[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 727 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 727

     To authorize appropriations for fiscal year 1996 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 1996, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               April 27 (legislative day, April 24), 1995

  Mr. Thurmond (for himself and Mr. Nunn) (by request) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Armed Services

_______________________________________________________________________

                                 A BILL


 
     To authorize appropriations for fiscal year 1996 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 1996, 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 1996''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                          TITLE I--PROCUREMENT

                    Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical demilitarization program.
Sec. 107. Defense Health Program.
Sec. 108. Repeal of requirement for separate budget request for 
                            procurement of reserve equipment.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Sec. 201. Authorization of appropriations.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Civilian Marksmanship Program fund.
Sec. 304. Repeal of limitations on activities of Defense Business 
                            Operations Fund.
Sec. 305. Amendments relating to the Ready Reserve Force Component of 
                            the Ready Reserve Fleet.
                     Subtitle B--Reserve Component

Sec. 321. Reimbursement of pay and allowances and accountability of 
                            reservists supporting cooperative threat 
                            reduction with States of the former Soviet 
                            Union.
Sec. 322. Authority for Department of Defense funding for National 
                            Guard participation in joint exercises with 
                            Army and Air Force for disaster and 
                            emergency assistance.
                       Subtitle C--Other Matters

Sec. 331. Aviation and vessel war risk insurance.
Sec. 332. Testing of theater missile defense interceptors.
Sec. 333. Authority to assign overseas school personnel to domestic 
                            schools and vice versa.
Sec. 334. Authorization for expenditure of O&M and procurement funds 
                            for the accelerated architecture 
                            acquisition initiative.
Sec. 335. Establishment of a Department of Defense Laboratory 
                            Revitalization Demonstration Program.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
                       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.
              Subtitle C--Military Training Student Loads

Sec. 421. Authorization of training student loads.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Equalization of accrual of service credit for officers and 
                            enlisted members of the Armed Forces.
Sec. 502. Changes in general officer billet titles resulting from the 
                            reorganization of headquarters, Marine 
                            Corps.
Sec. 503. Increase in the transition period for officers selected for 
                            early retirement.
Sec. 504. Revision in the authorized strength limitations for Air Force 
                            commissioned officers on active duty in the 
                            grade of major.
Sec. 505. Revision in the authorized strength limitations for Navy 
                            commissioned officers on active duty in 
                            Grades of Lieutenant Commander, Commander, 
                            and Captain.
Sec. 506. Authorization of general or flag officer promotion zones.
                 Subtitle B--Reserve Component Matters

Sec. 511. Repeal of requirement for physical examination on calling 
                            militia into Federal Service.
Sec. 512. Military leave for public safety duty performed by members of 
                            the Reserve components of the Armed Reserve 
                            Officers' Training Corps advanced course.
Sec. 514. Clarifying use of military morale, welfare, and recreation 
                            facilities by retired reservists.
Sec. 515. Objective to increase percentage of prior active duty 
                            personnel in the Selected Reserve.
Sec. 516. Wear of military uniform by National Guard technicians.
Sec. 517. Active duty retirement sanctuary for reservists.
Sec. 518. Involuntarily separated military reserve technicians.
     Subtitle C--Amendments to the Uniform Code of Military Justice

Sec. 551. Definitions.
Sec. 552. Jurisdiction over civilians accompanying the Forces in the 
                            field in time of armed conflict.
Sec. 553. Investigations.
Sec. 554. Refusal to testify before court-martial.
Sec. 555. Records of trial.
Sec. 556. Effective date of punishments.
Sec. 557. Deferment of confinement.
Sec. 558. Submission of matters to the convening authority for 
                            consideration.
Sec. 559. Proceedings in revision.
Sec. 560. Post-trial review of courts-martial.
Sec. 561. Appeal by the United States.
Sec. 562. Flight from apprehension.
Sec. 563. Carnal knowledge.
Sec. 564. Instruction in the Uniform Code of Military Justice.
                       Subtitle D--Other Matters

Sec. 571. Indefinite reenlistments for career enlisted members.
Sec. 572. Chief warrant officer promotions.
Sec. 573. Retirement of Director of Admissions, United States Military 
                            Academy, for years of service.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1995.
Sec. 602. Evacuation allowances that permits equal treatment of 
                            military dependents to civilians and their 
                            dependents.
Sec. 603. Continuous entitlement to career sea pay for crewmembers of 
                            ships designated as tenders.
Sec. 604. Increase in the subsistence allowance payable to members of 
                            Senior Reserve Officer's Training Corps.
Sec. 605. Dislocation allowance (DLA) for base realignment and closure 
                            (BRAC) moves.
Sec. 606. Family separation allowance (FSA-II).
Sec. 607. Authorization of payment of basic allowance for quarters to 
                            certain members of the uniformed services 
                            assigned to sea duty.
                     Subtitle B--Income Tax Matters

Sec. 611. Exclusion of combat pay from withholding limited to amount 
                            excludable from gross income.
           Subtitle C--Bonuses and Special and Incentive Pays

Sec. 621. Aviation Career Incentive Pay (ACIP) gates.
Sec. 622. Expiring authorities.
            Subtitle D--Travel and Transportation Allowances

Sec. 631. Authority to expend appropriated funds to pay certain actual 
                            expenses of reservists.
Sec. 632. Flexibility when authorizing shipment of a motor vehicle 
                            incident to permanent change of station 
                            orders.
Sec. 633. Authorization of return to United States of formerly 
                            dependent children who attain age overseas.
       Subtitle E--Retired Pay, Insurance, and Survivor Benefits

Sec. 641. Retired pay for non-regular service.
Sec. 642. Fiscal year 1996 cost-of-living adjustment for military 
                            retirees.
Sec. 643. Automatic Servicemen's Group Life Insurance (SGLI).
Sec. 644. Improved death and disability benefits for reservists.
                       Subtitle F--Separation Pay

Sec. 651. Transitional compensation for dependents of members of the 
                            Armed Forces separated for dependent abuse.
                       Subtitle G--Other Matters

Sec. 661. Military clothing sales stores, replacement sales.
                     TITLE VII--CIVILIAN EMPLOYEES

                 Subtitle A--Civilian Personnel Policy

Sec. 701. Holidays and alternative work schedules.
Sec. 702. Elimination of 120-day limitation on details.
Sec. 703. Elimination of part-time employment reports.
          Subtitle B--Compensation and Other Personnel Benefit

Sec. 711. Repeal of prohibition on payment of lodging expenses when 
                            adequate government quarters are available.
Sec. 712. Overtime exemption for Nonappropriated Fund (NAF) Employees.
                   Subtitle C--Separation Provisions

Sec. 721. Continued health insurance coverage.
Sec. 722. Lump sum severance payments.
Sec. 723. Civilian voluntary release program.
                   TITLE VIII--HEALTH CARE PROVISIONS

                   Subtitle A--Health Care Management

Sec. 801. Codification and strengthening of CHAMPUS Physician Payment 
                            Reform Program.
Sec. 802. Repeal of certain limitations on reductions of medical 
                            personnel.
                       Subtitle B--Other Matters

Sec. 811. Recognition by States of military advance medical directives.
Sec. 812. Closure of the Uniform Services University of the Health 
                            Sciences.
Sec. 813. Repeal of the statutory restriction on use of funds for 
                            abortions.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                    Subtitle A--Secretarial Matters

Sec. 901. Additional Assistant Secretary of Defense.
Sec. 902. Change in name of Assistant to the Secretary of Defense for 
                            Atomic Energy to Assistant to the Secretary 
                            of Defense for Nuclear and Chemical 
                            Programs.
              Subtitle B--Professional Military Education

Sec. 911. Inclusion of Information Resources Management College in the 
                            National Defense University.
Sec. 912. Employment of civilians at the Asia-Pacific Center for 
                            Security Studies.
                       Subtitle C--Other Matters

Sec. 921. Reduction of reporting requirements.
Sec. 922. Repeal of prohibition of contracting for firefighting and 
                            security guard functions at military 
                            facilities.
Sec. 923. Increase in unspecified minor construction threshold from 
                            $1.5 million to $3.0 million and the 
                            operation and maintenance threshold from 
                            $300 thousand to $1 million.
Sec. 924. Annual report on National Guard and Reserve component 
                            equipment.
Sec. 925. Revision of date for submittal of joint report on scoring of 
                            budget outlays.
Sec. 926. Repeal of annual report to Congress on contractor 
                            reimbursement costs of environmental 
                            response actions.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Appointment and liability of disbursing and certifying 
                            officials.
Sec. 1002. Due process exemptions for minor adjustments in indebtedness 
                            actions.
Sec. 1003. Amendments to chapter 131 of title 10, United States Code.
Sec. 1004. Claims of personnel for personal property damage or loss.
                  Subtitle B--Counter-drug Activities

Sec. 1011. Clarification and amendment of authority for Federal support 
                            of drug interdiction and counterdrug 
                            activities of the National Guard.
Sec. 1012. Authorization to conduct outreach programs to reduce demand 
                            for illegal drugs.
                       Subtitle C--Other Matters

Sec. 1021. Authorization of transportation between residence and place 
                            of employment.
Sec. 1022. National Guard Civilian Youth Opportunities Program.
Sec. 1023. Clarification of authority for requisitioning and lease of 
                            general services vehicles for the Guard.
Sec. 1024. Armed Forces Historical Preservation Program.
Sec. 1025. Amendments to education loan repayment programs.
TITLE XI--MATTERS RELATING TO ALLIES, OTHER NATIONS, AND INTERNATIONAL 
                             ORGANIZATIONS

Sec. 1101. Burdensharing contributions: accounting.
Sec. 1102. Relocation of United States Armed Forces in Japan and the 
                            Republic of Korea.
Sec. 1103. Rationalization, standardization and interoperability.
Sec. 1104. Cost of leased items which have been destroyed by the 
                            lessee.
Sec. 1105. Exchange and returns of defense articles previously 
                            transferred pursuant to the Arms Export 
                            Control Act.
Sec. 1106. Foreign disaster assistance.
Sec. 1107. Humanitarian assistance.
Sec. 1108. Humanitarian Assistance Program for Clearing Landmines.
Sec. 1109. Reimbursements, credits, & limited payments for assessments 
                            relating to international peacekeeping and 
                            peace enforcement activities.
Sec. 1110. Extension and amendment of counterproliferation authorities.
Sec. 1111. Cooperative research and development agreements with NATO 
                            organizations--Technical and conforming 
                            amendments.
                     TITLE XII--ACQUISITION REFORM

Sec. 1201. Waivers from cancellation of funds.
Sec. 1202. Amendment to conform procurement notice posting thresholds.
Sec. 1203. Competitiveness of United States companies.
Sec. 1204. Inapplicability of prohibition on gratuities.
Sec. 1205. Prompt resolution of audit recommendations.
Sec. 1206. Repeal of domestic source limitation.
Sec. 1207. Extraordinary contractual relief.
Sec. 1208. Disposition of naval vessels.
Sec. 1209. Test program for negotiation of comprehensive subcontracting 
                            plans.
Sec. 1210. Civil Reserve Air Fleet.
Sec. 1211. Eighteen month shipbuilding claims.
Sec. 1212. Naval salvage facilities.
Sec. 1213. Factories and arsenals: manufacture at.
Sec. 1214. Bar on documenting economic impact.
Sec. 1215. Fees for samples, drawings.
Sec. 1216. Contracts: delegations.
Sec. 1217. Defense acquisition pilot programs.
Sec. 1218. Testing.
Sec. 1219. Coordination and communication of defense research 
                            activities.
Sec. 1220. Undefinitized contract actions.
Sec. 1221. Independent cost estimates.
Sec. 1222. Unit cost reports.
Sec. 1223. Repeal of spare parts quality control.
Sec. 1224. Patent and copyright cases.
Sec. 1225. Defense Acquisition Workforce Act improvements.
Sec. 1226. Technical amendment to authority to procure for experimental 
                            or test purposes.
Sec. 1227. Repeal of certain depot level maintenance provisions.

                          TITLE I--procurement

                    Authorization of Appropriations

SEC. 101. ARMY.

    (a) Aircraft.--Funds are hereby authorized to be appropriated for 
procurement of aircraft for the Army as follows:
            (1) $1,223,067,000 for fiscal year 1996.
            (2) $843,391,000 for fiscal year 1997.
    (b) Missiles.--Funds are hereby authorized to be appropriated for 
procurement of missiles for the Army as follows:
            (1) $676,430,000 for fiscal year 1996.
            (2) $717,757,000 for fiscal year 1997.
    (c) Weapons and Tracked Combat Vehicles.--Funds are hereby 
authorized to be appropriated for procurement of weapons and tracked 
combat vehicles for the Army as follows:
            (1) $1,298,986,000 for fiscal year 1996.
            (2) $1,261,691,000 for fiscal year 1997.
    (d) Ammunition.--Funds are hereby authorized to be appropriated for 
procurement for ammunition for the Army as follows:
            (1) $795,015,000 for fiscal year 1996.
            (2) $830,644,000 for fiscal year 1997.
    (e) Other Procurement.--Funds are hereby authorized to be 
appropriated for procurement for ammunition for the Army as follows:
            (1) $2,256,601,000 for fiscal year 1996.
            (2) $2,198,702,000 for fiscal year 1997.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Aircraft.--Funds are hereby authorized to be appropriated for 
procurement of aircraft for the Navy as follows:
            (1) $3,886,488,000 for fiscal year 1996.
            (2) $6,885,201,000 for fiscal year 1997.
    (b) Weapons.--Funds are hereby authorized to be appropriated for 
procurement of weapons (including missiles and torpedoes) for the Navy 
as follows:
            (1) $1,787,121,000 for fiscal year 1996.
            (2) $1,714,337,000 for fiscal year 1997.
    (c) Shipbuilding and Conversion.--Funds are hereby authorized to be 
appropriated for shipbuilding and conversion for the Navy as follows:
            (1) $5,051,935,000 for fiscal year 1996.
            (2) $3,941,565,000 for fiscal year 1997.
    (d) Other Procurement, Navy.--Funds are hereby authorized to be 
appropriated for other procurement for the Navy as follows:
            (1) $2,396,080,000 for fiscal year 1996.
            (2) $3,124,435,000 for fiscal year 1997.
    (e) Marine Corps.--Funds are hereby authorized to be appropriated 
for procurement for the Marine Corps as follows:
            (1) $474,116,000 for fiscal year 1996.
            (2) $687,917,000 for fiscal year 1997.

SEC. 103. AIR FORCE.

    (a) Aircraft.--Funds are hereby authorized to be appropriated for 
procurement of aircraft for the Air Force as follows:
            (1) $6,183,886,000 for fiscal year 1996.
            (2) $6,576,934,000 for fiscal year 1997.
    (b) Missiles.--Funds are hereby authorized to be appropriated for 
procurement of missiles for the Air Force as follows:
            (1) $3,647,711,000 for fiscal year 1996.
            (2) $4,422,579,000 for fiscal year 1997.
    (c) Other Procurement.--Funds are hereby authorized to be 
appropriated for other procurement for the Air Force as follows:
            (1) $6,804,696,000 for fiscal year 1996.
            (2) $6,904,630,000 for fiscal year 1997.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for Defense-wide 
procurement as follows:
            (1) $2,179,917,000 for fiscal year 1996.
            (2) $2,524,975,000 for fiscal year 1997.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for procurement for 
the Inspector General of the Department of Defense as follows:
            (1) $1,000,000 for fiscal year 1996.
            (2) $1,800,000 for fiscal year 1997.

SEC. 106. CHEMICAL DEMILITARIZATION PROGRAM.

    Funds are hereby authorized to be appropriated for the destruction 
of lethal chemical weapons in accordance with section 1412 of the 
Department of Defense Authorization Act, 1986 (50 U.S.C. 1521) and the 
destruction of chemical warfare material of the United States that is 
not covered by section 1412 of such Act as follows:
            (1) $746,698,000 for fiscal year 1996.
            (2) $828,747,000 for fiscal year 1997.

SEC. 107. DEFENSE HEALTH PROGRAM.

    Funds are hereby authorized to be appropriated for procurement for 
the Defense Health Program as follows:
            (1) $288,033,000 for fiscal year 1996.
            (2) $298,486,000 for fiscal year 1997.

SEC. 108. REPEAL OF REQUIREMENT FOR SEPARATE BUDGET REQUEST FOR 
              PROCUREMENT OF RESERVE EQUIPMENT.

    Section 114(e) of title 10, United States Code, is repealed.

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

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    (a) Fiscal Year 1996.--Funds are hereby authorized to be 
appropriated for fiscal year 1996 for the use of the Armed Forces for 
research, development, test, and evaluation, as follows:
            (1) For the Army, $4,444,175,000.
            (2) For the Navy, $8,204,530,000.
            (3) For the Air Force, $12,598,439,000.
            (4) For Defense-wide activities, $9,084,809,000, of which--
                    (A) $259,341,000 is authorized for the activities 
                of the Director, Test and Evaluation; and
                    (B) $22,587,000 is authorized for the Director of 
                Operational Test and Evaluation.
    (b) Fiscal Year 1997.--Funds are hereby authorized to be 
appropriated for fiscal year 1997 for the use of the Armed Forces for 
research, development, test, and evaluation, as follows:
            (1) For the Army, $4,240,968,000.
            (2) For the Navy, $7,716,920,000.
            (3) For the Air Force, $11,655,554,000.
            (4) For Defense-wide activities, $9,040,169,000, of which--
                    (A) $267,029,000 is authorized for the activities 
                of the Director, Test and Evaluation; and
                    (B) $22,978,000 is authorized for the Director of 
                Operational Test and Evaluation.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    (a) Fiscal Year 1996.--Funds are hereby authorized to be 
appropriated for fiscal year 1996 for the use of the Armed Forces of 
the United States 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, $18,184,736,000.
            (2) For the Navy, $21,225,710,000.
            (3) For the Marine Corps, $2,269,722,000.
            (4) For the Air Force, $18,256,579,000.
            (5) For Defense-wide Activities, $10,366,782,000.
            (6) For the Army Reserve, $1,068,591,000.
            (7) For the Navy Reserve, $826,042,000.
            (8) For the Marine Corps Reserve, $90,283,000.
            (9) For the Air Force Reserve, $1,485,947,000.
            (10) For the Army National Guard, $2,304,108,000.
            (11) For the Air National Guard, $2,712,221,000.
            (12) For the Defense Inspector General, $138,226,000.
            (13) For the Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $680,432,000.
            (14) For the United States Court of Appeals for the Armed 
        Forces, $6,521,000.
            (15) For Environmental Restoration Defense, $1,622,200,000.
            (16) For Medical Programs, Defense, $9,865,525,000.
            (17) For Humanitarian Assistance, $79,790,000.
            (18) For Former Soviet Union Threat Reduction, 
        $371,000,000.
            (19) For Contributions for International Peacekeeping and 
        Peace Enforcement Activities, Defense, $65,000,000.
            (20) For support for the 1996 Summer Olympics, $15,000,000.
    (b) Fiscal Year 1997.--Funds are hereby authorized to be 
appropriated for fiscal year 1997 for the use of the Armed Forces of 
the United States 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, $17,628,264,000.
            (2) For the Navy, $20,254,507,000.
            (3) For the Marine Corps, $2,285,047,000.
            (4) For the Air Force, $18,346,851,000.
            (5) For Defense-wide Activities, $10,492,192,000.
            (6) For the Army Reserve, $1,033,630,000.
            (7) For the Naval Reserve, $864,712,000.
            (8) For the Marine Corps Reserve, $95,272,000.
            (9) For the Air Force Reserve, $1,059,030,000.
            (10) For the Army National Guard, $2,274,435,000.
            (11) For the Air National Guard, $2,773,343,000.
            (12) For the Defense Inspector General, $138,060,000.
            (13) For the Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $700,756,000.
            (14) For the United States Court of Appeals for the Armed 
        Forces, $6,586,000.
            (15) For Environmental Restoration Defense, $1,622,200,000.
            (16) For Medical programs, Defense, $9,720,509,000.
            (17) For Humanitarian Assistance, $71,633,000.
            (18) For Former Soviet Union Threat Reduction, 
        $364,400,000.
            (19) For Contributions for International Peacekeeping and 
        Peace Enforcement Activities, Defense, $100,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

    (a) Fiscal Year 1996.--Funds are hereby authorized to be 
appropriated for fiscal year 1996 for the use of the Armed Forces of 
the United States 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, $878,700,000.
            (2) For the National Defense Sealift Fund, $974,220,000.
    (b) Fiscal Year 1997.--Funds are hereby authorized to be 
appropriated for fiscal year 1997 for the use of the Armed Forces of 
the United States and other activities and agencies of the Department 
of Defense for providing capital for working capital and revolving 
funds, for the National Defense Sealift Fund, $913,402,000.

SEC. 303. CIVILIAN MARKSMANSHIP PROGRAM FUND.

    (a) Establishment.--Subsections (c) and (d) of section 4308 of 
title 10, United States Code, are amended to read as follows:
    ``(c) Civilian Marksmanship Program Fund.--There is established in 
the Treasury of the United States, a fund to be known as the `Civilian 
Marksmanship Program Fund' which shall be available for all expenses of 
the Civilian Marksmanship Program. Amounts collected by the Secretary 
under the Civilian Marksmanship Program, including the proceeds from 
the sale of arms, ammunition, targets and other supplies and appliances 
under subsection (a) shall be deposited to the Fund and shall be 
available until expended to carry out the Civilian Marksmanship Program 
without a requirement for additional appropriation.
    ``(d) Reimbursement.--To the extent that appropriations available 
to the Department of Defense incur expenses under sections 4310 through 
4313 of this title, such appropriations shall be reimbursed from 
amounts in the Fund established under subsection (c).''.
    (b) Technical Amendments.--Subsection (b) of section 4313 of title 
10, United States Code, is amended by striking out ``Appropriated funds 
available for the Civilian Marksmanship Program (as defined in section 
4308(e) of this title) may be used'' and inserting in lieu thereof 
``Funds in the Civilian Marksmanship Program Fund established by 
section 4308(c) of this title shall be used''.
    (c) Disposition of Unobligated Reimbursements Credited to 
Appropriations.--Unobligated amounts credited to appropriations under 
the provisions of section 4308(c) of title 10, United States Code, as 
in existence prior to the amendments made by subsection (a) of this 
section, shall be deposited to the Civilian Marksmanship Program Fund 
established under section 4308(b) of title 10, United States Code, as 
amended by subsection (a). Such funds shall be merged with, and shall 
be available for the same time period and for the same purposes 
specified in section 4308(c) of title 10, United States Code, as 
amended by subsection (a) of this section.

