[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3616 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 385

105th CONGRESS

  2d Session

                               H. R. 3616

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                              May 22, 1998

            Received, read twice and placed on the calendar
                                                       Calendar No. 385
105th CONGRESS
  2d Session
                                H. R. 3616


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 1998

            Received, read twice and placed on the calendar

_______________________________________________________________________

                                 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.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 1999''.

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

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

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

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

Sec. 111. Multiyear procurement authority for Longbow Hellfire missile 
                            program.
Sec. 112. M1A2 System Enhancement Program Step 1 Program.
                       Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for the Department of the 
                            Navy.
                       Subtitle D--Other Matters

Sec. 141. 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. Science and technology functions of the Department of 
                            Defense.
Sec. 215. Next generation internet program.
                 Subtitle C--Ballistic Missile Defense

Sec. 231. National Missile Defense policy.
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. Limitation on funding for counterproliferation support.
Sec. 235. Ballistic Missile Defense program elements.
Sec. 236. Restructuring of theater high-altitude area defense system 
                            acquisition strategy.
                  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.
Sec. 305. Refurbishment of M1-A1 tanks.
Sec. 306. Operation of prepositioned fleet, National Training Center, 
                            Fort Irwin, California.
Sec. 307. Relocation of USS WISCONSIN.
Sec. 308. Fisher House Trust Funds.
               Subtitle B--Information Technology Issues

Sec. 311. Additional information technology responsibilities of Chief 
                            Information Officers.
Sec. 312. Defense-wide electronic mall system for supply purchases.
Sec. 313. Protection of funding provided for certain information 
                            technology and national security programs.
Sec. 314. Priority funding to ensure year 2000 compliance of mission 
                            critical information technology and 
                            national security systems.
Sec. 315. Evaluation of year 2000 compliance as part of training 
                            exercises programs.
                  Subtitle C--Environmental Provisions

Sec. 321. Authorization to pay negotiated settlement for environmental 
                            cleanup at former Department of Defense 
                            sites in Canada.
Sec. 322. Removal of underground storage tanks.
         Subtitle D--Defense Infrastructure Support Improvement

Sec. 331. Reporting and study requirements before change of commercial 
                            and industrial type functions to contractor 
                            performance.
Sec. 332. Clarification of requirement to maintain Government-owned and 
                            Government-operated core logistics 
                            capability.
Sec. 333. Oversight of development and implementation of automated 
                            identification technology.
Sec. 334. Conditions on expansion of functions performed under prime 
                            vendor contracts.
Sec. 335. Clarification of definition of depot-level maintenance and 
                            repair.
Sec. 336. Clarification of commercial item exception to requirements 
                            regarding core logistics capabilities.
Sec. 337. Development of plan for establishment of core logistics 
                            capabilities for maintenance and repair of 
                            C-17 aircraft.
Sec. 338. Contractor-operated civil engineering supply stores program.
Sec. 339. Report on savings and effect of personnel reductions in Army 
                            Materiel Command.
Sec. 340. Best commercial inventory practices for management of 
                            secondary supply items.
  Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Continuation of management and funding of Defense Commissary 
                            Agency through the Office of the Secretary 
                            of Defense.
Sec. 342. Expansion of current eligibility of Reserves for commissary 
                            benefits.
Sec. 343. Repeal of requirement for Air Force to sell tobacco products 
                            to enlisted personnel.
Sec. 344. Restrictions on patron access to, and purchases in, overseas 
                            commissaries and exchange stores.
Sec. 345. Extension of demonstration project for uniform funding of 
                            morale, welfare, and recreation activities.
Sec. 346. Prohibition on consolidation or other organizational changes 
                            of Department of Defense retail systems.
Sec. 347. Authorized use of appropriated funds for relocation of Navy 
                            Exchange Service Command.
Sec. 348. Evaluation of merit of selling malt beverages and wine in 
                            commissary stores as exchange system 
                            merchandise.
                       Subtitle F--Other Matters

Sec. 361. Eligibility requirements for attendance at Department of 
                            Defense domestic dependent elementary and 
                            secondary schools.
Sec. 362. Specific emphasis of program to investigate fraud, waste, and 
                            abuse within Department of Defense.
Sec. 363. Revision of inspection requirements relating to Armed Forces 
                            Retirement Home.
Sec. 364. Assistance to local educational agencies that benefit 
                            dependents of members of the Armed Forces 
                            and Department of Defense civilian 
                            employees.
Sec. 365. Strategic plan for expansion of distance learning 
                            initiatives.
Sec. 366. Public availability of operating agreements between military 
                            installations and financial institutions.
Sec. 367. Department of Defense readiness reporting system.
Sec. 368. Travel by Reservists on carriers under contract with General 
                            Services Administration.
   Subtitle G--Demonstration of Commercial-Type Practices To Improve 
                 Quality of Personal Property Shipments

Sec. 381. Demonstration program required.
Sec. 382. Goals of demonstration program.
Sec. 383. Program participants.
Sec. 384. Test plan.
Sec. 385. Other methods of personal property shipping.
Sec. 386. Duration of demonstration program.
Sec. 387. Evaluation of demonstration program.
              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. 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.
                       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.
              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. Communication to promotion boards by officers under 
                            consideration.
Sec. 503. Procedures for separation of regular officers for substandard 
                            performance of duty or certain other 
                            reasons.
Sec. 504. Posthumous commissions and warrants.
Sec. 505. Tenure of Chief of the Air Force Nurse Corps.
                 Subtitle B--Reserve Component Matters

Sec. 511. Composition of selective early retirement boards of Reserve 
                            general and flag officers of the Navy and 
                            Marine Corps.
Sec. 512. Active status service requirement for promotion consideration 
                            for Army and Air Force Reserve component 
                            brigadier generals.
Sec. 513. Revision to educational requirement for promotion of Reserve 
                            officers.
              Subtitle C--Military Education and Training

Sec. 521. Requirements relating to recruit basic training.
Sec. 522. After-hours privacy for recruits during basic training.
Sec. 523. Extension of reporting dates for Commission on Military 
                            Training and Gender Related Issues.
Sec. 524. 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 specified persons.
Sec. 533. Commendation 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 the regarding the heroism, sacrifice, and 
                            service of the military forces of South 
                            Vietnam and other nations in connection 
                            with the United States Armed Forces during 
                            the Vietnam conflict.
Sec. 536. Sense of Congress the regarding the heroism, sacrifice, and 
                            service of former South Vietnamese 
                            commandos in connection with United States 
                            Armed Forces during the Vietnam conflict.
   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.
                       Subtitle F--Other Matters

Sec. 551. One-year extension of certain force drawdown transition 
                            authorities relating to personnel 
                            management and benefits.
Sec. 552. Leave without pay for academy cadets and midshipmen.
Sec. 553. Provision for recovery, care, and disposition of the remains 
                            of all medically retired members.
Sec. 554. Continued eligibility under Voluntary Separation Incentive 
                            program for members who involuntarily lose 
                            membership in a reserve component.
Sec. 555. Definition of financial institution for direct deposit of 
                            pay.
Sec. 556. Increase in maximum amount for College Fund program.
Sec. 557. Central Identification Laboratory, Hawaii.
Sec. 558. Honor guard details at funerals of veterans.
Sec. 559. Applicability to all persons in chain of command of policy 
                            requiring exemplary conduct by commanding 
                            officers and others in authority in the 
                            Armed Forces.
Sec. 560. Report on prisoners transferred from United States 
                            Disciplinary Barracks, Fort Leavenworth, 
                            Kansas, to Federal Bureau of Prisons.
Sec. 561. Report on process for selection of members for service on 
                            courts-martial.
Sec. 562. Study of revising the term of service of members of the 
                            United States Court of Appeals for the 
                            Armed Forces.
Sec. 563. Status of cadets at the Merchant Marine Academy.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1999.
Sec. 602. Basic allowance for housing outside the United States.
Sec. 603. Basic allowance for subsistence for Reserves.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
                            authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
                            authorities for nurse officer candidates, 
                            registered nurses, and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of 
                            other bonuses and special pays.
Sec. 614. Aviation career incentive pay and aviation officer retention 
                            bonus.
Sec. 615. Special pay for diving duty.
Sec. 616. Selective reenlistment bonus eligibility for Reserve members 
                            performing active Guard and Reserve duty.
Sec. 617. Removal of ten percent restriction on selective reenlistment 
                            bonuses.
Sec. 618. Increase in maximum amount of Army enlistment bonus.
Sec. 619. Equitable treatment of Reserves eligible for special pay for 
                            duty subject to hostile fire or imminent 
                            danger.
Sec. 620. Hardship duty pay.
            Subtitle C--Travel and Transportation Allowances

Sec. 631. Exception to maximum weight allowance for baggage and 
                            household effects.
Sec. 632. Travel and transportation allowances for travel performed by 
                            members in connection with rest and 
                            recuperative leave from overseas stations.
Sec. 633. Storage of baggage of certain dependents.
    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 641. Effective date of former spouse survivor benefit coverage.
Sec. 642. Revision to computation of retired pay for enlisted members 
                            who are reduced in grade before retirement.
                       Subtitle E--Other Matters

Sec. 651. Deletion of Canal Zone from definition of United States 
                            possessions for purposes of pay and 
                            allowances.
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 certain health 
                            profession officers serving in Selected 
                            Reserve.
                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Expansion of dependent eligibility under retiree dental 
                            program.
Sec. 702. Plan for provision of health care for military retirees and 
                            their dependents comparable to health care 
                            provided under TRICARE Prime.
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. Procedures regarding enrollment in TRICARE Prime.
                       Subtitle C--Other Matters

Sec. 721. Inflation adjustment of premium amounts for dependents dental 
                            program.
Sec. 722. System for tracking data and measuring performance in meeting 
                            TRICARE access standards.
Sec. 723. Air Force research, development, training, and education on 
                            exposure to chemical, biological, and 
                            radiological hazards.
Sec. 724. Authorization to establish a Level 1 Trauma Training Center.
Sec. 725. Report on implementation of enrollment-based capitation for 
                            funding for military medical treatment 
                            facilities.
Sec. 726. Requirement that military physicians possess unrestricted 
                            licenses.
Sec. 727. Establishment of mechanism for ensuring completion by 
                            military physicians of continuing medical 
                            education requirements.
Sec. 728. Proposal on establishment of appeals process for claimcheck 
                            denials and review of claimcheck system.
Sec. 729. Demonstration project to include certain covered 
                            beneficiaries within Federal employees 
                            health benefits program.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Sec. 801. Limitation on procurement of ammunition and components.
Sec. 802. Acquisition Corps eligibility.
Sec. 803. Amendments relating to procurement from firms in industrial 
                            base for production of small arms.
Sec. 804. Time for submission of annual report relating to Buy American 
                            Act.
Sec. 805. Study on increase in micro-purchase threshold.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Further reductions in defense acquisition workforce.
Sec. 902. Limitation on operation and support funds for the Office of 
                            the Secretary of Defense.
Sec. 903. Revision to defense directive relating to management 
                            headquarters and headquarters support 
                            activities.
Sec. 904. Under Secretary of Defense for Policy to have responsibility 
                            with respect to export control activities 
                            of the Department of Defense.
Sec. 905. Independent task force on transformation and Department of 
                            Defense organization.
Sec. 906. Improved accounting for defense contract services.
Sec. 907. Repeal of requirement relating to assignment of tactical 
                            airlift mission to reserve components.
Sec. 908. Repeal of certain requirements relating to Inspector General 
                            investigations of reprisal complaints.
Sec. 909. Consultation with Commandant of the Marine Corps regarding 
                            Marine Corps aviation.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Outlay limitations.I74Subtitle 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 USS NEW JERSEY.
Sec. 1013. Long-term charter of three vessels in support of submarine 
                            rescue, escort, and towing.
Sec. 1014. Transfer of obsolete Army tugboat.
Sec. 1015. Long-term charter contracts for acquisition of auxiliary 
                            vessels for the Department of Defense.
        Subtitle C--Matters Relating to Counter Drug Activities

Sec. 1021. Department of Defense support for counter-drug activities.
Sec. 1022. Support for counter-drug operation Caper Focus.
Sec. 1023. Sense of the Congress regarding establishment of counter-
                            drug center in Panama.
Sec. 1024. Assignment of members of the Armed Forces to assist 
                            Immigration and Naturalization Service and 
                            Customs Service.
Sec. 1025. Random drug testing of Department of Defense employees.
       Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1031. Annual report on resources allocated to support and mission 
                            activities.
                       Subtitle E--Other Matters

Sec. 1041. Clarification of land conveyance authority, Armed Forces 
                            Retirement Home, District of Columbia.
Sec. 1042. Content of notice required to be provided garnishees before 
                            garnishment of pay or benefits.
Sec. 1043. Training of special operations forces with friendly foreign 
                            forces.
Sec. 1044. Prohibition on assignment of United States forces to United 
                            Nations rapidly deployable mission 
                            headquarters.
Sec. 1045. Clarification of State authority to tax compensation paid to 
                            certain employees.
Sec. 1046. Requirement to provide burial flags wholly produced in the 
                            United States.
Sec. 1047. Investigation of actions relating to 174th Fighter Wing of 
                            New York Air National Guard.
Sec. 1048. Facilitation of operations at Edwards Air Force Base, 
                            California.
Sec. 1049. Sense of the Congress concerning tax treatment of principal 
                            residence of members of Armed Forces while 
                            away from home on active duty.
Sec. 1050. Operation, maintenance, and upgrade of Air Force space 
                            launch facilities.
Sec. 1051. Sense of the Congress concerning new parent support program 
                            and military families.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Authority for release to Coast Guard of drug test results of 
                            civil service mariners of the Military 
                            Sealift Command.
Sec. 1102. Limitations on back pay awards.
Sec. 1103. 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. 1104. Repeal of program providing preference for employment of 
                            military spouses in military child care 
                            facilities.
Sec. 1105. Elimination of retained pay as basis for determining 
                            locality-based adjustments.
Sec. 1106. Observance of certain holidays at duty posts outside the 
                            United States.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Limitation on funds for peacekeeping in the Republic of 
                            Bosnia and Herzegovina.
Sec. 1202. Reports on the mission of United States forces in Republic 
                            of Bosnia and Herzegovina.
Sec. 1203. Report on military capabilities of an expanded NATO 
                            alliance.
Sec. 1204. One-year extension of counterproliferation authorities for 
                            support of United Nations Special 
                            Commission on Iraq.
Sec. 1205. Repeal of landmine moratorium.
Sec. 1206. Sense of the Congress.
Sec. 1207. Investigations of satellite launch failures.
Sec. 1208. Prohibition on exports of missile equipment and technology 
                            to China.
Sec. 1209. Prohibition on exports and reexports of satellites to China.
Sec. 1210. Prohibition on restriction of Armed Forces under Kyoto 
                            Protocol to the United Nations Framework 
                            Convention on Climate Change.
Sec. 1211. Limitation on payments for cost of NATO expansion.
Sec. 1212. Commodity jurisdiction for satellite exports.
Sec. 1213. Release of export information held by the Department of 
                            Commerce for purpose of national security 
                            assessments.
Sec. 1214. Execution of objection authority within the Department of 
                            Defense.
Sec. 1215. Transfer of excess UH-1 Huey helicopters and AH-1 Cobra 
                            helicopters to foreign countries.
Sec. 1216. Nuclear export reporting requirement.
 TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF 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 
                            facility.
Sec. 1305. Limitation on obligation of funds for a specified period.
Sec. 1306. Requirement to submit breakdown of amounts requested by 
                            project category.
Sec. 1307. Limitation on use of funds until completion of fiscal year 
                            1998 requirements.
Sec. 1308. Report on biological weapons programs in Russia.
Sec. 1309. Limitation on use of funds for biological weapons 
                            proliferation prevention activities in 
                            Russia.
Sec. 1310. Limitation on use of certain funds for strategic arms 
                            elimination in Russia or Ukraine.
Sec. 1311. Availability of funds.
         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1401. Short title.
Sec. 1402. Findings.
                   Subtitle A--Domestic Preparedness

Sec. 1411. Domestic preparedness for response to threats of terrorist 
                            use of weapons of mass destruction.
Sec. 1412. Report on domestic emergency preparedness.
Sec. 1413. Performance of threat and risk assessments.
      Subtitle B--Advisory Commission to Assess Domestic Response 
    Capabilities For Terrorism Involving Weapons of Mass Destruction

Sec. 1421. Establishment of commission.
Sec. 1422. Duties of commission.
Sec. 1423. Report.
Sec. 1424. Powers.
Sec. 1425. Commission procedures.
Sec. 1426. Personnel matters.
Sec. 1427. Miscellaneous administrative provisions.
Sec. 1428. Termination of commission.
Sec. 1429. Funding.
            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. Increase in fiscal year 1998 authorization for military 
                            construction projects at Fort Drum, New 
                            York, and Fort Sill, Oklahoma.
                            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. Increase in fiscal year 1995 authorization for military 
                            construction projects at Pine Bluff 
                            Arsenal, Arkansas, and Umatilla Army Depot, 
                            Oregon.
Sec. 2406. Increase in fiscal year 1990 authorization for military 
                            construction project at Portsmouth Naval 
                            Hospital, Virginia.
   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. Army Reserve construction project, Salt Lake City, Utah.
        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. Definition of ancillary supporting facilities under the 
                            alternative authority for acquisition and 
                            improvement of military housing.
        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Restoration of Department of Defense lands used by another 
                            Federal agency.
Sec. 2812. Outdoor recreation development on military installations for 
                            disabled veterans, military dependents with 
                            disabilities, and other persons with 
                            disabilities.
Sec. 2813. Report on use of utility system conveyance authority.
            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Payment of stipulated penalties assessed under the 
                            Comprehensive Environmental Response, 
                            Compensation, and Liability Act of 1980 in 
                            connection with McClellan Air Force Base, 
                            California.
Sec. 2822. Elimination of waiver authority regarding prohibition 
                            against certain conveyances of property at 
                            Naval Station, Long Beach, California.
                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Land conveyance, Army Reserve Center, Massena, New York.
Sec. 2832. Land conveyance, Army Reserve Center, Ogdensburg, New York.
Sec. 2833. Land conveyance, Army Reserve Center, Jamestown, Ohio.
Sec. 2834. Land conveyance, Stewart Army Sub-Post, New Windsor, New 
                            York.
Sec. 2835. Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
                            Indiana.
Sec. 2836. Land conveyance, Volunteer Army Ammunition Plant, 
                            Chattanooga, Tennessee.
Sec. 2837. Release of reversionary interest of United States in former 
                            Redstone Army Arsenal property conveyed to 
                            Alabama Space Science Exhibit Commission.
Sec. 2838. Land conveyance, Fort Sheridan, Illinois.
                       Part II--Navy Conveyances

