    [Congressional Bills 104th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 3230 Reported in House (RH)]

                                                     Union Calendar No. 276

    104th CONGRESS

      2d Session

                                   H. R. 3230

                              [Report No. 104-563]

    _______________________________________________________________________

                                     A BILL

         To authorize appropriations for fiscal year 1997 for military
        activities of the Department of Defense, to prescribe military
       personnel strengths for fiscal year 1997, and for other purposes.

    _______________________________________________________________________

                                  May 7, 1996

    Reported with amendments, committed to the Committee of the Whole House
              on the State of the Union, and ordered to be printed
                                                     Union Calendar No. 276
    104th CONGRESS
      2d Session
                                    H. R. 3230

                              [Report No. 104-563]

         To authorize appropriations for fiscal year 1997 for military
        activities of the Department of Defense, to prescribe military
       personnel strengths for fiscal year 1997, and for other purposes.

    _______________________________________________________________________

                        IN THE HOUSE OF REPRESENTATIVES

                                 April 15, 1996

     Mr. Spence (for himself and Mr. Dellums) (both by request) introduced
      the following bill; which was referred to the Committee on National
                                    Security

                                  May 7, 1996

    Reported with amendments, committed to the Committee of the Whole House
              on the State of the Union, and ordered to be printed
     [Strike out all after the enacting clause and insert the part printed
                                   in italic]
     [For text of introduced bill, see copy of bill as introduced on April
                                   15, 1996]

    _______________________________________________________________________

                                     A BILL

         To authorize appropriations for fiscal year 1997 for military
        activities of the Department of Defense, to prescribe military
       personnel strengths for fiscal year 1997, 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 certain aircraft.
    Sec. 112. Multiyear procurement authority for Army programs.

                           Subtitle C--Navy Programs

    Sec. 121. Nuclear attack submarine programs.
    Sec. 122. Cost limitations for Seawolf submarine program.
    Sec. 123. Pulse Doppler Radar modification.
    Sec. 124. Reduction in number of vessels excluded from limit on
                                purchase of vessels built in foreign
                                shipyards.
    Sec. 125. T-39N trainer aircraft for the Navy.

                         Subtitle D--Air Force Programs

    Sec. 141. Repeal of limitation on procurement of F-15E aircraft.
    Sec. 142. C-17 aircraft procurement.

             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.

        Subtitle B--Program Requirements, Restrictions, and Limitations

    Sec. 211. Space launch modernization.
    Sec. 212. Live-fire survivability testing of V-22 aircraft.
    Sec. 213. Live-fire survivability testing of F-22 aircraft.
    Sec. 214. Demilitarization of conventional munitions, rockets, and
                                explosives.
    Sec. 215. Research activities of the Defense Advanced Research Projects
                                Agency relating to chemical and biological
                                warfare defense technology.
    Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance
                                aircraft.
    Sec. 217. Unmanned aerial vehicles.
    Sec. 218. Hydra-70 rocket product improvement program.
    Sec. 219. Space-Based Infrared System program.
    Sec. 220. Joint Advanced Strike Technology (JAST) program.
    Sec. 221. Joint United States-Israeli Nautilus Laser/Theater High
                                Energy Laser program.
    Sec. 222. Nonlethal weapons research and development program.

                 Subtitle C--Ballistic Missile Defense Programs

    Sec. 231. Funding for Ballistic Missile Defense programs for fiscal
                                year 1997.
    Sec. 232. Certification of capability of United States to defend
                                against single ballistic missile.
    Sec. 233. Policy on compliance with the ABM Treaty.
    Sec. 234. Requirement that multilateralization of the ABM Treaty be
                                done only through treaty-making power.
    Sec. 235. Report on ballistic missile defense and proliferation.
    Sec. 236. Revision to annual report on Ballistic Missile Defense
                                programs.
    Sec. 237. ABM Treaty defined.
    Sec. 238. Capability of National Missile Defense system.

                           Subtitle D--Other Matters

    Sec. 241. Uniform procedures and criteria for maintenance and repair at
                                Air Force installations.
    Sec. 242. Requirements relating to Small Business Innovation Research
                                Program.
    Sec. 243. Extension of deadline for delivery of Enhanced Fiber Optic
                                Guided Missile (EFOG-M) system.
    Sec. 244. Amendment to University Research Initiative Support program.
    Sec. 245. Amendments to Defense Experimental Program To Stimulate
                                Competitive Research.
    Sec. 246. Elimination of report on the use of competitive procedures
                                for the award of certain contracts to
                                colleges and universities.
    Sec. 247. 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.

                       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. Exclusion of large maintenance and repair projects from
                                percentage limitation on contracting for
                                depot-level maintenance.

                      Subtitle C--Environmental Provisions

    Sec. 321. Repeal of report on contractor reimbursement costs.
    Sec. 322. Payments of stipulated penalties assessed under CERCLA.
    Sec. 323. Conservation and Readiness Program.
    Sec. 324. Navy compliance with shipboard solid waste control
                                requirements.
    Sec. 325. Authority to develop and implement land use plans for Defense
                                Environmental Restoration Program.
    Sec. 326. Pilot program to test alternative technologies for limiting
                                air emissions during shipyard blasting and
                                coating operations.
    Sec. 327. Navy program to monitor ecological effects of organotin.

    Subtitle D--Civilian Employees and Nonappropriated Fund Instrumentality
                                   Employees

    Sec. 331. Repeal of prohibition on payment of lodging expenses when
                                adequate Government quarters are available.
    Sec. 332. Voluntary separation incentive pay modification.
    Sec. 333. Wage-board compensatory time off.
    Sec. 334. Simplification of rules relating to the observance of certain
                                holidays.
    Sec. 335. Phased retirement.
    Sec. 336. Modification of authority for civilian employees of
                                Department of Defense to participate
                                voluntarily in reductions in force.

      Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

    Sec. 341. Contracts with other agencies and instrumentalities for goods
                                and services.
    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 F--Performance of Functions by Private-Sector Sources

    Sec. 351. Extension of requirement for competitive procurement of
                                printing and duplication services.
    Sec. 352. Requirement regarding use of private shipyards for complex
                                naval ship repair contracts.

                           Subtitle G--Other Matters

    Sec. 360. Termination of Defense Business Operations Fund and
                                preparation of plan regarding improved
                                operation of working-capital funds.
    Sec. 361. Increase in capital asset threshold under Defense Business
                                Operations Fund.
    Sec. 362. Transfer of excess personal property to support law
                                enforcement activities.
    Sec. 363. Storage of motor vehicle in lieu of transportation.
    Sec. 364. Control of transportation systems in time of war.
    Sec. 365. Security protections at Department of Defense facilities in
                                National Capital Region.
    Sec. 366. Modifications to Armed Forces Retirement Home Act of 1991.
    Sec. 367. Assistance to local educational agencies that benefit
                                dependents of members of the Armed Forces
                                and Department of Defense civilian
                                employees.
    Sec. 368. Retention of civilian employee positions at military training
                                bases transferred to National Guard.
    Sec. 369. Expansion of authority to donate unusable food.

                  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.

                           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.

                  Subtitle C--Authorization of Appropriations

    Sec. 421. Authorization of appropriations for military personnel.

                       TITLE V--MILITARY PERSONNEL POLICY

                        Subtitle A--Personnel Management

    Sec. 501. Authorization for senior enlisted members to reenlist for an
                                indefinite period of time.
    Sec. 502. Authority to extend entry on active duty under the Delayed
                                Entry Program.
    Sec. 503. Permanent authority for Navy spot promotions for certain
                                lieutenants.
    Sec. 504. Reports on response to recommendations concerning
                                improvements to Department of Defense Joint
                                Manpower Process.
    Sec. 505. Frequency of reports to Congress on Joint Officer Management
                                Policies.
    Sec. 506. Repeal of requirement that commissioned officers be initially
                                appointed in a reserve grade.
    Sec. 507. Continuation on active status for certain reserve officers of
                                the Air Force.

                     Subtitle B--Reserve Component Matters

    Sec. 511. Individual Ready Reserve activation authority.
    Sec. 512. Training for reserves on active duty in support of the
                                reserves.
    Sec. 513. Clarification to definition of active status.
    Sec. 514. Appointment above grade of 0-2 in the Naval Reserve.
    Sec. 515. Report on number of advisers in active component support of
                                reserves pilot program.
    Sec. 516. Sense of Congress and report regarding reemployment rights
                                for mobilized reservists employed in
                                foreign countries.

    Subtitle C--Jurisdiction and Powers of Courts-Martial for the National
                       Guard When Not in Federal Service

    Sec. 531. Composition, jurisdiction, and procedures of courts-martial.
    Sec. 532. General courts-martial.
    Sec. 533. Special courts-martial.
    Sec. 534. Summary courts-martial.
    Sec. 535. Repeal of authority for confinement in lieu of fine.
    Sec. 536. Approval of sentence of bad conduct discharge or confinement.
    Sec. 537. Authority of military judges.
    Sec. 538. Statutory reorganization.
    Sec. 539. Effective date.
    Sec. 540. Conforming amendments to Uniform Code of Military Justice.

                  Subtitle D--Education and Training Programs

    Sec. 551. Extension of maximum age for appointment as a cadet or
                                midshipman in the Senior Reserve Officers'
                                Training Corps and the service academies.
    Sec. 552. Oversight and management of Senior Reserve Officers' Training
                                Corps program.
    Sec. 553. ROTC scholarship student participation in simultaneous
                                membership program.
    Sec. 554. Expansion of ROTC advanced training program to include
                                graduate students.
    Sec. 555. Reserve credit for members of Armed Forces Health Professions
                                Scholarship and Financial Assistance
                                Program.
    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 E--Other Matters

    Sec. 561. Hate crimes in the military.
    Sec. 562. Authority of a reserve judge advocate to act as a notary
                                public.
    Sec. 563. Authority to provide legal assistance to Public Health
                                Service officers.
    Sec. 564. Excepted appointment of certain judicial non-attorney staff
                                in the United States Court of Appeals for
                                the Armed Forces.
    Sec. 565. Replacement of certain American theater campaign ribbons.
    Sec. 566. Restoration of regulations prohibiting service of homosexuals
                                in the Armed Forces.
    Sec. 567. Reenactment and modification of mandatory separation from
                                service for members diagnosed with HIV-1
                                virus.

              TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

    Sec. 601. Military pay raise for fiscal year 1997.
    Sec. 602. Availability of basic allowance for quarters for certain
                                members without dependents who serve on sea
                                duty.
    Sec. 603. Establishment of minimum monthly amount of variable housing
                                allowance for high housing cost areas.

               Subtitle B--Bonuses and Special and Incentive Pays

    Sec. 611. Extension of certain bonuses for reserve forces.
    Sec. 612. Extension of certain bonuses and special pay for nurse
                                officer candidates, registered nurses, and
                                nurse anesthetists.
    Sec. 613. Extension of authority relating to payment of other bonuses
                                and special pays.
    Sec. 614. Special incentives to recruit and retain dental officers.

                Subtitle C--Travel and Transportation Allowances

    Sec. 621. Temporary lodging expenses of member in connection with first
                                permanent change of station.
    Sec. 622. Allowance in connection with shipping motor vehicle at
                                government expense.
    Sec. 623. Dislocation allowance at a rate equal to two and one-half
                                months basic allowance for quarters.
    Sec. 624. Allowance for travel performed in connection with leave
                                between consecutive overseas tours.

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

    Sec. 631. Increase in annual limit on days of inactive duty training
                                creditable towards reserve retirement.
    Sec. 632. Authority for retirement in grade in which a member has been
                                selected for promotion when a physical
                                disability intervenes.
    Sec. 633. Eligibility for reserve disability retirement for reserves
                                injured while away from home overnight for
                                inactive-duty training.
    Sec. 634. Retirement of reserve enlisted members who qualify for active
                                duty retirement after administrative
                                reduction in enlisted grade.
    Sec. 635. Clarification of initial computation of retiree colas after
                                retirement.
    Sec. 636. Technical correction to prior authority for payment of back
                                pay to certain persons.
    Sec. 637. Amendments to the Uniformed Services Former Spouses'
                                Protection Act.
    Sec. 638. Administration of benefits for so-called minimum income
                                widows.
    Sec. 639. Nonsubstantive restatement of Survivor Benefit Plan statute.

                           Subtitle E--Other Matters

    Sec. 651. Technical correction clarifying ability of certain members to
                                elect not to occupy Government quarters.
    Sec. 652. Technical correction clarifying limitation on furnishing
                                clothing or allowances for enlisted
                                National Guard technicians.

                       TITLE VII--HEALTH CARE PROVISIONS

                        Subtitle A--Health Care Services

    Sec. 701. Medical and dental care for reserve component members in a
                                duty status.

                          Subtitle B--TRICARE Program

    Sec. 711. Definition of TRICARE program.
    Sec. 712. CHAMPUS payment limits for TRICARE prime enrollees.
    Sec. 713. Improved information exchange between military treatment
                                facilities and TRICARE program contractors.

              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. Authority to waive or reduce CHAMPUS deductible amounts for
                                reservists called to active duty in support
                                of contingency operations.
    Sec. 733. Exception to maximum allowable payments to individual health-
                                care providers under CHAMPUS.
    Sec. 734. Codification of annual authority to credit CHAMPUS refunds to
                                current year appropriation.
    Sec. 735. Exceptions to requirements regarding obtaining
                                nonavailability-of-health-care statements.
    Sec. 736. Expansion of collection authorities from third-party payers.

                           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. Exception to strength limitations for Public Health Service
                                officers assigned to Department of Defense.
    Sec. 743. Continued operation of Uniformed Services University of the
                                Health Sciences.
    Sec. 744. Sense of Congress regarding tax treatment of Armed Forces
                                Health Professions Scholarship and
                                Financial Assistance program.
    Sec. 745. Report regarding specialized treatment facility program.

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

                       Subtitle A--Acquisition Management

    Sec. 801. Authority to waive certain requirements for defense
                                acquisition pilot programs.
    Sec. 802. Exclusion from certain post-education duty assignments for
                                members of Acquisition Corps.
    Sec. 803. Extension of authority to carry out certain prototype
                                projects.
    Sec. 804. Increase in threshold amounts for major systems.
    Sec. 805. Revisions in information required to be included in Selected
                                Acquisition Reports.
    Sec. 806. Increase in simplified acquisition threshold for humanitarian
                                or peacekeeping operations.
    Sec. 807. Expansion of audit reciprocity among Federal agencies to
                                include post-award audits.
    Sec. 808. Extension of pilot mentor-protege program.

                           Subtitle B--Other Matters

    Sec. 821. Amendment to definition of national security system under
                                Information Technology Management Reform
                                Act of 1995.
    Sec. 822. Prohibition on release of contractor proposals under Freedom
                                of Information Act.
    Sec. 823. Repeal of annual report by advocate for competition.
    Sec. 824. Repeal of biannual report on procurement regulatory activity.
    Sec. 825. Repeal of multiyear limitation on contracts for inspection,
                                maintenance, and repair.
    Sec. 826. Streamlined notice requirements to contractors and employees
                                regarding termination or substantial
                                reduction in contracts under major defense
                                programs.
    Sec. 827. Repeal of notice requirements for substantially or seriously
                                affected parties in downsizing efforts.
    Sec. 828. Testing of defense acquisition programs.
    Sec. 829. Dependency of national technology and industrial base on
                                supplies available only from foreign
                                countries.
    Sec. 830. Sense of Congress regarding treatment of Department of
                                Defense cable television franchise
                                agreements.
    Sec. 831. Extension of domestic source limitation for valves and
                                machine tools.

          TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

    Sec. 901. Additional required reduction in defense acquisition
                                workforce.
    Sec. 902. Reduction of personnel assigned to Office of the Secretary of
                                Defense.
    Sec. 903. Report on military department headquarters staffs.
    Sec. 904. Extension of effective date for charter for Joint
                                Requirements Oversight Council.
    Sec. 905. Removal of Secretary of the Army from membership on the
                                Foreign Trade Zone Board.
    Sec. 906. Membership of the Ammunition Storage Board.
    Sec. 907. Department of Defense disbursing official check cashing and
                                exchange transactions.

                          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 budget requests for Defense Airborne
                                Reconnaissance program.

                        Subtitle B--Reports and Studies

    Sec. 1021. Annual report on Operation Provide Comfort and Operation
                                Enhanced Southern Watch.
    Sec. 1022. Report on protection of national information infrastructure.
    Sec. 1023. Report on witness interview procedures for Department of
                                Defense criminal investigations.

                           Subtitle C--Other Matters

    Sec. 1031. Information systems security program.
    Sec. 1032. Aviation and vessel war risk insurance.
    Sec. 1033. Aircraft accident investigation boards.
    Sec. 1034. Authority for use of appropriated funds for recruiting
                                functions.
    Sec. 1035. Authority for award of Medal of Honor to certain African
                                American soldiers who served during World
                                War II.
    Sec. 1036. Compensation for persons awarded prisoner of war medal who
                                did not previously receive compensation as
                                a prisoner of war.
    Sec. 1037. George C. Marshall European Center For Strategic Security
                                Studies.
    Sec. 1038. Participation of members, dependents, and other persons in
                                crime prevention efforts at installations.
    Sec. 1039. Technical and clerical amendments.
    Sec. 1040. Prohibition on carrying out SR-71 strategic reconnaissance
                                program during fiscal year 1997.

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

    Sec. 1101. Specification of Cooperative Threat Reduction programs.
    Sec. 1102. Fiscal year 1997 funding allocations.
    Sec. 1103. Prohibition on use of funds for specified purposes.
    Sec. 1104. Limitation on funds.
    Sec. 1105. Availability of funds.

                    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.
    Sec. 1215. Technical amendment reflecting prior revision to National
                                Guard Bureau charter.

                  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. Codification of annual authority to pay transient housing
                                charges or provide lodging in kind for
                                members performing active duty for training
                                or inactive-duty 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. Commendation of Reserve Forces Policy Board.
    Sec. 1256. Report on parity of benefits for active duty service and
                                reserve service.

                  TITLE XIII--ARMS CONTROL AND RELATED MATTERS

                       Subtitle A--Miscellaneous Matters

    Sec. 1301. One-year extension of counterproliferation authorities.
    Sec. 1302. Limitation on retirement or dismantlement of strategic
                                nuclear delivery systems.
    Sec. 1303. Certification required before observance of moratorium on
                                use by Armed Forces of antipersonnel
                                landmines.
    Sec. 1304. Department of Defense demining program.
    Sec. 1305. Report on military capabilities of People's Republic of
                                China.
    Sec. 1306. United States-People's Republic of China Joint Defense
                                Conversion Commission.
    Sec. 1307. Authority to accept services from foreign governments and
                                international organizations for defense
                                purposes.
    Sec. 1308. 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--SIKES ACT IMPROVEMENT

    Sec. 1401. Short title.
    Sec. 1402. Definition of Sikes Act for purposes of amendments.
    Sec. 1403. Codification of short title of Act.
    Sec. 1404. Integrated natural resource management plans.
    Sec. 1405. Review for preparation of integrated natural resource
                                management plans.
    Sec. 1406. Annual reviews and reports.
    Sec. 1407. Transfer of wildlife conservation fees from closed military
                                installations.
    Sec. 1408. Federal enforcement of integrated natural resource
                                management plans and enforcement of other
                                laws.
    Sec. 1409. Natural resource management services.
    Sec. 1410. Definitions.
    Sec. 1411. Cooperative agreements.
    Sec. 1412. Repeal of superseded provision.
    Sec. 1413. Clerical amendments.
    Sec. 1414. Authorizations of appropriations.

                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. Correction in authorized uses of funds, Fort Irwin,
                                California.

                                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. 2206. Lease to facilitate construction of reserve center, Naval
                                Air Station, Meridian, Mississippi.

                             TITLE XXIII--AIR FORCE

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

                          TITLE XXIV--DEFENSE AGENCIES

    Sec. 2401. Authorized Defense Agencies construction and land
                                acquisition projects.
    Sec. 2402. 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.

       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.

            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 and Military Family Housing

    Sec. 2801. North Atlantic Treaty Organization Security Investment
                                Program.
    Sec. 2802. Authority to demolish excess facilities.
    Sec. 2803. Improvements to family housing units.

                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.

                          Subtitle C--Land Conveyances

                            Part I--Army Conveyances

    Sec. 2821. Transfer and exchange of jurisdiction, Arlington National
                                Cemetery, Arlington, Virginia.
    Sec. 2822. Land conveyance, Army Reserve Center, Rushville, Indiana.
    Sec. 2823. Land conveyance, Army Reserve Center, Anderson, South
                                Carolina.

                           Part II--Navy Conveyances

    Sec. 2831. Release of condition on reconveyance of transferred land,
                                Guam.
    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.

                        Part III--Air Force Conveyances

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

                           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.

                           Subtitle D--Other Matters

    Sec. 2861. 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. Designation of Michael O'Callaghan Military Hospital.

                     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.

                   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.
    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. Production of high explosives.
    Sec. 3134. Limitation on use of funds by laboratories for laboratory-
                                directed research and development.
    Sec. 3135. Prohibition on funding nuclear weapons activities with
                                People's Republic of China.
    Sec. 3136. International cooperative stockpile stewardship programs.
    Sec. 3137. Temporary authority relating to transfers of defense
                                environmental management funds.
    Sec. 3138. Management structure for nuclear weapons production
                                facilities and nuclear weapons
                                laboratories.

                           Subtitle D--Other Matters

    Sec. 3141. Report on nuclear weapons stockpile memorandum.
    Sec. 3142. Report on plutonium pit production and remanufacturing
                                plans.
    Sec. 3143. Amendments relating to baseline environmental management
                                reports.
    Sec. 3144. Requirement to develop future use plans for environmental
                                management program.

        Subtitle E--Defense Nuclear Environmental Cleanup and Management

    Sec. 3151. Purpose.
    Sec. 3152. Covered defense nuclear facilities.
    Sec. 3153. Site manager.
    Sec. 3154. Department of Energy orders.
    Sec. 3155. Deployment of technology for remediation of defense nuclear
                                waste.
    Sec. 3156. Performance-based contracting.
    Sec. 3157. Designation of defense nuclear facilities as national
                                environmental cleanup demonstration areas.

              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.

                        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 expenses.
    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.
    Sec. 3548. Miscellaneous conforming amendments to title 5, United
                                States Code.
    Sec. 3549. Repeal of Panama Canal Code.
    Sec. 3550. Miscellaneous clerical and conforming amendments.

    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

                  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, $1,556,615,000.
                (2) For missiles, $1,027,829,000.
                (3) For weapons and tracked combat vehicles,
            $1,334,814,000.
                (4) For ammunition, $1,160,728,000.
                (5) For other procurement, $2,812,240,000.

    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, $6,668,952,000.
                (2) For weapons, including missiles and torpedoes,
            $1,305,308,000.
                (3) For shipbuilding and conversion, $5,479,930,000.
                (4) For other procurement, $2,871,495,000.
        (b) Marine Corps.--Funds are hereby authorized to be appropriated
    for fiscal year 1997 for procurement for the Marine Corps in the amount
    of $546,748,000.
        (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized
    to be appropriated for procurement of ammunition for Navy and the
    Marine Corps in the amount of $599,239,000.

    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, $7,271,928,000.
                (2) For missiles, $4,341,178,000.
                (3) For ammunition, $303,899,000.
                (4) For other procurement, $6,117,419,000.

    SEC. 104. DEFENSE-WIDE ACTIVITIES.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for Defense-wide procurement in the amount of $1,890,212,000.

    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, $118,000,000.
                (2) For the Air National Guard, $158,000,000.
                (3) For the Army Reserve, $106,000,000.
                (4) For the Naval Reserve, $192,000,000.
                (5) For the Air Force Reserve, $148,000,000.
                (6) For the Marine Corps Reserve, $83,000,000.

    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 $799,847,000 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 CERTAIN AIRCRAFT.

        (a) Apache Helicopters.--Section 132 of the National Defense
    Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189;
    103 Stat. 1383) is repealed.
        (b) OH-58D Armed Kiowa Warrior Helicopters.--Section 133 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 Defense Missile 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).

                           Subtitle C--Navy Programs

    SEC. 121. NUCLEAR ATTACK SUBMARINE PROGRAMS.

