[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3616 Enrolled Bill (ENR)]

        H.R.3616

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
                                  eight


                                 An Act


 
To authorize appropriations for fiscal year 1999 for military activities 
of the Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel strengths 
   for such fiscal year for the Armed Forces, and for other purposes.

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

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999''.
    (b) Findings.--Congress makes the following findings:
        (1) Senator Strom Thurmond of South Carolina first became a 
    member of the Committee on Armed Services of the United States 
    Senate on January 19, 1959. Senator Thurmond's continuous service 
    on that committee covers more than 75 percent of the period of the 
    existence of the committee, which was established immediately after 
    World War II, and more than 20 percent of the period of the 
    existence of military and naval affairs committees of Congress, the 
    original bodies of which were formed in 1816.
        (2) Senator Thurmond came to Congress and the committee as a 
    distinguished veteran of service, including combat service, in the 
    Armed Forces of the United States.
        (3) Senator Thurmond was commissioned as a reserve second 
    lieutenant of infantry in 1924. He served with great distinction 
    with the First Army in the European Theater of Operations during 
    World War II, landing in Normandy in a glider with the 82nd 
    Airborne Division on D-Day. He was transferred to the Pacific 
    Theater of Operations at the end of the war in Europe and was 
    serving in the Philippines when Japan surrendered.
        (4) Having reverted to Reserve status at the end of World War 
    II, Senator Thurmond was promoted to brigadier general in the 
    United States Army Reserve in 1954. He served as President of the 
    Reserve Officers Association beginning that same year and ending in 
    1955. Senator Thurmond was promoted to major general in the United 
    States Army Reserve in 1959. He transferred to the Retired Reserve 
    on January 1, 1965, after 36 years of commissioned service.
        (5) The distinguished character of Senator Thurmond's military 
    service has been recognized by awards of numerous decorations that 
    include the Legion of Merit, the Bronze Star medal with ``V'' 
    device, the Army Commendation Medal, the Belgian Cross of the Order 
    of the Crown, and the French Croix de Guerre.
        (6) Senator Thurmond has served as chairman of the Committee on 
    Armed Services of the United States Senate since 1995 and served as 
    the ranking minority member of the committee from 1993 to 1995. 
    Senator Thurmond concludes his service as chairman at the end of 
    the One Hundred Fifth Congress, but is to continue to serve the 
    committee as a member in successive Congresses.
        (7) This Act is the fortieth annual authorization bill for the 
    Department of Defense for which Senator Thurmond has taken a major 
    responsibility as a member of the Committee on Armed Services of 
    the Senate.
        (8) Senator Thurmond, as an Army officer and a legislator, has 
    made matchless contributions to the national security of the United 
    States that, in duration and in quality, are unique.
        (9) It is altogether fitting and proper that this Act, the last 
    annual authorization Act for the national defense that Senator 
    Thurmond manages in and for the United States Senate as chairman of 
    the Committee on Armed Services, be named in his honor, as provided 
    in subsection (a).

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec.101.Army.
Sec.102.Navy and Marine Corps.
Sec.103.Air Force.
Sec.104.Defense-wide activities.
Sec.105.Reserve components.
Sec.106.Defense Inspector General.
Sec.107.Chemical demilitarization program.
Sec.108.Defense health programs.
Sec.109.Defense Export Loan Guarantee program.

                        Subtitle B--Army Programs

Sec.111.Multiyear procurement authority for Longbow Hellfire Missile 
          program.
Sec.112.Conditions for award of a second-source procurement contract for 
          the Family of Medium Tactical Vehicles.
Sec.113.Armored system modernization.
Sec.114.Reactive armor tiles.
Sec.115.Extension of authority to carry out Armament Retooling and 
          Manufacturing Support Initiative.

                        Subtitle C--Navy Programs

Sec.121.CVN-77 nuclear aircraft carrier program.
Sec.122.Increase in amount authorized to be excluded from cost 
          limitation for Seawolf submarine program.
Sec.123.Multiyear procurement authority for the Department of the Navy.
Sec.124.Annual GAO review of F/A-18E/F aircraft program.

                     Subtitle D--Air Force Programs

Sec.131.F-22 aircraft program.
Sec.132.C-130J aircraft program.

                        Subtitle E--Other Matters

Sec.141.Chemical stockpile emergency preparedness program.
Sec.142.Alternative technologies for destruction of assembled chemical 
          weapons.

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

               Subtitle A--Authorization of Appropriations

Sec.201.Authorization of appropriations.
Sec.202.Amount for basic and applied research.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec.211.Management responsibility for Navy mine countermeasures 
          programs.
Sec.212.Future aircraft carrier transition technologies.
Sec.213.Manufacturing technology program.
Sec.214.Sense of Congress on the Defense Science and Technology Program.
Sec.215.Next Generation Internet Program.
Sec.216.Crusader self-propelled artillery system program.
Sec.217.Airborne Laser Program.
Sec.218.Enhanced Global Positioning System program.

                  Subtitle C--Ballistic Missile Defense

Sec.231.Sense of Congress on National Missile Defense coverage.
Sec.232.Limitation on funding for the Medium Extended Air Defense 
          System.
Sec.233.Limitation on funding for Cooperative Ballistic Missile Defense 
          programs.
Sec.234.Sense of Congress with respect to Ballistic Missile Defense 
          cooperation with Russia.
Sec.235.Ballistic Missile Defense program elements.
Sec.236.Restructuring of acquisition strategy for Theater High-Altitude 
          Area Defense (THAAD) system.

                        Subtitle D--Other Matters

Sec.241.Extension of authority to carry out certain prototype projects.
Sec.242.NATO alliance ground surveillance concept definition.
Sec.243.NATO common-funded Civil Budget.
Sec.244.Executive agent for cooperative research program of the 
          Department of Defense and the Department of Veterans Affairs.
Sec.245.Review of pharmacological interventions for reversing brain 
          injury.
Sec.246.Pilot program for revitalizing the laboratories and test and 
          evaluation centers of the Department of Defense.
Sec.247.Chemical warfare defense.
Sec.248.Landmine alternatives.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec.301.Operation and maintenance funding.
Sec.302.Working capital funds.
Sec.303.Armed Forces Retirement Home.
Sec.304.Transfer from National Defense Stockpile Transaction Fund.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec.311.Refurbishment of M1-A1 tanks.
Sec.312.Operation of prepositioned fleet, National Training Center, Fort 
          Irwin, California.
Sec.313.Berthing space at Norfolk Naval Shipyard, Virginia.
Sec.314.NATO common-funded military budget.

                  Subtitle C--Environmental Provisions

Sec.321.Settlement of claims of foreign governments for environmental 
          cleanup of overseas sites formerly used by the Department of 
          Defense.
Sec.322.Authority to pay negotiated settlement for environmental cleanup 
          of formerly used defense sites in Canada.
Sec.323.Removal of underground storage tanks.
Sec.324.Report regarding polychlorinated biphenyl waste under Department 
          of Defense control overseas.
Sec.325.Modification of deadline for submittal to Congress of annual 
          reports on environmental activities.
Sec.326.Submarine solid waste control.
Sec.327.Arctic Military Environmental Cooperation Program.
Sec.328.Sense of Congress regarding oil spill prevention training for 
          personnel on board Navy vessels.

                Subtitle D--Information Technology Issues

Sec.331.Additional information technology responsibilities of Chief 
          Information Officers.
Sec.332.Defense-wide electronic mall system for supply purchases.
Sec.333.Priority funding to ensure year 2000 compliance of information 
          technology and national security systems.
Sec.334.Evaluation of year 2000 compliance as part of training exercises 
          programs.
Sec.335.Continuity of essential operations at risk of failure because of 
          information technology and national security systems that are 
          not year 2000 compliant.

         Subtitle E--Defense Infrastructure Support Improvement

Sec.341.Clarification of definition of depot-level maintenance and 
          repair.
Sec.342.Reporting and analysis requirements before change of commercial 
          and industrial type functions to private sector performance.
Sec.343.Notifications of determinations of military items as being 
          commercial items for purposes of the exception to requirements 
          regarding core logistics capabilities.
Sec.344.Oversight of development and implementation of automated 
          identification technology.
Sec.345.Contractor-operated civil engineering supply stores program.
Sec.346.Conditions on expansion of functions performed under prime 
          vendor contracts for depot-level maintenance and repair.
Sec.347.Best commercial inventory practices for management of secondary 
          supply items.
Sec.348.Personnel reductions in Army Materiel Command.
Sec.349.Inventory management of in-transit items.
Sec.350.Review of Defense Automated Printing Service functions.
Sec.351.Development of plan for establishment of core logistics 
          capabilities for maintenance and repair of C-17 aircraft.

   Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

Sec.361.Continuation of management and funding of Defense Commissary 
          Agency through the Office of the Secretary of Defense.
Sec.362.Expansion of current eligibility of Reserves for commissary 
          benefits.
Sec.363.Costs payable to the Department of Defense and other Federal 
          agencies for services provided to the Defense Commissary 
          Agency.
Sec.364.Collection of dishonored checks presented at commissary stores.
Sec.365.Restrictions on patron access to, and purchases in, overseas 
          commissaries and exchange stores.
Sec.366.Repeal of requirement for Air Force to sell tobacco products to 
          enlisted personnel.
Sec.367.Prohibition on consolidation or other organizational changes of 
          Department of Defense retail systems.
Sec.368.Defense Commissary Agency telecommunications.
Sec.369.Survey of commissary store patrons regarding satisfaction with 
          commissary store merchandise.

                        Subtitle G--Other Matters

Sec.371.Eligibility requirements for attendance at Department of Defense 
          domestic dependent elementary and secondary schools.
Sec.372.Assistance to local educational agencies that benefit dependents 
          of members of the Armed Forces and Department of Defense 
          civilian employees.
Sec.373.Department of Defense readiness reporting system.
Sec.374.Specific emphasis of program to investigate fraud, waste, and 
          abuse within Department of Defense.
Sec.375.Condition for providing financial assistance for support of 
          additional duties assigned to the Army National Guard.
Sec.376.Demonstration program to improve quality of personal property 
          shipments of members.
Sec.377.Pilot program for acceptance and use of landing fees charged for 
          use of domestic military airfields by civil aircraft.
Sec.378.Strategic plan for expansion of distance learning initiatives.
Sec.379.Public availability of operating agreements between military 
          installations and financial institutions.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec.401.End strengths for active forces.
Sec.402.Revision in permanent end strength levels.
Sec.403.Date for submission of annual manpower requirements report.
Sec.404.Additional exemption from percentage limitation on number of 
          lieutenant generals and vice admirals.
Sec.405.Extension of authority for Chairman of the Joint Chiefs of Staff 
          to designate up to 12 general and flag officer positions to be 
          excluded from general and flag officer grade limitations.
Sec.406.Exception for Chief, National Guard Bureau, from limitation on 
          number of officers above major general.
Sec.407.Limitation on daily average of personnel on active duty in 
          grades E-8 and E-9.

                       Subtitle B--Reserve Forces

Sec.411.End strengths for Selected Reserve.
Sec.412.End strengths for Reserves on active duty in support of the 
          reserves.
Sec.413.End strengths for military technicians (dual status).
Sec.414.Increase in number of members in certain grades authorized to 
          serve on active duty in support of the reserves.
Sec.415.Consolidation of strength authorizations for active status Naval 
          Reserve flag officers of the Navy Medical Department Staff 
          Corps.

               Subtitle C--Authorization of Appropriations

Sec.421.Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec.501.Codification of eligibility of retired officers and former 
          officers for consideration by special selection boards.
Sec.502.Involuntary separation pay denied for officer discharged for 
          failure of selection for promotion requested by the officer.
Sec.503.Streamlined selective retention process for regular officers.
Sec.504.Permanent applicability of limitations on years of active naval 
          service of Navy limited duty officers in grades of commander 
          and captain.
Sec.505.Tenure of Chief of the Air Force Nurse Corps.
Sec.506. Grade of Air Force Assistant Surgeon General for Dental 
          Services.
Sec.507.Review regarding allocation of Naval Reserve Officers' Training 
          Corps scholarships among participating colleges and 
          universities.

                  Subtitle B--Reserve Component Matters

Sec.511.Use of Reserves for emergencies involving weapons of mass 
          destruction.
Sec.512.Service required for retirement of National Guard officer in 
          higher grade.
Sec.513.Reduced time-in-grade requirement for reserve general and flag 
          officers involuntarily transferred from active status.
Sec.514.Active status service requirement for promotion consideration 
          for Army and Air Force reserve component brigadier generals.
Sec.515.Composition of selective early retirement boards for rear 
          admirals of the Naval Reserve and major generals of the Marine 
          Corps Reserve.
Sec.516.Authority for temporary waiver for certain Army Reserve officers 
          of baccalaureate degree requirement for promotion of reserve 
          officers.
Sec.517. Furnishing of burial flags for deceased members and former 
          members of the Selected Reserve.

               Subtitle C--Military Education and Training

Sec.521.Separate housing for male and female recruits during recruit 
          basic training.
Sec.522.After-hours privacy for recruits during basic training.
Sec.523.Sense of the House of Representatives relating to small unit 
          assignments by gender during recruit basic training.
Sec.524.Extension of reporting dates for Commission on Military Training 
          and Gender-Related Issues.
Sec.525.Improved oversight of innovative readiness training.

           Subtitle D--Decorations, Awards, and Commendations

Sec.531.Study of new decorations for injury or death in line of duty.
Sec.532.Waiver of time limitations for award of certain decorations to 
          certain persons.
Sec.533.Commendation and commemoration of the Navy and Marine Corps 
          personnel who served in the United States Navy Asiatic Fleet 
          from 1910-1942.
Sec.534.Appreciation for service during World War I and World War II by 
          members of the Navy assigned on board merchant ships as the 
          Naval Armed Guard Service.
Sec.535.Sense of Congress regarding the heroism, sacrifice, and service 
          of the military forces of South Vietnam, other nations, and 
          indigenous groups in connection with the United States Armed 
          Forces during the Vietnam conflict.
Sec.536.Sense of Congress regarding the heroism, sacrifice, and service 
          of former South Vietnamese commandos in connection with United 
          States Armed Forces during the Vietnam conflict.
Sec.537.Prohibition on members of Armed Forces entering correctional 
          facilities to present decorations to persons who have 
          committed serious violent felonies.

   Subtitle E--Administration of Agencies Responsible for Review and 
                     Correction of Military Records

Sec.541.Personnel freeze.
Sec.542.Professional staff.
Sec.543.Ex parte communications.
Sec.544.Timeliness standards.
Sec.545.Scope of correction of military records.

                           Subtitle F--Reports

Sec.551.Report on personnel retention.
Sec.552.Report on process for selection of members for service on 
          courts-martial.
Sec.553.Report on prisoners transferred from United States Disciplinary 
          Barracks, Fort Leavenworth, Kansas, to Federal Bureau of 
          Prisons.
Sec.554. Review and report regarding the distribution of National Guard 
          full-time support among the States.

                        Subtitle G--Other Matters

Sec.561.Two-year extension of certain force drawdown transition 
          authorities relating to personnel management and benefits.
Sec.562.Leave without pay for suspended academy cadets and midshipmen.
Sec.563.Continued eligibility under Voluntary Separation Incentive 
          program for members who involuntarily lose membership in a 
          reserve component.
Sec.564.Reinstatement of definition of financial institution in 
          authorities for reimbursement of defense personnel for 
          Government errors in direct deposit of pay.
Sec.565.Increase in maximum amount for College Fund program.
Sec.566.Central Identification Laboratory, Hawaii.
Sec.567.Military funeral honors for veterans.
Sec.568.Status in the Naval Reserve of cadets at the Merchant Marine 
          Academy.
Sec.569.Repeal of restriction on civilian employment of enlisted 
          members.
Sec.570.Transitional compensation for abused dependent children not 
          residing with the spouse or former spouse of a member 
          convicted of dependent abuse.
Sec.571.Pilot program for treating GED and home school diploma 
          recipients as high school graduates for determinations of 
          eligibility for enlistment in the Armed Forces.
Sec.572.Sense of Congress concerning New Parent Support Program and 
          military families.
Sec.573.Advancement of Benjamin O. Davis, Junior, to grade of general on 
          the retired list of the Air Force.
Sec.574.Sense of the House of Representatives concerning adherence by 
          civilians in military chain of command to the standard of 
          exemplary conduct required of commanding officers and others 
          in authority in the Armed Forces.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec.601.Increase in basic pay for fiscal year 1999.
Sec.602.Rate of pay for cadets and midshipmen at the service academies.
Sec.603.Basic allowance for housing outside the United States.
Sec.604.Basic allowance for subsistence for reserves.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec.611.Three-month extension of certain bonuses and special pay 
          authorities for reserve forces.
Sec.612.Three-month extension of certain bonuses and special pay 
          authorities for nurse officer candidates, registered nurses, 
          and nurse anesthetists.
Sec.613.Three-month extension of authorities relating to payment of 
          other bonuses and special pays.
Sec.614.Increased hazardous duty pay for aerial flight crewmembers in 
          certain pay grades.
Sec.615.Aviation career incentive pay and aviation officer retention 
          bonus.
Sec.616.Diving duty special pay for divers having diving duty as a 
          nonprimary duty.
Sec.617.Hardship duty pay.
Sec.618.Selective reenlistment bonus eligibility for Reserve members 
          performing active Guard and Reserve duty.
Sec.619.Repeal of 10 percent limitation on certain selective 
          reenlistment bonuses.
Sec.620.Increase in maximum amount authorized for Army enlistment bonus.
Sec.621.Equitable treatment of Reserves eligible for special pay for 
          duty subject to hostile fire or imminent danger.
Sec.622.Retention incentives initiative for critically short military 
          occupational specialties.

            Subtitle C--Travel and Transportation Allowances

Sec.631.Payments for movements of household goods arranged by members.
Sec.632.Exception to maximum weight allowance for baggage and household 
          effects.
Sec.633.Travel and transportation allowances for travel performed by 
          members in connection with rest and recuperative leave from 
          overseas stations.
Sec.634.Storage of baggage of certain dependents.
Sec.635.Commercial travel of Reserves at Federal supply schedule rates 
          for attendance at inactive-duty training assemblies.

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

Sec.641.Paid-up coverage under Survivor Benefit Plan.
Sec.642.Survivor Benefit Plan open enrollment period.
Sec.643.Effective date of court-required former spouse Survivor Benefit 
          Plan coverage effectuated through elections and deemed 
          elections.
Sec.644.Presentation of United States flag to members of the Armed 
          Forces upon retirement.
Sec.645.Recovery, care, and disposition of remains of medically retired 
          member who dies during hospitalization that begins while on 
          active duty.
Sec.646.Revision to computation of retired pay for certain members.
Sec.647.Elimination of backlog of unpaid retired pay.

                        Subtitle E--Other Matters

Sec.651.Definition of possessions of the United States for pay and 
          allowances purposes.
Sec.652.Accounting of advance payments.
Sec.653.Reimbursement of rental vehicle costs when motor vehicle 
          transported at Government expense is late.
Sec.654.Education loan repayment program for health professions officers 
          serving in Selected Reserve.
Sec.655.Federal employees' compensation coverage for students 
          participating in certain officer candidate programs.
Sec.656.Relationship of enlistment bonuses to eligibility to receive 
          Army college fund supplement under Montgomery GI Bill 
          Educational Assistance Program.
Sec.657.Authority to provide financial assistance for education of 
          certain defense dependents overseas.
Sec.658.Clarifications concerning payments to certain persons captured 
          or interned by North Vietnam.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec.701.Dependents' dental program.
Sec.702.Expansion of dependent eligibility under retiree dental program.
Sec.703.Plan for redesign of military pharmacy system.
Sec.704.Transitional authority to provide continued health care coverage 
          for certain persons unaware of loss of CHAMPUS eligibility.

                       Subtitle B--TRICARE Program

Sec.711.Payment of claims for provision of health care under the TRICARE 
          program for which a third party may be liable.
Sec.712.TRICARE prime automatic enrollments and retiree payment options.
Sec.713.System for tracking data and measuring performance in meeting 
          TRICARE access standards.
Sec.714.Establishment of appeals process for claimcheck denials.
Sec.715.Reviews relating to accessibility of health care under TRICARE.

  Subtitle C--Health Care Services for Medicare-Eligible Department of 
                          Defense Beneficiaries

Sec.721.Demonstration project to include certain covered beneficiaries 
          within Federal Employees Health Benefits Program.
Sec.722.TRICARE as Supplement to Medicare demonstration.
Sec.723.Implementation of redesign of pharmacy system.
Sec.724.Comprehensive evaluation of implementation of demonstration 
          projects and TRICARE pharmacy redesign.

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

Sec.731.Process for waiving informed consent requirement for 
          administration of certain drugs to members of Armed Forces for 
          purposes of a particular military operation.
Sec.732.Health benefits for abused dependents of members of the Armed 
          Forces.
Sec.733.Provision of health care at military entrance processing 
          stations and elsewhere outside medical treatment facilities.
Sec.734.Professional qualifications of physicians providing military 
          health care.

                        Subtitle E--Other Matters

Sec.741.Enhanced Department of Defense Organ and Tissue Donor program.
Sec.742.Authorization to establish a Level 1 Trauma Training Center.
Sec.743.Authority to establish center for study of post-deployment 
          health concerns of members of the Armed Forces.
Sec.744.Report on implementation of enrollment-based capitation for 
          funding for military medical treatment facilities.
Sec.745.Joint Department of Defense and Department of Veterans Affairs 
          reports relating to interdepartmental cooperation in the 
          delivery of medical care.
Sec.746.Report on research and surveillance activities regarding Lyme 
          disease and other tick-borne diseases.

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

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

Sec.801.Limitation on use of price preference upon achievement of 
          contract goal for small and disadvantaged businesses.
Sec.802.Distribution of assistance under the Procurement Technical 
          Assistance Cooperative Agreement Program.
Sec.803.Defense commercial pricing management improvement.
Sec.804.Modification of senior executives covered by limitation on 
          allowability of compensation for certain contractor personnel.
Sec.805.Separate determinations of exceptional waivers of truth in 
          negotiation requirements for prime contracts and subcontracts.
Sec.806.Procurement of conventional ammunition.
Sec.807.Para-aramid fibers and yarns.
Sec.808.Clarification of responsibility for submission of information on 
          prices previously charged for property or services offered.
Sec.809.Amendments and study relating to procurement from firms in 
          industrial base for production of small arms.

                        Subtitle B--Other Matters

Sec.811.Eligibility of involuntarily downgraded employee for membership 
          in an acquisition corps.
Sec.812.Time for submission of annual report relating to Buy American 
          Act.
Sec.813.Procurement of travel services for official and unofficial 
          travel under one contract.
Sec.814.Department of Defense purchases through other agencies.
Sec.815.Supervision of defense acquisition university structure by Under 
          Secretary of Defense for Acquisition and Technology.
Sec.816.Pilot programs for testing program manager performance of 
          product support oversight responsibilities for life cycle of 
          acquisition programs.
Sec.817.Scope of protection of certain information from disclosure.
Sec.818.Plan for rapid transition from completion of small business 
          innovation research into defense acquisition programs.
Sec.819.Five-year authority for Secretary of the Navy to exchange 
          certain items.
Sec.820.Permanent authority for use of major range and test facility 
          installations by commercial entities.
Sec.821.Inventory exchange authorized for certain fuel delivery 
          contract.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

       Subtitle A--Department of Defense Officers and Organization

Sec.901.Reduction in number of Assistant Secretary of Defense positions.
Sec.902.Repeal of statutory requirement for position of Assistant 
          Secretary of Defense for Command, Control, Communications, and 
          Intelligence.
Sec.903.Independent task force on transformation and Department of 
          Defense organization.
Sec.904.Authority to expand the National Defense University.
Sec.905.Center for Hemispheric Defense Studies.
Sec.906.Restructuring of administration of Fisher Houses.
Sec.907.Management reform for research, development, test, and 
          evaluation activities.

         Subtitle B--Department of Defense Financial Management

Sec.911.Improved accounting for defense contract services.
Sec.912.Report on Department of Defense financial management improvement 
          plan.
Sec.913.Study of feasibility of performance of Department of Defense 
          finance and accounting functions by private sector sources or 
          other Federal sources.
Sec.914.Limitation on reorganization and consolidation of operating 
          locations of the Defense Finance and Accounting Service.
Sec.915.Annual report on resources allocated to support and mission 
          activities.

              Subtitle C--Joint Warfighting Experimentation

Sec.921.Findings concerning joint warfighting experimentation.
Sec.922.Sense of Congress concerning joint warfighting experimentation.
Sec.923.Reports on joint warfighting experimentation.

                        Subtitle D--Other Matters

Sec.931.Further reductions in defense acquisition and support workforce.
Sec.932.Limitation on operation and support funds for the Office of the 
          Secretary of Defense.
Sec.933.Clarification and simplification of responsibilities of 
          Inspectors General regarding whistleblower protections.
Sec.934.Repeal of requirement relating to assignment of tactical airlift 
          mission to reserve components.
Sec.935.Consultation with Marine Corps on major decisions directly 
          concerning Marine Corps aviation.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec.1001.Transfer authority.
Sec.1002.Incorporation of classified annex.
Sec.1003.Authorization of prior emergency supplemental appropriations 
          for fiscal year 1998.
Sec.1004.Authorization of appropriations for Bosnia peacekeeping 
          operations for fiscal year 1999.
Sec.1005.Partnership for Peace Information Management System.
Sec.1006.United States contribution to NATO common-funded budgets in 
          fiscal year 1999.
Sec.1007.Liquidity of working-capital funds.
Sec.1008.Termination of authority to manage working-capital funds and 
          certain activities through the Defense Business Operations 
          Fund.
Sec.1009.Clarification of authority to retain recovered costs of 
          disposals in working-capital funds.
Sec.1010.Crediting of amounts recovered from third parties for loss or 
          damage to personal property shipped or stored at Government 
          expense.

                 Subtitle B--Naval Vessels and Shipyards

Sec.1011.Revision to requirement for continued listing of two Iowa-class 
          battleships on the Naval Vessel Register.
Sec.1012.Transfer of U.S.S. NEW JERSEY.
Sec.1013.Homeporting of the U.S.S. IOWA in San Francisco, California.
Sec.1014.Sense of Congress concerning the naming of an LPD-17 vessel.
Sec.1015.Reports on naval surface fire-support capabilities.
Sec.1016.Long-term charter of three vessels in support of submarine 
          rescue, escort, and towing.
Sec.1017.Transfer of obsolete Army tugboat.

 Subtitle C--Counter-Drug Activities and Other Assistance for Civilian 
                             Law Enforcement

Sec.1021.Department of Defense support to other agencies for counter-
          drug activities.
Sec.1022.Department of Defense support of National Guard drug 
          interdiction and counter-drug activities.
Sec.1023.Department of Defense counter-drug activities in transit zone.

        Subtitle D--Miscellaneous Report Requirements and Repeals

Sec.1031.Repeal of unnecessary and obsolete reporting provisions.
Sec.1032.Report regarding use of tagging system to identify hydrocarbon 
          fuels used by Department of Defense.

                Subtitle E--Armed Forces Retirement Home

Sec.1041.Appointment of Director and Deputy Director of the Naval Home.
Sec.1042.Revision of inspection requirements relating to Armed Forces 
          Retirement Home.
Sec.1043.Clarification of land conveyance authority, Armed Forces 
          Retirement Home.

            Subtitle F--Matters Relating to Defense Property

Sec.1051.Plan for improved demilitarization of excess and surplus 
          defense property.
Sec.1052.Transfer of F-4 Phantom II aircraft to foundation.

             Subtitle G--Other Department of Defense Matters

Sec.1061.Pilot program on alternative notice of receipt of legal process 
          for garnishment of Federal pay for child support and alimony.
Sec.1062.Training of special operations forces with friendly foreign 
          forces.
Sec.1063.Research grants competitively awarded to service academies.
Sec.1064.Department of Defense use of frequency spectrum.
Sec.1065.Department of Defense aviation accident investigations.
Sec.1066.Investigation of actions relating to 174th Fighter Wing of New 
          York Air National Guard.
Sec.1067.Program to commemorate 50th anniversary of the Korean War.
Sec.1068.Designation of America's National Maritime Museum.
Sec.1069.Technical and clerical amendments.

                        Subtitle H--Other Matters

Sec.1071.Act constituting Presidential approval of vessel war risk 
          insurance requested by the Secretary of Defense.
Sec.1072.Extension and reauthorization of Defense Production Act of 
          1950.
Sec.1073.Requirement that burial flags furnished by the Secretary of 
          Veterans Affairs be wholly produced in the United States.
Sec.1074.Sense of Congress concerning tax treatment of principal 
          residence of members of Armed Forces while away from home on 
          active duty.
Sec.1075.Clarification of State authority to tax compensation paid to 
          certain employees.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec.1101.Defense Advanced Research Projects Agency experimental 
          personnel management program for technical personnel.
Sec.1102.Maximum pay rate comparability for faculty members of the 
          United States Air Force Institute of Technology.
Sec.1103.Authority for release to Coast Guard of drug test results of 
          civil service mariners of the Military Sealift Command.
Sec.1104.Limitations on back pay awards.
Sec.1105.Restoration of annual leave accumulated by civilian employees 
          at installations in the Republic of Panama to be closed 
          pursuant to the Panama Canal Treaty of 1977.
Sec.1106.Repeal of program providing preference for employment of 
          military spouses in military child care facilities.
Sec.1107.Observance of certain holidays at duty posts outside the United 
          States.
Sec.1108.Continuation of random drug testing program for certain 
          Department of Defense employees.
Sec.1109.Department of Defense employee voluntary early retirement 
          authority.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec.1201.Findings.
Sec.1202.Sense of Congress.
Sec.1203.Presidential reports.
Sec.1204.Secretary of Defense reports on operations in Bosnia and 
          Herzegovina.
Sec.1205.Definitions.

         Subtitle B--Matters Relating to Contingency Operations

Sec.1211.Report on involvement of Armed Forces in contingency and 
          ongoing operations.
Sec.1212.Submission of report on objectives of a contingency operation 
          with requests for funding for the operation.

             Subtitle C--Matters Relating to NATO and Europe

Sec.1221.Limitation on United States share of costs of NATO expansion.
Sec.1222.Report on military capabilities of an expanded NATO alliance.
Sec.1223.Reports on the development of the European security and defense 
          identity.

                        Subtitle D--Other Matters

Sec.1231.Limitation on assignment of United States forces for certain 
          United Nations purposes.
Sec.1232.Prohibition on restriction of Armed Forces under Kyoto Protocol 
          to the United Nations Framework Convention on Climate Change.
Sec.1233.Defense burdensharing.
Sec.1234.Transfer of excess UH-1 Huey and AH-1 Cobra helicopters to 
          foreign countries.
Sec.1235.Transfers of naval vessels to certain foreign countries.
Sec.1236.Repeal of landmine moratorium.
Sec.1237.Application of authorities under the International Emergency 
          Economic Powers Act to Communist Chinese military companies.

   TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec.1301.Specification of Cooperative Threat Reduction Programs and 
          funds.
Sec.1302.Funding allocations.
Sec.1303.Prohibition on use of funds for specified purposes.
Sec.1304.Limitation on use of funds for chemical weapons destruction 
          activities in Russia.
Sec.1305.Limitation on use of funds for biological weapons proliferation 
          prevention activities in Russia.
Sec.1306.Cooperative counter proliferation program.
Sec.1307.Requirement to submit summary of amounts requested by project 
          category.
Sec.1308.Report on biological weapons programs in Russia.
Sec.1309.Report on individuals with expertise in former Soviet weapons 
          of mass destruction programs.

  TITLE XIV--DOMESTIC PREPAREDNESS FOR DEFENSE AGAINST WEAPONS OF MASS 
                               DESTRUCTION

Sec.1401.Short title.
Sec.1402.Domestic preparedness for response to threats of terrorist use 
          of weapons of mass destruction.
Sec.1403.Report on domestic emergency preparedness.
Sec.1404.Threat and risk assessments.
Sec.1405.Advisory panel to assess domestic response capabilities for 
          terrorism involving weapons of mass destruction.

    TITLE XV--MATTERS RELATING TO ARMS CONTROL, EXPORT CONTROLS, AND 
                          COUNTERPROLIFERATION

                    Subtitle A--Arms Control Matters

Sec.1501.One-year extension of limitation on retirement or dismantlement 
          of strategic nuclear delivery systems.
Sec.1502.Transmission of executive branch reports providing Congress 
          with classified summaries of arms control developments.
Sec.1503.Report on adequacy of emergency communications capabilities 
          between United States and Russia.
Sec.1504.Russian nonstrategic nuclear weapons.

                  Subtitle B--Satellite Export Controls

Sec.1511.Sense of Congress.
Sec.1512.Certification of exports of missile equipment or technology to 
          China.
Sec.1513.Satellite controls under the United States Munitions List.
Sec.1514.National security controls on satellite export licensing.
Sec.1515.Report on export of satellites for launch by People's Republic 
          of China.
Sec.1516.Related items defined.

                Subtitle C--Other Export Control Matters

Sec.1521.Authority for export control activities of the Department of 
          Defense.
Sec.1522.Release of export information by Department of Commerce to 
          other agencies for purpose of national security assessment.
Sec.1523.Nuclear export reporting requirement.
Sec.1524.Execution of objection authority within the Department of 
          Defense.

                Subtitle D--Counterproliferation Matters

Sec.1531.One-year extension of counterproliferation authorities for 
          support of United Nations Special Commission on Iraq.
Sec.1532.Sense of Congress on nuclear tests in South Asia.
Sec.1533.Report on requirements for response to increased missile threat 
          in Asia-Pacific region.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec.2001.Short title.

                             TITLE XXI--ARMY

Sec.2101.Authorized Army construction and land acquisition projects.
Sec.2102.Family housing.
Sec.2103.Improvements to military family housing units.
Sec.2104.Authorization of appropriations, Army.
Sec.2105.Modification of authority to carry out fiscal year 1998 
          projects.

                            TITLE XXII--NAVY

Sec.2201.Authorized Navy construction and land acquisition projects.
Sec.2202.Family housing.
Sec.2203.Improvements to military family housing units.
Sec.2204.Authorization of appropriations, Navy.
Sec.2205.Authorization to accept road construction project, Marine Corps 
          Base, Camp Lejeune, North Carolina.

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

Sec.2401.Authorized Defense Agencies construction and land acquisition 
          projects.
Sec.2402.Improvements to military family housing units.
Sec.2403.Energy conservation projects.
Sec.2404.Authorization of appropriations, Defense Agencies.
Sec.2405.Repeal of fiscal year 1997 authorization of appropriations for 
          certain military housing improvement program.
Sec.2406.Modification of authority to carry out certain fiscal year 1995 
          projects.
Sec.2407.Modification of authority to carry out fiscal year 1990 
          project.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

Sec.2501.Authorized NATO construction and land acquisition projects.
Sec.2502.Authorization of appropriations, NATO.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec.2601.Authorized Guard and Reserve construction and land acquisition 
          projects.
Sec.2602.Modification of authority to carry out fiscal year 1998 
          project.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec.2701.Expiration of authorizations and amounts required to be 
          specified by law.
Sec.2702.Extension of authorizations of certain fiscal year 1996 
          projects.
Sec.2703.Extension of authorization of fiscal year 1995 project.
Sec.2704.Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec.2801.Architectural and engineering services and construction design.
Sec.2802.Expansion of Army overseas family housing lease authority.
Sec.2803.Definition of ancillary supporting facilities under alternative 
          authority for acquisition and improvement of military housing.
Sec.2804.Purchase of build-to-lease family housing at Eielson Air Force 
          Base, Alaska.
Sec.2805.Report relating to improvement of housing for unaccompanied 
          members.

         Subtitle B--Real Property and Facilities Administration

Sec.2811.Exceptions to real property transaction reporting requirements 
          for war and certain emergency and other operations.
Sec.2812.Restoration of Department of Defense lands used by another 
          Federal agency.
Sec.2813.Outdoor recreation development on military installations for 
          disabled veterans, military dependents with disabilities, and 
          other persons with disabilities.
Sec.2814.Report on leasing and other alternative uses of nonexcess 
          military property.
Sec.2815.Report on implementation of utility system conveyance 
          authority.

            Subtitle C--Defense Base Closure and Realignment

Sec.2821.Applicability of property disposal laws to leases at 
          installations to be closed or realigned under base closure 
          laws.
Sec.2822.Elimination of waiver authority regarding prohibition against 
          certain conveyances of property at Naval Station, Long Beach, 
          California.
Sec.2823.Payment of stipulated penalties assessed under CERCLA in 
          connection with McClellan Air Force Base, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec.2831.Modification of land conveyance, Army Reserve Center, 
          Youngstown, Ohio.
Sec.2832.Release of interests in real property, former Kennebec Arsenal, 
          Augusta, Maine.
Sec.2833.Release, waiver, or conveyance of interests in real property, 
          former Redstone Army Arsenal property, Alabama.
Sec.2834.Conveyance of utility systems, Lone Star Army Ammunition Plant, 
          Texas.
Sec.2835.Conveyance of water rights and related interests, Rocky 
          Mountain Arsenal, Colorado, for purposes of acquisition of 
          perpetual contracts for water.
Sec.2836.Land conveyance, Army Reserve Center, Massena, New York.
Sec.2837.Land conveyance, Army Reserve Center, Ogdensburg, New York.
Sec.2838.Land conveyance, Army Reserve Center, Jamestown, Ohio.
Sec.2839.Land conveyance, Army Reserve Center, Peoria, Illinois.
Sec.2840.Land conveyance, Army Reserve Center, Bridgton, Maine.
Sec.2841.Land conveyance, Fort Sheridan, Illinois.
Sec.2842.Land conveyance, Skaneateles, New York.
Sec.2843.Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
          Indiana.
Sec.2844.Land conveyance, Volunteer Army Ammunition Plant, Chattanooga, 
          Tennessee.
Sec.2845.Land conveyance, Stewart Amy Sub-Post, New Windsor, New York.

                        Part II--Navy Conveyances

Sec.2851.Conveyance of easement, Marine Corps Base, Camp Pendleton, 
          California.
Sec.2852.Land exchange, Naval Reserve Readiness Center, Portland, Maine.
Sec.2853.Land conveyance, Naval and Marine Corps Reserve facility, 
          Youngstown, Ohio.
Sec.2854.Land conveyance, Naval Air Reserve Center, Minneapolis, 
          Minnesota.

                     Part III--Air Force Conveyances

Sec.2861.Modification of land conveyance, Eglin Air Force Base, Florida.
Sec.2862.Modification of land conveyance, Finley Air Force Station, 
          North Dakota.
Sec.2863.Land conveyance, Lake Charles Air Force Station, Louisiana.
Sec.2864.Land conveyance, Air Force Housing Facility, La Junta, 
          Colorado.

                        Subtitle E--Other Matters

Sec.2871.Modification of authority relating to Department of Defense 
          Laboratory Revitalization Demonstration Program.
Sec.2872.Repeal of prohibition on joint use of Gray Army Airfield, Fort 
          Hood, Texas, with civil aviation.
Sec.2873.Modification of demonstration project for purchase of fire, 
          security, police, public works, and utility services from 
          local government agencies.
Sec.2874.Designation of building containing Navy and Marine Corps 
          Reserve Center, Augusta, Georgia.

               TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL

Sec.2901.Short title.
Sec.2902.Withdrawal and reservation.
Sec.2903.Map and legal description.
Sec.2904.Agency agreement.
Sec.2905.Right-of-way grants.
Sec.2906.Indian sacred sites.
Sec.2907.Actions concerning ranching operations in withdrawn area.
Sec.2908.Management of withdrawn and reserved lands.
Sec.2909.Integrated natural resource management plan.
Sec.2910.Memorandum of understanding.
Sec.2911.Maintenance of roads.
Sec.2912.Management of withdrawn and acquired mineral resources.
Sec.2913.Hunting, fishing, and trapping.
Sec.2914.Water rights.
Sec.2915.Duration of withdrawal.
Sec.2916.Environmental remediation of relinquished withdrawn lands or 
          upon termination of withdrawal.
Sec.2917.Delegation of authority.
Sec.2918.Hold harmless.
Sec.2919.Authorization of appropriations.

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec.3101.Weapons activities.
Sec.3102.Defense environmental restoration and waste management.
Sec.3103.Other defense activities.
Sec.3104.Defense nuclear waste disposal.
Sec.3105.Defense environmental management privatization.

                Subtitle B--Recurring General Provisions

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

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec.3131.Permanent extension of funding prohibition relating to 
          international cooperative stockpile stewardship.
Sec.3132.Support of ballistic missile defense activities of the 
          Department of Defense.
Sec.3133.Nonproliferation activities.
Sec.3134.Licensing of certain mixed oxide fuel fabrication and 
          irradiation facilities.
Sec.3135.Continuation of processing, treatment, and disposition of 
          legacy nuclear materials.
Sec.3136.Authority for Department of Energy federally funded research 
          and development centers to participate in merit-based 
          technology research and development programs.
Sec.3137.Activities of Department of Energy facilities.
Sec.3138.Hanford overhead and service center costs.
Sec.3139.Hanford waste tank cleanup program reforms.
Sec.3140.Hanford Health Information Network.
Sec.3141.Hazardous materials management and emergency response training 
          program.
Sec.3142.Support for public education in the vicinity of Los Alamos 
          National Laboratory, New Mexico.
Sec.3143.Relocation of National Atomic Museum, Albuquerque, New Mexico.
Sec.3144.Tritium production.

                        Subtitle D--Other Matters

Sec.3151.Study and plan relating to worker and community transition 
          assistance.
Sec.3152.Extension of authority for appointment of certain scientific, 
          engineering, and technical personnel.
Sec.3153.Requirement for plan to modify employment system used by 
          Department of Energy in defense environmental management 
          programs.
Sec.3154.Department of Energy nuclear materials couriers.
Sec.3155.Increase in maximum rate of pay for scientific, engineering, 
          and technical personnel responsible for safety at defense 
          nuclear facilities.
Sec.3156.Extension of authority of Department of Energy to pay voluntary 
          separation incentive payments.
Sec.3157.Repeal of fiscal year 1998 statement of policy on stockpile 
          stewardship program.
Sec.3158.Report on stockpile stewardship criteria.
Sec.3159.Panel to assess the reliability, safety, and security of the 
          United States nuclear stockpile.
Sec.3160.International cooperative information exchange.
Sec.3161.Protection against inadvertent release of restricted data and 
          formerly restricted data.
Sec.3162.Sense of Congress regarding treatment of Formerly Utilized 
          Sites Remedial Action Program under a nondefense discretionary 
          budget function.
Sec.3163.Reports relating to tritium production.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec.3201.Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec.3301.Definitions.
Sec.3302.Authorized uses of stockpile funds.
Sec.3303.Authority to dispose of certain materials in National Defense 
          Stockpile.
Sec.3304.Use of stockpile funds for certain environmental remediation, 
          restoration, waste management, and compliance activities.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec.3401.Definitions.
Sec.3402.Authorization of appropriations.
Sec.3403.Disposal of Naval Petroleum Reserve Numbered 2.
Sec.3404.Disposal of Naval Petroleum Reserve Numbered 3.
Sec.3405.Disposal of Oil Shale Reserve Numbered 2.
Sec.3406.Administration.

                   TITLE XXXV--PANAMA CANAL COMMISSION

Sec.3501.Short title; references to Panama Canal Act of 1979.
Sec.3502.Authorization of expenditures.
Sec.3503.Purchase of vehicles.
Sec.3504.Expenditures only in accordance with treaties.
Sec.3505.Donations to the Commission.
Sec.3506.Agreements for United States to provide post-transfer 
          administrative services for certain employee benefits.
Sec.3507.Sunset of United States overseas benefits just before transfer.
Sec.3508.Central examining office.
Sec.3509.Liability for vessel accidents.
Sec.3510.Panama Canal Board of Contract Appeals.
Sec.3511.Restatement of requirement that Secretary of Defense designee 
          on Panama Canal Commission supervisory board be a current 
          officer of the Department of Defense.
Sec.3512.Technical amendments.

                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec.3601.Authorization of appropriations for fiscal year 1999.
Sec.3602.Authority to convey National Defense Reserve Fleet vessel.
Sec.3603.Authority to convey certain National Defense Reserve Fleet 
          vessels.
Sec.3604.Clearinghouse for maritime information.
Sec.3605.Conveyance of NDRF vessel ex-USS LORAIN COUNTY.

  TITLE XXXVII--INCREASED MONITORING OF PRODUCTS MADE WITH FORCED LABOR

Sec.3701.Authorization for additional customs personnel to monitor the 
          importation of products made with forced labor.
Sec.3702.Reporting requirement on forced labor products destined for the 
          United States market.
Sec.3703.Renegotiating memoranda of understanding on forced labor.

              TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS

Sec.3801.Short title.
Sec.3802.Definitions.
Sec.3803.Re-establishment of initiative on automotive parts sales to 
          Japan.
Sec.3804.Establishment of Special Advisory Committee on automotive parts 
          sales in Japanese and other Asian markets.
Sec.3805.Expiration date.

                      TITLE XXXIX--RADIO FREE ASIA

Sec.3901.Short title.
Sec.3902.Authorization of appropriations for increased funding for Radio 
          Free Asia and Voice of America broadcasting to China.
Sec.3903.Reporting requirement.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

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

               Subtitle A--Authorization of Appropriations

Sec.101.Army.
Sec.102.Navy and Marine Corps.
Sec.103.Air Force.
Sec.104.Defense-wide activities.
Sec.105.Reserve components.
Sec.106.Defense Inspector General.
Sec.107.Chemical demilitarization program.
Sec.108.Defense health programs.
Sec.109.Defense Export Loan Guarantee program.

                        Subtitle B--Army Programs

Sec.111.Multiyear procurement authority for Longbow Hellfire Missile 
          program.
Sec.112.Conditions for award of a second-source procurement contract for 
          the Family of Medium Tactical Vehicles.
Sec.113.Armored system modernization.
Sec.114.Reactive armor tiles.
Sec.115.Extension of authority to carry out Armament Retooling and 
          Manufacturing Support Initiative.

                        Subtitle C--Navy Programs

Sec.121.CVN-77 nuclear aircraft carrier program.
Sec.122.Increase in amount authorized to be excluded from cost 
          limitation for Seawolf submarine program.
Sec.123.Multiyear procurement authority for the Department of the Navy.
Sec.124.Annual GAO review of F/A-18E/F aircraft program.

                     Subtitle D--Air Force Programs

Sec.131.F-22 aircraft program.
Sec.132.C-130J aircraft program.

                        Subtitle E--Other Matters

Sec.141.Chemical stockpile emergency preparedness program.
Sec.142.Alternative technologies for destruction of assembled chemical 
          weapons.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Army as follows:
        (1) For aircraft, $1,396,047,000.
        (2) For missiles, $1,228,229,000.
        (3) For weapons and tracked combat vehicles, $1,507,551,000.
        (4) For ammunition, $1,016,255,000.
        (5) For other procurement, $3,344,932,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 1999 for procurement for the Navy as follows:
        (1) For aircraft, $7,642,200,000.
        (2) For weapons, including missiles and torpedoes, 
    $1,223,903,000.
        (3) For shipbuilding and conversion, $6,033,480,000.
        (4) For other procurement, $4,042,975,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1999 for procurement for the Marine Corps in the amount 
of $881,896,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for procurement of ammunition for the Navy and the 
Marine Corps in the amount of $463,339,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Air Force as follows:
        (1) For aircraft, $8,350,617,000.
        (2) For missiles, $2,210,640,000.
        (3) For ammunition, $383,161,000.
        (4) For other procurement, $6,950,372,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for Defense-wide procurement in the amount of $1,954,828,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement of aircraft, vehicles, communications equipment, and 
other equipment for the reserve components of the Armed Forces as 
follows:
        (1) For the Army National Guard, $10,000,000.
        (2) For the Air National Guard, $10,000,000.
        (3) For the Army Reserve, $10,000,000.
        (4) For the Naval Reserve, $10,000,000.
        (5) For the Air Force Reserve, $10,000,000.
        (6) For the Marine Corps Reserve, $10,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Inspector General of the Department of Defense 
in the amount of $1,300,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1999 
the amount of $803,000,000 for--
        (1) the destruction of lethal chemical agents and munitions in 
    accordance with section 1412 of the Department of Defense 
    Authorization Act, 1986 (50 U.S.C. 1521); and
        (2) the destruction of chemical warfare materiel of the United 
    States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $402,387,000.

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the Department of Defense for carrying out the Defense Export Loan 
Guarantee Program under section 2540 of title 10, United States Code, 
in the total amount of $1,250,000.

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR LONGBOW HELLFIRE MISSILE 
              PROGRAM.

    Beginning with the fiscal year 1999 program year, the Secretary of 
the Army may, in accordance with section 2306b of title 10, United 
States Code, enter into a multiyear procurement contract for 
procurement of the AGM-114 Longbow Hellfire missile.

SEC. 112. CONDITIONS FOR AWARD OF A SECOND-SOURCE PROCUREMENT CONTRACT 
              FOR THE FAMILY OF MEDIUM TACTICAL VEHICLES.

    The Secretary of the Army may award a second-source procurement 
contract for the production of the Family of Medium Tactical Vehicles 
only after the Secretary certifies in writing to the congressional 
defense committees--
        (1) that the total quantity of vehicles within the Family of 
    Medium Tactical Vehicles program that the Secretary will require to 
    be delivered (under all contracts) in any 12-month period will be 
    sufficient to enable the prime contractor to maintain a minimum 
    economic production level;
        (2) that the total cost to the Army of the procurements under 
    the prime and second-source contracts over the period of those 
    contracts will be the same as or lower than the amount that would 
    be the total cost of the procurements if only one such contract 
    were awarded; and
        (3) that the vehicles to be produced under those contracts will 
    be produced with common components that will be interchangeable 
    among similarly configured models.

SEC. 113. ARMORED SYSTEM MODERNIZATION.

    (a) Funding.--Of the funds appropriated pursuant to the 
authorization of appropriations in section 101(3) for M1 Abrams Tank 
Modifications--
        (1) $14,300,000 shall be obligated for procurements associated 
    with the M1A1D Applique Integration Program, of which no more than 
    $11,400,000 may be obligated before the end of the 30-day period 
    beginning on the date on which the Secretary of the Army submits 
    the report required under subsection (b); and
        (2) $6,000,000 shall be obligated to develop a M1A2 risk 
    reduction program.
    (b) Report.--(1) Not later than January 31, 1999, the Secretary of 
the Army shall submit to the congressional defense committees a report 
on Army armored system modernization programs. The report shall 
include--
        (A) an assessment of the current acquisition and fielding 
    strategy of the Army for the M1 Abrams Tank and M2A3 Bradley 
    Fighting Vehicle; and
        (B) a description and assessment of alternatives to that 
    strategy, including an assessment of an alternative fielding 
    strategy that provides for placing all of the armored vehicles 
    configured in the latest variant into one heavy corps.
    (2) The assessment of each alternative acquisition and fielding 
strategy under paragraph (1)(B) shall include the following:
        (A) The relative effects of that strategy on warfighting 
    capabilities in terms of operational effectiveness and training and 
    support efficiencies, taking into consideration the joint 
    warfighting context.
        (B) How that strategy would facilitate the transition to the 
    Future Scout and Cavalry System, the Future Combat System, or other 
    armored systems for the future force structure known as the Army 
    After Next.
        (C) How that strategy fits into the context of overall armored 
    system modernization through 2020.
        (D) Budgetary implications.
        (E) Implications for the national technology and industrial 
    base.
        (F) Innovative techniques and alternatives for maintaining M1A2 
    System Enhancement Program production.
    (3) The Secretary shall include in the report a draft of any 
legislation that may be required to execute a given alternative for 
M1A2 System Enhancement Program production.
    (c) GAO Evaluation.--The Comptroller General shall review the 
report of the Secretary of the Army under subsection (b) and, not later 
than 30 days after the date on which that report is submitted to the 
congressional defense committees, shall submit to those committees a 
report providing the Comptroller General's views on the conclusions of 
the Secretary of the Army set forth in that report.

SEC. 114. REACTIVE ARMOR TILES.

    (a) Limitation.--None of the funds authorized to be appropriated 
under section 101(3) or 102(b) may be obligated for the procurement of 
reactive armor tiles until 30 days after the date on which the 
Secretary of Defense submits to the congressional defense committees 
the matters specified in subsection (d).
    (b) Exception.--The limitation in subsection (a) does not apply to 
the obligation of any funds for the procurement of armor tiles for an 
armored vehicle for which the Secretary of the Army or, in the case of 
the Marine Corps, the Secretary of the Navy, had established a 
requirement for such tiles before the date of the enactment of this 
Act.
    (c) Study Required.--(1) The Secretary of Defense shall contract 
with an entity independent of the Department of Defense to conduct a 
study of the operational requirements of the Army and the Marine Corps 
for reactive armor tiles for armored vehicles and to submit to the 
Secretary a report on the results of the study.
    (2) The study shall include the following:
        (A) A detailed assessment of the operational requirements of 
    the Army and the Marine Corps for reactive armor tiles for each of 
    the armored vehicles presently in use, including the requirements 
    for each vehicle in its existing configurations and in 
    configurations proposed for the vehicle.
        (B) For each armored vehicle, an analysis of the costs and 
    benefits of the procurement and installation of the tiles, 
    including a comparison of those costs and benefits with the costs 
    and benefits of any existing upgrade program for the armored 
    vehicle.
    (3) The entity carrying out the study shall request the views of 
the Secretary of the Army and the Secretary of the Navy.
    (d) Submission to Congressional Committees.--Not later than April 
1, 1999, the Secretary of Defense shall submit to the congressional 
defense committees--
        (1) the report on the study submitted to the Secretary by the 
    entity carrying out the study;
        (2) the comments of the Secretary of the Army and the Secretary 
    of the Navy on the study; and
        (3) for each vehicle for which there is a requirement for 
    reactive armor tiles, as indicated by the results of the study, the 
    Secretary's recommendations as to the number of vehicles to be 
    equipped with such tiles.

SEC. 115. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT RETOOLING AND 
              MANUFACTURING SUPPORT INITIATIVE.

    Section 193(a) of the Armament Retooling and Manufacturing Support 
Act of 1992 (subtitle H of title I of Public Law 102-484; 10 U.S.C. 
2501 note) is amended by striking out ``During fiscal years 1993 
through 1998'' and inserting in lieu thereof ``During fiscal years 1993 
through 1999''.

                       Subtitle C--Navy Programs

SEC. 121. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

    Of the amount authorized to be appropriated under section 102(a)(3) 
for fiscal year 1999, $124,500,000 is available for the advance 
procurement and advance construction of components (including nuclear 
components) for the CVN-77 nuclear aircraft carrier program.

SEC. 122. INCREASE IN AMOUNT AUTHORIZED TO BE EXCLUDED FROM COST 
              LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

    Section 123(a) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1650) is amended by striking 
out ``$272,400,000'' and inserting in lieu thereof ``$557,600,000''.

SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR THE DEPARTMENT OF THE 
              NAVY.

    (a) Authority for Specified Navy Aircraft Programs.--Beginning with 
the fiscal year 1999 program year, the Secretary of the Navy may, in 
accordance with section 2306b of title 10, United States Code, enter 
into a multiyear procurement contract for procurement for the following 
programs:
        (1) The AV-8B aircraft program.
        (2) The T-45TS aircraft program.
        (3) The E-2C aircraft program.
    (b) Authority for Marine Corps Medium Tactical Vehicle 
Replacement.--Beginning with the fiscal year 1999 program year, the 
Secretary of the Navy may, in accordance with section 2306b of title 
10, United States Code, enter into a multiyear procurement contract to 
procure the Marine Corps Medium Tactical Vehicle Replacement.

SEC. 124. ANNUAL GAO REVIEW OF F/A-18E/F AIRCRAFT PROGRAM.

    (a) Review and Report Required.--Not later than June 15 of each 
year, the Comptroller General shall review the F/A-18E/F aircraft 
program and submit to Congress a report on the results of the review. 
The Comptroller General shall submit to Congress with each such report 
a certification as to whether the Comptroller General has had access to 
sufficient information to make informed judgments on the matters 
covered by the report.
    (b) Content of Report.--The report submitted on the program each 
year shall include the following:
        (1) The extent to which engineering and manufacturing 
    development and operational test and evaluation under the program 
    are meeting the goals established for engineering and manufacturing 
    development and operational test and evaluation under the program, 
    including the performance, cost, and schedule goals.
        (2) The status of modifications expected to have a significant 
    effect on the cost or performance of the F/A-18E/F aircraft.
    (c) Duration of Requirement.--No report is required under this 
section after the full-rate production contract is awarded under the 
program.
    (d) Requirement to Support Annual GAO Review.--The Secretary of 
Defense and the prime contractors under the F/A-18E/F program shall 
timely provide the Comptroller General with such information on the 
program, including information on program performance, as the 
Comptroller General considers necessary to carry out this section.

                     Subtitle D--Air Force Programs

SEC. 131. F-22 AIRCRAFT PROGRAM.

    (a) Limitation on Advance Procurement.--(1) Amounts available for 
the Department of Defense for any fiscal year for the F-22 aircraft 
program may not be obligated for advance procurement for the six Lot II 
F-22 aircraft before the applicable date under paragraph (2) or (3).
    (2) The applicable date for the purposes of paragraph (1) is the 
date on which the Secretary of Defense submits a certification under 
subsection (b)(1) unless the Secretary submits a report under 
subsection (b)(2).
    (3) If the Secretary submits a report under subsection (b)(2), the 
applicable date for the purposes of paragraph (1) is the later of--
        (A) the date on which the Secretary of Defense submits the 
    report; or
        (B) the date on which the Director of Operational Test and 
    Evaluation submits the certification required under subsection (c).
    (b) Certification by Secretary of Defense.--(1) Upon the completion 
of 433 hours of flight testing of F-22 flight test vehicles, the 
Secretary of Defense shall submit to the congressional defense 
committees a certification of the completion of that amount of flight 
testing. A certification is not required under this paragraph if the 
Secretary submits a report under paragraph (2).
    (2) If the Secretary determines that a number of hours of flight 
testing of F-22 flight test vehicles less than 433 hours provides the 
Defense Acquisition Board with a sufficient basis for deciding to 
proceed into production of Lot II F-22 aircraft, the Secretary may 
submit a report to the congressional defense committees upon the 
completion of that lesser number of hours of flight testing. A report 
under this paragraph shall contain the following:
        (A) A certification of the number of hours of flight testing 
    completed.
        (B) The reasons for the Secretary's determination that the 
    lesser number of hours is a sufficient basis for a decision by the 
    board.
        (C) A discussion of the extent to which the Secretary's 
    determination is consistent with each decision made by the Defense 
    Acquisition Board since January 1997 in the case of a major 
    aircraft acquisition program that the amount of flight testing 
    completed for the program was sufficient or not sufficient to 
    justify a decision to proceed into low-rate initial production.
        (D) A determination by the Secretary that it is more 
    financially advantageous for the Department to proceed into 
    production of Lot II F-22 aircraft than to delay production until 
    completion of 433 hours of flight testing, together with the 
    reasons for that determination.
    (c) Certification by the Director of Operational Test and 
Evaluation.--Upon the completion of 183 hours of the flight testing of 
F-22 flight test vehicles provided for in the test and evaluation 
master plan for the F-22 aircraft program, as in effect on October 1, 
1997, the Director of Operational Test and Evaluation shall submit to 
the congressional defense committees a certification of the completion 
of that flight testing.

SEC. 132. C-130J AIRCRAFT PROGRAM.

    Not later than March 1, 1999, the Secretary of Defense shall review 
the C-130J aircraft program and submit a report on the program to the 
congressional defense committees. The report shall include at least the 
following:
        (1) A discussion of the testing planned and the testing 
    conducted under the program, including--
            (A) the testing schedule intended at the beginning of the 
        program;
            (B) the testing schedule as of when the testing commenced; 
        and
            (C) an explanation of the time taken for the testing.
        (2) The cost and schedule of the program, including--
            (A) whether the Department has exercised or plans to 
        exercise contract options for fiscal years 1996, 1997, 1998, 
        and 1999;
            (B) when the Department expects the aircraft to be 
        delivered and how the delivery dates compare to the delivery 
        dates specified in the contract;
            (C) whether the Department expects to make any modification 
        to the negotiated contract price for these aircraft, and the 
        amount and basis for any such modification; and
            (D) whether the Department expects the reported delays and 
        overruns in the development of the aircraft to have any other 
        impact on the cost, schedule, or performance of the aircraft.

                       Subtitle E--Other Matters

SEC. 141. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

    (a) Assistance to State and Local Governments.--Section 1412 of the 
Department of Defense Authorization Act, 1986 (Public Law 99-145; 50 
U.S.C. 1521), is amended by adding at the end of subsection (c) the 
following:
    ``(4)(A) In coordination with the Secretary of the Army and in 
accordance with agreements between the Secretary of the Army and the 
Director of the Federal Emergency Management Agency, the Director shall 
carry out a program to provide assistance to State and local 
governments in developing capabilities to respond to emergencies 
involving risks to the public health or safety within their 
jurisdictions that are identified by the Secretary as being risks 
resulting from--
        ``(i) the storage of lethal chemical agents and munitions 
    referred to in subsection (a) at military installations in the 
    continental United States; or
        ``(ii) the destruction of such agents and munitions at 
    facilities referred to in paragraph (1)(B).
    ``(B) No assistance may be provided under this paragraph after the 
completion of the destruction of the United States' stockpile of lethal 
chemical agents and munitions.
    ``(C) Not later than December 15 of each year, the Director shall 
transmit a report to Congress on the activities carried out under this 
paragraph during the fiscal year preceding the fiscal year in which the 
report is submitted.''.
    (b) Program Funding.--Section 1412(f) of such Act (51 U.S.C. 
1521(f)) is amended--
        (1) by striking out ``Identification of Funds.--Funds'' and 
    inserting in lieu thereof ``Identification of Funds.--(1) Funds''; 
    and
        (2) by adding at the end the following new paragraph:
    ``(2) Amounts appropriated to the Secretary for the purpose of 
carrying out subsection (c)(4) shall be promptly made available to the 
Director of the Federal Emergency Management Agency.''.
    (c) Periodic Reports.--Section 1412(g) of such Act (50 U.S.C. 
1521(g)) is amended--
        (1) in paragraph (2)(B)--
            (A) by striking out ``and'' at the end of clause (v);
            (B) by striking out the period at the end of clause (vi) 
        and inserting in lieu thereof ``; and''; and
            (C) by adding at the end the following new clause:
            ``(vii) grants to State and local governments to assist 
        those governments in carrying out functions relating to 
        emergency preparedness and response in accordance with 
        subsection (c)(3).'';
        (2) by redesignating subparagraph (B) (as amended by paragraph 
    (1)) and subparagraph (C) of paragraph (2) as subparagraphs (C) and 
    (D), respectively; and
        (3) by inserting after paragraph (2)(A) the following new 
    subparagraph (B):
        ``(B) A site-by-site description of actions taken to assist 
    State and local governments (either directly or through the Federal 
    Emergency Management Agency) in carrying out functions relating to 
    emergency preparedness and response in accordance with subsection 
    (c)(3).''.

SEC. 142. ALTERNATIVE TECHNOLOGIES FOR DESTRUCTION OF ASSEMBLED 
              CHEMICAL WEAPONS.

    (a) Program Management.--The program manager for the Assembled 
Chemical Weapons Assessment shall continue to manage the development 
and testing (including demonstration and pilot-scale testing) of 
technologies for the destruction of lethal chemical munitions that are 
potential or demonstrated alternatives to the baseline incineration 
program. In performing such management, the program manager shall act 
independently of the program manager for Chemical Demilitarization and 
shall report to the Under Secretary of Defense for Acquisition and 
Technology.
    (b) Post-Demonstration Activities.--(1) The program manager for the 
Assembled Chemical Weapons Assessment may carry out those activities 
necessary to ensure that an alternative technology for the destruction 
of lethal chemical munitions can be implemented immediately after--
        (A) the technology has been demonstrated to be successful; and
        (B) the Under Secretary of Defense for Acquisition and 
    Technology has submitted a report on the demonstration to Congress 
    that includes a decision to proceed with the pilot-scale facility 
    phase for an alternative technology.
    (2) To prepare for the immediate implementation of any such 
technology, the program manager may, during fiscal years 1998 and 1999, 
take the following actions:
        (A) Establish program requirements.
        (B) Prepare procurement documentation.
        (C) Develop environmental documentation.
        (D) Identify and prepare to meet public outreach and public 
    participation requirements.
        (E) Prepare to award a contract for the design, construction, 
    and operation of a pilot facility for the technology to the 
    provider team for the technology not later than December 30, 1999.
    (c) Independent Evaluation.--The Under Secretary of Defense for 
Acquisition and Technology shall provide for an independent evaluation 
of the cost and schedule of the Assembled Chemical Weapons Assessment, 
which shall be performed and submitted to the Under Secretary not later 
than September 30, 1999. The evaluation shall be performed by a 
nongovernmental organization qualified to make such an evaluation.
    (d) Pilot Facilities Contracts.--(1) The Under Secretary of Defense 
for Acquisition and Technology shall determine whether to proceed with 
pilot-scale testing of a technology referred to in paragraph (2) in 
time to award a contract for the design, construction, and operation of 
a pilot facility for the technology to the provider team for the 
technology not later than December 30, 1999. If the Under Secretary 
determines to proceed with such testing, the Under Secretary shall 
(exercising the acquisition authority of the Secretary of Defense) so 
award a contract not later than such date.
    (2) Paragraph (1) applies to an alternative technology for the 
destruction of lethal chemical munitions, other than incineration, that 
the Under Secretary--
        (A) certifies in writing to Congress is--
            (i) as safe and cost effective for disposing of assembled 
        chemical munitions as is incineration of such munitions; and
            (ii) is capable of completing the destruction of such 
        munitions on or before the later of the date by which the 
        destruction of the munitions would be completed if incineration 
        were used or the deadline date for completing the destruction 
        of the munitions under the Chemical Weapons Convention; and
        (B) determines as satisfying the Federal and State 
    environmental and safety laws that are applicable to the use of the 
    technology and to the design, construction, and operation of a 
    pilot facility for use of the technology.
    (3) The Under Secretary shall consult with the National Research 
Council in making determinations and certifications for the purpose of 
paragraph (2).
    (4) In this subsection, the term ``Chemical Weapons Convention'' 
means the Convention on the Prohibition of Development, Production, 
Stockpiling and Use of Chemical Weapons and on their Destruction, 
opened for signature on January 13, 1993, together with related annexes 
and associated documents.
    (e) Plan for Pilot Program.--If the Secretary of Defense proceeds 
with a pilot program under section 152(f) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
214; 50 U.S.C. 1521(f)), the Secretary shall prepare a plan for the 
pilot program and shall submit to Congress a report on such plan 
(including information on the cost of, and schedule for, implementing 
the pilot program).
    (f) Funding.--(1) Of the amount authorized to be appropriated under 
section 107, funds shall be available for the program manager for the 
Assembled Chemical Weapons Assessment for the following:
        (A) Demonstrations of alternative technologies under the 
    Assembled Chemical Weapons Assessment.
        (B) Planning and preparation to proceed from demonstration of 
    an alternative technology immediately into the development of a 
    pilot-scale facility for the technology, including planning and 
    preparation for--
            (i) continued development of the technology leading to 
        deployment of the technology for use;
            (ii) satisfaction of requirements for environmental 
        permits;
            (iii) demonstration, testing, and evaluation;
            (iv) initiation of actions to design a pilot plant;
            (v) provision of support at the field office or depot level 
        for deployment of the technology for use; and
            (vi) educational outreach to the public to engender support 
        for the deployment.
        (C) The independent evaluation of cost and schedule required 
    under subsection (c).
    (2) Funds authorized to be appropriated under section 107(1) are 
authorized to be used for awarding contracts in accordance with 
subsection (d) and for taking any other action authorized in this 
section.
    (f) Assembled Chemical Weapons Assessment Defined.--In this 
section, the term ``Assembled Chemical Weapons Assessment'' means the 
pilot program carried out under section 8065 of the Department of 
Defense Appropriations Act, 1997 (section 101(b) of Public Law 104-208; 
110 Stat. 3009-101; 50 U.S.C. 1521 note).

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

               Subtitle A--Authorization of Appropriations

Sec.201.Authorization of appropriations.
Sec.202.Amount for basic and applied research.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec.211.Management responsibility for Navy mine countermeasures 
          programs.
Sec.212.Future aircraft carrier transition technologies.
Sec.213.Manufacturing technology program.
Sec.214.Sense of Congress on the Defense Science and Technology Program.
Sec.215.Next Generation Internet Program.
Sec.216.Crusader self-propelled artillery system program.
Sec.217.Airborne Laser Program.
Sec.218.Enhanced Global Positioning System program.

                  Subtitle C--Ballistic Missile Defense

Sec.231.Sense of Congress on National Missile Defense coverage.
Sec.232.Limitation on funding for the Medium Extended Air Defense 
          System.
Sec.233.Limitation on funding for Cooperative Ballistic Missile Defense 
          programs.
Sec.234.Sense of Congress with respect to Ballistic Missile Defense 
          cooperation with Russia.
Sec.235.Ballistic Missile Defense program elements.
Sec.236.Restructuring of acquisition strategy for Theater High-Altitude 
          Area Defense (THAAD) system.

                        Subtitle D--Other Matters

Sec.241.Extension of authority to carry out certain prototype projects.
Sec.242.NATO alliance ground surveillance concept definition.
Sec.243.NATO common-funded Civil Budget.
Sec.244.Executive agent for cooperative research program of the 
          Department of Defense and the Department of Veterans Affairs.
Sec.245.Review of pharmacological interventions for reversing brain 
          injury.
Sec.246.Pilot program for revitalizing the laboratories and test and 
          evaluation centers of the Department of Defense.
Sec.247.Chemical warfare defense.
Sec.248.Landmine alternatives.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
        (1) For the Army, $4,657,012,000.
        (2) For the Navy, $8,305,011,000.
        (3) For the Air Force, $13,918,728,000.
        (4) For Defense-wide activities, $9,127,187,000, of which--
            (A) $249,106,000 is authorized for the activities of the 
        Director, Test and Evaluation; and
            (B) $29,245,000 is authorized for the Director of 
        Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1999.--Of the amounts authorized to be appropriated 
by section 201, $4,179,905,000 shall be available for basic research 
and applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1 or 6.2.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. MANAGEMENT RESPONSIBILITY FOR NAVY MINE COUNTERMEASURES 
              PROGRAMS.

    Section 216(a) of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1317, as amended) is 
amended by striking out ``through 1999'' and inserting in lieu thereof 
``through 2003''.

SEC. 212. FUTURE AIRCRAFT CARRIER TRANSITION TECHNOLOGIES.

    Of the funds authorized to be appropriated under section 201(2) for 
Carrier System Development (program element 0603512N), $50,000,000 
shall be available only for research, development, test, evaluation, 
and incorporation into the CVN-77 nuclear aircraft carrier program of 
technologies designed to transition to, demonstrate enhanced 
capabilities for, or mitigate cost and technical risks of, the CV(X) 
aircraft carrier program.

SEC. 213. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Requirements Relating to Competition.--Subsection (d)(1) of 
section 2525 of title 10, United States Code, is amended--
        (1) by striking out ``(1) Competitive'' and inserting in lieu 
    thereof ``(1)(A) In accordance with the policy stated in section 
    2374 of this title, competitive''; and
        (2) by adding at the end the following new subparagraph:
    ``(B) For each grant awarded and each contract, cooperative 
agreement, or other transaction entered into on a cost-share basis 
under the program, the ratio of contract recipient cost to Government 
cost shall be determined by competitive procedures. For a project for 
which the Government receives an offer from only one offeror, the 
contracting officer shall negotiate the ratio of contract recipient 
cost to Government cost that represents the best value to the 
Government.''.
    (b) Requirements Relating to Cost Share Waivers.-- Subsection 
(d)(2) of such section is amended--
        (1) by redesignating subparagraphs (A), (B), and (C) as clauses 
    (i), (ii), and (iii), respectively;
        (2) by inserting ``(A)'' after ``(2)''; and
        (3) by adding at the end the following new subparagraphs:
    ``(B) For any grant awarded or contract, cooperative agreement, or 
other transaction entered into on a basis other than a cost-sharing 
basis because of a determination made under subparagraph (A), the 
transaction file for the project concerned must document the rationale 
for the determination.
    ``(C) The Secretary of Defense may delegate the authority to make 
determinations under subparagraph (A) only to the Under Secretary of 
Defense for Acquisition and Technology or a service acquisition 
executive, as appropriate.''.
    (c) Cost Share Goal.--Subsection (d) of such section is amended--
        (1) by striking out paragraph (4); and
        (2) in paragraph (3)--
            (A) by striking out ``At least'' and inserting in lieu 
        thereof ``As a goal, at least'';
            (B) by striking out ``shall'' and inserting in lieu thereof 
        ``should''; and
            (C) by adding at the end the following: ``The Secretary of 
        Defense, in coordination with the Secretaries of the military 
        departments and upon recommendation of the Under Secretary of 
        Defense for Acquisition and Technology, shall establish annual 
        objectives to meet such goal.''.
    (d) Additional Information To Be Included in Five-Year Plan.--
Subsection (e)(2) of such section is amended to read as follows:
    ``(2) The plan shall include the following:
        ``(A) An assessment of the effectiveness of the program.
        ``(B) An assessment of the extent to which the costs of 
    projects are being shared by the following:
            ``(i) Commercial enterprises in the private sector.
            ``(ii) Department of Defense program offices, including 
        weapon system program offices.
            ``(iii) Departments and agencies of the Federal Government 
        outside the Department of Defense.
            ``(iv) Institutions of higher education.
            ``(v) Other institutions not operated for profit.
            ``(vi) Other sources.''.

SEC. 214. SENSE OF CONGRESS ON THE DEFENSE SCIENCE AND TECHNOLOGY 
              PROGRAM.

    (a) Funding Requirements for the Defense Science and Technology 
Program Budget.--It is the sense of Congress that, for each of the 
fiscal years 2000 through 2008, it should be an objective of the 
Secretary of Defense to increase the budget for the Defense Science and 
Technology Program for the fiscal year over the budget for that program 
for the preceding fiscal year by a percent that is at least two percent 
above the rate of inflation as determined by the Office of Management 
and Budget.
    (b) Guidelines for the Defense Science and Technology Program.--
        (1) Relationship of defense science and technology program to 
    university research.--It is the sense of Congress that the 
    following should be key objectives of the Defense Science and 
    Technology Program:
            (A) The sustainment of research capabilities in scientific 
        and engineering disciplines critical to the Department of 
        Defense.
            (B) The education and training of the next generation of 
        scientists and engineers in disciplines that are relevant to 
        future defense systems, particularly through the conduct of 
        basic research.
            (C) The continued support of the Defense Experimental 
        Program to Stimulate Competitive Research and research programs 
        at historically black colleges and universities and minority 
        institutions.
        (2) Relationship of the defense science and technology program 
    to commercial research and technology.--(A) It is the sense of 
    Congress that, in supporting projects within the Defense Science 
    and Technology Program, the Secretary of Defense should attempt to 
    leverage commercial research, technology, products, and processes 
    for the benefit of the Department of Defense.
        (B) It is the sense of Congress that funds made available for 
    projects and programs of the Defense Science and Technology Program 
    should be used only for the benefit of the Department of Defense, 
    which includes--
            (i) the development of technology that has only military 
        applications;
            (ii) the development of militarily useful, commercially 
        viable technology; and
            (iii) the adaptation of commercial technology, products, or 
        processes for military purposes.
        (3) Synergistic management of research and development.--It is 
    the sense of Congress that the Secretary of Defense should have the 
    flexibility to allocate a combination of funds available for the 
    Department of Defense for basic and applied research and for 
    advanced development to support any individual project or program 
    within the Defense Science and Technology Program, but such 
    flexibility should not change the allocation of funds in any fiscal 
    year among basic and applied research and advanced development.
        (4) Management of science and technology.--It is the sense of 
    Congress that--
            (A) management and funding for the Defense Science and 
        Technology Program for each military department should receive 
        a level of priority and leadership attention equal to the level 
        received by program acquisition, and the Secretary of each 
        military department should ensure that a senior official in the 
        department holds the appropriate title and responsibility to 
        ensure effective oversight and emphasis on science and 
        technology;
            (B) to ensure an appropriate long-term focus for 
        investments, a sufficient percentage of science and technology 
        funds should be directed toward new technology areas, and 
        annual reviews should be conducted for ongoing research areas 
        to ensure that those funded initiatives are either integrated 
        into acquisition programs or discontinued when appropriate;
            (C) the Secretary of each military department should take 
        appropriate steps to ensure that sufficient numbers of officers 
        and civilian employees in the department hold advanced degrees 
        in technical fields; and
            (D) of particular concern, the Secretary of the Air Force 
        should take appropriate measures to ensure that sufficient 
        numbers of scientists and engineers are maintained to address 
        the technological challenges faced in the areas of air, space, 
        and information technology.
    (c) Study.--
        (1) Requirement.--The Secretary of Defense, in cooperation with 
    the National Research Council of the National Academy of Sciences, 
    shall conduct a study on the technology base of the Department of 
    Defense.
        (2) Matters covered.--The study shall--
            (A) result in recommendations on the minimum requirements 
        for maintaining a technology base that is sufficient, based on 
        both historical developments and future projections, to project 
        superiority in air and space weapons systems and in information 
        technology;
            (B) address the effects on national defense and civilian 
        aerospace industries and information technology of reducing 
        funding below the goal described in subsection (a); and
            (C) result in recommendations on the appropriate levels of 
        staff with baccalaureate, masters, and doctorate degrees, and 
        the optimal ratio of civilian and military staff holding such 
        degrees, to ensure that science and technology functions of the 
        Department of Defense remain vital.
        (3) Report.--Not later than 120 days after the date on which 
    the study required under paragraph (1) is completed, the Secretary 
    shall submit to Congress a report on the results of the study.
    (d) Definitions.--In this section:
        (1) The term ``Defense Science and Technology Program'' means 
    basic and applied research and advanced development.
        (2) The term ``basic and applied research'' means work funded 
    in program elements for defense research and development under 
    Department of Defense category 6.1 or 6.2.
        (3) The term ``advanced development'' means work funded in 
    program elements for defense research and development under 
    Department of Defense category 6.3.

SEC. 215. NEXT GENERATION INTERNET PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated under 
section 201(4), $53,000,000 shall be available for the Next Generation 
Internet program.
    (b) Limitation.--Notwithstanding the enactment of any other 
provision of law after the date of the enactment of this Act, amounts 
may be appropriated for fiscal year 1999 for research, development, 
test, and evaluation by the Department of Defense for the Next 
Generation Internet program only pursuant to the authorization of 
appropriations under section 201(4).

SEC. 216. CRUSADER SELF-PROPELLED ARTILLERY SYSTEM PROGRAM.

    (a) Limitation.--Of the amount authorized to be appropriated for 
the Army pursuant to section 201(1), not more than $223,000,000 may be 
obligated for the Crusader self-propelled artillery system program 
until 30 days after the date on which the Secretary of the Army submits 
the report required under subsection (b).
    (b) Requirement for Report.--The Secretary of the Army shall submit 
to the congressional defense committees a report on the Crusader self-
propelled artillery system. The report shall include the following:
        (1) An assessment of the risks associated with the current 
    Crusader program technology.
        (2) The total requirements for the Crusader system, taking into 
    consideration revisions in force structure resulting from the 
    redesign of heavy and light divisions to achieve a force structure 
    known as the Army After Next.
        (3) The potential for reducing the weight of the Crusader 
    system by as much as 50 percent.
        (4) The potential for using alternative propellants for the 
    artillery projectile for the Crusader system and the effects on the 
    overall program schedule that would result from taking the actions 
    and time necessary to develop mature technologies for alternative 
    propellants.
        (5) An analysis of the costs and benefits of delaying 
    procurement of the Crusader system to avoid affordability issues 
    associated with the current schedule and to allow for maturation of 
    weight and propellant technologies.
    (c) Submission of Report.--The Secretary of the Army shall submit 
the report not later than March 1, 1999.

SEC. 217. AIRBORNE LASER PROGRAM.

    (a) Assessment of Technical and Operational Aspects.--The Secretary 
of Defense shall conduct an assessment of the technical and operational 
aspects of the Airborne Laser Program. In conducting the assessment, 
the Secretary shall establish an independent team of persons from 
outside the Department of Defense who are experts in relevant fields to 
review the technical and operational aspects of the Airborne Laser 
Program. The team shall assess the following:
        (1) Whether additional ground testing or other forms of data 
    collection should be completed before initial modification of a 
    commercial aircraft to an Airborne Laser configuration.
        (2) The adequacy of exit criteria for the program definition 
    and risk reduction phase of the Airborne Laser Program.
        (3) The adequacy of current Airborne Laser operational 
    concepts.
    (b) Report on Assessment.--Not later than March 15, 1999, the 
Secretary shall submit to Congress a report on the assessment. The 
report shall include the Secretary's findings and any recommendations 
that the Secretary considers appropriate.
    (c) Funding for Program.--Of the amount authorized to be 
appropriated under section 201(3), $235,219,000 shall be available for 
the Airborne Laser Program.
    (d) Limitation.--Of the amount made available pursuant to 
subsection (c), not more than $185,000,000 may be obligated until 30 
days after the Secretary submits the report required by subsection (b).

SEC. 218. ENHANCED GLOBAL POSITIONING SYSTEM PROGRAM.

    (a) Policy on Priority for Development of Enhanced GPS System.--The 
development of an enhanced Global Positioning System is an urgent 
national security priority.
    (b) Development Required.--To fulfill the requirements described in 
section 279(b) of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 243) and section 2281 of title 
10, United States Code, the Secretary of Defense shall develop an 
enhanced Global Positioning System in accordance with the priority 
declared in subsection (a). The enhanced Global Positioning System 
shall include the following elements:
        (1) An evolved satellite system that includes increased signal 
    power and other improvements such as regional-level directional 
    signal enhancements.
        (2) Enhanced receivers and user equipment that are capable of 
    providing military users with direct access to encrypted Global 
    Positioning System signals.
        (3) To the extent funded by the Secretary of Transportation, 
    additional civil frequencies and other enhancements for civil 
    users.
    (c) Sense of Congress Regarding Funding.--It is the sense of 
Congress that--
        (1) the Secretary of Defense should ensure that the future-
    years defense program provides for sufficient funding to develop 
    and deploy an enhanced Global Positioning System in accordance with 
    the priority declared in subsection (a); and
        (2) the Secretary of Transportation should provide sufficient 
    funding to support additional civil frequencies for the Global 
    Positioning System and other enhancements of the system for civil 
    users.
    (d) Plan for Development of Enhanced Global Positioning System.--
Not later than April 15, 1999, the Secretary of Defense shall submit to 
Congress a plan for carrying out the requirements of subsection (b).
    (e) Delayed Effective Date for Limitation on Procurement of Systems 
Not GPS-Equipped.--Section 152(b) of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1578) is 
amended by striking out ``2000'' and inserting in lieu thereof 
``2005''.
    (f) Funding From Authorized Appropriations for Fiscal Year 1999.--
Of the amounts authorized to be appropriated under section 201(3), 
$44,000,000 shall be available to establish and carry out an enhanced 
Global Positioning System program.

                 Subtitle C--Ballistic Missile Defense

SEC. 231. SENSE OF CONGRESS ON NATIONAL MISSILE DEFENSE COVERAGE.

    It is the sense of Congress that--
        (1) any national missile defense system deployed by the United 
    States must provide effective defense against limited, accidental, 
    or unauthorized ballistic missile attack for all 50 States; and
        (2) the territories of the United States should be afforded 
    effective protection against ballistic missile attack.

SEC. 232. LIMITATION ON FUNDING FOR THE MEDIUM EXTENDED AIR DEFENSE 
              SYSTEM.

    None of the funds appropriated for fiscal year 1999 for the 
Ballistic Missile Defense Organization may be obligated for the Medium 
Extended Air Defense System (MEADS) until the Secretary of Defense 
certifies to Congress that the future-years defense program includes 
sufficient programmed funding for that system to complete the design 
and development phase. If the Secretary does not submit such a 
certification by January 1, 1999, then (effective as of that date) the 
funds appropriated for fiscal year 1999 for the Ballistic Missile 
Defense Organization that are allocated for the MEADS program shall be 
available to support alternative programmatic and technical approaches 
to meeting the requirement for mobile theater missile defense that was 
to be met by the MEADS system.

SEC. 233. LIMITATION ON FUNDING FOR COOPERATIVE BALLISTIC MISSILE 
              DEFENSE PROGRAMS.

    Of the funds appropriated for fiscal year 1999 for the Russian-
American Observational Satellite (RAMOS) program, $5,000,000 may not be 
obligated until the Secretary of Defense certifies to Congress that the 
Department of Defense has received detailed information concerning the 
nature, extent, and military implications of the transfer of ballistic 
missile technology from Russian sources to Iran.

SEC. 234. SENSE OF CONGRESS WITH RESPECT TO BALLISTIC MISSILE DEFENSE 
              COOPERATION WITH RUSSIA.

    It is the sense of Congress that, as the United States proceeds 
with efforts to develop defenses against ballistic missile attack, the 
United States should seek to foster a climate of cooperation with 
Russia on matters related to ballistic missile defense and that, in 
particular, the United States and its NATO allies should seek to 
cooperate with Russia in such areas as early warning of ballistic 
missile launches.

SEC. 235. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

    (a) BMD Program Elements.--(1) Chapter 9 of title 10, United States 
Code, is amended by inserting after section 222 the following new 
section:

``Sec. 223. Ballistic missile defense programs: program elements

    ``(a) Program Elements Specified.--In the budget justification 
materials submitted to Congress in support of the Department of Defense 
budget for any fiscal year (as submitted with the budget of the 
President under section 1105(a) of title 31), the amount requested for 
activities of the Ballistic Missile Defense Organization shall be set 
forth in accordance with the following program elements:
        ``(1) The Patriot system.
        ``(2) The Navy Area system.
        ``(3) The Theater High-Altitude Area Defense system.
        ``(4) The Navy Theater Wide system.
        ``(5) The Medium Extended Air Defense System.
        ``(6) Joint Theater Missile Defense.
        ``(7) National Missile Defense.
        ``(8) Support Technologies.
        ``(9) Family of Systems Engineering and Integration.
        ``(10) Ballistic Missile Defense Technical Operations.
        ``(11) Threat and Countermeasures.
        ``(12) International Cooperative Programs.
    ``(b) Treatment of Major Defense Acquisition Programs.--Amounts 
requested for Theater Missile Defense and National Missile Defense 
major defense acquisition programs shall be specified in individual, 
dedicated program elements, and amounts appropriated for those programs 
shall be available only for Ballistic Missile Defense activities.
    ``(c) Management and Support.--The amount requested for each 
program element specified in subsection (a) shall include requests for 
the amounts necessary for the management and support of the programs, 
projects, and activities contained in that program element.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 222 the 
following new item:
``223. Ballistic missile defense programs: program elements.''.

    (b) Repeal of Superseded Provision.--Section 251 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 10 
U.S.C. 221 note) is repealed.

SEC. 236. RESTRUCTURING OF ACQUISITION STRATEGY FOR THEATER HIGH-
              ALTITUDE AREA DEFENSE (THAAD) SYSTEM.

    (a) Establishment of Competitive Contractor.--(1) The Secretary of 
Defense shall take appropriate steps to implement technical and price 
competition for the development and production of the interceptor 
missile for the Theater High-Altitude Area Defense (THAAD) system.
    (2) The Secretary shall take such steps as necessary to ensure that 
the prime contractor (as of the date of the enactment of this Act) for 
the THAAD system provides the cooperation needed to establish the 
technical and price competition required in subsection (a).
    (3) The Secretary shall use the authority provided in section 
2304(c)(2) of title 10, United States Code, to expedite the 
implementation of paragraphs (1) and (2).
    (4) Of the amount made available under section 201(4) for the THAAD 
System, $29,600,000 shall be available to establish the technical and 
price competition required in paragraph (1).
    (b) Cost Sharing Arrangement.--(1) The Secretary of Defense shall 
contractually establish with the THAAD interceptor prime contractor an 
appropriate arrangement for sharing between the United States and that 
contractor the costs for flight test failures of the interceptor 
missile for the THAAD system beginning with the flight test numbered 9.
    (2) For purposes of paragraph (1), the term ``THAAD interceptor 
prime contractor'' means the firm that as of May 14, 1998, is the prime 
contractor for the interceptor missile for the Theater High-Altitude 
Area Defense system.
    (c) Engineering and Manufacturing Development Phase for Other 
Elements of the THAAD System.--The Secretary of Defense may proceed 
with the milestone approval process for the Engineering and 
Manufacturing Development phase for the Battle Management and Command, 
Control, and Communications (BM/C<SUP>3</SUP>) element of the THAAD 
system and for the Ground Based Radar (GBR) element for that system 
without regard to the stage of development of the interceptor missile 
for that system.
    (d) Plan for Contingency Capability.--(1) The Secretary of Defense 
shall prepare a plan that would allow for deployment of THAAD missiles 
and the other elements of the THAAD system referred to in subsection 
(c) in response to theater ballistic missile threats that evolve before 
United States military forces are equipped with the objective 
configuration of those missiles and elements.
    (2) The Secretary shall submit a report on the plan to the 
congressional defense committees by December 15, 1998.
    (e) Limitation on Entering Engineering and Manufacturing 
Development phase.--(1) The Secretary of Defense may not approve the 
commencement of the Engineering and Manufacturing Development phase for 
the interceptor missile for the THAAD system until there have been 3 
successful tests of that missile.
    (2) For purposes of paragraph (1), a successful test of the 
interceptor missile of the THAAD system is a body-to-body intercept by 
that missile of a ballistic missile target.

                       Subtitle D--Other Matters

SEC. 241. EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE 
              PROJECTS.

    Section 845(c) of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note) is amended by 
striking out ``September 30, 1999'' and inserting in lieu thereof 
``September 30, 2001''.

SEC. 242. NATO ALLIANCE GROUND SURVEILLANCE CONCEPT DEFINITION.

    Amounts authorized to be appropriated under section 201 are 
available for a NATO alliance ground surveillance concept definition 
that is based on the Joint Surveillance Target Attack Radar System 
(Joint STARS) Radar Technology Insertion Program (RTIP) sensor of the 
United States, as follows:
        (1) Of the amount authorized to be appropriated under section 
    201(1), $6,400,000.
        (2) Of the amount authorized to be appropriated under section 
    201(3), $3,500,000.

SEC. 243. NATO COMMON-FUNDED CIVIL BUDGET.

    Of the amount authorized to be appropriated by section 201(1), 
$750,000 shall be available for contributions for the common-funded 
Civil Budget of NATO.

SEC. 244. EXECUTIVE AGENT FOR COOPERATIVE RESEARCH PROGRAM OF THE 
              DEPARTMENT OF DEFENSE AND THE DEPARTMENT OF VETERANS 
              AFFAIRS.

    The Secretary of Defense, acting through the Army Medical Research 
and Materiel Command and the Naval Operational Medicine Institute, 
shall be the executive agent for the use of funds available from the 
amount authorized to be appropriated by section 201(4) for the 
Cooperative Research Program of the Department of Defense and the 
Department of Veterans Affairs.

SEC. 245. REVIEW OF PHARMACOLOGICAL INTERVENTIONS FOR REVERSING BRAIN 
              INJURY.

    (a) Review and Report Required.--The Assistant Secretary of Defense 
for Health Affairs shall review research on pharmacological 
interventions for reversing brain injury and, not later than March 31, 
1999, submit a report on the results of the review to Congress.
    (b) Content of Report.--The report shall include the following:
        (1) The potential for pharmacological interventions for 
    reversing brain injury to reduce mortality and morbidity in cases 
    of head injuries incurred in combat or resulting from exposures to 
    chemical weapons or agents.
        (2) The potential utility of such interventions for the Armed 
    Forces.
        (3) A conclusion regarding whether funding for research on such 
    interventions should be included in the budget for the Department 
    of Defense for fiscal year 2000.

SEC. 246. PILOT PROGRAM FOR REVITALIZING THE LABORATORIES AND TEST AND 
              EVALUATION CENTERS OF THE DEPARTMENT OF DEFENSE.

    (a) Pilot Program.--(1) The Secretary of Defense may carry out a 
pilot program to demonstrate improved cooperative relationships with 
universities and other private sector entities for the performance of 
research and development functions.
    (2) Under the pilot program, the Secretary of Defense shall provide 
the director of one science and technology laboratory, and the director 
of one test and evaluation center, of each military department with 
authority for the following:
        (A) To explore innovative methods for quickly, efficiently, and 
    fairly entering into cooperative relationships with universities 
    and other private sector entities with respect to the performance 
    of research and development functions.
        (B) To waive any restrictions on the demonstration and 
    implementation of such methods that are not required by law.
        (C) To develop or expand innovative methods of operation that 
    provide more defense research for each dollar of cost, including to 
    carry out such initiatives as focusing on the performance of core 
    functions and adopting more business-like practices.
    (3) In selecting the laboratories and centers for participation in 
the pilot program, the Secretary shall consider laboratories and 
centers where innovative management techniques have been demonstrated, 
particularly as documented under sections 1115 through 1119 of title 
31, United States Code, relating to Government agency performance and 
results.
    (4) The Secretary may carry out the pilot program at each selected 
laboratory and center for a period of three years beginning not later 
than March 1, 1999.
    (b) Reports.--(1) Not later than March 1, 1999, the Secretary of 
Defense shall submit a report on the implementation of the pilot 
program to Congress. The report shall include the following:
        (A) Each laboratory and center selected for the pilot program.
        (B) To the extent possible, a description of the innovative 
    concepts that are to be tested at each laboratory or center.
        (C) The criteria to be used for measuring the success of each 
    concept to be tested.
    (2) Promptly after the expiration of the period for participation 
of a laboratory or center in the pilot program, the Secretary of 
Defense shall submit to Congress a final report on the participation of 
the laboratory or center in the pilot program. The report shall contain 
the following:
        (A) A description of the concepts tested.
        (B) The results of the testing.
        (C) The lessons learned.
        (D) Any proposal for legislation that the Secretary recommends 
    on the basis of the experience at the laboratory or center under 
    the pilot program.
    (c) Commendation.--Congress commends the Secretary of Defense for 
the progress made by the science and technology laboratories and test 
and evaluation centers of the Department of Defense and encourages the 
Secretary to take the actions necessary to ensure continued progress 
for the laboratories and test and evaluation centers in developing 
cooperative relationships with universities and other private sector 
entities for the performance of research and development functions.

SEC. 247. CHEMICAL WARFARE DEFENSE.

    (a) Review and Modification of Policies and Doctrines.--The 
Secretary of Defense shall review the policies and doctrines of the 
Department of Defense on chemical warfare defense and modify the 
policies and doctrine as appropriate to achieve the objectives set 
forth in subsection (b).
    (b) Objectives.--The objectives for the modification of policies 
and doctrines of the Department of Defense on chemical warfare defense 
are as follows:
        (1) To provide for adequate protection of personnel from any 
    exposure to a chemical warfare agent (including chronic and low-
    level exposure to a chemical warfare agent) that would endanger the 
    health of exposed personnel because of the deleterious effects of--
            (A) a single exposure to the agent;
            (B) exposure to the agent concurrently with other dangerous 
        exposures, such as exposures to--
                (i) other potentially toxic substances in the 
            environment, including pesticides, other insect and vermin 
            control agents, and environmental pollutants;
                (ii) low-grade nuclear and electromagnetic radiation 
            present in the environment;
                (iii) preventive medications (that are dangerous when 
            taken concurrently with other dangerous exposures referred 
            to in this paragraph);
                (iv) diesel fuel, jet fuel, and other hydrocarbon-based 
            fuels; and
                (v) occupational hazards, including battlefield 
            hazards; and
            (C) repeated exposures to the agent, or some combination of 
        one or more exposures to the agent and other dangerous 
        exposures referred to in subparagraph (B), over time.
        (2) To provide for--
            (A) the prevention of and protection against, and the 
        detection (including confirmation) of, exposures to a chemical 
        warfare agent (whether intentional or inadvertent) at levels 
        that, even if not sufficient to endanger health immediately, 
        are greater than the level that is recognized under Department 
        of Defense policies as being the maximum safe level of exposure 
        to that agent for the general population; and
            (B) the recording, reporting, coordinating, and retaining 
        of information on possible exposures described in subparagraph 
        (A), including the monitoring of the health effects of 
        exposures on humans and animals, environmental effects, and 
        ecological effects, and the documenting and reporting of those 
        effects specifically by location.
        (3) To provide solutions for the concerns and mission 
    requirements that are specifically applicable for one or more of 
    the Armed Forces in a protracted conflict when exposures to 
    chemical agents could be complex, dynamic, and occurring over an 
    extended period.
    (c) Research Program.--The Secretary of Defense shall develop and 
carry out a plan to establish a research program for determining the 
effects of exposures to chemical warfare agents of the type described 
in subsection (b). The research shall be designed to yield results that 
can guide the Secretary in the evolution of policy and doctrine on 
exposures to chemical warfare agents and to develop new risk assessment 
methods and instruments with respect to such exposures. The plan shall 
state the objectives and scope of the program and include a 5-year 
funding plan.
    (d) Report.--Not later than May 1, 1999, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the results of the review under subsection (a) and on the research 
program developed under subsection (c). The report shall include the 
following:
        (1) Each modification of chemical warfare defense policy and 
    doctrine resulting from the review.
        (2) Any recommended legislation regarding chemical warfare 
    defense.
        (3) The plan for the research program.

SEC. 248. LANDMINE ALTERNATIVES.

    (a) Availability of Funds.--(1) Of the amounts authorized to be 
appropriated in section 201, not more than $19,200,000 shall be 
available for activities relating to the identification, adaptation, 
modification, research, and development of existing and new 
technologies and concepts that--
        (A) would provide a combat capability that is equivalent to the 
    combat capability provided by non-self destructing anti-personnel 
    landmines;
        (B) would provide a combat capability that is equivalent to the 
    combat capability provided by anti-personnel submunitions used in 
    mixed anti-tank mine systems; or
        (C) would provide a combat capability that is equivalent to the 
    combat capability provided by current mixed mine systems.
    (2) Of the amount available under paragraph (1)--
        (A) not more than $17,200,000 shall be made available for 
    activities referred to in subparagraph (A) of that paragraph for 
    the current efforts of the Army referred to as the Non-Self 
    Destruct Alternative; and
        (B) not more than $2,000,000 shall be made available for 
    activities referred to in subparagraphs (B) or (C) of that 
    paragraph that relate to anti-personnel submunitions used in mixed 
    mine systems or an alternative for mixed munitions.
    (b) Funding for Research Into Alternatives to Anti-Personnel 
Submunitions Used in Mixed Mine Systems or an Alternative for Mixed 
Munitions.--The Secretary shall include with the materials submitted to 
Congress with the budget for fiscal year 2000 under section 1105 of 
title 31, United States Code, an explanation of any funds requested to 
support a search for existing and new technologies and concepts that 
could provide a combat capability equivalent to the combat capability 
provided by anti-personnel submunitions used in mixed mine systems or 
an alternative to mixed munitions.
    (c) Studies.--The Secretary of Defense shall enter into two 
contracts, each with an appropriate scientific organization--
        (1) to carry out a study on existing and new technologies and 
    concepts referred to in subsection (a); and
        (2) to submit to the Secretary a report on the study, including 
    any recommendations considered appropriate by the scientific 
    organization.
    (d) Report.--Not later than April 1 of 2000 and 2001, the Secretary 
shall submit to the congressional defense committees a report 
describing the progress made in identifying technologies and concepts 
referred to in subsection (a). At the same time the report is 
submitted, the Secretary shall transmit to such committees copies of 
the reports (and recommendations, if any) received by the Secretary 
from the scientific organizations that carried out the studies referred 
to in subsection (c).

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec.301.Operation and maintenance funding.
Sec.302.Working capital funds.
Sec.303.Armed Forces Retirement Home.
Sec.304.Transfer from National Defense Stockpile Transaction Fund.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec.311.Refurbishment of M1-A1 tanks.
Sec.312.Operation of prepositioned fleet, National Training Center, Fort 
          Irwin, California.
Sec.313.Berthing space at Norfolk Naval Shipyard, Virginia.
Sec.314.NATO common-funded military budget.

                  Subtitle C--Environmental Provisions

Sec.321.Settlement of claims of foreign governments for environmental 
          cleanup of overseas sites formerly used by the Department of 
          Defense.
Sec.322.Authority to pay negotiated settlement for environmental cleanup 
          of formerly used defense sites in Canada.
Sec.323.Removal of underground storage tanks.
Sec.324.Report regarding polychlorinated biphenyl waste under Department 
          of Defense control overseas.
Sec.325.Modification of deadline for submittal to Congress of annual 
          reports on environmental activities.
Sec.326.Submarine solid waste control.
Sec.327.Arctic Military Environmental Cooperation Program.
Sec.328.Sense of Congress regarding oil spill prevention training for 
          personnel on board Navy vessels.

                Subtitle D--Information Technology Issues

Sec.331.Additional information technology responsibilities of Chief 
          Information Officers.
Sec.332.Defense-wide electronic mall system for supply purchases.
Sec.333.Priority funding to ensure year 2000 compliance of information 
          technology and national security systems.
Sec.334.Evaluation of year 2000 compliance as part of training exercises 
          programs.
Sec.335.Continuity of essential operations at risk of failure because of 
          information technology and national security systems that are 
          not year 2000 compliant.

         Subtitle E--Defense Infrastructure Support Improvement

Sec.341.Clarification of definition of depot-level maintenance and 
          repair.
Sec.342.Reporting and analysis requirements before change of commercial 
          and industrial type functions to private sector performance.
Sec.343.Notifications of determinations of military items as being 
          commercial items for purposes of the exception to requirements 
          regarding core logistics capabilities.
Sec.344.Oversight of development and implementation of automated 
          identification technology.
Sec.345.Contractor-operated civil engineering supply stores program.
Sec.346.Conditions on expansion of functions performed under prime 
          vendor contracts for depot-level maintenance and repair.
Sec.347.Best commercial inventory practices for management of secondary 
          supply items.
Sec.348.Personnel reductions in Army Materiel Command.
Sec.349.Inventory management of in-transit items.
Sec.350.Review of Defense Automated Printing Service functions.
Sec.351.Development of plan for establishment of core logistics 
          capabilities for maintenance and repair of C-17 aircraft.

   Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

Sec.361.Continuation of management and funding of Defense Commissary 
          Agency through the Office of the Secretary of Defense.
Sec.362.Expansion of current eligibility of Reserves for commissary 
          benefits.
Sec.363.Costs payable to the Department of Defense and other Federal 
          agencies for services provided to the Defense Commissary 
          Agency.
Sec.364.Collection of dishonored checks presented at commissary stores.
Sec.365.Restrictions on patron access to, and purchases in, overseas 
          commissaries and exchange stores.
Sec.366.Repeal of requirement for Air Force to sell tobacco products to 
          enlisted personnel.
Sec.367.Prohibition on consolidation or other organizational changes of 
          Department of Defense retail systems.
Sec.368.Defense Commissary Agency telecommunications.
Sec.369.Survey of commissary store patrons regarding satisfaction with 
          commissary store merchandise.

                        Subtitle G--Other Matters

Sec.371.Eligibility requirements for attendance at Department of Defense 
          domestic dependent elementary and secondary schools.
Sec.372.Assistance to local educational agencies that benefit dependents 
          of members of the Armed Forces and Department of Defense 
          civilian employees.
Sec.373.Department of Defense readiness reporting system.
Sec.374.Specific emphasis of program to investigate fraud, waste, and 
          abuse within Department of Defense.
Sec.375.Condition for providing financial assistance for support of 
          additional duties assigned to the Army National Guard.
Sec.376.Demonstration program to improve quality of personal property 
          shipments of members.
Sec.377.Pilot program for acceptance and use of landing fees charged for 
          use of domestic military airfields by civil aircraft.
Sec.378.Strategic plan for expansion of distance learning initiatives.
Sec.379.Public availability of operating agreements between military 
          installations and financial institutions.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
        (1) For the Army, $17,002,563,000.
        (2) For the Navy, $21,577,702,000.
        (3) For the Marine Corps, $2,528,603,000.
        (4) For the Air Force, $18,690,633,000.
        (5) For Defense-wide activities, $10,550,076,000.
        (6) For the Army Reserve, $1,198,022,000.
        (7) For the Naval Reserve, $920,639,000.
        (8) For the Marine Corps Reserve, $117,893,000.
        (9) For the Air Force Reserve, $1,722,796,000.
        (10) For the Army National Guard, $2,564,315,000.
        (11) For the Air National Guard, $3,047,433,000.
        (12) For the Defense Inspector General, $130,764,000.
        (13) For the United States Court of Appeals for the Armed 
    Forces, $7,324,000.
        (14) For Environmental Restoration, Army, $370,640,000.
        (15) For Environmental Restoration, Navy, $274,600,000.
        (16) For Environmental Restoration, Air Force, $372,100,000.
        (17) For Environmental Restoration, Defense-wide, $25,091,000.
        (18) For Environmental Restoration, Formerly Used Defense 
    Sites, $195,000,000.
        (19) For Overseas Humanitarian, Disaster, and Civic Aid 
    programs, $50,000,000.
        (20) For Drug Interdiction and Counter-drug Activities, 
    Defense-wide, $725,582,000.
        (21) For the Kaho'olawe Island Conveyance, Remediation, and 
    Environmental Restoration Trust Fund, $15,000,000.
        (22) For Defense Health Program, $9,617,435,000.
        (23) For Cooperative Threat Reduction programs, $440,400,000.
        (24) For Overseas Contingency Operations Transfer Fund, 
    $746,900,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
        (1) For the Defense Working Capital Funds, $1,076,571,000.
        (2) For the National Defense Sealift Fund, $669,566,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1999 
from the Armed Forces Retirement Home Trust Fund the sum of $70,745,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

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

    (a) Transfer Authority.--To the extent provided in appropriations 
Acts, not more than $150,000,000 is authorized to be transferred from 
the National Defense Stockpile Transaction Fund to operation and 
maintenance accounts for fiscal year 1999 in amounts as follows:
        (1) For the Army, $50,000,000.
        (2) For the Navy, $50,000,000.
        (3) For the Air Force, $50,000,000.
    (b) Treatment of Transfers.--Amounts transferred under this 
section--
        (1) shall be merged with, and be available for the same 
    purposes and the same period as, the amounts in the accounts to 
    which transferred; and
        (2) may not be expended for an item that has been denied 
    authorization of appropriations by Congress.
    (c) Relationship to Other Transfer Authority.--The transfer 
authority provided in this section is in addition to the transfer 
authority provided in section 1001.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. REFURBISHMENT OF M1-A1 TANKS.

    Of the amount authorized to be appropriated pursuant to section 
301(1) for operation and maintenance for the Army, $31,000,000 shall be 
available only for the refurbishment of up to 70 M1-A1 tanks under the 
AIM-XXI program.

SEC. 312. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING CENTER, 
              FORT IRWIN, CALIFORNIA.

    Of the amount authorized to be appropriated pursuant to section 
301(1) for operation and maintenance for the Army, $60,200,000 shall be 
available only to pay costs associated with the operation of the 
prepositioned fleet of equipment during training rotations at the 
National Training Center, Fort Irwin, California.

SEC. 313. BERTHING SPACE AT NORFOLK NAVAL SHIPYARD, VIRGINIA.

    Of the amount authorized to be appropriated pursuant to section 
301(2) for operation and maintenance for the Navy, $6,000,000 may be 
available for the purpose of relocating the U.S.S. WISCONSIN, which is 
currently in a reserve status at the Norfolk Naval Shipyard, Virginia, 
to a suitable location in order to increase available berthing space at 
the shipyard.

SEC. 314. NATO COMMON-FUNDED MILITARY BUDGET.

    Of the amount authorized to be appropriated pursuant to section 
301(1) for operation and maintenance for the Army, $227,377,000 shall 
be available for contributions for the common-funded Military Budget of 
the North Atlantic Treaty Organization.

                  Subtitle C--Environmental Provisions

SEC. 321. SETTLEMENT OF CLAIMS OF FOREIGN GOVERNMENTS FOR ENVIRONMENTAL 
              CLEANUP OF OVERSEAS SITES FORMERLY USED BY THE DEPARTMENT 
              OF DEFENSE.

    (a) Notice of Negotiations.--The President shall notify Congress 
before entering into any negotiations for the ex-gratia settlement of 
the claims of a government of another country against the United States 
for environmental cleanup of sites in that country that were formerly 
used by the Department of Defense.
    (b) Authorization Required for Use of Funds for Payment of 
Settlement.--No funds may be used for any payment under an ex-gratia 
settlement of any claims described in subsection (a) unless the use of 
the funds for that purpose is specifically authorized by law or 
international agreement, including a treaty.

SEC. 322. AUTHORITY TO PAY NEGOTIATED SETTLEMENT FOR ENVIRONMENTAL 
              CLEANUP OF FORMERLY USED DEFENSE SITES IN CANADA.