Sec. 2841. Easement, Marine Corps Base, Camp Pendleton, California.
Sec. 2842. Land conveyance, Naval Reserve Readiness Center, Portland, 
                            Maine.
Sec. 2843. Land conveyance, Naval and Marine Corps Reserve Facility, 
                            Youngstown, Ohio.
                    Part III--Air Force Conveyances

Sec. 2851. Land conveyance, Lake Charles Air Force Station, Louisiana.
Sec. 2852. Land conveyance, Air Force housing facility, La Junta, 
                            Colorado.
                       Subtitle E--Other Matters

Sec. 2861. Repeal of prohibition on joint use of Gray Army Airfield, 
                            Fort Hood, Texas, with civil aviation.
Sec. 2862. Designation of building containing Navy and Marine Corps 
                            Reserve Center, Augusta, Georgia.
Sec. 2863. Expansion of Arlington National Cemetery.
Sec. 2864. Reporting requirements under demonstration project for 
                            purchase of fire, security, police, public 
                            works, and utility services from local 
                            government agencies.
 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.
                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. Prohibition on Federal loan guarantees for defense 
                            environmental management privatization 
                            projects.
Sec. 3132. Extension of funding prohibition relating to international 
                            cooperative stockpile stewardship.
Sec. 3133. Use of certain funds for missile defense technology 
                            development.
Sec. 3134. Selection of technology for tritium production.
Sec. 3135. Limitation on use of certain funds at Hanford Site.
Sec. 3136. Hanford tank cleanup program reforms.
                       Subtitle D--Other Matters

Sec. 3151. Termination of worker and community transition assistance. 
Sec. 3152. Requirement for plan to modify employment system used by 
                            Department of Energy in defense 
                            environmental management programs.
Sec. 3153. Report on stockpile stewardship criteria.
          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.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Definitions.
Sec. 3402. Authorization of appropriations.
Sec. 3403. Price requirement on sale of certain petroleum during fiscal 
                            year 1999.
Sec. 3404. Disposal of Naval Petroleum Reserve Numbered 2.
Sec. 3405. Disposal of Naval Petroleum Reserve Numbered 3.
Sec. 3406. Disposal of Oil Shale Reserve Numbered 2.
Sec. 3407. Administration.
Sec. 3408. Treatment of State of California claim regarding Naval 
                            Petroleum Reserve Numbered 1.
                  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. Sunset of United States overseas benefits just before 
                            transfer.
Sec. 3507. Central Examining Office.
Sec. 3508. Liability for vessel accidents.
Sec. 3509. Panama Canal Board of Contract Appeals.
Sec. 3510. Technical amendments.
                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1999.
Sec. 3602. Conveyance of NDRF vessel M/V BAYAMON.
Sec. 3603. Conveyance of NDRF vessels BENJAMIN ISHERWOOD and HENRY 
                            ECKFORD.
Sec. 3604. Clearinghouse for maritime information.
Sec. 3605. Conveyance of NDRF vessel ex-USS LORAIN COUNTY.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Army as follows:
            (1) For aircraft, $1,420,759,000.
            (2) For missiles, $1,232,285,000.
            (3) For weapons and tracked combat vehicles, 
        $1,507,638,000.
            (4) For ammunition, $1,053,455,000.
            (5) For other procurement, $3,136,918,000.

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, $7,420,847,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,192,195,000.
            (3) For shipbuilding and conversion, $5,992,361,000.
            (4) For other procurement, $3,969,507,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1999 for procurement for the Marine Corps in the amount 
of $691,868,000.
    (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 $451,968,000.

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, $8,219,077,000.
            (2) For missiles, $2,234,668,000.
            (3) For ammunition, $383,627,000.
            (4) For other procurement, $7,046,372,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for Defense-wide procurement in the amount of $1,962,866,000.

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, $50,000,000.
            (2) For the Air National Guard, $50,000,000.
            (3) For the Army Reserve, $50,000,000.
            (4) For the Naval Reserve, $50,000,000.
            (5) For the Air Force Reserve, $50,000,000.
            (6) For the Marine Corps Reserve, $50,000,000.

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 $834,000,000 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. M1A2 SYSTEM ENHANCEMENT PROGRAM STEP 1 PROGRAM.

    Of the funds authorized to be appropriated for the Army in section 
101 for weapons and tracked combat vehicles, $20,300,000 shall be 
available only for the Step 1 program for the M1A2 System Enhancement 
Program.

                       Subtitle C--Navy Programs

SEC. 121. 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.

                       Subtitle D--Other Matters

SEC. 141. ALTERNATIVE TECHNOLOGIES FOR DESTRUCTION OF ASSEMBLED 
              CHEMICAL WEAPONS.

    (a) Program Management.--(1) The program manager for the Assembled 
Chemical Weapons Assessment program shall continue to manage the 
development and testing (including demonstration and pilot-scale 
facility 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 Secretary of the 
Army, or his designee.
    (2) The Under Secretary of Defense for Acquisition and Technology 
and the Secretary of the Army shall jointly submit to Congress, not 
later than December 1, 1998, a plan for the transfer of oversight of 
the Assembled Chemical Weapons Assessment program from the Under 
Secretary to the Secretary.
    (3) Oversight of the Assembled Chemical Weapons Assessment program 
shall be transferred pursuant to the plan submitted under paragraph (2) 
not later than 60 days after the date of the submission of the notice 
required under section 152(f)(2) of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 
1521(f)(2)).
    (b) Post-Demonstration Activities.--(1) The program manager for the 
Assembled Chemical Weapons Assessment program may carry out those 
activities necessary to ensure that an alternative technology for the 
destruction of lethal chemical munitions may be implemented immediately 
after--
            (A) the technology has been demonstrated to be successful;
            (B) the Under Secretary of Defense for Acquisition and 
        Technology has submitted to Congress a report on the 
        demonstration; and
            (C) a decision has been made 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, 1999.
    (c) 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).
    (d) Funding.--Of the amount authorized to be appropriated in 
section 107, $12,600,000 shall be available for the Assembled Chemical 
Weapons Assessment program for the following:
            (1) Demonstration of alternative technologies under the 
        Assembled Chemical Weapons Assessment program.
            (2) Planning and preparation to proceed immediately from 
        demonstration of an alternative technology to the development 
        of a pilot-scale facility for the technology, including 
        planning and preparation for--
                    (A) continued development of the technology leading 
                to deployment of the technology;
                    (B) satisfaction of requirements for environmental 
                permits;
                    (C) demonstration, testing, and evaluation;
                    (D) initiation of actions to design a pilot 
                program;
                    (E) provision of support at the field office or 
                depot level for deployment of the technology; and
                    (F) educational outreach to the public to engender 
                support for the development.
            (3) An independent cost and schedule evaluation of the 
        Assembled Chemical Weapons Assembled program, to be completed 
        not later than December 30, 1999.
    (e) Assembled Chemical Weapons Assessment Program Defined.--In this 
section, the term ``Assembled Chemical Weapons Assessment program'' 
means the program established in section 152(e) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
214; 50 U.S.C. 1521), and section 8065 of the Department of Defense 
Appropriations Act, 1997 (as contained in section 101 of Public Law 
104-208; 110 Stat. 3009-101), for identifying and demonstrating 
alternatives to the baseline incineration process for the 
demilitarization of assembled chemical munitions.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,791,997,000.
            (2) For the Navy, $8,377,059,000.
            (3) For the Air Force, $13,785,401,000.
            (4) For Defense-wide activities, $9,283,515,000, of which--
                    (A) $251,106,000 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, $4,208,978,000 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 for research, development, test, evaluation, and 
insertion 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.--Section 2525(d)(1) of 
title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(1)''; 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.--Section 
2525(d)(2) of such title 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.--Section 2525(d) of such title 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.--
Section 2525(e)(1) of such title is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (3) by inserting at the end the following new subparagraph:
            ``(C) the extent of cost sharing in the manufacturing 
        technology program by companies in the private sector, weapons 
        system program offices and other defense program offices, 
        Federal agencies other than the Department of Defense, 
        nonprofit institutions and universities, and other sources.''.

SEC. 214. SCIENCE AND TECHNOLOGY FUNCTIONS OF THE DEPARTMENT OF 
              DEFENSE.

    (a) Sense of the Congress.--It is the sense of the Congress that--
            (1) to ensure sufficient financial resources are devoted to 
        emerging technologies, a goal of at least 10 percent of funds 
        available under title II for each of the Army, Navy, and Air 
        Force should be dedicated to science and technology in each 
        military department;
            (2) management and funding for science and technology 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 member of the department holds the 
        appropriate title and responsibility to ensure effective 
        oversight and emphasis on science and technology;
            (3) 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;
            (4) the military departments should take appropriate steps 
        to ensure that sufficient numbers of officers and civilian 
        employees in each department hold advanced degrees in technical 
        fields; and
            (5) 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.
    (b) 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) recommend the minimum requirements to maintain 
                a technology base that is sufficient, based on both 
                historical developments and future projections, to 
                project superiority in air and space weapons systems, 
                and information technology;
                    (B) address the effects on national defense and 
                civilian aerospace industries and information 
                technology by reducing funding below the goal described 
                in paragraph (1) of subsection (a); and
                    (C) recommend the appropriate level of staff 
                holding 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.

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).

                 Subtitle C--Ballistic Missile Defense

SEC. 231. NATIONAL MISSILE DEFENSE POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) Threats posed by ballistic missiles and weapons of mass 
        destruction to the national territory of the United States 
        continue to grow as the trend in ballistic missile 
        proliferation and development is toward longer range and 
        increasingly sophisticated missiles.
            (2) Russian and Chinese sources continue to proliferate 
        missile and other advanced technologies.
            (3) North Korea is developing the Taepo-Dong 2 missile, 
        which would have a range sufficient to strike Alaska and 
        Hawaii, and other countries hostile to the United States, 
        including Iran, Libya, and Iraq, have demonstrated an interest 
        in acquiring or developing ballistic missiles capable of 
        reaching the United States.
            (4) Russia's increased reliance on nuclear forces to 
        compensate for the decline of its conventional forces and 
        uncertainty regarding command and control of those nuclear 
        forces increase the possibility of an accidental or 
        unauthorized launch of Russian ballistic missiles.
            (5) The United States could be deterred from effectively 
        promoting or protecting its national interests around the world 
        if any State or territory of the United States is vulnerable to 
        long-range ballistic missiles deployed by nations hostile to 
        the United States.
    (b) Sense of the Congress Concerning National Missile Defense 
Policy.--It is the sense of the 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 plan 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 modification of the Patriot Advanced Capability-3, 
Configuration 3, so as to support the requirement for mobile theater 
missile defense 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. LIMITATION ON FUNDING FOR COUNTERPROLIFERATION SUPPORT.

    None of the funds appropriated for fiscal year 1999 for 
counterproliferation support in Program Element 63160BR may be 
obligated until the Secretary of Defense submits to Congress the report 
required by section 234 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1664; 50 U.S.C. 2367) to 
be submitted not later than January 30, 1998.

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
    ``(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.''.
    (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 THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM 
              ACQUISITION STRATEGY.

    (a) Establishment of Alternative Contractor.--(1) The Secretary of 
Defense shall select an alternative contractor as a potential source 
for the development and production of the interceptor missile for the 
Theater High-Altitude Area Defense (THAAD) system within a ``leader-
follower'' acquisition strategy.
    (2) The Secretary shall take such steps as necessary to ensure that 
the prime contractor for that system prepares the selected alternative 
contractor so as to enable the alternative contractor to be able (if 
necessary) to assume the responsibilities for development or production 
of an interceptor missile for that system.
    (3) The Secretary shall select the alternative contractor as 
expeditiously as possible and shall use the authority provided in 
section 2304(c)(2) of title 10, United States Code, to expedite that 
selection.
    (4) Of the amount authorized under section 201(4) for the Theater 
High-Altitude Area Defense system, the amount provided for the 
Demonstration/Validation phase for that system is hereby increased by 
$142,700,000, of which $30,000,000 shall be available for the purposes 
of this subsection, and the amount provided for the Engineering and 
Manufacturing Development phase for that system is hereby reduced by 
$142,700,000.
    (b) Cost Sharing Arrangement.--The Secretary of Defense shall 
contractually establish an appropriate cost sharing arrangement with 
the prime contractor as of May 14, 1998, for the interceptor missile 
for the Theater High-Altitude Area Defense system for flight test 
failures of that missile beginning with flight test nine.
    (c) Engineering and Manufacturing Development Phase for Other 
Elements of the THAAD System.--The Secretary of Defense shall proceed 
as expeditiously as possible 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 Theater High-Altitude Area Defense system and for the 
Ground-Based Radar (GBR) element for that system. That milestone 
approval process for those elements shall proceed without regard to the 
stage of development of the missile interceptor for that system.
    (d) Requirement Before Procurement of UOES Missiles.--The Secretary 
of Defense may not obligate any funds for acquisition of User 
Operational Evaluation System (UOES) missiles for the Theater High-
Altitude Area Defense system until there have been two successful tests 
of the interceptor missile for that system.
    (e) Limitation on Entering Engineering and Manufacturing 
Development phase.--The Secretary of Defense may not approve the 
commencement of the Engineering and Manufacturing Development phase for 
the interceptor missile for the Theater High-Altitude Area Defense 
system until there have been three successful tests of that missile.
    (f) Successful Test Defined.--For purposes of this section, a 
successful test of the interceptor missile of the Theater High-Altitude 
Area Defense system is a body-to-body intercept by that missile of a 
ballistic missile target.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 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, $16,339,700,000.
            (2) For the Navy, $21,839,328,000.
            (3) For the Marine Corps, $2,539,703,000.
            (4) For the Air Force, $18,816,108,000.
            (5) For Defense-wide activities, $10,354,216,000.
            (6) For the Army Reserve, $1,197,622,000.
            (7) For the Naval Reserve, $948,639,000.
            (8) For the Marine Corps Reserve, $116,993,000.
            (9) For the Air Force Reserve, $1,747,696,000.
            (10) For the Army National Guard, $2,464,815,000.
            (11) For the Air National Guard, $3,096,933,000.
            (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, $377,640,000.
            (15) For Environmental Restoration, Navy, $281,600,000.
            (16) For Environmental Restoration, Air Force, 
        $379,100,000.
            (17) For Environmental Restoration, Defense-wide, 
        $26,091,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $195,000,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $47,311,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $727,582,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $15,000,000.
            (22) For Defense Health Program, $9,663,035,000.
            (23) Former Soviet Union Threat Reduction programs, 
        $417,400,000.
            (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.

SEC. 305. 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. 306. 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. 307. RELOCATION OF USS WISCONSIN.

    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 USS 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. 308. FISHER HOUSE TRUST FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 
1999, out of funds in Fisher House Trust Funds not otherwise 
appropriated, for the operation of Fisher houses described in section 
2221(d) of title 10, United States Code, as follows:
            (1) From the Fisher House Trust Fund, Department of the 
        Army, $250,000 for Fisher houses that are located in proximity 
        to medical treatment facilities of the Army.
            (2) From the Fisher House Trust Fund, Department of the 
        Navy, $150,000 for Fisher houses that are located in proximity 
        to medical treatment facilities of the Navy.
            (3) From the Fisher House Trust Fund, Department of the Air 
        Force, $150,000 for Fisher houses that are located in proximity 
        to medical treatment facilities of the Air Force.

               Subtitle B--Information Technology Issues

SEC. 311. 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.--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)--
            ``(1) the Chief Information Officer of the Department of 
        Defense, with respect to the elements of the Department of 
        Defense other than the military departments, shall--
                    ``(A) review and provide recommendations to the 
                Secretary of Defense on Department of Defense budget 
                requests for information technology and national 
                security systems;
                    ``(B) ensure the interoperability of information 
                technology and national security systems throughout the 
                Department of Defense; and
                    ``(C) ensure that information technology and 
                national security systems standards that will apply 
                throughout the Department of Defense are prescribed; 
                and
            ``(2) the Chief Information Officer of each military 
        department, with respect to the military department concerned, 
        shall--
                    ``(A) review budget requests for all information 
                technology and national security systems;
                    ``(B) ensure that information technology and 
                national security systems are in compliance with 
                standards of the Government and the Department of 
                Defense;
                    ``(C) 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;
                    ``(D) provide for the elimination of duplicate 
                information technology and national security systems 
                within and between the military departments and Defense 
                Agencies; and
                    ``(E) coordinate with the Joint Staff with respect 
                to information technology and national security 
                systems.
    ``(b) 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. 312. DEFENSE-WIDE ELECTRONIC MALL SYSTEM FOR SUPPLY PURCHASES.

    (a) Electronic Mall System.--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.--Using existing systems and 
technology available in the Department of Defense, the Defense 
Logistics Agency shall develop a single, defense-wide electronic mall 
system. The Defense Logistics Agency shall be responsible for the 
management of the resulting electronic mall system. The Secretary of 
each military department and the head of each Defense Agency shall 
provide to the Defense Logistics Agency the necessary and requested 
data to support the development and operation of the electronic mall 
system.
    (c) Implementation Date.--The electronic mall system shall be 
operational and available throughout the Department of Defense not 
later than June 1, 1999. After that date, a military department or 
Defense Agency (other than the Defense Logistics Agency) may not 
develop or operate an electronic mall system.

SEC. 313. PROTECTION OF FUNDING PROVIDED FOR CERTAIN INFORMATION 
              TECHNOLOGY AND NATIONAL SECURITY PROGRAMS.