        (a) Amounts Authorized From SCN Account.--Of the amount authorized
    by section 102 to be appropriated for Shipbuilding and Conversion,
    Navy, for fiscal year 1997--
                (1) $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;
                (2) $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
                (3) $504,000,000 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.
        (b) Amounts Authorized From Navy RDT&E Account.--(1) Of the amount
    authorized to be appropriated by section 201 for Research, Development,
    Test, and Evaluation, Navy, $489,443,000 is available for the design of
    the submarine previously designated by the Navy as the New Attack
    Submarine. Such funds shall be available for obligation and expenditure
    under 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, updated
    design base, and other research and development initiatives related to
    the design of such submarine.
        (2)(A) Of the amount authorized to be appropriated by section
    201(2), $60,000,000 is available to address the inclusion on future
    nuclear attack submarines of the specific 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 referred to in subparagraph (A), $20,000,000
    shall be equally divided between the two shipyards for the purpose of
    ensuring that the shipyards are principal participants in the process
    of addressing the inclusion of technologies referred to in subparagraph
    (A). The Secretary of the Navy shall ensure that those shipyards 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).
        (4) Of the amount authorized to be appropriated by section 201(2),
    $40,000,000 is available to provide funds for the design improvements
    in accordance with subsection (f), to be equally divided between the
    two shipyards.
        (5)(A) Of the amount authorized to be appropriated by section
    201(2), $50,000,000 is available to initiate the design of a new, next-
    generation nuclear attack submarine, the design of which is not
    intended to be an outgrowth of the submarine program described in
    section 131 of the National Defense Authorization Act for Fiscal Year
    1996 (Public Law 104-106; 110 Stat. 208). Those funds shall be equally
    divided between the two shipyards and shall provide alternatives to the
    design or designs to be derived in accordance with subsection (f). The
    Secretary of the Navy shall compete those alternative designs with the
    design or designs to be derived in accordance with subsection (f) for
    serial production beginning not earlier than fiscal year 2003.
        (B) The design under subparagraph (A) should proceed from, but not
    be limited to, the technology specified in paragraph (2)(A), especially
    with respect to hydrodynamics concepts and technologies. The Secretary
    shall require the two shipyards to submit to the Secretary an annual
    report on the progress of the design work under subparagraph (A) and
    shall transmit each such report to the committees specified in
    subsection (d)(1).
        (c) Contracts Authorized.--(1) The Secretary of the Navy is
    authorized, using funds available pursuant to paragraphs (2) and (3) of
    subsection (a), 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.
        (d) Limitations.--(1) Of the amounts specified in subsection (a),
    not more than $50,000,000 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 to be
    constructed after four submarines are procured as provided for in the
    plan described in section 131(c) of the National Defense Authorization
    Act for fiscal year 1996 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 best value to the Government.
        (2) Of the amounts specified in subsection (a), not more than
    $50,000,000 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.
                (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 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 are designed to or which could, in
            the opinion of the Under Secretary, 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, Newport News
            Shipbuilding, or both.
        (3) Of the amount specified in subsection (b)(1), not more than
    $50,000,000 may be obligated or expended until the Under Secretary of
    Defense (Comptroller) certifies in writing to the congressional
    committees specified in paragraph (1) that the Department has complied
    with section 132 of the National Defense Authorization Act for Fiscal
    Year 1996 and that the funds specified in paragraphs (2), (3), and (4)
    of subsection (b), have been obligated.
        (e) Acquisition Simplification.--(1) In furtherance of the
    direction provided by subsection (d) of section 131 of the National
    Defense Authorization Act for Fiscal Year 1996 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 the acquisition reform initiatives begun by the
    Secretary of the Air Force in May 1995 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 (d)(1) a report on the results of the implementation of such
    initiatives.
        (f) 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 neither of the two shipyards has the lead
    responsibility for submarine design under the program. Each of the two
    shipyards involved in the design and construction of the four
    submarines described in that section shall be allowed to propose to the
    Secretary any design improvement that shipyard considers appropriate
    for the submarines to be built at that shipyard as part of those four
    submarines. Control of the configuration of each of the four submarines
    shall be separately maintained, and there shall be no single design to
    compete for serial production with those designs derived from the
    design work under subsection (b)(5), such competition to occur not
    earlier than fiscal year 2003.
        (2) The Secretary of the Navy shall submit an annual report to the
    committees specified in subsection (d)(1) on the design improvements
    proposed by the two shipyards under paragraph (1) for incorporation on
    any of the four submarines using the funds specified in subsection
    (b)(4). 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.

    SEC. 122. COST LIMITATIONS FOR SEAWOLF SUBMARINE PROGRAM.

        (a) First Two Submarines.--The total amount obligated or expended
    for procurement of the first two Seawolf-class submarines (designated
    as SSN-21 and SSN-22) may not exceed $4,793,557,000.
        (b) Third Submarine.--The total amount obligated or expended for
    procurement of the third Seawolf-class submarine (designated as SSN-23)
    may not exceed $2,430,102,000.
        (c) Automatic Increase in SSN-21 and SSN-22 Limitation Amount.--The
    amount of the limitation set forth in subsection (a) is increased by
    the following amounts:
                (1) The amounts of outfitting costs and post-delivery costs
            incurred for the submarines referred to in that subsection.
                (2) The amounts of increases in costs for those submarines
            attributable to economic inflation after September 30, 1995.
                (3) The amounts of increases in costs for those submarines
            attributable to compliance with changes in Federal, State, or
            local laws enacted after September 30, 1995.
        (d) Automatic Increase in SSN-23 Limitation Amount.--The amount of
    the limitation set forth in subsection (b) is increased by the
    following amounts:
                (1) The amounts of outfitting costs and post-delivery costs
            incurred for the submarine referred to in that subsection.
                (2) The amounts of increases in costs for that submarine
            attributable to economic inflation after September 30, 1995.
                (3) The amounts of increases in costs for that submarine
            attributable to compliance with changes in Federal, State, or
            local laws enacted after September 30, 1995.
        (e) Repeal of Superseded Provision.--Section 133 of the National
    Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
    Stat. 211) is repealed.

    SEC. 123. PULSE DOPPLER RADAR MODIFICATION.

        The Secretary of the Navy shall, to the extent specifically
    provided in an appropriations Act enacted after the date of the
    enactment of this Act, spend $29,000,000 solely for development and
    procurement of the Pulse Doppler Upgrade modification to the AN/SPS-48E
    radar system, to be derived by the Secretary from amounts appropriated
    for Other Procurement, Navy, for fiscal years before fiscal year 1997
    that are unobligated and remain available for obligation.

    SEC. 124. REDUCTION IN NUMBER OF VESSELS EXCLUDED FROM LIMIT ON
                  PURCHASE OF VESSELS BUILT IN FOREIGN SHIPYARDS.

        Section 1023 of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 2838) is amended by striking
    out ``three ships'' and inserting in lieu thereof ``one ship''.

    SEC. 125. T-39N TRAINER AIRCRAFT FOR THE NAVY.

        (a) Procurement.--The Secretary of the Navy shall, 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 only for the acquisition of not less
    than 17 T-39N aircraft for naval flight officer training that are
    suitable for low-level training flights. The Secretary shall use
    procurement procedures authorized under section 2304(c) of title 10,
    United States Code, for a contract under subsection (a). The Secretary
    shall enter into such a contract not later than 15 days after the date
    of the enactment of this Act.
        (b) Conforming Repeal.--Subsection (a) of section 137 of the
    National Defense Authorization Act for Fiscal Year 1996 (Public Law
    104-106; 110 Stat. 212) is repealed.

                         Subtitle D--Air Force Programs

    SEC. 141. 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. 142. C-17 AIRCRAFT PROCUREMENT.

        The Secretary of the Air Force may, in accordance with section
    2306b of title 10, United States Code, enter into a multiyear contract
    under the C-17 aircraft program for the procurement of a total of not
    more than 80 aircraft. Such a contract may (notwithstanding subsection
    (k) of such section 2306b) be entered into for a period of six program
    years, beginning with fiscal year 1997.

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

                  Subtitle A--Authorization of Appropriations

    SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for the use of the Department of Defense for research, development,
    test, and evaluation as follows:
                (1) For the Army, $4,669,979,000.
                (2) For the Navy, $8,189,957,000.
                (3) For the Air Force, $13,271,087,000.
                (4) For Defense-wide activities, $9,406,377,000, of which--
                        (A) $252,038,000 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, $4,088,043,000 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 PROGRAMS.

        (a) Designation of Official for Dual-Use Programs.--The Secretary
    of Defense shall designate a senior official in the Office of the
    Secretary of Defense whose sole responsibility is developing policy
    relating to, and ensuring effective implementation of, dual-use
    programs and the integration of commercial technologies into current
    and future military systems for 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.
        (b) Funding Requirement.--Of the amounts appropriated for the
    Department of Defense for science and technology programs for each of
    fiscal years 1997 through 2000, at least the following percentages of
    such amounts shall be available in the applicable fiscal year only for
    dual-use programs of the Department of Defense:
                (1) For fiscal year 1997, five percent.
                (2) For fiscal year 1998, seven percent.
                (3) For fiscal year 1999, 10 percent.
                (4) For fiscal year 2000, 15 percent.
        (c) Limitation on Obligations.--(1) Except as provided in paragraph
    (2), funds made available pursuant to subsection (b) may not be
    obligated until the senior official designated under subsection (a)
    approves the obligation.
        (2) Paragraph (1) does not apply with respect to funds made
    available pursuant to subsection (b) to the Department of the Air Force
    or to the Defense Advanced Research Projects Agency.
        (d) Transfer Authority.--The Secretary of Defense may transfer
    funds made available pursuant to subsection (b) for a dual-use program
    from a military department or defense agency to another military
    department or defense agency to ensure efficient implementation of the
    program. The Secretary may delegate the authority provided in the
    preceding sentence to the senior official designated under subsection
    (a).
        (e) Federal Cost Share.--(1) The share contributed by the Secretary
    of a military department for the cost of a dual-use program during the
    fiscal years 1997, 1998, 1999, and 2000 may not be greater than 50
    percent.
        (2) In calculating the share of the costs of a dual-use program
    contributed by a military department or a non-Government entity, the
    Secretaries of the military departments may not consider in-kind
    contributions.
        (f) Definitions.--In this section:
                (1) The term ``dual-use program'' means a program of a
            military department--
                        (A) 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
                        (B) the costs of which are shared between the
                    Department of Defense and non-Government entities.
                (2) 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.

        Subtitle B--Program Requirements, Restrictions, and Limitations

    SEC. 211. SPACE LAUNCH MODERNIZATION.

        (a) Allocation of Funds.--Of the amount appropriated pursuant to
    the authorization in section 201(3), $50,000,000 shall be available for
    a competitive reusable launch vehicle technology program (PE 63401F).
        (b) Limitation.--Funds made available pursuant to subsection (a)(1)
    may be obligated only to the extent that the fiscal year 1997 current
    operating plan of the National Aeronautics and Space Administration
    allocates at least an equal amount for its Reusable Space Launch
    Vehicle program.

    SEC. 212. LIVE-FIRE SURVIVABILITY TESTING OF V-22 AIRCRAFT.

        (a) Authority for Retroactive Waiver.--The Secretary of Defense may
    exercise the waiver authority in section 2366(c) of title 10, United
    States Code, with respect to the application of survivability testing
    to the V-22 aircraft system, notwithstanding that such system has
    entered engineering and manufacturing development.
        (b) Report to Congress.--In exercising the waiver authority in
    section 2366(c), the Secretary shall submit to Congress a report
    explaining how the Secretary plans to evaluate the survivability of the
    V-22 aircraft system and assessing possible alternatives to realistic
    survivability testing of the system.
        (c) Alternative Survivability Testing Requirements.--If the
    Secretary of Defense submits a certification under section 2366(c)(2)
    of such title that live-fire testing of the V-22 aircraft system under
    such section would be unreasonably expensive and impractical, the
    Secretary shall require that sufficiently large and realistic
    components and subsystems that could affect the survivability of the V-
    22 aircraft system be made available for any alternative live-fire
    testing of such system.
        (d) Funding.--The funds required to carry out any alternative live-
    fire testing of the V-22 aircraft system shall be made available from
    amounts appropriated for the V-22 program.

    SEC. 213. LIVE-FIRE SURVIVABILITY TESTING OF F-22 AIRCRAFT.

        (a) Authority for Retroactive Waiver.--The Secretary of Defense may
    exercise the waiver authority in section 2366(c) of title 10, United
    States Code, with respect to the application of survivability testing
    to the F-22 aircraft system, notwithstanding that such system has
    entered engineering and manufacturing development.
        (b) Alternative Survivability Testing Requirements.--If the
    Secretary of Defense submits a certification under section 2366(c)(2)
    of such title that live-fire testing of the F-22 aircraft system under
    such section would be unreasonably expensive and impractical, the
    Secretary of Defense shall require that sufficiently large and
    realistic components and subsystems that could affect the survivability
    of the F-22 aircraft system be made available for any alternative live-
    fire testing of such system.
        (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. 214. 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. 215. 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. 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. UNMANNED AERIAL VEHICLES.

        (a) Prohibition.--(1) The Secretary of Defense may not enter into a
    contract for the Joint Tactical Unmanned Aerial Vehicle project, and no
    funds authorized to be appropriated by this Act may be obligated for
    such project, until a period of 30 days has expired after the date on
    which the Secretary of Defense submits to Congress a certification that
    the reconnaissance programs of the Department of Defense--
                (A) are justified on the basis of the projected national
            security threat;
                (B) have been subjected to a roles and missions
            determination;
                (C) are supported by an overall national, joint, and
            tactical reconnaissance plan;
                (D) are affordable within the budget of the Department of
            Defense as projected by the future-years defense program; and
                (E) are fully programmed for in the future-years defense
            program.
        (2) In this subsection, the term `reconnaissance programs of the
    Department of Defense' means programs for tactical unmanned aerial
    vehicles, endurance unmanned aerial vehicles, airborne reconnaissance,
    manned reconnaissance, and distributed common ground systems that--
                (A) are described in the budget justification documents of
            the Defense Airborne Reconnaissance Office;
                (B) are included in the funding request for the Department
            of Defense; or
                (C) are certified as acquisition reconnaissance
            requirements by the Joint Requirements Oversight Council for
            the future-years defense program.
        (b) 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.
        (c) 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.
        (d) 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.
        (e) Funding.--Of the amounts authorized to be appropriated by
    section 201 for program element 35154D, $10,000,000 shall be available
    only for an advanced concepts technology demonstration of air-to-
    surface precision guided munitions employment using a Predator, Hunter,
    or Pioneer unmanned aerial vehicle and a nondevelopmental laser target
    designator.

    SEC. 218. 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, $15,000,000 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 type, along with other nondevelopmental item candidate
            motors that use composite propellent as the propulsion
            component and that have passed initial insensitive munition
            criteria tests.
                (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) and also includes an item the
    flight capability of which has been demonstrated from a current Hydra-
    70 rocket launcher.

    SEC. 219. 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, $180,390,000.
                (2) For Space Segment Low (the Space and Missile Tracking
            System), $247,221,000.
                (3) For Cobra Brass, $6,930,000.
        (b) Limitation.--None of the funds authorized under subsection (a)
    to be made available for the Space-Based Infrared System program may be
    obligated or expended until the Secretary of Defense certifies to
    Congress that the requirements of section 216(a) of Public Law 104-106
    (110 Stat. 220) have been carried out.
        (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. 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,
    $589,069,000 shall be available only for advanced technology
    development for the Joint Advanced Strike Technology (JAST) program. Of
    that amount--
                (1) $246,833,000 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) Limitation.--None of the funds authorized to be appropriated
    pursuant to the authorizations in section 201 may be used for Advanced
    Short Takeoff and Vertical Landing aircraft development.
        (c) Force Structure Analysis.--Of the amount made available under
    subsection (a), up to $10,000,000 shall be available for the conduct of
    an analysis by the Institutes of Defense Analysis of the following:
                (1) The weapons systems force structure requirements to
            meet the projected threat for the period beginning on January
            1, 2000, and ending on December 31, 2025.
                (2) Alternative force structures, including, at a minimum,
            JAST derivative aircraft; remanufactured AV-8 aircraft; F-18C/
            D, F-18E/F, AH-64, AH-1W, F-14, F-16, F-15, F-117, and F-22
            aircraft; and air-to-surface and surface-to-surface weapons
            systems.
                (3) Affordability, effectiveness, commonality, and roles
            and missions alternatives related to the alternative force
            structures analyzed under paragraph (2).
        (d) Cost Review.--The cost analysis and improvement group of the
    Office of the Secretary of Defense shall review cost estimates made
    under the analysis conducted under subsection (c) and shall provide a
    sensitivity analysis for the alternatives evaluated under paragraphs
    (2) and (3) of subsection (c).
        (e) Deadline.--The Secretary of Defense shall submit to the
    congressional defense committees a copy of the analysis conducted under
    subsection (c) and the review conducted under subsection (d) not later
    than February 1, 1997.

    SEC. 221. JOINT UNITED STATES-ISRAELI NAUTILUS LASER/THEATER HIGH
                  ENERGY LASER PROGRAM.

        The Congress strongly supports the Joint United States-Israeli
    Nautilus Laser/Theater High Energy Laser programs and encourages the
    Secretary of Defense to request authorization to develop these programs
    as agreed to on April 28, 1996, in the statement of intent signed by
    the Secretary of Defense and the Prime Minister of the State of Israel.

    SEC. 222. NONLETHAL WEAPONS RESEARCH AND DEVELOPMENT PROGRAM.

        Of the amounts authorized to be appropriated by section 201 for
    program element 63640M, $3,000,000 shall be available for the Nonlethal
    Weapons Research and Development Program.

                 Subtitle C--Ballistic Missile Defense Programs

    SEC. 231. FUNDING FOR BALLISTIC MISSILE DEFENSE PROGRAMS FOR FISCAL
                  YEAR 1997.

        Of the amount appropriated pursuant to section 201(4), not more
    than $3,258,982,000 may be obligated for programs managed by the
    Ballistic Missile Defense Organization.

    SEC 232. 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. 233. POLICY ON COMPLIANCE WITH THE ABM TREATY.

        (a) Policy Concerning Systems Subject to ABM Treaty.--Congress
    finds that, unless and until a missile defense system, system upgrade,
    or system component is flight tested in an ABM-qualifying flight test
    (as defined in subsection (c)), such system, system upgrade, or system
    component--
                (1) has not, for purposes of the ABM Treaty, been tested in
            an ABM mode nor been given capabilities to counter strategic
            ballistic missiles; and
                (2) therefore is not subject to any application,
            limitation, or obligation under the ABM Treaty.
        (b) Prohibitions.--(1) Funds appropriated to the Department of
    Defense may not be obligated or expended for the purpose of--
                (A) prescribing, enforcing, or implementing any Executive
            order, regulation, or policy that would apply the ABM Treaty
            (or any limitation or obligation under such Treaty) to
            research, development, testing, or deployment of a theater
            missile defense system, a theater missile defense system
            upgrade, or a theater missile defense system component; or
                (B) taking any other action to provide for the ABM Treaty
            (or any limitation or obligation under such Treaty) to be
            applied to research, development, testing, or deployment of a
            theater missile defense system, a theater missile defense
            system upgrade, or a theater missile defense system component.
        (2) This subsection applies with respect to each missile defense
    system, missile defense system upgrade, or missile defense system
    component that is capable of countering modern theater ballistic
    missiles.
        (3) This subsection shall cease to apply with respect to a missile
    defense system, missile defense system upgrade, or missile defense
    system component when that system, system upgrade, or system component
    has been flight tested in an ABM-qualifying flight test.
        (c) ABM-Qualifying Flight Test Defined.--For purposes of this
    section, an ABM-qualifying flight test is a flight test against a
    ballistic missile which, in that flight test, exceeds (1) a range of
    3,500 kilometers, or (2) a velocity of 5 kilometers per second.

    SEC. 234. REQUIREMENT THAT MULTILATERALIZATION OF THE ABM TREATY BE
                  DONE ONLY THROUGH TREATY-MAKING POWER.

        Any addition of a new signatory party to the ABM Treaty (in
    addition to the United States and the Russian Federation) constitutes
    an amendment to the treaty that can only be agreed to by the United
    States through the treaty-making power of the United States. No funds
    appropriated or otherwise available for any fiscal year may be
    obligated or expended for the purpose of implementing or making binding
    upon the United States the participation of any additional nation as a
    party to the ABM Treaty unless that nation is made a party to the
    treaty by an amendment to the Treaty that is made in the same manner as
    the manner by which a treaty is made.

    SEC. 235. REPORT ON BALLISTIC MISSILE DEFENSE AND PROLIFERATION.

        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. 236. 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. 237. 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.

    SEC. 238. 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.

                           Subtitle D--Other Matters

    SEC. 241. UNIFORM PROCEDURES AND CRITERIA FOR MAINTENANCE AND REPAIR AT
                  AIR FORCE INSTALLATIONS.

        The Secretary of the Air Force shall apply uniform procedures and
    criteria to allocate funds authorized to be appropriated pursuant to
    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.

    SEC. 242. REQUIREMENTS RELATING TO SMALL BUSINESS INNOVATION RESEARCH
                  PROGRAM.

        (a) Management and Execution by Program Manager.--The Secretary of
    Defense, in conducting within the Department of Defense the Small
    Business Innovation Research Program (as defined by section 2491(13) of
    title 10, United States Code), shall ensure that the Program is managed
    and executed, for each program element for research and development for
    which $20,000,000 or more is authorized for a fiscal year, by the
    program manager for that element.
        (b) Report.--Not later than March 30, 1997, the Comptroller General
    shall submit to Congress and to the Secretary of Defense a report
    setting forth 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 Small Business
    Innovation Research Program since fiscal year 1995.

    SEC. 243. 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. 244. 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. 245. 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) by striking out ``Director of the National
                    Science Foundation'' and inserting in lieu thereof
                    ``Under Secretary of Defense for Acquisition and
                    Technology'';
                        (B) by striking out ``as determined by the
                    Director'' and inserting in lieu thereof ``as
                    determined by the Under Secretary'';
                        (C) in subparagraph (A), by striking out ``(to be
                    determined in consultation with the Secretary of
                    Defense);'' and inserting in lieu thereof ``; and'';
                        (D) by striking out ``; and'' at the end of
                    subparagraph (B) and inserting in lieu thereof a
                    period; and
                        (E) by striking out subparagraph (C).