SEC. 304. REPEAL OF LIMITATION ON ACTIVITIES OF THE DEFENSE BUSINESS 
              OPERATIONS FUND.

    Section 316 of the National Defense Authorization Act for fiscal 
years 1992 and 1993 (10 U.S.C. 2208 note) is amended--
            (1) by striking out ``(a)'' and the second sentence in 
        subsection (a); and
            (2) by repealing subsection (b).

SEC. 305. AMENDMENTS RELATING TO THE READY RESERVE FORCE COMPONENT OF 
              THE READY RESERVE FLEET.

    Section 2218 of title 10, United States Code is amended--
            (1) by amending subsection (c)--
                    (A) by striking out ``and'' at the end of 
                subparagraph (C);
                    (B) by striking out the period at the end of 
                subparagraph (D) and inserting ``; and'' in lieu 
                thereof; and
                    (C) by adding the following new subparagraph at the 
                end thereof:
                    ``(E) expenses of the National Defense Reserve 
                Fleet, as established by section 11 of the Merchant 
                Ship Sales Act of 1946 (50 U.S.C. App. 1744).''.
            (2) by amending subsection (i) by striking out ``Nothing'' 
        and inserting in lieu thereof ``Except as provided in 
        subsection (c)(1)(E) of this section, nothing''.

                     Subtitle B--Reserve Component

SEC. 321. REIMBURSEMENT OF PAY AND ALLOWANCES AND ACCOUNTABILITY OF 
              RESERVISTS SUPPORTING COOPERATIVE THREAT REDUCTION WITH 
              STATES OF THE FORMER SOVIET UNION.

    Section 1206 of the National Defense Authorization Act of 1995 
(Public Law 103-337; 108 Stat. 2663) is amended by adding at the end 
the following new subsections:
    ``(c) Reimbursement for the Pay and Allowances Paid to Reserve 
Component Personnel.--An official provided funds under this section may 
use those funds for reimbursement of military personnel appropriations 
accounts for the pay and allowances paid to reserve component personnel 
for service while engaged in any activity referred to in this section.
    ``(d) Active Duty End Strengths.--(1) A member of a reserve 
component described in paragraph (2) shall not be counted against the 
applicable end strength limitations for members of the armed forces on 
active duty of section 115(a)(1) of title 10 nor against the senior 
grade strength limitations of sections 517 and 523 of title 10.
    ``(2) Paragraph (1) applies in the case of a member of a reserve 
component who is on active duty under a call or order to active duty 
for 180 days or more for activities under paragraph (b) above.''.

SEC. 322. AUTHORITY FOR DEPARTMENT OF DEFENSE FUNDING FOR NATIONAL 
              GUARD PARTICIPATION IN JOINT EXERCISES WITH ARMY AND AIR 
              FORCE FOR DISASTER AND EMERGENCY ASSISTANCE.

    Section 503(a) of title 32, United States Code, is amended by 
adding at the end the following new sentence: ``Such field exercises in 
conjunction with the Army or Air Force, or both, may include joint 
exercises for instruction to prepare the National Guard for response to 
civil emergencies and disasters.''.

                       Subtitle C--Other Matters

SEC. 331. AVIATION AND VESSEL WAR RISK INSURANCE.

    (a) Findings.--The Congress finds the following:
            (1) The augmentation of the Defense Transportation System, 
        with privately owned commercial aircraft and vessels, is 
        essential for the rapid mobilization of United States forces to 
        meet contingencies occurring anywhere in the world.
            (2) The inability of the owners of privately owned aircraft 
        and vessels to obtain commercial insurance on reasonable terms 
        and conditions is a significant impediment to the utilization 
        of commercial aircraft and vessels during such contingencies. 
        This was recognized with the creation of government insurance 
        funds pursuant to chapter 443 of title 49 of the United States 
        Code, and title XII of the Merchant Marine Act, 1936.
            (3) The costs associated with the loss of a new aircraft or 
        vessel and potential liabilities to third parties have exceeded 
        the amounts available in the insurance funds and threaten to 
        jeopardize what heretofore have been extremely cost effective 
        programs of the Department of Transportation for the Department 
        of Defense. Financial constraints may force some commercial 
        transportation carriers to forego participation, especially in 
        aviation programs, unless commercial insurance practices 
        regarding timeliness of payment can be met.
            (4) Through an agreement authorized by the above statutes, 
        the Department of Defense has agreed to indemnify the 
        Department of Transportation for losses incurred on contractor 
        missions.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To provide means for timely payment of claims by the 
        Department of Transportation and timely reimbursement of the 
        Aviation Insurance Fund and the Marine Insurance Fund by the 
        Department of Defense to cover losses that may be incurred by 
        commercial carriers supporting the national interests 
        contemplated by chapter 443 of title 49, United States Code, 
        and by title XII of the Merchant Marine Act, 1936.
            (2) To establish a mechanism for congressional monitoring 
        of the claims program, should the need arise for direct 
        involvement by Congress.
    (c) Aviation War Risk Insurance--Repayment for Losses to the 
Transportation Insurance Funds.--Section 44305 of title 49, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(c)(1) The Secretary of Defense is authorized to transfer, from 
any funds available to the Department of Defense regardless of the 
purpose of the funds to be transferred, such sums as may be necessary 
to reimburse the Administrator of the Federal Aviation Administration 
under the provisions of this title to pay for the loss or damage of 
civil aircraft, death or injury to personnel, and losses or damage 
caused by or associated therewith, which have been insured at the 
request of the Secretary of Defense. Such transfer authority shall be 
in addition to any other statutory transfer authority and shall be made 
without regard to any dollar limitations contained therein. Such 
transfers will be merged with the amounts in the Aviation Insurance 
Fund.
    ``(2) The Secretary of Defense shall promptly reimburse the 
Aviation Insurance Fund. Such reimbursement to the Aviation Insurance 
Fund shall not be subject to the notification or delay requirements 
contained in other statutes and shall be made not later than 30 days 
following the presentment to the Administrator of the Federal Aviation 
Administration of a claim for the loss or damage to the hull, and not 
later than 180 days for all other valid claims as determined by the 
Administrator of the Federal Aviation Administration. Consolidation of 
claims is not required.
    ``(3) The Secretary of Defense and the Administrator of the Federal 
Aviation Administration shall notify Congress as soon after the 
occurrence of loss as possible, and in no event more than 30 days, from 
the occurrence of damage or loss to aircraft or equipment, injury or 
death of personnel, and loss or damage caused by or associated 
therewith, for amounts in excess of one million dollars, insured by the 
Aviation Insurance Fund pursuant to an indemnifying agreement between 
the Secretary of Defense and the Secretary of Transportation. Updates 
as to the total amounts expended to cover such losses, pending 
litigation, and estimated total cost to the government shall be 
submitted every 6 months until concluded.''.
    (d) Vessel War Risk Insurance--Repayment for Losses to the 
Transportation Insurance Funds.--Section 1205 of the Merchant Marine 
Act, 1936, (46 App. U.S.C. 1285) is amended by adding at the end the 
following new subsection:
    ``(c)(1) The Secretary of Defense is authorized to transfer, from 
any funds available to the Department of Defense regardless of the 
purpose of the funds to be transferred, such sums as are necessary to 
reimburse the Secretary of Transportation under the provisions of this 
title to pay for the loss or damage of a vessel, death or injury of 
personnel, and losses or damages caused by or associated therewith, 
which have been insured at the request of the Secretary of Defense. 
Such transfer authority shall be in addition to any other statutory 
transfer authority and shall be made without regard to any dollar 
limitations contained therein. Such transfers will be merged with the 
amounts in the insurance fund created pursuant to section 1208 of this 
title.
    ``(2) The Secretary of Defense shall promptly reimburse the 
insurance fund created pursuant to section 1208 of this title. Such 
reimbursements shall not be subject to the notification or delay 
requirements contained in other statutes and shall be made not later 
than 90 days following the adjudication or settlement by the Secretary 
of Transportation of a claim for the loss or damage to a vessel, or the 
death or injury of personnel, or loss or damage associated therewith. 
Consolidation of claims is not required.
    ``(3) The Secretary of Defense and the Secretary of Transportation 
shall provide Congress on a periodic basis a report of claims paid in 
amounts in excess of one million dollars which are insured by the 
Marine Insurance Fund pursuant to an indemnifying agreement between the 
Secretary of Defense and the Secretary of Transportation. Updates as to 
the total amounts expended to cover such losses, pending litigation, 
and estimated total cost to the government shall be submitted every 6 
months until concluded.''.

SEC. 332. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.

    Section 237(a) of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1600) is amended to read as 
follows:
    ``(a) Testing of Theater Missile Defense Interceptors.--The 
Secretary of Defense may not approve a theater missile defense 
interceptor program proceeding beyond the Low-Rate Initial Production 
until the Secretary certifies to the congressional defense committees 
successful completion of Initial Operational Test and Evaluation 
(IOT&E) in which sufficient flight tests, involving multiple 
interceptors and multiple targets in the presence of realistic 
countermeasures, have been conducted, the results of which demonstrate 
the achievement by the interceptors of the weapons systems performance 
thresholds specified in the system baseline document established 
pursuant to section 2435(a)(1)(A) of title 10, United States Code, 
before the program entered engineering and manufacturing systems 
development. Modeling and simulation validation by ground and flight 
testing may be used to augment live fire testing to demonstrate weapons 
system performance goals.''.

SEC. 333. AUTHORITY TO ASSIGN OVERSEAS SCHOOL PERSONNEL TO DOMESTIC 
              SCHOOLS AND VICE VERSA.

    Section 2164(e) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(4) The Secretary may assign, either on a temporary or 
        continuing basis, personnel of the education system established 
        under the Defense Dependents' Education Act of 1978 to provide 
        administrative, logistical, personnel, and other support 
        services to the school system established under this section 
        and personnel of the school system established under this 
        section to provide such services for the education system 
        established by the Defense Dependents' Education Act of 1978. 
        Such assignments may be without reimbursement by the one 
        educational system to the other and may extend for such periods 
        and under such circumstances as the Secretary deems necessary 
        and appropriate.''.

SEC. 334. AUTHORIZATION FOR EXPENDITURE OF O&M AND PROCUREMENT FUNDS 
              FOR THE ACCELERATED ARCHITECTURE ACQUISITION INITIATIVE.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by adding after section 2395 the following new section:
``Sec. 2395a. Authorization for expenditure of certain funds for the 
              Accelerated Architecture Acquisition Initiative
    ``Funds appropriated to the Central Imagery Office may be used for 
the design, development, and deployment of the Accelerated Architecture 
Acquisition Initiative program imagery systems for the military 
departments, the Unified Commands, their components, Joint Task Forces, 
tactical units, and federal agencies.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of title 10, United States Code, is amended by adding after 
the item relating to section 2395 the following new item:

``2395a. Authorization for expenditure of certain funds for the 
                            Accelerated Architecture Acquisition 
                            Initiative.''.

SEC. 335. ESTABLISHMENT OF A DEPARTMENT OF DEFENSE LABORATORY 
              REVITALIZATION DEMONSTRATION PROGRAM.

    (a) Program Required.--The Secretary of Defense shall carry out a 
Department of Defense Laboratory Revitalization Demonstration Program. 
Under the program the Secretary may carry out minor military 
construction projects in accordance with subsection (b) and other 
applicable law to improve Department of Defense laboratories covered by 
the program.
    (b) Increased Maximum Amounts Applicable to Minor Construction 
Projects.--For purpose of any military construction project carried out 
under the program--
            (1) the amount provided in subsection (a)(1) of section 
        2805 of title 10, United States Code, shall be deemed to be 
        $3,000,000;
            (2) the amount provided in subsection (b)(1) of such 
        section shall be deemed to be $1,500,000; and
            (3) the amount provided in subsection (c)(1) of such 
        section shall be deemed to be $1,000,000.
    (c) Designation of Covered Laboratories.--Not later than 30 days 
before commencing the program, the Secretary shall designate the 
Department of Defense laboratories that are to be covered by the 
program and notify Congress of the laboratories so designated. Only the 
designated laboratories may be covered by the program.
    (d) Report.--Not later than September 30, 1999, the Secretary shall 
submit to Congress a report on the program. The report shall include 
the Secretary's conclusions and recommendations regarding the 
desirability and feasibility of extending the authority set forth in 
subsection (b) to cover all Department of Defense laboratories.
    (e) Exclusivity of Program.--Nothing in this section may be 
construed to limit any other authority provided by law for any military 
construction project at a Department of Defense laboratory covered by 
the program.
    (f) Definitions.--In this section:
            (1) The term ``laboratory'' includes--
                    (A) a research, engineering, and development 
                center;
                    (B) a test and evaluation activity owned, funded, 
                and operated by the Federal Government through the 
                Department of Defense; and
                    (C) a supporting facility of a laboratory.
            (2) The term ``supporting facility'', with respect to a 
        laboratory, means any building or structure that is used in 
        support of research, development, test, and evaluation at a 
        laboratory.
            (3) The term ``Department of Defense laboratory'' does not 
        include a contractor owned laboratory.
    (g) Expiration of Authority.--The Secretary may not carry out the 
program after September 30, 2000.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    (a) Fiscal Year 1996.--The Armed Forces are authorized strengths 
for active duty personnel as of September 30, 1996, as follows:
            (1) The Army, 495,000.
            (2) The Navy, 428,000.
            (3) The Marine Corps, 174,000.
            (4) The Air Force, 388,200.
    (b) Fiscal Year 1997.--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, 409,400.
            (3) The Marine Corps, 174,000.
            (4) The Air Force, 385,400.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHENS FOR SELECTED RESERVE.

    (a) Fiscal Year 1996.--The Armed Forces are authorized strengths 
for Selected Reserve personnel of the reserve components as of 
September 30, 1996, as follows:
            (1) The Army National Guard of the United States, 373,000.
            (2) The Army Reserve, 230,000.
            (3) The Naval Reserve, 98,608.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 109,458.
            (6) The Air Force Reserve, 73,969.
            (7) The Coast Guard Reserve, 8,000.
    (b) 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, 367,000.
            (2) The Army Reserve, 215,000.
            (3) The Naval Reserve, 96,402.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 107,151.
            (6) The Air Force Reserve, 73,160.
            (7) The Coast Guard Reserve, 8,000.
    (c) Waiver Authority.--The Secretary of Defense may vary the end 
strength authorized by subsection (a) or subsection (b) by not more 
than 2 percent.
    (d) Adjustments.--The end strengths prescribed by subsection (a) or 
(b) for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
            (1) the total authorized strength of units organized to 
        serve as units of the Selected Reserve of such component which 
        are on active duty (other than for training) at the end of the 
        fiscal year, and
            (2) the total number of individual members not in units 
        organized to serve as units of the Selected Reserve of such 
        component who are on active duty (other than for training or 
        for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year the end strength prescribed for such fiscal 
year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

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

    (a) Fiscal Year 1996.--Within the end strengths prescribed in 
section 402(a), the reserve components of the Armed Forces are 
authorized, as of September 30, 1996, 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, 23,390.
            (2) The Army Reserve, 11,575.
            (3) The Naval Reserve, 17,490.
            (4) The Marine Corps Reserve, 2,285.
            (5) The Air National Guard of the United States, 9,817.
            (6) The Air Force Reserve, 628.
    (b) Fiscal Year 1997.--Within the end strengths prescribed in 
section 402(b), 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, 23,040.
            (2) The Army Reserve, 11,550.
            (3) The Naval Reserve, 17,074.
            (4) The Marine Corps Reserve, 2,285.
            (5) The Air National Guard of the United States, 9,824.
            (6) The Air Force Reserve, 625.

              Subtitle C--Military Training Student Loads

SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

    (a) Fiscal Year 1996.--For fiscal year 1996, the components of the 
Armed Forces are authorized average military training loads as follows:
            (1) The Army, 75,013.
            (2) The Navy, 44,238.
            (3) The Marine Corps, 26,095.
            (4) The Air Force, 33,232.
    (b) Fiscal Year 1997.--For fiscal year 1997, the components of the 
Armed Forces are authorized average military training loads as follows:
            (1) The Army, 79,275.
            (2) The Navy, 44,121.
            (3) The Marine Corps, 27,255.
            (4) The Air Force, 35,522.
    (c) Scope.--The average military training student loads authorized 
for an armed force under subsections (a) and (b) apply to the active 
and reserve components of that armed force.
    (d) Adjustments.--The average military student loads authorized in 
subsections (a) and (b) shall be adjusted consistent with the end 
strengths authorized in parts A and B. The Secretary of Defense shall 
prescribe the manner in which such adjustments shall be apportioned.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. EQUALIZATION OF ACCRUAL OF SERVICE CREDIT FOR OFFICERS AND 
              ENLISTED MEMBERS OF THE ARMED FORCES.

    (a) Enlisted Service Credit.--Section 972 of title 10, United 
States Code, is amended to read as follows:
``Sec. 972. Enlisted members: required to make up time lost
    ``An enlisted member of an armed force who--
            ``(1) deserts;
            ``(2) is absent from his organization, station, or duty for 
        more than one day without proper authority, as determined by 
        competent authority;
            ``(3) is confined by military or civilian authorities for 
        more than one day before, during or after trial; or
            ``(4) is unable for more than one day, as determined by 
        competent authority, to perform his duties because of 
        intemperate use of drugs or alcoholic liquor, or because of 
        disease or injury resulting from his misconduct;
is required, after his return to full duty, to serve for a period that, 
when added to the period that he served before his absence from duty, 
amounts to the term for which he was enlisted or inducted.''.
    (b) Officer Service Credit.--Chapter 49 of title 10, United States 
Code, is amended by inserting after section 972 the following new 
section:
``Sec. 972a. Officers: service credit
    ``(a) In the case of an officer of an armed force who--
            ``(1) deserts;
            ``(2) is absent from his organization, station, or duty for 
        more than one day without proper authority, as determined by 
        competent authority;
            ``(3) is confined by military or civilian authorities for 
        more than one day before, during or after trial; or
            ``(4) is unable for more than one day, as determined by 
        competent authority, to perform his duties because of 
        intemperate use of drugs or alcoholic liquor, or because of 
        disease or injury resulting from his misconduct;
the period of such desertion, absence, confinement, or inability to 
perform duties may not be counted in computing, for any purpose other 
than basic pay under section 205 of title 37, the officer's length of 
service.''.
    (c) Army Computation of Years of Service.--Section 3926 of title 
10, United States Code, is amended by adding at the end the following 
new subsection:
    ``(e) Time identified in section 972a of this title may not be 
counted in computing years of service under this section.''.
    (d) Navy Computation of Years of Service.--Chapter 571 of title 10, 
United States Code, is amended by inserting after section 6327 the 
following new section:
``Sec. 6328. Computation of years of service: voluntary retirement
    ``(a) Enlisted Members.--Time required to be made up under section 
972 of this title may not be counted in computing years of service 
under this chapter.
    ``(b) Officers.--Time identified in section 972a of this title may 
not be counted in computing years of service under this chapter.''.
    (e) Air Force Computation of Years of Service.--Section 8926 of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(d) Time identified in section 972a of this title may not be 
counted in computing years of service under this section.''.
    (f) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 49 of title 10, United States Code, is amended by 
inserting after the item relating to section 972 the following new 
item:

``972a. Officers: service credit.''.
    (2) The table of sections at the beginning of chapter 571 of title 
10, United States Code, is amended by inserting after the item relating 
to section 6327 the following new item:

``6328. Computation of years of service: voluntary retirement.''.
    (g) Effective Date and Applicability.--The amendments made by this 
section shall take effect on October 1, 1995, and shall apply to time 
identified in sections 972 or 972a of title 10, United States Code, 
that occurs after such effective date.

SEC. 502. CHANGES IN GENERAL OFFICER BILLET TITLES RESULTING FROM THE 
              REORGANIZATION OF HEADQUARTERS, MARINE CORPS.

    (a) Headquarters, Marine Corps: Function; Composition.--Section 
5041(b) of title 10, United States Code, is amended to read as follows:
    ``(b) The Headquarters, Marine Corps, is composed of the following:
            ``(1) The Commandant of the Marine Corps.
            ``(2) The Vice Commandant of the Marine Corps.
            ``(3) Director of the Marine Corps Staff.
            ``(4) Deputy Commandants of the Marine Corps.
            ``(5) Assistant Commandants of the Marine Corps.
            ``(6) Other members of the Navy and Marine Corps assigned 
        or detailed to the Headquarters, Marine Corps.
            ``(7) Civilian employees in the Department of the Navy 
        assigned or detailed to the Headquarters, Marine Corps.''.
    (b) Vice Commandant of the Marine Corps.--Section 5044 is amended--
            (1) by amending the heading to read as follows:
``Sec. 5044. Vice Commandant of the Marine Corps'';
            (2) by striking out ``Assistant Commandant'' in each place 
        it appears and inserting in lieu thereof ``Vice Commandant'' in 
        each instance.
    (c) Director of the Marine Corps Staff; Deputy and Assistant 
Commandants of the Marine Corps.--Section 5045 of title 10, United 
States Code, and its heading are amended to read as follows:
``Sec. 5045. Director of the Marine Corps Staff; Deputy and Assistant 
              Commandants of the Marine Corps.'';
    ``There are in the Headquarters, Marine Corps, a Director of the 
Marine Corps Staff, not more than five Deputy Commandants of the Marine 
Corps, and not more than three Assistant Commandants of the Marine 
Corps, detailed by the Secretary of the Navy from officers of the 
active-duty list of the Marine Corps.''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 506 of title 10, United States Code, is amended by striking out 
the items relating to sections 5044 and 5045 and inserting in lieu 
thereof the following new items:

``5044. Vice Commandant of the Marine Corps.
``5045. Director of the Marine Corps Staff; Deputy and Assistant 
                            Commandants of the Marine Corps.''.