    (a) Findings.--Congress makes the following findings with respect 
to the authorization of payment of settlement with Canada in subsection 
(b) regarding environmental cleanup at formerly used defense sites in 
Canada:
        (1) A unique and longstanding national security alliance exists 
    between the United States and Canada.
        (2) The sites covered by the settlement were formerly used by 
    the United States and Canada for their mutual defense.
        (3) There is no formal treaty or international agreement 
    between the United States and Canada regarding the environmental 
    cleanup of the sites.
        (4) Environmental contamination at some of the sites could pose 
    a substantial risk to the health and safety of the United States 
    citizens residing in States near the border between the United 
    States and Canada.
        (5) The United States and Canada reached a negotiated agreement 
    for an ex-gratia reimbursement of Canada in full satisfaction of 
    claims of Canada relating to environmental contamination which 
    agreement was embodied in an exchange of Notes between the 
    Government of the United States and the Government of Canada.
        (6) There is a unique factual basis for authorizing a 
    reimbursement of Canada for environmental cleanup at sites in 
    Canada after the United States departure from such sites.
        (7) The basis for and authorization of such reimbursement does 
    not extend to similar claims by other nations.
        (8) The Government of Canada is committed to spending the 
    entire $100,000,000 of the reimbursement authorized in subsection 
    (b) in the United States, which will benefit United States industry 
    and United States workers.
    (b) Authority To Make Payments.--(1) Subject to subsection (c), the 
Secretary of Defense may, using funds specified under subsection (d), 
make a payment described in paragraph (2) for each fiscal year through 
fiscal year 2008 for purposes of the ex-gratia reimbursement of Canada 
in full satisfaction of any and all claims asserted against the United 
States by Canada for environmental cleanup of sites in Canada that were 
formerly used for the mutual defense of the United States and Canada.
    (2) A payment referred to in paragraph (1) is a payment of 
$10,000,000, in constant fiscal year 1996 dollars, into the Foreign 
Military Sales Trust Account for purposes of Canada.
    (c) Condition on Authority for Subsequent Fiscal Years.--A payment 
may be made under subsection (b) for a fiscal year after fiscal year 
1999 only if the Secretary of Defense submits to Congress with the 
budget for such fiscal year under section 1105 of title 31, United 
States Code, evidence that the cumulative amount expended by the 
Government of Canada for environmental cleanup activities in Canada 
during any fiscal years before such fiscal year in which a payment 
under that subsection was authorized was an amount equal to or greater 
than the aggregate amount of the payments under that subsection during 
such fiscal years.
    (d) Source of Funds.--(1) The payment under subsection (b) for 
fiscal year 1998 shall be made from amounts appropriated pursuant to 
section 301(5) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1669).
    (2) The payment under subsection (b) for fiscal year 1999 shall be 
made from amounts appropriated pursuant to section 301(5).
    (3) For a fiscal year after fiscal year 1999, a payment may be made 
under subsection (b) from amounts appropriated pursuant to the 
authorization of appropriations for the Department of Defense for such 
fiscal year for Operation and Maintenance, Defense-Wide.

SEC. 323. REMOVAL OF UNDERGROUND STORAGE TANKS.

    The Secretary of the Army may use funds available pursuant to the 
authorization of appropriations in section 301(18) (relating to 
environmental restoration of formerly used defense sites) for the 
removal of underground storage tanks to the extent that, and in 
accordance with such criteria as, the Secretary determines appropriate 
for the use of such funds.

SEC. 324. REPORT REGARDING POLYCHLORINATED BIPHENYL WASTE UNDER 
              DEPARTMENT OF DEFENSE CONTROL OVERSEAS.

    (a) Report Required.--(1) Not later than March 1, 1999, the 
Secretary of Defense shall submit to the committees specified in 
paragraph (2) a report on the status of foreign-manufactured 
polychlorinated biphenyl waste. The Secretary shall prepare the report 
in consultation with the Administrator of the Environmental Protection 
Agency and the Secretary of State.
    (2) The committees referred to in paragraph (1) are the following:
        (A) The Committee on Armed Services and the Committee on 
    Environment and Public Works of the Senate.
        (B) The Committee on National Security, the Committee on 
    Commerce, and the Committee on Transportation and Infrastructure of 
    the House of Representatives.
    (b) Elements of Report.--The report under subsection (a) shall 
include the following:
        (1) The identity of each foreign country from which the 
    Secretary of Defense anticipates that the Department of Defense 
    will need to transport foreign-manufactured polychlorinated 
    biphenyl waste into the customs territory of the United States.
        (2) For each foreign country identified under paragraph (1), an 
    inventory of the type, concentrations, and estimated quantity of 
    foreign-manufactured polychlorinated biphenyl waste involved, the 
    reasons why disposal of the polychlorinated biphenyl waste in the 
    foreign country is not available, the identity of other locations 
    or facilities where disposal of the polychlorinated biphenyl waste 
    in an environmentally sound manner is available, and the 
    availability of alternative technologies and mobile units for 
    polychlorinated biphenyl waste treatment or disposal.
        (3) An accounting of all foreign-manufactured polychlorinated 
    biphenyl waste that exists as of the date of the enactment of this 
    Act and as of the date of the report.
        (4) An estimate of the volume of foreign-manufactured 
    polychlorinated biphenyl waste that is likely to be generated 
    annually in each of the next 5 calendar years, and the basis for 
    each such estimate.
        (5) A description of any hazards to human health or the 
    environment posed by foreign-manufactured polychlorinated biphenyl 
    waste.
        (6) A description of any international or domestic legal 
    impediments that the Department has experienced in disposing of 
    foreign-manufactured polychlorinated biphenyl waste in an 
    environmentally sound manner.
        (7) A description of any efforts undertaken by the Department 
    to seek relief from legal impediments to the disposal of foreign-
    manufactured polychlorinated biphenyl waste, including the relief 
    available pursuant to section 6(e) or 22 of the Toxic Substances 
    Control Act (15 U.S.C. 2605(e), 2621).
        (8) The identity of the possible disposal or treatment 
    facilities in the United States that would be used if foreign-
    manufactured polychlorinated biphenyl waste were transported into 
    the customs territory of the United States, and the method of 
    disposal or treatment at each such facility.
        (9) A description of Department policy and practice concerning 
    procurement or purchase of foreign-manufactured polychlorinated 
    biphenyls or materials containing foreign-manufactured 
    polychlorinated biphenyls.
    (c) Recommendations.--The report shall also include such 
recommendations as the Secretary of Defense, with the concurrence of 
the Administrator of the Environmental Protection Agency and the 
Secretary of State, considers necessary regarding changes to United 
States law to allow for the disposal, in an environmentally sound 
manner, of foreign-manufactured polychlorinated biphenyl waste, 
together with a statement of whether and how such changes would be 
consistent with international law, including the Basel Convention on 
the Control of Transboundary Movements of Hazardous Wastes and Their 
Disposal and the Protocol to the Convention on Long-Range Transboundary 
Air Pollution on Persistent Organic Pollutants.
    (d) Definitions.--In this section:
        (1) The term ``polychlorinated biphenyl waste'' means--
            (A) polychlorinated biphenyls; and
            (B) materials containing polychlorinated biphenyls;
    that are ready for disposal.
        (2) The term ``foreign-manufactured polychlorinated biphenyl 
    waste'' means polychlorinated biphenyl waste that is owned by the 
    Department of Defense and situated outside of the United States and 
    that consists of--
            (A) polychlorinated biphenyls; or
            (B) materials containing polychlorinated biphenyls;
    that were manufactured outside of the United States.

SEC. 325. MODIFICATION OF DEADLINE FOR SUBMITTAL TO CONGRESS OF ANNUAL 
              REPORTS ON ENVIRONMENTAL ACTIVITIES.

    Section 2706 of title 10, United States Code, is amended by 
striking out ``not later than 30 days'' each place it appears in 
subsections (a), (b), (c), and (d) and inserting in lieu thereof ``not 
later than 45 days''.

SEC. 326. SUBMARINE SOLID WASTE CONTROL.

    (a) Solid Waste Discharge Requirements.--Subsection (c)(2) of 
section 3 of the Act to Prevent Pollution from Ships (33 U.S.C. 1902) 
is amended--
        (1) in subparagraph (A), by adding at the end the following:
        ``(iii) With regard to a submersible, nonplastic garbage that 
    has been compacted and weighted to ensure negative buoyancy.''; and
        (2) in subparagraph (B)(ii), by striking out ``subparagraph 
    (A)(ii)'' and inserting in lieu thereof ``clauses (ii) and (iii) of 
    subparagraph (A)''.
    (b) Conforming Amendment.--Subsection (e)(3)(A) of that section is 
amended by striking out ``garbage that contains more than the minimum 
amount practicable of''.

SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERATION PROGRAM.

    (a) Activities Under Program.--(1) Subject to paragraph (2), 
activities under the Arctic Military Environmental Cooperation Program 
of the Department of Defense shall include cooperative activities on 
environmental matters in the Arctic region with the military 
departments and agencies of other countries, including the Russian 
Federation.
    (2) Activities under the Arctic Military Environmental Cooperation 
Program may not include any activities for purposes for which funds for 
Cooperative Threat Reduction programs have been denied or are 
prohibited, including the purposes for which funds are prohibited by 
section 1503 of the National Defense Authorization Act for Fiscal Year 
1997 (Public Law 104-201; 110 Stat. 2732).
    (b) Prior Notice to Congress of Obligation of Funds.--The Secretary 
of Defense shall submit to the congressional defense committees a 
report at least 15 days before the obligation of any funds for the 
Arctic Military Environmental Cooperation Program. Each such report 
shall specify--
        (1) the amount of the proposed obligation;
        (2) the activities for which the Secretary plans to obligate 
    such funds; and
        (3) the terms of the implementing agreement between the United 
    States and the foreign government concerning the activity to be 
    undertaken, including the financial and other responsibilities of 
    each government.
    (c) Availability of Fiscal Year 1999 Funds.--(1) Of the amount 
authorized to be appropriated by section 301(5), $4,000,000 shall be 
available for carrying out the Arctic Military Environmental 
Cooperation Program.
    (2) Amounts available for the Arctic Military Environmental 
Cooperation Program under paragraph (1) may not be obligated or 
expended for that Program until 45 days after the date on which the 
Secretary of Defense submits to the congressional defense committees a 
plan for the Program under paragraph (3).
    (3) The plan for the Arctic Military Environmental Cooperation 
Program under this paragraph shall include the following:
        (A) A statement of the overall goals and objectives of the 
    Program.
        (B) A statement of the proposed activities under the Program 
    and the relationship of such activities to the national security 
    interests of the United States.
        (C) An assessment of the compatibility of the activities set 
    forth under subparagraph (B) with the purposes of the Cooperative 
    Threat Reduction programs of the Department of Defense (including 
    with any prohibitions and limitations applicable to such programs).
        (D) An estimate of the funding to be required and requested in 
    future fiscal years for the activities set forth under subparagraph 
    (B).
        (E) A proposed termination date for the Program.

SEC. 328. SENSE OF CONGRESS REGARDING OIL SPILL PREVENTION TRAINING FOR 
              PERSONNEL ON BOARD NAVY VESSELS.

    (a) Findings.--Congress makes the following findings:
        (1) There have been six significant oil spills in Puget Sound, 
    Washington, in 1998, five at Puget Sound Naval Shipyard (including 
    three from the U.S.S. Kitty Hawk, one from the U.S.S. Carl Vinson, 
    and one from the U.S.S. Sacramento) and one at Naval Station 
    Everett from the U.S.S. Paul F. Foster.
        (2) Navy personnel on board vessels, and not shipyard 
    employees, were primarily responsible for a majority of these oil 
    spills at Puget Sound Naval Shipyard.
        (3) Oil spills have the potential to damage the local 
    environment, killing microscopic organisms, contributing to air 
    pollution, harming plants and marine animals, and increasing 
    overall pollution levels in Puget Sound.
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of the Navy should take immediate action to significantly 
reduce the risk of vessel oil spills, including the minimization of 
fuel oil transfers, the assurance of proper training and qualifications 
of all Naval personnel in occupations that may contribute to or 
minimize the risk of shipboard oil spills, and the improvement of 
liaison with local authorities concerning oil spill prevention and 
response activities.

               Subtitle D--Information Technology Issues

SEC. 331. ADDITIONAL INFORMATION TECHNOLOGY RESPONSIBILITIES OF CHIEF 
              INFORMATION OFFICERS.

    (a) In General.--(1) Chapter 131 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 2223. Information technology: additional responsibilities of 
            Chief Information Officers

    ``(a) Additional Responsibilities of Chief Information Officer of 
Department of Defense.--In addition to the responsibilities provided 
for in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen 
Act of 1996 (40 U.S.C. 1425), the Chief Information Officer of the 
Department of Defense shall--
        ``(1) review and provide recommendations to the Secretary of 
    Defense on Department of Defense budget requests for information 
    technology and national security systems;
        ``(2) ensure the interoperability of information technology and 
    national security systems throughout the Department of Defense;
        ``(3) ensure that information technology and national security 
    systems standards that will apply throughout the Department of 
    Defense are prescribed; and
        ``(4) provide for the elimination of duplicate information 
    technology and national security systems within and between the 
    military departments and Defense Agencies.
    ``(b) Additional Responsibilities of Chief Information Officer of 
Military Departments.--In addition to the responsibilities provided for 
in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen Act 
of 1996 (40 U.S.C. 1425), the Chief Information Officer of a military 
department, with respect to the military department concerned, shall--
        ``(1) review budget requests for all information technology and 
    national security systems;
        ``(2) ensure that information technology and national security 
    systems are in compliance with standards of the Government and the 
    Department of Defense;
        ``(3) ensure that information technology and national security 
    systems are interoperable with other relevant information 
    technology and national security systems of the Government and the 
    Department of Defense; and
        ``(4) coordinate with the Joint Staff with respect to 
    information technology and national security systems.
    ``(c) Definitions.--In this section:
        ``(1) The term `Chief Information Officer' means the senior 
    official designated by the Secretary of Defense or a Secretary of a 
    military department pursuant to section 3506 of title 44.
        ``(2) The term `information technology' has the meaning given 
    that term by section 5002 of the Clinger-Cohen Act of 1996 (40 
    U.S.C. 1401).
        ``(3) The term `national security system' has the meaning given 
    that term by section 5142 of the Clinger-Cohen Act of 1996 (40 
    U.S.C. 1452).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``2223. Information technology: additional responsibilities of Chief 
          Information Officers.''.

    (b) Effective Date.--Section 2223 of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 1998.

SEC. 332. DEFENSE-WIDE ELECTRONIC MALL SYSTEM FOR SUPPLY PURCHASES.

    (a) Electronic Mall System Defined.--In this section, the term 
``electronic mall system'' means an electronic system for displaying, 
ordering, and purchasing supplies and materiel available from sources 
within the Department of Defense and from the private sector.
    (b) Development and Management.--(1) Using systems and technology 
available in the Department of Defense as of the date of the enactment 
of this Act, the Joint Electronic Commerce Program Office of the 
Department of Defense shall develop a single, defense-wide electronic 
mall system, which shall provide a single, defense-wide electronic 
point of entry and a single view, access, and ordering capability for 
all Department of Defense electronic catalogs. The Secretary of each 
military department and the head of each Defense Agency shall provide 
to the Joint Electronic Commerce Program Office the necessary and 
requested data to ensure compliance with this paragraph.
    (2) The Defense Logistics Agency, under the direction of the Joint 
Electronic Commerce Program Office, shall be responsible for 
maintaining the defense-wide electronic mall system developed under 
paragraph (1).
    (c) Role of Chief Information Officer.--The Chief Information 
Officer of the Department of Defense shall be responsible for--
        (1) overseeing the elimination of duplication and overlap among 
    Department of Defense electronic catalogs; and
        (2) ensuring that such catalogs utilize technologies and 
    formats compliant with the requirements of subsection (b).
    (d) Implementation.--Within 180 days after the date of the 
enactment of this Act, the Chief Information Officer shall develop and 
provide to the congressional defense committees--
        (1) an inventory of all existing and planned electronic mall 
    systems in the Department of Defense; and
        (2) a schedule for ensuring that each such system is compliant 
    with the requirements of subsection (b).

SEC. 333. PRIORITY FUNDING TO ENSURE YEAR 2000 COMPLIANCE OF 
              INFORMATION TECHNOLOGY AND NATIONAL SECURITY SYSTEMS.

    (a) Funds for Completion of Year 2000 Conversion.--None of the 
funds authorized to be appropriated pursuant to this Act may (except as 
provided in subsection (b)) be obligated or expended on the development 
or modernization of any information technology or national security 
system of the Department of Defense in use by the Department of Defense 
(whether or not the system is a mission critical system) if the date-
related data processing capability of that system does not meet 
certification level 1a, 1b, or 2 (as prescribed in the April 1997 
publication of the Department of Defense entitled ``Year 2000 
Management Plan'').
    (b) Exception for Certain Information Technology and National 
Security Systems.--The limitation in subsection (a) does not apply to 
an obligation or expenditure for an information technology or national 
security system that is reported to the Office of the Secretary of 
Defense by October 1, 1998, in accordance with the preparation 
instructions for the May 1998 Department of Defense quarterly report on 
the status of year 2000 compliance, if--
        (1) the obligation or expenditure is directly related to 
    ensuring that the reported system achieves year 2000 compliance;
        (2) the system is being developed and fielded to replace, 
    before January 1, 2000, a noncompliant system or a system to be 
    terminated in accordance with the May 1998 Department of Defense 
    quarterly report on the status of year 2000 compliance; or
        (3) the obligation or expenditure is required for a particular 
    change that is specifically required by law or that is specifically 
    directed by the Secretary of Defense.
    (c) Unallocated Reductions of Funds Not To Apply to Mission 
Critical Systems.--Funds authorized to be appropriated pursuant to this 
Act for mission critical systems are not subject to any unallocated 
reduction of funds made by or otherwise applicable to funds authorized 
to be appropriated pursuant to this Act.
    (d) Current Services Operations Not Affected.--Subsection (a) does 
not prohibit the obligation or expenditure of funds for current 
services operations of information technology and national security 
systems.
    (e) Waiver Authority.--The Secretary of Defense may waive 
subsection (a) on a case-by-case basis with respect to an information 
technology or national security system if the Secretary provides the 
congressional defense committees with written notice of the waiver, 
including the reasons for the waiver and a timeline for the testing and 
certification of the system as year 2000 compliant.
    (f) Required Report.--(1) Not later than December 1, 1998, the 
Secretary of Defense shall submit to the congressional defense 
committees a report describing--
        (A) an executable strategy to be used throughout the Department 
    of Defense to test information technology and national security 
    systems for year 2000 compliance (to include functional capability 
    tests and military exercises);
        (B) the plans of the Department of Defense for ensuring that 
    adequate resources (such as testing facilities, tools, and 
    personnel) are available to ensure that all mission critical 
    systems achieve year 2000 compliance; and
        (C) the criteria and process to be used to certify a system as 
    year 2000 compliant.
    (2) The report shall also include--
        (A) an updated list of all mission critical systems; and
        (B) guidelines for developing contingency plans for the 
    functioning of each information technology or national security 
    system in the event of a year 2000 problem in any such system.
    (g) Capability Contingency Plans.--Not later than December 30, 
1998, the Secretary of Defense shall have in place contingency plans to 
ensure continuity of operations for every critical mission or function 
of the Department of Defense that is dependent on an information 
technology or national security system.
    (h) Inspector General Evaluation.--The Inspector General of the 
Department of Defense shall selectively audit information technology 
and national security systems certified as year 2000 compliant to 
evaluate the ability of systems to successfully operate during the 
actual year 2000, including the ability of the systems to access and 
transmit information from point of origin to point of termination.
    (i) Definitions.--For purposes of this section:
        (1) The term ``information technology'' has the meaning given 
    that term in section 5002 of the Clinger-Cohen Act of 1996 (40 
    U.S.C. 1401).
        (2) The term ``national security system'' has the meaning given 
    that term in section 5142 of such Act (40 U.S.C. 1452).
        (3) The term ``development or modernization'' has the meaning 
    given that term in paragraph E of section 180203 of the Department 
    of Defense Financial Management Regulation (DOD 7000.14-R), but 
    does not include any matter covered by subparagraph 3 of that 
    paragraph.
        (4) The term ``current services'' has the meaning given that 
    term in paragraph C of section 180203 of the Department of Defense 
    Financial Management Regulation (DOD 7000.14-R).
        (5) The term ``mission critical system'' means an information 
    technology or national security system that is designated as 
    mission critical in the May 1998 Department of Defense quarterly 
    report on the status of year 2000 compliance.

SEC. 334. EVALUATION OF YEAR 2000 COMPLIANCE AS PART OF TRAINING 
              EXERCISES PROGRAMS.

    (a) Report on Evaluation Plan.--Not later than December 15, 1998, 
the Secretary of Defense shall submit to Congress a plan for the 
execution of a simulated year 2000 as part of military exercises 
described in subsection (c) in order to evaluate, in an operational 
environment, the extent to which information technology and national 
security systems involved in those exercises will successfully operate 
during the actual year 2000, including the ability of those systems to 
access and transmit information from point of origin to point of 
termination.
    (b) Evaluation of Compliance in Selected Exercises.--In conducting 
the military exercises described in subsection (c), the Secretary of 
Defense shall ensure that--
        (1) at least 25 of those exercises (referred to in this section 
    as ``year 2000 simulation exercises'') are conducted so as to 
    include a simulated year 2000 in accordance with the plan submitted 
    under subsection (a);
        (2) at least two of those exercises are conducted by the 
    commander of each unified or specified combatant command; and
        (3) all mission critical systems that are expected to be used 
    if the Armed Forces are involved in a conflict in a major theater 
    of war are tested in at least two exercises.
    (c) Covered Military Exercises.--A military exercise referred to in 
this section is a military exercise conducted by the Department of 
Defense, during the period beginning on January 1, 1999, and ending on 
September 30, 1999--
        (1) under the training exercises program known as the ``CJCS 
    Exercise Program'';
        (2) at the Naval Strike and Air Warfare Center, the Army 
    National Training Center, or the Air Force Air Warfare Center; or
        (3) as part of Naval Carrier Group fleet training or Marine 
    Corps Expeditionary Unit training.
    (d) Alternative Testing Method.--In the case of an information 
technology or national security system for which a simulated year 2000 
test as part of a military exercise described in subsection (c) is not 
feasible or presents undue risk, the Secretary of Defense shall test 
the system using a functional end-to-end test or through a Defense 
Major Range and Test Facility Base. The Secretary shall include the 
plans for these tests in the plan required by subsection (a). Tests 
under this subsection are in addition to the 25 tests required by 
subsection (b).
    (e) Authority for Exclusion of Systems Not Capable of Performing 
Reliably in Year 2000 Simulation.--(1) In carrying out a year 2000 
simulation exercise, the Secretary of Defense may exclude a particular 
information technology or national security system from the year 2000 
simulation phase of the exercise if the Secretary determines that the 
system would be incapable of performing reliably during the year 2000 
simulation phase of the exercise. In such a case, the system excluded 
shall be replaced in accordance with the year 2000 contingency plan for 
the system.
    (2) If the Secretary of Defense excludes an information technology 
or national security system from the year 2000 simulation phase of an 
exercise as provided in paragraph (1), the Secretary shall notify 
Congress of that exclusion not later than two weeks before commencing 
that exercise. The notice shall include a list of each information 
technology or national security system excluded from the exercise, a 
description of how the exercise will use the year 2000 contingency plan 
for each such system, and a description of the effect that continued 
year 2000 noncompliance of each such system would have on military 
readiness.
    (3) An information technology or national security system with 
cryptological applications that is not capable of having its internal 
clock adjusted forward to a simulated later time is exempt from the 
year 2000 simulation phase of an exercise under this section.
    (f) Comptroller General Review.--Not later than January 30, 1999, 
the Comptroller General shall review the report and plan submitted 
under subsection (a) and submit to Congress a briefing evaluating the 
methodology to be used under the plan to simulate the year 2000 and 
describing the potential information that will be collected as a result 
of implementation of the plan, the adequacy of the planned tests, and 
the impact that the plan will have on military readiness.
    (g) Definitions.--For the purposes of this section:
        (1) The term ``information technology'' has the meaning given 
    that term in section 5002 of the Clinger-Cohen Act of 1996 (40 
    U.S.C. 1401).
        (2) The term ``national security system'' has the meaning given 
    that term in section 5142 of such Act (40 U.S.C. 1452).
        (3) The term ``mission critical system'' means an information 
    technology or national security system that is designated as 
    mission critical in the May 1998 Department of Defense quarterly 
    report on the status of year 2000 compliance.

SEC. 335. CONTINUITY OF ESSENTIAL OPERATIONS AT RISK OF FAILURE BECAUSE 
              OF INFORMATION TECHNOLOGY AND NATIONAL SECURITY SYSTEMS 
              THAT ARE NOT YEAR 2000 COMPLIANT.

    (a) Report Required.--Not later than March 31, 1999, the Secretary 
of Defense and the Director of Central Intelligence shall jointly 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the plans of the Department of Defense and the intelligence 
community for ensuring the continuity of performance of essential 
operations that are at risk of failure because of information 
technology and national security systems that are not year 2000 
compliant.
    (b) Content.--The report shall contain, at a minimum, the 
following:
        (1) A prioritization of mission critical systems to ensure that 
    the most critical systems have the highest priority for efforts to 
    reprogram information technology and national security systems to 
    be year 2000 compliant.
        (2) A discussion of the private and other public information 
    and support systems relied on by the national security community, 
    including the intelligence community, and the efforts under way to 
    ensure that those systems are year 2000 compliant.
        (3) The efforts under way to repair the underlying operating 
    systems and infrastructure.
        (4) The plans for comprehensive testing of Department of 
    Defense systems, including simulated operational tests in mission 
    areas.
        (5) A comprehensive contingency plan, for the entire national 
    security community, which provides for resolving emergencies 
    resulting from a system that is not year 2000 compliant and 
    includes provision for the creation of crisis action teams for use 
    in resolving such emergencies.
        (6) A discussion of the efforts undertaken to ensure the 
    continued reliability of service on the systems used by the 
    President and other leaders of the United States for communicating 
    with the leaders of other nations.
        (7) A discussion of the vulnerability of allied armed forces to 
    the failure of systems that are not, or have critical components 
    that are not, year 2000 compliant, together with an assessment of 
    the potential problems for interoperability among the Armed Forces 
    of the United States and allied armed forces because of the 
    potential for failure of such systems.
        (8) An estimate of the total cost of making information 
    technology and national security systems of the Department of 
    Defense and the intelligence community year 2000 compliant.
        (9) The countries that have critical computer-based systems any 
    disruption of which, due to not being year 2000 compliant, would 
    cause a significant potential national security risk to the United 
    States.
        (10) A discussion of the cooperative arrangements between the 
    United States and other nations to assist those nations in 
    identifying and correcting (to the extent necessary to meet 
    national security interests of the United States) any problems in 
    their communications and strategic systems, or other systems 
    identified by the Secretary of Defense, that make the systems not 
    year 2000 compliant.
        (11) A discussion of the threat posed to the national security 
    interests of the United States from any potential failure of 
    strategic systems of foreign countries that are not year 2000 
    compliant.
    (c) International Cooperative Arrangements.--The Secretary of 
Defense, with the concurrence of the Secretary of State, may enter into 
a cooperative arrangement with a representative of any foreign 
government to provide for the United States to assist the foreign 
government in identifying and correcting (to the extent necessary to 
meet national security interests of the United States) any problems in 
communications, strategic, or other systems of that foreign government 
that render the systems not year 2000 compliant.
    (d) Definitions.--In this section:
        (1) The term ``year 2000 compliant'', with respect to an 
    information technology or national security system of the United 
    States or a computer-based system of a foreign government, means 
    that the system correctly recognizes dates in years after 1999 as 
    being dates after 1999 for the purposes of system functions for 
    which the correct date is relevant to the performance of the 
    functions, consistent with certification level 1a, 1b, or 2 (as 
    prescribed in the April 1997 publication of the Department of 
    Defense entitled ``Year 2000 Management Plan'').
        (2) The term ``information technology'' has the meaning given 
    that term by section 5002 of the Clinger-Cohen Act of 1996 (40 
    U.S.C. 1401).
        (3) The term ``national security system'' has the meaning given 
    that term by section 5142 of the Clinger-Cohen Act of 1996 (40 
    U.S.C. 1452).

         Subtitle E--Defense Infrastructure Support Improvement

SEC. 341. CLARIFICATION OF DEFINITION OF DEPOT-LEVEL MAINTENANCE AND 
              REPAIR.

    Section 2460(a) of title 10, United States Code, is amended by 
inserting before the period at the end of the first sentence the 
following: ``or the location at which the maintenance or repair is 
performed''.

SEC. 342. REPORTING AND ANALYSIS REQUIREMENTS BEFORE CHANGE OF 
              COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO PRIVATE 
              SECTOR PERFORMANCE.

    (a) In General.--Section 2461 of title 10, United States Code, is 
amended--
        (1) by redesignating subsections (c) and (g) as subsections (g) 
    and (h), respectively, and transferring subsection (g), as so 
    redesignated, to appear after subsection (f); and
        (2) by striking out subsections (a) and (b) and inserting in 
    lieu thereof the following new subsections:
    ``(a) Reporting and Analysis Requirements as Precondition to Change 
in Performance.--A commercial or industrial type function of the 
Department of Defense that, as of October 1, 1980, was being performed 
by Department of Defense civilian employees may not be changed to 
performance by the private sector until the Secretary of Defense fully 
complies with the reporting and analysis requirements specified in 
subsections (b) and (c).
    ``(b) Notification and Elements of Analysis.--(1) Before commencing 
to analyze a commercial or industrial type function described in 
subsection (a) for possible change to performance by the private 
sector, the Secretary of Defense shall submit to Congress a report 
containing the following:
        ``(A) The function to be analyzed for possible change.
        ``(B) The location at which the function is performed by 
    Department of Defense civilian employees.
        ``(C) The number of civilian employee positions potentially 
    affected.
        ``(D) The anticipated length and cost of the analysis.
        ``(E) A certification that a proposed performance of the 
    commercial or industrial type function by persons who are not 
    civilian employees of the Department of Defense is not a result of 
    a decision by an official of a military department or Defense 
    Agency to impose predetermined constraints or limitations on such 
    employees in terms of man years, end strengths, full-time 
    equivalent positions, or maximum number of employees.
    ``(2) The duty to prepare a report under paragraph (1) may be 
delegated. A report prepared below the major command or claimant level 
of a military department, or below the equivalent level in a Defense 
Agency, pursuant to any such delegation shall be reviewed at the major 
command, claimant level, or equivalent level, as the case may be, 
before submission to Congress.
    ``(3) An analysis of a commercial or industrial type function for 
possible change to performance by the private sector shall include the 
following:
        ``(A) An examination of the cost of performance of the function 
    by Department of Defense civilian employees and by one or more 
    private contractors to demonstrate whether change to performance by 
    the private sector will result in savings to the Government over 
    the life of the contract, including in the examination the 
    following:
            ``(i) The cost to the Government, estimated by the 
        Secretary of Defense (based on offers received), for 
        performance of the function by the private sector.
            ``(ii) The estimated cost to the Government of Department 
        of Defense civilian employees performing the function.
            ``(iii) In addition to the costs referred to in clause (i), 
        an estimate of all other costs and expenditures that the 
        Government would incur because of the award of such a contract.
        ``(B) An examination of the potential economic effect of 
    performance of the function by the private sector on the following:
            ``(i) Employees of the Department of Defense who would be 
        affected by such a change in performance.
            ``(ii) The local community and the Government, if more than 
        75 employees of the Department of Defense perform the function.
        ``(C) An examination of the effect of performance of the 
    function by the private sector on the military mission associated 
    with the performance of the function.
    ``(4)(A) A representative individual or entity at a facility where 
a commercial or industrial type function is analyzed for possible 
change in performance may submit to the Secretary of Defense an 
objection to the analysis on the grounds that the report required by 
paragraph (1) has not been submitted or that the certification required 
by paragraph (1)(E) is not included in the report submitted as a 
condition for the analysis. The objection shall be in writing and shall 
be submitted within 90 days after the following date:
        ``(i) In the case of a failure to submit the report when 
    required, the date on which the representative individual or an 
    official of the representative entity authorized to pose the 
    objection first knew or should have known of that failure.
        ``(ii) In the case of a failure to include the certification in 
    a submitted report, the date on which the report was submitted to 
    Congress.
    ``(B) If the Secretary determines that the report required by 
paragraph (1) was not submitted or that the required certification was 
not included in the submitted report, the commercial or industrial type 
function covered by the analysis to which objected may not be the 
subject of a solicitation of offers for, or award of, a contract until, 
respectively, the report is submitted or a report containing the 
certification in full compliance with the certification requirement is 
submitted.
    ``(c) Notification of Decision.--(1) If, as a result of the 
completion of the examinations under subsection (b)(3), a decision is 
made to change the commercial or industrial type function that was the 
subject of the analysis to performance by the private sector, the 
Secretary of Defense shall submit to Congress a report describing that 
decision. The report shall contain the following:
        ``(A) An indication that the examinations required under 
    subsection (b)(3) have been completed.
        ``(B) The Secretary's certification that the Government 
    calculation of the cost of performance of the function by 
    Department of Defense civilian employees is based on an estimate of 
    the most cost effective manner for performance of the function by 
    Department of Defense civilian employees.
        ``(C) The Secretary's certification that the examination 
    required by subsection (b)(3)(A) as part of the analysis 
    demonstrates that the performance of the function by the private 
    sector will result in savings to the Government over the life of 
    the contract.
        ``(D) The Secretary's certification that the entire analysis is 
    available for examination.
        ``(E) A schedule for completing the change to performance of 
    the function by the private sector.
    ``(2) The change of the function to contractor performance may not 
begin until after the submission of the report required by this 
subsection.''.
    (b) Definition of Small Function for Waiver Purposes.--Subsection 
(d) of section 2461 of title 10, United States Code, is amended by 
striking out ``20'' and inserting in lieu thereof ``50''.
    (c) Conforming Amendments.--(1) Subsections (d) and (e) of section 
2461 of title 10, United States Code, are amended by inserting ``and 
subsection (g)'' after ``Subsections (a) through (c)''.
    (2) Subsections (e)(2) and (f)(1) of such section are amended by 
striking out ``converted'' and inserting in lieu thereof ``changed''.
    (3) Subsection (f)(2) of such section is amended by striking out 
``conversion'' and inserting in lieu thereof ``change''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, but the amendments 
shall not apply with respect to a conversion of a function of the 
Department of Defense to performance by a private contractor concerning 
which the Secretary of Defense provided to Congress, before the date of 
the enactment of this Act, a notification under paragraph (1) of 
section 2461(a) of title 10, United States Code, as in effect on the 
day before the date of the enactment of this Act.

SEC. 343. NOTIFICATIONS OF DETERMINATIONS OF MILITARY ITEMS AS BEING 
              COMMERCIAL ITEMS FOR PURPOSES OF THE EXCEPTION TO 
              REQUIREMENTS REGARDING CORE LOGISTICS CAPABILITIES.

    (a) Requirement.--Section 2464 of title 10, United States Code, is 
amended by adding at the end the following:
    ``(c) Notification of Determinations Regarding Certain Commercial 
Items.--The first time that a weapon system or other item of military 
equipment described in subsection (a)(3) is determined to be a 
commercial item for the purposes of the exception contained in that 
subsection, the Secretary of Defense shall submit to Congress a 
notification of the determination, together with the justification for 
the determination. The justification for the determination shall 
include, at a minimum, the following:
        ``(1) The estimated percentage of commonality of parts of the 
    version of the item that is sold or leased in the commercial 
    marketplace and the Government's version of the item.
        ``(2) The value of any unique support and test equipment and 
    tools that are necessary to support the military requirements if 
    the item were maintained by the Government.
        ``(3) A comparison of the estimated life cycle logistics 
    support costs that would be incurred by the Government if the item 
    were maintained by the private sector with the estimated life cycle 
    logistics support costs that would be incurred by the Government if 
    the item were maintained by the Government.''.
    (b) Applicability.--Subsection (c) of section 2464 of title 10, 
United States Code (as added by subsection (a)), shall apply with 
respect to determinations made after the date of the enactment of this 
Act.

SEC. 344. OVERSIGHT OF DEVELOPMENT AND IMPLEMENTATION OF AUTOMATED 
              IDENTIFICATION TECHNOLOGY.

    (a) Definitions.--In this section:
        (1) The term ``automated identification technology program'' 
    means a program in the Department of Defense, including any pilot 
    program, employing one or more of the following technologies:
            (A) Magnetic stripe.
            (B) Bar codes, both linear and two-dimensional (including 
        matrix symbologies).
            (C) Smart Card.
            (D) Optical memory.
            (E) Personal computer memory card international association 
        carriers.
            (F) Any other established or emerging automated 
        identification technology, including biometrics and radio 
        frequency identification.
        (2) The term ``Smart Card'' means a credit card size device 
    that contains one or more integrated circuits.
    (b) Establishment of Automated Identification Technology Office.--
(1) The Secretary of Defense shall establish an Automated 
Identification Technology Office within the Department of Defense that 
shall be responsible for--
        (A) overseeing the development and implementation of all 
    automated identification technology programs in the Department; and
        (B) coordinating automated identification technology programs 
    with the Joint Staff, the Secretaries of the military departments, 
    and the directors of the Defense Agencies.
    (2) After the date of the enactment of this Act, funds appropriated 
for the Department of Defense may not be obligated for an automated 
identification technology program unless the program has been reviewed 
and approved by the Automated Identification Technology Office. Pending 
the establishment of the Automated Identification Technology Office, 
the review and approval of a program by the Smart Card Technology 
Office of the Defense Human Resources Field Activity of the Department 
of Defense shall be sufficient to satisfy the requirements of this 
paragraph even if the approval was given before the date of the 
enactment of this Act.
    (3) As part of its oversight responsibilities, the Automated 
Identification Technology Office shall establish standards designed--
        (A) to ensure the compatibility and interoperability of 
    automated identification technology programs in the Department of 
    Defense; and
        (B) to identify and terminate redundant, infeasible, or 
    uneconomical automated identification technology programs.
    (c) Funding for Increased Use of Smart Cards.--(1) Of the funds 
available for the Navy for fiscal year 1999 for operation and 
maintenance, the Secretary of the Navy shall allocate sufficient 
amounts, up to $25,000,000, for the purpose of making significant 
progress toward ensuring that Smart Cards with a multi-application, 
multi-technology automated reading capability are issued and used 
throughout the Navy and the Marine Corps for purposes for which Smart 
Cards are suitable.
    (2) Not later than June 30, 1999, the Secretary of the Navy shall 
equip with Smart Card technology at least one carrier battle group, one 
carrier air wing, and one amphibious readiness group (including the 
Marine Corps units embarked on the vessels of such battle and readiness 
groups) in each of the United States Atlantic Command and the United 
States Pacific Command.
    (3) None of the funds appropriated pursuant to any authorization of 
appropriations in this Act may be expended after June 30, 1999, for the 
procurement of the Joint Uniformed Services Identification card for 
members of the Navy or the Marine Corps or for the issuance of such 
card to such members, until the Secretary of the Navy certifies in 
writing to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives that the 
Secretary has completed the issuance of Smart Cards in accordance with 
paragraph (2).
    (d) Defense-Wide Plan.--Not later than March 31, 1999, the 
Secretary of Defense shall submit to the congressional defense 
committees a plan for the use of Smart Card technology by each military 
department. The Secretary shall include in the plan an estimate of the 
costs of the plan, the savings to be derived from carrying out the 
plan, and a description of the ways in which the Department of Defense 
will review and revise business practices to take advantage of Smart 
Card technology.

SEC. 345. CONTRACTOR-OPERATED CIVIL ENGINEERING SUPPLY STORES PROGRAM.

    (a) Definitions.--In this section:
        (1) The term ``contractor-operated civil engineering supply 
    store'' means a Government-owned facility that, as of the date of 
    the enactment of this Act, is operated by a contractor under the 
    contractor-operated civil engineering supply store program of the 
    Department of the Air Force (known as the ``COCESS program'') for 
    the purpose of--
            (A) maintaining inventories of civil engineering supplies 
        on behalf of a military department; and
            (B) furnishing such supplies to the department as needed.
        (2) The term ``civil engineering supplies'' means parts and 
    supplies needed for the repair and maintenance of military 
    installations.
    (b) Findings.--Congress finds the following:
        (1) In 1970, the Strategic Air Command of the Air Force began 
    to use contractor-operated civil engineering supply stores to 
    improve the efficiency and effectiveness of materials management 
    and relieve the Air Force from having to maintain large inventories 
    of civil engineering supplies.
        (2) Contractor-operated civil engineering supply stores are 
    designed to support the civil engineering and public works efforts 
    of the Armed Forces through the provision of quality civil 
    engineering supplies at competitive prices and within a reasonable 
    period of time.
        (3) Through the use of a contractor-operated civil engineering 
    supply store, a guaranteed inventory level of civil engineering 
    supplies is maintained at a military installation, which ensures 
    that urgently needed civil engineering supplies are available on 
    site.
        (4) The contractor operating the contractor-operated civil 
    engineering supply store is an independent business organization 
    whose customer is a military department and the Armed Forces and 
    who is subject to all the rules of private business and the 
    regulations of the Government.
        (5) The use of contractor-operated civil engineering supply 
    stores ensures the best price and best buy for the Government.
        (6) Ninety-five percent of the cost savings realized through 
    the use of contractor-operated civil engineering supply stores is 
    due to savings in the cost of actually procuring supplies.
        (7) In the past 30 years, private contractors have never lost a 
    cost comparison conducted pursuant to the criteria set forth in 
    Office of Management and Budget Circular A-76 for the provision of 
    civil engineering supplies to the Government.
    (c) Conditions on Multi-Function Contracts.--A civil engineering 
supplies function that is performed, as of the date of the enactment of 
this Act, by a contractor-operated civil engineering supply store may 
not be combined with another supply function or any service function, 
including any base operating support function, for purposes of 
competition or contracting, until 60 days after the date on which the 
Secretary of Defense submits to Congress a report--
        (1) notifying Congress of the proposed combined competition or 
    contract; and
        (2) explaining why a combined competition or contract is the 
    best method by which to achieve cost savings and efficiencies to 
    the Government.
    (d) GAO Reviews.--Not later than 50 days after the date on which 
the Secretary of Defense submits a report to Congress under subsection 
(c), the Comptroller General shall review the report and submit to 
Congress a briefing regarding whether the cost savings and efficiencies 
identified in the report are achievable.
    (e) Relationship to Other Laws.--If a civil engineering supplies 
function covered by subsection (c) is proposed for combination with a 
supply or service function that is subject to the study and reporting 
requirements of section 2461 of title 10, United States Code, the 
Secretary of Defense may include the report required under subsection 
(c) as part of the report under such section.

SEC. 346. CONDITIONS ON EXPANSION OF FUNCTIONS PERFORMED UNDER PRIME 
              VENDOR CONTRACTS FOR DEPOT-LEVEL MAINTENANCE AND REPAIR.

    (a) Conditions on Expanded Use.--The Secretary of Defense or the 
Secretary of a military department, as the case may be, may not enter 
into a prime vendor contract for depot-level maintenance and repair of 
a weapon system or other military equipment described in section 
2464(a)(3) of title 10, United States Code, before the end of the 30-
day period beginning on the date on which the Secretary submits to 
Congress a report, specific to the proposed contract, that--
        (1) describes the competitive procedures to be used to award 
    the prime vendor contract; and
        (2) contains an analysis of costs and benefits that 
    demonstrates that use of the prime vendor contract will result in 
    savings to the Government over the life of the contract.
    (b) Definitions.--In this section:
        (1) The term ``prime vendor contract'' means an innovative 
    contract that gives a defense contractor the responsibility to 
    manage, store, and distribute inventory, manage and provide 
    services, or manage and perform research, on behalf of the 
    Department of Defense on a frequent, regular basis, for users 
    within the Department on request. The term includes contracts 
    commonly referred to as prime vendor support contracts, flexible 
    sustainment contracts, and direct vendor delivery contracts.
        (2) The term ``depot-level maintenance and repair'' has the 
    meaning given such term in section 2460 of title 10, United States 
    Code.
    (c) Relationship to Other Laws.--Nothing in this section shall be 
construed to exempt a prime vendor contract from the requirements of 
section 2461 of title 10, United States Code, or any other provision of 
chapter 146 of such title.

SEC. 347. BEST COMMERCIAL INVENTORY PRACTICES FOR MANAGEMENT OF 
              SECONDARY SUPPLY ITEMS.

    (a) Development and Submission of Schedule.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of each 
military department shall submit to Congress a schedule for 
implementing within the military department, for secondary supply items 
managed by that military department, inventory practices identified by 
the Secretary as being the best commercial inventory practices for the 
acquisition and distribution of such supply items consistent with 
military requirements. The schedule shall provide for the 
implementation of such practices to be completed not later than five 
years after the date of the enactment of this Act.
    (b) Definition.--For purposes of this section, the term ``best 
commercial inventory practice'' includes cellular repair processes, use 
of third-party logistics providers, and any other practice that the 
Secretary of the military department determines will enable the 
military department to reduce inventory levels while improving the 
responsiveness of the supply system to user needs.
    (c) GAO Reports on Military Department and Defense Logistics Agency 
Schedules.--(1) Not later than 240 days after the date of the enactment 
of this Act, the Comptroller General shall submit to Congress a report 
evaluating the extent to which the Secretary of each military 
department has complied with the requirements of this section.
    (2) Not later than 18 months after the date on which the Director 
of the Defense Logistics Agency submits to Congress a schedule for 
implementing best commercial inventory practices under section 395 of 
the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1718; 10 U.S.C. 2458 note), the Comptroller General 
shall submit to Congress an evaluation of the extent to which best 
commercial inventory practices are being implemented in the Defense 
Logistics Agency in accordance with that schedule.

SEC. 348. PERSONNEL REDUCTIONS IN ARMY MATERIEL COMMAND.

    Not later than March 31, 1999, the Comptroller General shall submit 
to the congressional defense committees a report concerning--
        (1) the effect that the quadrennial defense review's proposed 
    personnel reductions in the Army Materiel Command will have on 
    workload and readiness if implemented; and
        (2) the projected cost savings from such reductions and the 
    manner in which such savings are expected to be achieved.

SEC. 349. INVENTORY MANAGEMENT OF IN-TRANSIT ITEMS.

    (a) Requirement for Plan.--Not later than March 1, 1999, the 
Secretary of Defense shall submit to Congress a comprehensive plan to 
ensure visibility over all in-transit end items and secondary items.
    (b) End Items.--The plan required by subsection (a) shall address 
the specific mechanisms to be used to enable the Department of Defense 
to identify at any time the quantity and location of all end items.
    (c) Secondary Items.--The plan required by subsection (a) shall 
address the following problems with Department of Defense management of 
inventories of in-transit secondary items:
        (1) The vulnerability of in-transit secondary items to loss 
    through fraud, waste, and abuse.
        (2) Loss of oversight of in-transit secondary items, including 
    any loss of oversight when items are being transported by 
    commercial carriers.
        (3) Loss of accountability for in-transit secondary items due 
    to either a delay of delivery of the items or a lack of 
    notification of a delivery of the items.
    (d) Content of Plan.--The plan shall include for subsection (b) and 
for each of the problems described in subsection (c) the following 
information:
        (1) The actions to be taken by the Department.
        (2) Statements of objectives.
        (3) Performance measures and schedules.
        (4) An identification of any resources necessary for 
    implementing the required actions, together with an estimate of the 
    annual costs.
    (e) GAO Reviews.--(1) Not later than 60 days after the date on 
which the Secretary of Defense submits the plan to Congress, the 
Comptroller General shall review the plan and submit to Congress any 
comments that the Comptroller General considers appropriate regarding 
the plan.
    (2) The Comptroller General shall monitor any implementation of the 
plan and, not later than 1 year after the date referred to in paragraph 
(1), submit to Congress an assessment of the extent to which the plan 
has been implemented.

SEC. 350. REVIEW OF DEFENSE AUTOMATED PRINTING SERVICE FUNCTIONS.

    (a) Review Required.--The Secretary of Defense shall provide for a 
review of the functions of the Defense Automated Printing Service in 
accordance with this section and shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives the matters required under subsection (f) not 
later than March 31, 1999.
    (b) Performance by Independent Entity.--The Secretary of Defense 
shall select the General Accounting Office, an experienced entity in 
the private sector, or any other entity outside the Department of 
Defense to perform the review under this section. The Comptroller 
General shall perform the review if the Secretary selects the 
Comptroller General to do so.
    (c) Consultation.--Regardless of the entity selected by the 
Secretary under subsection (b) to perform the review, the entity shall 
perform the review in consultation with persons in the private sector 
who have expertise and experience in performing in the private sector 
functions similar to the functions performed by the Defense Automated 
Printing Service. If such a person obtains any privileged information 
(as defined by the Secretary of Defense) as a result of participating 
in the review, the person may not receive a contract, either through 
the Department of Defense or the Government Printing Office, to provide 
services for the Department of Defense similar to the functions 
performed by the Defense Automated Printing Service for a one-year 
period beginning on the date the report is submitted to the Secretary 
of Defense under subsection (e).
    (d) Elements of Review.--In performing the review under this 
section, the entity selected under subsection (b) shall specifically 
address the following:
        (1) The functions performed by the Defense Automated Printing 
    Service.
        (2) The functions of the Defense Automated Printing Service 
    that are inherently national security functions and, as such, need 
    to be performed within the Department of Defense.
        (3) The functions of the Defense Automated Printing Service 
    that are appropriate for transfer to another appropriate entity to 
    perform, including a private sector entity.
        (4) The appropriate management structure of the Defense 
    Automated Printing Service, the effectiveness of the current 
    structure of the Defense Automated Printing Service in supporting 
    current and future customer requirements, and any plans to address 
    any deficiencies in supporting such requirements.
        (5) The current and future requirements of customers of the 
    Defense Automated Printing Service.
        (6) The best business practices that are used by the Defense 
    Automated Printing Service and other best business practices that 
    could be used by the Defense Automated Printing Service.
        (7) Options for maximizing the Defense Automated Printing 
    Service structure and services to provide the most cost effective 
    service to its customers.
    (e) Report on Results of Review.--The entity performing the review 
under this section shall submit to the Secretary of Defense a report 
that sets forth the results of the review. In addition to specifically 
addressing the matters specified in subsection (d), the report shall 
also include the following:
        (1) A list of all sites where functions of the Defense 
    Automated Printing Service are performed by the Defense Automated 
    Printing Service.
        (2) The total number of the personnel employed by the Defense 
    Automated Printing Service and the locations where the personnel 
    perform the duties as employees.
        (3) For each site identified under paragraph (1), an assessment 
    of each type of equipment at the site.
        (4) The types and explanation of the networking and technology 
    integration linking all of the sites referred to in paragraph (1).
        (5) For each function of the Defense Automated Printing Service 
    determined to be an inherently national security function under 
    subsection (d)(2), a detailed justification for the determination.
        (6) For each function of the Defense Automated Printing Service 
    determined to be appropriate for transfer under subsection (d)(3), 
    a detailed assessment of the costs or savings associated with the 
    transfer.
    (f) Review and Comments of Secretary of Defense.--(1) After 
reviewing the report submitted under subsection (e), the Secretary of 
Defense shall submit the report to Congress. The Secretary shall 
include with the report the following:
        (1) The Secretary's comments and recommendations regarding the 
    report.
        (2) A plan to transfer to another appropriate entity, or 
    contract with another appropriate entity for, the performance of 
    the functions of the Defense Automated Printing Service that--
            (A) are not identified in the review as being inherently 
        national security functions; and
            (B) the Secretary believes should be transferred or 
        contracted for performance outside the Department of Defense in 
        accordance with law.
        (3) Any recommended legislation and any administrative action 
    that is necessary for transferring or contracting for the 
    performance of the functions.
    (g) Extension of Requirement for Competitive Procurement of 
Services.--Section 351(a) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266), as amended by 
section 351(a) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2490) and section 387(a)(1) of 
the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1713), is further amended by striking out ``1998'' 
and inserting in lieu thereof ``1999''.

SEC. 351. DEVELOPMENT OF PLAN FOR ESTABLISHMENT OF CORE LOGISTICS 
              CAPABILITIES FOR MAINTENANCE AND REPAIR OF C-17 AIRCRAFT.

    (a) Plan Required.--Not later than March 1, 1999, the Secretary of 
the Air Force shall submit to Congress a plan for the establishment of 
the core logistics capabilities for the C-17 aircraft consistent with 
the requirements of section 2464 of title 10, United States Code.
    (b) Effect on Existing Contract.--After March 1, 1999, the 
Secretary of the Air Force may not extend the Interim Contract for the 
C-17 Flexible Sustainment Program before the end of the 60-day period 
beginning on the date on which the plan required by subsection (a) is 
received by Congress.
    (c) Comptroller General Review.--During the period specified in 
subsection (b), the Comptroller General shall review the plan required 
under subsection (a) and submit to Congress a report evaluating the 
merits of the plan.

  Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 361. CONTINUATION OF MANAGEMENT AND FUNDING OF DEFENSE COMMISSARY 
              AGENCY THROUGH THE OFFICE OF THE SECRETARY OF DEFENSE.

    (a) Management and Funding Responsibilities.--Section 192 of title 
10, United States Code, is amended by adding at the end the following 
new subsection:
    ``(d) Special Rule for Defense Commissary Agency.--Notwithstanding 
the results of any periodic review under subsection (c) with regard to 
the Defense Commissary Agency, the Secretary of Defense may not 
transfer to the Secretary of a military department the responsibility 
to manage and fund the provision of services and supplies provided by 
the Defense Commissary Agency unless the transfer of the management and 
funding responsibility is specifically authorized by a law enacted 
after the date of the enactment of this subsection.''.
    (b) Governing Board.--Section 2482 of such title is amended by 
adding at the end the following new subsection:
    ``(c) Governing Board.--(1) Notwithstanding section 192(d) of this 
title, the Secretary of Defense shall establish a governing board for 
the commissary system to provide advice to the Secretary regarding the 
prudent operation of the commissary system and to assist in the overall 
supervision of the Defense Commissary Agency. The Secretary may 
authorize the board to have such supervisory authority as the Secretary 
considers appropriate to permit the board to carry out its 
responsibilities.
    ``(2) The Secretary of Defense shall determine the membership of 
the governing board, which shall include, at a minimum, appropriate 
representatives from each military department.
    ``(3) The governing board shall be accountable only to the 
Secretary of Defense and to the civilian officer of the Department of 
Defense who is assigned the responsibility for the overall supervision 
of the Defense Commissary Agency pursuant to section 192(a) of this 
title. The Director of the Defense Commissary Agency shall be 
accountable to and report to the board.''.

SEC. 362. EXPANSION OF CURRENT ELIGIBILITY OF RESERVES FOR COMMISSARY 
              BENEFITS.

    (a) Days of Eligibility for Ready Reserve Members With 50 
Creditable Points.--Section 1063 of title 10, United States Code, is 
amended--
        (1) by striking out subsection (b); and
        (2) in subsection (a)--
            (A) by striking out ``(1)'';
            (B) by striking out ``12 days of eligibility'' and 
        inserting in lieu thereof ``24 days of eligibility''; and
            (C) by striking out ``(2) Paragraph (1)'' and inserting in 
        lieu thereof ``(b) Effect of Compensation or Type of Duty.--
        Subsection (a)''.
    (b) Days of Eligibility for Reserve Retirees Under Age 60.--Section 
1064 of such title is amended by striking out ``for 12 days each 
calendar year'' and inserting in lieu thereof ``for 24 days each 
calendar year''.
    (c) Eligibility of Members of National Guard Serving in Federally 
Declared Disaster.--Chapter 54 of such title is amended by inserting 
after section 1063 the following new section:

``Sec. 1063a. Use of commissary stores and MWR retail facilities: 
            members of National Guard serving in federally declared 
            disaster

    ``(a) Eligibility of Members.--A member of the National Guard who, 
although not in Federal service, is called or ordered to duty in 
response to a federally declared disaster shall be permitted to use 
commissary stores and MWR retail facilities during the period of such 
duty on the same basis as members of the armed forces on active duty.
    ``(b) Eligibility of Dependents.--A dependent of a member of the 
National Guard who is permitted under subsection (a) to use commissary 
stores and MWR retail facilities shall be permitted to use such stores 
and facilities, during the same period as the member, on the same basis 
as dependents of members of the armed forces on active duty.
    ``(c) Definitions.--In this section:
        ``(1) Federally declared disaster.--The term `federally 
    declared disaster' means a disaster or other situation for which a 
    Presidential declaration of major disaster is issued under section 
    401 of the Robert T. Stafford Disaster Relief and Emergency 
    Assistance Act (42 U.S.C. 5170).
        ``(2) MWR retail facilities.--The term `MWR retail facilities' 
    has the meaning given that term in section 1065(e) of this 
    title.''.
    (d) Section Headings.--(1) The heading of section 1063 of such 
title is amended to read as follows:

``Sec. 1063. Use of commissary stores: members of Ready Reserve with at 
            least 50 creditable points''.

    (2) The heading of section 1064 of such title is amended to read as 
follows:

``Sec. 1064. Use of commissary stores: persons qualified for retired 
            pay under chapter 1223 but under age 60''.

    (e) Clerical Amendment.--The table of sections at the beginning of 
chapter 54 of such title is amended by striking out the items relating 
to sections 1063 and 1064 and inserting in lieu thereof the following 
items:
``1063. Use of commissary stores: members of Ready Reserve with at least 
          50 creditable points.
``1063a. Use of commissary stores and MWR retail facilities: members of 
          National Guard serving in federally declared disaster.
``1064. Use of commissary stores: persons qualified for retired pay 
          under chapter 1223 but under age 60.''.

SEC. 363. COSTS PAYABLE TO THE DEPARTMENT OF DEFENSE AND OTHER FEDERAL 
              AGENCIES FOR SERVICES PROVIDED TO THE DEFENSE COMMISSARY 
              AGENCY.

    (a) Limitation.--Section 2482(b)(1) of title 10, United States 
Code, is amended by adding at the end the following: ``However, the 
Defense Commissary Agency may not pay for any such service provided by 
the United States Transportation Command any amount that exceeds the 
price at which the service could be procured through full and open 
competition, as such term is defined in section 4(6) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(6)).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to services provided or obtained on or after the 
date of the enactment of this Act.

SEC. 364. COLLECTION OF DISHONORED CHECKS PRESENTED AT COMMISSARY 
              STORES.

    Section 2486 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) Collection of Dishonored Checks.--(1) The Secretary of 
Defense may impose a charge for the collection of a check accepted at a 
commissary store that is not honored by the financial institution on 
which the check is drawn. The imposition and amounts of charges shall 
be consistent with practices of commercial grocery stores regarding 
dishonored checks.
    ``(2)(A) The following persons are liable to the United States for 
the amount of a check referred to in paragraph (1) that is returned 
unpaid to the United States, together with any charge imposed under 
that paragraph:
        ``(i) The person who presented the check.
        ``(ii) Any person whose status and relationship to the person 
    who presented the check provide the basis for that person's 
    eligibility to make purchases at a commissary store.
    ``(B) Any amount for which a person is liable under subparagraph 
(A) may be collected by deducting and withholding such amount from any 
amounts payable to that person by the United States.
    ``(3) Amounts collected as charges imposed under paragraph (1) 
shall be credited to the commissary trust revolving fund.
    ``(4) Appropriated funds may be used to pay any costs incurred in 
the collection of checks and charges referred to in paragraph (1). An 
appropriation account charged a cost under the preceding sentence shall 
be reimbursed the amount of that cost out of funds in the commissary 
trust revolving fund.
    ``(5) In this subsection, the term `commissary trust revolving 
fund' means the trust revolving fund maintained by the Department of 
Defense for surcharge collections and proceeds of sales of commissary 
stores.''.

SEC. 365. RESTRICTIONS ON PATRON ACCESS TO, AND PURCHASES IN, OVERSEAS 
              COMMISSARIES AND EXCHANGE STORES.

    (a) Authority to Impose Restrictions; Limitations on Authority.--
Chapter 147 of title 10, United States Code, is amended by adding at 
the end the following new section:

``Sec. 2492. Overseas commissary and exchange stores: access and 
            purchase restrictions

    ``(a) General Authority.--(1) The Secretary of Defense may 
establish restrictions on the ability of eligible patrons of commissary 
and exchange stores located outside of the United States to purchase 
certain merchandise items (or the quantity of certain merchandise 
items) otherwise included within an authorized merchandise category if 
the Secretary determines that such restrictions are necessary to 
prevent the resale of such merchandise in violation of treaty 
obligations of the United States or host nation laws (to the extent 
such laws are not inconsistent with United States laws).
    ``(2) In establishing a quantity or other restriction, the 
Secretary--
        ``(A) may not discriminate among the various categories of 
    eligible patrons of the commissary and exchange system; and
        ``(B) shall ensure that the restriction is consistent with the 
    purpose of the overseas commissary and exchange system to provide 
    reasonable access for eligible patrons to purchase merchandise 
    items made in the United States.
    ``(b) Controlled Item Lists.--For each location outside the United 
States that is served by the commissary system or the exchange system, 
the Secretary of Defense may maintain a list of controlled merchandise 
items, except that, after the date of the enactment of this section, 
the Secretary may not change the list to add a merchandise item unless, 
before making the change, the Secretary submits to Congress a notice of 
the proposed addition and the reasons for the addition of the item.
    ``(c) Annual Report.--The Secretary of Defense shall submit to 
Congress an annual report describing the host nation laws and the 
treaty obligations of the United States, and the conditions within host 
nations, that necessitate the use of quantity or other restrictions on 
purchases in commissary and exchange stores located outside the United 
States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``2492. Overseas commissary and exchange stores: access and purchase 
          restrictions.''.

SEC. 366. REPEAL OF REQUIREMENT FOR AIR FORCE TO SELL TOBACCO PRODUCTS 
              TO ENLISTED PERSONNEL.

    (a) Repeal.--Section 9623 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 939 of such title is amended by striking out the item relating 
to section 9623.

SEC. 367. PROHIBITION ON CONSOLIDATION OR OTHER ORGANIZATIONAL CHANGES 
              OF DEPARTMENT OF DEFENSE RETAIL SYSTEMS.

    (a) Defense Retail Systems Defined.--For purposes of this section, 
the term ``defense retail systems'' means the defense commissary system 
and exchange stores and other revenue-generating facilities operated by 
nonappropriated fund activities of the Department of Defense for the 
morale, welfare, and recreation of members of the Armed Forces.
    (b) Prohibition.--The operation and administration of the defense 
retail systems may not be consolidated or otherwise merged unless the 
consolidation or merger is specifically authorized by a law enacted 
after the date of the enactment of this Act.
    (c) Effect on Existing Study.--Nothing in this section shall be 
construed to prohibit the study of defense retail systems, known as the 
``Joint Exchange Due Diligence Study'', which is underway on the date 
of the enactment of this Act pursuant to a contract awarded by the 
Department of the Navy on April 21, 1998, except that any 
recommendation contained in the completed study regarding the operation 
or administration of the defense retail systems may not be implemented 
unless implementation of the recommendation is specifically authorized 
by a law enacted after the date of the enactment of this Act.

SEC. 368. DEFENSE COMMISSARY AGENCY TELECOMMUNICATIONS.

    (a) Use of FTS 2000/2001.--The Secretary of Defense shall prescribe 
in regulations authority for the Defense Commissary Agency to meet its 
telecommunication requirements by obtaining telecommunication services 
and related items under the FTS 2000/2001 contract.
    (b) Report.--Upon the initiation of telecommunication service for 
the Defense Commissary Agency under the FTS 2000/2001 contract, the 
Secretary of Defense shall submit to Congress a notification that the 
service has been initiated.
    (c) Definition.--In this section, the term ``FTS 2000/2001 
contract'' means the contract for the provision of telecommunication 
services for the Federal Government that was entered into by the 
Defense Information Technology Contract Organization.

SEC. 369. SURVEY OF COMMISSARY STORE PATRONS REGARDING SATISFACTION 
              WITH COMMISSARY STORE MERCHANDISE.

    (a) Patron Survey.--The Secretary of Defense shall enter into a 
contract with a commercial survey firm to conduct a survey of eligible 
patrons of the commissary store system to determine patron satisfaction 
with the merchandise sold in commissary stores, including patron views 
on product quality, prices, assortment, and such other matters as the 
Secretary considers appropriate.
    (b) Survey Location.--The survey shall be conducted at not less 
than three military installations in the United States of each of the 
Armed Forces (other than the Coast Guard).
    (c) Report on Results.--The survey shall be completed, and the 
results submitted to the Secretary of Defense, the Committee on Armed 
Services of the Senate, and the Committee on National Security of the 
House of Representatives, not later than February 28, 1999.

                       Subtitle G--Other Matters

SEC. 371. ELIGIBILITY REQUIREMENTS FOR ATTENDANCE AT DEPARTMENT OF 
              DEFENSE DOMESTIC DEPENDENT ELEMENTARY AND SECONDARY 
              SCHOOLS.

    (a) Dependents of Members Residing in Certain Areas.--Subsection 
(a) of section 2164 of title 10, United States Code, is amended--
        (1) by designating the first sentence as paragraph (1);
        (2) by designating the second sentence as paragraph (2); and
        (3) by adding at the end of paragraph (2) (as so designated) 
    the following new sentence: ``If a member of the armed forces is 
    assigned to a remote location or is assigned to an unaccompanied 
    tour of duty, a dependent of the member who resides, on or off a 
    military installation, in a territory, commonwealth, or possession 
    of the United States, as authorized by the member's orders, may be 
    enrolled in an educational program provided by the Secretary under 
    this subsection.''.
    (b) Waiver of Five-Year Attendance Limitation.--Subsection (c)(2) 
of such section is amended by striking out subparagraph (B) and 
inserting in lieu thereof the following new subparagraph:
    ``(B) At the discretion of the Secretary, a dependent referred to 
in subparagraph (A) may be enrolled in the program for more than five 
consecutive school years if the dependent is otherwise qualified for 
enrollment, space is available in the program, and the Secretary will 
be reimbursed for the educational services provided. Any such extension 
shall cover only one school year at a time.''.
    (c) Customs Service Employee Dependents in Puerto Rico.--(1) 
Subsection (c)(1) of such section is amended--
        (A) by inserting ``(A)'' after ``(1)''; and
        (B) by adding at the end the following new subparagraph:
    ``(B) A dependent of a United States Customs Service employee who 
resides in Puerto Rico, but not on a military installation, may enroll 
in an educational program provided by the Secretary pursuant to 
subsection (a) in Puerto Rico in accordance with the same rules as 
apply to a dependent of a Federal employee residing in permanent living 
quarters on a military installation.''.
    (2) Subsection (c)(2) of such section is further amended by adding 
at the end the following new subparagraph:
    ``(D) Subparagraph (A) shall not apply to a dependent covered by 
paragraph (1)(B). No requirement under this paragraph for reimbursement 
for educational services provided for the dependent shall apply with 
respect to the dependent, except that the Secretary may require the 
United States Customs Service to reimburse the Secretary for the cost 
of the educational services provided for the dependent.''.
    (3) The amendments made by this subsection shall apply with respect 
to academic years beginning on or after the date of the enactment of 
this Act.

SEC. 372. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
              DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT 
              OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year 
1999.--Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities--
        (1) $30,000,000 shall be available only for the purpose of 
    providing educational agencies assistance (as defined in subsection 
    (d)(1)) to local educational agencies; and
        (2) $5,000,000 shall be available only for the purpose of 
    making educational agencies payments (as defined in subsection 
    (d)(2)) to local educational agencies.
    (b) Notification.--Not later than June 30, 1999, the Secretary of 
Defense shall--
        (1) notify each local educational agency that is eligible for 
    educational agencies assistance for fiscal year 1999 of that 
    agency's eligibility for such assistance and the amount of such 
    assistance for which that agency is eligible; and
        (2) notify each local educational agency that is eligible for 
    an educational agencies payment for fiscal year 1999 of that 
    agency's eligibility for such payment and the amount of the payment 
    for which that agency is eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under paragraphs (1) and (2) of subsection (a) not 
later than 30 days after the date on which notification to the eligible 
local educational agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
        (1) The term ``educational agencies assistance'' means 
    assistance authorized under section 386(b) of the National Defense 
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 
    U.S.C. 7703 note).
        (2) The term ``educational agencies payments'' means payments 
    authorized under section 386(d) of the National Defense 
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 
    U.S.C. 7703 note).
        (3) The term ``local educational agency'' has the meaning given 
    that term in section 8013(9) of the Elementary and Secondary 
    Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 373. DEPARTMENT OF DEFENSE READINESS REPORTING SYSTEM.

    (a) Establishment of System.--(1) Chapter 2 of title 10, United 
States Code, is amended by inserting after section 116 the following 
new section:

``Sec. 117. Readiness reporting system: establishment; reporting to 
            congressional committees

    ``(a) Required Readiness Reporting System.--The Secretary of 
Defense shall establish a comprehensive readiness reporting system for 
the Department of Defense. The readiness reporting system shall measure 
in an objective, accurate, and timely manner the capability of the 
armed forces to carry out--
        ``(1) the National Security Strategy prescribed by the 
    President in the most recent annual national security strategy 
    report under section 108 of the National Security Act of 1947 (50 
    U.S.C. 404a);
        ``(2) the defense planning guidance provided by the Secretary 
    of Defense pursuant to section 113(g) of this title; and
        ``(3) the National Military Strategy prescribed by the Chairman 
    of the Joint Chiefs of Staff.
    ``(b) Readiness Reporting System Characteristics.--In establishing 
the readiness reporting system, the Secretary shall ensure--
        ``(1) that the readiness reporting system is applied uniformly 
    throughout the Department of Defense;
        ``(2) that information in the readiness reporting system is 
    continually updated, with any change in the overall readiness 
    status of a unit, an element of the training establishment, or an 
    element of defense infrastructure, that is required to be reported 
    as part of the readiness reporting system, being reported within 24 
    hours of the event necessitating the change in readiness status; 
    and
        ``(3) that sufficient resources are provided to establish and 
    maintain the system so as to allow reporting of changes in 
    readiness status as required by this section.
    ``(c) Capabilities.--The readiness reporting system shall measure 
such factors relating to readiness as the Secretary prescribes, except 
that the system shall include the capability to do each of the 
following:
        ``(1) Measure, on a monthly basis, the capability of units 
    (both as elements of their respective armed force and as elements 
    of joint forces) to conduct their assigned wartime missions.
        ``(2) Measure, on a quarterly basis, the capability of training 
    establishments to provide trained and ready forces for wartime 
    missions.
        ``(3) Measure, on a quarterly basis, the capability of defense 
    installations and facilities and other elements of Department of 
    Defense infrastructure, both in the United States and abroad, to 
    provide appropriate support to forces in the conduct of their 
    wartime missions.
        ``(4) Measure, on a monthly basis, critical warfighting 
    deficiencies in unit capability.
        ``(5) Measure, on a quarterly basis, critical warfighting 
    deficiencies in training establishments and defense infrastructure.
        ``(6) Measure, on a monthly basis, the level of current risk 
    based upon the readiness reporting system relative to the 
    capability of forces to carry out their wartime missions.
    ``(d) Quarterly and Monthly Joint Readiness Reviews.--(1) The 
Chairman of the Joint Chiefs of Staff shall--
        ``(A) on a quarterly basis, conduct a joint readiness review; 
    and
        ``(B) on a monthly basis, review any changes that have been 
    reported in readiness since the previous joint readiness review.
    ``(2) The Chairman shall incorporate into both the joint readiness 
review required under paragraph (1)(A) and the monthly review required 
under paragraph (1)(B) the current information derived from the 
readiness reporting system and shall assess the capability of the armed 
forces to execute their wartime missions based upon their posture at 
the time the review is conducted. The Chairman shall submit to the 
Secretary of Defense the results of each review under paragraph (1), 
including the deficiencies in readiness identified during that review.
    ``(e) Submission to Congressional Committees.--The Secretary shall 
each month submit to the Committee on Armed Services and the Committee 
on Appropriations of the Senate and the Committee on National Security 
and the Committee on Appropriations of the House of Representatives a 
report in writing containing the results of the most recent joint 
readiness review or monthly review conducted under subsection (d), 
including the current information derived from the readiness reporting 
system. Each such report shall be submitted in unclassified form and 
may, as the Secretary determines necessary, also be submitted in 
classified form.
    ``(f) Regulations.--The Secretary shall prescribe regulations to 
carry out this section. In those regulations, the Secretary shall 
prescribe the units that are subject to reporting in the readiness 
reporting system, what type of equipment is subject to such reporting, 
and the elements of the training establishment and of defense 
infrastructure that are subject to such reporting.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 116 the 
following new item:
``117. Readiness reporting system: establishment; reporting to 
          congressional committees.''.

    (b) Implementation.--The Secretary of Defense shall establish and 
implement the readiness reporting system required by section 117 of 
title 10, United States Code, as added by subsection (a), so as to 
ensure that the capabilities required by subsection (c) of that section 
are attained not later than January 15, 2000.
    (c) Implementation Plan.--Not later than March 1, 1999, the 
Secretary of Defense shall submit to Congress a report setting forth 
the Secretary's plan for implementation of section 117 of title 10, 
United States Code, as added by subsection (a).
    (d) Repeal of Quarterly Readiness Report Requirement.--(1) 
Effective January 15, 2000, or the date on which the first report of 
the Secretary of Defense is submitted under section 117(e) of title 10, 
United States Code, as added by subsection (a), whichever is later, the 
Secretary of Defense shall cease to submit reports under section 482 of 
title 10, United States Code.
    (2) Effective June 1, 2001--
        (A) section 482 of title 10, United States Code, is repealed; 
    and
        (B) the table of sections at the beginning of chapter 23 of 
    such title is amended by striking out the item relating to that 
    section.

SEC. 374. SPECIFIC EMPHASIS OF PROGRAM TO INVESTIGATE FRAUD, WASTE, AND 
              ABUSE WITHIN DEPARTMENT OF DEFENSE.

    Section 392 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 10 U.S.C. 113 note) is amended by 
inserting before the period the following: ``and any fraud, waste, and 
abuse occurring in connection with overpayments made to vendors by the 
Department of Defense, including overpayments identified under section 
354 of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 10 U.S.C. 2461 note)''.

SEC. 375. CONDITION FOR PROVIDING FINANCIAL ASSISTANCE FOR SUPPORT OF 
              ADDITIONAL DUTIES ASSIGNED TO THE ARMY NATIONAL GUARD.

    (a) Competitive Source Selection.--Section 113(b) of title 32, 
United States Code, is amended to read as follows:
    ``(b) Covered Activities.--(1) Except as provided in paragraph (2), 
financial assistance may be provided for the performance of an activity 
by the Army National Guard under subsection (a) only if--
        ``(A) the activity is carried out in the performance of a 
    responsibility of the Secretary of the Army under paragraph (6), 
    (10), or (11) of section 3013(b) of title 10; and
        ``(B) the Army National Guard was selected to perform the 
    activity under competitive procedures that permit all qualified 
    public-sector and private-sector sources to submit offers and be 
    considered for selection to perform the activity on the basis of 
    the offers.
    ``(2) Paragraph (1)(B) does not apply to an activity that, on the 
date of the enactment of this subsection, was performed for the Federal 
Government by employees of the Federal Government or employees of a 
State.''.
    (b) Prospective Applicability.--Subsection (b)(1)(B) of section 113 
of title 32, United States Code (as added by subsection (a) of this 
section), does not apply to--
        (1) financial assistance provided under that section before 
    October 1, 1998; or
        (2) financial assistance for an activity that, before May 9, 
    1998, the Secretary of the Army identified in writing as being 
    under consideration for supporting with financial assistance under 
    that section.

SEC. 376. DEMONSTRATION PROGRAM TO IMPROVE QUALITY OF PERSONAL PROPERTY 
              SHIPMENTS OF MEMBERS.

    (a) Definition.--In this section, the term ``current demonstration 
program'' means the pilot program to improve the movement of household 
goods of members of the Armed Forces that is identified in the re-
engineering pilot solicitation of the Military Traffic Management 
Command designated as DAMTO1-97-R-3001.
    (b) Completion of Current Demonstration Program.--The Secretary of 
Defense shall complete the current demonstration program to improve the 
quality of personal property shipments within the Department of Defense 
not later than October 1, 1999.
    (c) Evaluations of Current and Alternative Demonstrations.--(1) Not 
later than August 31, 1999, the Secretary of Defense shall submit to 
Congress a report evaluating the following:
        (A) Whether the current demonstration program, as implemented, 
    meets the goals for the current demonstration program previously 
    agreed upon between the Department of Defense and representatives 
    of private sector entities involved in the transportation of 
    household goods for members of the Armed Forces, as such goals are 
    contained in the report of the Comptroller General designated as 
    report ``NSIAD 97-49''.
        (B) Whether the demonstration program contained in the proposal 
    prepared for the Secretary of Defense by private sector entities 
    involved in the transportation of household goods for members of 
    the Armed Forces as an alternative to the current demonstration 
    program would, if implemented, be likely to meet the goals for the 
    current demonstration program.
    (2) The Secretary shall also submit to Congress interim reports 
regarding the progress of the current demonstration program not later 
than January 15, 1999, and April 15, 1999.
    (d) Prohibition.--The Secretary of Defense may not exercise any 
option with respect to the current demonstration program that would 
have the effect of extending the current demonstration program after 
October 1, 1999, or otherwise continue the current demonstration 
program after that date, until the end of the 30-day period beginning 
on the date on which the Secretary submits the report required under 
subsection (c)(1).

SEC. 377. PILOT PROGRAM FOR ACCEPTANCE AND USE OF LANDING FEES CHARGED 
              FOR USE OF DOMESTIC MILITARY AIRFIELDS BY CIVIL AIRCRAFT.

    (a) Pilot Program Authorized.--The Secretary of each military 
department may carry out a pilot program during fiscal years 1999 and 
2000 to demonstrate the use of landing fees as a source of funding for 
the operation and maintenance of airfields of that department. No fee 
may be charged under the pilot program for a landing after September 
30, 2000.
    (b) Uniform Landing Fees.--The Secretary of Defense shall prescribe 
the landing fees, which shall be uniform for the military departments, 
that may be imposed under a pilot program carried out under this 
section.
    (c) Use of Proceeds.--Amounts received for a fiscal year in payment 
of landing fees imposed under the pilot program for use of a military 
airfield shall be credited to the appropriation that is available for 
that fiscal year for the operation and maintenance of the military 
airfield, shall be merged with amounts in the appropriation to which 
credited, and shall be available for that military airfield for the 
same period and purposes as the appropriation is available.
    (d) Report.--Not later than March 31, 2000, the Secretary of 
Defense shall submit to Congress a report on the pilot programs carried 
out under this section by the Secretaries of the military departments. 
The report shall specify the amounts of fees received and retained by 
each military department under its pilot program as of December 31, 
1999.

SEC. 378. STRATEGIC PLAN FOR EXPANSION OF DISTANCE LEARNING 
              INITIATIVES.

    (a) Plan Required.--The Secretary of Defense shall develop a 
strategic plan for guiding and expanding distance learning initiatives 
within the Department of Defense. The plan shall provide for an 
expansion of such initiatives over five consecutive fiscal years 
beginning with fiscal year 2000.
    (b) Content of Plan.--The strategic plan shall contain, at a 
minimum, the following:
        (1) A statement of measurable goals and objectives and outcome-
    related performance indicators (consistent with section 1115 of 
    title 31, United States Code, relating to agency performance plans) 
    for the development and execution of distance learning initiatives 
    throughout the Department of Defense.
        (2) A detailed description of how distance learning initiatives 
    are to be developed and managed within the Department of Defense.
        (3) An assessment of the estimated costs and the benefits 
    associated with developing and maintaining an appropriate 
    infrastructure for distance learning.
        (4) A statement of planned expenditures for the investments 
    necessary to build and maintain that infrastructure.
        (5) A description of the mechanisms that are to be used to 
    supervise the development and coordination of the distance learning 
    initiatives of the Department of Defense.
    (c) Relationship to Existing Initiative.--In developing the 
strategic plan, the Secretary may take into account the ongoing 
collaborative effort among the Department of Defense, other Federal 
agencies, and private industry that is known as the Advanced 
Distribution Learning initiative. However, the Secretary shall ensure 
that the strategic plan is specifically focused on the training and 
education goals and objectives of the Department of Defense.
    (d) Submission to Congress.--The Secretary of Defense shall submit 
the strategic plan to Congress not later than March 1, 1999.

SEC. 379. PUBLIC AVAILABILITY OF OPERATING AGREEMENTS BETWEEN MILITARY 
              INSTALLATIONS AND FINANCIAL INSTITUTIONS.

    With respect to an agreement between the commander of a military 
installation in the United States (or the designee of such an 
installation commander) and a financial institution that permits, 
allows, or otherwise authorizes the provision of financial services by 
the financial institution on the military installation, nothing in the 
terms or nature of such an agreement shall be construed to exempt the 
agreement from the provisions of sections 552 and 552a of title 5, 
United States Code.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec.401.End strengths for active forces.
Sec.402.Revision in permanent end strength levels.
Sec.403.Date for submission of annual manpower requirements report.
Sec.404.Additional exemption from percentage limitation on number of 
          lieutenant generals and vice admirals.
Sec.405.Extension of authority for Chairman of the Joint Chiefs of Staff 
          to designate up to 12 general and flag officer positions to be 
          excluded from general and flag officer grade limitations.
Sec.406.Exception for Chief, National Guard Bureau, from limitation on 
          number of officers above major general.
Sec.407.Limitation on daily average of personnel on active duty in 
          grades E-8 and E-9.

                       Subtitle B--Reserve Forces

Sec.411.End strengths for Selected Reserve.
Sec.412.End strengths for Reserves on active duty in support of the 
          reserves.
Sec.413.End strengths for military technicians (dual status).
Sec.414.Increase in number of members in certain grades authorized to 
          serve on active duty in support of the reserves.
Sec.415.Consolidation of strength authorizations for active status Naval 
          Reserve flag officers of the Navy Medical Department Staff 
          Corps.

               Subtitle C--Authorization of Appropriations

Sec.421.Authorization of appropriations for military personnel.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 1999, as follows:
        (1) The Army, 480,000.
        (2) The Navy, 372,696.
        (3) The Marine Corps, 172,200.
        (4) The Air Force, 370,882.

SEC. 402. REVISION IN PERMANENT END STRENGTH LEVELS.

    (a) Revised End Strength Floors.--Subsection (b) of section 691 of 
title 10, United States Code, is amended--
        (1) in paragraph (1), by striking out ``495,000'' and inserting 
    in lieu thereof ``480,000'';
        (2) in paragraph (2), by striking out ``390,802'' and inserting 
    in lieu thereof ``372,696'';
        (3) in paragraph (3), by striking out ``174,000'' and inserting 
    in lieu thereof ``172,200''; and
        (4) in paragraph (4), by striking out ``371,577'' and inserting 
    in lieu thereof ``370,802''.
    (b) Revision to Flexibility Authority for the Army.--Subsection (e) 
of such section is amended by striking out ``1 percent or, in the case 
of the Army, by not more than 1.5 percent,'' and inserting in lieu 
thereof ``0.5 percent.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1998.

SEC. 403. DATE FOR SUBMISSION OF ANNUAL MANPOWER REQUIREMENTS REPORT.

    Section 115a(a) of title 10, United States Code, is amended--
        (1) by striking out ``, not later than February 15 of each 
    fiscal year,'' in the first sentence; and
        (2) by striking out ``The report shall be in writing and'' in 
    the second sentence and inserting in lieu thereof ``The report, 
    which shall be in writing, shall be submitted each year not later 
    than 45 days after the date on which the President submits to 
    Congress the budget for the next fiscal year under section 1105 of 
    title 31. The report''.

SEC. 404. ADDITIONAL EXEMPTION FROM PERCENTAGE LIMITATION ON NUMBER OF 
              LIEUTENANT GENERALS AND VICE ADMIRALS.

    Section 525(b)(4)(B) of title 10, United States Code, is amended by 
striking out ``six'' and inserting in lieu thereof ``seven''.

SEC. 405. EXTENSION OF AUTHORITY FOR CHAIRMAN OF THE JOINT CHIEFS OF 
              STAFF TO DESIGNATE UP TO 12 GENERAL AND FLAG OFFICER 
              POSITIONS TO BE EXCLUDED FROM GENERAL AND FLAG OFFICER 
              GRADE LIMITATIONS.

    Section 526(b)(2) of title 10, United States Code, is amended by 
striking out ``October 1, 1998'' and inserting in lieu thereof 
``October 1, 2002''.

SEC. 406. EXCEPTION FOR CHIEF, NATIONAL GUARD BUREAU, FROM LIMITATION 
              ON NUMBER OF OFFICERS ABOVE MAJOR GENERAL.

    Section 525(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(6) An officer while serving as Chief of the National Guard 
Bureau is in addition to the number that would otherwise be permitted 
for that officer's armed force for officers serving on active duty in 
grades above major general under paragraph (1).''.

SEC. 407. LIMITATION ON DAILY AVERAGE OF PERSONNEL ON ACTIVE DUTY IN 
              GRADES E-8 AND E-9.

    (a) Fiscal Year Basis for Application of Limitation.--The first 
sentence of section 517(a) of title 10, United States Code, is 
amended--
        (1) by striking out ``a calendar year'' and inserting in lieu 
    thereof ``a fiscal year''; and
        (2) by striking out ``January 1 of that year'' and inserting in 
    lieu thereof ``the first day of that fiscal year''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1999.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 1999, as follows:
        (1) The Army National Guard of the United States, 357,223.
        (2) The Army Reserve, 208,003.
        (3) The Naval Reserve, 90,843.
        (4) The Marine Corps Reserve, 40,018.
        (5) The Air National Guard of the United States, 106,992.
        (6) The Air Force Reserve, 74,243.
        (7) The Coast Guard Reserve, 8,000.
    (b) Waiver Authority.--The Secretary of Defense may vary an end 
strength authorized by subsection (a) by not more than 2 percent.
    (c) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
        (1) the total authorized strength of units organized to serve 
    as units of the Selected Reserve of such component which are on 
    active duty (other than for training) at the end of the fiscal 
    year; and
        (2) the total number of individual members not in units 
    organized to serve as units of the Selected Reserve of such 
    component who are on active duty (other than for training or for 
    unsatisfactory participation in training) without their consent at 
    the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
1999, 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, 21,986.
        (2) The Army Reserve, 12,807.
        (3) The Naval Reserve, 15,590.
        (4) The Marine Corps Reserve, 2,362.
        (5) The Air National Guard of the United States, 10,931.
        (6) The Air Force Reserve, 992.

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

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 1999 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
        (1) For the Army Reserve, 5,395.
        (2) For the Army National Guard of the United States, 23,125.
        (3) For the Air Force Reserve, 9,761.
        (4) For the Air National Guard of the United States, 22,408.

SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES AUTHORIZED TO 
              SERVE ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

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

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,219   1,071     791      140
Lieutenant Colonel or Commander.....    1,524     520     713       90
Colonel or Navy Captain.............     438      188     297     30''.
------------------------------------------------------------------------

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

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
E-9.................................     623     202      395       20
E-8.................................   2,585     429      997     94''.
------------------------------------------------------------------------

    (c) Effective Date.--The amendments made by this section shall take 
efffect on October 1, 1998.

SEC. 415. CONSOLIDATION OF STRENGTH AUTHORIZATIONS FOR ACTIVE STATUS 
              NAVAL RESERVE FLAG OFFICERS OF THE NAVY MEDICAL 
              DEPARTMENT STAFF CORPS.

    Section 12004(c) of title 10, United States Code, is amended--
        (1) in the table in paragraph (1)--
            (A) by striking out the item relating to the Medical Corps 
        and inserting in lieu thereof the following:

      ``Medical Department staff corps............................
                                                                   9''; 

        and
            (B) by striking out the items relating to the Dental Corps, 
        the Nurse Corps, and the Medical Service Corps; and
        (2) by adding at the end the following:
    ``(4)(A) For the purposes of paragraph (1), the Medical Department 
staff corps referred to in the table are as follows:
        ``(i) The Medical Corps.
        ``(ii) The Dental Corps.
        ``(iii) The Nurse Corps.
        ``(iv) The Medical Service Corps.
    ``(B) Each of the Medical Department staff corps is authorized one 
rear admiral (lower half) within the strength authorization distributed 
to the Medical Department staff corps under paragraph (1). The 
Secretary of the Navy shall distribute the remainder of the strength 
authorization for the Medical Department staff corps under that 
paragraph among those staff corps as the Secretary determines 
appropriate to meet the needs of the Navy.''.

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 1999 a total of 
$70,592,286,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1999.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec.501.Codification of eligibility of retired officers and former 
          officers for consideration by special selection boards.
Sec.502.Involuntary separation pay denied for officer discharged for 
          failure of selection for promotion requested by the officer.
Sec.503.Streamlined selective retention process for regular officers.
Sec.504.Permanent applicability of limitations on years of active naval 
          service of Navy limited duty officers in grades of commander 
          and captain.
Sec.505.Tenure of Chief of the Air Force Nurse Corps.
Sec.506.Grade of Air Force Assistant Surgeon General for Dental 
          Services.
Sec.507.Review regarding allocation of Naval Reserve Officers' Training 
          Corps scholarships among participating colleges and 
          universities.

                  Subtitle B--Reserve Component Matters

Sec.511.Use of Reserves for emergencies involving weapons of mass 
          destruction.
Sec.512.Service required for retirement of National Guard officer in 
          higher grade.
Sec.513.Reduced time-in-grade requirement for reserve general and flag 
          officers involuntarily transferred from active status.
Sec.514.Active status service requirement for promotion consideration 
          for Army and Air Force reserve component brigadier generals.
Sec.515.Composition of selective early retirement boards for rear 
          admirals of the Naval Reserve and major generals of the Marine 
          Corps Reserve.
Sec.516.Authority for temporary waiver for certain Army Reserve officers 
          of baccalaureate degree requirement for promotion of reserve 
          officers.
Sec.517.Furnishing of burial flags for deceased members and former 
          members of the Selected Reserve.

               Subtitle C--Military Education and Training

Sec.521.Separate housing for male and female recruits during recruit 
          basic training.
Sec.522.After-hours privacy for recruits during basic training.
Sec.523.Sense of the House of Representatives relating to small unit 
          assignments by gender during recruit basic training.
Sec.524.Extension of reporting dates for Commission on Military Training 
          and Gender-Related Issues.
Sec.525.Improved oversight of innovative readiness training.

           Subtitle D--Decorations, Awards, and Commendations

Sec.531.Study of new decorations for injury or death in line of duty.
Sec.532.Waiver of time limitations for award of certain decorations to 
          certain persons.
Sec.533.Commendation and commemoration of the Navy and Marine Corps 
          personnel who served in the United States Navy Asiatic Fleet 
          from 1910-1942.
Sec.534.Appreciation for service during World War I and World War II by 
          members of the Navy assigned on board merchant ships as the 
          Naval Armed Guard Service.
Sec.535.Sense of Congress regarding the heroism, sacrifice, and service 
          of the military forces of South Vietnam, other nations, and 
          indigenous groups in connection with the United States Armed 
          Forces during the Vietnam conflict.
Sec.536.Sense of Congress regarding the heroism, sacrifice, and service 
          of former South Vietnamese commandos in connection with United 
          States Armed Forces during the Vietnam conflict.
Sec.537.Prohibition on members of Armed Forces entering correctional 
          facilities to present decorations to persons who have 
          committed serious violent felonies.

   Subtitle E--Administration of Agencies Responsible for Review and 
                     Correction of Military Records

Sec.541.Personnel freeze.
Sec.542.Professional staff.
Sec.543.Ex parte communications.
Sec.544.Timeliness standards.
Sec.545.Scope of correction of military records.

                           Subtitle F--Reports

Sec.551.Report on personnel retention.
Sec.552.Report on process for selection of members for service on 
          courts-martial.
Sec.553.Report on prisoners transferred from United States Disciplinary 
          Barracks, Fort Leavenworth, Kansas, to Federal Bureau of 
          Prisons.
Sec.554.Review and report regarding the distribution of National Guard 
          full-time support among the States.

                        Subtitle G--Other Matters

Sec.561.Two-year extension of certain force drawdown transition 
          authorities relating to personnel management and benefits.
Sec.562.Leave without pay for suspended academy cadets and midshipmen.
Sec.563.Continued eligibility under Voluntary Separation Incentive 
          program for members who involuntarily lose membership in a 
          reserve component.
Sec.564.Reinstatement of definition of financial institution in 
          authorities for reimbursement of defense personnel for 
          Government errors in direct deposit of pay.
Sec.565.Increase in maximum amount for College Fund program.
Sec.566.Central Identification Laboratory, Hawaii.
Sec.567.Military funeral honors for veterans.
Sec.568.Status in the Naval Reserve of cadets at the Merchant Marine 
          Academy.
Sec.569.Repeal of restriction on civilian employment of enlisted 
          members.
Sec.570.Transitional compensation for abused dependent children not 
          residing with the spouse or former spouse of a member 
          convicted of dependent abuse.
Sec.571.Pilot program for treating GED and home school diploma 
          recipients as high school graduates for determinations of 
          eligibility for enlistment in the Armed Forces.
Sec.572.Sense of Congress concerning New Parent Support Program and 
          military families.
Sec.573.Advancement of Benjamin O. Davis, Junior, to grade of general on 
          the retired list of the Air Force.
Sec.574.Sense of the House of Representatives concerning adherence by 
          civilians in military chain of command to the standard of 
          exemplary conduct required of commanding officers and others 
          in authority in the Armed Forces.

                  Subtitle A--Officer Personnel Policy

SEC. 501. CODIFICATION OF ELIGIBILITY OF RETIRED OFFICERS AND FORMER 
              OFFICERS FOR CONSIDERATION BY SPECIAL SELECTION BOARDS.

    (a) Persons Not Considered by Promotion Boards Due to 
Administrative Error.--Subsection (a) of section 628 of title 10, 
United States Code, is amended--
        (1) by striking out paragraph (1) (and the subsection 
    designation at the beginning of that paragraph) and inserting in 
    lieu thereof the following:
    ``(a) Persons Not Considered by Promotion Boards Due to 
Administrative Error.--(1) If the Secretary of the military department 
concerned determines that because of administrative error a person who 
should have been considered for selection for promotion by a promotion 
board was not so considered, the Secretary shall convene a special 
selection board under this subsection to determine whether that person 
(whether or not then on active duty) should be recommended for 
promotion.'';
        (2) in paragraph (2), by striking out ``the officer as his 
    record'' in the first sentence and inserting in lieu thereof ``the 
    person whose name was referred to it for consideration as that 
    record''; and
        (3) in paragraph (3), by striking out ``an officer in a grade'' 
    and all that follows through ``the officer'' and inserting in lieu 
    thereof ``a person whose name was referred to it for consideration 
    for selection for appointment to a grade other than a general 
    officer or flag officer grade, the person''.
    (b) Persons Considered by Promotion Boards in Unfair Manner.--
Subsection (b) of such section is amended--
        (1) by striking out paragraph (1) and inserting in lieu thereof 
    the following:
    ``(b) Persons Considered by Promotion Boards in Unfair Manner.--(1) 
If the Secretary of the military department concerned determines, in 
the case of a person who was considered for selection for promotion by 
a promotion board but was not selected, that there was material 
unfairness with respect to that person, the Secretary may convene a 
special selection board under this subsection to determine whether that 
person (whether or not then on active duty) should be recommended for 
promotion. In order to determine that there was material unfairness, 
the Secretary must determine that--
        ``(A) the action of the promotion board that considered the 
    person was contrary to law or involved material error of fact or 
    material administrative error; or
        ``(B) the board did not have before it for its consideration 
    material information.'';
        (2) in paragraph (2), by striking out ``the officer as his 
    record'' in the first sentence and inserting in lieu thereof ``the 
    person whose name was referred to it for consideration as that 
    record''; and
        (3) in paragraph (3)--
            (A) by striking out ``an officer'' and inserting in lieu 
        thereof ``a person''; and
            (B) by striking out ``the officer'' and inserting in lieu 
        thereof ``the person''.
    (c) Conforming Amendments.--(1) Subsection (c) of such section is 
amended--
        (A) by inserting ``Reports of Boards.--'' after ``(c)'';
        (B) by striking out ``officer'' both places it appears in 
    paragraph (1) and inserting in lieu thereof ``person''; and
        (C) in paragraph (2), by adding the following new sentence at 
    the end: ``However, in the case of a board convened under this 
    section to consider a warrant officer or former warrant officer, 
    the provisions of sections 576(d) and 576(f) of this title (rather 
    than the provisions of section 617(b) and 618 of this title) apply 
    to the report and proceedings of the board in the same manner as 
    they apply to the report and proceedings of a selection board 
    convened under section 573 of this title.''.
    (2) Subsection (d)(1) of such section is amended--
        (A) by inserting ``Appointment of Persons Selected by Boards.--
    '' after ``(d)'';
        (B) by striking out ``an officer'' and inserting in lieu 
    thereof ``a person'';
        (C) by striking out ``such officer'' and inserting in lieu 
    thereof ``that person'';
        (D) by striking out ``the next higher grade'' the second place 
    it appears and inserting in lieu thereof ``that grade''; and
        (E) by adding at the end the following: ``However, in the case 
    of a board convened under this section to consider a warrant 
    officer or former warrant officer, if the report of that board, as 
    approved by the Secretary concerned, recommends that warrant 
    officer or former warrant officer for promotion to the next higher 
    grade, that person shall, as soon as practicable, be appointed to 
    the next higher grade in accordance with provisions of section 
    578(c) of this title (rather than subsections (b), (c), and (d) of 
    section 624 of this title).''.
    (3) Subsection (d)(2) of such section is amended--
        (A) by striking out ``An officer who is promoted'' and 
    inserting in lieu thereof ``A person who is appointed'';
        (B) by striking out ``such promotion'' and inserting in lieu 
    thereof ``that appointment''; and
        (C) by adding at the end the following new sentence: ``In the 
    case of a person who is not on the active-duty list when appointed 
    to the next higher grade, placement of that person on the active-
    duty list pursuant to the preceding sentence shall be only for 
    purposes of determination of eligibility of that person for 
    consideration for promotion by any subsequent special selection 
    board under this section.''.
    (d) Applicability to Deceased Persons.--Subsection (e) of such 
section is amended to read as follows:
    ``(e) Deceased Persons.--If a person whose name is being considered 
for referral to a special selection board under this section dies 
before the completion of proceedings under this section with respect to 
that person, this section shall be applied to that person 
posthumously.''.
    (e) Recodification of Administrative Matters.--Such section is 
further amended by adding at the end the following:
    ``(f) Convening of Boards.--A board convened under this section--
        ``(1) shall be convened under regulations prescribed by the 
    Secretary of Defense;
        ``(2) shall be composed in accordance with section 612 of this 
    title or, in the case of board to consider a warrant officer or 
    former warrant officer, in accordance with section 573 of this 
    title and regulations prescribed by the Secretary of the military 
    department concerned; and
        ``(3) shall be subject to the provisions of section 613 of this 
    title.
    ``(g) Promotion Board Defined.--In this section, the term 
`promotion board' means a selection board convened by the Secretary of 
a military department under section 573(a) or 611(a) of this title.''.
    (f) Ratification of Codified Practice.--The consideration by a 
special selection board convened under section 628 of title 10, United 
States Code, before the date of the enactment of this Act of a person 
who, at the time of consideration, was a retired officer or former 
officer of the Armed Forces (including a deceased retired or former 
officer) is hereby ratified.

SEC. 502. INVOLUNTARY SEPARATION PAY DENIED FOR OFFICER DISCHARGED FOR 
              FAILURE OF SELECTION FOR PROMOTION REQUESTED BY THE 
              OFFICER.

    (a) Ineligibility for Separation Pay.--Section 1174(a) of title 10, 
United States Code, is amended by adding at the end the following:
    ``(3) Notwithstanding paragraphs (1) and (2), an officer discharged 
under any provision of chapter 36 of this title for twice failing of 
selection for promotion to the next higher grade is not entitled to 
separation pay under this section if either (or both) of those failures 
of selection for promotion was by the action of a selection board to 
which the officer submitted a request in writing not to be selected for 
promotion or who otherwise directly caused his nonselection through 
written communication to the Board under section 614(b) of this 
title.''.
    (b) Report of Selection Board To Name Officers Requesting 
Nonselection.--Section 617 of such title is amended by adding at the 
end the following:
    ``(c) A selection board convened under section 611(a) of this title 
shall include in its report to the Secretary concerned the name of any 
regular officer considered and not recommended for promotion by the 
board who submitted to the board a request not to be selected for 
promotion or who otherwise directly caused his nonselection through 
written communication to the Board under section 614(b) of this 
title.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to selection boards convened under section 611(a) of 
title 10, United States Code, on or after the date of the enactment of 
this Act.

SEC. 503. STREAMLINED SELECTIVE RETENTION PROCESS FOR REGULAR OFFICERS.

    (a) Repeal of Requirement for Duplicative Board.--Section 1183 of 
title 10, United States Code, is repealed.
    (b) Conforming Amendments.--(1) Section 1182(c) of such title is 
amended by striking out ``send the record of proceedings to a board of 
review convened under section 1183 of this title'' and inserting in 
lieu thereof ``recommend to the Secretary concerned that the officer 
not be retained on active duty''.
    (2) Section 1184 of such title is amended by striking out ``board 
of review convened under section 1183 of this title'' and inserting in 
lieu thereof ``board of inquiry convened under section 1182 of this 
title''.
    (c) Clerical Amendments.--(1) The heading for section 1184 of such 
title is amended by striking out ``review'' and inserting in lieu 
thereof ``inquiry''.
    (2) The table of sections at the beginning of chapter 60 of such 
title is amended by striking out the items relating to sections 1183 
and 1184 and inserting in lieu thereof the following:
``1184. Removal of officer: action by Secretary upon recommendation of 
          board of inquiry.''.

SEC. 504. PERMANENT APPLICABILITY OF LIMITATIONS ON YEARS OF ACTIVE 
              NAVAL SERVICE OF NAVY LIMITED DUTY OFFICERS IN GRADES OF 
              COMMANDER AND CAPTAIN.

    (a) Commanders.--Section 633 of title 10, United States Code, is 
amended--
        (1) by striking out ``Except an officer'' and all that follows 
    through ``or section 6383 of this title applies'' and inserting in 
    lieu thereof ``Except an officer of the Navy or Marine Corps who is 
    an officer designated for limited duty to whom section 5596(e) or 
    6383 of this title applies''; and
        (2) by striking out the second sentence.
    (b) Captains.--Section 634 of such title is amended--
        (1) by inserting ``an officer of the Navy who is designated for 
    limited duty to whom section 6383(a)(4) of this title applies and 
    except'' in the first sentence after ``Except''; and
        (2) by striking out the second sentence.
    (c) Years of Active Naval Service.--Section 6383(a) of such title 
is amended by striking out paragraph (5).
    (d) Limitations on Selective Retentions.--Section 6383(k) of such 
title is amended by striking out the last sentence.

SEC. 505. TENURE OF CHIEF OF THE AIR FORCE NURSE CORPS.

    Section 8069(b) of title 10, United States Code, is amended by 
striking out ``, but not for more than three years, and may not be 
reappointed to the same position'' in the last sentence.

SEC. 506. GRADE OF AIR FORCE ASSISTANT SURGEON GENERAL FOR DENTAL 
              SERVICES.

    Section 8081 of title 10, United States Code, is amended--
        (1) in the first sentence, by striking out ``major'' and 
    inserting in lieu thereof ``lieutenant colonel''; and
        (2) by striking out the second sentence and inserting in lieu 
    thereof the following: ``An appointee who holds a lower regular 
    grade shall be appointed in the regular grade of brigadier general. 
    The Assistant Surgeon General for Dental Services serves at the 
    pleasure of the Secretary.''.

SEC. 507. REVIEW REGARDING ALLOCATION OF NAVAL RESERVE OFFICERS' 
              TRAINING CORPS SCHOLARSHIPS AMONG PARTICIPATING COLLEGES 
              AND UNIVERSITIES.

    (a) Review.--The Secretary of the Navy should review the process 
and criteria used to determine the number of Naval Reserve Officer 
Training Corps (NROTC) scholarship recipients who attend each college 
and university participating in the NROTC program and how those 
scholarships are allocated to those schools.
    (b) Purpose of Review.--The review should seek to determine--
        (1) whether the method used by the Navy to allocate NROTC 
    scholarships could be changed so as to increase the likelihood that 
    scholarship awardees attend the school of their choice while 
    maintaining the Navy's capability to attain the objectives of the 
    Naval ROTC program to meet the annual requirement for newly 
    commissioned Navy ensigns and Marine Corps second lieutenants, as 
    well as the overall needs of the officer corps of the Department of 
    the Navy; and
        (2) within the determination under paragraph (1), whether the 
    likelihood of a scholarship awardee who wants to attend a school of 
    choice in the student's State of residence can be increased.
    (c) Matters Reviewed.--The matters reviewed should include the 
following:
        (1) The factors and criteria considered in the process of 
    determining the allocation of NROTC scholarships to host colleges 
    and universities.
        (2) Historical data indicating the extent to which NROTC 
    scholarship recipients attend colleges and universities they have 
    indicated a preference to attend, as opposed to attending solely or 
    mainly in order to receive an NROTC scholarship.
        (3) The extent to which the process used by the Navy to 
    allocate NROTC scholarships to participating colleges and 
    universities contributes to optimizing resources available for the 
    operation of the NROTC program and improving the professional 
    education of NROTC midshipmen.
        (4) The effects that eliminating the controlled allocation of 
    scholarships to host colleges and universities, entirely or by 
    State, would have on the NROTC program.
    (d) Consultation Requirement.--In carrying out a review under 
subsection (a), the Secretary should consult with officials of 
interested associations and of colleges and universities which host 
ROTC units and such other officials as the Secretary considers 
appropriate.

                 Subtitle B--Reserve Component Matters

SEC. 511. USE OF RESERVES FOR EMERGENCIES INVOLVING WEAPONS OF MASS 
              DESTRUCTION.

    (a) Order to Active Duty.--(1) Section 12304 of title 10, United 
States Code, is amended--
        (A) in subsection (a), by inserting ``or that it is necessary 
    to provide assistance referred to in subsection (b)'' after ``to 
    augment the active forces for any operational mission'';
        (B) in subsection (b)--
            (i) by striking out ``(b)'' and inserting in lieu thereof 
        ``(c) Limitations.--(1)''; and
            (ii) by striking out ``, or to provide'' and inserting in 
        lieu thereof ``or, except as provided in subsection (b), to 
        provide'';
        (C) by redesignating subsection (c) as paragraph (2); and
        (D) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) Support for Responses to Certain Emergencies.--The authority 
under subsection (a) includes authority to order a unit or member to 
active duty to provide assistance in responding to an emergency 
involving a use or threatened use of a weapon of mass destruction.''.
    (2) Subsection (i) of such section is amended to read as follows:
    ``(i) Definitions.--In this section:
        ``(1) The term `Individual Ready Reserve mobilization category' 
    means, in the case of any reserve component, the category of the 
    Individual Ready Reserve described in section 10144(b) of this 
    title.
        ``(2) The term `weapon of mass destruction' has the meaning 
    given that term in section 1403 of the Defense Against Weapons of 
    Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).''.
    (3) Such section is further amended--
        (A) in subsection (a), by inserting ``Authority.--'' after 
    ``(a)'';
        (B) in subsection (d), by inserting ``Exclusion From Strength 
    Limitations.--'' after ``(d)'';
        (C) in subsection (e), by inserting ``Policies and 
    Procedures.--'' after ``(e)'';
        (D) in subsection (f), by inserting ``Notification of 
    Congress.--'' after ``(f)'';
        (E) in subsection (g), by inserting ``Termination of Duty.--'' 
    after ``(g)''; and
        (F) in subsection (h), by inserting ``Relationship to War 
    Powers Resolution.--'' after ``(h)''.
    (b) Use of Active Guard and Reserve Personnel.--(1) Section 12310 
of title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(c)(1) A Reserve on active duty as described in subsection (a), 
or a Reserve who is a member of the National Guard serving on full-time 
National Guard duty under section 502(f) of title 32 in connection with 
functions referred to in subsection (a), may, subject to paragraph (3), 
perform duties in support of emergency preparedness programs to prepare 
for or to respond to any emergency involving the use of a weapon of 
mass destruction (as defined in section 1403 of the Defense Against 
Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1))).
    ``(2) The costs of the pay, allowances, clothing, subsistence, 
gratuities, travel, and related expenses for a Reserve performing 
duties under the authority of paragraph (1) shall be paid from the 
appropriation that is available to pay such costs for other members of 
the reserve component of that Reserve who are performing duties as 
described in subsection (a).
    ``(3) A Reserve may perform duties described in paragraph (1) 
only--
        ``(A) while assigned to the Department of Defense Consequence 
    Management Program Integration Office; or
        ``(B) while assigned to a reserve component rapid assessment 
    element team and performing those duties within the geographical 
    limits of the United States, its territories and possessions, the 
    District of Columbia, and the Commonwealth of Puerto Rico.
    ``(4) The number of Reserves on active duty who are performing 
duties described in paragraph (1) at the same time may not exceed 228. 
Reserves on active duty who are performing duties described in 
paragraph (1) shall be counted against the annual end strength 
authorizations required by section 115(a)(1)(B) and 115(a)(2) of this 
title. The justification material for the defense budget request for a 
fiscal year shall identify the number and component of the Reserves 
programmed to be performing duties described in paragraph (1) during 
that fiscal year.
    ``(5) A reserve component rapid assessment element team, and any 
Reserve assigned to such a team, may not be used to respond to an 
emergency described in paragraph (1) unless the Secretary of Defense 
has certified to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives that 
that team, or that Reserve, possesses the requisite skills, training, 
and equipment to be proficient in all mission requirements.
    ``(6) If the Secretary of Defense submits to Congress any request 
for the enactment of legislation to modify the requirements of 
paragraph (3) or to increase the number of personnel authorized by 
paragraph (4), the Secretary shall provide with the request--
        ``(A) justification for each such requested modification or for 
    the requested additional personnel and explain the need for the 
    increase in the context of existing or projected similar 
    capabilities at the local, State, and Federal levels; and
        ``(B) the Secretary's plan for sustaining the qualifications of 
    the personnel and teams described in paragraph (3)(B).''.
    (2) The Secretary of Defense may not submit to Congress earlier 
than 90 days after the date of the receipt by Congress of the report 
required by section 1411 of this Act a request for the enactment of 
legislation to modify the requirements of paragraph (3), or to increase 
the number of personnel authorized by paragraph (4), of section 
12310(c) of title 10, United States Code, as added by paragraph (1).