    SEC. 246. 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. 247. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

        (a) 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.
        (b) 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 Partnership Coordinating Group.
    ``7904. 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, who shall be the Chairman
            of the Council.
                ``(2) The Administrator of the National Oceanic and
            Atmospheric Administration, who shall be the Vice Chairman of
            the Council.
                ``(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) 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.
        ``(d) Responsibilities.--The Council shall have the following
    responsibilities:
                ``(1) To establish the Ocean Research Partnership
            Coordinating Group as provided in section 7903.
                ``(2) To establish the Ocean Research Advisory Panel as
            provided in section 7904.
                ``(3) To submit to Congress an annual report pursuant to
            subsection (e).
        ``(e) 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. The description also shall include a list
            of the members of the Ocean Research Partnership Coordinating
            Group, 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 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.
    ``Sec. 7903. Ocean Research Partnership Coordinating Group
        ``(a) Establishment.--The Council shall establish an entity to be
    known as the `Ocean Research Partnership Coordinating Group'
    (hereinafter in this chapter referred to as the `Coordinating Group').
        ``(b) Membership.--The Coordinating Group shall consist of members
    appointed by the Council, with one member appointed from each Federal
    department or agency having an oceanographic research or development
    program.
        ``(c) Chairman.--The Council shall appoint the Chairman of the
    Coordinating Group.
        ``(d) Responsibilities.--Subject to the authority, direction, and
    control of the Council, the Coordinating Group 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 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 promote participation in partnership projects by
            each Federal department and agency involved with oceanographic
            research and development by publicizing the program and by
            prescribing guidelines for participation in the program.
                ``(4) To submit to the Council an annual report pursuant to
            subsection (i).
        ``(e) Partnership Program Office.--The Coordinating Group shall
    establish, using competitive procedures, and oversee a partnership
    program office to carry out such duties as the Chairman of the
    Coordinating Group considers appropriate to implement the National
    Oceanographic Partnership Program, including the following:
                ``(1) To establish and oversee working groups to propose
            partnership projects to the Coordinating Group and advise the
            Group on such projects.
                ``(2) To manage peer review of partnership projects
            proposed to the Coordinating Group and competitions for
            projects selected by the Group.
                ``(3) To submit to the Coordinating Group an annual report
            on the status of all partnership projects and activities of the
            office.
        ``(f) Contract and Grant Authority.--The Coordinating Group may
    authorize one or more of the departments or agencies represented in the
    Group to enter into contracts and make grants, using funds appropriated
    pursuant to an authorization for the National Oceanographic Partnership
    Program, for the purpose of implementing the program and carrying out
    the Coordinating Group's responsibilities.
        ``(g) Forms of Partnership Projects.--Partnership projects selected
    by the Coordinating Group may be in any form that the Coordinating
    Group considers appropriate, including memoranda of understanding,
    demonstration projects, cooperative research and development
    agreements, and similar instruments.
        ``(h) Annual Report.--Not later than February 1 of each year, the
    Coordinating Group shall submit to the Council a report on the National
    Oceanographic Partnership Program. The report shall contain, at a
    minimum, copies of any recommendations or reports to the Coordinating
    Group by the Ocean Research Advisory Panel.
    ``Sec. 7904. Ocean Research Advisory Panel
        ``(a) Establishment.--The Council shall appoint an Ocean Research
    Advisory Panel (hereinafter in this chapter referred to as the
    `Advisory Panel') consisting of not less than 10 and not more than 18
    members.
        ``(b) Membership.--Members of the Advisory Panel shall be appointed
    from among persons who are 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.
        ``(c) Responsibilities.--(1) The Coordinating Group shall refer to
    the Advisory Panel, and the Advisory Panel shall review, each proposed
    partnership project estimated to cost more than $500,000. The Advisory
    Panel shall make any recommendations to the Coordinating Group that the
    Advisory Panel considers appropriate regarding such projects.
        ``(2) The Advisory Panel shall make any recommendations to the
    Coordinating Group regarding activities that should be addressed by the
    National Oceanographic Partnership Program that the Advisory Panel
    considers appropriate.''.
        (2) The tables of chapters at the beginning of subtitle C of title
    10, United States Code, and 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''.

        (c) 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 (b)(1), not later than
    December 1, 1996.
        (d) 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 (b)(1), shall make the
    appointments required by section 7904 of such title not later than
    January 1, 1997.
        (e) First Annual Report of National Ocean Research Leadership
    Council.--The first annual report required by section 7902(e) of title
    10, United States Code, as added by subsection (b)(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.
        (f) Authorization.--Of the amount authorized to be appropriated to
    the Department of Defense in section 201, $30,000,000 is authorized for
    the National Oceanographic Partnership Program established pursuant to
    section 7901 of title 10, United States Code, as added by subsection
    (b)(1).
        (g) Required 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
    7903(e) of title 10, United States Code, for such fiscal year.

                      TITLE III--OPERATION AND MAINTENANCE

                  Subtitle A--Authorization of Appropriations

    SEC. 301. OPERATION AND MAINTENANCE FUNDING.

        Funds are hereby authorized to be appropriated for fiscal year 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, $18,436,929,000.
                (2) For the Navy, $20,433,797,000.
                (3) For the Marine Corps, $2,524,677,000.
                (4) For the Air Force, $17,982,955,000.
                (5) For Defense-wide activities, $10,375,368,000.
                (6) For the Army Reserve, $1,155,436,000.
                (7) For the Naval Reserve, $858,927,000.
                (8) For the Marine Corps Reserve, $106,467,000.
                (9) For the Air Force Reserve, $1,504,553,000.
                (10) For the Army National Guard, $2,297,477,000.
                (11) For the Air National Guard, $2,688,473,000.
                (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, Defense,
            $1,333,016,000.
                (15) For Drug Interdiction and Counter-drug Activities,
            Defense-wide, $682,724,000.
                (16) For Medical Programs, Defense, $9,831,288,000.
                (17) For Cooperative Threat Reduction programs,
            $302,900,000.
                (18) For Overseas Humanitarian, Disaster, and Civic Aid
            programs, $60,544,000.
                (19) For payment to Kaho'olawe Island, $10,000,000.

    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, $1,123,002,000.

    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 $250,000,000 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, $83,334,000.
                (2) For the Navy, $83,333,000.
                (3) For the Air Force, $83,333,000.
        (b) Treatment of Transfers.--Amounts transferred under this
    section--
                (1) shall be merged with, and be available for the same
            purposes and the same period as, the amounts in the accounts to
            which transferred; and
                (2) may not be expended for an item that has been denied
            authorization of appropriations by Congress.
        (c) Relationship to Other Transfer Authority.--The transfer
    authority provided in this section is in addition to the transfer
    authority provided in section 1001.

                       Subtitle B--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. EXCLUSION OF LARGE MAINTENANCE AND REPAIR PROJECTS FROM
                  PERCENTAGE LIMITATION ON CONTRACTING FOR DEPOT-LEVEL
                  MAINTENANCE.

        Section 2466 of title 10, United States Code, is amended by
    inserting after subsection (a) the following new subsection:
        ``(b) Treatment of Certain Large Projects.--If a single maintenance
    or repair project contracted for performance by non-Federal Government
    personnel accounts for five percent or more of the funds made available
    in a fiscal year to a military department or a Defense Agency for
    depot-level maintenance and repair workload, the project and the funds
    necessary for the project shall not be considered when applying the
    percentage limitation specified in subsection (a) to that military
    department or Defense Agency.''.

                      Subtitle C--Environmental Provisions

    SEC. 321. REPEAL OF REPORT ON CONTRACTOR REIMBURSEMENT COSTS.

        Section 2706 of title 10, United States Code, is amended--
                (1) by striking out subsection (c); and
                (2) by redesignating subsection (d) as subsection (c).

    SEC. 322. PAYMENTS OF STIPULATED PENALTIES ASSESSED UNDER CERCLA.

        The Secretary of Defense may pay, from funds appropriated pursuant
    to section 301(14), the following:
                (1) Stipulated civil penalties, to the Hazardous Substance
            Superfund established under section 9507 of the Internal
            Revenue Code of 1986, in amounts as follows:
                        (A) Not more than $34,000 assessed against the
                    United States Army at Fort Riley, Kansas, under the
                    Comprehensive Environmental Response, Compensation, and
                    Liability Act of 1980 (42 U.S.C. 9601 et seq.).
                        (B) Not more than $55,000 assessed against the
                    Massachusetts Military Reservation, Massachusetts,
                    under such Act.
                        (C) Not more than $10,000 assessed against the F.E.
                    Warren Air Force Base, Wyoming, under such Act.
                        (D) Not more than $30,000 assessed against the
                    Naval Education and Training Center, Newport, Rhode
                    Island, under such Act.
                        (E) Not more than $37,500 assessed against Lake
                    City Army Ammunition Plant, under such Act.
                (2) Not more than $500,000 to carry out two environmental
            restoration projects, as part of a negotiated agreement in lieu
            of stipulated penalties assessed under the Comprehensive
            Environmental Response, Compensation, and Liability Act of 1980
            (42 U.S.C. 9601 et seq.) against the Massachusetts Military
            Reservation, Massachusetts.

    SEC. 323. CONSERVATION AND READINESS PROGRAM.

        (a) Establishment.--The Secretary of Defense may establish and
    carry out a program to be known as the ``Conservation and Readiness
    Program''.
        (b) Purpose.--The purpose of the Conservation and Readiness Program
    is to conduct and manage in a coordinated manner those conservation and
    cultural activities that have regional, multicomponent, or Department
    of Defense-wide significance and are necessary to meet legal
    requirements or to support military operations. These activities
    include the following:
                (1) The development of ecosystem-wide land management
            plans.
                (2) The conduct of wildlife studies to ensure the safety of
            military operations.
                (3) 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 of Defense, to the appropriate
            Native American tribes.
                (4) The control of invasive species that may hinder
            military activities or degrade military training ranges.
                (5) The establishment of a regional curation system for
            artifacts found on military installations.
        (c) Cooperative Agreements and Grants.--The Secretary of Defense
    may negotiate and enter into cooperative agreements with, and award
    grants to, public and private agencies, organizations, institutions,
    individuals, or other entities to carry out the Conservation and
    Readiness Program.
        (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.

    SEC. 324. NAVY COMPLIANCE WITH SHIPBOARD SOLID WASTE CONTROL
                  REQUIREMENTS.

        (a) Amendment to the Act to Prevent Pollution from Ships.--
    Subsection (c) of section 3 of the Act to Prevent Pollution from Ships
    (33 U.S.C. 1902(c)) is amended--
                (1) in paragraph (1), by inserting ``, except as provided
            in paragraphs (4) and (5) of this subsection'' before the
            period at the end;
                (2) by striking out paragraph (4); and
                (3) by adding at the end the following new paragraphs:
        ``(4) A vessel owned or operated by the Department of the Navy for
    which the Secretary of the Navy determines under the compliance plan
    submitted under paragraph (2) that, due to unique military design,
    construction, manning, or operating requirements, full compliance with
    paragraph (1) would not be technologically feasible, would impair the
    vessel's operations, and would impair the vessel's operational
    capability, is authorized to discharge garbage consisting of either of
    the following:
                ``(A) A slurry of seawater, paper, cardboard, and food
            waste that does not contain more than the minimum amount
            practicable of plastic, if such slurry is discharged not less
            than 3 nautical miles from the nearest land and is capable of
            passing through a screen with openings of no greater than 12
            millimeters.
                ``(B) Metal and glass garbage that has been shredded and
            bagged to ensure negative buoyancy and is discharged not less
            than 12 nautical miles from the nearest land.
        ``(5) Not later than December 31, 2000, the Secretary of the Navy
    shall publish in the Federal Register--
                ``(A) a list of those surface ships planned to be
            decommissioned between January 1, 2001, and December 31, 2005;
            and
                ``(B) standards to ensure, so far as is reasonable and
            practicable, without impairing the operations or operational
            capabilities of such ships, that such ships act in a manner
            consistent with the special area requirements of Regulation 5
            of Annex V to the Convention.''.
        (b) Goal To Achieve Full Compliance.--It shall be the goal of the
    Secretary of the Navy to achieve full compliance with Annex V to the
    International Convention for the Prevention of Pollution from Ships,
    1973, as soon as practicable.

    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 use plan 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
    of Defense 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 of
    Defense 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.--Not later than December 31, 1998, the Secretary of
    Defense shall submit to Congress a report 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 report shall include recommendations on
    whether such land use plans should be developed and implemented
    throughout the Department of Defense.
        (h)  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 TECHNOLOGIES FOR LIMITING
                  AIR EMISSIONS DURING SHIPYARD BLASTING AND COATING
                  OPERATIONS.

        (a) Pilot Program.--The Secretary of the Navy shall establish a
    pilot program to test 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. 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.
        (b) Report.--Upon completion of the test conducted under the pilot
    program, the Secretary of the Navy 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. 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) 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 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.
        (c) Sense of Congress.--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. 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).

    Subtitle D--Civilian Employees and Nonappropriated Fund Instrumentality
                                   Employees

    SEC. 331. REPEAL OF PROHIBITION ON PAYMENT OF LODGING EXPENSES WHEN
                  ADEQUATE GOVERNMENT QUARTERS ARE AVAILABLE.

        (a) Repeal.--Section 1589 of title 10, United States Code, is
    repealed.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 81 of such title is amended by striking out the item relating
    to section 1589.

    SEC. 332. VOLUNTARY SEPARATION INCENTIVE PAY MODIFICATION.

        (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. 333. 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) The head of an agency may, on request of an employee, grant
    the employee compensatory time off from his 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.''.
        (b) Conforming Amendment.--Section 5544(c) of title 5, United
    States Code, is amended by inserting ``and the provisions of section
    5543(b)'' before ``shall apply''.

    SEC. 334. 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. 335. PHASED RETIREMENT.

        (a) Civil Service Retirement System.--Section 8344 of title 5,
    United States Code, is amended by adding at the end the following new
    subsection:
        ``(m)(1) In order to promote the retention of employees having
    knowledge, skills, or expertise needed by the Department of Defense, in
    a manner consistent with ongoing downsizing efforts, the Secretary of
    Defense or his designee may waive the application of subsection (a),
    with respect to reemployed annuitants of the Department of Defense,
    under this subsection.
        ``(2) A waiver under this subsection--
                ``(A) may not be granted except upon appropriate written
            application submitted and approved not later than the date of
            separation on which entitlement to annuity is based;
                ``(B) shall be contingent on the reemployment commencing
            within such time as the Secretary or his designee may require,
            may remain in effect for a period of not to exceed 2 years, and
            shall not be renewable; and
                ``(C) may be granted and thereafter remain in effect only
            if, with respect to the position in which reemployed, the
            number of regularly scheduled hours in each week or other
            period is at least \1/2\ but not more than \3/4\ those last in
            effect for the individual before the separation referred to in
            subparagraph (A).
        ``(3)(A) In no event shall the sum of the rate of basic pay for,
    plus annuity allocable to, any period of service as a reemployed
    annuitant under this subsection exceed the rate of basic pay that would
    then be in effect for service performed during such period if
    separation had not occurred.
        ``(B) If the limitation under subparagraph (A) would otherwise be
    exceeded, an amount equal to the excess shall be deducted from basic
    pay for the period involved (but not to exceed total basic pay for such
    period), and any amount so deducted shall be deposited in the Treasury
    of the United States to the credit of the Fund.
        ``(4) The number of reemployed annuitants under this subsection at
    any given time may not, when taken together with the then current
    number under section 8468(j), exceed a total of 50.
        ``(5) All waivers under this subsection shall cease to be effective
    after September 30, 2001.''.
        (b) Federal Employees' Retirement System.--Section 8468 of title 5,
    United States Code, is amended by adding at the end the following new
    subsection:
        ``(j)(1) In order to promote the retention of employees having
    knowledge, skills, or expertise needed by the Department of Defense, in
    a manner consistent with ongoing downsizing efforts, the Secretary of
    Defense or his designee may waive the application of subsections (a)
    and (b), with respect to reemployed annuitants of the Department of
    Defense, under this subsection.
        ``(2) A waiver under this subsection--
                ``(A) may not be granted except upon appropriate written
            application submitted and approved not later than the date of
            separation on which entitlement to annuity is based;
                ``(B) shall be contingent on the reemployment commencing
            within such time as the Secretary or his designee may require,
            may remain in effect for a period of not to exceed 2 years, and
            shall not be renewable; and
                ``(C) may be granted and thereafter remain in effect only
            if, with respect to the position in which reemployed, the
            number of regularly scheduled hours in each week or other
            period is at least \1/2\ but not more than \3/4\ those last in
            effect for the individual before the separation referred to in
            subparagraph (A).
        ``(3)(A) In no event shall the sum of the rate of basic pay for,
    plus annuity allocable to, any period of service as a reemployed
    annuitant under this subsection exceed the rate of basic pay that would
    then be in effect for service performed during such period if
    separation had not occurred.
        ``(B) If the limitation under subparagraph (A) would otherwise be
    exceeded, an amount equal to the excess shall be deducted from basic
    pay for the period involved (but not to exceed total basic pay for such
    period), and any amount so deducted shall be deposited in the Treasury
    of the United States to the credit of the Fund.
        ``(4) The number of reemployed annuitants under this subsection at
    any given time may not, when taken together with the then current
    number under section 8344(m), exceed a total of 50.
        ``(5) All waivers under this subsection shall cease to be effective
    after September 30, 2001.''.
        (c) Reporting Requirement.--Not later than December 31, 2000, the
    Secretary of Defense shall submit to each House of Congress and the
    Office of Personnel Management a written report on the operation of
    sections 8344(m) and 8468(j) of title 5, United States Code, as amended
    by this section. Such report shall include--
                (1) recommendations as to whether or not those provisions
            of law should be continued beyond September 30, 2001, and, if
            so, under what conditions or constraints; and
                (2) any other information which the Secretary of Defense
            may consider appropriate.

    SEC. 336. MODIFICATION OF AUTHORITY FOR CIVILIAN EMPLOYEES OF
                  DEPARTMENT OF DEFENSE TO PARTICIPATE VOLUNTARILY IN
                  REDUCTIONS IN FORCE.

        Section 3502(f) 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.''.

      Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

    SEC. 341. CONTRACTS WITH OTHER AGENCIES AND INSTRUMENTALITIES FOR GOODS
                  AND SERVICES.

        (a) Contracts to Promote Efficient Operation and Management.--
    Chapter 147 of title 10, United States Code, is amended by adding at
    the end the following new section:
    ``Sec. 2490b. Contracts with other agencies and instrumentalities for
                  goods and services
        ``An agency or instrumentality of the Department of Defense that
    supports the operation of the exchange or morale, welfare, and
    recreation systems of the Department of Defense may enter into a
    contract or other agreement with another department, agency, or
    instrumentality of the Department of Defense or another Federal agency
    to provide goods and services beneficial to the efficient management
    and operation of the exchange or morale, welfare, and recreation
    systems.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2490b. Contracts with other agencies and instrumentalities for goods
                                and 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.--The amendment made by subsection
    (a) shall not affect the terms, conditions, or duration of any contract
    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 adding after section 2490b, as added by section 341, the
    following new section:
    ``Sec. 2490c. Sale or rental of sexually explicit material prohibited
        ``(a) Prohibition of Sale or Rental.--The Secretary of Defense may
    not permit the sale or rental of sexually explicit written or
    videotaped 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
    for sale, remuneration, or rental may not provide 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 ship stores.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding after the item relating to section 2490b, as added by
    section 341, the following new item:

    ``2490c. Sale or rental of sexually explicit material prohibited.''.
        (b) Effective Date.--Subsection (a) of section 2490c 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 F--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 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
                    Government; 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. REQUIREMENT REGARDING USE OF PRIVATE SHIPYARDS FOR COMPLEX
                  NAVAL SHIP REPAIR CONTRACTS.

        (a) In General.--(1) Chapter 633 of title 10, United States Code,
    is amended by adding at the end the following new section:
    ``Sec. 7315. Use of private shipyards for complex ship repair work:
                  limitation to certain shipyards
        ``(a) Limitation on Repair Locations.--Whenever a naval vessel
    (other than a submarine) is to undergo complex ship repairs and the
    Secretary of the Navy determines that a private shipyard contractor is
    to be used for the work required, such work--
                ``(1) may be performed only by a qualifying shipyard
            contractor; and
                ``(2) shall be performed at the shipyard facility of the
            contractor selected unless the Secretary determines that the
            work should be conducted elsewhere in the interest of national
            security.
        ``(b) Qualifying Shipyard Contractor.--For the purposes of this
    section, a qualifying shipyard contractor, with respect to the award of
    any contract for ship repair work, is a private shipyard that--
                ``(1) is capable of performing the repair and overhaul of
            ships with a displacement of 800 tons or more;
                ``(2) performs at least 55 percent of repairs with its own
            facilities and work force;
                ``(3) possesses or has access to a dry-dock and a pier with
            the capability to berth a ship with a displacement of 800 tons
            or more; and
                ``(4) has all the facilities and organizational elements
            needed for the repair of a ship with a displacement of 800 tons
            or more.
        ``(c) Complex Ship Repairs.--In this section, the term `complex
    ship repairs' means repairs to a vessel performed at a shipyard that
    are estimated (before work on the repairs by a shipyard begins) to
    require expenditure of $750,000 or more.
        ``(d) Exception Regarding Pacific Coast.--This section shall not
    apply in the case of complex ship repairs to be performed at a shipyard
    facility located on the Pacific Coast of the United States.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``7315. Use of private shipyards for complex ship repair work:
                                limitation to certain shipyards.''.
        (b) Effective Date.--Section 7315 of title 10, United States Code,
    as added by subsection (a), shall apply with respect to contracts for
    complex ship repairs that are awarded after the date of the enactment
    of this Act.

                           Subtitle G--Other Matters

    SEC. 360. TERMINATION OF DEFENSE BUSINESS OPERATIONS FUND AND
                  PREPARATION OF PLAN REGARDING IMPROVED OPERATION OF
                  WORKING-CAPITAL FUNDS.

        (a) Repeal of Defense Business Operations Fund.--(1) Section 2216
    of title 10, United States Code, as added by section 371(a) of the
    National Defense Authorization Act for Fiscal Year 1996 (Public Law
    104-106; 110 Stat. 277), is repealed.
        (2) The table of sections at the beginning of chapter 131 of title
    10, United States Code, is amended by striking out the item relating to
    such section.
        (3) The amendments made by this subsection shall take effect on
    October 1, 1998.
        (b) 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.
        (c) Elements of Plan.--The plan required by subsection (b) shall
    address the following issues:
                (1) The ability of each military department 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.
                (3) Liability for operating losses at industrial and supply
            activities.
                (4) Reimbursement to the Department of Defense for each
            military department's fair share of the costs of legitimate
            common business support services provided by the Department of
            Defense (such as accounting and financial services and central
            logistics services).
                (5) The role of the Department of Defense in setting
            charges or imposing surcharges for activities managed by the
            military department business accounts (except for the common
            business support costs 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.
                (7) The ability of military departments to purchase
            industrial and supply services from, and provide such services
            to, other military departments.
                (8) Standardization of financial management and accounting
            practices employed by military department business accounts.
                (9) Reporting requirements related to actual and projected
            performance of military department business management account
            activities.

    SEC. 361. INCREASE IN CAPITAL ASSET THRESHOLD UNDER DEFENSE BUSINESS
                  OPERATIONS FUND.

        Section 2216 of title 10, United States Code, as added by section
    371(a) of the National Defense Authorization Act for Fiscal Year 1996
    (Public Law 104-106; 110 Stat. 227), is amended in subsection (i)(1) by
    striking out ``$50,000'' and inserting in lieu thereof ``$100,000''.

    SEC. 362. 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 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 may transfer personal
    property under this section only if--
                ``(1) the property is drawn from existing stocks of the
            Department of Defense; and
                ``(2) the transfer is made without the expenditure of any
            funds available to the Department of Defense for the
            procurement of defense equipment.
        ``(c) Consideration.--Personal property may be transferred under
    this section without cost 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
    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. 363. STORAGE OF MOTOR VEHICLE IN LIEU OF TRANSPORTATION.

        (a) Storage Authorized.--(1) Section 2634 of title 10, United
    States Code, is amended by adding at the end the following new
    subsection:
        ``(g)(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 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.--Section 406(h)(1) of title 37, United
    States Code, is amended by striking out subparagraph (B) and inserting
    in lieu thereof the following new subparagraph:
                ``(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 (g) of such section.''.
        (c) Effective Date.--The amendments made by this section shall take
    effect on July 1, 1997.

    SEC. 364. CONTROL OF TRANSPORTATION SYSTEMS IN TIME OF WAR.

        (a) Responsibility of Secretary of Defense.--Chapter 157 of title
    10, United States Code is amended by adding at the end the following
    new section:
    ``Sec. 2644. Control of transportation systems in time of war
        ``In time of war, the President, acting through the Secretary of
    Defense, may take possession and assume control of all or any part of a
    system of transportation to transport troops, war material, and
    equipment, or for other purposes related to the emergency. So far as
    necessary, the Secretary may use the transportation system to the
    exclusion of other traffic.''.
        (b) Conforming Repeals.--Sections 4742 and 9742 of title 10, United
    States Code are repealed.
        (c) Clerical Amendments.--(1) The table of sections at the
    beginning of chapter 447 of such title is amended by striking out the
    item relating to section 4742.
        (2) The table of sections at the beginning of chapter 947 of such
    title is amended by striking out the item relating to section 9742.
        (3) The table of sections at the beginning of chapter 157 of such
    title 10 is amended by inserting after the item relating to section
    2643 the following new item:

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

    SEC. 365. 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 Amendment.--(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. 366. MODIFICATIONS TO ARMED FORCES RETIREMENT HOME ACT OF 1991.