    (a) Use for Specified Purposes.--Of the amounts authorized to be 
appropriated to the Department of Defense for fiscal years 1999, 2000, 
and 2001 for information technology and national security programs of 
the Department of Defense, not less than the amount specified in 
subsection (b) shall be available for each such fiscal year for the 
purposes of the information technology and national security programs 
described in such subsection, unless an alternative use of the funds is 
specifically approved by a law enacted after the date of the enactment 
of the law originally authorizing the funds.
    (b) Covered Programs and Amounts.--The information technology and 
national security programs referred to in subsection (a), and the 
amounts to be available for each program, are the following:
            (1) The Force XXI program of the Army, $360,000,000.
            (2) The Information Technology for the 21st Century 
        programs of the Navy, $472,000,000.
            (3) The Communications Infrastructure programs of the Air 
        Force, $228,500,000.
            (4) The Telecom and Computing Infrastructure programs of 
        the Marine Corps, $93,000,000.
    (c) Definitions.--In 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 the Clinger-Cohen Act of 
        1996 (40 U.S.C. 1452).

SEC. 314. PRIORITY FUNDING TO ENSURE YEAR 2000 COMPLIANCE OF MISSION 
              CRITICAL INFORMATION TECHNOLOGY AND NATIONAL SECURITY 
              SYSTEMS.

    (a) Funds for Completion of Year 2000 Conversion.--(1) Of the 
amounts authorized to be appropriated pursuant to this Act for 
information technology and national security systems of the Department 
of Defense designated as mission critical, not more than 25 percent may 
be used to fund activities unrelated to ensuring that the awareness, 
assessment, and renovation phases of year 2000 conversion for such 
information technology and national security systems are completed.
    (2) Of the amounts authorized to be appropriated pursuant to this 
Act for information technology and national security systems of the 
Department of Defense (other than information technology and national 
security systems covered by paragraph (1)), not less than 
$1,000,000,000 shall be available only for transfer to support 
activities to ensure that the awareness, assessment, renovation, and 
validation phases of year 2000 conversion for information technology 
and national security systems covered by paragraph (1) are completed.
    (b) Exceptions.--(1) This section does not apply to or affect 
funding for information technology and national security programs 
identified in section 313(b).
    (2) The Secretary of Defense may authorize expenditures in excess 
of the 25 percent limitation specified in subsection (a)(1) if the 
Secretary determines that additional expenditures are required to 
prevent the failure of the information technology or national security 
system and provides prior notice to Congress of the reasons for the 
additional expenditures.
    (c) Termination.--(1) On the date on which the Secretary of Defense 
determines that the year 2000 renovation phase has been completed for a 
particular information technology or national security system covered 
by paragraph (1) of subsection (a), such paragraph shall cease to apply 
to that information technology or national security system.
    (2) Paragraph (2) of such subsection shall cease to apply on the 
date on which the Secretary of Defense determines that all of the 
information technology and national security systems covered by 
paragraph (1) of such subsection are fully funded through the 
validation phase of year 2000 conversion, have an established 
contingency plan, and have completed a point of origin to point of 
execution evaluation.
    (d) Comptroller General Review.--Not later than January 30, 1999, 
the Comptroller General shall submit to Congress a briefing containing 
the following:
            (1) Separate lists of each information technology and 
        national security system of the Department of Defense covered 
        by subsection (a)(1) for which the renovation phase of year 
        2000 conversion is not completed by December 30, 1998.
            (2) A evaluation of the effect of subsection (a) on the 
        year 2000 conversion success rate.
            (3) A list of each information technology and national 
        security system covered by subsection (a)(1) that will not 
        achieve year 2000 compliance by September 30, 1999.
            (4) An explanation of how the military departments, the 
        Joint Chiefs of Staff, and Defense Agencies are applying the 
        definition of mission critical.
            (5) Recommendations regarding the manner in which funding 
        could best be allocated to achieve year 2000 compliance for the 
        greatest number of information technology and national security 
        systems covered by subsection (a)(1).
    (e) Definitions.--In 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 the Clinger-Cohen Act of 
        1996 (40 U.S.C. 1452).
            (3) The term ``mission critical'' means an information 
        technology or national security system of the Department of 
        Defense identified as mission critical in the table prepared by 
        the Joint Chiefs of Staff entitled ``Mission Critical Systems 
        (All Services/Agencies)'', dated March 20, 1998, or in the 
        table printed by the Defense Integrated Support Tool entitled 
        ``Year 2000 Information on Mission Critical Systems'', dated 
        March 19, 1998.
            (4) The terms ``awareness'', ``assessment'', 
        ``renovation'', and ``validation'' have the meanings given the 
        terms in the Department of Defense ``Year 2000 Management 
        Plan'', version 1.0, released in April 1997.

SEC. 315. 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 report containing a 
plan to include a simulated year 2000 as part of the military exercises 
described in subsection (b) in order to evaluate, in an operational 
environment, the extent to which information technology and national 
security systems involved in the exercises will successfully operate, 
including the ability of the systems to access and transmit information 
from point of origin to point of termination, during the actual year 
2000.
    (b) Covered Military Exercises.--A military exercise referred to in 
subsection (a) 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.
    (c) Elements of Report.--The report under subsection (a) shall 
include the following:
            (1) A list of all military exercises described in 
        subsection (b) to be conducted during the period specified in 
        such subsection.
            (2) A description of the manner in which the year 2000 will 
        be simulated for information technology and national security 
        systems involved in each military exercise.
            (3) The duration of the year 2000 simulation in each 
        military exercise.
            (4) The methodology to be used in turning over the 
        information technology and national security systems to the 
        year 2000 in order to best identify those systems that fail to 
        operate reliably during the military exercise.
            (5) A list of the information technology and national 
        security systems excluded from the plan under subsection 
        (d)(1), including how the military exercise will utilize an 
        excluded system's year 2000 contingency plan.
            (6) A list of the exercises and information technology and 
        national security systems excluded from the plan under 
        subsection (d)(2), and a description of the effect that 
        continued year 2000 noncompliance of the systems would have on 
        military readiness.
    (d) Exclusions.--(1) Subsection (a) shall not apply to an 
information technology or national security system if the Secretary of 
Defense determines that the system will be incapable of performing 
reliably during the year 2000 simulation portion of the military 
exercise. In the case of each excluded system, the system may not be 
used during the period of the year 2000 simulation. Instead, the 
excluded system shall be replaced by the year 2000 contingency plan for 
the system.
    (2) If the mission of a military exercise will be seriously 
hampered by the number of information technology and national security 
systems covered by paragraph (1), the Secretary of Defense may exclude 
the entire exercise from the requirements of subsection (a).
    (3) Subsection (a) shall not apply to an information technology or 
national security system with cryptological applications.
    (4) If the decision to exclude a military exercise or information 
technology or national security system is made under paragraph (1) or 
(2) after the date of the submission of the report required by 
subsection (a), the Secretary of Defense shall notify Congress of the 
exclusion not later than two weeks before commencing the military 
exercise. The notification shall include the information required under 
paragraph (5) or (6) of subsection (c), depending on whether the 
exclusion covers the entire exercise or particular information 
technology and national security systems.
    (e) 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, 
describing the potential information that will be collected as a result 
of implementation of the plan, and describing the impact that the plan 
will have on military readiness.
    (f) Definitions.--In 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 the Clinger-Cohen Act of 
        1996 (40 U.S.C. 1452).

                  Subtitle C--Environmental Provisions

SEC. 321. AUTHORIZATION TO PAY NEGOTIATED SETTLEMENT FOR ENVIRONMENTAL 
              CLEANUP AT FORMER DEPARTMENT OF DEFENSE SITES IN CANADA.

    (a) Authorization.--To the extent provided in appropriations Acts, 
the Secretary of Defense may pay an amount to the Government of Canada 
of not more than $100,000,000 (in fiscal year 1996 constant dollars), 
for purposes of implementing the October 1996 negotiated settlement 
between the United States and Canada relating to environmental cleanup 
at various sites in Canada that were formerly used by the Department of 
Defense.
    (b) Method of Payment.--The amount authorized by subsection (a) 
shall be paid in 10 annual payments, with the first payment made from 
amounts appropriated for fiscal year 1998.
    (c) Fiscal Year 1998 Payment.--The payment under this section 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).
    (d) Fiscal Year 1999 Payment.--The payment under this section for 
fiscal year 1999 shall be made from amounts appropriated pursuant to 
section 301(5).
    (e) Limitation.--The authorization provided in this section shall 
not be construed as setting a precedent for payment under a treaty of 
an environmental claim made by another nation, unless the Senate has 
given its consent to the ratification of the treaty.

SEC. 322. REMOVAL OF UNDERGROUND STORAGE TANKS.

    Of the amount authorized to be appropriated pursuant to section 
301(18) (relating to environmental restoration of formerly used defense 
sites), the Secretary of the Army may use not more than $150,000 for 
the removal of underground storage tanks at the Authorities Allied 
Industrial Park, Macon, Georgia.

         Subtitle D--Defense Infrastructure Support Improvement

SEC. 331. REPORTING AND STUDY REQUIREMENTS BEFORE CHANGE OF COMMERCIAL 
              AND INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR PERFORMANCE.

    (a) In General.--Section 2461 of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (c) as subsection (h) and 
        transferring such subsection to appear after subsection (g); 
        and
            (2) by striking out subsections (a) and (b) and inserting 
        in lieu thereof the following new subsections:
    ``(a) Reporting and Study 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 a private contractor or changed to procurement through a 
private contractor until the Secretary of Defense fully complies with 
the reporting and study requirements specified in subsections (b) and 
(c).
    ``(b) Notification and Elements of Study.--(1) Before commencing to 
study a commercial or industrial type function described in subsection 
(a) for possible change to performance by a private contractor or 
possible change to procurement through a private contractor, the 
Secretary of Defense shall submit to Congress a report containing the 
following:
            ``(A) The function to be studied 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 study.
            ``(E) A certification that the performance of the 
        commercial or industrial type function by civilian employees of 
        the Department of Defense is not precluded due to any 
        constraint or limitation in terms of man years, end strengths, 
        full-time equivalent positions, or maximum number of employees.
    ``(2) The responsibility of the Secretary of Defense to submit the 
report required under paragraph (1) may be delegated only to senior 
acquisition executives or higher officials for the military departments 
and the Defense Agencies.
    ``(3) The study of a commercial or industrial type function for 
possible change in performance shall include the following:
            ``(A) A comparison of the cost of performance of the 
        function by Department of Defense civilian employees and by 
        private contractor to demonstrate whether change to performance 
        by a private contractor or change to procurement through a 
        private contractor will result in savings to the Government 
        over the life of the contract, including in the comparison--
                    ``(i) the amount estimated by the Secretary of 
                Defense (based on bids received) to be the amount of a 
                contract for performance of the function by a private 
                contractor;
                    ``(ii) the cost to the Government of Department of 
                Defense civilian employees performing the function; and
                    ``(iii) the costs and expenditures which the 
                Government would incur (in addition to the amount of 
                the contract) because of the award of such a contract.
            ``(B) An examination of the potential economic effect of 
        performance of the function by a private contractor--
                    ``(i) on employees who would be affected by such a 
                change in performance; and
                    ``(ii) on the local community and the Government, 
                if more than 75 employees perform the function.
            ``(C) An examination of the effect of performance of the 
        function by a private contractor on the military mission of the 
        function.
    ``(4) If the commercial or industrial type function at issue 
involves a working-capital fund in the Department of Defense and the 
study concerns the possible procurement by a requisitioning agency of 
services or supplies from a private contractor instead of the working-
capital fund, in lieu of the comparison required by paragraph (3), the 
study shall include a comparison of the sources of the services or 
supplies to determine which source is more cost-effective for the 
requisitioning agency.
    ``(5) An individual or entity at a facility where a commercial or 
industrial type function is studied for possible change in performance 
may raise an objection to the study on the grounds that the report 
required under paragraph (1) as a precondition for the study does not 
contain the certification required by subparagraph (E) of such 
paragraph. The objection may be raised at any time during the course of 
the study, shall be in writing, and shall be submitted to the Secretary 
of Defense. If the Secretary determines that the certification was 
omitted, the commercial or industrial type function covered by the 
study may not be the subject of request for proposal or award of a 
contract until a certification is made that fully complies with 
paragraph (1)(E) and the other requirements of this section are 
satisfied.
    ``(c) Notification of Decision.--(1) If, as a result of the 
completion of a study under subsection (b)(3), a decision is made to 
change the commercial or industrial type function that was the subject 
of the study to performance by a private contractor or to procurement 
through a private contractor, the Secretary of Defense shall submit to 
Congress a report describing that decision. The report shall--
            ``(A) indicate that the study under subsection (b)(3) has 
        been completed;
            ``(B) certify that the Government calculation for the cost 
        of performance of the function by Department of Defense 
        civilian employees is based on an estimate of the most 
        efficient and cost effective organization for performance of 
        the function by Department of Defense civilian employees;
            ``(C) certify that the comparison required by subsection 
        (b)(3)(A) (or alternatively by subsection (b)(4)) as part of 
        the study demonstrates that the performance of the function by 
        a private contractor or procurement of the function through a 
        private contractor will result in savings to the Government 
        over the life of the contract;
            ``(D) certify that the entire comparison is available for 
        examination; and
            ``(E) contain a timetable for completing change of the 
        function to contractor performance.
    ``(2) The actual change of the function to contractor performance 
may not begin until after the submission of the report required by this 
subsection.''.
    (b) Conforming Amendments.--(1) Subsections (e)(2) and (f)(1) of 
such section are amended by striking out ``converted'' and inserting in 
lieu thereof ``changed''.
    (2) Subsection (f)(2) of such section is amended by striking out 
``conversion'' and inserting in lieu thereof ``change''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act but shall not apply 
with respect to 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. 332. CLARIFICATION OF REQUIREMENT TO MAINTAIN GOVERNMENT-OWNED AND 
              GOVERNMENT-OPERATED CORE LOGISTICS CAPABILITY.

    Section 2464 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) Rule of Construction.--The requirement under subsection (a) 
that the Department of Defense maintain a core logistics capability 
that is Government-owned and Government-operated is not satisfied when 
a core logistics workload is converted to contractor performance even 
though the actual performance of the workload will be carried out in a 
Government-owned, Government-operated facility of the Department of 
Defense as a subcontractor of the private contractor. Nothing in 
section 2474 of this title or section 337 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2717) authorizes the use of subcontracts as a means to provide 
workloads to Government-owned, Government-operated facilities of the 
Department of Defense in order to satisfy paragraph (4) of subsection 
(a).''.

SEC. 333. OVERSIGHT OF DEVELOPMENT AND IMPLEMENTATION OF AUTOMATED 
              IDENTIFICATION TECHNOLOGY.

    (a) Smartcard Program Defined.--In this section, the term 
``smartcard program'' means an automated identification technology 
program, including any pilot program, employing one or more of the 
following technologies:
            (1) Magnetic stripe.
            (2) Bar codes, both linear and two-dimensional (including 
        matrix symbologies).
            (3) Smartcard.
            (4) Optical memory.
            (5) Personal computer memory card international association 
        carriers.
            (6) Other established or emerging automated identification 
        technologies, including biometrics and radio frequency 
        identification.
    (b) Oversight Responsibility.--(1) The Smartcard Technology Office 
established in the Defense Human Resources Field Activity of the 
Department of Defense shall be responsible for--
            (A) overseeing the development and implementation of all 
        smartcard programs in the Department; and
            (B) coordinating smartcard 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 a smartcard 
program unless the program is reviewed and approved by the Smartcard 
Technology Office. The review and approval before that date of a 
smartcard program by the Office is sufficient to satisfy the 
requirements of this paragraph.
    (c) Types of Oversight.--As part of its oversight responsibilities, 
the Smartcard Technology Office shall establish standards designed--
            (1) to ensure the compatibility and interoperability of 
        smartcard programs in the Department of Defense; and
            (2) to identify and terminate redundant, unfeasible, or 
        uneconomical smartcard programs.

SEC. 334. CONDITIONS ON EXPANSION OF FUNCTIONS PERFORMED UNDER PRIME 
              VENDOR CONTRACTS.

    (a) Prime Vendor Contract Defined.--For purposes of this section, 
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.
    (b) Conditions on Expanded Use.--If the Secretary of Defense or the 
Secretary of a military department proposes to enter into a prime 
vendor contract for a hardware system, including the performance or 
management of depot-level maintenance and repair (as defined in section 
2460 of title 10, United States Code) or logistics management 
responsibilities, the Secretary may not enter into the prime vendor 
contract until the end of the 60-day period beginning on the date on 
which the Secretary submits to Congress a report, specific to that 
proposal, that--
            (1) describes the competitive procedures to be used to 
        award the prime vendor contract;
            (2) evaluates the effect of the prime vendor contract on 
        working-capital funds in the Department of Defense; and
            (3) contains a cost/benefit analysis that demonstrates that 
        use of the prime vendor contract will result in savings to the 
        Government over the life of the contract.
    (c) Comptroller General Review.--During the waiting period provided 
in subsection (b) for a proposed prime vendor contract, the Comptroller 
General shall review the report submitted under subsection (b) with 
respect to that contract and submit to Congress a report regarding--
            (1) whether the cost savings to the Government identified 
        in the report submitted under subsection (b) are achievable; 
        and
            (2) whether use of a prime vendor contract will comply with 
        the requirements of chapter 146 of title 10, United States 
        Code, applicable to depot-level maintenance and repair.
    (d) 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. 335. 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. 336. CLARIFICATION OF COMMERCIAL ITEM EXCEPTION TO REQUIREMENTS 
              REGARDING CORE LOGISTICS CAPABILITIES.

    Section 2464(a)(5) of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(5)'';
            (2) by adding at the end of subparagraph (A), as so 
        designated, the following: ``The determination of whether a 
        modification is minor shall be based on a comparison of only 
        the critical systems of the version sold in the commercial 
        marketplace and the version purchased by the Government, and a 
        modification may not be considered to be minor unless at least 
        90 percent of the total content by component value remains 
        identical.''; and
            (3) by adding at the end the following new subparagraph:
    ``(B) In this paragraph, the term `substantial quantities' means, 
with respect to determining whether an item is a commercial item, that 
purchases and leases of the item to the general public constitute the 
majority of all transactions involving the item at the time the 
exception under paragraph (3) is proposed to be exercised.''.

