[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.''.