenure of the individual serving as Deputy 
    Administrator of the Commission on the day before subsection (a) 
    takes effect; or
        (2) until modified under section 1104(b) of the Panama Canal 
    Act of 1979, as amended by subsection (a), the compensation of the 
    individual so serving.

SEC. 3525. OFFICE OF OMBUDSMAN.

    Section 1113 (22 U.S.C. 3623) is amended by striking subsection (d) 
and redesignating subsection (e) as subsection (d).

SEC. 3526. APPOINTMENT AND COMPENSATION; DUTIES.

    Section 1202 (22 U.S.C. 3642) is amended to read as follows:


                  ``appointment and compensation; duties

    ``Sec. 1202. (a) In accordance with this chapter, the Commission 
may appoint, fix the compensation of, and define the authority and 
duties of officers and employees (other than the Administrator and 
Deputy Administrator) necessary for the management, operation, and 
maintenance of the Panama Canal and its complementary works, 
installations, and equipment.
    ``(b) Individuals serving in any Executive agency (other than the 
Commission) or the Smithsonian Institution, including individuals in 
the uniformed services, may, if appointed under this section or section 
1104 of this Act, serve as officers or employees of the Commission.''.

SEC. 3527. APPLICABILITY OF CERTAIN BENEFITS.

    Section 1209 (22 U.S.C. 3649) is amended to read as follows:


                   ``applicability of certain benefits

    ``Sec. 1209. Chapter 81 of title 5, United States Code, relating to 
compensation for work injuries, chapters 83 and 84 of such title 5, 
relating to retirement, chapter 87 of such title 5, relating to life 
insurance, and chapter 89 of such title 5, relating to health 
insurance, are applicable to Commission employees, except any 
individual--
        ``(1) who is not a citizen of the United States;
        ``(2) whose initial appointment by the Commission occurs after 
    October 1, 1979; and
        ``(3) who is covered by the Social Security System of the 
    Republic of Panama pursuant to any provision of the Panama Canal 
    Treaty of 1977 and related agreements.''.

SEC. 3528. TRAVEL AND TRANSPORTATION.

    Section 1210 (22 U.S.C. 3650) is amended to read as follows:


                       ``travel and transportation

    ``Sec. 1210. (a) Subject to subsections (b) and (c), the Commission 
may pay travel and transportation expenses for employees in accordance 
with subchapter II of chapter 57 of title 5, United States Code.
    ``(b) For an employee to whom section 1206 applies, the Commission 
may pay travel and transportation expenses associated with vacation 
leave for the employee and the immediate family of the employee 
notwithstanding requirements regarding periods of service established 
by subchapter II of chapter 57 oftitle 5, United States Code, or the 
regulations promulgated thereunder.
    ``(c) For an employee to whom section 1206 does not apply, the 
Commission may pay travel and transportation expenses associated with 
vacation leave for the employee and the immediate family of the 
employee notwithstanding requirements regarding a written agreement 
concerning the duration of a continuing service obligation established 
by subchapter II of chapter 57 of title 5, United States Code, or the 
regulations promulgated thereunder.
    ``(d)(1) Notwithstanding any other provision of law (except 
paragraph (2)), the Commission may contract with Panamanian carriers 
registered under the laws of the Republic of Panama to provide air 
transportation to officials and employees of the Commission who are 
citizens of the Republic of Panama.
    ``(2) Notwithstanding paragraph (1), an official or employee of the 
Commission referred to in paragraph (1) may elect, for security or 
other reasons, to travel by an air carrier holding a certificate under 
section 41102 of title 49, United States Code.''.

SEC. 3529. CLARIFICATION OF DEFINITION OF AGENCY.