        (a) Term of Office.--Section 1515 of the Armed Forces Retirement
    Home Act of 1991 (24 U.S.C. 415) is amended--
                (1) in subsection (e), by adding at the end the following:
        ``(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.''; and
                (2) by striking out subsection (f) and inserting in lieu
            thereof the following:
        ``(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.''.
        (b) Disposal of Real Property.--Section 1516(d) of such Act (24
    U.S.C. 416(d)) is amended by striking out ``(d)'' and all that follows
    through the end of paragraph (1) and inserting in lieu thereof the
    following:
        ``(d) Disposal of Real Property.--(1) The Retirement Home Board may
    dispose of real property of the Retirement Home by sale or otherwise,
    except that the disposal may not occur until after the end of a period
    of 30 legislative days or 60 calendar days, whichever is longer,
    beginning on the date on which the Retirement Home Board notifies the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives of the proposed disposal. The
    Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471
    et seq.), section 501 of the Stewart B. McKinney Homeless Assistance
    Act (42 U.S.C. 11411), and any other provision of law or regulation
    relating to the handling or disposal of real property by the United
    States shall not apply to the disposal of real property by the
    Retirement Home Board.''.
        (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.''.
        (d) Effect of Amendment.--The amendment made by subsection (a)(2)
    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 in effect before the date of the
    enactment of this Act.

    SEC. 367. 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) $50,000,000 shall be available for providing
            educational agencies assistance (as defined in subsection
            (d)(1)) to local educational agencies; and
                (2) $8,000,000 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. 368. RETENTION OF CIVILIAN EMPLOYEE POSITIONS AT MILITARY TRAINING
                  BASES TRANSFERRED TO NATIONAL GUARD.

        (a) 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 during fiscal year 1997 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.
        (b) Retention of Employee Positions.--In the case of a military
    training installation described in subsection (a), 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.
        (c) Maximum Positions Retained.--The maximum number of civilian
    employee positions retained at an installation under this section shall
    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 shall terminate
    upon the later of the following:
                (1) The date of the departure or retirement of the civilian
            employee initially employed or retained in a civilian employee
            position at the installation as a result of this section.
                (2) The date on which the Secretary certifies to Congress
            that a civilian employee position at the installation is no
            longer required to ensure that effective support is provided at
            the installation for active and reserve component training.

    SEC. 369. 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 the
            following: ``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),''.

                  TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                           Subtitle A--Active Forces

    SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

        The Armed Forces are authorized strengths for active duty personnel
    as of September 30, 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.

        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.''.

    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:
      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) Effective Date.--The amendments made by subsections (a) and (b)
    shall take effect on September 1, 1997, except that with the approval
    of the Secretary of Defense the Secretary of a military department may
    prescribe an earlier date for that Secretary's military department. Any
    such date shall be published in the Federal Register.

                           Subtitle B--Reserve Forces

    SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

        (a) Fiscal Year 1997.--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, 108,843.
                (6) The Air Force Reserve, 73,281.
                (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, 10,378.
                (6) The Air Force Reserve, 625.

    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,
            22,906.
        (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 (and the
            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,''.

                  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
    $70,206,030,000. 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--Personnel Management

    SEC. 501. AUTHORIZATION FOR SENIOR ENLISTED MEMBERS TO REENLIST FOR AN
                  INDEFINITE PERIOD OF TIME.

        Subsection (d) of section 505 of title 10, United States Code, is
    amended to read as follows:
        ``(d)(1) For a member with less than 10 years of service, 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 periods of at least two but not more
    than six years.
        ``(2) At the discretion of the Secretary concerned, a member with
    10 or more years of service who reenlists in the Regular Army, Regular
    Navy, Regular Air Force, Regular Marine Corps, or Regular Coast Guard,
    as the case may be, and who meets all qualifications for continued
    service, may be accepted for reenlistment of an unspecified period of
    time.''.

    SEC. 502. AUTHORITY TO EXTEND ENTRY ON ACTIVE DUTY UNDER THE DELAYED
                  ENTRY PROGRAM.

        Section 513(b) of title 10, United States Code, is amended--
                (1) by adding after the first sentence the following new
            sentence: ``The Secretary concerned may extend the 365-day
            period for any person for up to an additional 180 days if the
            Secretary considers such extension to be warranted on a case-
            by-case basis.''; and
                (2) in the last sentence, by striking out ``the preceding
            sentence'' and inserting in lieu thereof ``under this
            subsection''.

    SEC. 503. PERMANENT AUTHORITY FOR NAVY SPOT PROMOTIONS FOR CERTAIN
                  LIEUTENANTS.

        Section 5721 of title 10, United States Code, is amended by
    striking out subsection (g).

    SEC. 504. 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.
        (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
    report referred to in subsection (a) and shall submit a report to
    Congress, not later than one year after the date of enactment of this
    Act, providing the Comptroller General's findings and recommendations.

    SEC. 505. 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''.

    SEC. 506. REPEAL OF REQUIREMENT THAT COMMISSIONED OFFICERS BE INITIALLY
                  APPOINTED IN A RESERVE GRADE.

        Section 532 of title 10, United States Code, is amended by striking
    out subsection (e).

    SEC. 507. 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.

                     Subtitle B--Reserve Component Matters

    SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.

        (a) IRR Members Subject To Order to Active Duty Other Than During
    War or National Emergency.--Section 10144 of title 10, United States
    Code, is amended--
                (1) by inserting ``(a)'' before ``Within the Ready
            Reserve''; and
                (2) by adding at the end the following:
        ``(b)(1) Within the Individual Ready Reserve of each reserve
    component there is a mobilization category of members, as designated by
    the Secretary concerned, who are subject to being ordered to active
    duty involuntarily in accordance with section 12304 of this title. A
    member may not be placed in that mobilization category unless--
                ``(A) the member volunteers for that category; and
                ``(B) the member is selected for that category by the
            Secretary concerned, based upon the needs of the service and
            the grade and military skills of that member.
        ``(2) A member of the Individual Ready Reserve may not be carried
    in the mobilization category of members under paragraph (1) after the
    end of the 24-month period beginning on the date of the separation of
    the member from active service.
        ``(3) The Secretary shall designate the grades and critical
    military skills or specialities of members to be eligible for placement
    in such mobilization category.
        ``(4) A member in such mobilization category shall be eligible for
    benefits (other than pay and training) as are normally available to
    members of the Selected Reserve, as determined by the Secretary of
    Defense.''.
        (b) Criteria for Ordering to Active Duty.--Subsection (a) of
    section 12304 of title 10, United States Code, is amended by inserting
    after ``of this title),'' the following: ``or any member in the
    Individual Ready Reserve mobilization category and designated as
    essential under regulations prescribed by the Secretary concerned,''.
        (c) Maximum Number.--Subsection (c) of such section is amended--
                (1) by inserting ``and the Individual Ready Reserve'' after
            ``Selected Reserve''; and
                (2) by inserting ``, of whom not more than 30,000 may be
            members of the Individual Ready Reserve'' before the period at
            the end.
        (d) Conforming Amendments.--Such section is further amended--
                (1) in subsection (f), by inserting ``or Individual Ready
            Reserve'' after ``Selected Reserve'';
                (2) in subsection (g), by inserting ``, or member of the
            Individual Ready Reserve,'' after ``to serve as a unit''; and
                (3) by adding at the end the following new subsection:
        ``(i) For purposes of this section, the term `Individual Ready
    Reserve mobilization category' means, in the case of any reserve
    component, the category of the Individual Ready Reserve described in
    section 10144(b) of this title.''.
        (e) Clerical Amendments.--(1) The heading of such section is
    amended to read as follows:
    ``Sec. 12304. Selected Reserve and certain Individual Ready Reserve
                  members; order to active duty other than during war or
                  national emergency''.
        (2) The item relating to section 12304 in the table of sections at
    the beginning of chapter 1209 of such title is amended to read as
    follows:

    ``12304. Selected Reserve and certain Individual Ready Reserve members;
                                order to active duty other than during war
                                or national emergency''.

    SEC. 512. 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 and professional development opportunities
    consistent with those provided to other members on active duty, as the
    Secretary concerned sees fit.''.

    SEC. 513. CLARIFICATION TO 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 ``a member
    of a reserve component''.

    SEC. 514. APPOINTMENT ABOVE GRADE OF 0-2 IN THE NAVAL RESERVE.

        Paragraph (3) of section 12205(b) of title 10, United States Code,
    is amended by inserting ``or the Seaman to Admiral Program'' before the
    period at the end.

    SEC. 515. 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. 516. 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. During Operation
    Joint Endeavor, a number of Reservists who are currently living and
    working abroad and who were involuntarily ordered to active duty in
    support of that operation did in fact face reemployment problems with
    their civilian employers. 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.

    Subtitle C--Jurisdiction and Powers of Courts-Martial for the National
                       Guard When Not in Federal Service

    SEC. 531. COMPOSITION, JURISDICTION, AND PROCEDURES OF COURTS-MARTIAL.

        Section 326 of title 32, United States Code, is amended--
                (1) by inserting ``(a)'' at the beginning of the text of
            the section;
                (2) by striking out the second sentence and inserting in
            lieu thereof the following: ``They shall follow substantially
            the forms and procedures provided for those courts and shall
            provide accused members of the National Guard the rights and
            protections provided in those courts.''; and
                (3) by adding at the end the following:
        ``(b) Courts-martial of the National Guard not in Federal service
    do not have jurisdiction over those persons who are subject to the
    jurisdiction of a court-martial pursuant to section 802 of title 10.
        ``(c) A court-martial of the National Guard not in Federal service
    shall have such jurisdiction and powers, consistent with the provisions
    of this chapter, as may be provided by the law of the State or
    Territory, Puerto Rico, or District of Columbia in which the court-
    martial is convened.''.

    SEC. 532. GENERAL COURTS-MARTIAL.

        (a) Convening Authority.--Subsection (a) of section 327 of title
    32, United States Code, is amended by inserting ``or adjutant general''
    after ``governor''.
        (b) Punishments.--Subsection (b) of such section is amended to read
    as follows:
        ``(b) A general court-martial may sentence an accused, upon
    conviction, to any of the following punishments:
                ``(1) A fine of not more than $500 for a single offense.
                ``(2) Forfeiture of pay and allowances in an amount of not
            more than $500 for a single offense or any forfeiture of pay
            for not more than six months.
                ``(3) A reprimand.
                ``(4) Dismissal, bad conduct discharge, or dishonorable
            discharge.
                ``(5) In the case of an enlisted member, reduction to a
            lower grade.
                ``(6) Confinement for not more than 180 days.
                ``(7) Any combination of the punishments specified in
            paragraphs (1) through (6).''.
        (c) Limitation on Punitive Discharges.--Such section is further
    amended by adding at the end the following new subsection:
        ``(c)(1) A dismissal or bad conduct or dishonorable discharge may
    not be adjudged unless counsel was detailed to represent the accused
    and a military judge was detailed to the trial.
        ``(2) In a case in which the sentence adjudged includes dismissal
    or a bad conduct or dishonorable discharge, a verbatim record of the
    proceedings shall be made.''.

    SEC. 533. SPECIAL COURTS-MARTIAL.

        (a) Convening Authority.--Subsection (a) of section 328 of title
    32, United States Code, is amended by inserting ``, if a National Guard
    officer,'' after ``the commanding officer''.
        (b) Punishments.--Subsection (b) of such section is amended to read
    as follows:
        ``(b) A special court-martial may sentence an accused, upon
    conviction, to any of the following punishments:
                ``(1) A fine of not more than $300 for a single offense.
                ``(2) Forfeiture of pay and allowances in an amount of not
            more than $300 for a single offense, but adjudged forfeiture of
            pay may not exceed two-thirds pay per month and forfeitures may
            not extend for more than six months.
                ``(3) A reprimand.
                ``(4) Bad conduct discharge.
                ``(5) In the case of an enlisted member, reduction to a
            lower grade.
                ``(6) Confinement for not more than 100 days.
                ``(7) Any combination of the punishments specified in
            paragraphs (1) through (6).''.
        (c) Limitation on Bad Conduct Discharges.--Subsection (c) of such
    section is amended to read as follows:
        ``(c)(1) A bad conduct discharge may not be adjudged unless counsel
    was detailed to represent the accused and a military judge was detailed
    to the trial.
        ``(2) In a case in which the sentence adjudged includes a bad
    conduct discharge, a verbatim record of the proceedings shall be
    made.''.

    SEC. 534. SUMMARY COURTS-MARTIAL.

        (a) Convening Authority.--Subsection (a) of section 329 of title
    32, United States Code, is amended--
                (1) by inserting ``, if a National Guard officer,'' after
            ``the commanding officer''; and
                (2) by inserting after the first sentence the following new
            sentence: ``Summary courts-martial may also be convened by
            superior authority.''.
        (b) Jurisdiction.--Subsection (a) of such section is further
    amended--
                (1) by inserting ``(1)'' after ``(a)''; and
                (2) by adding at the end the following:
        ``(2) A summary court-martial may not try a commissioned
    officer.''.
        (c) Punishments.--Subsection (b) of such section is amended to read
    as follows:
        ``(b) A summary court-martial may sentence an accused, upon
    conviction, to any of the following punishments:
                ``(1) A fine of not more than $200 for a single offense.
                ``(2) Forfeiture of pay and allowances in an amount of not
            more than $200 for a single offense, but not to exceed two-
            thirds of one month's pay.
                ``(3) Reduction to a lower grade.
                ``(4) Any combination of the punishments specified in
            paragraphs (1) through (3).''.
        (d) Consent of Accused for Summary Court-Martial.--Such section is
    further amended by adding at the end the following new subsection:
        ``(c) An accused with respect to whom summary courts-martial have
    jurisdiction may not be brought to trial before a summary court-martial
    if the accused objects thereto. If an accused so objects to trial by
    summary court-martial, the convening authority may order trial by
    special or general court-martial, as may be appropriate.''.

    SEC. 535. REPEAL OF AUTHORITY FOR CONFINEMENT IN LIEU OF FINE.

        Section 330 of title 32, United States Code, is repealed.

    SEC. 536. APPROVAL OF SENTENCE OF BAD CONDUCT DISCHARGE OR CONFINEMENT.

        (a) In General.--Section 331 of title 32, United States Code, is
    amended by striking out ``or dishonorable discharge'' and inserting in
    lieu thereof ``, bad conduct discharge, dishonorable discharge, or
    confinement for three months or more''.
        (b) Conforming Amendment.--The heading of such section is amended
    to read as follows:
    ``Sec. 331. Sentences requiring approval of governor''.

    SEC. 537. AUTHORITY OF MILITARY JUDGES.

        Section 332 of title 32, United States Code, is amended by
    inserting ``or military judge'' after ``the president''.

    SEC. 538. STATUTORY REORGANIZATION.

        (a) New Title 32 Chapter.--(1) Title 32, United States Code, is
    amended by inserting after section 325 the following:

    ``CHAPTER 4--COURTS-MARTIAL FOR THE NATIONAL GUARD WHEN NOT IN FEDERAL
                                    SERVICE

    ``Sec.
    ``401.    Courts-martial: composition, jurisdiction, and procedures.
    ``402.    General courts-martial.
    ``403.    Special courts-martial.
    ``404.    Summary courts-martial.
    ``405.    Sentences requiring approval of governor.
    ``406.    Compelling attendance of accused and witnesses.
    ``407.    Execution of process and sentence.''.
        (2) The table of chapters at the beginning of such title is amended
    by inserting after the item relating to chapter 3 the following new
    item:

    ``4. Courts-Martial for the National Guard When not in           401''.
                                Federal Service.
        (3) The table of sections at the beginning of chapter 3 of such
    title is amended by striking out the items relating to sections 326
    through 333.
        (b) Redesignation of Sections.--The following sections of title 32,
    United States Code (as amended by this subtitle), are redesignated as
    follows:

    Section
                                                       Redesignated section
            326..........................................         401
            327..........................................         402
            328..........................................         403
            329..........................................         404
            331..........................................         405
            332..........................................         406
            333..........................................         407
        (c) Section Headings.--The headings for sections 401, 402, 403, and
    404 of title 32, United States Code, as redesignated by subsection (b),
    are amended by striking out ``of National Guard not in Federal
    service''.

    SEC. 539. EFFECTIVE DATE.

        The amendments made by this subtitle shall take effect on the date
    of the enactment of this Act, except that for an offense committed
    before that date the maximum punishment shall be the maximum punishment
    in effect at the time of the commission of the offense.

    SEC. 540. CONFORMING AMENDMENTS TO UNIFORM CODE OF MILITARY JUSTICE.

        (a) Article 20.--Section 820 of title 10, United States Code, is
    amended--
                (1) by inserting ``(a)'' before ``Subject to'';
                (2) by striking out the second and third sentences and
            inserting in lieu thereof the following:
        ``(b) An accused with respect to whom summary courts-martial have
    jurisdiction may not be brought to trial before a summary court-martial
    if the accused objects thereto. If an accused so objects to trial by
    summary court-martial, the convening authority may order trial by
    special or general court-martial, as may be appropriate.''; and
                (3) by designating as subsection (c) the sentence beginning
            ``Summary courts-martial may,''.
        (b) Article 54.--Section 854(c)(1) of such title is amended by
    striking out ``complete record of the proceedings and testimony'' and
    inserting in lieu thereof ``verbatim record of the proceedings''.

                  Subtitle D--Education and Training Programs

    SEC. 551. 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. 552. 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.''.
        (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. 553. ROTC SCHOLARSHIP STUDENT PARTICIPATION IN SIMULTANEOUS
                  MEMBERSHIP PROGRAM.

        Section 2103 of title 10, United States Code, is amended by adding
    after subsection (e), as added by section 552, the following new
    subsection:
        ``(f) The Secretary of Defense shall ensure that, in carrying out
    the program, the Secretaries of the military departments permit any
    person who is receiving financial assistance under section 2107 of this
    title simultaneously to be a member of the Selected Reserve.''.

    SEC. 554. EXPANSION OF ROTC ADVANCED TRAINING PROGRAM TO INCLUDE
                  GRADUATE STUDENTS.

        (a) In General.--Section 2107(c) of title 10, United States Code,
    is amended by inserting before the last sentence the following new
    sentence: ``The Secretary of the military department concerned may
    provide similar financial assistance 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.''.
        (b) Definitional Change.--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''.

    SEC. 555. RESERVE CREDIT FOR MEMBERS OF ARMED FORCES HEALTH PROFESSIONS
                  SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.

        (a) Service Credit.--Section 2126 of title 10, United States Code,
    is amended--
                (1) by striking out ``Service performed'' and inserting in
            lieu thereof ``(a) General Rule Against Provision of Service
            Credit.--Except as provided in subsection (b), service
            performed''; and
                (2) by adding at the end the following:
        ``(b) Service Credit for Certain Purposes.--(1) This subsection
    applies with respect to a member of the Selected Reserve who--
                ``(A) completed a course of study under this subchapter as
            a member of the program;
                ``(B) completed 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) Upon satisfactory completion of a year of service in the
    Selected Reserve by a member of the Selected Reserve described in
    paragraph (1), the Secretary concerned may credit the member with a
    maximum of 50 points creditable toward the computation of the member's
    years of service under section 12732(a)(2) of this title for one year
    of participation in a course of study under this subchapter. Not more
    than four years of participation in a course of study under this
    subchapter may be considered under this paragraph.
        ``(3) In the case of a member of the Selected Reserve described in
    paragraph (1), the Secretary concerned may also credit the service of
    the member while pursuing a course of study under this subchapter, but
    not to exceed a total of four years, for purposes of computing years of
    service creditable under section 205 of title 37.
        ``(c) Limitations.--(1) A member of the Selected Reserve relieved
    of any portion of the minimum active duty obligation imposed under
    section 2123(a) of this title may not receive any point or service
    credit under subsection (b).
        ``(2) A member of the Selected Reserve awarded points or service
    credit under subsection (b) shall not be considered to have been in an
    active status, by reason of the award of the points or credit, while
    pursuing a course of study under this subchapter for purposes of any
    provision of law other than section 12732(a)(2) of this title and
    section 205 of title 37.''.
        (b) Retroactivity Barred.--A member of the Selected Reserve is not
    entitled to any retroactive award or increase in pay or allowances as a
    result of the amendments made by subsection (a).
        (c) Effective Date.--The amendments made by this section shall
    apply to individuals receiving financial assistance under section 2107
    of title 10, United States Code, after September 30, 1996.

    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 5 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 a
    corresponding 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 E--Other Matters

    SEC. 561. 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 the race 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 biennial 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. 562. AUTHORITY OF A RESERVE JUDGE ADVOCATE TO ACT AS A NOTARY
                  PUBLIC.

        (a) Notary Public Authority to Include Reserve Lawyers of the Armed
    Forces.--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 not on active
            duty'';
                (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 not on
            active duty''; 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 not on active duty,''.
        (b) Ratification of Prior Notarial Acts.--Any notarial act
    performed before the enactment of this Act, the validity of which has
    not been challenged or negated in a case pending before or decided by a
    court or administrative agency of competent jurisdiction, on or before
    the date of the enactment of this Act, is hereby confirmed, ratified,
    and approved with full effect as if such act was performed after the
    enactment of this Act.

    SEC. 563. 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.

    SEC. 564. EXCEPTED APPOINTMENT OF CERTAIN JUDICIAL NON-ATTORNEY STAFF
                  IN THE UNITED STATES COURT OF APPEALS FOR THE ARMED
                  FORCES.

        Section 943(c) of title 10, United States Code, is amended--
                (1) in the heading for the subsection, by inserting ``and
            Certain Other'' after ``Attorney''; and
                (2) in paragraph (1), by inserting ``and non-attorney
            positions on the personal staff of a judge'' after ``Court of
            Appeals for the Armed Forces''.

    SEC. 565. 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.

    SEC. 566. RESTORATION OF REGULATIONS PROHIBITING SERVICE OF HOMOSEXUALS
                  IN THE ARMED FORCES.

        (a) Termination of Existing Administrative Policy.--Effective on
    the date of the enactment of this Act, the following measures of the
    executive branch are rescinded and shall cease to be effective:
                (1) The memorandum of the Secretary of Defense to the
            Secretaries of the military departments and the Chairman of the
            Joint Chiefs of Staff dated July 19, 1993, that stated its
            subject to be: ``Policy on Homsexual Conduct in the Armed
            Forces''.
                (2) The four-page document entitled ``Policy Guidelines on
            Homsexual Conduct in the Armed Forces'' that was issued by the
    Secretary of Defense as an attachment to the memorandum referred to in
    paragraph (1).
                (3) The revisions to Department of Defense directives
            1332.30, 1332.14, and 1304.26 that were directed to be made by
            the General Counsel of the Department of Defense by memorandum
            dated February 28, 1994, to the Director of Administration and
            Management of the Department of Defense.
        (b) Reinstatement of Former Regulations.--Immediately upon the
    enactment of this Act and effective as of the date of the enactment of
    this Act--
                (1) the Secretary of Defense shall reinstate the
            regulations (including Department of Defense directives) of the
            Department of Defense regarding service of homosexuals in the
            Armed Forces that were in effect on January 19, 1993; and
                (2) the Secretary of each military department shall
            reinstate the regulations of that military department regarding
            service of homosexuals in the Armed Forces that were in effect
            on January 19, 1993.
        (c) Revision Prohibited.--The regulations (including Department of
    Defense directives) reinstated pursuant to subsection (b), insofar as
    they relate to the service of homosexuals in the Armed Forces, may not
    be revised except as specifically provided by a law enacted after the
    enactment of this Act.
        (d) Rule of Construction.--In the case of a conflict between the
    regulations required to be prescribed by subsection (b) and the
    provisions of section 654 of title 10, United States Code, or any other
    provision of law, the requirements of such provision of law shall be
    given effect.
        (e) Restoration of Questioning of New Entrants into Military
    Service.--(1) Not later than 90 days after the date of the enactment of
    this Act, the Secretary of Defense shall issue instructions for the
    resumption of questioning of potential new entrants into the Armed
    Forces as to homosexuality in accordance with the policy and practices
    of the Department of Defense as of January 19, 1993 (as reinstated
    pursuant to subsection (b)).
        (2) Section 571(d) of the National Defense Authorization Act for
    Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1673; 10 U.S.C. 654
    note) is repealed.

    SEC. 567. REENACTMENT AND MODIFICATION OF MANDATORY SEPARATION FROM
                  SERVICE FOR MEMBERS DIAGNOSED WITH HIV-1 VIRUS.