SEC. 337. DEVELOPMENT OF PLAN FOR ESTABLISHMENT OF CORE LOGISTICS 
              CAPABILITIES FOR MAINTENANCE AND REPAIR OF C-17 AIRCRAFT.

    (a) Findings.--Congress finds the following:
            (1) The C-17 aircraft, which is replacing the C-141 
        aircraft, will serve as the cornerstone of heavy airlift 
        capability of the Armed Forces.
            (2) The C-17 aircraft achieved initial operational 
        capability in January 1995 and will complete the significant 
        fourth year of its operational capability in January 1999.
            (3) As provided in section 2464(a)(3) of title 10, United 
        States Code, the C-17 aircraft is a weapon system that is 
        ``necessary to enable the armed forces to fulfill the strategic 
        and contingency plans prepared by the Chairman of the Joint 
        Chiefs of Staff''.
            (4) The depot-level maintenance and repair of such a weapon 
        system must be performed at Government-owned, Government-
        operated facilities of the Department of Defense in order to 
        maintain the core logistics capabilities of the Department of 
        Defense, as required under such section 2464.
            (5) The sole-source contract entered into in January 1998 
        regarding the depot-level maintenance and repair of C-17 
        aircraft and related tasks, known as the Interim Contract for 
        the C-17 Flexible Sustainment Program, does not meet the 
        requirements of law.
    (b) 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.
    (c) 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 until after the end of the 60-day 
period beginning on the date the plan required by subsection (b) is 
received by Congress.
    (d) Comptroller General Review.--During the period specified in 
subsection (c), the Comptroller General shall review the plan required 
under subsection (b) and submit to Congress a report evaluating the 
merits of the plan.

SEC. 338. 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 (COCESS) 
        program of the Department of the Air Force 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--
            (1) the Secretary of Defense submits to Congress a report--
                    (A) notifying Congress of the proposed combined 
                competition or contract; and
                    (B) explaining why a combined competition or 
                contract is the best method by which to achieve cost 
                savings and efficiencies to the Government; and
            (2) the Comptroller General reviews the report and submits 
        to Congress a briefing regarding whether the cost savings and 
        efficiencies identified in the report are achievable.
    (d) 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. 339. REPORT ON SAVINGS AND EFFECT OF PERSONNEL REDUCTIONS IN ARMY 
              MATERIEL COMMAND.

    (a) Report Required.--Not later than March 31, 1999, the 
Comptroller General shall submit to the congressional defense 
committees a report concerning--
            (1) the effect that the proposed personnel reductions in 
        the Army Materiel Command will have on workload and readiness 
        if implemented; and
            (2) the likelihood that the cost savings projected to occur 
        from such reductions will actually be achieved.
    (b) Delay in Implementation of Reductions Pending Report.--During 
the period specified in subsection (c), the Secretary of Defense and 
the Secretary of the Army may not commence personnel reductions based 
on the guidelines contained in the May 1997 report of the Quadrennial 
Defense Review (including the National Defense Panel) prepared pursuant 
to subtitle B of title IX of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 111 note) at any Army 
Material Command facility that provides depot-level maintenance and 
repair or at any Army Arsenal.
    (c) Duration of Delay.--Subsection (b) applies only during the 
period beginning on the date of the enactment of this Act and ending on 
the earlier of the following:
            (1) March 31, 1999.
            (2) The date on which the report required by subsection (a) 
        is submitted.

SEC. 340. 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 develop and 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 and holding costs 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.

  Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 341. CONTINUATION OF MANAGEMENT AND FUNDING OF DEFENSE COMMISSARY 
              AGENCY THROUGH THE OFFICE OF THE SECRETARY OF DEFENSE.

    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 the periodic review required 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 the National 
Defense Authorization Act for Fiscal Year 1999.''.

SEC. 342. 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' means 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.''.
    (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. 343. 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. 344. 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. 2491. Overseas commissary and exchange stores: access and 
              purchase restrictions
    ``(a) General Authority.--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 host nation laws 
or treaty obligations of the United States. In establishing a quantity 
or other restriction, the Secretary 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 the National 
Defense Authorization Act for Fiscal Year 1999, 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) Special Rules for Korea.--(1) The Secretary of Defense may 
not prohibit a dependent who resides in Korea, is at least 21 years of 
age, and is otherwise eligible to use the commissary and exchange 
system, from purchasing alcoholic beverages through the commissary and 
exchange system. Quantity restrictions on the purchase of alcoholic 
beverages may be imposed, and any such restriction may be enforced 
through the use of an issued ration control device, but a dependent may 
not be required to sign for any purchase. A quantity restriction on 
malt beverages may not restrict purchases to fewer than eight cases, of 
24-units per case, per month. Daily or weekly restrictions on malt 
beverage purchases may not be imposed. The purchase of malt beverages 
may be recorded on a ration control device, but eligible patrons may 
not be required to sign for any purchase.
    ``(2) A dependent residing in Korea who is at least 18 years of age 
and otherwise eligible to use the commissary and exchange system may 
purchase tobacco products on the same basis as other eligible patrons 
of the commissary and exchange system.
    ``(3) Eligible patrons of the commissary and exchange system who 
are traveling through a military air terminal in Korea shall be 
authorized to the purchase sundry items, including tobacco products, on 
a temporary basis during the normal operating hours of commissary and 
exchange stores operated in connection with the terminal.
    ``(4) In applying restrictions to dependents of members of the 
armed forces, the Secretary of Defense may not differentiate between a 
dependent whose movement to Korea was authorized at the expense of the 
United States under section 406 of title 37 and other dependents 
residing in Korea.
    ``(d) Reporting Requirements.--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:

``2491. Overseas commissary and exchange stores: access and purchase 
                            restrictions.''.

SEC. 345. EXTENSION OF DEMONSTRATION PROJECT FOR UNIFORM FUNDING OF 
              MORALE, WELFARE, AND RECREATION ACTIVITIES.

    Section 335 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 10 U.S.C. 2241 note) is amended--
            (1) in subsection (c), by striking out ``not later than 
        September 30, 1998'' and inserting in lieu thereof ``on 
        September 30, 1999''; and
            (2) in subsection (e)(2), by striking out ``a final report 
        on the results'' and inserting in lieu thereof ``an additional 
        report on the progress''.

SEC. 346. 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 changed, and a 
study or review may not be commenced regarding the need for or merits 
of such a consolidation or change, unless the consolidation, change, 
study, or review 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. 347. AUTHORIZED USE OF APPROPRIATED FUNDS FOR RELOCATION OF NAVY 
              EXCHANGE SERVICE COMMAND.

    The Navy Exchange Service Command is not required to reimburse the 
United States for appropriated funds allotted to the Navy Exchange 
Service Command during fiscal years 1994, 1995, and 1996 to cover costs 
incurred by the Navy Exchange Service Command to relocate to Virginia 
Beach, Virginia, and to lease headquarters space in Virginia Beach.

SEC. 348. EVALUATION OF MERIT OF SELLING MALT BEVERAGES AND WINE IN 
              COMMISSARY STORES AS EXCHANGE SYSTEM MERCHANDISE.

    (a) Patron Survey.--(1) 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 interest in 
having commissary stores sell malt beverages and wine as exchange store 
merchandise.
    (2) 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).
    (3) The survey shall be completed, and the results submitted to the 
Secretary of Defense, not later than November 30, 1998.
    (b) Demonstration Project.--(1) After consideration of the survey 
results, the Secretary of Defense may conduct a demonstration project 
at seven military installations in the United States (two Army 
installations, two Air Force installations, two Navy installations, and 
one Marine Corps installation) to evaluate the merit of selling malt 
beverages and wine in commissary stores as exchange store merchandise. 
Under the demonstration project, the Secretary may sell malt beverages 
and wine in commissary stores as exchange store merchandise 
notwithstanding the general requirement that merchandise sold in, at, 
or by commissary stores be commissary store inventory.
    (2) The demonstration project may only be conducted in States where 
it is legal to sell malt beverages and wine in grocery stores.
    (3) Not later than February 1, 1999, the Secretary of Defense shall 
determine whether to conduct the demonstration project. Any such 
demonstration project shall be completed not later than September 30, 
2000.
    (c) Report.--(1) If the Secretary of Defense conducts a 
demonstration project under subsection (b), the Secretary shall submit 
to Congress a report describing the results of the demonstration 
project. The report shall include a description of patron views, the 
impact on commissary sales, the impact on exchange sales, and the 
impact, if any, on dividends for morale, welfare, and recreation 
activities.
    (2) The report shall be submitted not later than March 1, 2000.
    (d) Limitation.--Nothing in this section shall be construed to 
authorize the sale of malt beverages and wine in commissary stores as 
commissary store inventory.

                       Subtitle F--Other Matters

SEC. 361. 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 inserting ``(1)'' before ``If'';
            (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 services provided. Any such extension shall cover 
only one school year at a time.''.

SEC. 362. 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. 363. REVISION OF INSPECTION REQUIREMENTS RELATING TO ARMED FORCES 
              RETIREMENT HOME.

    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) Periodic Inspection.--The Inspector Generals of the military 
departments shall conduct, at three-year intervals, an inspection of 
the Retirement Home and the records of the Retirement Home. Each 
inspection under this subsection shall be performed by a single 
Inspector General on an alternating basis.
    ``(b) Report.--The Inspector General of a military department who 
performs an inspection of the Retirement Home under subsection (a) 
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.''.

SEC. 364. 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. 365. STRATEGIC PLAN FOR EXPANSION OF DISTANCE LEARNING 
              INITIATIVES.

    (a) Development of Plan.--The Secretary of Defense shall develop a 
strategic plan for guiding and expanding distance learning initiatives 
in the Department of Defense. The strategic plan shall cover the five-
year period beginning on October 1, 1999.
    (b) Elements of Plan.--The strategic plan required by this section 
shall contain at a minimum the following elements:
            (1) Measurable goals and objectives, including outcome-
        related performance indicators, for developing distance 
        learning initiatives in the Department that would be consistent 
        with the principles of the Government Performance and Results 
        Act of 1993 (section 306 of title 5 and sections 1115 through 
        1119, 9703, and 9704 of title 31).
            (2) A description of the manner in which distance learning 
        initiatives will be developed and managed in the Department.
            (3) An estimate of the costs and benefits associated with 
        developing and maintaining an infrastructure in the Department 
        to support distance learning initiatives and a statement of 
        planned expenditures for investments necessary to build and 
        maintain the infrastructure.
            (4) A description of mechanisms that will be used to 
        oversee the development and coordination of distance learning 
        initiatives in the Department.
    (c) Consideration of Current Effort.--In developing the strategic 
plan required by this section, the Secretary of Defense may recognize 
the collaborative distance learning effort of the Department of Defense 
and other Federal agencies and private industry (known as the Advanced 
Distribution Learning initiative), but the strategic plan shall be 
specific to the goals and objectives of the Department.
    (d) Submission of Plan.--Not later than March 1, 1999, the 
Secretary of Defense shall submit to Congress the completed strategic 
plan required by this section.

SEC. 366. 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 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.

SEC. 367. 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, of 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 shall be 
        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 have the 
capability to do the following:
            ``(1) Measure 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 the capability of training establishments to 
        provide trained and ready forces for wartime missions.
            ``(3) Measure 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 critical warfighting deficiencies in unit 
        capability, training establishments, and defense 
        infrastructure.
            ``(5) Measure the level of current risk based upon the 
        readiness reporting system relative to the capability of forces 
        to carry out their wartime missions.
            ``(6) Measure such other factors relating to readiness as 
        the Secretary prescribes.
    ``(d) Periodic Joint Readiness Review.--The Chairman of the Joint 
Chiefs of Staff shall periodically, and not less frequently than 
monthly, conduct a joint readiness review. The Chairman shall 
incorporate into each such review 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 of the review. The Chairman shall submit to the Secretary 
of Defense the results of each review, 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 complete results of each review under 
subsection (d) during the preceding month, 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 July 1, 1999.
    (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.--Effective 
July 1, 1999, or the date on which the first report of the Secretary of 
Defense is submitted under section 117(d) of title 10, United States 
Code, as added by subsection (a), whichever is later--
            (1) section 482 of title 10, United States Code, is 
        repealed; and
            (2) 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. 368. TRAVEL BY RESERVISTS ON CARRIERS UNDER CONTRACT WITH GENERAL 
              SERVICES ADMINISTRATION.

    (a) Reserve Use of Federal Supply Transportation.--Chapter 1217 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 12603. Travel: use of carriers under contract with General 
              Services Administration
    ``A member of a reserve component who requires transportation in 
order to perform inactive duty training may use a carrier under 
contract with the General Services Administration to provide the 
transportation. The transportation shall be provided by the carrier in 
the same manner as transportation is provided to members of the armed 
forces and civilian employees who are traveling at Government expense, 
except that the Reserve is responsible for the cost of the travel at 
the contract rate. The Secretary concerned may require the Reserve to 
use a Government approved travel card to ensure that the transportation 
is procured for the purpose of performing inactive duty training.''.
    (b) Clerical Amendment.--The table of sections for such chapter is 
amended by adding at the end the following new item:

``12603. Travel: use of carriers under contract with General Services 
                            Administration.''.

   Subtitle G--Demonstration of Commercial-Type Practices To Improve 
                 Quality of Personal Property Shipments

SEC. 381. DEMONSTRATION PROGRAM REQUIRED.

    (a) In General.--The Secretary of Defense shall conduct a 
demonstration program, to be known as the ``Commercial-Like Activities 
for Superior Quality Demonstration Program'', pursuant to this subtitle 
to test commercial-style practices to improve the quality of personal 
property shipments within the Department of Defense.
    (b) Definitions.--In this subtitle:
            (1) The term ``CLASS Demonstration Program'' means the 
        Commercial-Like Activities for Superior Quality Demonstration 
        Program required by subsection (a).
            (2) The term ``affiliated'' means an entity that is owned 
        and controlled by another entity or an independently owned 
        entity whose day-to-day business operations are controlled by 
        another entity.
            (3) The term ``best value CLASS score'' means a weighted 
        score that reflects an eligible provider's past performance 
        rating score and the schedules of charges for services 
        provided.
            (4) The term ``broker'' means an entity, described in 
        section 13102(2) of title 49, United States Code, that conducts 
        operations on behalf of the Military Traffic Management Command 
        and possesses appropriate authority from the Department of 
        Transportation or an appropriate State regulatory agency to 
        arrange for the transportation of personal property in 
        interstate, intrastate, or foreign commerce.
            (5) The term ``freight forwarder'' means an entity that 
        provides the services described in section 13102(8) of title 
        49, United States Code, in interstate, intrastate, or foreign 
        commerce and possesses the authority to provide such services 
        from the Department of Transportation or an appropriate State 
        regulatory agency.
            (6) The term ``motor carrier'' means an entity that uses 
        motor vehicles to transport personal property in interstate, 
        intrastate, or foreign commerce and possesses the authority to 
        provide such services from the Department of Transportation or 
        an appropriate State regulatory agency.
            (7) The term ``motor vehicles'' has the meaning given such 
        term in section 13102(14) of title 49, United States Code.
            (8) The term ``move management services provider'' means an 
        entity that provides certain services in connection with the 
        shipment of the household goods of a member of the Armed 
        Forces, such as arranging, coordinating, and monitoring the 
        shipment.
            (9) The term ``test plan'' means the plan prepared under 
        section 384 for the conduct of the CLASS Demonstration Program.

SEC. 382. GOALS OF DEMONSTRATION PROGRAM.

    The goals of the CLASS Demonstration Program are to--
            (1) adopt commercial-style practices to improve the quality 
        of Department of Defense personal property shipments within the 
        United States and to foreign locations;
            (2) adopt simplified acquisition procedures for the 
        selection of contractors qualified to provide various types of 
        personal property shipping services and for the award of 
        individual orders to such contractors;
            (3) assure ready access of the Department of Defense to a 
        sufficient number of qualified providers of personal property 
        shipping to permit timely shipments during periods of high 
        demand for such services;
            (4) assure maximum practicable opportunities for small 
        business concerns to participate as prime contractors rather 
        than subcontractors;
            (5) empower Installation Transportation Officers to assure 
        that the personal property shipping needs of individual members 
        of the Armed Forces are met in a timely manner by quality 
        contractors who minimize opportunities for damage; and
            (6) provide for the expedited resolution of claims for 
        damaged or lost property through direct settlement negotiations 
        between the service provider and the member of the Armed Forces 
        who sustains the loss, with commercial-like arbitration 
        available to the member with the assistance of the military 
        department concerned.

SEC. 383. PROGRAM PARTICIPANTS.

    (a) Eligible Service Providers.--(1) Any motor carrier, freight 
forwarder, or broker regularly providing personal property shipping 
services that is approved by the Military Traffic Management Command to 
provide such services to the Department of Defense is eligible to 
participate in the CLASS Demonstration Program. A motor carrier 
providing domestic personal property shipping services shall not be 
precluded from providing such services to international destinations 
through an affiliated freight forwarder.
    (2) If a motor carrier is affiliated with another motor carrier or 
freight forwarder that also seeks qualification to participate in the 
CLASS Demonstration Program, the affiliate must demonstrate that it 
also conducts independent regular motor carrier operations using motor 
vehicles or independent freight forwarding services described in 
subparagraph (A), (B), or (C) of section 13102(8) of title 49, United 
States Code. If a freight forwarder is affiliated with another freight 
forwarder or motor carrier that also seeks qualification to participate 
in the program, the affiliate must demonstrate that it also conducts 
regular independent operations.
    (b) Move Management Services Providers.--The test plan may provide 
for the participation of a broker providing move management services. A 
move management service provider shall be compensated for providing 
such services solely by the Department of Defense. The test plan shall 
prohibit a move management services provider from obtaining a 
commission (or similar type of payment however denominated) from a 
motor carrier or freight forwarder providing the personal property 
shipping services.
    (c) Demonstration Program Participants.--Eligible service providers 
shall be offered participation in the CLASS Demonstration Program on 
the basis of their best value CLASS score. Each eligible service 
provider's best value CLASS score shall be computed in a manner that 
assigns 70 percent of the weighted average to the provider's past 
performance rating and 30 percent to the provider's offered prices.