    Subparagraph (B) of section 1211(1) (22 U.S.C. 3651(1)(B)) is 
amended to read as follows:
            ``(B) any other Executive agency or the Smithsonian 
        Institution, to the extent of any election in effect under 
        section 1212(b) of this Act;''.
SEC. 3530. PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND OTHER EMPLOYMENT 
REQUIREMENTS.
    (a) In General.--Section 1212 (22 U.S.C. 3652) is amended to read 
as follows:


      ``panama canal employment system; merit and other employment 
                              requirements

    ``Sec. 1212. (a) The Commission shall establish a Panama Canal 
Employment System and prescribe the regulations necessary for its 
administration. The Panama Canal Employment System shall--
        ``(1) be established in accordance with and be subject to the 
    provisions of the Panama Canal Treaty of 1977 and related 
    agreements, the provisions of this chapter, and any other 
    applicable provision of law;
        ``(2) be based on the consideration of the merit of each 
    employee or candidate for employment and the qualifications and 
    fitness of the employee to hold the position concerned;
        ``(3) conform, to the extent practicable and consistent with 
    the provisions of this Act, to the policies, principles, and 
    standards applicable to the competitive service;
        ``(4) in the case of employees who are citizens of the United 
    States, provide for the appropriate interchange of those employees 
    between positions under the Panama Canal Employment System and 
    positions in the competitive service; and
        ``(5) not be subject to the provisions of title 5, United 
    States Code, unless specifically made applicable by this Act.
    ``(b)(1) The head of any Executive agency (other than the 
Commission) and the Smithsonian Institution may elect to have the 
Panama Canal Employment System made applicable in whole or in part to 
personnel of that agency in the Republic of Panama.
    ``(2) Any Executive agency (other than the Commission) and the 
Smithsonian Institution, to the extent of any election under paragraph 
(1), shall conduct its employment and pay practices relating to 
employees in accordance with the Panama Canal Employment System.
    ``(3) Notwithstanding any other provision of this Act or the Panama 
Canal Act Amendments of 1996, this subchapter, as last in effect before 
the effective date of section 3530 of the Panama Canal Act Amendments 
of 1996, shall continue to apply to an Executive agency or the 
Smithsonian Institution to the extent of an election under paragraph 
(1) by the head of agency or the Institution, respectively.
    ``(c) The Commission may exclude any employee or position from 
coverage under any provision of this subchapter, other than the 
interchange rights extended under subsection (a)(4).''.
    (b) Savings Provisions.--The Panama Canal Employment System and all 
elections, rules, regulations, and orders relating thereto, as last in 
effect before the amendment made by subsection (a) takes effect, shall 
continue in effect, according to their terms, until modified, 
terminated, or superseded under section 1212 of the Panama Canal Act of 
1979, as amended by subsection (a).
SEC. 3531. EMPLOYMENT STANDARDS.
    Section 1213 (22 U.S.C. 3653) is amended in the first sentence by 
striking ``The head of each agency'' and inserting ``The Commission''.
SEC. 3532. REPEAL OF OBSOLETE PROVISION REGARDING INTERIM APPLICATION 
OF CANAL ZONE MERIT SYSTEM.
    Section 1214 (22 U.S.C. 3654) is repealed.
SEC. 3533. REPEAL OF PROVISION RELATING TO RECRUITMENT AND RETENTION 
REMUNERATION.
    Section 1217(d) (22 U.S.C. 3657(d)) is repealed.
SEC. 3534. BENEFITS BASED ON BASIC PAY.
    Section 1218(2) (22 U.S.C. 3658(2)) is amended to read as follows:
        ``(2) benefits under subchapter III of chapter 83 or chapter 84 
    of title 5, United States Code, relating to retirement;''.
SEC. 3535. VESTING OF GENERAL ADMINISTRATIVE AUTHORITY OF COMMISSION.
    Section 1223 (22 U.S.C. 3663) is amended to read as follows:


                        ``central examining office

    ``Sec. 1223. The Commission shall establish a Central Examining 
Office. The purpose of the office shall be to implement the provisions 
of the Panama Canal Treaty of 1977 and related agreements with respect 
to recruitment, examination, determination of qualification standards, 
and similar matters relating to employment of the Commission.''.
SEC. 3536. APPLICABILITY OF CERTAIN LAWS.
    Section 1224 (22 U.S.C. 3664) is amended to read as follows:


              ``applicability of title 5, united states code

    ``Sec. 1224. The following provisions of title 5, United States 
Code, apply to the Panama Canal Commission:
        ``(1) Part I of title 5 (relating to agencies generally).
        ``(2) Chapter 21 (relating to employee definitions).
        ``(3) Section 2302(b)(8) (relating to whistleblower protection) 
    and all provisions of title 5 relating to the administration or 
    enforcement or any other aspect thereof, as identified in 
    regulations prescribed by the Commission in consultation with the 
    Office of Personnel Management.
        ``(4) All provisions relating to preference eligibles.
        ``(5) Section 5514 (relating to offset from salary).
        ``(6) Section 5520a (relating to garnishments).
        ``(7) Sections 5531-5535 (relating to dual pay and employment).
        ``(8) Subchapter VI of chapter 55 (relating to accumulated and 
    accrued leave).
        ``(9) Subchapter IX of chapter 55 (relating to severance and 
    back pay).
        ``(10) Chapter 57 (relating to travel, transportation, and 
    subsistence).
        ``(11) Chapter 59 (relating to allowances).
        ``(12) Chapter 63 (relating to leave for CONUS employees).
        ``(13) Section 6323 (relating to military leave; Reserves and 
    National Guardsmen).
        ``(14) Chapter 71 (relating to labor relations).
        ``(15) Subchapters II and III of chapter 73 (relating to 
    employment limitations and political activities, respectively) and 
    all provisions of title 5 relating to the administration or 
    enforcement or any other aspect thereof, as identified in 
    regulations prescribed by the Commission in consultation with the 
    Office of Personnel Management.
        ``(16) Chapter 81 (relating to compensation for work injuries).
        ``(17) Chapters 83 and 84 (relating to retirement).
        ``(18) Chapter 85 (relating to unemployment compensation).
        ``(19) Chapter 87 (relating to life insurance).
        ``(20) Chapter 89 (relating to health insurance).''.
SEC. 3537. REPEAL OF PROVISION RELATING TO TRANSFERRED OR REEMPLOYED 
EMPLOYEES.
    Section 1231(a)(3) (22 U.S.C. 3671(a)(3)) is repealed.
SEC. 3538. ADMINISTRATION OF SPECIAL DISABILITY BENEFITS.
    Section 1245 (22 U.S.C. 3682) is amended by striking so much as 
precedes subsection (b) and inserting the following:


             ``administration of certain disability benefits

    ``Sec. 1245. (a)(1) The Commission, or any other United States 
Government agency or private entity acting pursuant to an agreement 
with the Commission, under the Act entitled `An Act authorizing cash 
relief for certain employees of the Panama Canal not coming within the 
provisions of the Canal Zone Retirement Act', approved July 8, 1937 (50 
Stat. 478; 68 Stat. 17), may continue the payments of cash relief to 
those individual former employees of the Canal Zone Government or 
Panama Canal Company or their predecessor agencies not coming within 
the scope of the former Canal Zone Retirement Act whose services were 
terminated prior to October 5, 1958, because of unfitness for further 
useful service by reason of mental or physical disability resulting 
from age or disease.
    ``(2) Subject to subsection (b), cash relief under this subsection 
may not exceed $1.50 per month for each year of service of the 
employees so furnished relief, with a maximum of $45 per month, plus 
the amount of any cost-of-living increases in such cash relief granted 
before October 1, 1979, pursuant to section 181 of title 2 of the Canal 
Zone Code (as in effect on September 30, 1979), nor be paid to any 
employee who, at the time of termination for disability prior to 
October 5, 1958, had less than 10 years' service with the Canal Zone 
Government, the Panama Canal Company, or their predecessor agencies on 
the Isthmus of Panama.''.
SEC. 3539. PANAMA CANAL REVOLVING FUND.
    Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 3712) is 
amended to read as follows:


                      ``panama canal revolving fund

    ``Sec. 1302. (a) There is established in the Treasury of the United 
States a revolving fund to be known as `Panama Canal Revolving Fund'. 
The Panama Canal Revolving Fund shall, subject to subsection (b), be 
available to the Commission to carry out the purposes, functions, and 
powers authorized by this Act, including for--
        ``(1) the hire of passenger motor vehicles and aircraft;
        ``(2) uniforms or allowances therefor;
        ``(3) official receptions and representation expenses of the 
    Board, the Secretary of the Commission, and the Administrator;
        ``(4) the operation of guide services;
        ``(5) a residence for the Administrator;
        ``(6) disbursements by the Administrator for employee and 
    community projects;
        ``(7) the procurement of expert and consultant services;
        ``(8) promotional activities, including the preparation, 
    distribution, or use of any kit, pamphlet, booklet, publication, 
    radio, television, film, or other media presentation designed to 
    promote the Panama Canal as a resource of the world shipping 
    industry; and
        ``(9) the purchase and transportation to the Republic of Panama 
    of passenger motor vehicles, including large, heavy-duty vehicles.
    ``(b)(1) There shall be deposited in the Panama Canal Revolving 
Fund, on a continuing basis, toll receipts (other than amounts of toll 
receipts deposited into the Panama Canal Commission Dissolution Fund 
under section 1305) and all other receipts of the Commission. Except as 
provided in section 1303, no funds may be obligated or expended by the 
Commission inany fiscal year unless such obligation or expenditure has 
been specifically authorized by law.
    ``(2) No funds may be authorized for the use of the Commission, or 
obligated or expended by the Commission in any fiscal year; in excess 
of--
        ``(A) the amount of revenues deposited in the Panama Canal 
    Revolving Fund and the Panama Canal Commission Dissolution Fund 
    during such fiscal year; plus
        ``(B) the amount of revenues deposited in the Panama Canal 
    Revolving Fund before such fiscal year and remaining unobligated at 
    the beginning of such fiscal year; plus
        ``(C) the $100,000,000 borrowing authority provided for in 
    section 1304 of this Act.
Not later than 30 days after the end of each fiscal year, the Secretary 
of the Treasury shall report to the Congress the amount of revenues 
deposited in the Panama Canal Revolving Fund during such fiscal year.
    ``(c) With the approval of the Secretary of the Treasury, the 
Commission may deposit amounts in the Panama Canal Revolving Fund in 
any Federal Reserve bank, any depositary for public funds, or such 
other place and in such manner as the Commission and the Secretary may 
agree.
    ``(d)(1) It is the sense of the Congress that the additional costs 
resulting from the implementation of the Panama Canal Treaty of 1977 
and related agreements should be kept to the absolute minimum level. To 
this end, the Congress declares appropriated costs of implementation to 
be borne by the taxpayers over the life of such Treaty should be kept 
to a level no greater than the March 1979 estimate of those costs 
($870,700,000) presented to the Congress by the executive branch during 
consideration of this Act by the Congress, less personnel retirement 
costs of $205,000,000, which were subtracted and charged to tolls, 
therefore resulting in net taxpayer cost of approximately $665,700,000, 
plus appropriate adjustments for inflation.
    ``(2) It is further the sense of the Congress that the actual costs 
of implementation be consistent with the obligations of the United 
States to operate the Panama Canal safely and efficiently and keep it 
secure.''.

SEC. 3540. PRINTING.

    Title I is amended in chapter 3 (22 U.S.C. 3711 et seq.) by adding 
at the end of subchapter I the following new section:


                                ``printing

    ``Sec. 1306. (a) Section 501 of title 44, United States Code, shall 
not apply to direct purchase by the Commission for its use of printing, 
binding, and blank-book work in the Republic of Panama when the 
Commission determines that such direct purchase is in the best interest 
of the Government.
    ``(b) This section shall not affect the Commission's authority, 
under chapter 5 of title 44, United States Code, to operate a field 
printing plant.''.

SEC. 3541. ACCOUNTING POLICIES.

    (a) Section 1311.--Section 1311(a) (22 U.S.C. 3721(a)) is amended 
by striking out ``the Accounting and Auditing Act of 1950 (31 U.S.C. 65 
et seq.)'' in the first sentence and inserting in lieu thereof 
``chapter 91 of title 31, United States Code,''.
    (b) Section 1313.--Section 1313 (22 U.S.C. 3723) is amended by 
striking out ``the Accounting and Auditing Act of 1950 (31 U.S.C. 65 et 
seq.)'' in subsections (a) and (c) and inserting in lieu thereof 
``chapter 91 of title 31, United States Code,''.

SEC. 3542. INTERAGENCY SERVICES; REIMBURSEMENTS.

    Section 1321(e) (22 U.S.C. 3731(e)) is amended by adding at the end 
the following sentence:
``Notwithstanding the provisions relating to the availability of 
adequate schools contained in section 5924(4)(A) of title 5, United 
States Code, the Commission shall by regulation determine the extent to 
which costs of educational services may be defrayed under this 
subsection.''.