        (a) Reenactment and Modification.--(1) Chapter 59 of title 10,
    United States Code, is amended by inserting after section 1176 the
    following:
    ``Sec. 1177. Members infected with HIV-1 virus: mandatory discharge or
                  retirement
        ``(a) Mandatory Separation.--(1) A member of the Army, Navy, Air
    Force, or Marine Corps who is HIV-positive and who on the date on which
    the medical determination is made that the member is HIV-positive has
    less than 15 years of creditable service shall be separated. Such
    separation shall be made on a date determined by the Secretary
    concerned, which shall be as soon as practicable after the date on
    which the medical determination is made that the member is HIV-positive
    and not later than the last day of the second month beginning after
    such date.
        ``(2) In determining the years of creditable service of a member
    for purposes of paragraph (1)--
                ``(A) in the case of a member on active duty or full-time
            National Guard duty, the member's years of creditable service
            are the number of years of service of the member as computed
            for the purpose of determining the member's eligibility for
            retirement under any provision of law (other than chapter 61 or
    1223 of this title); and
                ``(B) in the case of a member in an active status, the
            member's years of creditable service are the number of years of
            service creditable to the member under section 12732 of this
            title.
        ``(b) Form of Separation.--The characterization of the service of
    the member shall be determined without regard to the determination that
    the member is HIV-positive.
        ``(c) Separation To Be Considered Involuntary.--A separation under
    this section shall be considered to be an involuntary separation for
    purposes of any other provision of law.
        ``(d) Counseling About Available Medical Care.--A member to be
    separated under this section shall be provided information, in writing,
    before such separation of the available medical care (through the
    Department of Veterans Affairs and otherwise) to treat the member's
    condition. Such information shall include identification of specific
    medical locations near the member's home of record or point of
    discharge at which the member may seek necessary medical care.
        ``(e) HIV-Positive Members.--A member shall be considered to be
    HIV-positive for purposes of this section if there is serologic
    evidence that the member is infected with the virus known as Human
    Immunodeficiency Virus-1 (HIV-1), the virus most commonly associated
    with the acquired immune deficiency syndrome (AIDS) in the United
    States. Such serologic evidence shall be considered to exist if there
    is a reactive result given by an enzyme-linked immunosorbent assay
    (ELISA) serologic test that is confirmed by a reactive and diagnostic
    immunoelectrophoresis test (Western blot) on two separate samples. Any
    such serologic test must be one that is approved by the Food and Drug
    Administration.''.
        (2) The table of sections at the beginning of chapter 59 of such
    title is amended by inserting after the item relating to section 1176
    the following new item:

    ``1177. Members infected with HIV-1 virus: mandatory discharge or
                                retirement.''.
        (b) Effective Date.--Section 1177 of title 10, United States Code,
    as added by subsection (a), applies with respect to members of the
    Army, Navy, Air Force, and Marine Corps determined to be HIV-positive
    before, on, or after the date of the enactment of this Act. In the case
    of a member of the Army, Navy, Air Force, or Marine Corps determined to
    be HIV-positive before such date, the deadline for separation of the
    member under subsection (a) of such section shall be determined from
    the date of the enactment of this Act (rather than from the date of
    such determination), except that no such member shall be separated by
    reason of such section (without the consent of the member) before
    October 1, 1996.

              TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

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

        (a) Availability of Allowance.--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
            subparagraph (B) or (C), a member'';
                (2) by striking out the second sentence; and
                (3) by adding at the end the following new subparagraphs:
        ``(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 under the jurisdiction of the
    Secretary when the member is without dependents, 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) Notwithstanding section 421 of this title, two members of the
    uniformed services in a pay grade below pay grade E-5 who are married
    to each other, have no other dependents, and are simultaneously
    assigned to sea duty are entitled to a single 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.''.
        (b) Effective Date.--The amendment made by subsection (a) shall
    take effect on July 1, 1997.

    SEC. 603. 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 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.

               Subtitle B--Bonuses and Special and Incentive Pays

    SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE FORCES.

        (a) 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''.
        (b) 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''.
        (c) 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''.
        (d) 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''.
        (e) 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. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 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. EXTENSION OF AUTHORITY 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) Special Pay for Health Care Professionals Who Serve in the
    Selected Reserve in Critically Short Wartime Specialties.--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''.
        (c) 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''.
        (d) 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''.
        (e) Special Pay for Enlisted Members of the Selected Reserve
    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''.
        (f) 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''.
        (g) 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''.
        (h) 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''.
        (i) 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 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)''.

                Subtitle C--Travel and Transportation Allowances

    SEC. 621. TEMPORARY LODGING EXPENSES OF MEMBER IN CONNECTION WITH FIRST
                  PERMANENT CHANGE OF STATION.

        (a) Payment or Reimbursement Authorized.--Section 404a(a) of title
    37, United States Code, is amended--
                (1) by striking out ``or'' at the end of paragraph (1);
                (2) in paragraph (2), by inserting ``or'' after
            ``Alaska;''; and
                (3) by inserting after paragraph (2) the following new
            paragraph:
                ``(3) from home of record or initial technical school to
            first duty station;''.
        (b) Effective Date.--The amendments made by subsection (a) shall
    take effect on January 1, 1997.

    SEC. 622. 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. 623. DISLOCATION ALLOWANCE AT A RATE EQUAL TO TWO AND ONE-HALF
                  MONTHS BASIC ALLOWANCE FOR QUARTERS.

        (a) Section 407(a) of title 37, United States Code, is amended in
    the matter preceding the paragraphs 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. 624. ALLOWANCE FOR TRAVEL PERFORMED IN CONNECTION WITH LEAVE
                  BETWEEN CONSECUTIVE OVERSEAS TOURS.

        (a) Additional Deferral.--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 the participation of the member in a
    critical operational mission, as determined by the Secretary concerned,
    the member may defer the travel, under the regulations referred to in
    paragraph (1), for a period not to exceed one year after the date on
    which the member's participation in the critical operational mission
    ends.''.
        (b) Application of Amendment.--The amendment made by subsection (a)
    shall apply to members of the uniformed services participating, on or
    after November 1, 1995, in critical operational missions designated by
    the Secretary of Defense.

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

    SEC. 631. INCREASE IN ANNUAL LIMIT ON DAYS OF INACTIVE DUTY TRAINING
                  CREDITABLE TOWARDS RESERVE RETIREMENT.

        (a) Increase in Limit.--Section 12733(3) is amended by inserting
    before the period at the end the following: ``before the year 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''.
        (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. 632. AUTHORITY FOR RETIREMENT IN GRADE IN WHICH A MEMBER HAS BEEN
                  SELECTED FOR PROMOTION WHEN A PHYSICAL DISABILITY
                  INTERVENES.

        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. 633. ELIGIBILITY FOR RESERVE DISABILITY RETIREMENT FOR RESERVES
                  INJURED WHILE AWAY FROM HOME OVERNIGHT FOR INACTIVE-DUTY
                  TRAINING.

        Section 1204(2) of title 10, United States Code, is amended by
    inserting before the semicolon at the end the following: ``or is
    incurred in line of duty 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 from the member's residence''.

    SEC. 634. 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 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 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 October 1, 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 October 1, 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 October 1, 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. 635. 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. 636. TECHNICAL CORRECTION TO PRIOR AUTHORITY FOR PAYMENT OF BACK
                  PAY 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 determined that
            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. 637. 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. 638. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME
                  WIDOWS.

        (a) Payments To Be Made by Secretary of Veterans Affairs.--Section
    4 of Public Law 92-425 (10 U.S.C. 1448 note) is 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 this title do not apply.
        ``(3) The Secretary concerned shall promptly notify the Secretary
    of Veterans Affairs of any change in beneficiaries under this
    section.''.
        (b) Effective Date.--Subsection (e) of section 4 of Public Law 92-
    425, as added by subsection (a), shall apply with respect to payments
    of benefits for any month after June 1997.

    SEC. 639. 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.
                                ``(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 the person for at least one
                    year immediately before the person's 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 retirement,
            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 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 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
    person notified 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 or approved by a
                            court order, or (II) has been filed with the
                            court of appropriate jurisdiction in accordance
                            with applicable 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 of age, 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 compensation; 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) Officer with enlisted service who is not yet eligible
            to retire as an officer.--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 offset computation.--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 provision of
                    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
                            retirees.--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 $421 (as adjusted
                                    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 through reserve-component
                            annuity coverage under the Plan.
                                ``(ii) Amount under pre-flat-rate
                            reduction.--An amount equal to 2\1/2\ percent
                            of the first $421 (as adjusted 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 after January 1, 1996, 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 after January 1, 1996. 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 shall be 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 under this 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.--
    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 amount
                    sufficient 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.''.

                           Subtitle E--Other Matters

    SEC. 651. TECHNICAL CORRECTION CLARIFYING ABILITY OF CERTAIN MEMBERS TO
                  ELECT NOT TO OCCUPY GOVERNMENT QUARTERS.

        Effective July 1, 1996, 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. 652. 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''.

                       TITLE VII--HEALTH CARE PROVISIONS

                        Subtitle A--Health Care Services

    SEC. 701. MEDICAL AND DENTAL CARE FOR RESERVE COMPONENT MEMBERS IN A
                  DUTY STATUS.

        (a) Availability of Medical and Dental Care.--(1) Section 1074a of
    title 10, United States Code, is amended to read as follows:
    ``Sec. 1074a. Medical and dental care: reserve component members in a
                  duty status
        ``(a) Health Care Described.--A person described in subsection (b)
    is entitled to the medical and dental care appropriate for the
    treatment of the injury, illness, or disease of the person until the
    person completes treatment and is physically able to resume the
    military duties of the person or has completed processing in accordance
    with chapter 61 of this title.
        ``(b) Members Entitled to Care.--Under joint regulations prescribed
    by the administering Secretaries, the following persons are entitled to
    the benefits described in this section:
                ``(1) Each member of a reserve component who incurs or
            aggravates an injury, illness, or disease in the line of duty
            while performing--
                        ``(A) active duty, including active duty for
                    training and annual training duty, or full-time
                    National Guard duty; or
                        ``(B) inactive-duty training, regardless of whether
                    the member is in a pay or nonpay status.
                ``(2) Each member of a reserve component who incurs or
            aggravates an injury, illness, or disease while traveling
            directly to or from the place at which that member is to
            perform or has performed--
                        ``(A) active duty, including active duty for
                    training and annual training duty, or full-time
                    National Guard duty, or
                        ``(B) inactive-duty training, regardless of whether
                    the member is in a pay or nonpay status.
                ``(3) Each member of a reserve component who incurs or
            aggravates an injury, illness, or disease in the line of duty
            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 of inactive-duty
            training is outside reasonable commuting distance from the
            member's residence.
        ``(c) Additional Benefits.--(1) At the request of a person
    described in paragraph (1)(A) or (2)(A) of subsection (b), the person
    may continue on active duty or full-time National Guard duty during any
    period of hospitalization resulting from the injury, illness, or
    disease.
        ``(2) A person described in subsection (b) is entitled to the pay
    and allowances authorized in accordance with subsections (g) and (h) of
    section 204 of title 37.
        ``(d) Limitation.--A person described in subsection (b) is not
    entitled to benefits under this section if the injury, illness, or
    disease, or aggravation of the injury, illness, or disease, is the
    result of the gross negligence or misconduct of the person.''.
        (2) The item relating to such section in the table of sections at
    the beginning of chapter 55 of title 10, United States Code, is amended
    to read as follows:

    ``1074a. Medical and dental care: reserve component members in a duty
                                status.''.
        (b) Annual Medical and Dental Screenings and Care for Certain
    Selected Reserve Members.--Section 10206 of title 10, United States
    Code, is amended by adding at the end the following new subsection:
        ``(c)(1) The Secretary of the Army shall provide to members of the
    Selected Reserve of the Army who are assigned to units scheduled for
    deployment within 75 days after mobilization the following medical and
    dental services:
                ``(A) An annual medical screening.
                ``(B) For members who are over 40 years of age, a full
            physical examination not less often than once every two years.
                ``(C) An annual dental screening.
                ``(D) The dental care identified in an annual dental
            screening as required to ensure that a member meets the dental
            standards required for deployment in the event of mobilization.
        ``(2) The services provided under this subsection shall be provided
    at no cost to the member.''.

                          Subtitle B--TRICARE Program

    SEC. 711. DEFINITION OF TRICARE PROGRAM.

        For purposes of this subtitle, 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. 712. 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 ``emergency''.

    SEC. 713. IMPROVED INFORMATION EXCHANGE BETWEEN MILITARY TREATMENT
                  FACILITIES AND TRICARE PROGRAM CONTRACTORS.

        (a) Uniform Interfaces.--With respect to the automated medical
    information system being developed by the Department of Defense and
    known as the Composite Health Care System, the Secretary of Defense
    shall ensure that 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) Phased Implementation.--The Secretary of Defense shall test the
    uniform version of the Composite Health Care System required under
    subsection (a) in one region of the TRICARE program for six months
    before deploying the information system throughout the health care
    delivery system of the uniformed services.

              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; 95 Stat. 603) 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
    managed health care services 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; 104 Stat. 1587) 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, 1996.
        (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 after fiscal year
    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 program 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 or health 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 services provided by
    a designated provider shall be full risk capitation. 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 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 their care 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.
        (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 this section 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 (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. AUTHORITY TO WAIVE OR REDUCE CHAMPUS DEDUCTIBLE AMOUNTS FOR
                  RESERVISTS CALLED TO ACTIVE DUTY IN SUPPORT OF
                  CONTINGENCY OPERATIONS.

        Section 1079(b) of title 10, United States Code, is amended--
                (1) by redesignating paragraphs (1) through (5) as
            subparagraphs (A) through (E), respectively;
                (2) by inserting ``(1)'' after ``(b)'';
                (3) in subparagraph (B), as so redesignated, by striking
            out ``clause (3)'' and inserting in lieu thereof ``subparagraph
            (C)'';
                (4) in subparagraph (D), as so redesignated--
                        (A) by striking out ``this clause'' and inserting
                    in lieu thereof ``this subparagraph''; and
                        (B) by striking out ``clauses (2) and (3)'' and
                    inserting in lieu thereof ``subparagraphs (B) and
                    (C)''; and
                (5) by adding at the end the following new paragraph:
        ``(2) The Secretary of Defense may waive or reduce the deductible
    amounts required by subparagraphs (B) and (C) of paragraph (1) in the
    case of the dependents of a member of a reserve component of the
    uniformed services who serves on active duty in support of a
    contingency operation under a call or order to active duty of less than
    one year.''.

    SEC. 733. 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) Except in an area in which the Secretary of Defense has
    entered into an at-risk contract for the provision of health care
    services, 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 costs lower than standard CHAMPUS for the required
    services.''.

    SEC. 734. CODIFICATION OF ANNUAL AUTHORITY TO CREDIT CHAMPUS REFUNDS TO
                  CURRENT YEAR APPROPRIATION.

        (a) Codification.--(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 supporting the program in the year in
    which the 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. 735. 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 Amendment.--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. 736. EXPANSION OF COLLECTION AUTHORITIES FROM THIRD-PARTY PAYERS.

        (a) Expansion of Collection Authorities.--Section 1095 of title 10,
    United States Code, is amended--
                (1) in subsection (g)(1), by inserting ``or through'' after
            ``provided at'';
                (2) in subsection (h)(1), by inserting before the period at
            the end of the first sentence the following: ``and a workers'
            compensation program or plan''; and
                (3) in subsection (h)(2)--
                        (A) by striking ``organization and'' and inserting
                    in lieu thereof ``organization,''; and
                        (B) by inserting before the period at the end the
                    following: ``, and personal injury protection or
                    medical payments benefits in cases involving personal
                    injuries resulting from operation of a motor vehicle''.
        (b) Inclusion of Third Party Payer in Collection Efforts.--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 a component of the Selected
            Reserve for a period not less than twice as long as the
            member's remaining active duty service obligation.
                ``(B) 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.
                ``(C) With the concurrence of the Secretary of Health and
            Human Services, transfer of the active duty service obligation
            to an obligation equal in time in the National Health Service
            Corps under section 338C of the Public Health Service Act (42
            U.S.C. 254m) and subject to all requirements and procedures
            applicable to obligated members of the National Health Service
            Corps.
                ``(D) 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) The Secretary of Defense shall prescribe regulations
    describing the manner in which an alternative obligation may be given
    under paragraph (1).''.
        (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
    comparable to the alternative obligations authorized in subparagraphs
    (A) and (B) of section 2123(e)(1) of this title 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.

    SEC. 742. EXCEPTION TO STRENGTH LIMITATIONS FOR PUBLIC HEALTH SERVICE
                  OFFICERS ASSIGNED TO 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. 743. CONTINUED OPERATION OF UNIFORMED SERVICES UNIVERSITY OF THE
                  HEALTH SCIENCES.

        (a) Closure Prohibited.--In light of the important role of the
    Uniformed Services University of the Health Sciences in providing
    trained health care providers for the uniformed services, Congress
    reaffirms the requirement contained in section 922 of the National
    Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
    Stat 2829) that the Uniformed Services University of the Health
    Sciences may not be closed.
        (b) Budgetary Commitment to Continuation.--It is the sense of
    Congress that the Secretary of Defense should budget for the operation
    of the Uniformed Services University of the Health Sciences during
    fiscal year 1998 at a level at least equal to the level of operations
    conducted at the University during fiscal year 1995.

    SEC. 744. 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.

    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.

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

                       Subtitle A--Acquisition Management

    SEC. 801. 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. 2340 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. 802. EXCLUSION FROM CERTAIN POST-EDUCATION DUTY ASSIGNMENTS FOR
                  MEMBERS OF ACQUISITION CORPS.

        Section 663(d) of title 10, United States Code, is amended by
    adding at the end the following new paragraph:
        ``(3) The Secretary of Defense may exclude from the requirements of
    paragraph (1) or (2) an officer who is a member of an Acquisition Corps
    established pursuant to 1731 of this title if the officer--
                ``(A) has graduated from a senior level course of
            instruction designed for personnel serving in critical
            acquisition positions; and
                ``(B) is assigned, upon graduation, to a critical
            acquisition position designated pursuant to section 1733 of
            this title.''.

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

        (a) Authority.--Section 845(a) of the National Defense
    Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat.
    1721) is amended by inserting after ``Agency'' the following: ``, the
    Secretary of a military department, or any other official designated by
    the Secretary of Defense''.
        (b) Period of Authority.--Section 845(c) of such Act is amended by
    striking out ``3 years after the date of the enactment of this Act''
    and inserting in lieu thereof ``on 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. 804. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR SYSTEMS.

        Section 2302(5) of title 10, United States Code, is amended--
                (1) by striking out ``$75,000,000 (based on fiscal year
            1980 constant dollars)'' and inserting in lieu thereof
    ``$115,000,000 (based on fiscal year 1990 dollars)'';
                (2) by striking out ``$300,000,000 (based on fiscal year
            1980 constant dollars)'' and inserting in lieu thereof
            ``$540,000,000 (based on fiscal year 1990 constant dollars)'';
            and
                (3) by adding at the end the following: ``The Secretary of
            Defense may adjust the amounts and the base fiscal year
            provided in clause (A) on the basis of Department of Defense
            escalation rates. An adjustment under this paragraph 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.''.

    SEC. 805. 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)--
                        (A) by striking out ``and'' at the end of
                    subparagraph (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. 806. INCREASE IN SIMPLIFIED ACQUISITION THRESHOLD FOR HUMANITARIAN
                  OR PEACEKEEPING OPERATIONS.

        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.''.

    SEC. 807. 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
    and 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. 808. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

        Paragraphs (1) and (2) of section 831(j) of the National Defense
    Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note) are each
    amended by striking out ``1996'' and inserting in lieu thereof
    ``1997''.

                           Subtitle B--Other Matters

    SEC. 821. AMENDMENT TO DEFINITION OF NATIONAL SECURITY SYSTEM UNDER
                  INFORMATION TECHNOLOGY MANAGEMENT REFORM ACT OF 1995.

        Section 5142(a) of the Information Technology Management Reform Act
    of 1996 (division E of Public Law 104-106; 110 Stat. 689; 40 U.S.C.
    1452) is amended--
                (1) by striking out ``or'' at the end of paragraph (4);
                (2) by striking out the period at the end of paragraph (5)
            and inserting in lieu thereof ``; or''; and
                (3) by adding at the end the following new paragraph:
                ``(6) involves the storage, processing, or forwarding of
            classified information and is protected at all times by
            procedures established for the handling of classified
            information.''.

    SEC. 822. 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) 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) 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) 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.
        ``(2) 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. 823. REPEAL OF ANNUAL REPORT BY ADVOCATE FOR COMPETITION.

        Section 20(b) of the Office of Federal Procurement Policy Act (41
    U.S.C. 418(b)) is amended--
                (1) by striking out ``and'' at the end of paragraph (3)(B);
                (2) by striking out paragraph (4); and
                (3) by redesignating paragraphs (5), (6), and (7) as
            paragraphs (4), (5), and (6), respectively.

    SEC. 824. REPEAL OF BIANNUAL REPORT ON PROCUREMENT REGULATORY ACTIVITY.

        Subsection (g) of section 25 of the Office of Federal Procurement
    Policy Act (41 U.S.C. 421) is repealed.

    SEC. 825. REPEAL 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''.

    SEC. 826. 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
                    contract; 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 ``that program,'' 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),'';
                (2) in paragraph (1)--
                        (A) by striking out ``for that program under a
                    contract'' and inserting in lieu thereof ``for 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. 827. 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. 828. TESTING OF DEFENSE ACQUISITION PROGRAMS.

        (a) In General.--Section 2366 of title 10, United States Code, is
    amended--
                (1) by striking out ``survivability'' each place it appears
            (including in the section heading) and inserting in lieu
            thereof ``vulnerability''; and
                (2) in subsection (b)--
                        (A) by striking out ``Survivability'' and inserting
                    in lieu thereof ``Vulnerability''; and
                        (B) by inserting after paragraph (2) the following
                    new paragraph:
        ``(3) Testing should begin at the component, subsystem, and
    subassembly level, culminating with tests of the complete system
    configured for combat.''.
        (b) Clerical Amendment.--The item relating to such section in the
    table of sections at the beginning of chapter 139 of such title is
    amended to read as follows:

    ``2366. Major systems and munitions programs: vulnerability testing and
                                lethality testing required before full-
                                scale production.''.

    SEC. 829. DEPENDENCY OF NATIONAL TECHNOLOGY AND INDUSTRIAL 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 with minimal
            reliance 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.''.
        (b) Assessment of Extent of United States Dependency on Foreign
    Source Items.--Subsection (c) of section 2505 of such title is amended
    to read as follows:
        ``(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
    shall include the following:
                ``(1) An assessment of the overall degree of dependence by
            the national technology and industrial base on such foreign
            items, including a comparison with the degree of dependence
            identified in the preceding assessment.
                ``(2) Identification of major systems (as defined in
            section 2302 of this title) under development or production
            containing such foreign items, including an identification of
            all such foreign items for each system.
                ``(3) An analysis of the production or development risks
            resulting from the possible disruption of access to such
            foreign items, including consideration of both peacetime and
            wartime scenarios.
                ``(4) An analysis of the importance of retaining domestic
            production sources for the items specified in section 2534 of
            this title.
                ``(5) A discussion of programs and initiatives in place to
            reduce dependence by the national technology and industrial
            base on such foreign items.
                ``(6) A discussion of proposed policy or legislative
            initiatives recommended to reduce the dependence of the
            national technology and industrial base on such foreign
            items.''.
        (c) Time for Completion of Next Defense Capability Assessment.--
    Notwithstanding the schedule prescribed by the Secretary of Defense
    under subsection (d) of section 2505 of title 10, United States Code,
    the National Defense Technology and Industrial Base Council shall
    complete the next defense capability assessment required under such
    section not later than March 1, 1997.

    SEC. 830. SENSE OF CONGRESS REGARDING TREATMENT OF DEPARTMENT OF
                  DEFENSE CABLE TELEVISION FRANCHISE AGREEMENTS.

        It is the sense of Congress that the United States Court of Federal
    Claims should transmit to Congress the report required by section 823
    of Public Law 104-106 (110 Stat. 399) on or before the date specified
    in that section.

    SEC. 831. EXTENSION OF DOMESTIC SOURCE LIMITATION FOR VALVES AND
                  MACHINE TOOLS.

        Subparagraph (C) of section 2534(c)(2) is amended by striking out
    ``1996'' and inserting in lieu thereof ``2001''.

          TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

    SEC. 901. ADDITIONAL REQUIRED REDUCTION IN DEFENSE ACQUISITION
                  WORKFORCE.