SEC. 384. TEST PLAN.

    (a) In General.--The CLASS Demonstration Program shall be conducted 
pursuant to a test plan.
    (b) Components of the Test Plan.--In addition to such other matters 
as the Secretary of Defense considers appropriate, the test plan shall 
include the following components:
            (1) Rating past performance.--A past performance rating 
        score shall be developed for each eligible service provider 
        based on--
                    (A) evaluations from service members who have 
                received personal property shipping services during a 
                specified six-month rating period prior to the 
                commencement of the CLASS Demonstration Program; or
                    (B) a rating of comparable personal property 
                shipping services provided to non-Department of Defense 
                customers during the same rating period, if an eligible 
                provider did not make a sufficient number of military 
                personal property shipments during the rating period to 
                be assigned a rating pursuant to subparagraph (A).
            (2) Participation by quality service providers.--A minimum 
        best value CLASS score shall be established for participation 
        in the CLASS Demonstration Program. In establishing the minimum 
        score for participation, consideration shall be given to 
        assuring access to sufficient numbers of service providers to 
        meet the needs of members of the Armed Forces during periods of 
        high demand for such personal property shipping services.
            (3) Simplified acquisition procedures.--The CLASS 
        Demonstration Program shall make use of simplified acquisition 
        procedures similar to those provided in section 2304(g)(1)(A) 
        of title 10, United States Code.
            (4) Pricing.--The test plan shall specify pricing policies 
        to be met by the CLASS Demonstration Program participants. The 
        pricing policies shall reflect the following:
                    (A) Domestic pricing shall be based on the 
                contemporary Household Goods Carriers Commercial Tariff 
                400-M, or subsequent reissues thereof, applicable to 
                commercial domestic shipments with discounts and 
                adjustments for States outside the continental United 
                States.
                    (B) So-called single factor rates for international 
                shipments.
                    (C) Full value protection for a shipment based on 
                the actual cash value of the contents of the shipment 
                with liability limited on a per pound basis as well as 
                a total-value basis.
            (5) Allocation of orders.--Orders to provide personal 
        property shipping services shall be allocated by the 
        appropriate Installation Transportation Officer taking into 
        consideration--
                    (A) the service provider's best value CLASS score;
                    (B) maximum practicable utilization of small 
                business service providers;
                    (C) exceptional performance of a CLASS 
                Demonstration Program participant; and
                    (D) other criteria necessary to advance the goals 
                of the CLASS Demonstration Program, except that carrier 
                selection by a member of the Armed Forces using the 
                CLASS Demonstration Program shall be honored if the 
                selection does not conflict with subparagraph (A) or 
                (B) and the need to maintain adequate capacity.
            (6) Performance evaluation during the term of the 
        demonstration program.--The CLASS Demonstration Program shall 
        provide for procedures for evaluation of the Demonstration 
        Program participants by the members of the Armed Forces 
        furnished personal property shipping services and by 
        Installation Transportation Officers. To the maximum extent 
        practicable, such evaluations shall be objective and 
        quantifiable. The program participant shall be accorded the 
        opportunity to review and make comment on a performance 
        evaluation provided by an individual in a manner that will not 
        deter candid evaluations by the individual. The results of this 
        evaluation may be used in developing future best value CLASS 
        scores.
            (7) Modern customer service techniques.--The CLASS 
        Demonstration Program shall maximize the testing of modern 
        customer service techniques, such as in-transit tracking of 
        shipments and service member communication with the service 
        provider by means of toll-free telephone numbers.
            (8) Direct claims settlement techniques.--The CLASS 
        Demonstration Program shall provide for settlement of claims 
        for personal property lost or damaged directly with the firm 
        providing the services. The procedures shall provide for--
                    (A) acknowledgment of a claim by the service 
                provider within 30 days of receipt;
                    (B) provision of a settlement offer within 120 
                days;
                    (C) filing of a claim within nine months, with 
                appropriate extensions for extenuating circumstances 
                relating to war or national emergency that impair the 
                ability of a member of the Armed Forces to file a 
                timely claim; and
                    (D) referring of an unsettled claim by the member 
                of the Armed Forces to a designated claims officer for 
                assistance in resolving the claim or seeking 
                commercial-like arbitration of the claim, or both, if 
                considered appropriate by the claims officer.
            (9) Criteria for evaluation of the overall demonstration 
        program.--The CLASS Demonstration Program shall include the 
        development of criteria to evaluate the overall performance and 
        effectiveness of the CLASS demonstration program.
    (c) Development in Collaboration With Industry.--In developing the 
test plan, the Secretary of Defense shall maximize collaboration with 
representatives of associations that represent all segments of the 
affected industries. Special efforts shall be made to actively involve 
those associations that represent small business providers of personal 
property shipping services.
    (d) Opportunity for Public Comment on Proposed Test Plan.--Notice 
of the availability of the test plan shall be published in the Federal 
Register and given by other means likely to result in the notification 
of eligible service providers and associations that represent them. 
Copies of the proposed test plan may be made available in a printable 
electronic format. The public shall be afforded 60 days to comment on 
the proposed test plan.

SEC. 385. OTHER METHODS OF PERSONAL PROPERTY SHIPPING.

    The CLASS Demonstration Program shall not impair the access of a 
member of the Armed Forces to the shipment of personal property through 
the programs known as the Do-It-Yourself Program or the Direct 
Procurement Method Program.

SEC. 386. DURATION OF DEMONSTRATION PROGRAM.

    The CLASS Demonstration Program shall commence on the first day of 
the fiscal year quarter after the issuance of the test plan in final 
form and terminate on the last day of the fiscal year quarter after 
eight fiscal year quarters of operation. The CLASS Demonstration 
Program shall take the place of the re-engineering pilot solicitation 
of the Military Traffic Management Command identified as DAMTO1-97-R-
3001.

SEC. 387. EVALUATION OF DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary of Defense shall provide for the 
evaluation the CLASS Demonstration Program throughout the term of the 
program pursuant to the evaluation criteria included in the test plan.
    (b) Interim Reports.--The Secretary of Defense shall issue such 
interim reports relating to the implementation of the CLASS 
Demonstration Program as may be appropriate.
    (c) Final Report.--The Secretary of Defense shall issue a final 
report on the CLASS Demonstration Program within 180 days before the 
termination date of the program. The report may include recommendations 
for further implementation of the CLASS Demonstration Program.
    (d) Congressional Recipients.--The reports required by this section 
shall be furnished to the congressional defense committees and the 
Committee on Small Business of the Senate and the House of 
Representatives.
    (e) Public Availability.--The Secretary of Defense shall provide 
public notice of the availability of copies of the reports submitted to 
the congressional recipients through a notice in the Federal Register 
and such other means as may be appropriate. Copies of the reports may 
be made available in a printable electronic format or in a printed 
form.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 1999, as follows:
            (1) The Army, 484,800.
            (2) The Navy, 376,423.
            (3) The Marine Corps, 173,922.
            (4) The Air Force, 371,577.

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 ``484,800'';
            (2) in paragraph (2), by striking out ``390,802'' and 
        inserting in lieu thereof ``376,423''; and
            (3) in paragraph (3), by striking out ``174,000'' and 
        inserting in lieu thereof ``173,922''.
    (b) Revision to Flexibility Authority for the Army.--Subsection (e) 
of such section is amended by striking out ``or, in the case of the 
Army, by not more than 1.5 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 shall be submitted each year not later than 30 days 
        after the date on which the budget for the next fiscal year is 
        transmitted to Congress pursuant to section 1105 of title 31, 
        shall be in writing, and''.

SEC. 404. 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, 2001''.

                       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, 357,000.
            (2) The Army Reserve, 209,000.
            (3) The Naval Reserve, 90,843.
            (4) The Marine Corps Reserve, 40,018.
            (5) The Air National Guard of the United States, 106,991.
            (6) The Air Force Reserve, 74,242.
            (7) The Coast Guard Reserve, 8,000.
    (b) 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, 21,763.
            (2) The Army Reserve, 12,804.
            (3) The Naval Reserve, 15,590.
            (4) The Marine Corps Reserve, 2,362.
            (5) The Air National Guard of the United States, 10,930.
            (6) The Air Force Reserve, 991.

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     776      140  
Lieutenant Colonel or Commander.....    1,524     520     672       90  
Colonel or Navy Captain.............     438      188     274     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      388       20  
E-8.................................   2,585     429      979     94''. 
------------------------------------------------------------------------

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

              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 
$70,697,086,000. 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.

    (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 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'';
            (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. COMMUNICATION TO PROMOTION BOARDS BY OFFICERS UNDER 
              CONSIDERATION.

    Section 614(b) of title 10, United States Code, is amended by 
striking out ``his case'' and inserting in lieu thereof ``enhancing his 
case for selection for promotion''.

SEC. 503. PROCEDURES FOR SEPARATION OF REGULAR OFFICERS FOR SUBSTANDARD 
              PERFORMANCE OF DUTY OR CERTAIN OTHER REASONS.

    (a) Elimination of Requirement for a Board of Review.--Section 
1182(c) of title 10, United States Code, is amended by striking out 
``it shall send the record of its proceedings to a board of review 
convened under section 1183 of this title'' and inserting in lieu 
thereof ``it shall report that determination to the Secretary 
concerned'';
    (b) Repeal of Board of Review.--(1) Section 1183 of such title is 
repealed.
    (2) The table of sections at the beginning of chapter 60 of such 
title is amended by striking out the item relating to section 1183.
    (c) Conforming Amendments.--(1) 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''.
    (2) The heading of such section and the item relating to such 
section in the table of sections at the beginning of chapter 60 of such 
title are amended by striking out the last two words.
    (d) Elimination of 30-Day Notice Requirement.--Section 1185(a)(1) 
of such title is amended by striking out ``, at least 30 days before 
the hearing of his case by a board of inquiry,''.

SEC. 504. POSTHUMOUS COMMISSIONS AND WARRANTS.

    Section 1521 of title 10, United States Code, is amended--
            (1) by inserting ``(whether before or after the member's 
        death)'' in subsection (a)(3) after ``approved by the Secretary 
        concerned''; and
            (2) by adding at the end of subsection (b) the following 
        new sentence: ``In the case of a member to whom subsection 
        (a)(3) applies who dies before approval by the Secretary 
        concerned of the appointment or promotion, the commission shall 
        issue as of the date of death.''.

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.

                 Subtitle B--Reserve Component Matters

SEC. 511. COMPOSITION OF SELECTIVE EARLY RETIREMENT BOARDS OF RESERVE 
              GENERAL AND FLAG OFFICERS OF THE NAVY AND MARINE CORPS.

    Section 14705(b) of title 10, United States Code, is amended to 
read as follows:
    ``(b) Boards.--(1) If the Secretary of the Navy determines that 
consideration of officers for early retirement under this section is 
necessary, the Secretary shall convene a continuation board under 
section 14101(b) of this title to recommend an appropriate number of 
officers for early retirement.
    ``(2) In the case of such a board convened to consider officers in 
the grade of rear admiral or major general--
            ``(A) the Secretary may appoint the board without regard to 
        section 14102(b) of this title; and
            ``(B) each member of the board must be serving in a grade 
        higher than the grade of rear admiral or major general.''.

SEC. 512. 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 one year 
        as of the date of the convening of the promotion board; and
            ``(2) had continuously served for at least one 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. 513. REVISION TO EDUCATIONAL REQUIREMENT FOR PROMOTION OF RESERVE 
              OFFICERS.

    (a) Extension for Army OCS Graduates.--Section 12205(b)(4) of title 
10, United States Code, is amended by inserting after ``October 1, 
1995'' the following: ``, or in the case of an officer commissioned 
through the Army Officer Candidate School, October 1, 2000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as of October 1, 1995.

              Subtitle C--Military Education and Training

SEC. 521. REQUIREMENTS RELATING TO 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 platoons and separate 
              housing for male and female recruits
    ``(a) Separate Platoons.--The Secretary of the Army shall require 
that during basic training--
            ``(1) male recruits shall be assigned to platoons 
        consisting only of male recruits; and
            ``(2) female recruits shall be assigned to platoons 
        consisting only of female recruits.
    ``(b) Separate Housing Facilities.--The Secretary of the Army shall 
require that during basic training male and female recruits be housed 
in separate barracks or other troop housing facilities.
    ``(c) Interim Authority for Housing Recruits on Separate Floors.--
(1) If the Secretary of the Army determines that it is not feasible, 
during some or all of the period beginning on April 15, 1999, and 
ending on October 1, 2001, to comply with subsection (b) at any 
particular installation at which basic training is conducted because 
facilities at that installation are insufficient for such purpose, the 
Secretary may grant a waiver of subsection (b) with respect to that 
installation. Any such waiver may not be in effect after October 1, 
2001, and may only be in effect while the facilities at that 
installation are insufficient for the purposes of compliance with 
subsection (b).
    ``(2) If the Secretary grants a waiver under paragraph (1) with 
respect to an installation, the Secretary shall require that male and 
female recruits in basic training at that installation during any 
period that the waiver is in effect not be housed on the same floor of 
a barracks or other troop housing facility.
    ``(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 platoons and 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 small units and separate 
                            housing for male and female recruits.
``Sec. 6931. Recruit basic training: separate small units and separate 
              housing for male and female recruits
    ``(a) Separate Small Unit Organization.--The Secretary of the Navy 
shall require that during basic training--
            ``(1) male recruits in the Navy shall be assigned to 
        divisions, and male recruits in the Marine Corps shall be 
        assigned to platoons, consisting only of male recruits; and
            ``(2) female recruits in the Navy shall be assigned to 
        divisions, and female recruits in the Marine Corps shall be 
        assigned to platoons, consisting only of female recruits.
    ``(b) Separate Housing.--The Secretary of the Navy shall require 
that during basic training male and female recruits be housed in 
separate barracks or other troop housing facilities.
    ``(c) Interim Authority for Housing Recruits on Separate Floors.--
(1) If the Secretary of the Navy determines that it is not feasible, 
during some or all of the period beginning on April 15, 1999, and 
ending on October 1, 2001, to comply with subsection (b) at any 
particular installation at which basic training is conducted because 
facilities at that installation are insufficient for that purpose, the 
Secretary may grant a waiver of subsection (b) with respect to that 
installation. Any such waiver may not be in effect after October 1, 
2001, and may only be in effect while the facilities at that 
installation are insufficient for the purposes of compliance with 
subsection (b).
    ``(2) If the Secretary grants a waiver under paragraph (1) with 
respect to an installation, the Secretary shall require that male and 
female recruits in basic training at that installation during any 
period that the waiver is in effect not be housed on the same floor of 
a barracks or other troop housing facility.
    ``(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 flights and separate 
              housing for male and female recruits
    ``(a) Separate Flights.--The Secretary of the Air Force shall 
require that during basic training--
            ``(1) male recruits shall be assigned to flights consisting 
        only of male recruits; and
            ``(2) female recruits shall be assigned to flights 
        consisting only of female recruits.
    ``(b) Separate Housing.--The Secretary of the Air Force shall 
require that during basic training male and female recruits be housed 
in separate dormitories or other troop housing facilities.
    ``(c) Interim Authority for Housing Recruits on Separate Floors.--
(1) If the Secretary of the Air Force determines that it is not 
feasible, during some or all of the period beginning on April 15, 1999, 
and ending on October 1, 2001, to comply with subsection (b) at any 
particular installation at which basic training is conducted because 
facilities at that installation are insufficient for such purpose, the 
Secretary may grant a waiver of subsection (b) with respect to that 
installation. Any such waiver may not be in effect after October 1, 
2001, and may only be in effect while the facilities at that 
installation are insufficient for the purposes of compliance with 
subsection (b).
    ``(2) If the Secretary grants a waiver under paragraph (1) with 
respect to an installation, the Secretary shall require that male and 
female recruits in basic training at that installation during any 
period that the waiver is in effect not be housed on the same floor of 
a dormitory or other troop housing facility.
    ``(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 flights and 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.

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

    (a) Purpose.--The purpose of this section is to ensure that 
military recruits are provided some degree of privacy during basic 
training when in their barracks after completion of the normal training 
day.
    (b) 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 barracks floor on 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 on that 
floor.''.
    (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.
    (c) 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 barracks floor on 
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 on that floor.''.
    (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.
    (d) 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 drill 
sergeants and other training personnel to a dormitory floor on 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 on that 
floor.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 9312, 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. 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. 524. 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) Determination of Criteria for New Decoration.--(1) The 
Secretary of Defense shall determine the appropriate name, policy, 
award criteria, and design 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) Limitation on Implementation.--Any such decoration may only be 
implemented as provided by a law enacted after the date of the 
enactment of this Act.
    (c) Recommendation to Congress.--Not later than July 31, 1999, the 
Secretary shall submit to Congress a legislative proposal that would, 
if enacted, establish the new decorations developed pursuant to 
subsection (a). The Secretary shall include with that proposal the 
Secretary's recommendation concerning the need for, and propriety of, 
each of the decorations.
    (d) 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 SPECIFIED PERSONS.

    (a) Waiver of Time Limitation.--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 in the 
case of awards of decorations described in subsection (b), 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 Flying Cross.--Subsection (a) applies to awards 
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 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 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 American nationals, policies, and 
        possessions in the Far East.
            (2) The sailors and Marines of the Asiatic Fleet ensured 
        the safety of United States citizens 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 singly or in task forces courageously fought many 
        battles against a superior Japanese armada.
            (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 between 1910 and 
        1942; and
            (2) honors those who gave their lives in the line of duty 
        while serving in the Asiatic Fleet.

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 the 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 THE 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 the 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 THE 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 the 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.