SEC. 503. INCREASE IN THE TRANSITION PERIOD FOR OFFICERS SELECTED FOR 
              EARLY RETIREMENT.

    (a) Selective Retirement of Warrant Officers.--Section 581 of title 
10, United States Code, is amended--
            (1) in subsection (b), by striking out ``seventh'' and 
        inserting in lieu thereof ``tenth''; and
            (2) by adding at the end the following new subsection:
    ``(e) The Secretary concerned may defer the retirement of an 
officer otherwise approved for early retirement under this section for 
not more than 90 days in order to prevent a personal hardship for the 
officer or for other humanitarian reasons.''.
    (b) Selective Early Retirement of Active-Duty Officers.--Section 
638(b) of title 10, United States Code, is amended--
            (1) in paragraph (1)(A), by striking out ``seventh'' and 
        inserting in lieu thereof ``tenth''; and
            (2) by adding at the end the following new paragraph:
            ``(3) The Secretary concerned may defer the retirement of 
        an officer otherwise approved for early retirement under this 
        section or section 638a of this title for not more than 90 
        days, in order to prevent a personal hardship for the officer 
        or for other humanitarian reasons.''.
    (c) Personnel Strengths: Requirement for Annual Authorization.--
Section 115(d) of title 10, United States Code, is amended by adding at 
the end the following new paragraph:
            ``(8) Members selected for early retirement under section 
        581 or section 638 of this title whose retirement has been 
        deferred under section 581(e) or section 638(b)(3) of this 
        title.''.

SEC. 504. REVISION IN THE AUTHORIZED STRENGTH LIMITATIONS FOR AIR FORCE 
              COMMISSIONED OFFICERS ON ACTIVE DUTY IN THE GRADE OF 
              MAJOR.

    (a) Revision in the Authorized Strength Limitations.--
Notwithstanding section 523(a)(1) of title 10, United States Code, and 
except as provided in section 523(c) of title 10, United States Code, 
of the total number of commissioned officers serving on active duty in 
the Air Force at the end of any fiscal year up to and including fiscal 
year 1997 (excluding officers in categories specified in section 523(b) 
of title 10, United States Code), the number of officers who may be 
serving on active duty in each of the grades of major, lieutenant 
colonel and colonel may not, as of the end of such fiscal year, exceed 
a number determined in accordance with the following table:

                                                                        
------------------------------------------------------------------------
   Total number of commissioned    Number of officers who may be serving
 officers (excluding officers in        on active duty in grade of:     
 categories specified in section  --------------------------------------
523(b) of title 10, United States                Lieutenant             
      Code) on active duty:           Major       Colonel      Colonel  
------------------------------------------------------------------------
Air Force:                                                              
     70,000......................       14,612        9,428        3,392
     75,000......................       15,407        9,801        3,573
     80,000......................       16,202       10,175        3,754
     85,000......................       16,997       10,549        3,935
     90,000......................       17,792       10,923        4,115
     95,000......................       18,587       11,297        4,296
    100,000......................       19,382       11,671        4,477
    105,000......................       20,177       12,045        4,658
    110,000......................       20,971       12,418        4,838
    115,000......................       21,766       12,792        5,019
    120,000......................       22,561       13,165        5,200
    125,000......................       23,356       13,539        5,381
------------------------------------------------------------------------

    (b) Expiration of Authority.--The revision in the authorized 
strength limitations under subsection (a) expires at the close of 
September 30, 1997.

SEC. 505. REVISION IN THE AUTHORIZED STRENGTH LIMITATIONS FOR NAVY 
              COMMISSIONED OFFICERS ON ACTIVE DUTY IN GRADES OF 
              LIEUTENANT COMMANDER, COMMANDER, AND CAPTAIN.

    (a) Revision in the Authorized Strength Limitations.--
Notwithstanding section 523(a)(2) of title 10, United States Code, and 
except as provided in section 523(c) of title 10, United States Code, 
of the total number of commissioned officers serving on active duty in 
the Navy at the end of any fiscal year up to and including fiscal year 
1997 (excluding officers in categories specified in section 523(b) of 
title 10, United States Code), the number of officers who may be 
serving on active duty in each of the grades of lieutenant commander, 
commander, and captain may not, as of the end of such fiscal year, 
exceed a number determined in accordance with the following table:

                                                                        
------------------------------------------------------------------------
   Total number of commissioned    Number of officers who may be serving
 officers (excluding officers in        on active duty in grade of:     
 categories specified in section  --------------------------------------
523(b) of title 10, United States   Lieutenant                          
      Code) on active duty:         Commander    Commander     Captain  
------------------------------------------------------------------------
Navy:                                                                   
    45,000.......................       10,034        6,498        2,801
    48,000.......................       10,475        6,706        2,902
    51,000.......................       10,916        6,912        3,002
    54,000.......................       11,357        7,120        3,103
    57,000.......................       11,798        7,328        3,204
    60,000.......................       12,239        7,535        3,304
    63,000.......................       12,680        7,742        3,406
    66,000.......................       13,121        7,949        3,506
    70,000.......................       13,709        3,226        3,641
    90,000.......................       16,649        9,608        4,013
------------------------------------------------------------------------

    (b) Expiration of Authority.--The revision in the authorized 
strength limitations under subsections (a) expires at the close of 
September 30, 1997.

SEC. 506. AUTHORIZATION OF GENERAL OR FLAG OFFICER PROMOTION ZONES.

    Section 645 of title 10, United States Code, is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) The term `promotion zone' means a promotion eligible 
        category consisting of the officers on an active-duty list in 
        the same grade and competitive category who--
                    ``(A) are senior to the officer designated by the 
                Secretary of the military department concerned to be 
                the junior officer in the promotion zone eligible for 
                consideration for promotion to the next higher grade 
                together with the junior officer so designated; and
                    ``(B) in the case of officers in grades below 
                colonel, for officers of the Army, Air Force, and 
                Marine Corps, or captain, for officers of the Navy, 
                neither--
                            ``(i) have failed of selection for 
                        promotion to the next higher grade; nor
                            ``(ii) have been removed from a list of 
                        officers recommended for promotion to that 
                        grade (other than after having been placed on 
                        that list after a selection from below the 
                        promotion zone).''; and
            (2) in paragraph (2), by inserting ``below the grade of 
        colonel for officers of the Army, Air Force, and Marine Corps, 
        or captain for officers of the Navy,'' after ``a group of 
        officers''.

                 Subtitle B--Reserve Component Matters

SEC. 511. REPEAL OF REQUIREMENT FOR PHYSICAL EXAMINATION ON CALLING 
              MILITIA INTO FEDERAL SERVICE.

    (a) Repeal of Requirement.--Section 12408 of title 10, United 
States Code, is repealed.
    (b) Clerical Amendment.--the table of sections at the beginning of 
chapter 1209 is amended by striking out the item relating to section 
12408.

SEC. 512. MILITARY LEAVE FOR PUBLIC SAFETY DUTY PERFORMED BY MEMBERS OF 
              THE RESERVE COMPONENTS OF THE ARMED FORCES.

    (a) Request by Employee for Military Leave.--Section 6323(b) of 
title 5, United States Code, is amended--
            (1) by inserting ``at the employee's request'' after the 
        word ``entitled'' in the first instance in which it appears; 
        and
            (2) by adding at the end the following new sentence: ``an 
        employee who requests annual leave or compensatory time to 
        which the employee is otherwise entitled, for a period during 
        which the employee would have been entitled upon request to 
        leave under this subsection, may be granted such annual leave 
        or compensatory time with our regard to this section or section 
        5519 of this title.''.
    (b) Conforming Amendment.--Section 5519 of title 5, United States 
Code, is amended by inserting ``and requests'' after ``entitled to''.

SEC. 513. AUTHORITY TO PRESCRIBE THE DURATION OF FIELD TRAINING OR 
              PRACTICE CRUISE REQUIRED FOR ADMISSION TO THE RESERVE 
              OFFICERS' TRAINING CORPS ADVANCED COURSE.

    Section 2104(b)(6)(A)(ii) of title 10, United States Code, is 
amended by striking out ``not less than six weeks''' and inserting in 
lieu thereof ``a''.

SEC. 514. CLARIFYING USE OF MILITARY MORALE, WELFARE, AND RECREATION 
              FACILITIES BY RETIRED RESERVISTS.

    Section 1065(a) of title 10, United States Code, is amended by 
striking out the last sentence and inserting in lieu thereof the 
following new sentences: ``Such use by members of the Selected Reserve, 
and the dependents of such members, shall be permitted on the same 
basis as members on active duty. Such use by members who would be 
eligible for retired pay under chapter 67 of this title but for the 
fact that the members are under 60 years of age, and the dependents of 
such members, shall be permitted on the same basis as retirees from 
active duty military service.''.

SEC. 515. OBJECTIVE TO INCREASE PERCENTAGE OF PRIOR ACTIVE DUTY 
              PERSONNEL IN THE SELECTED RESERVE.

    Section 1111(a) of the National Defense Authorization Act for 
Fiscal Year 1993 (10 U.S.C. 3077 note) is amended to read as follows:
    ``(a) Objective To Increase Percentage.--The Secretary of the Army 
shall have an objective of increasing the percentage of qualified prior 
active duty personnel in the Selected Reserve.''.

SEC. 516. WEAR OF MILITARY UNIFORM BY NATIONAL GUARD TECHNICIANS.

    (a) Technicians: Employment, Use, Status.--Section 7-9(b) of title 
32, United States Code, is amended to read as follows:
    ``(b) Except as prescribed by the Secretary concerned, a technician 
employed under subsection (a) shall, while so employed, be a member of 
the National Guard, hold the military grade specified by the Secretary 
concerned for that position, and wear the military uniform appropriate 
for the member's grade and component of the armed forces while 
performing duties as a technician.''.
    (b) Uniform Allowance: Officers; General Provisions.--Section 417 
of title 37, United States Code, is amended by inserting at the end the 
following new subsection:
    ``(d) Service as a National Guard technician by a person who is an 
officer and is required to wear a military uniform pursuant to section 
709(b) of title 32 shall be considered active duty (other than for 
training) for purposes of sections 415 and 416 of this title. Section 
1593 of title 10, United States Code, and section 5901 of title 5, 
United States Code, shall not apply to a National Guard technician who 
receives a uniform allowance under this chapter.''.
    (c) Clothing Allowance: Enlisted Members.--Section 418 of title 37, 
United States Code, is amended by inserting at the end the following 
new sentences: ``In determining the quantity and kind of clothing and 
allowances to be furnished under this section to a member who is a 
National Guard technician, the President shall take into account the 
requirement that such person wear a military uniform pursuant to 
section 709(b) of title 32. Section 1593 of title 10, United States 
Code, and section 5901 of title 5, United States Code, shall not apply 
to a National Guard technician furnished clothing or allowances under 
this section.''.

SEC. 517. ACTIVE DUTY RETIREMENT SANCTUARY FOR RESERVISTS.

    Section 1163(d) of title 10, United States Code, is amended--
            (1) by designating the existing matter as paragraph (1); 
        and
            (2) by adding at the end the following new paragraph:
            ``(2) The regulations prescribed under paragraph (1) may 
        except from the prohibition on involuntary release in that 
        paragraph members who serve on active duty (other than for 
        training) under section 672(d) of this title under orders 
        specifying a period of less than 180 days provided that the 
        member is informed of and consents to such exception prior to 
        entry on active duty.''.

SEC. 518. INVOLUNTARILY SEPARATED MILITARY RESERVE TECHNICIANS.

    Section 3329 of title 5, United States Code, is amended--
            (1) in subsection (b), by striking out ``be offered'' and 
        inserting in lieu thereof ``be provided placement consideration 
        through the Department of Defense Priority Placement Program'';
            (2) in subsection (c)(1), by striking out the semicolon and 
        inserting in lieu thereof ``or in an excepted service position 
        that does not require military membership;''; and
            (3) in subsection (c)(4), by striking out ``is not less 
        than'' and inserting in lieu thereof ``preserves to the maximum 
        extent possible''.

     Subtitle C--Amendments to the Uniform Code of Military Justice

SEC. 551. DEFINITIONS.

    Section 801 (article 1) of title 10, United States Code, is amended 
by inserting after paragraph (14) the following new paragraphs:
            ``(15) The term `classified information' means any 
        information or material that has been determined by the United 
        States Government pursuant to an Executive order, statute, or 
        regulation, to require protection against unauthorized 
        disclosure for reasons of national security, and any restricted 
        data, as defined in section 2014(y) of title 42, United States 
        Code.
            ``(16) The term `national security' means the national 
        defense and foreign relations of the United States.
            ``(17) The term `armed conflict' means operations in which 
        members of the United States armed forces are involved as 
        combatants in military actions, operations, or hostilities 
        against an enemy of the United States or against an organized 
        opposing foreign armed force regardless of whether or not a war 
        or national emergency has been declared by the President of the 
        United States or the Congress of the United States.''.

SEC. 552. JURISDICTION OVER CIVILIANS ACCOMPANYING THE FORCES IN THE 
              FIELD IN TIME OF ARMED CONFLICT.

    Section 802(a)(10) (article 2(a)(10)) of title 10, United States 
Code, is amended to read as follows:
            ``(10) In time of armed conflict, persons serving with or 
        accompanying an armed force in the field.''.

SEC. 553. INVESTIGATIONS.

    Section 832 (article 32) of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d) If during an investigation under this article, the evidence 
indicates that the accused may have committed an uncharged offense or 
offenses, the investigating officer is authorized to investigate the 
subject matter of such offense or offenses before the accused has been 
charged with such offense or offenses. If the accused was present at 
such investigation, was informed of the nature of the uncharged offense 
or offenses, and was afforded the opportunities for representation, 
cross-examination, and presentation prescribed in subsection (b), no 
further investigation of such offense or offenses is necessary under 
this article.''.

SEC. 554. REFUSAL TO TESTIFY BEFORE COURT-MARTIAL.

    Section 847(b) (article 47(b)) of title 10, United States Code, is 
amended to read as follows:
    ``(b) Any person who commits an offense named in subsection (a) 
shall be tried on indictment or information in a United States district 
court or in a court of original criminal jurisdiction in any of the 
Territories, Commonwealths, or possessions of the United States, and 
jurisdiction is conferred upon those courts for that purpose. Upon 
conviction, such person shall be punished by fine or imprisonment, or 
both, at the court's discretion.''.

SEC. 555. RECORDS OF TRIAL.

    Section 854(c)(1)(A) (article 54(c)(1)(A)) of title 10, United 
States Code, is amended to read as follows:
            ``(A) in each general court-martial case in which the 
        sentence adjudged includes death, dismissal of a commissioned 
        officer, cadet, or midshipman, dishonorable or bad-conduct 
        discharge, or confinement for one year or more; and''.

SEC. 556. EFFECTIVE DATE OF PUNISHMENTS.

    Section 857(a) (article 57(a)) of title 10, United States Code, is 
amended to read as follows:
    ``(a) Unless otherwise directed by the convening authority, 
forfeitures of pay, allowances, or both, and reduction in grade shall 
be effective on the date adjudged and, in the case of forfeiture, may 
be collected from pay accruing on and after that date. Periods during 
which a sentence to forfeiture of pay, allowances, or both, is 
suspended or deferred, shall be excluded in computing the duration of 
forfeiture.''.

SEC. 557. DEFERMENT OF CONFINEMENT.

    (a) In General.--Subchapter VIII of chapter 47 of title 10, United 
States Code, is amended by inserting after section 857 (article 57) the 
following new section (article):
``Sec. 857a. Art. 57a. Deferment of confinement
    ``(a) On application by an accused who is under sentence to 
confinement that has not been ordered executed, the convening authority 
or, if the accused is no longer under his jurisdiction, the officer 
exercising general court-martial jurisdiction over the command to which 
the accused is currently assigned, may in his sole discretion defer 
service of the sentence to confinement. The deferment shall terminate 
when the sentence is ordered executed. The deferment may be rescinded 
at any time by the officer who granted it or, if the accused is no 
longer under his jurisdiction, by the officer exercising general court-
martial jurisdiction over the command to which the accused is assigned.
    ``(b) The Secretary concerned, and, when designated by him, any 
Under Secretary, Assistant Secretary, Judge Advocate General, or any 
commanding officer may, during the pendency of a review of the 
accused's court-martial conducted pursuant to section 867(a)(2) of this 
title (article 67(a)(2)), defer further service of a sentence to 
confinement which has been ordered executed.
    ``(c) When an accused in the custody of a state or foreign country 
is returned temporarily to military authorities for trial and later 
returned to the sending state or country under the authority of a 
mutual agreement or treaty, the convening authority may defer service 
of the sentence to confinement without the consent of the accused. The 
deferment will terminate when the accused is released permanently to 
military authorities by the state or country in whose custody the 
accused is being held.
    ``(d) The President shall prescribe such regulations as are 
necessary to provide for granting, with or without conditions, and 
rescinding deferments provided for under this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter VIII of Chapter 47 of title 10, United States Code, is 
amended by inserting after the item relating to section 857 (article 
57) the following new item:

``857a. 57a. Deferment of confinement.''.
    (c) Conforming Amendment.--Section 857 (article 57) of title 10, 
United States Code, is amended--
            (1) by striking out subsection (d); and
            (2) by redesignating subsection (e) as subsection (d).

SEC. 558. SUBMISSION OF MATTERS TO THE CONVENING AUTHORITY FOR 
              CONSIDERATION.

    Section 860(b)(1) (article 60(b)(1)) of title 10, United States 
Code, is amended to read as follows:
    ``(b)(1) The accused may submit to the convening authority written 
matters for consideration by the convening authority with respect to 
the findings and sentence. Except in a summary court-martial case, such 
a submission shall be made within 10 days after the accused has been 
given an authenticated record of trial and, if applicable, the 
recommendation of the staff judge advocate or legal officer under 
subsection (d). In a summary court-martial case, such submission shall 
be made within seven days after the sentence is announced.''.

SEC. 559. PROCEEDINGS IN REVISION.

    Section 860 (article 60) of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (e)(3) as subsection 
        (e)(4); and
            (2) by inserting after subsection (e)(2) the following new 
        subsection:
    ``(e)(3) Notwithstanding any other provision in this section, a 
proceeding in revision may be ordered, prior to authentication of the 
record of trial by the military judge, to correct an erroneously 
announced sentence.''.

SEC. 560. POST-TRIAL REVIEW OF COURTS-MARTIAL.

    (a) Waiver of Withdrawal of Appeal.--Section 861(c) (article 61(c)) 
of title 10, United States Code, is amended to read as follows:
    ``(c) A waiver of the right to appellate review or the withdrawal 
of an appeal bars review under section 866 or 869(a) of this title 
(article 66 or 69(a)) or an application for relief under section 869(b) 
of this title (article 69(b)).''.
    (b) Review in the Office of the Judge Advocate General.--Section 
869(b) (article 69(b)) of title 10, United States Code, is amended to 
read as follows:
    ``(b) Unless the accused has waived or withdrawn the right to 
appellate review under section 861 of this title (article 61), the 
findings or sentence, or both, in a court-martial case not reviewed 
under subsection (a) or under section 866 of this title (article 66) 
may be modified or set aside, in whole or in part, by the Judge 
Advocate General on the ground of newly discovered evidence, fraud on 
the court, lack of jurisdiction over the accused or the offense, error 
prejudicial to the substantial rights of the accused, or the 
appropriateness of the sentence. The application must be filed in the 
office of the Judge Advocate General by the accused on or before the 
last day of the two-year period beginning on the date the sentence is 
approved under section 860(c) of this title (article 60(c)), unless the 
accused establishes good cause for failure to file within that time.''.

SEC. 561. APPEAL BY THE UNITED STATES.

    Section 862(a)(1) (article 62(a)(1)) of title 10, United States 
Code, is amended to read as follows:
    ``(a)(1) In a trial by court-martial in which a military judge 
presides and in which a punitive discharge may be adjudged, the United 
States may appeal an order or ruling of the military judge which 
terminates the proceedings with respect to a charge or specification or 
which excludes evidence that is substantial proof of a fact material in 
the proceeding, or, an order or ruling which directs the disclosure of 
classified information, imposes sanctions for nondisclosure of 
classified information, or which refuses to issue a protective order 
sought by the United States to prevent the disclosure of classified 
information, or refuses to enforce such an order previously issued by 
appropriate authority. The United States may not appeal an order or 
ruling that is or that amounts to, a finding of not guilty with respect 
to the charge or specification.''.

SEC. 562. FLIGHT FROM APPREHENSION.

    (a) In General.--Section 895 (article 95) of title 10, United 
States Code, is amended to read as follows:
``Sec. 895. Art. 95. Resistance, flight, breach of arrest, and escape
    ``Any person subject to this chapter who resists or flees from 
apprehension or breaks arrest or who escapes from custody or 
confinement shall be punished as a court-martial may direct.''.
    (b) Clerical Amendment.--The item relating to section 895 (article 
95) in the table of sections at the beginning of subchapter X of 
chapter 47 of title 10, United States Code, is amended to read as 
follows:

``895. 95. Resistance, flight, breach of arrest, and escape.''.

SEC. 563. CARNAL KNOWLEDGE.