SEC. 3543. POSTAL SERVICE.

    Section 1331 (22 U.S.C. 3741) is amended to read as follows:


                             ``postal service

    ``Sec. 1331. (a) The Commission shall take possession of and 
administer the funds of the Canal Zone postal service and shall assume 
its obligations.
    ``(b) Effective December 1, 1999, neither the Commission nor the 
United States Government shall be responsible for the distribution of 
any accumulated unpaid balances relating to Canal Zone postal-savings 
deposits, postal-savings certificates, and postal money orders.
    ``(c) Mail addressed to the Canal Zone from or through the 
continental United States may be routed by the United States Postal 
Service to the military post offices of the United States Armed Forces 
in the Republic of Panama. Such military post offices shall provide the 
required directory services and shall accept such mail to the extent 
permitted under the Panama Canal Treaty of 1977 and related agreements. 
The Commission shall furnish personnel, records, and other services to 
such military post offices to assure wherever appropriate the 
distribution, rerouting, or return of such mail.''.
SEC. 3544. INVESTIGATION OF ACCIDENTS OR INJURY GIVING RISE TO CLAIM.
    Section 1417(1) (22 U.S.C. 3777(1)) is amended to read as follows:
        ``(1) an investigation of the accident or injury giving rise to 
    the claim has been completed, which shall include a hearing by the 
    Board of Local Inspectors of the Commission; and''.

SEC. 3545. OPERATIONS REGULATIONS.

    Section 1801 (22 U.S.C. 3811) is amended by striking ``President'' 
and inserting ``Commission''.

SEC. 3546. MISCELLANEOUS REPEALS.

    (a) Repeals.--The following provisions are repealed:
        (1) Section 1605 (22 U.S.C. 3795), relating to interim toll 
    adjustment.
        (2) Section 1701 (22 U.S.C. 3801), relating to the authority of 
    the President to prescribe certain regulations.
        (3) Section 1702 (22 U.S.C. 3802), relating to the authority of 
    the Panama Canal Commission to prescribe certain regulations.
        (4) Title II (22 U.S.C. 3841-3852), relating to the Treaty 
    transition period.
        (5) Chapter 1 of title III (22 U.S.C. 3861), relating to 
    cemeteries.
        (6) Section 1246, relating to appliances for certain injured 
    employees.
        (7) Section 1251, relating to leave for jury or witness 
    service.
        (8) Section 1301, relating to Canal Zone Government funds.
        (9) Section 1313(c), relating to audits.
    (b) Conforming Amendments.--Section 1313 is further amended by 
redesignating subsections (d) and (e) as subsections (c) and (d), 
respectively.

SEC. 3547. EXEMPTION FROM METRIC CONVERSION ACT OF 1975.

    Section 3302 is amended to read as follows:


              ``exemption from metric conversion act of 1975

    ``Sec. 3302. The Commission is exempt from the provisions of the 
Metric Conversion Act of 1975 (15 U.S.C. 205a et seq.).''.

SEC. 3548. CONFORMING AND CLERICAL AMENDMENTS.