   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 cases before 
              Corrections Boards
    ``(a) Ten-Month Clearance Percentage.--Of the cases accepted for 
consideration by a Corrections Board during a period specified in the 
following table, the percentage on which final action must be completed 
within 10 months of receipt (other than for those cases considered 
suitable for administrative correction) is as follows:

                                    The percentage on which final
``For cases accepted                    action must be completed
  during--                              within 10 months of receipt
                                        is--
    the period of fiscal years 2001 and 2002......               50    
    the period of fiscal years 2003 and 2004......               60    
    the period of fiscal years 2005, 2006, and                   70    
        2007.
    the period of fiscal years 2008, 2009, and                   80    
        2010.
    the period of any fiscal year after fiscal                  90.    
        year 2010.
    ``(b) Clearance Deadline for All Cases.--Effective October 1, 2002, 
final action on all cases accepted for consideration by a Corrections 
Board (other than those cases 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 case from the timeliness standards 
prescribed in subsections (a) and (b) if the Secretary determines that 
the case warrants a longer period of consideration. The authority of 
the Secretary of a military department under this subsection may not be 
delegated.
    ``(d) 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 timeliness 
standards in 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.
    ``(e) 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 cases before 
                            Corrections Boards.''.

                       Subtitle F--Other Matters

SEC. 551. ONE-YEAR EXTENSION OF CERTAIN FORCE DRAWDOWN TRANSITION 
              AUTHORITIES RELATING TO PERSONNEL MANAGEMENT AND 
              BENEFITS.

    (a) Early Retirement Authority for Active Duty Members.--Section 
4403(i) of the National Defense Authorization Act for Fiscal Year 1993 
(Public Law 102-484; 10 U.S.C. 1293 note) is amended by striking out 
``October 1, 1999'' and inserting in lieu thereof ``October 1, 2000''.
    (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, 2000''.
    (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, 
2000''.
    (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, 2000''.
    (e) Length of 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, 2000''.
    (f) Retirement of Certain Limited Duty Officers of the Navy and 
Marine Corps.--(1) Sections 633 and 634 of such title are amended by 
striking out ``October 1, 1999'' in the last sentence and inserting in 
lieu thereof ``October 1, 2000''.
    (2) Section 6383 of such title is amended--
            (A) in subsection (a)(5), by striking out ``October 1, 
        1999'' and inserting in lieu thereof ``October 1, 2000''; and
            (B) in subsection (k), by striking out ``October 1, 1999'' 
        in the last sentence and inserting in lieu thereof ``October 1, 
        2000''.
    (g) Travel and Transportation Allowances and Storage of Baggage and 
Household Effects for Certain Members Being Involuntarily Separated.--
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 (Public Law 
101-510; 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, 2000''.
    (h) Educational Leave Relating to Continuing Public and Community 
Service.--Section 4463(f) of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 1143a note) is amended 
by striking out ``September 30, 1999'' and inserting in lieu thereof 
``September 30, 2000''.
    (i) Transitional Health, Commissary, and Family Housing Benefits.--
            (1) Health care.--Section 1145 of title 10, United States 
        Code, is amended--
                    (A) 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, 2000''; and
                    (B) 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, 2000''.
            (2) Commissary and exchange benefits.--Section 1146 of such 
        title is amended--
                    (A) 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, 2000''; and
                    (B) 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, 2000''.
            (3) Use of military housing.--Section 1147(a) of such title 
        is amended--
                    (A) 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, 2000''; 
                and
                    (B) 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, 2000''.
    (j) 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, 2000''.
    (k) 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, 2000''.
    (l) 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, 
2000''.
    (m) 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, 2000''.
    (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, 2000''.
    (n) 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, 2000''.
    (o) 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, 2000''.

SEC. 552. LEAVE WITHOUT PAY FOR ACADEMY CADETS AND MIDSHIPMEN.

    (a) Authority for Leave Without Pay.--Section 702 of title 10, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(c)(1) The Secretary concerned may place an academy cadet or 
midshipman on involuntary leave without pay if, under regulations 
prescribed by the Secretary concerned, the Superintendent of the 
Academy at which the cadet or midshipman is admitted--
            ``(A) has recommended that the cadet or midshipman be 
        dismissed or discharged;
            ``(B) has directed the cadet or midshipman return to the 
        Academy to repeat an academic semester or year;
            ``(C) has otherwise recommended to the Secretary for good 
        cause that the cadet or midshipman be placed on involuntary 
        leave without pay.
    ``(2) In this subsection, the term `academy cadet or midshipman' 
means--
            ``(A) a cadet of the United States Military Academy;
            ``(B) a midshipman of the United States Naval Academy;
            ``(C) a cadet of the United States Air Force Academy; or
            ``(D) a cadet of the United States Coast Guard Academy.''.
    (b) Effective Date.--Subsection (c) of section 702 of title 10, 
United States Code, as added by subsection (a), shall apply with 
respect to academy cadets and midshipmen (as defined in that 
subsection) who are placed on involuntary leave after the date of the 
enactment of this Act.

SEC. 553. PROVISION FOR RECOVERY, CARE, AND DISPOSITION OF THE REMAINS 
              OF ALL MEDICALLY RETIRED MEMBERS.

    (a) In General.--Section 1481(a) of title 10, United States Code, 
is amended--
            (1) in paragraph (1), by striking out ``, or member of an 
        armed force without component,''; and
            (2) in paragraph (7)--
                    (A) by striking out ``United States''; and
                    (B) by striking out ``for a period of more than 30 
                days,''.
    (b) Effective Date.--The amendments made by subsection (a)(2) apply 
with respect to persons dying on or after the date of the enactment of 
this Act.

SEC. 554. CONTINUED ELIGIBILITY UNDER VOLUNTARY SEPARATION INCENTIVE 
              PROGRAM FOR MEMBERS WHO INVOLUNTARILY LOSE MEMBERSHIP IN 
              A RESERVE COMPONENT.

    (a) Continued Eligibility.--Section 1175(a) of title 10, United 
States Code, is amended by inserting before the period at the end ``, 
or for the period described in section 1175(e)(1) of this section if 
the member becomes ineligible for retention in an active or inactive 
status in a reserve component because of age, years of service, failure 
to select for promotion, or medical disqualification, so long as such 
ineligibility does not result from deliberate action on the part of the 
member with the intent to avoid retention in an active or inactive 
status in a reserve component.''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
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. 555. DEFINITION OF FINANCIAL INSTITUTION FOR DIRECT DEPOSIT OF 
              PAY.

    (a) Servicemembers Reimbursement for Expenses Due to Government 
Error.--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 Employees Reimbursement for Expenses Due to Government 
Error.--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. 556. INCREASE IN MAXIMUM AMOUNT FOR COLLEGE FUND PROGRAM.

    (a) Increase in Maximum Rate for Active Component Montgomery GI 
Bill Kicker.--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 amendment made by subsection (a) shall 
take effect on October 1, 1999, and shall apply with respect to 
individuals who first become members of the Armed Forces on or after 
that date.

SEC. 557. CENTRAL IDENTIFICATION LABORATORY, HAWAII.

    (a) Sense of the Congress.--It is the sense of the 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. 558. HONOR GUARD DETAILS AT FUNERALS OF VETERANS.

    (a) In General.--(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.
    ``(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, 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, United States 
Code.''.
    (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.''.
    (b) 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.''.
    (c) 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).
    (d) Applicability.--The amendments made by this section shall apply 
to burials of veterans that occur on or after October 1, 1999.
    (e) Study.--The Secretary of Defense, in coordination with the 
Secretary of Veterans Affairs, shall study alternative means for the 
provision of honor guard details at funerals of veterans. Not later 
than March 31, 1999, the Secretary 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 results of the 
study and the Secretary's views and recommendations.
    (f) Consultation with Veterans Service Organizations.--Before 
prescribing the initial regulations under section 1491 of title 10, 
United States Code, as added by subsection (a), the Secretary of 
Defense shall consult with veterans service organizations to determine 
the views of those organizations regarding methods for providing honor 
guard details at funerals for veterans, suggestions for organizing the 
system to provide those details, and estimates of the resources that 
those organizations could provide for honor guard details for veterans.

SEC. 559. APPLICABILITY TO ALL PERSONS IN CHAIN OF COMMAND OF POLICY 
              REQUIRING EXEMPLARY CONDUCT BY COMMANDING OFFICERS AND 
              OTHERS IN AUTHORITY IN THE ARMED FORCES.

    (a) In General.--(1) Chapter 3 of title 10, United States Code, is 
amended by inserting after section 121 the following new section:
``Sec. 121a. Requirement of exemplary conduct by civilians in chain of 
              command
    ``The President, as Commander in Chief, and the Secretary of 
Defense are required (in the same manner that commanding officers and 
others in authority in the Armed Forces are required)--
            ``(1) to show in themselves a good example of virtue, 
        honor, and patriotism and to subordinate themselves to those 
        ideals;
            ``(2) to be vigilant in inspecting the conduct of all 
        persons who are placed under their command;
            ``(3) to guard against and to put an end to all dissolute 
        and immoral practices and to correct, according to the laws and 
        regulations of the armed forces, all persons who are guilty of 
        them; and
            ``(4) to 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.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
121 the following new item:

``121a. Requirement of exemplary conduct by civilians in chain of 
                            command.''.

SEC. 560. 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. 561. 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) Matters To Be Considered.--In preparing the report, the 
Secretary shall--
            (1) direct the Secretaries of the military departments to 
        develop a plan for random selection of members of courts-
        martial , subject to the provisions relating to service on 
        courts-martial specified in section 825(d)(2) of title 10, 
        United States Code (article 25(d)(2) of the Uniform Code of 
        Military Justice), as a possible replacement for the current 
        system of selection by the convening authority; and
            (2) obtain the views of the members of the committee 
        referred to in section 946 of such title (known as the ``Code 
        Committee'').

SEC. 562. STUDY OF REVISING THE TERM OF SERVICE OF MEMBERS OF THE 
              UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES.

    Not later than April 15, 1999, the Secretary of Defense shall 
submit to Congress a report on the desirability of revising the term of 
appointment of judges of the United States Court of Appeals for the 
Armed Forces so that the term of a judge on that court is for a period 
of 15 years or until the judge attains the age of 65, whichever is 
later. In preparing the report, the Secretary shall obtain the view of 
the members of the committee referred to in section 946 of title 10, 
United States Code, (known as the ``Code Committee'').

SEC. 563. STATUS OF CADETS AT THE MERCHANT MARINE ACADEMY.

    (a) Status of Cadets.--Any citizen of the United States appointed 
as a cadet at the United States Merchant Marine Academy shall be 
considered to be a member of the United States Naval Reserve.
    (b) Eligibility.--The Secretary of Defense shall provide that 
cadets of the United States Merchant Marine Academy shall be issued an 
identification card (referred to as a ``military ID card'') and shall 
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.
    (c) Coordination With Secretary of Transportation.--The Secretary 
of Defense shall carry out this section in coordination with the 
Secretary of Transportation.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     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. 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. 603. 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 eight 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 eight 
                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. ONE-YEAR 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 ``September 30, 2000''.
    (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 ``September 30, 2000''.
    (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 ``September 30, 2000''.
    (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 ``September 30, 2000''.
    (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 ``September 30, 2000''.
    (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 ``September 30, 
2000''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37, 
United States Code, is amended by striking out ``September 30, 1999'' 
and inserting in lieu thereof ``September 30, 2000''.
    (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 ``October 1, 2000''.

SEC. 612. ONE-YEAR 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 ``September 30, 2000''.
    (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 ``September 30, 2000''.
    (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 ``September 30, 
2000''.

SEC. 613. ONE-YEAR 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 ``September 30, 2000,''.
    (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 ``September 30, 2000''.
    (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 
``September 30, 2000''.
    (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 ``September 30, 2000''.
    (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 ``September 30, 2000''.
    (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, 2000''.

SEC. 614. 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                                     Monthly
        (including
  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. 615. SPECIAL PAY FOR DIVING DUTY.

    Section 304(a) of title 37, United States Code, is amended--
            (1) by inserting ``or'' at the end of paragraph (1);
            (2) in paragraph (2), by striking out ``by frequent and 
        regular dives; and'' and inserting in lieu thereof a period; 
        and
            (3) by striking out paragraph (3).

SEC. 616. 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 in a regular 
        component, or in a reserve component if the member is 
        performing active Guard and Reserve duty (as defined in section 
        101(d)(6) of title 10), of the service concerned;''.

SEC. 617. REMOVAL OF TEN PERCENT RESTRICTION ON SELECTIVE REENLISTMENT 
              BONUSES.

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

SEC. 618. INCREASE IN MAXIMUM AMOUNT OF 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. 619. 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. 620. HARDSHIP DUTY PAY.

    (a) Duty for Which Pay Authorized.--Subsection (a) of section 305 
of title 37, United States Code, is amended by striking out ``on duty 
at a location'' and all that follows 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.''.
    (b) Repeal of Exception for Members Receiving Career Sea Pay.--
Subsection (c) of such section is repealed.
    (c) Conforming Amendments.--(1) Subsections (b) and (d) of such 
section are amended by striking out ``hardship duty location pay'' and 
inserting in lieu thereof ``hardship duty pay''.
    (2) Subsection (d) of such section is redesignated as subsection 
(c).
    (3) The heading for such section is amended by striking out 
``location''.
    (4) Section 907(d) of title 37, United States Code, is amended by 
striking out ``duty at a hardship duty location'' and inserting in lieu 
thereof ``hardship duty''.
    (d) Clerical Amendment.--The item relating to section 305 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.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. 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. 632. 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. 633. 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.''.

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

SEC. 641. EFFECTIVE DATE OF FORMER SPOUSE SURVIVOR BENEFIT COVERAGE.

    (a) Coordination of Provisions.--Section 1448(b)(3)(C) of title 10, 
United States Code, is amended by inserting after ``the Secretary 
concerned'' in the second sentence the following: ``, except that, in 
the case of an election made by a person described in section 
1450(f)(3)(B) of this title, such an election is effective on the first 
day of the first month which begins after the date of the court order 
or filing involved (in the same manner as provided under section 
1450(f)(3)(D) of this title)''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to elections under section 1448(b)(3) of title 10, United States 
Code, that are received by the Secretary concerned on or after the date 
of the enactment of this Act.

SEC. 642. REVISION TO COMPUTATION OF RETIRED PAY FOR ENLISTED MEMBERS 
              WHO ARE REDUCED IN GRADE BEFORE RETIREMENT.

    (a) Pre-September 8, 1980 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.--Paragraph 
        (1) does not apply in the case of a member who after serving as 
        the senior enlisted member of an armed force is reduced in 
        grade as the result of a court-martial sentence, nonjudicial 
        punishment, or other administrative process, as determined by 
        the Secretary concerned.''.
    (b) Post-September 7, 1980 Members.--Section 1407 of such title is 
amended by adding at the end the following new subsection:
    ``(f) Limitation for Enlisted Members Reduced in Grade.--
            ``(1) Basic pay disregarded for grades above grade to which 
        reduction in grade is made.--In computing the high-three 
        average of a retired enlisted member who has been reduced in 
        grade, the amount of basic pay to which the member was entitled 
        for any covered pre-reduction month (or to which the member 
        would have been entitled if serving on active duty during that 
        month, in the case of a member entitled to retired under pay 
        under section 12731 of this title) shall (for the purposes of 
        such computation) be deemed to be the rate of basic pay to 
        which the member would have been entitled for that month if the 
        member had served on active duty during that month in the grade 
        to which the reduction in grade was made.
            ``(2) Definitions.--In this subsection:
                    ``(A) Retired enlisted member who has been reduced 
                in grade.--The term `retired enlisted member who has 
                been reduced in grade' means a member or former member 
                who--
                            ``(i) retires in an enlisted grade, 
                        transfers to the Fleet Reserve or Fleet Marine 
                        Corps Reserve, or becomes entitled to retired 
                        pay under chapter 12731 after last serving in 
                        an enlisted grade; and
                            ``(ii) had at any time previously been 
                        reduced in grade as the result of a court-
                        martial sentence, nonjudicial punishment, or 
                        other administrative process, as determined by 
                        the Secretary concerned.
                    ``(B) Covered pre-reduction month defined.--The 
                term `covered pre-reduction month' means, in the case 
                of a retired enlisted member who has been reduced in 
                grade, a month of service of the member before the 
                reduction in grade of the member during which the 
                member served in a grade higher than the grade to which 
                the reduction in grade was made.''.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply in the case of a member who is reduced in grade by sentence of a 
court-martial only in the case of a court-martial conviction on or 
after the date of the enactment of this Act. Subsection (f) of section 
1407 of title 10, United States Code, as added by the amendment made by 
subsection (b), shall not apply to the retired or retainer pay of any 
person who becomes entitled to that pay before the date of the 
enactment of this Act.
    (d) Technical Amendment.--Subsection (e) of section 1407 of title 
10, United States Code, is amended by striking out ``high-36 average 
shall be computed'' and inserting in lieu thereof ``high-three average 
shall be computed under subsection (c)(1)''.

                       Subtitle E--Other Matters

SEC. 651. DELETION OF CANAL ZONE FROM DEFINITION OF UNITED STATES 
              POSSESSIONS FOR PURPOSES OF PAY AND ALLOWANCES.

    Section 101(2) of title 37, United States Code, is amended by 
striking ``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) Obligations and expenditures incurred for an advance payment 
under this section may not be included in any determination of amounts 
available for obligation or expenditure except in the fiscal year in 
which the advance payment is ultimately earned and such obligations and 
expenditures shall be accounted for only in such fiscal year.''.

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. However, the amount reimbursed 
shall not exceed $30 per day, and the rental period for which 
reimbursement may be provided shall expire after seven days or on the 
date on which the delayed vehicle finally 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. However, the amount reimbursed 
shall not exceed $30 per day, and the rental period for which 
reimbursement may be provided shall expire after seven days or on the 
date on which the delayed vehicle finally 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. However, the amount reimbursed shall not 
exceed $30 per day, and the rental period for which reimbursement may 
be provided shall expire after seven days or on the date on which the 
delayed vehicle finally 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. However, the amount reimbursed shall 
not exceed $30 per day, and the rental period for which reimbursement 
may be provided shall expire after seven days or on the date on which 
the delayed vehicle finally arrives at the authorized destination 
(whichever occurs first).''.
    (e) Application of Amendments.--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 certifying that the Department of Defense has in 
place and operational a system to recover the cost to the Department 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 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 used to recover from 
commercial carriers the costs incurred by the Department under such 
amendments.