    (a) Gender Neutral.--Section 920(b) (article 120(b)) of title 10, 
United States Code, is amended to read:
    ``(b) Any person subject to this chapter who, under circumstances 
not amounting to rape, commits an act of sexual intercourse with a 
person--
            ``(1) who is not his or her spouse; and
            ``(2) who has not attained the age of sixteen years; is 
        guilty of carnal knowledge and shall be punished as a court-
        martial may direct.''.
    (b) Mistake of Fact.--Section 920 (article 120) of title 10, United 
States Code, is amended by adding at the end the following subsection:
    ``(d) In a prosecution under subsection (b) of this section, it is 
a defense, that the accused must establish by a preponderance of the 
evidence, that, at the time of the alleged offense,--
            ``(1) the person with whom the accused committed the act of 
        sexual intercourse had attained the age of 12 years; and
            ``(2) the accused reasonably believed that the person with 
        whom the accused committed the act of sexual intercourse had 
        attained the age of 16 years.''.

SEC. 564. INSTRUCTION IN THE UNIFORM CODE OF MILITARY JUSTICE.

    Section 937(a)(1) (article 137(a)(1)) of title 10, United States 
Code, is amended to read as follows:
    ``(a)(1) The sections of this title (articles of the Uniform Code 
of Military Justice) specified in paragraph (3) shall be carefully 
explained to each enlisted member at the time of (or within fourteen 
days after)--
            ``(A) the member's initial entrance on active duty; or
            ``(B) the member's initial entrance into a duty status with 
        a reserve component.''.

                       Subtitle D--Other Matters

SEC. 571. INDEFINITE REENLISTMENTS FOR CAREER ENLISTED MEMBERS.

    Section 505(d) of title 10, United States Code, is amended to read 
as follows:
    ``(d) For members with less than 10 years of service, the Secretary 
concerned may accept reenlistments 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. 
At the discretion of the Secretary concerned, members with 10 or more 
years of service reenlisting in the Regular Army, Regular Navy, Regular 
Air Force, Regular Marine Corps, or Regular Coast Guard, as the case 
may be, who meet all qualifications for continued service, may be 
accepted for reenlistment of an unspecified period of time on a career 
basis. Such person will be required to continue to maintain minimum 
qualifications, as prescribed by the Secretary concerned for continued 
service.''.

SEC. 572. CHIEF WARRANT OFFICER PROMOTIONS.

    (a) Reduction of Minimum Time in Grade Required for Chief Warrant 
Officer To Be Considered for Promotion.--Section 574(e) of title 10, 
United States Code, is amended by striking out ``three'' and inserting 
in lieu thereof ``two'';
    (b) Authorization of Below-Zone Selection for Promotion to Grade of 
Chief Warrant Officer.--Section 575(b) of title 10 is amended by 
inserting ``chief warrant officer, W-3,'' after ``to consider warrant 
officers for selection for promotion to the grade of''.

SEC. 573. RETIREMENT OF DIRECTOR OF ADMISSIONS, UNITED STATES MILITARY 
              ACADEMY, FOR YEARS OF SERVICE.

    (a) In General.--Section 3920 of title 10, United States Code, is 
amended--
            (1) by amending the heading to read as follows:
``Sec. 3920. More than thirty years: permanent professors and the 
              Director of Admissions of United States Military 
              Academy''.
            (2) by inserting ``or the Director of Admissions'' after 
        ``permanent professor''.
    (b) The table of sections at the beginning of chapter 367 of title 
10, United States Code, is amended by amending the item relating to 
section 39820 to read as follows:

``3920. More than thirty years: permanent professors and the Director 
                            of Admissions of United States Military 
                            Academy.''.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1996.

    (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 1996 shall not be made.
    (b) Increase in Basic Pay and BAS.--Effective on January 1, 1996, 
the rates of basic pay and basic allowance for subsistence of members 
of the uniformed services are increased by 2.4 percent.
    (c) Increase in BAQ.--Effective on January 1, 1996, the rates of 
basic allowance for quarters of members of the uniformed services are 
increased by 3.4 percent.

SEC. 602. EVACUATION ALLOWANCES THAT PERMITS EQUAL TREATMENT OF 
              MILITARY DEPENDENTS TO CIVILIANS AND THEIR DEPENDENTS.

    (a) Equal Treatment of Military Dependents to Civilians and Their 
Dependents.--Section 405a (a) of title 37, United States Code, is 
amended by striking out ``ordered'' each place such word appears and 
inserting in lieu thereof in each instance ``officially authorized or 
ordered''.
    (b) Effective Date and Applicability.--The amendments to section 
405a(a) by subsection (a) shall take effect on October 1, 1995, and 
shall apply to persons ordered or authorized to evacuate in accordance 
with section 405a, as revised by this Act, on or after such date.

SEC. 603. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY FOR CREWMEMBERS OF 
              SHIPS DESIGNATED AS TENDERS.

    Section 305a(d)(1)(A) of title 37, United States Code, is amended 
by inserting '', or while serving as a member of a tender-class ship 
(with the hull classification of submarine or destroyer)'' after ``the 
off-crew of a two-crewed submarine''.

SEC. 604. INCREASE IN THE SUBSISTENCE ALLOWANCE PAYABLE TO MEMBERS OF 
              SENIOR RESERVE OFFICER'S TRAINING CORPS.

    (a) Increase.--Section 209(a) of title 37, United States Code, is 
amended by striking out ``$150 a month'' in the first sentence and 
inserting in lieu thereof ``$200 a month''.
    (b) Application of Increase.--(1) Except as provided in paragraph 
(2), the amendments made by subsection (a) shall apply with respect to 
months beginning after August 31, 1996.
    (2) Upon the approval of the Secretary of Defense, the Secretary of 
a military department may implement such amendments at an earlier date 
with respect to members of the Senior Reserve Officer's Training Corps 
under the jurisdiction of the Secretary if funds are available for the 
monthly subsistence allowances authorized by such amendments.

SEC. 605. DISLOCATION ALLOWANCE (DLA) FOR BASE REALIGNMENT AND CLOSURE 
              (BRAC) MOVES.

    Section 407(a)(1) of title 37, United States Code, is amended by 
inserting ``directed order to move as a result of a base realignment or 
closure or'' before ``change of permanent station,''.

SEC. 606. FAMILY SEPARATION ALLOWANCE (FSA-II).

    Section 427(b)(3) of title 37, United States Code, is amended by 
inserting ``subparagraph A of'' after ``not entitled to an allowance 
under''.

SEC. 607. AUTHORIZATION OF PAYMENT OF BASIC ALLOWANCE FOR QUARTERS TO 
              CERTAIN MEMBERS OF THE UNIFORMED SERVICES ASSIGNED TO SEA 
              DUTY.

    (a) In General.--Section 403(c)(2) of title 37, United States Code, 
is amended--
            (1) in the first sentence, by striking out ``E-7'' and 
        inserting in lieu thereof ``E-6''; and
            (2) in the second sentence, by striking out ``E-6'' and 
        inserting in lieu thereof ``E-5''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as of July 1, 1996.

                     Subtitle B--Income Tax Matters

SEC. 611. EXCLUSION OF COMBAT PAY FROM WITHHOLDING LIMITED TO AMOUNT 
              EXCLUDABLE FROM GROSS INCOME.

    (a) In General.--Paragraph (1) of section 3401(a) (defining wages) 
of the Internal Revenue Code of 1986 (26 U.S.C. 3401(a)) is amended by 
striking the semicolon at the end and inserting in lieu thereof ``to 
the extent remuneration for such service is excludable from gross 
income under such section;''.
    (b) Effective Date and Applicability.--The amendment made by this 
section shall apply to remuneration paid after December 31, 1994.

           Subtitle C--Bonuses and Special and Incentive Pays

SEC. 621. AVIATION CAREER INCENTIVE PAY (ACIP) GATES.

    Section 301a(a)(4) of title 37, United States Code, is amended by 
striking out ``9'' in the first sentence and inserting in lieu thereof 
``8''.

SEC. 622. EXPIRING AUTHORITIES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1996'' 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, 
1996'' 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, 
1996'' 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, 1996'' 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, 1996'' 
and inserting in lieu thereof ``September 30, 1998''.
    (f) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking out ``September 
30, 1996'' and inserting in lieu thereof ``September 30, 1998''.
    (g) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 
30, 1996'' and inserting in lieu thereof ``September 30, 1998''.
    (h) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking out 
``September 30, 1996'' and inserting in lieu thereof ``September 30, 
1998''.
    (i) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1996'' and inserting in lieu thereof ``September 30, 1998''.
    (j) Enlistment Bonus for Critical Skills.--Section 308a(c) of title 
37, United States Code, is amended by striking out ``September 30, 
1996'' and inserting in lieu thereof ``September 30, 1998''.
    (k) Bonus for Enlistment in the Army.--Section 308f(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1996'' 
and inserting in lieu thereof ``September 30, 1998''.
    (l) 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, 1996'' 
and inserting in lieu thereof ``September 30, 1998''.
    (m) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 2172(d) of title 10, United 
States Code, is amended by striking out ``October 1, 1996'' and 
inserting in lieu thereof ``October 1, 1998''.
    (n) Special Pay for Critically Short Wartime Health Specialists in 
the Selected Reserves.--Section 613(d) of the National Defense 
Authorization Act, Fiscal Year 1989 (37 U.S.C. 302 note) is amended by 
striking out ``September 30, 1996'' and inserting in lieu thereof 
``September 30, 1998''.
    (o) 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, 1996'' and inserting in lieu 
thereof ``September 30, 2000''.
    (p) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1996'' 
and inserting in lieu thereof ``September 30, 2000''.
    (q) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of 
title 37, United States Code, is amended by striking out ``October 1, 
1996'' and inserting in lieu thereof ``October 1, 2000''.
    (r) Grade Determination Authority for Certain Reserve Medical 
Officers.--Sections 3359(b) and 8359(b) of title 10, United States 
Code, are amended by striking out ``September 30, 1995'' and inserting 
in lieu thereof ``September 30, 1996''.
    (s) Promotion Authority for Certain Reserve Officers Serving on 
Active Duty.--Sections 3380(d) and 8380(d) of title 10, United States 
Code, are each amended by striking out ``September 30, 1995'' and 
inserting in lieu thereof ``September 30, 1996''.
    (t) Years of Service for Mandatory Transfer to the Retired 
Reserve.--Section 1016(d) of the Department of Defense Authorization 
Act, 1984 (10 U.S.C. 3360) is amended by striking out ``September 30, 
1995'' and inserting in lieu thereof ``September 30, 1996''.
    (u) War Risk Insurance.--Section 1214 of the Merchant Marine Act, 
1936 (14 App. U.S.C. 1294) is amended by striking out ``June 30, 1995'' 
and inserting in lieu thereof ``June 30, 2000''.
    (v) Make Permanent the Aviation Officer Retention Bonus.--Section 
301b(a) of title 37, United States Code, is amended by striking out ``, 
during the period beginning on January 1, 1989, and ending on September 
30, 1996,''.
    (w) Make Permanent the Authority for Temporary Promotions of 
Certain Navy Lieutenants.--Section 5721 of title 10, United States 
Code, is amended by striking out subsection (f).
    (x) Make Permanent the Authority for Specialized Treatment Facility 
Program.--Section 1105 of title 10, United States Code, is amended by 
striking out subsection (h).

            Subtitle D--Travel and Transportation Allowances

SEC. 631. AUTHORITY TO EXPEND APPROPRIATED FUNDS TO PAY CERTAIN ACTUAL 
              EXPENSES OF RESERVISTS.

    Section 404(j) of title 37, United States Code, is amended--
            (1) in paragraph (1), by striking out the period at the end 
        of the paragraph and inserting in lieu thereof ``or, if 
        transient government quarters are unavailable, may provide 
        contract quarters as lodging in kind as if the member were 
        entitled to such allowances under subsection (a) of this 
        section.''; and
            (2) in paragraph (3), by inserting ``or expenses for 
        contract quarters'' after ``service charge expenses''.

SEC. 632. FLEXIBILITY WHEN AUTHORIZING SHIPMENT OF A MOTOR VEHICLE 
              INCIDENT TO PERMANENT CHANGE OF STATION ORDERS.

    (a) In General.--Section 2634(a)(4) of title 10, United States 
Code, is amended--
            (1) by striking out ``surface'';
            (2) by inserting after ``by other transportation if'' 
        ``under regulations developed by the Secretary of Defense,''; 
        and
            (3) by striking out ``does'' and inserting in lieu thereof 
        is ``determined''.
    (b) Effective Date and Applicability.--Section 2634(a)(4) of title 
10, United States Code, as amended by this section, shall take effect 
on October 1, 1995, and shall apply to vehicles placed for shipment on 
or after such date.

SEC. 633. AUTHORIZATION OF RETURN TO UNITED STATES OF FORMERLY 
              DEPENDENT CHILDREN WHO ATTAIN AGE OVERSEAS.

    (a) In General.--Section 406(h)(1) of title 37, United States Code, 
is amended by striking out the last sentence and inserting in lieu 
thereof the following new sentence: ``For the purposes of this section, 
a member's unmarried child for whom the member received transportation 
in kind to his station outside the United States or in Hawaii or 
Alaska, reimbursement therefor, or a monetary allowance in place 
thereof and who ceased to be a dependent, by reason of age, or 
graduation from or cessation of enrollment in an institution of higher 
education, while the member was serving at that station shall be 
considered as a dependent of the member.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 1996.

       Subtitle E--Retired Pay, Insurance, and Survivor Benefits

SEC. 641. RETIRED PAY FOR NON-REGULAR SERVICE.

    Section 1331 of chapter 67 of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f) respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d) No person who is convicted of an offense under the Uniform 
Code of Military Justice (chapter 47 of title 10), and whose executed 
sentence includes death, dishonorable discharge, bad conduct discharge, 
or dismissal from the service, is eligible for retired pay under this 
chapter.''.

SEC. 642. FISCAL YEAR 1996 COST-OF-LIVING ADJUSTMENT FOR MILITARY 
              RETIREES.

    (a) In General.--Notwithstanding the provisions of section 
1401a(b)(2)(B)(ii) of title 10, United States Code, or of section 
8114A(b) of Department of Defense Appropriations Act, 1995 (Public Law 
103-335; 108 Stat. 2648), or of any other provision of law, the fiscal 
year 1996 increase in military retired pay first shall be payable as 
part of such retired pay for the month of March 1996.
    (b) Definitions.--For the purpose of this section, the following 
definitions apply:
            (1) The term ``fiscal year 1996 increase in military 
        retired pay'' means the increase in retired pay that, pursuant 
        to paragraph (1) of section 1401a(b) of title 10, United States 
        Code, becomes effective on December 1, 1995.
            (2) The term ``retired pay'' includes retainer pay.

SEC. 643. AUTOMATIC SERVICEMEN'S GROUP LIFE INSURANCE (SGLI).

    Section 1967 of title 38, United States Code, is amended--
            (1) in subsections (a) and (c), by striking out 
        ``$100,000'' each place it appears and inserting in lieu 
        thereof in each instance ``$200,000'';
            (2) by striking out subsection (e); and
            (3) by redesignating subsection (f) as subsection (e).

SEC. 644. IMPROVED DEATH AND DISABILITY BENEFITS FOR RESERVISTS.

    (a) Medical and Dental Care: Members on Duty Other Than Active Duty 
for a Period of More Than 30 Days.--Section 1074a(a) of title 10, 
United States Code, is amended by inserting after paragraph (2) the 
following new paragraph:
            ``(3) Each member of a uniformed service who incurs or 
        aggravates an injury, illness, or disease in the line of duty 
        while remaining overnight at or in the vicinity of a site 
        outside reasonable commuting distance from the member's 
        residence at which site the member has performed inactive duty 
        training between successive periods of such training.''.
    (b) Recovery, Care, and Disposition of Remains: Decedents 
Covered.--Section 1481(a)(2) of title 10, United States Code, is 
amended--
            (1) in subparagraph (C), by striking out ``or'' at the end 
        of the subparagraph;
            (2) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (3) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) remaining overnight at or in the vicinity of 
                a site outside reasonable commuting distance from the 
                member's residence at which site the member has 
                performed inactive duty training between successive 
                periods of such training; or''.
    (c) Entitlement to Basic Pay.--Section 204 of title 37, United 
States Code is amended--
            (1) in subsection (g)(1)--
                    (A) in subparagraph (B), by striking out ``or'' at 
                the end of the subparagraph;
                    (B) in subparagraph (C), by striking out the period 
                at the end of the subparagraph and inserting in lieu 
                thereof ``; or''; and
                    (C) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) in line of duty while remaining overnight at 
                or in the vicinity of a site outside reasonable 
                commuting distance from the member's residence at which 
                site the member has performed inactive duty training 
                between successive periods of such training.''; and
            (2) in subsection (h)(1)--
                    (A) in subparagraph (B), by striking out ``or'' at 
                the end of the subparagraph;
                    (B) in subparagraph (C), by striking out the period 
                at the end of the subparagraph and inserting in lieu 
                thereof ``; or''; and
                    (C) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) in line of duty while remaining overnight at 
                or in the vicinity of a site outside reasonable 
                commuting distance from the member's residence at which 
                site the member has performed inactive duty training 
                between successive periods of such training.''.
    (d) Reserves: Members of National Guard: Inactive-Duty Training.--
Section 206(a)(3) of title 37, United States Code, is amended--
            (1) in subparagraph (A), by striking out ``or'' at the end 
        of clause (ii);
            (2) in subparagraph (B), by striking out the period at the 
        end of the subparagraph and inserting in lieu thereof ``; or''; 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) in line of duty while remaining overnight at 
                or in the vicinity of a site outside reasonable 
                commuting distance from the member's residence at which 
                site the member has performed inactive duty training 
                between successive periods of such training.''.

                       Subtitle F--Separation Pay

SEC. 651. TRANSITIONAL COMPENSATION FOR DEPENDENTS OF MEMBERS OF THE 
              ARMED FORCES SEPARATED FOR DEPENDENT ABUSE.

    (a) Section 1059(d) of title 10, United States Code, is amended by 
striking out ``of a separation from active duty as'' in the first 
sentence.

SEC. 661. MILITARY CLOTHING SALES STORES, REPLACEMENT SALES.

    (a) In General.--Chapter 651 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 7606. Subsistence and other supplies: members of armed forces; 
              veterans; Executive or military departments and 
              employees; prices
    ``(a) The branch, office or officer designated by the Secretary of 
the Navy shall procure or sell, for cash or credit--
            ``(1) articles specified by the Secretary of the Navy or a 
        person designated by him, to members of the Navy and Marine 
        Corps; and
            ``(2) items of individual clothing and equipment to members 
        of the Navy and Marine Corps, under such restrictions as the 
        Secretary may prescribe.
An account of sales on credit shall be kept and the amount due reported 
to any branch office, or officer designated by the Secretary. Except 
for articles and items acquired through the use of working capital 
funds under section 2208 of this title, sales of articles shall be at 
cost, and sales of individual clothing and equipment shall be at 
average current prices, including overhead, as determined by the 
Secretary.
    ``(b) The branch, office, or officer designated by the Secretary 
shall sell subsistence supplies to members of other armed forces at the 
prices at which like property is sold to members of the Navy and Marine 
Corps.
    ``(c) The branch, office or officer designated by the Secretary may 
sell serviceable supplies, other than subsistence supplies, to members 
of other armed forces at the prices at which like property is sold to 
members of the Navy and Marine Corps.
    ``(d) A person who has been discharged honorably or under honorable 
conditions from the Army, Navy, Air Force or Marine Corps and who is 
receiving care and medical treatment from the Public Health Service or 
the Department of Veterans Affairs may buy subsistence supplies and 
other supplies, except articles of uniform, at the prices at which like 
property is sold to members of the Navy and Marine Corps.
    ``(e) Under such conditions as the Secretary may prescribe, 
exterior articles of uniform may be sold to a person who has been 
discharged from the Navy or Marine Corps honorably or under honorable 
conditions at the prices at which like articles are sold to members of 
the Navy or Marine Corps. This subsection does not modify sections 772 
or 773 of this title.
    ``(f) Under regulations prescribed by the Secretary, payment for 
subsistence supplies shall be made in cash or by commercial credit.
    ``(g) The Secretary may provide for the procurement and sale of 
stores designated by him to such civilian officers and employees of the 
United States, and such other persons as he considers proper--
            ``(1) at military installations outside the United States 
        (provided such sales conform with host nation support 
        agreements); and
            ``(2) at military installations inside the United States 
        where the Secretary determines that it is impracticable for 
        those civilian officers, employees, and persons to obtain such 
        stores from commercial enterprises without impairing the 
        efficient operation of military activities.
However, sales to such civilian officers and employees of the United 
States inside the United States may be only to those who reside within 
military installations.
    ``(h) Appropriations for subsistence of the Navy or Marine Corps 
may be applied to the purchase of subsistence supplies for sale to 
members of the Navy and Marine Corps on active duty for the use of 
themselves and their families.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 651 of title 10, United States Code is amended by adding at the 
end the following new item:

``7606. Subsistence and other supplies: members of armed forces; 
                            veterans; Executive or military departments 
                            and employees; prices.''.

                     TITLE VII--CIVILIAN EMPLOYEES

SEC. 701. HOLIDAYS AND ALTERNATIVE WORK SCHEDULES.

    Section 6103(b)(2) of title 5, United States Code, is amended to 
read as follows:
            ``(2)(A) Subject to agency discretion, instead of a holiday 
        that occurs on a regular weekly non-workday (other than 
        discussed in (b)) of an employee whose basic workweek is other 
        than Monday through Friday, the workday immediately before that 
        regular weekly non-workday is a legal holiday for the employee.
            ``(B) Subject to agency discretion, instead of a holiday 
        that occurs on a regular weekly non-workday administratively 
        scheduled for the employee instead of Sunday (or any 
        immediately following non-workday), the next immediately 
        following workday is a legal holiday for the employee.''.

SEC. 702. ELIMINATION OF 120-DAY LIMITATION ON DETAILS.

    Section 3341(b) of title 5, United States Code, is amended to read 
as follows:
    ``(b) Details under subsection (a) of this section may be made only 
by written order of the head of the agency or his designee.''.

SEC. 703. ELIMINATION OF PART-TIME EMPLOYMENT REPORTS.

    Section 3407 of title 5, United States Code, is repealed.