SEC. 512. SERVICE REQUIRED FOR RETIREMENT OF NATIONAL GUARD OFFICER IN 
              HIGHER GRADE.

    (a) Revision of Requirement.--Subparagraph (E) of section 
1370(d)(3) of title 10, United States Code, is amended to read as 
follows:
    ``(E) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been found qualified 
for Federal recognition in a higher grade by a board under section 307 
of title 32, serves in a position for which that grade is the minimum 
authorized grade and is appointed as a reserve officer in that grade 
may be credited for the purposes of subparagraph (A) as having served 
in that grade. The period of the service for which credit is afforded 
under the preceding sentence may only be the period for which the 
person served in the position after the Senate provides advice and 
consent for the appointment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall apply 
with respect to appointments to higher grades that take effect after 
that date.

SEC. 513. REDUCED TIME-IN-GRADE REQUIREMENT FOR RESERVE GENERAL AND 
              FLAG OFFICERS INVOLUNTARILY TRANSFERRED FROM ACTIVE 
              STATUS.

    (a) Minimum Service in Active Status.--Section 1370(d)(3) of title 
10, United States Code, as amended by section 511, is further amended 
by adding at the end the following new subparagraph:
    ``(F) A person covered by subparagraph (A) who has completed at 
least six months of satisfactory service in a grade above colonel or 
(in the case of the Navy) captain and, while serving in an active 
status in such grade, is involuntarily transferred (other than for 
cause) from active status may be credited with satisfactory service in 
the grade in which serving at the time of such transfer, 
notwithstanding failure of the person to complete three years of 
service in that grade.''.
    (b) Effective Date.--Subparagraph (F) of such section, as added by 
subsection (a), shall take effect on the date of the enactment of this 
Act and shall apply with respect to transfers referred to in such 
subparagraph that are made on or after that date.

SEC. 514. ACTIVE STATUS SERVICE REQUIREMENT FOR PROMOTION CONSIDERATION 
              FOR ARMY AND AIR FORCE RESERVE COMPONENT BRIGADIER 
              GENERALS.

    Section 14301 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) A reserve component brigadier general of the Army or the Air 
Force who is in an inactive status is eligible (notwithstanding 
subsection (a)) for consideration for promotion to major general by a 
promotion board convened under section 14101(a) of this title if the 
officer--
        ``(1) has been in an inactive status for less than 1 year as of 
    the date of the convening of the promotion board; and
        ``(2) had continuously served for at least 1 year on the 
    reserve active status list or the active duty list (or a 
    combination of both) immediately before the officer's most recent 
    transfer to an inactive status.''.

SEC. 515. COMPOSITION OF SELECTIVE EARLY RETIREMENT BOARDS FOR REAR 
              ADMIRALS OF THE NAVAL RESERVE AND MAJOR GENERALS OF THE 
              MARINE CORPS RESERVE.

    (a) In General.--Section 14705(b) of title 10, United States Code, 
is amended--
        (1) by inserting ``(1)'' after ``(b) Boards.--''; and
        (2) by adding at the end the following:
    ``(2) In the case of such a board convened to consider officers in 
the grade of rear admiral or major general, the Secretary of the Navy 
may appoint the board without regard to section 14102(b) of this title. 
In doing so, however, the Secretary shall ensure that--
        ``(A) each regular commissioned officer appointed to the board 
    holds a grade higher than the grade of rear admiral or major 
    general; and
        ``(B) at least one member of the board is a reserve officer who 
    holds the grade of rear admiral or major general.''.
    (b) Technical Amendments.--Paragraph (1) of such section, as 
designated by subsection (a)(1), is amended--
        (1) by inserting ``of officers'' after ``consideration''; and
        (2) by inserting ``continuation'' after ``shall convene a''.

SEC. 516. AUTHORITY FOR TEMPORARY WAIVER FOR CERTAIN ARMY RESERVE 
              OFFICERS OF BACCALAUREATE DEGREE REQUIREMENT FOR 
              PROMOTION OF RESERVE OFFICERS.

    (a) Waiver Authority for Army OCS Graduates.--The Secretary of the 
Army may waive the applicability of section 12205(a) of title 10, 
United States Code, to any officer who before the date of the enactment 
of this Act was commissioned through the Army Officer Candidate School. 
Any such waiver shall be made on a case-by-case basis, considering the 
individual circumstances of the officer involved, and may continue in 
effect for no more than 2 years after the waiver is granted. The 
Secretary may provide for such a waiver to be effective before the date 
of the waiver, as appropriate in an individual case.
    (b) Expiration of Authority.--A waiver under this section may not 
be granted after September 30, 2000.

SEC. 517. FURNISHING OF BURIAL FLAGS FOR DECEASED MEMBERS AND FORMER 
              MEMBERS OF THE SELECTED RESERVE.

    Section 2301 of title 38, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f)(1) The Secretary shall furnish a flag to drape the casket of 
each deceased member or former member of the Selected Reserve (as 
<plus-minus>described in section 10143 of title 10) who is not 
otherwise eligible for a flag under this section or section 1482(a) of 
title 10--
        ``(A) who completed at least one enlistment as a member of the 
    Selected Reserve or, in the case of an officer, completed the 
    period of initial obligated service as a member of the Selected 
    Reserve;
        ``(B) who was discharged before completion of the person's 
    initial enlistment as a member of the Selected Reserve or, in the 
    case of an officer, period of initial obligated service as a member 
    of the Selected Reserve, for a disability incurred or aggravated in 
    line of duty; or
        ``(C) who died while a member of the Selected Reserve.
    ``(2) A flag may not be furnished under subparagraphs (A) or (B) of 
paragraph (1) in the case of a person whose last discharge from service 
in the Armed Forces was under conditions less favorable than honorable.
    ``(3) After the burial, a flag furnished under paragraph (1) shall 
be given to the next of kin or to such other person as the Secretary 
considers appropriate.''.

              Subtitle C--Military Education and Training

SEC. 521. SEPARATE HOUSING FOR MALE AND FEMALE RECRUITS DURING RECRUIT 
              BASIC TRAINING.

    (a) Army.--(1) Chapter 401 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 4319. Recruit basic training: separate housing for male and 
            female recruits

    ``(a) Physically Separate Housing.--(1) The Secretary of the Army 
shall provide for housing male recruits and female recruits separately 
and securely from each other during basic training.
    ``(2) To meet the requirements of paragraph (1), the sleeping areas 
and latrine areas provided for male recruits shall be physically 
separated from the sleeping areas and latrine areas provided for female 
recruits by permanent walls, and the areas for male recruits and the 
areas for female recruits shall have separate entrances.
    ``(3) The Secretary shall ensure that, when a recruit is in an area 
referred to in paragraph (2), the area is supervised by one or more 
persons who are authorized and trained to supervise the area.
    ``(b) Alternative Separate Housing.--If male recruits and female 
recruits cannot be housed as provided under subsection (a) by October 
1, 2001, at a particular installation, the Secretary of the Army shall 
require (on and after that date) that male recruits in basic training 
at such installation be housed in barracks or other troop housing 
facilities that are only for males and that female recruits in basic 
training at such installation be housed in barracks or other troop 
housing facilities that are only for females.
    ``(c) Construction Planning.--In planning for the construction of 
housing to be used for housing recruits during basic training, the 
Secretary of the Army shall ensure that the housing is to be 
constructed in a manner that facilitates the housing of male recruits 
and female recruits separately and securely from each other.
    ``(d) Basic Training Defined.--In this section, the term `basic 
training' means the initial entry training program of the Army that 
constitutes the basic training of new recruits.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``4319. Recruit basic training: separate housing for male and female 
          recruits.''.

    (3) The Secretary of the Army shall implement section 4319 of title 
10, United States Code, as added by paragraph (1), as rapidly as 
feasible and shall ensure that the provisions of that section are 
applied to all recruit basic training classes beginning not later than 
the first such class that enters basic training on or after April 15, 
1999.
    (b) Navy and Marine Corps.--(1) Part III of subtitle C of title 10, 
United States Code, is amended by inserting after chapter 601 the 
following new chapter:

                   ``CHAPTER 602--TRAINING GENERALLY

``Sec.
``6931. Recruit basic training: separate housing for male and female 
          recruits.

``Sec. 6931. Recruit basic training: separate housing for male and 
            female recruits

    ``(a) Physically Separate Housing.--(1) The Secretary of the Navy 
shall provide for housing male recruits and female recruits separately 
and securely from each other during basic training.
    ``(2) To meet the requirements of paragraph (1), the sleeping areas 
and latrine areas provided for male recruits shall be physically 
separated from the sleeping areas and latrine areas provided for female 
recruits by permanent walls, and the areas for male recruits and the 
areas for female recruits shall have separate entrances.
    ``(3) The Secretary shall ensure that, when a recruit is in an area 
referred to in paragraph (2), the area is supervised by one or more 
persons who are authorized and trained to supervise the area.
    ``(b) Alternative Separate Housing.--If male recruits and female 
recruits cannot be housed as provided under subsection (a) by October 
1, 2001, at a particular installation, the Secretary of the Navy shall 
require (on and after that date) that male recruits in basic training 
at such installation be housed in barracks or other troop housing 
facilities that are only for males and that female recruits in basic 
training at such installation be housed in barracks or other troop 
housing facilities that are only for females.
    ``(c) Construction Planning.--In planning for the construction of 
housing to be used for housing recruits during basic training, the 
Secretary of the Navy shall ensure that the housing is to be 
constructed in a manner that facilitates the housing of male recruits 
and female recruits separately and securely from each other.
    ``(d) Basic Training Defined.--In this section, the term `basic 
training' means the initial entry training programs of the Navy and 
Marine Corps that constitute the basic training of new recruits.''.
    (2) The tables of chapters at the beginning of subtitle C, and at 
the beginning of part III of subtitle C, of such title are amended by 
inserting after the item relating to chapter 601 the following new 
item:

``602. Training Generally........................................6931''.

    (3) The Secretary of the Navy shall implement section 6931 of title 
10, United States Code, as added by paragraph (1), as rapidly as 
feasible and shall ensure that the provisions of that section are 
applied to all recruit basic training classes beginning not later than 
the first such class that enters basic training on or after April 15, 
1999.
    (c) Air Force.--(1) Chapter 901 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 9319. Recruit basic training: separate housing for male and 
            female recruits

    ``(a) Physically Separate Housing.--(1) The Secretary of the Air 
Force shall provide for housing male recruits and female recruits 
separately and securely from each other during basic training.
    ``(2) To meet the requirements of paragraph (1), the sleeping areas 
and latrine areas provided for male recruits shall be physically 
separated from the sleeping areas and latrine areas provided for female 
recruits by permanent walls, and the areas for male recruits and the 
areas for female recruits shall have separate entrances.
    ``(3) The Secretary shall ensure that, when a recruit is in an area 
referred to in paragraph (2), the area is supervised by one or more 
persons who are authorized and trained to supervise the area.
    ``(b) Alternative Separate Housing.--If male recruits and female 
recruits cannot be housed as provided under subsection (a) by October 
1, 2001, at a particular installation, the Secretary of the Air Force 
shall require (on and after that date) that male recruits in basic 
training at such installation be housed in barracks or other troop 
housing facilities that are only for males and that female recruits in 
basic training at such installation be housed in barracks or other 
troop housing facilities that are only for females.
    ``(c) Construction Planning.--In planning for the construction of 
housing to be used for housing recruits during basic training, the 
Secretary of the Air Force shall ensure that the housing is to be 
constructed in a manner that facilitates the housing of male recruits 
and female recruits separately and securely from each other.
    ``(d) Basic Training Defined.--In this section, the term `basic 
training' means the initial entry training program of the Air Force 
that constitutes the basic training of new recruits.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``9319. Recruit basic training: separate housing for male and female 
          recruits.''.

    (3) The Secretary of the Air Force shall implement section 9319 of 
title 10, United States Code, as added by paragraph (1), as rapidly as 
feasible and shall ensure that the provisions of that section are 
applied to all recruit basic training classes beginning not later than 
the first such class that enters basic training on or after April 15, 
1999.
    (d) GAO Review of Costs of Separate Housing Facilities for Male and 
Female Recruits During Recruit Basic Training.--Not later than March 1, 
1999, the Comptroller General shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on the costs that would be incurred 
by each of the military departments if required to provide housing for 
male and female recruits during basic training in separate structures. 
The report shall be prepared separately for each of the Army, Navy, and 
Air Force and shall be based on reviews and cost analyses prepared 
independently of the Department of Defense.

SEC. 522. AFTER-HOURS PRIVACY FOR RECRUITS DURING BASIC TRAINING.

    (a) Army.--(1) Chapter 401 of title 10, United States Code, is 
amended by adding after section 4319, as added by section 521(a)(1), 
the following new section:

``Sec. 4320. Recruit basic training: privacy

    ``The Secretary of the Army shall require that access by drill 
sergeants and other training personnel to a living area in which 
recruits are housed during basic training shall be limited after the 
end of the training day, other than in the case of an emergency or 
other exigent circumstance, to drill sergeants and other training 
personnel who are of the same sex as the recruits housed in that living 
area or to superiors in the chain of command of those recruits who, if 
not of the same sex as the recruits housed in that living area, are 
accompanied by a member (other than a recruit) who is of the same sex 
as the recruits housed in that living area.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 4319, as added by 
section 521(a)(2), the following new item:

``4320. Recruit basic training: privacy.''.

    (3) The Secretary of the Army shall implement section 4320 of title 
10, United States Code, as added by paragraph (1), as rapidly as 
feasible and shall ensure that the provisions of that section are 
applied to all recruit basic training classes beginning not later than 
the first such class that enters basic training on or after April 15, 
1999.
    (b) Navy.--(1) Chapter 602 of title 10, United States Code, as 
added by section 521(b)(1), is amended by adding at the end the 
following new section:

``Sec. 6932. Recruit basic training: privacy

    ``The Secretary of the Navy shall require that access by recruit 
division commanders and other training personnel to a living area in 
which Navy recruits are housed during basic training shall be limited 
after the end of the training day, other than in the case of an 
emergency or other exigent circumstance, to recruit division commanders 
and other training personnel who are of the same sex as the recruits 
housed in that living area or to superiors in the chain of command of 
those recruits who, if not of the same sex as the recruits housed in 
that living area, are accompanied by a member (other than a recruit) 
who is of the same sex as the recruits housed in that living area.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``6932. Recruit basic training: privacy.''.

    (3) The Secretary of the Navy shall implement section 6932 of title 
10, United States Code, as added by paragraph (1), as rapidly as 
feasible and shall ensure that the provisions of that section are 
applied to all recruit basic training classes beginning not later than 
the first such class that enters basic training on or after April 15, 
1999.
    (c) Air Force.--(1) Chapter 901 of title 10, United States Code, is 
amended by adding after section 9319, as added by section 521(c)(1), 
the following new section:

``Sec. 9320. Recruit basic training: privacy

    ``The Secretary of the Air Force shall require that access by 
military training instructors and other training personnel to a living 
area in which recruits are housed during basic training shall be 
limited after the end of the training day, other than in the case of an 
emergency or other exigent circumstance, to military training 
instructors and other training personnel who are of the same sex as the 
recruits housed in that living area or to superiors in the chain of 
command of those recruits who, if not of the same sex as the recruits 
housed in that living area, are accompanied by a member (other than a 
recruit) who is of the same sex as the recruits housed in that living 
area.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 9319, as added by 
section 521(c)(2), the following new item:
``9320. Recruit basic training: privacy.''.

    (3) The Secretary of the Air Force shall implement section 9320 of 
title 10, United States Code, as added by paragraph (1), as rapidly as 
feasible and shall ensure that the provisions of that section are 
applied to all recruit basic training classes beginning not later than 
the first such class that enters basic training on or after April 15, 
1999.

SEC. 523. SENSE OF THE HOUSE OF REPRESENTATIVES RELATING TO SMALL UNIT 
              ASSIGNMENTS BY GENDER DURING RECRUIT BASIC TRAINING.

    It is the sense of the House of Representatives that the Secretary 
of each military department should require that during recruit basic 
training male recruits and female recruits be assigned to separate 
units at the small unit levels designated by the different services as 
platoons, divisions, or flights, as recommended in the report of the 
Federal Advisory Committee on Gender-Integrated Training and Related 
Issues, chaired by Nancy Kassebaum-Baker, that was submitted to the 
Secretary of Defense on December 16, 1997.

SEC. 524. EXTENSION OF REPORTING DATES FOR COMMISSION ON MILITARY 
              TRAINING AND GENDER-RELATED ISSUES.

    (a) First Report.--Subsection (e)(1) of section 562 of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
Stat. 1754) is amended by striking out ``April 15, 1998'' and inserting 
in lieu thereof ``October 15, 1998''.
    (b) Final Report.--Subsection (e)(2) of such section is amended by 
striking out ``September 16, 1998'' and inserting in lieu thereof 
``March 15, 1999''.

SEC. 525. IMPROVED OVERSIGHT OF INNOVATIVE READINESS TRAINING.

    (a) In General.--Section 2012 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(j) Oversight and Cost Accounting.--The Secretary of Defense 
shall establish a program to improve the oversight and cost accounting 
of training projects conducted in accordance with this section. The 
program shall include measures to accomplish the following:
        ``(1) Ensure that each project that is proposed to be conducted 
    in accordance with this section (regardless of whether additional 
    funding from the Secretary of Defense is sought) is requested in 
    writing, reviewed for full compliance with this section, and 
    approved in advance of initiation by the Secretary of the military 
    department concerned and, in the case of a project that seeks 
    additional funding from the Secretary of Defense, by the Secretary 
    of Defense.
        ``(2) Ensure that each project that is conducted in accordance 
    with this section is required to provide, within a specified period 
    following completion of the project, an after-action report to the 
    Secretary of Defense.
        ``(3) Require that each application for a project to be 
    conducted in accordance with this section include an analysis and 
    certification that the proposed project would not result in a 
    significant increase in the cost of training (as determined in 
    accordance with procedures prescribed by the Secretary of Defense).
        ``(4) Determine the total program cost for each project, 
    including both those costs that are borne by the military 
    departments from their own accounts and those costs that are borne 
    by defense-wide accounts.
        ``(5) Provide for oversight of project execution to ensure that 
    a training project under this section is carried out in accordance 
    with the proposal for that project as approved.''.
    (b) Implementation.--The Secretary of Defense may not initiate any 
project under section 2012 of title 10, United States Code, after 
October 1, 1998, until the program required by subsection (i) of that 
section (as added by subsection (a)) has been established.

           Subtitle D--Decorations, Awards, and Commendations

SEC. 531. STUDY OF NEW DECORATIONS FOR INJURY OR DEATH IN LINE OF DUTY.

    (a) Study of Need and Criteria for New Decoration.--(1) The 
Secretary of Defense shall carry out a study of the need for, and the 
the appropriate criteria for, two possible new decorations.
    (2) The first such decoration would, if implemented, be awarded to 
members of the Armed Forces who, while serving under competent 
authority in any capacity with the Armed Forces, are killed or injured 
in the line of duty as a result of noncombat circumstances occurring--
        (A) as a result of an international terrorist attack against 
    the United States or a foreign nation friendly to the United 
    States;
        (B) while engaged in, training for, or traveling to or from a 
    peacetime or contingency operation; or
        (C) while engaged in, training for, or traveling to or from 
    service outside the territory of the United States as part of a 
    peacekeeping force.
    (3) The second such decoration would, if implemented, be awarded to 
civilian nationals of the United States who, while serving under 
competent authority in any capacity with the Armed Forces, are killed 
or injured in the line of duty under circumstances which, if they were 
members of the Armed Forces, would qualify them for award of the Purple 
Heart or the medal described in paragraph (2).
    (b) Recommendation to Congress.--Not later than July 31, 1999, the 
Secretary shall submit to Congress a report setting forth the 
Secretary's recommendation concerning the need for, and propriety of, 
each of the possible new decorations referred to in subsection (a).
    (c) Coordination.--The Secretary shall carry out this section in 
coordination with the Secretaries of the military departments and the 
Secretary of Transportation with regard to the Coast Guard.

SEC. 532. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
              TO CERTAIN PERSONS.

    (a) Waiver.--Any limitation established by law or policy for the 
time within which a recommendation for the award of a military 
decoration or award must be submitted shall not apply to awards of 
decorations described in this section, the award of each such 
decoration having been determined by the Secretary of the military 
department concerned to be warranted in accordance with section 1130 of 
title 10, United States Code.
    (b) Distinguished-Service Cross.--Subsection (a) applies to the 
award of the Distinguished-Service Cross of the Army as follows:
        (1) To Isaac Camacho of El Paso, Texas, for extraordinary 
    heroism in actions at Camp Hiep Hoa in Vietnam on November 24, 
    1963, while serving as a member of the Army.
        (2) To Bruce P. Crandall of Mesa, Arizona, for extraordinary 
    heroism in actions at Landing Zone X-Ray in Vietnam on November 14, 
    1965, while serving as a member of the Army.
        (3) To Leland B. Fair of Jessieville, Arkansas, for 
    extraordinary heroism in actions in the Philippine Islands on July 
    4, 1945, while serving as a member of the Army.
    (c) Distinguished-Service Medal.--Subsection (a) applies to the 
award of the Distinguished-Service Medal of the Army to Richard P. 
Sakakida of Fremont, California, for exceptionally meritorious service 
while a prisoner of war in the Philippine Islands from May 7, 1942, to 
September 14, 1945, while serving as a member of the Army.
    (d) Navy Cross.--Subsection (a) applies to the posthumous award of 
the Navy Cross to Joseph F. Keenan for extraordinary heroism in actions 
on March 26-27, 1953, while serving as a member of the Navy.
    (e) Silver Star Medal.--Subsection (a) applies to the award of the 
Silver Star Medal of the Navy to Andrew A. Bernard of Methuen, 
Massachusetts, for gallantry in action on November 24, 1943, while 
serving as a member of the Navy.
    (f) Distinguished Flying Cross.--Subsection (a) applies to the 
award of the Distinguished Flying Cross for service during World War II 
or Korea (including multiple awards to the same individual) in the case 
of each individual (not covered by section 573(d) of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
Stat. 1757)) concerning whom the Secretary of the Navy (or an officer 
of the Navy acting on behalf of the Secretary) submitted to the 
Committee on National Security of the House of Representatives and the 
Committee on Armed Services of the Senate, before the date of the 
enactment of this Act, a notice as provided in section 1130(b) of title 
10, United States Code, that the award of the Distinguished Flying 
Cross to that individual is warranted and that a waiver of time 
restrictions prescribed by law for recommendation for such award is 
recommended.

SEC. 533. COMMENDATION AND COMMEMORATION OF THE NAVY AND MARINE CORPS 
              PERSONNEL WHO SERVED IN THE UNITED STATES NAVY ASIATIC 
              FLEET FROM 1910-1942.

    (a) Findings.--Congress makes the following findings:
        (1) The United States established the Asiatic Fleet of the Navy 
    in 1910 to protect United States nationals, policies, and 
    possessions in the Far East.
        (2) The sailors and Marines of the Asiatic Fleet ensured the 
    safety of United States and foreign nationals and provided 
    humanitarian assistance in that region during the Chinese civil 
    war, the Yangtze Flood of 1931, and the outbreak of Sino-Japanese 
    hostilities.
        (3) In 1940, due to deteriorating political relations and 
    increasing tensions between the United States and Japan, a 
    reinforced Asiatic Fleet began concentrating on the defense of the 
    Philippines and engaged in extensive training to ensure maximum 
    operational readiness for any eventuality.
        (4) Following the declaration of war against Japan in December 
    1941, the warships, submarines, and aircraft of the Asiatic Fleet 
    courageously fought many battles against superior Japanese forces.
        (5) The Asiatic Fleet directly suffered the loss of 22 vessels, 
    1,826 men killed or missing in action, and 518 men captured and 
    imprisoned under the worst of conditions, with many of them dying 
    while held as prisoners of war.
    (b) Congressional Commendation.--Congress--
        (1) commends the Navy and Marine Corps personnel who served in 
    the Asiatic Fleet of the United States Navy during the period from 
    1910 to 1942; and
        (2) honors those who gave their lives in the line of duty while 
    serving in the Asiatic Fleet.
    (c) Commemoration of United States Navy Asiatic Fleet.--The 
President is authorized and requested to issue a proclamation 
designating an appropriate commemoration of the United States Navy 
Asiatic Fleet and calling upon the people of the United States to 
observe such commemoration with appropriate programs, ceremonies, and 
activities.

SEC. 534. APPRECIATION FOR SERVICE DURING WORLD WAR I AND WORLD WAR II 
              BY MEMBERS OF THE NAVY ASSIGNED ON BOARD MERCHANT SHIPS 
              AS THE NAVAL ARMED GUARD SERVICE.

    (a) Findings.--Congress makes the following findings:
        (1) The Navy established a special force during both World War 
    I and World War II, known as the Naval Armed Guard Service, to 
    protect merchant ships of the United States from enemy attack by 
    stationing members of the Navy and weapons on board those ships.
        (2) Members of the Naval Armed Guard Service served on 6,236 
    merchant ships during World War II, of which 710 were sunk by enemy 
    action.
        (3) Over 144,900 members of the Navy served in the Naval Armed 
    Guard Service during World War II as officers, gun crewmen, 
    signalmen, and radiomen, of whom 1,810 were killed in action.
        (4) The efforts of the members of the Naval Armed Guard Service 
    played a significant role in the safe passage of United States 
    merchant ships to their destinations in the Soviet Union and 
    various locations in western Europe and the Pacific Theater.
        (5) The efforts of the members of the Navy who served in the 
    Naval Armed Guard Service have been largely overlooked due to the 
    rapid disbanding of the service after World War II and lack of 
    adequate records.
        (6) Recognition of the service of the naval personnel who 
    served in the Naval Armed Guard Service is highly warranted and 
    long overdue.
    (b) Sense of Congress.--Congress expresses its appreciation, and 
the appreciation of the American people, for the dedicated service 
performed during World War I and World War II by members of the Navy 
assigned as gun crews on board merchant ships as part of the Naval 
Armed Guard Service.

SEC. 535. SENSE OF CONGRESS REGARDING THE HEROISM, SACRIFICE, AND 
              SERVICE OF THE MILITARY FORCES OF SOUTH VIETNAM, OTHER 
              NATIONS, AND INDIGENOUS GROUPS IN CONNECTION WITH THE 
              UNITED STATES ARMED FORCES DURING THE VIETNAM CONFLICT.

    (a) Findings.--Congress finds the following:
        (1) South Vietnam, Australia, South Korea, Thailand, New 
    Zealand, and the Philippines contributed military forces, together 
    with the United States, during military operations conducted in 
    Southeast Asia during the Vietnam conflict.
        (2) Indigenous groups, such as the Hmong, Nung, Montagnard, 
    Kahmer, Hoa Hao, and Cao Dai contributed military forces, together 
    with the United States, during military operations conducted in 
    Southeast Asia during the Vietnam conflict.
        (3) The contributions of these combat forces continued through 
    long years of armed conflict.
        (4) As a result, in addition to the United States casualties 
    exceeding 210,000, this willingness to participate in the Vietnam 
    conflict resulted in the death and wounding of more than 1,000,000 
    military personnel from South Vietnam and 16,000 from other allied 
    nations.
        (5) The service of the Vietnamese, indigenous groups, and other 
    allied nations was repeatedly marked by exceptional heroism and 
    sacrifice, with particularly noteworthy contributions being made by 
    the Vietnamese airborne, commando, infantry and ranger units, the 
    Republic of Korea marines, the Capital and White Horse divisions, 
    the Royal Thai Army Black Panther Division, the Royal Australian 
    Regiment, the New Zealand ``V'' force, and the 1st Philippine Civic 
    Action Group.
    (b) Sense of Congress.--Congress recognizes and honors the members 
and former members of the military forces of South Vietnam, the 
Republic of Korea, Thailand, Australia, New Zealand, and the 
Philippines, as well as members of the Hmong, Nung, Montagnard, Kahmer, 
Hoa Hao, and Cao Dai, for their heroism, sacrifice, and service in 
connection with United States Armed Forces during the Vietnam conflict.

SEC. 536. SENSE OF CONGRESS REGARDING THE HEROISM, SACRIFICE, AND 
              SERVICE OF FORMER SOUTH VIETNAMESE COMMANDOS IN 
              CONNECTION WITH UNITED STATES ARMED FORCES DURING THE 
              VIETNAM CONFLICT.

    (a) Findings.--Congress finds the following:
        (1) South Vietnamese commandos were recruited by the United 
    States as part of OPLAN 34A or its predecessor or OPLAN 35 from 
    1961 to 1970.
        (2) The commandos conducted covert operations in North Vietnam 
    during the Vietnam conflict.
        (3) Many of the commandos were captured and imprisoned by North 
    Vietnamese forces, some for as long as 20 years.
        (4) The commandos served and fought proudly during the Vietnam 
    conflict.
        (5) Many of the commandos lost their lives serving in 
    operations conducted by the United States during the Vietnam 
    conflict.
        (6) Many of the Vietnamese commandos now reside in the United 
    States.
    (b) Sense of Congress--Congress recognizes and honors the former 
South Vietnamese commandos for their heroism, sacrifice, and service in 
connection with United States Armed Forces during the Vietnam conflict.

SEC. 537. PROHIBITION ON MEMBERS OF ARMED FORCES ENTERING CORRECTIONAL 
              FACILITIES TO PRESENT DECORATIONS TO PERSONS WHO HAVE 
              COMMITTED SERIOUS VIOLENT FELONIES.

    (a) Prohibition.--Chapter 57 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 1132. Presentation of decorations: prohibition on entering 
            correctional facilities for presentation to prisoners 
            convicted of serious violent felonies

    ``(a) Prohibition.--A member of the armed forces may not enter a 
Federal, State, local, or foreign correctional facility to present a 
decoration to a person who is incarcerated due to conviction of a 
serious violent felony.
    ``(b) Definitions.--In this section:
        ``(1) The term `decoration' means any decoration or award that 
    may be presented or awarded to a member of the armed forces.
        ``(2) The term `serious violent felony' has the meaning given 
    that term in section 3559(c)(2)(F) of title 18.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
that chapter is amended by adding at the end the following new item:
``1132. Presentation of decorations: prohibition on entering 
          correctional facilities for presentation to prisoners 
          convicted of serious violent felonies.''.

   Subtitle E--Administration of Agencies Responsible for Review and 
                     Correction of Military Records

SEC. 541. PERSONNEL FREEZE.

    (a) Limitation.--During fiscal years 1999, 2000, and 2001, the 
Secretary of a military department may not carry out any reduction in 
the number of military and civilian personnel assigned to duty with the 
service review agency for that military department below the baseline 
number for that agency until--
        (1) the Secretary submits to Congress a report that describes 
    the reduction proposed to be made, provides the Secretary's 
    rationale for that reduction, and specifies the number of such 
    personnel that would be assigned to duty with that agency after the 
    reduction; and
        (2) a period of 90 days has elapsed after the date on which 
    such report is submitted.
    (b) Baseline Number.--The baseline number for a service review 
agency under this section is--
        (1) for purposes of the first report with respect to a service 
    review agency under this section, the number of military and 
    civilian personnel assigned to duty with that agency as of October 
    1, 1997; and
        (2) for purposes of any subsequent report with respect to a 
    service review agency under this section, the number of such 
    personnel specified in the most recent report with respect to that 
    agency under this section.
    (c) Service Review Agency Defined.--In this section, the term 
``service review agency'' means--
        (1) with respect to the Department of the Army, the Army Review 
    Boards Agency;
        (2) with respect to the Department of the Navy, the Board for 
    Correction of Naval Records; and
        (3) with respect to the Department of the Air Force, the Air 
    Force Review Boards Agency.

SEC. 542. PROFESSIONAL STAFF.

    (a) In General.--(1) Chapter 79 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 1555. Professional staff

    ``(a) The Secretary of each military department shall assign to the 
staff of the service review agency of that military department at least 
one attorney and at least one physician. Such assignments shall be made 
on a permanent, full-time basis and may be made from members of the 
armed forces or civilian employees.
    ``(b) Personnel assigned pursuant to subsection (a)--
        ``(1) shall work under the supervision of the director or 
    executive director (as the case may be) of the service review 
    agency; and
        ``(2) shall be assigned duties as advisers to the director or 
    executive director or other staff members on legal and medical 
    matters, respectively, that are being considered by the agency.
    ``(c) In this section, the term `service review agency' means--
        ``(1) with respect to the Department of the Army, the Army 
    Review Boards Agency;
        ``(2) with respect to the Department of the Navy, the Board for 
    Correction of Naval Records; and
        ``(3) with respect to the Department of the Air Force, the Air 
    Force Review Boards Agency.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``1555. Professional staff.''.

    (b) Effective Date.--Section 1555 of title 10, United States Code, 
as added by subsection (a), shall take effect 180 days after the date 
of the enactment of this Act.

SEC. 543. EX PARTE COMMUNICATIONS.

    (a) In General.--(1) Chapter 79 of title 10, United States Code, is 
amended by adding after section 1555, as added by section 542(a)(1), 
the following new section:

``Sec. 1556. Ex parte communications prohibited

    ``(a) In General.--The Secretary of each military department shall 
ensure that an applicant seeking corrective action by the Army Review 
Boards Agency, the Air Force Review Boards Agency, or the Board for 
Correction of Naval Records, as the case may be, is provided a copy of 
all correspondence and communications (including summaries of verbal 
communications) to or from the agency or board, or a member of the 
staff of the agency or board, with an entity or person outside the 
agency or board that pertain directly to the applicant's case or have a 
material effect on the applicant's case.
    ``(b) Exceptions.--Subsection (a) does not apply to the following:
        ``(1) Classified information.
        ``(2) Information the release of which is otherwise prohibited 
    by law or regulation.
        ``(3) Any record previously provided to the applicant or known 
    to be possessed by the applicant.
        ``(4) Any correspondence that is purely administrative in 
    nature.
        ``(5) Any military record that is (or may be) provided to the 
    applicant by the Secretary of the military department or other 
    source.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to 1555, as added by section 
542(a)(2), the following new item:
``1556. Ex parte communications prohibited.''.

    (b) Effective Date.--Section 1556 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to correspondence 
and communications made 60 days or more after the date of the enactment 
of this Act.

SEC. 544. TIMELINESS STANDARDS.

    (a) In General.--Chapter 79 of title 10, United States Code, is 
amended by adding after section 1556, as added by section 543(a)(1), 
the following new section:

``Sec. 1557. Timeliness standards for disposition of applications 
            before Corrections Boards

    ``(a) Ten-Month Clearance Percentage.--Of the applications received 
by a Corrections Board during a period specified in the following 
table, the percentage on which final action by the Corrections Board 
must be completed within 10 months of receipt (other than for those 
applications considered suitable for administrative correction) is as 
follows:
  
The percentage on which final
``For applications
    Correction Board action
  received during--
    must be completed within
  
    10 months of receipt is--
    the period of fiscal years 2001 and 2002..................


                                                                  50    

    the period of fiscal years 2003 and 2004..................


                                                                  60    

    the period of fiscal years 2005, 2006, and 2007...........


                                                                  70    

    the period of fiscal years 2008, 2009, and 2010...........


                                                                  80    

    the period of any fiscal year after fiscal year 2010......


                                                                 90.    

    ``(b) Clearance Deadline for All Applications.--Effective October 
1, 2002, final action by a Corrections Board on all applications 
received by the Corrections Board (other than those applications 
considered suitable for administrative correction) shall be completed 
within 18 months of receipt.
    ``(c) Waiver Authority.--The Secretary of the military department 
concerned may exclude an individual application from the timeliness 
standards prescribed in subsections (a) and (b) if the Secretary 
determines that the application warrants a longer period of 
consideration. The authority of the Secretary of a military department 
under this subsection may not be delegated.
    ``(d) Failure To Meet Timeliness Standards Not To Affect Any 
Individual Application.--Failure of a Corrections Board to meet the 
applicable timeliness standard for any period of time under subsection 
(a) or (b) does not confer any presumption or advantage with respect to 
consideration by the board of any application.
    ``(e) Reports on Failure To Meet Timeliness Standards.--The 
Secretary of the military department concerned shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report not later than June 1 
following any fiscal year during which the Corrections Board of that 
Secretary's military department was unable to meet the applicable 
timeliness standard for that fiscal year under subsections (a) and (b). 
The report shall specify the reasons why the standard could not be met 
and the corrective actions initiated to ensure compliance in the 
future. The report shall also specify the number of waivers granted 
under subsection (c) during that fiscal year.
    ``(f) Corrections Board Defined.--In this section, the term 
`Corrections Board' means--
        ``(1) with respect to the Department of the Army, the Army 
    Board for Correction of Military Records;
        ``(2) with respect to the Department of the Navy, the Board for 
    Correction of Naval Records; and
        ``(3) with respect to the Department of the Air Force, the Air 
    Force Board for Correction of Military Records.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
1556, as added by section 543(a)(2), the following new item:
``1557. Timeliness standards for disposition of applications before 
          Corrections Boards.''.

SEC. 545. SCOPE OF CORRECTION OF MILITARY RECORDS.

    (a) Payment of Claims Arising From Correction.--Subsection (c) of 
section 1552 of title 10, United States Code, is amended in the first 
sentence by inserting before the period the following: ``, or on 
account of his or another's service as a civilian employee''.
    (b) Definition of Military Record.--Such section is further amended 
by adding at the end the following new subsection:
    ``(g) In this section, the term `military record' means a document 
or other record that pertains to (1) an individual member or former 
member of the armed forces, or (2) at the discretion of the Secretary 
of the military department concerned, any other military matter 
affecting a member or former member of the armed forces, an employee or 
former employee of that military department, or a dependent or current 
or former spouse of any such person. Such term does not include records 
pertaining to civilian employment matters (such as matters covered by 
title 5 and chapters 81, 83, 87, 108, 373, 605, 607, 643, and 873 of 
this title).''.
    (c) Report.--The Secretary of Defense shall submit to Congress, not 
later than March 31, 1999, a report on the effect of the six-year bar 
to retroactive benefits contained in section 3702 of title 31, United 
States Code, and the Secretary's recommendation as to whether it is 
appropriate for the Secretaries of the military departments to have 
authority to waive that limitation in selected cases involving 
implementation of decisions of the Secretary of a military department 
under chapter 79 of title 10, United States Code. The report shall be 
prepared in consultation with the Secretaries of the military 
departments.

                          Subtitle F--Reports

SEC. 551. REPORT ON PERSONNEL RETENTION.

    (a) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report containing information on the retention of members of 
the Armed Forces on active duty in the combat, combat support, and 
combat service support forces of the Army, Navy, Air Force, and Marine 
Corps.
    (b) Required Information.--The Secretary shall include in the 
report information on retention of members with military occupational 
specialties (or the equivalent) in combat, combat support, or combat 
service support positions in each of the Army, Navy, Air Force, and 
Marine Corps. Such information shall be shown by pay grade and shall be 
aggregated by enlisted grades and officers grades and shall be shown by 
military occupational specialty (or the equivalent). The report shall 
set forth separately (in numbers and as a percentage) the number of 
members separated during each such fiscal year who terminate service in 
the Armed Forces completely and the number who separate from active 
duty by transferring into a reserve component.
    (c) Years Covered by Report.--The report shall provide the 
information required in the report, shown on a fiscal year basis, for 
each of fiscal years 1989 through 1998.

SEC. 552. REPORT ON PROCESS FOR SELECTION OF MEMBERS FOR SERVICE ON 
              COURTS-MARTIAL.

    (a) Report Required.--Not later than April 15, 1999, the Secretary 
of Defense shall submit to Congress a report on the method of selection 
of members of the Armed Forces to serve on courts-martial.
    (b) Consideration of Alternatives.--In preparing the report, the 
Secretary shall examine alternatives, including random selection, to 
the current system of selection of members of courts-martial by the 
convening authority. Any alternative examined by the Secretary shall be 
consistent with the provisions relating to service on courts-martial 
specified in section 825(d) of title 10, United States Code (article 
25(d) of the Uniform Code of Military Justice). The Secretary shall 
include in the report the Secretary's evaluation of each alternative 
examined.
    (c) Views of Code Committee.--In preparing the report under 
subsection (a), the Secretary shall obtain the views of the members of 
the committee referred to in section 946 of such title (known as the 
``Code Committee'').

SEC. 553. REPORT ON PRISONERS TRANSFERRED FROM UNITED STATES 
              DISCIPLINARY BARRACKS, FORT LEAVENWORTH, KANSAS, TO 
              FEDERAL BUREAU OF PRISONS.

    (a) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a 
report, to be prepared by the General Counsel of the Department of 
Defense, concerning the decision of the Secretary of the Army in 1994 
to transfer approximately 500 prisoners from the United States 
Disciplinary Barracks, Fort Leavenworth, Kansas, to the Federal Bureau 
of Prisons.
    (b) Matters To Be Included.--The Secretary shall include in the 
report the following:
        (1) A description of the basis for the selection of prisoners 
    to be transferred, particularly in light of the fact that many of 
    the prisoners transferred are minimum or medium security prisoners, 
    who are considered to have the best chance for rehabilitation, and 
    whether the transfer of those prisoners indicates a change in 
    Department of Defense policy regarding the rehabilitation of 
    military prisoners.
        (2) A comparison of the historical recidivism rates of 
    prisoners released from the United States Disciplinary Barracks and 
    the Federal Bureau of Prisons, together with a description of any 
    plans of the Army to track the parole and recidivism rates of 
    prisoners transferred to the Federal Bureau of Prisons and whether 
    it has tracked those factors for previous transferees.
        (3) A description of the projected future flow of prisoners 
    into the new United States Disciplinary Barracks being constructed 
    at Fort Leavenworth, Kansas, and whether the Secretary of the Army 
    plans to automatically send new prisoners to the Federal Bureau of 
    Prisons without serving at the United States Disciplinary Barracks 
    if that Barracks is at capacity and whether the Memorandum of 
    Understanding between the Federal Bureau of Prisons and the Army 
    covers that possibility.
        (4) A description of the cost of incarcerating a prisoner in 
    the Federal Bureau of Prisons compared to the United States 
    Disciplinary Barracks and the assessment of the Secretary as to the 
    extent to which the transfer of prisoners to the Federal Bureau of 
    Prisons by the Secretary of the Army is made in order to shift a 
    budgetary burden.
    (c) Monitoring.--During fiscal years 1999 through 2003, the 
Secretary of the Army shall track the parole and recidivism rates of 
prisoners transferred from the United States Disciplinary Barracks, 
Fort Leavenworth, Kansas, to the Federal Bureau of Prisons.

SEC. 554. REVIEW AND REPORT REGARDING THE DISTRIBUTION OF NATIONAL 
              GUARD FULL-TIME SUPPORT AMONG THE STATES.

    (a) Requirement for Review.--The Chief of the National Guard Bureau 
shall review the process used for allocating and distributing all 
categories of full-time support personnel among the States for the 
National Guard of the States.
    (b) Purpose of Review.--The purpose of the review is to determine 
whether that allocation and distribution process provides for 
adequately meeting the full-time support personnel requirements of the 
National Guard in the case of those States that have fewer than 16 
National Guard units categorized in readiness tiers I, II, and III.
    (c) Matters To Be Reviewed.--The matters reviewed shall include the 
following:
        (1) The factors considered for the process of determining the 
    distribution among the States of full-time support personnel, 
    including the weights assigned to those factors.
        (2) The extent to which that process results in full-time 
    support personnel levels for the units of the States described in 
    subsection (b) that are at the levels necessary to optimize the 
    preparedness of those units to meet the mission requirements 
    applicable to those units.
        (3) The effects that full-time support personnel at levels 
    determined under that process will have on the National Guard of 
    those States in the future, including the effects on all categories 
    of full-time support personnel, and unit readiness, recruitment, 
    and continued use of existing National Guard armories and other 
    facilities.
    (d) Report.--Not later than March 15, 1999, the Chief of the 
National Guard Bureau shall submit to the Secretary of Defense a report 
on the results of the review. Not later than April 30, 1999, the 
Secretary shall transmit the report, and the Secretary's evaluation of 
and comments on the report, to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives.

                       Subtitle G--Other Matters

SEC. 561. TWO-YEAR EXTENSION OF CERTAIN FORCE DRAWDOWN TRANSITION 
              AUTHORITIES RELATING TO PERSONNEL MANAGEMENT AND 
              BENEFITS.

    (a) Early Retirement Authority for Active Force Members.--Section 
4403(i) of the National Defense Authorization Act for Fiscal Year 1993 
(10 U.S.C. 1293 note) is amended by striking out ``October 1, 1999'' 
and inserting in lieu thereof ``October 1, 2001''.
    (b) SSB and VSI.--Sections 1174a(h) and 1175(d)(3) of title 10, 
United States Code, are amended by striking out ``September 30, 1999'' 
and inserting in lieu thereof ``September 30, 2001''.
    (c) Selective Early Retirement Boards.--Section 638a(a) of such 
title is amended by striking out ``during the nine-year period 
beginning on October 1, 1990'' and inserting in lieu thereof ``during 
the period beginning on October 1, 1990, and ending on September 30, 
2001''.
    (d) Time-in-Grade Requirement for Retention of Grade Upon Voluntary 
Retirement.--Section 1370(a)(2)(A) of such title is amended by striking 
out ``during the nine-year period beginning on October 1, 1990'' and 
inserting in lieu thereof ``during the period beginning on October 1, 
1990, and ending on September 30, 2001''.
    (e) Minimum Commissioned Service for Voluntary Retirement as an 
Officer.--Sections 3911(b), 6323(a)(2), and 8911(b) of such title are 
amended by striking out ``during the nine-year period beginning on 
October 1, 1990'' and inserting in lieu thereof ``during the period 
beginning on October 1, 1990, and ending on September 30, 2001''.
    (f) Travel, Transportation, and Storage Benefits.-- Sections 
404(c)(1)(C), 404(f)(2)(B)(v), 406(a)(2)(B)(v), and 406(g)(1)(C) of 
title 37, United States Code, and section 503(c) of the National 
Defense Authorization Act for Fiscal Year 1991 (37 U.S.C. 406 note) are 
amended by striking out ``during the nine-year period beginning on 
October 1, 1990'' and inserting in lieu thereof ``during the period 
beginning on October 1, 1990, and ending on September 30, 2001''.
    (g) Educational Leave for Public and Community Service.--Section 
4463(f) of the National Defense Authorization Act for Fiscal Year 1993 
(10 U.S.C. 1143a note) is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``September 30, 2001''.
    (h) Transitional Health Benefits.--Section 1145 of title 10, United 
States Code, is amended--
        (1) in subsections (a)(1) and (c)(1), by striking out ``during 
    the nine-year period beginning on October 1, 1990'' and inserting 
    in lieu thereof ``during the period beginning on October 1, 1990, 
    and ending on September 30, 2001''; and
        (2) in subsection (e), by striking out ``during the five-year 
    period beginning on October 1, 1994'' and inserting in lieu thereof 
    ``during the period beginning on October 1, 1994, and ending on 
    September 30, 2001''.
    (i) Transitional Commissary and Exchange Benefits.-- Section 1146 
of such title is amended--
        (1) by striking out ``during the nine-year period beginning on 
    October 1, 1990'' and inserting in lieu thereof ``during the period 
    beginning on October 1, 1990, and ending on September 30, 2001''; 
    and
        (2) by striking out ``during the five-year period beginning on 
    October 1, 1994'' and inserting in lieu thereof ``during the period 
    beginning on October 1, 1994, and ending on September 30, 2001''.
    (j) Transitional Use of Military Housing.--Section 1147(a) of such 
title is amended--
        (1) in paragraph (1), by striking out ``during the nine-year 
    period beginning on October 1, 1990'' and inserting in lieu thereof 
    ``during the period beginning on October 1, 1990, and ending on 
    September 30, 2001''; and
        (2) in paragraph (2), by striking out ``during the five-year 
    period beginning on October 1, 1994'' and inserting in lieu thereof 
    ``during the period beginning on October 1, 1994, and ending on 
    September 30, 2001''.
    (k) Continued Enrollment of Dependents in Defense Dependents' 
Education System.--Section 1407(c)(1) of the Defense Dependents' 
Education Act of 1978 (20 U.S.C. 926(c)(1)) is amended by striking out 
``during the nine-year period beginning on October 1, 1990'' and 
inserting in lieu thereof ``during the period beginning on October 1, 
1990, and ending on September 30, 2001''.
    (l) Force Reduction Transition Period Definition.--Section 4411 of 
the National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 
12681 note) is amended by striking out ``September 30, 1999'' and 
inserting in lieu thereof ``September 30, 2001''.
    (m) Temporary Special Authority for Force Reduction Period 
Retirements.--Section 4416(b)(1) of the National Defense Authorization 
Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is amended by striking 
out ``October 1, 1999'' and inserting in lieu thereof ``October 1, 
2001''.
    (n) Retired Pay for Non-Regular Service.--(1) Section 12731(f) of 
title 10, United States Code, is amended by striking out ``September 
30, 1999'' and inserting in lieu thereof ``September 30, 2001''.
    (2) Section 12731a of such title is amended in subsections 
(a)(1)(B) and (b) by striking out ``October 1, 1999'' and inserting in 
lieu thereof ``October 1, 2001''.
    (o) Reduction of Time-in-Grade Requirement for Retention of Grade 
Upon Voluntary Retirement.--Section 1370(d) of such title is amended by 
adding at the end the following new paragraph:
    ``(5) The Secretary of Defense may authorize the Secretary of a 
military department to reduce the 3-year period required by paragraph 
(3)(A) to a period not less than 2 years in the case of retirements 
effective during the period beginning on the date of the enactment of 
this paragraph and ending on September 30, 2001. The number of reserve 
commissioned officers of an armed force in the same grade for whom a 
reduction is made during any fiscal year in the period of service-in-
grade otherwise required under this paragraph may not exceed the number 
equal to 2 percent of the strength authorized for that fiscal year for 
reserve commissioned officers of that armed force in an active status 
in that grade.''.
    (p) Affiliation With Guard and Reserve Units; Waiver of Certain 
Limitations.--Section 1150(a) of such title is amended by striking out 
``during the nine-year period beginning on October 1, 1990'' and 
inserting in lieu thereof ``during the period beginning on October 1, 
1990, and ending on September 30, 2001''.
    (q) Reserve Montgomery GI Bill.--Section 16133(b)(1)(B) of such 
title is amended by striking out ``September 30, 1999'' and inserting 
in lieu thereof ``September 30, 2001''.

SEC. 562. LEAVE WITHOUT PAY FOR SUSPENDED ACADEMY CADETS AND 
              MIDSHIPMEN.

    (a) Authority.--Section 702 of title 10, United States Code, is 
amended--
        (1) by designating the second sentence of subsection (b) as 
    subsection (d);
        (2) by redesignating subsection (b) as subsection (c); and
        (3) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) Involuntary Leave Without Pay for Suspended Academy Cadets 
and Midshipmen.--(1) Under regulations prescribed under subsection (d), 
the Secretary concerned may place an academy cadet or midshipman on 
involuntary leave for any period during which the Superintendent of the 
Academy at which the cadet or midshipman is admitted has suspended the 
cadet or midshipman from duty at the Academy--
        ``(A) pending separation from the Academy;
        ``(B) pending return to the Academy to repeat an academic 
    semester or year; or
        ``(C) for other good cause.
    ``(2) A cadet or midshipman placed on involuntary leave under 
paragraph (1) is not entitled to any pay under section 230(c) of title 
37 for the period of the leave.
    ``(3) Return of an academy cadet or midshipman to a pay status at 
the Academy concerned from involuntary leave status under paragraph (1) 
does not restore any entitlement of the cadet or midshipman to pay for 
the period of the involuntary leave.''.
    (b) Definition.--Such section is further amended--
        (1) in subsection (c) (as redesignated by subsection (a)(2)), 
    by striking out ``cadets at'' and all that follows through ``Naval 
    Academy,'' and inserting in lieu thereof ``academy cadets or 
    midshipmen''; and
        (2) by adding at the end the following new subsection:
    ``(e) Definition.--In this section, the term `academy cadet or 
midshipman' means--
        ``(1) a cadet of the United States Military Academy;
        ``(2) a midshipman of the United States Naval Academy;
        ``(3) a cadet of the United States Air Force Academy; or
        ``(4) a cadet of the United States Coast Guard Academy.''.
    (c) Subsection Headings.--Such section is further amended--
        (1) in subsection (a), by inserting ``Graduation Leave.--'' 
    after ``(a)'';
        (2) in subsection (c) (as redesignated by subsection (a)(2)), 
    by inserting ``Inapplicable Leave Provisions.--'' after ``(c)''; 
    and
        (3) in subsection (d) (as designated by subsection (a)(1)), by 
    inserting ``Regulations.--'' after ``(d)''.

SEC. 563. CONTINUED ELIGIBILITY UNDER VOLUNTARY SEPARATION INCENTIVE 
              PROGRAM FOR MEMBERS WHO INVOLUNTARILY LOSE MEMBERSHIP IN 
              A RESERVE COMPONENT.

    (a) Period of Eligibility.--Subsection (a) of section 1175 of title 
10, United States Code, is amended--
        (1) by inserting ``(1)'' after ``(a)'';
        (2) by striking out ``, for the period of time the member 
    serves in a reserve component''; and
        (3) by adding at the end the following:
    ``(2)(A) Except as provided in subparagraph (B), a financial 
incentive provided a member under this section shall be paid for the 
period equal to twice the number of years of service of the member, 
computed as provided in subsection (e)(5).
    ``(B) If, before the expiration of the period otherwise applicable 
under subparagraph (A) to a member receiving a financial incentive 
under this section, the member is separated from a reserve component or 
is transferred to the Retired Reserve, the period for payment of a 
financial incentive to the member under this section shall terminate on 
the date of the separation or transfer unless--
        ``(i) the separation or transfer is required by reason of the 
    age or number of years of service of the member;
        ``(ii) the separation or transfer is required by reason of the 
    failure of selection for promotion or the medical disqualification 
    of the member, except in a case in which the Secretary of Defense 
    or the Secretary of Transportation determines that the basis for 
    the separation or transfer is a result of a deliberate action taken 
    by the member with the intent to avoid retention in the Ready 
    Reserve or Standby Reserve; or
        ``(iii) in the case of a separation, the member is separated 
    from the reserve component for appointment or enlistment in or 
    transfer to another reserve component of an armed force for service 
    in the Ready Reserve or Standby Reserve of that armed force.''.
    (b) Repeal of Superseded Provision.--Subsection (e)(1) of such 
section is amended by striking out the second sentence.
    (c) Effective Date.--The amendments made by this section apply with 
respect to any person provided a voluntary separation incentive under 
section 1175 of title 10, United States Code (whether before, on, or 
after the date of the enactment of this Act).

SEC. 564. REINSTATEMENT OF DEFINITION OF FINANCIAL INSTITUTION IN 
              AUTHORITIES FOR REIMBURSEMENT OF DEFENSE PERSONNEL FOR 
              GOVERNMENT ERRORS IN DIRECT DEPOSIT OF PAY.

    (a) Members of the Armed Forces.--Paragraph (1) of section 1053(d) 
of title 10, United States Code, is amended to read as follows:
        ``(1) The term `financial institution' means a bank, savings 
    and loan association, or similar institution or a credit union 
    chartered by the United States or a State.''.
    (b) Civilian Personnel.--Paragraph (1) of section 1594(d) of such 
title is amended to read as follows:
        ``(1) The term `financial institution' means a bank, savings 
    and loan association, or similar institution or a credit union 
    chartered by the United States or a State.''.

SEC. 565. INCREASE IN MAXIMUM AMOUNT FOR COLLEGE FUND PROGRAM.

    (a) Increase in Maximum Rate for Active Component Montgomery GI 
Bill Supplement.--Section 3015(d) of title 38, United States Code, is 
amended--
        (1) by inserting ``, at the time the individual first becomes a 
    member of the Armed Forces,'' after ``Secretary of Defense, may''; 
    and
        (2) by striking out ``$400'' and all that follows through 
    ``that date'' and inserting in lieu thereof ``$950 per month''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1998, and shall apply with respect to 
individuals who first become members of the Armed Forces on or after 
that date.

SEC. 566. CENTRAL IDENTIFICATION LABORATORY, HAWAII.

    (a) Sense of Congress.--It is the sense of Congress that the 
Central Identification Laboratory, Hawaii, of the Department of the 
Army is an important element of the Department of Defense and is 
critical to the full accounting of members of the Armed Forces who have 
been classified as POW/MIAs or are otherwise unaccounted for.
    (b) Required Staffing Level.--The Secretary of Defense shall 
provide sufficient personnel to fill all authorized personnel positions 
of the Central Identification Laboratory, Hawaii, Department of the 
Army. Those personnel shall be drawn from members of the Army, Navy, 
Air Force, and Marine Corps and from civilian personnel, as 
appropriate, considering the proportion of POW/MIAs from each service.
    (c) Joint Manning Plan.--The Secretary of Defense shall develop and 
implement, not later than March 31, 2000, a joint manning plan to 
ensure the appropriate participation of the four services in the 
staffing of the Central Identification Laboratory, Hawaii, as required 
by subsection (b).
    (d) Limitation on Reductions.--The Secretary of the Army may not 
carry out any personnel reductions (in authorized or assigned 
personnel) at the Central Identification Laboratory, Hawaii, until the 
joint manning plan required by subsection (c) is implemented.

SEC. 567. MILITARY FUNERAL HONORS FOR VETERANS.

    (a) Conference on Practices Concerning Military Honors at Funerals 
for Veterans.--(1) The Secretary of Defense, in consultation with the 
Secretary of Veterans Affairs, shall convene and preside over a 
conference, to be completed not later than December 31, 1998, for the 
purpose of determining means of improving and increasing the 
availability of military funeral honors for veterans. The Secretary of 
Veterans Affairs shall also participate in the conference.
    (2) The Secretaries shall invite and encourage the participation at 
the conference of appropriate representatives of veterans service 
organizations.
    (3) The conference shall perform the following:
        (A) Review current policies and practices of the military 
    departments and the Department of Veterans Affairs relating to the 
    provision of military funeral honors for veterans.
        (B) Consider alternative methods for providing military funeral 
    honors for veterans and develop new strategies for providing those 
    honors.
        (C) Determine what resources may be available outside the 
    Department of Defense that could be used to provide military 
    funeral honors for veterans.
        (D) Analyze the costs associated with providing military 
    funeral honors for veterans, including the costs associated with 
    using personnel and other resources for that purpose.
        (E) Assess trends in the rate of death of veterans.
        (F) Propose, consider, and determine means of improving and 
    increasing the availability of military funeral honors for 
    veterans.
    (4) Not later than March 31, 1999, the Secretary of Defense shall 
submit to Congress a report on the conference. The report shall set 
forth any modifications to Department of Defense directives on military 
funeral honors adopted as a result of the conference and include any 
recommendations for legislation that the Secretary considers 
appropriate as a result of the conference.
    (b) Honor Guard Details at Funerals of Veterans.--(1) Chapter 75 of 
title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 1491. Honor guard details at funerals of veterans

    ``(a) Availability.--The Secretary of a military department shall, 
upon request, provide an honor guard detail (or ensure that an honor 
guard detail is provided) for the funeral of any veteran that occurs 
after December 31, 1999.
    ``(b) Composition of Honor Guard Details.--The Secretary of each 
military department shall ensure that an honor guard detail for the 
funeral of a veteran consists of not less than three persons and 
(unless a bugler is part of the detail) has the capability to play a 
recorded version of Taps.
    ``(c) Persons Forming Honor Guards.--An honor guard detail may 
consist of members of the armed forces or members of veterans 
organizations or other organizations approved for purposes of this 
section under regulations prescribed by the Secretary of Defense. The 
Secretary of a military department may provide transportation, or 
reimbursement for transportation, and expenses for a person who 
participates in an honor guard detail under this section and is not a 
member of the armed forces or an employee of the United States.
    ``(d) Regulations.--The Secretary of Defense shall by regulation 
establish a system for selection of units of the armed forces and other 
organizations to provide honor guard details. The system shall place an 
emphasis on balancing the funeral detail workload among the units and 
organizations providing honor guard details in an equitable manner as 
they are able to respond to requests for such details in terms of 
geographic proximity and available resources. The Secretary shall 
provide in such regulations that the armed force in which a veteran 
served shall not be considered to be a factor when selecting the 
military unit or other organization to provide an honor guard detail 
for the funeral of the veteran.
    ``(e) Annual Report.--The Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report not later than 
January 31 of each year beginning with 2001 and ending with 2005 on the 
experience of the Department of Defense under this section. Each such 
report shall provide data on the number of funerals supported under 
this section, the cost for that support, shown by manpower and other 
cost factors, and the number and costs of funerals supported by each 
participating organization. The data in the report shall be presented 
in a standard format, regardless of military department or other 
organization.
    ``(f) Veteran Defined.--In this section, the term `veteran' has the 
meaning given that term in section 101(2) of title 38.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``1491. Honor guard details at funerals of veterans.''.

    (c) Treatment of Performance of Honor Guard Functions by 
Reserves.--(1) Chapter 1215 of title 10, United States Code, is amended 
by adding at the end the following new section:

``Sec. 12552. Funeral honor guard functions: prohibition of treatment 
            as drill or training

    ``Performance by a Reserve of honor guard functions at the funeral 
of a veteran may not be considered to be a period of drill or training 
otherwise required.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``12552. Funeral honor guard functions: prohibition of treatment as 
          drill or training.''.

    (d) Repeal of Limitation on Availability of Funds for Honor Guard 
Functions by National Guard.--Section 114 of title 32, United States 
Code, is amended--
        (1) by striking out ``(a)''; and
        (2) by striking out subsection (b).
    (e) Veterans Service Organization Defined.--In this section, the 
term ``veterans service organization'' means any organization 
recognized by the Secretary of Veterans Affairs under section 5902 of 
title 38, United States Code.

SEC. 568. STATUS IN THE NAVAL RESERVE OF CADETS AT THE MERCHANT MARINE 
              ACADEMY.

    Section 1303(c) of the Merchant Marine Act, 1936 (46 U.S.C. App. 
1295(c)), is amended--
        (1) by inserting ``(1)'' after ``(c)'';
        (2) by striking out ``may'' and inserting in lieu thereof 
    ``shall''; and
        (3) by adding at the end the following:
    ``(2) The Secretary of the Navy shall provide for cadets of the 
Academy who are midshipmen in the United States Naval Reserve to be 
issued an identification card (referred to as a `military ID card') and 
to be entitled to all rights and privileges in accordance with the same 
eligibility criteria as apply to other members of the Ready Reserve of 
the reserve components of the Armed Forces.
    ``(3) The Secretary of the Navy shall carry out paragraphs (1) and 
(2) in coordination with the Secretary.''.

SEC. 569. REPEAL OF RESTRICTION ON CIVILIAN EMPLOYMENT OF ENLISTED 
              MEMBERS.

    (a) Repeal.--Section 974 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 49 of such title is amended by striking out the item relating 
to section 974.

SEC. 570. TRANSITIONAL COMPENSATION FOR ABUSED DEPENDENT CHILDREN NOT 
              RESIDING WITH THE SPOUSE OR FORMER SPOUSE OF A MEMBER 
              CONVICTED OF DEPENDENT ABUSE.

    (a) Entitlement Not Conditioned on Forfeiture of Spousal 
Compensation.--Subsection (d) of section 1059 of title 10, United 
States Code, is amended--
        (1) in paragraph (1)--
            (A) by striking out ``(except as otherwise provided in this 
        subsection)''; and
            (B) by inserting before the period the following: ``, 
        including an amount (determined under subsection (f)(2)) for 
        each, if any, dependent child of the individual described in 
        subsection (b) who resides in the same household as that spouse 
        or former spouse'';
        (2) in paragraph (2)--
            (A) by striking out ``(but for subsection (g)) would be 
        eligible'' and inserting in lieu thereof ``is or, but for 
        subsection (g), would be eligible''; and
            (B) by striking out ``such compensation'' and inserting in 
        lieu thereof ``compensation under this section''; and
        (3) in paragraph (4), by striking out ``For purposes of 
    paragraphs (2) and (3)'' and inserting in lieu thereof ``For 
    purposes of this subsection''.
    (b) Amount of Payment.--Subsection (f)(2) of such section is 
amended by striking out ``has custody of a dependent child or children 
of the member'' and inserting in lieu thereof ``has custody of a 
dependent child of the member who resides in the same household as that 
spouse or former spouse''.
    (c) Prospective Applicability.--No benefits shall accrue by reason 
of the amendments made by this section for any month that begins before 
the date of the enactment of this Act.

SEC. 571. PILOT PROGRAM FOR TREATING GED AND HOME SCHOOL DIPLOMA 
              RECIPIENTS AS HIGH SCHOOL GRADUATES FOR DETERMINATIONS OF 
              ELIGIBILITY FOR ENLISTMENT IN THE ARMED FORCES.

    (a) Program Required.--The Secretary of Defense shall establish a 
pilot program to assess whether the Armed Forces could better meet 
recruiting requirements by treating GED recipients and home school 
diploma recipients as having graduated from high school with a high 
school diploma for the purpose of determining the eligibility of those 
persons to enlist in the Armed Forces. The Secretary of each military 
department shall administer the pilot program for the Armed Force or 
armed forces under the jurisdiction of that Secretary.
    (b) Persons Eligible Under the Pilot Program as High School 
Graduates.--Under the pilot program, a person shall be treated as 
having graduated from high school with a high school diploma for the 
purpose described in subsection (a) if--
        (1) the person has completed a general education development 
    program while participating in the National Guard Challenge Program 
    under section 509 of title 32, United States Code, and is a GED 
    recipient; or
        (2) the person is a home school diploma recipient and provides 
    a transcript demonstrating completion of high school to the 
    military department involved under the pilot program.
    (c) GED and Home School Diploma Recipients.--For the purposes of 
this section--
        (1) a person is a GED recipient if the person, after completing 
    a general education development program, has obtained certification 
    of high school equivalency by meeting State requirements and 
    passing a State approved exam that is administered for the purpose 
    of providing an appraisal of the person's achievement or 
    performance in the broad subject matter areas usually required for 
    high school graduates; and
        (2) a person is a home school diploma recipient if the person 
    has received a diploma for completing a program of education 
    through the high school level at a home school, without regard to 
    whether the home school is treated as a private school under the 
    law of the State in which located.
    (d) Annual Limit on Number.--Not more than 1,250 GED recipients and 
home school diploma recipients enlisted by an armed force during a 
fiscal year may be treated under the pilot program as having graduated 
from high school with a high school diploma.
    (e) Duration of Pilot Program.--The pilot program shall be in 
effect during the period beginning on October 1, 1998, and ending on 
September 30, 2003.
    (f) Report.--Not later than February 1, 2004, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives 
a report on the pilot program. The report shall include the following, 
set forth separately for GED recipients and home school diploma 
recipients:
        (1) The assessment of the Secretary of Defense, and any 
    assessment of any of the Secretaries of the military departments, 
    regarding the value of, and any necessity for, authority to treat 
    GED recipients and home school diploma recipients as having 
    graduated from high school with a high school diploma for the 
    purpose of determining the eligibility of those persons to enlist 
    in the Armed Forces.
        (2) A comparison (shown by armed force and by each fiscal year 
    of the pilot program) of the performance of the persons who 
    enlisted during the fiscal year as GED or home school diploma 
    recipients treated under the pilot program as having graduated from 
    high school with a high school diploma with the performance of the 
    persons who enlisted in that armed force during the same fiscal 
    year after having graduated from high school with a high school 
    diploma, with respect to the following:
            (A) Attrition.
            (B) Discipline.
            (C) Adaptability to military life.
            (D) Aptitude for mastering the skills necessary for 
        technical specialties.
            (E) Reenlistment rates.
    (g) State Defined.--For purposes of this section, the term 
``State'' includes the District of Columbia, the Commonwealth of Puerto 
Rico, and the territories of the United States.

SEC. 572. SENSE OF CONGRESS CONCERNING NEW PARENT SUPPORT PROGRAM AND 
              MILITARY FAMILIES.

    (a) Sense of Congress.--It is the sense of Congress that--
        (1) the New Parent Support Program that was begun as a pilot 
    program of the Marine Corps at Camp Pendleton, California, has been 
    an effective tool in curbing family violence within the military 
    community;
        (2) such program is a model for future New Parent Support 
    Programs throughout the Marine Corps, Navy, Army, and Air Force; 
    and
        (3) in light of the pressures and strains placed upon military 
    families and the benefits of the New Parent Support Program in 
    helping ``at-risk'' families, the Department of Defense should seek 
    ways to ensure that in future fiscal years funds are made available 
    for New Parent Support Programs for the Army, Navy, Air Force, and 
    Marine Corps in amounts sufficient to meet requirements for those 
    programs.
    (b) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the New Parent Support Program of the Department 
of Defense. The Secretary shall include in the report the following:
        (1) A description of how the Army, Navy, Air Force, and Marine 
    Corps are each implementing a New Parent Support Program and how 
    each such program is organized.
        (2) A description of how the implementation of programs for the 
    Army, Navy, and Air Force compare to the fully implemented Marine 
    Corps program.
        (3) The number of installations that the four Armed Forces have 
    each scheduled to receive support for the New Parent Support 
    Program.
        (4) The number of installations delayed in providing the 
    program.
        (5) The number of programs terminated.
        (6) The number of programs with reduced support.
        (7) The funding provided for those programs for each of the 
    four Armed Forces for each of fiscal years 1994 through 1999 and 
    the amount projected to be provided for those programs for fiscal 
    year 2000 and, if the amount provided for any of those programs for 
    any such year is less that the amount needed to fully fund that 
    program for that year, an explanation of the reasons for the 
    shortfall.

SEC. 573. ADVANCEMENT OF BENJAMIN O. DAVIS, JUNIOR, TO GRADE OF GENERAL 
              ON THE RETIRED LIST OF THE AIR FORCE.

    (a) Authority.--The President is authorized to advance Lieutenant 
General Benjamin O. Davis, Junior, United States Air Force, retired, to 
the grade of general on the retired list of the Air Force.
    (b) Additional Benefits Not To Accrue.--An advancement of Benjamin 
O. Davis, Junior, to the grade of general on the retired list of the 
Air Force under subsection (a) shall not increase or change the 
compensation or benefits from the United States to which any person is 
now or may in the future be entitled based upon the military service of 
the said Benjamin O. Davis, Junior.

SEC. 574. SENSE OF THE HOUSE OF REPRESENTATIVES CONCERNING ADHERENCE BY 
              CIVILIANS IN MILITARY CHAIN OF COMMAND TO THE STANDARD OF 
              EXEMPLARY CONDUCT REQUIRED OF COMMANDING OFFICERS AND 
              OTHERS IN AUTHORITY IN THE ARMED FORCES.

    It is the sense of the House of Representatives that civilians in 
the military chain of command (as provided in section 162(b) of title 
10, United States Code) should (in the same manner as is required by 
law of commanding officers and others in authority in the Armed 
Forces)--
        (1) show in themselves a good example of virtue, honor, and 
    patriotism and subordinate themselves to those ideals;
        (2) be vigilant in inspecting the conduct of all persons who 
    are placed under their command;
        (3) guard against and put an end to all dissolute and immoral 
    practices and correct, according to the laws and regulations of the 
    Armed Forces, all persons who are guilty of them; and
        (4) take all necessary and proper measures, under the laws, 
    regulations, and customs of the Armed Forces, to promote and 
    safeguard the morale, the physical well-being, and the general 
    welfare of the officers and enlisted persons under their command or 
    charge.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec.601.Increase in basic pay for fiscal year 1999.
Sec.602.Rate of pay for cadets and midshipmen at the service academies.
Sec.603.Basic allowance for housing outside the United States.
Sec.604.Basic allowance for subsistence for reserves.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec.611.Three-month extension of certain bonuses and special pay 
          authorities for reserve forces.
Sec.612.Three-month extension of certain bonuses and special pay 
          authorities for nurse officer candidates, registered nurses, 
          and nurse anesthetists.
Sec.613.Three-month extension of authorities relating to payment of 
          other bonuses and special pays.
Sec.614.Increased hazardous duty pay for aerial flight crewmembers in 
          certain pay grades.
Sec.615.Aviation career incentive pay and aviation officer retention 
          bonus.
Sec.616.Diving duty special pay for divers having diving duty as a 
          nonprimary duty.
Sec.617.Hardship duty pay.
Sec.618.Selective reenlistment bonus eligibility for Reserve members 
          performing active Guard and Reserve duty.
Sec.619.Repeal of 10 percent limitation on certain selective 
          reenlistment bonuses.
Sec.620.Increase in maximum amount authorized for Army enlistment bonus.
Sec.621.Equitable treatment of Reserves eligible for special pay for 
          duty subject to hostile fire or imminent danger.
Sec.622.Retention incentives initiative for critically short military 
          occupational specialties.

            Subtitle C--Travel and Transportation Allowances

Sec.631.Payments for movements of household goods arranged by members.
Sec.632.Exception to maximum weight allowance for baggage and household 
          effects.
Sec.633.Travel and transportation allowances for travel performed by 
          members in connection with rest and recuperative leave from 
          overseas stations.
Sec.634.Storage of baggage of certain dependents.
Sec.635.Commercial travel of Reserves at Federal supply schedule rates 
          for attendance at inactive-duty training assemblies.

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

Sec.641.Paid-up coverage under Survivor Benefit Plan.
Sec.642.Survivor Benefit Plan open enrollment period.
Sec.643.Effective date of court-required former spouse Survivor Benefit 
          Plan coverage effectuated through elections and deemed 
          elections.
Sec.644.Presentation of United States flag to members of the Armed 
          Forces upon retirement.
Sec.645.Recovery, care, and disposition of remains of medically retired 
          member who dies during hospitalization that begins while on 
          active duty.
Sec.646.Revision to computation of retired pay for certain members.
Sec.647.Elimination of backlog of unpaid retired pay.

                        Subtitle E--Other Matters

Sec.651.Definition of possessions of the United States for pay and 
          allowances purposes.
Sec.652.Accounting of advance payments.
Sec.653.Reimbursement of rental vehicle costs when motor vehicle 
          transported at Government expense is late.
Sec.654.Education loan repayment program for health professions officers 
          serving in Selected Reserve.
Sec.655.Federal employees' compensation coverage for students 
          participating in certain officer candidate programs.
Sec.656.Relationship of enlistment bonuses to eligibility to receive 
          Army college fund supplement under Montgomery GI Bill 
          Educational Assistance Program.
Sec.657.Authority to provide financial assistance for education of 
          certain defense dependents overseas.
Sec.658.Clarifications concerning payments to certain persons captured 
          or interned by North Vietnam.

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1999.

    (a) Waiver of Section 1009 Adjustment.--Except as provided in 
subsection (b), the adjustment to become effective during fiscal year 
1999 required by section 1009 of title 37, United States Code, in the 
rate of monthly basic pay authorized members of the uniformed services 
by section 203(a) of such title shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 1999, the rates 
of basic pay of members of the uniformed services shall be increased by 
the greater of--
        (1) 3.6 percent; or
        (2) the percentage increase determined under subsection (c) of 
    section 1009 of title 37, United States Code, by which the monthly 
    basic pay of members would be adjusted under subsection (a) of that 
    section on that date in the absence of subsection (a) of this 
    section.

SEC. 602. RATE OF PAY FOR CADETS AND MIDSHIPMEN AT THE SERVICE 
              ACADEMIES.

    (a) Increased Rate.--Section 203(c) of title 37, United States 
Code, is amended by striking out ``$558.04'' and inserting in lieu 
thereof ``$600.00''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1999.

SEC. 603. BASIC ALLOWANCE FOR HOUSING OUTSIDE THE UNITED STATES.

    (a) Payment of Certain Expenses Related to Overseas Housing.--
Section 403(c) of title 37, United States Code, is amended by adding at 
the end the following new paragraph:
    ``(3)(A) In the case of a member of the uniformed services 
authorized to receive an allowance under paragraph (1), the Secretary 
concerned may make a lump-sum payment to the member for required 
deposits and advance rent, and for expenses relating thereto, that 
are--
        ``(i) incurred by the member in occupying private housing 
    outside of the United States; and
        ``(ii) authorized or approved under regulations prescribed by 
    the Secretary concerned.
    ``(B) Expenses for which a member may be reimbursed under this 
paragraph may include losses relating to housing that are sustained by 
the member as a result of fluctuations in the relative value of the 
currencies of the United States and the foreign country in which the 
housing is located.
    ``(C) The Secretary concerned shall recoup the full amount of any 
deposit or advance rent payments made by the Secretary under 
subparagraph (A), including any gain resulting from currency 
fluctuations between the time of payment and the time of recoupment.''.
    (b) Conforming Amendment.--Section 405 of title 37, United States 
Code, is amended by striking out subsection (c).
    (c) Retroactive Application.--The reimbursement authority provided 
by section 403(c)(3)(B) of title 37, United States Code, as added by 
subsection (a), applies with respect to losses relating to housing that 
are sustained, on or after July 1, 1997, by a member of the uniformed 
services as a result of fluctuations in the relative value of the 
currencies of the United States and the foreign country in which the 
housing is located.

SEC. 604. BASIC ALLOWANCE FOR SUBSISTENCE FOR RESERVES.

    (a) In General.--Section 402 of title 37, United States Code, is 
amended--
        (1) by redesignating subsections (e) and (f) as subsections (f) 
    and (g), respectively; and
        (2) by inserting after subsection (d) the following new 
    subsection:
    ``(e) Special Rule for Certain Enlisted Reserve Members.--Unless 
entitled to basic pay under section 204 of this title, an enlisted 
member of a reserve component may receive, at the discretion of the 
Secretary concerned, rations in kind, or a part thereof, when the 
member's instruction or duty periods, as described in section 206(a) of 
this title, total at least 8 hours in a calendar day. The Secretary 
concerned may provide an enlisted member who could be provided rations 
in kind under the preceding sentence with a commutation when rations in 
kind are not available.''.
    (b) Application During Transitional Period.--Section 602(d)(1) of 
the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 37 U.S.C. 402 note) is amended by adding at the end the 
following new subparagraph:
            ``(D) Special rule for certain enlisted reserve members.--
        Unless entitled to basic pay under section 204 of title 37, 
        United States Code, an enlisted member of a reserve component 
        (as defined in section 101(24) of such title) may receive, at 
        the discretion of the Secretary concerned (as defined in 
        section 101(5) of such title), rations in kind, or a part 
        thereof, when the member's instruction or duty periods (as 
        described in section 206(a) of such title) total at least 8 
        hours in a calendar day. The Secretary concerned may provide an 
        enlisted member who could be provided rations in kind under the 
        preceding sentence with a commutation when rations in kind are 
        not available.''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. THREE-MONTH EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
              AUTHORITIES FOR RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short 
Wartime Specialties.--Section 302g(f) of title 37, United States Code, 
is amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``December 31, 1999''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of title 37, United States Code, is 
amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``December 31, 1999''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking out 
``September 30, 1999'' and inserting in lieu thereof ``December 31, 
1999''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37, 
United States Code, as redesignated by section 622, is amended by 
striking out ``September 30, 1999'' and inserting in lieu thereof 
``December 31, 1999''.
    (h) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, 
United States Code, is amended by striking out ``October 1, 1999'' and 
inserting in lieu thereof ``January 1, 2000''.

SEC. 612. THREE-MONTH EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
              AUTHORITIES FOR NURSE OFFICER CANDIDATES, REGISTERED 
              NURSES, AND NURSE ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking out ``September 
30, 1999'' and inserting in lieu thereof ``December 31, 1999''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 
30, 1999'' and inserting in lieu thereof ``December 31, 1999''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking out 
``September 30, 1999'' and inserting in lieu thereof ``December 31, 
1999''.

SEC. 613. THREE-MONTH EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
              OTHER BONUSES AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking out ``September 30, 1999,'' 
and inserting in lieu thereof ``December 31, 1999,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (c) Enlistment Bonuses for Members With Critical Skills.--Sections 
308a(c) and 308f(c) of title 37, United States Code, are each amended 
by striking out ``September 30, 1999'' and inserting in lieu thereof 
``December 31, 1999''.
    (d) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``December 31, 1999''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1999'' 
and inserting in lieu thereof ``December 31, 1999''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of 
title 37, United States Code, is amended by striking out ``October 1, 
1999'' and inserting in lieu thereof ``October 1, 1998, and the 15-
month period beginning on that date and ending on December 31, 1999''.

SEC. 614. INCREASED HAZARDOUS DUTY PAY FOR AERIAL FLIGHT CREWMEMBERS IN 
              CERTAIN PAY GRADES.

    (a) Rates.--The table in section 301(b) of title 37, United States 
Code, is amended by striking out the items relating to pay grades E-4, 
E-5, E-6, E-7, E-8, and E-9, and inserting in lieu thereof the 
following:

    ``E-9.........................................................
                                                                    240 
    E-8...........................................................
                                                                    240 
    E-7...........................................................
                                                                    240 
    E-6...........................................................
                                                                    215 
    E-5...........................................................
                                                                    190 
    E-4...........................................................
                                                                  165''.

    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1998, and shall apply with respect to months 
beginning on or after that date.

SEC. 615. AVIATION CAREER INCENTIVE PAY AND AVIATION OFFICER RETENTION 
              BONUS.

    (a) Definition of Aviation Service.--(1) Section 301a(a)(6) of 
title 37, United States Code, is amended--
        (A) by redesignating subparagraphs (A), (B), and (C) as 
    subparagraphs (B), (C), and (D), respectively; and
        (B) by inserting before subparagraph (B) (as so redesignated) 
    the following new subparagraph:
        ``(A) The term `aviation service' means service performed by an 
    officer (except a flight surgeon or other medical officer) while 
    holding an aeronautical rating or designation or while in training 
    to receive an aeronautical rating or designation.''.
    (2) Section 301b(j) of such title is amended by striking out 
paragraph (1) and inserting in lieu thereof the following new 
paragraph:
        ``(1) The term `aviation service' means service performed by an 
    officer (except a flight surgeon or other medical officer) while 
    holding an aeronautical rating or designation or while in training 
    to receive an aeronautical rating or designation.''.
    (b) Amount of Incentive Pay.--Subsection (b) of section 301a of 
such title is amended to read as follows:
    ``(b)(1) A member who satisfies the requirements described in 
subsection (a) is entitled to monthly incentive pay as follows:

``Years of aviation service (including
                                                                 Monthly
  flight training) as an officer:
                                                                    rate
    2 or less.....................................................
                                                                    $125
    Over 2........................................................
                                                                    $156
    Over 3........................................................
                                                                    $188
    Over 4........................................................
                                                                    $206
    Over 6........................................................
                                                                    $650
    Over 14.......................................................
                                                                    $840
    Over 22.......................................................
                                                                    $585
    Over 23.......................................................
                                                                    $495
    Over 24.......................................................
                                                                    $385
    Over 25.......................................................
                                                                    $250

    ``(2) An officer in a pay grade above O-6 is entitled, until the 
officer completes 25 years of aviation service, to be paid at the rates 
set forth in the table in paragraph (1), except that--
        ``(A) an officer in pay grade O-7 may not be paid at a rate 
    greater than $200 a month; and
        ``(B) an officer in pay grade O-8 or above may not be paid at a 
    rate greater than $206 a month.
    ``(3) For a warrant officer with over 22, 23, 24, or 25 years of 
aviation service who is qualified under subsection (a), the rate 
prescribed in the table in paragraph (1) for officers with over 14 
years of aviation service shall continue to apply to the warrant 
officer.''.
    (c) References to Aviation Service.--(1) Section 301a of such title 
is further amended--
        (A) in subsection (a)(4)--
            (i) by striking out ``22 years of the officer's service as 
        an officer'' and inserting in lieu thereof ``22 years of 
        aviation service of the officer''; and
            (ii) by striking out ``25 years of service as an officer 
        (as computed under section 205 of this title)'' and inserting 
        in lieu thereof ``25 years of aviation service''; and
        (B) in subsection (d), by striking out ``subsection (b)(1) or 
    (2), as the case may be, for the performance of that duty by a 
    member of corresponding years of aviation or officer service, as 
    appropriate,'' and inserting in lieu thereof ``subsection (b) for 
    the performance of that duty by a member with corresponding years 
    of aviation service''.
    (2) Section 301b(b)(5) of such title is amended by striking out 
``active duty'' and inserting in lieu thereof ``aviation service''.
    (d) Conforming Amendment.--Section 615 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1787) is repealed.

SEC. 616. DIVING DUTY SPECIAL PAY FOR DIVERS HAVING DIVING DUTY AS A 
              NONPRIMARY DUTY.

    (a) Eligibility for Maintaining Proficiency.--Section 304(a)(3) of 
title 37, United States Code, is amended to read as follows:
        ``(3) either--
            ``(A) actually performs diving duty while serving in an 
        assignment for which diving is a primary duty; or
            ``(B) meets the requirements to maintain proficiency as 
        described in paragraph (2) while serving in an assignment that 
        includes diving duty other than as a primary duty.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1998, and shall apply with respect to months 
beginning on or after that date.

SEC. 617. HARDSHIP DUTY PAY.

    (a) Duty for Which Pay Authorized.--Section 305 of title 37, United 
States Code, is amended--
        (1) in subsection (a), by striking out ``on duty at a 
    location'' and all that follows through the period at the end of 
    the subsection and inserting in lieu thereof ``performing duty in 
    the United States or outside the United States that is designated 
    by the Secretary of Defense as hardship duty.'';
        (2) by striking out subsections (b) and (c);
        (3) in subsection (d), by striking out ``hardship duty location 
    pay'' and inserting in lieu thereof ``hardship duty pay''; and
        (4) by redesignating subsection (d) as subsection (b).
    (b) Conforming Amendment.--Section 907(d) of such title is amended 
by striking out ``duty at a hardship duty location'' and inserting in 
lieu thereof ``hardship duty''.
    (c) Clerical Amendments.--(1) The heading for section 305 of such 
title is amended to read as follows:

``Sec. 305. Special pay: hardship duty pay''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 5 of such title is amended to read as follows:
``305. Special pay: hardship duty pay.''.

SEC. 618. SELECTIVE REENLISTMENT BONUS ELIGIBILITY FOR RESERVE MEMBERS 
              PERFORMING ACTIVE GUARD AND RESERVE DUTY.

    Section 308(a)(1)(D) of title 37, United States Code, is amended to 
read as follows:
        ``(D) reenlists or voluntarily extends the member's enlistment 
    for a period of at least three years--
            ``(i) in a regular component of the service concerned; or
            ``(ii) in a reserve component of the service concerned, if 
        the member is performing active Guard and Reserve duty (as 
        defined in section 101(d)(6) of title 10).''.

SEC. 619. REPEAL OF TEN PERCENT LIMITATION ON CERTAIN SELECTIVE 
              REENLISTMENT BONUSES.

    Section 308(b) of title 37, United States Code, is amended--
        (1) by striking out paragraph (2); and
        (2) by striking out ``(1)'' after ``(b)''.

SEC. 620. INCREASE IN MAXIMUM AMOUNT AUTHORIZED FOR ARMY ENLISTMENT 
              BONUS.

    Section 308f(a) of title 37, United States Code, is amended by 
striking out ``$4,000'' and inserting in lieu thereof ``$6,000''.

SEC. 621. EQUITABLE TREATMENT OF RESERVES ELIGIBLE FOR SPECIAL PAY FOR 
              DUTY SUBJECT TO HOSTILE FIRE OR IMMINENT DANGER.

    Section 310(b) of title 37, United States Code, is amended--
        (1) by inserting ``(1)'' after ``(b)''; and
        (2) by adding at the end the following new paragraph:
    ``(2) A member of a reserve component who is eligible for special 
pay under this section for a month shall receive the full amount 
authorized in subsection (a) for that month regardless of the number of 
days during that month on which the member satisfies the eligibility 
criteria specified in such subsection.''.

SEC. 622. RETENTION INCENTIVES INITIATIVE FOR CRITICALLY SHORT MILITARY 
              OCCUPATIONAL SPECIALTIES.

    (a) Requirement for New Incentives.--The Secretary of Defense shall 
establish and provide for members of the Armed Forces qualified in 
critically short military occupational specialties a series of new 
incentives that the Secretary considers potentially effective for 
increasing the rates at which those members are retained in the Armed 
Forces for service in such specialties.
    (b) Critically Short Military Occupational Specialties.--For the 
purposes of this section, a military occupational specialty is a 
critically short military occupational specialty for an Armed Force if 
the number of members retained in that Armed Force in fiscal year 1998 
for service in that specialty is less than 50 percent of the number of 
members of that Armed Force that were projected to be retained in that 
Armed Force for service in the specialty by the Secretary of the 
military department concerned as of October 1, 1997.
    (c) Incentives.--It is the sense of Congress that, among the new 
incentives established and provided under this section, the Secretary 
of Defense should include the following incentives:
        (1) Family support and leave allowances.
        (2) Increased special reenlistment or retention bonuses.
        (3) Repayment of educational loans.
        (4) Priority of selection for assignment to preferred permanent 
    duty station or for extension at permanent duty station.
        (5) Modified leave policies.
        (6) Special consideration for Government housing or additional 
    housing allowances.
    (d) Relationship to Other Incentives.--Incentives provided under 
this section are in addition to any special pay or other benefit that 
is authorized under any other provision of law.
    (e) Reports.--(1) Not later than December 1, 1998, the Secretary of 
Defense shall submit to the congressional defense committees a report 
that identifies, for each of the Armed Forces, the critically short 
military occupational specialties to which incentives under this 
section are to apply.
    (2) Not later than April 15, 1999, the Secretary of Defense shall 
submit to the congressional defense committees a report that specifies, 
for each of the Armed Forces, the incentives that are to be provided 
under this section.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. PAYMENTS FOR MOVEMENTS OF HOUSEHOLD GOODS ARRANGED BY 
              MEMBERS.

    (a) Monetary Allowance Authorized.--Subsection (b)(1) of section 
406 of title 37, United States Code, is amended--
        (1) in subparagraph (A)--
            (A) by striking out ``, or reimbursement therefor,''; and
            (B) by inserting after the second sentence the following 
        new sentence: ``Alternatively, the member may be paid 
        reimbursement or a monetary allowance under subparagraph 
        (F).''; and
        (2) by adding at the end the following new subparagraph:
    ``(F) A member entitled to transportation of baggage and household 
effects under subparagraph (A) may, as an alternative to the provision 
of transportation, be paid reimbursement or, at the member's request, a 
monetary allowance in advance for the cost of transportation of the 
baggage and household effects. The monetary allowance may be paid only 
if the amount of the allowance does not exceed the cost that would be 
incurred by the Government under subparagraph (A) for the 
transportation of the baggage and household effects. Appropriations 
available to the Department of Defense, the Department of 
Transportation, and the Department of Health and Human Services for 
providing transportation of baggage or household effects of members of 
the uniformed services shall be available to pay a reimbursement or 
monetary allowance under this subparagraph. The Secretary concerned may 
prescribe the manner in which the risk of liability for damage, 
destruction, or loss of baggage or household effects arranged, packed, 
crated, or loaded by a member is allocated among the member, the United 
States, and any contractor when a reimbursement or monetary allowance 
is elected under this subparagraph.''.
    (b) Repeal of Superseded Provision.--(1) Such section is further 
amended--
        (A) by striking out subsection (j); and
        (B) by redesignating subsections (k), (l), and (m) as 
    subsections (j), (k), and (l), respectively.
    (2) Section 2634(d) of title 10, United States Code, is amended by 
striking out ``section 406(k)'' and inserting in lieu thereof ``section 
406(j)''.

SEC. 632. EXCEPTION TO MAXIMUM WEIGHT ALLOWANCE FOR BAGGAGE AND 
              HOUSEHOLD EFFECTS.

    Section 406(b)(1)(D) of title 37, United States Code, is amended in 
the second sentence by inserting before the period the following: ``, 
unless the additional weight allowance in excess of such maximum is 
intended to permit the shipping of consumables that cannot be 
reasonably obtained at the new station of the member''.

SEC. 633. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRAVEL PERFORMED BY 
              MEMBERS IN CONNECTION WITH REST AND RECUPERATIVE LEAVE 
              FROM OVERSEAS STATIONS.

    (a) Provision of Transportation.--Section 411c of title 37, United 
States Code, is amended by striking out subsection (b) and inserting in 
lieu thereof the following new subsection:
    ``(b) When the transportation authorized by subsection (a) is 
provided by the Secretary concerned, the Secretary may use Government 
or commercial carriers. The Secretary concerned may limit the amount of 
payments made to members under subsection (a).''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:

``Sec. 411c. Travel and transportation allowances: travel performed in 
            connection with rest and recuperative leave from certain 
            stations in foreign countries''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 7 of such title is amended to read as follows:
``411c. Travel and transportation allowances: travel performed in 
          connection with rest and recuperative leave from certain 
          stations in foreign countries.''.

SEC. 634. STORAGE OF BAGGAGE OF CERTAIN DEPENDENTS.

    Section 430(b) of title 37, United States Code, is amended--
        (1) by inserting ``(1)'' after ``(b)''; and
        (2) by adding at the end the following new paragraph:
    ``(2) At the option of the member, in lieu of the transportation of 
baggage of a dependent child under paragraph (1) from the dependent's 
school in the continental United States, the Secretary concerned may 
pay or reimburse the member for costs incurred to store the baggage at 
or in the vicinity of the school during the dependent's annual trip 
between the school and the member's duty station. The amount of the 
payment or reimbursement may not exceed the cost that the Government 
would incur to transport the baggage.''.

SEC. 635. COMMERCIAL TRAVEL OF RESERVES AT FEDERAL SUPPLY SCHEDULE 
              RATES FOR ATTENDANCE AT INACTIVE-DUTY TRAINING 
              ASSEMBLIES.

    (a) Authority.--Chapter 1217 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 12603. Attendance at inactive-duty training assemblies: 
            commercial travel at Federal supply schedule rates

    ``(a) Federal Supply Schedule Travel.--Commercial travel under 
Federal supply schedules is authorized for the travel of a Reserve to 
the location of inactive duty training to be performed by the Reserve 
and from that location upon completion of the training.
    ``(b) Regulations.--The Secretary of Defense shall prescribe in 
regulations such requirements, conditions, and restrictions for travel 
under the authority of subsection (a) as the Secretary considers 
appropriate. The regulations shall include policies and procedures for 
preventing abuses of that travel authority.
    ``(c) Reimbursement Not Authorized.--A Reserve is not entitled to 
Government reimbursement for the cost of travel authorized under 
subsection (a).
    ``(d) Treatment of Transportation as Use by Military Departments.--
For the purposes of section 201(a) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481(a)), travel 
authorized under subsection (a) shall be treated as transportation for 
the use of a military department.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``12603. Attendance at inactive-duty training assemblies: commercial 
          travel at Federal supply schedule rates.''.

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

SEC. 641. PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.

    Section 1452 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(j) Coverage Paid Up at 30 Years and Age 70.--Effective October 
1, 2008, no reduction may be made under this section in the retired pay 
of a participant in the Plan for any month after the later of--
        ``(1) the 360th month for which the participant's retired pay 
    is reduced under this section; and
        ``(2) the month during which the participant attains 70 years 
    of age.''.

SEC. 642. SURVIVOR BENEFIT PLAN OPEN ENROLLMENT PERIOD.

    (a) Persons Not Currently Participating in Survivor Benefit Plan.--
        (1) Election of sbp coverage.--An eligible retired or former 
    member may elect to participate in the Survivor Benefit Plan during 
    the open enrollment period specified in subsection (d).
        (2) Election of supplemental annuity coverage.--An eligible 
    retired or former member who elects under paragraph (1) to 
    participate in the Survivor Benefit Plan may also elect during the 
    open enrollment period to participate in the Supplemental Survivor 
    Benefit Plan.
        (3) Eligible retired or former member.--For purposes of 
    paragraphs (1) and (2), an eligible retired or former member is a 
    member or former member of the uniformed services who on the day 
    before the first day of the open enrollment period is not a 
    participant in the Survivor Benefit Plan and--
            (A) is entitled to retired pay; or
            (B) would be entitled to retired pay under chapter 1223 of 
        title 10, United States Code (or chapter 67 of such title as in 
        effect before October 5, 1994), but for the fact that such 
        member or former member is under 60 years of age.
        (4) Status under sbp of persons making elections.--
            (A) Standard annuity.--A person making an election under 
        paragraph (1) by reason of eligibility under paragraph (3)(A) 
        shall be treated for all purposes as providing a standard 
        annuity under the Survivor Benefit Plan.
            (B) Reserve-component annuity.--A person making an election 
        under paragraph (1) by reason of eligibility under paragraph 
        (3)(B) shall be treated for all purposes as providing a 
        reserve-component annuity under the Survivor Benefit Plan.
    (b) Manner of Making Elections.--
        (1) In general.--An election under this section must be made in 
    writing, signed by the person making the election, and received by 
    the Secretary concerned before the end of the open enrollment 
    period. Except as provided in paragraph (2), any such election 
    shall be made subject to the same conditions, and with the same 
    opportunities for designation of beneficiaries and specification of 
    base amount, that apply under the Survivor Benefit Plan or the 
    Supplemental Survivor Benefit Plan, as the case may be. A person 
    making an election under subsection (a) to provide a reserve-
    component annuity shall make a designation described in section 
    1448(e) of title 10, United States Code.
        (2) Election must be voluntary.--An election under this section 
    is not effective unless the person making the election declares the 
    election to be voluntary. An election to participate in the 
    Survivor Benefit Plan under this section may not be required by any 
    court. An election to participate or not to participate in the 
    Survivor Benefit Plan is not subject to the concurrence of a spouse 
    or former spouse of the person.
    (c) Effective Date for Elections.--Any such election shall be 
effective as of the first day of the first calendar month following the 
month in which the election is received by the Secretary concerned.
    (d) Open Enrollment Period Defined.--The open enrollment period is 
the 1-year period beginning on March 1, 1999.
    (e) Effect of Death of Person Making Election Within Two Years of 
Making Election.--If a person making an election under this section 
dies before the end of the 2-year period beginning on the effective 
date of the election, the election is void and the amount of any 
reduction in retired pay of the person that is attributable to the 
election shall be paid in a lump sum to the person who would have been 
the deceased person's beneficiary under the voided election if the 
deceased person had died after the end of such 2-year period.
    (f) Applicability of Certain Provisions of Law.--The provisions of 
sections 1449, 1453, and 1454 of title 10, United States Code, are 
applicable to a person making an election, and to an election, under 
this section in the same manner as if the election were made under the 
Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the 
case may be.
    (g) Premiums for Open Enrollment Election.--
        (1) Premiums to be charged.--The Secretary of Defense shall 
    prescribe in regulations premiums which a person electing under 
    this section shall be required to pay for participating in the 
    Survivor Benefit Plan pursuant to the election. The total amount of 
    the premiums to be paid by a person under the regulations shall be 
    equal to the sum of--
            (A) the total amount by which the retired pay of the person 
        would have been reduced before the effective date of the 
        election if the person had elected to participate in the 
        Survivor Benefit Plan (for the same base amount specified in 
        the election) at the first opportunity that was afforded the 
        member to participate under chapter 73 of title 10, United 
        States Code;
            (B) interest on the amounts by which the retired pay of the 
        person would have been so reduced, computed from the dates on 
        which the retired pay would have been so reduced at such rate 
        or rates and according to such methodology as the Secretary of 
        Defense determines reasonable; and
            (C) any additional amount that the Secretary determines 
        necessary to protect the actuarial soundness of the Department 
        of Defense Military Retirement Fund against any increased risk 
        for the fund that is associated with the election.
        (2) Premiums to be credited to retirement fund.--Premiums paid 
    under the regulations shall be credited to the Department of 
    Defense Military Retirement Fund.
    (h) Definitions.--In this section:
        (1) The term ``Survivor Benefit Plan'' means the program 
    established under subchapter II of chapter 73 of title 10, United 
    States Code.
        (2) The term ``Supplemental Survivor Benefit Plan'' means the 
    program established under subchapter III of chapter 73 of title 10, 
    United States Code.
        (3) The term ``retired pay'' includes retainer pay paid under 
    section 6330 of title 10, United States Code.
        (4) The terms ``uniformed services'' and ``Secretary 
    concerned'' have the meanings given those terms in section 101 of 
    title 37, United States Code.
        (5) The term ``Department of Defense Military Retirement Fund'' 
    means the Department of Defense Military Retirement Fund 
    established under section 1461(a) of title 10, United States Code.

SEC. 643. EFFECTIVE DATE OF COURT-REQUIRED FORMER SPOUSE SURVIVOR 
              BENEFIT PLAN COVERAGE EFFECTUATED THROUGH ELECTIONS AND 
              DEEMED ELECTIONS.

    (a) Elimination of Disparity in Effective Date Provisions.--Section 
1448(b)(3) of title 10, United States Code, is amended--
        (1) in subparagraph (C)--
            (A) by striking out the second sentence; and
            (B) by striking out ``effective date,'' in the heading; and
        (2) by adding at the end the following new subparagraph:
            ``(E) Effective date of election.--An election under this 
        paragraph is effective as of--
                ``(i) the first day of the first month following the 
            month in which the election is received by the Secretary 
            concerned; or
                ``(ii) in the case of a person required (as described 
            in section 1450(f)(3)(B) of this title) to make the 
            election by reason of a court order or filing the date of 
            which is on or after the date of the enactment of the 
            subparagraph, the first day of the first month which begins 
            after the date of that court order or filing.''.
    (b) Conformity by Cross Reference.--Section 1450(f)(3)(D) of such 
title is amended by striking out ``the first day of the first month 
which begins after the date of the court order or filing involved'' and 
inserting in lieu thereof ``the day referred to in section 
1448(b)(3)(E)(ii) of this title''.

SEC. 644. PRESENTATION OF UNITED STATES FLAG TO MEMBERS OF THE ARMED 
              FORCES UPON RETIREMENT.

    (a) Army.--(1) Chapter 353 of title 10, United States Code, is 
amended by inserting after the table of sections the following new 
section:

``Sec. 3681. Presentation of United States flag upon retirement

    ``(a) Presentation of Flag.--Upon the release of a member of the 
Army from active duty for retirement, the Secretary of the Army shall 
present a United States flag to the member.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the 
member has previously been presented a flag under this section or 
section 6141 or 8681 of this title or section 516 of title 14.
    ``(c) No Cost to Recipient.--The presentation of a flag under this 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 3684 the 
following new item:
``3681. Presentation of United States flag upon retirement.''.

    (b) Navy and Marine Corps.--(1) Chapter 561 of title 10, United 
States Code, is amended by inserting after the table of sections the 
following new section:

``Sec. 6141. Presentation of United States flag upon retirement

    ``(a) Presentation of Flag.--Upon the release of a member of the 
Navy or Marine Corps from active duty for retirement or transfer to the 
Fleet Reserve or the Fleet Marine Corps Reserve, the Secretary of the 
Navy shall present a United States flag to the member.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the 
member has previously been presented a flag under this section or 
section 3681 or 8681 of this title or section 516 of title 14.
    ``(c) No Cost to Recipient.--The presentation of a flag under this 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 6151 the 
following new item:
``6141. Presentation of United States flag upon retirement.''.

    (c) Air Force.--(1) Chapter 853 of title 10, United States Code, is 
amended by inserting after the table of sections the following new 
section:

``Sec. 8681. Presentation of United States flag upon retirement

    ``(a) Presentation of Flag.--Upon the release of a member of the 
Air Force from active duty for retirement, the Secretary of the Air 
Force shall present a United States flag to the member.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the 
member has previously been presented a flag under this section or 
section 3681 or 6141 of this title or section 516 of title 14.
    ``(c) No Cost to Recipient.--The presentation of a flag under this 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 8684 the 
following new item:
``8681. Presentation of United States flag upon retirement.''.

    (d) Coast Guard.--(1) Chapter 13 of title 14, United States Code, 
is amended by adding at the end the following new section:

``Sec. 516. Presentation of United States flag upon retirement

    ``(a) Presentation of Flag.--Upon the release of a member of the 
Coast Guard from active duty for retirement, the Secretary of 
Transportation shall present a United States flag to the member.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the 
member has previously been presented a flag under this section or 
section 3681, 6141, and 8681 of title 10.
    ``(c) No Cost to Recipient.--The presentation of a flag under his 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``516. Presentation of United States flag upon retirement.''.

    (e) Effective Date.--Sections 3681, 6141, and 8681 of title 10, 
United States Code (as added by this section), and section 516 of title 
14, United States Code (as added by subsection (d)), shall apply with 
respect to releases from active duty described in those sections on or 
after October 1, 1998.

SEC. 645. RECOVERY, CARE, AND DISPOSITION OF REMAINS OF MEDICALLY 
              RETIRED MEMBER WHO DIES DURING HOSPITALIZATION THAT 
              BEGINS WHILE ON ACTIVE DUTY.

    (a) In General.--Paragraph (7) of section 1481(a) of title 10, 
United States Code, is amended to read as follows:
        ``(7) A person who--
            ``(A) dies as a retired member of an armed force under the 
        Secretary's jurisdiction during a continuous hospitalization of 
        the member as a patient in a United States hospital that began 
        while the member was on active duty for a period of more than 
        30 days; or
            ``(B) is not covered by subparagraph (A) and, while in a 
        retired status by reason of eligibility to retire under chapter 
        61 of this title, dies during a continuous hospitalization of 
        the person that began while the person was on active duty as a 
        Regular of an armed force under the Secretary's 
        jurisdiction.''.
    (b) Repeal of Obsolete Terminology.--Paragraph (1) of such section 
is amended by striking out ``, or a member of an armed force without 
component,''.
    (c) Effective Date.--The amendment made by subsection (a) applies 
with respect to deaths occurring on or after the date of the enactment 
of this Act.

SEC. 646. REVISION TO COMPUTATION OF RETIRED PAY FOR CERTAIN MEMBERS.

    Section 1406(i) of title 10, United States Code, is amended--
        (1) by redesignating paragraph (2) as paragraph (3); and
        (2) by inserting after paragraph (1) the following new 
    paragraph (2):
        ``(2) Exception for members reduced in grade or who do not 
    serve satisfactorily.--Paragraph (1) does not apply in the case of 
    a member who, while or after serving in a position specified in 
    that paragraph and by reason of conduct occurring on or after the 
    date of the enactment of the Strom Thurmond National Defense 
    Authorization Act for Fiscal Year 1999--
            ``(A) in the case of an enlisted member, is reduced in 
        grade as the result of a court-martial sentence, nonjudicial 
        punishment, or other administrative process; or
            ``(B) in the case an officer, is not certified by the 
        Secretary of Defense under section 1370(c) of this title as 
        having served on active duty satisfactorily in the grade of 
        general or admiral, as the case may be, while serving in that 
        position.''.

SEC. 647. ELIMINATION OF BACKLOG OF UNPAID RETIRED PAY.

    (a) Requirement.--The Secretary of the Army shall take such actions 
as are necessary to eliminate, by December 31, 1998, the backlog of 
unpaid retired pay for members and former members of the Army 
(including members and former members of the Army Reserve and the Army 
National Guard).
    (b) Report.--Not later than 30 days after the date of the enactment 
of this Act, the Secretary of the Army shall submit to Congress a 
report on the backlog of unpaid retired pay. The report shall include 
the following:
        (1) The actions taken under subsection (a).
        (2) The extent of the remaining backlog.
        (3) A discussion of any additional actions that are necessary 
    to ensure that retired pay is paid in a timely manner.

                       Subtitle E--Other Matters

SEC. 651. DEFINITION OF POSSESSIONS OF THE UNITED STATES FOR PAY AND 
              ALLOWANCES PURPOSES.

    Section 101(2) of title 37, United States Code, is amended by 
striking out ``the Canal Zone,''.

SEC. 652. ACCOUNTING OF ADVANCE PAYMENTS.

    Section 1006(e) of title 37, United States Code, is amended--
        (1) by inserting ``(1)'' after ``(e)''; and
        (2) by adding at the end the following new paragraph:
    ``(2)(A) Notwithstanding any other provision of law, an obligation 
for an advance of pay made pursuant to this section shall be recorded 
as an obligation only in the fiscal year in which the entitlement of 
the member to the pay accrues.
    ``(B) Current appropriations available for advance payments under 
this section may be transferred to the prior fiscal year appropriation 
available for the same purpose in the amount of any unliquidated 
advance payments that remain at the end of such prior fiscal year. Such 
unliquidated advance payments shall then be credited to the current 
appropriation.''.

SEC. 653. REIMBURSEMENT OF RENTAL VEHICLE COSTS WHEN MOTOR VEHICLE 
              TRANSPORTED AT GOVERNMENT EXPENSE IS LATE.