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

    (a) Loan Repayment Amounts.--Section 16302(c) of title 10, United 
States Code, is amended--
            (1) in paragraph (2), by striking out ``$3,000'' and 
        inserting in lieu thereof ``$10,000''; and
            (2) in paragraph (3), by striking out ``$20,000'' and 
        inserting in lieu thereof ``$50,000''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1998.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

SEC. 701. 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. 702. PLAN FOR PROVISION OF HEALTH CARE FOR MILITARY RETIREES AND 
              THEIR DEPENDENTS COMPARABLE TO HEALTH CARE PROVIDED UNDER 
              TRICARE PRIME.

    (a) Requirement To Submit Plan.--(1) The Secretary of Defense shall 
submit to Congress--
            (A) a plan under which the Secretary would guarantee 
        access, for covered beneficiaries described in subsection (b), 
        to health care that is comparable to the health care provided 
        to covered beneficiaries under chapter 55 of title 10, United 
        States Code, under TRICARE Prime (as defined in subsection (d) 
        of section 1097a of such title (as added by section 712)); and
            (B) a legislative proposal and cost estimate for 
        implementing the plan.
    (2) The plan required under paragraph (1)(A) shall provide for 
guaranteed access to such health care for such covered beneficiaries by 
October 1, 2001.
    (b) Covered Beneficiaries.--A covered beneficiary under this 
subsection is an individual who is a covered beneficiary under chapter 
55 of title 10, United States Code, who--
            (1) is a member or former member of the Armed Forces 
        entitled to retired pay under such title; or
            (2) is a dependent (as that term is defined in section 
        1072(2) of such chapter) of such a member.
    (c) Deadline for Submission.--The Secretary shall submit the plan 
required by subsection (a) not later than March 1, 1999.

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. PROCEDURES REGARDING ENROLLMENT IN TRICARE PRIME.

    (a) In General.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1097 the following new section:
``Sec. 1097a. Enrollment in TRICARE Prime: procedures
    ``(a) Automatic Enrollment of Certain Dependents.--The Secretary of 
Defense shall establish procedures under which dependents of members of 
the armed forces on active duty who reside in the catchment area of a 
military medical treatment facility shall be automatically enrolled in 
TRICARE Prime at the military medical treatment facility. The Secretary 
shall provide notice in writing to the member regarding such 
enrollment.
    ``(b) Automatic Continuation of Enrollment.--The Secretary of 
Defense shall establish procedures under which enrollment of covered 
beneficiaries in TRICARE Prime shall automatically continue until such 
time as the covered beneficiary elects to disenroll or is no longer 
eligible for enrollment.
    ``(c) Option for Retirees To Deduct Fee From Pay.--The Secretary of 
Defense shall establish procedures under which a retired member of the 
armed forces may elect to have any fees payable by the member for 
enrollment in TRICARE Prime withheld from the retired pay of the member 
(if pay is available to the member).
    ``(d) Definition of TRICARE Prime.--In this section, the term 
`TRICARE Prime' means the managed care option of the TRICARE program 
known as TRICARE Prime.''.
    (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. Enrollment in TRICARE Prime: procedures.''.
    (b) Deadline for Implementation.--The Secretary of Defense shall 
establish the procedures required under section 1097a of title 10, 
United States Code, as added by subsection (a), not later than April 1, 
1999.

                       Subtitle C--Other Matters

SEC. 721. INFLATION ADJUSTMENT OF PREMIUM AMOUNTS FOR DEPENDENTS DENTAL 
              PROGRAM.

    Section 1076a(b)(2) of title 10, United States Code, is amended by 
inserting after ``$20 per month'' the following: ``(in 1993 dollars, as 
adjusted for inflation in each year thereafter)''.

SEC. 722. 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. 723. AIR FORCE RESEARCH, DEVELOPMENT, TRAINING, AND EDUCATION ON 
              EXPOSURE TO CHEMICAL, BIOLOGICAL, AND RADIOLOGICAL 
              HAZARDS.

    (a) In General.--The Secretary of the Air Force is hereby 
authorized to--
            (1) conduct research on the health-related, environmental, 
        and ecological effects of exposure to chemical, biological, and 
        radiological hazards;
            (2) develop new risk-assessment methods and instruments 
        with respect to exposure to such hazards, including more 
        accurate risk assessment tools to support the Air Force 
        Enhanced Site Specific Risk Assessment; and
            (3) educate and train researchers with respect to exposure 
        to such hazards.
    (b) Activities To Be Conducted.--Research and development conducted 
under subsection (a) includes--
            (1) development of equipment to monitor soil and ground 
        water contamination and the impact of such contamination on the 
        biosystem chain;
            (2) implementation of a cross-sectional epidemiological 
        study of exposure to jet fuel; and
            (3) implementation of a health-risk assessment regarding 
        exposure to jet fuel.

SEC. 724. 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. 725. 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 entitled 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. 726. REQUIREMENT THAT MILITARY PHYSICIANS POSSESS UNRESTRICTED 
              LICENSES.

    (a) In General.--Section 1094(a) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
    ``(3) In the case of a physician under the jurisdiction of the 
Secretary of a military department, such physician may not provide 
health care as a physician under this chapter unless the current 
license of the physician is an unrestricted license which 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) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 727. ESTABLISHMENT OF MECHANISM FOR ENSURING COMPLETION BY 
              MILITARY PHYSICIANS OF CONTINUING MEDICAL EDUCATION 
              REQUIREMENTS.

    (a) In General.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1094 the following new section:
``Sec. 1094a. Mechanism for monitoring of completion of Continuing 
              Medical Education requirements
    ``The Secretary of Defense shall establish a mechanism for the 
purpose of ensuring that each person under the jurisdiction of the 
Secretary of a military department who provides health care under this 
chapter as a physician completes the Continuing Medical Education 
requirements applicable to the physician.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1094a. Mechanism for monitoring of completion of Continuing Medical 
                            Education requirements.''.
    (b) Effective Date.--Section 1094a of title 10, United States Code, 
as added by subsection (a), shall take effect on the date that is three 
years after the date of the enactment of this Act.

SEC. 728. PROPOSAL ON ESTABLISHMENT OF APPEALS PROCESS FOR CLAIMCHECK 
              DENIALS AND REVIEW OF CLAIMCHECK SYSTEM.

    Not later than November 1, 1998, the Secretary of Defense shall 
submit to Congress a proposal to establish an appeals process in cases 
of denials through the ClaimCheck computer software system of claims by 
civilian providers for payment for health care services provided under 
the TRICARE program.

SEC. 729. DEMONSTRATION PROJECT TO INCLUDE CERTAIN COVERED 
              BENEFICIARIES WITHIN FEDERAL EMPLOYEES HEALTH BENEFITS 
              PROGRAM.

    (a) 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 under which not more than 70,000 eligible covered 
beneficiaries described in subsection (b) and residing within one of 
the areas covered by the demonstration project may be enrolled in 
health benefits plans offered through the Federal Employees Health 
Benefits program under chapter 89 of title 5, United States Code.
    ``(b) Eligible Covered Beneficiaries.--(1) An eligible covered 
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) a dependent of such a member described in section 
        1076(b) or 1076(a)(2)(B) of this title;
            ``(C) a dependent of a member of the uniformed services who 
        died while on active duty for a period of more than 30 days; or
            ``(D) a dependent described in section 1076(b) or 
        1076(a)(2)(B) 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.
    ``(2) A covered beneficiary described in paragraph (1) shall not be 
required to satisfy any eligibility criteria specified in chapter 89 of 
title 5 as a condition for enrollment in health benefits plans offered 
through the Federal Employee Health Benefits program under the 
demonstration project.
    ``(3) Covered beneficiaries who are eligible to enroll in the 
Federal Employment Health Benefits program under chapter 89 of title 5 
as a result of civil service employment with the United States 
Government shall not be 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) a site that includes the catchment area of one or 
        more military medical treatment facilities;
            ``(2) a site that is not located in the catchment area of a 
        military medical treatment facility;
            ``(3) a site at which there is a military medical treatment 
        facility that is a Medicare Subvention Demonstration project 
        site under section 1896 of title XVIII of the Social Security 
        Act (42 U.S.C. 1395 et seq.); and
            ``(4) not more than one site for each TRICARE region.
    ``(d) Time for 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 covered beneficiaries shall, as provided under the 
agreement pursuant to subsection (a), be permitted to enroll in the 
demonstration project during the open season 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.--Eligible covered 
beneficiaries who participate in the demonstration project shall not be 
eligible to receive care at a military medical treatment facility.
    ``(f) Term of Enrollment.--(1) The minimum period of enrollment in 
a Federal Employees Health Benefits plan under this section shall be 
three years.
    ``(2) A beneficiary who elects to enroll in such a plan, and who 
subsequently discontinues enrollment in the plan before the end of the 
period described in paragraph (1), shall not be eligible to reenroll in 
the plan.
    ``(3) An eligible beneficiary enrolled in a Federal Employees 
Health Benefits plan under this section may change plans during the 
open enrollment period in the same manner as any other Federal 
Employees Health Benefits program beneficiary may change plans.
    ``(g) Separate Risk Pools; Charges.--(1) 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 
covered beneficiaries who enroll in such a plan in accordance with this 
section.
    ``(2) The Office shall determine total subscription charges for 
self only or for family coverage for covered beneficiaries who enroll 
in a health benefits plan under chapter 89 of title 5 in accordance 
with this section, which shall include premium charges paid to the plan 
and amounts described in section 8906(c) of title 5 for administrative 
expenses and contingency reserves.
    ``(h) Government Contributions.--The Secretary of Defense shall be 
responsible for the Government contribution for an eligible covered 
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 individual were an employee 
enrolled in the same health benefits plan and level of benefits.
    ``(i) Effect of Cancellation.--The cancellation by a covered 
beneficiary of coverage under the Federal Employee Health Benefits 
program shall be irrevocable during the term of the demonstration 
project.
    ``(j) Report Requirements.--(1) The Secretary of Defense and the 
Director of the Office of Personnel Management shall jointly submit to 
Congress a report containing the information described in paragraph 
(2)--
            ``(A) not later than the date that is 15 months after the 
        date that the Secretary begins to implement the demonstration 
        project; and
            ``(B) not later than the date that is 39 months after the 
        date that the Secretary begins to implement the demonstration 
        project.
    ``(2) The reports required by paragraph (1) shall include--
            ``(A) information on the number of eligible covered 
        beneficiaries who opt to participate in the demonstration 
        project;
            ``(B) an analysis of the percentage of eligible covered 
        beneficiaries who participate in the demonstration project as 
        compared to usage rates for similarly situated Federal 
        retirees;
            ``(C) information on eligible covered beneficiaries who opt 
        to participate in the demonstration project who did not have 
        Medicare Part B coverage before opting to participate in the 
        project;
            ``(D) an analysis of the enrollment rates and cost of 
        health services provided to eligible covered beneficiaries who 
        opt to participate in the demonstration project as compared 
        with other enrollees in the Federal Employees Health Benefits 
        Program under title 5, United States Code;
            ``(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 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 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 and 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 covered beneficiaries;
            ``(J) a description of any additional information that the 
        Secretary of Defense or the Director of the Office of Personnel 
        Management deem appropriate and that would assist Congress in 
        determining the viability of expanding the project to all 
        Medicare-eligible members of the uniformed services and their 
        dependents; and
            ``(K) recommendations on whether covered beneficiaries--
                    ``(i) should be given more than one chance to 
                enroll in a Federal Employees Health Benefits plan 
                under this section;
                    ``(ii) should be eligible to enroll in such a plan 
                only during the first year following the date that the 
                covered beneficiary becomes eligible to receive 
                hospital insurance benefits under title XVIII of the 
                Social Security Act; or
                    ``(iii) should be eligible to enroll in the plan 
                only during the two-year period following the date on 
                which the beneficiary first becomes eligible to enroll 
                in a Federal Employees Health Benefits plan under this 
                section.
    ``(k) Comptroller General Report.--Not later than 39 months after 
the Secretary begins to implement the demonstration project, the 
Comptroller General shall submit to Congress a report examining the 
same criteria required to be examined under subsection (j)(2).''.
    (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 covered 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 individuals who enroll, as part of the 
demonstration project under section 1108 of title 10, in a health 
benefits plan in accordance with section 8905(d) of this title, the 
Government contribution shall be determined in accordance with section 
1108(h) of title 10.''; and
            (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 described in subsection (b)(4) 
for beneficiaries who enroll, as part of the demonstration project 
under section 1108 of title 10, in accordance with section 8905(d) of 
this title shall be paid as provided in section 1108(h) of title 10.''.
    (c) Disposal of National Defense Stockpile Materials To Offset 
Costs.--
            (1) Disposal required.--Subject to paragraphs (2) and (3), 
        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 amounts equal to--
                    (A) $89,000,000 during fiscal year 1999;
                    (B) $104,000,000 during fiscal year 2000;
                    (C) $95,000,000 during fiscal year 2001; and
                    (D) $72,000,000 during fiscal year 2002.
            (2) Limitation on disposal quantity.--The total quantities 
        of materials authorized for disposal by the President under 
        paragraph (1) may not exceed the amounts set forth in the 
        following table:
      

                     Authorized Stockpile Disposals                     
------------------------------------------------------------------------
   Material for disposal                              Quantity          
------------------------------------------------------------------------
Chromium Ferroally Low Carbons............  92,000 short tons           
Diamond Stones............................  3,000,000 carats            
Palladium.................................  1,227,831 troy ounces       
Platinum..................................  439,887 troy ounces         
------------------------------------------------------------------------

            (3) Minimization of disruption and loss.--The President may 
        not dispose of materials under paragraph (1) to the extent that 
        the disposal will result in--
                    (A) undue disruption of the usual markets of 
                producers, processors, and consumers of the materials 
                proposed for disposal; or
                    (B) avoidable loss to the United States.
            (4) 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 under paragraph (1) shall be--
                    (A) deposited into the general fund of the 
                Treasury; and
                    (B) used to offset the revenues that will be lost 
                as a result of the implementation of the demonstration 
                project under section 1108 of title 10, United States 
                Code (as added by subsection (a)).
            (5) Relationship to other disposal authority.--The disposal 
        authority provided in paragraph (1) is new disposal authority 
        and is in addition to, and shall not affect, any other disposal 
        authority provided by law regarding materials specified in the 
        table in paragraph (2).

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

SEC. 801. LIMITATION ON PROCUREMENT OF AMMUNITION AND COMPONENTS.

    (a) Limitation.--Section 2534(a) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
            ``(6) Ammunition.--Ammunition or ammunition components.''.
    (b) Effective Date.--Paragraph (6) of section 2534(a) of title 10, 
United States Code, as added by subsection (a), shall apply with 
respect to contracts entered into after September 30, 1998.

SEC. 802. ACQUISITION CORPS ELIGIBILITY.

    Section 1732(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) The requirement of subsection (b)(1)(A) shall not apply to an 
employee who served in an Acquisition Corps in a position within grade 
GS-13 or above of the General Schedule and who is placed in another 
position which is in a grade lower than GS-13 of the General Schedule, 
or whose position is reduced in grade to a grade lower than GS-13 of 
the General Schedule, as a result of reduction-in-force procedures, the 
realignment or closure of a military installation, or another reason 
other than for cause.''.

SEC. 803. AMENDMENTS 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''; and
            (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''.
    (b) Additional Covered Property and Services.--Subsection (b) of 
such section is amended--
            (1) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively;
            (2) by inserting before paragraph (2), as so redesignated, 
        the following new paragraph:
            ``(1) Small arms end items.'';
            (3) in paragraph (2), as so redesignated, by inserting 
        before the period the following: ``, if those parts are 
        manufactured under a contract with the Department of Defense to 
        produce the end item''; and
            (4) by adding after paragraph (3) the following new 
        paragraph:
            ``(4) Repair parts consisting of barrels, receivers, and 
        bolts for small arms, whether or not the small arms are in 
        production under a contract with the Department of Defense at 
        the time of production of such repair parts.''.
    (c) Relationship to Other Provisions of Law.--Such section is 
further amended by adding at the end the following new subsection:
    ``(d) Relationship to Other Provisions.--(1) If a procurement under 
subsection (a) is a procurement of a commercial item, the Secretary 
may, notwithstanding section 2306(b)(1)(B) of this title, require the 
submission of certified cost or pricing data under section 2306(a) of 
this title.
    ``(2) Subsection (a) is a requirement for purposes of section 
2304(c)(5) of this title.''.

SEC. 804. 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. 805. STUDY ON INCREASE IN MICRO-PURCHASE THRESHOLD.

    (a) Study Requirement.--The Comptroller General, in consultation 
with the Administrator for Federal Procurement Policy, the 
Administrator of the Small Business Administration, and the Secretary 
of Defense, shall conduct a study to assess the impact of the current 
micro-purchase program and the advisability of increasing the micro-
purchase threshold under section 32 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 428) to $10,000.
    (b) Matters Covered.--(1) The assessment of the impact of the 
current micro-purchase program shall be based on purchase activity 
under the micro-purchase threshold conducted during the two-year period 
beginning on February 10, 1996 (the date of the enactment of the 
Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106)). 
The assessment shall include, to the extent practicable--
            (A) a general breakdown of the supplies, services, and 
        construction purchased; and
            (B) an evaluation of the rate of small business 
        participation, economic concentration, and competition.
    (2) The assessment of the advisability of increasing the micro-
purchase threshold shall include a comparison of any adverse impact of 
an increased micro-purchase threshold (such as on small business 
participation) to benefits (such as cost savings, including 
administrative cost savings, savings from a reduced acquisition 
workforce and logistics structure, and reduction in acquisition lead 
time).
    (c) Report.--Not later than 30 days after completion of the study, 
the Comptroller General shall submit a report on the results of the 
study to--
            (1) the Committees on Armed Services and on Small Business 
        of the Senate; and
            (2) the Committees on National Security and on Small 
        Business of the House of Representatives.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

SEC. 901. FURTHER REDUCTIONS IN DEFENSE ACQUISITION WORKFORCE.