        Section 906(d) of the National Defense Authorization Act for Fiscal
    Year 1996 (Public Law 104-106; 110 Stat. 405) is amended--
                (1) in paragraph (1), by striking out ``during fiscal year
            1996'' and all that follows and inserting in lieu thereof ``so
            that--
                ``(A) the total number of such positions as of October 1,
            1996, is less than the baseline number by at least 15,000; and
                ``(B) the total number of such positions as of October 1,
            1997, is less than the baseline number by at least 40,000.'';
            and
                (2) 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 positions as of
    October 1, 1995.''.

    SEC. 902. 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 Department 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 limitation under that subsection with respect to
    that fiscal year may be waived. 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 limitation under that subsection with respect to that
    fiscal year may be waived. 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. 410) is repealed.

    SEC. 903. 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 in the
            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 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. 904. EXTENSION OF EFFECTIVE DATE FOR CHARTER FOR JOINT
                  REQUIREMENTS OVERSIGHT COUNCIL.

        Section 905(b) of the National Defense Authorization Act for Fiscal
    Year 1996 (Public Law 104-106; 110 Stat. 404) is amended by striking
    out ``January 31, 1997'' and inserting in lieu thereof ``January 31,
    1998''.

    SEC. 905. 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. 906. 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. 907. 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 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.''.

                          TITLE X--GENERAL PROVISIONS

                         Subtitle A--Financial Matters

    SEC. 1001. TRANSFER AUTHORITY.

        (a) Authority To Transfer Authorizations.--(1) Upon determination
    by the Secretary of Defense that such action is necessary in the
    national interest, the Secretary may transfer amounts of authorizations
    made available to the Department of Defense in this division for fiscal
    year 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 on National Security of the House of Representatives to
    accompany 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 BUDGET REQUESTS FOR DEFENSE AIRBORNE
                  RECONNAISSANCE PROGRAM.

        (a) Requirement.--The Secretary of Defense shall ensure that in the
    budget justification documents for any fiscal year there is set forth
    separately amounts requested for each program, project, or activity
    within the Defense Airborne Reconnaissance Program, with a unique
    program element provided for funds requested for research, development,
    test, and evaluation for each such program, project, or activity and a
    unique procurement line item provided for funds requested for
    procurement for each such program, project, or activity.
        (b) Defense Budget.--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.

                        Subtitle B--Reports and Studies

    SEC. 1021. 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
            in southern Iraq.
        (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. 1022. REPORT ON PROTECTION OF NATIONAL INFORMATION INFRASTRUCTURE.

        (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 the national policy on protecting the national
    information infrastructure against strategic attacks.
        (b) Matters To Be Included.--The report shall include the
    following:
                (1) A description of the national policy and plans to meet
            essential Government and civilian needs during a national
            security emergency associated with a strategic attack on
            elements of the national 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 critical national
            infrastructures described under paragraph (1).
        (c) Outstanding Issues.--The report shall also identify any
    outstanding issues in need of further study and resolution, such as
    technology and funding shortfalls, and legal and regulatory
    considerations.

    SEC. 1023. 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 military criminal investigative
    organizations with respect to the manner in which interviews of
    suspects and witnesses are conducted in connection with criminal
    investigations. The purpose of the survey shall be to ascertain whether
    or not investigators and agents from those organizations engage in
    illegal, unnecessary, or inappropriate harassment and intimidation of
    individuals being interviewed.
        (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 military
            criminal investigative organizations engage in illegal or
            inappropriate practices in connection with interviews of
            suspects in or witnesses to crimes.
                (2) The extent to which the interview policies established
            by the Department of Defense directive or service regulation
            are adequate to instruct and guide investigators in the proper
            conduct of subject and witness interviews.
                (3) The desirability and feasibility of requiring the video
            and audio recording of all interviews.
                (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 directives or regulations
            specify a prohibition against the display by agents of those
            organizations of weapons during interviews and the extent to
            which agents conducting interviews inappropriately display
            weapons during interviews.
                (6) The extent to which existing directives or regulations
            forbid agents of those organizations from making judgmental
            statements during interviews regarding the guilt of the
            interviewee or the consequences of failing to cooperate with
            investigators, and the extent to which agents conducting
            interviews nevertheless engage in such practices.
                (7) Any recommendation for legislation to ensure that
            investigators and agents of the military criminal investigative
            organizations use legal and proper tactics during interviews in
            connection with Department of Defense criminal investigations.
        (c) Results of Interviews and Surveys.--The Comptroller General
    shall include in the report under subsection (b) the results of
    interviews and surveys conducted under subsection (a) with persons who
    were witnesses or subjects in investigations conducted by military
    criminal investigative organizations.
        (d) Definition.--For the purposes of this section, the term
    ``military criminal investigative organization'' means any of the
    following:
                (1) The Army Criminal Investigation Command.
                (2) The Air Force Office of Special Investigations.
                (3) The Naval Criminal Investigative Service.
                (4) The Defense Criminal Investigative Service.

                           Subtitle C--Other Matters

    SEC. 1031. 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 1998 through 2001, the Secretary of Defense shall allocate to an
    information systems security program, under a separate program element,
    amounts as follows:
                (1) For fiscal year 1998, 2.5 percent.
                (2) For fiscal year 1999, 3.0 percent.
                (3) For fiscal year 2000, 3.5 percent.
                (4) For fiscal year 2001, 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
    information security development, acquisition, and operations.
        (c) Annual Report.--The Secretary of Defense shall submit to the
    congressional defense committee and congressional intelligence
    committees a report not later than April 15 of each year from 1998
    through 2002 that describes information security objectives of the
    Department of Defense, the progress made during the previous year in
    meeting those objectives, and plans of the Secretary with respect to
    meeting those objectives for the next fiscal year.

    SEC. 1032. 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.--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. The Secretary of Defense shall make such
    indemnification--
                ``(1) in the case of a claim for the loss of an aircraft
            hull, not later than 30 days following the date of the
            presentment of the claim to the Secretary of Transportation;
            and
                ``(2) in the case of any other claim, not later than 180
            days after the date on which the claim is determined by the
            Secretary of Transportation to be payable.
        ``(b) Source of Funds for Payment of Indemnity.--The Secretary 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 those funds,
            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) 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 added by
    section 364(a), the following new section:
    ``Sec. 2645. Indemnification of Department of Transportation for losses
                  covered by vessel war risk insurance
        ``(a) Prompt Indemnification Required.--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. The Secretary of Defense shall make such indemnification--
                ``(1) in the case of a claim for a loss to a vessel, not
            later than 90 days following the date of the adjudication or
            settlement of the claim by the Secretary of Transportation; and
                ``(2) in the case of any other claim, not later than 180
            days after the date on which the claim is determined by the
            Secretary of Transportation to be payable.
        ``(b) Source of Funds for Payment of Indemnity.--The Secretary 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.--(1) 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)).
        ``(2) In this subsection, 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)).
        ``(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 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.
        ``(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) 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) 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 364(c)(3), the following new item:

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

    SEC. 1033. AIRCRAFT ACCIDENT INVESTIGATION BOARDS.

        (a) Independence and Objectivity of Boards.--(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: independence and
                  objectivity
        ``(a) Required Membership of Boards.--Whenever the Secretary of a
    military department convenes a aircraft accident investigation board to
    conduct an accident investigation of an 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 voting members of the board are
            selected from units outside the chain of command of the mishap
            unit; and
                ``(2) at least one voting member of the board is an officer
            or an employee assigned to the relevant service safety center.
        ``(b) Determination of Units Outside Same Chain of Command.--For
    purposes of this section, a unit shall be considered to be outside the
    chain of command of another unit if the two units do not have a common
    commander in their respective chains of command below a position for
    which the authorized grade is major general or rear admiral.
        ``(c) Mishap Unit Defined.--In this section, the term `mishap
    unit', with respect to an aircraft accident investigation, means the
    unit of the armed forces (at the squadron level or equivalent) to which
    was assigned the flight crew of the aircraft that sustained the
    accident that is the subject of the investigation.
        ``(d) Service Safety Center.--For purposes of this section, a
    service safety center is the single office or separate operating agency
    of a military department that has responsibility for the management of
    aviation safety matters for that military department.''.
        (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: independence and
                                objectivity.''.
        (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. 1034. 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
        ``Under regulations prescribed by the Secretary concerned, funds
    appropriated to the Department of Defense may be expended for small
    meals and snacks during recruiting functions for the following persons:
                ``(1) Persons who have entered the Delayed Entry Program
            under section 513 of this title and other persons who are the
            subject of recruiting efforts.
                ``(2) Persons in communities who assist the military
            departments in recruiting efforts.
                ``(3) Military or civilian personnel whose attendance at
            such functions is mandatory.
                ``(4) Other persons whose presence at recruiting functions
            will contribute to recruiting efforts.''.
        (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. 1035. 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 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. 1036. 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. 1037. GEORGE C. MARSHALL EUROPEAN CENTER FOR STRATEGIC SECURITY
                  STUDIES.

        (a) Acceptance of Contributions.--The Secretary of Defense may
    accept, on behalf of the George C. Marshall European Center for
    Security Studies, from any foreign nation any contribution of money or
    services made by such nation to defray the cost of, or enhance the
    operations of, the George C. Marshall European Center for Security
    Studies. Such contributions may include guest lecturers, faculty
    services, research materials, and other donations through foundations
    or similar sources.
        (b) Notice to Congress.--The Secretary of Defense shall notify
    Congress if total contributions of money under subsection (a) exceed
    $2,000,000 in any fiscal year. Any such notice shall list the nations
    and the amounts of each such contribution.
        (c) Marshall Center Attendance and Reporting Requirement.--(1) The
    Secretary of Defense may authorize participation by a European or
    Eurasian nation in Marshall Center programs if--
                (A) the Secretary determines, after consultation with the
            Secretary of State, that such participation is in the national
            interest of the United States; and
                (B) the Secretary determines that such participation
            (notwithstanding any other provision of law) by that nation in
            Marshall Center programs will materially contribute to the
            reform of the electoral process or development of democratic
            institutions or democratic political parties in that nation.
        (2) The Secretary of Defense shall notify Congress of such
    determination not less than 90 days in advance of any such
    participation by such nation pursuant to the determination concerning
    that nation.
        (3) The Secretary of Defense shall submit to Congress an annual
    report on the participation of European and Eurasian nations in
    programs of the Marshall Center.
        (d) Marshall Center Board of Visitors.--(1) In the case of any
    United States citizen invited to serve without compensation on the
    Marshall Center Board of Visitors, the Secretary of Defense may waive
    any requirement for financial disclosure that would otherwise be
    applicable to that person by reason of service on such Board of
    Visitors.
        (2) Notwithstanding section 219 of title 18, United States Code, a
    non-United States citizen may serve on the Board even though registered
    as a foreign agent.

    SEC. 1038. PARTICIPATION OF MEMBERS, DEPENDENTS, AND OTHER PERSONS IN
                  CRIME PREVENTION EFFORTS AT INSTALLATIONS.

        (a) Crime Prevention.--The Secretary of Defense shall prescribe
    regulations intended to require 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.
        (b) Sanctions.--As part of the regulations, the Secretary shall
    consider the feasibility of imposing sanctions against a person
    described in subsection (a), particularly a member of the Armed Forces,
    who fails to report the occurrence of a crime or criminal activity as
    required by the regulations.
        (c) Report Regarding Implementation.--Not later than February 1,
    1997, the Secretary shall submit to Congress a report describing the
    plans of the Secretary to implement this section.

    SEC. 1039. TECHNICAL AND CLERICAL AMENDMENTS.

        (a) Corrections in Statutory References.--
                (1) Reference to command formerly known as the north
            american air 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''.
                (2) References to former naval records and history office
            and fund.--(A) Section 7222 of title 10, United States Code, is
            amended in subsections (a) and (c) by striking out ``Office of
            Naval Records and History'' each place it appears and inserting
            in lieu thereof ``Naval Historical Center''.
                (B)(i) The heading of such section is amended to read as
            follows:
    ``Sec. 7222. Naval Historical Center Fund''.
                (ii) 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.''.
                (C) 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.''.
                (3) 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)''.
        (b) 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, by striking out ``, beginning
                    on October 1, 1993,'' in subsections (a) and (b);
                        (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 the table 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) 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 10542(b)(21) is amended by striking out
            ``261'' and inserting in lieu thereof ``12001''.
                (21) Section 12205(a) is amended by striking out ``After
            September 30, 1995, no person'' and inserting in lieu thereof
            ``No person''.
        (c) 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 903(e)(1) (110 Stat. 402) is amended--
                        (A) in subparagraph (A), by striking out
                    ``paragraphs (6) and (8)'' and inserting in lieu
                    thereof ``paragraph (6)''; and
                        (B) in subparagraph (B), by inserting ``(8),''
                    after ``(7),'' and by striking out ``and (9),'' and
                    inserting in lieu thereof ``(9), and (10),''.
                (3) Section 1092(b)(2) (110 Stat. 460) is amended by
            striking out the period at the end and inserting in lieu
            thereof ``; and''.
                (4) Section 4301(a)(1) (110 Stat. 656) is amended by
            inserting ``of subsection (a)'' after ``in paragraph (2)''.
                (5) 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''.
        (d) 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.
        (e) 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 and
                    inserting in lieu thereof ``An''.
        (f) 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.

    SEC. 1040. PROHIBITION ON CARRYING OUT SR-71 STRATEGIC RECONNAISSANCE
                  PROGRAM DURING FISCAL YEAR 1997.

        The Secretary of Defense may not carry out any aerial
    reconnaissance program during fiscal year 1997 using the SR-71
    aircraft.

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

    SEC. 1101. 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. 1102. FISCAL YEAR 1997 FUNDING ALLOCATIONS.

        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, $74,500,000.
                (2) For elimination of strategic offensive weapons in
            Russia, Ukraine, Belarus, and Kazakhstan, $52,000,000.
                (3) For nuclear infrastructure elimination in Ukraine,
            Belarus, and Kazakhstan, $47,000,000.
                (4) For planning and design of a storage facility for
            Russian fissile material, $46,000,000.
                (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 $19,900,000.

    SEC. 1103. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

        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 defense conversion.
                (4) Provision of assistance to promote environmental
            restoration.
                (5) Provision of assistance to promote job retraining.

    SEC. 1104. 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 1997 required under section
            1205(c) of the National Defense Authorization Act for Fiscal
            Year 1995 (Public Law 103-337; 108 Stat. 2883).

    SEC. 1105. 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 XII--RESERVE FORCES REVITALIZATION

    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. Army Reserve Command.
    ``10172. Naval Reserve Force.
    ``10173. Marine Forces Reserve.
    ``10174. Air Force Reserve Command.

    ``Sec. 10171. Army Reserve Command
        ``(a) Establishment of Command.--The Secretary of the Army, with
    the advice and assistance of the Chief of Staff of the Army, shall
    establish a United States Army Reserve Command. The Army Reserve
    Command shall be operated as a separate command of the Army.
        ``(b) Commander.--The Chief of Army Reserve is the commander of the
    Army Reserve Command. The commander of the Army Reserve Command reports
    directly to the Chief of Staff of the Army.
        ``(c) Assignment of Forces.--The Secretary of the Army--
                ``(1) shall assign to the Army Reserve Command all forces
            of the Army 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 Army specified in section 3013 of this
            title, shall assign all such forces assigned to the Army
            Reserve Command under paragraph (1) to the commanders of the
            combatant commands in the manner specified by the Secretary of
            Defense.
    ``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
            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.

        (a) In General.--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. CODIFICATION OF ANNUAL AUTHORITY TO PAY TRANSIENT HOUSING
                  CHARGES OR PROVIDE LODGING IN KIND FOR MEMBERS PERFORMING
                  ACTIVE DUTY FOR TRAINING OR INACTIVE-DUTY TRAINING.

        (a) Codification.--Section 404(j) of title 37, United States Code,
    is amended--
                (1) in paragraph (1)--
                        (A) by striking out ``annual training duty'' and
                    inserting in lieu thereof ``active duty for training'';
                    and
                        (B) by striking out ``the Secretary concerned may''
                    and all that follows through the period and inserting
    in lieu thereof the following ``the Secretary concerned--
                ``(A) may reimburse the member for housing service charge
            expenses incurred by the member in occupying transient
            government housing during the performance of such duty; or
                ``(B) if transient government quarters are unavailable, may
            provide the member with contract quarters as lodging in kind as
            if the member were entitled to such an allowance under
            subsection (a).''; and
                (2) in paragraph (3), by inserting ``and expenses for
            contract quarters'' after ``service charge expenses''.
        (b) Conforming Repeal.--Section 8057 of the Department of Defense
    Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 663), is
    repealed.

    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. COMMENDATION OF 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 Armed Forces 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.

    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.

                  TITLE XIII--ARMS CONTROL AND RELATED MATTERS

                       Subtitle A--Miscellaneous Matters

    SEC. 1301. ONE-YEAR EXTENSION OF COUNTER- PROLIFERATION AUTHORITIES.

        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''.

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

        (a) Limitation on Use of Funds.--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 strategic nuclear delivery systems specified in subsection (b).
        (b) Specified Systems.--Subsection (a) applies with respect to the
    following systems:
                (1) B-52H bomber aircraft.
                (2) Trident ballistic missile submarines.
                (3) Minuteman III intercontinental ballistic missiles.
                (4) Peacekeeper intercontinental ballistic missiles.

    SEC. 1303. CERTIFICATION REQUIRED BEFORE OBSERVANCE OF MORATORIUM ON
                  USE BY ARMED FORCES OF ANTIPERSONNEL LANDMINES.

        Any moratorium imposed by law (whether enacted before, on, or after
    the date of the enactment of this Act) on the use of antipersonnel
    landmines by the Armed Forces may be implemented only if (and after)
    the Secretary of Defense, after consultation with the Chairman of the
    Joint Chiefs of Staff, certifies to Congress that--
                (1) the moratorium will not adversely affect the ability of
            United States forces to defend against attack on land by
            hostile forces; and
                (2) the Armed Forces have systems that are effective
            substitutes for antipersonnel landmines.

    SEC. 1304. DEPARTMENT OF DEFENSE DEMINING PROGRAM.

        Section 401(c) of title 10, United States Code, is amended--
                (1) by redesignating paragraph (2) as paragraph (3); and
                (2) by inserting after paragraph (1) the following new
            paragraph (2):
        ``(2) In the case of assistance described in subsection (e)(5),
    expenses that may be paid out of funds appropriated pursuant to
    paragraph (1) include--
                ``(A) expenses for travel, transportation, and subsistence
            of members of the armed forces participating in activities
            described in that subsection; and
                ``(B) the cost of equipment, supplies, and services
            acquired for the purpose of carrying out or directly supporting
            activities described in that subsection.''.

    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 the development of advanced intelligence, surveillance,
            and reconnaissance capabilities, including gaining access to
            commercial or third-party systems with military significance.
                (2) Efforts by the People's Republic of China to develop
            highly accurate and stealthy ballistic and cruise missiles,
            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
            command and control networks, particularly those capable of
            battle management of 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 for military
            purposes, including commercial land surveillance satellites,
            particularly those signs indicative of an attempt to increase
            accuracy of weapons or 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. 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 Joint Defense 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. 1307. 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. 1308. 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'' (hereinafter 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) 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 responsibilities.

    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.

                        TITLE XIV--SIKES ACT IMPROVEMENT

    SEC. 1401. SHORT TITLE.

        This title may be cited as the ``Sikes Act Improvement Amendments
    of 1996''.

    SEC. 1402. DEFINITION OF SIKES ACT FOR PURPOSES OF AMENDMENTS.

        In this title, the term ``Sikes Act'' means the Act entitled ``An
    Act to promote effectual planning, development, maintenance, and
    coordination of wildlife, fish, and game conservation and
    rehabilitation in military reservations'', approved September 15, 1960
    (16 U.S.C. 670a et seq.), commonly referred to as the ``Sikes Act''.

    SEC. 1403. CODIFICATION OF SHORT TITLE OF ACT.

        The Sikes Act (16 U.S.C. 670a et seq.) is amended by inserting
    before title I the following new section:

    ``SECTION 1. SHORT TITLE.

        ``This Act may be cited as the `Sikes Act'.''.

    SEC. 1404. INTEGRATED NATURAL RESOURCE MANAGEMENT PLANS.

        (a) Plans Required.--Section 101(a) of the Sikes Act (16 U.S.C.
    670a(a)) is amended--
                (1) by striking out ``is authorized to'' and inserting in
            lieu thereof ``shall'';
                (2) by striking out ``in each military reservation in
            accordance with a cooperative plan'' and inserting in lieu
            thereof the following: ``on military installations. Under the
            program, the Secretary shall prepare and implement for each
            military installation in the United States an integrated
            natural resource management plan'';
                (3) by inserting after ``reservation is located'' the
            following: ``, except that the Secretary is not required to
            prepare such a plan for a military installation if the
            Secretary determines that preparation of such a plan for the
            installation is not appropriate''; and
                (4) by inserting ``(1)'' after ``(a)'' and adding at the
            end the following new paragraph:
        ``(2) Consistent with essential military requirements to enhance
    the national security of the United States, the Secretary of Defense
    shall manage each military installation to provide--
                ``(A) for the conservation of fish and wildlife on the
            military installation and sustained multipurpose uses of those
            resources, including hunting, fishing, and trapping; and
                ``(B) public access that is necessary or appropriate for
            those uses.''.
        (b) Conforming Amendments.--Title I of the Sikes Act is amended--
                (1) in section 101(b) (16 U.S.C. 670a(b)), in the matter
            preceding paragraph (1) by striking out ``cooperative plan''
            and inserting in lieu thereof ``integrated natural resource
            management plan'';
                (2) in section 101(b)(4) (16 U.S.C. 670a(b)(4)), by
            striking out ``cooperative plan'' each place it appears and
            inserting in lieu thereof ``integrated natural resource
            management plan'';
                (3) in section 101(c) (16 U.S.C. 670a(c)), in the matter
            preceding paragraph (1) by striking out ``a cooperative plan''
            and inserting in lieu thereof ``an integrated natural resource
            management plan'';
                (4) in section 101(d) (16 U.S.C. 670a(d)), in the matter
            preceding paragraph (1) by striking out ``cooperative plans''
            and inserting in lieu thereof ``integrated natural resource
            management plans'';
                (5) in section 101(e) (16 U.S.C. 670a(e)), by striking out
            ``Cooperative plans'' and inserting in lieu thereof
            ``Integrated natural resource management plans'';
                (6) in section 102 (16 U.S.C. 670b), by striking out ``a
            cooperative plan'' and inserting in lieu thereof ``an
            integrated natural resource management plan'';
                (7) in section 103 (16 U.S.C. 670c), by striking out ``a
            cooperative plan'' and inserting in lieu thereof ``an
            integrated natural resource management plan'';
                (8) in section 106(a) (16 U.S.C. 670f(a)), by striking out
            ``cooperative plans'' and inserting in lieu thereof
            ``integrated natural resource management plans''; and
                (9) in section 106(c) (16 U.S.C. 670f(c)), by striking out
            ``cooperative plans'' and inserting in lieu thereof
            ``integrated natural resource management plans''.
        (c) Contents of Plans.--Section 101(b) of the Sikes Act (16 U.S.C.
    670a(b)) is amended--
                (1) in paragraph (1)--
                        (A) in subparagraph (C), by striking out ``and''
                    after the semicolon;
                        (B) in subparagraph (D), by striking out the
                    semicolon at the end and inserting in lieu thereof a
                    comma; and
                        (C) by adding at the end the following new
                    subparagraphs:
                        ``(E) wetland protection and restoration, and
                    wetland creation where necessary, for support of fish
                    or wildlife,
                        ``(F) consideration of conservation needs for all
                    biological communities, and
                        ``(G) the establishment of specific natural
                    resource management goals, objectives, and time-frames
                    for proposed actions;'';
                (2) by striking out paragraph (3);
                (3) by redesignating paragraph (2) as paragraph (3);
                (4) by inserting after paragraph (1) the following new
            paragraph:
                ``(2) shall for the military installation for which it is
            prepared--
                        ``(A) address the needs for fish and wildlife
                    management, land management, forest management, and
                    wildlife-oriented recreation,
                        ``(B) ensure the integration of, and consistency
                    among, the various activities conducted under the plan,
                        ``(C) ensure that there is no net loss in the
                    capability of installation lands to support the
                    military mission of the installation,
                        ``(D) provide for sustained use by the public of
                    natural resources, to the extent that such use is not
                    inconsistent with the military mission of the
                    installation or the needs of fish and wildlife
                    management,
                        ``(E) provide the public access to the installation
                    that is necessary or appropriate for that use, to the
                    extent that access is not inconsistent with the
                    military mission of the installation, and
                        ``(F) provide for professional enforcement of
                    natural resource laws and regulations;''; and
                (5) in paragraph (4)(A), by striking out ``collect the fees
            therefor,'' and inserting in lieu thereof ``collect, spend,
            administer, and account for fees therefor,''.
        (d) Public Comment.--Section 101 of the Sikes Act (16 U.S.C. 670a)
    is amended by adding at the end the following new subsection:
        ``(f) Public Comment.--The Secretary of Defense shall provide an
    opportunity for public comment on each integrated natural resource
    management plan prepared under subsection (a).''.