    (a) Transportation in Connection With Change of Permanent 
Station.--Section 2634 of title 10, United States Code, is amended--
        (1) by redesignating subsection (g) as subsection (h); and
        (2) by inserting after subsection (f) the following new 
    subsection:
    ``(g) If a motor vehicle of a member (or a dependent of the member) 
that is transported at the expense of the United States under this 
section does not arrive at the authorized destination of the vehicle by 
the designated delivery date, the Secretary concerned shall reimburse 
the member for expenses incurred after that date to rent a motor 
vehicle for the member's use, or for the use of the dependent for whom 
the delayed vehicle was transported. The amount reimbursed may not 
exceed $30 per day, and the rental period for which reimbursement may 
be provided expires after 7 days or on the date on which the delayed 
vehicle arrives at the authorized destination (whichever occurs 
first).''.
    (b) Transportation in Connection With Other Moves.--Section 406(h) 
of title 37, United States Code, is amended by adding at the end the 
following new paragraph:
    ``(3) If a motor vehicle of a member (or a dependent of the member) 
that is transported at the expense of the United States under this 
subsection does not arrive at the authorized destination of the vehicle 
by the designated delivery date, the Secretary concerned shall 
reimburse the member for expenses incurred after that date to rent a 
motor vehicle for the dependent's use. The amount reimbursed may not 
exceed $30 per day, and the rental period for which reimbursement may 
be provided expires after 7 days or on the date on which the delayed 
vehicle arrives at the authorized destination (whichever occurs 
first).''.
    (c) Transportation in Connection With Departure Allowances for 
Dependents.--Section 405a(b) of title 37, United States Code, is 
amended--
        (1) by inserting ``(1)'' after ``(b)''; and
        (2) by adding at the end the following new paragraph:
    ``(2) If a motor vehicle of a member (or a dependent of the member) 
that is transported at the expense of the United States under paragraph 
(1) does not arrive at the authorized destination of the vehicle by the 
designated delivery date, the Secretary concerned shall reimburse the 
member for expenses incurred after that date to rent a motor vehicle 
for the dependent's use. The amount reimbursed may not exceed $30 per 
day, and the rental period for which reimbursement may be provided 
expires after 7 days or on the date on which the delayed vehicle 
arrives at the authorized destination (whichever occurs first).''.
    (d) Transportation in Connection With Effects of Missing Persons.--
Section 554 of title 37, United States Code, is amended--
        (1) by redesignating subsection (i) as subsection (j); and
        (2) by inserting after subsection (h) the following new 
    subsection:
    ``(i) If a motor vehicle of a member (or a dependent of the member) 
that is transported at the expense of the United States under this 
section does not arrive at the authorized destination of the vehicle by 
the designated delivery date, the Secretary concerned shall reimburse 
the dependent for expenses incurred after that date to rent a motor 
vehicle for the dependent's use. The amount reimbursed may not exceed 
$30 per day, and the rental period for which reimbursement may be 
provided expires after 7 days or on the date on which the delayed 
vehicle arrives at the authorized destination (whichever occurs 
first).''.
    (e) Application of Amendments.--(1) Reimbursement for motor vehicle 
rental expenses may not be provided under the amendments made by this 
section until after the date on which the Secretary of Defense submits 
to Congress a report containing a certification that the Department of 
Defense has in place and operational a system to recover the cost of 
providing such reimbursement from commercial carriers that are 
responsible for the delay in the delivery of the motor vehicles of 
members of the Armed Forces and their dependents. The Secretary of 
Defense shall prepare the report in consultation with the Secretary of 
Transportation, with respect to the Coast Guard.
    (2) The amendments shall apply with respect to rental expenses 
described in such amendments that are incurred on or after the date of 
the submission of the report. The report shall be submitted not later 
than six months after the date of the enactment of this Act and shall 
include, in addition to the certification, a description of the system 
to be used to recover from commercial carriers the costs incurred under 
such amendments.

SEC. 654. EDUCATION LOAN REPAYMENT PROGRAM FOR HEALTH PROFESSIONS 
              OFFICERS SERVING IN SELECTED RESERVE.

    (a) Eligible Persons.--Subsection (b)(2) of section 16302 of title 
10, United States Code, is amended by inserting ``, or is enrolled in a 
program of education leading to professional qualifications,'' after 
``possesses professional qualifications''.
    (b) Increased Benefits.--Subsection (c) of such section is 
amended--
        (1) in paragraph (2), by striking out ``$3,000'' and inserting 
    in lieu thereof ``$20,000''; and
        (2) in paragraph (3), by striking out ``$20,000'' and inserting 
    in lieu thereof ``$50,000''.

SEC. 655. FEDERAL EMPLOYEES' COMPENSATION COVERAGE FOR STUDENTS 
              PARTICIPATING IN CERTAIN OFFICER CANDIDATE PROGRAMS.

    (a) Periods of Coverage.--Subsection (a)(2) of section 8140 of 
title 5, United States Code, is amended to read as follows:
        ``(2) during the period of the member's attendance at training 
    or a practice cruise under chapter 103 of title 10, United States 
    Code, beginning when the authorized travel to the training or 
    practice cruise begins and ending when authorized travel from the 
    training or practice cruise ends.''.
    (b) Line of Duty.--Subsection (b) of such section is amended to 
read as follows:
    ``(b) For the purpose of this section, an injury, disability, 
death, or illness of a member referred to in subsection (a) may be 
considered as incurred or contracted in line of duty only if the 
injury, disability, or death is incurred, or the illness is contracted, 
by the member during a period described in that subsection. Subject to 
review by the Secretary of Labor, the Secretary of the military 
department concerned (under regulations prescribed by that Secretary), 
shall determine whether an injury, disability, or death was incurred, 
or an illness was contracted, by a member in line of duty.''.
    (c) Clarification of Casualties Covered.--Subsection (a) of such 
section, as amended by subsection (a) of this section, is further 
amended by inserting ``, or an illness contracted,'' after ``death 
incurred'' in the matter preceding paragraph (1).
    (d) Effective Date and Applicability.--The amendments made by 
subsections (a) and (b) shall take effect on the date of the enactment 
of this Act and apply with respect to injuries, illnesses, 
disabilities, and deaths incurred or contracted on or after that date.

SEC. 656. RELATIONSHIP OF ENLISTMENT BONUSES TO ELIGIBILITY TO RECEIVE 
              ARMY COLLEGE FUND SUPPLEMENT UNDER MONTGOMERY GI BILL 
              EDUCATIONAL ASSISTANCE PROGRAM.

    (a) Enlistement Bonuses and GI Bill Supplement Not Exclusive.--
Section 3015(d) of title 38, United States Code, is amended--
        (1) by inserting ``(1)'' after ``(d)''; and
        (2) by adding at the end the following:
    ``(2) In the case of an individual who after October 7, 1997, 
receives an enlistment bonus under section 308a or 308f of title 37, 
receipt of that bonus does not affect the eligibility of that 
individual for an increase under paragraph (1) in the rate of the basic 
educational assistance allowance applicable to that individual, and the 
Secretary concerned may provide such an increase for that individual 
(and enter into an agreement with that individual that the United 
States agrees to make payments pursuant to such an increase) without 
regard to any provision of law (enacted before, on, or after the date 
of the enactment of this paragraph) that limits the authority to make 
such payments.''.
    (b) Repeal of Related Limitations.--(1) Section 8013(a) of the 
Department of Defense Appropriations Act, 1998 (111 Stat. 1222), is 
amended--
        (A) by striking out ``on or after the date of enactment of this 
    Act--'' and all that follows through ``nor shall any amounts'' and 
    inserting in lieu thereof ``after October 7, 1997, enlists in the 
    armed services for a period of active duty of less than three 
    years, nor shall any amounts''; and
        (B) in the first proviso, by striking out ``in the case of a 
    member covered by clause (1),''.
    (2) Section 8013(a) of the Department of Defense Appropriations 
Act, 1999, is amended--
        (A) by striking out ``of this Act--'' and all that follows 
    through ``nor shall any amounts'' and inserting in lieu thereof 
    ``of this Act, enlists in the armed services for a period of active 
    duty of less than 3 years, nor shall any amounts''; and
        (B) in the first proviso, by striking out ``in the case of a 
    member covered by clause (1),''.
    (3) The amendments made by paragraph (2) shall take effect on the 
later of the following:
        (A) The date of the enactment of this Act.
        (B) The date of the enactment of the Department of Defense 
    Appropriations Act, 1999.

SEC. 657. AUTHORITY TO PROVIDE FINANCIAL ASSISTANCE FOR EDUCATION OF 
              CERTAIN DEFENSE DEPENDENTS OVERSEAS.

    Section 1407(b) of the Defense Dependents' Education Act of 1978 
(20 U.S.C. 926(b)) is amended--
        (1) by striking out ``(b) Under such circumstances as he may by 
    regulation prescribe, the Secretary of Defense'' and inserting in 
    lieu thereof ``(b) Tuition and Assistance When Schools 
    Unavailable.--(1) Under such circumstances as the Secretary of 
    Defense may prescribe in regulations, the Secretary''; and
        (2) by adding at the end the following new paragraph:
    ``(2)(A) The Secretary of Defense, and the Secretary of 
Transportation with respect to the Coast Guard when it is not operating 
as a service of the Navy, may provide financial assistance to sponsors 
of dependents in overseas areas where schools operated by the Secretary 
of Defense under subsection (a) are not reasonably available in order 
to assist the sponsors to defray the costs incurred by the sponsors for 
the attendance of the dependents at schools in such areas other than 
schools operated by the Secretary of Defense.
    ``(B) The Secretary of Defense and the Secretary of Transportation 
shall each prescribe regulations relating to the availability of 
financial assistance under subparagraph (A). Such regulations shall, to 
the maximum extent practicable, be consistent with Department of State 
regulations relating to the availability of financial assistance for 
the education of dependents of Department of State personnel 
overseas.''.

SEC. 658. CLARIFICATIONS CONCERNING PAYMENTS TO CERTAIN PERSONS 
              CAPTURED OR INTERNED BY NORTH VIETNAM.

    (a) Eligibile Survivors.--Subsection (b) of section 657 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201; 110 Stat. 2585) is amended by adding at the end the following 
new paragraphs:
        ``(3) If there is no surviving spouse or surviving child, to 
    the parents of the decedent, in equal shares, or, if one parent of 
    the decedent has died, to the surviving parent.
        ``(4) If there is no surviving spouse, surviving child, or 
    surviving parent, to the surviving siblings by blood of the 
    decedent, in equal shares.''.
    (b) Permitted Recipients of Payment Disbursement.-- Subsection 
(f)(1) of such section is amended by striking out ``The actual 
disbursement'' and inserting in lieu thereof ``Notwithstanding any 
agreement (including a power of attorney) to the contrary, the actual 
disbursement''.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec.701.Dependents' dental program.
Sec.702.Expansion of dependent eligibility under retiree dental program.
Sec.703.Plan for redesign of military pharmacy system.
Sec.704.Transitional authority to provide continued health care coverage 
          for certain persons unaware of loss of CHAMPUS eligibility.

                       Subtitle B--TRICARE Program

Sec.711.Payment of claims for provision of health care under the TRICARE 
          program for which a third party may be liable.
Sec.712.TRICARE Prime automatic enrollments and retiree payment options.
Sec.713.System for tracking data and measuring performance in meeting 
          TRICARE access standards.
Sec.714.Establishment of appeals process for claimcheck denials.
Sec.715.Reviews relating to accessibility of health care under TRICARE.

  Subtitle C--Health Care Services for Medicare-Eligible Department of 
                          Defense Beneficiaries

Sec.721.Demonstration project to include certain covered beneficiaries 
          within Federal Employees Health Benefits Program.
Sec.722.TRICARE as Supplement to Medicare demonstration.
Sec.723.Implementation of redesign of pharmacy system.
Sec.724.Comprehensive evaluation of implementation of demonstration 
          projects and TRICARE pharmacy redesign.

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

Sec.731.Process for waiving informed consent requirement for 
          administration of certain drugs to members of Armed Forces for 
          purposes of a particular military operation.
Sec.732.Health benefits for abused dependents of members of the Armed 
          Forces.
Sec.733.Provision of health care at military entrance processing 
          stations and elsewhere outside medical treatment facilities.
Sec.734.Professional qualifications of physicians providing military 
          health care.

                        Subtitle E--Other Matters

Sec.741.Enhanced Department of Defense Organ and Tissue Donor program.
Sec.742.Authorization to establish a Level 1 Trauma Training Center.
Sec.743.Authority to establish center for study of post-deployment 
          health concerns of members of the Armed Forces.
Sec.744.Report on implementation of enrollment-based capitation for 
          funding for military medical treatment facilities.
Sec.745.Joint Department of Defense and Department of Veterans Affairs 
          reports relating to interdepartmental cooperation in the 
          delivery of medical care.
Sec.746.Report on research and surveillance activities regarding lyme 
          disease and other tick-borne diseases.

                    Subtitle A--Health Care Services

SEC. 701. DEPENDENTS' DENTAL PROGRAM.

    (a) Premium Increase.--Section 1076a(b)(2) of title 10, United 
States Code, is amended--
        (A) by inserting ``(A)'' after ``(2)''; and
        (B) by adding at the end the following:
    ``(B) Effective as of January 1 of each year, the amount of the 
premium required under subparagraph (A) shall be increased by the 
percent equal to the lesser of--
        ``(i) the percent by which the rates of basic pay of members of 
    the uniformed services are increased on such date; or
        ``(ii) the sum of one-half percent and the percent computed 
    under section 5303(a) of title 5 for the increase in rates of basic 
    pay for statutory pay systems for pay periods beginning on or after 
    such date.''.
    (2) The amendment made by subparagraph (B) of paragraph (1) shall 
take effect on January 1, 1999, and shall apply to months after 1998 as 
if such subparagraph had been in effect since December 31, 1993.
    (b) Limitation on Reduction of Benefits.--Section 1076a is further 
amended by adding at the end the following new subsection:
    ``(j) Limitation on Reduction of Benefits.--The Secretary of 
Defense may not reduce benefits provided under this section until--
        ``(1) the Secretary provides notice of the Secretary's intent 
    to reduce such benefits to the Committee on National Security of 
    the House of Representatives and the Committee on Armed Services of 
    the Senate; and
        ``(2) 1 year has elapsed following the date of such notice.''.

SEC. 702. EXPANSION OF DEPENDENT ELIGIBILITY UNDER RETIREE DENTAL 
              PROGRAM.

    (a) In General.--Subsection (b) of section 1076c of title 10, 
United States Code, is amended--
        (1) by redesignating paragraph (4) as paragraph (5); and
        (2) by inserting after paragraph (3) the following new 
    paragraph:
        ``(4) Eligible dependents of a member described in paragraph 
    (1) or (2) who is not enrolled in the plan and who--
            ``(A) is enrolled under section 1705 of title 38 to receive 
        dental care from the Secretary of Veterans Affairs;
            ``(B) is enrolled in a dental plan that--
                ``(i) is available to the member as a result of 
            employment by the member that is separate from the military 
            service of the member; and
                ``(ii) is not available to dependents of the member as 
            a result of such separate employment by the member; or
            ``(C) is prevented by a medical or dental condition from 
        being able to obtain benefits under the plan.''.
    (b) Conforming Amendment.--Subsection (f)(3) of such section is 
amended by striking out ``(b)(4)'' and inserting in lieu thereof 
``(b)(5)''.

SEC. 703. PLAN FOR REDESIGN OF MILITARY PHARMACY SYSTEM.

    (a) Plan Required.--The Secretary of Defense shall submit to 
Congress a plan that would provide for a system-wide redesign of the 
military and contractor retail and mail-order pharmacy system of the 
Department of Defense by incorporating ``best business practices'' of 
the private sector. The Secretary shall work with contractors of 
TRICARE retail pharmacy and national mail-order pharmacy programs to 
develop a plan for the redesign of the pharmacy system that--
        (1) may include a plan for an incentive-based formulary for 
    military medical treatment facilities and contractors of TRICARE 
    retail pharmacies and the national mail-order pharmacy; and
        (2) shall include a plan for each of the following:
            (A) A uniform formulary for such facilities and 
        contractors.
            (B) A centralized database that integrates the patient 
        databases of pharmacies of military medical treatment 
        facilities and contractor retail and mail-order programs to 
        implement automated prospective drug utilization review 
        systems.
            (C) A system-wide drug benefit for covered beneficiaries 
        under chapter 55 of title 10, United States Code, who are 
        entitled to hospital insurance benefits under part A of title 
        XVIII of the Social Security Act (42 U.S.C. 1395c et seq.).
    (b) Submission of Plan.--The Secretary shall submit the plan 
required under subsection (a) not later than March 1, 1999.
    (c) Suspension of Implementation of Program.--The Secretary shall 
suspend any plan to establish a national retail pharmacy program for 
the Department of Defense until--
        (1) the plan required under subsection (a) is submitted; and
        (2) the Secretary implements cost-saving reforms with respect 
    to the military and contractor retail and mail order pharmacy 
    system.

SEC. 704. TRANSITIONAL AUTHORITY TO PROVIDE CONTINUED HEALTH CARE 
              COVERAGE FOR CERTAIN PERSONS UNAWARE OF LOSS OF CHAMPUS 
              ELIGIBILITY.

    (a) Transitional Coverage.--The administering Secretaries may 
continue eligibility of a person described in subsection (b) for health 
care coverage under the Civilian Health and Medical Program of the 
Uniformed Services based on a determination that such continuation is 
appropriate to assure health care coverage for any such person who may 
have been unaware of the loss of eligibility to receive health benefits 
under that program.
    (b) Persons Eligible.--A person shall be eligible for transitional 
health care coverage under subsection (a) if the person--
        (1) is a person described in paragraph (1) of subsection (d) of 
    section 1086 of title 10, United States Code;
        (2) in the absence of such paragraph, would be eligible for 
    health benefits under such section; and
        (3) satisfies the criteria specified in subparagraphs (A) and 
    (B) of paragraph (2) of such subsection.
    (c) Extent of Transitional Authority.--The authority to continue 
eligibility under this section shall apply with respect to health care 
services provided between October 1, 1998, and July 1, 1999.
    (d) Definition.--In this section, the term ``administering 
Secretaries'' has the meaning given that term in section 1072(3) of 
title 10, United States Code.

                      Subtitle B--TRICARE Program

SEC. 711. PAYMENT OF CLAIMS FOR PROVISION OF HEALTH CARE UNDER THE 
              TRICARE PROGRAM FOR WHICH A THIRD PARTY MAY BE LIABLE.

    (a) In General.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1095a the following new section:

``Sec. 1095b. TRICARE program: contractor payment of certain claims

    ``(a) Payment of Claims.--(1) The Secretary of Defense may 
authorize a contractor under the TRICARE program to pay a claim 
described in paragraph (2) before seeking to recover from a third-party 
payer the costs incurred by the contractor to provide health care 
services that are the basis of the claim to a beneficiary under such 
program.
    ``(2) A claim under this paragraph is a claim--
        ``(A) that is submitted to the contractor by a provider under 
    the TRICARE program for payment for services for health care 
    provided to a covered beneficiary; and
        ``(B) that is identified by the contractor as a claim for which 
    a third-party payer may be liable.
    ``(b) Recovery From Third-Party Payers.--A contractor for the 
provision of health care services under the TRICARE program that pays a 
claim described in subsection (a)(2) shall have the right to collect 
from the third-party payer the costs incurred by such contractor on 
behalf of the covered beneficiary. The contractor shall have the same 
right to collect such costs under this subsection as the right of the 
United States to collect costs under section 1095 of this title.
    ``(c) Definition of Third-Party Payer.--In this section, the term 
`third-party payer' has the meaning given that term in section 1095(h) 
of this title, except that such term excludes primary medical 
insurers.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1095a the following new item:
``1095b. TRICARE program: contractor payment of certain claims.''.

SEC. 712. TRICARE PRIME AUTOMATIC ENROLLMENTS AND RETIREE PAYMENT 
              OPTIONS.

    (a) Procedures.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1097 the following new section:

``Sec. 1097a. TRICARE Prime: automatic enrollments; payment options

    ``(a) Automatic Enrollment of Certain Dependents.--Each dependent 
of a member of the uniformed services in grade E4 or below who is 
entitled to medical and dental care under section 1076(a)(2)(A) of this 
title and resides in the catchment area of a facility of a uniformed 
service offering TRICARE Prime shall be automatically enrolled in 
TRICARE Prime at the facility. The Secretary concerned shall provide 
written notice of the enrollment to the member. The enrollment of a 
dependent of the member may be terminated by the member or the 
dependent at any time.
    ``(b) Automatic Renewal of Enrollments of Covered Beneficiaries.--
(1) An enrollment of a covered beneficiary in TRICARE Prime shall be 
automatically renewed upon the expiration of the enrollment unless the 
renewal is declined.
    ``(2) Not later than 15 days before the expiration date for an 
enrollment of a covered beneficiary in TRICARE Prime, the Secretary 
concerned shall--
        ``(A) transmit a written notification of the pending expiration 
    and renewal of enrollment to the covered beneficiary or, in the 
    case of a dependent of a member of the uniformed services, to the 
    member; and
        ``(B) afford the beneficiary or member, as the case may be, an 
    opportunity to decline the renewal of enrollment.
    ``(c) Payment Options for Retirees.--A member or former member of 
the uniformed services eligible for medical care and dental care under 
section 1074(b) of this title may elect to have any fee payable by the 
member or former member for an enrollment in TRICARE Prime withheld 
from the member's retired pay, retainer pay, or equivalent pay, as the 
case may be, or to be paid from a financial institution through 
electronic transfers of funds. The fee shall be paid in accordance with 
the election. A member may elect under this section to pay the fee in 
full at the beginning of the enrollment period or to make payments on a 
monthly or quarterly basis.
    ``(d) Regulations and Exceptions.--The Secretary of Defense shall 
prescribe regulations, including procedures, to carry out this section. 
Regulations prescribed to carry out the automatic enrollment 
requirements under this section may include such exceptions to the 
automatic enrollment procedures as the Secretary determines appropriate 
for the effective operation of TRICARE Prime.
    ``(e) Definitions.--In this section:
        ``(1) The term `TRICARE Prime' means the managed care option of 
    the TRICARE program.
        ``(2) The term `catchment area', with respect to a facility of 
    a uniformed service, means the service area of the facility, as 
    designated under regulations prescribed by the administering 
    Secretaries.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1097 the 
following new item:
``1097a. TRICARE Prime: automatic enrollments; payment options.''.

    (b) Deadline for Implementation.--The regulations required under 
subsection (d) of section 1097a of title 10, United States Code (as 
added by subsection (a)), shall be prescribed to take effect not later 
than September 30, 1999. The section shall be applied under TRICARE 
Prime on and after the date on which the regulations take effect.

SEC. 713. SYSTEM FOR TRACKING DATA AND MEASURING PERFORMANCE IN MEETING 
              TRICARE ACCESS STANDARDS.

    (a) Requirement To Establish System.--(1) The Secretary of Defense 
shall establish a system--
        (A) to track data regarding access of covered beneficiaries 
    under chapter 55 of title 10, United States Code, to primary health 
    care under the TRICARE program; and
        (B) to measure performance in increasing such access against 
    the primary care access standards established by the Secretary 
    under the TRICARE program.
    (2) In implementing the system described in paragraph (1), the 
Secretary shall collect data on the timeliness of appointments and 
precise waiting times for appointments in order to measure performance 
in meeting the primary care access standards established under the 
TRICARE program.
    (b) Deadline for Establishment.--The Secretary shall establish the 
system described in subsection (a) not later than April 1, 1999.

SEC. 714. ESTABLISHMENT OF APPEALS PROCESS FOR CLAIMCHECK DENIALS.

    (a) Establishment of Appeals Process.--Not later than January 1, 
1999, the Secretary of Defense shall establish an appeals process in 
cases of denials through the ClaimCheck computer software system (or 
any other claims processing system that may be used by the Secretary) 
of claims by civilian providers for payment for health care services 
provided under the TRICARE program.
    (b) Report.--Not later than March 1, 1999, the Secretary shall 
submit to Congress a report on the implementation of this section.

SEC. 715. REVIEWS RELATING TO ACCESSIBILITY OF HEALTH CARE UNDER 
              TRICARE.

    (a) Review of Rehabilitative Services for Head Injuries.--The 
Secretary of Defense shall review policies under the TRICARE program 
(including a review of the TRICARE policy manual) to determine if 
policies addressing the availability of rehabilitative services for 
TRICARE patients suffering from head injuries are adequate and 
appropriately address consideration of certification by an attending 
physician that such services would be beneficial for such a patient.
    (b) Review of Adequacy of Provider Network.--The Secretary of 
Defense shall review the administration of the TRICARE Prime health 
plans to determine whether, for each region covered by such a plan, 
there is a sufficient number, distribution, and variety of qualified 
participating health care providers to ensure that covered health care 
services, including specialty services and rehabilitative services, are 
accessible in the vicinity of the residence of the enrollees and 
available in a timely manner to such enrollees, regardless of where 
such enrollees are located within the TRICARE region.
    (c) Report.--Not later than April 1, 1999, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the results of the reviews required by subsections (a) and (b), 
together with a description of any actions taken or directed as a 
result of those reviews.

 Subtitle C--Health Care Services for Medicare-Eligible Department of 
                         Defense Beneficiaries

SEC. 721. DEMONSTRATION PROJECT TO INCLUDE CERTAIN COVERED 
              BENEFICIARIES WITHIN FEDERAL EMPLOYEES HEALTH BENEFITS 
              PROGRAM.

    (a) FEHBP Demonstration Project.--(1) Chapter 55 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 1108. Health care coverage through Federal Employees Health 
            Benefits program: demonstration project

    ``(a) FEHBP Option Demonstration.--The Secretary of Defense, after 
consulting with the other administering Secretaries, shall enter into 
an agreement with the Office of Personnel Management to conduct a 
demonstration project (in this section referred to as the 
`demonstration project') under which eligible beneficiaries described 
in subsection (b) and residing within one of the areas covered by the 
demonstration project may enroll in health benefits plans offered 
through the Federal Employees Health Benefits program under chapter 89 
of title 5. The number of eligible beneficiaries and family members of 
such beneficiaries under subsection (b)(2) who may be enrolled in 
health benefits plans during the enrollment period under subsection 
(d)(2) may not exceed 66,000.
    ``(b) Eligible Beneficiaries; Coverage.--(1) An eligible 
beneficiary under this subsection is--
        ``(A) a member or former member of the uniformed services 
    described in section 1074(b) of this title who is entitled to 
    hospital insurance benefits under part A of title XVIII of the 
    Social Security Act (42 U.S.C. 1395c et seq.);
        ``(B) an individual who is an unremarried former spouse of a 
    member or former member described in section 1072(2)(F) or 
    1072(2)(G));
        ``(C) an individual who is--
            ``(i) a dependent of a deceased member or former member 
        described in section 1076(b) or 1076(a)(2)(B) of this title or 
        of a member who died while on active duty for a period of more 
        than 30 days; and
            ``(ii) a member of family as defined in section 8901(5) of 
        title 5; or
        ``(D) an individual who is--
            ``(i) a dependent of a living member or former member 
        described in section 1076(b)(1) of this title who is entitled 
        to hospital insurance benefits under part A of title XVIII of 
        the Social Security Act, regardless of the member's or former 
        member's eligibility for such hospital insurance benefits; and
            ``(ii) a member of family as defined in section 8901(5) of 
        title 5.
    ``(2) Eligible beneficiaries may enroll in a Federal Employees 
Health Benefit plan under chapter 89 of title 5 under this section for 
self-only coverage or for self and family coverage which includes any 
dependent of the member or former member who is a family member for 
purposes of such chapter.
    ``(3) A person eligible for coverage under this subsection shall 
not be required to satisfy any eligibility criteria specified in 
chapter 89 of title 5 (except as provided in paragraph (1)(C) or 
(1)(D)) as a condition for enrollment in health benefits plans offered 
through the Federal Employees Health Benefits program under the 
demonstration project.
    ``(4) For purposes of determining whether an individual is a member 
of family under paragraph (5) of section 8901 of title 5 for purposes 
of paragraph (1)(C) or (1)(D), a member or former member described in 
section 1076(b) or 1076(a)(2)(B) of this title shall be deemed to be an 
employee under such section.
    ``(5) An eligible beneficiary who is eligible to enroll in the 
Federal Employees Health Benefits program as an employee under chapter 
89 of title 5 is not eligible to enroll in a Federal Employees Health 
Benefits plan under this section.
    ``(c) Area of Demonstration Project.--The Secretary of Defense and 
the Director of the Office of Personnel Management shall jointly 
identify and select the geographic areas in which the demonstration 
project will be conducted. The Secretary and the Director shall 
establish at least six, but not more than ten, such demonstration 
areas. In establishing the areas, the Secretary and Director shall 
include--
        ``(1) an area that includes the catchment area of one or more 
    military medical treatment facilities;
        ``(2) an area that is not located in the catchment area of a 
    military medical treatment facility;
        ``(3) an area in which there is a Medicare Subvention 
    Demonstration project area under section 1896 of title XVIII of the 
    Social Security Act (42 U.S.C. 1395ggg); and
        ``(4) not more than one area for each TRICARE region.
    ``(d) Duration of Demonstration Project.--(1) The Secretary of 
Defense shall conduct the demonstration project during three contract 
years under the Federal Employees Health Benefits program.
    ``(2) Eligible beneficiaries shall, as provided under the agreement 
pursuant to subsection (a), be permitted to enroll in the demonstration 
project during an open enrollment period for the year 2000 (conducted 
in the fall of 1999). The demonstration project shall terminate on 
December 31, 2002.
    ``(e) Prohibition Against Use of MTFs and Enrollment Under 
TRICARE.--Covered beneficiaries under this chapter who are provided 
coverage under the demonstration project shall not be eligible to 
receive care at a military medical treatment facility or to enroll in a 
heath care plan under the TRICARE program.
    ``(f) Term of Enrollment in Project.--(1) Subject to paragraphs (2) 
and (3), the period of enrollment of an eligible beneficiary who 
enrolls in the demonstration project during the open enrollment period 
for the year 2000 shall be three years unless the beneficiary 
disenrolls before the termination of the project.
    ``(2) A beneficiary who elects to enroll in the project, and who 
subsequently discontinues enrollment in the project before the end of 
the period described in paragraph (1), shall not be eligible to 
reenroll in the project.
    ``(3) An eligible beneficiary enrolled in a Federal Employees 
Health Benefits plan under this section may change health benefits 
plans and coverage in the same manner as any other Federal Employees 
Health Benefits program beneficiary may change such plans.
    ``(g) Effect of Cancellation.--The cancellation by an eligible 
beneficiary of coverage under the Federal Employee Health Benefits 
program shall be irrevocable during the term of the demonstration 
project.
    ``(h) Separate Risk Pools; Charges.--(1) The Director of the Office 
of Personnel Management shall require health benefits plans under 
chapter 89 of title 5 that participate in the demonstration project to 
maintain a separate risk pool for purposes of establishing premium 
rates for eligible beneficiaries who enroll in such a plan in 
accordance with this section.
    ``(2) The Director shall determine total subscription charges for 
self only or for family coverage for eligible beneficiaries who enroll 
in a health benefits plan under chapter 89 of title 5 in accordance 
with this section. The subscription charges shall include premium 
charges paid to the plan and amounts described in section 8906(c) of 
title 5 for administrative expenses and contingency reserves.
    ``(i) Government Contributions.--The Secretary of Defense shall be 
responsible for the Government contribution for an eligible beneficiary 
who enrolls in a health benefits plan under chapter 89 of title 5 in 
accordance with this section, except that the amount of the 
contribution may not exceed the amount of the Government contribution 
which would be payable if the electing beneficiary were an employee (as 
defined for purposes of such chapter) enrolled in the same health 
benefits plan and level of benefits.
    ``(j) Report Requirements.--(1) The Secretary of Defense and the 
Director of the Office of Personnel Management shall jointly submit to 
Congress two reports containing the information described in paragraph 
(2). The first report shall be submitted not later than the date that 
is 15 months after the date that the Secretary begins to implement the 
demonstration project. The second report shall be submitted not later 
than December 31, 2002.
    ``(2) The reports required by paragraph (1) shall include the 
following:
        ``(A) Information on the number of eligible beneficiaries who 
    elect to participate in the demonstration project.
        ``(B) An analysis of the percentage of eligible beneficiaries 
    who participate in the demonstration project as compared to the 
    percentage of covered beneficiaries under this chapter who elect to 
    enroll in a health care plan under such chapter.
        ``(C) Information on eligible beneficiaries who elect to 
    participate in the demonstration project and did not have Medicare 
    Part B coverage before electing to participate in the project.
        ``(D) An analysis of the enrollment rates and cost of health 
    services provided to eligible beneficiaries who elect to 
    participate in the demonstration project as compared with similarly 
    situated enrollees in the Federal Employees Health Benefits program 
    under chapter 89 of title 5.
        ``(E) An analysis of how the demonstration project affects the 
    accessibility of health care in military medical treatment 
    facilities, and a description of any unintended effects on the 
    treatment priorities in those facilities in the demonstration area.
        ``(F) An analysis of any problems experienced by the Department 
    of Defense in managing the demonstration project.
        ``(G) A description of the effects of the demonstration project 
    on medical readiness and training of the Armed Forces at military 
    medical treatment facilities located in the demonstration area, and 
    a description of the probable effects that making the project 
    permanent would have on the medical readiness and training.
        ``(H) An examination of the effects that the demonstration 
    project, if made permanent, would be expected to have on the 
    overall budget of the Department of Defense, the budget of the 
    Office of Personnel Management, and the budgets of individual 
    military medical treatment facilities.
        ``(I) An analysis of whether the demonstration project affects 
    the cost to the Department of Defense of prescription drugs or the 
    accessibility, availability, and cost of such drugs to eligible 
    beneficiaries.
        ``(J) Any additional information that the Secretary of Defense 
    or the Director of the Office of Personnel Management considers 
    appropriate to assist Congress in determining the viability of 
    expanding the project to all Medicare-eligible members of the 
    uniformed services and their dependents.
        ``(K) Recommendations on whether eligible beneficiaries--
            ``(i) should be given more than one chance to enroll in the 
        demonstration project under this section;
            ``(ii) should be eligible to enroll in the project only 
        during the first year following the date that the eligible 
        beneficiary becomes eligible to receive hospital insurance 
        benefits under part A of title XVIII of the Social Security 
        Act; or
            ``(iii) should be eligible to enroll in the project only 
        during the 2-year period following the date on which the 
        beneficiary first becomes eligible to enroll in the project.
    ``(k) Comptroller General Report.--Not later than December 31, 
2002, the Comptroller General shall submit to Congress a report 
addressing the same matters required to be addressed under subsection 
(j)(2). The report shall describe any limitations with respect to the 
data contained in the report as a result of the size and design of the 
demonstration project.
    ``(l) Application of Medigap Protections to Demonstration Project 
Enrollees.--(1) Subject to paragraph (2), the provisions of section 
1882(s)(3) (other than clauses (i) through (iv) of subparagraph (B)) 
and 1882(s)(4) of the Social Security Act shall apply to enrollment 
(and termination of enrollment) in the demonstration project under this 
section, in the same manner as they apply to enrollment (and 
termination of enrollment) with a Medicare+Choice organization in a 
Medicare+Choice plan.
    ``(2) In applying paragraph (1)--
        ``(A) any reference in clause (v) or (vi) of section 
    1882(s)(3)(B) of such Act to 12 months is deemed a reference to 36 
    months; and
        ``(B) the notification required under section 1882(s)(3)(D) of 
    such Act shall be provided in a manner specified by the Secretary 
    of Defense in consultation with the Director of the Office of 
    Personnel Management.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``1108. Health care coverage through Federal Employees Health Benefits 
          program: demonstration project.''.

    (b) Conforming Amendments.--Chapter 89 of title 5, United States 
Code, is amended--
        (1) in section 8905--
            (A) by redesignating subsections (d) through (f) as 
        subsections (e) through (g), respectively; and
            (B) by inserting after subsection (c) the following new 
        subsection:
    ``(d) An individual whom the Secretary of Defense determines is an 
eligible beneficiary under subsection (b) of section 1108 of title 10 
may enroll, as part of the demonstration project under such section, in 
a health benefits plan under this chapter in accordance with the 
agreement under subsection (a) of such section between the Secretary 
and the Office and applicable regulations under this chapter.'';
        (2) in section 8906(b)--
            (A) in paragraph (1), by striking ``paragraphs (2) and 
        (3)'' and inserting in lieu thereof ``paragraphs (2), (3), and 
        (4)''; and
            (B) by adding at the end the following new paragraph:
    ``(4) In the case of persons who are enrolled in a health benefits 
plan as part of the demonstration project under section 1108 of title 
10, the Government contribution shall be subject to the limitation set 
forth in subsection (i) of that section.'';
        (3) in section 8906(g)--
            (A) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting in lieu thereof ``paragraphs (2) and (3)''; and
            (B) by adding at the end the following new paragraph:
    ``(3) The Government contribution for persons enrolled in a health 
benefits plan as part of the demonstration project under section 1108 
of title 10 shall be paid as provided in subsection (i) of that 
section.''; and
        (4) in section 8909, by adding at the end the following new 
    subsection:
    ``(g) The fund described in subsection (a) is available to pay 
costs that the Office incurs for activities associated with 
implementation of the demonstration project under section 1108 of title 
10.''.

SEC. 722. TRICARE AS SUPPLEMENT TO MEDICARE DEMONSTRATION.

    (a) In General.--(1) The Secretary of Defense shall, after 
consultation with the other administering Secretaries, carry out a 
demonstration project in order to assess the feasibility and 
advisability of providing medical care coverage under the TRICARE 
program to the individuals described in subsection (c). The 
demonstration project shall be known as the ``TRICARE Senior 
Supplement''.
    (2) The Secretary shall commence the demonstration project not 
later than January 1, 2000, and shall terminate the demonstration 
project not later than December 31, 2002.
    (3) Under the demonstration project, the Secretary shall permit 
eligible individuals described in subsection (c) to enroll in the 
TRICARE program.
    (4) Payment for care and services received by eligible individuals 
who enroll in the TRICARE program under the demonstration project shall 
be made as follows:
        (A) First, under title XVIII of the Social Security Act, but 
    only to the extent that payment for such care and services is 
    provided for under that title.
        (B) Second, under the TRICARE program, but only to the extent 
    that payment for such care and services is provided under that 
    program and is not provided for under subparagraph (A).
        (C) Third, by the eligible individual concerned, but only to 
    the extent that payment for such care and services is not provided 
    for under subparagraph (A) or (B).
    (5)(A) The Secretary shall require each eligible individual who 
enrolls in the TRICARE program under the demonstration project to pay 
an enrollment fee. The Secretary shall provide, to the extent feasible, 
the option of payment of the enrollment fee through electronic 
transfers of funds and through withholding of such payment from the pay 
of a member or former member of the Armed Forces, and shall provide the 
option that payment of the enrollment fee be made in full at the 
beginning of the enrollment period or that payments be made on a 
monthly or quarterly basis.
    (B) The amount of the enrollment fee charged an eligible individual 
under subparagraph (A) for self-only or family enrollment in any year 
may not exceed the amount equal to 75 percent of the total subscription 
charges in that year for self-only or family, respectively, fee-for-
service coverage under the health benefits plan under the Federal 
Employees Health Benefits program under chapter 89 of title 5, United 
States Code, that is most similar in coverage to the TRICARE program.
    (6) A covered beneficiary who enrolls in TRICARE Senior Supplement 
under this subsection shall not be eligible to receive health care at a 
facility of the uniformed services during the period such enrollment is 
in effect.
    (b) Evaluation; Review.--(1) The Secretary shall provide for an 
evaluation of the demonstration project conducted under this subsection 
by an appropriate person or entity that is independent of the 
Department of Defense. The evaluation shall include the following:
        (A) An analysis of the costs of the demonstration project to 
    the United States and to the eligible individuals who participate 
    in such demonstration project.
        (B) An assessment of the extent to which the demonstration 
    project satisfies the requirements of such eligible individuals for 
    the health care services available under the demonstration project.
        (C) An assessment of the effect, if any, of the demonstration 
    project on military medical readiness.
        (D) A description of the rate of the enrollment in the 
    demonstration project of the individuals who were eligible to 
    enroll in the demonstration project.
        (E) An assessment of whether the demonstration project provides 
    the most suitable model for a program to provide adequate health 
    care services to the population of individuals consisting of the 
    eligible individuals.
        (F) An evaluation of any other matters that the Secretary 
    considers appropriate.
    (2) The Comptroller General shall review the evaluation conducted 
under paragraph (1). In carrying out the review, the Comptroller 
General shall--
        (A) assess the validity of the processes used in the 
    evaluation; and
        (B) assess the validity of any findings under the evaluation, 
    including any limitations with respect to the data contained in the 
    evaluation as a result of the size and design of the demonstration 
    project.
    (3)(A) The Secretary shall submit a report on the results of the 
evaluation under paragraph (1), together with the evaluation, to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives not later than December 31, 
2002.
    (B) The Comptroller General shall submit a report on the results of 
the review under paragraph (2) to the committees referred to in 
subparagraph (A) not later than February 15, 2003.
    (c) Eligible Individuals.--(1) An individual is eligible to 
participate under this section if the individual is a member or former 
member of the uniformed services described in section 1074(b) of title 
10, United States Code, a dependent of the member described in section 
1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of 
the uniformed services who died while on active duty for a period of 
more than 30 days, who--
        (A) is 65 years of age or older;
        (B) is entitled to hospital insurance benefits under part A of 
    title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.);
        (C) is enrolled in the supplemental medical insurance program 
    under part B of such title XVIII (42 U.S.C. 1395j et seq.); and
        (D) resides in an area selected by the Secretary under 
    subsection (c).
    (d) Areas of Implementation.--(1) The Secretary shall carry out the 
demonstration project under this section in two separate areas selected 
by the Secretary.
    (2) The areas selected by the Secretary under paragraph (1) shall 
be as follows:
        (A) One area shall be an area outside the catchment area of a 
    military medical treatment facility in which--
            (i) no eligible organization has a contract in effect under 
        section 1876 of the Social Security Act (42 U.S.C. 1395mm) and 
        no Medicare+Choice organization has a contract in effect under 
        part C of title XVIII of that Act (42 U.S.C. 1395w-21); or
            (ii) the aggregate number of enrollees with an eligible 
        organization with a contract in effect under section 1876 of 
        that Act or with a Medicare+Choice organization with a contract 
        in effect under part C of title XVIII of that Act is less than 
        2.5 percent of the total number of individuals in the area who 
        are entitled to hospital insurance benefits under part A of 
        title XVIII of that Act.
        (B) The other area shall be an area outside the catchment area 
    of a military medical treatment facility in which--
            (i) at least one eligible organization has a contract in 
        effect under section 1876 of that Act or one Medicare+Choice 
        organization has a contract in effect under part C of title 
        XVIII of that Act; and
            (ii) the aggregate number of enrollees with an eligible 
        organization with a contract in effect under section 1876 of 
        that Act or with a Medicare+Choice organization with a contract 
        in effect under part C of title XVIII of that Act exceeds 10 
        percent of the total number of individuals in the area who are 
        entitled to hospital insurance benefits under part A of title 
        XVIII of that Act.
    (e) Definitions.--In this section:
        (1) The term ``administering Secretaries'' has the meaning 
    given that term in section 1072(3) of title 10, United States Code.
        (2) The term ``TRICARE program'' has the meaning given that 
    term in section 1072(7) of title 10, United States Code.

SEC. 723. IMPLEMENTATION OF REDESIGN OF PHARMACY SYSTEM.

    (a) In General.--Not later than October 1, 1999, the Secretary of 
Defense shall implement, with respect to eligible individuals described 
in subsection (e) who reside in an area selected under subsection (f), 
the redesign of the pharmacy system under TRICARE (including the mail-
order and retail pharmacy benefit under TRICARE) to incorporate ``best 
business practices'' of the private sector in providing 
pharmaceuticals, as developed under the plan described in section 703.
    (b) Collection of Premiums and Other Charges.--The Secretary of 
Defense may collect from eligible individuals described in subsection 
(e) who participate in the redesigned pharmacy system any premiums, 
deductibles, copayments, or other charges that the Secretary would 
otherwise collect from individuals similar to such individuals.
    (c) Evaluation.--The Secretary shall provide for an evaluation of 
the implementation of the redesign of the pharmacy system under TRICARE 
under this section by an appropriate person or entity that is 
independent of the Department of Defense. The evaluation shall include 
the following:
        (1) An analysis of the costs of the implementation of the 
    redesign of the pharmacy system under TRICARE and to the eligible 
    individuals who participate in the system.
        (2) An assessment of the extent to which the implementation of 
    such system satisfies the requirements of the eligible individuals 
    for the health care services available under TRICARE.
        (3) An assessment of the effect, if any, of the implementation 
    of the system on military medical readiness.
        (4) A description of the rate of the participation in the 
    system of the individuals who were eligible to participate.
        (5) An evaluation of any other matters that the Secretary 
    considers appropriate.
    (d) Reports.--The Secretary shall submit two reports on the results 
of the evaluation under subsection (c), together with the evaluation, 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives. The first report 
shall be submitted not later than December 31, 2000, and the second 
report shall be submitted not later than December 31, 2002.
    (e) Eligible Individuals.--(1) An individual is eligible to 
participate under this section if the individual is a member or former 
member of the uniformed services described in section 1074(b) of title 
10, United States Code, a dependent of the member described in section 
1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of 
the uniformed services who died while on active duty for a period of 
more than 30 days, who--
        (A) is 65 years of age or older;
        (B) is entitled to hospital insurance benefits under part A of 
    title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.);
        (C) except as provided in paragraph (2), is enrolled in the 
    supplemental medical insurance program under part B of such title 
    XVIII (42 U.S.C. 1395j et seq.); and
        (D) resides in an area selected by the Secretary under 
    subsection (f).
    (2) Paragraph (1)(C) shall not apply in the case of an individual 
who at the time of attaining the age of 65 lived within 100 miles of 
the catchment area of a military medical treatment facility.
    (f) Areas of Implementation.--(1) The Secretary shall carry out the 
implementation of the redesign of the pharmacy system under TRICARE in 
two separate areas selected by the Secretary.
    (2) The areas selected by the Secretary under paragraph (1) shall 
be as follows:
        (A) One area shall be an area outside the catchment area of a 
    military medical treatment facility in which--
            (i) no eligible organization has a contract in effect under 
        section 1876 of the Social Security Act (42 U.S.C. 1395mm) and 
        no Medicare+Choice organization has a contract in effect under 
        part C of title XVIII of that Act (42 U.S.C. 1395w-21); or
            (ii) the aggregate number of enrollees with an eligible 
        organization with a contract in effect under section 1876 of 
        that Act or with a Medicare+Choice organization with a contract 
        in effect under part C of title XVIII of that Act is less than 
        2.5 percent of the total number of individuals in the area who 
        are entitled to hospital insurance benefits under part A of 
        title XVIII of that Act.
        (B) The other area shall be an area outside the catchment area 
    of a military medical treatment facility in which--
            (i) at least one eligible organization has a contract in 
        effect under section 1876 of that Act or one Medicare+Choice 
        organization has a contract in effect under part C of title 
        XVIII of that Act; and
            (ii) the aggregate number of enrollees with an eligible 
        organization with a contract in effect under section 1876 of 
        that Act or with a Medicare+Choice organization with a contract 
        in effect under part C of title XVIII of that Act exceeds 10 
        percent of the total number of individuals in the area who are 
        entitled to hospital insurance benefits under part A of title 
        XVIII of that Act.

SEC. 724. COMPREHENSIVE EVALUATION OF IMPLEMENTATION OF DEMONSTRATION 
              PROJECTS AND TRICARE PHARMACY REDESIGN.

    Not later than March 31, 2003, the Comptroller General shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report containing a 
comprehensive comparative analysis of the FEHBP demonstration project 
conducted under section 1108 of title 10, United States Code (as added 
by section 721), the TRICARE Senior Supplement under section 722, and 
the redesign of the TRICARE pharmacy system under section 723. The 
comprehensive analysis shall incorporate the findings of the evaluation 
submitted under section 723(c) and the report submitted under 
subsection (j) of such section 1108.

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

SEC. 731. PROCESS FOR WAIVING INFORMED CONSENT REQUIREMENT FOR 
              ADMINISTRATION OF CERTAIN DRUGS TO MEMBERS OF ARMED 
              FORCES FOR PURPOSES OF A PARTICULAR MILITARY OPERATION.

    (a) Limitation and Waiver.--(1) Section 1107 of title 10, United 
States Code, is amended--
        (A) by redesignating subsection (f) as subsection (g); and
        (B) by inserting after subsection (e) the following new 
    subsection (f):
    ``(f) Limitation and Waiver.--(1) In the case of the administration 
of an investigational new drug or a drug unapproved for its applied use 
to a member of the armed forces in connection with the member's 
participation in a particular military operation, the requirement that 
the member provide prior consent to receive the drug in accordance with 
the prior consent requirement imposed under section 505(i)(4) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)(4)) may be 
waived only by the President. The President may grant such a waiver 
only if the President determines, in writing, that obtaining consent--
        ``(A) is not feasible;
        ``(B) is contrary to the best interests of the member; or
        ``(C) is not in the interests of national security.
    ``(2) In making a determination to waive the prior consent 
requirement on a ground described in subparagraph (A) or (B) of 
paragraph (1), the President shall apply the standards and criteria 
that are set forth in the relevant FDA regulations for a waiver of the 
prior consent requirement on that ground.
    ``(3) The Secretary of Defense may request the President to waive 
the prior consent requirement with respect to the administration of an 
investigational new drug or a drug unapproved for its applied use to a 
member of the armed forces in connection with the member's 
participation in a particular military operation. With respect to any 
such administration--
        ``(A) the Secretary may not delegate to any other official the 
    authority to request the President to waive the prior consent 
    requirement for the Department of Defense; and
        ``(B) if the President grants the requested waiver, the 
    Secretary shall submit to the chairman and ranking minority member 
    of each congressional defense committee a notification of the 
    waiver, together with the written determination of the President 
    under paragraph (1) and the Secretary's justification for the 
    request or requirement under subsection (a) for the member to 
    receive the drug covered by the waiver.
    ``(4) In this subsection:
        ``(A) The term `relevant FDA regulations' means the regulations 
    promulgated under section 505(i) of the Federal Food, Drug, and 
    Cosmetic Act (21 U.S.C. 355(i)).
        ``(B) The term `prior consent requirement' means the 
    requirement included in the relevant FDA regulations pursuant to 
    section 505(i)(4) of the Federal Food, Drug, and Cosmetic Act (21 
    U.S.C. 355(i)(4)).
        ``(C) The term `congressional defense committee' means each of 
    the following:
            ``(i) The Committee on Armed Services and the Committee on 
        Appropriations of the Senate.
            ``(ii) The Committee on National Security and the Committee 
        on Appropriations of the House of Representatives.''.
    (2) Subsection (f) of section 1107 of title 10, United States Code 
(as added by paragraph (1)), shall apply to the administration of an 
investigational new drug or a drug unapproved for its applied use to a 
member of the Armed Forces in connection with the member's 
participation in a particular military operation on or after the date 
of the enactment of this Act.
    (3) A waiver of the requirement for prior consent imposed under the 
regulations required under paragraph (4) of section 505(i) of the 
Federal Food, Drug, and Cosmetic Act (or under any antecedent provision 
of law or regulations) that has been granted under that section (or 
antecedent provision of law or regulations) before the date of the 
enactment of this Act for the administration of a drug to a member of 
the Armed Forces in connection with the member's participation in a 
particular military operation may be applied in that case after that 
date only if--
        (A) the Secretary of Defense personally determines that the 
    waiver is justifiable on each ground on which the waiver was 
    granted;
        (B) the President concurs in that determination in writing; and
        (C) the Secretary submits to the chairman and ranking minority 
    member of each congressional committee referred to in section 
    1107(f)(4)(C) of title 10, United States Code (as added by 
    paragraph (1))--
            (i) a notification of the waiver;
            (ii) the President's written concurrence; and
            (iii) the Secretary's justification for the request or for 
        the requirement under subsection 1107(a) of such title for the 
        member to receive the drug covered by the waiver.
    (b) Time and Form of Notice.--(1) Subsection (b) of such section is 
amended by striking out ``, if practicable'' and all that follows 
through ``first administered to the member''.
    (2) Subsection (c) of such section is amended by striking out 
``unless the Secretary of Defense determines'' and all that follows 
through ``alternative method''.

SEC. 732. HEALTH BENEFITS FOR ABUSED DEPENDENTS OF MEMBERS OF THE ARMED 
              FORCES.

    Section 1076(e) of title 10, United States Code, is amended--
        (1) by amending paragraph (1) to read as follows:
    ``(1) Subject to paragraph (3), the administering Secretary shall 
furnish an abused dependent of a former member of a uniformed service 
described in paragraph (4), during that period that the abused 
dependent is in receipt of transitional compensation under section 1059 
of this title, with medical and dental care, including mental health 
services, in facilities of the uniformed services in accordance with 
the same eligibility and benefits as were applicable for that abused 
dependent during the period of active service of the former member.''; 
and
        (2) in paragraph (3)--
            (A) by adding ``and'' at the end of subparagraph (A);
            (B) by striking ``; and'' at the end of subparagraph (B) 
        and inserting a period; and
            (C) by striking subparagraph (C).

SEC. 733. PROVISION OF HEALTH CARE AT MILITARY ENTRANCE PROCESSING 
              STATIONS AND ELSEWHERE OUTSIDE MEDICAL TREATMENT 
              FACILITIES.

    (a) Extension of Authorization for Use of Personal Services 
Contracts.--Section 1091(a)(2) of title 10, United States Code, is 
amended in the second sentence by striking out ``the end of the one-
year period beginning on the date of the enactment of this paragraph'' 
and inserting in lieu thereof ``December 31, 2000''.
    (b) Test of Alternative Process for Conducting Medical Screenings 
for Enlistment Qualification.--(1) The Secretary of Defense shall 
conduct a test to--
        (A) determine whether the use of an alternative to the system 
    currently used by the Department of Defense of employing fee-basis 
    physicians for determining the medical qualifications for 
    enlistment of applicants for military service would reduce the 
    number of disqualifying medical conditions that are detected during 
    the initial entry training of such applicants;
        (B) determine whether any savings or cost avoidance may be 
    achieved through use of an alternative system as a result of any 
    increased detection of disqualifying medical conditions before 
    entry by applicants into initial entry training; and
        (C) compare the capability of an alternative system to meet or 
    exceed the cost, responsiveness, and timeliness standards of the 
    system currently used by the Department.
    (2) The alternative system described in paragraph (1) may include 
the system used under the TRICARE system, the health-care system of the 
Department of Veterans Affairs, or any other system, or combination of 
systems, considered appropriate by the Secretary.
    (3) Not later than March 1, 2000, the Secretary shall submit to the 
Committee on National Security of the House of Representatives and the 
Committee on Armed Services of the Senate a report on the results and 
findings of the test conducted under paragraph (1).

SEC. 734. PROFESSIONAL QUALIFICATIONS OF PHYSICIANS PROVIDING MILITARY 
              HEALTH CARE.

    (a) Requirement for Unrestricted License.--Section 1094(a)(1) of 
title 10, United States Code, is amended by adding at the end the 
following: ``In the case of a physician, the physician may not provide 
health care as a physician under this chapter unless the current 
license is an unrestricted license that is not subject to limitation on 
the scope of practice ordinarily granted to other physicians for a 
similar specialty by the jurisdiction that granted the license.''.
    (b) Satisfaction of Continuing Medical Education Requirements.--(1) 
Chapter 55 of title 10, United States Code, is amended by inserting 
after section 1094 the following new section:

``Sec. 1094a. Continuing medical education requirements: system for 
            monitoring physician compliance

    ``The Secretary of Defense shall establish a mechanism for ensuring 
that each person under the jurisdiction of the Secretary of a military 
department who provides health care under this chapter as a physician 
satisfies the continuing medical education requirements applicable to 
the physician.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1094 the 
following new item:
``1094a. Continuing medical education requirements: system for 
          monitoring physician compliance.''.

    (c) Effective Dates.--(1) The amendment made by subsection (a) 
shall take effect on October 1, 1999.
    (2) The system required by section 1094a of title 10, United States 
Code (as added by subsection (b)), shall take effect on the date that 
is three years after the date of the enactment of this Act.

                       Subtitle E--Other Matters

SEC. 741. ENHANCED DEPARTMENT OF DEFENSE ORGAN AND TISSUE DONOR 
              PROGRAM.

    (a) Findings.--Congress makes the following findings:
        (1) Organ and tissue transplantation is one of the most 
    remarkable medical success stories in the history of medicine.
        (2) Each year, the number of people waiting for organ or tissue 
    transplantation increases. It is estimated that there are 
    approximately 39,000 patients, ranging in age from babies to those 
    in retirement, awaiting transplants of kidneys, hearts, livers, and 
    other solid organs.
        (3) The Department of Defense has made significant progress in 
    increasing the awareness of the importance of organ and tissue 
    donations among members of the Armed Forces.
        (4) The inclusion of organ and tissue donor elections in the 
    Defense Enrollment Eligibility Reporting System (DEERS) central 
    database represents a major step in ensuring that organ and tissue 
    donor elections are a matter of record and are accessible in a 
    timely manner.
    (b) Responsibilities Regarding Organ and Tissue Donation.--(1) 
Chapter 55 of title 10, United States Code, is amended by adding after 
section 1108, as added by section 721(a)(1), the following new section:

``Sec. 1109. Organ and tissue donor program

    ``(a) Responsibilities of the Secretary of Defense.--The Secretary 
of Defense shall ensure that the advanced systems developed for 
recording armed forces members' personal data and information (such as 
the SMARTCARD, MEDITAG, and Personal Information Carrier) include the 
capability to record organ and tissue donation elections.
    ``(b) Responsibilities of the Secretaries of the Military 
Departments.--(1) The Secretaries of the military departments shall 
ensure that--
        ``(1) appropriate information about organ and tissue donation 
    is provided--
            ``(A) to each officer candidate during initial training; 
        and
            ``(B) to each recruit--
                ``(i) after completion by the recruit of basic 
            training; and
                ``(ii) before arrival of the recruit at the first duty 
            assignment of the recruit;
        ``(2) members of the armed forces are given recurring, specific 
    opportunities to elect to be organ or tissue donors during service 
    in the armed forces and upon retirement; and
        ``(3) members of the armed forces electing to be organ or 
    tissue donors are encouraged to advise their next of kin concerning 
    the donation decision and any subsequent change of that decision.
    ``(c) Responsibilities of the Surgeons General of the Military 
Departments.--The Surgeons General of the military departments shall 
ensure that--
        ``(1) appropriate training is provided to enlisted and officer 
    medical personnel to facilitate the effective operation of organ 
    and tissue donation activities under garrison conditions and, to 
    the extent possible, under operational conditions; and
        ``(2) medical logistical activities can, to the extent possible 
    without jeopardizing operational requirements, support an effective 
    organ and tissue donation program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 1108, as added by 
section 721(a)(2), the following new item:
``1109. Organ and tissue donor program.''.

    (c) Report.--Not later than September 1, 1999, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives 
a report on the implementation of section 1109 of title 10, United 
States Code (as added by subsection (b)).

SEC. 742. AUTHORIZATION TO ESTABLISH A LEVEL 1 TRAUMA TRAINING CENTER.

    The Secretary of the Army is hereby authorized to establish a Level 
1 Trauma Training Center (as designated by the American College of 
Surgeons) in order to provide the Army with a trauma center capable of 
training forward surgical teams.

SEC. 743. AUTHORITY TO ESTABLISH CENTER FOR STUDY OF POST-DEPLOYMENT 
              HEALTH CONCERNS OF MEMBERS OF THE ARMED FORCES.

    The Secretary of Defense is hereby authorized to establish a center 
devoted to a longitudinal study to evaluate data on the health 
conditions of members of the Armed Forces upon their return from 
deployment on military operations for purposes of ensuring the rapid 
identification of any trends in diseases, illnesses, or injuries among 
such members as a result of such operations.

SEC. 744. REPORT ON IMPLEMENTATION OF ENROLLMENT-BASED CAPITATION FOR 
              FUNDING FOR MILITARY MEDICAL TREATMENT FACILITIES.

    (a) Report Required.--The Secretary of Defense shall submit to 
Congress a report on the potential impact of using an enrollment-based 
capitation methodology to allocate funds for military medical treatment 
facilities. The report shall address the following:
        (1) A description of the plans of the Secretary to implement an 
    enrollment-based capitation methodology for military medical 
    treatment facilities and with respect to contracts for the delivery 
    of health care under the TRICARE program.
        (2) The justifications for implementing an enrollment-based 
    capitation methodology without first conducting a demonstration 
    project for implementation of such methodology.
        (3) The impact that implementation of an enrollment-based 
    capitation methodology would have on the provision of space-
    available care at military medical treatment facilities, 
    particularly in the case of care for--
            (A) military retirees who are entitled to hospital 
        insurance benefits under part A of title XVIII of the Social 
        Security Act (42 U.S.C. 1395c et seq.); and
            (B) covered beneficiaries under chapter 55 of title 10, 
        United States Code, who reside outside the catchment area of a 
        military medical treatment facility.
        (4) The impact that implementation of an enrollment-based 
    capitation methodology would have with respect to the pharmacy 
    benefits provided at military medical treatment facilities, given 
    that the enrollment-based capitation methodology would fund 
    military medical treatment facilities based on the number of 
    members at such facilities enrolled in TRICARE Prime, but all 
    covered beneficiaries may fill prescriptions at military medical 
    treatment facility pharmacies.
        (5) An explanation of how additional funding will be provided 
    for a military medical treatment facility if an enrollment-based 
    capitation methodology is implemented to ensure that space-
    available care and pharmacy coverage can be provided to covered 
    beneficiaries who are not enrolled at the military medical 
    treatment facility, and the amount of funding that will be 
    available.
        (6) An explanation of how implementation of an enrollment-based 
    capitation methodology would impact the provision of uniform 
    benefits under TRICARE Prime, and how the Secretary would ensure, 
    if such methodology were implemented, that the provision of health 
    care under TRICARE Prime would not be bifurcated between the 
    provision of such care at military medical treatment facilities and 
    the provision of such care from civilian providers.
    (b) Deadline for Submission.--The Secretary shall submit the report 
required by subsection (a) not later than March 1, 1999.

SEC. 745. JOINT DEPARTMENT OF DEFENSE AND DEPARTMENT OF VETERANS 
              AFFAIRS REPORTS RELATING TO INTERDEPARTMENTAL COOPERATION 
              IN THE DELIVERY OF MEDICAL CARE.

    (a) Findings.--Congress makes the following findings:
        (1) The military health care system of the Department of 
    Defense and the Veterans Health Administration of the Department of 
    Veterans Affairs are national institutions that collectively manage 
    more than 1,500 hospitals, clinics, and health care facilities 
    worldwide to provide services to more than 11,000,000 
    beneficiaries.
        (2) In the post-Cold War era, these institutions are in a 
    profound transition that involves challenging opportunities.
        (3) During the period from 1988 to 1998, the number of military 
    medical personnel has declined by 15 percent and the number of 
    military hospitals has been reduced by one-third.
        (4) During the 2 years since 1996, the Department of Veterans 
    Affairs has revitalized its structure by decentralizing authority 
    into 22 Veterans Integrated Service Networks.
        (5) In the face of increasing costs of medical care, increased 
    demands for health care services, and increasing budgetary 
    constraints, the Department of Defense and the Department of 
    Veterans Affairs have embarked on a variety of dynamic and 
    innovative cooperative programs ranging from shared services to 
    joint venture operations of medical facilities.
        (6) In 1984, there was a combined total of 102 Department of 
    Veterans Affairs and Department of Defense facilities with sharing 
    agreements. By 1997, that number had grown to 420. During the six 
    years from fiscal year 1992 through fiscal year 1997, shared 
    services increased from slightly over 3,000 services to more than 
    6,000 services, ranging from major medical and surgical services, 
    laundry, blood, and laboratory services to unusual speciality care 
    services.
        (7) The Department of Defense and the Department of Veterans 
    Affairs are conducting four health care joint ventures in New 
    Mexico, Nevada, Texas, and Oklahoma, and are planning to conduct 
    four more such ventures in Alaska, Florida, Hawaii, and California.
    (b) Sense of Congress.--It is the sense of Congress that--
        (1) the Department of Defense and the Department of Veterans 
    Affairs should be commended for the cooperation between the two 
    departments in the delivery of medical care, of which the 
    cooperation involved in the establishment and operation of the 
    Department of Defense and the Department of Veterans Affairs 
    Executive Council is a praiseworthy example;
        (2) the Department of Defense and the Department of Veterans 
    Affairs are encouraged to continue to explore new opportunities to 
    enhance the availability and delivery of medical care to 
    beneficiaries by further enhancing the cooperative efforts of the 
    departments; and
        (3) enhanced cooperation between the Department of Defense and 
    the Department of Veterans Affairs is encouraged regarding--
            (A) the general areas of access to quality medical care, 
        identification and elimination of impediments to enhanced 
        cooperation, and joint research and program development; and
            (B) the specific areas in which there is significant 
        potential to achieve progress in cooperation in a short term, 
        including computerization of patient records systems, 
        participation of the Department of Veterans Affairs in the 
        TRICARE program, pharmaceutical programs, and joint physical 
        examinations.
    (c) Joint Survey of Populations Served.--(1) The Secretary of 
Defense and the Secretary of Veterans Affairs shall jointly conduct a 
survey of their respective medical care beneficiary populations to 
identify, by category of beneficiary (defined as the Secretaries 
consider appropriate), the expectations of, requirements for, and 
behavior patterns of the beneficiaries with respect to medical care. 
The two Secretaries shall develop the protocol for the survey jointly, 
but shall obtain the services of an entity independent of the 
Department of Defense and the Department of Veterans Affairs to carry 
out the survey.
    (2) The survey shall include the following:
        (A) Demographic characteristics, economic characteristics, and 
    geographic location of beneficiary populations with regard to 
    catchment or service areas.
        (B) The types and frequency of care required by veterans, 
    retirees, and dependents within catchment or service areas of 
    Department of Defense and Department of Veterans Affairs medical 
    facilities and outside those areas.
        (C) The numbers of, characteristics of, and types of medical 
    care needed by the veterans, retirees, and dependents who, though 
    eligible for medical care in Department of Defense or Department of 
    Veterans Affairs treatment facilities or through other federally 
    funded medical programs, choose not to seek medical care from those 
    facilities or under those programs, and the reasons for that 
    choice.
        (D) The obstacles or disincentives for seeking medical care 
    from such facilities or under such programs that are perceived by 
    veterans, retirees, and dependents.
        (E) Any other matters that the Secretary of Defense and the 
    Secretary of Veterans Affairs consider appropriate for the survey.
    (3) The Secretary of Defense or the Secretary of Veterans Affairs 
may waive the survey requirements under this subsection with respect to 
information that can be better obtained from a source other than the 
survey.
    (4) The Secretary of Defense and the Secretary of Veterans Affairs 
shall submit a report on the results of the survey to the appropriate 
committees of Congress. The report shall contain the matters described 
in paragraph (2) and any proposals for legislation that the Secretaries 
recommend for enhancing Department of Defense and Department of 
Veterans Affairs cooperative efforts with respect to the delivery of 
medical care.
    (d) Review of Law and Policies.--(1) The Secretary of Defense and 
the Secretary of Veterans Affairs shall jointly conduct a review to 
identify impediments to cooperation between the Department of Defense 
and the Department of Veterans Affairs regarding the delivery of 
medical care. The matters reviewed shall include the following:
        (A) All laws, policies, and regulations, and any attitudes of 
    beneficiaries of the health care systems of the two departments, 
    that have the effect of preventing the establishment, or limiting 
    the effectiveness, of cooperative health care programs of the 
    departments.
        (B) The requirements and practices involved in the 
    credentialling and licensure of health care providers.
        (C) The perceptions of beneficiaries in a variety of categories 
    (defined as the Secretaries consider appropriate) regarding the 
    various Federal health care systems available for their use.
        (D) The types and frequency of medical services furnished by 
    the Department of Defense and the Department of Veterans Affairs 
    through cooperative arrangements to each category of beneficiary 
    (including active-duty members, retirees, dependents, veterans in 
    the health-care eligibility categories referred to as Category A 
    and Category C, and persons authorized to receive medical care 
    under section 1713 of title 38, United States Code) of the other 
    department.
        (E) The extent to which health care facilities of the 
    Department of Defense and Department of Veterans Affairs have 
    sufficient capacity, or could jointly or individually create 
    sufficient capacity, to provide services to beneficiaries of the 
    other department without diminution of access or services to their 
    primary beneficiaries.
        (F) The extent to which the recruitment of scarce medical 
    specialists and allied health personnel by the Department of 
    Defense and the Department of Veterans Affairs could be enhanced 
    through cooperative arrangements for providing health care 
    services.
        (G) The obstacles and disincentives to providing health care 
    services through cooperative arrangements between the Department of 
    Defense and the Department of Veterans Affairs.
    (2) The Secretaries shall jointly submit a report on the results of 
the review to the appropriate committees of Congress. The report shall 
include any proposals for legislation that the Secretaries recommend 
for eliminating or reducing impediments to interdepartmental 
cooperation that are identified during the review.
    (e) Participation in TRICARE.--(1) The Secretary of Defense shall 
review the TRICARE program to identify opportunities for increased 
participation by the Department of Veterans Affairs in that program. 
The ongoing collaboration between Department of Defense officials and 
Department of Veterans Affairs officials regarding increased 
participation shall be included among the matters reviewed.
    (2) The Secretary of Defense and the Secretary of Veterans Affairs 
shall jointly submit to the appropriate committees of Congress a 
semiannual report on the status of the review under this subsection and 
on efforts to increase the participation of the Department of Veterans 
Affairs in the TRICARE program. No report is required under this 
paragraph after the submission of a semiannual report in which the 
Secretaries declare that the Department of Veterans Affairs is 
participating in the TRICARE program to the extent that can reasonably 
be expected to be attained.
    (f) Pharmaceutical Benefits and Programs.--(1) The Department of 
Defense-Department of Veterans Affairs Federal Pharmacy Executive 
Steering Committee shall--
        (A) undertake a comprehensive examination of existing 
    pharmaceutical benefits and programs for beneficiaries of 
    Department of Defense medical care programs, including matters 
    relating to the purchasing, distribution, and dispensing of 
    pharmaceuticals and the management of mail order pharmaceuticals 
    programs; and
        (B) review the existing methods for contracting for and 
    distributing medical supplies and services.
    (2) The committee shall submit a report on the results of the 
examination to the appropriate committees of Congress.
    (g) Standardization of Physical Examinations for Disability.--The 
Secretary of Defense and the Secretary of Veterans Affairs shall 
jointly submit to the appropriate committees of Congress a report on 
the status of the efforts of the Department of Defense and the 
Department of Veterans Affairs to standardize physical examinations 
administered by the two departments for the purpose of determining or 
rating disabilities.
    (h) Appropriate Committees of Congress Defined.--For the purposes 
of this section, the appropriate committees of Congress are as follows:
        (1) The Committee on Armed Services and the Committee on 
    Veterans' Affairs of the Senate.
        (2) The Committee on National Security and the Committee on 
    Veterans' Affairs of the House of Representatives.
    (i) Deadlines for Submission of Reports.--(1) The report required 
by subsection (c)(3) shall be submitted not later than January 1, 2000.
    (2) The report required by subsection (d)(2) shall be submitted not 
later than March 1, 1999.
    (3) The semiannual report required by subsection (e)(2) shall be 
submitted not later than March 1 and September 1 of each year.
    (4) The report on the examination required under subsection (f) 
shall be submitted not later than 60 days after the completion of the 
examination.
    (5) The report required by subsection (g) shall be submitted not 
later than March 1, 1999.

SEC. 746. REPORT ON RESEARCH AND SURVEILLANCE ACTIVITIES REGARDING LYME 
              DISEASE AND OTHER TICK-BORNE DISEASES.

    Not later than April 1, 1999, the Secretary of Defense shall submit 
to the Committee on National Security of the House of Representatives 
and the Committee on Armed Services of the Senate a report on the 
current and recommended levels of research and surveillance activities 
regarding Lyme disease and other tick-borne diseases among members of 
the Armed Forces. The report shall include the following:
        (1) An analysis of the current and projected threat to the 
    operational readiness of the Armed Forces posed by Lyme disease and 
    other tick-borne diseases in the United States and in overseas 
    locations at which members of the Armed Forces might be deployed.
        (2) A review of the current research efforts being implemented 
    to prevent the contraction of Lyme disease and other tick-borne 
    diseases by members of the Armed Forces, and to enhance the early 
    identification of such diseases once they have been contracted.
        (3) An assessment of the adequacy of existing and projected 
    funding levels for research and surveillance activities relating to 
    Lyme disease and other tick-borne diseases among members of the 
    Armed Forces.
        (4) The recommended funding levels necessary to address the 
    threats posed to the operational readiness of the Armed Forces by 
    Lyme disease and other tick-borne diseases.

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

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

Sec.801.Limitation on use of price preference upon achievement of 
          contract goal for small and disadvantaged businesses.
Sec.802.Distribution of assistance under the Procurement Technical 
          Assistance Cooperative Agreement Program.
Sec.803.Defense commercial pricing management improvement.
Sec.804.Modification of senior executives covered by limitation on 
          allowability of compensation for certain contractor personnel.
Sec.805.Separate determinations of exceptional waivers of truth in 
          negotiation requirements for prime contracts and subcontracts.
Sec.806.Procurement of conventional ammunition.
Sec.807.Para-aramid fibers and yarns.
Sec.808.Clarification of responsibility for submission of information on 
          prices previously charged for property or services offered.
Sec.809.Amendments and study relating to procurement from firms in 
          industrial base for production of small arms.

                        Subtitle B--Other Matters

Sec.811.Eligibility of involuntarily downgraded employee for membership 
          in an acquisition corps.
Sec.812.Time for submission of annual report relating to Buy American 
          Act.
Sec.813.Procurement of travel services for official and unofficial 
          travel under one contract.
Sec.814.Department of Defense purchases through other agencies.
Sec.815.Supervision of defense acquisition university structure by Under 
          Secretary of Defense for Acquisition and Technology.
Sec.816.Pilot programs for testing program manager performance of 
          product support oversight responsibilities for life cycle of 
          acquisition programs.
Sec.817.Scope of protection of certain information from disclosure.
Sec.818.Plan for rapid transition from completion of small business 
          innovation research into defense acquisition programs.
Sec.819.Five-year authority for Secretary of the Navy to exchange 
          certain items.
Sec.820.Permanent authority for use of major range and test facility 
          installations by commercial entities.
Sec.821.Inventory exchange authorized for certain fuel delivery 
          contract.

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

SEC. 801. LIMITATION ON USE OF PRICE PREFERENCE UPON ACHIEVEMENT OF 
              CONTRACT GOAL FOR SMALL AND DISADVANTAGED BUSINESSES.

    Section 2323(e)(3) of title 10, United States Code, is amended--
        (1) by inserting ``(A)'' after ``(3)'';
        (2) by inserting ``, except as provided in subparagraph (B),'' 
    after ``the head of an agency may'' in the first sentence; and
        (3) by adding at the end the following:
        ``(B)(i) The Secretary of Defense may not exercise the 
    authority under subparagraph (A) to enter into a contract for a 
    price exceeding fair market cost if the regulations implementing 
    that authority are suspended under clause (ii) with respect to that 
    contract.
        ``(ii) At the beginning of each fiscal year, the Secretary 
    shall determine, on the basis of the most recent data, whether the 
    Department of Defense achieved the 5 percent goal described in 
    subsection (a) during the fiscal year to which the data relates. 
    Upon determining that the Department achieved the goal for the 
    fiscal year to which the data relates, the Secretary shall issue a 
    suspension, in writing, of the regulations that implement the 
    authority under subparagraph (A). Such a suspension shall be in 
    effect for the one-year period beginning 30 days after the date on 
    which the suspension is issued and shall apply with respect to 
    contracts awarded pursuant to solicitations issued during that 
    period.
        ``(iii) For purposes of clause (ii), the term `most recent 
    data' means data relating to the most recent fiscal year for which 
    data are available.''.

SEC. 802. DISTRIBUTION OF ASSISTANCE UNDER THE PROCUREMENT TECHNICAL 
              ASSISTANCE COOPERATIVE AGREEMENT PROGRAM.

    (a) Correction of Description of Geographic Unit.--(1) Section 
2413(c) of title 10, United States Code, is amended by striking out 
``region'' and inserting in lieu thereof ``district''.
    (2) Section 2415 of such title is amended--
        (A) by striking out ``region'' and inserting in lieu thereof 
    ``district'' each place it appears; and
        (B) by striking out ``regions'' and inserting in lieu thereof 
    ``districts''.
    (b) Technical Amendment.--Section 2415 of such title is amended by 
striking out ``Defense Contract Administrative Services'' and inserting 
in lieu thereof ``Department of Defense contract administrative 
services''.

SEC. 803. DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

    (a) Modification of Pricing Regulations for Certain Commercial 
Items Exempt From Cost or Pricing Data Certification Requirements.--(1) 
The Federal Acquisition Regulation issued in accordance with sections 6 
and 25 of the Office of Federal Procurement Policy Act (41 U.S.C. 405, 
421) shall be revised to clarify the procedures and methods to be used 
for determining the reasonableness of prices of exempt commercial items 
(as defined in subsection (d)).
    (2) The regulations shall, at a minimum, provide specific guidance 
on--
        (A) the appropriate application and precedence of such price 
    analysis tools as catalog-based pricing, market-based pricing, 
    historical pricing, parametric pricing, and value analysis;
        (B) the circumstances under which contracting officers should 
    require offerors of exempt commercial items to provide--
            (i) information on prices at which the offeror has 
        previously sold the same or similar items; or
            (ii) other information other than certified cost or pricing 
        data;
        (C) the role and responsibility of Department of Defense 
    support organizations in procedures for determining price 
    reasonableness; and
        (D) the meaning and appropriate application of the term 
    ``purposes other than governmental purposes'' in section 4(12) of 
    the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)).
    (3) This subsection shall cease to be effective 1 year after the 
date on which final regulations prescribed pursuant to paragraph (1) 
take effect.
    (b) Unified Management of Procurement of Exempt Commercial Items.--
The Secretary of Defense shall develop and implement procedures to 
ensure that, whenever appropriate, a single item manager or contracting 
officer is responsible for negotiating and entering into all contracts 
from a single contractor for the procurement of exempt commercial items 
or for the procurement of items in a category of exempt commercial 
items.
    (c) Commercial Price Trend Analysis.--(1) The Secretary of Defense 
shall develop and implement procedures that, to the maximum extent that 
is practicable and consistent with the efficient operation of the 
Department of Defense, provide for the collection and analysis of 
information on price trends for categories of exempt commercial items 
described in paragraph (2).
    (2) A category of exempt commercial items referred to in paragraph 
(1) consists of exempt commercial items--
        (A) that are in a single Federal Supply Group or Federal Supply 
    Class, are provided by a single contractor, or are otherwise 
    logically grouped for the purpose of analyzing information on price 
    trends; and
        (B) for which there is a potential for the price paid to be 
    significantly higher (on a percentage basis) than the prices 
    previously paid in procurements of the same or similar items for 
    the Department of Defense, as determined by the head of the 
    procuring Department of Defense agency or the Secretary of the 
    procuring military department on the basis of criteria prescribed 
    by the Secretary of Defense.
    (3) The head of a Department of Defense agency or the Secretary of 
a military department shall take appropriate action to address any 
unreasonable escalation in prices being paid for items procured by that 
agency or military department as identified in an analysis conducted 
pursuant to paragraph (1).
    (4) Not later than April 1 of each of fiscal years 2000, 2001, and 
2002, the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on the analyses of price trends that 
were conducted for categories of exempt commercial items during the 
preceding fiscal year under the procedures prescribed pursuant to 
paragraph (1). The report shall include a description of the actions 
taken to identify and address any unreasonable price escalation for the 
categories of items.
    (d) Exempt Commercial Items Defined.--For the purposes of this 
section, the term ``exempt commercial item'' means a commercial item 
that is exempt under subsection (b)(1)(B) of section 2306a of title 10, 
United States Code, or subsection (b)(1)(B) of section 304A of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
254b), from the requirements for submission of certified cost or 
pricing data under that section.

SEC. 804. MODIFICATION OF SENIOR EXECUTIVES COVERED BY LIMITATION ON 
              ALLOWABILITY OF COMPENSATION FOR CERTAIN CONTRACTOR 
              PERSONNEL.

    (a) Armed Services Acquisitions.--Section 2324(l)(5) of title 10, 
United States Code, is amended to read as follows:
        ``(5) The term `senior executives', with respect to a 
    contractor, means the five most highly compensated employees in 
    management positions at each home office and each segment of the 
    contractor.''.
    (b) Civilian Agency Acquisitions.--Section 306(m)(2) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 256(m)(2)) 
is amended to read as follows:
        ``(2) The term `senior executives', with respect to a 
    contractor, means the five most highly compensated employees in 
    management positions at each home office and each segment of the 
    contractor.''.
    (c) Conforming Amendments.--(1) Section 39(c)(2) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 435(c)(2)) is amended to read 
as follows:
        ``(2) The term `senior executives', with respect to a 
    contractor, means the five most highly compensated employees in 
    management positions at each home office and each segment of the 
    contractor.''.
    (2) Section 808(g)(2) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1838) is amended by 
striking out ``senior executive'' and inserting in lieu thereof 
``senior executives''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to costs of compensation of senior executives 
incurred after January 1, 1999, under covered contracts (as defined in 
section 2324(l) of title 10, United States Code, and section 306(l) of 
the Federal Property and Administrative Services Act of 1949 (41 
U.S.C.256(l)) entered into before, on, or after the date of the 
enactment of this Act.

SEC. 805. SEPARATE DETERMINATIONS OF EXCEPTIONAL WAIVERS OF TRUTH IN 
              NEGOTIATION REQUIREMENTS FOR PRIME CONTRACTS AND 
              SUBCONTRACTS.

    (a) Armed Services Acquisitions.--Section 2306a(a)(5) of title 10, 
United States Code, is amended to read as follows:
    ``(5) A waiver of requirements for submission of certified cost or 
pricing data that is granted under subsection (b)(1)(C) in the case of 
a contract or subcontract does not waive the requirement under 
paragraph (1)(C) for submission of cost or pricing data in the case of 
subcontracts under that contract or subcontract unless the head of the 
procuring activity granting the waiver determines that the requirement 
under that paragraph should be waived in the case of such subcontracts 
and justifies in writing the reasons for the determination.''.
    (b) Civilian Agency Acquisitions.--Section 304A(a)(5) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
254b(a)(5)) is amended to read as follows:
    ``(5) A waiver of requirements for submission of certified cost or 
pricing data that is granted under subsection (b)(1)(C) in the case of 
a contract or subcontract does not waive the requirement under 
paragraph (1)(C) for submission of cost or pricing data in the case of 
subcontracts under that contract or subcontract unless the head of the 
procuring activity granting the waiver determines that the requirement 
under that paragraph should be waived in the case of such subcontracts 
and justifies in writing the reasons for the determination.''.

SEC. 806. PROCUREMENT OF CONVENTIONAL AMMUNITION.

    (a) Authority.--The official in the Department of Defense 
designated as the single manager for conventional ammunition in the 
Department shall have the authority to restrict the procurement of 
conventional ammunition to sources within the national technology and 
industrial base in accordance with the authority in section 2304(c) of 
title 10, United States Code.
    (b) Requirement.--The official in the Department of Defense 
designated as the single manager for conventional ammunition in the 
Department of Defense shall limit a specific procurement of ammunition 
to sources within the national technology and industrial base in 
accordance with section 2304(c)(3) of title 10, United States Code, in 
any case in which that manager determines that such limitation is 
necessary to maintain a facility, producer, manufacturer, or other 
supplier available for furnishing an essential item of ammunition or 
ammunition component in cases of national emergency or to achieve 
industrial mobilization.
    (c) Conventional Ammunition Defined.--For purposes of this section, 
the term ``conventional ammunition'' has the meaning given that term in 
Department of Defense Directive 5160.65, dated March 8, 1995.

SEC. 807. PARA-ARAMID FIBERS AND YARNS.

    (a) Authority.--The Secretary of Defense may procure articles 
containing para-aramid fibers and yarns manufactured in a foreign 
country referred to in subsection (d) if the Secretary determines 
that--
        (1) procuring articles that contain only para-aramid fibers and 
    yarns manufactured from suppliers within the national technology 
    and industrial base would result in sole-source contracts or 
    subcontracts for the supply of such para-aramid fibers and yarns; 
    and
        (2) such sole-source contracts or subcontracts would not be in 
    the best interests of the Government or consistent with the 
    objectives of section 2304 of title 10, United States Code.
    (b) Submission to Congress.--Not later than 30 days after making a 
determination under subsection (a), the Secretary shall submit to 
Congress a copy of the determination.
    (c) Applicability to Subcontracts.--The authority under subsection 
(a) applies with respect to subcontracts under Department of Defense 
contracts as well as to such contracts.
    (d) Foreign Countries Covered.--The authority under subsection (a) 
applies with respect to a foreign country that--
        (1) is a party to a defense memorandum of understanding entered 
    into under section 2531 of this title; and
        (2) permits United States firms that manufacture para-aramid 
    fibers and yarns to compete with foreign firms for the sale of 
    para-aramid fibers and yarns in that country, as determined by the 
    Secretary of Defense.
    (e) Definition.--In this section, the term ``national technology 
and industrial base'' has the meaning given that term in section 2500 
of title 10, United States Code.

SEC. 808. CLARIFICATION OF RESPONSIBILITY FOR SUBMISSION OF INFORMATION 
              ON PRICES PREVIOUSLY CHARGED FOR PROPERTY OR SERVICES 
              OFFERED.

    (a) Armed Services Procurements.--Section 2306a(d)(1) of title 10, 
United States Code, is amended by striking out ``the data submitted 
shall'' in the second sentence and inserting in lieu thereof the 
following: ``the contracting officer shall require that the data 
submitted''.
    (b) Civilian Agency Procurements.--Section 304A(d)(1) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
254b(d)(1)), is amended by striking out ``the data submitted shall'' in 
the second sentence and inserting in lieu thereof the following: ``the 
contracting officer shall require that the data submitted''.
    (c) Eligibility for Contracts and Subcontracts To Be Conditioned on 
Compliance.--Not later than 180 days after the date of the enactment of 
this Act, the Federal Acquisition Regulation shall be amended to 
provide that an offeror's compliance with a requirement to submit data 
for a contract or subcontract in accordance with section 2306a(d)(1) of 
title 10, United States Code, or section 304A(d)(1) of the Federal 
Property and Administrative Services Act of 1949 shall be a condition 
for the offeror to be eligible to enter into the contract or 
subcontract, subject to such exceptions as the Federal Acquisition 
Regulatory Council determines appropriate.
    (d) Criteria for Certain Determinations.--Not later than 180 days 
after the date of the enactment of this Act, the Federal Acquisition 
Regulation shall be amended to include criteria for contracting 
officers to apply for determining the specific price information that 
an offeror should be required to submit under section 2306a(d) of title 
10, United States Code, or section 304A(d) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 254b(d)).

SEC. 809. AMENDMENTS AND STUDY RELATING TO PROCUREMENT FROM FIRMS IN 
              INDUSTRIAL BASE FOR PRODUCTION OF SMALL ARMS.

    (a) Requirement To Limit Procurements to Certain Sources.--
Subsection (a) of section 2473 of title 10, United States Code, is 
amended--
        (1) in the heading, by striking out the first word and 
    inserting in lieu thereof ``Requirement'';
        (2) by striking out ``To the extent that the Secretary of 
    Defense determines necessary to preserve the small arms production 
    industrial base, the Secretary may'' and inserting in lieu thereof 
    ``In order to preserve the small arms production industrial base, 
    the Secretary of Defense shall''; and
        (3) by inserting before the period at the end the following: 
    ``, unless the Secretary determines, with regard to a particular 
    procurement, that such requirement is not necessary to preserve the 
    small arms production industrial base''.
    (b) Specification of Included Repair Parts.--Subsection (b) of such 
section is amended in paragraph (1) by inserting before the period the 
following: ``, including repair parts consisting of barrels, receivers, 
and bolts''.
    (c) Applicability of Requirement.--Such section is further 
amended--
        (1) in subsection (b), by striking out ``Subsection'' and 
    inserting in lieu thereof ``Subject to subsection (d), 
    subsection''; and
        (2) by adding at the end the following new subsection:
    ``(d) Applicability.--This section applies only to procurements of 
covered property and services involving the following small arms:
        ``(1) M16 series rifle.
        ``(2) MK19 grenade machine gun.
        ``(3) M4 series carbine.
        ``(4) M240 series machine gun.
        ``(5) M249 squad automatic weapon.''.
    (d) Submission of Certified Cost or Pricing Data.--Such section is 
further amended by adding at the end the following new subsection:
    ``(e) Submission of Certified Cost or Pricing Data.--If a 
procurement under subsection (a) is a procurement of a commercial item, 
the Secretary may, notwithstanding section 2306a(b)(1)(B) of this 
title, require the submission of certified cost or pricing data under 
section 2306a(a) of this title.''.
    (e) Study.--Not later than 60 days after the date of the enactment 
of this Act, the Secretary of the Army shall conduct a study, to be 
carried out by the Army Science Board, to examine whether the 
requirements of section 2473 of title 10, United States Code, should be 
extended to small arms (as specified in subsection (d) of such section) 
and the parts manufactured under a contract with the Department of 
Defense to produce such small arms.
    (f) Authority to Extend Requirements of Section 2473.--Based upon 
recommendations of the Army Science Board resulting from the study 
conducted under subsection (e), the Secretary of the Army may apply the 
requirements of section 2473 of title 10, United States Code, to the 
small arms and parts referred to in subsection (e).

                       Subtitle B--Other Matters

SEC. 811. ELIGIBILITY OF INVOLUNTARILY DOWNGRADED EMPLOYEE FOR 
              MEMBERSHIP IN AN ACQUISITION CORPS.

    Section 1732(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) Paragraph (1) of subsection (b) shall not apply to an 
employee who--
        ``(A) having previously served in a position within a grade 
    referred to in subparagraph (A) of that paragraph, is currently 
    serving in the same position within a grade below GS-13 of the 
    General Schedule, or in another position within that grade, by 
    reason of a reduction in force or the closure or realignment of a 
    military installation, or for any other reason other than by reason 
    of an adverse personnel action for cause; and
        ``(B) except as provided in paragraphs (1) and (2), satisfies 
    the educational, experience, and other requirements prescribed 
    under paragraphs (2), (3), and (4) of that subsection.''.

SEC. 812. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY AMERICAN 
              ACT.

    Section 827 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 U.S.C. 10b-3) is 
amended by striking out ``90 days'' and inserting in lieu thereof ``60 
days''.

SEC. 813. PROCUREMENT OF TRAVEL SERVICES FOR OFFICIAL AND UNOFFICIAL 
              TRAVEL UNDER ONE CONTRACT.

    (a) Authority.--Chapter 157 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2646. Travel services: procurement for official and unofficial 
            travel under one contract

    ``(a) Authority.--The head of an agency may enter into a contract 
for travel-related services that provides for the contractor to furnish 
services for both official travel and unofficial travel.
    ``(b) Credits, Discounts, Commissions, Fees.--(1) A contract 
entered into under this section may provide for credits, discounts, or 
commissions or other fees to accrue to the Department of Defense. The 
accrual and amounts of credits, discounts, or commissions or other fees 
may be determined on the basis of the volume (measured in the number or 
total amount of transactions or otherwise) of the travel-related sales 
that are made by the contractor under the contract.
    ``(2) The evaluation factors applicable to offers for a contract 
under this section may include a factor that relates to the estimated 
aggregate value of any credits, discounts, commissions, or other fees 
that would accrue to the Department of Defense for the travel-related 
sales made under the contract.
    ``(3) Commissions or fees received by the Department of Defense as 
a result of travel-related sales made under a contract entered into 
under this section shall be distributed as follows:
        ``(A) For amounts relating to sales for official travel, credit 
    to appropriations available for official travel for the fiscal year 
    in which the amounts were charged.
        ``(B) For amounts relating to sales for unofficial travel, 
    deposit in nonappropriated fund accounts available for morale, 
    welfare, and recreation programs.
    ``(c) Definitions.--In this section:
        ``(1) The term `head of an agency' has the meaning given that 
    term in section 2302(1) of this title.
        ``(2) The term `official travel' means travel at the expense of 
    the Federal Government.
        ``(3) The term `unofficial travel' means personal travel or 
    other travel that is not paid for or reimbursed by the Federal 
    Government out of appropriated funds.
    ``(d) Inapplicability to Coast Guard and NASA.--This section does 
not apply to the Coast Guard when it is not operating as a service in 
the Navy, nor to the National Aeronautics and Space Administration.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``2646. Travel services: procurement for official and unofficial travel 
          under one contract.''.

SEC. 814. DEPARTMENT OF DEFENSE PURCHASES THROUGH OTHER AGENCIES.

    (a) Extension of Regulations.--Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
revise the regulations issued pursuant to section 844 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
Stat. 1720; 31 U.S.C. 1535 note) to--
        (1) cover any purchase described in subsection (b) that is 
    greater than the micro-purchase threshold; and
        (2) provide for a streamlined method of compliance for any such 
    purchase that is not greater than the simplified acquisition 
    threshold.
    (b) Description of Purchases.--A purchase referred to in subsection 
(a) is a purchase of goods or services for one agency of the Department 
of Defense by any other agency under a task or delivery order contract 
entered into by the other agency under section 2304a of title 10, 
United States Code, or section 303H of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253h).
    (c) Definitions.--In this section:
        (1) The term ``micro-purchase threshold'' has the meaning 
    provided in section 32 of the Office of Federal Procurement Policy 
    Act (41 U.S.C. 428).
        (2) The term ``simplified acquisition threshold'' has the 
    meaning provided in section 4 of such Act (41 U.S.C. 403).
    (d) Termination.--This section shall cease to be effective 1 year 
after the date on which final regulations prescribed pursuant to 
subsection (a) take effect.

SEC. 815. SUPERVISION OF DEFENSE ACQUISITION UNIVERSITY STRUCTURE BY 
              UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND 
              TECHNOLOGY.

    Section 1702 of title 10, United States Code, is amended by adding 
at the end the following: ``The Under Secretary shall prescribe 
policies and requirements for the educational programs of the defense 
acquisition university structure established under section 1746 of this 
title.''.

SEC. 816. PILOT PROGRAMS FOR TESTING PROGRAM MANAGER PERFORMANCE OF 
              PRODUCT SUPPORT OVERSIGHT RESPONSIBILITIES FOR LIFE CYCLE 
              OF ACQUISITION PROGRAMS.

    (a) Designation of Pilot Programs.--The Secretary of Defense, 
acting through the Secretaries of the military departments, shall 
designate 10 acquisition programs of the military departments as pilot 
programs on program manager responsibility for product support.
    (b) Responsibilities of Program Managers.--The program manager for 
each acquisition program designated as a pilot program under this 
section shall have the responsibility for ensuring that the product 
support functions for the program are properly carried out over the 
entire life cycle of the program.
    (c) Report.--Not later than February 1, 1999, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the pilot programs. The report shall contain the following:
        (1) A description of the acquisition programs designated as 
    pilot programs under subsection (a).
        (2) For each such acquisition program, the specific management 
    actions taken to ensure that the program manager has the 
    responsibility for oversight of the performance of the product 
    support functions.
        (3) Any proposed change to law, policy, regulation, or 
    organization that the Secretary considers desirable, and determines 
    feasible to implement, for ensuring that the program managers are 
    fully responsible under the pilot programs for the performance of 
    all such responsibilities.

SEC. 817. SCOPE OF PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

    Section 2371(i)(2)(A) of title 10, United States Code, is amended 
by striking out ``cooperative agreement that includes a clause 
described in subsection (d)'' and inserting in lieu thereof 
``cooperative agreement for performance of basic, applied, or advanced 
research authorized by section 2358 of this title''.

SEC. 818. PLAN FOR RAPID TRANSITION FROM COMPLETION OF SMALL BUSINESS 
              INNOVATION RESEARCH INTO DEFENSE ACQUISITION PROGRAMS.

    (a) Plan Required.--(1) Not later than February 1, 1999, the 
Secretary of Defense, in consultation with the Administrator of the 
Small Business Administration, shall develop a plan for facilitating 
the rapid transition into Department of Defense acquisition programs of 
successful first phase and second phase activities under the Small 
Business Innovation Research program under section 9 of the Small 
Business Act (15 U.S.C. 638).
    (2) The Secretary shall submit the plan developed under paragraph 
(1) to--
        (A) the Committee on Armed Services and the Committee on Small 
    Business of the Senate; and
        (B) the Committee on National Security and the Committee on 
    Small Business of the House of Representatives.
    (b) Conditions.--The plan developed under subsection (a) shall--
        (1) be consistent with the Small Business Innovation Research 
    program and with the provisions of division D of the Clinger-Cohen 
    Act of 1996 (division D of Public Law 104-106; 110 Stat. 642) and 
    the Federal Acquisition Streamlining Act of 1994 (Public Law 103-
    355; 108 Stat. 3243) that are applicable to the Department of 
    Defense; and
        (2) provide for favorable consideration, in the acquisition 
    planning process, for funding projects under the Small Business 
    Innovation Research program that have successfully completed the 
    second phase or are subject to a third phase agreement entered into 
    pursuant to section 9(r) of the Small Business Act (15 U.S.C. 
    638(r)).

SEC. 819. FIVE-YEAR AUTHORITY FOR SECRETARY OF THE NAVY TO EXCHANGE 
              CERTAIN ITEMS.

    (a) Barter Authority.--The Secretary of the Navy may enter into a 
barter agreement to convey trucks and other tactical vehicles in 
exchange for the repair and remanufacture of ribbon bridges for the 
Marine Corps. The Secretary shall enter into any such agreement in 
accordance with section 201(c) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481(c)), and the 
regulations issued under such section, except that the requirement that 
the items to be exchanged be similar shall not apply to the authority 
provided under this subsection.
    (b) Period of Authority.--The authority to enter into agreements 
under subsection (a) and to make exchanges under any such agreement is 
effective during the 5-year period beginning on October 1, 1998.

SEC. 820. PERMANENT AUTHORITY FOR USE OF MAJOR RANGE AND TEST FACILITY 
              INSTALLATIONS BY COMMERCIAL ENTITIES.

    (a) Permanent Authority.--Subsection (g) of section 2681 of title 
10, United States Code, is repealed.
    (b) Repeal of Executed Reporting Requirement.--Subsection (h) of 
such section is repealed.

SEC. 821. INVENTORY EXCHANGE AUTHORIZED FOR CERTAIN FUEL DELIVERY 
              CONTRACT.

    (a) Exchange of Barrels Authorized.--(1) The Secretary of Defense 
shall provide, under a contract described in subsection (f), that the 
contract may be performed, during the period described in paragraph 
(2), by means of delivery of fuel obtained by the refiner concerned in 
an inventory exchange of barrels of fuel, in any case in which--
        (A) the refiner is unable to physically deliver fuel in 
    compliance with the contract requirements because of ice conditions 
    in Cook Inlet, as determined by the Coast Guard; and
        (B) the Secretary determines that such inability will result in 
    an inequity to the refiner.
    (2) The period referred to in paragraph (1) is the period beginning 
on the date of the enactment of this Act and ending on February 28, 
1999.
    (b) Limitation.--The number of barrels of fuel exchanged pursuant 
to a contract described in subsection (f) may contain up to 15 percent 
of the total quantity of fuel required to be delivered under the 
contract.
    (c) Effect on Status as Small Disadvantaged Business.--Nothing in 
this section, and no action taken pursuant to this section, may be 
construed as affecting the status of the refiner as a small 
disadvantaged business.
    (d) Effect on Contractual Obligations.--Nothing in this section may 
be construed as affecting the requirement of a refiner to fulfill its 
contractual obligations under a contract described in subsection (e), 
other than as provided under subsection (b).
    (e) Small Disadvantaged Business Defined.--For the purposes of this 
section, the term ``small disadvantaged business'' means a socially and 
economically disadvantaged small business concern, a small business 
concern owned and controlled by socially and economically disadvantaged 
individuals, and a qualified HUBZone small business concern, as those 
terms are defined in sections 8(a)(4)(A), 8(d)(3)(C), and 3(p) of the 
Small Business Act (15 U.S.C. 637(a)(4)(A)), 637(d)(3)(C), and 632(p)), 
respectively.
    (f) Applicability.--This section applies to any contract between 
the Defense Energy Supply Center of the Department of Defense and a 
refiner that qualifies as a small disadvantaged business for the 
delivery of fuel by barge to Defense Energy Supply Point-Anchorage.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

       Subtitle A--Department of Defense Officers and Organization

Sec.901.Reduction in number of Assistant Secretary of Defense positions.
Sec.902.Repeal of statutory requirement for position of Assistant 
          Secretary of Defense for Command, Control, Communications, and 
          Intelligence.
Sec.903.Independent task force on transformation and Department of 
          Defense organization.
Sec.904.Authority to expand the National Defense University.
Sec.905.Center for Hemispheric Defense Studies.
Sec.906.Restructuring of administration of Fisher Houses.
Sec.907.Management reform for research, development, test, and 
          evaluation activities.

         Subtitle B--Department of Defense Financial Management

Sec.911.Improved accounting for defense contract services.
Sec.912.Report on Department of Defense financial management improvement 
          plan.
Sec.913.Study of feasibility of performance of Department of Defense 
          finance and accounting functions by private sector sources or 
          other Federal sources.
Sec.914.Limitation on reorganization and consolidation of operating 
          locations of the Defense Finance and Accounting Service.
Sec.915.Annual report on resources allocated to support and mission 
          activities.

              Subtitle C--Joint Warfighting Experimentation

Sec.921.Findings concerning joint warfighting experimentation.
Sec.922.Sense of Congress concerning joint warfighting experimentation.
Sec.923.Reports on joint warfighting experimentation.

                        Subtitle D--Other Matters

Sec.931.Further reductions in defense acquisition and support workforce.
Sec.932.Limitation on operation and support funds for the Office of the 
          Secretary of Defense.
Sec.933.Clarification and simplification of responsibilities of 
          Inspectors General regarding whistleblower protections.
Sec.934.Repeal of requirement relating to assignment of tactical airlift 
          mission to Reserve components.
Sec.935.Consultation with Marine Corps on major decisions directly 
          concerning Marine Corps aviation.

      Subtitle A--Department of Defense Officers and Organization

SEC. 901. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF DEFENSE 
              POSITIONS.

    (a) Reduction to Nine Positions.--Section 138(a) of title 10, 
United States Code, is amended by striking out ``ten'' and insert in 
lieu thereof ``nine''.
    (b) Conforming Amendment.--Section 5315 of title 5, United States 
Code, is amended by striking out ``(10)'' after ``Assistant Secretaries 
of Defense'' and inserting in lieu thereof ``(9)''.

SEC. 902. REPEAL OF STATUTORY REQUIREMENT FOR POSITION OF ASSISTANT 
              SECRETARY OF DEFENSE FOR COMMAND, CONTROL, 
              COMMUNICATIONS, AND INTELLIGENCE.

    Section 138(b) of title 10, United States Code is amended by 
striking out paragraph (3).

SEC. 903. INDEPENDENT TASK FORCE ON TRANSFORMATION AND DEPARTMENT OF 
              DEFENSE ORGANIZATION.

    (a) Findings.--Congress finds the following:
        (1) The post-Cold War era is marked by geopolitical uncertainty 
    and by accelerating technological change, particularly with regard 
    to information technologies.
        (2) The combination of that geopolitical uncertainty and 
    accelerating technological change portends a transformation in the 
    conduct of war, particularly in ways that are likely to increase 
    the effectiveness of joint operations.
        (3) The Department of Defense must be organized appropriately 
    in order to fully exploit the opportunities offered by, and to meet 
    the challenges posed by, this anticipated transformation in the 
    conduct of war.
        (4) The basic organization of the Department of Defense was 
    established by the National Security Act of 1947 and the 1949 
    amendments to that Act.
        (5) The Goldwater-Nichols Department of Defense Reorganization 
    Act of 1986 (Public Law 99-433) dramatically improved the 
    capability of the Department of Defense to carry out operations 
    involving joint forces, but did not specifically address issues 
    pertaining to the development of joint operations.
        (6) In the future, the ability to achieve improved operations 
    of joint forces, particularly under rapidly changing technological 
    conditions, will depend on improved force development for joint 
    operations.
    (b) Independent Task Force on Transformation and Department of 
Defense Organization.--The Secretary of Defense shall establish a task 
force of the Defense Science Board to examine the current organization 
of the Department of Defense with regard to the appropriateness of that 
organization for preparing for a transformation in the conduct of war. 
The task force shall be established not later than November 1, 1998.
    (c) Duties of the Task Force.--The task force shall assess, and 
shall make recommendations for the appropriate organization of, the 
Office of the Secretary of Defense, the Joint Chiefs of Staff, the 
individual Armed Forces, and the executive parts of the military 
departments for the purpose of preparing the Department of Defense for 
a transformation in the conduct of war. In making those assessments and 
developing those recommendations, the task force shall review the 
following:
        (1) The general organization of the Department of Defense, 
    including whether responsibility and authority for issues relating 
    to a transformation in the conduct of war are appropriately 
    allocated, especially among the Office of the Secretary of Defense, 
    the Joint Chiefs of Staff, and the individual Armed Forces.
        (2) The joint requirements process and the requirements 
    processes for each of the Armed Forces, including the establishment 
    of measures of effectiveness and methods for resource allocation.
        (3) The process and organizations responsible for doctrinal 
    development, including the appropriate relationship between joint 
    force and service doctrine and doctrinal development organizations.
        (4) The current programs and organizations under the Office of 
    the Secretary of Defense, the Joint Chiefs of Staff, and the Armed 
    Forces devoted to innovation and experimentation related to a 
    transformation in the conduct of war, including the appropriateness 
    of--
            (A) conducting joint field tests;
            (B) establishing a separate unified command as a joint 
        forces command to serve, as its sole function, as the trainer, 
        provider, and developer of forces for joint operations and for 
        conducting joint warfighting experimentation;
            (C) establishing a separate Joint Concept Development 
        Center to monitor exercises and develop measures of 
        effectiveness, analytical concepts, models, and simulations 
        appropriate for understanding the transformation in the conduct 
        of war;
            (D) establishing a Joint Battle Laboratory to conduct joint 
        experimentation and to integrate the similar efforts of the 
        Armed Forces; and
            (E) establishing an Assistant Secretary of Defense 
        responsible for transformation in the conduct of war.
        (5) Joint training establishments and training establishments 
    of the Armed Forces, including those devoted to professional 
    military education, and the appropriateness of establishing 
    national training centers.
        (6) Other issues relating to a transformation in the conduct of 
    war that the Secretary considers appropriate.
    (d) Report.--The task force shall submit to the Secretary of 
Defense a report containing its assessments and recommendations not 
later than February 1, 1999. The Secretary shall submit the report to 
the Committee on National Security of the House of Representatives and 
the Committee on Armed Services of the Senate not later than March 1, 
1999, together with the recommendations and comments of the Secretary 
of Defense.

SEC. 904. AUTHORITY TO EXPAND THE NATIONAL DEFENSE UNIVERSITY.

    Section 2165(b) of title 10, United States Code, is amended by 
adding at the end the following:
        ``(7) Any other educational institution of the Department of 
    Defense that the Secretary considers appropriate and designates as 
    an institution of the university.''.

SEC. 905. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

    (a) Funding for Center.--Section 2165 of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(c) Source of Funds for Center for Hemispheric Defense Studies.--
Funds available for the payment of personnel expenses under the Latin 
American cooperation authority set forth in section 1050 of this title 
are also available for the costs of the operation of the Center for 
Hemispheric Defense Studies.''.
    (b) Conforming Amendment.--Section 1050 of such title is amended by 
inserting ``Secretary of Defense or the'' before ``Secretary of a 
military department''.

SEC. 906. RESTRUCTURING OF ADMINISTRATION OF FISHER HOUSES.

    (a) Administration as Nonappropriated Fund Instrumentality.--(1) 
Chapter 147 of title 10, United States Code, is amended by inserting 
after section 2492 (as added by section 365) the following new section:

``Sec. 2493. Fisher Houses: administration as nonappropriated fund 
            instrumentality

    ``(a) Fisher Houses and Suites Defined.--In this section:
        ``(1) The term `Fisher House' means a housing facility that--
            ``(A) is located in proximity to a health care facility of 
        the Army, the Air Force, or the Navy;
            ``(B) is available for residential use on a temporary basis 
        by patients of that health care facility, members of the 
        families of such patients, and others providing the equivalent 
        of familial support for such patients; and
            ``(C) is constructed and donated by--
                ``(i) the Zachary and Elizabeth M. Fisher Armed 
            Services Foundation; or
                ``(ii) another source, if the Secretary of the military 
            department concerned designates the housing facility as a 
            Fisher House.
        ``(2) The term `Fisher Suite' means one or more rooms that--
            ``(A) meet the requirements of subparagraphs (A) and (B) of 
        paragraph (1);
            ``(B) are constructed, altered, or repaired and donated by 
        a source described in subparagraph (C) of that paragraph; and
            ``(C) are designated by the Secretary of the military 
        department concerned as a Fisher Suite.
    ``(b) Nonappropriated Fund Instrumentality.--The Secretary of each 
military department shall administer all Fisher Houses and Fisher 
Suites associated with health care facilities of that military 
department as a nonappropriated fund instrumentality of the United 
States.
    ``(c) Governance.--The Secretary of each military department shall 
establish a system for the governance of the nonappropriated fund 
instrumentality required by subsection (b) for that military 
department.
    ``(d) Central Fund.--The Secretary of each military department 
shall establish a single fund as the source of funding for the 
operation, maintenance, and improvement of all Fisher Houses and Fisher 
Suites of the nonappropriated fund instrumentality required by 
subsection (b) for that military department.
    ``(e) Acceptance of Contributions; Imposition of Fees.--(1) The 
Secretary of a military department may--
        ``(A) accept money, property, and services donated for the 
    support of a Fisher House or Fisher Suite associated with health 
    care facilities of that military department; and
        ``(B) may impose fees relating to the use of such Fisher Houses 
    and Fisher Suites.
    ``(2) All monetary donations, and the proceeds of the disposal of 
any other donated property, accepted by the Secretary of a military 
department under this subsection shall be credited to the fund 
established under subsection (d) for the Fisher Houses and Fisher 
Suites associated with health care facilities of that military 
department and shall be available to that Secretary to support all such 
Fisher Houses and Fisher Suites.
    ``(f) Annual Report.--Not later than January 15 of each year, the 
Secretary of each military department shall submit to Congress a report 
describing the operation of Fisher Houses and Fisher Suites associated 
with health care facilities of that military department. The report 
shall include, at a minimum, the following:
        ``(1) The amount in the fund established by that Secretary 
    under subsection (d) as of October 1 of the previous year.
        ``(2) The operation of the fund during the preceding fiscal 
    year, including--
            ``(A) all gifts, fees, and interest credited to the fund; 
        and
            ``(B) all disbursements from the fund.
        ``(3) The budget for the operation of the Fisher Houses and 
    Fisher Suites for the fiscal year in which the report is 
    submitted.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2492 (as added 
by section 365) the following new item:
``2493. Fisher Houses: administration as nonappropriated fund 
          instrumentality.''.