         Subtitle B--Compensation and Other Personnel Benefits

SEC. 711. REPEAL OF PROHIBITION ON PAYMENT OF LODGING EXPENSES WHEN 
              ADEQUATE GOVERNMENT QUARTERS ARE AVAILABLE.

    Section 1589 of title 10, United States Code, is repealed.

SEC. 712. OVERTIME EXEMPTION FOR NONAPPROPRIATED FUND (NAF) EMPLOYEES.

    Section 6121(2) of title 5, United States Code, is amended to read 
as follows:
            ``(2) `employee' has the meaning given it by section 
        2105(a) of this title and also includes those paid from 
        nonappropriated funds of the Army and Air Force Exchange 
        Service, Navy Ship's Stores Ashore, Navy exchanges, Marine 
        Corps exchanges, Coast Guard exchanges, and other 
        instrumentalities of the United States under the jurisdiction 
        of the armed forces conducted for the comfort, pleasure, 
        contentment, and mental and physical improvement of personnel 
        of the armed forces.''.

                   Subtitle C--Separation Provisions

SEC. 721. CONTINUED HEALTH INSURANCE COVERAGE.

    Section 8905a(d)(4) of title 5, United States Code, is amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``or voluntary separation'' after 
                ``involuntary separation or'';
                    (B) by inserting ``surplus'' prior to ``position''; 
                and;
                    (C) by striking out ``force--'' and inserting in 
                lieu thereof ``force or a realignment or installation 
                closure under Base Realignment and Closure--''; and
            (2) by adding at the end the following new subparagraph:
                    ``(C) For the purposes of this section, surplus is 
                defined as a position identified in pre-reduction in 
                force planning as no longer required and is expected to 
                be eliminated under formal reduction in force 
                procedures.''.

SEC. 722. LUMP SUM SEVERANCE PAYMENTS.

    (a) Election to Receive Lump Sum.--Subject to agency discretion, an 
employee entitled to severance pay pursuant to section 5595 of title 5, 
United States Code, may, notwithstanding subsection (b) of that 
section, elect to be paid total severance pay as determined under 
subsection (c) of that section in a lump sum upon separation. If such 
an employee is reemployed by the Government of the United States or the 
government of the District of Columbia so that periodic payments would 
have been discontinued under subsection (d) of that section before the 
end of the period during which severance pay would have been otherwise 
paid, the employee shall refund an amount equal to the amount of 
severance pay that would not have been paid but for the employee's 
election under this section. The period of time represented by any 
severance pay refunded under this section shall be recredited to the 
employee for use in any later computation of severance pay. Refunded 
amounts may be credited to the current appropriation available for the 
payment of salaries by the agency from which the employee was 
separated.
    (b) Application.--This section shall apply with respect to any 
employee involuntary separated on or after the date of enactment and 
before October 1, 1999.

SEC. 723. CIVILIAN VOLUNTARY RELEASE PROGRAM.

    Section 3502 of title 5, United States Code, is amended by 
inserting after subsection (e) the following new subsection:
    ``(f) Notwithstanding the provisions of paragraphs (a) to (e) 
above, the Office of Personnel Management shall also prescribe 
regulations to permit Department of Defense employees, who are not 
scheduled for separation by reduction in force (RIF), to volunteer for 
RIF separation in place of other employees who are scheduled for RIF 
separation, until September 30, 1996.''.

                   TITLE VIII--HEALTH CARE PROVISIONS

                   Subtitle A--Health Care Management

SEC. 801. CODIFICATION AND STRENGTHENING OF CHAMPUS PHYSICIAN PAYMENT 
              REFORM PROGRAM.

    Section 1079(h) of title 10, United States Code, is amended to read 
as follows:
    ``(h)(1) Subject to paragraph (2), payment for a charge for 
services by an individual health care professional (or other non 
institutional health-care provider) for which a claim is submitted 
under a plan contracted for under subsection (a) shall be limited to 
the lesser of--
            ``(A) the amount equivalent to the 80th percentile of 
        billed charges, as determined by the Secretary of Defense, in 
        consultation with the other administering Secretaries, for 
        similar services in the same locality during a twelve month 
        base period, which base period may be adjusted as frequently as 
        the Secretary considers appropriate; or
            ``(B) the amount determined to the extent practicable in 
        accordance with the same reimbursement rules as apply to 
        payments for medical and other health services under title 
        XVIII of the Social Security Act (42 U.S.C. 1395 et seq.).
    ``(2) The amount to be paid to an individual health-care 
professional (or other non-institutional health-care provider) shall be 
determined under regulations to be prescribed by the Secretary of 
Defense in consultation with the other administering Secretaries 
pursuant to paragraph (1). Such regulations--
            ``(A) may provide for such exceptions as the Secretary 
        determines necessary to assure that covered beneficiaries have 
        adequate access to health care services, including payment of 
        amounts greater than the allowable amounts when enrollees in 
        managed care programs obtain covered emergency services from 
        non-participating providers;
            ``(B) shall establish limitations (similar to those 
        established under title XVIII of the Social Security Act (42 
        U.S.C. 1395 et seq.)) on beneficiary liability for charges of 
        an individual health-care professional (or other non-
        institutional health care provider); and
            ``(C) shall assure that in transitioning from the payment 
        methods previously in effect to any methodology authorized by 
        this subsection, in no case may the amount allowable for any 
service be reduced by more than fifteen percent from the amount allowed 
for the same service in the immediately preceding twelve-month period 
(or other duration as established by the Secretary of Defense).''.

SEC. 802. REPEAL OF CERTAIN LIMITATIONS ON REDUCTIONS OF MEDICAL 
              PERSONNEL.

    (a) Limitation on Reductions in Medical Personnel.--Section 711 of 
the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 
115 note) is repealed.
    (b) Minimum Number of Navy Health Professions Officers.--Section 
718 of the National Defense Authorization Act for Fiscal Years 1992 and 
1993 (10 U.S.C. 115 note) is amended by striking out subsection (b).
    (c) Limitation on Reduction in Number of Reserve Component Medical 
Personnel.--Section 518 of the National Defense Authorization Act for 
Fiscal Year 1993 (10 U.S.C. 261 note) is repealed.

                       Subtitle B--Other Matters

SEC. 811. RECOGNITION BY STATES OF MILITARY ADVANCE MEDICAL DIRECTIVES.

    (a) In General.--Chapter 53 of title 10, United States Code, is 
amended by inserting after section 1044b the following new section:
``Sec. 1044c. Military advance medical directives: requirement for 
              recognition by States
    ``(a) Instruments To Be Given Legal Effect Without Regard to State 
Law.--A military advance medical directive--
            ``(1) is exempt from any requirement of form, substance, 
        formality, or recording that is provided for advance medical 
        directives under the laws of a State; and
            ``(2) shall be given the same legal effect as an advance 
        medical directive prepared and executed in accordance with the 
        laws of the State concerned.
    ``(b) Military Advance Medical Directives.--For the purposes of 
this section, a military advance medical directive is any written 
declaration regarding future medical treatment executed by a person 
eligible for legal assistance under section 1044 of this title or 
regulations of the Department of Defense, or the Department in which 
the Coast Guard is operating--
            ``(1) to provide, withdraw, or withhold life-prolonging 
        procedures, including hydration and sustenance, in the event of 
        a terminal condition or persistent vegetative state; or
            ``(2) to appoint another person to make health care 
        decisions for the declarant under circumstances stated in the 
        declaration if the declarant is determined to be incapable of 
        making informed health care decisions.
    ``(c) Statement To Be Included.--Under regulations prescribed by 
the Secretary concerned, each military advance medical directive shall 
contain a statement that clearly indicates such directive's purpose. 
The failure to include such a statement does not negate such 
directive's legal effect.
    ``(d) State Defined.--In this section, the term `State' includes 
the District of Columbia, the Commonwealth of Puerto Rico, and a 
possession of the United States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 53 of title 10, United States Code, is amended by inserting 
after the item relating to section 1044b the following new item:

``1044c. Military advance medical directives: requirement for 
                            recognition by States.''.
    (c) Effective Date.--The amendment made by this section shall apply 
to any military advance medical directive declared prior to the 
enactment of this Act and such directives declared after enactment.

SEC. 812. CLOSURE OF THE UNIFORM SERVICES UNIVERSITY OF THE HEALTH 
              SCIENCES.

    (a) Repeal of Authority.--Chapter 104 of title 10, United States 
Code, is hereby repealed.
    (b) Phase-Out Process.--(1) Notwithstanding any other provision of 
law, the Secretary of Defense shall phase out the Uniformed Services 
University of the Health Sciences, beginning in fiscal year 1996, and 
ending with the closure of such University not later than September 30, 
1999. No provision of section 2687 of title 10, United States Code, or 
of any other law establishing preconditions to the closure of any 
activity of the Department of Defense shall operate to establish any 
precondition to the phaseout and closure of the Uniformed Services 
University of the Health Sciences pursuant to this Act.
    (2) Under the phase-out process required by paragraph (1), the 
Secretary of Defense is authorized to exercise all of the authorities 
pertaining to the operation of the Uniformed Services University of the 
Health Sciences that were granted to the Secretary of Defense, the 
Board of Regents, or the Dean of the Uniformed Services University of 
the Health Sciences by Chapter 104 of title 10, United States Code, 
prior to enactment of the repeal of that chapter by subsection (a). 
Such authorities may be exercised by the Secretary of Defense so as to 
achieve an orderly phase-out of operations of the Uniformed Services 
University of the Health Sciences.
    (3) No new class of students may be admitted to begin studies in 
the Uniformed Services University of the Health Sciences after 
September 30, 1995. No students may be awarded degrees by such 
University after September 30, 1999, except that the Secretary of 
Defense may grant exceptions on a case-by-case basis for any students 
who by that date have completed substantially all degree requirements.
    (c) Authorities Unaffected.--(1) Commissioned service obligations 
incurred by students of the Uniformed Services University of the Health 
Sciences shall be unaffected by enactment of the repeal of chapter 104 
of title 10, United States Code, by subsection (a).
    (2) Nothing in this Act shall be construed as limiting the exercise 
by the Secretary of Defense of other authorities under law pertaining 
to health sciences education, training and professional development, 
graduate medical education, medical and scientific research, and 
similar activities. To the extent any such activities had been assigned 
by the Secretary of Defense to the Uniformed Services University of the 
Health Sciences, the Secretary of Defense's authority to assign such 
activities to any other component or entity of the Department of 
Defense shall be unaffected by the phase-out and closure of the 
Uniformed Services University of the Health Sciences pursuant to this 
Act.
    (d) Conforming Amendments.--(1) Section 178 of title 10, United 
States Code, pertaining to the Henry M. Jackson Foundation for the 
Advancement of Military Medicine, is amended--
            (A) in subsection (b), by striking out ``Uniformed Services 
        University of the Health Sciences'' and inserting in lieu 
        thereof ``Department of Defense'';
            (B) in subsection (c)(1)(B), by striking out ``the Dean of 
        the Uniformed Services University of the Health Sciences'' and 
        inserting in lieu thereof ``a person designated by the 
        Secretary of Defense''; and
            (C) in subsection (g)(1), by striking out ``Uniformed 
        Services University of the Health Sciences'' and inserting in 
lieu thereof ``Secretary of Defense''.
    (2) Section 466 of the Public Health Service Act (42 U.S.C. 
Sec. 286a), pertaining to the Board of Regents of the National Library 
of Medicine, is amended in subsection (a)(1)(B) by striking out ``the 
Dean of the Uniformed Services University of the Health Sciences''.
    (e) Clerical Amendment.--The table of chapters at the beginning of 
Subtitle A and at the beginning of part III of such subtitle of title 
10, United States Code, is amended by striking out the items relating 
to chapter 104.

SEC. 813. REPEAL OF THE STATUTORY RESTRICTION ON USE OF FUNDS FOR 
              ABORTIONS.

    (a) In General.--Section 1093 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
Chapter 55, United States Code, is amended by striking out the item 
relating to section 1093.
    (c) Effective Date.--The amendment made by this section shall be 
effective October 1, 1995.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                    Subtitle A--Secretarial Matters

SEC. 901. ADDITIONAL ASSISTANT SECRETARY OF DEFENSE.

    (a) Establishment of Position.--Section 138(a) of title 10, United 
States Code, is amended by striking out ``eleven'' and inserting in 
lieu thereof ``twelve''.
    (b) Executive Level IV.--Section 5315 of title 5, United States 
Code, is amended by striking out ``Assistant Secretaries of Defense 
(11).'' and inserting in lieu thereof the following new line: 
``Assistant Secretaries of Defense (12).''.

SEC. 902. CHANGE IN NAME OF ASSISTANT TO THE SECRETARY OF DEFENSE FOR 
              ATOMIC ENERGY TO ASSISTANT TO THE SECRETARY OF DEFENSE 
              FOR NUCLEAR AND CHEMICAL PROGRAMS.

    (a) In General.--Section 142 of title 10, United States Code, is 
amended--
            (1) by amending the heading to read as follows:
``Sec. 142. Assistant to the Secretary of Defense for Nuclear and 
              Chemical Programs'';
            (2) in subsection (a), by striking out ``Assistant to the 
        Secretary of Defense for Atomic Energy'' and inserting in lieu 
        thereof ``Assistant to the Secretary of Defense for Nuclear and 
        Chemical Programs'';
            (3) by amending subsection (b) to read as follows:
    ``(b) the Assistant to the Secretary shall perform such functions 
as the Secretary of Defense may prescribe and shall advise the 
Secretary of Defense on nuclear energy, nuclear weapons, and chemical 
and biological defense program matters. The Assistant to the Secretary 
also shall serve as the Staff Director of the Nuclear Weapons Council 
established by section 179 of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 4 of title 10, United States Code, is amended by amending the 
item relating to section 142 to read as follows:

``142. The Assistant to the Secretary of Defense for Nuclear and 
                            Chemical Programs.''.
    (c) Conforming Amendments.--(1) Section 179(c)(2) of title 10, 
United States Code, is amended by striking out ``The Assistant to the 
Secretary of Defense for Atomic Energy'' and inserting in lieu thereof 
``The Assistant to the Secretary of Defense for Nuclear and Chemical 
Programs.''.
    (2) Section 5216 of title 5, United States Code, is amended by 
striking out ``The Assistant to the Secretary of Defense for Atomic 
Energy, Department of Defense.'' and inserting in lieu thereof ``The 
Assistant to the Secretary of Defense for Nuclear and Chemical 
Programs, Department of Defense.''.

              Subtitle B--Professional Military Education

SEC. 911. EXCLUSION OF INFORMATION RESOURCES MANAGEMENT COLLEGE IN THE 
              NATIONAL DEFENSE UNIVERSITY.

    (a) Technical Amendment and Addition of Information Resources 
Management College to the Definition of the National Defense 
University.--Section 1595(d)(2) of title 10, United States Code, is 
amended by striking out ``the Institute for National Strategic Study'' 
and inserting in lieu thereof ``the Institute for National Strategic 
Studies, the Information Resources Management College,''.
    (b) Conforming Amendment.--Section 2162(d)(2) of title 10, United 
States Code, is amended by inserting ``the Institute for National 
Strategic Studies, the Information Resources Management College,'' 
after ``the Armed Forces Staff College,''.

SEC. 912. EMPLOYMENT OF CIVILIANS AT THE ASIA-PACIFIC CENTER FOR 
              SECURITY STUDIES.

    Section 1595 of title 10, United States Code, is amended--
            (1) in subsection (c), by inserting at the end the 
        following new paragraph:
            ``(4) The Asia-Pacific Center for Security Studies.''; and
            (2) by adding at the end the following new subsection:
    ``(f) Application to Director and Deputy Director at Asia-Pacific 
Center for Security Studies.--In the case of the Asia-Pacific Center 
for Security Studies, this section also applies with respect to the 
Director and the Deputy Director.''.

                       Subtitle C--Other Matters

SEC. 921. REDUCTION OF REPORTING REQUIREMENTS.

    (a) Closure of Military Child Development Centers for Uncorrected 
Inspection Violations.--Section 1505 of the Military Child Care Act of 
1989 (Title XV of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991; 10 U.S.C. 113 note) is amended by striking out 
subsection (f)(3).
    (b) Energy Savings at Military Installations.--Section 2865(e) of 
title 10, United States Code, is amended by striking out ``(1)'' and 
paragraph (2).
    (c) Military Relocation Assistance Programs.--Section 1056 of title 
10, United States Code, is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).
    (d) Limitation on Source of Funds for Nicaraguan Democratic 
Resistance.--Section 1351 of National Defense Authorization Act for 
Fiscal Year 1987 (10 U.S.C. 114 note) is repealed.
    (e) Limitation on Reductions in Medical Personnel.--Section 711 of 
the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 
115 note) is repealed.
    (f) Foreign National Employees Salary Increases.--Section 1584 of 
title 10, United States Code, is amended by striking out ``(a) Waiver 
of Employment Restrictions for Certain Personnel.--'' and subsection 
(b).
    (g) Civilian Positions: Guidelines for Reductions.--Section 1597 of 
title 10, United States Code, is amended--
            (1) by striking out subsections (c) and (e);
            (2) by amending subsection (d) to read as follows:
    ``(d) Exceptions.--The Secretary of Defense may permit a variation 
from the guidelines established under subsection (b) if the Secretary 
determines that such a variation is critical to national security.''; 
and
            (3) by redesignating subsection (d) as subsection (c).
    (h) Industrial Fund Management Reports.--Section 342 of the 
National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 2208 
note) is amended by striking out subsection (c).
    (i) Elimination of Use of Class I Ozone- Depleting Substances in 
Certain Military Procurement Contracts.--Section 326(a) of the National 
Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 2301 note) is 
amended by striking out paragraphs (4) and (5).
    (j) Kinds of Contracts: Multiyear Contract Certification.--Section 
2306b(i)(1) of title 10, United States Code, is amended--
            (1) in the first sentence, by striking out ``each of the 
        following conditions'' and inserting in lieu thereof ``the 
        following condition'';
            (2) by striking out subparagraph (A); and
            (3) by striking out ``(B)''.
    (k) Notice to Congress Required for Contracts Performed Over Period 
Exceeding Ten Years.--Section 2352 of title 10, United States Code, is 
repealed.
    (l) Major Defense Acquisition Program Defined.--Section 2430(b) of 
title 10, United States Code, is amended by striking out the following 
sentence: ``An adjustment under this subsection shall be effective 
after the Secretary transmits a written notification of the adjustment 
to the Committees on Armed Services of the Senate and House of 
Representatives.''.
    (m) Weapons Development and Procurement Schedules.--Section 2431 of 
title 10, United States Code, is repealed.
    (n) Selected Acquisition Reports for Certain Programs.--Section 127 
of the National Defense Authorization Act for Fiscal Years 1988 and 
1989 (10 U.S.C. 2432 note) is repealed.
    (o) Core Logistics Functions Waiver.--Section 2464(b) of title 10, 
United States Code, is amended by striking out paragraphs (3) and (4).
    (p) Improved National Defense Control of Technology Diversions 
Overseas.--Section 2537 of title 10, United States Code, is amended--
            (1) by striking out subsection (b); and
            (2) by redesignating subsections (c) and (d) as subsections 
        (b) and (c) respectively.
    (q) Real Property Transactions: Reports to Congressional 
Committees.--Section 2662 of title 10, United States Code, is repealed.
    (r) Acquisition: Interests in Land When Need Is Urgent.--Section 
2672a(b) of title 10, United States Code, is amended by striking out 
the following sentence: ``The Secretary of a military department 
contemplating action under this section shall provide notice, in 
writing, to the Committees on Armed Services of the Senate and House of 
Representatives at least 30 days in advance of any action being 
taken.''.
    (s) Operations of Department of Defense Overseas Military Facility 
Investments Recovery Account.--Section 2921 of the National Defense 
Authorization Act for Fiscal Year 1991 (10 U.S.C. 2687 note) is amended 
by striking out subsection (f).
    (t) Environmental Restoration Requirements at Military 
Installations To Be Closed.--Section 334(c) of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 2687 note) 
is amended--
            (1) by striking out paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).
    (u) Environmental Restoration Costs for Installation To Be Closed 
Under 1990 Base Closure Law.--Section 2827 of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 2687 note) 
is amended by striking out subsection (b).
    (v) Fuel Sources for Heating Systems; Prohibition on Converting 
Certain Heating Facilities.--Section 2690(b) of title 10, United States 
Code, is amended to read as follows:
    ``(b) The Secretary of a military department may not convert a 
heating facility at a United States military installation in Europe 
from a coal-fired facility to an oil-fired facility, or to any other 
energy source facility, unless the Secretary determines that the 
conversion (A) is required by the government of the country in which 
the facility is located, or (B) is cost effective over the lifecycle of 
the facility.''.
    (w) Architectural and Engineering Services and Construction 
Design.--Section 2807 of title 10, United States Code, is amended--
            (1) by striking out subsection (b); and
            (2) by redesignating subsections (c) and (d) as subsections 
        (b) and (c) respectively.
    (x) Construction Projects for Environmental Response Actions.--
Section 2810 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking out ``Subject to 
        subsection (b), the'' and inserting in lieu thereof ``The'';
            (2) by striking out subsection (b); and
            (3) by redesignating subsection (c) as subsection (b).
    (y) Improvements to Family Housing Units.--(1) Section 2825(b)(1) 
of title 10, United States Code, is amended--
            (A) by striking out ``(i)''; and
            (B) by striking out ``(ii) a period of 21 days elapses 
        after the date on which the Committees on Armed Services and 
        the Committees on Appropriations of the Senate and of the House 
        of Representatives receive a notice from such Secretary of the 
        proposed waiver, together with an economic analysis 
        demonstrating that the improvement will be cost effective.'' 
        and inserting in lieu thereof a period.
    (2) Section 2825(c)(1) of title 10, United States Code, is 
amended--
            (A) in subparagraph (A), by inserting ``and'' after the 
        semicolon;
            (B) in subparagraph (B), by striking out the semicolon and 
        inserting in lieu thereof a period; and
            (C) by striking out subparagraphs (C) and (D).
    (z) Relocation of Military Family Housing Units.--Section 2827 of 
title 10, United States Code, is amended by striking out ``(a)'' and 
subsection (b).
    (aa) Annual Report to Congress With Respect to Military 
Construction Activities and Military Family Housing Activities.--
Section 2861 of title 10, United States Code, is repealed.
    (bb) Energy Savings at Military Installations.--Section 2865 of 
title 10, United States Code, is amended by striking out subsection 
(f).
    (cc) Reports on Price and Availability Estimates.--Section 28 of 
the Arms Export Control Act (22 U.S.C. 2768) is repealed.
    (dd) Annual Report on the Status of the Exercise of the Rights and 
Responsibilities of the United States Under the Panama Canal Treaty Of 
1977.--Section 3301 of the Panama Canal Act of 1979 (22 U.S.C. 3871) is 
repealed.
    (ee) Monitoring and Research of Ecological Effects of Organotin 
Antifouling Paint.--Section 7 of the Organotin Antifouling Paint 
Control Act of 1988 (33 U.S.C. 2406) is amended by striking subsection 
(d).
    (ff) Minority Group Participation in Construction of Tennessee-
Tombigbee Waterway Project.--Section 185 of the Water Resources 
Development Act of 1976 (33 U.S.C. 544c) is repealed.
    (gg) Presidential Recommendations Concerning Adjustments and 
Changes in Pay and Allowances.--Section 1008 of title 37, United States 
Code, is amended by striking subsection (a) and ``(b)''.
    (hh) Adjustments of Compensation.--Section 1009(f) of title 37, 
United States Code, is amended to read as follows:
    ``(f) The allocations of increases made under this section shall be 
assessed in conjunction with the quadrennial review of military 
compensation required by section 1008 of this title.''.
    (ii) Travel and Transportation Allowances: Dependents; Baggage and 
Household Effects.--Section 406 of title 37, United States Code, is 
amended--
            (1) by striking out subsection (i); and
            (2) by redesignating subsections (j), (k), (l), and (m) as 
        subsections (i), (j), (k), and (l) respectively.
    (jj) Health-Care Sharing Agreements Between Department of Veterans 
Affairs and Department of Defense.--Section 8111 of title 38, United 
States Code, is amended--
            (1) by striking out subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).
    (kk) Water Resources Projects.--Section 221(e) of the Flood Control 
Act of 1970 (42 U.S.C. 1962d-5b(e)) is amended by striking out '', and 
shall report thereon annually to the Congress,'' and inserting in lieu 
thereof a period.
    (ll) Public Health Service Hospitals.--Section 1252 of the 
Department of Defense Authorization Act, 1984 (42 U.S.C. 248d) is 
amended by striking out subsection (d).
    (mm) Review of Contracts.--Section 3(b) of the Act of August 28, 
1958 (50 U.S.C. 1433(b)) is amended by striking out the following 
sentence: ``If the clause is omitted based on a determination under 
clause (2), a written report shall be furnished to the Congress.''.
    (nn) Special Defense Acquisition Fund (SDAF) Annual Report.--
Section 53 of the Arms Export Control Act (22 U.S.C. 2795b) is 
repealed.
    (oo) Annual Department of Defense Conventional Standoff Weapons 
Master Plan and Report on Standoff Munitions.--Section 1641 of the 
National Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189; 10 U.S.C. 2431, note) is repealed.