    SEC. 1405. REVIEW FOR PREPARATION OF INTEGRATED NATURAL RESOURCE
                  MANAGEMENT PLANS.

        (a) Review of Military Installations.--
                (1) Review.--The Secretary of each military department
            shall, by not later than nine months after the date of the
            enactment of this Act--
                        (A) review each military installation in the United
                    States that is under the jurisdiction of that Secretary
                    to determine the military installations for which the
                    preparation of an integrated natural resource
                    management plan under section 101 of the Sikes Act, as
                    amended by this title, is appropriate; and
                        (B) submit to the Secretary of Defense a report on
                    those determinations.
                (2) Report to congress.--The Secretary of Defense shall, by
            not later than 12 months after the date of the enactment of
            this Act, submit to the Congress a report on the reviews
            conducted under paragraph (1). The report shall include--
                        (A) a list of those military installations reviewed
                    under paragraph (1) for which the Secretary of Defense
                    determines the preparation of an integrated natural
                    resource management plan is not appropriate; and
                        (B) for each of the military installations listed
                    under subparagraph (A), an explanation of the reasons
                    such a plan is not appropriate.
        (b) Deadline for Integrated Natural Resource Management Plans.--Not
    later than two years after the date of the submission of the report
    required under subsection (a)(2), the Secretary of Defense shall, for
    each military installation for which the Secretary has not determined
    under subsection (a)(2)(A) that preparation of an integrated natural
    resource management plan is not appropriate--
                (1) prepare and begin implementing such a plan mutually
            agreed to by the Secretary of the Interior and the head of the
            appropriate State agencies under section 101(a) of the Sikes
            Act, as amended by this title; or
                (2) in the case of a military installation for which there
            is in effect a cooperative plan under section 101(a) of the
            Sikes Act on the day before the date of the enactment of this
            Act, complete negotiations with the Secretary of the Interior
            and the heads of the appropriate State agencies regarding
            changes to that plan that are necessary for the plan to
            constitute an integrated natural resource plan that complies
            with that section, as amended by this title.
        (c) Public Comment.--The Secretary of Defense shall provide an
    opportunity for the submission of public comments on--
                (1) integrated natural resource management plans proposed
            pursuant to subsection (b)(1); and
                (2) changes to cooperative plans proposed pursuant to
            subsection (b)(2).

    SEC. 1406. ANNUAL REVIEWS AND REPORTS.

        Section 101 of the Sikes Act (16 U.S.C. 670a) is amended by adding
    after subsection (f) (as added by section 1404(d)) the following new
    subsection:
        ``(g) Reviews and Reports.--
                ``(1) Secretary of defense.--The Secretary of Defense
            shall, by not later than March 1 of each year, review the
            extent to which integrated natural resource management plans
            were prepared or in effect and implemented in accordance with
            this Act in the preceding year, and submit a report on the
            findings of that review to the committees. Each report shall
            include--
                        ``(A) the number of integrated natural resource
                    management plans in effect in the year covered by the
                    report, including the date on which each plan was
    issued in final form or most recently revised;
                        ``(B) the amount of moneys expended on conservation
                    activities conducted pursuant to those plans in the
                    year covered by the report, including amounts expended
                    under the Legacy Resource Management Program
                    established under section 8120 of the Act of November
                    5, 1990 (Public Law 101-511; 104 Stat. 1905); and
                        ``(C) an assessment of the extent to which the
                    plans comply with the requirements of subsection (b)(1)
                    and (2), including specifically the extent to which the
                    plans ensure in accordance with subsection (b)(2)(C)
                    that there is no net loss of lands to support the
                    military missions of military installations.
                ``(2) Secretary of the interior.--The Secretary of the
            Interior, by not later than March 1 of each year and in
            consultation with State agencies responsible for conservation
            or management of fish or wildlife, shall submit a report to the
            committees on the amount of moneys expended by the Department
            of the Interior and those State agencies in the year covered by
            the report on conservation activities conducted pursuant to
            integrated natural resource management plans.
                ``(3) Committees defined.--For purposes of this subsection,
            the term `committees' means the Committee on Resources and the
            Committee on National Security of the House of Representatives
            and the Committee on Armed Services and the Committee on
            Environment and Public Works of the Senate.''.

    SEC. 1407. TRANSFER OF WILDLIFE CONSERVATION FEES FROM CLOSED MILITARY
                  INSTALLATIONS.

        Section 101(b)(4)(B) of the Sikes Act (16 U.S.C. 670a(b)(4)(B)) is
    amended by inserting before the period at the end the following: ``,
    unless that military installation is subsequently closed, in which case
    the fees may be transferred to another military installation to be used
    for the same purposes''.

    SEC. 1408. FEDERAL ENFORCEMENT OF INTEGRATED NATURAL RESOURCE
                  MANAGEMENT PLANS AND ENFORCEMENT OF OTHER LAWS.

        Title I of the Sikes Act (16 U.S.C. 670a et seq.) is amended--
                (1) by redesignating section 106, as amended by section
            1404(b), as section 109; and
                (2) by inserting after section 105 the following new
            section:

    ``SEC. 106. FEDERAL ENFORCEMENT OF OTHER LAWS.

        ``All Federal laws relating to the conservation of natural
    resources on Federal lands may be enforced by the Secretary of Defense
    with respect to violations of those laws which occur on military
    installations within the United States.''.

    SEC. 1409. NATURAL RESOURCE MANAGEMENT SERVICES.

        Title I of the Sikes Act (16 U.S.C. 670a et seq.) is amended by
    inserting after section 106 (as added by section 1408) the following
    new section:

    ``SEC. 107. NATURAL RESOURCE MANAGEMENT SERVICES.

        ``The Secretary of each military department shall ensure that
    sufficient numbers of professionally trained natural resource
    management personnel and natural resource law enforcement personnel are
    available and assigned responsibility to perform tasks necessary to
    comply with this Act, including the preparation and implementation of
    integrated natural resource management plans.''.

    SEC. 1410. DEFINITIONS.

        Title I of the Sikes Act (16 U.S.C. 670a et seq.) is amended by
    inserting after section 107 (as added by section 1409) the following
    new section:

    ``SEC. 108. DEFINITIONS.

        ``In this title:
                ``(1) Military installation.--The term `military
            installation'--
                        ``(A) means any land or interest in land owned by
                    the United States and administered by the Secretary of
                    Defense or the Secretary of a military department; and
                        ``(B) includes all public lands withdrawn from all
                    forms of appropriation under public land laws and
                    reserved for use by the Secretary of Defense or the
                    Secretary of a military department.
                ``(2) State fish and wildlife agency.--The term `State fish
            and wildlife agency' means an agency of State government that
            is responsible under State law for managing fish or wildlife
            resources.
                ``(3) United states.--The term `United States' means the
            States, the District of Columbia, and the territories and
            possessions of the United States.''.

    SEC. 1411. COOPERATIVE AGREEMENTS.

        (a) Cost Sharing.--Section 103a(b) of the Sikes Act (16 U.S.C.
    670c-1(b)) is amended by striking out ``matching basis'' each place it
    appears and inserting in lieu thereof ``cost-sharing basis''.
        (b) Accounting.--Section 103a(c) of the Sikes Act (16 U.S.C. 670c-
    1(c)) is amended by inserting before the period at the end the
    following: ``, and shall not be subject to section 1535 of that
    title''.

    SEC. 1412. REPEAL OF SUPERSEDED PROVISION.

        Section 2 of the Act of October 27, 1986 (Public Law 99-651; 16
    U.S.C. 670a-1), is repealed.

    SEC. 1413. CLERICAL AMENDMENTS.

        Title I of the Sikes Act, as amended by this title, is amended--
                (1) in the heading for the title by striking out ``military
            reservations'' and inserting in lieu thereof ``military
            installations'';
                (2) in section 101(a) (16 U.S.C. 670a(a)), by striking out
            ``the reservation'' and inserting in lieu thereof ``the
            installation'';
                (3) in section 101(b)(4) (16 U.S.C. 670a(b)(4))--
                        (A) in subparagraph (A), by striking out ``the
                    reservation'' and inserting in lieu thereof ``the
                    installation''; and
                        (B) in subparagraph (B), by striking out ``the
                    military reservation'' and inserting in lieu thereof
                    ``the military installation'';
                (4) in section 101(c) (16 U.S.C. 670a(c))--
                        (A) in paragraph (1), by striking out ``a military
                    reservation'' and inserting in lieu thereof ``a
                    military installation''; and
                        (B) in paragraph (2), by striking out ``the
                    reservation'' and inserting in lieu thereof ``the
                    installation'';
                (5) in section 102 (16 U.S.C. 670b), by striking out
            ``military reservations'' and inserting in lieu thereof
            ``military installations''; and
                (6) in section 103 (16 U.S.C. 670c)--
                        (A) by striking out ``military reservations'' and
                    inserting in lieu thereof ``military installations'';
                    and
                        (B) by striking out ``such reservations'' and
                    inserting in lieu thereof ``such installations''.

    SEC. 1414. AUTHORIZATIONS OF APPROPRIATIONS.

        (a) Programs on Military Installations.--Subsections (b) and (c) of
    section 109 of the Sikes Act (as redesignated by section 1408) are each
    amended by striking out ``1983'' and all that follows through ``1993,''
    and inserting in lieu thereof ``1983 through 1998,''.
        (b) Programs on Public Lands.--Section 209 of the Sikes Act (16
    U.S.C. 670o) is amended--
                (1) in subsection (a), by striking out ``the sum of
            $10,000,000'' and all that follows through ``to enable the
            Secretary of the Interior'' and inserting in lieu thereof
            ``$4,000,000 for each of fiscal years 1997 and 1998, to enable
            the Secretary of the Interior''; and
                (2) in subsection (b), by striking out ``the sum of
            $12,000,000'' and all that follows through ``to enable the
            Secretary of Agriculture'' and inserting in lieu thereof
            ``$5,000,000 for each of fiscal years 1997 and 1998, to enable
            the Secretary of Agriculture''.

                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.

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2104(a)(1), 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
    ------------------------------------------------------------------------
    Arizona......................  Fort Huachuca............     $21,000,000
    California...................  Army project, Naval
                                    Weapons Station, Concord     $27,000,000
                                   Camp Roberts.............      $5,500,000
                                   Fort Irwin...............      $7,000,000
    Colorado.....................  Fort Carson..............     $17,550,000
    District of Columbia.........  Fort McNair..............      $6,900,000
    Georgia......................  Fort Benning.............     $53,400,000
                                   Fort McPherson...........      $9,100,000
                                   Fort Stewart, Hunter Army
                                    Air Field...............      $6,000,000
    Kansas.......................  Fort Riley...............     $26,000,000
    Kentucky.....................  Fort Campbell............     $51,100,000
                                   Fort Knox................     $20,500,000
    New Jersey...................  Picatinny Arsenal........      $7,500,000
    New Mexico...................  White Sands Missile Range     $10,000,000
    New York.....................  Fort Drum................     $11,400,000
    North Carolina...............  Fort Bragg...............     $14,000,000
    Texas........................  Fort Hood................     $52,700,000
    Virginia.....................  Fort Eustis..............      $3,550,000
    Washington...................  Fort Lewis...............     $54,600,000
    CONUS Classified.............  Classified Location......      $4,600,000
                                       Total................    $409,400,000
    ------------------------------------------------------------------------

        (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
                                     Spinelli Barracks......      $8,100,000
                                     Taylor Barracks........      $9,300,000
    Italy..........................  Camp Ederle, Vincenza..      $3,100,000
    Korea..........................  Camp Casey.............     $16,000,000
                                     Camp Red Cloud.........     $14,000,000
    Overseas Classified............  Classified Location....     $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)(6)(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
    ----------------------------------------------------------------------------------------------------------------
    Alabama...............................  Redstone Arsenal.........  70 Units.....................      $8,000,000
    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...............  85 Units.....................     $12,000,000
                                            Fort Hood................  140 Units....................     $18,500,000
                                                                                                     ---------------
                                                                           Total:...................     $59,190,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2104(a)(6)(A), the
    Secretary of the Army may carry out architectural and engineering
    services and construction design activities 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
    sections 2104(a)(6)(A), the Secretary of the Army may improve existing
    military family housing units in an amount not to exceed $114,450,000.

    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 $2,037,653,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2101(a), $409,400,000.
                (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,
            $8,000,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $54,384,000.
                (5) For demolition of excess facilities under section 2814
            of title 10, United States Code, as added by section 2802,
            $10,000,000.
                (6) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $176,603,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $1,257,466,000.
        (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 the total amount authorized to be appropriated under
    paragraphs (1) and (2) of subsection (a).

    SEC. 2105. CORRECTION IN AUTHORIZED USES OF FUNDS, FORT IRWIN,
                  CALIFORNIA.

        In the case of amounts appropriated pursuant to the authorization
    of appropriations in section 2104(a)(1) of the Military Construction
    Authorization Act for Fiscal Year 1995 (division B of Public Law 103-
    337) and section 2104(a)(1) of the Military Construction Authorization
    Act for Fiscal Year 1996 (division B of Public Law 104-106) for a
    military construction project for Fort Irwin, California, involving the
    construction of an air field for the National Training Center at
    Barstow-Daggett, California, the Secretary of the Army may use such
    amounts for the construction of a heliport at the same location.

                                TITLE XXII--NAVY

    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), 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
                                      Navajo................      $3,920,000
                                     Marine Corps Air
                                      Station, Yuma.........     $14,600,000
    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     $51,630,000
                                      Pendleton.
                                     Naval Air Station,          $86,502,000
                                      North Island.
                                     Naval Facility, San         $17,000,000
                                      Clemente Island.
                                     Naval Station, San           $7,050,000
                                      Diego.
                                     Naval Command Control &
                                      Ocean Surveillance
                                      Center, San Diego.....      $1,960,000
    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........................  Marine Corps Logistics       $1,630,000
                                      Base, Albany.
                                     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
    Nevada.........................  Naval Air Station,          $16,200,000
                                      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         $4,990,000
                                      Detachment, Parris
                                      Island.
    Texas..........................  Naval Station,              $16,850,000
                                      Ingleside.
                                     Naval Air Station,           $1,810,000
                                      Kingsville.
    Virginia.......................  Armed Forces Staff          $12,900,000
                                      College, Norfolk.
                                     Fleet Combat Training
                                      Command, Dam Neck.....      $7,000,000
                                     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       $6,800,000
                                      Center.
    CONUS Various..................  Defense access roads...        $300,000
                                                             ---------------

                                         Total..............    $583,652,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2204(a)(2), 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,     $11,050,000
                                      Souda Bay.
    Italy..........................  Naval Air Station,          $15,700,000
                                      Sigonella.
                                     Naval Support Activity,      $8,620,000
                                      Naples.
    United Kingdom.................  Joint Maritime
                                      Communications Center,
                                      St. Mawgan............      $4,700,000
                                                             ---------------
                                         Total..............     $46,050,000
    ------------------------------------------------------------------------

    SEC. 2202. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2204(a)(6)(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 Facility...........      $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...............  466 Units....................     $63,429,000
    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.................  125 Units....................     $13,360,000
    South Carolina........................  Marine Corps Air Station,
                                             Beaufort................  200 Units....................     $19,110,000
    Texas.................................   Corpus Christi Naval
                                             Complex.................  156 Units....................     $17,425,000
                                            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....................    $300,771,000

    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2204(a)(6)(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)(6)(A), the Secretary of the Navy may improve existing
    military family housing units in an amount not to exceed $209,133,000.

    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 $2,309,273,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2201(a), $583,652,000.
                (2) For military construction projects outside the United
            States authorized by section 2201(b), $46,050,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $8,115,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $50,959,000.
                (5) For demolition of excess facilities under section 2814
            of title 10, United States Code, as added by section 2802,
            $10,000,000.
                (6) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $532,456,000.
                        (B) For support of military housing (including
                    functions described in section 2833 of title 10, United
                    States Code), $1,058,241,000.
                (7) For the construction of a bachelor enlisted quarters at
            the Naval Construction Batallion 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.
                (8) 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.
                (9) 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 the total amount authorized to be appropriated under
    paragraphs (1) and (2) of subsection (a).
        (c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (9) 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
    endeavor to 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.
        (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,
    except that, within amounts appropriated for the project, Federal
    expenditures may not exceed $9,630,000 for beach replenishment.

    SEC. 2206. 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.

                             TITLE XXIII--AIR FORCE

    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.
    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..     $16,230,000
                                     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...      $7,980,000
    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........................  Robins Air Force Base..     $22,645,000
    Idaho..........................  Mountain Home Air Force     $15,845,000
                                      Base.
    Kansas.........................  McConnell Air Force         $15,580,000
                                      Base.
    Louisiana......................  Barksdale Air Force          $4,890,000
                                      Base.
    Maryland.......................  Andrews Air Force Base.      $5,990,000
    Mississippi....................  Keesler Air Force Base.     $14,465,000
    Nevada.........................  Indian Springs Air
                                      Force Auxiliary Air
                                      Field.................      $4,690,000
    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....      $5,665,000
    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
                                      Base..................      $3,700,000
                                                             ---------------
                                         Total..............    $525,684,000
    ------------------------------------------------------------------------

        (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)(6)(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      25 units.....................      $6,425,000
                                             Base.
                                            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 units......................        $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
    Maryland..............................  Hanscom Air Force Base...  32 units.....................      $5,100,000
    Missouri..............................  Whiteman Air Force Base..  68 units.....................      $9,600,000
    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..  132 units....................     $11,500,000
                                            Lackland Air Force Base..  Ancillary Facility...........        $800,000
    Washington............................  McChord Air Force Base...  50 units.....................      $5,659,000
                                                                                                     ---------------
                                                                           Total....................    $168,828,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2304(a)(6)(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)(6)(A), the Secretary of the Air Force may improve
    existing military family housing units in an amount not to exceed
    $125,650,000.

    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
    $1,823,456,000 as follows:
                (1) For military construction projects inside the United
            States authorized by section 2301(a), $525,684,000.
                (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, $12,328,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $47,387,000.
                (5) For demolition of excess facilities under section 2814
            of title 10, United States Code, as added by section 2802,
            $10,000,000.
                (6) For military housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $304,068,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $840,474,000.
                (7) 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).

                          TITLE XXIV--DEFENSE AGENCIES

    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 such 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
                                     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..........     $18,000,000
                                     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..      $1,300,000
                                     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..............    $509,590,000
    ------------------------------------------------------------------------

        (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), $35,000,000 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), $10,000,000 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 out any 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 $3,431,670,000 as follows:
                (1) For military construction projects inside the United
            States authorized by section 2401(a), $346,487,000.
                (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 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,
            $16,874,000.
                (10) For unspecified minor construction projects under
            section 2805 of title 10, United States Code, $9,500,000.
                (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, $35,000,000.
                        (D) For credit to the Department of Defense
                    Military Unaccompanied Housing Improvement Fund as
                    authorized by section 2404(a)(2) of this Act,
                    $10,000,000.
                        (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) $161,503,000 (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).

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                    PROGRAM

    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 $177,000,000.

                TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

    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, $41,316,000; and
                        (B) for the Army Reserve, $50,159,000.
                (2) For the Department of the Navy, for the Naval and
            Marine Corps Reserve, $33,169,000.
                (3) For the Department of the Air Force--
                        (A) for the Air National Guard of the United
                    States, $118,394,000; and
                        (B) for the Air Force Reserve, $51,655,000.

            TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

    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 Infrastructure 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 Infrastructure 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
            Infrastructure 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
    ----------------------------------------------------------------------------------------------------------------

    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
    ----------------------------------------------------------------------------------------------------------------

    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 and Military Family Housing

    SEC. 2801. NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                  PROGRAM.

        (a) Change in Reference to Earlier Program.--(1) Section 2806(b) 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 2861(b)(3) of such title is amended by striking out
    ``North Atlantic Treaty Organization Infrastructure program'' and
    inserting in lieu thereof ``North Atlantic Treaty Organization Security
    Investment Program''.
        (b) Clerical Amendments.--(1) The heading of section 2806 of such
    title is amended to read as follows:
    ``Sec. 2806. Contributions for North Atlantic Treaty Organization
                  Security Investment Program''.
        (2) The item relating to such section in the table of sections at
    the beginning of subchapter I of chapter 169 of such title is amended
    to read as follows:

    ``2806. Contributions for North Atlantic Treaty Organization Security
                                Investment Program.''.

    SEC. 2802. AUTHORITY TO DEMOLISH EXCESS FACILITIES.

        (a) Demolition Authorized.--Subchapter I of chapter 169 of title
    10, United States Code, is amended by adding at the end the following
    new section:
    ``Sec. 2814. Demolition of excess facilities
        ``(a) Demolition Using Military Construction Appropriations.--
    Within an amount equal to 125 percent of the amount appropriated for
    such purpose in the military construction account, the Secretary
    concerned may carry out the demolition of a facility on a military
    installation when the facility is determined by the Secretary concerned
    to be--
                ``(1) excess to the needs of the military department or
            Defense Agency concerned; and
                ``(2) not suitable for reuse.
        ``(b) Demolitions Using Operations and Maintenance Funds.--Using
    funds available to the Secretary concerned for operation and
    maintenance, the Secretary concerned may carry out a demolition project
    involving an excess facility described in subsection (a), except that
    the amount obligated on the project may not exceed the maximum amount
    authorized for a minor construction project under section 2805(c)(1) of
    this title.
        ``(c) Advance Approval of Certain Projects.--(1) A demolition
    project under this section that would cost more than $500,000 may not
    be carried out under this section unless approved in advance by the
    Secretary concerned.
        ``(2) When a decision is made to demolish a facility covered by
    paragraph (1), the Secretary concerned shall submit a report in writing
    to the appropriate committees of Congress on that decision. Each such
    report shall include--
                ``(A) the justification for the demolition and the current
            estimate of its costs, and
                ``(B) the justification for carrying out the project under
            this section.
        ``(3) The demolition project may be carried out only after the end
    of the 21-day period beginning on the date the notification is received
    by such committees.
        ``(d) Certain Projects Prohibited.--(1) A demolition project
    involving military family housing may not be carried out under the
    authority of this section.
        ``(2) A demolition project required as a result of a base closure
    action authorized by title II of the Defense Authorization Amendments
    and Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C.
    2687 note) or 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) may
    not be carried out under the authority of this section.
        ``(3) A demolition project required as a result of environmental
    contamination shall be carried out under the authority of the
    environmental restoration program under section 2701(b)(3) of this
    title.
        ``(e) Demolition Included in Specific Military Construction
    Project.--Nothing in this section is intended to preclude the inclusion
    of demolition of facilities as an integral part of a specific military
    construction project when the demolition is required for accomplishment
    of the intent of that construction project.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such subchapter is amended by adding at the end the following new item:

    ``2814. Demolition of excess facilities.''.

    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.''.
        (b) Limitation.--Subsection (b) of such 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 the following:
                ``(A) The cost of major maintenance or repair work
            (excluding day-to-day maintenance and repair) undertaken in
            connection with the improvement.
                ``(B) Any cost, beyond the five-foot line of a housing
            unit, 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.''.

                Subtitle B--Defense Base Closure and Realignment

    SEC. 2811. RESTORATION OF AUTHORITY FOR CERTAIN INTRAGOVERNMENT
                  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) 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 (title II of Public Law
    100-526; 10 U.S.C. 2687 note), is amended by inserting ``or at
    facilities remaining on 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
    remaining on 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 (title II of Public Law 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.