    (b) Establishment of Funds.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of each military department 
shall--
        (1) establish the fund required under section 2493(d) of title 
    10, United States Code (as added by subsection (a)); and
        (2) close the Fisher House Trust Fund established for that 
    department under section 2221 of such title and transfer the 
    amounts in the closed fund to the newly established fund.
    (c) Funding Transition.--(1) Of the amount authorized to be 
appropriated pursuant to section 301(2) for operation and maintenance 
for the Navy, the Secretary of the Navy shall transfer to the fund 
established by that Secretary under section 2493(d) of title 10, United 
States Code (as added by subsection (a)), such amount as that Secretary 
considers appropriate for establishing in the fund a corpus sufficient 
for operating Fisher Houses and Fisher Suites associated with health 
care facilities of the Department of the Navy.
    (2) Of the amount authorized to be appropriated pursuant to section 
301(4) for operation and maintenance for the Air Force, the Secretary 
of the Air Force shall transfer to the fund established by that 
Secretary under section 2493(d) of title 10, United States Code (as 
added by subsection (a)), such amount as that Secretary considers 
appropriate for establishing in the fund a corpus sufficient for 
operating Fisher Houses and Fisher Suites associated with health care 
facilities of the Department of the Air Force.
    (d) Reporting Requirements.--The Secretary of each military 
department, upon completing the actions required of the Secretary under 
subsections (b) and (c), shall submit to Congress a report containing--
        (1) the certification of that Secretary that those actions have 
    been completed; and
        (2) a statement of the amount deposited in the fund established 
    by that Secretary under section 2493(d) of title 10, United States 
    Code (as added by subsection (a)).
    (e) Availability of Transferred Amounts.--Amounts transferred under 
subsection (b) or (c) to a fund established under section 2493(d) of 
title 10, United States Code (as added by subsection (a)), shall be 
available without fiscal year limitation for the purposes for which the 
fund is established and shall be administered as nonappropriated funds.
    (f) Conforming Repeals.--(1) Section 2221 of title 10, United 
States Code, and the item relating to that section in the table of 
sections at the beginning of chapter 131 of such title, are repealed.
    (2) Section 1321(a) of title 31, United States Code, is amended by 
striking out paragraphs (92), (93), and (94).
    (3) The amendments made by this subsection shall take effect 90 
days after the date of the enactment of this Act.

SEC. 907. MANAGEMENT REFORM FOR RESEARCH, DEVELOPMENT, TEST, AND 
              EVALUATION ACTIVITIES.

    (a) Analysis and Plan for Reform of Management of RDTE 
Activities.--(1) The Secretary of Defense, acting through the Under 
Secretary of Defense for Acquisition and Technology, shall analyze the 
structures and processes of the Department of Defense for management of 
its laboratories and test and evaluation centers. Taking into 
consideration the results of that analysis, the Secretary shall develop 
a plan for improving the management of those laboratories and centers. 
The plan shall include such reorganizations and reforms as the 
Secretary considers appropriate.
    (2) The analysis under paragraph (1) shall include an analysis of 
each of the following with respect to Department of Defense 
laboratories and test and evaluation centers:
        (A) Opportunities to improve efficiency and reduce duplication 
    of efforts by those laboratories and centers by designating a lead 
    agency or executive agent by area or function or other methods of 
    streamlining management.
        (B) Reform of the management processes of those laboratories 
    and centers that would reduce costs and increase efficiency in the 
    conduct of research, development, test, and evaluation activities.
        (C) Opportunities for those laboratories and centers to enter 
    into partnership arrangements with laboratories in industry, 
    academia, and other Federal agencies that demonstrate leadership, 
    initiative, and innovation in research, development, test, and 
    evaluation activities.
        (D) The extent to which there is disseminated within those 
    laboratories and centers information regarding initiatives that 
    have successfully improved efficiency through reform of management 
    processes and other means.
        (E) Any cost savings that can be derived directly from 
    reorganization of management structures of those laboratories and 
    centers.
        (F) Options for reinvesting any such cost savings in those 
    laboratories and centers.
    (3) The Secretary shall submit the plan required under paragraph 
(1) to the congressional defense committees not later than 180 days 
after the date of the enactment of this Act.
    (b) Cost-Based Management Information System.--(1) The Secretary of 
Defense shall develop a plan, including a schedule, for establishing a 
cost-based management information system for Department of Defense 
laboratories and test and evaluation centers. The system shall provide 
for accurately identifying and comparing the costs of operating each 
laboratory and each center.
    (2) In preparing the plan, the Secretary shall assess the 
feasibility and desirability of establishing a common methodology for 
assessing costs. The Secretary shall consider the use of a revolving 
fund as one potential methodology.
    (3) The Secretary shall submit the plan required under paragraph 
(1) to the congressional defense committees not later than 90 days 
after the date of the enactment of this Act.

         Subtitle B--Department of Defense Financial Management

SEC. 911. IMPROVED ACCOUNTING FOR DEFENSE CONTRACT SERVICES.

    (a) In General.--(1) Chapter 131 of title 10, United States Code, 
is amended by inserting after section 2211 the following new section:

``Sec. 2212. Obligations for contract services: reporting in budget 
            object classes

    ``(a) Limitation on Reporting in Miscellaneous Services Object 
Class.--The Secretary of Defense shall ensure that, in reporting to the 
Office of Management and Budget (pursuant to OMB Circular A-11 
(relating to preparation and submission of budget estimates)) 
obligations of the Department of Defense for any period of time for 
contract services, no more than 15 percent of the total amount of 
obligations so reported is reported in the miscellaneous services 
object class.
    ``(b) Definition of Reporting Categories for Advisory and 
Assistance Services.--In carrying out section 1105(g) of title 31 for 
the Department of Defense (and in determining what services are to be 
reported to the Office of Management and Budget in the advisory and 
assistance services object class), the Secretary of Defense shall apply 
to the terms used for the definition of `advisory and assistance 
services' in paragraph (2)(A) of that section the following meanings 
(subject to the authorized exemptions):
        ``(1) Management and professional support services.--The term 
    `management and professional support services' (used in clause (i) 
    of section 1105(g)(2)(A) of title 31) means services that provide 
    engineering or technical support, assistance, advice, or training 
    for the efficient and effective management and operation of 
    organizations, activities, or systems. Those services--
            ``(A) are closely related to the basic responsibilities and 
        mission of the using organization; and
            ``(B) include efforts that support or contribute to 
        improved organization or program management, logistics 
        management, project monitoring and reporting, data collection, 
        budgeting, accounting, auditing, and administrative or 
        technical support for conferences and training programs.
        ``(2) Studies, analyses, and evaluations.--The term `studies, 
    analyses, and evaluations' (used in clause (ii) of section 
    1105(g)(2)(A) of title 31) means services that provide organized, 
    analytic assessments to understand or evaluate complex issues to 
    improve policy development, decisionmaking, management, or 
    administration and that result in documents containing data or 
    leading to conclusions or recommendations. Those services may 
    include databases, models, methodologies, and related software 
    created in support of a study, analysis, or evaluation.
        ``(3) Engineering and technical services.--The term 
    `engineering and technical services' (used in clause (iii) of 
    section 1105(g)(2)(A) of title 31) means services that take the 
    form of advice, assistance, training, or hands-on training 
    necessary to maintain and operate fielded weapon systems, 
    equipment, and components (including software when applicable) at 
    design or required levels of effectiveness.
    ``(c) Proper Classification of Advisory and Assistance Services.--
Before the submission to the Office of Management and Budget of the 
proposed Department of Defense budget for inclusion in the President's 
budget for a fiscal year pursuant to section 1105 of title 31, the 
Secretary of Defense, acting through the Under Secretary of Defense 
(Comptroller), shall conduct a review of Department of Defense services 
expected to be performed as contract services during the fiscal year 
for which that budget is to be submitted in order to ensure that those 
services that are advisory and assistance services (as defined in 
accordance with subsection (b)) are in fact properly classified, in 
accordance with that subsection, in the advisory and assistance 
services object class.
    ``(d) Report to Congress.--The Secretary shall submit to Congress 
each year, not later than 30 days after the date on which the budget 
for the next fiscal year is submitted pursuant to section 1105 of title 
31, a report containing the information derived from the review under 
subsection (c).
    ``(e) Assessment by Comptroller General.--(1) The Comptroller 
General shall conduct a review of the report of the Secretary of 
Defense under subsection (d) each year and shall--
        ``(A) assess the methodology used by the Secretary in obtaining 
    the information submitted to Congress in that report; and
        ``(B) assess the information submitted to Congress in that 
    report.
    ``(2) Not later than 120 days after the date on which the Secretary 
submits to Congress the report required under subsection (d) for any 
year, the Comptroller General shall submit to Congress the Comptroller 
General's report containing the results of the review for that year 
under paragraph (1).
    ``(f) Definitions.--In this section:
        ``(1) The term `contract services' means all services that are 
    reported to the Office of Management and Budget pursuant to OMB 
    Circular A-11 (relating to preparation and submission of budget 
    estimates) in budget object classes that are designated in the 
    Object Class 25 series.
        ``(2) The term `advisory and assistance services object class' 
    means those contract services constituting the budget object class 
    that is denominated `Advisory and Assistance Service' and 
    designated (as of the date of the enactment of this section) as 
    Object Class 25.1 (or any similar object class established after 
    the date of the enactment of this section for the reporting of 
    obligations for advisory and assistance contract services).
        ``(3) The term `miscellaneous services object class' means 
    those contract services constituting the budget object class that 
    is denominated `Other Services (services not otherwise specified in 
    the 25 series)' and designated (as of the date of the enactment of 
    this section) as Object Class 25.2 (or any similar object class 
    established after the date of the enactment of this section for the 
    reporting of obligations for miscellaneous or unspecified contract 
    services).
        ``(4) The term `authorized exemptions' means those exemptions 
    authorized (as of the date of the enactment of this section) under 
    Department of Defense Directive 4205.2, captioned `Acquiring and 
    Managing Contracted Advisory and Assistance Services (CAAS)' and 
    issued by the Under Secretary of Defense for Acquisition and 
    Technology on February 10, 1992, such exemptions being set forth in 
    Enclosure 3 to that directive (captioned `CAAS Exemptions').''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2211 the 
following new item:
``2212. Obligations for contract services: reporting in budget object 
          classes.''.

    (b) Transition.--For the budget for fiscal year 2000, and the 
reporting of information to the Office of Management and Budget in 
connection with the preparation of that budget, section 2212 of title 
10, United States Code, as added by subsection (a), shall be applied by 
substituting ``30 percent'' in subsection (a) for ``15 percent''.
    (c) Initial Classification of Advisory and Assistance Services.--
Not later than February 1, 1999, the Secretary of Defense, acting 
through the Under Secretary of Defense (Comptroller), shall conduct a 
review of Department of Defense services performed or expected to be 
performed as contract services during fiscal year 1999 in order to 
ensure that those services that are advisory and assistance services 
(as defined in accordance with subsection (b) of section 2212 of title 
10, United States Code, as added by subsection (a)) are in fact 
properly classified, in accordance with that subsection, in the 
advisory and assistance services object class (as defined in subsection 
(f)(2) of that section).
    (d) Fiscal Year 1999 Reduction.--The total amount that may be 
obligated by the Secretary of Defense for contracted advisory and 
assistance services from amounts appropriated for fiscal year 1999 is 
the amount programmed for those services resulting from the review 
referred to in subsection (c) reduced by $240,000,000.

SEC. 912. REPORT ON DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT 
              IMPROVEMENT PLAN.

    Not later than 60 days after the date on which the Secretary of 
Defense submits the first biennial financial management improvement 
plan required by section 2222 of title 10, United States Code, the 
Comptroller General shall submit to Congress an analysis of the plan. 
The analysis shall include a discussion of the content of the plan and 
the extent to which the plan--
        (1) complies with the requirements of such section 2222; and
        (2) is a workable plan for addressing the financial management 
    problems of the Department of Defense.

SEC. 913. STUDY OF FEASIBILITY OF PERFORMANCE OF DEPARTMENT OF DEFENSE 
              FINANCE AND ACCOUNTING FUNCTIONS BY PRIVATE SECTOR 
              SOURCES OR OTHER FEDERAL SOURCES.

    (a) Study Required.--(1) The Secretary of Defense shall carry out a 
study of the feasibility and advisability of selecting on a competitive 
basis the source or sources for performing the finance and accounting 
functions of the Department of Defense from among the Defense Finance 
and Accounting Service of the Department of Defense and non-DFAS 
sources.
    (2) For the purposes of this section, the term ``non-DFAS sources'' 
means--
        (A) the military departments;
        (B) Federal agencies outside the Department of Defense; and
        (C) private sector sources.
    (b) Report.--Not later than October 1, 1999, the Secretary shall 
submit to Congress a report in writing on the results of the study. The 
report shall include the following:
        (1) A discussion of how the finance and accounting functions of 
    the Department of Defense are performed, including the necessary 
    operations, the operations actually performed, the personnel 
    required for the operations, and the core competencies that are 
    necessary for the performance of those functions.
        (2) A comparison of the performance of the finance and 
    accounting functions by the Defense Finance and Accounting Service 
    with the performance of finance and accounting functions by non-
    DFAS sources that exemplify the best finance and accounting 
    practices and results, together with a comparison of the costs of 
    the performance of those functions by the Defense Finance and 
    Accounting Service and the estimated costs of the performance of 
    those functions by non-DFAS sources.
        (3) The finance and accounting functions, if any, that are 
    appropriate for performance by non-DFAS sources, together with a 
    concept of operations that--
            (A) specifies the mission;
            (B) identifies the finance and accounting operations to be 
        performed;
            (C) describes the work force that is necessary to perform 
        those operations;
            (D) discusses where the operations are to be performed;
            (E) describes how the operations are to be performed; and
            (F) discusses the relationship between how the operations 
        are to be performed and the mission.
        (4) An analysis of how Department of Defense programs or 
    processes would be affected by the performance of the finance and 
    accounting functions of the Department of Defense by one or more 
    non-DFAS source.
        (5) The status of the efforts within the Department of Defense 
    to consolidate and eliminate redundant finance and accounting 
    systems and to better integrate the automated and manual systems of 
    the department that provide input to financial management or 
    accounting systems of the department.
        (6) A description of a feasible and effective process for 
    selecting, on a competitive basis, sources to perform the finance 
    and accounting functions of the Department of Defense from among 
    the Defense Finance and Accounting Service and non-DFAS sources, 
    including a discussion of the selection criteria the Secretary 
    considers appropriate.
        (7) An analysis of the costs and benefits of the various 
    policies and actions recommended.
        (8) A discussion of any findings, analyses, and recommendations 
    on the performance of the finance and accounting functions of the 
    Department of Defense that have been made by the Task Force on 
    Defense Reform appointed by the Secretary of Defense on May 14, 
    1997.
        (9) Any additional information and recommendations the 
    Secretary considers appropriate.
    (c) Market Research.--In carrying out the study, the Secretary 
shall conduct market research to determine whether or not an efficient 
and competitive domestic market for finance and accounting services 
exists. In conducting that research, the Secretary shall consider 
whether the domestic market for finance and accounting services could 
be reasonably expected to generate responsive private sector 
competitors for the provision of the finance and accounting services, 
or a portion of such services, of the Department of Defense and whether 
there are any substantial barriers to entry or expansion in that 
market. In conducting such research, the Secretary shall consider not 
only the current state of the domestic market for finance and 
accounting services, but also the potential effects that the entry of 
the Department of Defense as a large, long-term consumer of such 
services might have on that market.

SEC. 914. LIMITATION ON REORGANIZATION AND CONSOLIDATION OF OPERATING 
              LOCATIONS OF THE DEFENSE FINANCE AND ACCOUNTING SERVICE.

    (a) Limitation.--The Secretary of Defense may not close any 
operating location of the Defense Finance and Accounting Service before 
the date that is 90 days after the date on which the Secretary submits 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives the plan required by 
subsection (b).
    (b) Plan Required.--The Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a strategic plan for improving 
the financial management operations at each of the operating locations 
of the Defense Finance and Accounting Service.
    (c) Content of Plan.--The plan shall include the following:
        (1) The workloads that it is necessary to perform at those 
    operating locations each fiscal year.
        (2) The capacity and number of operating locations that are 
    necessary for performing those workloads.
        (3) A discussion of the costs and benefits that could result 
    from reorganizing the operating locations of the Defense Finance 
    and Accounting Service on the basis of function performed, together 
    with the Secretary's assessment of the feasibility of carrying out 
    such a reorganization.
    (d) Submittal of Plan.--The plan shall be submitted to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives not later than January 15, 
1999.

SEC. 915. ANNUAL REPORT ON RESOURCES ALLOCATED TO SUPPORT AND MISSION 
              ACTIVITIES.

    (a) Requirement.--Section 113 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(l) The Secretary shall include in the annual report to Congress 
under subsection (c) the following:
        ``(1) A comparison of the amounts provided in the defense 
    budget for support and for mission activities for each of the 
    preceding five fiscal years.
        ``(2) A comparison of the number of military and civilian 
    personnel, shown by major occupational category, assigned to 
    support positions and to mission positions for each of the 
    preceding five fiscal years.
        ``(3) An accounting, shown by service and by major occupational 
    category, of the number of military and civilian personnel assigned 
    to support positions during each of the preceding five fiscal 
    years.
        ``(4) A listing of the number of military and civilian 
    personnel assigned to management headquarters and headquarters 
    support activities as a percentage of military end-strength for 
    each of the preceding five fiscal years.''.
    (b) Report on Terminology.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report setting 
forth the definitions of the terms ``support'' and ``mission'' that the 
Secretary proposes to use for purposes of the report requirement under 
section 113(l) of title 10, United States Code, as added by subsection 
(a).

             Subtitle C--Joint Warfighting Experimentation

SEC. 921. FINDINGS CONCERNING JOINT WARFIGHTING EXPERIMENTATION.

    Congress makes the following findings:
        (1) The assessments of the Quadrennial Defense Review and the 
    National Defense Panel provide a compelling argument--
            (A) that the security environment in the early 21st century 
        will include fundamentally different military challenges than 
        the security environment in the late 20th century; and
            (B) reinforce the premise of the Goldwater-Nichols 
        Department of Defense Reorganization Act of 1986 that future 
        warfare will require more effective joint operational concepts.
        (2) Joint experimentation is necessary for--
            (A) integrating advances in technology with changes in 
        organizational structure and joint operational concepts; and
            (B) determining the interdependent aspects of joint warfare 
        that are key for transforming the conduct of military 
        operations to meet future challenges successfully.
        (3) It is essential that an energetic and innovative 
    organization be established in the Department of Defense with the 
    authority (subject to the authority and guidance of the Secretary 
    of Defense and Chairman of the Joint Chiefs of Staff) to design and 
    implement a process of joint experimentation to investigate and 
    test technologies and alternative forces and concepts in field 
    environments under realistic conditions against the full range of 
    future challenges to assist in developing and validating new joint 
    warfighting concepts and transforming the Armed Forces to meet the 
    threats to national security anticipated for the early 21st 
    century.

SEC. 922. SENSE OF CONGRESS CONCERNING JOINT WARFIGHTING 
              EXPERIMENTATION.

    (a) Designation of Commander To Have Joint Warfighting 
Experimentation Mission.--It is the sense of Congress that the 
initiative of the Secretary of Defense to designate the commander of a 
combatant command to have the mission of joint warfighting 
experimentation is a key step in exploiting the potential of advanced 
technologies, new organizational structures, and new joint operational 
concepts to transform the conduct of military operations by the Armed 
Forces.
    (b) Resources and Authority of Commander.--It is, further, the 
sense of Congress that the commander of the combatant command referred 
to in subsection (a) should be provided with appropriate and sufficient 
resources for joint warfighting experimentation and with the 
appropriate authority to execute the commander's assigned 
responsibilities and that such authority should include the following:
        (1) Planning, preparing, and conducting the program of joint 
    warfighting experimentation, which program should include analyses, 
    simulations, wargames, experiments, advanced concept technology 
    demonstrations, joint exercises conducted in virtual and field 
    environments, and, as a particularly critical aspect, assessments 
    of ``red team'' vulnerability.
        (2) Developing scenarios and measures of effectiveness to meet 
    the operational challenges expected to be encountered in the early 
    21st century and assessing the effectiveness of current and new 
    organizational structures, operational concepts, and technologies 
    in addressing those challenges.
        (3) Integrating and testing in joint experimentation the 
    systems and concepts that result from warfighting experimentation 
    conducted by the Armed Forces and the Defense Agencies.
        (4) Coordinating with each of the Armed Forces and Defense 
    Agencies regarding the development and acquisition of equipment 
    (including surrogate or real technologies, platforms, and systems), 
    supplies, and services necessary for joint experimentation.
        (5) Providing the Secretary of Defense and the Chairman of the 
    Joint Chiefs of Staff with recommendations, based on the conduct of 
    joint warfighting experimentation, for--
            (A) improving interoperability;
            (B) reducing unnecessary redundancy;
            (C) synchronizing technology fielding;
            (D) developing joint operational concepts;
            (E) prioritizing the most promising joint capabilities for 
        future experimentation; and
            (F) prioritizing joint requirements and acquisition 
        programs.
        (6) Making recommendations to the Chairman of the Joint Chiefs 
    of Staff on mission needs statements and operational requirements 
    documents.
    (c) Congressional Review.--It is, further, the sense of Congress 
that Congress--
        (1) should review the adequacy of the process of transformation 
    to meet future challenges to the national security; and
        (2) if progress is determined inadequate, should consider 
    legislation to--
            (A) establish an appropriate organization to conduct the 
        mission described in subsection (a); and
            (B) provide to the commander given the responsibility for 
        that mission appropriate and sufficient resources for joint 
        warfighting experimentation and the appropriate authority to 
        execute that commander's assigned responsibilities for that 
        mission, including the authorities specified in subsection (b).

SEC. 923. REPORTS ON JOINT WARFIGHTING EXPERIMENTATION.

    (a) Initial Report.--(1) The commander of the combatant command 
assigned by the Secretary of Defense to have the mission for joint 
warfighting experimentation shall submit to the Secretary an initial 
report on the implementation of joint experimentation. Not later than 
April 1, 1999, the Secretary shall submit that report, together with 
any comments that the Secretary considers appropriate and any comments 
that the Chairman of the Joint Chiefs of Staff considers appropriate, 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives.
    (2) The report of the commander under paragraph (1) shall include 
the commander's assessment of the following:
        (A) The authority and responsibilities of the commander as 
    described in section 922(b).
        (B) The organization of the commander's combatant command, and 
    of its staff, for carrying out the joint warfighting 
    experimentation mission.
        (C) The process established for tasking forces to participate 
    in experimentation and the commander's specific authority over 
    those forces, including forces designated as joint experimentation 
    forces.
        (D) The resources provided for initial implementation of joint 
    warfighting experimentation, the process for providing those 
    resources to the commander, the categories of the funding, and the 
    authority of the commander for budget execution.
        (E) The process established for the development and acquisition 
    of the materiel, supplies, services, and equipment necessary for 
    the conduct of joint warfighting experimentation.
        (F) The process established for designing, preparing, and 
    conducting joint experiments.
        (G) The role assigned the commander for--
            (i) integrating and testing in joint warfighting 
        experimentation the systems that emerge from warfighting 
        experimentation by the Armed Forces or the Defense Agencies;
            (ii) assessing the effectiveness of organizational 
        structures, operational concepts, and technologies; and
            (iii) assisting the Secretary of Defense and Chairman of 
        the Joint Chiefs of Staff to prioritize requirements or 
        acquisition programs.
    (b) Annual Report.--(1) Chapter 23 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 485. Joint warfighting experimentation

    ``(a) Annual Report.--The commander of the combatant command 
assigned by the Secretary of Defense to have the mission for joint 
warfighting experimentation shall submit to the Secretary an annual 
report on the conduct of joint experimentation activities for the 
fiscal year ending in the year of the report. Not later than December 1 
of each year, the Secretary shall submit that report, together with any 
comments that the Secretary considers appropriate and any comments that 
the Chairman of the Joint Chiefs of Staff considers appropriate, to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives.
    ``(b) Matters To Be Included.--Each report under this section shall 
include, for the fiscal year covered by the report, the following:
        ``(1) Any changes in the assessments of the matters described 
    in section 923(a)(2) of the Strom Thurmond National Defense 
    Authorization Act for Fiscal Year 1999 since the preparation of the 
    assessments of those matters set forth in the latest report 
    submitted under this section.
        ``(2) A description of the conduct of joint experimentation 
    activities, including the number of activities, the forces 
    involved, the national security challenges addressed, the 
    operational concepts assessed, and the scenarios and measures of 
    effectiveness used.
        ``(3) An assessment of the results of joint warfighting 
    experimentation within the Department of Defense.
        ``(4) With respect to joint warfighting experimentation, any 
    recommendations that the commander considers appropriate 
    regarding--
            ``(A) the development or acquisition of advanced 
        technologies;
            ``(B) changes in organizational structure, operational 
        concepts, or joint doctrine;
            ``(C) the conduct of experiments;
            ``(D) the adequacy of resources; or
            ``(E) changes in authority of the commander to develop or 
        acquire materiel, supplies, services, or equipment directly for 
        the conduct of joint warfighting experimentation.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``485. Joint warfighting experimentation.''.

    (c) First Annual Report.--The first report under section 485 of 
title 10, United States Code, as added by subsection (b), shall be made 
with respect to fiscal year 1999. In the case of the report under that 
section for fiscal year 1999, the reference in subsection (b)(1) of 
that section to the most recent report under that section shall be 
treated as referring to the report under subsection (a) of this 
section.

                       Subtitle D--Other Matters

SEC. 931. FURTHER REDUCTIONS IN DEFENSE ACQUISITION AND SUPPORT 
              WORKFORCE.

    (a) Reduction of Defense Acquisition and Support Workforce.--The 
Secretary of Defense shall accomplish reductions in defense acquisition 
and support personnel positions during fiscal year 1999 so that the 
total number of such personnel as of October 1, 1999, is less than the 
total number of such personnel as of October 1, 1998, by at least the 
applicable number determined under subsection (b).
    (b) Required Reduction.--(1) The applicable number for purposes of 
subsection (a) is 25,000. However, the Secretary of Defense may specify 
a lower number, which may not be less than 12,500, as the applicable 
number for purposes of subsection (a) if the Secretary determines, and 
certifies to Congress not later than May 1, 1999, that an applicable 
number greater than the number specified by the Secretary would be 
inconsistent with the cost-effective management of the defense 
acquisition system to obtain best value equipment and with ensuring 
military readiness.
    (2) The Secretary shall include with such a certification a report 
setting forth a detailed explanation of each of the matters certified. 
The report shall include--
        (A) a detailed explanation of all matters incorporated in the 
    Secretary's determination;
        (B) a definition of the components of the defense acquisition 
    and support positions; and
        (C) the allocation of the reductions under this section among 
    the occupational elements of those positions.
    (3) The authority of the Secretary under paragraph (1) may only be 
delegated to the Deputy Secretary of Defense.
    (c) Limitation on Reduction of Core Acquisition Workforce.--The 
Secretary shall implement this section so that the core defense 
acquisition workforce identified by the Secretary in the report 
submitted pursuant to section 912(b) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1860) is reduced proportionally no more than the other occupational 
elements included as defense acquisition and support positions in that 
report.
    (d) Defense Acquisition and Support Personnel Defined.--For 
purposes of this section, the term ``defense acquisition and support 
personnel'' means military and civilian personnel (other than civilian 
personnel who are employed at a maintenance depot) who are assigned to, 
or employed in, acquisition organizations of the Department of Defense 
(as specified in Department of Defense Instruction numbered 5000.58 
dated January 14, 1992), and any other organizations which the 
Secretary may determine to have a predominantly acquisition mission.

SEC. 932. LIMITATION ON OPERATION AND SUPPORT FUNDS FOR THE OFFICE OF 
              THE SECRETARY OF DEFENSE.

    Of the amount available for fiscal year 1999 for operation and 
support activities of the Office of the Secretary of Defense, not more 
than 90 percent may be obligated until each of the following reports 
has been submitted:
        (1) The report required to be submitted to the congressional 
    defense committees by section 904(b) of the National Defense 
    Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
    Stat. 2619).
        (2) The reports required to be submitted to Congress by 
    sections 911(b) and 911(c) of the National Defense Authorization 
    Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1858, 1859).

SEC. 933. CLARIFICATION AND SIMPLIFICATION OF RESPONSIBILITIES OF 
              INSPECTORS GENERAL REGARDING WHISTLEBLOWER PROTECTIONS.

    (a) Roles of Inspectors General of the Armed Forces.--(1) 
Subsection (c) of section 1034 of title 10, United States Code, is 
amended--
        (A) by striking out paragraph (1) and inserting in lieu thereof 
    the following:
    ``(1) If a member of the armed forces submits to an Inspector 
General an allegation that a personnel action prohibited by subsection 
(b) has been taken (or threatened) against the member with respect to a 
communication described in paragraph (2), the Inspector General shall 
take the action required under paragraph (3).''; and
        (B) by striking out paragraph (3) and inserting in lieu thereof 
    the following:
    ``(3)(A) An Inspector General receiving an allegation as described 
in paragraph (1) shall expeditiously determine whether there is 
sufficient evidence to warrant an investigation of the allegation.
    ``(B) If the Inspector General receiving such an allegation is an 
Inspector General within a military department, that Inspector General 
shall promptly notify the Inspector General of the Department of 
Defense of the allegation. Such notification shall be made in 
accordance with regulations prescribed under subsection (h).
    ``(C) If an allegation under paragraph (1) is submitted to an 
Inspector General within a military department and if the determination 
of that Inspector General under subparagraph (A) is that there is not 
sufficient evidence to warrant an investigation of the allegation, that 
Inspector General shall forward the matter to the Inspector General of 
the Department of Defense for review.
    ``(D) Upon determining that an investigation of an allegation under 
paragraph (1) is warranted, the Inspector General making the 
determination shall expeditiously investigate the allegation. In the 
case of a determination made by the Inspector General of the Department 
of Defense, that Inspector General may delegate responsibility for the 
investigation to an appropriate Inspector General within a military 
department.
    ``(E) In the case of an investigation under subparagraph (D) within 
the Department of Defense, the results of the investigation shall be 
determined by, or approved by, the Inspector General of the Department 
of Defense (regardless of whether the investigation itself is conducted 
by the Inspector General of the Department of Defense or by an 
Inspector General within a military department).
    ``(4) Neither an initial determination under paragraph (3)(A) nor 
an investigation under paragraph (3)(D) is required in the case of an 
allegation made more than 60 days after the date on which the member 
becomes aware of the personnel action that is the subject of the 
allegation.
    ``(5) The Inspector General of the Department of Defense, or the 
Inspector General of the Department of Transportation (in the case of a 
member of the Coast Guard when the Coast Guard is not operating as a 
service in the Navy), shall ensure that the Inspector General 
conducting the investigation of an allegation under this subsection is 
outside the immediate chain of command of both the member submitting 
the allegation and the individual or individuals alleged to have taken 
the retaliatory action.''.
    (2) Subsection (d) of such section is amended--
        (A) by inserting ``receiving the allegation'' after ``the 
    Inspector General'' the first place it appears; and
        (B) by adding at the end the following: ``In the case of an 
    allegation received by the Inspector General of the Department of 
    Defense, the Inspector General may delegate that responsibility to 
    the Inspector General of the armed force concerned.''.
    (b) Mismanagement Covered by Protected Communications.--Subsection 
(c)(2)(B) of such section is amended by striking out ``Mismanagement'' 
and inserting in lieu thereof ``Gross mismanagement''.
    (c) Simplified Reporting and Notice Requirements.--(1) Paragraph 
(1) of subsection (e) of such section is amended--
        (A) by striking out ``Not later than 30 days after completion 
    of an investigation under subsection (c) or (d),'' and inserting in 
    lieu thereof ``After completion of an investigation under 
    subsection (c) or (d) or, in the case of an investigation under 
    subsection (c) by an Inspector General within a military 
    department, after approval of the report of that investigation 
    under subsection (c)(3)(E),''
        (B) by striking out ``the Inspector General shall submit a 
    report on'' and inserting in lieu thereof ``the Inspector General 
    conducting the investigation shall submit a report on'';
        (C) by inserting ``shall transmit a copy of the report on the 
    results of the investigation to'' before ``the member of the armed 
    forces''; and
        (D) by adding at the end the following new sentence: ``The 
    report shall be transmitted to the Secretary, and the copy of the 
    report shall be transmitted to the member, not later than 30 days 
    after the completion of the investigation or, in the case of an 
    investigation under subsection (c) by an Inspector General within a 
    military department, after approval of the report of that 
    investigation under subsection (c)(3)(E).''.
    (2) Paragraph (2) of such subsection is amended--
        (A) by striking out ``submitted'' after ``In the copy of the 
    report'' and inserting in lieu thereof ``transmitted''; and
        (B) by adding at the end the following new sentence: ``However, 
    the copy need not include summaries of interviews conducted, nor 
    any document acquired, during the course of the investigation. Such 
    items shall be transmitted to the member, if the member requests 
    the items, with the copy of the report or after the transmittal to 
    the member of the copy of the report, regardless of whether the 
    request for those items is made before or after the copy of the 
    report is transmitted to the member.''.
    (3) Paragraph (3) of such subsection is amended by striking out 
``90 days'' and inserting in lieu thereof ``180 days''.
    (d) Repeal of Post-Investigation Interview Requirement.--Subsection 
(h) of such section is repealed.
    (e) Definition of Inspector General Defined.--Subsection (j)(2) of 
such section is amended--
        (1) by redesignating subparagraph (B) as subparagraph (G) and, 
    in that subparagraph, by striking out ``an officer'' and inserting 
    in lieu thereof ``An officer'';
        (2) by striking out subparagraph (A) and inserting in lieu 
    thereof the following:
            ``(A) The Inspector General of the Department of Defense.
            ``(B) The Inspector General of the Department of 
        Transportation, in the case of a member of the Coast Guard when 
        the Coast Guard is not operating as a service in the Navy.
            ``(C) The Inspector General of the Army, in the case of a 
        member of the Army.
            ``(D) The Naval Inspector General, in the case of a member 
        of the Navy.
            ``(E) The Inspector General of the Air Force, in the case 
        of a member of the Air Force.
            ``(F) The Deputy Naval Inspector General for Marine Corps 
        Matters, in the case of a member of the Marine Corps.''; and
        (3) in the matter preceding subparagraph (A), by striking out 
    ``means--'' and inserting in lieu thereof ``means the following:''.
    (f) Technical and Conforming Amendments.--(1) Subsections (i) and 
(j) of such section are redesignated as subsections (h) and (i), 
respectively.
    (2) Subsection (b)(1)(B)(ii) of such section is amended by striking 
out ``subsection (j))'' and inserting in lieu thereof ``subsection (i)) 
or any other Inspector General appointed under the Inspector General 
Act of 1978''.

SEC. 934. REPEAL OF REQUIREMENT RELATING TO ASSIGNMENT OF TACTICAL 
              AIRLIFT MISSION TO RESERVE COMPONENTS.

    Section 1438 of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 104 Stat. 1689), as amended by section 
1023 of the National Defense Authorization Act for Fiscal Years 1992 
and 1993 (Public Law 102-190; 105 Stat. 1460), is repealed.

SEC. 935. CONSULTATION WITH MARINE CORPS ON MAJOR DECISIONS DIRECTLY 
              CONCERNING MARINE CORPS AVIATION.

    (a) In General.--Chapter 503 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 5026. Consultation with Commandant of the Marine Corps on major 
            decisions directly concerning Marine Corps aviation

    ``The Secretary of the Navy shall ensure that the views of the 
Commandant of the Marine Corps are given appropriate consideration 
before a major decision is made by an element of the Department of the 
Navy outside the Marine Corps on a matter that directly concerns Marine 
Corps aviation.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``5026. Consultation with Commandant of the Marine Corps on major 
          decisions directly concerning Marine Corps aviation.''.

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec.1001.Transfer authority.
Sec.1002.Incorporation of classified annex.
Sec.1003.Authorization of prior emergency supplemental appropriations 
          for fiscal year 1998.
Sec.1004.Authorization of appropriations for Bosnia peacekeeping 
          operations for fiscal year 1999.
Sec.1005.Partnership for Peace Information Management System.
Sec.1006.United States contribution to NATO common-funded budgets in 
          fiscal year 1999.
Sec.1007.Liquidity of working-capital funds.
Sec.1008.Termination of authority to manage working-capital funds and 
          certain activities through the Defense Business Operations 
          Fund.
Sec.1009.Clarification of authority to retain recovered costs of 
          disposals in working-capital funds.
Sec.1010.Crediting of amounts recovered from third parties for loss or 
          damage to personal property shipped or stored at Government 
          expense.

                 Subtitle B--Naval Vessels and Shipyards

Sec.1011.Revision to requirement for continued listing of two Iowa-class 
          battleships on the Naval Vessel Register.
Sec.1012.Transfer of U.S.S. NEW JERSEY.
Sec.1013.Homeporting of the U.S.S. IOWA in San Francisco, California.
Sec.1014.Sense of Congress concerning the naming of an LPD-17 vessel.
Sec.1015.Reports on naval surface fire-support capabilities.
Sec.1016.Long-term charter of three vessels in support of submarine 
          rescue, escort, and towing.
Sec.1017.Transfer of obsolete Army tugboat.

 Subtitle C--Counter-Drug Activities and Other Assistance for Civilian 
                             Law Enforcement

Sec.1021.Department of Defense support to other agencies for counter-
          drug activities.
Sec.1022.Department of Defense support of National Guard drug 
          interdiction and counter-drug activities.
Sec.1023.Department of Defense counter-drug activities in transit zone.

        Subtitle D--Miscellaneous Report Requirements and Repeals

Sec.1031.Repeal of unnecessary and obsolete reporting provisions.
Sec.1032.Report regarding use of tagging system to identify hydrocarbon 
          fuels used by Department of Defense.

                Subtitle E--Armed Forces Retirement Home

Sec.1041.Appointment of Director and Deputy Director of the Naval Home.
Sec.1042.Revision of inspection requirements relating to Armed Forces 
          Retirement Home.
Sec.1043.Clarification of land conveyance authority, Armed Forces 
          Retirement Home.

            Subtitle F--Matters Relating to Defense Property

Sec.1051.Plan for improved demilitarization of excess and surplus 
          defense property.
Sec.1052.Transfer of F-4 Phantom II aircraft to foundation.

             Subtitle G--Other Department of Defense Matters

Sec.1061.Pilot program on alternative notice of receipt of legal process 
          for garnishment of Federal pay for child support and alimony.
Sec.1062.Training of special operations forces with friendly foreign 
          forces.
Sec.1063.Research grants competitively awarded to service academies.
Sec.1064.Department of Defense use of frequency spectrum.
Sec.1065.Department of Defense aviation accident investigations.
Sec.1066.Investigation of actions relating to 174th Fighter Wing of New 
          York Air National Guard.
Sec.1067.Program to commemorate 50th anniversary of the Korean War.
Sec.1068.Designation of America's National Maritime Museum.
Sec.1069.Technical and clerical amendments.

                        Subtitle H--Other Matters

Sec.1071.Act constituting presidential approval of vessel war risk 
          insurance requested by the Secretary of Defense.
Sec.1072.Extension and reauthorization of Defense Production Act of 
          1950.
Sec.1073.Requirement that burial flags furnished by the Secretary of 
          Veterans Affairs be wholly produced in the United States.
Sec.1074.Sense of Congress concerning tax treatment of principal 
          residence of members of Armed Forces while away from home on 
          active duty.
Sec.1075.Clarification of State authority to tax compensation paid to 
          certain employees.

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination 
by the Secretary of Defense that such action is necessary in the 
national interest, the Secretary may transfer amounts of authorizations 
made available to the Department of Defense in this division for fiscal 
year 1999 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall 
be merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$2,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
        (1) may only be used to provide authority for items that have a 
    higher priority than the items from which authority is transferred; 
    and
        (2) may not be used to provide authority for an item that has 
    been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex prepared by 
the committee of conference to accompany the conference report on the 
bill H.R. 3616 of the One Hundred Fifth Congress and transmitted to the 
President is hereby incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to amounts 
authorized to be appropriated by other provisions of this Act.
    (c) Limitation on Use of Funds.--Funds appropriated pursuant to an 
authorization contained in this Act that are made available for a 
program, project, or activity referred to in the Classified Annex may 
only be expended for such program, project, or activity in accordance 
with such terms, conditions, limitations, restrictions, and 
requirements as are set out for that program, project, or activity in 
the Classified Annex.
    (d) Distribution of Classified Annex.--The President shall provide 
for appropriate distribution of the Classified Annex, or of appropriate 
portions of the annex, within the executive branch of the Government.

SEC. 1003. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
              FOR FISCAL YEAR 1998.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 1998 in the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) are hereby adjusted, with respect 
to any such authorized amount, by the amount by which appropriations 
pursuant to such authorization were increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, in the 1998 
Supplemental Appropriations and Rescissions Act (Public Law 105-174).

SEC. 1004. AUTHORIZATION OF APPROPRIATIONS FOR BOSNIA PEACEKEEPING 
              OPERATIONS FOR FISCAL YEAR 1999.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for the Department of Defense for fiscal year 1999 
for incremental costs of the Armed Forces for Bosnia peacekeeping 
operations in the total amount of $1,858,600,000, as follows:
        (1) For military personnel, in addition to the amounts 
    authorized to be appropriated in title IV of this Act:
            (A) For the Army, $297,700,000.
            (B) For the Navy, $9,700,000.
            (C) For the Marine Corps, $2,700,000.
            (D) For the Air Force, $33,900,000.
            (E) For the Naval Reserve, $2,200,000.
        (2) For operation and maintenance for the Overseas Contingency 
    Operations Transfer Fund, in addition to the total amount 
    authorized to be appropriated for that fund in section 301(24) of 
    this Act, $1,512,400,000.
    (b) Designation as Emergency.--Funds authorized to be appropriated 
in accordance with subsection (a) are designated as emergency 
requirements pursuant to section 251(b)(2)(A) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)).
    (c) Limitation.--(1) Funds available for the Department of Defense 
for fiscal year 1999 for military personnel for the Army, Navy, Marine 
Corps, Air Force, or Naval Reserve or for operation and maintenance for 
the Overseas Contingency Operations Transfer Fund may not be obligated 
or expended for Bosnia peacekeeping operations in excess of the amount 
authorized to be appropriated for that purpose under subsection (a).
    (2) The President may waive the limitation in paragraph (1) after 
submitting to Congress the following:
        (A) The President's written certification that the waiver is 
    necessary in the national security interests of the United States.
        (B) The President's written certification that exercising the 
    waiver will not adversely affect the readiness of United States 
    military forces.
        (C) A report setting forth the following:
            (i) The reasons that the waiver is necessary in the 
        national security interests of the United States.
            (ii) The specific reasons that additional funding is 
        required for the continued presence of United States military 
        forces participating in, or supporting, Bosnia peacekeeping 
        operations for fiscal year 1999.
            (iii) A discussion of the impact on the military readiness 
        of United States Armed Forces of the continuing deployment of 
        United States military forces participating in, or supporting, 
        Bosnia peacekeeping operations.
        (D) A supplemental appropriations request for the Department of 
    Defense for such amounts as are necessary for the additional fiscal 
    year 1999 costs associated with United States military forces 
    participating in, or supporting, Bosnia peacekeeping operations.
    (d) Transfer Authority.--The Secretary of Defense may transfer 
amounts of authorizations made available to the Department of Defense 
in subsection (a)(2) for fiscal year 1999 to any of the authorizations 
for that fiscal year in section 301. Amounts of authorizations so 
transferred shall be merged with and be available for the same purposes 
as the authorization to which transferred. The transfer authority under 
this subsection is in addition to any other transfer authority provided 
in this Act.
    (e) Bosnia Peacekeeping Operations Defined.--For the purposes of 
this section, the term ``Bosnia peacekeeping operations''--
        (1) means the operation designated as Operation Joint Forge and 
    any other operation involving the participation of any of the Armed 
    Forces in peacekeeping or peace enforcement activities in and 
    around the Republic of Bosnia and Herzegovina; and
        (2) includes, with respect to Operation Joint Forge or any such 
    other operation, each activity that is directly related to the 
    support of the operation.

SEC. 1005. PARTNERSHIP FOR PEACE INFORMATION SYSTEM MANAGEMENT.

    Funds authorized to be appropriated under titles II and III of this 
Act shall be available for the Partnership for Peace Information 
Management System as follows:
        (1) Of the amount authorized to be appropriated under section 
    201(4) for Defense-wide activities, $2,000,000.
        (2) Of the amount authorized to be appropriated under section 
    301(5) for Defense-wide activities, $3,000,000.

SEC. 1006. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 1999.

    (a) Fiscal Year 1999 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 1999 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
        (1) The amounts of unexpended balances, as of the end of fiscal 
    year 1998, of funds appropriated for fiscal years before fiscal 
    year 1999 for payments for those budgets.
        (2) The amount authorized to be appropriated under section 
    301(1) that is available for contributions for the NATO common-
    funded military budget under section 314.
        (3) The amount authorized to be appropriated under section 201 
    that is available for contribution for the NATO common-funded civil 
    budget under section 243.
        (4) The total amount of the contributions authorized to be made 
    under section 2501.
    (c) Definitions.--For purposes of this section:
        (1) Common-funded budgets of nato.--The term ``common-funded 
    budgets of NATO'' means the Military Budget, the Security 
    Investment Program, and the Civil Budget of the North Atlantic 
    Treaty Organization (and any successor or additional account or 
    program of NATO).
        (2) Fiscal year 1998 baseline limitation.--The term ``fiscal 
    year 1998 baseline limitation'' means the maximum annual amount of 
    Department of Defense contributions for common-funded budgets of 
    NATO that is set forth as the annual limitation in section 
    3(2)(C)(ii) of the resolution of the Senate giving the advice and 
    consent of the Senate to the ratification of the Protocols to the 
    North Atlantic Treaty of 1949 on the Accession of Poland, Hungary, 
    and the Czech Republic (as defined in section 4(7) of that 
    resolution), approved by the Senate on April 30, 1998.

SEC. 1007. LIQUIDITY OF WORKING-CAPITAL FUNDS.

    (a) Increased Cash Balances.--The Secretary of Defense shall 
administer the working-capital funds of the Department of Defense 
during fiscal year 1999 so as to ensure that the total amount of the 
cash balances in such funds on September 30, 1999, exceeds the total 
amount of the cash balances in such funds on September 30, 1998, by 
$1,300,000,000.
    (b) Actions Regarding Unbudgeted Losses.--The Under Secretary of 
Defense (Comptroller) shall take such actions regarding unbudgeted 
losses for the working-capital funds as may be necessary in order to 
ensure that such unbudgeted losses do not preclude the Secretary of 
Defense from achieving the increase in cash balances in working-capital 
funds required under subsection (a).
    (c) Waiver.--(1) The Secretary of Defense may waive the 
requirements of this section upon certifying to Congress, in writing, 
that the waiver is necessary to meet requirements associated with--
        (A) a contingency operation (as defined in section 101(a)(13) 
    of title 10, United States Code); or
        (B) an operation of the Armed Forces that commenced before 
    October 1, 1998, and continues during fiscal year 1999.
    (2) The waiver authority under paragraph (1) may not be delegated 
to any official other than the Deputy Secretary of Defense.
    (3) The waiver authority under paragraph (1) does not apply to the 
limitation in subsection (d) or the limitation in section 2208(l)(3) of 
title 10, United States Code (as added by subsection (e)).
    (d) Fiscal Year 1999 Limitation on Advance Billings.--(1) The total 
amount of the advance billings rendered or imposed for the working-
capital funds of the Department of Defense and the Defense Business 
Operations Fund in fiscal year 1999--
        (A) for the Department of the Navy, may not exceed 
    $400,000,000; and
        (B) for the Department of the Air Force, may not exceed 
    $400,000,000.
    (2) In paragraph (1), the term ``advance billing'' has the meaning 
given such term in section 2208(l) of title 10, United States Code.
    (e) Permanent Limitation on Advance Billings.--(1) Section 2208(l) 
of title 10, United States Code, is amended--
        (A) by redesignating paragraph (3) as paragraph (4); and
        (B) by inserting after paragraph (2) the following new 
    paragraph (3):
    ``(3) The total amount of the advance billings rendered or imposed 
for all working-capital funds of the Department of Defense in a fiscal 
year may not exceed $1,000,000,000.''.
    (2) Section 2208(l)(3) of such title, as added by paragraph (1), 
applies to fiscal years after fiscal year 1999.
    (f) Semiannual Report.--(1) The Under Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives--
        (A) not later than May 1, 1999, a report on the administration 
    of this section for the six-month period ending on March 31, 1999; 
    and
        (B) not later than November 1, 1999, a report on the 
    administration of this section for the six-month period ending on 
    September 30, 1999.
    (2) Each report shall include, for the period covered by the 
report, the following:
        (A) The profit and loss status of each working-capital fund 
    activity.
        (B) The actions taken by the Secretary of each military 
    department to use assessments of surcharges to correct for 
    unbudgeted losses.

SEC. 1008. TERMINATION OF AUTHORITY TO MANAGE WORKING-CAPITAL FUNDS AND 
              CERTAIN ACTIVITIES THROUGH THE DEFENSE BUSINESS 
              OPERATIONS FUND.

    (a) Revision of Certain DBOF Provisions and Reenactment To Apply to 
Working-Capital Funds Generally.--Section 2208 of title 10, United 
States Code, is amended by adding at the end the following:
    ``(m) Capital Asset Subaccounts.--Amounts charged for depreciation 
of capital assets shall be credited to a separate capital asset 
subaccount established within a working-capital fund.
    ``(n) Separate Accounting, Reporting, and Auditing of Funds and 
Activities.--The Secretary of Defense, with respect to the working-
capital funds of each Defense Agency, and the Secretary of each 
military department, with respect to the working-capital funds of the 
military department, shall provide for separate accounting, reporting, 
and auditing of funds and activities managed through the working-
capital funds.
    ``(o) Charges for Goods and Services Provided Through the Fund.--
(1) Charges for goods and services provided for an activity through a 
working-capital fund shall include the following:
        ``(A) Amounts necessary to recover the full costs of the goods 
    and services provided for that activity.
        ``(B) Amounts for depreciation of capital assets, set in 
    accordance with generally accepted accounting principles.
    ``(2) Charges for goods and services provided through a working-
capital fund may not include the following:
        ``(A) Amounts necessary to recover the costs of a military 
    construction project (as defined in section 2801(b) of this title), 
    other than a minor construction project financed by the fund 
    pursuant to section 2805(c)(1) of this title.
        ``(B) Amounts necessary to cover costs incurred in connection 
    with the closure or realignment of a military installation.
        ``(C) Amounts necessary to recover the costs of functions 
    designated by the Secretary of Defense as mission critical, such as 
    ammunition handling safety, and amounts for ancillary tasks not 
    directly related to the mission of the function or activity managed 
    through the fund.
    ``(p) Procedures For Accumulation of Funds.--The Secretary of 
Defense, with respect to each working-capital fund of a Defense Agency, 
and the Secretary of a military department, with respect to each 
working-capital fund of the military department, shall establish 
billing procedures to ensure that the balance in that working-capital 
fund does not exceed the amount necessary to provide for the working-
capital requirements of that fund, as determined by the Secretary.
    ``(q) Annual Reports and Budget.--The Secretary of Defense, with 
respect to each working-capital fund of a Defense Agency, and the 
Secretary of each military department, with respect to each working-
capital fund of the military department, shall annually submit to 
Congress, at the same time that the President submits the budget under 
section 1105 of title 31, the following:
        ``(1) A detailed report that contains a statement of all 
    receipts and disbursements of the fund (including such a statement 
    for each subaccount of the fund) for the fiscal year ending in the 
    year preceding the year in which the budget is submitted.
        ``(2) A detailed proposed budget for the operation of the fund 
    for the fiscal year for which the budget is submitted.
        ``(3) A comparison of the amounts actually expended for the 
    operation of the fund for the fiscal year referred to in paragraph 
    (1) with the amount proposed for the operation of the fund for that 
    fiscal year in the President's budget.
        ``(4) A report on the capital asset subaccount of the fund that 
    contains the following information:
            ``(A) The opening balance of the subaccount as of the 
        beginning of the fiscal year in which the report is submitted.
            ``(B) The estimated amounts to be credited to the 
        subaccount in the fiscal year in which the report is submitted.
            ``(C) The estimated amounts of outlays to be paid out of 
        the subaccount in the fiscal year in which the report is 
        submitted.
            ``(D) The estimated balance of the subaccount at the end of 
        the fiscal year in which the report is submitted.
            ``(E) A statement of how much of the estimated balance at 
        the end of the fiscal year in which the report is submitted 
        will be needed to pay outlays in the immediately following 
        fiscal year that are in excess of the amount to be credited to 
        the subaccount in the immediately following fiscal year.''.
    (b) Repeal of Authority To Manage Through the Defense Business 
Operations Fund.--Section 2216a of title 10, United States Code, and 
the item relating to that section in the table of sections at the 
beginning of chapter 131 of such title, are repealed.

SEC. 1009. CLARIFICATION OF AUTHORITY TO RETAIN RECOVERED COSTS OF 
              DISPOSALS IN WORKING-CAPITAL FUNDS.

    Section 2210(a) of title 10, United States Code, is amended to read 
as follows:
    ``(a)(1) A working-capital fund established pursuant to section 
2208 of this title may retain so much of the proceeds of disposals of 
property referred to in paragraph (2) as is necessary to recover the 
expenses incurred by the fund in disposing of such property. Proceeds 
from the sale or disposal of such property in excess of amounts 
necessary to recover the expenses may be credited to current applicable 
appropriations of the Department of Defense.
    ``(2) Paragraph (1) applies to disposals of supplies, material, 
equipment, and other personal property that were not financed by stock 
funds established under section 2208 of this title.''.

SEC. 1010. CREDITING OF AMOUNTS RECOVERED FROM THIRD PARTIES FOR LOSS 
              OR DAMAGE TO PERSONAL PROPERTY SHIPPED OR STORED AT 
              GOVERNMENT EXPENSE.

    (a) In General.--(1) Chapter 163 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 2739. Amounts recovered from third parties for loss or damage to 
            personal property shipped or stored at Government expense: 
            crediting to appropriations

    ``(a) Crediting of Collections.--Any qualifying military department 
third-party collection shall be credited to the appropriate current 
appropriation. Amounts so credited shall be merged with the funds in 
that appropriation and shall be available for the same period and 
purposes as the funds with which merged.
    ``(b) Appropriate Current Appropriation.--For purposes of 
subsection (a), the appropriate current appropriation with respect to a 
qualifying military department third-party collection is the 
appropriation currently available, as of the date of the collection, 
for the payment of claims by that military department for loss or 
damage of personal property shipped or stored at Government expense.
    ``(c) Qualifying Military Department Third-Party Collections.--For 
purposes of subsection (a), a qualifying military department third-
party collection is any amount that a military department collects 
under sections 3711, 3716, 3717, and 3721 of title 31 from a third 
party for a loss or damage to personal property that occurred during 
shipment or storage of the property at Government expense and for which 
the Secretary of the military department paid the owner in settlement 
of a claim.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``2739. Amounts recovered from third parties for loss or damage to 
          personal property shipped or stored at Government expense: 
          crediting to appropriations.''.

    (b) Effective Date.--Section 2739 of title 10, United States Code, 
as added by subsection (a), applies with respect to amounts collected 
by a military department on or after the date of the enactment of this 
Act.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. REVISION TO REQUIREMENT FOR CONTINUED LISTING OF TWO IOWA-
              CLASS BATTLESHIPS ON THE NAVAL VESSEL REGISTER.

    In carrying out section 1011 of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 421), the 
Secretary of the Navy shall list on the Naval Vessel Register, and 
maintain on that register, the following two Iowa-class battleships: 
the U.S.S. IOWA (BB-61) and the U.S.S. WISCONSIN (BB-64).

SEC. 1012. TRANSFER OF U.S.S. NEW JERSEY.

    The Secretary of the Navy shall strike the U.S.S. NEW JERSEY (BB-
62) from the Naval Vessel Register and shall transfer that vessel to a 
non-for-profit entity in accordance with section 7306 of title 10, 
United States Code. The Secretary shall require as a condition of the 
transfer of that vessel that the transferee locate the vessel in the 
State of New Jersey.

SEC. 1013. HOMEPORTING OF THE U.S.S. IOWA IN SAN FRANCISCO, CALIFORNIA.

    It is the sense of Congress that the U.S.S. IOWA (BB-61) should be 
homeported at the Port of San Francisco, California.

SEC. 1014. SENSE OF CONGRESS CONCERNING THE NAMING OF AN LPD-17 VESSEL.

    It is the sense of Congress that, consistent with section 1018 of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 425), the Secretary of the Navy should name the next 
vessel of the LPD-17 class of amphibious vessels to be named after the 
date of the enactment of this Act as the U.S.S. Clifton B. Cates, in 
honor of former Commandant of the Marine Corps Clifton B. Cates (1893-
1970), a native of Tennessee whose distinguished career of service in 
the Marine Corps included combat service in World War I so heroic that 
he became the most decorated Marine Corps officer of that war, 
exemplary combat leadership in the Pacific theater during World War II 
from Guadalcanal to Tinian and Iwo Jima and beyond, and appointment in 
1948 as the 19th Commandant of the Marine Corps with the rank of 
lieutenant general, a position from which he led the efficient and 
alacritous response of the Marine Corps to the invasion of the Republic 
of South Korea by Communist North Korea.

SEC. 1015. REPORTS ON NAVAL SURFACE FIRE-SUPPORT CAPABILITIES.

    (a) Navy Report.--(1) Not later than March 31, 1999, the Secretary 
of the Navy shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on battleship readiness for meeting 
requirements of the Armed Forces for naval surface fire support.
    (2) The report shall contain the following:
        (A) The reasons for the Secretary's failure to comply with the 
    requirements of section 1011 of the National Defense Authorization 
    Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 421) until 
    February 1998.
        (B) The requirements for specialized air-naval gunfire liaison 
    units.
        (C) The plans of the Navy for retaining and maintaining 16-inch 
    ammunition for the main guns of battleships.
        (D) The plans of the Navy for retaining the hammerhead crane 
    essential for lifting battleship turrets.
        (E) An estimate of the cost of reactivating Iowa-class 
    battleships for listing on the Naval Vessel Register, restoring the 
    vessels to seaworthiness with operational capabilities necessary to 
    meet requirements for naval surface fire-support, and maintaining 
    the battleships in that condition for continued listing on the 
    register, together with an estimate of the time necessary to 
    reactivate and restore the vessels to that condition.
        (F) An assessment of the short-term costs and the long-term 
    costs associated with alternative methods for executing the naval 
    surface fire-support mission of the Navy, including the alternative 
    of reactivating two battleships.
    (3) The Secretary shall act through the Director of Expeditionary 
Warfare Division (N85) of the Office of the Chief of Naval Operations 
in preparing the report.
    (b) GAO Report.--(1) The Comptroller General shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the naval surface 
fire-support capabilities of the Navy.
    (2) The report shall contain the following:
        (A) An assessment of the extent of the compliance by the 
    Secretary of the Navy with the requirements of section 1011 of the 
    National Defense Authorization Act for Fiscal Year 1996 (Public Law 
    104-106; 110 Stat. 421).
        (B) The plans of the Navy for executing the naval surface fire-
    support mission of the Navy.
        (C) An assessment of the short-term costs and the long-term 
    costs associated with the plans.
        (D) An analysis of the assessment required under subsection 
    (a)(2)(F).

SEC. 1016. LONG-TERM CHARTER OF THREE VESSELS IN SUPPORT OF SUBMARINE 
              RESCUE, ESCORT, AND TOWING.

    The Secretary of the Navy may enter into contracts in accordance 
with section 2401 of title 10, United States Code, for the charter 
through September 30, 2003, of the following vessels:
        (1) The CAROLYN CHOUEST (United States official number 
    D102057).
        (2) The KELLIE CHOUEST (United States official number 
    D1038519).
        (3) The DOLORES CHOUEST (United States official number 
    D600288).

SEC. 1017. TRANSFER OF OBSOLETE ARMY TUGBOAT.

    In carrying out section 1023 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1876), the 
Secretary of the Army may substitute the obsolete, decommissioned 
tugboat Attleboro (LT-1977) for the tugboat Normandy (LT-1971) as one 
of the two obsolete tugboats authorized to be transferred by the 
Secretary under that section.

 Subtitle C--Counter-Drug Activities and Other Assistance for Civilian 
                            Law Enforcement

SEC. 1021. DEPARTMENT OF DEFENSE SUPPORT TO OTHER AGENCIES FOR COUNTER-
              DRUG ACTIVITIES.

    (a) Continuation of Authority.--Subsection (a) of section 1004 of 
the National Defense Authorization Act for Fiscal Year 1991 (Public Law 
101-510; 10 U.S.C. 374 note) is amended by striking out ``through 
1999'' and inserting in lieu thereof ``through 2002''.
    (b) Bases and Facilities Support.--Subsection (b)(4) of such 
section is amended--
        (1) by striking out ``unspecified minor construction'' and 
    inserting in lieu thereof ``an unspecified minor military 
    construction project'';
        (2) by inserting ``of the Department of Defense or any Federal, 
    State, or local law enforcement agency'' after ``counter-drug 
    activities''; and
        (3) by inserting before the period at the end the following: 
    ``or counter-drug activities of a foreign law enforcement agency 
    outside the United States''.
    (c) Congressional Notification of Facilities Projects.--Such 
section is further amended by adding at the end the following new 
subsection:
    ``(h) Congressional Notification of Facilities Projects.--(1) When 
a decision is made to carry out a military construction project 
described in paragraph (2), the Secretary of Defense shall submit to 
the congressional defense committees written notice of the decision, 
including the justification for the project and the estimated cost of 
the project. The project may be commenced only after the end of the 21-
day period beginning on the date on which the written notice is 
received by Congress.
    ``(2) Paragraph (1) applies to an unspecified minor military 
construction project that--
        ``(A) is intended for the modification or repair of a 
    Department of Defense facility for the purpose set forth in 
    subsection (b)(4); and
        ``(B) has an estimated cost of more than $500,000.''.

SEC. 1022. DEPARTMENT OF DEFENSE SUPPORT OF NATIONAL GUARD DRUG 
              INTERDICTION AND COUNTER-DRUG ACTIVITIES.

    (a) Procurement of Equipment.--Subsection (a)(3) of section 112 of 
title 32, United States Code, is amended--
        (1) by striking out ``and leasing of equipment'' and inserting 
    in lieu thereof ``and equipment, and the leasing of equipment,''; 
    and
        (2) by adding at the end the following new sentence: ``However, 
    the use of such funds for the procurement of equipment may not 
    exceed $5,000 per purchase order, unless approval for procurement 
    of equipment in excess of that amount is granted in advance by the 
    Secretary of Defense.''.
    (b) Training and Readiness.--Subsection (b)(2) of such section is 
amended to read as follows:
    ``(2)(A) A member of the National Guard serving on full-time 
National Guard duty under orders authorized under paragraph (1) shall 
participate in the training required under section 502(a) of this title 
in addition to the duty performed for the purpose authorized under that 
paragraph. The pay, allowances, and other benefits of the member while 
participating in the training shall be the same as those to which the 
member is entitled while performing duty for the purpose of carrying 
out drug interdiction and counter-drug activities. The member is not 
entitled to additional pay, allowances, or other benefits for 
participation in training required under section 502(a)(1) of this 
title.
    ``(B) Appropriations available for the Department of Defense for 
drug interdiction and counter-drug activities may be used for paying 
costs associated with a member's participation in training described in 
subparagraph (A). The appropriation shall be reimbursed in full, out of 
appropriations available for paying those costs, for the amounts paid. 
Appropriations available for paying those costs shall be available for 
making the reimbursements.
    ``(C) To ensure that the use of units and personnel of the National 
Guard of a State pursuant to a State drug interdiction and counter-drug 
activities plan does not degrade the training and readiness of such 
units and personnel, the following requirements shall apply in 
determining the drug interdiction and counter-drug activities that 
units and personnel of the National Guard of a State may perform:
        ``(i) The performance of the activities may not adversely 
    affect the quality of that training or otherwise interfere with the 
    ability of a member or unit of the National Guard to perform the 
    military functions of the member or unit.
        ``(ii) National Guard personnel will not degrade their military 
    skills as a result of performing the activities.
        ``(iii) The performance of the activities will not result in a 
    significant increase in the cost of training.
        ``(iv) In the case of drug interdiction and counter-drug 
    activities performed by a unit organized to serve as a unit, the 
    activities will support valid unit training requirements.''.
    (c) Assistance to Youth and Charitable Organizations.--Subsection 
(b)(3) of such section is amended to read as follows:
    ``(3) A unit or member of the National Guard of a State may be 
used, pursuant to a State drug interdiction and counter-drug activities 
plan approved by the Secretary of Defense under this section, to 
provide services or other assistance (other than air transportation) to 
an organization eligible to receive services under section 508 of this 
title if--
        ``(A) the State drug interdiction and counter-drug activities 
    plan specifically recognizes the organization as being eligible to 
    receive the services or assistance;
        ``(B) in the case of services, the performance of the services 
    meets the requirements of paragraphs (1) and (2) of subsection (a) 
    of section 508 of this title; and
        ``(C) the services or assistance is authorized under subsection 
    (b) or (c) of such section or in the State drug interdiction and 
    counter-drug activities plan.''.
    (d) Definition of Drug Interdiction and Counter-Drug Activities.--
Subsection (i)(1) of such section is amended by inserting after ``drug 
interdiction and counter-drug law enforcement activities'' the 
following: ``, including drug demand reduction activities,''.
    (e) Conforming Amendments.--Subsection (a) of such section is 
further amended--
        (1) by striking out ``for--'' and inserting in lieu thereof 
    ``for the following:'';
        (2) by striking out ``the'' at the beginning of paragraphs (1), 
    (2), and (3) and inserting in lieu thereof ``The'';
        (3) in paragraph (1), by striking out the semicolon at the end 
    and inserting in lieu thereof a period; and
        (4) in paragraph (2), by striking out ``; and'' and inserting 
    in lieu thereof a period.

SEC. 1023. DEPARTMENT OF DEFENSE COUNTER-DRUG ACTIVITIES IN TRANSIT 
              ZONE.

    (a) Sense of Congress Regarding Priority of Drug Interdiction and 
Counter-Drug Activities.--It is the sense of Congress that the 
Secretary of Defense should--
        (1) ensure that the international drug interdiction and 
    counter-drug activities of the Department of Defense are accorded 
    adequate resources within the budget allocation of the Department 
    to execute the drug interdiction and counter-drug mission under the 
    Global Military Force Policy of the Department; and
        (2) make such changes to that policy as the Secretary considers 
    necessary.
    (b) Support for Counter-Drug Operation Caper Focus.--(1) During 
fiscal year 1999, the Secretary of Defense shall make available, to the 
maximum extent practicable, such surface vessels, maritime patrol 
aircraft, and personnel of the Navy as may be necessary to conduct the 
final phase of the counter-drug operation known as Caper Focus, which 
targets the maritime movement of cocaine on vessels in the eastern 
Pacific Ocean.
    (2) Of the amount authorized to be appropriated pursuant to section 
301(20) for drug interdiction and counter-drug activities, $10,500,000 
shall be available for the purpose of conducting the counter-drug 
operation known as Caper Focus.
    (c) Patrol Coastal Craft for Drug Interdiction by Southern 
Command.--Of the amount authorized to be appropriated pursuant to 
section 301(20) for drug interdiction and counter-drug activities, 
$14,500,000 shall be available for the purpose of equipping and 
operating six of the Cyclone-class coastal defense ships of the 
Department of Defense in the Caribbean Sea and eastern Pacific Ocean in 
support of the drug interdiction efforts of the United States Southern 
Command.
    (d) Resulting Availability of Funds for Counterproliferation and 
Counterterrorism Activities.--(1) In light of subsection (c), of the 
amount authorized to be appropriated pursuant to section 301(5) for the 
Special Operations Command, $4,500,000 shall be available for the 
purpose of increased training and related operations in support of the 
activities of the Special Operations Command regarding 
counterproliferation of weapons of mass destruction and 
counterterrorism.
    (2) The amount made available under this subsection is in addition 
to other funds authorized to be appropriated under section 301(5) for 
the Special Operations Command for such purpose.

       Subtitle D--Miscellaneous Report Requirements and Repeals

SEC. 1031. REPEAL OF UNNECESSARY AND OBSOLETE REPORTING PROVISIONS.

    (a) Health and Medical Care Studies and Demonstrations.--Section 
1092(a) of title 10, United States Code, is amended by striking out 
paragraph (3).
    (b) Executed Requirement for Biannual Reports on Alternative 
Utilization of Military Facilities.--Section 2819 of the National 
Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 2391 note), 
relating to the Commission on Alternative Utilization of Military 
Facilities, is repealed.

SEC. 1032. REPORT REGARDING USE OF TAGGING SYSTEM TO IDENTIFY 
              HYDROCARBON FUELS USED BY DEPARTMENT OF DEFENSE.

    (a) Report Required.--Not later than March 30, 1999, the Secretary 
of Defense shall submit to Congress a report evaluating the following:
        (1) The feasibility of tagging hydrocarbon fuels used by the 
    Department of Defense for the purposes of analyzing and identifying 
    such fuels.
        (2) The deterrent effect of such tagging on the theft and 
    misuse of fuels purchased by the Department.
        (3) The extent to which such tagging would assist in 
    determining the source of surface and underground pollution in 
    locations having separate fuel storage facilities of the Department 
    and of civilian companies.
    (b) System Elements.--In preparing the report, the Secretary shall 
ensure that any tagging system for the Department of Defense considered 
by the Secretary satisfies the following requirements:
        (1) The tagging system would not harm the environment.
        (2) Each chemical that would be used in the tagging system is--
            (A) approved for use under the Toxic Substances Control Act 
        (15 U.S.C. 2601 et seq.); and
            (B) substantially similar to the fuel to which added, as 
        determined in accordance with criteria established by the 
        Environmental Protection Agency for the introduction of 
        additives into hydrocarbon fuels.
        (3) The tagging system would permit a determination if a tag is 
    present and a determination if the concentration of a tag has 
    changed in order to facilitate identification of tagged fuels and 
    detection of dilution of tagged fuels.
        (4) The tagging system would not impair or degrade the 
    suitability of tagged fuels for their intended use.
    (c) Recommendations.--The report shall include any recommendations 
for legislation relating to the tagging of hydrocarbon fuels by the 
Department of Defense that the Secretary considers appropriate.

                Subtitle E--Armed Forces Retirement Home

SEC. 1041. APPOINTMENT OF DIRECTOR AND DEPUTY DIRECTOR OF THE NAVAL 
              HOME.

    (a) Appointment and Qualifications of Director and Deputy 
Director.--Subsection (a) of section 1517 of the Armed Forces 
Retirement Home Act of 1991 (24 U.S.C. 417) is amended--
        (1) in paragraph (2)--
            (A) by striking out ``Each Director'' and inserting in lieu 
        thereof ``The Director of the United States Soldiers' and 
        Airmen's Home''; and
            (B) by striking out subparagraph (B) and inserting in lieu 
        thereof the following:
        ``(B) meet the requirements of paragraph (4).'';
        (2) by redesignating paragraph (3) as paragraph (5); and
        (3) by inserting after paragraph (2) the following new 
    paragraphs (3) and (4):
    ``(3) The Director, and any Deputy Director, of the Naval Home 
shall be appointed by the Secretary of Defense from among persons 
recommended by the Secretaries of the military departments who--
        ``(A) in the case of the position of Director, are commissioned 
    officers of the Armed Forces serving on active duty in a pay grade 
    above O-5;
        ``(B) in the case of the position of Deputy Director, are 
    commissioned officers of the Armed Forces serving on active duty in 
    a pay grade above O-4; and
        ``(C) meet the requirements of paragraph (4).
    ``(4) Each Director shall have appropriate leadership and 
management skills, an appreciation and understanding of the culture and 
norms associated with military service, and significant military 
background.''.
    (b) Term of Director and Deputy Director.--Subsection (c) of such 
section is amended--
        (1)bystrikingout``(c)TermofDirector.--'' and all that follows 
    through ``A Director'' in the second sentence and inserting in lieu 
    thereof ``(c) Terms of Directors.--(1) The term of office of the 
    Director of the United States Soldiers' and Airmen's Home shall be 
    five years. The Director''; and
        (2) by adding at the end the following new paragraph:
    ``(2) The Director and the Deputy Director of the Naval Home shall 
serve at the pleasure of the Secretary of Defense.''.
    (c) Definitions.--Such section is further amended by adding at the 
end the following new subsection:
    ``(g) Definitions.--In this section:
        ``(1) The term `United States Soldiers' and Airmen's Home' 
    means the separate facility of the Retirement Home that is known as 
    the United States Soldiers' and Airmen's Home.
        ``(2) The term `Naval Home' means the separate facility of the 
    Retirement Home that is known as the Naval Home.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1998.

SEC. 1042. REVISION OF INSPECTION REQUIREMENTS RELATING TO ARMED FORCES 
              RETIREMENT HOME.

    (a) Inspection by Inspectors General of the Military Departments.--
Section 1518 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 
418) is amended to read as follows:

``SEC. 1518. INSPECTION OF RETIREMENT HOME.

    ``(a) Triennial Inspection.--Every three years the Inspector 
General of a military department shall inspect the Retirement Home, 
including the records of the Retirement Home.
    ``(b) Alternating Duty Among Inspectors General.--The duty to 
inspect the Retirement Home shall alternate among the Inspector General 
of the Army, the Naval Inspector General, and the Inspector General of 
the Air Force on such schedule as the Secretary of Defense shall 
direct.
    ``(c) Reports.--Not later than 45 days after completing an 
inspection under subsection (a), the Inspector General carrying out the 
inspection shall submit to the Retirement Home Board, the Secretary of 
Defense, and Congress a report describing the results of the inspection 
and containing such recommendations as the Inspector General considers 
appropriate.''.
    (b) First Inspection.--The first inspection under section 1518 of 
the Armed Forces Retirement Home Act of 1991, as amended by subsection 
(a), shall be carried out during fiscal year 1999.

SEC. 1043. CLARIFICATION OF LAND CONVEYANCE AUTHORITY, ARMED FORCES 
              RETIREMENT HOME.

    Section 1053 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2650) is amended--
        (1) in subsection (a), by striking out ``may convey, by sale or 
    otherwise,'' and inserting in lieu thereof ``shall convey by 
    sale''; and
        (2) by striking out subsection (b) and inserting in lieu 
    thereof the following new subsection (b):
    ``(b) Manner, Terms and Conditions of Disposal.--(1) The sale under 
subsection (a) shall be made to a neighboring nonprofit organization 
from whose extensive educational and charitable services the public 
benefits and has benefited from for more than 100 years, or an entity 
or entities related to such organization, and whose substantial 
investment in the neighborhood is consistent with the continued 
existence and purpose of the Armed Forces Retirement Home.
    ``(2) As consideration for the real property conveyance under 
subsection (a), the purchaser selected under paragraph (1) shall pay to 
the United States an amount equal to the fair market value of the real 
property at its highest and best economic use, as determined by the 
Armed Forces Retirement Home Board, based on an independent 
appraisal.''.

            Subtitle F--Matters Relating to Defense Property

SEC. 1051. PLAN FOR IMPROVED DEMILITARIZATION OF EXCESS AND SURPLUS 
              DEFENSE PROPERTY.

    (a) Plan Required.--Not later than March 1, 1999, the Secretary of 
Defense shall submit to Congress a plan to address the problems with 
the sale or other disposal of excess and surplus defense materials 
identified in the report submitted to Congress by the Secretary of 
Defense on June 5, 1998, pursuant to section 1067 of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
Stat. 1896). The plan shall provide for the following:
        (1) Implementation for all appropriate Department personnel of 
    the mandatory demilitarization training specified in Department of 
    Defense revised manual 4160.21-M-1.
        (2) Improvement of oversight of the performance of 
    demilitarization functions and the maintenance of demilitarization 
    codes throughout the life cycle of defense materials.
        (3) Assignment of accurate demilitarization codes and the 
    issuance of accurate demilitarization execution instructions during 
    the system planning phases of the acquisition process.
        (4) Implementation of such recommendations of the Defense 
    Science Board task force appointed by the Under Secretary of 
    Defense for Acquisition and Technology to consider the control of 
    military excess and surplus property as the Secretary of Defense 
    considers to be appropriate.
    (b) Demilitarization Training.--In connection with the 
demilitarization training that is required to be addressed in the plan, 
the Secretary shall indicate the time frame for full implementation of 
such training and the number of Department of Defense personnel to be 
trained.
    (c) Centralized Demilitarization Functions.--In connection with the 
matters specified in paragraphs (2) and (3) of subsection (a) that are 
required to be addressed in the plan, the Secretary shall consider 
options for the centralization of demilitarization functions and 
responsibilities in a single office or agency. The Secretary shall 
specify in the plan the responsible office or agency, and indicate the 
time frame for centralizing demilitarization functions and 
responsibilities, unless the Secretary determines that it is not 
practical or appropriate to centralize demilitarization functions and 
responsibilities, in which case the Secretary shall provide the reasons 
for the determination.
    (d) Draft Legislation.--The Secretary shall include in the plan any 
draft legislation that the Secretary considers appropriate to clarify 
the authority of the Government to recover critical and sensitive 
defense property that has been inadequately demilitarized.
    (e) Related Reports.--(1) The Secretary shall submit with the 
plan--
        (A) a copy of recommendations of the Defense Science Board task 
    force referred to in subsection (a)(4); and
        (B) a copy of the report prepared by an independent contractor 
    in accordance with the Secretary's report referred to in subsection 
    (a), at the request of the Defense Logistics Agency, to address 
    options for centralizing demilitarization responsibilities, 
    including a central demilitarization office and a central system 
    for coding and maintaining demilitarization codes through the life 
    cycle of the property involved.
    (2) With respect to the report of the independent contractor 
described in paragraph (1)(B), the Secretary shall provide an 
evaluation of the recommendations contained in the report and any plans 
by the Secretary for implementing the recommendations.

SEC. 1052. TRANSFER OF F-4 PHANTOM II AIRCRAFT TO FOUNDATION.

    (a) Authority.--The Secretary of the Air Force may convey, without 
consideration, to the Collings Foundation, Stow, Massachusetts (in this 
section referred to as the ``foundation''), all right, title, and 
interest of the United States in and to one surplus F-4 Phantom II 
aircraft. The conveyance shall be made by means of a conditional deed 
of gift.
    (b) Condition of Aircraft.--The Secretary may not convey ownership 
of the aircraft under subsection (a) until the Secretary determines 
that the foundation has altered the aircraft in such manner as the 
Secretary determines necessary to ensure that the aircraft does not 
have any capability for use as a platform for launching or releasing 
munitions or any other combat capability that it was designed to have. 
The Secretary is not required to repair or alter the condition of the 
aircraft before conveying ownership of the aircraft.
    (c) Reverter Upon Breach of Conditions.--The Secretary shall 
include in the instrument of conveyance of the aircraft--
        (1) a condition that the foundation not convey any ownership 
    interest in, or transfer possession of, the aircraft to any other 
    party without the prior approval of the Secretary;
        (2) a condition that the foundation operate and maintain the 
    aircraft in compliance with all applicable limitations and 
    maintenance requirements imposed by the Administrator of the 
    Federal Aviation Administration; and
        (3) a condition that if the Secretary determines at any time 
    that the foundation has conveyed an ownership interest in, or 
    transferred possession of, the aircraft to any other party without 
    the prior approval of the Secretary, or has failed to comply with 
    the condition set forth in paragraph (2), all right, title, and 
    interest in and to the aircraft, including any repair or alteration 
    of the aircraft, shall revert to the United States, and the United 
    States shall have the right of immediate possession of the 
    aircraft.
    (d) Conveyance at No Cost to the United States.--The conveyance of 
an aircraft authorized by this section shall be made at no cost to the 
United States. Any costs associated with such conveyance, costs of 
determining compliance with subsection (b), and costs of operation and 
maintenance of the aircraft conveyed shall be borne by the foundation.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
    (f) Clarification of Liability.--Notwithstanding any other 
provision of law, upon the conveyance of ownership of the F-4 Phantom 
II aircraft to the foundation under subsection (a), the United States 
shall not be liable for any death, injury, loss, or damage that results 
from any use of that aircraft by any person other than the United 
States.

            Subtitle G--Other Department of Defense Matters

SEC. 1061. PILOT PROGRAM ON ALTERNATIVE NOTICE OF RECEIPT OF LEGAL 
              PROCESS FOR GARNISHMENT OF FEDERAL PAY FOR CHILD SUPPORT 
              AND ALIMONY.

    (a) Program Required.--The Secretary of Defense shall conduct a 
pilot program on alternative notice procedures for withholding or 
garnishment of pay for the payment of child support and alimony under 
section 459 of the Social Security Act (42 U.S.C. 659).
    (b) Purpose.--The purpose of the pilot program is to test the 
efficacy of providing notice in accordance with subsection (c) to the 
person whose pay is to be withheld or garnished.
    (c) Authorization of Alternative To Providing Copy of Notice or 
Service Received by the Secretary.--(1) Under the pilot program, 
whenever the Secretary of Defense (acting through the DOD section 459 
agent) provides a section 459 notice to an individual, the Secretary 
may include as part of that notice the information specified in 
subsection (e) in lieu of sending with that notice a copy (otherwise 
required pursuant to the parenthetical phrase in section 459(c)(2)(A) 
of the Social Security Act) of the notice or service received by the 
DOD section 459 agent with respect to that individual's child support 
or alimony payment obligations.
    (2) Under the pilot program, whenever the Secretary of Defense 
(acting through the DOD section 5520a agent) provides a section 5520a 
notice to an individual, the Secretary may include as part of that 
notice the information specified in subsection (e) in lieu of sending 
with that notice a copy (otherwise required pursuant to the second 
parenthetical phrase in section 5520a(c) of title 5, United States 
Code) of the legal process received by the DOD section 5520a agent with 
respect to that individual.
    (d) Definitions.--For purposes of this section:
        (1) DOD section 459 agent.--The term ``DOD section 459 agent'' 
    means the agent or agents designated by the Secretary of Defense 
    under subsection (c)(1)(A) of section 459 of the Social Security 
    Act (42 U.S.C. 659) to receive orders and accept service of process 
    in matters related to child support or alimony.
        (2) Section 459 notice.--The term ``section 459 notice'' means, 
    with respect to the Department of Defense, the notice required by 
    subsection (c)(2)(A) of section 459 of the Social Security Act (42 
    U.S.C. 659) to be sent to an individual in writing upon the receipt 
    by the DOD section 459 agent of notice or service with respect to 
    the individual's child support or alimony payment obligations.
        (3) DOD section 5520a agent.--The term ``DOD section 5520a 
    agent'' means a person who is designated by law or regulation to 
    accept service of process to which the Department of Defense is 
    subject under section 5520a of title 5, United States Code 
    (including the regulations promulgated under subsection (k) of that 
    section).
        (4) Section 5520a notice.--The term ``section 5520a notice'' 
    means, with respect to the Department of Defense, the notice 
    required by subsection (c) of section 5520a of title 5, United 
    States Code, to be sent in writing to an employee (or, pursuant to 
    the regulations promulgated under subsection (k) of that section, 
    to a member of the Armed Forces) upon the receipt by the DOD 
    section 5520a agent of legal process covered by that section.
    (e) Alternative Requirements.--The information referred to in 
subsection (c) that is to be included as part of a section 459 notice 
or section 5520a notice sent to an individual (in lieu of sending with 
that notice a copy of the notice or service received by the DOD section 
459 agent or the DOD section 5520a agent) is the following:
        (1) A description of the pertinent court order, notice to 
    withhold, or other order, process, or interrogatory received by the 
    DOD section 459 agent or the DOD section 5520a agent.
        (2) The identity of the court or judicial forum involved and 
    (in the case of a notice or process concerning the ordering of a 
    support or alimony obligation) the case number, the amount of the 
    obligation, and the name of the beneficiary.
        (3) Information on how the individual may obtain from the 
    Department of Defense a copy of the notice, service, or legal 
    process, including an address and telephone number that the 
    individual may be contacted for the purpose of obtaining such a 
    copy.
    (f) Period of Pilot Program.--The Secretary shall commence the 
pilot program not later than 90 days after the date of the enactment of 
this Act. The pilot program shall terminate on September 30, 2001.
    (g) Report.--Not later than January 1, 2001, the Secretary shall 
submit to Congress a report describing the experience of the Department 
of Defense under the authority provided by this section. The report 
shall include the following:
        (1) The number of section 459 notices provided by the DOD 
    section 459 agent during the period the authority provided by this 
    section was in effect.
        (2) The number of individuals who requested the DOD section 459 
    agent to provide to them a copy of the actual notice or service.
        (3) Any complaint the Secretary received by reason of not 
    having provided the actual notice or service in the section 459 
    notice.
        (4) The number of section 5520a notices provided by the DOD 
    section 5520a agent during the period the authority provided by 
    this section was in effect.
        (5) The number of individuals who requested the DOD section 
    5520a agent to provide to them a copy of the actual legal process.
        (6) Any complaint the Secretary received by reason of not 
    having provided the actual legal process in the section 5520a 
    notice.

SEC. 1062. TRAINING OF SPECIAL OPERATIONS FORCES WITH FRIENDLY FOREIGN 
              FORCES.

    (a) Requirement for Prior Approval of Secretary of Defense.--
Subsection (c) of section 2011 of title 10, United States Code, is 
amended by inserting after the first sentence the following new 
sentence: ``The regulations shall require that training activities may 
be carried out under this section only with the prior approval of the 
Secretary of Defense.''.
    (b) Elements of Annual Report.--Subsection (e) of such section is 
amended by adding at the end the following new paragraphs:
        ``(5) A summary of the expenditures under this section 
    resulting from the training for which expenses were paid under this 
    section.
        ``(6) A discussion of the unique military training benefit to 
    United States special operations forces derived from the training 
    activities for which expenses were paid under this section.''.

SEC. 1063. RESEARCH GRANTS COMPETITIVELY AWARDED TO SERVICE ACADEMIES.

    (a) United States Military Academy.--(1) Chapter 403 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 4358. Grants for faculty research for scientific, literary, and 
            educational purposes: acceptance; authorized grantees

    ``(a) Acceptance of Research Grants.--The Secretary of the Army may 
authorize the Superintendent of the Academy to accept qualifying 
research grants under this section. Any such grant may only be accepted 
if the work under the grant is to be carried out by a professor or 
instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Qualifying Grants.--A qualifying research grant under this 
section is a grant that is awarded on a competitive basis by an entity 
referred to in subsection (c) for a research project with a scientific, 
literary, or educational purpose.
    ``(c) Entities From Which Grants May be Accepted.--A grant may be 
accepted under this section only from a corporation, fund, foundation, 
educational institution, or similar entity that is organized and 
operated primarily for scientific, literary, or educational purposes.
    ``(d) Administration of Grant Funds.--The Secretary shall establish 
an account for administering funds received as research grants under 
this section. The Superintendent shall use the funds in the account in 
accordance with applicable regulations and the terms and conditions of 
the grants received.
    ``(e) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in applying 
for, and otherwise pursuing, award of a qualifying research grant.
    ``(f) Regulations.--The Secretary of the Army shall prescribe 
regulations for the administration of this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``4358. Grants for faculty research for scientific, literary, and 
          educational purposes: acceptance; authorized grantees.''.

    (b) United States Naval Academy.--(1) Chapter 603 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 6977. Grants for faculty research for scientific, literary, and 
            educational purposes: acceptance; authorized grantees

    ``(a) Acceptance of Research Grants.--The Secretary of the Navy may 
authorize the Superintendent of the Academy to accept qualifying 
research grants under this section. Any such grant may only be accepted 
if the work under the grant is to be carried out by a professor or 
instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Qualifying Grants.--A qualifying research grant under this 
section is a grant that is awarded on a competitive basis by an entity 
referred to in subsection (c) for a research project with a scientific, 
literary, or educational purpose.
    ``(c) Entities From Which Grants May be Accepted.--A grant may be 
accepted under this section only from a corporation, fund, foundation, 
educational institution, or similar entity that is organized and 
operated primarily for scientific, literary, or educational purposes.
    ``(d) Administration of Grant Funds.--The Secretary shall establish 
an account for administering funds received as research grants under 
this section. The Superintendent shall use the funds in the account in 
accordance with applicable regulations and the terms and conditions of 
the grants received.
    ``(e) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in applying 
for, and otherwise pursuing, award of a qualifying research grant.
    ``(f) Regulations.--The Secretary of the Navy shall prescribe 
regulations for the administration of this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``6977. Grants for faculty research for scientific, literary, and 
          educational purposes: acceptance; authorized grantees.''.

    (c) United States Air Force Academy.--(1) Chapter 903 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 9357. Grants for faculty research for scientific, literary, and 
            educational purposes: acceptance; authorized grantees

    ``(a) Acceptance of Research Grants.--The Secretary of the Air 
Force may authorize the Superintendent of the Academy to accept 
qualifying research grants under this section. Any such grant may only 
be accepted if the work under the grant is to be carried out by a 
professor or instructor of the Academy for a scientific, literary, or 
educational purpose.
    ``(b) Qualifying Grants.--A qualifying research grant under this 
section is a grant that is awarded on a competitive basis by an entity 
referred to in subsection (c) for a research project with a scientific, 
literary, or educational purpose.
    ``(c) Entities From Which Grants May be Accepted.--A grant may be 
accepted under this section only from a corporation, fund, foundation, 
educational institution, or similar entity that is organized and 
operated primarily for scientific, literary, or educational purposes.
    ``(d) Administration of Grant Funds.--The Secretary shall establish 
an account for administering funds received as research grants under 
this section. The Superintendent shall use the funds in the account in 
accordance with applicable regulations and the terms and conditions of 
the grants received.
    ``(e) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in applying 
for, and otherwise pursuing, award of a qualifying research grant.
    ``(f) Regulations.--The Secretary of the Air Force shall prescribe 
regulations for the administration of this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``9357. Grants for faculty research for scientific, literary, and 
          educational purposes: acceptance; authorized grantees.''.

SEC. 1064. DEPARTMENT OF DEFENSE USE OF FREQUENCY SPECTRUM.

    (a) Finding.--Congress finds that the report submitted to Congress 
by the Secretary of Defense on April 2, 1998, regarding the 
reallocation of the frequency spectrum used or dedicated to the 
Department of Defense and the intelligence community does not include a 
discussion of the costs to the Department of Defense that are 
associated with past and potential future reallocations of the 
frequency spectrum, although such a discussion was to be included in 
the report as directed in connection with the enactment of the National 
Defense Authorization Act for Fiscal Year 1998.
    (b) Additional Report.--The Secretary of Defense shall, not later 
than October 31, 1998, submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report that discusses the costs referred to in 
subsection (a).
    (c) Relocation of Federal Frequencies.--Section 113(g)(1) of the 
National Telecommunications and Information Administration Organization 
Act (47 U.S.C. 923(g)(1)) is amended--
        (1) by striking out ``(1) In general.--In order'' and inserting 
    in lieu thereof the following:
        ``(1) In general.--
            ``(A) Authority of federal entities to accept 
        compensation.--In order'';
        (2) in subparagraph (A), as so designated, by striking out the 
    second, third, and fourth sentences and inserting in lieu thereof 
    the following: ``Any such Federal entity which proposes to so 
    relocate shall notify the NTIA, which in turn shall notify the 
    Commission, before the auction concerned of the marginal costs 
    anticipated to be associated with such relocation or with 
    modifications necessary to accommodate prospective licensees. The 
    Commission in turn shall notify potential bidders of the estimated 
    relocation or modification costs based on the geographic area 
    covered by the proposed licenses before the auction.''; and
        (3) by adding at the end the following:
            ``(B) Requirement to compensate federal entities.--Any 
        person on whose behalf a Federal entity incurs costs under 
        subparagraph (A) shall compensate the Federal entity in advance 
        for such costs. Such compensation may take the form of a cash 
        payment or in-kind compensation.
            ``(C) Disposition of payments.--
                ``(i) Payment by electronic funds transfer.--A person 
            making a cash payment under this paragraph shall make the 
            cash payment by depositing the amount of the payment by 
            electronic funds transfer in the account of the Federal 
            entity concerned in the Treasury of the United States or in 
            another account as authorized by law.
                ``(ii) Availability.--Subject to the provisions of 
            authorization Acts and appropriations Acts, amounts 
            deposited under this subparagraph shall be available to the 
            Federal entity concerned to pay directly the costs of 
            relocation under this paragraph, to repay or make advances 
            to appropriations or funds which do or will initially bear 
            all or part of such costs, or to refund excess sums when 
            necessary.
            ``(D) Application to certain other relocations.--The 
        provisions of this paragraph also apply to any Federal entity 
        that operates a Federal Government station assigned to used 
        electromagnetic spectrum identified for reallocation under 
        subsection (a) if before August 5, 1997, the Commission has not 
        identified that spectrum for service or assigned licenses or 
        otherwise authorized service for that spectrum.
            ``(E) Implementation procedures.--The NTIA and the 
        Commission shall develop procedures for the implementation of 
        this paragraph, which procedures shall include a process for 
        resolving any differences that arise between the Federal 
        Government and commercial licensees regarding estimates of 
        relocation or modification costs under this paragraph.
            ``(F) Inapplicability to certain relocations.--With the 
        exception of the band of frequencies located at 1710-1755 
        megahertz, the provisions of this paragraph shall not apply to 
        Federal spectrum identified for reallocation in the first 
        reallocation report submitted to the President and Congress 
        under subsection (a).''.
    (d) Reports on Costs of Relocations.--The head of each department 
or agency of the Federal Government shall include in the annual budget 
submission of such department or agency to the Director of the Office 
of Management and Budget a report assessing the costs to be incurred by 
such department or agency as a result of any frequency relocations of 
such department or agency that are anticipated under section 113 of the 
National Telecommunications Information Administration Organization Act 
(47 U.S.C. 923) as of the date of such report.

SEC. 1065. DEPARTMENT OF DEFENSE AVIATION ACCIDENT INVESTIGATIONS.

    (a) Report Required.--Not later than March 31, 1999, the Secretary 
of Defense shall submit to Congress a report on the roles of the Office 
of the Secretary of Defense and of the Joint Staff in the investigation 
of Department of Defense aviation accidents.
    (b) Content of Report.--The report shall include the following:
        (1) An assessment of whether the Office of the Secretary of 
    Defense and the Joint Staff should have more direct involvement in 
    the investigation of military aviation accidents.
        (2) The advisability of the Office of the Secretary of Defense, 
    the Joint Staff, or another Department of Defense entity 
    independent of the military departments supervising the conduct of 
    aviation accident investigations.
        (3) An assessment of the minimum training and experience 
    required for aviation accident investigation board presidents and 
    board members.
        (4) An assessment whether or not the procedures for sharing the 
    results of military aviation accident investigations among the 
    military departments should be improved.
        (5) An assessment of the advisability of centralized training 
    and instruction for military aircraft accident investigators.
    (c) Uniform Regulations for Provision of Accident Investigation 
Update Information.--The Secretary of Defense shall prescribe 
regulations, which shall be applied uniformly across the Department of 
Defense, establishing procedures by which the military departments 
shall provide to the family members of any person involved in a 
military aviation accident periodic update reports on the conduct and 
progress of investigations into the accident.

SEC. 1066. INVESTIGATION OF ACTIONS RELATING TO 174TH FIGHTER WING OF 
              NEW YORK AIR NATIONAL GUARD.

    (a) Investigation.--The Inspector General of the Department of 
Defense shall conduct a new investigation into the circumstances that 
led to the December 1, 1995, grounding of the 174th Fighter Wing of the 
New York Air National Guard. The investigation shall review those 
circumstances, examine the administrative and disciplinary actions 
taken against members of that wing, and determine whether those 
administrative and disciplinary measures were appropriate.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Inspector General shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report describing the 
results of the investigation under subsection (a).

SEC. 1067. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN WAR.

    (a) Limitation on Expenditures.--Subsection (f) of section 1083 of 
the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1918; 10 U.S.C. 113 note) is amended to read as 
follows:
    ``(f) Limitation on Expenditures.--The total amount expended by the 
Department of Defense to carry out the commemorative program for fiscal 
year 1999 may not exceed $1,820,000.''.
    (b) Redesignation of Commemoration Account.--The account in the 
Treasury known as the ``Department of Defense Korean Conflict 
Commemoration Account'' is redesignated as the ``Department of Defense 
Korean War Commemoration Account''.
    (c) Other References to Korean War.--Such section is further 
amended--
        (1) in the section heading, by striking out ``korean conflict'' 
    and inserting in lieu thereof ``korean war'';
        (2) by striking out ``Korean conflict'' each place it appears 
    and inserting in lieu thereof ``Korean War'';
        (3) in subsection (c), by striking out ``names `The Department 
    of Defense Korean Conflict Commemoration','' and inserting in lieu 
    thereof ``name the `Department of Defense Korean War 
    Commemoration',''; and
        (4) in subsection (d)(1), by striking out ``Korean Conflict'' 
    and inserting in lieu thereof ``Korean War''.
    (d) Cross References.--Any reference to the Department of Defense 
Korean Conflict Commemoration or the Department of Defense Korean 
Conflict Commemoration Account in any law, regulation, document, 
record, or other paper of the United States shall be considered to be a 
reference to the Department of Defense Korean War Commemoration or the 
Department of Defense Korean War Commemoration Account, respectively.

SEC. 1068. DESIGNATION OF AMERICA'S NATIONAL MARITIME MUSEUM.

    (a) In General.--America's National Maritime Museum is comprised of 
those museums designated by law to be museums of America's National 
Maritime Museum on the basis that they--
        (1) house a collection of maritime artifacts clearly 
    representing the Nation's maritime heritage; and
        (2) provide outreach programs to educate the public about the 
    Nation's maritime heritage.
    (b) Initial Designation of Museums.--The following museums (meeting 
the criteria specified in subsection (a)) are hereby designated as 
museums of America's National Maritime Museum:
        (1) The Mariners' Museum, located at 100 Museum Drive, Newport 
    News, Virginia.
        (2) The South Street Seaport Museum, located at 207 Front 
    Street, New York, New York.
    (c) Future Designation of Other Museums Not Precluded.--The 
designation of the museums referred to in subsection (b) as museums of 
America's National Maritime Museum does not preclude the designation by 
law after the date of the enactment of this Act of any other museum 
that meets the criteria specified in subsection (a) as a museum of 
America's National Maritime Museum.
    (d) Reference to Museums.--Any reference in any law, map, 
regulation, document, paper, or other record of the United States to a 
museum designated by law to be a museum of America's National Maritime 
Museum shall be deemed to be a reference to that museum as a museum of 
America's National Maritime Museum.

SEC. 1069. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
        (1) The item relating to section 484 in the table of sections 
    at the beginning of chapter 23 is amended to read as follows:
``484. Annual report on aircraft inventory.''.

        (2) Section 517(a) is amended by striking out ``Except as 
    provided in section 307 of title 37, the'' and inserting in lieu 
    thereof ``The''.
        (3) The item relating to section 2302c in the table of sections 
    at the beginning of chapter 137 is amended to read as follows:
``2302c. Implementation of electronic commerce capability.''.

        (4) The table of subchapters at the beginning of chapter 148 is 
    amended--
            (A) by striking out ``2491'' in the item relating to 
        subchapter I and inserting in lieu thereof ``2500''; and
            (B) by striking out the item relating to subchapter IV and 
        inserting in lieu thereof the following:

``IV. Manufacturing Technology................................
                                                                 2521''.

        (5) The subchapter heading for subchapter IV of chapter 148 is 
    amended to read as follows:

              ``SUBCHAPTER IV--MANUFACTURING TECHNOLOGY''

        (6) Section 7045(c) is amended by striking out ``the'' after 
    ``are subject to''.
        (7) Section 7572(b) is repealed.
        (8) Section 12683(b)(2) is amended by striking out ``; or'' at 
    the end and inserting in lieu thereof a period.
    (b) Public Law 105-85.--Effective as of November 18, 1997, and as 
if included therein as enacted, the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85) is amended as follows:
        (1) Section 389(g) (111 Stat. 1715) is amended by striking out 
    ``Secretary of Defense'' and inserting in lieu thereof 
    ``Comptroller General''.
        (2) Section 1006(a) (111 Stat. 1869) is amended by striking out 
    ``or'' in the quoted matter and inserting in lieu thereof ``and''.
        (3) Section 3133(b)(3) (111 Stat. 2036) is amended by striking 
    out ``III'' and inserting in lieu thereof ``XIV''.
    (c)  Defense Against Weapons of Mass Destruction Act of 1996.--The 
Defense Against Weapons of Mass Destruction Act of 1996 (title XIV of 
Public Law 104-201) is amended as follows:
        (1) Section 1423(b)(4) (50 U.S.C. 2332(b)(4); 110 Stat. 2726) 
    is amended by striking out ``(22 U.S.C. 2156a(c))'' and inserting 
    in lieu thereof ``(42 U.S.C. 2139a(c))''.
        (2) Section 1441(b)(2) (50 U.S.C. 2351(b)(2); 110 Stat. 2727) 
    is amended by striking out ``established under section 1342'' and 
    inserting in lieu thereof ``of the National Security Council''.
        (3) Section 1444 (50 U.S.C. 2354; 110 Stat. 2730) is amended by 
    striking out ``1341'' and ``1342'' and inserting in lieu thereof 
    ``1441'' and ``1442'', respectively.
        (4) Section 1453(1) (50 U.S.C. 2363(1); 110 Stat. 2730) is 
    amended by striking out ``the National Defense Authorization Act 
    for Fiscal Years 1993 and 1994'' and inserting in lieu thereof 
    ``title XIV of the National Defense Authorization Act for Fiscal 
    Year 1993 (Public Law 102-484; 22 U.S.C. 5901 et seq.)''.
    (d) Other Acts.--
        (1) Section 18(c)(1) of the Office of Federal Procurement 
    Policy Act (41 U.S.C. 416(c)(1)) is amended by striking out the 
    period at the end of subparagraph (A) and inserting in lieu thereof 
    a semicolon.
        (2) Section 3(c)(2) of Public Law 101-533 (22 U.S.C. 
    3142(c)(2)) is amended by striking out ``included in the most 
    recent plan submitted to the Congress under section 2506 of title 
    10'' and inserting in lieu thereof ``identified in the most recent 
    assessment prepared under section 2505 of title 10''.
    (e) Coordination With Other Amendments.--For purposes of applying 
amendments made by provisions of this Act other than provisions of this 
section, this section shall be treated as having been enacted 
immediately before the other provisions of this Act.

                       Subtitle H--Other Matters

SEC. 1071. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL WAR RISK 
              INSURANCE REQUESTED BY THE SECRETARY OF DEFENSE.

    (a) In General.--Section 1205(b) of the Merchant Marine Act, 1936 
(46 U.S.C. App. 1285(b)), is amended by adding at the end the following 
new sentence: ``The signature of the President (or of an official 
designated by the President) on the agreement shall be treated as an 
expression of the approval required under section 1202(a) to provide 
the insurance.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply only to a signature of the President (or of an official 
designated by the President) on or after the date of the enactment of 
this Act.

SEC. 1072. EXTENSION AND REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF 
              1950.

    (a) Extension of Termination Date.--Section 717(a) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking 
``September 30, 1998'' and inserting ``September 30, 1999''.
    (b) Extension of Authorization.--Section 711(b) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2161(b)) is amended by striking 
``and 1998'' and inserting ``1998, and 1999''.

SEC. 1073. REQUIREMENT THAT BURIAL FLAGS FURNISHED BY THE SECRETARY OF 
              VETERANS AFFAIRS BE WHOLLY PRODUCED IN THE UNITED STATES.

    (a) Requirement.--Section 2301 of title 38, United States Code, as 
amended by section 517, is further amended by adding at the end the 
following new subsection:
    ``(g)(1) The Secretary may not procure any flag for the purposes of 
this section that is not wholly produced in the United States.
    ``(2)(A) The Secretary may waive the requirement of paragraph (1) 
if the Secretary determines--
        ``(i) that the requirement cannot be reasonably met; or
        ``(ii) that compliance with the requirement would not be in the 
    national interest of the United States.
    ``(B) The Secretary shall submit to Congress in writing notice of a 
determination under subparagraph (A) not later than 30 days after the 
date on which such determination is made.
    ``(3) For the purpose of paragraph (1), a flag shall be considered 
to be wholly produced in the United States only if--
        ``(A) the materials and components of the flag are entirely 
    grown, manufactured, or created in the United States;
        ``(B) the processing (including spinning, weaving, dyeing, and 
    finishing) of such materials and components is entirely performed 
    in the United States; and
        ``(C) the manufacture and assembling of such materials and 
    components into the flag is entirely performed in the United 
    States.''.
    (b) Effective Date.--Subsection (g) of section 2301 of title 38, 
United States Code, as added by subsection (a), shall apply to flags 
procured by the Secretary of Veterans Affairs for the purposes of 
section 2301 of title 38, United States Code, after the end of the 30-
day period beginning on the date of the enactment of this Act.

SEC. 1074. SENSE OF CONGRESS CONCERNING TAX TREATMENT OF PRINCIPAL 
              RESIDENCE OF MEMBERS OF ARMED FORCES WHILE AWAY FROM HOME 
              ON ACTIVE DUTY.

    It is the sense of Congress that a member of the Armed Forces 
should be treated for purposes of section 121 of the Internal Revenue 
Code of 1986 as using property as a principal residence during any 
continuous period that the member is serving on active duty for 180 
days or more with the Armed Forces, but only if the member used the 
property as a principal residence for any period during or immediately 
before that period of active duty.

SEC. 1075. CLARIFICATION OF STATE AUTHORITY TO TAX COMPENSATION PAID TO 
              CERTAIN EMPLOYEES.

    (a) Limitation on State Authority To Tax Compensation Paid to 
Individuals Performing Services at Fort Campbell, Kentucky.--
        (1) In general.--Chapter 4 of title 4, United States Code, is 
    amended by adding at the end the following:

``Sec. 115. Limitation on State authority to tax compensation paid to 
            individuals performing services at Fort Campbell, Kentucky

    ``Pay and compensation paid to an individual for personal services 
at Fort Campbell, Kentucky, shall be subject to taxation by the State 
or any political subdivision thereof of which such employee is a 
resident.''.
        (2) Conforming amendment.--The table of sections for chapter 4 
    of title 4, United States Code, is amended by adding at the end the 
    following:
``115. Limitation on State authority to tax compensation paid to 
          individuals performing services at Fort Campbell, Kentucky.''.

        (3) Effective date.--The amendments made by this subsection 
    shall apply to pay and compensation paid after the date of the 
    enactment of this Act.
    (b) Clarification of State Authority To Tax Compensation Paid to 
Certain Federal Employees.--
        (1) In general.--Section 111 of title 4, United States Code, is 
    amended--
            (A) by inserting ``(a) General Rule.--'' before ``The 
        United States'' the first place it appears; and
            (B) by adding at the end the following:
    ``(b) Treatment of Certain Federal Employees Employed at Federal 
Hydroelectric Facilities Located on the Columbia River.--Pay or 
compensation paid by the United States for personal services as an 
employee of the United States at a hydroelectric facility--
        ``(1) which is owned by the United States;
        ``(2) which is located on the Columbia River; and
        ``(3) portions of which are within the States of Oregon and 
    Washington,
shall be subject to taxation by the State or any political subdivision 
thereof of which such employee is a resident.
    ``(c) Treatment of Certain Federal Employees Employed at Federal 
Hydroelectric Facilities Located on the Missouri River.--Pay or 
compensation paid by the United States for personal services as an 
employee of the United States at a hydroelectric facility--
        ``(1) which is owned by the United States;
        ``(2) which is located on the Missouri River; and
        ``(3) portions of which are within the States of South Dakota 
    and Nebraska,
shall be subject to taxation by the State or any political subdivision 
thereof of which such employee is a resident.''.
        (2) Effective date.--The amendment made by this subsection 
    shall apply to pay and compensation paid after the date of the 
    enactment of this Act.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec.1101.Defense Advanced Research Projects Agency experimental 
          personnel management program for technical personnel.
Sec.1102.Maximum pay rate comparability for faculty members of the 
          United States Air Force Institute of Technology.
Sec.1103.Authority for release to Coast Guard of drug test results of 
          civil service mariners of the Military Sealift Command.
Sec.1104.Limitations on back pay awards.
Sec.1105.Restoration of annual leave accumulated by civilian employees 
          at installations in the Republic of Panama to be closed 
          pursuant to the Panama Canal Treaty of 1977.
Sec.1106.Repeal of program providing preference for employment of 
          military spouses in military child care facilities.
Sec.1107.Observance of certain holidays at duty posts outside the United 
          States.
Sec.1108.Continuation of random drug testing program for certain 
          Department of Defense employees.
Sec.1109.Department of Defense employee voluntary early retirement 
          authority.