SEC. 922. REPEAL OF PROHIBITION OF CONTRACTING FOR FIREFIGHTING AND 
              SECURITY GUARD FUNCTIONS AT MILITARY FACILITIES.

    Section 2465 of title 10, United States Code, is repealed.

SEC. 923. INCREASE IN UNSPECIFIED MINOR CONSTRUCTION THRESHOLD FROM 
              $1.5 MILLION TO $3.0 MILLION AND THE OPERATION AND 
              MAINTENANCE THRESHOLD FROM $300 THOUSAND TO $1 MILLION.

    Section 2805 of title 10, United States Code, is amended--
            (1) in paragraph (a)(1), by striking out ``$1,500,000'' and 
        inserting in lieu thereof ``$1,700,000''; and
            (2) in paragraph (c)(1), by striking out ``$300,000'' and 
        inserting in lieu thereof ``$350,000''.

SEC. 924. ANNUAL REPORT ON NATIONAL GUARD AND RESERVE COMPONENT 
              EQUIPMENT.

    (a) Submission Date of Report.--Section 115b(a) of title 10, United 
States Code, is amended by striking out ``February 15'' and inserting 
in lieu thereof ``March 1''.
    (b) Definition of Equipment in the Report.--Section 115b(b) of 
title 10, United States Code, is amended--
            (1) in paragraphs (1) through (6), by striking out ``major 
        item of equipment'' each place it appears and inserting in lieu 
        thereof in each instance ``combat essential item of 
        equipment'';
            (2) in paragraph (5)(E), by striking out ``major item of 
        equipment,'' and inserting in lieu thereof ``combat essential 
        item of equipment,''; and
            (3) in paragraph (7), by striking out ``item of major 
        equipment'' and inserting in lieu thereof ``combat essential 
        item of equipment''.
    (c) Effective Date.--The amendments to section 115b of title 10, 
United States Code, shall take effect on October 1, 1995.

SEC. 925. REVISION OF DATE FOR SUBMITTAL OF JOINT REPORT ON SCORING OF 
              BUDGET OUTLAYS.

    Section 226(a) of title 10, United States Code, is amended--
            (1) by striking out ``Not later than December 15 of each 
        year'' and inserting in lieu thereof ``Not later than the day 
        on which the budget for any fiscal year is submitted to 
        Congress pursuant to section 1105 of title 31''; and
            (2) by striking out ``major functional category 050'' and 
        all that follows through ``section 1105 of title 31'' and 
        inserting in lieu thereof ``subfunctional category 051 
        (Department of Defense--Military) for that budget.''

SEC. 926. REPEAL OF ANNUAL REPORT TO CONGRESS ON CONTRACTOR 
              REIMBURSEMENT COSTS OF ENVIRONMENTAL RESPONSE ACTIONS.

    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).

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. APPOINTMENT AND LIABILITY OF DISBURSING AND CERTIFYING 
              OFFICIALS.

    (a) Disbursing Officials.--(1) Section 3321(c)(2) of title 31, 
United States Code, is amended to read as follows:
            ``(2) the Department of Defense (including disbursements 
        for the military departments and Defense Agencies and 
        Department of Defense Field Activities).
            ``(3) the Coast Guard (when not operating as a service 
        within the Navy).''.
    (2) Section 2773(a)(1) of title 10, United States Code, is amended 
to read as follows:
    ``(a)(1) With the approval of the Secretary of Defense when the 
Secretary of Defense or the Secretary of a military department 
considers it necessary, a disbursing official of the Department of 
Defense (including the military departments, Defense Agencies and 
Department of Defense Field Activities) may designate a deputy 
disbursing official--
            ``(A) to make payments as the agent of the disbursing 
        official;
            ``(B) to sign checks drawn on disbursing accounts of the 
        Secretary of the Treasury; and
            ``(C) to carry out other duties required under law.''.
    (3) Section 2773(b)(1) of title 10, United States Code, is amended 
by striking out ``any military department'' and inserting in lieu 
thereof ``the Department of Defense''.
    (b) Appointment of Certifying Officials and Responsibilities of 
Disbursing Officials.--Section 3325(b) of title 31, United States Code, 
is amended to read as follows:
    ``(b) In addition to the personnel designated in subsection 
(a)(1)(B) of this section, the Secretary of Defense and the Secretary 
of Transportation (with respect to the Coast Guard when it is not 
operating as a service within the Navy) may authorize, in writing, 
military personnel under their respective jurisdictions to certify 
vouchers.''.
    (c) Responsibilities and Relief From Liability of Certifying 
Officials.--Section 3528(d) of title 31, United States Code, is amended 
to read as follows:
    ``(d)(1) Subsections (b) and (c) of this section do not apply to 
disbursements of the Department of Defense (including military 
departments, Defense Agencies and Department of Defense Field 
Activities), or to disbursements of the Coast Guard.
    ``(2)(A) The Secretary of Defense may relieve a certifying official 
who certifies disbursements of the Department of Defense (including the 
military departments, Defense Agencies and Department of Defense Field 
Activities), and the Secretary of Transportation (with respect to the 
Coast Guard when it is not operating as a service within the Navy) may 
relieve a certifying official who certifies disbursements of the Coast 
Guard, from liability when the Secretary concerned determines that--
            ``(i) the certification was based on official records and 
        the official did not know, and by reasonable diligence and 
        inquiry could not have discovered, the correct information; or
            ``(ii)(I) the obligation was incurred in good faith;
            ``(II) no law specifically prohibited the payment; and
            ``(III) the United States Government received value for 
        payment.
    ``(B) Before the Secretary concerned may grant relief under this 
paragraph, he must carry out diligent collection action.
    ``(3) The Secretary of Defense shall relieve a certifying official 
who certifies disbursements of the Department of Defense (including the 
military departments, Defense Agencies and Department of Defense Field 
Activities) and the Secretary of Transportation (with respect to the 
Coast Guard when it is not operating as a service within the Navy) 
shall relieve a certifying official who certifies disbursements of the 
Coast Guard, for an overpayment--
            ``(A) to a common carrier under section 3726 of this title 
        when the Secretary concerned decides the overpayment occurred 
        only because the administrative audit before payment did not 
        verify transportation rates, freight classifications, or land-
        grant deductions; or
            ``(B) that was provided under a Government bill of lading 
        or transportation request when such overpayment was the result 
        of the use of improper transportation rates or classifications 
        or the failure to deduct a proper amount under a land-grant law 
        or agreement.''.
    (d) Relief of Accountable Officials and Agents From Liability.--
Section 3527(b) of title 31, United States Code, is amended to read as 
follows:
    ``(b)(1) The Secretary of Defense may relieve a present or former 
accountable official or agent of the Department of Defense (including 
the military departments, Defense Agencies and Department of Defense 
Field Activities) and the Secretary of Transportation (with respect to 
the Coast Guard when it is not operating as a service within the Navy) 
may relieve a present or former accountable official or agent of the 
Coast Guard, responsible for the physical loss or deficiency of public 
money, vouchers, checks, securities, or records, or may authorize 
reimbursement, from an appropriation or fund available for 
reimbursement, of the amount of the loss or deficiency paid by or for 
the official as restitution, when--
            ``(A) the Secretary concerned decides that the official was 
        carrying out official duties when the loss or deficiency 
        occurred;
            ``(B) the loss or deficiency was not the result of an 
        illegal, improper, or incorrect payment; and
            ``(C) the loss or deficiency was not the result of fault or 
        negligence by the official.
    ``(2)(A) The Secretary of Defense may relieve a present or former 
disbursing official of the Department of Defense (including the 
military departments, Defense Agencies and Department of Defense Field 
Activities) and the Secretary of Transportation (with respect to the 
Coast Guard when it is not operating as a service within the Navy) may 
relieve a present or former disbursing official of the Coast Guard, 
responsible for a deficiency in an account because of an illegal, 
improper, or incorrect payment when the Secretary concerned determines 
that the payment was not a result of bad faith or lack of reasonable 
care by the official. Before the Secretary concerned may grant relief 
under this paragraph, he must carry out diligent collection action.
    ``(B) The Comptroller General shall credit the account previously 
debited for the deficiency when the Secretary concerned grants relief. 
The amount of the relief shall be charged--
            ``(i) to an appropriation specifically provided for the 
        charge; or
            ``(ii) if no appropriation is specified, to the 
        appropriation or fund available for the expense of the 
        accountable function when the adjustment is carried out.
    ``(C) This paragraph does not--
            ``(i) affect the liability, or authorize the relief, of a 
        payee, beneficiary, or recipient of an illegal, improper, or 
        incorrect payment; or
            ``(ii) relieve an accountable official,
                    the Secretary of Defense,
                    the Secretary of Transportation,
                    or the head of a military department, Defense 
                Agency, Department of Defense Field Activity, or the 
                Coast Guard
        of responsibility in carrying out collection action against a 
        payee, beneficiary, or recipient.''.
    (e) Special Provisions.--(1) Section 1012 of title 37, United 
States Code, is amended by striking out ``Secretary concerned'' both 
places the term appears and inserting in lieu thereof ``Secretary of 
Defense'' in each instance.
    (2) Section 1007(a) of title 37, United States Code, is amended by 
striking out ``Secretary concerned'' and inserting in lieu thereof 
``Secretary of Defense (or the Secretary of Transportation with respect 
to an officer of the Coast Guard when it is not operating as a service 
in the Navy), or upon the denial of relief for an officer pursuant to 
section 3527 or 3528 of title 31''.
    (3) Section 7863 of title 10, United States Code, is amended--
            (A) in the first sentence by striking out ``disbursements 
        of public moneys or'' and ``the money was paid or''; and
            (B) in the second sentence by striking out ``disbursement 
        or''.

SEC. 1002. DUE PROCESS EXEMPTIONS FOR MINOR ADJUSTMENTS IN INDEBTEDNESS 
              ACTIONS.

    Section 5514(a) of title 5, United States Code, is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5) respectively; and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) The provisions of paragraph (2) of this subsection do 
        not apply to routine adjustments of pay that are attributable 
        to clerical or administrative errors or delays in processing 
        pay documents that have occurred within the four pay periods 
        preceding the adjustment or to any adjustment that amounts to 
        fifty dollars or less, provided that at the time of such 
        adjustment, or as soon thereafter as practical, the individual 
        is provided written notice of the nature and the amount of the 
        adjustment and a point of contact for questioning or contesting 
        such adjustment.''.

SEC. 1003. AMENDMENTS TO CHAPTER 131, TITLE 10, UNITED STATES CODE, AND 
              TO THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
              1991.

    (a)(1) Chapter 131 of title 10, United States Code, is amended by 
adding at the end the following new sections:
``Sec. 2219. Authority to incur readiness obligations
    ``(a) Authority.--When the Secretary of Defense determines that it 
is necessary to do so, the Secretary may incur necessary obligations to 
preserve the readiness of the Armed Forces in excess of contract 
authority and amounts available in appropriations of the Department of 
Defense. This authority may be exercised only--
            ``(1) to the extent provided in an appropriations Act;
            ``(2) during the last two quarters of a fiscal year; and
            ``(3) with the approval of the Office of Management and 
        Budget.
    ``(b) Limitations.--(1) The authority provided by subsection (a) 
may be exercised only for obligations for--
            ``(A) essential readiness functions and activities of the 
        Armed Forces, including activities associated with mission 
        critical proficiency training, scheduled unit exercises;
            ``(B) the acquisition of spare parts that are critical to 
        the missions of the Armed Forces; and
            ``(C) such other activities that the Secretary of Defense 
        determines cannot be postponed without a major impact on the 
        readiness of the Armed Forces.
    ``(2) In any fiscal year in which obligations are incurred under 
the authority of this section the total of such obligations shall not 
be more than 50% of the total amount appropriated to the Department of 
Defense for Operation and Maintenance, Budget Activity 1 for such 
fiscal year.
    ``(c) Budget Proposals To Liquidate Obligations.--Any proposal 
transmitted by the President to the Congress to liquidate costs 
incurred under the provisions of this section shall be accompanied by 
offsetting rescission proposals, unless the President determines that 
emergency conditions exits which preclude such rescissions.
    ``(d) Notification to Congress.--The Secretary of Defense shall 
immediately notify the Congress of the use of any authority under this 
section.''.
``Sec. 2220. Closed and expired accounts: procedures
    ``Subdivided Appropriations.--In the case of accounts of the 
Department of Defense, Shipbuilding and Conversion, Navy and Weapons 
Procurement, Navy in which amounts have been appropriated as 
subdivisions within an appropriation, when a current account of the 
Department of Defense is to be charged under the provisions of section 
1553(b)(1) of title 31, United States Code, and appropriations have 
been made in that account on a subdivided basis, the phrase `any 
current appropriation account of the agency available for the same 
purpose' as used in section 1553(b)(1) of title 31 shall mean any 
subdivision of the currently available appropriation that is to be 
charged. Charges that are made may be allocated among the subdivisions 
of such a currently available appropriation. In calculating the amounts 
chargeable to such a currently available appropriation, the amount 
equal to one percent of the total appropriations for that appropriation 
shall be one percent of the cumulative total of the subdivisions of the 
appropriation being charged.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new items:

``2219. Authority to incur readiness obligations.
``2220. Closed and expired accounts: procedures.''.
    (b) Amendment to National Defense Authorization Act for Fiscal Year 
1991.--Section 1405(b) of the National Defense Authorization Act for 
Fiscal Year 1991 (31 U.S.C. 1551 note) is amended by adding at the end 
the following new paragraph:
            ``(9) Obligations and adjustments of obligations for 
        expired or closed accounts that may be in violation of the anti 
        deficiency act.--(A) Subject to subparagraphs (b), (c), (D), 
        (E), and (F), in the case of an appropriation account for a 
        fiscal year before fiscal year 1992 for which the period of 
        availability for obligation has expired, including an 
        appropriation account that has been closed under the provisions 
        of section 1552(a) of title 31, United States Code, or 
        paragraph (4) of this section, an obligation and an adjustment 
        to an obligation may be charged to any current appropriation 
        account of the Department of Defense that is available for the 
same purpose as the expired or closed account if--
                    ``(i) it appears, for a review of the accounting 
                records of the Department of Defense, that the expired 
                or closed account may have been over expended or over 
                obligated in violation of section 1341 of title 31, 
                United States Code;
                    ``(ii) an investigation by the Department of 
                Defense will be necessary to determine whether, in 
                fact, a violation of section 1341 of title 31, United 
                States Code, has occurred with respect to such expired 
                or closed account;
                    ``(iii) the obligation would have been properly 
                chargeable (except as to amount) to the expired or 
                closed account before the end of the period of 
                availability of the account; and
                    ``(iv) the obligation is not otherwise properly 
                chargeable to any current appropriation account of the 
                Department of Defense.
            ``(B) The total amount charged to a current appropriation 
        account under subparagraph (A) may not exceed an amount equal 
        to the lesser of--
                    ``(i) one percent of the total amount of the 
                appropriations for that account; or
                    ``(ii) one percent of that total amount of the 
                appropriations for the expired or closed account.
            ``(C) No obligation or adjustment to an obligation may be 
        charged pursuant to the provisions of this paragraph unless it 
        has been determined by the Department of Defense that the 
        obligation or adjustment cannot be charged pursuant to 
        paragraph (7) or (8) of this section, due to the need to 
        conduct the investigation described in subparagraph (A)(ii).
            ``(D) No obligation or adjustment to an obligation may be 
        charged pursuant to the provisions of this paragraph until the 
        Committee on Armed Services of the Senate, the Committee on 
        National Security of the House of Representatives and the 
        Committees on Appropriations of the Senate and House 
        Representatives are notified of the intent to make such a 
        charge and to initiate an investigation as described in subpart 
        (A)(ii), and a period of 30 days elapses after the notification 
        is submitted.
            ``(E) If the investigation described in subparagraph 
        (A)(ii) subsequently discloses that, in fact, there was no 
        violation of section 1341 of title 31, United States Code, then 
        in the case of an expired account that has not been closed, any 
        charge to a current account that was made pursuant to the 
        provisions of this paragraph shall be reversed and recorded 
        against the expired account which would have been charged but 
        for the need to conduct an investigation.
            ``(F) If the investigation described in subparagraph 
        (A)(ii) subsequently discloses that, in fact, there was a 
        violation of section 1341 of title 31, United States Code, then 
        notice of the violation shall be submitted promptly as required 
        by section 1351 of title 31, United States Code.''.

SEC. 1004. CLAIMS OF PERSONNEL FOR PERSONAL PROPERTY DAMAGE OR LOSS.

    (a) Claims Resulting From Emergency Evacuation or Other 
Extraordinary Circumstances.--Section 3721(c) of title 31, United 
States Code, is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) The Secretary of Defense or, for a military 
        department not part of the Department of Defense, the Secretary 
        of that military department, may waive the settlement and 
        payment limitation of paragraph (b) of this section for claims 
        by personnel under the jurisdiction of the concerned Secretary 
        for damage or loss of personal property where the concerned 
        Secretary determines that such claims arose from an emergency 
        evacuation or from extraordinary circumstances that warrant 
        such a waiver. The Secretary of Defense or, for a military 
        department not part of the Department of Defense, the Secretary 
        of that military department, shall prescribe regulations and 
        may delegate his or her authority for the administration of 
        this paragraph.''.
    (b) Retroactive Application.--The amendment made by this section 
shall apply with respect to claims arising on or after June 1, 1991.

                  Subtitle B--Counter-Drug Activities

SEC. 1011. CLARIFICATION AND AMENDMENT OF AUTHORITY FOR FEDERAL SUPPORT 
              OF DRUG INTERDICTION AND COUNTERDRUG ACTIVITIES OF THE 
              NATIONAL GUARD.

