[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

Subtitle B--Army Programs

Subtitle C--Navy Programs

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

Subtitle C--Ballistic Missile Defense

Subtitle D--Other Matters

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

Subtitle C--Environmental Provisions

Subtitle D--Information Technology Issues

Subtitle E--Defense Infrastructure Support Improvement

Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

Subtitle G--Other Matters

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

Subtitle B--Reserve Forces

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''.
------------------------------------------------------------------------

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

Subtitle D--Decorations, Awards, and Commendations

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

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..................

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

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

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

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

Subtitle B--Bonuses and Special and Incentive Pays

Subtitle C--Travel and Transportation Allowances

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

Subtitle E--Other Matters

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

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

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

Subtitle E--Other Matters

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

Subtitle B--Other 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.

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

Subtitle B--Department of Defense Financial Management

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

Subtitle B--Naval Vessels and Shipyards

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

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

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

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.

(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

Subtitle C--Matters Relating to NATO and Europe

Subtitle D--Other Matters

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.

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

Subtitle B--Satellite Export Controls

Subtitle C--Other Export Control Matters

Subtitle D--Counterproliferation Matters

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.

(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:
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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.

(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.

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.

(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.

TITLE XXIV--DEFENSE AGENCIES

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

(a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 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.

(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

Subtitle B--Real Property and Facilities Administration

Subtitle C--Defense Base Closure and Realignment

Subtitle D--Land Conveyances

Part I--Army Conveyances

Part II--Navy Conveyances

Part III--Air Force Conveyances

Subtitle E--Other Matters

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.

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

Subtitle B--Recurring General Provisions

Subtitle C--Program Authorizations, Restrictions, and Limitations

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.

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.

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.

(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.

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.

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.