SEC. 1101. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY EXPERIMENTAL 
              PERSONNEL MANAGEMENT PROGRAM FOR TECHNICAL PERSONNEL.

    (a) Program Authorized.--During the 5-year period beginning on the 
date of the enactment of this Act, the Secretary of Defense may carry 
out a program of experimental use of the special personnel management 
authority provided in subsection (b) in order to facilitate recruitment 
of eminent experts in science or engineering for research and 
development projects administered by the Defense Advanced Research 
Projects Agency.
    (b) Special Personnel Management Authority.--Under the program, the 
Secretary may--
        (1) appoint scientists and engineers from outside the civil 
    service and uniformed services (as such terms are defined in 
    section 2101 of title 5, United States Code) to not more than 20 
    scientific and engineering positions in the Defense Advanced 
    Research Projects Agency without regard to any provision of title 
    5, United States Code, governing the appointment of employees in 
    the civil service;
        (2) prescribe the rates of basic pay for positions to which 
    employees are appointed under paragraph (1) at rates not in excess 
    of the maximum rate of basic pay authorized for senior-level 
    positions under section 5376 of title 5, United States Code, 
    notwithstanding any provision of such title governing the rates of 
    pay or classification of employees in the executive branch; and
        (3) pay any employee appointed under paragraph (1) payments in 
    addition to basic pay within the limit applicable to the employee 
    under subsection (d)(1).
    (c) Limitation on Term of Appointment.--(1) Except as provided in 
paragraph (2), the service of an employee under an appointment under 
subsection (b)(1) may not exceed 4 years.
    (2) The Secretary may, in the case of a particular employee, extend 
the period to which service is limited under paragraph (1) by up to 2 
years if the Secretary determines that such action is necessary to 
promote the efficiency of the Defense Advanced Research Projects 
Agency.
    (d) Limitations on Additional Payments.--(1) The total amount of 
the additional payments paid to an employee under subsection (b)(3) for 
any 12-month period may not exceed the least of the following amounts:
        (A) $25,000.
        (B) The amount equal to 25 percent of the employee's annual 
    rate of basic pay.
        (C) The amount of the limitation that is applicable for a 
    calendar year under section 5307(a)(1) of title 5, United States 
    Code.
    (2) An employee appointed under subsection (b)(1) is not eligible 
for any bonus, monetary award, or other monetary incentive for service 
except for payments authorized under subsection (b)(3).
    (e) Period of Program.--(1) The program authorized under this 
section shall terminate at the end of the 5-year period referred to in 
subsection (a).
    (2) After the termination of the program--
        (A) no appointment may be made under paragraph (1) of 
    subsection (b);
        (B) a rate of basic pay prescribed under paragraph (2) of that 
    subsection may not take effect for a position; and
        (C) no period of service may be extended under subsection 
    (c)(1).
    (f) Savings Provisions.--In the case of an employee who, on the day 
before the termination of the program, is serving in a position 
pursuant to an appointment under subsection (b)(1)--
        (1) the termination of the program does not terminate the 
    employee's employment in that position before the expiration of the 
    lesser of--
            (A) the period for which the employee was appointed; or
            (B) the period to which the employee's service is limited 
        under subsection (c), including any extension made under 
        paragraph (2) of that subsection before the termination of the 
        program; and
        (2) the rate of basic pay prescribed for the position under 
    subsection (b)(2) may not be reduced for so long (within the period 
    applicable to the employee under paragraph (1)) as the employee 
    continues to serve in the position without a break in service.
    (g) Annual Report.--(1) Not later than October 15 of each year, 
beginning in 1999 and ending in 2004, the Secretary of Defense shall 
submit a report on the program to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives. The report submitted in a year shall cover the 12-
month period ending on the day before the anniversary, in that year, of 
the date of the enactment of this Act.
    (2) The annual report shall contain, for the period covered by the 
report, the following:
        (A) A detailed discussion of the exercise of authority under 
    this section.
        (B) The sources from which individuals appointed under 
    subsection (b)(1) were recruited.
        (C) The methodology used for identifying and selecting such 
    individuals.
        (D) Any additional information that the Secretary considers 
    helpful for assessing the utility of the authority under this 
    section.

SEC. 1102. MAXIMUM PAY RATE COMPARABILITY FOR FACULTY MEMBERS OF THE 
              UNITED STATES AIR FORCE INSTITUTE OF TECHNOLOGY.

    Section 9314(b)(2)(B) of title 10, United States Code, is amended 
by striking out ``section 5306(e)'' and inserting in lieu thereof 
``section 5373''.

SEC. 1103. AUTHORITY FOR RELEASE TO COAST GUARD OF DRUG TEST RESULTS OF 
              CIVIL SERVICE MARINERS OF THE MILITARY SEALIFT COMMAND.

    (a) In General.--Chapter 643 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 7479. Civil service mariners of Military Sealift Command: 
            release of drug test results to Coast Guard

    ``(a) Release of Drug Test Results to Coast Guard.--The Secretary 
of the Navy may release to the Commandant of the Coast Guard the 
results of a drug test of any employee of the Department of the Navy 
who is employed in any capacity on board a vessel of the Military 
Sealift Command. Any such release shall be in accordance with the 
standards and procedures applicable to the disclosure and reporting to 
the Coast Guard of drug tests results and drug test records of 
individuals employed on vessels documented under the laws of the United 
States.
    ``(b) Waiver.--The results of a drug test of an employee may be 
released under subsection (a) without the prior written consent of the 
employee that is otherwise required under section 503(e) of the 
Supplemental Appropriations Act, 1987 (5 U.S.C. 7301 note).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``7479. Civil service mariners of Military Sealift Command: release of 
          drug test results to Coast Guard.''.

SEC. 1104. LIMITATIONS ON BACK PAY AWARDS.

    (a) In General.--Section 5596(b) of title 5, United States Code, is 
amended--
        (1) by redesignating paragraph (4) as paragraph (5); and
        (2) by inserting after paragraph (3) the following new 
    paragraph:
    ``(4) The pay, allowances, or differentials granted under this 
section for the period for which an unjustified or unwarranted 
personnel action was in effect shall not exceed that authorized by the 
applicable law, rule, regulations, or collective bargaining agreement 
under which the unjustified or unwarranted personnel action is found, 
except that in no case may pay, allowances, or differentials be granted 
under this section for a period beginning more than 6 years before the 
date of the filing of a timely appeal or, absent such filing, the date 
of the administrative determination.''.
    (b) Conforming Amendment.--Section 7121 of title 5, United States 
Code, is amended by adding at the end the following new subsection:
    ``(h) Settlements and awards under this chapter shall be subject to 
the limitations in section 5596(b)(4) of this title.''.

SEC. 1105. RESTORATION OF ANNUAL LEAVE ACCUMULATED BY CIVILIAN 
              EMPLOYEES AT INSTALLATIONS IN THE REPUBLIC OF PANAMA TO 
              BE CLOSED PURSUANT TO THE PANAMA CANAL TREATY OF 1977.

    Section 6304(d)(3)(A) of title 5, United States Code, is amended by 
inserting ``the closure of an installation of the Department of Defense 
in the Republic of Panama in accordance with the Panama Canal Treaty of 
1977,'' after ``2687 note) during any period,''.

SEC. 1106. REPEAL OF PROGRAM PROVIDING PREFERENCE FOR EMPLOYMENT OF 
              MILITARY SPOUSES IN MILITARY CHILD CARE FACILITIES.

    Section 1792 of title 10, United States Code, is amended--
        (1) by striking out subsection (d); and
        (2) by redesignating subsection (e) as subsection (d).

SEC. 1107. OBSERVANCE OF CERTAIN HOLIDAYS AT DUTY POSTS OUTSIDE THE 
              UNITED STATES.

    Section 6103(b) of title 5, United States Code, is amended by 
inserting after paragraph (2) the following new paragraph:
        ``(3) Instead of a holiday that is designated under subsection 
    (a) to occur on a Monday, for an employee at a duty post outside 
    the United States whose basic workweek is other than Monday through 
    Friday, and for whom Monday is a regularly scheduled workday, the 
    legal public holiday is the first workday of the workweek in which 
    the Monday designated for the observance of such holiday under 
    subsection (a) occurs.''.

SEC. 1108. CONTINUATION OF RANDOM DRUG TESTING PROGRAM FOR CERTAIN 
              DEPARTMENT OF DEFENSE EMPLOYEES.

    (a) Continuation of Existing Program.--The Secretary of Defense 
shall continue to actively carry out the drug testing program, 
originally required by section 3(a) of Executive Order No. 12564 (51 
Fed. Reg. 32889; September 15, 1986), involving civilian employees of 
the Department of Defense who are considered to be employees in 
sensitive positions. The Secretary shall comply with the drug testing 
procedures prescribed pursuant to section 4 of the Executive order.
    (b) Testing Upon Reasonable Suspicion of Illegal Drug Use.--The 
Secretary of Defense shall ensure that the drug testing program 
referred to in subsection (a) authorizes the testing of a civilian 
employee of the Department of Defense for illegal drug use when there 
is a reasonable suspicion that the employee uses illegal drugs.
    (c) Notification to Applicants.--The Secretary of Defense shall 
notify persons who apply for employment with the Department of Defense 
that, as a condition of employment by the Department, the person may be 
required to submit to drug testing under the drug testing program 
required by Executive Order No. 12564 (51 Fed. Reg. 32889; September 
15, 1986) pursuant to the terms of the Executive order.
    (d) Definitions.--In this section, the terms ``illegal drugs'' and 
``employee in a sensitive position'' have the meanings given such terms 
in section 7 of Executive Order No. 12564 (51 Fed. Reg. 32889; 
September 15, 1986).

SEC. 1109. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY RETIREMENT 
              AUTHORITY.

    (a) Civil Service Retirement System.--Section 8336 of title 5, 
United States Code, is amended--
        (1) in subsection (d)(2), by inserting ``except in the case of 
    an employee described in subsection (o)(1),'' after ``(2)''; and
        (2) by adding at the end the following:
    ``(o)(1) An employee of the Department of Defense who is separated 
from the service under conditions described in paragraph (2) after 
completing 25 years of service or after becoming 50 years of age and 
completing 20 years of service is entitled to an annuity.
    ``(2) Paragraph (1) applies to an employee who--
        ``(A) has been employed continuously by the Department of 
    Defense for more than 30 days before the date on which the 
    Secretary concerned requests the determinations required under 
    subparagraph (D)(i);
        ``(B) is serving under an appointment that is not limited by 
    time;
        ``(C) has not received a decision notice of involuntary 
    separation for misconduct or unacceptable performance that is 
    pending decision; and
        ``(D) is separated from the service voluntarily during a period 
    in which--
            ``(i) the Department of Defense or the military department 
        or subordinate organization within the Department of Defense or 
        military department in which the employee is serving is 
        undergoing a major reorganization, a major reduction in force, 
        or a major transfer of function, and employees comprising a 
        significant percentage of the employees serving in that 
        department or organization are to be separated or subject to an 
        immediate reduction in the rate of basic pay (without regard to 
        subchapter VI of chapter 53, or comparable provisions of law), 
        as determined by the Office of Personnel Management (under 
        regulations prescribed by the Office) upon the request of the 
        Secretary concerned; and
            ``(ii) the employee is within the scope of an offer of 
        voluntary early retirement (as defined by organizational unit, 
        occupational series or level, geographical location, any other 
        similar factor that the Office of Personnel Management 
        determines appropriate, or any combination of such definitions 
        of scope), as determined by the Secretary concerned under 
        regulations prescribed by the Office.
    ``(3) In this subsection, the term `Secretary concerned' means--
        ``(A) the Secretary of Defense, with respect to an employee of 
    the Department of Defense not employed in a position in a military 
    department;
        ``(B) the Secretary of the Army, with respect to an employee of 
    the Department of the Army;
        ``(C) the Secretary of the Navy, with respect to an employee of 
    the Department of the Navy; and
        ``(D) the Secretary of the Air Force, with respect to an 
    employee of the Department of the Air Force.''.
    (b) Federal Employees' Retirement System.--Section 8414 of such 
title is amended--
        (1) in subsection (b)(1)(B), by inserting ``except in the case 
    of an employee described in subsection (d)(1),'' after ``(B)''; and
        (2) by adding at the end the following:
    ``(d)(1) An employee of the Department of Defense who is separated 
from the service under conditions described in paragraph (2) after 
completing 25 years of service or after becoming 50 years of age and 
completing 20 years of service is entitled to an annuity.
    ``(2) Paragraph (1) applies to an employee who--
        ``(A) has been employed continuously by the Department of 
    Defense for more than 30 days before the date on which the 
    Secretary concerned requests the determinations required under 
    subparagraph (D)(i);
        ``(B) is serving under an appointment that is not limited by 
    time;
        ``(C) has not received a decision notice of involuntary 
    separation for misconduct or unacceptable performance that is 
    pending decision; and
        ``(D) is separated from the service voluntarily during a period 
    in which--
            ``(i) the Department of Defense or the military department 
        or subordinate organization within the Department of Defense or 
        military department in which the employee is serving is 
        undergoing a major reorganization, a major reduction in force, 
        or a major transfer of function, and employees comprising a 
        significant percentage of the employees serving in that 
        department or organization are to be separated or subject to an 
        immediate reduction in the rate of basic pay (without regard to 
        subchapter VI of chapter 53, or comparable provisions of law), 
        as determined by the Office of Personnel Management (under 
        regulations prescribed by the Office) upon the request of the 
        Secretary concerned; and
            ``(ii) the employee is within the scope of an offer of 
        voluntary early retirement (as defined by organizational unit, 
        occupational series or level, geographical location, any other 
        similar factor that the Office of Personnel Management 
        determines appropriate, or any combination of such definitions 
        of scope), as determined by the Secretary concerned under 
        regulations prescribed by the Office.
    ``(3) In this subsection, the term `Secretary concerned' means--
        ``(A) the Secretary of Defense, with respect to an employee of 
    the Department of Defense not employed in a position in a military 
    department;
        ``(B) the Secretary of the Army, with respect to an employee of 
    the Department of the Army;
        ``(C) the Secretary of the Navy, with respect to an employee of 
    the Department of the Navy; and
        ``(D) the Secretary of the Air Force, with respect to an 
    employee of the Department of the Air Force.''.
    (c) Conforming Amendments.--(1) Section 8339(h) of such title is 
amended by striking out ``or (j)'' in the first sentence and inserting 
in lieu thereof ``(j), or (o)''.
    (2) Section 8464(a)(1)(A)(i) of such title is amended by striking 
out ``or (b)(1)(B)'' and inserting in lieu thereof ``, (b)(1)(B), or 
(d)''.
    (d) Effective Date; Applicability.--The amendments made by this 
section--
        (1) shall take effect on October 1, 2000; and
        (2) shall apply with respect to an approval for voluntary early 
    retirement made on or after that date.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec.1201.Findings.
Sec.1202.Sense of Congress.
Sec.1203.Presidential reports.
Sec.1204.Secretary of Defense reports on operations in Bosnia and 
          Herzegovina.
Sec.1205.Definitions.

         Subtitle B--Matters Relating to Contingency Operations

Sec.1211.Report on involvement of Armed Forces in contingency and 
          ongoing operations.
Sec.1212.Submission of report on objectives of a contingency operation 
          with requests for funding for the operation.

             Subtitle C--Matters Relating to NATO and Europe

Sec.1221.Limitation on United States share of costs of NATO expansion.
Sec.1222.Report on military capabilities of an expanded NATO alliance.
Sec.1223.Reports on the development of the European security and defense 
          identity.

                        Subtitle D--Other Matters

Sec.1231.Limitation on assignment of United States forces for certain 
          United Nations purposes.
Sec.1232.Prohibition on restriction of Armed Forces under Kyoto Protocol 
          to the United Nations Framework Convention on Climate Change.
Sec.1233.Defense burdensharing.
Sec.1234.Transfer of excess UH-1 Huey and AH-1 Cobra helicopters to 
          foreign countries.
Sec.1235.Transfers of naval vessels to certain foreign countries.
Sec.1236.Repeal of landmine moratorium.
Sec.1237.Application of authorities under the International Emergency 
          Economic Powers Act to Communist Chinese military companies.

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

SEC. 1201. FINDINGS.

    Congress makes the following findings:
        (1) The contributions of the people of the United States and 
    other nations have, in large measure, resulted in the suspension of 
    fighting and alleviated the suffering of the people of Bosnia and 
    Herzegovina since December 1995.
        (2) The United States has expended approximately $9,500,000,000 
    between 1992 and mid-1998 just in support of the United States 
    military operations in Bosnia to achieve those results.
        (3) Efforts to restore the economy and political structure in 
    Bosnia and Herzegovina have achieved some success in accordance 
    with the Dayton Accords.
        (4) On March 3, 1998, the President certified to Congress (A) 
    that the continued presence of United States forces in Bosnia and 
    Herzegovina after June 30, 1998, was required in order to meet the 
    national security interests of the United States, and (B) that 
    United States Armed Forces will not serve as, or be used as, civil 
    police in Bosnia and Herzegovina.
        (5) With that certification, the President submitted to 
    Congress a report stating that the goal of the military presence in 
    Bosnia and Herzegovina is to establish the conditions under which 
    implementation of the Dayton Accords can continue without the 
    support of a major NATO-led military force and setting forth the 
    criteria for determining when that goal has been accomplished.
        (6) Since the administration has not specified how long 
    achievement of that goal is expected to take, the mission of United 
    States ground combat forces in Bosnia and Herzegovina is 
    essentially of indefinite duration.
        (7) The NATO operations plan for the Stabilization Force 
    (Operations Plan 10407, which went into effect on June 20, 1998, 
    after approval by allied foreign ministers) incorporates all of the 
    benchmarks set forth in the report referred to in paragraph (5) and 
    states that the Stabilization Force will develop detailed criteria 
    for assessing progress in achieving those benchmarks in close 
    coordination with key international organizations participating in 
    civilian implementation of the Dayton Accords.
        (8) The military representatives of NATO member nations have 
    been tasked by the North Atlantic Council to provide estimates of 
    the time likely to be required for implementation of the Dayton 
    Accords.
        (9) NATO has decided to conduct formal reviews when appropriate 
    (but at intervals of not more than 6 months) to assess the security 
    situation and the progress being made in the implementation of the 
    civil aspects of the Dayton Accords. Those reviews will enable the 
    Alliance to make decisions as to reductions in the size or the 
    Stabilization Force, leading to its eventual full withdrawal.
        (10) NATO has approved the creation of a multinational 
    specialized unit of gendarmes or paramilitary police composed of 
    European security forces to help promote public security in Bosnia 
    and Herzegovina as a part of the post-June 1998 mission for the 
    Stabilization Force.
        (11) The limit established for spending by the United States 
    for the defense discretionary budget category for fiscal year 1998 
    in the Balanced Budget and Emergency Deficit Control Act of 1985 
    does not take into account the continued deployment of United 
    States forces in Bosnia and Herzegovina after June 30, 1998, 
    leading to the request by the President for emergency supplemental 
    appropriations for the Bosnia and Herzegovina mission through 
    September 30, 1998.
        (12) Amounts for Department of Defense operations in Bosnia and 
    Herzegovina during fiscal year 1999 were not included in the budget 
    of the President for fiscal year 1999, as submitted to Congress on 
    February 2, 1998.
        (13) The President requested $1,858,600,000 in emergency 
    appropriations in his March 4, 1998, amendment to the fiscal year 
    1999 budget to cover the shortfall in funding in fiscal year 1999 
    for the costs of extending the mission in Bosnia.

SEC. 1202. SENSE OF CONGRESS.

    (a) Sense of Congress Concerning United States Forces and 
Accomplishment of Tasks in Bosnia and Herzegovina.--It is the sense of 
Congress that--
        (1) United States ground combat forces should not remain in 
    Bosnia and Herzegovina indefinitely in view of the worldwide 
    commitments of the Armed Forces of the United States;
        (2) the President should work with NATO allies and the other 
    nations whose military forces are participating in the NATO-led 
    Stabilization Force to withdraw United States ground combat forces 
    from Bosnia and Herzegovina within a reasonable period of time, 
    consistent with the safety of those forces and the accomplishment 
    of the Stabilization Force's military tasks;
        (3) a NATO-led force without the participation of United States 
    ground combat forces in Bosnia and Herzegovina might be suitable 
    for a follow-on force for Bosnia and Herzegovina if the European 
    Security and Defense Identity is not sufficiently developed or is 
    otherwise considered inappropriate for such a mission; and
        (4) the United States may decide to provide appropriate support 
    to a Western European Union-led or NATO-led follow-on force for 
    Bosnia and Herzegovina, including command and control, 
    intelligence, logistics, and, if necessary, a ready reserve force 
    in the region.
    (b) Sense of Congress Concerning Presidential Actions.--It is the 
sense of Congress that the President--
        (1) should inform the European NATO allies of the expression of 
    the sense of Congress in subsection (a) and should strongly urge 
    them to undertake preparations for establishing a Western European 
    Union-led or a NATO-led force as a follow-on force to the 
    Stabilization Force if needed to maintain peace and stability in 
    Bosnia and Herzegovina; and
        (2) should consult closely with the congressional leadership 
    and the congressional defense committees with respect to the 
    progress being made toward achieving a sustainable peace in Bosnia 
    and Herzegovina and the progress being made toward a reduction and 
    ultimate withdrawal of United States ground combat forces from 
    Bosnia and Herzegovina.
    (c) Sense of Congress Concerning Defense Budget.--It is the sense 
of Congress that--
        (1) the President should include in the budget for the 
    Department of Defense that the President submits to Congress under 
    section 1105(a) of title 31, United States Code, for each fiscal 
    year sufficient amounts to pay for any proposed continuation of the 
    participation of United States forces in NATO operations in Bosnia 
    and Herzegovina during that fiscal year; and
        (2) amounts included in the budget for the purpose stated in 
    paragraph (1) should be over and above the defense discretionary 
    estimates as identified in the Bipartisan Budget Agreement of May 
    16, 1997 and the fiscal year 1998 concurrent budget resolution and 
    not be transferred from amounts in the budget of any other agency 
    of the executive branch, but instead should be an overall increase 
    in the budget for the Department of Defense and the discretionary 
    spending limits in the Balanced Budget Act of 1997.

SEC. 1203. PRESIDENTIAL REPORTS.

    (a) Required Reports.--The President shall ensure that the 
semiannual reports required by section 7(b) of the general provisions 
of chapter I of the 1998 Supplemental Appropriations and Rescissions 
Act (Public Law 105-174; 112 Stat. 64) are submitted to Congress in a 
timely manner as long as United States ground combat forces continue to 
participate in the Stabilization Force (SFOR). In addition, whenever 
the President submits to Congress a request for funds for continued 
operations of United States forces in Bosnia and Herzegovina, the 
President shall submit a supplemental report providing information to 
update Congress on developments since the last semiannual report.
    (b) Required Information.--In addition to the information required 
by the section referred to in subsection (a) to be included in a report 
under that section, each report under that section or under subsection 
(a) shall include the following:
        (1) The expected duration of the deployment of United States 
    ground combat forces in Bosnia and Herzegovina in support of 
    implementation of the benchmarks set forth in the President's 
    report of March 3, 1998 (referred to in section 1201(5)) for 
    achieving a sustainable peace process.
        (2) The percentage of those benchmarks that have been completed 
    as of the date of the report, the percentage that are expected to 
    be completed within the next reporting period, and the expected 
    time for completion of the remaining tasks.
        (3) The status of the NATO force of gendarmes or paramilitary 
    police, including the mission of the force, the composition of the 
    force, and the extent, if any, to which members of the Armed Forces 
    of the United States are participating (or are to participate) in 
    the force.
        (4) The military and nonmilitary missions that the President 
    has directed for United States forces in Bosnia and Herzegovina, 
    including a specific discussion of--
            (A) the mission of those forces, if any, in connection with 
        the pursuit and apprehension of war criminals;
            (B) the mission of those forces, if any, in connection with 
        civilian police functions;
            (C) the mission of those forces, if any, in connection with 
        the resettlement of refugees; and
            (D) the missions undertaken by those forces, if any, in 
        support of international and local civilian authorities.
        (5) An assessment of the risk for the United States forces in 
    Bosnia and Herzegovina, including, for each mission identified 
    pursuant to paragraph (4), the assessment of the Chairman of the 
    Joint Chiefs of Staff regarding the nature and level of risk of the 
    mission for the safety and well-being of United States military 
    personnel.
        (6) An assessment of the cost to the United States, by fiscal 
    year, of carrying out the missions identified pursuant to paragraph 
    (4) and a detailed projection of any additional funding that will 
    be required by the Department of Defense to meet mission 
    requirements for those operations for the remainder of the fiscal 
    year.
        (7) A joint assessment by the Secretary of Defense and the 
    Secretary of State of the status of planning for--
            (A) the assumption of all remaining military missions 
        inside Bosnia and Herzegovina by European military and 
        paramilitary forces; and
            (B) the establishment and support of a forward-based United 
        States rapid response force outside of Bosnia and Herzegovina 
        that would be capable of deploying rapidly to defeat military 
        threats to a European follow-on force inside Bosnia and 
        Herzegovina and of providing whatever logistical, intelligence, 
        and air support is needed to ensure that a European follow-on 
        force is fully capable of accomplishing its missions under the 
        Dayton Accords.

SEC. 1204. SECRETARY OF DEFENSE REPORTS ON OPERATIONS IN BOSNIA AND 
              HERZEGOVINA.

    (a) Report on Effects on Capabilities of United States Military 
Forces.--Not later than December 15, 1998, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
effects of military operations in Bosnia and Herzegovina and the 
Balkans region on the capabilities of United States military forces. 
The report shall, in particular, describe the effects of those 
operations on the capability of United States military forces to 
conduct successfully two nearly simultaneous major theater wars as 
specified in current Defense Planning Guidance and in accordance with 
the deployment timelines called for in the war plans of the commanders 
of the unified combatant commands.
    (b) Additional Reports.--Whenever the number of United States 
ground combat forces in Bosnia and Herzegovina increases or decreases 
by 20 percent or more compared to the number of such forces as of the 
most recent previous report under this section, the Secretary shall 
submit an additional report as specified in subsection (a). Any such 
additional report shall be submitted within 30 days of the date on 
which the requirement to submit the report becomes effective under the 
preceding sentence.
    (c) Matters To Be Included.--The Secretary shall include in each 
report under this section information with respect to the effects of 
military operations in Bosnia and Herzegovina and the Balkans region on 
the capabilities of United States military forces to conduct 
successfully two nearly simultaneous major theater wars as specified in 
current Defense Planning Guidance and in accordance with the deployment 
timelines called for in the war plans of the commanders of the unified 
combatant commands. Such information shall include information on the 
effects of those operations on anticipated deployment plans for major 
theater wars in Southwest Asia or on the Korean peninsula, including 
the following:
        (1) Deficiencies or delays in deployment of strategic lift, 
    logistics support and infrastructure, ammunition (including 
    precision guided munitions), support forces, intelligence assets, 
    follow-on forces used for planned counteroffensives, and similar 
    forces.
        (2) Additional planned reserve component mobilization, 
    including specific units to be ordered to active duty and required 
    dates for activation of presidential call-up authority.
        (3) Specific plans and timelines for redeployment of United 
    States forces from Bosnia and Herzegovina, the Balkans region, or 
    supporting forces in the region, to both the first and second major 
    theater war.
        (4) Preventative actions or deployments involving United States 
    forces in Bosnia and Herzegovina and the Balkans region that would 
    be taken in the event of a single theater war to deter the outbreak 
    of a second theater war.
        (5) Specific plans and timelines to replace forces deployed to 
    Bosnia and Herzegovina, the Balkans region, or the surrounding 
    region to maintain United States military presence.
        (6) An assessment, undertaken in consultation with the Chairman 
    of the Joint Chiefs of Staff and the commanders of the unified 
    combatant commands, of the level of increased risk to successful 
    conduct of the major theater wars and the maintenance of security 
    and stability in Bosnia and Herzegovina and the Balkans region, by 
    the requirement to redeploy forces from Bosnia and the Balkans in 
    the event of a major theater war.

SEC. 1205. DEFINITIONS.

    As used in this subtitle:
        (1) Dayton peace accords.--The term ``Dayton Peace Accords'' 
    means the General Framework Agreement for Peace in Bosnia and 
    Herzegovina, initialed by the parties in Dayton, Ohio, on November 
    21, 1995, and signed in Paris on December 14, 1995.
        (2) Stabilization force.--The term ``Stabilization Force'' 
    means the NATO-led force in Bosnia and Herzegovina and other 
    countries in the region (referred to as ``SFOR''), authorized under 
    United Nations Security Council Resolution 1088 (December 12, 
    1996).
        (3) NATO.--The term ``NATO'' means the North Atlantic Treaty 
    Organization.

         Subtitle B--Matters Relating to Contingency Operations

SEC. 1211. REPORT ON INVOLVEMENT OF ARMED FORCES IN CONTINGENCY AND 
              ONGOING OPERATIONS.

    (a) Report Required.--Not later than January 31, 1999, the 
Secretary of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives a report on the involvement of the Armed Forces in 
major contingency operations and major ongoing operations since the end 
of the Persian Gulf War. The report shall include the following:
        (1) A discussion of the effects of the involvement of the Armed 
    Forces in those operations on retention of personnel in the Armed 
    Forces, shown in the aggregate and separately for officers and 
    enlisted personnel.
        (2) The extent to which the use of combat support and combat 
    service support personnel and equipment of the Armed Forces in 
    those operations has resulted in shortages of Armed Forces 
    personnel and equipment in other regions of the world.
        (3) The accounts from which funds have been drawn to pay for 
    those operations and the specific programs for which those funds 
    were available until diverted to pay for those operations.
        (4) For each such operation--
            (A) a statement of the vital interests of the United States 
        that are involved in the operation or, if none, the interests 
        of the United States that are involved in the operation and a 
        characterization of those interests;
            (B) a statement of what clear and distinct objectives guide 
        the activities of United States forces in the operation; and
            (C) a statement of what the President has identified on the 
        basis of those objectives as the date, or the set of 
        conditions, that defines the end of the operation.
    (b) Form of Report.--The report shall be submitted in unclassified 
form, but may also be submitted in a classified form if necessary.
    (c) Major Operation Defined.--For the purposes of this section, a 
contingency operation or an ongoing operation is a major contingency 
operation or a major ongoing operation, respectively, if the operation 
involves the deployment of more than 500 members of the Armed Forces.

SEC. 1212. SUBMISSION OF REPORT ON OBJECTIVES OF A CONTINGENCY 
              OPERATION WITH REQUESTS FOR FUNDING FOR THE OPERATION.

    (a) Findings.--Congress makes the following findings:
        (1) On May 3, 1994, the President issued Presidential Decision 
    Directive 25 declaring that American participation in United 
    Nations and other peace operations would depend in part on whether 
    the role of United States forces is tied to clear objectives and an 
    endpoint for United States participation can be identified.
        (2) Between that date and mid-1998, the President and other 
    executive branch officials have obligated or requested 
    appropriations of approximately $9,400,000,000 for military-related 
    operations throughout Bosnia and Herzegovina without providing to 
    Congress, in conjunction with the budget submission for any fiscal 
    year, a strategic plan for such operations under the criteria set 
    forth in that Presidential Decision Directive.
        (3) Between November 27, 1995, and mid-1998 the President has 
    established three deadlines, since elapsed, for the termination of 
    United States military-related operations throughout Bosnia and 
    Herzegovina.
        (4) On December 17, 1997, the President announced that United 
    States ground combat forces would remain in Bosnia and Herzegovina 
    for an unknown period of time.
        (5) Approximately 47,880 United States military personnel 
    (excluding personnel serving in units assigned to the Republic of 
    Korea) have participated in 14 international contingency operations 
    between fiscal years 1991 and 1998.
        (6) The 1998 posture statements of the Navy and Air Force 
    included declarations that the pace of military operations over 
    fiscal year 1997 adversely affected the readiness of non-deployed 
    forces, personnel retention rates, and spare parts inventories of 
    the Navy and Air Force.
    (b) Information To Be Reported With Funding Requests.--Section 113 
of title 10, United States Code, is amended by adding after subsection 
(l), as added by section 915, the following new subsection:
    ``(m) Information To Accompany Funding Request for Contingency 
Operation.--Whenever the President submits to Congress a request for 
appropriations for costs associated with a contingency operation that 
involves, or likely will involve, the deployment of more than 500 
members of the armed forces, the Secretary of Defense shall submit to 
Congress a report on the objectives of the operation. The report shall 
include a discussion of the following:
        ``(1) What clear and distinct objectives guide the activities 
    of United States forces in the operation.
        ``(2) What the President has identified on the basis of those 
    objectives as the date, or the set of conditions, that defines the 
    endpoint of the operation.''.

            Subtitle C--Matters Relating to NATO and Europe

SEC. 1221. LIMITATION ON UNITED STATES SHARE OF COSTS OF NATO 
              EXPANSION.

    (a) Limitation.--The United States share of defined NATO expansion 
costs may not exceed the lesser of--
        (1) the amount equal to 25 percent of those costs; or
        (2) $2,000,000,000.
    (b) Defined NATO Expansion Costs.--For purposes of subsection (a), 
the term ``defined NATO expansion costs'' means the commonly funded 
costs of the North Atlantic Treaty Organization (NATO) during fiscal 
years 1999 through 2011 for enlargement of NATO due to the admission to 
NATO of Poland, Hungary, and the Czech Republic.

SEC. 1222. REPORT ON MILITARY CAPABILITIES OF AN EXPANDED NATO 
              ALLIANCE.

    (a) Report.--The Secretary of Defense shall prepare a report, in 
both classified and unclassified form, on the planned future military 
capabilities of the North Atlantic Treaty Organization (NATO) with the 
anticipated accession of Poland, the Czech Republic, and Hungary to the 
NATO alliance. The report shall set forth the following:
        (1) An assessment of the tactical, operational, and strategic 
    military requirements, including interoperability, reinforcement, 
    and force modernization issues, as well as strategic and 
    territorial issues, that are raised by the inclusion of Poland, the 
    Czech Republic, and Hungary in the NATO alliance.
        (2) The minimum military requirements to be satisfied by those 
    countries before accession to the NATO alliance in April 1999.
        (3) The improvements to common alliance military assets that 
    are necessary as a result of expanding the NATO alliance to include 
    those nations.
        (4) The improvements to national capabilities of current NATO 
    members that would be necessitated by the inclusion of those 
    nations in the alliance.
        (5) The necessary improvements to national capabilities of the 
    military forces of those new member nations.
        (6) Any additional necessary improvements to common alliance 
    military assets of the military forces of those new members for 
    which funds are not planned to be included in the NATO budget.
        (7) The additional requirements, related to NATO expansion, 
    that the United States would agree to assist each new member nation 
    to meet on a bilateral basis.
    (b) Matters To Be Included.--The report shall include the 
following:
        (1) An assessment of the tactical and operational capabilities 
    of the military forces of Poland, the Czech Republic, and Hungary.
        (2) An assessment of the ability of each such new member nation 
    to meet the minimum military requirements upon accession to the 
    NATO alliance in April 1999, and the ability of that nation to 
    provide logistical, command and control, and other vital 
    infrastructure required for alliance defense (as specified in 
    Article V of the NATO Charter), including a description in general 
    terms of alliance plans for reinforcing each new NATO member nation 
    during a crisis or war and detailing means for deploying both 
    United States and other NATO forces from current member states and 
    from the continental United States or other United States bases 
    worldwide and, in particular, describing plans for ground 
    reinforcement of Hungary.
        (3) An assessment of the ability of the current and new 
    alliance members to deploy and sustain combat forces in alliance 
    defense missions conducted in the territory of any of the new 
    member nations, as specified in Article V of the NATO Charter.
        (4) A description of projected defense programs through 2009 
    (shown on an annual basis and cumulatively) of each current and new 
    alliance member nation--
            (A) including planned investments in capabilities pursuant 
        to Article V to ensure that--
                (i) the nation's military force structure, defense 
            planning, command structures, and force goals promote 
            NATO's capacity to project power when the security of a 
            NATO member is threatened; and
                (ii) NATO members possess national military 
            capabilities to rapidly deploy forces over long distances, 
            sustain operations for extended periods, and operate 
            jointly with the United States in high intensity conflicts 
            as well as potential alliance contingency operations;
            (B) showing both planned national efforts as well as 
        planned alliance common efforts; and
            (C) describing any deficiencies in investments by current 
        or new alliance member nations.
        (5) A detailed comparison and description of the differences in 
    scope, methodology, and assessments of common alliance or national 
    responsibilities, or any other factor related to alliance 
    capabilities between (A) the report on alliance expansion costs 
    prepared by the Department of Defense (in the report submitted to 
    Congress in February 1998 entitled ``Report to the Congress on the 
    Military Requirements and Costs of NATO Enlargement''), and (B) the 
    report on alliance expansion costs prepared by NATO collectively 
    and referred to as the ``NATO estimate'', issued at Brussels in 
    November 1997.
        (6) Any other factor that, in the judgment of the Secretary of 
    Defense, bears upon the strategic, operational, or tactical 
    military capabilities of an expanded NATO alliance.
    (c) Submission of Report.--The report shall be submitted to 
Congress not later than March 15, 1999.

SEC. 1223. REPORTS ON THE DEVELOPMENT OF THE EUROPEAN SECURITY AND 
              DEFENSE IDENTITY.

    (a) Requirement for Reports.--The Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives in accordance with 
this section reports on the development of the European Security and 
Defense Identity (ESDI) within the NATO Alliance that would enable the 
Western European Union (WEU), with the consent of the NATO Alliance, to 
assume the political control and strategic direction of NATO assets and 
capabilities made available by the Alliance.
    (b) Reports To Be Submitted.--The reports required to be submitted 
under subsection (a) are as follows:
        (1) An initial report, submitted not later than December 15, 
    1998, that contains a discussion of the actions taken, and the 
    plans for future actions, to build the European Security and 
    Defense Identity, together with the matters required under 
    subsection (c).
        (2) A semiannual report on the progress made toward 
    establishing the European Security and Defense Identity, submitted 
    not later than June 15 and December 15 of each year after 1998.
    (c) Content of Reports.--The Secretary shall include in each report 
under this section the following:
        (1) A discussion of the arrangements between NATO and the 
    Western European Union for the release, transfer, monitoring, 
    return, and recall of NATO assets and capabilities.
        (2) A discussion of the development of such planning and other 
    capabilities by the Western European Union that are necessary to 
    provide political control and strategic direction of NATO assets 
    and capabilities.
        (3) A discussion of the development of terms of reference for 
    the Deputy Supreme Allied Commander, Europe, with respect to the 
    European Security and Defense Identity.
        (4) A discussion of the arrangements for the assignment or 
    appointment of NATO officers to serve in two positions concurrently 
    (commonly referred to as ``dual-hatting'').
        (5) A discussion of the development of the Combined Joint Task 
    Force (CJTF) concept, including lessons-learned from the NATO-led 
    Stabilization Force in Bosnia.
        (6) Identification within the NATO Alliance of the types of 
    separable but not separate capabilities, assets, and support assets 
    for Western European Union-led operations.
        (7) Identification of separable but not separate headquarters, 
    headquarters elements, and command positions for command and 
    conduct of Western European Union-led operations.
        (8) The conduct by NATO, at the request of and in coordination 
    with the Western European Union, of military planning and exercises 
    for illustrative missions.
        (9) A discussion of the arrangements between NATO and the 
    Western European Union for the sharing of information, including 
    intelligence.
        (10) Such other information as the Secretary considers useful 
    for a complete understanding of the establishment of the European 
    Security and Defense Identity within the NATO Alliance.
    (d) Termination of Reporting Requirement.--The requirement to 
submit reports under subsection (b)(2) terminates upon the submission 
by the Secretary under that subsection of a report in which the 
Secretary states that the European Security and Defense Identity has 
been fully established.

                       Subtitle D--Other Matters

SEC. 1231. LIMITATION ON ASSIGNMENT OF UNITED STATES FORCES FOR CERTAIN 
              UNITED NATIONS PURPOSES.

    (a) Limitation on Participation in United Nations Rapidly 
Deployable Mission Headquarters.--If members of the Armed Forces are 
assigned during fiscal year 1999 to the United Nations Rapidly 
Deployable Mission Headquarters, the number of members so assigned may 
not exceed eight at any time during that year.
    (b) Prohibition.--No funds available to the Department of Defense 
may be used--
        (1) for a monetary contribution to the United Nations for the 
    establishment of a standing international force under the United 
    Nations; or
        (2) to assign or detail any member of the Armed Forces to duty 
    with a United Nations Stand By Force.

SEC. 1232. PROHIBITION ON RESTRICTION OF ARMED FORCES UNDER KYOTO 
              PROTOCOL TO THE UNITED NATIONS FRAMEWORK CONVENTION ON 
              CLIMATE CHANGE.

    (a) In General.--Notwithstanding any other provision of law, no 
provision of the Kyoto Protocol to the United Nations Framework 
Convention on Climate Change, or any regulation issued pursuant to such 
protocol, shall restrict the training or operations of the United 
States Armed Forces or limit the military equipment procured by the 
United States Armed Forces.
    (b) Waiver.--A provision of law may not be construed as modifying 
or superseding the provisions of subsection (a) unless that provision 
of law--
        (1) specifically refers to this section; and
        (2) specifically states that such provision of law modifies or 
    supersedes the provisions of this section.
    (c) Matters Not Affected.--Nothing in this section shall be 
construed to preclude the Department of Defense from implementing any 
measure to achieve efficiencies or for any other reason independent of 
the Kyoto Protocol.

SEC. 1233. DEFENSE BURDENSHARING.

    (a) Revised Goals for Efforts To Increase Allied Burdensharing.--
Effective October 1, 1998, subsection (a) of section 1221 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1935; 22 U.S.C. 1928 note) is amended--
        (1) in paragraph (2), by striking out ``September 30, 1998'' 
    and inserting in lieu thereof ``September 30, 1999'';
        (2) in paragraph (3)--
            (A) by striking out ``economic'' and all that follows 
        through ``rights'' and inserting in lieu thereof ``governmental 
        accountability and transparency, economic stabilization and 
        development, defense economic conversion, respect for the rule 
        of law and internationally recognized human rights, and 
        humanitarian relief efforts)''; and
            (B) by striking out ``at least to a level commensurate to 
        that of the United States by September 30, 1998'' and inserting 
        in lieu thereof ``to provide such foreign assistance at an 
        annual rate that is not less than one percent of its gross 
        domestic product, by September 30, 1999''; and
        (3) in paragraph (4)--
            (A) by striking out ``amount of'';
            (B) by striking out ``, or would be prepared to 
        contribute,'' and inserting in lieu thereof ``or has pledged to 
        contribute''; and
            (C) by inserting before the period at the end the 
        following: ``by 10 percent by September 30, 1999''.
    (b) Revised Requirement for Report on Progress in Increasing Allied 
Burdensharing.--Subsection (c) of such section is amended--
        (1) by striking out ``March 1, 1998'' in the matter preceding 
    paragraph (1) and inserting in lieu thereof ``March 1, 1999''; and
        (2) in paragraph (3), by striking out ``March 1, 1996'' and all 
    that follows through the semicolon and inserting in lieu thereof 
    ``October 1, 1996, and ending on September 30, 1997, and during the 
    period beginning on October 1, 1997, and ending on September 30, 
    1998, or, in the case of any nation for which the data for such 
    periods is inadequate, the difference between the amounts for the 
    latest periods for which adequate data is available;''.
    (c) Extension of Deadline for Report Regarding National Security 
Bases for Forward Deployment and Burdensharing Relationships.--
Subsection (d)(2) of such section is amended by striking out ``March 1, 
1998'' and inserting in lieu thereof ``March 1, 1999''.

SEC. 1234. TRANSFER OF EXCESS UH-1 HUEY AND AH-1 COBRA HELICOPTERS TO 
              FOREIGN COUNTRIES.

    (a) In General.--Chapter 153 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements 
            for transfer to foreign countries

    ``(a) Requirements.--(1) Before an excess UH-1 Huey helicopter or 
AH-1 Cobra helicopter is transferred on a grant or sales basis to a 
foreign country for the purpose of flight operations by that country, 
the Secretary of Defense shall make all reasonable efforts to ensure 
that the helicopter receives, to the extent necessary, maintenance and 
repair equivalent to the depot-level maintenance and repair (as defined 
in section 2460 of this title) that the helicopter would need were the 
helicopter to remain in operational use with the armed forces. Any such 
maintenance and repair work shall be performed at no cost to the 
Department of Defense.
    ``(2) The Secretary shall make all reasonable efforts to ensure 
that maintenance and repair work described in paragraph (1) is 
performed in the United States.
    ``(b) Exception.--Subsection (a) does not apply with respect to 
salvage helicopters provided to the foreign country solely as a source 
for spare parts.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements for 
          transfer to foreign countries.''.

SEC. 1235. TRANSFERS OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

    (a) Transfers by Grant.--The Secretary of the Navy is authorized to 
transfer vessels to foreign countries on a grant basis under section 
516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:
        (1) To the Government of Argentina, the NEWPORT class tank 
    landing ship NEWPORT (LST 1179).
        (2) To the Government of Greece--
            (A) the KNOX class frigate HEPBURN (FF 1055); and
            (B) the ADAMS class guided missile destroyers STRAUSS (DDG 
        16), SEMMS (DDG 18), and WADDELL (DDG 24).
        (3) To the Government of Portugal, the STALWART class ocean 
    surveillance ship ASSURANCE (T-AGOS 5).
        (4) To the Government of Turkey, the KNOX class frigates PAUL 
    (FF 1080), MILLER (FF 1091), and W.S. SIMMS (FF 1059).
    (b) Transfers by Sale.--The Secretary of the Navy is authorized to 
transfer vessels to foreign countries on a sales basis under section 21 
of the Arms Export Control Act (22 U.S.C. 2761) as follows:
        (1) To the Government of Brazil, the NEWPORT class tank landing 
    ships CAYUGA (LST 1186) and PEORIA (LST 1183).
        (2) To the Government of Chile--
            (A) the NEWPORT class tank landing ship SAN BERNARDINO (LST 
        1189); and
            (B) the auxiliary repair dry dock WATERFORD (ARD 5).
        (3) To the Government of Greece--
            (A) the OAK RIDGE class medium dry dock ALAMAGORDO (ARDM 
        2); and
            (B) the KNOX class frigates VREELAND (FF 1068) and TRIPPE 
        (FF 1075).
        (4) To the Government of Mexico--
            (A) the auxiliary repair dock SAN ONOFRE (ARD 30); and
            (B) the KNOX class frigate PHARRIS (FF 1094).
        (5) To the Government of the Philippines, the STALWART class 
    ocean surveillance ship TRIUMPH (T-AGOS 4).
        (6) To the Government of Spain, the NEWPORT class tank landing 
    ships HARLAN COUNTY (LST 1196) and BARNSTABLE COUNTY (LST 1197).
        (7) To the Taipai Economic and Cultural Representative Office 
    in the United States (the Taiwan instrumentality that is designated 
    pursuant to section 10(a) of the Taiwan Relations Act)--
            (A) the KNOX class frigates PEARY (FF 1073), JOSEPH HEWES 
        (FF 1078), COOK (FF 1083), BREWTON (FF 1086), KIRK (FF 1987), 
        and BARBEY (FF 1088);
            (B) the NEWPORT class tank landing ships MANITOWOC (LST 
        1180) and SUMTER (LST 1181);
            (C) the floating dry dock COMPETENT (AFDM 6); and
            (D) the ANCHORAGE class dock landing ship PENSACOLA (LSD 
        38).
        (8) To the Government of Turkey--
            (A) the OLIVER HAZARD PERRY class guided missile frigates 
        MAHLON S. TISDALE (FFG 27), REID (FFG 30), and DUNCAN (FFG 10); 
        and
            (B) the KNOX class frigates REASONER (FF 1063), FANNING (FF 
        1076), BOWEN (FF 1079), MCCANDLESS (FF 1084), DONALD BEARY (FF 
        1085), AINSWORTH (FF 1090), THOMAS C. HART (FF 1092), and 
        CAPODANNO (FF 1093).
        (9) To the Government of Venezuela, the medium auxiliary 
    floating dry dock bearing hull number AFDM 2.
    (c) Transfers on a Combined Lease-Sale Basis.--The Secretary of the 
Navy is authorized to transfer vessels to foreign countries on a 
combined lease-sale basis under sections 61 and 21 of the Arms Export 
Control Act (22 U.S.C. 2796, 2761) and in accordance with subsection 
(d) as follows:
        (1) To the Government of Brazil, the CIMARRON class oiler 
    MERRIMACK (AO 179).
        (2) To the Government of Greece, the KIDD class guided missile 
    destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT (DDG 995), 
    and CHANDLER (DDG 996).
    (d) Conditions Relating To Combined Lease-Sale Transfers.--A 
transfer of a vessel on a combined lease-sale basis authorized by 
subsection (c) shall be made in accordance with the following 
requirements:
        (1) The Secretary may initially transfer the vessel by lease, 
    with lease payments suspended for the term of the lease, if the 
    country entering into the lease for the vessel simultaneously 
    enters into a foreign military sales agreement for the transfer of 
    title to the vessel.
        (2) The Secretary may not deliver to the purchasing country 
    title to the vessel until the purchase price of the vessel under 
    such a foreign military sales agreement is paid in full.
        (3) Upon payment of the purchase price in full under such a 
    sales agreement and delivery of title to the recipient country, the 
    Secretary shall terminate the lease.
        (4) If the purchasing country fails to make full payment of the 
    purchase price in accordance with the sales agreement by the date 
    required under the sales agreement--
            (A) the sales agreement shall be immediately terminated;
            (B) the suspension of lease payments under the lease shall 
        be vacated; and
            (C) the United States shall be entitled to retain all funds 
        received on or before the date of the termination under the 
        sales agreement, up to the amount of the lease payments due and 
        payable under the lease and all other costs required by the 
        lease to be paid to that date.
        (5) If a sales agreement is terminated pursuant to paragraph 
    (4), the United States shall not be required to pay any interest to 
    the recipient country on any amount paid to the United States by 
    the recipient country under the sales agreement and not retained by 
    the United States under the lease.
    (e) Requirement for Provision in Advance in an Appropriations 
Act.--Authority to transfer vessels on a sale basis under subsection 
(b) or a combined lease-sale basis under subsection (c) is effective 
only to the extent that authority to effectuate such transfers, 
together with appropriations to cover the associated cost (as defined 
in section 502 of the Congressional Budget of 1974 (2 U.S.C. 661a)), 
are provided in advance in an appropriations Act.
    (f) Authorization of Appropriations for Certain Costs of 
Transfers.--There is established in the Treasury of the United States a 
special account to be known as the Defense Vessels Transfer Program 
Account. There is hereby authorized to be appropriated into that 
account such sums as may be necessary for the costs (as defined in 
section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of 
the lease-sale transfers authorized by subsection (c). Funds in that 
account are available only for the purpose of covering those costs.
    (g) Notification of Congress.--Not later than 30 days after the 
date of the enactment of this Act, the Secretary of the Navy shall 
submit to Congress, for each naval vessel that is to be transferred 
under this section before January 1, 1999, the notifications required 
under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j) and section 525 of the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1998 (Public Law 105-118; 111 
Stat. 2413).
    (h) Grants not Counted in Annual Total of Transferred Excess 
Defense Articles.--The value of a vessel transferred to another country 
on a grant basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j) pursuant to authority provided by subsection (a) 
shall not be counted for the purposes of subsection (g) of that section 
in the aggregate value of excess defense articles transferred to 
countries under that section in any fiscal year.
    (i) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by this section shall be 
charged to the recipient (notwithstanding section 516(e)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)) in the case of a 
transfer authorized to be made on a grant basis under subsection (a)).
    (j) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the Secretary of the Navy shall require, as 
a condition of the transfer of a vessel under this section, that the 
country to which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel joins the 
naval forces of that country, performed at a shipyard located in the 
United States, including a United States Navy shipyard.
    (k) Expiration of Authority.--The authority to transfer a vessel 
under this section shall expire at the end of the 2-year period 
beginning on the date of the enactment of this Act.

SEC. 1236. REPEAL OF LANDMINE MORATORIUM.

    Section 580 of the Foreign Operations Appropriations Act, 1996 
(Public Law 104-107; 110 Stat. 751), is repealed.

SEC. 1237. APPLICATION OF AUTHORITIES UNDER THE INTERNATIONAL EMERGENCY 
              ECONOMIC POWERS ACT TO COMMUNIST CHINESE MILITARY 
              COMPANIES.

    (a) Presidential Authority.--
        (1) In general.--The President may exercise IEEPA authorities 
    (other than authorities relating to importation) without regard to 
    section 202 of the International Emergency Economic Powers Act (50 
    U.S.C. 1701) in the case of any commercial activity in the United 
    States by a person that is on the list published under subsection 
    (b).
        (2) Penalties.--The penalties set forth in section 206 of the 
    International Emergency Economic Powers Act (50 U.S.C. 1705) apply 
    to violations of any license, order, or regulation issued under 
    paragraph (1).
        (3) Ieepa authorities.--For purposes of paragraph (1), the term 
    ``IEEPA authorities'' means the authorities set forth in section 
    203(a) of the International Emergency Economic Powers Act (50 
    U.S.C. 1702(a)).
    (b) Determination and Publication of Communist Chinese Military 
Companies Operating in United States.--
        (1) Initial determination and publication.--Not later than 90 
    days after the date of the enactment of this Act, the Secretary of 
    Defense shall make a determination of those persons operating 
    directly or indirectly in the United States or any of its 
    territories and possessions that are Communist Chinese military 
    companies and shall publish a list of those persons in the Federal 
    Register.
        (2) Revisions to list.--The Secretary of Defense shall make 
    additions or deletions to the list published under paragraph (1) on 
    an ongoing basis based on the latest information available.
        (3) Consultation.--The Secretary of Defense shall consult with 
    the following officers in carrying out paragraphs (1) and (2):
            (A) The Attorney General.
            (B) The Director of Central Intelligence.
            (C) The Director of the Federal Bureau of Investigation.
        (4) Communist chinese military company.--For purposes of making 
    the determination required by paragraph (1) and of carrying out 
    paragraph (2), the term ``Communist Chinese military company'' 
    means--
            (A) any person identified in the Defense Intelligence 
        Agency publication numbered VP-1920-271-90, dated September 
        1990, or PC-1921-57-95, dated October 1995, and any update of 
        those publications for the purposes of this section; and
            (B) any other person that--
                (i) is owned or controlled by the People's Liberation 
            Army; and
                (ii) is engaged in providing commercial services, 
            manufacturing, producing, or exporting.
    (c) People's Liberation Army.--For purposes of this section, the 
term ``People's Liberation Army'' means the land, naval, and air 
military services, the police, and the intelligence services of the 
Communist Government of the People's Republic of China, and any member 
of any such service or of such police.

  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec.1301.Specification of Cooperative Threat Reduction programs and 
          funds.
Sec.1302.Funding allocations.
Sec.1303.Prohibition on use of funds for specified purposes.
Sec.1304.Limitation on use of funds for chemical weapons destruction 
          activities in Russia.
Sec.1305.Limitation on use of funds for biological weapons proliferation 
          prevention activities in Russia.
Sec.1306.Cooperative counter-proliferation program.
Sec.1307.Requirement to submit summary of amounts requested by project 
          category.
Sec.1308.Report on biological weapons programs in Russia.
Sec.1309.Report on individuals with expertise in former Soviet weapons 
          of mass destruction programs.

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
              FUNDS.

    (a) Specification of CTR Programs.--(1) For purposes of section 301 
and other provisions of this Act, Cooperative Threat Reduction programs 
are the programs specified in section 1501(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2731; 50 U.S.C. 2362 note) (as amended by paragraph (2)).
    (2) Section 1501(b)(3) of such Act is amended by inserting 
``materials,'' after ``components,''.
    (b) Fiscal Year 1999 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 1999 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the amounts authorized to be 
appropriated to the Department of Defense for fiscal year 1999 in 
section 301(23), $440,400,000 shall be available to carry out 
Cooperative Threat Reduction programs, of which not more than the 
following amounts may be obligated for the purposes specified:
        (1) For strategic offensive arms elimination in Russia, 
    $142,400,000.
        (2) For strategic nuclear arms elimination in Ukraine, 
    $47,500,000.
        (3) For activities to support warhead dismantlement processing 
    in Russia, $9,400,000.
        (4) For activities associated with chemical weapons destruction 
    in Russia, $88,400,000.
        (5) For weapons transportation security in Russia, $10,300,000.
        (6) For planning, design, and construction of a storage 
    facility for Russian fissile material, $60,900,000.
        (7) For weapons storage security in Russia, $41,700,000.
        (8) For development of a cooperative program with the 
    Government of Russia to eliminate the production of weapons grade 
    plutonium at Russian reactors, $29,800,000.
        (9) For biological weapons proliferation prevention activities 
    in Russia, $2,000,000.
        (10) For activities designated as Other Assessments/
    Administrative Support, $8,000,000.
    (b) Limited Authority To Vary Individual Amounts.--(1) If the 
Secretary of Defense determines that it is necessary to do so in the 
national interest, the Secretary may, subject to paragraphs (2) and 
(3), obligate amounts for the purposes stated in any of the paragraphs 
of subsection (a) in excess of the amount specified for those purposes 
in that paragraph. However, the total amount obligated for the purposes 
stated in the paragraphs in subsection (a) may not by reason of the use 
of the authority provided in the preceding sentence exceed the sum of 
the amounts specified in those paragraphs.
    (2) An obligation for the purposes stated in any of the paragraphs 
in subsection (a) in excess of the amount specified in that paragraph 
may be made using the authority provided in paragraph (1) only after--
        (A) the Secretary submits to Congress notification of the 
    intent to do so together with a complete discussion of the 
    justification for doing so; and
        (B) 15 days have elapsed following the date of the 
    notification.
    (3) The Secretary may not, under the authority provided in 
paragraph (1), obligate amounts appropriated for the purposes stated in 
any of paragraphs (3) through (10) of subsection (a) in excess of 115 
percent of the amount stated in those paragraphs.

SEC. 1303. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

    (a) In General.--No fiscal year 1999 Cooperative Threat Reduction 
funds, and no funds appropriated for Cooperative Threat Reduction 
programs for any prior fiscal year and remaining available for 
obligation, may be obligated or expended for any of the following 
purposes:
        (1) Conducting with Russia any peacekeeping exercise or other 
    peacekeeping-related activity.
        (2) Provision of housing.
        (3) Provision of assistance to promote environmental 
    restoration.
        (4) Provision of assistance to promote job retraining.
    (b) Limitation With Respect to Defense Conversion Assistance.--None 
of the funds appropriated pursuant to this Act may be obligated or 
expended for the provision of assistance to Russia or any other state 
of the former Soviet Union to promote defense conversion.

SEC. 1304. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION 
              ACTIVITIES IN RUSSIA.

    (a) Limitation.--Subject to the limitation in section 1405(b) of 
the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1961), no funds authorized to be appropriated for 
Cooperative Threat Reduction programs under this Act or any other Act 
may be obligated or expended for chemical weapons destruction 
activities in Russia (including activities for the planning, design, or 
construction of a chemical weapons destruction facility or for the 
dismantlement of an existing chemical weapons production facility) 
until the President submits to Congress a written certification 
described in subsection (b).
    (b) Presidential Certification.--A certification under this 
subsection is either of the following certifications by the President:
        (1) A certification that--
            (A) Russia is making reasonable progress toward the 
        implementation of the Bilateral Destruction Agreement;
            (B) the United States and Russia have made substantial 
        progress toward the resolution, to the satisfaction of the 
        United States, of outstanding compliance issues under the 
        Wyoming Memorandum of Understanding and the Bilateral 
        Destruction Agreement; and
            (C) Russia has fully and accurately declared all 
        information regarding its unitary and binary chemical weapons, 
        chemical weapons facilities, and other facilities associated 
        with chemical weapons.
        (2) A certification that the national security interests of the 
    United States could be undermined by a policy of the United States 
    not to carry out chemical weapons destruction activities under 
    Cooperative Threat Reduction programs for which funds are 
    authorized to be appropriated under this Act or any other Act for 
    fiscal year 1999.
    (c) Definitions.--In this section:
        (1) The term ``Bilateral Destruction Agreement'' means the 
    Agreement Between the United States of America and the Union of 
    Soviet Socialist Republics on Destruction and Non-production of 
    Chemical Weapons and on Measures to Facilitate the Multilateral 
    Convention on Banning Chemical Weapons signed on June 1, 1990.
        (2) The term ``Wyoming Memorandum of Understanding'' means the 
    Memorandum of Understanding Between the Government of the United 
    States of America and the Government of the Union of Soviet 
    Socialist Republics Regarding a Bilateral Verification Experiment 
    and Data Exchange Related to Prohibition on Chemical Weapons, 
    signed at Jackson Hole, Wyoming, on September 23, 1989.

SEC. 1305. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL WEAPONS 
              PROLIFERATION PREVENTION ACTIVITIES IN RUSSIA.

    No fiscal year 1999 Cooperative Threat Reduction funds may be 
obligated or expended for biological weapons proliferation prevention 
activities in Russia until 15 days after the date on which the 
Secretary submits to the congressional defense committees a report on--
        (1) whether Cooperative Threat Reduction funds provided for 
    cooperative research activities at biological research institutes 
    in Russia have been used--
            (A) to support activities to develop new strains of 
        anthrax; or
            (B) for any purpose inconsistent with the objectives of 
        providing such funds; and
        (2) the new strains of anthrax alleged to have been developed 
    at a biological research institute in Russia and any efforts by the 
    United States to examine such strains.

SEC. 1306. COOPERATIVE COUNTER PROLIFERATION PROGRAM.

    (a) In General.--Of the amount authorized to be appropriated in 
section 1302 (other than the amounts authorized to be appropriated in 
subsections (a)(1) and (a)(2) of that section) and subject to the 
limitations in that section and subsection (b), the Secretary of 
Defense may provide a country of the former Soviet Union with emergency 
assistance for removing or obtaining from that country--
        (1) weapons of mass destruction; or
        (2) materials, equipment, or technology related to the 
    development or delivery of weapons of mass destruction.
    (b) Certification Required.--(1) The Secretary may not provide 
assistance under subsection (a) until 15 days after the date that the 
Secretary submits to the congressional defense committees a 
certification in writing that the weapons, materials, equipment, or 
technology described in that subsection meet each of the following 
requirements:
        (A) The weapons, materials, equipment, or technology are at 
    risk of being sold or otherwise transferred to a restricted foreign 
    state or entity.
        (B) The transfer of the weapons, materials, equipment, or 
    technology would pose a significant near-term threat to the 
    national security interests of the United States or would 
    significantly advance a foreign country's weapon program that 
    threatens the national security interests of the United States.
        (C) Other options for securing or otherwise preventing the 
    transfer of the weapons, materials, equipment, or technology have 
    been considered and rejected as ineffective or inadequate.
    (2) The 15-day notice requirement in paragraph (1) may be waived if 
the Secretary determines that compliance with the requirement would 
compromise the national security interests of the United States. In 
such case, the Secretary shall promptly notify the congressional 
defense committees of the circumstances regarding such determination in 
advance of providing assistance under subsection (a) and shall submit 
the certification required not later than 30 days after providing such 
assistance.
    (c) Content of Certifications.--Each certification required under 
subsection (b) shall contain information on the following with respect 
to the assistance being provided:
        (1) The specific assistance provided and the purposes for which 
    the assistance is being provided.
        (2) The sources of funds for the assistance.
        (3) Whether any assistance is being provided by any other 
    Federal department or agency.
        (4) The options considered and rejected for preventing the 
    transfer of the weapons, materials, equipment, or technology, as 
    described in subsection (b)(1)(C).
        (5) Whether funding was requested by the Secretary from other 
    Federal departments or agencies.
        (6) Any additional information that the Secretary determines is 
    relevant to the assistance being provided.
    (d) Additional Sources of Funding.--The Secretary may request 
assistance and accept funds from other Federal departments or agencies 
in carrying out this section.
    (e) Definitions.--In this section:
        (1) The term ``restricted foreign state or entity'', with 
    respect to weapons, materials, equipment, or technology covered by 
    a certification or notification of the Secretary of Defense under 
    subsection (b), means--
            (A) any foreign country the government of which has 
        repeatedly provided support for acts of international 
        terrorism, as determined by the Secretary of State under 
        section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2371); or
            (B) any foreign state or entity that the Secretary of 
        Defense determines would constitute a military threat to the 
        United States, its allies, or interests, if that foreign state 
        or entity were to possess the weapons, materials, equipment, or 
        technology.
        (2) The term ``weapons of mass destruction'' has the meaning 
    given that term in section 1403(1) of the Defense Against Weapons 
    of Mass Destruction Act of 1996 (title XIV of Public Law 104-201; 
    50 U.S.C. 2302(1)).

SEC. 1307. REQUIREMENT TO SUBMIT SUMMARY OF AMOUNTS REQUESTED BY 
              PROJECT CATEGORY.

    (a) Summary Required.--The Secretary of Defense shall submit to 
Congress as part of the Secretary's annual budget request to Congress--
        (1) a descriptive summary, with respect to the appropriations 
    requested for Cooperative Threat Reduction programs for the fiscal 
    year after the fiscal year in which the summary is submitted, of 
    the amounts requested for each project category under each 
    Cooperative Threat Reduction program element; and
        (2) a descriptive summary, with respect to appropriations for 
    Cooperative Threat Reduction programs for the fiscal year in which 
    the list is submitted and the previous fiscal year, of the amounts 
    obligated or expended, or planned to be obligated or expended, for 
    each project category under each Cooperative Threat Reduction 
    program element.
    (b) Description of Purpose and Intent.--The descriptive summary 
required under subsection (a) shall include a narrative description of 
each program and project category under each Cooperative Threat 
Reduction program element that explains the purpose and intent of the 
funds requested.

SEC. 1308. REPORT ON BIOLOGICAL WEAPONS PROGRAMS IN RUSSIA.

    (a) Report.--Not later than March 1, 1999, the Secretary of Defense 
shall submit to the congressional defense committees a report, in 
classified and unclassified forms, containing--
        (1) an assessment of the extent of compliance by Russia with 
    international agreements relating to the control of biological 
    weapons; and
        (2) a detailed evaluation of the potential political and 
    military costs and benefits of collaborative biological pathogen 
    research efforts by the United States and Russia.
    (b) Content of Report.--The report required under subsection (a) 
shall include the following:
        (1) An evaluation of the extent of the control and oversight by 
    the Government of Russia over the military and civilian-military 
    biological warfare programs formerly controlled or overseen by 
    states of the former Soviet Union.
        (2) The extent and scope of continued biological warfare 
    research, development, testing, and production in Russia, including 
    the sites where such activity is occurring and the types of 
    activity being conducted.
        (3) An assessment of compliance by Russia with the terms of the 
    Biological Weapons Convention.
        (4) An identification and assessment of the measures taken by 
    Russia to comply with the obligations assumed under the Joint 
    Statement on Biological Weapons, agreed to by the United States, 
    the United Kingdom, and Russia on September 14, 1992.
        (5) A description of the extent to which Russia has permitted 
    individuals from the United States or other countries to visit 
    military and nonmilitary biological research, development, testing, 
    and production sites in order to resolve ambiguities regarding 
    activities at such sites.
        (6) A description of the information provided by Russia about 
    its biological weapons dismantlement efforts to date.
        (7) An assessment of the accuracy and comprehensiveness of 
    declarations by Russia regarding its biological weapons activities.
        (8) An identification of collaborative biological research 
    projects carried out by the United States and Russia for which 
    Cooperative Threat Reduction funds have been used.
        (9) An evaluation of the political and military utility of 
    prior, existing, and prospective cooperative biological pathogen 
    research programs carried out between the United States and Russia, 
    and an assessment of the impact of such programs on increasing 
    Russian military transparency with respect to biological weapons 
    activities.
        (10) An assessment of the political and military utility of the 
    long-term collaborative program advocated by the National Academy 
    of Sciences in its October 27, 1997 report, ``Controlling Dangerous 
    Pathogens: A Blueprint for U.S.-Russian Cooperation''.

SEC. 1309. REPORT ON INDIVIDUALS WITH EXPERTISE IN FORMER SOVIET 
              WEAPONS OF MASS DESTRUCTION PROGRAMS.

    Not later than January 31, 1999, the Secretary of Defense, in 
consultation with the Secretary of State, the Secretary of Energy, and 
any other appropriate officials, shall submit to the congressional 
defense committees a report on the number of individuals in the former 
Soviet Union who have significant expertise in the research, 
development, production, testing, and operational employment of 
ballistic missiles and weapons of mass destruction. The report shall 
contain the following:
        (1) A listing of the specific expertise of the individuals, by 
    category and discipline.
        (2) An assessment of which categories of expertise would pose 
    the greatest risks to the security of the United States if that 
    expertise were transferred to potentially hostile states.
        (3) An estimate, by category, of the number of the individuals 
    in paragraph (1) who are fully or partly employed at the time the 
    report is submitted by the military-industrial complex of the 
    former Soviet Union, the number of such individuals who are fully 
    employed at the time the report is submitted by commercial ventures 
    outside the military-industrial complex of the former Soviet Union, 
    and the number of such individuals who are unemployed and 
    underemployed at the time the report is submitted.
        (4) An identification of the nature, scope, and cost of 
    activities conducted by the United States and other countries to 
    assist in the employment in nonproliferation and nonmilitary-
    related endeavors and enterprises of individuals involved in the 
    weapons complex of the former Soviet Union, and which categories of 
    individuals are being targeted in these efforts.
        (5) An assessment of whether the activities identified under 
    paragraph (4) should be reduced, maintained, or expanded.

 TITLE XIV--DOMESTIC PREPAREDNESS FOR DEFENSE AGAINST WEAPONS OF MASS 
                              DESTRUCTION

Sec.1401.Short title.
Sec.1402.Domestic preparedness for response to threats of terrorist use 
          of weapons of mass destruction.
Sec.1403.Report on domestic emergency preparedness.
Sec.1404.Threat and risk assessments.
Sec.1405.Advisory panel to assess domestic response capabilities for 
          terrorism involving weapons of mass destruction.

SEC. 1401. SHORT TITLE.

    This title may be cited as the ``Defense Against Weapons of Mass 
Destruction Act of 1998''.

SEC. 1402. DOMESTIC PREPAREDNESS FOR RESPONSE TO THREATS OF TERRORIST 
              USE OF WEAPONS OF MASS DESTRUCTION.

    (a) Enhanced Response Capability.--In light of the continuing 
potential for terrorist use of weapons of mass destruction against the 
United States and the need to develop a more fully coordinated response 
to that threat on the part of Federal, State, and local agencies, the 
President shall act to increase the effectiveness at the Federal, 
State, and local level of the domestic emergency preparedness program 
for response to terrorist incidents involving weapons of mass 
destruction by utilizing the President's existing authorities to 
develop an integrated program that builds upon the program established 
under the Defense Against Weapons of Mass Destruction Act of 1996 
(title XIV of Public Law 104-201; 110 Stat. 2714; 50 U.S.C. 2301 et 
seq.).
    (b) Report.--Not later than January 31, 1999, the President shall 
submit to Congress a report containing information on the actions taken 
at the Federal, State, and local level to develop an integrated program 
to prevent and respond to terrorist incidents involving weapons of mass 
destruction.

SEC. 1403. REPORT ON DOMESTIC EMERGENCY PREPAREDNESS.

    Section 1051 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1889; 31 U.S.C. 1113 note) is 
amended by adding at the end the following new subsection:
    ``(c) Annex on Domestic Emergency Preparedness Program.--As part of 
the annual report submitted to Congress under subsection (b), the 
President shall include an annex which provides the following 
information on the domestic emergency preparedness program for response 
to terrorist incidents involving weapons of mass destruction (as 
established under section 1402 of the Defense Against Weapons of Mass 
Destruction Act of 1998):
        ``(1) Information on program responsibilities for each 
    participating Federal department, agency, and bureau.
        ``(2) A summary of program activities performed during the 
    preceding fiscal year for each participating Federal department, 
    agency, and bureau.
        ``(3) A summary of program obligations and expenditures during 
    the preceding fiscal year for each participating Federal 
    department, agency, and bureau.
        ``(4) A summary of the program plan and budget for the current 
    fiscal year for each participating Federal department, agency, and 
    bureau.
        ``(5) The program budget request for the following fiscal year 
    for each participating Federal department, agency, and bureau.
        ``(6) Recommendations for improving Federal, State, and local 
    domestic emergency preparedness to respond to incidents involving 
    weapons of mass destruction that have been made by the advisory 
    panel to assess the capabilities of domestic response to terrorism 
    involving weapons of mass destruction (as established under section 
    1405 of the Defense Against Weapons of Mass Destruction Act of 
    1998), and actions taken as a result of such recommendations.
        ``(7) Additional program measures and legislative authority for 
    which congressional action may be required.''.

SEC. 1404. THREAT AND RISK ASSESSMENTS.

    (a) Requirement To Develop Methodologies.--The Attorney General, in 
consultation with the Director of the Federal Bureau of Investigation 
and representatives of appropriate Federal, State, and local agencies, 
shall develop and test methodologies for assessing the threat and risk 
of terrorist employment of weapons of mass destruction against cities 
and other local areas. The results of the tests may be used to 
determine the training and equipment requirements under the program 
developed under section 1402. The methodologies required by this 
subsection shall be developed using cities or local areas selected by 
the Attorney General, acting in consultation with the Director of the 
Federal Bureau of Investigation and appropriate representatives of 
Federal, State, and local agencies.
    (b) Required Completion Date.--The requirements in subsection (a) 
shall be completed not later than 1 year after the date of the 
enactment of this Act.

SEC. 1405. ADVISORY PANEL TO ASSESS DOMESTIC RESPONSE CAPABILITIES FOR 
              TERRORISM INVOLVING WEAPONS OF MASS DESTRUCTION.

    (a) Requirement for Panel.--The Secretary of Defense, in 
consultation with the Attorney General, the Secretary of Energy, the 
Secretary of Health and Human Services, and the Director of the Federal 
Emergency Management Agency, shall enter into a contract with a 
federally funded research and development center to establish a panel 
to assess the capabilities for domestic response to terrorism involving 
weapons of mass destruction.
    (b) Composition of Panel; Selection.--(1) The panel shall be 
composed of members who shall be private citizens of the United States 
with knowledge and expertise in emergency response matters.
    (2) Members of the panel shall be selected by the federally funded 
research and development center in accordance with the terms of the 
contract established pursuant to subsection (a).
    (c) Procedures for Panel.--The federally funded research and 
development center shall be responsible for establishing appropriate 
procedures for the panel, including procedures for selection of a panel 
chairman.
    (d) Duties of Panel.--The panel shall--
        (1) assess Federal agency efforts to enhance domestic 
    preparedness for incidents involving weapons of mass destruction;
        (2) assess the progress of Federal training programs for local 
    emergency responses to incidents involving weapons of mass 
    destruction;
        (3) assess deficiencies in programs for response to incidents 
    involving weapons of mass destruction, including a review of 
    unfunded communications, equipment, and planning requirements, and 
    the needs of maritime regions;
        (4) recommend strategies for ensuring effective coordination 
    with respect to Federal agency weapons of mass destruction response 
    efforts, and for ensuring fully effective local response 
    capabilities for weapons of mass destruction incidents; and
        (5) assess the appropriate roles of State and local government 
    in funding effective local response capabilities.
    (e) Deadline To Enter Into Contract.--The Secretary of Defense 
shall enter into the contract required under subsection (a) not later 
than 60 days after the date of the enactment of this Act.
    (f) Deadline for Selection of Panel Members.--Selection of panel 
members shall be made not later than 30 days after the date on which 
the Secretary enters into the contract required by subsection (a).
    (g) Initial Meeting of the Panel.--The panel shall conduct its 
first meeting not later than 30 days after the date that all the 
selections to the panel have been made.
    (h) Reports.--(1) Not later than 6 months after the date of the 
first meeting of the panel, the panel shall submit to the President and 
to Congress an initial report setting forth its findings, conclusions, 
and recommendations for improving Federal, State, and local domestic 
emergency preparedness to respond to incidents involving weapons of 
mass destruction.
    (2) Not later than December 15 of each year, beginning in 1999 and 
ending in 2001, the panel shall submit to the President and to the 
Congress a report setting forth its findings, conclusions, and 
recommendations for improving Federal, State, and local domestic 
emergency preparedness to respond to incidents involving weapons of 
mass destruction.
    (i) Cooperation of Other Agencies.--(1) The panel may secure 
directly from the Department of Defense, the Department of Energy, the 
Department of Health and Human Services, the Department of Justice, and 
the Federal Emergency Management Agency, or any other Federal 
department or agency information that the panel considers necessary for 
the panel to carry out its duties.
    (2) The Attorney General, the Secretary of Defense, the Secretary 
of Energy, the Secretary of Health and Human Services, the Director of 
the Federal Emergency Management Agency, and any other official of the 
United States shall provide the panel with full and timely cooperation 
in carrying out its duties under this section.
    (j) Funding.--The Secretary of Defense shall provide the funds 
necessary for the panel to carry out its duties from the funds 
available to the Department of Defense for weapons of mass destruction 
preparedness initiatives.
    (k) Compensation of Panel Members.--(1) Members of the panel shall 
serve without pay by reason of their work on the panel.
    (2) Members of the panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter 57 of title 5, United States 
Code, while away from their homes or regular place of business in 
performance of services for the panel.
    (l) Termination of the Panel.--The panel shall terminate three 
years after the date of the appointment of the member selected as 
chairman of the panel.
    (m) Definition.--In this section, the term ``weapon of mass 
destruction'' has the meaning given that term in section 1403(1) of the 
Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 
2302(1)).

   TITLE XV--MATTERS RELATING TO ARMS CONTROL, EXPORT CONTROLS, AND 
                         COUNTER-PROLIFERATION

                    Subtitle A--Arms Control Matters

Sec.1501.One-year extension of limitation on retirement or dismantlement 
          of strategic nuclear delivery systems.
Sec.1502.Transmission of executive branch reports providing Congress 
          with classified summaries of arms control developments.
Sec.1503.Report on adequacy of emergency communications capabilities 
          between United States and Russia.
Sec.1504.Russian nonstrategic nuclear weapons.

                  Subtitle B--Satellite Export Controls

Sec.1511.Sense of Congress.
Sec.1512.Certification of exports of missile equipment or technology to 
          China.
Sec.1513.Satellite controls under the United States Munitions List.
Sec.1514.National security controls on satellite export licensing.
Sec.1515.Report on export of satellites for launch by People's Republic 
          of China.
Sec.1516.Related items defined.

                Subtitle C--Other Export Control Matters

Sec.1521.Authority for export control activities of the Department of 
          Defense.
Sec.1522.Release of export information by Department of Commerce to 
          other agencies for purpose of national security assessment.
Sec.1523.Nuclear export reporting requirement.
Sec.1524.Execution of objection authority within the Department of 
          Defense.

                Subtitle D--Counterproliferation Matters

Sec.1531.One-year extension of counterproliferation authorities for 
          support of United Nations Special Commission on Iraq.
Sec.1532.Sense of Congress on nuclear tests in South Asia.
Sec.1533.Report on requirements for response to increased missile threat 
          in Asia-Pacific region.

                    Subtitle A--Arms Control Matters

SEC. 1501. ONE-YEAR EXTENSION OF LIMITATION ON RETIREMENT OR 
              DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY SYSTEMS.

    Section 1302 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1948) is amended--
        (1) in subsections (a), (b), and (c)(2), by striking out 
    ``during fiscal year 1998'' and inserting in lieu thereof ``during 
    the strategic delivery systems retirement limitation period'';
        (2) in subsection (c)(1), by striking out ``during fiscal year 
    1998'';
        (3) in subsection (d)(1)--
            (A) by striking out ``for fiscal year 1998''; and
            (B) by striking out ``during fiscal year 1998''; and
        (4) by adding at the end the following new subsection:
    ``(g) Strategic Delivery Systems Retirement Limitation Period.--For 
purposes of this section, the term `strategic delivery systems 
retirement limitation period' means the period of fiscal years 1998 and 
1999.''.

SEC. 1502. TRANSMISSION OF EXECUTIVE BRANCH REPORTS PROVIDING CONGRESS 
              WITH CLASSIFIED SUMMARIES OF ARMS CONTROL DEVELOPMENTS.

    (a) Reporting Requirement.--The Director of the Arms Control and 
Disarmament Agency (or the Secretary of State, if the Arms Control and 
Disarmament Agency becomes an element of the Department of State) shall 
transmit to the Committee on National Security of the House of 
Representatives on a periodic basis reports containing classified 
summaries of arms control developments.
    (b) Contents of Reports.--The reports required by subsection (a) 
shall include information reflecting the activities of forums 
established to consider issues relating to treaty implementation and 
treaty compliance.

SEC. 1503. REPORT ON ADEQUACY OF EMERGENCY COMMUNICATIONS CAPABILITIES 
              BETWEEN UNITED STATES AND RUSSIA.

    Not later than 3 months after the date of the enactment of this 
Act, the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on the status and adequacy of current 
direct communications capabilities between the governments of the 
United States and Russia. The report shall identify each existing 
direct communications link between those governments and each such link 
that is designed to be used, or is available to be used, in an 
emergency situation. The Secretary shall describe in the report any 
shortcomings with the existing communications capabilities and shall 
include such proposals as the Secretary considers appropriate to 
improve those capabilities. In considering improvements to propose, the 
Secretary shall assess the feasibility and desirability of establishing 
a direct communications link between the commanders of appropriate 
United States unified and specified commands, including the United 
States Space Command and the United States Strategic Command, and their 
Russian counterparts.

SEC. 1504. RUSSIAN NONSTRATEGIC NUCLEAR WEAPONS.

    (a) Findings.--The Congress makes the following findings:
        (1) The 7,000 to 12,000 or more nonstrategic (or ``tactical'') 
    nuclear weapons estimated by the United States Strategic Command to 
    be in the Russian arsenal may present the greatest threat of sale 
    or theft of a nuclear warhead in the world today.
        (2) As the number of deployed strategic warheads in the Russian 
    and United States arsenals declines to just a few thousand under 
    the START accords, Russia's vast superiority in tactical nuclear 
    warheads--many of which have yields equivalent to strategic nuclear 
    weapons--could become strategically destabilizing.
        (3) While the United States has unilaterally reduced its 
    inventory of tactical nuclear weapons by nearly 90 percent since 
    the end of the Cold War, Russia is behind schedule in implementing 
    the steep tactical nuclear arms reductions pledged by former Soviet 
    President Gorbachev in 1991 and Russian President Yeltsin in 1992, 
    perpetuating the dangers from Russia's tactical nuclear stockpile.
    (b) Sense of Congress.--It is the sense of Congress that the 
President should call on Russia to expedite reduction of its tactical 
nuclear arsenal in accordance with the promises made in 1991 and 1992.
    (c) Report.--Not later than March 15, 1999, the Secretary of 
Defense shall submit to Congress a report on the nonstrategic nuclear 
weapons of Russia. The report shall include--
        (1) estimates regarding the current numbers, types, yields, 
    viability, and locations of those weapons;
        (2) an assessment of the strategic implications of Russia's 
    nonstrategic arsenal, including the potential use of those weapons 
    in a strategic role or the use of their components in strategic 
    nuclear systems and the potential of Russian superiority in 
    tactical nuclear weapons to destabilize the overall nuclear balance 
    as strategic nuclear weapons are sharply reduced under the START 
    accords;
        (3) an assessment of the extent of the current threat of theft, 
    sale, or unauthorized use of the warheads of those weapons, 
    including an analysis of Russian command and control as it concerns 
    the use of tactical nuclear weapons;
        (4) a summary of past, current, and planned efforts to work 
    cooperatively with Russia to account for, secure, and reduce 
    Russia's stockpile of tactical nuclear weapons and associated 
    fissile material;
        (5) a summary of how the United States would prevent, or plans 
    to cope militarily with, scenarios in which a deterioration in 
    relations with Moscow causes Russia to redeploy tactical nuclear 
    weapons or in which Russia threatens to employ, or actually 
    employs, tactical nuclear weapons in a local or regional conflict 
    involving the United States or allies of the United States; and
        (6) an assessment of the steps that could be taken by the 
    United States to enhance military preparedness in order (A) to 
    deter any potential attempt by Russia to possibly exploit its 
    advantage in tactical nuclear weapons through coercive ``nuclear 
    diplomacy'' or on the battlefield, or (B) to counter Russia if 
    Russia should make such an attempt to exploit its advantage in 
    tactical nuclear weapons.
    (d) Views.--The Secretary of Defense shall include in the report 
under subsection (c) the views of the Director of Central Intelligence 
and of the commander of the United States Strategic Command.

                 Subtitle B--Satellite Export Controls

SEC. 1511. SENSE OF CONGRESS.

    It is the sense of Congress that--
        (1) United States business interests must not be placed above 
    United States national security interests;
        (2) United States foreign policy and the policies of the United 
    States regarding commercial relations with other countries should 
    affirm the importance of observing and adhering to the Missile 
    Technology Control Regime (MTCR);
        (3) the United States should encourage universal observance of 
    the Guidelines to the Missile Technology Control Regime;
        (4) the exportation or transfer of advanced communication 
    satellites and related technologies from United States sources to 
    foreign recipients should not increase the risks to the national 
    security of the United States;
        (5) due to the military sensitivity of the technologies 
    involved, it is in the national security interests of the United 
    States that United States satellites and related items be subject 
    to the same export controls that apply under United States law and 
    practices to munitions;
        (6) the United States should not issue any blanket waiver of 
    the suspensions contained in section 902 of the Foreign Relations 
    Authorization Act, Fiscal Years 1990 and 1991 (Public Law 101-246), 
    regarding the export of satellites of United States origin intended 
    for launch from a launch vehicle owned by the People's Republic of 
    China;
        (7) the United States should pursue policies that protect and 
    enhance the United States space launch industry; and
        (8) the United States should not export to the People's 
    Republic of China missile equipment or technology that would 
    improve the missile or space launch capabilities of the People's 
    Republic of China.

SEC. 1512. CERTIFICATION OF EXPORTS OF MISSILE EQUIPMENT OR TECHNOLOGY 
              TO CHINA.

    The President shall certify to the Congress at least 15 days in 
advance of any export to the People's Republic of China of missile 
equipment or technology (as defined in section 74 of the Arms Export 
Control Act (22 U.S.C. 2797c)) that--
        (1) such export is not detrimental to the United States space 
    launch industry; and
        (2) the missile equipment or technology, including any indirect 
    technical benefit that could be derived from such export, will not 
    measurably improve the missile or space launch capabilities of the 
    People's Republic of China.

SEC. 1513. SATELLITE CONTROLS UNDER THE UNITED STATES MUNITIONS LIST.

    (a) Control of Satellites on the United States Munitions List.--
Notwithstanding any other provision of law, all satellites and related 
items that are on the Commerce Control List of dual-use items in the 
Export Administration Regulations (15 CFR part 730 et seq.) on the date 
of the enactment of this Act shall be transferred to the United States 
Munitions List and controlled under section 38 of the Arms Export 
Control Act (22 U.S.C. 2778).
    (b) Defense Trade Controls Registration Fees.--Section 45 of the 
State Department Basic Authorities Act of 1956 (22 U.S.C. 2717) is 
amended--
        (1) in subsection (a)--
            (A) by striking out ``$700,000'' and inserting in lieu 
        thereof ``100 percent''; and
            (B) by striking out ``(a) Defense Trade Controls 
        Registration Fees.--''; and
        (2) by striking out subsection (b).
    (c) Effective Date.--(1) Subsection (a) shall take effect on March 
15, 1999, and shall not apply to any export license issued before such 
effective date or to any export license application made under the 
Export Administration Regulations before such effective date.
    (2) The amendments made by subsection (b) shall be effective as of 
October 1, 1998.
    (d) Report.--Not later than January 1, 1999, the Secretary of 
State, in consultation with the Secretary of Defense and the Secretary 
of Commerce, shall submit to Congress a report containing--
        (1) a detailed description of the plans of the Department of 
    State to implement the requirements of this section, including any 
    organizational changes that are required and any Executive orders 
    or regulations that may be required;
        (2) an identification and explanation of any steps that should 
    be taken to improve the license review process for exports of the 
    satellites and related items described in subsection (a), including 
    measures to shorten the timelines for license application reviews, 
    and any measures relating to the transparency of the license review 
    process and dispute resolution procedures;
        (3) an evaluation of the adequacy of resources available to the 
    Department of State, including fiscal and personnel resources, to 
    carry out the additional activities required by this section; and
        (4) any recommendations for additional actions, including 
    possible legislation, to improve the export licensing process under 
    the Arms Export Control Act for the satellites and related items 
    described in subsection (a).

SEC. 1514. NATIONAL SECURITY CONTROLS ON SATELLITE EXPORT LICENSING.

    (a) Actions by the President.--Notwithstanding any other provision 
of law, the President shall take such actions as are necessary to 
implement the following requirements for improving national security 
controls in the export licensing of satellites and related items:
        (1) Mandatory technology control plans.--All export licenses 
    shall require a technology transfer control plan approved by the 
    Secretary of Defense and an encryption technology transfer control 
    plan approved by the Director of the National Security Agency.
        (2) Mandatory monitors and reimbursement.--
            (A) Monitoring of proposed foreign launch of satellites.--
        In any case in which a license is approved for the export of a 
        satellite or related items for launch in a foreign country, the 
        Secretary of Defense shall monitor all aspects of the launch in 
        order to ensure that no unauthorized transfer of technology 
        occurs, including technical assistance and technical data. The 
        costs of such monitoring services shall be fully reimbursed to 
        the Department of Defense by the person or entity receiving 
        such services. All reimbursements received under this 
        subparagraph shall be credited to current appropriations 
        available for the payment of the costs incurred in providing 
        such services.
            (B) Contents of monitoring.--The monitoring under 
        subparagraph (A) shall cover, but not be limited to--
                (i) technical discussions and activities, including the 
            design, development, operation, maintenance, modification, 
            and repair of satellites, satellite components, missiles, 
            other equipment, launch facilities, and launch vehicles;
                (ii) satellite processing and launch activities, 
            including launch preparation, satellite transportation, 
            integration of the satellite with the launch vehicle, 
            testing and checkout prior to launch, satellite launch, and 
            return of equipment to the United States;
                (iii) activities relating to launch failure, delay, or 
            cancellation, including post-launch failure investigations; 
            and
                (iv) all other aspects of the launch.
        (3) Mandatory licenses for crash-investigations.--In the event 
    of the failure of a launch from a foreign country of a satellite of 
    United States origin--
            (A) the activities of United States persons or entities in 
        connection with any subsequent investigation of the failure are 
        subject to the controls established under section 38 of the 
        Arms Export Control Act, including requirements for licenses 
        issued by the Secretary of State for participation in that 
        investigation;
            (B) officials of the Department of Defense shall monitor 
        all activities associated with the investigation to insure 
        against unauthorized transfer of technical data or services; 
        and
            (C) the Secretary of Defense shall establish and implement 
        a technology transfer control plan for the conduct of the 
        investigation to prevent the transfer of information that could 
        be used by the foreign country to improve its missile or space 
        launch capabilities.
        (4) Mandatory notification and certification.--All technology 
    transfer control plans for satellites or related items shall 
    require any United States person or entity involved in the export 
    of a satellite of United States origin or related items to notify 
    the Department of Defense in advance of all meetings and 
    interactions with any foreign person or entity providing launch 
    services and require the United States person or entity to certify 
    after the launch that it has complied with this notification 
    requirement.
        (5) Mandatory intelligence community review.--The Secretary of 
    Commerce and the Secretary of State shall provide to the Secretary 
    of Defense and the Director of Central Intelligence copies of all 
    export license applications and technical assistance agreements 
    submitted for approval in connection with launches in foreign 
    countries of satellites to verify the legitimacy of the stated end-
    user or end-users.
        (6) Mandatory sharing of approved licenses and agreements.--The 
    Secretary of State shall provide copies of all approved export 
    licenses and technical assistance agreements associated with 
    launches in foreign countries of satellites to the Secretaries of 
    Defense and Energy, the Director of Central Intelligence, and the 
    Director of the Arms Control and Disarmament Agency.
        (7) Mandatory notification to congress on licenses.--Upon 
    issuing a license for the export of a satellite or related items 
    for launch in a foreign country, the head of the department or 
    agency issuing the license shall so notify Congress.
        (8) Mandatory reporting on monitoring activities.--The 
    Secretary of Defense shall provide to Congress an annual report on 
    the monitoring of all launches in foreign countries of satellites 
    of United States origin.
        (9) Establishing safeguards program.--The Secretary of Defense 
    shall establish a program for recruiting, training, and maintaining 
    a staff dedicated to monitoring launches in foreign countries of 
    satellites and related items of United States origin.
    (b) Exception.--This section shall not apply to the export of a 
satellite or related items for launch in, or by nationals of, a country 
that is a member of the North Atlantic Treaty Organization or that is a 
major non-NATO ally of the United States.
    (c) Effective Date.--The President shall take the actions required 
by subsection (a) not later than 45 days after the date of the 
enactment of this Act.

SEC. 1515. REPORT ON EXPORT OF SATELLITES FOR LAUNCH BY PEOPLE'S 
              REPUBLIC OF CHINA.

    (a) Requirement for Report.--Each report to Congress submitted 
pursuant to subsection (b) of section 902 of the Foreign Relations 
Authorization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 2151 note; 
Public Law 101-246) to waive the restrictions contained in subsection 
(a) of that section on the export to the People's Republic of China of 
any satellite of United States origin or related items shall be 
accompanied by a detailed justification setting forth the following:
        (1) A detailed description of all militarily sensitive 
    characteristics integrated within, or associated with, the 
    satellite.
        (2) An estimate of the number of United States civilian 
    contract personnel expected to be needed in country to carry out 
    the proposed satellite launch.
        (3)(A) A detailed description of the United States Government's 
    plan to monitor the proposed satellite launch to ensure that no 
    unauthorized transfer of technology occurs, together with an 
    estimate of the number of officers and employees of the United 
    States that are expected to be needed in country to carry out 
    monitoring of the proposed satellite launch; and
        (B) the estimated cost to the Department of Defense of 
    monitoring the proposed satellite launch and the amount of such 
    cost that is to be reimbursed to the department.
        (4) The reasons why the proposed satellite launch is in the 
    national security interest of the United States.
        (5) The impact of the proposed export on employment in the 
    United States, including the number of new jobs created in the 
    United States, on a State-by-State basis, as a direct result of the 
    proposed export.
        (6) The number of existing jobs in the United States that would 
    be lost, on a State-by-State basis, as a direct result of the 
    proposed export not being licensed.
        (7) The impact of the proposed export on the balance of trade 
    between the United States and the People's Republic of China and on 
    reducing the current United States trade deficit with the People's 
    Republic of China.
        (8) The impact of the proposed export on the transition of the 
    People's Republic of China from a nonmarket economy to a market 
    economy and the long-term economic benefit to the United States.
        (9) The impact of the proposed export on opening new markets to 
    United States-made products through the purchase by the People's 
    Republic of China of United States-made goods and services not 
    directly related to the proposed export.
        (10) The impact of the proposed export on reducing acts, 
    policies, and practices that constitute significant trade barriers 
    to United States exports or foreign direct investment in the 
    People's Republic of China by United States nationals.
        (11) The increase that will result from the proposed export in 
    the overall market share of the United States for goods and 
    services in comparison to Japan, France, Germany, the United 
    Kingdom, and Russia.
        (12) The impact of the proposed export on the willingness of 
    the People's Republic of China to modify its commercial and trade 
    laws, practices, and regulations to make United States-made goods 
    and services more accessible to that market.
        (13) The impact of the proposed export on the willingness of 
    the People's Republic of China to reduce formal and informal trade 
    barriers and tariffs, duties, and other fees on United States-made 
    goods and services entering that country.
    (b) Militarily Sensitive Characteristics Defined.--In this section, 
the term ``militarily sensitive characteristics'' includes antijamming 
capability, antennas, crosslinks, baseband processing, encryption 
devices, radiation-hardened devices, propulsion systems, pointing 
accuracy, kick motors, and other such characteristics as are specified 
by the Secretary of Defense.

SEC. 1516. RELATED ITEMS DEFINED.

    In this subtitle, the term ``related items'' means the satellite 
fuel, ground support equipment, test equipment, payload adapter or 
interface hardware, replacement parts, and non-embedded solid 
propellant orbit transfer engines described in the report submitted to 
Congress by the Department of State on February 6, 1998, pursuant to 
section 38(f) of the Arms Export Control Act (22 U.S.C. 2778(f)).

                Subtitle C--Other Export Control Matters

SEC. 1521. AUTHORITY FOR EXPORT CONTROL ACTIVITIES OF THE DEPARTMENT OF 
              DEFENSE.

    (a) Functions of the Under Secretary for Policy.--Section 134(b) of 
title 10, United States Code, is amended by adding at the end the 
following new paragraph:
    ``(3) Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary shall have responsibility for 
supervising and directing activities of the Department of Defense 
relating to export controls.''.
    (b) Establishment of Deputy Under Secretary for Technology Security 
Policy.--(1) Chapter 4 of title 10, United States Code, is amended by 
inserting after section 134a the following new section:

``Sec. 134b. Deputy Under Secretary of Defense for Technology Security 
            Policy

    ``(a) There is in the Office of the Under Secretary of Defense for 
Policy a Deputy Under Secretary of Defense for Technology Security 
Policy.
    ``(b) The Deputy Under Secretary serves as the Director of the 
Defense Technology Security Administration (or any successor 
organization charged with similar responsibilities).
    ``(c) The principal duties of the Deputy Under Secretary are--
        ``(1) assisting the Under Secretary of Defense for Policy in 
    supervising and directing the activities of the Department of 
    Defense relating to export controls; and
        ``(2) assisting the Under Secretary of Defense for Policy in 
    developing policies and positions regarding the appropriate export 
    control policies and procedures that are necessary to protect the 
    national security interests of the United States.
    ``(d) The Deputy Under Secretary shall perform such additional 
duties and exercise such authority as the Secretary of Defense may 
prescribe.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 134a the 
following new item:
``134b. Deputy Under Secretary of Defense for Technology Security 
          Policy.''.

    (c) Time for Implementation.--The Secretary of Defense shall 
complete the actions necessary to implement the amendment made by 
subsection (a) and to establish the office of Deputy Under Secretary of 
Defense for Technology Security Policy in accordance with section 134b 
of title 10, United States Code, as added by subsection (b), not later 
than 60 days after the date of the enactment of this Act.
    (d) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives a report on the plans of the Secretary for 
implementing the amendments made by subsections (a) and (b). The report 
shall include the following:
        (1) A description of any organizational changes that are to be 
    made within the Department of Defense to implement those 
    amendments.
        (2) A description of the role of the Chairman of the Joint 
    Chiefs of Staff in the export control activities of the Department 
    of Defense after those subsections are implemented, together with a 
    discussion of how that role compares to the Chairman's role in 
    those activities before the implementation of those subsections.

SEC. 1522. RELEASE OF EXPORT INFORMATION BY DEPARTMENT OF COMMERCE TO 
              OTHER AGENCIES FOR PURPOSE OF NATIONAL SECURITY 
              ASSESSMENT.

    (a) Release of Export Information.--The Secretary of Commerce 
shall, upon the written request of an official specified in subsection 
(c), transmit to that official any information relating to exports that 
is held by the Department of Commerce and is requested by that official 
for the purpose of assessing national security risks. The Secretary 
shall transmit such information within 10 business days after receiving 
such a request.
    (b) Nature of Information.--The information referred to in 
subsection (a) includes information concerning--
        (1) export licenses issued by the Department of Commerce;
        (2) exports that were carried out under an export license 
    issued by the Department of Commerce; and
        (3) exports from the United States that were carried out 
    without an export license.
    (c) Requesting Officials.--The officials referred to in subsection 
(a) are the Secretary of State, the Secretary of Defense, the Secretary 
of Energy, and the Director of Central Intelligence. Each of those 
officials may delegate to any other official within their respective 
departments and agency the authority to request information under 
subsection (a).

SEC. 1523. NUCLEAR EXPORT REPORTING REQUIREMENT.

    (a) Notification of Congress.--The President shall notify Congress 
upon the granting of a license by the Nuclear Regulatory Commission for 
the export or reexport of any nuclear-related technology or equipment, 
including source material, special nuclear material, or equipment or 
material especially designed or prepared for the processing, use, or 
production of special nuclear material.
    (b) Applicability.--The requirements of this section shall apply 
only to an export or reexport to a country that--
        (1) the President has determined is a country that has 
    detonated a nuclear explosive device; and
        (2) is not a member of the North Atlantic Treaty Organization.

SEC. 1524. EXECUTION OF OBJECTION AUTHORITY WITHIN THE DEPARTMENT OF 
              DEFENSE.

    Section 1211 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1932) is amended by adding at 
the end the following new subsection:
    ``(g) Delegation of Objection Authority Within the Department of 
Defense.--For the purposes of the Department of Defense, the authority 
to issue an objection referred to in subsection (a) shall be executed 
for the Secretary of Defense by an official at the Assistant Secretary 
level within the office of the Under Secretary of Defense for Policy. 
In implementing subsection (a), the Secretary of Defense shall ensure 
that Department of Defense procedures maximize the ability of the 
Department of Defense to be able to issue an objection within the 10-
day period specified in subsection (c).''.

                Subtitle D--Counterproliferation Matters

SEC. 1531. ONE-YEAR EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR 
              SUPPORT OF UNITED NATIONS SPECIAL COMMISSION ON IRAQ.

    (a) Amount Authorized for Fiscal Year 1999.--The total amount of 
assistance for fiscal year 1999 provided by the Secretary of Defense 
under section 1505 of the Weapons of Mass Destruction Control Act of 
1992 (22 U.S.C. 5859a) that is provided for activities of the 
Department of Defense in support of the United Nations Special 
Commission on Iraq, may not exceed $15,000,000.
    (b) Extension of Authority To Provide Assistance.--Subsection (f) 
of section 1505 of the Weapons of Mass Destruction Control Act of 1992 
(22 U.S.C. 5859a) is amended by striking out ``1998'' and inserting in 
lieu thereof ``1999''.

SEC. 1532. SENSE OF CONGRESS ON NUCLEAR TESTS IN SOUTH ASIA.

    The Congress--
        (1) strongly condemns the decisions by the Governments of India 
    and Pakistan to conduct nuclear tests in May 1998;
        (2) calls for the Governments of India and Pakistan to commit 
    not to conduct any additional nuclear tests;
        (3) urges the Governments of India and Pakistan to take 
    immediate steps to reduce tensions between the two countries;
        (4) urges India and Pakistan to engage in high-level dialogue 
    aimed at reducing the likelihood of armed conflict, enacting 
    confidence and security building measures, and resolving areas of 
    dispute;
        (5) commends all nations to take steps which will reduce 
    tensions in South Asia, including appropriate measures to prevent 
    the transfer of technology that could further exacerbate the arms 
    race in South Asia, and thus avoid further deterioration of 
    security there;
        (6) calls upon the President, leaders of all nations, and the 
    United Nations to encourage a diplomatic, negotiated solution 
    between the Governments of India and Pakistan to promote peace and 
    stability in South Asia and resolve the current impasse;
        (7) encourages United States diplomatic leadership in assisting 
    the Governments of India and Pakistan to seek a negotiated 
    resolution of their 50-year conflict over the disputed territory in 
    Kashmir;
        (8) urges India and Pakistan to take immediate, binding, and 
    verifiable steps to roll back their nuclear programs and come into 
    compliance with internationally accepted norms regarding the 
    proliferation of weapons of mass destruction; and
        (9) urges the United States to reevaluate its bilateral 
    relationship with India and Pakistan, in light of the new regional 
    security realities in South Asia, with the goal of preventing 
    further nuclear and ballistic missile proliferation, diffusing 
    long-standing regional rivalries between India and Pakistan, and 
    securing commitments from India and Pakistan which, if carried out, 
    could result in a calibrated lifting of United States sanctions 
    imposed under the Arms Export Control Act and the Nuclear 
    Proliferation Prevention Act of 1994.

SEC. 1533. REPORT ON REQUIREMENTS FOR RESPONSE TO INCREASED MISSILE 
              THREAT IN ASIA-PACIFIC REGION.

    (a) Study.--The Secretary of Defense shall carry out a study of the 
architecture requirements for the establishment and operation of a 
theater ballistic missile defense system in the Asia-Pacific region 
that would have the capability to protect key regional allies of the 
United States.
    (b) Report.--(1) Not later than January 1, 1999, the Secretary 
shall submit to the Committee on National Security of the House of 
Representatives and the Committee on Armed Services of the Senate a 
report containing--
        (A) the results of the study conducted under subsection (a);
        (B) the factors used to obtain such results; and
        (C) a description of any United States missile defense system 
    currently deployed or under development that could be transferred 
    to key allies of the United States in the Asia-Pacific region to 
    provide for their self-defense against limited ballistic missile 
    attacks.
    (2) The report shall be submitted in both classified and 
unclassified form.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 1999''.

                            TITLE XXI--ARMY

Sec.2101.Authorized Army construction and land acquisition projects.
Sec.2102.Family housing.
Sec.2103.Improvements to military family housing units.
Sec.2104.Authorization of appropriations, Army.
Sec.2105.Modification of authority to carry out fiscal year 1998 
          projects.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:
---------------------------------------------------------------------------
  

                     Army: Inside the United States
------------------------------------------------------------------------
            State               Installation or location      Amount
------------------------------------------------------------------------
Alabama......................  Anniston Army Depot......      $3,550,000
                               Fort Rucker..............     $14,300,000
                               Redstone Arsenal.........      $1,550,000
Alaska.......................  Fort Wainwright..........     $22,600,000
California...................  Fort Irwin...............     $14,800,000
Georgia......................  Fort Benning.............     $28,600,000
Hawaii.......................  Schofield Barracks.......     $71,000,000
Illinois.....................  Rock Island Arsenal......      $5,300,000
Indiana......................  Crane Army Ammunition
                                Activity................      $7,100,000
Kansas.......................  Fort Riley...............     $41,000,000
Kentucky.....................  Blue Grass Army Depot....      $5,300,000
                               Fort Campbell............     $75,000,000
                               Fort Knox................     $23,000,000
Louisiana....................  Fort Polk................      $8,300,000
Maryland.....................  Fort Detrick.............      $3,550,000
                               Fort Meade...............      $5,300,000
Missouri.....................  Fort Leonard Wood........     $28,200,000
New Jersey...................  Fort Monmouth............      $7,600,000
                               Picatinny Arsenal........      $8,400,000
New York.....................  Fort Drum................      $4,650,000
                               United States Military
                                Academy, West Point.....     $85,000,000
North Carolina...............  Fort Bragg...............     $95,900,000
Oklahoma.....................  Fort Sill................     $13,800,000
                               McAlester Army Ammunition
                                Plant...................     $10,800,000
Texas........................  Fort Bliss...............      $4,100,000
                               Fort Hood................     $32,500,000
                               Fort Sam Houston.........     $27,300,000
Utah.........................  Tooele Army Depot........      $3,900,000
Virginia.....................  National Ground
                                Intelligence Center,
                                Charlottesville.........     $46,200,000
                               Fort Eustis..............     $41,181,000
                               Fort Myer................      $6,200,000
Washington...................  Fort Lewis...............     $18,200,000
CONUS Classified.............  Classified Location......      $4,600,000
                                                         ---------------
                                       Total............    $768,781,000
------------------------------------------------------------------------

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

                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Belgium........................  80th Area Support Group      $6,300,000
Germany........................  Schweinfurt............     $18,000,000
                                 Wurzburg...............      $4,250,000
Korea..........................  Camp Casey.............     $21,400,000
                                 Camp Castle............     $18,226,000
                                 Camp Humphreys.........      $8,500,000
                                 Camp Stanley...........      $5,800,000
Kwajalein......................  Kwajalein Atoll........     $48,600,000
                                                         ---------------
                                         Total..........    $131,076,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

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

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Alabama...............................  Redstone Arsenal.........  118 Units....................     $14,000,000
Hawaii................................  Schofield Barracks.......  64 Units.....................     $14,700,000
North Carolina........................  Fort Bragg...............  170 Units....................     $19,800,000
Texas.................................  Fort Hood................  154 Units....................     $21,600,000
Virginia..............................  Fort Lee.................  80 Units.....................     $13,000,000
                                                                                                 ---------------
                                                                       Total....................     $83,100,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2104(a)(5)(A), the 
Secretary of the Army may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of family housing units in an amount not to 
exceed $6,350,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may improve existing 
military family housing units in an amount not to exceed $48,479,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1998, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Army in the total amount of $2,098,713,000 as 
follows:
        (1) For military construction projects inside the United States 
    authorized by section 2101(a), $609,781,000.
        (2) For military construction projects outside the United 
    States authorized by section 2101(b), $95,076,000.
        (3) For unspecified minor construction projects authorized by 
    section 2805 of title 10, United States Code, $12,500,000.
        (4) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $64,269,000.
        (5) For military family housing functions:
            (A) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $137,929,000.
            (B) For support of military family housing (including the 
        functions described in section 2833 of title 10, United States 
        Code), $1,097,697,000.
        (6) For the construction of the missile software engineering 
    annex, phase II, Redstone Arsenal, Alabama, authorized by section 
    2101(a) of the Military Construction Authorization Act for Fiscal 
    Year 1998 (division B of Public Law 105-85; 111 Stat. 1966), 
    $13,600,000.
        (7) For the construction of a disciplinary barracks, phase II, 
    Fort Leavenworth, Kansas, authorized by section 2101(a) of the 
    Military Construction Authorization Act for Fiscal Year 1998, 
    $29,000,000.
        (8) For the construction of the whole barracks complex renewal, 
    Fort Sill, Oklahoma, authorized by section 2101(a) of the Military 
    Construction Authorization Act for Fiscal Year 1998, $20,500,000.
        (9) For rail yard expansion at Fort Carson, Colorado, 
    authorized by section 2101(a) of the Military Construction 
    Authorization Act for Fiscal Year 1998, $23,000,000.
        (10) For the construction of an aerial gunnery range at Fort 
    Drum, New York, authorized by section 2101(a) of the Military 
    Construction Authorization Act for Fiscal Year 1998, $9,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2101 of this 
Act may not exceed--
        (1) the total amount authorized to be appropriated under 
    paragraphs (1) and (2) of subsection (a);
        (2) $16,000,000 (the balance of the amount authorized under 
    section 2101(a) for the construction of a multipurpose digital 
    training range at Fort Knox, Kentucky);
        (3) $15,000,000 (the balance of the amount authorized under 
    section 2101(a) for the construction of a railhead facility at Fort 
    Hood, Texas);
        (4) $73,000,000 (the balance of the amount authorized under 
    section 2101(a) for the construction of a cadet development center 
    at the United States Military Academy, West Point, New York);
        (5) $36,000,000 (the balance of the amount authorized under 
    section 2101(b) for the construction of a powerplant on Roi Namur 
    Island at Kwajalein Atoll, Kwajalein);
        (6) $3,500,000 (the balance of the amount authorized under 
    section 2101(a) for the construction of the whole barracks complex 
    renewal at Fort Wainwright, Alaska);
        (7) $24,500,000 (the balance of the amount authorized under 
    section 2101(a) for the construction of the whole barracks complex 
    renewal at Fort Riley, Kansas); and
        (8) $27,000,000 (the balance of the amount authorized under 
    section 2101(a) for the construction of the whole barracks complex 
    renewal at Fort Campbell, Kentucky).
    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (10) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--
        (1) $2,639,000, which represents the combination of project 
    savings in military family housing construction resulting from 
    favorable bids, reduced overhead costs, and cancellations due to 
    force structure changes;
        (2) $3,000,000, which represents the combination of savings in 
    military family housing support resulting from favorable bids, 
    reduced overhead costs, and cancellations due to force structure 
    changes; and
        (3) $8,000,000, which represents the combination of project 
    savings in military construction resulting from favorable bids, 
    reduced overhead costs, and cancellations due to force structure 
    changes.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1998 
              PROJECTS.