                          Subtitle C--Land Conveyances

                            PART I--ARMY CONVEYANCES

    SEC. 2821. TRANSFER AND EXCHANGE OF JURISDICTION, ARLINGTON NATIONAL
                  CEMETERY, ARLINGTON, VIRGINIA.

        (a) Transfer of Certain Section  29 Lands.--(1) 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 unit
    of the National Park System known as Arlington National Cemetery,
    Virginia:
                (A) The lands known as the Arlington National Cemetery
            Interment Zone.
                (B) The lands known as the Robert E. Lee Memorial
            Preservation Zone, except those lands in the preservation zone
            that the Secretary of the Interior determines to retain because
            of the historical significance of the lands.
        (2) The transfer of lands under paragraph (1) shall be carried out
    in accordance with the Interagency Agreement entered into by the
    Secretary of the Army and the Secretary of the Interior on February 22,
    1995.
        (b) Exchange of Additional Land.--(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) In exchange for the transfer under paragraph (1), 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 Secretary of the Army shall grant to the Secretary
    of the Interior a perpetual right of ingress and egress to the parcel
    transferred this paragraph.
        (c) Legal Description.--The exact acreage and legal descriptions of
    the lands to be transferred pursuant to this section shall be
    determined by surveys satisfactory to the Secretary of the Interior and
    the Secretary of the Army. The costs of the surveys shall be borne by
    the Secretary of the Army.

    SEC. 2822. 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. 2823. 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.

                           PART II--NAVY CONVEYANCES

    SEC. 2831. 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. 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 agree--
                (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).

                        PART III--AIR FORCE CONVEYANCES

    SEC. 2841. CONVEYANCE OF PRIMATE RESEARCH COMPLEX, HOLLOMAN AIR FORCE
                  BASE, NEW MEXICO.

        (a) Conveyance Authorized.--Notwithstanding any other provision of
    law, 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 conveyance may
    include the colony of chimpanzees owned by the Air Force that are
    housed at or managed from the primate research complex. The conveyance
    may not include the real property on which the primate research complex
    is located.
        (b) Competitive Procedures Required.--The Secretary shall use
    competitive procedures in making the conveyance authorized by
    subsection (a).
        (c) Care and Use Standards.--As part of the solicitation of bids
    for the conveyance authorized by subsection (a), the Secretary shall
    develop standards for the care and use of the primate research complex,
    and of chimpanzees. The Secretary shall develop the standards in
    consultation with the Secretary of Agriculture and the Director of the
    National Institutes of Health.
        (d) Conditions of Conveyance.--The conveyance authorized by
    subsection (a) shall be subject to the followings conditions:
                (1) That the recipient of the primate research complex--
                        (A) utilize any chimpanzees included in the
                    conveyance for scientific research or medical research
                    purposes; or
                        (B) retire and provide adequate care for such
                    chimpanzees.
                (2) That the recipient of the primate research complex
            assume from the Secretary any leases at the primate research
            complex that are in effect at the time of the conveyance.
        (e) Description of Complex.--The exact legal description of the
    primate research complex to be conveyed 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 primate research complex.
        (f) 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. 2842. 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.

                           PART IV--OTHER CONVEYANCES

    SEC. 2851. LAND CONVEYANCE, TATUM SALT DOME TEST SITE, MISSISSIPPI.

        (a) Transfer.--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 wilderness area and working demonstration forest.
        (c) Designation.--The property to be conveyed is hereby designated
    as the ``Jamie Whitten Wilderness 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 the subsurface estate
            below a specified depth. The specified depth shall be 1000 feet
            below sea level unless a lesser depth is agreed upon by the
    Secretary and the State.
                (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 determines appropriate to protect
    the interests of the United States.

    SEC. 2852. LAND CONVEYANCE, WILLIAM LANGER JEWEL BEARING PLANT, ROLLA,
                  NORTH DAKOTA.

        (a) Authority To Convey.--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 in
    fiscal year 1995 for the maintenance of the William Langer Jewel
    Bearing Plant in Public Law 103-335 shall be available for the
    maintenance of that plant in fiscal year 1996, pending conveyance, and
    for the conveyance of that 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.

                           Subtitle D--Other Matters

    SEC. 2861. EASEMENTS FOR RIGHTS-OF-WAY.

        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 (12);
                (3) in paragraph (12), as so redesignated, by striking out
            ``or by the Act of March 4, 1911 (43 U.S.C. 961)''; and
                (4) by inserting after paragraph (9) the following new
            paragraph:
                ``(10) poles and lines for the transmission and
            distribution of electrical power;
                ``(11) poles and lines for communication purposes, and for
            radio, television, and other forms of communication
            transmitting, relay, and receiving structures and facilities;
            and''.

    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, local government, or other entity for the preservation,
    management, maintenance, and improvement of cultural resources on
    military installations and for the conducting 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 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) Any building, structure, site, district, or object
            included in or eligible for inclusion in the National Register
            of Historic Places under section 101 of the National Historic
            Preservation Act (16 U.S.C. 470a).
                ``(2) Cultural items, as 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 defined in section
            3(1) of the Archaeological Resources Protection Act of 1979 (16
            U.S.C. 470bb(1)).
                ``(4) Archaeological artifact collections and associated
            records, as defined in 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 the congressional defense
            committees 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
    and 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) 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. 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''.

                     TITLE XXIX--MILITARY LAND WITHDRAWALS

         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 4.

    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 6, during the period of withdrawal, the
            Secretary of the Army shall manage for military purposes 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 to implement 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 8(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 lands withdrawn 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 laws and 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 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.

        (a) Stockpile Stewardship.--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 $1,676,767,000, to be
    allocated as follows:
                (1) For core stockpile stewardship, $1,250,907,000 for
            fiscal year 1997, to be allocated as follows:
                        (A) For operation and maintenance, $1,162,570,000.
                        (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 Alamos
                            National 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 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), $131,900,000 to be
                    allocated as follows:
                                Project 96-D-111, national ignition
                            facility, TBD, $131,900,000.
                (3) For technology transfer and education, $59,400,000.
        (b) Stockpile Management.--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 $1,923,831,000, to be
    allocated as follows:
                (1) For operation and maintenance, $1,829,470,000.
                (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, consolidation pit packaging
                    system, Pantex Plant, Amarillo, Texas, $870,000.
                        Project 97-D-122, nuclear materials storage
                    facility renovation, LANL, 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 HVAC 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.--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 $334,404,000.

    SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

        (a) Environmental Restoration.--Subject to subsection (i), 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 $1,812,194,000, of which
    $376,648,000 shall be allocated to the uranium enrichment
    decontamination and decommissioning fund.
        (b) Waste Management.--Subject to subsection (i), 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 $1,536,653,000, to be allocated as
    follows:
                (1) For operation and maintenance, $1,448,326,000.
                (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 for the 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 (i), 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 $1,269,290,000 to be allocated as follows:
                (1) For operation and maintenance, $1,151,718,000.
                (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, Aiken, South Carolina,
                    $2,500,000.
                        Project 97-D-473, health physics site support
                    facility, Savannah River, 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, CFC HVAC/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, 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 (i), 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 $375,511,000.
        (e) Technology Development.--Subject to subsection (i), 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 (i), 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 (i),
    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
    (i), 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) Adjustments.--The total amount authorized to be appropriated
    pursuant to this section is the sum of the amounts specified in
    subsections (a) through (h) 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.

        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.

        Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 1997 for other defense activities in carrying
    out programs necessary for national security in the amount of
    $1,487,800,000, to be allocated as follows:
                (1) For verification and control technology, $399,648,000,
            to be allocated as follows:
                        (A) For nonproliferation and verification research
                    and development, $194,919,000.
                        (B) For arms control, $169,544,000.
                        (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, nonproliferation, and national
            security, $95,622,000.
                (6) For environment, safety, and health, defense,
            $63,800,000.
                (7) For worker and community transition assistance,
            $67,000,000.
                (8) For fissile materials disposition, $93,796,000, to be
            allocated as follows:
                        (A) For operations and maintenance, $76,796,000.
                        (B) For the following plant project (including
                    maintenance, restoration, planning, construction,
                    acquisition, modification of facilities, and the
                    continuation of projects authorized in prior years, and
                    land acquisition related thereto):
                                Project 97-D-140, consolidated special
                            nuclear materials storage facility, site to be
                            determined, $17,000,000.
                (9) 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.

    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.

    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.
        (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 appropriation 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) Funding.--Of the funds authorized to be appropriated to the
    Department of Energy pursuant to section 3101, $100,000,000 shall be
    available to carry out the following activities within the stockpile
    stewardship program:
                (1) $20,000,000 for enhanced surveillance involving the
            nuclear production plants and the nuclear weapons design
            laboratories.
                (2) $15,000,000 for a production capability assurance
            program for critical non-nuclear components.
                (3) $25,000,000 for an accelerated capability to produce
            prototype war reserve-quality plutonium pits.
                (4) $20,000,000 for dual revalidation of warheads in the
            nuclear weapons stockpile.
                (5) $20,000,000 for the stockpile life extension program.
        (b) Report.--Not later than October 15, 1996, 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 stockpile stewardship program.

    SEC. 3132. MANUFACTURING INFRASTRUCTURE FOR NUCLEAR WEAPONS STOCKPILE.

        (a) Funding.--Of the funds authorized to be appropriated to the
    Department of Energy pursuant to section 3101, $125,000,000 shall be
    available to carry out the stockpile manufacturing infrastructure
    program.
        (b) Required Capabilities.--The manufacturing infrastructure
    established under the program shall include the capabilities listed in
    subsection (b) of section 3137 of Public Law 104-106 (110 Stat. 620).
        (c) Report.--Not later than October 15, 1996, 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 stockpile manufacturing infrastructure
    program.
        (d) Stockpile Manufacturing Infrastructure Program.--In this
    section, the term ``stockpile manufacturing infrastructure program''
    means the program carried out pursuant to section 3137 of the National
    Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
    Stat. 620).

    SEC. 3133. PRODUCTION OF HIGH EXPLOSIVES.

        The manufacture and fabrication of high explosives and energetic
    materials for use as components in nuclear weapons systems shall be
    carried out at the Pantex Plant, Amarillo, Texas. No funds appropriated
    or otherwise made available to the Department of Energy 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 to any other site or facility of
    the Department of Energy.

    SEC. 3134. LIMITATION ON USE OF FUNDS BY LABORATORIES FOR LABORATORY-
                  DIRECTED RESEARCH AND DEVELOPMENT.

        (a) Reduction of Funding.--Section 3132(c) of Public Law 101-510
    (104 Stat. 1832) is amended by striking out ``6 percent'' and inserting
    in lieu thereof ``2 percent''.
        (b) Limitation.--None of the funds provided in a fiscal year,
    beginning with fiscal year 1997, by the Secretary of Energy to be used
    by laboratories for laboratory-directed research and development
    pursuant to section 3132(c) of Public Law 101-510 (42 U.S.C. 7257a(c))
    may be obligated or expended by such laboratories until a period of 15
    days has expired after the Secretary of Energy submits to the
    congressional defense committees a report setting forth in detail
    information about the manner in which such funds are planned to be used
    during that fiscal year. The report shall include a description and
    justification of the planned uses of the funds.

    SEC. 3135. PROHIBITION ON FUNDING NUCLEAR WEAPONS ACTIVITIES WITH
                  PEOPLE'S REPUBLIC OF CHINA.

        (a) Funding Prohibition.--Funds authorized to be appropriated to,
    or otherwise available to, the Department of Energy for fiscal year
    1997 may not 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 or restricted data were or will be
            revealed, and a determination of whether classified or
            restricted data 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 October 15, 1996.

    SEC. 3136. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP PROGRAMS.

        (a) Funding Prohibition.--Funds authorized to be appropriated to,
    or otherwise available to, the Department of Energy for fiscal year
    1997 may not be obligated or expended to conduct any activities
    associated with international cooperative stockpile stewardship.
        (b) Exception.--Subsection (a) does not apply with respect to such
    activities conducted between the United States and the United Kingdom,
    and between the United States and France.

    SEC. 3137. 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 done only one time in a fiscal year to or from
    each program or project, and the amount transferred to or from the
    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 risk to 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.

    SEC. 3138. 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 Defense Programs Management Council to 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 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.

                           Subtitle D--Other Matters

    SEC. 3141. REPORT ON NUCLEAR WEAPONS STOCKPILE MEMORANDUM.

        (a) Submission of Copy of Memorandum.--Not less than 15 days after
    the date of the enactment of this Act, the President shall submit to
    the congressional defense committees a copy of the Nuclear Weapons
    Stockpile Memorandum approved by the President in April 1996.
        (b) Submission of Copy of Memorandum and Report.--Not less than 30
    days after the President has approved any update to the Nuclear Weapons
    Stockpile Memorandum, the President shall submit to the congressional
    defense committees a copy of that Memorandum, together with a report
    describing the changes to the Memorandum compared to the previous
    submission.
        (c) Form.--The submissions required by this section shall be in
    classified and unclassified form.

    SEC. 3142. REPORT ON PLUTONIUM PIT PRODUCTION AND REMANUFACTURING
                  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. 3143. AMENDMENTS RELATING TO BASELINE ENVIRONMENTAL MANAGEMENT
                  REPORTS.

        Section 3153 of the National Defense Authorization Act for Fiscal
    Year 1994 (Public Law 103-160;107 Stat. 1950) 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''; and
                        (B) in paragraph (1)(B), by striking out ``in each
                    year thereafter'' and inserting in lieu thereof ``in
                    each odd-numbered year thereafter''.

    SEC. 3144. REQUIREMENT TO DEVELOP FUTURE USE PLANS FOR ENVIRONMENTAL
                  MANAGEMENT PROGRAM.

        (a) Authority To Develop Future Use Plans.--The Secretary 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 of
    Energy 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) Future Use Advisory Board.--(1) At a defense nuclear facility
    where the Secretary of Energy intends to develop a future use plan and
    no citizen advisory board has been established, the Secretary shall
    establish a future use advisory board.
        (2) The Secretary may prescribe regulations regarding the
    establishment, characteristics, composition, and funding of future use
    advisory boards pursuant to this subsection.
        (3) The Secretary may authorize the manager of a defense nuclear
    facility for which a future use plan is developed (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 future use advisory board established for that site. 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 Future Use 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
    future use 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 site listed in subsection (b), the
    Secretary shall develop a draft plan by October 1, 1997, and a final
    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 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.

        Subtitle E--Defense Nuclear Environmental Cleanup and Management

    SEC. 3151. PURPOSE.

        The purpose of this subtitle is to provide for the expedited
    environmental restoration and waste management of Department of Energy
    defense nuclear facilities through the use of cost-effective management
    mechanisms and innovative technologies.

    SEC. 3152. COVERED DEFENSE NUCLEAR FACILITIES.

        (a) Applicability.--This subtitle applies to any defense nuclear
    facility of the Department of Energy for which the fiscal year 1996
    environmental management budget was $350,000,000 or more.
        (b) Defense Nuclear Facility Defined.--In this subtitle, the term
    ``defense nuclear facility'' means a former or current defense nuclear
    production facility that is owned and managed by the Department of
    Energy.

    SEC. 3153. SITE MANAGER.

        (a) Appointment.--The Secretary of Energy shall expeditiously
    appoint a Site Manager for each Department of Energy defense nuclear
    facility (in this subtitle referred to as the ``Site Manager'').
        (b) Scope.--(1) In addition to other authorities provided for in
    this Act, the Secretary of Energy 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 of Energy 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 of Energy;
                (D) manage Department of Energy 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 significant life cycle costs to the Department of Energy
    without the approval of the Secretary of Energy.
        (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 of Energy's
    authority to delegate other authorities as necessary.
        (c) Information to Secretary of Energy.--The Site Manager of a
    defense nuclear facility shall regularly inform the Secretary of
    Energy, 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. 3154. 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 of Energy 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, or the
    fulfillment of current legal requirements.

    SEC. 3155. DEPLOYMENT OF TECHNOLOGY FOR REMEDIATION OF DEFENSE NUCLEAR
                  WASTE.

        (a) In General.--The Secretary of Energy shall encourage the Site
    Manager of each defense nuclear facility to promote the deployment of
    innovative environmental technologies for remediation of defense
    nuclear waste at the facility.
        (b) Criteria.--To carry out subsection (a), the Secretary shall
    encourage the Site Manager of a defense nuclear facility to establish a
    program at the facility to enhance the deployment of innovative
    environmental technologies at the facility. The Secretary may require
    the Site Manager, in establishing such a program--
                (1) to establish a simplified, standardized, and timely
            process for the acceptance and deployment of environmental
            technologies;
                (2) to solicit applications to deploy environmental
            technologies suitable for environmental restoration and waste
            management activities at the facility, including prevention,
            control, characterization, treatment, and remediation of
            contamination;
                (3) to enter into contracts and other agreements with other
            public and private entities to deploy environmental
            technologies at the facility; and
                (4) to include incentives, such as product performance
            specifications, in contracts to encourage the implementation of
            innovative environmental technologies.

    SEC. 3156. PERFORMANCE-BASED CONTRACTING.

        (a) Program.--The Secretary of Energy 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 and
            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, allocation of fee or profit reduction
            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 of
    Energy shall consult with interested parties.
        (d) Deadline.--The Secretary of Energy 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. 3157. DESIGNATION OF DEFENSE NUCLEAR FACILITIES AS NATIONAL
                  ENVIRONMENTAL CLEANUP DEMONSTRATION AREAS.

        (a) Designation.--The Secretary of Energy, upon receipt of a
    request from a Governor of a State in which a defense nuclear facility
    is situated, may designate the facility as a ``National Environmental
    Cleanup Demonstration Area'' to carry out the purposes of this
    subtitle.
        (b) Sense of Congress.--It is the sense of Congress that Federal
    and State regulatory agencies, members of the community surrounding the
    facilities designated under subsection (a), and other affected parties
    should work to develop expedited and streamlined processes and systems
    for cleaning up the facilities, to eliminate unnecessary bureaucratic
    delay, and to proceed expeditiously with environmental restoration
    activities.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    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.

        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.

                        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 consumed or exhausted during
    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.

        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.

        This subtitle may be cited as the ``Panama Canal Commission
    Authorization Act, 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 Commission
    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 funds in the Panama Canal Commission 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 built in the
    United States, 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.

        (a) In General.--In section 3 (22 U.S.C. 3602)--
                (1) the heading is amended to read as follows:

                                 ``definitions

                (2) 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
                (3) by striking subsection (d).
        (b) Clerical Amendment.--The table of contents in section 1 is
    amended in the item relating to section 3 by striking ``and
    recommendation for legislation''.

    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
    difference provided for in section 1217 of this Act.''.
        (b) Clerical Amendment.--The table of contents in section 1 is
    amended in the item relating to section 1104 by striking ``and Chief
    Engineer''.
        (c) 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 uniform 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.

        (a) In General.--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.''.
        (b) Clerical Amendment.--The table of contents in section 1 is
    amended by striking the item relating to section 1209 and inserting the
    following:

    ``Sec. 1209. Applicability of certain benefits.''.

    SEC. 3528. TRAVEL AND TRANSPORTATION EXPENSES.

        Section 1210 (22 U.S.C. 3650) is amended to read as follows:

                      ``travel and transportation expenses

        ``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 of title 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.''.

    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.
        ``(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.

        (a) Repeal.--Section 1214 (22 U.S.C. 3654) is repealed.
        (b) Clerical Amendment.--The table of contents in section 1 is
    amended by striking the item relating to section 1214.

    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 and
            subchapter II of chapter 84 of title 5, United States Code,
            relating to retirement;''.

    SEC. 3535. VESTING OF GENERAL ADMINISTRATIVE AUTHORITY OF COMMISSION.

        (a) In General.--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.''.
        (b) Clerical Amendment.--The table of contents in section 1 is
    amended by striking the item relating to section 1223 and inserting the
    following:

    ``Sec. 1223. Central Examining Office.''.

    SEC. 3536. APPLICABILITY OF CERTAIN LAWS.

        (a) In General.--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 and transportation).
                ``(11) Chapter 59 (relating to allowances).
                ``(12) Chapter 63 (relating to leave).
                ``(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).''.
        (b) Clerical Amendment.--The table of contents in section 1 is
    amended by striking the item relating to section 1224 and inserting the
    following:

    ``Sec. 1224. Applicability of title 5, United States Code.''.

    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.

        (a) In General.--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.''.
        (b) Clerical Amendment.--The table of contents in section 1 is
    amended by striking the item relating to section 1245 and inserting the
    following:

    ``Sec. 1245. Administration of certain disability benefits.''.

    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 built in the United States,
            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 in any 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 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 depository 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.

        (a) In General.--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.''.
        (b) Clerical Amendment.--The table of contents in section 1 is
    amended by inserting after the item relating to section 1305 the
    following new item:

    ``Sec. 1306. Printing.''.

    SEC. 3541. ACCOUNTING POLICIES.

        Section 1311 (22 U.S.C. 3721), the first sentence in subsection (a)
    is amended to read as follows: ``The Commission shall establish and
    maintain its accounts in accordance with chapter 91 of title 31, United
    States Code, and the provisions of this chapter.''.

    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 section 5924 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) Clerical Amendments.--Section 1 is amended in the table of
    contents by striking each of the items relating to a title, chapter, or
    section repealed by subsection (a).

    SEC. 3547. EXEMPTION.

        (a) In General.--Section 3302 is amended to read as follows:

                                  ``exemption

        ``Sec. 3302. The Commission is exempt from the provisions of
    subchapter II of chapter 6 of title 15, United States Code.''.
        (b) Clerical Amendment.--The table of contents in section 1 is
    amended by striking the item relating to section 3302 and inserting the
    following:

    ``Sec. 3302. Exemption.''.

    SEC. 3548. MISCELLANEOUS CONFORMING AMENDMENTS TO TITLE 5, UNITED
                  STATES CODE.

        Title 5, United States Code, is amended--
                (1) in section 3401(1) by striking clause (v) and
            redesignating clauses (vi) through (viii) as clauses (v)
            through (vii), respectively;
                (2) in section 5102(a)(1) by striking clause (vi) and
            redesignating clauses (vii) through (xi) as clauses (vi)
            through (ix), respectively;
                (3) in section 5315 by striking ``Administrator of the
            Panama Canal Commission.'';
                (4) in section 5342(a)(1) by striking subparagraph (G) and
            redesignating subparagraphs (H) through (L) as subparagraphs
            (G) through (K), respectively;
                (5) in section 5343(a)(5) by striking ``the areas and
            installations'' and all that follows through ``Panama Canal Act
            of 1979),'';
                (6) in section 5348--
                        (A) by striking subsection (b) and redesignating
                    subsection (c) as subsection (b); and
                        (B) in subsection (a) by striking ``subsections (b)
                    and (c)'' and inserting ``subsection (b)'';
                (7) in section 5373 by striking paragraph (1) and
            redesignating paragraphs (2) through (4) as paragraphs (1)
            through (3), respectively;
                (8) in section 5537(c) by striking ``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 ``the District Court of Guam and the District
            Court of the Virgin Islands.'';
                (9) in section 5541(2)(xii)--
                        (A) by inserting ``or'' after ``Services
                    Administration,''; and
                        (B) by striking ``, or a vessel employee of the
                    Panama Canal Commission'';
                (10) in section 7901 by amending subsection (f) to read as
            follows:
        ``(f) The health programs conducted by the Tennessee Valley
    Authority are not affected by this section.'';
                (11) in section 5102(c) by repealing paragraph (12);
                (12) in section 5924(3) by striking the last sentence
            thereof; and
                (13) in section 6322(a) by striking ``, or the Republic of
            Panama''.

    SEC. 3549. REPEAL OF PANAMA CANAL CODE.

        Section 3303 (22 U.S.C. 3602 note) is amended by adding at the end
    the following new subsection:
        ``(c) The Panama Canal Code is repealed effective on the date of
    the enactment of the Panama Canal Act Amendments of 1996.''.

    SEC. 3550. MISCELLANEOUS CLERICAL AND CONFORMING AMENDMENTS.

        (a) Clerical Amendments.--The table of contents in section 1 is
    amended in the items relating to sections 1101, 1102a, 1102b, and 1313
    by inserting ``Sec.'' before the section number.
        (b) Conforming Amendment.--Section 1303 (22 U.S.C. 3713) is amended
    by striking ``section 1302(c)(1)'' each place it appears and inserting
    ``section 1302(b)(1)''.
                Amend the title so as to read: ``A bill 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.''.