    (a) In General.--Section 112 of title 32, United States Code, is 
amended to read as follows:
``Sec. 112. Drug interdiction and counterdrug activities of the 
              National Guard
    ``(a) Definitions.--For purposes of this section--
            ``(1) the term `drug interdiction and counterdrug 
        activities' means the use of National Guard personnel, while 
        not in Federal service, in any drug interdiction and 
        counterdrug law enforcement activities authorized by State law 
        and requested by the Governor;
            ``(2) the term `Governor of a State' means, in the case of 
        the District of Columbia, the Commanding General of the 
        National Guard of the District of Columbia,
            ``(3) the term `State' means each of the several States, 
        Territories, the District of Columbia, or the Commonwealth of 
        Puerto Rico, and
            ``(4) the term `counterdrug duty' means full-time National 
        Guard duty under section 502(f) of this title for the purpose 
        of drug interdiction and counterdrug activities pursuant to a 
        plan submitted and approved under subsection (c) of this 
        section.
    ``(b) Funding Assistance; Authorization of Full-Time National Guard 
Duty.--(1) The Secretary of Defense may, under regulations prescribed 
by the Secretary, provide to the Governor of a State who submits a plan 
to the Secretary under subsection (c) sufficient funds for--
            ``(A) the pay, allowances, clothing, subsistence, 
        gratuities, travel, and related expenses, as authorized by 
        State law, of personnel of the National Guard of that State 
        used for the purpose of drug interdiction and counterdrug 
        activities;
            ``(B) the operation and maintenance of the equipment and 
        facilities of the National Guard of that State used for the 
        purpose of drug interdiction and counterdrug activities; and
            ``(C) the procurement of services and leasing of equipment 
        for the National Guard of that State used for the purpose of 
        drug interdiction and counterdrug activities.
    ``(2) Under regulations to be prescribed by the Secretary, to the 
extent requested by a Governor in the plan required under subsection 
(c) the Secretary may, in lieu of providing funds to the Governor for 
the purposes specified in subsection (1)(A), allocate funds for the 
pay, allowances, clothing, subsistence, gratuities, travel, and related 
expenses of personnel of the National Guard of that State who perform 
counterdrug duty under section 502(f) of this title pursuant to a plan 
submitted and examined as required by this section.
    ``(3) Not more than 4000 members of the National Guard may be on 
counterdrug duty under this section for more than 180 days, or kept on 
duty under State authority for more than 180 days for drug interdiction 
and counterdrug activities with State pay and allowances reimbursed 
under this section, at the end of any fiscal year. The Secretary of 
Defense may increase the end strength authorized in the preceding 
sentence by not more than 20% of that end strength at the end of any 
fiscal year if the Secretary determines that such an increase is 
necessary in the national interest because of unforeseen needs.
    ``(c) Plan Requirements; Examination of Plan.--(1) A State Drug 
Interdiction and Counterdrug Activities Plan shall--
            ``(A) specify how personnel of the National Guard of that 
        State are to be used in drug interdiction and counterdrug 
        activities;
            ``(B) certify that those operations are to be conducted at 
        a time when the personnel involved are not in Federal service;
            ``(C) certify that participation by National Guard 
        personnel in those operations is service in addition to 
        training required under section 502 of this title;
            ``(D) include a certification by the attorney general or 
        equivalent civil official of the State that the use of the 
        National Guard for the activities proposed thereunder is 
        authorized by and consistent with state law; and
            ``(E) certify that the Governor or a civil law enforcement 
        official of the State designated by the Governor has determined 
        that any activities in conjunction with Federal law enforcement 
        agencies included in the plan serve a state law enforcement 
        purpose.
    ``(2) Before funds are provided to the Governor of a State under 
this section, or members of the National Guard of that State are 
ordered to counterdrug duty, the Secretary of Defense shall examine the 
adequacy of the plan submitted by the Governor under subsection (1).
    ``(3) Except as provided in paragraph (4), the Secretary shall 
carry out subsection (2) in consultation with the Director of National 
Drug Policy.
    ``(4) Paragraph (3) shall not apply if--
            ``(A) the Governor of a State submits a plan under 
        subsection (1) that is substantially the same as a plan 
        submitted for that State for a previous fiscal year; and
            ``(B) funds were provided to the State or expended for 
        counterdrug duty pursuant to such plan.
    ``(d) Statutory Construction.--Nothing in this section shall be 
construed as a limitation on the authority of any unit of the National 
Guard of a State, when such unit is not in Federal service, to perform 
law enforcement functions authorized to be performed by the National 
Guard by the laws of the State concerned.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 1 of title 32, United States Code, is amended by amending the 
item relating to section 112 to read as follows:

``112. Drug interdiction and counterdrug activities of the National 
                            Guard.''.

SEC. 1012. AUTHORIZATION TO CONDUCT OUTREACH PROGRAMS TO REDUCE DEMAND 
              FOR ILLEGAL DRUGS.

    (a) In General.--Chapter 18 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 382. Outreach programs to reduce demand for illegal drugs
    ``(a) Outreach Programs.--The Secretary of Defense may conduct 
outreach programs to reduce the demand for illegal drugs among youths. 
The programs may include outreach activities, either separately or 
jointly, by both the active and reserve components of the armed forces.
    ``(b) Funding.--Funds available to the Department of Defense for 
drug interdiction and counter-drug activities may be used for carrying 
out the outreach programs described in subsection (a).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 18 of title 10, United States Code, is amended by adding at the 
end the following new item:

``382. Outreach programs to reduce demand for illegal drugs.''.

                       Subtitle C--Other Matters

SEC. 1021. AUTHORIZATION OF TRANSPORTATION BETWEEN RESIDENCE AND PLACE 
              OF EMPLOYMENT.

    Section 1344(d) of title 31, United States Code, is amended--
            (1) in paragraph (1), by striking out ``name and'';
            (2) in paragraph (2), by striking out ``90 additional 
        calendar days.'' and ``90 calendar days,'' and inserting in 
        lieu thereof ``one year.'' and ``one year,'' respectively; and
            (3) in paragraph (3), by striking out the period at the end 
        of the first sentence and inserting in lieu thereof ``, with 
        respect to the Department of Defense, the Secretary of Defense 
        may delegate the authority under subsection (b)(8) to the Heads 
        of Department of Defense Components, and with respect to the 
        Military Departments, the Service Secretary may delegate the 
        authority under subsection (b)(8) to an officer in the 
        department at or above the level of the Service Vice Chief.''.

SEC. 1022. NATIONAL GUARD CIVILIAN YOUTH OPPORTUNITIES PROGRAM.

    Section 1091 of the National Defense Authorization Act for Fiscal 
Year 1993 (32 U.S.C. 501 note) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Program Authority.--The Secretary of Defense, acting through 
the Chief of the National Guard Bureau, may conduct a program to be 
known as the ``National Guard Civilian Youth Opportunities Program.'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Purpose.--The purpose of the program is to improve the life 
skills and employment potential of civilian youth who cease to attend 
secondary school before graduation, through military-based training, 
including supervised work experience in community service and 
conservation projects, provided by the National Guard.'';
            (3) by striking out ``pilot'' in each place it appears;
            (4) by striking out ``conducted under the pilot program'' 
        in each place it appears; and
            (5) by striking out ``under the pilot program'' in the 
        first sentence of subsection (g)(1).
    (b) Requisition and Use of General Services Administration 
Vehicles.--Section 1091(h) of the National Defense Authorization Act 
for Fiscal Year 1993 (32 U.S.C. 501 note) is amended by adding at the 
end the following new paragraph:
            ``(3) The conduct of a program by a State under an 
        agreement entered into pursuant to subsection (d) of this 
        section shall be considered an official government purpose for 
        the purpose of requisitioning and use of government vehicles 
        pursuant to section 211 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 491). The United 
        States Property and Fiscal Officer of the National Guard of the 
        jurisdiction concerned shall be considered an official of a 
requisitioning agency for the purpose of such section 491.''.

SEC. 1023. CLARIFICATION OF AUTHORITY FOR REQUISITIONING AND LEASE OF 
              GENERAL SERVICES VEHICLES FOR THE NATIONAL GUARD.

    (a) In General.--Chapter 7 of title 32, United States Code is 
amended by adding at the end the following new section:
``Sec. 717. Requisitioning and use of General Services Administration 
              vehicles
    ``The training and administration of the National Guard by the 
States, Territories, Puerto Rico, and the District of Columbia, in 
accordance with this title and regulations prescribed under this title, 
shall be considered an official government purpose for the purpose of 
requisitioning and use of government vehicles pursuant to section 211 
of the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 491). The United States Property and Fiscal Officer of the 
National Guard of the jurisdiction concerned shall be considered an 
official of a requisitioning agency for the purposes of such section 
491.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 7 of title 32 is amended by inserting at the end the following 
new item:

``717. Requisitioning and use of General Services Administration 
                            vehicles.''.

SEC. 1024. ARMED FORCES HISTORICAL PRESERVATION PROGRAM.

    Section 2572(b)(1) of title 10, United States Code is amended by 
striking out ``and restoration services'' and inserting in lieu thereof 
``restoration, conservation, and preservation services, and for 
educational programs, supplies and new upgraded or renovated 
conservation equipment, facilities and systems within existing 
structures,''.

SEC. 1025. AMENDMENTS TO EDUCATION LOAN REPAYMENT PROGRAMS.

    (a) General Education Loan Repayment Program.--Section 2171(a)(1) 
of title 10, United States Code, is amended--
            (1) by striking out ``or'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) any loan made under part D of such title (the 
                William D. Ford Federal Direct Loan Program, 20 U.S.C. 
                1087a et seq.); or''.
    (b) Education Loan Repayment Program: Enlisted Members of Selected 
Reserve With Critical Specialties.--Section 16301(a)(1) of title 10, 
United States Code, is amended--
            (1) by striking out ``or'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) any loan made under part D of such title (the 
                William D. Ford Federal Direct Loan Program, 20 U.S.C. 
                1087a et seq.); or''.
    (c) Education Loan Repayment Program: Health Professions Officers 
Serving in Selected Reserve With Wartime Critical Medical Skill 
Shortages.--Section 16302(a) of title 10, United States Code, is 
amended--
            (1) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5) respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) any loan made under part D of such title (the William 
        D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); 
        or''.

TITLE XI--MATTERS RELATING TO ALLIES, OTHER NATIONS, AND INTERNATIONAL 
                             ORGANIZATIONS

SEC. 1101. BURDENSHARING CONTRIBUTIONS: ACCOUNTING.

    Section 2350j of title 10, United States Code, is amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) Accounting.--Contributions which are not related to Security 
Assistance and which are accepted from the Republic of Korea under 
subsection (a) shall be placed in a special account. Such contributions 
may be accepted, managed, and expended in dollars or in the currency of 
the host nation, and shall be available for the purposes specified in 
subsection (c) until expended.''; and
            (2) in subsection (d), by striking out ``credited under 
        subsection (b) to an appropriation account of the Department of 
        Defense'' and inserting in lieu thereof ``placed in the special 
        account established under subsection (b)''.

SEC. 1102. RELOCATION OF UNITED STATES ARMED FORCES IN JAPAN AND THE 
              REPUBLIC OF KOREA.

    (a) In General.--Subchapter II of chapter 138 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2350k. Relocation of United States armed forces in Japan and the 
              Republic of Korea
    ``(a) Authority To Accept Contributions.--The Secretary of Defense 
is authorized to accept contributions from Japan and the Republic of 
Korea in dollars or in the currency of the host nation to be expended 
for the purposes specified in subsection (b).
    ``(b) Expenditure of Contributions.--The Secretary of Defense may 
expend contributions accepted under subsection (a) only in payment of 
costs incurred because of or in support of the relocation of elements 
of the United States armed forces from or to any location within the 
host nation. These costs include--
            ``(1) design and construction services, including 
        development and review of statements of work, master plans and 
        designs, acquisition of construction, and supervision and 
        administration of contracts relating thereto;
            ``(2) transportation and movement services, including 
        packing, unpacking, storage, and transportation;
            ``(3) communications services, including installation and 
        deinstallation of communications equipment, transmission of 
        messages and data, and rental of transmission capability;
            ``(4) supply and administration, including acquisition of 
        expendable office supplies, rental of office space, budgeting 
        and accounting services, auditing services, secretarial 
        services, and translation services;
            ``(5) personal costs, including salary, allowances and 
        overhead of employees whether full-time or part-time, temporary 
        or permanent (except for military personnel), and travel and 
        temporary duty costs; and
            ``(6) all other clearly identifiable expenses directly 
        related to relocation.
    ``(c) Method of Contribution.--Contributions may be accepted in the 
following forms:
            ``(1) Irrevocable letter of credit issued by a financial 
        institution acceptable to the Treasurer of the United States;
            ``(2) Drawing rights on a commercial bank account 
        established and funded by the host nation, which account is 
        blocked such that funds deposited cannot be withdrawn except by 
        or with the approval of the United States; or
            ``(3) Cash, which shall be deposited in a separate Trust 
        Fund in the United States Treasury pending expenditure and 
        shall accrue interest in accordance with section 9702 of title 
        31, United States Code.
    ``(d) Reports.--Not later than 30 days after the end of each fiscal 
year, the Secretary of Defense shall submit to the Congress a report 
specifying--
            ``(1) the amount of the contributions accepted by the 
        Secretary during the preceding fiscal year under subsection (a) 
        and the purposes for which the contribution were made; and
            ``(2) the amount of the contributions expended by the 
        Secretary during the preceding fiscal year and the purposes for 
        which the contributions were expended.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter II of chapter 138 of title 10, United States Code, is 
amended by adding at the end the following new item:

``2350k. Relocation of United States armed forces in Japan and the 
                            Republic of Korea.''.
    (c) Effective Date.--This section shall take effect on October 1, 
1995, and shall apply to contributions for relocation of United States 
armed forces in or to Japan and the Republic of Korea received on or 
after such date.

SEC. 1103. RATIONALIZATION, STANDARDIZATION AND INTEROPERABILITY.

    Section 515(a)(6) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321i(a)(6)) is amended to read as follows:
            ``(6) promoting rationalization, standardization, 
        interoperability, and other defense cooperation measures; and''

SEC. 1104. COST OF LEASED ITEMS WHICH HAVE BEEN DESTROYED BY THE 
              LESSEE.

    Section 61 of the Arms Export Control Act (22 U.S.C. 2796) is 
amended--
            (1) by amending subsection (a)(3) to read as follows:
            ``(3) the country or international organization has agreed 
        to pay in United States dollars all costs incurred by the 
        United States Government in leasing such articles, including 
        reimbursement for depreciation of such articles while leased, 
        the costs of restoration or replacement if the articles are 
        damaged while leased, and, if the articles are lost or 
        destroyed while leased--
                    ``(A) in the event the United States intends to 
                replace the item lost or destroyed, the replacement 
                cost (less any depreciation in the value) of the 
                articles; or
                    ``(B) in the event the United States does not 
                intend to replace the item lost or destroyed, an amount 
                not less than the actual value (less any depreciation 
                in the value) specified in the lease agreement.''; and
            (2) by adding at the end the following new subsection:
    ``(d) The Secretaries of the military departments may use amounts 
paid by the country or international organization pursuant to 
subsection (a)(3)(A) to replace the item lost or destroyed and amounts 
paid by the country or international organization pursuant to 
subsection (a)(3)(B) to fund upgrades or modifications of similar 
systems of the military departments.''.

SEC. 1105. EXCHANGE AND RETURNS OF DEFENSE ARTICLES PREVIOUSLY 
              TRANSFERRED PURSUANT TO THE ARMS EXPORT CONTROL ACT.

    (a) Section 21 of the Arms Export Control Act (22 U.S.C. 2761) is 
amended by adding at the end the following new subsection:
    ``(l)(1) Subject to paragraph (2) of this subsection, the President 
may acquire from an eligible foreign country or international 
organization a defense article, previously transferred to such country 
or organization in accordance with this Act, as follows:
            ``(A) a repairable defense article other than an end item 
        to be exchanged or repaired or new spare part or component of 
        the same type that is available in the stocks of the Department 
        of Defense; or
            ``(B) a defense article, other than significant military 
        equipment, which is in fully functioning condition without need 
        of repair or rehabilitation.
    ``(2) The authority of the President to accept the return of a 
defense article as provided in paragraph (1) of this subsection is not 
subject to chapter 137 of title 10, United States Code, or any other 
provision relating to the conclusion of contracts. The following 
conditions apply to the exercise of such authority:
            ``(A) The Department of Defense must have a requirement for 
        such defense article or must be accepting the return for 
        subsequent transfer to another eligible foreign country or 
        international organization pursuant to a Letter of Offer and 
        Acceptance implemented in accordance with this Act.
            ``(B) The Department of Defense must have available 
        sufficient funds either (i) authorized and appropriated for 
        such purpose, or (ii) provided by another eligible purchaser 
        pursuant to a Letter of Offer and Acceptance implemented in 
        accordance with this Act.
            ``(C) The eligible foreign country or international 
        organization receiving a defense article in exchange for a 
        repaired or new spare part or component under subparagraph 
        (1)(A) of this subsection shall, upon return to and acceptance 
        by the United States Government of the repairable defense 
        article, be charged the total cost associated with the repair 
        and replacement transaction. The cost should be the same as 
        that charged the United States Armed Forces for a similar 
        repair and replacement transaction, plus an administrative 
        surcharge in accordance with subsection (e)(1)(A) of this 
        section.
            ``(D) Upon acquisition and acceptance by the United States 
        Government of a defense article under subparagraph (1)(B) of 
        this subsection, the appropriate Foreign Military Sales account 
        of the provider will be credited to reflect the transaction.
    ``(3) Under the direction of the President, the Secretary of 
Defense shall promulgate regulations to implement the provisions of 
this subsection.''.

SEC. 1106. FOREIGN DISASTER ASSISTANCE.

    Subsection 404(c) of title 10, United States Code, is amended by 
striking out ``Not'' at the beginning of the first sentence and 
inserting in lieu thereof ``In case of any operation which is expected 
to exceed $10 million in cost or last longer than three months, not''.

SEC. 1107. HUMANITARIAN ASSISTANCE.

    Section 2551(e) of title 10, United States Code, is amended to read 
as follows:
    ``(e) Status Reports.--(1) The Secretary of Defense shall submit, 
at the time of the budget submission by the President, a report to the 
Committees on Armed Services and Foreign Relations of the Senate and 
the Committees on National Security and International Relations of the 
House of Representatives on the provision of humanitarian assistance 
pursuant to this section for the prior fiscal year program.
    ``(2) Each report required by paragraph (1) shall cover all 
provisions of law, contained in defense authorization acts, that 
authorize appropriations for humanitarian assistance to be available 
for the purposes of this section. Subsequent reports shall not be 
submitted after the obligation of all amounts appropriated pursuant to 
such provisions of law.
    ``(3) Required reports shall contain the following information 
regarding the previous fiscal year's activities:
            ``(A) The total amount of funds obligated for humanitarian 
        relief under this section.
            ``(B) The number of scheduled and completed transportation 
        missions for purposes of providing humanitarian assistance 
        under this section.
            ``(C) A description of any transfer of excess nonlethal 
        supplies of the Department of Defense made available for 
        humanitarian relief purposes under section 2547 of this title. 
        The description shall include the date of the transfer, to whom 
        the transfer is made, and the quantity of items transferred.''.

SEC. 1108. HUMANITARIAN ASSISTANCE PROGRAM FOR CLEARING LANDMINES.

    Section 1413 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2913) is amended--
            (1) in subsection (a) by inserting after ``Secretary of 
        Defense'' ``, with the concurrence of the Secretary of 
        State,''; and
            (2) by amending subsection (d) to read as follows:
    ``(d) Use of Funds.--During Fiscal Year 1996, funds appropriated to 
the Department of Defense which are available for humanitarian 
assistance may be used--
            ``(1) for activities to support the clearing of landmines 
        for humanitarian purposes, including activities related to the 
        furnishing of education, training, and technical assistance;
            ``(2) for the provision of equipment and technology by 
        transfer or lease to a foreign government that is participating 
        in a landmine clearing program under this section;
            ``(3) for contributions to nongovernmental and 
        international organization that have experience in the clearing 
        of landmines to support the activities described in subsection 
        (a); and
            ``(4) for rudimentary construction and repair of facilities 
        in support of the demining program.''.

SEC. 1109. REIMBURSEMENTS, CREDITS, AND LIMITED PAYMENTS FOR 
              ASSESSMENTS RELATING TO INTERNATIONAL PEACEKEEPING AND 
              PEACE ENFORCEMENT ACTIVITIES.

    (a) In General.--Subchapter I of chapter 20 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 406. International peacekeeping and international peace 
              enforcement; support involving United States combat 
              forces
    ``(a) Authority.--Notwithstanding the provisions of any other law, 
the President is authorized to provide assistance, including personnel, 
supplies, services, and equipment, in support of international 
peacekeeping and peace enforcement activities, and to make 
contributions to pay assessments on behalf of the United States for 
such operations conducted by the United Nations in which United States 
combat forces participate.
    ``(b) Reimbursement Provisions.--Whenever assistance is provided 
under subsection (a), the President shall require reimbursement to the 
United States for the agreed costs of providing such support, subject 
to the following provisions:
            ``(1) In exceptional circumstances, and when the President 
        finds it to be in the national interest, he may waive, in whole 
        or in part, the requirement of such reimbursement.
            ``(2) In the case of a reimbursement from the United 
        Nations, such reimbursement may be made, subject to section 
        (c)(1), either directly, or indirectly in the form of the 
        receipt of a credit to be applied against the United States 
        Government of any assessment due and owing.
    ``(c) Crediting of Receipts.--(1) The President is authorized to 
receive reimbursement from any source for the costs incurred by the 
United States for assistance provided pursuant to subsection (a). Any 
reimbursements received shall first be used to reimburse the 
appropriate department of the Department of Defense for any incremental 
costs incurred in the provision of such assistance. Reimbursements 
received for incremental costs shall be credited, at the option of the 
appropriate department of the Department of Defense, either to the 
appropriation, fund, or account utilized in incurring the obligation, 
or to an appropriate appropriation, fund, or account currently 
available for the purpose for which the expenditures were made.
    ``(2) An account known as the International Peacekeeping and Peace 
Enforcement Activities Account is hereby established in the Treasury of 
the United States. Moneys appropriated to or deposited in this Account 
shall be utilized for the purpose of paying assessments for United 
Nations operations made under this section and shall remain available 
until expended. To the extent that the amount of any reimbursement 
received is in excess of reimbursement for incremental costs made under 
subsection (c)(1), such excess funds may be credited to the Account.
    ``(d) Annual Reporting Requirement.--The President shall submit to 
Congress not later than February 1 of each year a report for the 
previous fiscal year containing--
            ``(1) a description of each international peacekeeping or 
        peace enforcement activity supported under the authority of 
        this section;
            ``(2) the types of assistance provided under this section, 
        by operation or activity supported; and
            ``(3) the dollar value, by operation or activity supported, 
        of all assistance provided, reimbursements received, 
        reimbursements waived, credits taken, and obligations incurred 
        in the International Peacekeeping and Peace Enforcement 
        Activities Account.
    ``(e) Authorization of Appropriations.--There are hereby authorized 
to be appropriated to the Department of Defense, funds for the payment 
of assessments for United Nations operations made under the authority 
of this section.
    ``(f) Limitations on the Payment of Assessments.--(1) Payments for 
assessments made under subsection (a) may be provided only for an 
operation conducted by the United Nations for which the Secretary of 
Defense has primary responsibility.
    ``(2) Payments for assessments made under subsection (a) shall not 
be available in an amount which is greater than 25 percent of the total 
of all assessed contributions for such operations.
    ``(g) Authority Inapplicable When United States Combat Forces Are 
Not Involved.--The authority in subsection (a) to pay United Nations 
assessments for international peacekeeping and international peace 
enforcement activities of the United Nations may not be construed as 
authorizing payment of United Nations assessments for any such activity 
in which United States combat forces do not participate.
    ``(h) Definitions.--The following definitions apply in this 
section:
            ``(1) The term `international peacekeeping' means those 
        international peacekeeping activities performed pursuant to 
        Chapter VI of the United Nations Charter.
            ``(2) The term `international peace enforcement' means 
        those activities performed pursuant to Chapter VII of the 
        United Nations Charter.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter I of chapter 20 of title 10, United States Code, is amended 
by adding at the end the following new item:

``406. International peacekeeping and international peace enforcement; 
                            support involving United States combat 
                            forces.''.