    (a) Modification.--The table in section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 1998 (division B of 
Public Law 105-85; 111 Stat. 1967) is amended--
        (1) in the item relating to Fort Drum, New York, by striking 
    out ``$24,400,000'' in the amount column and inserting in lieu 
    thereof ``$24,900,000'';
        (2) in the item relating to Fort Sill, Oklahoma, by striking 
    out ``$25,000,000'' in the amount column and inserting in lieu 
    thereof ``$28,500,000''; and
        (3) by striking out the amount identified as the total in the 
    amount column and inserting in lieu thereof ``$602,750,000''.
    (b) Conforming Amendments.--Section 2104 of that Act (111 Stat. 
1968) is amended--
        (1) in subsection (a)--
            (A) in the matter preceding paragraph (1), by striking out 
        ``$2,010,466,000'' and inserting in lieu thereof 
        ``$2,013,966,000''; and
            (B) in paragraph (1), by striking out ``$435,350,000'' and 
        inserting in lieu thereof ``$438,850,000''; and
        (2) in subsection (b)(8), by striking out ``$8,500,000'' and 
    inserting in lieu thereof ``$9,000,000''.

                            TITLE XXII--NAVY

Sec.2201.Authorized Navy construction and land acquisition projects.
Sec.2202.Family housing.
Sec.2203.Improvements to military family housing units.
Sec.2204.Authorization of appropriations, Navy.
Sec.2205.Authorization to accept road construction project, Marine Corps 
          Base, Camp Lejeune, North Carolina.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:
---------------------------------------------------------------------------
  

                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air            $11,010,000
                                  Station, Yuma.
                                 Naval Observatory
                                  Detachment, Flagstaff.        $990,000
California.....................  Marine Corps Air
                                  Station, Miramar......     $29,570,000
                                 Marine Corps Base, Camp
                                  Pendleton.............     $40,430,000
                                 Naval Air Station,          $20,640,000
                                  Lemoore.
                                 Naval Air Warfare           $10,140,000
                                  Center Weapons
                                  Division, China Lake.
                                 Naval Facility, San
                                  Clemente Island.......      $8,350,000
                                 Naval Submarine Base,       $11,400,000
                                  San Diego.
Connecticut....................  Naval Submarine Base,
                                  New London............     $11,330,000
District of Columbia...........  Naval District,                $790,000
                                  Washington.
Florida........................  Naval Air Station, Key       $3,730,000
                                  West.
                                 Naval Air Station,           $1,500,000
                                  Jacksonville.
                                 Naval Air Station,           $1,400,000
                                  Whiting Field.
                                 Naval Station, Mayport.      $6,163,000
Georgia........................  Marine Corps Logistics
                                  Base, Albany..........      $2,800,000
                                 Naval Submarine Base,
                                  Kings Bay.............      $2,550,000
Hawaii.........................  Fleet and Industrial
                                  Supply Center, Pearl
                                  Harbor................      $9,730,000
                                 Marine Corps Air
                                  Station, Kaneohe Bay..     $46,410,000
                                 Naval Communications &
                                  Telecommunications
                                  Area Master Station
                                  Eastern Pacific,
                                  Wahiawa...............      $1,970,000
                                 Naval Shipyard, Pearl       $11,400,000
                                  Harbor.
                                 Naval Station, Pearl        $18,180,000
                                  Harbor.
                                 Naval Submarine Base,
                                  Pearl Harbor..........      $8,060,000
                                 Navy Public Works
                                  Center, Pearl Harbor..     $28,967,000
Illinois.......................  Naval Training Center,
                                  Great Lakes...........     $19,950,000
Indiana........................  Naval Surface Warfare
                                  Center, Crane.........     $11,110,000
Maryland.......................  Naval Surface Warfare
                                  Center, Indian Head
                                  Division, Indian Head.     $13,270,000
                                 United States Naval
                                  Academy...............      $4,300,000
Mississippi....................  Naval Air Station,           $3,280,000
                                  Meridian.
                                 Naval Construction
                                  Battalion Center,
                                  Gulfport..............     $10,670,000
North Carolina.................  Marine Corps Air
                                  Station, Cherry Point.      $6,040,000
                                 Marine Corps Base, Camp
                                  LeJeune...............     $14,600,000
Pennsylvania...................  Naval Surface Warfare
                                  Center Ship Systems
                                  Engineering Station,
                                  Philadelphia..........      $2,410,000
                                 Naval Inventory Control
                                  Point, Mechanicsburg..      $1,600,000
                                 Naval Inventory Control
                                  Point, Philadelphia...      $1,550,000
Rhode Island...................  Naval Education and
                                  Training Center,
                                  Newport...............      $5,630,000
                                 Naval Undersea Warfare
                                  Center Division,
                                  Newport...............      $9,140,000
South Carolina.................  Marine Corps Air
                                  Station, Beaufort.....      $1,770,000
                                 Marine Corps Reserve
                                  Detachment, Parris
                                  Island................     $15,990,000
                                 Naval Weapons Station,
                                  Charleston............      $9,737,000
Texas..........................  Naval Station,              $12,200,000
                                  Ingleside.
Virginia.......................  Fleet and Industrial
                                  Supply Center, Norfolk
                                  (Craney Island).......      $1,770,000
                                 Fleet Training Center,       $5,700,000
                                  Norfolk.
                                 Naval Air Station,           $6,400,000
                                  Oceana.
                                 Naval Shipyard,
                                  Norfolk, Portsmouth...      $6,180,000
                                 Naval Station, Norfolk.     $45,530,000
                                 Naval Surface Warfare
                                  Center, Dahlgren......     $15,680,000
                                 Tactical Training Group
                                  Atlantic, Dam Neck....      $2,430,000
Washington.....................  Naval Shipyard, Puget        $4,300,000
                                  Sound.
                                 Strategic Weapons
                                  Facility Pacific,
                                  Bremerton.............      $2,750,000
                                                         ---------------
                                         Total..........    $521,497,000
------------------------------------------------------------------------

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

                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Greece.........................  Naval Support Activity,
                                  Souda Bay.............      $5,260,000
Guam...........................  Naval Activities, Guam.     $10,310,000
Italy..........................  Naval Support Activity,     $18,270,000
                                  Naples.
United Kingdom.................  Joint Maritime
                                  Communications Center,
                                  St. Mawgan............      $2,010,000
                                                         ---------------
                                         Total..........     $35,850,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

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

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Naval Air Station, Lemoore  162 Units.................     $30,379,000
Hawaii..................................  Navy Public Works Center,
                                           Pearl Harbor.............  150 Units.................     $29,125,000
                                                                                                 ---------------
                                                                          Total.................     $59,504,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2204(a)(5)(A), the 
Secretary of the Navy may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $15,618,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $227,791,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1998, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Navy in the total amount of $1,812,476,000 as 
follows:
        (1) For military construction projects inside the United States 
    authorized by section 2201(a), $503,997,000.
        (2) For military construction projects outside the United 
    States authorized by section 2201(b), $35,850,000.
        (3) For unspecified minor construction projects authorized by 
    section 2805 of title 10, United States Code, $9,900,000.
        (4) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $60,846,000.
        (5) For military family housing functions:
            (A) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $302,913,000.
            (B) For support of military housing (including functions 
        described in section 2833 of title 10, United States Code), 
        $915,293,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2201 of this 
Act may not exceed--
        (1) the total amount authorized to be appropriated under 
    paragraphs (1) and (2) of subsection (a);
        (2) $13,500,000 (the balance of the amount authorized under 
    section 2202(a) for the construction of a berthing pier at Naval 
    Station, Norfolk, Virginia); and
        (3) $4,000,000 (the balance of the amount authorized under 
    section 2201(a) for the construction of a bachelor enlisted 
    quarters at Marine Corps Air Station, Kaneohe Bay, Hawaii).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (5) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--
        (1) $7,323,000, which represents the combination of project 
    savings in military family housing construction resulting from 
    favorable bids, reduced overhead costs, and cancellations due to 
    force structure changes;
        (2) $3,000,000, which represents the combination of savings in 
    military family housing support resulting from favorable bids, 
    reduced overhead costs, and cancellations due to force structure 
    changes; and
        (3) $6,000,000, which represents the combination of project 
    savings in military construction resulting from favorable bids, 
    reduced overhead costs, and cancellations due to force structure 
    changes.

SEC. 2205. AUTHORIZATION TO ACCEPT ROAD CONSTRUCTION PROJECT, MARINE 
              CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA.

    The Secretary of the Navy may accept from the State of North 
Carolina a road construction project valued at approximately 
$2,000,000, which is to be constructed at Marine Corps Base, Camp 
Lejeune, North Carolina, in accordance with plans and specifications 
acceptable to the Secretary.

                         TITLE XXIII--AIR FORCE

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

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

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

                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $19,398,000
Alaska.........................  Eielson Air Force Base.      $4,352,000
Arizona........................  Luke Air Force Base....      $3,400,000
Arkansas.......................  Little Rock Air Force        $1,500,000
                                  Base.
California.....................  Edwards Air Force Base.     $10,361,000
                                 Travis Air Force Base..      $4,250,000
                                 Vandenberg Air Force        $18,709,000
                                  Base.
Colorado.......................  Falcon Air Force             $9,601,000
                                  Station.
                                 United States Air Force
                                  Academy...............      $4,413,000
District of Columbia...........  Bolling Air Force Base.      $2,948,000
Florida........................  Eglin Air Force Base...     $20,437,000
                                 Eglin Auxiliary Field 9      $3,837,000
                                 MacDill Air Force Base.      $9,808,000
                                 Tyndall Air Force Base.      $3,600,000
Georgia........................  Robins Air Force Base..     $11,894,000
Hawaii.........................  Hickam Air Force Base..      $5,890,000
Idaho..........................  Mountain Home Air Force
                                  Base..................     $17,897,000
Kansas.........................  McConnell Air Force          $4,450,000
                                  Base.
Louisiana......................  Barksdale Air Force          $9,300,000
                                  Base.
Maryland.......................  Andrews Air Force Base.      $4,448,000
Massachusetts..................  Hanscom Air Force Base.     $10,000,000
Mississippi....................  Columbus Air Force Base      $5,700,000
                                 Keesler Air Force Base.     $35,526,000
Montana........................  Malmstrom Air Force          $7,900,000
                                  Base.
Nevada.........................  Indian Springs Air
                                  Force Auxiliary Air
                                  Field.................     $15,013,000
                                 Nellis Air Force Base..      $6,378,000
New Jersey.....................  McGuire Air Force Base.      $6,044,000
New Mexico.....................  Holloman Air Force Base     $11,100,000
                                 Kirtland Air Force Base      $8,574,000
North Carolina.................  Seymour Johnson Air
                                  Force Base............      $6,100,000
North Dakota...................  Grand Forks Air Force       $11,486,000
                                  Base.
                                 Minot Air Force Base...      $8,500,000
Ohio...........................  Wright-Patterson Air
                                  Force Base............     $22,000,000
Oklahoma.......................  Altus Air Force Base...      $9,300,000
                                 Tinker Air Force Base..     $24,985,000
                                 Vance Air Force Base...      $6,223,000
South Carolina.................  Charleston Air Force        $24,330,000
                                  Base.
South Dakota...................  Ellsworth Air Force          $6,500,000
                                  Base.
Tennessee......................  Arnold Air Force Base..     $11,600,000
Texas..........................  Dyess Air Force Base...      $4,750,000
                                 Goodfellow Air Force         $7,300,000
                                  Base.
                                 Lackland Air Force Base     $14,930,000
                                 Laughlin Air Force Base      $7,315,000
                                 Randolph Air Force Base      $3,166,000
Utah...........................  Hill Air Force Base....      $2,600,000
Washington.....................  Fairchild Air Force         $15,220,000
                                  Base.
                                 McChord Air Force Base.     $51,847,000
                                                         ---------------
                                       Total............    $514,880,000
------------------------------------------------------------------------

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

                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Spangdahlem Air Base...      $9,501,000
Korea..........................  Kunsan Air Base........      $5,958,000
                                 Osan Air Base..........      $7,496,000
Turkey.........................  Incirlik Air Base......      $2,949,000
United Kingdom.................  Royal Air Force,            $15,838,000
                                  Lakenheath.
                                 Royal Air Force,            $24,960,000
                                  Mildenhall.
                                                         ---------------
                                       Total............     $66,702,000
------------------------------------------------------------------------


SEC. 2302. FAMILY HOUSING.

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

  

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Alabama...............................  Maxwell Air Force Base...  143 Units....................     $16,300,000
Alaska................................  Eielson Air Force Base...  46 Units.....................     $12,932,000
California............................  Edwards Air Force Base...  48 Units.....................     $12,580,000
                                        Vandenberg Air Force Base  95 Units.....................     $18,499,000
Delaware..............................  Dover Air Force Base.....  55 Units.....................      $8,998,000
Florida...............................  MacDill Air Force Base...  48 Units.....................      $7,609,000
                                        Patrick Air Force Base...  46 Units.....................      $9,692,000
                                        Tyndall Air Force Base...  122 Units....................     $14,500,000
Mississippi...........................  Columbus Air Force Base..  52 Units.....................      $6,800,000
                                        Keesler Air Force Base...  52 Units.....................      $6,800,000
Montana...............................  Malmstrom Air Force Base.  50 Units.....................     $10,000,000
Nebraska..............................  Offutt Air Force Base....  Ancillary Facility...........        $870,000
                                        Offutt Air Force Base....  Ancillary Facility...........        $900,000
                                        Offutt Air Force Base....  90 Units.....................     $12,212,000
Nevada................................  Nellis Air Force Base....  28 Units.....................      $5,000,000
New Mexico............................  Kirtland Air Force Base..  37 Units.....................      $6,400,000
Ohio..................................  Wright-Patterson Air
                                         Force Base..............  40 Units.....................      $5,600,000
Texas.................................  Dyess Air Force Base.....  64 Units.....................      $9,415,000
                                        Sheppard Air Force Base..  65 Units.....................      $7,000,000
Washington............................  Fairchild Air Force Base.  Ancillary Facility...........      $1,692,000
                                        Fairchild Air Force Base.  14 Units.....................      $2,300,000
                                                                                                 ---------------
                                                                       Total....................    $176,099,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(5)(A), the 
Secretary of the Air Force may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $11,342,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(5)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$104,108,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1998, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Air Force in the total amount of 
$1,679,978,000 as follows:
        (1) For military construction projects inside the United States 
    authorized by section 2301(a), $514,880,000.
        (2) For military construction projects outside the United 
    States authorized by section 2301(b), $66,702,000.
        (3) For unspecified minor construction projects authorized by 
    section 2805 of title 10, United States Code, $8,135,000.
        (4) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $38,092,000.
        (5) For military housing functions:
            (A) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $291,549,000.
            (B) For support of military family housing (including the 
        functions described in section 2833 of title 10, United States 
        Code), $785,204,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2301 of this 
Act may not exceed the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (5) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--
        (1) $10,584,000, which represents the combination of project 
    savings in military family housing construction resulting from 
    favorable bids, reduced overhead costs, and cancellations due to 
    force structure changes;
        (2) $2,000,000,000, which represents the combination of savings 
    in military family housing support resulting from favorable bids, 
    reduced overhead costs, and cancellations due to force structure 
    changes; and
        (3) $12,000,000, which represents the combination of project 
    savings in military construction resulting from favorable bids, 
    reduced overhead costs, and cancellations due to force structure 
    changes.

                      TITLE XXIV--DEFENSE AGENCIES

Sec.2401.Authorized Defense Agencies construction and land acquisition 
          projects.
Sec.2402.Improvements to military family housing units.
Sec.2403.Energy conservation projects.
Sec.2404.Authorization of appropriations, Defense Agencies.
Sec.2405.Repeal of fiscal year 1997 authorization of appropriations for 
          certain military housing improvement program.
Sec.2406.Modification of authority to carry out certain fiscal year 1995 
          projects.
Sec.2407.Modification of authority to carry out fiscal year 1990 
          project.

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

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(1), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:
---------------------------------------------------------------------------
  

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Chemical Demilitarization......  Aberdeen Proving
                                  Ground, Maryland......    $186,350,000
                                 Newport Army Depot,
                                  Indiana...............    $191,550,000
Defense Logistics Agency.......  Defense Fuel Support
                                  Point, Fort Sill,
                                  Oklahoma..............      $3,500,000
                                 Defense Fuel Support
                                  Point, Jacksonville
                                  Annex, Mayport,
                                  Florida...............     $11,020,000
                                 Defense Fuel Support
                                  Point, Jacksonville,
                                  Florida...............     $11,000,000
                                 Defense General Supply
                                  Center, Richmond
                                  (DLA), Virginia.......     $10,500,000
                                 Defense Fuel Supply
                                  Center, Camp Shelby,
                                  Mississippi...........      $5,300,000
                                 Defense Fuel Supply
                                  Center, Elmendorf Air
                                  Force Base, Alaska....     $19,500,000
                                 Defense Fuel Supply
                                  Center, Pope Air Force
                                  Base, North Carolina..      $4,100,000
                                 Various Locations......      $1,300,000
Defense Medical Facilities
 Office........................  Barksdale Air Force
                                  Base, Louisiana.......      $3,450,000
                                 Beale Air Force Base,
                                  California............      $3,500,000
                                 Carlisle Barracks,
                                  Pennsylvania..........      $4,678,000
                                 Cheatham Annex,             $11,300,000
                                  Virginia.
                                 Edwards Air Force Base,
                                  California............      $6,000,000
                                 Eglin Air Force Base,        $9,200,000
                                  Florida.
                                 Fort Bragg, North            $6,500,000
                                  Carolina.
                                 Fort Hood, Texas.......     $14,100,000
                                 Fort Stewart/Hunter
                                  Army Air Field,
                                  Georgia...............     $10,400,000
                                 Grand Forks Air Force
                                  Base, North Dakota....      $5,600,000
                                 Holloman Air Force
                                  Base, New Mexico......      $1,300,000
                                 Keesler Air Force Base,
                                  Mississippi...........        $700,000
                                 Marine Corps Air
                                  Station, Camp
                                  Pendleton, California.      $6,300,000
                                 McChord Air Force Base,
                                  Washington............     $20,000,000
                                 Moody Air Force Base,
                                  Georgia...............     $11,000,000
                                 Naval Air Station,
                                  Pensacola, Florida....     $25,400,000
                                 Naval Hospital,
                                  Bremerton, Washington.     $28,000,000
                                 Naval Hospital, Great
                                  Lakes, Illinois.......      $7,100,000
                                 Naval Station, San
                                  Diego, California.....      $1,350,000
                                 Naval Submarine Base,
                                  Bangor, Washington....      $5,700,000
                                 Travis Air Force Base,
                                  California............      $1,700,000
Defense Education Activity.....  Marine Corps Base, Camp
                                  LeJeune, North
                                  Carolina..............     $16,900,000
                                 United States Military
                                  Academy, West Point,
                                  New York..............      $2,840,000
National Security Agency.......  Fort Meade, Maryland...        $668,000
Special Operations Command.....  Eglin Auxiliary Field
                                  3, Florida............      $7,310,000
                                 Eglin Auxiliary Field
                                  9, Florida............      $2,400,000
                                 Fort Campbell, Kentucky     $15,000,000
                                 MacDill Air Force Base,
                                  Florida...............      $8,400,000
                                 Naval Amphibious Base,
                                  Coronado, California..      $3,600,000
                                 Stennis Space Center,
                                  Mississippi...........      $5,500,000
                                                         ---------------
                                         Total..........    $690,016,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:
---------------------------------------------------------------------------
  

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Logistics Agency.......  Lajes Field, Azores,
                                  Portugal..............      $7,700,000
Defense Medical Facilities
 Office........................  Naval Air Station,
                                  Sigonella, Italy......      $5,300,000
                                 Royal Air Force,
                                  Lakenheath, United
                                  Kingdom...............     $10,800,000
Defense Education Activity.....  Fort Buchanan, Puerto
                                  Rico..................      $8,805,000
                                 Naval Activities, Guam.     $13,100,000
Special Operations Command.....  Naval Station,
                                  Roosevelt Roads,
                                  Puerto Rico...........      $9,600,000
                                                         ---------------
                                         Total..........     $55,305,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2404(a)(11)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $345,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(9), the Secretary of Defense may 
carry out energy conservation projects under section 2865 of title 10, 
United States Code.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1998, for military 
construction, land acquisition, and military family housing functions 
of the Department of Defense (other than the military departments) in 
the total amount of $2,223,260,000 as follows:
        (1) For military construction projects inside the United States 
    authorized by section 2401(a), $369,966,000.
        (2) For military construction projects outside the United 
    States authorized by section 2401(a), $55,305,000.
        (3) For construction of the Ammunition Demilitarization 
    Facility, Pine Bluff Arsenal, Arkansas, authorized by section 2401 
    of the Military Construction Authorization Act for Fiscal Year 1995 
    (division B of Public Law 103-337; 108 Stat. 3040), as amended by 
    section 2407 of the Military Construction Authorization Act for 
    Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 539), 
    section 2408 of the Military Construction Authorization Act for 
    Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 1982), 
    and section 2406 of this Act, $16,500,000.
        (4) For construction of the Ammunition Demilitarization 
    Facility, Umatilla Army Depot, Oregon, authorized by section 2401 
    of the Military Construction Authorization Act for Fiscal Year 
    1995, as amended by section 2407 of the Military Construction 
    Authorization Act for Fiscal Year 1996, section 2408 of the 
    Military Construction Authorization Act for Fiscal Year 1998, and 
    section 2406 of this Act, $50,950,000.
        (5) For military construction projects at Portsmouth Naval 
    Hospital, Virginia, hospital replacement, authorized by section 
    2401(a) of the Military Construction Authorization Act for Fiscal 
    Years 1990 and 1991 (division B of Public Law 101-189; 106 Stat. 
    1640), as amended by section 2407 of this Act, $17,954,000.
        (6) For unspecified minor construction projects under section 
    2805 of title 10, United States Code, $13,394,000.
        (7) For contingency construction projects of the Secretary of 
    Defense under section 2804 of title 10, United States Code, 
    $4,890,000.
        (8) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $41,005,000.
        (9) For energy conservation projects authorized by section 
    2403, $46,950,000.
        (10) For base closure and realignment activities as authorized 
    by the Defense Base Closure and Realignment Act of 1990 (part A of 
    title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), 
    $1,630,902,000.
        (11) For military family housing functions:
            (A) For improvement of military family housing and 
        facilities, $345,000.
            (B) For support of military housing (including functions 
        described in section 2833 of title 10, United States Code), 
        $36,899,000 of which not more than $31,139,000 may be obligated 
        or expended for the leasing of military family housing units 
        worldwide.
            (C) For credit to the Department of Defense Family Housing 
        Improvement Fund established by section 2883(a)(1) of title 10, 
        United States Code, $2,000,000.
    (b) Limitation of Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2401 of this 
Act may not exceed--
        (1) the total amount authorized to be appropriated under 
    paragraphs (1) and (2) of subsection (a);
        (2) $162,050,000 (the balance of the amount authorized under 
    section 2401(a) for the construction of the Ammunition 
    Demilitarization Facility at Newport Army Depot, Indiana); and
        (3) $158,000,000 (the balance of the amount authorized under 
    section 2401(a) for the construction of the Ammunition 
    Demilitarization Facility at Aberdeen Proving Ground, Maryland).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (11) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by $63,800,000 (of which $50,500,000 represents savings from military 
construction for chemical demilitarization), which represents the 
combination of project savings in military construction resulting from 
favorable bids, reduced overhead costs, and cancellations due to force 
structure changes.

SEC. 2405. REPEAL OF FISCAL YEAR 1997 AUTHORIZATION OF APPROPRIATIONS 
              FOR CERTAIN MILITARY HOUSING IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 2406(a) of the 
Military Construction Authorization Act for Fiscal Year 1997 (division 
B of Public Law 104-201; 110 Stat. 2778) is amended--
        (1) by striking out ``$3,379,703,000'' and inserting in lieu 
    thereof ``$3,374,703,000''; and
        (2) in paragraph (14), by striking out subparagraph (D).
    (b) Credit and Use of Funds.--Section 2404 of that Act (110 Stat. 
2777) is amended--
        (1) in subsection (a)--
            (A) by striking out ``(1)'' before ``Of''; and
            (B) by striking out paragraph (2); and
        (2) in subsection (b)--
            (A) by striking out ``(1)'' before ``The'';
            (B) by striking out ``subsection (a)(1)'' and inserting in 
        lieu thereof ``subsection (a)''; and
            (C) by striking out paragraph (2).

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              1995 PROJECTS.

    The table in section 2401 of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public Law 103-
337; 108 Stat. 3040), as amended by section 2407 of the Military 
Construction Authorization Act for Fiscal Year 1996 (division B of 
Public Law 104-106; 110 Stat. 539) and section 2408 of the Military 
Construction Authorization Act for Fiscal Year 1998 (division B of 
Public Law 105-85; 111 Stat. 1982), under the agency heading relating 
to Chemical Weapons and Munitions Destruction, is amended--
        (1) in the item relating to Pine Bluff Arsenal, Arkansas, by 
    striking out ``$134,000,000'' in the amount column and inserting in 
    lieu thereof ``$154,400,000''; and
        (2) in the item relating to Umatilla Army Depot, Oregon, by 
    striking out ``$187,000,000'' in the amount column and inserting in 
    lieu thereof ``$193,377,000''.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1990 
              PROJECT.

    (a) Increase.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Years 1990 and 1991 (division 
B of Public Law 100-189; 103 Stat. 1640) is amended in the item 
relating to Portsmouth Naval Hospital, Virginia, by striking out 
``$330,000,000'' and inserting in lieu thereof ``$351,354,000''.
    (b) Conforming Amendment.--Section 2405(b)(2) of that Act (103 
Stat. 1642) is amended by striking out ``$321,500,000'' and inserting 
in lieu thereof ``$342,854,000''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec.2501.Authorized NATO construction and land acquisition projects.
Sec.2502.Authorization of appropriations, NATO.

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment program as provided in 
section 2806 of title 10, United States Code, in an amount not to 
exceed the sum of the amount authorized to be appropriated for this 
purpose in section 2502 and the amount collected from the North 
Atlantic Treaty Organization as a result of construction previously 
financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 1998, for contributions by the Secretary 
of Defense under section 2806 of title 10, United States Code, for the 
share of the United States of the cost of projects for the North 
Atlantic Treaty Organization Security Investment program authorized by 
section 2501, in the amount of $154,000,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec.2601.Authorized Guard and Reserve construction and land acquisition 
          projects.
Sec.2602.Modification of authority to carry out fiscal year 1998 
          project.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years beginning after September 30, 1998, for 
the costs of acquisition, architectural and engineering services, and 
construction of facilities for the Guard and Reserve Forces, and for 
contributions therefor, under chapter 1803 of title 10, United States 
Code (including the cost of acquisition of land for those facilities), 
the following amounts:
        (1) For the Department of the Army--
            (A) for the Army National Guard of the United States, 
        $142,403,000; and
            (B) for the Army Reserve, $102,119,000.
        (2) For the Department of the Navy, for the Naval and Marine 
    Corps Reserve, $31,621,000.
        (3) For the Department of the Air Force--
            (A) for the Air National Guard of the United States, 
        $169,801,000; and
            (B) for the Air Force Reserve, $34,371,000.
    (b) Adjustment.--(1) The amount authorized to be appropriated 
pursuant to subsection (a)(1)(A) is reduced by $2,000,000, which 
represents the combination of project savings in military construction 
resulting from favorable bids, reduced overhead costs, and 
cancellations due to force structure changes.
    (2) The amount authorized to be appropriated pursuant to subsection 
(a)(3)(A) is reduced by $4,000,000, which represents the combination of 
project savings in military construction resulting from favorable bids, 
reduced overhead costs, and cancellations due to force structure 
changes.

SEC. 2602. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1998 
              PROJECT.

    Section 2603 of the Military Construction Authorization Act for 
Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 1983) is 
amended to read as follows:

``SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, SALT LAKE CITY, UTAH.

    ``With regard to the military construction project for the Army 
Reserve concerning construction of a reserve center and organizational 
maintenance shop at an appropriate site in, or in the vicinity of, Salt 
Lake City, Utah, to be carried out using funds appropriated pursuant to 
the authorization of appropriations in section 2601(a)(1)(B), the 
Secretary of the Army shall enter into an agreement with the State of 
Utah under which the State agrees to provide financial or in-kind 
contributions in connection with the project.''.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec.2701.Expiration of authorizations and amounts required to be 
          specified by law.
Sec.2702.Extension of authorizations of certain fiscal year 1996 
          projects.
Sec.2703.Extension of authorization of fiscal year 1995 project.
Sec.2704.Effective date.

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

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
        (1) October 1, 2001; or
        (2) the date of enactment of an Act authorizing funds for 
    military construction for fiscal year 2002.
    (b) Exception.--Subsection (a) shall not apply to authorizations 
for military construction projects, land acquisition, family housing 
projects and facilities, and contributions to the North Atlantic Treaty 
Organization Security Investment program (and authorizations of 
appropriations therefor), for which appropriated funds have been 
obligated before the later of--
        (1) October 1, 2001; or
        (2) the date of enactment of an Act authorizing funds for 
    fiscal year 2002 for military construction projects, land 
    acquisition, family housing projects and facilities, or 
    contributions to the North Atlantic Treaty Organization Security 
    Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1996 
              PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1996 (division B of 
Public Law 104-106; 110 Stat. 541), authorizations for the projects set 
forth in the tables in subsection (b), as provided in section 2201, 
2202, 2302, or 2601 of that Act, shall remain in effect until October 
1, 1999, or the date of enactment of an Act authorizing funds for 
military construction for fiscal year 2000, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:
---------------------------------------------------------------------------
  

                                 Navy: Extension of 1996 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Puerto Rico...........................  Naval Station Roosevelt
                                         Roads...................  Housing Office...............        $710,000
California............................  Camp Pendleton...........  Family Housing Construction
                                                                    (138 units).................     $20,000,000
----------------------------------------------------------------------------------------------------------------


                               Air Force: Extension of 1996 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Texas.................................  Lackland Air Force Base..  Family Housing (67 units)....      $6,200,000
----------------------------------------------------------------------------------------------------------------


                          Army National Guard: Extension of 1996 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Mississippi...........................  Camp Shelby..............  Multipurpose Range Complex
                                                                    (Phase I)...................      $5,000,000
Missouri..............................  National Guard Training
                                         Site, Jefferson City....  Multipurpose Range...........      $2,236,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATION OF FISCAL YEAR 1995 PROJECT.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1995 (division B of 
Public Law 103-337; 108 Stat. 3046), the authorization for the project 
set forth in the table in subsection (b), as provided in section 2201 
of that Act and extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 1998 (division B of Public Law 105-
85; 111 Stat. 1985), shall remain in effect until October 1, 1999, or 
the date of enactment of an Act authorizing funds for military 
construction for fiscal year 2000, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as follows:
---------------------------------------------------------------------------
  

                                  Navy: Extension of 1995 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Maryland..............................  Indian Head Naval Surface
                                         Warfare Center..........  Denitrification/Acid Mixing
                                                                    Facility....................      $6,400,000
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on 
the later of--
        (1) October 1, 1998; or
        (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec.2801.Architectural and engineering services and construction design.
Sec.2802.Expansion of Army overseas family housing lease authority.
Sec.2803.Definition of ancillary supporting facilities under alternative 
          authority for acquisition and improvement of military housing.
Sec.2804.Purchase of build-to-lease family housing at Eielson Air Force 
          Base, Alaska.
Sec.2805.Report relating to improvement of housing for unaccompanied 
          members.

         Subtitle B--Real Property and Facilities Administration

Sec.2811.Exceptions to real property transaction reporting requirements 
          for war and certain emergency and other operations.
Sec.2812.Restoration of Department of Defense lands used by another 
          Federal agency.
Sec.2813.Outdoor recreation development on military installations for 
          disabled veterans, military dependents with disabilities, and 
          other persons with disabilities.
Sec.2814.Report on leasing and other alternative uses of nonexcess 
          military property.
Sec.2815.Report on implementation of utility system conveyance 
          authority.

            Subtitle C--Defense Base Closure and Realignment

Sec.2821.Applicability of property disposal laws to leases at 
          installations to be closed or realigned under base closure 
          laws.
Sec.2822.Elimination of waiver authority regarding prohibition against 
          certain conveyances of property at Naval Station, Long Beach, 
          California.
Sec.2823.Payment of stipulated penalties assessed under CERCLA in 
          connection with McClellan Air Force Base, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec.2831.Modification of land conveyance, Army Reserve Center, 
          Youngstown, Ohio.
Sec.2832.Release of interests in real property, former Kennebec Arsenal, 
          Augusta, Maine.
Sec.2833.Release, waiver, or conveyance of interests in real property, 
          former Redstone Army Arsenal property, Alabama.
Sec.2834.Conveyance of utility systems, Lone Star Army Ammunition Plant, 
          Texas.
Sec.2835.Conveyance of water rights and related interests, Rocky 
          Mountain Arsenal, Colorado, for purposes of acquisition of 
          perpetual contracts for water.
Sec.2836.Land conveyance, Army Reserve Center, Massena, New York.
Sec.2837.Land conveyance, Army Reserve Center, Ogdensburg, New York.
Sec.2838.Land conveyance, Army Reserve Center, Jamestown, Ohio.
Sec.2839.Land conveyance, Army Reserve Center, Peoria, Illinois.
Sec.2840.Land conveyance, Army Reserve Center, Bridgton, Maine.
Sec.2841.Land conveyance, Fort Sheridan, Illinois.
Sec.2842.Land conveyance, Skaneateles, New York.
Sec.2843.Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
          Indiana.
Sec.2844.Land conveyance, Volunteer Army Ammunition Plant, Chattanooga, 
          Tennessee.
Sec.2845.Land conveyance, Stewart Amy Sub-Post, New Windsor, New York.

                        Part II--Navy Conveyances

Sec.2851.Conveyance of easement, Marine Corps Base, Camp Pendleton, 
          California.
Sec.2852.Land exchange, Naval Reserve Readiness Center, Portland, Maine.
Sec.2853.Land conveyance, Naval and Marine Corps Reserve facility, 
          Youngstown, Ohio.
Sec.2854.Land conveyance, Naval Air Reserve Center, Minneapolis, 
          Minnesota.

                     Part III--Air Force Conveyances

Sec.2861.Modification of land conveyance, Eglin Air Force Base, Florida.
Sec.2862.Modification of land conveyance, Finley Air Force Station, 
          North Dakota.
Sec.2863.Land conveyance, Lake Charles Air Force Station, Louisiana.
Sec.2864.Land conveyance, Air Force Housing Facility, La Junta, 
          Colorado.

                        Subtitle E--Other Matters

Sec.2871.Modification of authority relating to Department of Defense 
          Laboratory Revitalization Demonstration Program.
Sec.2872.Repeal of prohibition on joint use of Gray Army Airfield, Fort 
          Hood, Texas, with civil aviation.
Sec.2873.Modification of demonstration project for purchase of fire, 
          security, police, public works, and utility services from 
          local government agencies.
Sec.2874.Designation of building containing Navy and Marine Corps 
          Reserve Center, Augusta, Georgia.

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

SEC. 2801. ARCHITECTURAL AND ENGINEERING SERVICES AND CONSTRUCTION 
              DESIGN.

    (a) Increase in Threshold for Notice to Congress.-- Subsection (b) 
of section 2807 of title 10, United States Code, is amended by striking 
out ``$300,000'' and inserting in lieu thereof ``$500,000''.
    (b) Availability of Appropriations.--Subsection (d) of that section 
is amended by striking out ``study, planning, design, architectural, 
and engineering services'' and inserting in lieu thereof 
``architectural and engineering services and construction design''.

SEC. 2802. EXPANSION OF ARMY OVERSEAS FAMILY HOUSING LEASE AUTHORITY.

    (a) Alternative Maximum Unit Amounts.--Section 2828(e) of title 10, 
United States Code, is amended--
        (1) in paragraph (2), by inserting, ``, and the Secretary of 
    the Army may lease not more than 500 units of family housing in 
    Italy,'' after ``family housing in Italy'';
        (2) by redesignating paragraphs (3) and (4) as paragraphs (4) 
    and (5), respectively; and
        (3) by inserting after paragraph (2) the following new 
    paragraph (3):
    ``(3) In addition to the 450 units of family housing referred to in 
paragraph (1) for which the maximum lease amount is $25,000 per unit 
per year, the Secretary of the Army may lease not more than 800 units 
of family housing in Korea subject to that maximum lease amount.''.
    (b) Conforming Amendment.--Paragraph (4) of that section, as 
redesignated by subsection (a)(2) of this section, is amended by 
striking out ``and (2)'' and inserting in lieu thereof ``, (2), and 
(3)''.

SEC. 2803. DEFINITION OF ANCILLARY SUPPORTING FACILITIES UNDER 
              ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
              MILITARY HOUSING.

    Section 2871(1) of title 10, United States Code, is amended by 
inserting after ``including'' the following: ``facilities to provide or 
support elementary or secondary education,''.

SEC. 2804. PURCHASE OF BUILD-TO-LEASE FAMILY HOUSING AT EIELSON AIR 
              FORCE BASE, ALASKA.

    (a) Authority To Purchase.--The Secretary of the Air Force may 
purchase the entire interest of the developer in the military family 
housing project at Eielson Air Force Base, Alaska, described in 
subsection (b) if the Secretary determines that the purchase is in the 
best economic interests of the Air Force.
    (b) Description of Project.--The military family housing project 
referred to in this section is the 366-unit military family housing 
project at Eielson Air Force Base that was constructed by the developer 
and is being leased by the Secretary under the authority of former 
subsection (g) of section 2828 of title 10, United States Code (now 
section 2835 of such title), as added by section 801 of the Military 
Construction Authorization Act, 1984 (Public Law 98-115; 97 Stat. 782).
    (c) Purchase Price.--The purchase price to be paid by the Secretary 
under this section for the interest of the developer in the military 
family housing project may not exceed an amount equal to the amount of 
the outstanding indebtedness of the developer to the lender for the 
project that would have remained at the time of the purchase under this 
section if the developer had paid down its indebtedness to the lender 
for the project in accordance with the original debt instruments for 
the project.
    (d) Time for Purchase.--(1) Subject to paragraph (2), the Secretary 
may elect to make the purchase authorized by subsection (a) at any time 
during or after the term of the lease for the military family housing 
project.
    (2) The Secretary may not make the purchase until 30 days after the 
date on which the Secretary notifies the congressional defense 
committees of the Secretary's election to make the purchase under 
paragraph (1).

SEC. 2805. REPORT RELATING TO IMPROVEMENT OF HOUSING FOR UNACCOMPANIED 
              MEMBERS.

    (a) Report Required.--(1) Not later than April 1, 1999, the 
Secretary of Defense shall submit to Congress a report on--
        (A) the plans of each of the military departments to improve 
    the condition, suitability, and availability of housing for members 
    of the Armed Forces who are unaccompanied by dependents; and
        (B) the costs associated with the implementation of the plans.
    (2) The Secretary of Defense shall prepare the report in 
consultation with the Secretaries of the military departments.
    (b) Elements.--The report under subsection (a) shall include the 
following:
        (1) The plans and programs of each of the military departments 
    to improve housing on military installations for unaccompanied 
    members of the Armed Forces, including an assessment of the 
    requirement, a schedule to implement such plans and programs, and 
    an explanation of the standards used to determine the adequacy, 
    suitability, and availability of housing outside of military 
    installations.
        (2) A justification for the initiative to build single 
    occupancy rooms with a shared bath (commonly known as the ``1 Plus 
    1 Initiative''), including--
            (A) a description of the manner in which the initiative is 
        designed to enhance the quality of life for enlisted members 
        and the retention of such members in adequate numbers; and
            (B) an assessment of the analysis and data used in the 
        justification to implement the initiative.
        (3) The cost for each military department of implementing the 
    initiative, including the amount of funds, by fiscal year, 
    authorized and appropriated for military construction and real 
    property maintenance obligated or expended on the improvement of 
    military housing for unaccompanied members beginning on October 1, 
    1996, and the amount of funds required to be expended to ensure the 
    suitability of such housing for unaccompanied members.
        (4) An explanation of the difference in cost between--
            (A) upgrading existing military housing to the standard 
        proposed in the initiative; and
            (B) rehabilitating such housing within existing standards.
        (5) An assessment of the viability and utility of the 
    authorities provided by subchapter IV of chapter 169 of title 10, 
    United States Code, to contribute to the improvement of the 
    condition, suitability, and availability of housing for 
    unaccompanied members, especially members in junior grades.
        (6) The views of the Chief of Staff of the Army, the Chief of 
    Naval Operations, the Chief of Staff of the Air Force, the 
    Commandant of the Marine Corps, the Commandant of the Coast Guard, 
    and each of the senior enlisted members of the Armed Forces 
    regarding the initiative referred to in paragraph (2) and regarding 
    any alternatives to the initiative having the potential of 
    enhancing the quality of life for unaccompanied members, improving 
    the readiness of the Armed Forces, and improving the retention of 
    enlisted members in adequate numbers.

        Subtitle B--Real Property and Facilities Administration

SEC. 2811. EXCEPTIONS TO REAL PROPERTY TRANSACTION REPORTING 
              REQUIREMENTS FOR WAR AND CERTAIN EMERGENCY AND OTHER 
              OPERATIONS.

    (a) Exceptions.--Section 2662 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(g) Exceptions for Transactions for War and Certain Emergency and 
Other Operations.--(1) The reporting requirement set forth in 
subsection (a) shall not apply with respect to a real property 
transaction otherwise covered by that subsection, and the reporting 
requirement set forth in subsection (e) shall not apply with respect to 
a real property transaction otherwise covered by that subsection, if 
the Secretary concerned determines that the transaction is made as a 
result of any of the following:
        ``(A) A declaration of war.
        ``(B) A declaration of a national emergency by the President 
    pursuant to the National Emergencies Act (50 U.S.C. 1601 et seq.).
        ``(C) A declaration of an emergency or major disaster pursuant 
    to the Robert T. Stafford Disaster Relief and Emergency Assistance 
    Act (42 U.S.C. 5121 et seq.).
        ``(D) The use of the militia or the armed forces after a 
    proclamation to disperse under section 334 of this title.
        ``(E) A contingency operation.
    ``(2) The reporting requirement set forth in subsection (a) shall 
not apply with respect to a real property transaction otherwise covered 
by that subsection if the Secretary concerned determines that--
        ``(A) an event listed in paragraph (1) is imminent; and
        ``(B) the transaction is necessary for purposes of preparation 
    for such event.
    ``(3) Not later than 30 days after entering into a real property 
transaction covered by paragraph (1) or (2), the Secretary concerned 
shall submit to the committees named in subsection (a) a report on the 
transaction. The report shall set forth any facts or information which 
would otherwise have been submitted in a report on the transaction 
under subsection (a) or (e), as the case may be, but for the operation 
of paragraph (1) or (2).''.
    (b) Stylistic Amendments.--That section is further amended--
        (1) in subsection (a), by inserting ``General Notice and Wait 
    Requirements.--'' after ``(a)'';
        (2) in subsection (b), by inserting ``Annual Reports on Certain 
    Minor Transactions.--'' after ``(b)'';
        (3) in subsection (c), by inserting ``Geographic Scope; 
    Excepted Projects.--'' after ``(c)'';
        (4) in subsection (d), by inserting ``Statements of Compliance 
    in Transaction Instruments.--'' after ``(d)'';
        (5) in subsection (e), by inserting ``Notice and Wait Regarding 
    Leases of Space for DoD by GSA.--'' after ``(e)''; and
        (6) in subsection (f), by inserting ``Reports on Transactions 
    Involving Intelligence Components.--'' after ``(f)''.

SEC. 2812. RESTORATION OF DEPARTMENT OF DEFENSE LANDS USED BY ANOTHER 
              FEDERAL AGENCY.

    (a) Restoration as Term of Agreement.--Section 2691 of title 10, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(c)(1) As a condition of any lease, permit, license, or other 
grant of access entered into by the Secretary of a military department 
with another Federal agency authorizing the agency to use lands under 
the control of the Secretary, the Secretary may require the agency to 
agree to remove any improvements and to take any other action necessary 
in the judgment of the Secretary to restore the land used by the agency 
to its condition before its use by the agency.
    ``(2) In lieu of performing any removal or restoration work under 
paragraph (1), a Federal agency may elect, with the consent of the 
Secretary, to reimburse the Secretary for the costs incurred by the 
military department in performing such removal or restoration work.''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:

``Sec. 2691. Restoration of land used by permit or lease''.

    (2) The table of sections at the beginning of chapter 159 of title 
10, United States Code, is amended by striking the item relating to 
section 2691 and inserting in lieu thereof the following new item:
``2691. Restoration of land used by permit or lease.''.

SEC. 2813. OUTDOOR RECREATION DEVELOPMENT ON MILITARY INSTALLATIONS FOR 
              DISABLED VETERANS, MILITARY DEPENDENTS WITH DISABILITIES, 
              AND OTHER PERSONS WITH DISABILITIES.

    (a) Access Enhancement.--Section 103 of the Sikes Act (16 U.S.C. 
670c) is amended by adding at the end the following new subsections:
    ``(b) Access for Disabled Veterans, Military Dependents With 
Disabilities, and Other Persons With Disabilities.--(1) In developing 
facilities and conducting programs for public outdoor recreation at 
military installations, consistent with the primary military mission of 
the installations, the Secretary of Defense shall ensure, to the extent 
reasonably practicable, that outdoor recreation opportunities 
(including fishing, hunting, trapping, wildlife viewing, boating, and 
camping) made available to the public also provide access for persons 
described in paragraph (2) when topographic, vegetative, and water 
resources allow access for such persons without substantial 
modification to the natural environment.
    ``(2) Persons referred to in paragraph (1) are the following:
        ``(A) Disabled veterans.
        ``(B) Military dependents with disabilities.
        ``(C) Other persons with disabilities, when access to a 
    military installation for such persons and other civilians is not 
    otherwise restricted.
    ``(3) The Secretary of Defense shall carry out this subsection in 
consultation with the Secretary of Veterans Affairs, national service, 
military, and veterans organizations, and sporting organizations in the 
private sector that participate in outdoor recreation projects for 
persons described in paragraph (2).
    ``(c) Acceptance of Donations.--In connection with the facilities 
and programs for public outdoor recreation at military installations, 
in particular the requirement under subsection (b) to provide access 
for persons described in paragraph (2) of such subsection, the 
Secretary of Defense may accept--
        ``(1) the voluntary services of individuals and organizations; 
    and
        ``(2) donations of property, whether real or personal.
    ``(d) Treatment of Volunteers.--A volunteer under subsection (c) 
shall not be considered to be a Federal employee and shall not be 
subject to the provisions of law relating to Federal employment, 
including those relating to hours of work, rates of compensation, 
leave, unemployment compensation, and Federal employee benefits, except 
that--
        ``(1) for the purposes of the tort claims provisions of chapter 
    171 of title 28, United States Code, the volunteer shall be 
    considered to be a Federal employee; and
        ``(2) for the purposes of subchapter I of chapter 81 of title 
    5, United States Code, relating to compensation to Federal 
    employees for work injuries, the volunteer shall be considered to 
    be an employee, as defined in section 8101(1)(B) of title 5, United 
    States Code, and the provisions of such subchapter shall apply.''.
    (b) Conforming Amendment.--Such section is further amended by 
striking out ``Sec. 103.'' and inserting in lieu thereof the following:

``SEC. 103. PROGRAM FOR PUBLIC OUTDOOR RECREATION.

    ``(a) Program Authorized.--''.

SEC. 2814. REPORT ON LEASING AND OTHER ALTERNATIVE USES OF NONEXCESS 
              MILITARY PROPERTY.

    (a) Report Required.--Not later than March 15, 1999, the Secretary 
of Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report regarding the authority of the military 
departments and Defense Agencies to lease to the private sector 
nonexcess real and personal property. The Secretary shall prepare the 
report in consultation with the Secretaries of the military departments 
and the Director of the Office of Management and Budget.
    (b) Required Elements of Report.--The report shall set forth the 
following:
        (1) The number and purpose of all leases entered into under 
    sections 2667 and 2667a of title 10, United States Code, other than 
    leases under section 2667(f) of that title, during the 5-year 
    period ending on the date of the enactment of this Act.
        (2) The types and amounts of payments received under the leases 
    specified in paragraph (1) and the costs, if any, foregone as a 
    result of the leases.
        (3) An assessment of the positive and negative aspects of 
    leasing real property and surplus capacity at military 
    installations to the private sector, including the potential effect 
    of the use of the leases on force protection and the military 
    functions of the installations.
        (4) An assessment of the current efforts of the Department of 
    Defense to identify for the private sector any surplus capacity at 
    military installations that could be leased or otherwise used by 
    the private sector.
        (5) An assessment of the proposal of the Secretary of the Air 
    Force to reduce infrastructure costs at Brooks Air Force Base, 
    Texas, using the authority provided in section 2667 of title 10, 
    United States Code, and the proposal of the Secretary of the Navy 
    regarding the potential for development of Ford Island as part of 
    Naval Complex, Pearl Harbor, Hawaii.
        (6) An assessment (including an economic analysis) of the 
    ability of the military departments and Defense Agencies to reduce 
    the quantity of real property leased by them through the relocation 
    of activities located in such leased space to property of a 
    military installation, or another Federal agency, that is 
    unutilized or underutilized, while also lowering operational and 
    maintenance costs and minimizing the need for new construction.
    (c) Additional Elements of Report.--In the event that the Secretary 
of Defense considers the authority under section 2667 or 2667a of title 
10, United States Code, to be insufficient, the Secretary shall also 
include in the report--
        (1) a proposal for authority to conduct a pilot project based 
    on the assessment made under subsection (b)(5) or for such general 
    legislative authority as the Secretary considers appropriate to 
    enhance the ability of the Department of Defense to utilize surplus 
    capacity at military installations in order to improve military 
    readiness, achieve cost savings with respect to such installations, 
    or decrease the cost of operating such installations;
        (2) an estimate of the income that could accrue to the 
    Department of Defense as a result of the implementation of enhanced 
    authority proposed under paragraph (1) during the 5-year period 
    beginning on the date of such implementation; and
        (3) an assessment of the extent to which any such income should 
    be reserved for the use of the installations exercising such 
    authority and of the extent to which installations would be likely 
    to enter into such leases if they cannot retain such income.

SEC. 2815. REPORT ON IMPLEMENTATION OF UTILITY SYSTEM CONVEYANCE 
              AUTHORITY.

    Not later than March 1, 1999, the Secretary of Defense, in 
consultation with the Secretaries of the military departments, shall 
submit to Congress a report containing--
        (1) the criteria to be used by the Secretary of a military 
    department to select utility systems, and related improvements, 
    easements, and rights-of-way, under the jurisdiction of the 
    Secretary, for conveyance to a municipal, private, regional, 
    district, or cooperative utility company or other entity under the 
    authority of section 2688 of title 10, United States Code;
        (2) an assessment of the need to include, as part of the 
    conveyance authority under such section, authority for the 
    Secretary to convey real property associated with a utility system 
    conveyed under such section; and
        (3) a description of the manner in which the Secretary will 
    ensure that any conveyance under such section does not adversely 
    affect the national security of the United States.

            Subtitle C--Defense Base Closure and Realignment

SEC. 2821. APPLICABILITY OF PROPERTY DISPOSAL LAWS TO LEASES AT 
              INSTALLATIONS TO BE CLOSED OR REALIGNED UNDER BASE 
              CLOSURE LAWS.

    Section 2667(f)(1) of title 10, United States Code, is amended by 
inserting after ``subsection (a)(3)'' the following: ``or the Federal 
Property and Administrative Services Act of 1949 (to the extent such 
Act is inconsistent with this subsection)''.

SEC. 2822. ELIMINATION OF WAIVER AUTHORITY REGARDING PROHIBITION 
              AGAINST CERTAIN CONVEYANCES OF PROPERTY AT NAVAL STATION, 
              LONG BEACH, CALIFORNIA.

    Section 2826 of the Military Construction Authorization Act for 
Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 2001) is 
amended by striking out subsection (e).

SEC. 2823. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA IN 
              CONNECTION WITH MCCLELLAN AIR FORCE BASE, CALIFORNIA.

    (a) Source of Payment.--Notwithstanding subsection (b) of section 
2906 of the Defense Base Closure and Realignment Act of 1990 (part A of 
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), the Secretary 
of Defense may use amounts in the Department of Defense Base Closure 
Account 1990 established under subsection (a) of such section to pay 
stipulated penalties assessed under the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
seq.) against McClellan Air Force Base, California.
    (b) Amount of Payment.--The amount expended under the authority of 
subsection (a) may not exceed $15,000.

                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2831. MODIFICATION OF LAND CONVEYANCE, ARMY RESERVE CENTER, 
              YOUNGSTOWN, OHIO.

    Section 2861(b) of the Military Construction Authorization Act for 
Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 573) is 
amended by striking out ``retain'' and all that follows through the 
period at the end and inserting in lieu thereof ``develop the parcel 
for educational purposes.''.

SEC. 2832. RELEASE OF INTERESTS IN REAL PROPERTY, FORMER KENNEBEC 
              ARSENAL, AUGUSTA, MAINE.

    (a) Authority To Release.--The Secretary of the Army may release, 
without consideration, all right, title, and interest of the United 
States in and to the real property described in subsection (b).
    (b) Covered Property.--The real property referred to in subsection 
(a) is the parcel of real property consisting of approximately 40 acres 
located in Augusta, Maine, and formerly known as the Kennebec Arsenal, 
which parcel was conveyed by the Secretary of War to the State of Maine 
under the provisions of the Act entitled ``An Act Authorizing the 
Secretary of War to convey the Kennebec Arsenal property, situated in 
Augusta, Maine, to the State of Maine for public purposes'', approved 
March 3, 1905 (33 Stat. 1270), as amended by section 771 of the 
Department of Defense Appropriations Act, 1981 (Public Law 96-527; 94 
Stat. 3093).
    (c) Instrument of Release.--The Secretary of the Army shall execute 
and file in the appropriate office a deed of release, amended deed, or 
other appropriate instrument effectuating the release of interests 
authorized by this section.

SEC. 2833. RELEASE, WAIVER, OR CONVEYANCE OF INTERESTS IN REAL 
              PROPERTY, FORMER REDSTONE ARMY ARSENAL PROPERTY, ALABAMA.

    (a) Release Authorized.--The Secretary of the Army may release, 
without consideration and to such extent as the Secretary considers 
appropriate to protect the interests of the United States, the 
reversionary interests of the United States in the real property 
described in subsection (b), which were retained by the United States 
when the property was conveyed to the Alabama Space Science Exhibit 
Commission, an agency of the State of Alabama. The release shall be 
executed in the manner provided in this section.
    (b) Description of Property.--The real property referred to in this 
section is the real property conveyed to the Alabama Space Science 
Exhibit Commission under the authority of the following provisions of 
law:
        (1) The first section of Public Law 90-276 (82 Stat. 68).
        (2) Section 813 of the Military Construction Authorization Act, 
    1980 (Public Law 96-125; 93 Stat. 952).
        (3) Section 813 of the Military Construction Authorization Act, 
    1984 (Public Law 98-115; 97 Stat. 790).
    (c) Release, Waiver, or Conveyance of Other Rights, Terms, and 
Conditions.--As part of the release under subsection (a), the Secretary 
may release, waive, or convey, without consideration and to such extent 
as the Secretary considers appropriate to protect the interests of the 
United States--
        (1) any and all other rights retained by the United States in 
    and to the real property described in subsection (b) when the 
    property was conveyed to the Alabama Space Science Exhibit 
    Commission; and
        (2) any and all terms and conditions and restrictions on the 
    use of the real property imposed as part of the conveyances 
    described in subsection (b).
    (d) Conditions on Release, Waiver, or Conveyance.--(1) The 
Secretary may execute the release under subsection (a) or a release, 
waiver, or conveyance under subsection (c) only after--
        (A) the Secretary approves of the master plan prepared by the 
    Alabama Space Science Exhibit Commission, as such plan may exist or 
    be revised from time to time, for development of the real property 
    described in subsection (b); and
        (B) the installation commander at Redstone Arsenal, Alabama, 
    certifies to the Secretary that the release, waiver, or conveyance 
    is consistent with the master plan.
    (2) A new facility or structure may not be constructed on the real 
property described in subsection (b) unless the facility or structure 
is included in the master plan, which has been approved and certified 
as provided in paragraph (1).
    (e) Instrument of Release, Waiver, or Conveyance.--In making a 
release, waiver, or conveyance authorized by this section, the 
Secretary shall execute and file in the appropriate office or offices a 
deed of release, amended deed, or other appropriate instrument 
effectuating the release, waiver, or conveyance.
    (f) Effect of Release.--Except as provided in subsection (g), upon 
release of any reversionary interest under this section, the right, 
title, and interest of the Alabama Space Science Exhibit Commission in 
and to the real property described in subsection (b) shall, to the 
extent of the release, no longer be subject to the conditions 
prescribed in the provisions of law specified in such subsection. 
Except as provided in subsection (g), the Alabama Space Science Exhibit 
Commission may use the real property for any such purpose or purposes 
as it considers appropriate consistent with the master plan approved 
and certified as provided in subsection (d), and the real property may 
be conveyed by the Alabama Space Science Exhibit Commission without 
restriction and unencumbered by any claims or rights of the United 
States with respect to the property, subject to such rights, terms, and 
conditions of the United States previously imposed on the real property 
and not released, waived, or conveyed by the Secretary under subsection 
(c).
    (g) Exceptions.--(1) Conveyance of the drainage and utility 
easement reserved to the United States pursuant to section 813(b)(3) of 
the Military Construction Authorization Act, 1984 (Public Law 98-115; 
97 Stat. 791), is not authorized under this section.
    (2) In no event may title to any portion of the real property 
described in subsection (b) be conveyed by the Alabama Space Science 
Exhibit Commission or any future deed holder of the real property to 
any person other than an agency, instrumentality, political 
subdivision, municipal corporation, or public corporation of the State 
of Alabama. Any deed conveying title to any portion of the real 
property described in subsection (b) shall restrict the further use of 
the conveyed property to purposes and uses consistent with the master 
plan approved and certified as provided in subsection (d), unless 
otherwise approved by the Secretary.
    (3) Paragraph (2) does not prevent the Alabama Space Science 
Exhibit Commission or any future deed holder of the real property 
described in subsection (b) from giving a mortgage with respect to any 
portion of the real property to any person, except that any such 
mortgage shall provide that the further use of the real property shall 
be restricted to purposes and uses consistent with the master plan 
approved and certified as provided in subsection (d), unless otherwise 
approved by the Secretary.

SEC. 2834. CONVEYANCE OF UTILITY SYSTEMS, LONE STAR ARMY AMMUNITION 
              PLANT, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey 
all right, title, and interest of the United States in and to any 
utility system, or part thereof, including any real property associated 
with such system, at the Lone Star Army Ammunition Plant, Texas, to the 
redevelopment authority for the Red River Army Depot, Texas, in 
conjunction with the disposal of property at the Depot under the 
Defense Base Closure and Realignment Act of 1990 (part A of title XXIX 
of Public Law 101-510; 10 U.S.C. 2687 note).
    (b) Consideration.--As consideration for the conveyance under 
subsection (a), the redevelopment authority shall pay to the United 
States an amount equal to the fair market value of the conveyed utility 
system and any real property conveyed as part of the conveyance, as 
determined by an independent appraisal satisfactory to the Secretary 
and paid for by the redevelopment authority.
    (c) Rule of Construction.--Nothing in subsection (a) may be 
construed to prohibit or otherwise limit the Secretary from conveying 
any utility system referred to in that subsection under any other 
provision of law, including section 2688 of title 10, United States 
Code.
    (d) Utility System Defined.--In this section, the term ``utility 
system'' has the meaning given that term in section 2688(g) of title 
10, United States Code.

SEC. 2835. CONVEYANCE OF WATER RIGHTS AND RELATED INTERESTS, ROCKY 
              MOUNTAIN ARSENAL, COLORADO, FOR PURPOSES OF ACQUISITION 
              OF PERPETUAL CONTRACTS FOR WATER.

    (a) Conveyance Authorized.--Subject to subsection (c), the 
Secretary of the Army may convey any and all interest of the United 
States in the water rights and related rights at Rocky Mountain 
Arsenal, Colorado, described in subsection (b) to the City and County 
of Denver, Colorado, acting through its Board of Water Commissioners.
    (b) Covered Water Rights and Related Rights.--The water rights and 
related rights authorized to be conveyed under subsection (a) are the 
following:
        (1) Any and all interest in 300 acre rights to water from 
    Antero Reservoir as set forth in Antero Reservoir Contract No. 382 
    dated August 22, 1923, for 160 acre rights; Antero Reservoir 
    Contract No. 383 dated August 22, 1923, for 50 acre rights; Antero 
    Reservoir Contract No. 384 dated October 30, 1923, for 40 acre 
    rights; Antero Reservoir Contract No. 387 dated March 3, 1923, for 
    50 acre rights; and Supplemental Contract No. 382-383-384-387 dated 
    July 24, 1932, defining the amount of water to be delivered under 
    the 300 acre rights in the prior contracts as 220 acre feet.
        (2) Any and all interest in the 305 acre rights of water from 
    the High Line Canal, diverted at its headgate on the South Platte 
    River and delivered to the Fitzsimons Army Medical Center and 
    currently subject to cost assessments pursuant to Denver Water 
    Department contract #001990.
        (3) Any and all interest in the 2,603.55 acre rights of water 
    from the High Line Canal, diverted at its headgate on the South 
    Platte River and delivered to the Rocky Mountain Arsenal in Adams 
    County, Colorado, and currently subject to cost assessments by the 
    Denver Water Department, including 680 acre rights transferred from 
    Lowry Field to the Rocky Mountain Arsenal by the October 5, 1943, 
    agreement between the City and County of Denver, acting by and 
    through its Board of Water Commissioners, and the United States of 
    America.
        (4) Any and all interest in 4,058.34 acre rights of water not 
    currently subject to cost assessments by the Denver Water 
    Department.
        (5) A new easement for the placement of water lines 
    approximately 50 feet wide inside the Southern boundary of Rocky 
    Mountain Arsenal and across the Reserve Center along the northern 
    side of 56th Avenue.
        (6) A permanent easement for utilities where Denver has an 
    existing temporary easement near the southern and western 
    boundaries of Rocky Mountain Arsenal.
    (c) Consideration.--(1) The Secretary of the Army may make the 
conveyance under subsection (a) only if the Board of Water 
Commissioners, on behalf of the City and County of Denver, Colorado--
        (A) enters into a permanent contract with the Secretary of the 
    Army for purposes of ensuring the delivery of nonpotable water and 
    potable water to Rocky Mountain Arsenal; and
        (B) enters into a permanent contract with the Secretary of the 
    Interior for purposes of ensuring the delivery of nonpotable water 
    and potable water to Rocky Mountain Arsenal National Wildlife 
    Refuge, Colorado.
    (2) Section 2809(e) of title 10, United States Code, shall not 
operate to limit the term of the contract entered into under paragraph 
(1)(A).
    (d) Requirement Relating to Conveyance.--The Secretary of the Army 
may not make the conveyance authorized by subsection (a) until the 
execution of the proposed agreement provided for under subsection (c) 
between the City and County of Denver, Colorado, acting through its 
Board of Water Commissioners, the South Adams County Water and 
Sanitation District, the United States Fish and Wildlife Service, and 
the Army.
    (e) Additional Terms and Conditions.--The Secretary of the Army may 
require such additional terms and conditions in connection with the 
conveyance under subsection (a) as the Secretary considers appropriate 
to protect the interests of the United States.

SEC. 2836. LAND CONVEYANCE, ARMY RESERVE CENTER, MASSENA, NEW YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Village of Massena, New York (in this 
section referred to as the ``Village''), all right, title, and interest 
of the United States in and to a parcel of real property, including 
improvements thereon, consisting of the Army Reserve Center in Massena, 
New York, for the purpose of permitting the Village to develop the 
parcel for public benefit, including the development of municipal 
office space.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Village.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified 
in such subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry onto the property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2837. LAND CONVEYANCE, ARMY RESERVE CENTER, OGDENSBURG, NEW YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the City of Ogdensburg, New York (in this 
section referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property, including 
improvements thereon, consisting of the Army Reserve Center in 
Ogdensburg, New York, for the purpose of permitting the City to develop 
the parcel for public benefit, including the development of municipal 
office space.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the City.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified 
in such subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry onto the property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, JAMESTOWN, OHIO.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Greeneview Local School District of 
Jamestown, Ohio, all right, title, and interest of the United States in 
and to a parcel of real property, including improvements thereon, that 
is located at 5693 Plymouth Road in Jamestown, Ohio, and contains an 
Army Reserve Center, for the purpose of permitting the Greeneview Local 
School District to retain and use the conveyed property for educational 
purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Greeneview Local School District.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified 
in such subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry onto the property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2839. LAND CONVEYANCE, ARMY RESERVE CENTER, PEORIA, ILLINOIS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Peoria School District #150 of Peoria, 
Illinois (in this section referred to as the ``School District''), all 
right, title, and interest of the United States in and to a parcel of 
real property, including improvements thereon, consisting of the Army 
Reserve Center located at 1429 Northmoor Road in Peoria, Illinois, for 
the purpose of permitting the School District to develop the parcel for 
educational and transportation purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the School District.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified 
in such subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry onto the property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2840. LAND CONVEYANCE, ARMY RESERVE CENTER, BRIDGTON, MAINE.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Town of Bridgton, Maine (in this section 
referred to as the ``Town''), all right, title, and interest of the 
United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 3.65 acres and 
containing the Army Reserve Center in Bridgton, Maine, for the purpose 
of permitting the Town to develop the parcel for public benefit, 
including the development of municipal office space.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Town.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified 
in such subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry onto the property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2841. LAND CONVEYANCE, FORT SHERIDAN, ILLINOIS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the City of Lake Forest, Illinois (in this section referred to as the 
``City''), all right, title, and interest, of the United States in and 
to all or some portion of the parcel of real property, including 
improvements thereon, at the former Fort Sheridan, Illinois, consisting 
of approximately 14 acres and known as the northern Army Reserve 
enclave area.
    (b) Consideration.--As consideration for the conveyance under 
subsection (a), the City shall pay to the United States an amount equal 
to not less than the fair market value of the real property to be 
conveyed, as determined by the Secretary.
    (c) Use of Proceeds.--In such amounts as are provided in advance in 
appropriations Acts, the Secretary may use the funds paid by the City 
under subsection (b) to provide for the construction of replacement 
facilities and for the relocation costs for Reserve units and 
activities affected by the conveyance.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the City.
    (e) Notice and Wait.--The Secretary may not make the conveyance 
authorized by subsection (a) until 21 days after the date on which the 
Secretary submits to the congressional defense committees a 
certification that the relocation of the Reserve units and activities 
affected by the conveyance is consistent with an approved master plan 
for the consolidation of Reserve activities in, or in the vicinity of, 
Chicago, Illinois.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2842. LAND CONVEYANCE, SKANEATELES, NEW YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Town of Skaneateles, New York (in this 
section referred to as the ``Town''), all right, title, and interest of 
the United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 147.10 acres in 
Skaneateles, New York, and commonly known as the ``Federal Farm'', for 
the purpose of permitting the Town to develop the parcel for public 
benefit, including for recreational purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Town.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified 
in such subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry onto the property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interest of the United States.

SEC. 2843. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT, CHARLESTOWN, 
              INDIANA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the Indiana Army Ammunition Plant Reuse Authority (in this section 
referred to as the ``Reuse Authority'') all right, title, and interest 
of the United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 4,660 acres located 
at the Indiana Army Ammunition Plant, Charlestown, Indiana, for the 
purpose of developing the parcel as an industrial park to replace all 
or part of the economic activity lost at the inactivated plant.
    (b) Consideration.--Except as provided in subsection (d), as 
consideration for the conveyance under subsection (a), the Reuse 
Authority shall pay to the Secretary an amount equal to the fair market 
value of the conveyed property as of the time of the conveyance, 
determined by the Secretary in accordance with Federal appraisal 
standards and procedures.
    (c) Time for Payment.--The consideration required under subsection 
(b) shall be paid by the Reuse Authority at the end of the 10-year 
period beginning on the date on which the conveyance under subsection 
(a) is completed.
    (d) Effect of Reconveyance or Lease.--(1) If, during the 10-year 
period specified in subsection (c), the Reuse Authority reconveys all 
or any part of the property conveyed under subsection (a), the Reuse 
Authority shall pay to the United States an amount equal to the fair 
market value of the reconveyed property as of the time of the 
reconveyance, excluding the value of any improvements made to the 
property by the Reuse Authority, determined by the Secretary in 
accordance with Federal appraisal standards and procedures.
    (2) The Secretary may treat a lease of the property within such 10-
year period as a reconveyance if the Secretary determines that the 
lease is being used to avoid application of paragraph (1).
    (e) Deposit of Proceeds.--The Secretary shall deposit any proceeds 
received under subsection (b) or (d) in the special account established 
pursuant to section 204(h)(2) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)).
    (f) Administrative Expenses.--In connection with the conveyance 
under subsection (a), the Secretary may accept amounts provided by the 
Reuse Authority or other persons to cover administrative expenses 
incurred by the Secretary in making the conveyance. Amounts received 
under this subsection for administrative expenses shall be credited to 
the appropriation, fund, or account from which the expenses were paid. 
Amounts so credited shall be merged with funds in such appropriation, 
fund, or account and shall be available for the same purposes and 
subject to the same limitations as the funds with which merged.
    (g) Description of Property.--The property to be conveyed under 
subsection (a) includes the administrative area of the Indiana Army 
Ammunition Plant as well as open space in the southern end of the 
plant. The exact acreage and legal description of the property to be 
conveyed shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the Reuse Authority.
    (h) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.
    (i) Additional Conveyance for Recreational Purposes.--Section 
2858(a) of the Military Construction Authorization Act for Fiscal Year 
1996 (division B of Public Law 104-106; 110 Stat. 571), as amended by 
section 2838 of the Military Construction Authorization Act for Fiscal 
Year 1998 (division B of Public Law 105-85; 111 Stat. 2006), is further 
amended by adding at the end the following new paragraph:
    ``(3) The Secretary may also convey to the State, without 
consideration, another parcel of real property at the Indiana Army 
Ammunition Plant consisting of approximately 2,000 acres of additional 
riverfront property in order to connect the parcel conveyed under 
paragraph (2) with the parcels of Charlestown State Park conveyed to 
the State under paragraph (1) and title II of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note).''.

SEC. 2844. LAND CONVEYANCE, VOLUNTEER ARMY AMMUNITION PLANT, 
              CHATTANOOGA, TENNESSEE.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
Hamilton County, Tennessee (in this section referred to as the 
``County''), all right, title, and interest of the United States in and 
to a parcel of real property, including improvements thereon, 
consisting of approximately 1,033 acres located at the Volunteer Army 
Ammunition Plant, Chattanooga, Tennessee, for the purpose of developing 
the parcel as an industrial park to replace all or part of the economic 
activity lost at the inactivated plant.
    (b) Consideration.--Except as provided in subsection (d), as 
consideration for the conveyance under subsection (a), the County shall 
pay to the Secretary an amount equal to the fair market value of the 
conveyed property as of the time of the conveyance, determined by the 
Secretary in accordance with Federal appraisal standards and 
procedures.
    (c) Time for Payment.--The consideration required under subsection 
(b) shall be paid by the County at the end of the 10-year period 
beginning on the date on which the conveyance under subsection (a) is 
completed.
    (d) Effect of Reconveyance or Lease.--(1) If the County reconveys 
all or any part of the conveyed property during the 10-year period 
specified in subsection (c), the County shall pay to the United States 
an amount equal to the fair market value of the reconveyed property as 
of the time of the reconveyance, excluding the value of any 
improvements made to the property by the County, determined by the 
Secretary in accordance with Federal appraisal standards and 
procedures.
    (2) The Secretary may treat a lease of the property within such 10-
year period as a reconveyance if the Secretary determines that the 
lease is being used to avoid application of paragraph (1).
    (e) Deposit of Proceeds.--The Secretary shall deposit any proceeds 
received under subsection (b) or (d) in the special account established 
pursuant to section 204(h)(2) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)).
    (f) Effect on Existing Leases.--The conveyance of the real property 
under subsection (a) shall not affect the terms or length of any 
contract entered into by the Secretary before the date of the enactment 
of this Act with regard to the property to be conveyed.
    (g) Administrative Expenses.--In connection with the conveyance 
under subsection (a), the Secretary may accept amounts provided by the 
County or other persons to cover administrative expenses incurred by 
the Secretary in making the conveyance. Amounts received under this 
subsection for administrative expenses shall be credited to the 
appropriation, fund, or account from which the expenses were paid. 
Amounts so credited shall be merged with funds in such appropriation, 
fund, or account and shall be available for the same purposes and 
subject to the same limitations as the funds with which merged.
    (h) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) shall 
be determined by a survey satisfactory to the Secretary. The cost of 
the survey shall be borne by the County.
    (i) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2845. LAND CONVEYANCE, STEWART ARMY SUB-POST, NEW WINDSOR, NEW 
              YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Town of New Windsor, New York (in this 
section referred to as the ``Town''), all right, title, and interest of 
the United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 291 acres at the 
Stewart Army Sub-Post in New Windsor, New York, for the purpose of 
permitting the Town to develop the parcel for economic purposes.
    (b) Exclusion.--The real property to be conveyed under subsection 
(a) does not include any portion of the approximately 89.2-acre parcel 
at Stewart Army Sub-Post that is proposed for transfer to the 
jurisdiction and control of the Marine Corps or the approximately 22-
acre parcel at Stewart Army Sub-Post that is proposed for transfer to 
the jurisdiction and control of the Army Reserve.
    (c) Conditions of Conveyance.--The conveyance authorized by 
subsection (a) may only be made subject to the following conditions:
        (1) The Town must agree to provide connections to the local 
    wastewater and sewage treatment system for all existing and future 
    improvements to the parcels of real property referred to in 
    subsection (b).
        (2) The Town must agree to provide wastewater and sewage 
    treatment service to such parcels at a rate established by the 
    appropriate Federal or State regulatory authority.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Town.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

                       PART II--NAVY CONVEYANCES

SEC. 2851. CONVEYANCE OF EASEMENT, MARINE CORPS BASE, CAMP PENDLETON, 
              CALIFORNIA.

    (a) Easement Authorized.--The Secretary of the Navy may grant an 
easement, in perpetuity, to the Foothill/Eastern Transportation 
Corridor Agency (in this section referred to as the ``Agency'') over a 
parcel of real property at Marine Corps Base, Camp Pendleton, 
California, consisting of approximately 340 acres to permit the 
recipient of the easement to construct, operate, and maintain a 
restricted access highway. The area covered by the easement shall 
include slopes and all necessary incidents thereto.
    (b) Consideration.--As consideration for the grant of an easement 
under subsection (a), the Agency shall pay to the United States an 
amount equal to the fair market value of the easement, as determined by 
an independent appraisal satisfactory to the Secretary and paid for by 
the Agency.
    (c) Use of Proceeds.--In such amounts as are provided in advance in 
appropriation Acts, the Secretary shall use the funds paid by the 
Agency under subsection (b) to carry out one or more of the following 
programs at Camp Pendleton:
        (1) Enhancement of access from Red, White, and Green Beaches 
    under Interstate Route 5 and railroad crossings to inland areas.
        (2) Improvement of roads and bridge structures in the range and 
    training area.
        (3) Realignment of Basilone Road.
    (d) Description of Property.--The exact acreage and legal 
description of the easement to be granted under subsection (a) shall be 
determined by a survey satisfactory to the Secretary. The cost of the 
survey shall be borne by the Agency.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the grant of an 
easement under subsection (a) as the Secretary considers appropriate to 
protect the interests of the United States.

SEC. 2852. LAND EXCHANGE, NAVAL RESERVE READINESS CENTER, PORTLAND, 
              MAINE.

    (a) Conveyance Authorized.--(1) The Secretary of the Navy may 
convey to the Gulf of Maine Aquarium Development Corporation, Portland, 
Maine (in this section referred to as the ``Corporation''), all right, 
title, and interest of the United States in and to a parcel of real 
property, including improvements thereon, consisting of approximately 
3.72 acres in Portland, Maine, and containing the Naval Reserve 
Readiness Center, Portland, Maine, for the purpose of permitting the 
Corporation to use the parcel for economic development and as the site 
for an aquarium and marine research facility.
    (2) As part of the conveyance under paragraph (1), the Secretary 
shall also convey to the Corporation any interest of the United States 
in the submerged lands adjacent to the real property conveyed under 
that paragraph that is appurtenant to the real property conveyed under 
that paragraph.
    (b) Provision of Replacement Facilities.--As consideration for the 
conveyance authorized by subsection (a), the Corporation shall design 
and construct such facilities as the Secretary determines appropriate 
for the Naval Reserve to replace the facilities conveyed under that 
subsection.
    (c) Location of Replacement Facilities.--(1) To provide a location 
for the replacement facilities required under subsection (b), the 
Corporation shall--
        (A) convey to the United States all right, title, and interest 
    in and to a parcel of real property determined by the Secretary to 
    be an appropriate location for such facilities; or
        (B) design and construct such facilities on such parcel of real 
    property under the jurisdiction of the Secretary as the Secretary 
    shall specify.
    (2) The Secretary shall select the alternative provided under 
paragraph (1) to be used by the Corporation.
    (d) Notice and Wait.--The Secretary may not make the conveyance 
authorized by subsection (a) until 21 days after the date on which the 
Secretary submits to the congressional defense committees a report 
specifying the terms and conditions under which the conveyance will 
occur.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a)(1), of any interest to be conveyed under subsection (a)(2), and of 
the real property, if any, to be conveyed under subsection (c)(1)(A) 
shall be determined by surveys satisfactory to the Secretary. The cost 
of the surveys shall be borne by the Corporation.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2853. LAND CONVEYANCE, NAVAL AND MARINE CORPS RESERVE FACILITY, 
              YOUNGSTOWN, OHIO.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey, 
without consideration, to the City of Youngstown, Ohio (in this section 
referred to as the ``City''), all right, title, and interest of the 
United States in and to a parcel of real property, including 
improvements thereon, that is located at 315 East Laclede Avenue in 
Youngstown, Ohio, and is the location of a Naval and Marine Corps 
Reserve facility, for the purpose of permitting the City to use the 
parcel for educational purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the City.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified 
in such subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry onto the property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2854. LAND CONVEYANCE, NAVAL AIR RESERVE CENTER, MINNEAPOLIS, 
              MINNESOTA.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey to 
the Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota 
(in this section referred to as the ``Commission''), all right, title, 
and interest of the United States in and to a parcel of real property, 
including improvements thereon, consisting of approximately 32 acres 
located in Minneapolis, Minnesota, and comprising the Naval Air Reserve 
Center, Minneapolis, Minnesota, for the purpose of facilitating the 
expansion of the Minneapolis-St. Paul International Airport.
    (b) Alternative Lease Authority.--In lieu of the conveyance 
authorized by subsection (a), the Secretary may elect to lease the 
property referred to in that subsection to the Commission if the 
Secretary determines that a lease of the property would better serve 
the interests of the United States.
    (c) Provision of Replacement Facilities.--As consideration for the 
conveyance under subsection (a), or the lease under subsection (b), the 
Commission shall--
        (1) provide for such facilities as the Secretary considers 
    appropriate for the Naval Reserve to replace the facilities 
    conveyed or leased under this section;
        (2) assume the costs of designing and constructing such 
    replacement facilities, as may be acceptable to the Secretary; and
        (3) assume any costs incurred by the Secretary in relocating 
    the operations of the Naval Air Reserve Center to such replacement 
    facilities.
    (d) Location of Replacement Facilities.--To provide a location for 
the replacement facilities required under subsection (c), the 
Commission may--
        (1) convey to the United States all right, title, and interest 
    in and to a parcel of real property determined by the Secretary to 
    be an appropriate location for such facilities, if the Secretary 
    elects to make the conveyance authorized by subsection (a); or
        (2) lease to the United States a parcel of real property 
    determined by the Secretary to be an appropriate location for such 
    facilities, if the Secretary elects to make the lease authorized by 
    subsection (b).
    (e) Availability of Replacement Facilities.--The Secretary may not 
make the conveyance authorized by subsection (a), or enter into the 
lease authorized by subsection (b), until the replacement facilities 
required by subsection (c) are available for the relocation of the 
operations of the Naval Air Reserve Center.
    (f) Agreement Relating to Conveyance.--(1) If the Secretary 
determines to proceed with the conveyance authorized by subsection (a), 
or the lease authorized by subsection (b), the Secretary and the 
Commission shall enter into an agreement specifying the terms and 
conditions under which the conveyance or lease will occur.
    (2) The Secretary may not enter into the agreement under paragraph 
(1) until 21 days after the date on which the Secretary submits to the 
congressional defense committees a report specifying the terms and 
conditions under which the conveyance or lease will occur.
    (g) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed to the Commission under 
subsection (a), or leased to the Commission under subsection (b), and 
the exact acreage and legal description of the real property to be 
conveyed or leased under subsection (d) to the United States, shall be 
determined by surveys satisfactory to the Secretary. The cost of the 
surveys shall be borne by the Commission.
    (h) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a), or the lease under subsection (b), as the 
Secretary considers appropriate to protect the interests of the United 
States.

                    PART III--AIR FORCE CONVEYANCES

SEC. 2861. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE BASE, 
              FLORIDA.

    Section 809(c) of the Military Construction Authorization Act, 1979 
(Public Law 95-356; 92 Stat. 587), as amended by section 2826 of the 
Military Construction Authorization Act, 1989 (division B of Public Law 
100-456; 102 Stat. 2123), is further amended by striking out ``and a 
third parcel containing forty-two acres'' and inserting in lieu thereof 
``, a third parcel containing forty-two acres, a fourth parcel 
containing approximately 3.43 acres, and a fifth parcel containing 
approximately 0.56 acres''.

SEC. 2862. MODIFICATION OF LAND CONVEYANCE, FINLEY AIR FORCE STATION, 
              NORTH DAKOTA.

    Section 2835 of the Military Construction Authorization Act for 
Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 3063) is 
amended--
        (1) by striking out subsections (a), (b), and (c) and inserting 
    in lieu thereof the following new subsections:
    ``(a) Conveyance Authorized.--The Secretary of the Air Force may 
convey, without consideration, to the City of Finley, North Dakota (in 
this section referred to as the `City'), all right, title, and interest 
of the United States in and to the parcels of real property, including 
improvements thereon, in the vicinity of Finley, North Dakota, 
described in subsection (b), for the purpose of permitting the City to 
use the parcels for economic development.
    ``(b) Covered Parcels.--The parcels of real property authorized for 
conveyance under subsection (a) are as follows:
        ``(1) A parcel of approximately 14 acres that served as the 
    support complex of the Finley Air Force Station and Radar Site.
        ``(2) A parcel of approximately 57 acres known as the Finley 
    Air Force Station Complex.
        ``(3) A parcel of approximately 6 acres that includes a well 
    site and wastewater treatment system.
    ``(c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified 
in such subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry onto the property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for a 
hearing.''; and
        (2) in subsections (d) and (e), by striking out ``subsection 
    (a)(1)'' and inserting in lieu thereof ``subsection (a)''.

SEC. 2863. LAND CONVEYANCE, LAKE CHARLES AIR FORCE STATION, LOUISIANA.

    (a) Conveyance Authorized.--The Secretary of the Air Force may 
convey, without consideration, to McNeese State University of Louisiana 
(in this section referred to as the ``University''), all right, title, 
and interest of the United States in and to a parcel of real property, 
including improvements thereon, consisting of approximately 4.38 acres 
at Lake Charles Air Force Station, Louisiana, for the purpose of 
permitting the University to use the parcel for educational purposes 
and agricultural research.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the University.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified 
in such subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry onto the property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2864. LAND CONVEYANCE, AIR FORCE HOUSING FACILITY, LA JUNTA, 
              COLORADO.

    (a) Conveyance Authorized.--The Secretary of the Air Force may 
convey, without consideration, to the City of La Junta, Colorado (in 
this section referred to as the ``City''), all right, title, and 
interest of the United States in and to the unused Air Force housing 
facility, consisting of approximately 28 acres and improvements 
thereon, located within the southern-most boundary of the City, for the 
purpose of permitting the City to develop the conveyed property for 
housing and educational purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) shall 
be determined by a survey satisfactory to the Secretary. The cost of 
the survey shall be borne by the City.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified 
in such subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry onto the property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

                       Subtitle E--Other Matters

SEC. 2871. MODIFICATION OF AUTHORITY RELATING TO DEPARTMENT OF DEFENSE 
              LABORATORY REVITALIZATION DEMONSTRATION PROGRAM.

    (a) Program Requirements.--Subsection (c) of section 2892 of the 
Military Construction Authorization Act for Fiscal Year 1996 (division 
B of Public Law 104-106; 110 Stat. 590; 10 U.S.C. 2805 note) is amended 
to read as follows:
    ``(c) Program Requirements.--(1) Not later than 30 days before 
commencing the program, the Secretary shall establish procedures for 
the review and approval of requests from Department of Defense 
laboratories for construction under the program.
    ``(2) The laboratories at which construction may be carried out 
under the program may not include Department of Defense laboratories 
that are contractor-owned.''.
    (b) Report.--Subsection (d) of that section is amended to read as 
follows:
    ``(d) Report.--Not later than February 1, 2003, the Secretary shall 
submit to Congress a report on the program. The report shall include 
the Secretary's conclusions and recommendation regarding the 
desirability of making the authority set forth under subsection (b) 
permanent.''.
    (c) Extension.--Subsection (g) of that section is amended by 
striking out ``September 30, 1998'' and inserting in lieu thereof 
``September 30, 2003''.

SEC. 2872. REPEAL OF PROHIBITION ON JOINT USE OF GRAY ARMY AIRFIELD, 
              FORT HOOD, TEXAS, WITH CIVIL AVIATION.

    Section 319 of the National Defense Authorization Act for Fiscal 
Year 1987 (Public Law 99-661; 100 Stat. 3855) is repealed.

SEC. 2873. MODIFICATION OF DEMONSTRATION PROJECT FOR PURCHASE OF FIRE, 
              SECURITY, POLICE, PUBLIC WORKS, AND UTILITY SERVICES FROM 
              LOCAL GOVERNMENT AGENCIES.

    Section 816 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2820), as amended by section 
352 of the National Defense Authorization Act for Fiscal Year 1997 
(Public Law 104-201; 110 Stat. 2491), is further amended--
        (1) in subsection (a), by striking out ``, beginning October 1, 
    1994,'';
        (2) in subsection (b), by striking out ``and 1998'' and 
    inserting in lieu thereof ``through 2000''; and
        (3) by adding at the end the following new subsection:
    ``(c) Duration of Project.--The authority to purchase or receive 
services under the demonstration project shall expire on September 30, 
2000.''.

SEC. 2874. DESIGNATION OF BUILDING CONTAINING NAVY AND MARINE CORPS 
              RESERVE CENTER, AUGUSTA, GEORGIA.

    The building containing the Navy and Marine Corps Reserve Center 
located at 2869 Central Avenue in Augusta, Georgia, shall be known and 
designated as the ``A. James Dyess Building''.

               TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL

Sec.2901.Short title.
Sec.2902.Withdrawal and reservation.
Sec.2903.Map and legal description.
Sec.2904.Agency agreement.
Sec.2905.Right-of-way grants.
Sec.2906.Indian sacred sites.
Sec.2907.Actions concerning ranching operations in withdrawn area.
Sec.2908.Management of withdrawn and reserved lands.
Sec.2909.Integrated natural resource management plan.
Sec.2910.Memorandum of understanding.
Sec.2911.Maintenance of roads.
Sec.2912.Management of withdrawn and acquired mineral resources.
Sec.2913.Hunting, fishing, and trapping.
Sec.2914.Water rights.
Sec.2915.Duration of withdrawal.
Sec.2916.Environmental remediation of relinquished withdrawn lands or 
          upon termination of withdrawal.
Sec.2917.Delegation of authority.
Sec.2918.Hold harmless.
Sec.2919.Authorization of appropriations.

SEC. 2901. SHORT TITLE.

    This title may be cited as the ``Juniper Butte Range Withdrawal 
Act''.

SEC. 2902. WITHDRAWAL AND RESERVATION.

    (a) Withdrawal.--Subject to valid existing rights and except as 
otherwise provided in this title, the lands at the Juniper Butte Range, 
Idaho, referred to in subsection (c), are withdrawn from all forms of 
appropriation under the public land laws, including the mining laws and 
the mineral and geothermal leasing laws but not the Act of July 31, 
1947 (commonly known as the Materials Act of 1947; 30 U.S.C. 601 et 
seq.).
    (b) Reserved Uses.--The lands withdrawn under subsection (a) are 
reserved for use by the Secretary of the Air Force for--
        (1) a high hazard training area;
        (2) dropping non-explosive training ordnance with spotting 
    charges;
        (3) electronic warfare and tactical maneuvering and air 
    support; and
        (4) other defense-related purposes consistent with the purposes 
    specified in paragraphs (1), (2), and (3), including continued 
    natural resource management and environmental remediation in 
    accordance with section 2916.
    (c) Site Development Plans.--(1) Site development plans shall be 
prepared before construction.
    (2) Site development plans shall be incorporated in the integrated 
natural resource management plan developed under section 2909.
    (3) Except in the case of any minimal improvements, development on 
the withdrawn lands of any facilities beyond those proposed and 
analyzed in the Environmental Impact Statement concerning Enhanced 
Training in Idaho, prepared by the Secretary of the Air Force, the 
Record of Decision dated March 10, 1998, concerning Enhanced Training 
in Idaho, prepared by the Secretary of the Air Force, and the site 
development plans shall be contingent upon review and approval of the 
Idaho State Director of the Bureau of Land Management.
    (d) General Description.--(1) The public lands withdrawn and 
reserved by this section comprise approximately 11,300 acres of public 
land in Owhyee County, Idaho, as generally depicted on the map entitled 
``Juniper Butte Range Withdrawal--Proposed'', dated June 1998, that 
will be filed in accordance with section 2903.
    (2) The withdrawal is for an approximately 10,600-acre tactical 
training range, a 640-acre no-drop target site, four 5-acre no-drop 
target sites and nine 1-acre electronic threat emitter sites.

SEC. 2903. MAP AND LEGAL DESCRIPTION.

    (a) In General.--As soon as practicable after the date of the 
enactment of this Act, the Secretary of the Interior shall--
        (1) publish in the Federal Register a notice containing the 
    legal description of the lands withdrawn and reserved by this 
    title; and
        (2) file a map or maps and the legal description of the lands 
    withdrawn and reserved by this title with the Committee on Energy 
    and Natural Resources of the Senate and with the Committee on 
    Resources of the House of Representatives.
    (b) Incorporation by Reference.--Such maps and legal description 
shall have the same force and effect as if included in this title.
    (c) Correction of Errors.--The Secretary of the Interior may 
correct clerical and typographical errors in such map or maps and legal 
description.
    (d) Availability.--Copies of such map or maps and the legal 
description shall be available for public inspection in the following 
offices:
        (1) The office of the Idaho State Director of the Bureau of 
    Land Management.
        (2) The offices of the managers of the Lower Snake River 
    District, Bureau Field Office and Jarbidge Field Office of the 
    Bureau of Land Management.
        (3) The Office of the commander of Mountain Home Air Force 
    Base, Idaho.
    (e) Utilization of Air Force Descriptions and Maps.--To the extent 
practicable, the Secretary of the Interior shall adopt the legal 
description and maps prepared by the Secretary of the Air Force in 
support of this title.
    (f) Reimbursement of Costs.--The Secretary of the Air Force shall 
reimburse the Secretary of the Interior for the costs incurred by the 
Department of the Interior in implementing this section.

SEC. 2904. AGENCY AGREEMENT.

    (a) Findings.--Congress makes the following findings:
        (1) The Bureau of Land Management and the Air Force have agreed 
    upon additional mitigation measures associated with this land 
    withdrawal as specified in the ``ENHANCED TRAINING IN IDAHO 
    Memorandum of Understanding Between The Bureau of Land Management 
    and The United States Air Force'' dated June 11, 1998.
        (2) This agreement specifies that these mitigation measures 
    will be adopted as part of the Air Force's Record of Decision for 
    Enhanced Training in Idaho.
        (3) Congress endorses this collaborative effort between the 
    agencies and directs that the agreement be implemented.
    (b) Modification.--The parties may, in accordance with the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), mutually 
agree to modify the mitigation measures specified in the agreement in 
light of experience gained through the actions called for in the 
agreement or as a result of changed military circumstances.
    (c) Construction.--Neither the agreement, any modification thereof, 
nor this section creates any right, benefit, or trust responsibility, 
substantive or procedural, enforceable at law or equity by a party 
against the United States, its agencies, its officers, or any person.

SEC. 2905. RIGHT-OF-WAY GRANTS.

    In addition to the withdrawal under section 2902 and in accordance 
with all applicable laws, the Secretary of the Interior shall process 
and grant the Secretary of the Air Force rights-of-way using the 
Department of the Interior regulations and policies in effect at the 
time of filing applications for the one-quarter acre electronic warfare 
threat emitter sites, roads, powerlines, and other ancillary facilities 
as described and analyzed in the Enhanced Training in Idaho Final 
Environmental Impact Statement, dated January 1998.

SEC. 2906. INDIAN SACRED SITES.

    (a) Management.--(1) In the management of the Federal lands 
withdrawn and reserved by this title, the Air Force shall, to the 
extent practicable and not clearly inconsistent with essential agency 
functions--
        (A) accommodate access to and ceremonial use of Indian sacred 
    sites by Indian religious practitioners; and
        (B) avoid adversely affecting the integrity of such sacred 
    sites.
    (2) The Secretary of the Air Force shall maintain the 
confidentiality of such sites where appropriate.
    (b) Consultation.--The commander of Mountain Home Air Force Base, 
Idaho, shall regularly consult with the Tribal Chairman of the 
Shoshone-Paiute Tribes of the Duck Valley Reservation to assure that 
tribal government rights and concerns are fully considered during the 
development of the Juniper Butte Range.
    (c) Definitions.--In this section:
        (1) The term ``sacred site'' shall mean any specific, discrete, 
    narrowly delineated location on Federal land that is identified by 
    an Indian tribe, or Indian individual determined to be an 
    appropriately authoritative representative of an Indian religion, 
    as sacred by virtue of its established religious significance to, 
    or ceremonial use by, an Indian religion but only to the extent 
    that the tribe or appropriately authoritative representative of an 
    Indian religion has informed the Air Force of the existence of such 
    a site.
        (2) The term ``Indian tribe'' means an Indian or Alaska Native 
    tribe, band, nation, pueblo, village, or community that the 
    Secretary of the Interior acknowledges to exist as an Indian tribe 
    pursuant to the Federally Recognized Indian Tribe List Act of 1994 
    (25 U.S.C. 479a-1).
        (3) The term ``Indian'' refers to a member of an Indian tribe.

SEC. 2907. ACTIONS CONCERNING RANCHING OPERATIONS IN WITHDRAWN AREA.

    (a) Authority To Conclude and Implement Agreements.--The Secretary 
of the Air Force is authorized and directed to, upon such terms and 
conditions as the Secretary of the Air Force considers just and in the 
national interest, conclude and implement agreements with the grazing 
permittees to provide appropriate consideration, including future 
grazing arrangements.
    (b) Implementation.--(1) Upon the conclusion of these agreements, 
the Assistant Secretary of the Interior for Land and Minerals 
Management shall grant rights-of-way and approvals and take such 
actions as are necessary to implement promptly this title and the 
agreements with the grazing permittees.
    (2) The Secretary of the Air Force and the Secretary of the 
Interior shall allow the grazing permittees for lands withdrawn and 
reserved by this title to continue their activities on the lands in 
accordance with the permits and their applicable regulations until the 
Secretary of the Air Force has fully implemented the agreement with the 
grazing permittees under this section.
    (3) Upon the implementation of these agreements, the Bureau of Land 
Management is authorized and directed, subject to the limitations 
included in this section, to terminate grazing on the lands withdrawn.

SEC. 2908. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.

    (a) In General.--Except as provided in section 2916(d), during the 
withdrawal and reservation of any lands under this title, the Secretary 
of the Air Force shall manage such lands for purposes relating to the 
uses set forth in section 2902(b).
    (b) Management According To Plan.--The lands withdrawn and reserved 
by this title shall be managed in accordance with the provisions of 
this title under the integrated natural resources management plan 
prepared under section 2909.
    (c) Authority To Close Land.--(1) If the Secretary of the Air Force 
determines that military operations, public safety, or the interests of 
national security require the closure to public use of any road, trail, 
or other portion of the lands withdrawn by this title that are commonly 
in public use, the Secretary of the Air Force may take such action.
    (2) Closures under paragraph (1) shall be limited to the minimum 
areas and periods required for the purposes specified in this 
subsection.
    (3) During closures, the Secretary of the Air Force shall keep 
appropriate warning notices posted and take appropriate steps to notify 
the public about the closures.
    (d) Lease Authority.--The Secretary of the Air Force may enter into 
leases for State lands with the State of Idaho in support of the 
Juniper Butte Range and operations at the Juniper Butte Range.
    (e) Prevention and Suppression of Fire.--(1) The Secretary of the 
Air Force shall take appropriate precautions to prevent and suppress 
brush fires and range fires that occur within the boundaries of the 
Juniper Butte Range, as well as brush and range fires occurring outside 
the boundaries of the Range resulting from military activities.
    (2) Notwithstanding section 2465 of title 10, United States Code, 
the Secretary of the Air Force may obligate funds appropriated or 
otherwise available to the Secretary to enter into contracts for fire-
fighting.
    (3)(A) The memorandum of understanding under section 2910 shall 
provide for the Bureau of Land Management to assist the Secretary of 
the Air Force in the suppression of the fires described in paragraph 
(1).
    (B) The memorandum of understanding shall provide that the 
Secretary of the Air Force reimburse the Bureau of Land Management for 
any costs incurred by the Bureau of Land Management under this 
paragraph.
    (f) Use of Mineral Materials.--Notwithstanding any other provision 
of this title or the Act of July 31, 1947 (commonly known as the 
Materials Act of 1947; 30 U.S.C. 601 et seq.), the Secretary of the Air 
Force may use, from the lands withdrawn and reserved by this title, 
sand, gravel, or similar mineral material resources of the type subject 
to disposition under the Act of July 31, 1947, when the use of such 
resources is required for construction needs of the Juniper Butte 
Range.

SEC. 2909. INTEGRATED NATURAL RESOURCE MANAGEMENT PLAN.

    (a) Requirement.--(1)(A) Not later than 2 years after the date of 
the enactment of this Act, the Secretary of the Air Force shall, in 
cooperation with the Secretary of the Interior, the State of Idaho, and 
Owyhee County, Idaho, develop an integrated natural resources 
management plan to address the management of the resources of the lands 
withdrawn and reserved by this title during their withdrawal and 
reservation under this title.
    (B) Additionally, the integrated natural resource management plan 
shall address mitigation and monitoring activities by the Air Force for 
State and Federal lands affected by military training activities 
associated with the Juniper Butte Range.
    (C) The foregoing will be done cooperatively between the Air Force, 
the Bureau of Land Management, the State of Idaho, and Owyhee County, 
Idaho.
    (2) Except as otherwise provided under this title, the integrated 
natural resources management plan under this section shall be developed 
in accordance with, and meet the requirements of, section 101 of the 
Sikes Act (16 U.S.C. 670a).
    (3)(A) Site development plans shall be prepared before construction 
of facilities.
    (B) Such plans shall be reviewed by the Bureau of Land Management, 
for Federal lands, and the State of Idaho, for State lands, for 
consistency with the proposal assessed in the Enhanced Training in 
Idaho Environmental Impact Statement.
    (C) The portion of such development plans describing reconfigurable 
or replacement targets may be conceptual.
    (b) Elements.--The integrated natural resources management plan 
under subsection (a) shall--
        (1) include provisions for the proper management and protection 
    of the natural, cultural, and other resources and values of the 
    lands withdrawn and reserved by this title and for the use of such 
    resources in a manner consistent with the uses set forth in section 
    2902(b);
        (2) permit livestock grazing at the discretion of the Secretary 
    of the Air Force in accordance with section 2907 or any other 
    authorities relating to livestock grazing that are available to 
    that Secretary;
        (3) permit fencing, water pipeline modifications and 
    extensions, and the construction of aboveground water reservoirs, 
    and the maintenance and repair of these items on the lands 
    withdrawn and reserved by this title, and on other lands under the 
    jurisdiction of the Bureau of Land Management; and
        (4) otherwise provide for the management by the Secretary of 
    the Air Force of any lands withdrawn and reserved by this title 
    while retained under the jurisdiction of that Secretary under this 
    title.
    (c) Periodic Review.--The Secretary of the Air Force shall, in 
cooperation with the Secretary of the Interior and the State of Idaho, 
review the adequacy of the provisions of the integrated natural 
resources management plan developed under this section at least once 
every 5 years after the effective date of the plan.

SEC. 2910. MEMORANDUM OF UNDERSTANDING.

    (a) Requirement.--The Secretary of the Air Force, the Secretary of 
the Interior, and the Governor of the State of Idaho shall jointly 
enter into a memorandum of understanding to implement the integrated 
natural resources management plan required under section 2909.
    (b) Term.--The memorandum of understanding under subsection (a) 
shall apply to any lands withdrawn and reserved by this title until 
their relinquishment by the Secretary of the Air Force under this 
title.
    (c) Modification.--The memorandum of understanding under subsection 
(a) may be modified by agreement of all the parties specified in that 
subsection.

SEC. 2911. MAINTENANCE OF ROADS.

    The Secretary of the Air Force shall enter into agreements with the 
Owyhee County Highway District, Idaho, and the Three Creek Good Roads 
Highway District, Idaho, under which the Secretary of the Air Force 
shall pay the costs of road maintenance incurred by such districts that 
are attributable to operations of the Department of the Air Force 
associated with the Juniper Butte Range.

SEC. 2912. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL RESOURCES.

    Except as provided in subsection 2908(f), the Secretary of the 
Interior shall manage all withdrawn and acquired mineral resources 
within the boundaries of the Juniper Butte Range in accordance with the 
Act of February 28, 1958 (commonly known as the Engle Act; 43 U.S.C. 
155 et seq.).

SEC. 2913. HUNTING, FISHING, AND TRAPPING.

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

SEC. 2914. WATER RIGHTS.

    (a) Limitation.--The Secretary of the Air Force shall not seek or 
obtain any water rights associated with any water pipeline modified or 
extended, or aboveground water reservoir constructed, for purposes of 
consideration under section 2907.
    (b) New Rights.--(1) Nothing in this title shall be construed to 
establish a reservation in favor of the United States with respect to 
any water or water right on the lands withdrawn and reserved by this 
title.
    (2) Nothing in this title shall be construed to authorize the 
appropriation of water on the lands withdrawn and reserved by this 
title by the United States after the date of the enactment of this Act 
unless such appropriation is carried out in accordance with the laws of 
the State of Idaho.
    (c) Applicability.--This section may not be construed to affect any 
water rights acquired by the United States before the date of the 
enactment of this Act.

SEC. 2915. DURATION OF WITHDRAWAL.

    (a) Termination--(1) Except as otherwise provided in this section 
and section 2916, the withdrawal and reservation made by this title 
shall terminate 25 years after the date of the enactment of this Act.
    (2) At the time of termination, the previously withdrawn lands 
shall not be open to the general land laws, including the mining laws 
and the mineral and geothermal leasing laws, until the Secretary of the 
Interior publishes in the Federal Register an appropriate order which 
shall state the date upon which such lands shall be opened.
    (b) Relinquishment.--(1) If the Secretary of the Air Force 
determines under subsection (c) that the Air Force has no continuing 
military need for any lands withdrawn and reserved by this title, the 
Secretary of the Air Force shall submit to the Secretary of the 
Interior a notice of intent to relinquish jurisdiction over such lands 
to the Secretary of the Interior.
    (2) The Secretary of the Interior may accept jurisdiction over any 
lands covered by a notice of intent to relinquish jurisdiction under 
paragraph (1) if the Secretary of the Interior determines that the 
Secretary of the Air Force has completed the environmental review 
required under section 2916(a) and the conditions under section 2916(c) 
have been met.
    (3) If the Secretary of the Interior decides to accept jurisdiction 
over lands under paragraph (2) before the date of termination, as 
provided for in subsection (a)(1), the Secretary of the Interior shall 
publish in the Federal Register an appropriate order which shall--
        (A) revoke the withdrawal and reservation of such lands under 
    this title;
        (B) constitute official acceptance of administrative 
    jurisdiction over the lands by the Secretary of the Interior; and
        (C) state the date upon which such lands shall be opened to the 
    operation of the general land laws, including the mining laws and 
    the mineral and geothermal leasing laws, if appropriate.
    (4) The Secretary of the Interior shall manage any lands 
relinquished under this subsection as multiple use status lands.
    (5) If the Secretary of the Interior declines pursuant to 
subsection (b)(2) to accept jurisdiction of any parcel of land proposed 
for relinquishment, that parcel shall remain under the continued 
administration of the Secretary of the Air Force pursuant to section 
2916(d).
    (c) Extension.--(1) In the case of any lands withdrawn and reserved 
by this title that the Air Force proposes to include in a notice of 
extension because of continued military need under paragraph (2), the 
Secretary of the Air Force shall, before issuing the notice under 
paragraph (2)--
        (A) evaluate the environmental effects of the extension of the 
    withdrawal and reservation of such lands in accordance with all 
    applicable laws and regulations; and
        (B) hold at least one public meeting in the State of Idaho 
    regarding that evaluation.
    (2)(A) Not later than 2 years before the termination of the 
withdrawal and reservation of lands by this title under subsection (a), 
the Secretary of the Air Force shall notify Congress and the Secretary 
of the Interior as to whether or not the Air Force has a continuing 
military need for any of the lands withdrawn and reserved by this 
title, and not previously relinquished under this section, after the 
termination date as specified in subsection (a).
    (B)(i) The Secretary of the Air force shall specify in the notice 
under subparagraph (A) the duration of any extension or further 
extension of withdrawal and reservation of such lands under this title.
    (ii) The duration of each extension or further extension under 
clause (i) shall not exceed 25 years.
    (C) The notice under subparagraph (A) shall be published in the 
Federal Register and a newspaper of local distribution with the 
opportunity for comments, within a 60-day period, which shall be 
provided to the Secretary of the Air Force and the Secretary of the 
Interior.
    (3)(A) Subject to subparagraph (B), in the case of any lands 
withdrawn and reserved by this title that are covered by a notice of 
extension under subsection (c)(2), the withdrawal and reservation of 
such lands shall extend under the provisions of this title after the 
termination date otherwise provided for under subsection (a) for such 
period as is specified in the notice under subsection (c)(2).
    (B) Subparagraph (A) shall not apply with respect to any lands 
covered by a notice referred to in that paragraph until 90 legislative 
days after the date on which the notice with respect to such lands is 
submitted to Congress under paragraph (2).