    (a) Title 5 Employment Law.--Title 5, United States Code, is 
amended as follows:
        (1) Section 3401(1) is amended--
            (A) by striking out clause (v); and
            (B) by redesignating clauses (vi), (vii), and (viii) as 
        clauses (v), (vi), and (vii), respectively.
        (2) Section 5102 is amended--
            (A) in subsection (a)(1)--
                (i) by striking out clause (vi); and
                (ii) by redesignating clauses (vii), (viii), (ix), (x), 
            and (xi) as clauses (vi), (vii), (viii), (ix), and (x), 
            respectively; and
            (B) in subsection (c), by striking out paragraph (12).
        (3) Subchapter IV of chapter 53 is amended--
            (A) in section 5342(a)(1)--
                (i) by striking out subparagraph (G); and
                (ii) by redesignating subparagraphs (H), (I), (J), (K), 
            and (L) as subparagraphs (G), (H), (I), (J), and (K) 
            respectively;
            (B) in section 5343(a)(5), by striking out ``the areas and 
        installations in the Republic of Panama'' and all that follows 
        through ``Panama Canal Act of 1979),''; and
            (C) in section 5348--
                (i) by striking out subsection (b);
                (ii) by redesignating subsection (c) as subsection (b); 
            and
                (iii) in subsection (a), by striking out ``subsections 
            (b) and (c)'' and inserting in lieu thereof ``sub- section 
            (b)''.
        (4) Section 5373 is amended--
            (A) by striking out paragraph (1); and
            (B) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (1), (2), and (3) respectively.
        (5) Section 5537(c) is amended by striking out ``the United 
    States District Court for the District of the Canal Zone, the 
    District Court of Guam, and the District Court of the Virgin 
    Islands.'' and inserting in lieu thereof ``the District Court of 
    Guam and the District Court of the Virgin Islands.''.
        (6) Section 5541(2)(xii) is amended--
            (A) by inserting ``or'' after ``Services Admini- 
        stration,''; and
            (B) by striking out ``, or a vessel employee of the Panama 
        Canal Commission'';
        (7) Section 5924(3) is amended by striking out the last 
    sentence.
        (8) Section 6322(a) is amended--
            (A) by striking out ``Puerto Rico,'' and inserting in lieu 
        thereof ``Puerto Rico or''; and
            (B) by striking out ``, or the Republic of Panama''.
        (9) Section 7901(f) is amended to read as follows:
    ``(f) The health programs conducted by the Tennessee Valley 
Authority are not affected by this section.''.
    (b) Cross References in Panama Canal Act.--
        (1) Section 1211(1)(B) (22 U.S.C. 3651(1)(B)) is amended by 
    striking out ``section 1212(B)(2)'' and inserting in lieu thereof 
    ``section 1212(b)''.
        (2) Section 1303 (22 U.S.C. 3713) is amended by striking out 
    ``section 1302(c)(1)'' both places it appears and inserting in lieu 
    thereof ``section 1302(b)(1)''.
        (3) Section 1341(f) (22 U.S.C. 3751(f)) is amended by striking 
    out ``section 1302(c)'' and inserting in lieu thereof ``section 
    1302(b)''.
    (c) Section Headings.--
        (1) The heading of section 3 (22 U.S.C. 3602) is amended to 
    read as follows:


                             ``definitions''.

        (2) The heading of section 1245 (22 U.S.C. 3682) is amended to 
    read as follows:


            ``administration of certain disability benefits''.

    (d) Table of Contents.--The table of contents in section 1 is 
amended as follows:
        (1) The items relating to sections 1101, 1102a, 1102b, and 1313 
    are amended by inserting ``Sec.'' before the section number.
        (2) The item relating to section 3 is amended to read as 
    follows:
``Sec. 3. Definitions.''.

        (3) The item relating to section 1104 is amended to read as 
    follows:
``Sec. 1104. Deputy Administrator.''.

        (4) The items relating to sections 1209 and 1210 are amended to 
    read as follows:
``Sec. 1209. Applicability of certain benefits.
``Sec. 1210. Travel and transportation.''.

        (5) The items relating to sections 1223 and 1224 are amended to 
    read as follows:
``Sec. 1223. Central Examining Office.
``Sec. 1224. Applicability of title 5, United States Code.''.

        (6) The item relating to section 1245 is amended to read as 
    follows:
``Sec. 1245. Administration of certain disability benefits.''.

        (7) The item relating to section 3302 is amended to read as 
    follows:
``Sec. 3302. Exemption from Metric Conversion Act of 1975.''.

        (8) Such table of contents is further amended by inserting 
    after the item relating to section 1305 the following new item:
``Sec. 1306. Printing.''.

        (9) Such table of contents is further amended--
            (A) by striking out the items relating to sections 1214, 
        1246, 1251, 1301, 1605, 1701, 1702, 2101, 2201, 2202, 2203, 
        2204, 2205, 2206, 2301, 2401, 2402, and 3101; and
            (B) by striking out the items relating to the heading of 
        title II, the headings of chapters 1, 2, 3, and 4 of such 
        title, and the heading of chapter 1 of title III.

SEC. 3549. REPEAL OF PANAMA CANAL CODE.

    The Panama Canal Code is repealed.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.