SEC. 1110. EXTENSION AND AMENDMENT OF COUNTER- PROLIFERATION 
              AUTHORITIES.

    Section 1505 of the National Defense Authorization Act for fiscal 
year 1993 (22 U.S.C. 5859a) is amended--
            (1) in subsection (a), by striking out ``during fiscal 
        years 1994 and 1995'' and inserting in lieu thereof ``during 
        fiscal year 1996'';
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking out ``the On-Site 
                Inspection Agency'' and inserting in lieu thereof ``the 
                Department of Defense''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(5) Activities supporting the dismantlement, destruction, 
        diversion, or conversion to acceptable uses of nuclear, 
        biological, and chemical weapons, their delivery systems, 
        related articles and technologies of concern, and other 
        weapons.'';
            (3) by amending subsection (c)(3) to read as follows:
            ``(3) No amount may be obligated for an expenditure under 
        this section unless the Director of the Office of Management 
        and Budget determines that the expenditure will be counted as 
        discretionary spending in the national defense function 
        (050).'';
            (4) in subsection (d)--
                    (A) by striking out paragraphs (1) and (3); and
                    (B) by striking out ``(2)'' at the beginning of the 
                remaining matter; and
            (5) in subsection (e), by striking out ``fiscal years 1994 
        and 1995'' and inserting in lieu thereof ``during fiscal year 
        1996''.

SEC. 1111. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS WITH NATO 
              ORGANIZATIONS--TECHNICAL AND CONFORMING AMENDMENTS.

    Section 2350b(e) of title 10, United States Code, is amended--
            (1) in paragraph (1), by inserting ``or a NATO 
        organization'' after ``a participant (other than the United 
        States)''; and
            (2) in paragraph (2), by inserting ``or a NATO 
        organization'' after ``a cooperative project''.

                     TITLE XII--ACQUISITION REFORM

SEC. 1201. WAIVERS FROM CANCELLATION OF FUNDS.

    Notwithstanding section 1552(a) of title 31, United States Code--
            (1) funding appropriated for satellite on-orbit incentive 
        fees will remain available for obligation and expenditure until 
        the fee is earned; and
            (2) funding appropriated for Shipbuilding and Conversion, 
        Navy, and for other government shipbuilding appropriations, 
        available for engineering services, tests, and evaluations, and 
        other such budgeted work that must be performed in the final 
        stage of ship construction shall be available for obligation 
        and expenditure until the purpose for which such monies were 
        appropriated is satisfied.

SEC. 1202. AMENDMENT TO CONFORM PROCUREMENT NOTICE POSTING THRESHOLDS.

    Section 18(a)(1)(B) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 416(a)(1)(B)) is amended--
            (1) by inserting, after the word ``contract'' the 
        following: ``expected to exceed $10,000 but not to exceed 
        $25,000''; and
            (2) by deleting subparagraphs (i) and (ii) entirely.

SEC. 1203. COMPETITIVENESS OF UNITED STATES COMPANIES.

    Section 2761 of title 22, United States Code, is amended--
            (1) by adding the word ``and'' to the end of subparagraph 
        (e)(1)(A);
            (2) by striking out subparagraph (e)(1)(B) in its entirety;
            (3) by redesignating the existing subparagraph (e)(1)(C) as 
        (e)(1)(B);
            (4) by striking out paragraph (e)(2) in its entirety; and
            (5) by redesignating the existing paragraph (e)(3) as 
        (e)(2).

SEC. 1204. INAPPLICABILITY OF PROHIBITION ON GRATUITIES.

    Section 2207 of title 10, United States Code, is amended--
            (1) by inserting ``in excess of the simplified acquisition 
        threshold as defined in section 4(11) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403(11))'' after ``may not be 
        spent under a contract''; and
            (2) by inserting ``or for commercial items as defined in 
        section 4(12) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403(12))'' after ``a contract for personal 
        services''.

SEC. 1205. PROMPT RESOLUTION OF ADULT RECOMMENDATIONS.

    Section 6009 of the Federal Acquisition Streamlining Act of 1994 
(Public Law 103-355; 108 Stat. 3367, October 14, 1994) is amended to 
read as follows:

``SEC. 6009. PROMPT MANAGEMENT DECISIONS AND IMPLEMENTATION OF AUDIT 
              RECOMMENDATIONS.

    ``The Heads of Federal agencies shall make management decisions on 
all Office of Inspector General audit report findings and 
recommendations within a maximum of six months after their issuance, or 
in the case of audits performed by non Federal auditors, six months 
after receipt of the report by the Federal Government. The Heads of 
Federal agencies shall complete final action on the management decision 
within twelve months of the report issuance or the report will be 
listed in each Inspector General semiannual report.''.

SEC. 1206. REPEAL OF DOMESTIC SOURCE LIMITATION.

    Section 4542 of title 10, United States Code, is repealed.

SEC. 1207. EXTRAORDINARY CONTRACTUAL RELIEF.

    Section 5 of the Act of August 28, 1958 (Public Law 85-804; 72 
Stat. 973) is repealed.

SEC. 1208. DISPOSITION OF NAVAL VESSELS.

    Section 7306(a)(1) of title 10, United States Code, is amended by 
inserting ``territory,'' after ``state,''.

SEC. 1209. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SUBCONTRACTING 
              PLANS.

    Section 834 of National Defense Authorization Act for Fiscal Years 
1990 and 1991 (15 U.S.C. 637 note) is amended--
            (1) by amending paragraph (a)(1) to read as follows:
            ``(1) The Secretary of Defense shall establish a test 
        program under which contracting activities in the Military 
        Departments and Defense Agencies are authorized to undertake 
        one or more demonstration projects to determine whether the 
        negotiation and administration of comprehensive subcontracting 
        plans will reduce administrative burdens on contractors while 
        enhancing opportunities provided for small business and small 
        and disadvantaged business firms under Department of Defense 
        contracts. In selecting the contracting activities, every 
        effort shall be made to assure that a broad range of the 
        supplies and services acquired by the Department are included 
        in the test.'';
            (2) by amending subsection (b)(3) to read as follows:
            ``(3) A Department of Defense Contractor referred to in 
        paragraph (1) is, with respect to a comprehensive 
        subcontracting plan, a business concern that, during the 
        immediately preceding fiscal year--
                    ``(A) pursuant to at least three Department of 
                Defense contracts, furnishes supplies or services to 
                the Department of Defense, including professional 
                services, research and development and construction; 
                and
                    ``(B) the aggregate value of all such contracts is 
                at least $5,000,000.'';
            (3) by striking out subsection (g); and
            (4) by redesignating subsection (h) as subsection (g).

SEC. 1210. CIVIL RESERVE AIR FLEET.

    Sections 9512 of title 10, United States Code, is amended in 
subsections (b)(2) and (e) by striking out ``full'' before ``Civil 
Reserve Air Fleet'' in each subsection.

SEC. 1211. EIGHTEEN MONTH SHIPBUILDING CLAIMS.

    Section 2405(a) of title 10, United States Code, is amended by 
adding at the end the following new sentence (following, but not a part 
of, paragraph (2)): ``No court or board shall have jurisdiction of any 
claim that was not submitted to the contracting officer for a decision 
within the period provided by this section.''.

SEC. 1212. NAVAL SALVAGE FACILITIES.

    (a) Consolidated Statute.--Section 7361 of title 10, United States 
Code, is amended to read as follows:
``Sec. 7361. Naval salvage facilities
    ``(a) The Secretary of the Navy may contract or otherwise provide 
for necessary salvage facilities for public and private vessels.
    ``(b) The Secretary shall submit to the Secretary of Transportation 
for comment each proposed salvage contract that affects the interests 
of the Department of Transportation.
    ``(c) Term contracts are authorized only if the Secretary of the 
Navy determines that available commerical salvage facilities are 
inadequate to meet national defense requirements and provides public 
notice of intent to so contract.
    ``(d) The Secretary of the Navy may acquire or tranfer such vessels 
and equipment for operation by private salvage companies as the 
Secretary considers necessary.
    ``(e) Any private recipient of any salvage vessel or gear must 
agree in writing that such vessel or gear will be used to support 
organized offshore salvage facilities for as many years as the 
Secretary shall consider appropriate.
    ``(f) Amounts received under this section shall be credited to 
appropriations for maintaining naval salvage facilities. However, any 
amount received in excess of naval salvage costs incurred in that 
fiscal year shall be deposited into the general fund of the Treasury.
    ``(g) The Secretary of the Navy, or designee, may settle and 
receive payment for any claim by the United States for salvage services 
rendered by the Department of the Navy.''.
    (b) Conforming Amendments.--Sections 7362, 7363, 7364, 7365, and 
7367 of title 10, United States Code, are repealed.
    (c) Clerical Amendments.--The table of sections at the beginning of 
chapter 637 of title 10, United States Code, is amended--
            (1) by amending the item relating to section 7361 to read 
        as follows:

``7361. Naval salvage facilities.'';
        and
            (2) by striking out the items relating to sections 7362, 
        7363, 7364, 7365, and 7367.

SEC. 1213. FACTORIES AND ARSENALS: MANUFACTURE AT.

    (a) Consolidated Section.--Chapter 148 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 2542. Factories and arsenals: manufacture at
    ``(a) The Secretary of Defense and the secretaries of a military 
department may have supplies needed for the Department of Defense or a 
military department made, in appropriate cases, in factories, depots, 
or arsenals owned by the United States.
    ``(b) The Secretary of Defense or secretary of a military 
department may disestablish any United States arsenal that he considers 
unnecessary.''.
    (b) Conforming Amendments.--Sections 4532 and 9532 of title 10, 
United States Code, are repealed.
    (c) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 148 of title 10, United States Code, is amended by 
adding at the end the following new item:

``2542. Factories and arsenals: manufacture at.''.
    (2) The table of sections at the beginning of chapter 433 of title 
10, United States Code, is amended by striking out the item relating to 
section 4532.
    (3) The table of sections at the beginning of chapter 933 of title 
10, United States Code, is amended by striking out the item relating to 
section 9532.

SEC. 1214. BAR ON DOCUMENTING ECONOMIC IMPACT.

    (a) In General.--Section 2247 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 134 of title 10, United States Code, is amended by striking out 
the item relating to section 2247.

SEC. 1215. FEES FOR SAMPLES, DRAWINGS.

    Section 2539b(c) of title 10, United States Code, is amended by 
striking out ``may not exceed'' in the second sentence and inserting in 
lieu thereof ``must at least include''.

SEC. 1216. CONTRACTS: DELEGATIONS.

    (a) In General.--Section 2356 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 139 of title 10, United States Code, is amended by striking out 
the item relating to section 2356.

SEC. 1217. DEFENSE ACQUISITION PILOT PROGRAMS.

    Authorization for Waivers.--With respect to the defense acquisition 
pilot programs specified in section 5064 the Federal Acquisition 
Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 3359), and such 
future defense acquisition pilot programs that may be authorized by the 
Congress pursuant to section 809 of the National Defense Authorization 
Act for Fiscal Year 1991 (10 U.S.C. 2340 note), the Secretary of 
Defense is authorized to waive or limit the applicability of sections 
139(b)(3) and (e), 2366(d), 2399 (b), (c), (d), (e), and (h), 2403, 
2432, 2433, and 2434 of title 10, United States Code.

SEC. 1218. TESTING.

    (a) Major Systems and Munitions Programs.--Section 2366 to title 
10, United States Code, is amended--
            (1) by striking out ``survivability'' each place it appears 
        and inserting in lieu thereof in each instance 
        ``vulnerability'';
            (2) in subsection (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.'';
            (3) in subsection (c)(1), by striking out ``vulnerability 
        and lethality tests'' (as amended by paragraph (1) of this 
        subsection) and inserting in lieu thereof ``realistic 
        vulnerability and realistic lethality tests.'';
            (4) in subsection (d), by striking out ``vulnerability and 
        lethality testing'' (as amended by paragraph (1) of this 
        subsection) in each place it appears and inserting in lieu 
        thereof in each instance ``realistic vulnerability or realistic 
        lethality testing.'';
            (5) in subsection (d), by striking out ``Secretary overall 
        assessment'' and inserting in lieu thereof ``Secretary's 
        overall assessment''; and
            (6) in subsection (e)(3), by striking out ``vulnerability 
        of the system in combat'' and inserting in lieu thereof 
        ``vulnerability of the complete system configured for combat''.
    (b) Operational Test and Evaluation of Defense Acquisition 
Programs.--Section 2399 of title 10, United States Code, is amended--
            (1) in subsection (a)(1) and (2), by striking out ``major 
        defense acquisition program'' and inserting in lieu thereof 
        ``major system'';
            (2) in subsection (a)(1) by striking out ``program'' and 
        inserting in lieu thereof ``system'';
            (3) in the heading of subsection (b), by striking out 
        ``Operational Test and Evaluation.--'' and inserting in lieu 
        thereof ``Operational Test and Evaluation of Major Defense 
        Acquisition Programs.--'';
            (4) in subsection (b)(3), by striking out ``Under Secretary 
        of Defense for Acquisition,'' and inserting in lieu thereof 
        ``Under Secretary of Defense for Acquisition and Technology,'';
            (5) in subsection (d), by striking out ``program'' and 
        inserting in lieu thereof ``system'';
            (6) in subsection (d), by striking out the period at the 
        end of the subsection and inserting in lieu thereof the 
        following new sentences: ``, nor does it apply to the extent 
        that the Secretary of Defense has authorized, as prescribed in 
regulation, involvement by system contractor employees in operational 
test and evaluation analytic and logistic support. Such authorization 
must include steps designed to ensure the impartiality of system 
contractor employees and the integrity of the testing and evaluation 
process. In such cases, the test and evaluation master plan and the 
operational test and evaluation plan must identify the specific 
involvement of those contractor employees in the operational test and 
evaluation process and the steps taken to ensure contractor 
impartiality.'';
            (7) in subsection (e)(1), by striking out ``development, 
        production, or testing of such system'' and inserting in lieu 
        thereof ``development (excluding testing) or production of such 
        system'';
            (8) in subsection (e), by amending paragraph (3) to read as 
        follows:
            ``(3) A contractor that has participated in (or is 
        participating in) the development or production of a system for 
        a military department or Defense Agency (or for another 
        contractor of the Department of Defense) may not be involved 
        (in any way) in the establishment of operational test and 
        evaluation criteria:
                    ``(A) for data collection;
                    ``(B) for performance assessment; or
                    ``(C) for evaluation activities.''; and
            (9) in subsection (g), by striking out ``test and 
        evaluation plan'' and inserting in lieu thereof ``test and 
        evaluation master plan.''.

SEC. 1219. COORDINATION AND COMMUNICATION OF DEFENSE RESEARCH 
              ACTIVITIES.

    Section 2364 of title 10, United States Code, is amended--
            (1) in subsection (b)(5), by striking out ``milestone O, 
        milestone I, and milestone II'' and inserting in lieu thereof 
        ``acquisition program'';
            (2) in subsection (c)--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) The term `acquisition program decisions' has the 
        meaning given to it by the regulations promulgated by the 
        Secretary of Defense.''; and
            (B) by striking out paragraphs (3), and (4).

SEC. 1220. UNDEFINITIZED CONTRACT ACTIONS.

    Section 2326 of title 10, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking out paragraph (4); and
                    (B) by redesignating paragraph (5) as paragraph 
                (4); and
            (2) in subsection (g)(1), by adding at the end the 
        following new subparagraphs:
                    ``(E) Contingency operations as defined in section 
                101(a)(13) of this title.
                    ``(F) Peacekeeping or peace enforcement operations 
                as directed by the President.
                    ``(G) Disaster relief operations when directed by 
                the President to perform disaster relief pursuant to 
                the Disaster Relief Act of 1974 (42 U.S.C. 5121 et 
                seq.), or
                    ``(H) Humanitarian assistance''.

SEC. 1221. INDEPENDENT COST ESTIMATES.

    Section 2434(b)(1)(A) of title 10, United States Code, is amended 
to read as follows:
                    ``(A) be prepared by an office or other entity that 
                is not under the supervision, direction, or control of 
                the military department, defense agency, or other 
                component of the Department of Defense that is directly 
                responsible for carrying out the development or 
                acquisition of the program; provided, however, that if 
                the decision authority has been delegated for the 
                program to an official of a military department, 
                defense agency, or other component of the Department of 
                Defense, the regulations need only require 
                consideration of a cost estimate prepared by an office 
                or other entity that is not directly responsible for 
                carrying out the development or acquisition of the 
                program.

SEC. 1222. UNIT COST REPORTS.

    (a) Subsection (a) of section 2433 of title 10, United States Code, 
is amended by striking out paragraph (3).
    (b) Subsection (c) of section 2433 of title 10, United States Code, 
is amended in paragraph (3) by striking out ``contract as of the time 
the contract was made'' and inserting ``contract cost baseline'' in 
lieu thereof, and by striking out ``during the current fiscal year 
(other than the last quarterly unit cost report under subsection (b) 
for the preceding fiscal year)'' at the end of the paragraph.
    (c) Subsection (c) of such section is further amended by 
redesignating paragraphs (1), (2) and (3) as (A), (B), and (C), 
respectively, by redesignating (c) as (c)(1), and by inserting after 
paragraph (c)(1) the following new paragraph (2):
            ``(2) If the program manager for a major defense 
        acquisition program has submitted to the service acquisition 
        executive designated by the Secretary concerned a unit cost 
        report indicating an increase of 15 percent or more over the 
        Baseline Estimate in a category described in clauses (A) 
        through (C) of paragraph (1) and subsequently determines that 
        there is reasonable cause to believe--
                    ``(A) that the current program acquisition unit 
                cost of the program has increased by at least 5 percent 
                over the 15 percent increase in current program 
                acquisition unit cost for the program as shown in the 
                Baseline Estimate;
                    ``(B) in the case of a major defense acquisition 
                program that is a procurement program, that the 
                procurement unit cost for the program has increased by 
                at least 5 percent over the 15 percent increase in 
                procurement unit cost for the program as shown in the 
                Baseline Estimate; or
                    ``(C) that cost variances or schedule variances of 
                a major contract under the program have resulted in an 
                increase in the 15 percent increase in cost of the 
                contract of at least 5 percent over the contract cost 
                baseline; the program manager shall immediately submit 
                to the such service acquisition executive a unit cost 
                report containing the information determined as of the 
                date of the report, required by subsection (b).''.
    (d) Subsection (d) of such section is amended in paragraph (3) by 
striking out ``(for the first time since the beginning of the current 
fiscal year)''.
    (e) Subsection (g) of such section is amended in paragraph (1)(K) 
by striking out ``and the procurement unit cost for the succeeding 
fiscal year expressed in constant base year dollars and in current year 
dollars'' at the end of the sentence.

SEC. 1223. REPEAL OF SPARE PARTS QUALITY CONTROL.

    Section 2383 of title 10, United States Code, is repealed.

SEC. 1224. PATENT AND COPYRIGHT CASES.

    Section 2386(3) of title 10, United States Code, is amended to read 
as follows:
            ``(3) Rights to use designs, processes, technical data and 
        computer software.''.

SEC. 1225. DEFENSE ACQUISITION WORKFORCE ACT IMPROVEMENTS.

    (a) Post-Education Duty Assignments.--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 this 
        provision military members of the Acquisition Corps, as defined 
        in section 1731 of this title, who have graduated from the 
        Senior Acquisition Course at the Industrial College of the 
        Armed Forces if they are assigned, upon graduation, to Critical 
        Acquisition Positions, as defined in section 1733 of this 
        title.''.
    (b) Elimination of Three-Year Assignment Period.--Section 1734 of 
title 10, United States Code, is amended--
            (1) by striking out subsection (a);
            (2) by redesignating subsections (b) through (h) as 
        subsections (a) through (g) respectively; and
            (3) in subsection (c) (as redesignated by subsection 
        (b)(2)), by striking out ``or (b)(1)'' and ``or (b)(2)''.

SEC. 1226. TECHNICAL AMENDMENT TO AUTHORITY TO PROCURE FOR EXPERIMENTAL 
              OR TEST PURPOSES.

    Section 2373 of title 10, United States Code, is amended by 
inserting the word ``only'' after ``applies.''.

SEC. 1227. REPEAL OF CERTAIN DEPOT LEVEL MAINTENANCE PROVISIONS.

    Chapter 146 of title 10, United States Code, is amended by 
repealing sections 2466 and 2469 and by striking the respective items 
from the table of sections at the beginning of such chapter.
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