SEC. 2916. ENVIRONMENTAL REMEDIATION OF RELINQUISHED WITHDRAWN LANDS OR 
              UPON TERMINATION OF WITHDRAWAL.

    (a) Environmental Review.--(1) Before submitting under section 2915 
a notice of an intent to relinquish jurisdiction over lands withdrawn 
and reserved by this title, and in all cases not later than 2 years 
before the date of termination of withdrawal and reservation, the 
Secretary of the Air Force shall, in consultation with the Secretary of 
the Interior, complete a review that fully characterizes the 
environmental conditions of such lands (including any water and air 
associated with such lands) in order to identify any contamination on 
such lands.
    (2) The Secretary of the Air Force shall submit to the Secretary of 
the Interior a copy of the review prepared with respect to any lands 
under paragraph (1). The Secretary of the Air Force shall also submit 
at the same time any notice of intent to relinquish jurisdiction over 
such lands under section 2915.
    (3) The Secretary of the Air Force shall submit a copy of any such 
review to Congress.
    (b) Environmental Remediation of Lands.--The Secretary of the Air 
Force shall, in accordance with applicable State and Federal law, carry 
out and complete environmental remediation--
        (1) before relinquishing jurisdiction to the Secretary of the 
    Interior over any lands identified in a notice of intent to 
    relinquish under section 2915(b); or
        (2) before the date of termination of the withdrawal and 
    reservation, except as provided under subsection (d).
    (c) Postponement of Relinquishment.--The Secretary of the Interior 
shall not accept jurisdiction over any lands that are the subject of 
activities under subsection (b) until the Secretary of the Interior 
determines that environmental conditions on the lands are such that--
        (1) all necessary environmental remediation has been completed 
    by the Secretary of the Air Force;
        (2) the lands are safe for nonmilitary uses; and
        (3) the lands could be opened consistent with the Secretary of 
    the Interior's public land management responsibilities.
    (d) Jurisdiction When Withdrawal Terminates.--If the determination 
required by section (c) cannot be achieved for any parcel of land 
subject to the withdrawal and reservation before the termination date 
of the withdrawal and reservation, the Secretary of the Air Force shall 
retain administrative jurisdiction over such parcels of land 
notwithstanding the termination date for the limited purposes of--
        (1) environmental remediation activities under subsection (b); 
    and
        (2) any activities relating to the management of such lands 
    after the termination of the withdrawal reservation for military 
    purposes that are provided for in the integrated natural resources 
    management plan under section 2909.
    (e) Effect on Other Laws.--Nothing in this title shall affect, or 
be construed to affect, the obligations, if any, of the Secretary of 
the Air Force to decontaminate lands withdrawn by this title pursuant 
to applicable law, including the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) and 
the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).

SEC. 2917. DELEGATION OF AUTHORITY.

    (a) Department of the Air Force Functions.--Except for executing 
the agreement referred to in section 2907, the Secretary of the Air 
Force may delegate that Secretary's functions under this title.
    (b) Department of the Interior Functions.--(1) Except as provided 
in paragraph (2), the Secretary of the Interior may delegate that 
Secretary's functions under this title.
    (2) The order referred to in section 2915(b)(3) may be approved and 
signed only by the Secretary of the Interior, the Deputy Secretary of 
the Interior, or an Assistant Secretary of the Interior.
    (3) The approvals granted by the Bureau of Land Management shall be 
pursuant to the decisions of the Secretary of the Interior, or the 
Assistant Secretary for Land and Minerals Management.

SEC. 2918. HOLD HARMLESS.

    Any party conducting any mining, mineral, or geothermal leasing 
activity on lands withdrawn and reserved by this title shall indemnify 
the United States against any costs, fees, damages, or other 
liabilities (including costs of litigation) incurred by the United 
States and arising from or relating to such mining activities, 
including costs of mineral materials disposal, whether arising under 
the Comprehensive Environmental Response, Compensation, and Liability 
Act of 1980 (42 U.S.C. 9601 et seq.), the Solid Waste Disposal Act (42 
U.S.C. 6901 et seq.), or otherwise.

SEC. 2919. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out this title.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS
      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec.3101.Weapons activities.
Sec.3102.Defense environmental restoration and waste management.
Sec.3103.Other defense activities.
Sec.3104.Defense nuclear waste disposal.
Sec.3105.Defense environmental management privatization.

                Subtitle B--Recurring General Provisions

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

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec.3131.Permanent extension of funding prohibition relating to 
          international cooperative stockpile stewardship.
Sec.3132.Support of ballistic missile defense activities of the 
          Department of Defense.
Sec.3133.Nonproliferation activities.
Sec.3134.Licensing of certain mixed oxide fuel fabrication and 
          irradiation facilities.
Sec.3135.Continuation of processing, treatment, and disposition of 
          legacy nuclear materials.
Sec.3136.Authority for Department of Energy federally funded research 
          and development centers to participate in merit-based 
          technology research and development programs.
Sec.3137.Activities of Department of Energy facilities.
Sec.3138.Hanford overhead and service center costs.
Sec.3139.Hanford waste tank cleanup program reforms.
Sec.3140.Hanford Health Information Network.
Sec.3141.Hazardous materials management and emergency response training 
          program.
Sec.3142.Support for public education in the vicinity of Los Alamos 
          National Laboratory, New Mexico.
Sec.3143.Relocation of National Atomic Museum, Albuquerque, New Mexico.
Sec.3144.Tritium production.

                        Subtitle D--Other Matters

Sec.3151.Study and plan relating to worker and community transition 
          assistance.
Sec.3152.Extension of authority for appointment of certain scientific, 
          engineering, and technical personnel.
Sec.3153.Requirement for plan to modify employment system used by 
          Department of Energy in defense environmental management 
          programs.
Sec.3154.Department of Energy nuclear materials couriers.
Sec.3155.Increase in maximum rate of pay for scientific, engineering, 
          and technical personnel responsible for safety at defense 
          nuclear facilities.
Sec.3156.Extension of authority of Department of Energy to pay voluntary 
          separation incentive payments.
Sec.3157.Repeal of fiscal year 1998 statement of policy on stockpile 
          stewardship program.
Sec.3158.Report on stockpile stewardship criteria.
Sec.3159.Panel to assess the reliability, safety, and security of the 
          United States nuclear stockpile.
Sec.3160.International cooperative information exchange.
Sec.3161.Protection against inadvertent release of Restricted Data and 
          Formerly Restricted Data.
Sec.3162.Sense of Congress regarding treatment of Formerly Utilized 
          Sites Remedial Action Program under a nondefense discretionary 
          budget function.
Sec.3163.Reports relating to tritium production.

         Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

    (a) In General.--Funds are hereby authorized to be appropriated to 
the Department of Energy for fiscal year 1999 for weapons activities in 
carrying out programs necessary for national security in the amount of 
$4,511,600,000, to be allocated as follows:
        (1) Stockpile stewardship.--Funds are hereby authorized to be 
    appropriated to the Department of Energy for fiscal year 1999 for 
    stockpile stewardship in carrying out weapons activities necessary 
    for national security programs in the amount of $2,148,375,000, to 
    be allocated as follows:
            (A) For core stockpile stewardship, $1,591,375,000, to be 
        allocated as follows:
                (i) For operation and maintenance, $1,475,832,000.
                (ii) For plant projects (including maintenance, 
            restoration, planning, construction, acquisition, 
            modification of facilities, and the continuation of 
            projects authorized in prior years, and land acquisition 
            related thereto), $115,543,000, to be allocated as follows:

                    Project 99-D-102, rehabilitation of maintenance 
                facility, Lawrence Livermore National Laboratory, 
                Livermore, California, $6,500,000.
                    Project 99-D-103, isotope sciences facilities, 
                Lawrence Livermore National Laboratory, Livermore, 
                California, $4,000,000.
                    Project 99-D-104, protection of real property (roof 
                reconstruction, Phase II), Lawrence Livermore National 
                Laboratory, Livermore, California, $7,300,000.
                    Project 99-D-105, central health physics 
                calibration facility, Los Alamos National Laboratory, 
                Los Alamos, New Mexico, $3,900,000.
                    Project 99-D-106, model validation and system 
                certification test center, Sandia National 
                Laboratories, Albuquerque, New Mexico, $1,600,000.
                    Project 99-D-107, joint computational engineering 
                laboratory, Sandia National Laboratories, Albuquerque, 
                New Mexico, $1,800,000.
                    Project 99-D-108, renovate existing roadways, 
                Nevada Test Site, Nevada, $2,000,000.
                    Project 97-D-102, dual-axis radiographic hydrotest 
                facility, Los Alamos National Laboratory, Los Alamos, 
                New Mexico, $36,000,000.
                    Project 96-D-102, stockpile stewardship facilities 
                revitalization, Phase VI, various locations, 
                $20,423,000.
                    Project 96-D-103, ATLAS, Los Alamos National 
                Laboratory, Los Alamos, New Mexico, $6,400,000.
                    Project 96-D-104, processing and environmental 
                technology laboratory, Sandia National Laboratories, 
                Albuquerque, New Mexico, $18,920,000.
                    Project 96-D-105, contained firing facility 
                addition, Lawrence Livermore National Laboratory, 
                Livermore, California, $6,700,000.

            (B) For inertial fusion, $498,000,000, to be allocated as 
        follows:
                (i) For operation and maintenance, $213,800,000.
                (ii) For the following plant project (including 
            maintenance, restoration, planning, construction, 
            acquisition, and modification of facilities, and land 
            acquisition related thereto), $284,200,000, to be allocated 
            as follows:

                    Project 96-D-111, national ignition facility, 
                Lawrence Livermore National Laboratory, Livermore, 
                California, $284,200,000.

            (C) For technology partnership and education, $59,000,000, 
        to be allocated as follows:
                (i) For technology partnership, $50,000,000.
                (ii) For education, $9,000,000.
        (2) Stockpile management.--Funds are hereby authorized to be 
    appropriated to the Department of Energy for fiscal year 1999 for 
    stockpile management in carrying out weapons activities necessary 
    for national security programs in the amount of $2,113,225,000, to 
    be allocated as follows:
            (A) For operation and maintenance, $2,014,303,000.
            (B) For plant projects (including maintenance, restoration, 
        planning, construction, acquisition, modification of 
        facilities, and the continuation of projects authorized in 
        prior years, and land acquisition related thereto), 
        $98,922,000, to be allocated as follows:
                Project 99-D-122, rapid reactivation, various 
            locations, $11,200,000.
                Project 99-D-123, replace mechanical utility systems, 
            Y-12 Plant, Oak Ridge, Tennessee, $1,900,000.
                Project 99-D-125, replace boilers and controls, Kansas 
            City Plant, Kansas City, Missouri, $1,000,000.
                Project 99-D-127, stockpile management restructuring 
            initiative, Kansas City Plant, Kansas City, Missouri, 
            $13,700,000.
                Project 99-D-128, stockpile management restructuring 
            initiative, Pantex Plant consolidation, Amarillo, Texas, 
            $1,108,000.
                Project 99-D-132, stockpile management restructuring 
            initiative, nuclear material safeguards and security 
            upgrades project, Los Alamos National Laboratory, Los 
            Alamos, New Mexico, $9,700,000.
                Project 98-D-123, stockpile management restructuring 
            initiative, tritium facility modernization and 
            consolidation, Savannah River Site, Aiken, South Carolina, 
            $27,500,000.
                Project 98-D-124, stockpile management restructuring 
            initiative, Y-12 Plant consolidation, Oak Ridge, Tennessee, 
            $10,700,000.
                Project 97-D-122, nuclear materials storage facility 
            renovation, Los Alamos National Laboratory, Los Alamos, New 
            Mexico, $3,764,000.
                Project 97-D-123, structural upgrades, Kansas City 
            Plant, Kansas City, Missouri, $6,400,000.
                Project 96-D-122, sewage treatment quality upgrade, 
            Pantex Plant, Amarillo, Texas, $3,700,000.
                Project 95-D-102, chemistry and metallurgy research 
            building upgrades, Los Alamos National Laboratory, Los 
            Alamos, New Mexico, $5,000,000.
                Project 93-D-122, life safety upgrades, Y-12 Plant, Oak 
            Ridge, Tennessee, $3,250,000.
        (3) Program direction.--Funds are hereby authorized to be 
    appropriated to the Department of Energy for fiscal year 1999 for 
    program direction in carrying out weapons activities necessary for 
    national security programs in the amount of $250,000,000.
    (b) Adjustments.--
        (1) Construction.--The total amount authorized to be 
    appropriated pursuant to paragraphs (1)(A)(ii), (1)(B)(ii), and 
    (2)(B) of subsection (a) is the sum of the amounts authorized to be 
    appropriated in those paragraphs, reduced by $13,600,000.
        (2) Non-construction.--The total amount authorized to be 
    appropriated pursuant to paragraphs (1)(A)(i), (1)(B)(i), (1)(C), 
    (2)(A), and (3) of subsection (a) is the sum of the amounts 
    authorized to be appropriated in those paragraphs, reduced by 
    $178,900,000, to be derived from use of prior year balances.

SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

    (a) In General.--Funds are hereby authorized to be appropriated to 
the Department of Energy for fiscal year 1999 for environmental 
restoration and waste management in carrying out programs necessary for 
national security in the amount of $5,446,143,000, to be allocated as 
follows:
        (1) Closure projects.--For closure projects carried out in 
    accordance with section 3143 of the National Defense Authorization 
    Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2836; 42 
    U.S.C. 7274n) in the amount of $1,038,240,000.
        (2) Site project and completion.--For site project and 
    completion in carrying out environmental restoration and waste 
    management activities necessary for national security programs in 
    the amount of $1,067,253,000, to be allocated as follows:
            (A) For operation and maintenance, $868,090,000.
            (B) For plant projects (including maintenance, restoration, 
        planning, construction, acquisition, modification of 
        facilities, and the continuation of projects authorized in 
        prior years, and land acquisition related thereto), 
        $199,163,000, to be allocated as follows:
                Project 99-D-402, tank farm support services, F&H 
            areas, Savannah River Site, Aiken, South Carolina, 
            $2,745,000.
                Project 99-D-404, health physics instrumentation 
            laboratory, Idaho National Engineering Laboratory, Idaho, 
            $950,000.
                Project 98-D-401, H-tank farm storm water systems 
            upgrade, Savannah River Site, Aiken, South Carolina, 
            $3,120,000.
                Project 98-D-453, plutonium stabilization and handling 
            system for plutonium finishing plant, Richland, Washington, 
            $26,814,000.
                Project 98-D-700, road rehabilitation, Idaho National 
            Engineering Laboratory, Idaho, $7,710,000.
                Project 97-D-450, Actinide packaging and storage 
            facility, Savannah River Site, Aiken, South Carolina, 
            $79,184,000.
                Project 97-D-470, environmental monitoring laboratory, 
            Savannah River Site, Aiken, South Carolina, $7,000,000.
                Project 96-D-406, spent nuclear fuels canister storage 
            and stabilization facility, Richland, Washington, 
            $38,680,000.
                Project 96-D-408, waste management upgrades, Kansas 
            City Plant, Kansas City, Missouri, and Savannah River Site, 
            Aiken, South Carolina, $4,512,000.
                Project 96-D-464, electrical and utility systems 
            upgrade, Idaho Chemical Processing Plant, Idaho National 
            Engineering Laboratory, Idaho, $11,544,000.
                Project 96-D-471, chlorofluorocarbon heating, 
            ventilation, and air conditioning and chiller retrofit, 
            Savannah River Site, Aiken, South Carolina, $8,000,000.
                Project 95-D-456, security facilities consolidation, 
            Idaho Chemical Processing Plant, Idaho National Engineering 
            Laboratory, Idaho, $485,000.
                Project 92-D-140, F&H canyon exhaust upgrades, Savannah 
            River Site, Aiken, South Carolina, $3,667,000.
                Project 86-D-103, decontamination and waste treatment 
            facility, Lawrence Livermore National Laboratory, 
            Livermore, California, $4,752,000.
        (3) Post-2006 completion.--For post-2006 project completion in 
    carrying out environmental restoration and waste management 
    activities necessary for national security programs in the amount 
    of $2,744,451,000, to be allocated as follows:
            (A) For operation and maintenance, $2,663,195,000.
            (B) For plant projects (including maintenance, restoration, 
        planning, construction, acquisition, modification of 
        facilities, and the continuation of projects authorized in 
        prior years, and land acquisition related thereto), 
        $81,256,000, to be allocated as follows:
                Project 99-D-403, privatization phase I infrastructure 
            support, Richland, Washington, $14,800,000.
                Project 97-D-402, tank farm restoration and safe 
            operations, Richland, Washington, $22,723,000.
                Project 96-D-408, waste management upgrades, Richland, 
            Washington, $171,000.
                Project 94-D-407, initial tank retrieval systems, 
            Richland, Washington, $32,860,000.
                Project 93-D-187, high-level waste removal from filled 
            waste tanks, Savannah River Site, Aiken, South Carolina, 
            $10,702,000.
        (4) Science and technology.--For science and technology in 
    carrying out environmental restoration and waste management 
    activities necessary for national security programs in the amount 
    of $250,000,000.
        (5) Program direction.--For program direction in carrying out 
    environmental restoration and waste management activities necessary 
    for national security programs in the amount of $346,199,000.
    (b) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1), (2)(A), (3)(A), (4), and (5) of subsection 
(a) is the sum of the amounts authorized to be appropriated in those 
paragraphs, reduced by $94,100,000, to be derived from use of prior 
year balances.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    (a) In General.--Funds are hereby authorized to be appropriated to 
the Department of Energy for fiscal year 1999 for other defense 
activities in carrying out programs necessary for national security in 
the amount of $1,716,160,000, to be allocated as follows:
        (1) Nonproliferation and national security.--For 
    nonproliferation and national security, $699,300,000, to be 
    allocated as follows:
            (A) For verification and control technology, $503,500,000, 
        to be allocated as follows:
                (i) For nonproliferation and verification research and 
            development, $210,000,000.
                (ii) For arms control, $256,900,000.
                (iii) For intelligence, $36,600,000.
            (B) For nuclear safeguards and security, $53,200,000.
            (C) For security investigations, $30,000,000.
            (D) For emergency management, $23,700,000.
            (E) For program direction, $88,900,000.
        (2) Worker and community transition assistance.--For worker and 
    community transition assistance, $40,000,000, to be allocated as 
    follows:
            (A) For worker and community transition, $36,000,000.
            (B) For program direction, $4,000,000.
        (3) Fissile materials control and disposition.--For fissile 
    materials control and disposition, $168,960,000, to be allocated as 
    follows:
            (A) For operation and maintenance, $111,372,000.
            (B) For program direction, $4,588,000.
            (C) For plant projects (including maintenance, restoration, 
        planning, construction, acquisition, modification of 
        facilities, and the continuation of projects authorized in 
        prior years, and land acquisition related thereto), 
        $53,000,000, to be allocated as follows:
                Project 99-D-141, pit disassembly and conversion 
            facility, various locations, $25,000,000.
                Project 99-D-143, mixed oxide fuel fabrication 
            facility, various locations, $28,000,000.
        (4) Environment, safety, and health.--For environment, safety, 
    and health, defense, $89,000,000, to be allocated as follows:
            (A) For the Office of Environment, Safety, and Health 
        (Defense), $84,231,000.
            (B) For program direction, $4,769,000.
        (5) Office of hearings and appeals.--For the Office of Hearings 
    and Appeals, $2,400,000.
        (6) International nuclear safety.--For international nuclear 
    safety, $35,000,000.
        (7) Naval reactors.--For naval reactors, $681,500,000, to be 
    allocated as follows:
            (A) For naval reactors development, $661,400,000, to be 
        allocated as follows:
                (i) For operation and maintenance, $639,600,000.
                (ii) For plant projects (including maintenance, 
            restoration, planning, construction, acquisition, 
            modification of facilities, and the continuation of 
            projects authorized in prior years, and land acquisition 
            related thereto), $21,800,000, to be allocated as follows:

                    GPN-101, general plant projects, various locations, 
                $9,000,000.
                    Project 98-D-200, site laboratory/facility upgrade, 
                various locations, $7,000,000.
                    Project 90-N-102, expended core facility dry cell 
                project, Naval Reactors Facility, Idaho, $5,800,000.

            (B) For program direction, $20,100,000.
    (b) Adjustment.--(1) The total amount authorized to be appropriated 
pursuant to this section is the sum of the amounts authorized to be 
appropriated in paragraphs (1) through (7) of subsection (a) reduced by 
$2,000,000.
    (2) The amount authorized to be appropriated pursuant to subsection 
(a)(1)(C) is reduced by $20,000,000 to reflect an offset provided by 
user organizations for security investigations.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1999 for payment to the Nuclear Waste Fund 
established in section 302(c) of the Nuclear Waste Policy Act of 1982 
(42 U.S.C. 10222(c)) in the amount of $190,000,000.

SEC. 3105. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

    (a) In General.--Funds are hereby authorized to be appropriated to 
the Department of Energy for fiscal year 1999 for privatization 
initiatives in carrying out environmental restoration and waste 
management activities necessary for national security programs in the 
amount of $286,857,000, to be allocated as follows:
        Project 99-PVT-1, remote handled transuranic waste 
    transportation, Carlsbad, New Mexico, $19,605,000.
        Project 98-PVT-2, spent nuclear fuel dry storage, Idaho Falls, 
    Idaho, $30,000,000.
        Project 98-PVT-5, waste disposal, Oak Ridge, Tennessee, 
    $50,000,000.
        Project 97-PVT-1, tank waste remediation system phase I, 
    Hanford, Washington, $100,000,000.
        Project 97-PVT-2, advanced mixed waste treatment facility, 
    Idaho Falls, Idaho, $87,252,000.
    (b) Adjustment.--The amount authorized to be appropriated in 
subsection (a) is the sum of the amounts authorized to be appropriated 
for the projects set forth in that subsection, reduced by $32,000,000 
for use of prior year balances of funds for defense environmental 
management privatization.

                Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

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

SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

    (a) In General.--The Secretary of Energy may carry out any 
construction project under the general plant projects authorized by 
this title if the total estimated cost of the construction project does 
not exceed $5,000,000.
    (b) Report to Congress.--If, at any time during the construction of 
any general plant project authorized by this title, the estimated cost 
of the project is revised because of unforeseen cost variations and the 
revised cost of the project exceeds $5,000,000, the Secretary shall 
immediately furnish a complete report to the congressional defense 
committees explaining the reasons for the cost variation.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

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

SEC. 3124. FUND TRANSFER AUTHORITY.

    (a) Transfer to Other Federal Agencies.--The Secretary of Energy 
may transfer funds authorized to be appropriated to the Department of 
Energy pursuant to this title to other Federal agencies for the 
performance of work for which the funds were authorized. Funds so 
transferred may be merged with and be available for the same purposes 
and for the same period as the authorizations of the Federal agency to 
which the amounts are transferred.
    (b) Transfer Within Department of Energy.--(1) Subject to paragraph 
(2), the Secretary of Energy may transfer funds authorized to be 
appropriated to the Department of Energy pursuant to this title between 
any such authorizations. Amounts of authorizations so transferred may 
be merged with and be available for the same purposes and for the same 
period as the authorization to which the amounts are transferred.
    (2) Not more than 5 percent of any such authorization may be 
transferred between authorizations under paragraph (1). No such 
authorization may be increased or decreased by more than five percent 
by a transfer under such paragraph.
    (c) Limitation.--The authority provided by this section to transfer 
authorizations--
        (1) may only be used to provide funds for items relating to 
    activities necessary for national security programs that have a 
    higher priority than the items from which the funds are 
    transferred; and
        (2) may not be used to provide funds for an item for which 
    Congress has specifically denied funds.
    (d) Notice to Congress.--The Secretary of Energy shall promptly 
notify the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives of any transfer of 
funds to or from authorizations under this title.

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

    (a) Requirement for Conceptual Design.--(1) Subject to paragraph 
(2) and except as provided in paragraph (3), before submitting to 
Congress a request for funds for a construction project that is in 
support of a national security program of the Department of Energy, the 
Secretary of Energy shall complete a conceptual design for that 
project.
    (2) If the estimated cost of completing a conceptual design for a 
construction project exceeds $3,000,000, the Secretary shall submit to 
Congress a request for funds for the conceptual design before 
submitting a request for funds for the construction project.
    (3) The requirement in paragraph (1) does not apply to a request 
for funds--
        (A) for a construction project the total estimated cost of 
    which is less than $5,000,000; or
        (B) for emergency planning, design, and construction activities 
    under section 3126.
    (b) Authority for Construction Design.--(1) Within the amounts 
authorized by this title, the Secretary of Energy may carry out 
construction design (including architectural and engineering services) 
in connection with any proposed construction project if the total 
estimated cost for such design does not exceed $600,000.
    (2) If the total estimated cost for construction design in 
connection with any construction project exceeds $600,000, funds for 
such design must be specifically authorized by law.

SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION 
              ACTIVITIES.

    (a) Authority.--The Secretary of Energy may use any funds available 
to the Department of Energy pursuant to an authorization in this title, 
including those funds authorized to be appropriated for advance 
planning and construction design under sections 3101, 3102, and 3103, 
to perform planning, design, and construction activities for any 
Department of Energy national security program construction project 
that, as determined by the Secretary, must proceed expeditiously in 
order to protect public health and safety, to meet the needs of 
national defense, or to protect property.
    (b) Limitation.--The Secretary may not exercise the authority under 
subsection (a) in the case of any construction project until the 
Secretary has submitted to the congressional defense committees a 
report on the activities that the Secretary intends to carry out under 
this section and the circumstances making such activities necessary.
    (c) Specific Authority.--The requirement of section 3125(b)(2) does 
not apply to emergency planning, design, and construction activities 
conducted under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE 
              DEPARTMENT OF ENERGY.

    Subject to the provisions of appropriations Acts and section 3121, 
amounts appropriated pursuant to this title for management and support 
activities and for general plant projects are available for use, when 
necessary, in connection with all national security programs of the 
Department of Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

    (a) In General.--Except as provided in subsection (b), when so 
specified in an appropriations Act, amounts appropriated for operation 
and maintenance or for plant projects may remain available until 
expended.
    (b) Exception for Program Direction Funds.--Amounts appropriated 
for program direction pursuant to an authorization of appropriations in 
subtitle A shall remain available to be expended only until the end of 
fiscal year 2001.

SEC. 3129. TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

    (a) Transfer Authority for Defense Environmental Management 
Funds.--The Secretary of Energy shall provide the manager of each field 
office of the Department of Energy with the authority to transfer 
defense environmental management funds from a program or project under 
the jurisdiction of the office to another such program or project.
    (b) Limitations.--(1) Only one transfer may be made to or from any 
program or project under subsection (a) in a fiscal year.
    (2) The amount transferred to or from a program or project under 
subsection (a) may not exceed $5,000,000 in a fiscal year.
    (3) A transfer may not be carried out by a manager of a field 
office under subsection (a) unless the manager determines that the 
transfer is necessary to address a risk to health, safety, or the 
environment or to assure the most efficient use of defense 
environmental management funds at the field office.
    (4) Funds transferred pursuant to subsection (a) may not be used 
for an item for which Congress has specifically denied funds or for a 
new program or project that has not been authorized by Congress.
    (c) Exemption From Reprogramming Requirements.--The requirements of 
section 3121 shall not apply to transfers of funds pursuant to 
subsection (a).
    (d) Notification.--The Secretary, acting through the Assistant 
Secretary of Energy for Environmental Management, shall notify Congress 
of any transfer of funds pursuant to subsection (a) not later than 30 
days after such transfer occurs.
    (e) Definitions.--In this section:
        (1) The term ``program or project'' means, with respect to a 
    field office of the Department of Energy, any of the following:
            (A) A program referred to or a project listed in paragraph 
        (2) or (3) of section 3102.
            (B) A program or project not described in subparagraph (A) 
        that is for environmental restoration or waste management 
        activities necessary for national security programs of the 
        Department, that is being carried out by the office, and for 
        which defense environmental management funds have been 
        authorized and appropriated before the date of the enactment of 
        this Act.
        (2) The term ``defense environmental management funds'' means 
    funds appropriated to the Department of Energy pursuant to an 
    authorization for carrying out environmental restoration and waste 
    management activities necessary for national security programs.
    (f) Duration of Authority.--The managers of the field offices of 
the Department may exercise the authority provided under subsection (a) 
during the period beginning on October 1, 1998, and ending on September 
30, 1999.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. PERMANENT EXTENSION OF FUNDING PROHIBITION RELATING TO 
              INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.

    Section 3133(a) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2036) is amended by 
striking out ``for fiscal year 1998'' and inserting in lieu thereof 
``for any fiscal year''.

SEC. 3132. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF THE 
              DEPARTMENT OF DEFENSE.

    (a) Funds To Carry Out Certain Ballistic Missile Defense 
Activities.--Of the amounts authorized to be appropriated to the 
Department of Energy pursuant to section 3101, $30,000,000 shall be 
available for research, development, and demonstration activities to 
support the mission of the Ballistic Missile Defense Organization of 
the Department of Defense, including the following activities:
        (1) Technology development, concept demonstration, and 
    integrated testing to improve reliability and reduce risk in hit-
    to-kill interceptors for missile defense.
        (2) Support for science and engineering teams to address 
    technical problems identified by the Director of the Ballistic 
    Missile Defense Organization as critical to acquisition of a 
    theater missile defense capability.
    (b) Memorandum of Understanding.--The activities referred to in 
subsection (a) shall be carried out under the memorandum of 
understanding entered into by the Secretary of Energy and the Secretary 
of Defense for the use of national laboratories for ballistic missile 
defense programs, as required by section 3131 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
2034).
    (c) Method of Funding.--Funds for activities referred to in 
subsection (a) may be provided--
        (1) by direct payment from funds available pursuant to 
    subsection (a); or
        (2) in the case of such an activity carried out by a national 
    laboratory but paid for by the Ballistic Missile Defense 
    Organization, through a method under which the Secretary of Energy 
    waives any requirement for the Department of Defense to pay any 
    indirect expenses (including overhead and federal administrative 
    charges) of the Department of Energy or its contractors.

SEC. 3133. NONPROLIFERATION ACTIVITIES.

    (a) Initiatives for Proliferation Prevention.--Of the amount 
authorized to be appropriated by section 3103(a)(1)(A)(ii), up to 
$20,000,000 may be used for the Initiatives for Proliferation 
Prevention program.
    (b) Nuclear Cities Initiative.--(1) Funds authorized under this 
title may not be obligated or expended for the purpose of implementing 
the Nuclear Cities Initiative until--
        (A) the Secretary of Energy submits to the congressional 
    defense committees the report described in paragraph (2); and
        (B) a period of 20 legislative days has expired following the 
    date on which the report is submitted to Congress.
    (2) The Secretary of Energy shall prepare a report on the Nuclear 
Cities Initiative. The report shall describe--
        (A) the objectives of the initiative;
        (B) methods and processes for the implementation of the 
    initiative;
        (C) a program timeline for the initiative with milestones; and
        (D) the funding requirements for the initiative through its 
    completion.
    (3) For purposes of this section, the term ``Nuclear Cities 
Initiative'' means the initiative arising pursuant to the March 1998 
discussion between the Vice President of the United States and the 
Prime Minister of the Russian Federation and between the Secretary of 
Energy of the United States and the Minister of Atomic Energy of the 
Russian Federation.
    (4) For purposes of paragraph (1)(B), a legislative day is a day on 
which both Houses of Congress are in session.

SEC. 3134. LICENSING OF CERTAIN MIXED OXIDE FUEL FABRICATION AND 
              IRRADIATION FACILITIES.

    (a) License Requirement.--Section 202 of the Energy Reorganization 
Act of 1974 (42 U.S.C. 5842) is amended by adding at the end the 
following new paragraph:
        ``(5) Any facility under a contract with and for the account of 
    the Department of Energy that is utilized for the express purpose 
    of fabricating mixed plutonium-uranium oxide nuclear reactor fuel 
    for use in a commercial nuclear reactor licensed under such Act, 
    other than any such facility that is utilized for research, 
    development, demonstration, testing, or analysis purposes.''.
    (b) Availability of Funds for Licensing by NRC.--Section 210 of the 
Department of Energy National Security and Military Applications of 
Nuclear Energy Authorization Act of 1981 (42 U.S.C. 7272) shall not 
apply to any licensing activities required pursuant to section 202(5) 
of the Energy Reorganization Act of 1974 (42 U.S.C. 5842), as added by 
subsection (a).
    (c) Applicability of Occupational Safety and Health Requirements to 
Activities Under License.--Any activities carried out under a license 
required pursuant to section 202(5) of the Energy Reorganization Act of 
1974 (42 U.S.C. 5842), as added by subsection (a), shall be subject to 
regulation under the Occupational Safety and Health Act of 1970 (29 
U.S.C. 651 et seq.).

SEC. 3135. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSITION OF 
              LEGACY NUCLEAR MATERIALS.

    The Secretary of Energy shall continue operations and maintain a 
high state of readiness at the F-canyon and H-canyon facilities at the 
Savannah River Site, Aiken, South Carolina, and shall provide technical 
staff necessary to operate and so maintain such facilities.

SEC. 3136. AUTHORITY FOR DEPARTMENT OF ENERGY FEDERALLY FUNDED RESEARCH 
              AND DEVELOPMENT CENTERS TO PARTICIPATE IN MERIT-BASED 
              TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAMS.

    (a) Authority.--Section 217(f)(1) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2695) is amended--
        (1) by inserting ``(A)'' after ``(1)'';
        (2) by inserting ``or of the Department of Energy'' after ``the 
    Department of Defense''; and
        (3) by adding at the end the following new subparagraph:
    ``(B) A federally funded research and development center of the 
Department of Energy described in subparagraph (A) may respond to 
solicitations and announcements described in that subparagraph only for 
activities conducted by the center under contract with or on behalf of 
the Department of Defense.''.
    (b) Conforming Amendment.--Section 217(f)(2) of such Act is amended 
by inserting ``(A)'' after ``(1)''.

SEC. 3137. ACTIVITIES OF DEPARTMENT OF ENERGY FACILITIES.

    (a) Research and Activities on Behalf of Non-Department Persons and 
Entities.--(1) The Secretary of Energy may conduct research and other 
activities referred to in paragraph (2) at facilities of the Department 
of Energy on behalf of other departments and agencies of the 
Government, agencies of State and local governments, and private 
persons and entities.
    (2) The research and other activities that may be conducted under 
paragraph (1) are those which the Secretary is authorized to conduct by 
law, including research and activities authorized under the following 
provisions of law:
        (A) The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
        (B) The Energy Reorganization Act of 1974 (42 U.S.C. 5811 et 
    seq.).
        (C) The Federal Nonnuclear Energy Research and Development Act 
    of 1974 (42 U.S.C. 5901 et seq.).
    (b) Charges.--(1) The Secretary shall impose on the department, 
agency, or person or entity for which research and other activities are 
carried out under subsection (a) a charge for such research and 
activities in carrying out such research and activities, which shall 
include--
        (A) the direct cost incurred in carrying out such research and 
    activities; and
        (B) the overhead cost, including site-wide indirect costs, 
    associated with such research and activities.
    (2)(A) Subject to subparagraph (B), the Secretary shall also impose 
on the department, agency, or person or entity concerned a Federal 
administrative charge (which includes any depreciation and imputed 
interest charges) in an amount not to exceed 3 percent of the full cost 
incurred in carrying out the research and activities concerned.
    (B) The Secretary may waive the imposition of the Federal 
administrative charge required by subparagraph (A) in the case of 
research and other activities conducted on behalf of small business 
concerns, institutions of higher education, non-profit entities, and 
State and local governments.
    (3) Not later than 2 years after the date of the enactment of this 
Act, the Secretary shall terminate any waiver of charges under section 
33 of the Atomic Energy Act of 1954 (42 U.S.C. 2053) that were made 
before such date, unless the Secretary determines that such waiver 
should be continued.
    (c) Pilot Program of Reduced Facility Overhead Charges.--(1) The 
Secretary may, with the cooperation of participating contractors of the 
contractor-operated facilities of the Department, carry out a pilot 
program under which the Secretary and such contractors reduce the 
facility overhead charges imposed under this section for research and 
other activities conducted under this section.
    (2) The Secretary shall carry out the pilot program at contractor-
operated facilities selected by the Secretary in consultation with the 
contractors concerned.
    (3) The Secretary shall determine the facility overhead charges to 
be imposed under the pilot program at a facility based on a joint 
review by the Secretary and the contractor for the facility of all 
items included in the overhead costs of the facility in order to 
determine which items are appropriately incurred as facility overhead 
charges by the contractor in carrying out research and other activities 
at such facility under this section.
    (4) The Secretary shall commence carrying out the pilot program 
under this subsection not later than October 1, 1999, and shall 
terminate the pilot program on September 30, 2003.
    (5) Not later than January 31, 2003, the Secretary shall submit to 
Congress an interim report on the results of the pilot program under 
this subsection. The report shall include any recommendations for the 
extension or expansion of the pilot program, including the 
establishment of multiple rates of overhead charges for various 
categories of persons and entities seeking research and other 
activities in contractor-operated facilities of the Department.
    (d) Applicability With Respect to User Fee Practice.--This section 
does not apply to the practice of the Department of Energy with respect 
to user fees at Department facilities.

SEC. 3138. HANFORD OVERHEAD AND SERVICE CENTER COSTS.

    (a) Target for Reduction of Costs.--The Secretary of Energy shall 
establish a target for the overhead and service center costs for the 
Project Hanford Management Contractor for fiscal year 1999 that is less 
than the established baseline for such costs for that fiscal year.
    (b) Use of Funds Resulting from Reduction.--If the actual overhead 
and service center costs for that contractor for fiscal year 1999 are 
less than the established baseline for such costs for that fiscal year, 
the Secretary, to the extent consistent with fiscal year 1999 
appropriations, shall use an amount equal to the difference between the 
baseline and such actual costs to perform additional clean-up work at 
Hanford in order to reduce the most threatening environmental risks at 
Hanford and to comply with applicable laws and regulations and the Tri-
Party Agreement among the Department of Energy, the Environmental 
Protection Agency, and the State of Washington.
    (c) Review.--The Director of the Defense Contract Audit Agency 
shall review the Project Hanford Management Contract for compliance 
with cost accounting standards promulgated pursuant to section 26(f) of 
the Office of Federal Procurement Policy Act (42 U.S.C. 422(f)). The 
review shall include the following:
        (1) An identification and assessment of methods for calculating 
    overhead costs.
        (2) A description of activities the costs of which are 
    allocated to--
            (A) all accounts at the Hanford site other than overhead 
        accounts; or
            (B) other contracts under which work is performed at the 
        Hanford site.
        (3) A description of service center costs, including--
            (A) computer service and information management costs and 
        other support service costs; and
            (B) costs of any activity which is paid for on a per-unit 
        basis.
        (4) An identification and assessment of all fees, awards, or 
    other profit on overhead or service center costs that are not 
    attributed to performance on a single project or contract.
        (5) An identification and assessment of all contracts awarded 
    without competition.
        (6) An identification and assessment of any other costs that 
    the Director considers necessary or appropriate to present a full 
    and complete review of Hanford costs.
    (d) Report.--Not later than March 1, 1999, the Director of the 
Defense Contract Audit Agency shall submit to the congressional defense 
committees a report on the results of the review under subsection (c).

SEC. 3139. HANFORD WASTE TANK CLEANUP PROGRAM REFORMS.

    (a) Establishment of Office of River Protection.--The Secretary of 
Energy shall establish an office at the Hanford Reservation, Richland, 
Washington, to be known as the ``Office of River Protection'' (in this 
section referred to as the ``Office'').
    (b) Management and Responsibilities of Office.--(1) The Office 
shall be headed by a senior official of the Department of Energy, who 
shall report to the Assistant Secretary of Energy for Environmental 
Management.
    (2) The head of the Office shall be responsible for managing all 
aspects of the Tank Waste Remediation System (also referred to as the 
Hanford Tank Farm operations), including those portions under 
privatization contracts, of the Department of Energy at Hanford.
    (c) Department Responsibilities.--The Secretary shall provide the 
manager of the Office with the resources and personnel necessary to 
manage the tank waste privatization program at Hanford in an efficient 
and streamlined manner.
    (d) Integrated Management Plan.--Not later than 90 days after the 
date of the enactment of this Act, the Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committees on 
Commerce and on National Security of the House of Representatives an 
integrated management plan for all aspects of the Hanford Tank Farm 
operations, including the roles, responsibilities, and reporting 
relationships of the Office.
    (e) Report.--Not later than 2 years after the commencement of 
operations of the Office, the Secretary shall submit to the committees 
referred to in subsection (d) a report describing--
        (1) any progress in or resulting from the utilization of the 
    Tank Waste Remediation System; and
        (2) any improvements in the management structure of the 
    Department at Hanford with respect to the Tank Waste Remediation 
    System as a result of the Office.
    (f) Termination.--(1) The Office shall terminate 5 years after the 
commencement of operations under this section unless the Secretary 
determines that termination on that date would disrupt effective 
management of the Hanford Tank Farm operations.
    (2) The Secretary shall notify, in writing, the committees referred 
to in subsection (d) of a determination under paragraph (1).

SEC. 3140. HANFORD HEALTH INFORMATION NETWORK.

    Of the funds authorized to be appropriated or otherwise made 
available to the Department of Energy by section 3102, $1,500,000 shall 
be available for activities relating to the Hanford Health Information 
Network established pursuant to the authority in section 3138 of the 
National Defense Authorization Act for Fiscal Year 1991 (Public Law 
101-510; 104 Stat. 1834), as amended by section 3138(b) of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 3087).

SEC. 3141. HAZARDOUS MATERIALS MANAGEMENT AND EMERGENCY RESPONSE 
              TRAINING PROGRAM.

    The Secretary of Energy may enter into partnership arrangements 
with Federal and non-Federal entities to share the costs of operating 
the hazardous materials management and hazardous materials emergency 
response training program authorized under section 3140(a) of the 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 108 Stat. 3088). Such arrangements may include the exchange of 
equipment and services, in lieu of payment for the training program.

SEC. 3142. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS 
              NATIONAL LABORATORY, NEW MEXICO.

    (a) Availability of Funds.--Of the funds authorized to be 
appropriated or otherwise made available to the Department of Energy by 
this title, up to $5,000,000 shall be made available for payment by the 
Secretary of Energy to the educational foundation chartered to enhance 
educational activities in the public schools in the vicinity of Los 
Alamos National Laboratory, New Mexico (in this section referred to as 
the ``Foundation'').
    (b) Use of Funds.--(1) The Foundation shall utilize funds provided 
under subsection (a) as a contribution to an endowment fund for the 
Foundation.
    (2) The Foundation shall use the income generated from investments 
in the endowment fund that are attributable to the payment made under 
subsection (a) to fund programs to support the educational needs of 
children in public schools in the vicinity of Los Alamos National 
Laboratory.

SEC. 3143. RELOCATION OF NATIONAL ATOMIC MUSEUM, ALBUQUERQUE, NEW 
              MEXICO.

    The Secretary of Energy shall submit to the congressional defense 
committees a plan for the relocation of the National Atomic Museum in 
Albuquerque, New Mexico.

SEC. 3144. TRITIUM PRODUCTION.

    The Secretary of Energy may not obligate or expend any funds 
authorized to be appropriated or otherwise available to the Department 
of Energy for fiscal year 1999 to implement a final decision on the 
technology to be utilized for tritium production, made pursuant to 
section 3135 of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85; 111 Stat. 2037), until October 1, 1999.

                       Subtitle D--Other Matters

SEC. 3151. STUDY AND PLAN RELATING TO WORKER AND COMMUNITY TRANSITION 
              ASSISTANCE.

    (a) Study by the General Accounting Office.--
        (1) Study requirement.--The Comptroller General shall conduct a 
    study on the effects of workforce restructuring plans for defense 
    nuclear facilities developed pursuant to section 3161 of the 
    National Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 
    7274h).
        (2) Matters covered by study.--The study shall cover the four-
    year period preceding the date of the enactment of this Act and 
    shall include the following:
            (A) An analysis of the number of jobs created by any 
        employee retraining, education, and reemployment assistance and 
        any community impact assistance provided in each workforce 
        restructuring plan developed pursuant to section 3161 of the 
        National Defense Authorization Act for Fiscal Year 1993.
            (B) An analysis of other benefits provided pursuant to such 
        plans, including any assistance provided to community reuse 
        organizations.
            (C) A description of the funds expended, and the funds 
        obligated but not expended, pursuant to such plans as of the 
        date of the report.
            (D) A description of the criteria used since October 23, 
        1992, in providing assistance pursuant to such plans.
            (E) A comparison of any similar benefits provided--
                (i) pursuant to such a plan to employees whose 
            employment at the defense nuclear facility covered by the 
            plan is terminated; and
                (ii) to employees whose employment at a facility where 
            more than 50 percent of the revenues are derived from 
            contracts with the Department of Defense has been 
            terminated as a result of cancellation, termination, or 
            completion of contracts with the Department of Defense and 
            the employees whose employment is terminated constitute 
            more than 15 percent of the employees at that facility.
            (F) A comparison of--
                (i) involuntary separation benefits provided to 
            employees of Department of Energy contractors and 
            subcontractors under such plans; and
                (ii) involuntary separation benefits provided to 
            employees of the Federal Government.
            (G) A comparison of costs to the Federal Government 
        (including costs of involuntary separation benefits) for--
                (i) involuntary separations of employees of Department 
            of Energy contractors and subcontractors; and
                (ii) involuntary separations of employees of 
            contractors and subcontractors of other Federal Government 
            departments and agencies.
            (H) A description of the length of service and hiring dates 
        of employees of Department of Energy contractors and 
        subcontractors provided benefits under such plans in the 2-year 
        period preceding the date of the enactment of this Act.
        (3) Report on study.--The Comptroller General shall submit a 
    report to Congress on the results of the study not later than March 
    31, 1999.
        (4) Definition.--In this section, the term ``defense nuclear 
    facility'' has the meaning provided the term ``Department of Energy 
    defense nuclear facility'' in section 3163 of the National Defense 
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 42 
    U.S.C. 7274j).
    (b) Plan for Termination of Worker and Community Transition 
Program.--Not later than July 1, 1999, the Secretary of Energy shall 
submit to the congressional defense committees a plan to terminate the 
Office of Worker and Community Transition. The plan shall include--
        (1) a description of how the authority of the Office would be 
    terminated; and
        (2) a description of how the responsibility to manage 
    downsizing of the contractor workforce of the Department of Energy 
    would be transferred to other offices or programs within the 
    Department.

SEC. 3152. EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN 
              SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.

    Section 3161(c)(1) of the National Defense Authorization Act for 
Fiscal Year 1995 (42 U.S.C. 7231 note) is amended by striking out 
``September 30, 1999'' and inserting in lieu thereof ``September 30, 
2000''.

SEC. 3153. REQUIREMENT FOR PLAN TO MODIFY EMPLOYMENT SYSTEM USED BY 
              DEPARTMENT OF ENERGY IN DEFENSE ENVIRONMENTAL MANAGEMENT 
              PROGRAMS.

    (a) Plan Requirement.--Not later than February 1, 1999, the 
Secretary of Energy shall submit to Congress a report containing a plan 
to modify the Federal employment system used within the defense 
environmental management programs of the Department of Energy to allow 
for workforce restructuring in those programs.
    (b) Specified Elements of Plan.--The plan shall address strategies 
to recruit and hire--
        (1) individuals with a high degree of scientific and technical 
    competence in the areas of nuclear and toxic waste remediation and 
    environmental restoration; and
        (2) individuals with the necessary skills to manage large 
    construction and environmental remediation projects.
    (c) Legislative Changes.--The plan shall include an identification 
of the provisions of Federal law that would need to be changed to allow 
the Secretary of Energy to restructure the Department of Energy defense 
environmental management workforce to hire individuals described in 
subsection (b), while staying within any numerical limitations required 
by law (including section 3161 of Public Law 103-337 (42 U.S.C. 7231 
note)) on employment of such individuals.

SEC. 3154. DEPARTMENT OF ENERGY NUCLEAR MATERIALS COURIERS.

    (a) Maximum Age for Entry Into Nuclear Materials Courier Force.--
Section 3307 of title 5, United States Code, is amended--
        (1) in subsection (a), by striking ``and (d)'' and inserting 
    ``(d), (e), and (f)''; and
        (2) by adding at the end the following:
    ``(f) The Secretary of Energy may determine and fix the maximum age 
limit for an original appointment to a position as a nuclear materials 
courier, as defined by section 8331(27) or 8401(33).''.
    (b) Definition for Purposes of Civil Service Retirement System.--
Section 8331 of title 5, United States Code, is amended--
        (1) by striking ``and'' at the end of paragraph (25);
        (2) by striking the period at the end of paragraph (26) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(27) `Nuclear materials courier'--
            ``(A) means an employee of the Department of Energy, the 
        duties of whose position are primarily to transport, and 
        provide armed escort and protection during transit of, nuclear 
        weapons, nuclear weapon components, strategic quantities of 
        special nuclear materials or other materials related to 
        national security; and
            ``(B) includes an employee who is transferred directly to a 
        supervisory or administrative position within the same 
        Department of Energy organization, after performing duties 
        referred to in subparagraph (A) for at least 3 years.''.
    (c) Deductions, Contributions, and Deposits Under CSRS.--(1) 
Subsection (a)(1) of section 8334 of title 5, United States Code, is 
amended by striking ``or member of the Capitol Police,'' and inserting 
``member of the Capitol Police, or nuclear materials courier,''.
    (2) Subsection (c) of that section is amended by adding after the 
item for a Member of the Capitol Police the following new item:

``Nuclear materials courier...........  7.....................  October 1, 1977 to the day before the date of
                                                                 the enactment of the Strom Thurmond National
                                                                 Defense Authorization Act for Fiscal Year 1999.
                                        7.5...................  The date of the enactment of the Strom Thurmond
                                                                 National Defense Authorization Act for Fiscal
                                                                 Year 1999 to December 31, 1998.
                                        7.75..................  January 1, 1999 to December 31, 1999.
                                        7.9...................  January 1, 2000 to December 31, 2000.
                                        8.....................  January 1, 2001 to December 31, 2002.
                                        7.5...................  After December 31, 2002.''.


    (3) Notwithstanding subsection (a)(1) or (k)(1) of section 8334 of 
title 5, United States Code, or section 7001(a) of Public Law 105-33, 
during the period beginning on the effective date provided for under 
subsection (n)(1) and ending on September 30, 2002, the Department of 
Energy shall deposit in the Treasury of the United States to the credit 
of the Civil Service Retirement and Disability Fund on behalf of each 
nuclear materials courier from whose basic pay a deduction is made 
under such subsection (a)(1) during that period an amount equal to 9.01 
percent of such basic pay, in lieu of the agency contributions 
otherwise required under such subsection (a)(1) during that period.
    (d) Mandatory Separation Under CSRS.--Section 8335(b) of title 5, 
United States Code, is amended in the second sentence--
        (1) by inserting ``or nuclear materials courier'' after ``law 
    enforcement officer''; and
        (2) by inserting ``or courier, as the case may be,'' after 
    ``that officer''.
    (e) Immediate Retirement Under CSRS.--Section 8336(c)(1) of title 
5, United States Code, is amended by striking ``or firefighter'' and 
inserting ``, firefighter, or nuclear materials courier''.
    (f) Definition for Purposes of Federal Employees' Retirement 
System.--Section 8401 of title 5, United States Code, is amended--
        (1) by striking ``and'' at the end of paragraph (31);
        (2) by striking the period at the end of paragraph (32) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(33) `Nuclear materials courier' has the meaning given that 
    term in section 8331(27).''.
    (g) Immediate Retirement Under FERS.--Section 8412(d) of title 5, 
United States Code, is amended by striking ``or firefighter'' each 
place it appears in paragraphs (1) and (2) and inserting ``firefighter, 
or nuclear materials courier''.
    (h) Computation of Basic Annuity Under FERS.--Section 8415(g) of 
title 5, United States Code, is amended by inserting ``nuclear 
materials courier,'' after ``firefighter,''.
    (i) Deductions and Contributions Under FERS.--(1) Section 
8422(a)(3) of title 5, United States Code, is amended by adding after 
the item relating to a law enforcement officer, firefighter, member of 
the Capitol Police, or air traffic controller the following new item:

``Nuclear materials courier...........  7.....................  January 1, 1987 to the day before the date of
                                                                 the enactment of the Strom Thurmond National
                                                                 Defense Authorization Act for Fiscal Year 1999.
                                        7.5...................  The date of the enactment of the Strom Thurmond
                                                                 National Defense Authorization Act for Fiscal
                                                                 Year 1999 to December 31, 1998.
                                        7.75..................  January 1, 1999 to December 31, 1999.
                                        7.9...................  January 1, 2000 to December 31, 2000.
                                        8.....................  January 1, 2001 to December 31, 2001.
                                        7.5...................  After December 31, 2002.''.


    (2) Contributions under subsections (a) and (b) of section 8423 of 
title 5, United States Code, shall not be reduced as a result of that 
portion of the amendment made by paragraph (1) requiring employee 
deductions at a rate in excess of 7.5 percent for the period beginning 
on January 1, 1999, and ending on December 31, 2002.
    (j) Agency Contributions Under FERS.--Paragraphs (1)(B)(i) and 
(3)(A) of section 8423(a) of title 5, United States Code, are each 
amended by inserting ``nuclear materials couriers,'' after 
``firefighters,''.
    (k) Mandatory Separation Under FERS.--Section 8425(b) of title 5, 
United States Code, is amended by inserting ``or nuclear materials 
courier'' after ``law enforcement officer'' both places it appears in 
the second sentence.
    (l) Payments.--(1) The Department of Energy shall pay into the 
Civil Service Retirement and Disability Fund an amount determined by 
the Director of the Office of Personnel Management to be necessary to 
reimburse the Fund for any estimated increase in the unfunded liability 
of the Fund resulting from the amendments related to the Civil Service 
Retirement System under this section, and for any estimated increase in 
the supplemental liability of the Fund resulting from the amendments 
related to the Federal Employees Retirement System under this section.
    (2) The Department shall pay the amount so determined in five equal 
annual installments with interest computed at the rate used in the most 
recent valuation of the Federal Employees Retirement System.
    (3) The Department shall make payments under this subsection from 
amounts available for weapons activities of the Department.
    (m) Applicability.--Subsections (b) through (l) shall apply only to 
an individual who is employed as a nuclear materials courier, as 
defined by section 8331(27) or 8401(33) of title 5, United States Code 
(as amended by this section), after the later of--
        (1) September 30, 1998; or
        (2) the date of the enactment of this Act.
    (n) Effective Dates.--(1) Except as provided in paragraph (2), the 
amendments made by this section shall take effect at the beginning of 
the first pay period that begins after the later of--
        (A) October 1, 1998; or
        (B) the date of the enactment of this Act.
    (2)(A) The amendments made by subsection (a) shall take effect on 
the date of the enactment of this Act.
    (B) The amendments made by subsections (d) and (k) shall take 
effect 1 year after the date of the enactment of this Act.

SEC. 3155. INCREASE IN MAXIMUM RATE OF PAY FOR SCIENTIFIC, ENGINEERING, 
              AND TECHNICAL PERSONNEL RESPONSIBLE FOR SAFETY AT DEFENSE 
              NUCLEAR FACILITIES.

    Section 3161(a)(2) of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 42 U.S.C. 7231 note) is amended 
by striking out ``level IV of the Executive Schedule under section 
5315'' and inserting in lieu thereof ``level III of the Executive 
Schedule under section 5314''.

SEC. 3156. EXTENSION OF AUTHORITY OF DEPARTMENT OF ENERGY TO PAY 
              VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

    (a) Extension.--Notwithstanding subsection (c)(2)(D) of section 663 
of the Treasury, Postal Service, and General Government Appropriations 
Act, 1997 (Public Law 104-208; 110 Stat. 3009-383; 5 U.S.C. 5597 note), 
the Department of Energy may pay voluntary separation incentive 
payments to qualifying employees who voluntarily separate (whether by 
retirement or resignation) before January 1, 2001.
    (b) Exercise of Authority.--The Department shall pay voluntary 
separation incentive payments under subsection (a) in accordance with 
the provisions of such section 663.

SEC. 3157. REPEAL OF FISCAL YEAR 1998 STATEMENT OF POLICY ON STOCKPILE 
              STEWARDSHIP PROGRAM.

    Section 3156 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 2045; 42 U.S.C. 2121 note) is 
repealed.

SEC. 3158. REPORT ON STOCKPILE STEWARDSHIP CRITERIA.

    (a) Requirement for Criteria.--The Secretary of Energy shall 
develop clear and specific criteria for judging whether the science-
based tools being used by the Department of Energy for determining the 
safety and reliability of the nuclear weapons stockpile are performing 
in a manner that will provide an adequate degree of certainty that the 
stockpile is safe and reliable.
    (b) Coordination With Secretary of Defense.--The Secretary of 
Energy, in developing the criteria required by subsection (a), shall 
coordinate with the Secretary of Defense.
    (c) Report.--Not later than March 1, 2000, the Secretary of Energy 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the efforts by the Department of Energy to develop the criteria 
required by subsection (a). The report shall include--
        (1) a description of the information needed to determine that 
    the nuclear weapons stockpile is safe and reliable and the 
    relationship of the science-based tools to the collection of that 
    information; and
        (2) a description of the criteria required by subsection (a) to 
    the extent they have been developed as of the date of the 
    submission of the report.

SEC. 3159. PANEL TO ASSESS THE RELIABILITY, SAFETY, AND SECURITY OF THE 
              UNITED STATES NUCLEAR STOCKPILE.

    (a) Requirement for Panel.--The Secretary of Defense, in 
consultation with the Secretary of Energy, shall enter into a contract 
with a federally funded research and development center to establish a 
panel for the assessment of the certification process for the 
reliability, safety, and security of the United States nuclear 
stockpile.
    (b) Composition and Administration of Panel.--(1) The panel shall 
consist of private citizens of the United States with knowledge and 
expertise in the technical aspects of design, manufacture, and 
maintenance of nuclear weapons.
    (2) The federally funded research and development center shall be 
responsible for establishing appropriate procedures for the panel, 
including selection of a panel chairman.
    (c) Duties of Panel.--Each year the panel shall review and assess 
the following:
        (1) The annual certification process, including the conclusions 
    and recommendations resulting from the process, for the safety, 
    security, and reliability of the nuclear weapons stockpile of the 
    United States, as carried out by the directors of the national 
    weapons laboratories.
        (2) The long-term adequacy of the process of certifying the 
    safety, security, and reliability of the nuclear weapons stockpile 
    of the United States.
        (3) The adequacy of the criteria established by the Secretary 
    of Energy pursuant to section 3158 for achieving the purposes for 
    which those criteria are established.
    (d) Report.--Not later than October 1 of each year, beginning with 
1999, the panel shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report setting forth its findings and conclusions 
resulting from the review and assessment carried out for the year 
covered by the report. The report shall be submitted in classified and 
unclassified form.
    (e) Cooperation of Other Agencies.--(1) The panel may secure 
directly from the Department of Energy, the Department of Defense, or 
any of the national weapons laboratories or plants or any other Federal 
department or agency information that the panel considers necessary to 
carry out its duties.
    (2) For carrying out its duties, the panel shall be provided full 
and timely cooperation by the Secretary of Energy, the Secretary of 
Defense, the Commander of United States Strategic Command, the 
Directors of the Los Alamos National Laboratory, the Lawrence Livermore 
National Laboratory, the Sandia National Laboratories, the Savannah 
River Site, the Y-12 Plant, the Pantex Facility, and the Kansas City 
Plant, and any other official of the United States that the chairman of 
the panel determines as having information described in paragraph (1).
    (3) The Secretary of Energy and the Secretary of Defense shall each 
designate at least one officer or employee of the Department of Energy 
and the Department of Defense, respectively, to serve as a liaison 
officer between the department and the panel.
    (f) Funding.--The Secretary of Defense and the Secretary of Energy 
shall each contribute 50 percent of the amount of funds that are 
necessary for the panel to carry out its duties. Funds available for 
the Department of Energy for atomic energy defense activities shall be 
available for the Department of Energy contribution.
    (g) Termination of Panel.--The panel shall terminate three years 
after the date of the appointment of the member designated as chairman 
of the panel.
    (h) Initial Implementation.--The Secretary of Defense shall enter 
into the contract required under subsection (a) not later than 60 days 
after the date of the enactment of this Act. The panel shall convene 
its first meeting not later than 30 days after the date as of which all 
members of the panel have been appointed.

SEC. 3160. INTERNATIONAL COOPERATIVE INFORMATION EXCHANGE.

    (a) Findings.--Congress finds the following:
        (1) Currently in the post-cold war world, there are new 
    opportunities to facilitate international political and scientific 
    cooperation on cost-effective, advanced, and innovative nuclear 
    management technologies.
        (2) There is increasing public interest in monitoring and 
    remediation of nuclear waste.
        (3) It is in the best interest of the United States to explore 
    and develop options with the international community to facilitate 
    the exchange of evolving advanced nuclear wastes technologies.
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Energy, in consultation with the Secretary of State, the 
Secretary of Defense, the Administrator of the Environmental Protection 
Agency, and other officials as appropriate, should prepare and submit 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report containing 
the following:
        (1) An assessment of whether the United States should encourage 
    the establishment of an international project to facilitate the 
    international exchange of information (including costs data) 
    relating to nuclear waste technologies, including technologies for 
    solid and liquid radioactive wastes and contaminated soils and 
    sediments.
        (2) An assessment of whether such a project could be funded 
    privately through industry, public interest, and scientific 
    organizations and administered by an international nongovernmental 
    organization, with operations in the United States, Russia, and 
    other countries that have an interest in developing such 
    technologies.
        (3) A description of the Federal programs that facilitate the 
    exchange of such information and of any added benefit of 
    consolidating such programs into such a project.
        (4) Recommendations for any legislation that the Secretary of 
    Energy believes would be required to enable such a project to be 
    undertaken.

SEC. 3161. PROTECTION AGAINST INADVERTENT RELEASE OF RESTRICTED DATA 
              AND FORMERLY RESTRICTED DATA.

    (a) Plan for Protection Against Release.--The Secretary of Energy 
and the Archivist of the United States shall, after consultation with 
the members of the National Security Council and in consultation with 
the Secretary of Defense and the heads of other appropriate Federal 
agencies, develop a plan to prevent the inadvertent release of records 
containing Restricted Data or Formerly Restricted Data during the 
automatic declassification of records under Executive Order No. 12958 
(50 U.S.C. 435 note).
    (b) Plan Elements.--The plan under subsection (a) shall include the 
following:
        (1) The actions to be taken in order to ensure that records 
    subject to Executive Order No. 12958 are reviewed on a page-by-page 
    basis for Restricted Data and Formerly Restricted Data unless they 
    have been determined to be highly unlikely to contain Restricted 
    Data or Formerly Restricted Data.
        (2) The criteria and process by which documents are determined 
    to be highly unlikely to contain Restricted Data or Formerly 
    Restricted Data.
        (3) The actions to be taken in order to ensure proper training, 
    supervision, and evaluation of personnel engaged in 
    declassification under that Executive order so that such personnel 
    recognize Restricted Data and Formerly Restricted Data.
        (4) The extent to which automated declassification technologies 
    will be used under that Executive order to protect Restricted Data 
    and Formerly Restricted Data from inadvertent release.
        (5) Procedures for periodic review and evaluation by the 
    Secretary of Energy, in consultation with the Director of the 
    Information Security Oversight Office of the National Archives and 
    Records Administration, of compliance by Federal agencies with the 
    plan.
        (6) Procedures for resolving disagreements among Federal 
    agencies regarding declassification procedures and decisions under 
    the plan.
        (7) The funding, personnel, and other resources required to 
    carry out the plan.
        (8) A timetable for implementation of the plan.
    (c) Limitation on Declassification of Certain Records.--(1) 
Effective on the date of the enactment of this Act and except as 
provided in paragraph (3), a record referred to in subsection (a) may 
not be declassified unless the agency having custody of the record 
reviews the record on a page-by-page basis to ensure that the record 
does not contain Restricted Data or Formerly Restricted Data.
    (2) Any record determined as a result of a review under paragraph 
(1) to contain Restricted Data or Formerly Restricted Data may not be 
declassified until the Secretary of Energy, in conjunction with the 
head of the agency having custody of the record, determines that the 
document is suitable for declassification.
    (3) After the date occurring 60 days after the submission of the 
plan required by subsection (a) to the committees referred to in 
paragraphs (1) and (2) of subsection (d), the requirement under 
paragraph (1) to review a record on a page-by-page basis shall not 
apply in the case of a record determined, under the actions specified 
in the plan pursuant to subsection (b)(1), to be a record that is 
highly unlikely to contain Restricted Data or Formerly Restricted Data.
    (d) Submission of Plan.--The Secretary of Energy shall submit the 
plan required under subsection (a) to the following:
        (1) The Committee on Armed Services of the Senate.
        (2) The Committee on National Security of the House of 
    Representatives.
        (3) The Assistant to the President for National Security 
    Affairs.
    (e) Submission of Reviews.--The Secretary of Energy shall, on a 
periodic basis, submit a summary of the results of the periodic reviews 
and evaluations specified in the plan pursuant to subsection (b)(4) to 
the committees and Assistant to the President specified in subsection 
(d).
    (f) Report and Notification Regarding Inadvertent Releases.--(1) 
The Secretary of Energy shall submit to the committees and Assistant to 
the President specified in subsection (d) a report on inadvertent 
releases of Restricted Data or Formerly Restricted Data under Executive 
Order No. 12958 that occurred before the date of the enactment of this 
Act.
    (2) Not later than 30 days after any such inadvertent release 
occurring after the date of the enactment of this Act, the Secretary of 
Energy shall notify the committees and Assistant to the President 
specified in subsection (d) of such releases.
    (g) Definition.--In this section, the term ``Restricted Data'' has 
the meaning given that term in section 11 y. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2014(y)).

SEC. 3162. SENSE OF CONGRESS REGARDING TREATMENT OF FORMERLY UTILIZED 
              SITES REMEDIAL ACTION PROGRAM UNDER A NONDEFENSE 
              DISCRETIONARY BUDGET FUNCTION.

    It is the sense of Congress that the Office of Management and 
Budget should, beginning with fiscal year 2000, transfer the Formerly 
Utilized Sites Remedial Action Program from the National Defense budget 
function (budget function 050) to a nondefense discretionary budget 
function.

SEC. 3163. REPORTS RELATING TO TRITIUM PRODUCTION.

    (a) Report on Tritium Production Technology Options.--(1) The 
Secretary of Defense, in consultation with the Secretary of Energy, 
shall establish a task force of the Defense Science Board to examine 
tritium production technology options.
    (2) The task force shall examine the following issues:
        (A) The risk associated with the design, construction, 
    operation, and cost of each option for tritium production under 
    consideration.
        (B) The implications for nuclear weapons proliferation of each 
    such option.
        (C) The extent to which each such option contributes to the 
    capability of the Government to reliably meet the national defense 
    requirements of the United States.
        (D) Any other factors that the Secretary of Defense or the 
    Secretary of Energy considers appropriate.
    (3) The task force shall submit to the Secretary of Defense and the 
Secretary of Energy a report on the results of its examination. The 
Secretaries shall submit the report to Congress not later than June 30, 
1999.
    (b) Report on Test Program for Tritium Production at Watts Bar.--
(1) The Secretary of Energy shall submit to the congressional defense 
committees a report on the results of the test program at the Watts Bar 
Nuclear Station, Tennessee, after the test program is completed and the 
results of the program are evaluated. The report shall include--
        (A) data on the performance of the test rods, including any 
    leakage of tritium from the test rods;
        (B) the amount of tritium produced during the test;
        (C) the performance of the reactor during the test; and
        (D) any other technical findings resulting from the test.
    (2) The Secretary of Energy shall submit to the congressional 
defense committees an interim report on the test program not later than 
60 days after the test rods are removed from the Watts Bar reactor.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec.3201.Authorization.

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 1999, 
$17,500,000 for the operation of the Defense Nuclear Facilities Safety 
Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec.3301.Definitions.
Sec.3302.Authorized uses of stockpile funds.
Sec.3303.Authority to dispose of certain materials in National Defense 
          Stockpile.
Sec.3304.Use of stockpile funds for certain environmental remediation, 
          restoration, waste management, and compliance activities.

SEC. 3301. DEFINITIONS.

    In this title:
        (1) The term ``National Defense Stockpile'' means the stockpile 
    provided for in section 4 of the Strategic and Critical Materials 
    Stock Piling Act (50 U.S.C. 98c).
        (2) The term ``National Defense Stockpile Transaction Fund'' 
    means the fund in the Treasury of the United States established 
    under section 9(a) of the Strategic and Critical Materials Stock 
    Piling Act (50 U.S.C. 98h(a)).

SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 1999, the 
National Defense Stockpile Manager may obligate up to $83,000,000 of 
the funds in the National Defense Stockpile Transaction Fund for the 
authorized uses of such funds under section 9(b)(2) of the Strategic 
and Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)), 
including the disposal of hazardous materials that are environmentally 
sensitive.
    (b) Additional Obligations.--The National Defense Stockpile Manager 
may obligate amounts in excess of the amount specified in subsection 
(a) if the National Defense Stockpile Manager notifies Congress that 
extraordinary or emergency conditions necessitate the additional 
obligations. The National Defense Stockpile Manager may make the 
additional obligations described in the notification after the end of 
the 45-day period beginning on the date on which Congress receives the 
notification.
    (c) Limitations.--The authorities provided by this section shall be 
subject to such limitations as may be provided in appropriations Acts.

SEC. 3303. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN NATIONAL 
              DEFENSE STOCKPILE.

    (a) Disposal Required.--Subject to subsection (c), the President 
shall dispose of materials contained in the National Defense Stockpile 
and specified in the table in subsection (b) so as to result in 
receipts to the United States in the amount of--
        (1) $105,000,000 by the end of fiscal year 1999;
        (2) $460,000,000 by the end of fiscal year 2002;
        (3) $555,000,000 by the end of fiscal year 2003; and
        (4) $590,000,000 by the end of fiscal year 2005.
    (b) Limitation on Disposal Quantity.--The total quantities of 
materials authorized for disposal by the President under subsection (a) 
may not exceed the amounts set forth in the following table:
---------------------------------------------------------------------------


                     Authorized Stockpile Disposals
------------------------------------------------------------------------
   Material for disposal                              Quantity
------------------------------------------------------------------------
Bauxite Refractory........................  29,000 long calcined ton
Beryllium Metal...........................  100 short tons
Chromite Chemical.........................  34,000 short dry tons
Chromite Refractory.......................  159,000 short dry tons
Chromium Ferroalloy.......................  125,000 short tons
Columbium Carbide Powder..................  21,372 pounds of contained
                                             Columbium
Columbium Concentrates....................  1,733,454 pounds of
                                             contained Columbium
Columbium Ferro...........................  249,396 pounds of contained
                                             Columbium
Columbium Metal--Ingots...................  161,123 pounds of contained
                                             Columbium
Diamond, Stones...........................  3,000,000 carats
Germanium Metal...........................  28,198 kilograms
Graphite Natural Ceylon Lump..............  5,492 short tons
Indium....................................  14,248 troy ounces
Mica Muscovite Block......................  301,000 pounds
Mica Phlogopite Block.....................  130,745 pounds
Platinum..................................  439,887 troy ounces
Platinum--Iridium.........................  4,450 troy ounces
Platinum--Palladium.......................  750,000 troy ounces
Tantalum Carbide Powder...................  22,688 pounds of contained
                                             Tantalum
Tantalum Metal Ingots.....................  125,000 pounds of contained
                                             Tantalum
Tantalum Metal Powder.....................  125,000 pounds of contained
                                             Tantalum
Tantalum Minerals.........................  1,751,364 pounds of
                                             contained Tantalum
Tantalum Oxide............................  122,730 pounds of contained
                                             Tantalum
Tungsten Carbide Powder...................  2,032,896 pounds of
                                             contained Tungsten
Tungsten Ferro............................  2,024,143 pounds of
                                             contained Tungsten
Tungsten Metal Powder.....................  1,898,009 pounds of
                                             contained Tungsten
Tungsten Ores & Concentrates..............  76,358,235 pounds of
                                             contained Tungsten
------------------------------------------------------------------------


    (c) Minimization of Disruption and Loss.--The President may not 
dispose of materials under subsection (a) to the extent that the 
disposal will result in--
        (1) undue disruption of the usual markets of producers, 
    processors, and consumers of the materials proposed for disposal; 
    or
        (2) avoidable loss to the United States.
    (d) Treatment of Receipts.--Notwithstanding section 9 of the 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), 
funds received as a result of the disposal of materials authorized for 
disposal under subsection (a) shall be treated as follows:
        (1) The following amounts shall be transferred to the Secretary 
    of Health and Human Services, to be credited in the manner 
    determined by the Secretary to the Federal Hospital Insurance Trust 
    Fund and the Federal Supplementary Medical Insurance Trust Fund:
            (A) $3,000,000 during fiscal year 1999.
            (B) $22,000,000 during fiscal year 2000.
            (C) $28,000,000 during fiscal year 2001.
            (D) $31,000,000 during fiscal year 2002.
            (E) $8,000,000 during fiscal year 2003.
        (2) The balance of the funds received shall be deposited into 
    the general fund of the Treasury.
    (e) Relationship to Other Disposal Authority.--The disposal 
authority provided in subsection (a) is new disposal authority and is 
in addition to, and shall not affect, any other disposal authority 
provided by law regarding the materials specified in such subsection.
    (f) Authorization of Sale.--The authority provided by this section 
to dispose of materials contained in the National Defense Stockpile so 
as to result in receipts of $100,000,000 of the amount specified for 
fiscal year 1999 in subsection (a) by the end of that fiscal year shall 
be effective only to the extent provided in advance in appropriation 
Acts.

SEC. 3304. USE OF STOCKPILE FUNDS FOR CERTAIN ENVIRONMENTAL 
              REMEDIATION, RESTORATION, WASTE MANAGEMENT, AND 
              COMPLIANCE ACTIVITIES.

    Section 9(b)(2) of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98h(b)(2)) is amended--
        (1) by redesignating subparagraphs (J) and (K) as subparagraphs 
    (K) and (L), respectively; and
        (2) by inserting after subparagraph (I) the following new 
    subparagraph (J):
        ``(J) Performance of environmental remediation, restoration, 
    waste management, or compliance activities at locations of the 
    stockpile that are required under a Federal law or are undertaken 
    by the Government under an administrative decision or negotiated 
    agreement.''.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec.3401.Definitions.
Sec.3402.Authorization of appropriations.
Sec.3403.Disposal of Naval Petroleum Reserve Numbered 2.
Sec.3404.Disposal of Naval Petroleum Reserve Numbered 3.
Sec.3405.Disposal of Oil Shale Reserve Numbered 2.
Sec.3406.Administration.

SEC. 3401. DEFINITIONS.

    In this title:
        (1) The term ``naval petroleum reserves'' has the meaning given 
    the term in section 7420(2) of title 10, United States Code.
        (2) The term ``Naval Petroleum Reserve Numbered 2'' means the 
    naval petroleum reserve, commonly referred to as the Buena Vista 
    unit, that is located in Kern County, California, and was 
    established by Executive order of the President, dated December 13, 
    1912.
        (3) The term ``Naval Petroleum Reserve Numbered 3'' means the 
    naval petroleum reserve, commonly referred to as the Teapot Dome 
    unit, that is located in the State of Wyoming and was established 
    by Executive order of the President, dated April 30, 1915.
        (4) The term ``Oil Shale Reserve Numbered 2'' means the naval 
    petroleum reserve that is located in the State of Utah and was 
    established by Executive order of the President, dated December 6, 
    1916.
        (5) The term ``antitrust laws'' has the meaning given the term 
    in section 1(a) of the Clayton Act (15 U.S.C. 12(a)), except that 
    the term also includes--
            (A) the Act of June 19, 1936 (15 U.S.C. 13 et seq.; 
        commonly known as the Robinson-Patman Act); and
            (B) section 5 of the Federal Trade Commission Act (15 
        U.S.C. 45), to the extent that such section applies to unfair 
        methods of competition.
        (6) The term ``petroleum'' has the meaning given the term in 
    section 7420(3) of title 10, United States Code.

SEC. 3402. AUTHORIZATION OF APPROPRIATIONS.

    (a) Amount.--There are hereby authorized to be appropriated to the 
Secretary of Energy $22,500,000 for fiscal year 1999 for the purpose of 
carrying out--
        (1) activities under chapter 641 of title 10, United States 
    Code, relating to the naval petroleum reserves;
        (2) closeout activities at Naval Petroleum Reserve Numbered 1 
    upon the sale of that reserve under subtitle B of title XXXIV of 
    the National Defense Authorization Act for Fiscal Year 1996 (Public 
    Law 104-106; 10 U.S.C. 7420 note); and
        (3) activities under this title relating to the disposition of 
    Naval Petroleum Reserve Numbered 2, Naval Petroleum Reserve 
    Numbered 3, and Oil Shale Reserve Numbered 2.
    (b) Period of Availability.--Funds appropriated pursuant to the 
authorization of appropriations in subsection (a) shall remain 
available until expended.

SEC. 3403. DISPOSAL OF NAVAL PETROLEUM RESERVE NUM- BERED 2.

    (a) Disposal of Ford City Lots Authorized.--(1) Subject to section 
3406, the Secretary of Energy may dispose of the portion of Naval 
Petroleum Reserve Numbered 2 that is located within the town lots in 
Ford City, California, which are identified as ``Drill Sites Numbered 
3A, 4, 6, 9A, 20, 22, 24, and 26'' and described in the document 
entitled ``Ford City Drill Site Locations--NPR-2,'' and accompanying 
maps on file in the office of the Deputy Assistant Secretary for Naval 
Petroleum and Oil Shale Reserves of the Department of Energy.
    (2) The Secretary of Energy shall carry out the disposal authorized 
by paragraph (1) by competitive sale or lease consistent with 
commercial practices, by transfer to another Federal agency or a public 
or private entity, or by such other means as the Secretary considers 
appropriate. Any competitive sale or lease under this subsection shall 
provide for the disposal of all right, title, and interest of the 
United States in the property to be conveyed. The Secretary of Energy 
may use the authority provided by the Act of June 14, 1926 (43 U.S.C. 
869 et seq.; commonly known as the Recreation and Public Purposes Act), 
in the same manner and to the same extent as the Secretary of the 
Interior, to dispose of the portion of Naval Petroleum Reserve Numbered 
2 described in paragraph (1).
    (3) Section 2696(a) of title 10, United States Code, regarding the 
screening of real property for further Federal use before disposal, 
shall apply to the disposal authorized by paragraph (1).
    (b) Transfer of Administrative Jurisdiction Authorized.--(1) The 
Secretary of Energy shall continue to administer Naval Petroleum 
Reserve Numbered 2 (other than the portion of the reserve authorized 
for disposal under subsection (a)) in accordance with chapter 641 of 
title 10, United States Code, until such time as the Secretary makes a 
determination to abandon oil and gas operations in Naval Petroleum 
Reserve Numbered 2 in accordance with commercial operating practices.
    (2) After oil and gas operations are abandoned in Naval Petroleum 
Reserve Numbered 2, the Secretary of Energy may transfer to the 
Secretary of the Interior administrative jurisdiction and control over 
all public domain lands included within Naval Petroleum Reserve 
Numbered 2 (other than the portion of the reserve authorized for 
disposal under subsection (a)) for management in accordance with the 
general land laws.
    (c) Relationship to Antitrust Laws.--This section does not modify, 
impair, or supersede the operation of the antitrust laws.

SEC. 3404. DISPOSAL OF NAVAL PETROLEUM RESERVE NUM- BERED 3.

    (a) Administration Pending Termination of Operations.--The 
Secretary of Energy shall continue to administer Naval Petroleum 
Reserve Numbered 3 in accordance with chapter 641 of title 10, United 
States Code, until such time as the Secretary makes a determination to 
abandon oil and gas operations in Naval Petroleum Reserve Numbered 3 in 
accordance with commercial operating practices.
    (b) Disposal Authorized.--After oil and gas operations are 
abandoned in Naval Petroleum Reserve Numbered 3, the Secretary of 
Energy may dispose of the reserve as provided in this subsection. 
Subject to section 3406, the Secretary shall carry out any such 
disposal of the reserve by sale or lease or by transfer to another 
Federal agency. Any sale or lease shall provide for the disposal of all 
right, title, and interest of the United States in the property to be 
conveyed and shall be conducted in accordance with competitive 
procedures consistent with commercial practices, as established by the 
Secretary.
    (c) Relationship to Antitrust Laws.--This section does not modify, 
impair, or supersede the operation of the antitrust laws.

SEC. 3405. DISPOSAL OF OIL SHALE RESERVE NUMBERED 2.

    (a) Transfer of Administrative Jurisdiction Authorized.--Subject to 
section 3406, the Secretary of Energy may transfer to the Secretary of 
the Interior administrative jurisdiction and control over all public 
domain lands included within Oil Shale Reserve Numbered 2 for 
management in accordance with the general land laws.
    (b) Relationship to Indian Reservation.--The transfer of 
administrative jurisdiction under this section does not affect any 
interest, right, or obligation respecting the Uintah and Ouray Indian 
Reservation located in Oil Shale Reserve Numbered 2.

SEC. 3406. ADMINISTRATION.

    (a) Protection of Existing Rights.--At the discretion of the 
Secretary of Energy, the disposal of property under this title shall be 
subject to any contract related to the United States ownership interest 
in the property in effect at the time of disposal, including any lease 
agreement pertaining to the United States interest in Naval Petroleum 
Reserve Numbered 2.
    (b) Deposit of Receipts.--Notwithstanding any other law, all monies 
received by the United States from the disposal of property under this 
title, including any monies received from a lease entered into under 
this title, shall be deposited in the general fund of the Treasury.
    (c) Treatment of Royalties.--Any petroleum accruing to the United 
States as royalty from any lease of lands transferred under this title 
shall be delivered to the United States, or shall be paid for in money, 
as the Secretary of the Interior may elect.
    (d) Elements of Lease.--A lease under this title may provide for 
the exploration for, and development and production of, petroleum, 
other than petroleum in the form of oil shale.
    (e) Waiver of Requirements Regarding Consultation and Approval.--
Section 7431 of title 10, United States Code, shall not apply to the 
disposal of property under this title.

                  TITLE XXXV--PANAMA CANAL COMMISSION

Sec.3501.Short title; references to Panama Canal Act of 1979.
Sec.3502.Authorization of expenditures.
Sec.3503.Purchase of vehicles.
Sec.3504.Expenditures only in accordance with treaties.
Sec.3505.Donations to the Commission.
Sec.3506.Agreements for United States to provide post-transfer 
          administrative services for certain employee benefits.
Sec.3507.Sunset of United States overseas benefits just before transfer.
Sec.3508.Central examining office.
Sec.3509.Liability for vessel accidents.
Sec.3510.Panama Canal Board of Contract Appeals.
Sec.3511.Restatement of requirement that Secretary of Defense designee 
          on Panama Canal Commission supervisory board be a current 
          officer of the Department of Defense.
Sec.3512.Technical amendments.

SEC. 3501. SHORT TITLE; REFERENCES TO PANAMA CANAL ACT OF 1979.

    (a) Short Title.--This title may be cited as the ``Panama Canal 
Commission Authorization Act for Fiscal Year 1999''.
    (b) References to Panama Canal Act of 1979.--Except as otherwise 
expressly provided, whenever in this title an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section or 
other provision of the Panama Canal Act of 1979 (22 U.S.C. 3601 et 
seq.).

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

    (a) In General.--Subject to subsection (b), the Panama Canal 
Commission is authorized to use amounts in the Panama Canal Revolving 
Fund to make such expenditures within the limits of funds and borrowing 
authority available to it in accordance with law, and to make such 
contracts and commitments, as may be necessary under the Panama Canal 
Act of 1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance, 
improvement, and administration of the Panama Canal for fiscal year 
1999.
    (b) Limitations.--For fiscal year 1999, the Panama Canal Commission 
may expend from funds in the Panama Canal Revolving Fund not more than 
$100,000 for official reception and representation expenses, of which--
        (1) not more than $28,000 may be used for official reception 
    and representation expenses of the Supervisory Board of the 
    Commission;
        (2) not more than $14,000 may be used for official reception 
    and representation expenses of the Secretary of the Commission; and
        (3) not more than $58,000 may be used for official reception 
    and representation expenses of the Administrator of the Commission.

SEC. 3503. PURCHASE OF VEHICLES.

    Notwithstanding any other provision of law, the funds available to 
the Commission shall be available for the purchase and transportation 
to the Republic of Panama of passenger motor vehicles, the purchase 
price of which shall not exceed $23,000 per vehicle.

SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

    Expenditures authorized under this title may be made only in 
accordance with the Panama Canal Treaties of 1977 and any law of the 
United States implementing those treaties.

SEC. 3505. DONATIONS TO THE COMMISSION.

    Section 1102b (22 U.S.C. 3612b) is amended by adding at the end the 
following new subsection:
    ``(f)(1) The Commission may seek and accept donations of funds, 
property, and services from individuals, foundations, corporations, and 
other private and public entities for the purpose of carrying out its 
promotional activities.
    ``(2) The Commission shall establish written guidelines setting 
forth the criteria to be used in determining whether the acceptance of 
funds, property, or services authorized by paragraph (1) would reflect 
unfavorably upon the ability of the Commission (or any employee of the 
Commission) to carry out its responsibilities or official duties in a 
fair and objective manner or would compromise the integrity or the 
appearance of the integrity of its programs or of any official in those 
programs.''.

SEC. 3506. AGREEMENTS FOR UNITED STATES TO PROVIDE POST-TRANSFER 
              ADMINISTRATIVE SERVICES FOR CERTAIN EMPLOYEE BENEFITS.

    Section 1110 (22 U.S.C. 3620) is amended by adding at the end the 
following new subsection:
    ``(c)(1) The Secretary of State may enter into one or more 
agreements to provide for the United States to furnish administrative 
services relating to the benefits described in paragraph (2) after 
December 31, 1999, and to establish appropriate procedures for 
providing advance funding for the services.
    ``(2) The benefits referred to in paragraph (1) are the following:
        ``(A) Pension, disability, and medical benefits provided by the 
    Panama Canal Commission pursuant to section 1245.
        ``(B) Compensation for work injuries covered by chapter 81 of 
    title 5, United States Code.''.

SEC. 3507. SUNSET OF UNITED STATES OVERSEAS BENEFITS JUST BEFORE 
              TRANSFER.

    (a) Repeals.--Effective 11:59 p.m. (Eastern Standard Time), 
December 30, 1999, the following provisions are repealed and any right 
or condition of employment provided for in, or arising from, those 
provisions is terminated: sections 1206 (22 U.S.C. 3646), 1207 (22 
U.S.C. 3647), 1217(a) (22 U.S.C. 3657(a)), and 1224(11) (22 U.S.C. 
3664(11)), subparagraphs (A), (B), (F), (G), and (H) of section 
1231(a)(2) (22 U.S.C. 3671(a)(2)) and section 1321(e) (22 U.S.C. 
3731(e)).
    (b) Savings Provision for Basic Pay.--Notwithstanding subsection 
(a), benefits based on basic pay, as listed in paragraphs (1), (2), 
(3), (5), and (6) of section 1218 of the Panama Canal Act of 1979, 
shall be paid as if sections 1217(a) and 1231(a)(2)(A) and (B) of that 
Act had been repealed effective 12:00 noon, December 31, 1999. The 
exception under the preceding sentence shall not apply to any pay for 
hours of work performed on December 31, 1999.
    (c) Nonapplicability to Agencies in Panama Other Than Panama Canal 
Commission.--Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by 
striking out ``the Panama Canal Transition Facilitation Act of 1997'' 
and inserting in lieu thereof ``the Panama Canal Transition 
Facilitation Act of 1997 (subtitle B of title XXXV of Public Law 105-
85; 110 Stat. 2062), or the Panama Canal Commission Authorization Act 
for Fiscal Year 1999''.

SEC. 3508. CENTRAL EXAMINING OFFICE.

    (a) Repeal.--Section 1223 (22 U.S.C. 3663) is repealed.
    (b) Clerical Amendment.--The table of contents in section 1 is 
amended by striking out the item relating to section 1223.

SEC. 3509. LIABILITY FOR VESSEL ACCIDENTS.

    (a) Commission Liability Subject to Claimant Insurance.--(1) 
Section 1411(a) (22 U.S.C. 3771(a)) is amended by inserting ``to 
section 1419(b) of this Act and'' after ``Subject'' in the first 
sentence.
    (2) Section 1412 (22 U.S.C. 3772) is amended by striking out ``The 
Commission'' in the first sentence and inserting in lieu thereof 
``Subject to section 1419(b) of this Act, the Commission''.
    (3) Section 1416 (22 U.S.C. 3776) is amended by striking out ``A 
claimant'' in the first sentence and inserting in lieu thereof 
``Subject to section 1419(b) of this Act, a claimant''.
    (b) Authority To Require Claimants To Be Covered by Insurance.--
Section 1419 (22 U.S.C. 3779) is amended--
        (1) by inserting ``(a)'' before ``The Commission''; and
        (2) by adding at the end the following:
    ``(b)(1) The Commission may by regulation require as a condition of 
transit through the Panama Canal or presence in the Panama Canal or 
waters adjacent thereto that any potential claimant under section 1411 
or 1412 of this Act be covered by insurance against the types of 
injuries described in those sections. The amount of insurance so 
required shall be specified in those regulations, but may not exceed 
$1,000,000.
    ``(2) In a claim under section 1411 or 1412 of this Act for which 
the Commission has required insurance under this subsection, the 
Commission's liability shall be limited to the amount of damages in 
excess of the amount of insurance required by the Commission.
    ``(3) In regulations under this subsection, the Commission may 
prohibit consideration or payment by it of claims presented by or on 
behalf of an insurer or subrogee of a claimant in a case for which the 
Commission has required insurance under this subsection.''.

SEC. 3510. PANAMA CANAL BOARD OF CONTRACT APPEALS.

    (a) Establishment and Pay of Board.--Section 3102(a) (22 U.S.C. 
3862(a)) is amended--
        (1) in paragraph (1), by striking out ``shall'' in the first 
    sentence and inserting in lieu thereof ``may''; and
        (2) by adding at the end the following new paragraph:
    ``(3) Compensation for members of the Board of Contract Appeals 
shall be established by the Commission's supervisory board. The annual 
compensation established for members may not exceed the rate of basic 
pay established for level IV of the Executive Schedule under section 
5315 of title 5, United States Code. The compensation of a member may 
not be reduced during the member's term of office from the level 
established at the time of the appointment of the member.''.
    (b) Deadline for Commencement of Board.--Section 3102(e) (22 U.S.C. 
3862(e)) is amended by striking out ``, but not later than January 1, 
1999''.

SEC. 3511. RESTATEMENT OF REQUIREMENT THAT SECRETARY OF DEFENSE 
              DESIGNEE ON PANAMA CANAL COMMISSION SUPERVISORY BOARD BE 
              A CURRENT OFFICER OF THE DEPARTMENT OF DEFENSE.

    (a) Authority.--Section 1102(a) (22 U.S.C. 3612(a)) is amended--
        (1) by striking out the first sentence and inserting in lieu 
    thereof the following: ``The Commission shall be supervised by a 
    Board composed of nine members, one of whom shall be an officer of 
    the Department of Defense. The officer of the Department of Defense 
    who shall serve on the Board shall be designated by the Secretary 
    of Defense and may continue to serve on the Board only while 
    continuing to serve as an officer of the Department of Defense.''; 
    and
        (2) in the last sentence, by striking out ``Secretary of 
    Defense or a designee of the Secretary of Defense'' and inserting 
    in lieu thereof ``the officer of the Department of Defense 
    designated by the Secretary of Defense to be a member of the 
    Board''.
    (b) Repeal of Superseded Provision.--Section 302 of Public Law 105-
18 (111 Stat. 168) is repealed.

SEC. 3512. TECHNICAL AMENDMENTS.

    (a) Panama Canal Act of 1979.--The Panama Canal Act of 1979 is 
amended as follows:
        (1) Section 1202(c) (22 U.S.C. 3642(c)) is amended--
            (A) by striking out ``the day before the date of the 
        enactment of the Panama Canal Transition Facilitation Act of 
        1997'' and inserting in lieu thereof ``November 17, 1997,'';
            (B) by striking out ``on or after that date''; and
            (C) by striking out ``the day before the date of 
        enactment'' and inserting in lieu thereof ``that date''.
        (2) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by 
    inserting ``the'' after ``by the head of''.
        (3) Section 1313 (22 U.S.C. 3723) is amended by striking out 
    ``subsection (d)'' in each of subsections (a), (b), and (d) and 
    inserting in lieu thereof ``subsection (c)''.
        (4) Sections 1411(a) and 1412 (22 U.S.C. 3771(a), 3772) are 
    amended by striking out ``the date of the enactment of the Panama 
    Canal Transition Facilitation Act of 1997'' and inserting in lieu 
    thereof ``by November 18, 1998''.
        (5) Section 1416 (22 U.S.C. 3776) is amended by striking out 
    ``the date of the enactment of the Panama Canal Transition 
    Facilitation Act of 1997'' and inserting in lieu thereof ``by May 
    17, 1998''.
    (b) Public Law 104-201.--Effective as of September 23, 1996, and as 
if included therein as enacted, section 3548(b)(3) of the Panama Canal 
Act Amendments of 1996 (subtitle B of title XXXV of Public Law 104-201; 
110 Stat. 2869) is amended by striking out ``section'' in both items of 
quoted matter and inserting in lieu thereof ``sections''.

                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec.3601.Authorization of appropriations for fiscal year 1999.
Sec.3602.Authority to convey National Defense Reserve Fleet vessel.
Sec.3603.Authority to convey certain National Defense Reserve Fleet 
          vessels.
Sec.3604.Clearinghouse for maritime information.
Sec.3605.Conveyance of NDRF vessel ex-USS LORAIN COUNTY.

SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1999.

    Funds are hereby authorized to be appropriated for fiscal year 
1999, to be available without fiscal year limitation if so provided in 
appropriations Act, for the use of the Department of Transportation for 
the Maritime Administration as follows:
        (1) For expenses necessary for operations and training 
    activities, $70,553,000.
        (2) For expenses under the loan guarantee program authorized by 
    title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et 
    seq.), $20,000,000 of which--
            (A) $16,000,000 is for the cost (as defined in section 
        502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a(5))) of loan guarantees under the program; and
            (B) $4,000,000 is for administrative expenses related to 
        loan guarantee commitments under the program.

SEC. 3602. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET VESSEL.

    (a) Authority To Convey.--The Secretary of Transportation may 
convey all right, title, and interest of the United States Government 
in and to the vessel M/V BAYAMON (United States official number 530007) 
to a purchaser for use as a self-propelled floating trade exposition to 
showcase United States technology, industrial products, and services.
    (b) Terms of Conveyance.--
        (1) Delivery of vessel.--In carrying out subsection (a), the 
    Secretary shall deliver the vessel--
            (A) at the place where the vessel is located on the date of 
        conveyance;
            (B) in its condition on that date; and
            (C) at no cost to the United States Government.
        (2) Required conditions.--The Secretary may not convey a vessel 
    under this section unless--
            (A) competitive procedures are used for sales under this 
        section;
            (B) the vessel is sold for not less than the fair market 
        value of the vessel in the United States, as determined by the 
        Secretary of Transportation;
            (C) the recipient agrees that any repair, except for 
        emergency repairs, restoration, or reconstruction work for the 
        vessel will be performed in the United States;
            (D) the recipient agrees to hold the Government harmless 
        for any claims arising from exposure to hazardous material, 
        including asbestos and polychlorinated biphenyls, after the 
        conveyance of the vessel, except for claims arising before the 
        date of the conveyance or from use of the vessel by the 
        Government after that date; and
            (E) the recipient provides sufficient evidence to the 
        Secretary that it has adequate financial resources in the form 
        of cash, liquid assets, or a written loan commitment to 
        complete the reconstruction of the vessel.
        (3) Additional terms.--The Secretary may require such 
    additional terms in connection with the conveyance authorized by 
    this section as the Secretary considers appropriate.
    (c) Proceeds.--Any amounts received by the United States as 
proceeds from the sale of the M/V BAYAMON shall be deposited in the 
Vessel Operations Revolving Fund established by section 801 of the Act 
of June 2, 1951 (65 Stat. 59; 46 U.S.C. App. 1241a) and shall be 
available and expended in accordance with section 6(a) of the National 
Maritime Heritage Act (16 U.S.C. App. 5405(a)).

SEC. 3603. AUTHORITY TO CONVEY CERTAIN NATIONAL DEFENSE RESERVE FLEET 
              VESSELS.

    (a) Authority To Convey.--The Secretary of Transportation may 
convey all right, title, and interest of the United States Government 
in and to the vessels BENJAMIN ISHERWOOD (TAO-191) and HENRY ECKFORD 
(TAO-192) to a purchaser for the limited purpose of reconstruction of 
those vessels for sale or charter to a North Atlantic Treaty 
Organization country for full use as an oiler.
    (b) Terms of Conveyance.--
        (1) Delivery of vessel.--In carrying out subsection (a), the 
    Secretary shall deliver the vessel--
            (A) at the place where the vessel is located on the date of 
        the conveyance;
            (B) in its condition on that date; and
            (C) at no cost to the United States Government.
        (2) Required conditions.--The Secretary may not convey a vessel 
    under this section unless--
            (A) competitive procedures are used for sales under this 
        section;
            (B) the vessel is sold for not less than the fair market 
        value of the vessel in the United States, as determined by the 
        Secretary of Transportation;
            (C) the recipient agrees that any repair, except for 
        emergency repairs, restoration, or reconstruction work for the 
        vessel will be performed in the United States;
            (D) the recipient agrees to hold the Government harmless 
        for any claims arising from defects in the vessel or from 
        exposure to hazardous material, including asbestos and 
        polychlorinated biphenyls, after the conveyance of the vessel, 
        except for claims arising before the date of the conveyance or 
        from use of the vessel by the Government after that date;
            (E) the recipient provides sufficient evidence to the 
        Secretary that it has adequate financial resources in the form 
        of cash, liquid assets, or a written loan commitment to 
        complete the reconstruction of the vessel; and
            (F) with respect to the vessel, the recipient remains 
        subject to all laws and regulations governing the export of 
        military items, including the requirements administered by the 
        Department of State regarding export licenses and certification 
        of nontransfer end use.
        (3) Additional terms.--The Secretary may require such 
    additional terms in connection with a conveyance authorized by this 
    section as the Secretary considers appropriate.
    (c) Proceeds.--Any amounts received by the United States as 
proceeds from the sale of a vessel under this section shall be 
deposited in the Vessel Operations Revolving Fund established by 
section 801 of the Act of June 2, 1951 (65 Stat. 59; 46 U.S.C. App. 
1241a) and shall be available and expended in accordance with section 
6(a) of the National Maritime Heritage Act (16 U.S.C. App. 5405(a)).

SEC. 3604. CLEARINGHOUSE FOR MARITIME INFORMATION.

    Of the amount authorized to be appropriated pursuant to section 
3601(1) for operations of the Maritime Administration, $75,000 may be 
available for the establishment at a State Maritime Academy of a 
clearinghouse for maritime information that makes that information 
publicly available, including by use of the Internet.

SEC. 3605. CONVEYANCE OF NDRF VESSEL EX-USS LORAIN COUNTY.

    (a) Authority To Convey.--The Secretary of Transportation may 
convey all right, title, and interest of the Federal Government in and 
to the vessel ex-USS LORAIN COUNTY (LST-1177) to the Ohio War Memorial, 
Inc., located in Sandusky, Ohio (in this section referred to as the 
``recipient''), for use as a memorial to Ohio veterans.
    (b) Terms of Conveyance.--
        (1) Delivery of vessel.--In carrying out subsection (a), the 
    Secretary shall deliver the vessel--
            (A) at the place where the vessel is located on the date of 
        conveyance;
            (B) in its condition on that date; and
            (C) at no cost to the Federal Government.
        (2) Required conditions.--The Secretary may not convey a vessel 
    under this section unless--
            (A) the recipient agrees to hold the Government harmless 
        for any claims arising from exposure to hazardous material, 
        including asbestos and polychlorinated biphenyls, after 
        conveyance of the vessel, except for claims arising before the 
        date of the conveyance or from use of the vessel by the 
        Government after that date; and
            (B) the recipient has available, for use to restore the 
        vessel, in the form of cash, liquid assets, or a written loan 
        commitment, financial resources of at least $100,000.
        (3) Additional terms.--The Secretary may require such 
    additional terms in connection with the conveyance authorized by 
    this section as the Secretary considers appropriate.
    (c) Other Unneeded Equipment.--The Secretary may convey to the 
recipient of the vessel conveyed under this section any unneeded 
equipment from other vessels in the National Defense Reserve Fleet, for 
use to restore the vessel conveyed under this section to museum 
quality.

 TITLE XXXVII--INCREASED MONITORING OF PRODUCTS MADE WITH FORCED LABOR

Sec.3701.Authorization for additional Customs personnel to monitor the 
          importation of products made with forced labor.
Sec.3702.Reporting requirement on forced labor products destined for the 
          United States market.
Sec.3703.Renegotiating memoranda of understanding on forced labor.

SEC. 3701. AUTHORIZATION FOR ADDITIONAL CUSTOMS PERSONNEL TO MONITOR 
              THE IMPORTATION OF PRODUCTS MADE WITH FORCED LABOR.

    There are authorized to be appropriated for monitoring by the 
United States Customs Service of the importation into the United States 
of products made with forced labor, the importation of which violates 
section 307 of the Tariff Act of 1930 or section 1761 of title 18, 
United States Code, $2,000,000 for fiscal year 1999.

SEC. 3702. REPORTING REQUIREMENT ON FORCED LABOR PRODUCTS DESTINED FOR 
              THE UNITED STATES MARKET.

    (a) Report to Congress.--Not later than 1 year after the date of 
the enactment of this Act, the Commissioner of Customs shall prepare 
and transmit to the Congress a report on products made with forced 
labor that are destined for the United States market.
    (b) Contents of Report.--The report under subsection (a) shall 
include information concerning the following:
        (1) The extent of the use of forced labor in manufacturing 
    products destined for the United States market.
        (2) The volume of products made with forced labor, destined for 
    the United States market, that is in violation of section 307 of 
    the Tariff Act of 1930 or section 1761 of title 18, United States 
    Code, and is seized by the United States Customs Service.
        (3) The progress of the United States Customs Service in 
    identifying and interdicting products made with forced labor that 
    are destined for the United States market.

SEC. 3703. RENEGOTIATING MEMORANDA OF UNDERSTANDING ON FORCED LABOR.

    It is the sense of Congress that the President should determine 
whether any country with which the United States has a memorandum of 
understanding with respect to reciprocal trade which involves goods 
made with forced labor is frustrating implementation of the memorandum. 
Should an affirmative determination be made, the President should 
immediately commence negotiations to replace the current memorandum of 
understanding with one providing for effective procedures for the 
monitoring of forced labor, including improved procedures to request 
investigations by international monitors of worksites suspected to be 
in violation of any such memorandum.

             TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS

Sec.3801.Short title.
Sec.3802.Definitions.
Sec.3803.Re-establishment of initiative on automotive parts sales to 
          Japan.
Sec.3804.Establishment of Special Advisory Committee on automotive parts 
          sales in Japanese and other Asian markets.
Sec.3805.Expiration date.

SEC. 3801. SHORT TITLE.

    This title may be cited as the ``Fair Trade in Automotive Parts Act 
of 1998''.

SEC. 3802. DEFINITIONS.

    In this title:
        (1) Japanese markets.--The term ``Japanese markets'' refers to 
    markets, including markets in the United States and Japan, where 
    automotive parts and accessories, both original equipment and 
    aftermarket, are purchased for use in the manufacture or repair of 
    Japanese automobiles.
        (2) Japanese and other asian markets.--The term ``Japanese and 
    other Asian markets'' refers to markets, including markets in the 
    United States, Japan, and other Asian countries, where automotive 
    parts and accessories, both original equipment and aftermarket, are 
    purchased for use in the manufacture or repair of Japanese, United 
    States, or other Asian automobiles.

SEC. 3803. RE-ESTABLISHMENT OF INITIATIVE ON AUTOMOTIVE PARTS SALES TO 
              JAPAN.

    (a) In General.--The Secretary of Commerce shall re-establish the 
initiative to increase the sale of United States-made automotive parts 
and accessories to Japanese markets.
    (b) Functions.--In carrying out this section, the Secretary shall--
        (1) foster increased access for United States-made automotive 
    parts and accessories to Japanese companies, including specific 
    consultations on access to Japanese markets;
        (2) facilitate the exchange of information between United 
    States automotive parts manufacturers and the Japanese automobile 
    industry;
        (3) collect data and market information on the Japanese 
    automotive industry regarding needs, trends, and procurement 
    practices, including the types, volume, and frequency of parts 
    sales to Japanese automobile manufacturers;
        (4) establish contacts with Japanese automobile manufacturers 
    in order to facilitate contact between United States automotive 
    parts manufacturers and Japanese automobile manufacturers;
        (5) report on and attempt to resolve disputes, policies, or 
    practices, whether public or private, that result in barriers to 
    increased commerce between United States automotive parts 
    manufacturers and Japanese automobile manufacturers;
        (6) take actions to initiate periodic consultations with 
    officials of the Government of Japan regarding sales of United 
    States-made automotive parts in Japanese markets; and
        (7) transmit to Congress the annual report prepared by the 
    Special Advisory Committee under section 3804(c)(5).

SEC. 3804. ESTABLISHMENT OF SPECIAL ADVISORY COMMITTEE ON AUTOMOTIVE 
              PARTS SALES IN JAPANESE AND OTHER ASIAN MARKETS.

    (a) In General.--The Secretary of Commerce shall seek the advice of 
the United States automotive parts industry in carrying out this title.
    (b) Establishment of Committee.--The Secretary of Commerce shall 
establish a Special Advisory Committee for purposes of carrying out 
this title.
    (c) Functions.--The Special Advisory Committee established under 
subsection (b) shall--
        (1) report to the Secretary of Commerce on barriers to sales of 
    United States-made automotive parts and accessories in Japanese and 
    other Asian markets;
        (2) review and consider data collected on sales of United 
    States-made automotive parts and accessories in Japanese and other 
    Asian markets;
        (3) advise the Secretary of Commerce during consultations with 
    other governments on issues concerning sales of United States-made 
    automotive parts in Japanese and other Asian markets;
        (4) assist in establishing priorities for the initiative 
    established under section 3803, and otherwise provide assistance 
    and direction to the Secretary of Commerce in carrying out the 
    intent of that section; and
        (5) assist the Secretary in reporting to Congress by submitting 
    an annual written report to the Secretary on the sale of United 
    States-made automotive parts in Japanese and other Asian markets, 
    as well as any other issues with respect to which the Committee 
    provides advice pursuant to this title.
    (d) Authority.--The Secretary of Commerce shall draw on existing 
budget authority in carrying out this title.

SEC. 3805. EXPIRATION DATE.

    The authority under this title shall expire on December 31, 2003.

                      TITLE XXXIX--RADIO FREE ASIA

Sec.3901.Short title.
Sec.3902.Authorization of appropriations for increased funding for Radio 
          Free Asia and Voice of America broadcasting to China.
Sec.3903.Reporting requirement.

SEC. 3901. SHORT TITLE.

    This title may be cited as the ``Radio Free Asia Act of 1998''.

SEC. 3902. AUTHORIZATION OF APPROPRIATIONS FOR INCREASED FUNDING FOR 
              RADIO FREE ASIA AND VOICE OF AMERICA BROADCASTING TO 
              CHINA.

    (a) Authorization of Appropriations for Radio Free Asia.--
        (1) Authorization of appropriations.--There are authorized to 
    be appropriated for ``Radio Free Asia'' $22,000,000 for fiscal year 
    1999.
        (2) Sense of congress.--It is the sense of Congress that a 
    significant amount of the funds under paragraph (1) should be 
    directed toward broadcasting to China and Tibet in the appropriate 
    languages and dialects.
    (b) Authorization of Appropriations for International Broadcasting 
to China.--In addition to such sums as are otherwise authorized to be 
appropriated to the United States Information Agency for 
``International Broadcasting Activities'' for fiscal year 1999, there 
are authorized to be appropriated for ``International Broadcasting 
Activities'' $3,000,000 for fiscal year 1999, which shall be available 
only for enhanced Voice of America broadcasting to China.
    (c) Authorization of Appropriations for Radio Construction.--In 
addition to such sums as are otherwise authorized to be appropriated 
for ``Radio Construction'' for fiscal year 1999, there are authorized 
to be appropriated for ``Radio Construction'' $2,000,000 for fiscal 
year 1999, which shall be available only for construction in support of 
enhanced broadcasting to China, including the timely augmentation of 
transmitters at Tinian, the Commonwealth of the Northern Mariana 
Islands.

SEC. 3903. REPORTING REQUIREMENT.

    (a) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Broadcasting Board of Governors shall prepare and 
submit to the appropriate congressional committees an assessment of the 
board's efforts to increase broadcasting by Radio Free Asia and Voice 
of America to China and Tibet. This report shall include an analysis of 
Chinese government control of the media, the ability of independent 
journalists and news organizations to operate in China, and the results 
of any research conducted to quantify listenership.
    (b) Definition.--As used in this section, the term ``appropriate 
congressional committees'' means--
        (1) the Committee on Foreign Relations and the Committee on 
    Appropriations of the Senate; and
        (2) the Committee on International Relations and the Committee 
    on Appropriations of the House of Representatives.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.