    (a) Reduction in Defense Acquisition Workforce.--Chapter 87 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 1765. Limitation on number of personnel
    ``(a) Limitation.--Effective October 1, 2001, the number of defense 
acquisition personnel may not exceed the baseline number reduced by 
70,000.
    ``(b) Phased Reduction.--The number of defense acquisition 
personnel--
            ``(1) as of October 1, 1999, may not exceed the baseline 
        number reduced by 25,000; and
            ``(2) as of October 1, 2000, may not exceed the baseline 
        number reduced by 50,000.
    ``(c) Baseline Number.--For purposes of this section, the baseline 
number is the total number of defense acquisition personnel as of 
October 1, 1998.
    ``(d) Defense Acquisition Personnel Defined.--In this section, the 
term `defense acquisition 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).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter V of such chapter is amended by adding at the end the 
following new item:

``1765. Limitation on number of personnel.''.

SEC. 902. 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. 903. REVISION TO DEFENSE DIRECTIVE RELATING TO MANAGEMENT 
              HEADQUARTERS AND HEADQUARTERS SUPPORT ACTIVITIES.

    Not later than October 1, 1999, the Secretary of Defense shall 
issue a revision to Department of Defense Directive 5100.73, entitled 
``Department of Defense Management Headquarters and Headquarters 
Support Activities'', so as to incorporate in that directive the 
following:
            (1) A threshold specified by command (or other 
        organizational element) such that any headquarters activity 
        below the threshold is not considered for the purpose of the 
        directive to be a management headquarters or headquarters 
        support activity.
            (2) A definition of the term ``management headquarters and 
        headquarters support activities'' that (A) is based upon 
        function (rather than organization), and (B) includes any 
        activity (other than an operational activity) that reports 
        directly to such an activity.
            (3) Uniform application of those definitions throughout the 
        Department of Defense.

SEC. 904. UNDER SECRETARY OF DEFENSE FOR POLICY TO HAVE RESPONSIBILITY 
              WITH RESPECT TO EXPORT CONTROL ACTIVITIES OF THE 
              DEPARTMENT OF DEFENSE.

    (a) Functions of the Under Secretary.--Section 134(b)(1) of title 
10, United States Code, is amended by adding at the end the following 
new sentence: ``The Under Secretary shall have responsibility for 
overall supervision of activities of the Department of Defense relating 
to export controls.''.
    (b) Implementation Report.--Not later than 30 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 the implementation of the amendment made by 
subsection (a). The report shall include--
            (1) a description of any organizational changes within the 
        Department of Defense to be made in order to implement that 
        amendment; and
            (2) a description of the role of the Chairman of the Joint 
        Chiefs of Staff with respect to export control activities of 
        the Department following the implementation of the amendment 
        made by subsection (a) and how that role compares to the 
        practice in effect before such implementation.
    (c) Effective Date.--The amendment made by subsection (a) shall be 
implemented not later than 45 days after the date of the enactment of 
this Act.

SEC. 905. 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 force 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 address 
        adequately issues pertaining to the development of joint 
        forces.
            (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 forces.
    (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;
                    (C) establishing a 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 
                headquarters to conduct joint experimentation and to 
                integrate the similar efforts of the Armed Forces; and
                    (E) establishing an Assistant Secretary of Defense 
                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. 906. 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:
            ``(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 review all 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) Information on Service Contracts.--In carrying out the annual 
review under subsection (c) of Department of Defense services expected 
to be performed as contract services during the next fiscal year, the 
Secretary (acting through the Under Secretary (Comptroller)) shall 
conduct an assessment of the total non-Federal effort that resulted 
from the performance of all contracts for such services during the 
preceding fiscal year and the total non-Federal effort that resulted, 
or that is expected to result, from the performance of all contracts 
for such services during the current fiscal year and the next fiscal 
year. The assessment shall include determination of the following for 
each such year:
            ``(1) The amount expended or expected to be expended for 
        non-Federal contract services, shown for the Department of 
        Defense as a whole and displayed by contract services object 
        class for each DOD organization.
            ``(2) The amount expended or expected to be expended for 
        contract services competed under OMB Circular A-76 or a similar 
        process, shown for the Department of Defense as a whole and 
        displayed by contract services object class for each DOD 
        organization.
            ``(3) The number of private sector workyears performed or 
        expected to be performed in connection with the performance of 
        non-Federal contract services, shown for the Department of 
        Defense as a whole and displayed by contract services object 
        class for each DOD organization.
            ``(4) Any other information that the Secretary (acting 
        through the Under Secretary) determines to be relevant and of 
        value.
    ``(e) 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 assessment 
under subsection (d).
    ``(f) Assessment by Comptroller General.--(1) The Comptroller 
General shall conduct a review of the report of the Secretary of 
Defense under subsection (e) 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 (e) 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).
    ``(g) 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 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 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 `DOD organization' means--
                    ``(A) the Office of the Secretary of Defense;
                    ``(B) each military department;
                    ``(C) the Joint Chiefs of Staff and the unified and 
                specified commands;
                    ``(D) each Defense Agency; and
                    ``(E) each Department of Defense Field Activity.
            ``(5) The term `private sector workyear' means an amount of 
        labor equivalent to the total number of hours of labor that an 
        individual employed on a full-time equivalent basis by the 
        Federal Government performs in a given year.''.
    (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 review all 
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 (g)(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 $500,000,000.

SEC. 907. 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. 908. REPEAL OF CERTAIN REQUIREMENTS RELATING TO INSPECTOR GENERAL 
              INVESTIGATIONS OF REPRISAL COMPLAINTS.

    (a) Repeal of Requirement of Notice That Investigation Will Take 
More Than 90 Days.--Subsection (e) of section 1034 of title 10, United 
States Code, is amended--
            (1) by striking out paragraph (3);
            (2) by redesignating paragraph (4) as paragraph (3).
    (b) Repeal of Requirement for Post-Disposition Interview With 
Complainant.--Such section is further amended by striking out 
subsection (h).

SEC. 909. CONSULTATION WITH COMMANDANT OF THE MARINE CORPS REGARDING 
              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 regarding 
              Marine Corps aviation
    ``The Secretary of the Navy shall require that the views of the 
Commandant of the Marine Corps be obtained before a milestone decision 
or other major decision is made by an element of the Department of the 
Navy outside the Marine Corps in a procurement matter, a research, 
development, test, and evaluation matter, or a depot-level maintenance 
matter that 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 regarding 
                            Marine Corps aviation.''.

SEC. 910. ANNUAL REPORT ON INDIVIDUALS EMPLOYED IN PRIVATE SECTOR WHO 
              PROVIDE SERVICES UNDER CONTRACT FOR THE DEPARTMENT OF 
              DEFENSE.

    (a) In General.--(1) Chapter 131 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 2222. Information system to track quantity and value of non-
              Federal services
    ``(a) Implementation of System.--The Secretary of Defense shall 
implement an information system for the collection and reporting of 
information by the Secretaries of the military departments, Directors 
of the Defense Agencies, and heads of other DOD organizations 
concerning the quantity and value of non-Federal services they 
acquired. The system shall be designed to provide information, for the 
Department of Defense as a whole and for each DOD organization, 
concerning the following:
            ``(1) The number of workyears performed by individuals 
        employed by non-Federal entities providing goods and services 
        under contracts of the Department of Defense.
            ``(2) The labor costs to the Department of Defense under 
        the contracts associated with the performance of those 
        workyears.
            ``(3) The value of the goods and services procured by the 
        Department of Defense from non-Federal entities.
            ``(4) The appropriations associated with the contracts for 
        those goods and services.
            ``(5) The Federal supply class or service code associated 
        with those contracts.
            ``(6) The major organization element contracting for the 
        goods and services.
    ``(b) Annual Reports to Secretary of Defense.--Not later than 
February 1 of each year, the head of each DOD organization shall submit 
to the Secretary of Defense a report detailing the quantity and value 
of non-Federal services obtained by that organization. The report shall 
be developed from the system under subsection (a) and shall contain the 
following:
            ``(1) The total amount paid during the preceding fiscal 
        year to obtain goods and services provided under contracts, 
        expressed in dollars and as a percentage of the total budget of 
        that organization, and shown by appropriation account or 
        revolving fund, by Federal supply class or service code, and by 
        any major organizational element under the authority of the 
        head of that organization.
            ``(2) The total number of workyears performed during the 
        preceding fiscal year by employees of non-Federal entities 
        providing goods and services under contract, shown by 
        appropriation account or revolving fund, by Federal supply 
        class or service code, and by any major organizational element 
        under the authority of the head of that organization.
            ``(3) A detailed discussion of the methodology used under 
        the system to derive the data provided in the report.
    ``(c) Annual Report to Congress.--Not later than February 15 of 
each year, the Secretary of Defense shall submit to Congress a report 
containing all of the information concerning the quantity and value of 
non-Federal services obtained by the Department of Defense as shown in 
the reports submitted to the Secretary for that year under subsection 
(b). The Secretary shall include in that report the information 
provided by each DOD organization under subsection (b) without revision 
from the manner in which it is submitted to the Secretary by the head 
of that organization.
    ``(d) Development of Information.--(1) The Secretary of Defense may 
prescribe regulations to require contractors providing goods and 
services to the Department of Defense to include on invoices submitted 
to the Secretary or head of a DOD organization responsible for such 
contracts the number of hours of labor attributable to the contract for 
which the invoice is submitted.
    ``(2) The Secretary shall require that each DOD organization 
provide information for the information system under subsection (a) and 
the annual report under subsection (b) in as uniform manner as 
practicable.
    ``(e) Assessment by Comptroller General.--(1) The Comptroller 
General shall conduct a review of the report of the Secretary of 
Defense under subsection (c) each year and shall--
            ``(A) assess the appropriateness of the methodology used by 
        the Secretary and the DOD organizations in deriving the 
        information provided to Congress in the report; and
            ``(B) assess the accuracy of the information provided to 
        Congress in the report.
    ``(2) Not later than 90 days after the date on which the Secretary 
submits to Congress the report required under subsection (e) 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).
    ``(e) Definitions.--In this section:
            ``(1) The term `DOD organization' means--
                    ``(A) the Office of the Secretary of Defense;
                    ``(B) each military department;
                    ``(C) the Joint Chiefs of Staff and the unified and 
                specified commands;
                    ``(D) each Defense Agency; and
                    ``(E) each Department of Defense Field Activity.
            ``(2) The term `workyear' means the private sector 
        equivalent to the total number of hours of labor that an 
        individual employed on a full-time equivalent basis by the 
        Federal Government performs in a given year.
            ``(3) The term `contract' has the meaning given such term 
        in parts 34, 35, 36, and 37 of title 48, Code of Federal 
        Regulations.
            ``(4) The term `labor costs' means all compensation costs 
        for personal services as defined in part 31 of title 48, Code 
        of Federal Regulations.
            ``(5) The term `major organizational element' means an 
        organization within a Defense Agency or military department 
        that is headed by a Senior Executive Service official (or 
        military equivalent) and that contains a contract 
        administration office (as defined in part 2 of title 48, Code 
        of Federal Regulations).
            ``(6) The term `Federal supply class or service code' is 
        the functional code prescribed by section 253.204-70 of the 
        Department of Defense Federal Acquisition Regulation 
        Supplement, as determined by the first character of such code.
    ``(f) Construction of Section.--The Secretary of Defense shall 
ensure that the provisions of this section are construed broadly so as 
enable accurate and full accounting for the volume and costs associated 
with contractor support of the Department of Defense.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2222. Information system to track quantity and value of non-Federal 
                            services.''.
    (b) Effective Date.--The system required by subsection (a) of 
section 2222 of title 10, United States Code, as added by subsection 
(a), shall be implemented not later than one year after the date of the 
enactment of this Act.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

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

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex prepared by 
the Committee on National Security of the House of Representatives to 
accompany 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. OUTLAY LIMITATIONS.

    (a) Department of Defense.--The Secretary of Defense shall ensure 
that outlays of the Department of Defense during fiscal year 1999 from 
amounts appropriated or otherwise available to the Department of 
Defense for military functions of the Department of Defense (including 
military construction and military family housing) do not exceed 
$252,650,000,000.
    (b) Department of Energy.--The Secretary of Energy shall ensure 
that outlays of the Department of Energy during fiscal year 1999 from 
amounts appropriated or otherwise made available to the Department of 
Energy for national security programs of that Department do not exceed 
$11,772,000,000.

                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 USS IOWA (BB-61) and the USS WISCONSIN (BB-64).

SEC. 1012. TRANSFER OF USS NEW JERSEY.

    The Secretary of the Navy shall strike the USS 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. 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. 1014. 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.

SEC. 1015. LONG-TERM CHARTER CONTRACTS FOR ACQUISITION OF AUXILIARY 
              VESSELS FOR THE DEPARTMENT OF DEFENSE.

    (a) Program Authorization.--Chapter 631 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 7233. Auxiliary vessels: authority for long-term charter 
              contracts
    ``(a) Authorized Contracts.--After September 30, 1998, the 
Secretary of the Navy, subject to subsection (b), may enter into a 
contract for the long-term lease or charter of a newly built surface 
vessel, under which the contractor agrees to provide a crew for the 
vessel for the term of the long-term lease or charter, for any of the 
following:
            ``(1) The combat logistics force of the Navy.
            ``(2) The strategic sealift program of the Navy.
            ``(3) Other auxiliary support vessels for the Department of 
        Defense.
    ``(b) Contracts Required To Be Authorized by Law.--A contract may 
be entered into under this section with respect to specific vessels 
only if the Secretary is specifically authorized by law to enter into 
such a contract with respect to those vessels.
    ``(c) Funds for Contract Payments.--The Secretary may make payments 
for contracts entered into under this section using funds available for 
obligation during the fiscal year for which the payments are required 
to be made. Any such contract shall provide that the United States will 
not be required to make a payment under the contract (other than a 
termination payment, if required) before October 1, 2000.
    ``(d) Term of Contract.--In this section, the term `long-term lease 
or charter' means a lease, charter, service contract, or conditional 
sale agreement with respect to a vessel the term of which (including 
any option period) is for a period of 20 years or more.
    ``(e) Option To Buy.--A contract entered into under the authority 
of this section may contain options for the United States to purchase 
one or more of the vessels covered by the contract at any time during, 
or at the end of, the contract period (including any option period) 
upon payment of an amount not in excess of the unamortized portion of 
the cost of the vessels plus amounts incurred in connection with the 
termination of the financing arrangements associated with the vessels.
    ``(f) Domestic Construction.--The Secretary shall require in any 
contract entered into under this section that each vessel to which the 
contract applies--
            ``(1) shall have been constructed in a shipyard within the 
        United States; and
            ``(2) upon delivery, shall be documented under the laws of 
        the United States.
    ``(g) Vessel Crewing.--The Secretary shall require in any contract 
entered into under this section that the crew of any vessel to which 
the contract applies be comprised of private sector commercial 
mariners.
    ``(h) Domestic Construction Requirement for Certain Leases of 
Vessels.--(1) Notwithstanding section 2400 or 2401a of this title or 
any other provision of law, the Secretary of Defense may not enter into 
a contract for the lease or charter of a vessel described in paragraph 
(2) for a contract period in excess of 17 months (inclusive of any 
option periods) unless the vessel is constructed in a shipyard in the 
United States.
    ``(2) Paragraph (1) applies to vessels of the following types:
            ``(A) Auxiliary support vessel.
            ``(B) Strategic sealift vessel.
            ``(C) Tank vessel.
            ``(D) Combat logistics force vessel.
    ``(i) Contingent Waiver of Other Provisions of Law.--A contract 
authorized by this section may be entered into without regard to 
section 2401 or 2401a of this title if the Secretary of Defense makes 
the following findings with respect to that contract:
            ``(1) The need for the vessels or services to be provided 
        under the contract is expected to remain substantially 
        unchanged during the contemplated contract or option period.
            ``(2) There is a reasonable expectation that throughout the 
        contemplated contract or option period the Secretary of the 
        Navy (or, if the contract is for services to be provided to, 
        and funded by, another military department, the Secretary of 
        that military department) will request funding for the contract 
        at the level required to avoid contract cancellation.
            ``(3) The use of such contract or the exercise of such 
        option is in the interest of the national defense.
    ``(j) Source of Funds for Termination Liability.--If a contract 
entered into under this section is terminated, the costs of such 
termination may be paid from--
            ``(1) amounts originally made available for performance of 
        the contract;
            ``(2) amounts currently available for operation and 
        maintenance of the type of vessels or services concerned and 
        not otherwise obligated; or
            ``(3) funds appropriated for those costs.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``7233. Auxiliary vessels: authority for long-term charter 
                            contracts.''.

        Subtitle C--Matters Relating to Counter Drug Activities

SEC. 1021. DEPARTMENT OF DEFENSE SUPPORT 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 2000''.
    (b) Types of Support.--Subsection (b)(4) of such section is amended 
by inserting before the period at the end the following: ``conducted by 
the Department of Defense or a Federal, State, or local law enforcement 
agency, or a foreign law enforcement agency in the case of counter-drug 
activities outside the United States''.
    (c) Unspecified Minor Military Construction Projects.--Such section 
is further amended by adding at the end the following new section:
    ``(h) Unspecified Minor Military Construction Projects.--Section 
2805 of title 10, United States Code, shall apply with respect to any 
unspecified minor military construction project carried out using the 
authority provided under this section.''.

SEC. 1022. SUPPORT FOR COUNTER-DRUG OPERATION CAPER FOCUS.

    (a) Support Required.--During fiscal year 1999, the Secretary of 
Defense shall make available such surface vessels of the Navy and 
maritime patrol aircraft and crews 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.
    (b) Fiscal Year 1999 Funding.--Of the amount authorized to be 
appropriated pursuant to section 301(20) for drug interdiction and 
counter-drug activities, $24,400,000 shall be available only for the 
purpose of conducting the counter-drug operation known as Caper Focus.

SEC. 1023. SENSE OF THE CONGRESS REGARDING ESTABLISHMENT OF COUNTER-
              DRUG CENTER IN PANAMA.

    In anticipation of the closure of all United States military 
installations in Panama by December 31, 1999, it is the sense of the 
Congress that the Secretary of Defense, in consultation with the 
Secretary of State, should continue negotiations with the Government of 
Panama for the establishment in Panama of a counter-drug center to be 
used by the Armed Forces of the United States in cooperation with 
Panamanian forces and military personnel of other friendly nations.

SEC. 1024. ASSIGNMENT OF MEMBERS OF THE ARMED FORCES TO ASSIST 
              IMMIGRATION AND NATURALIZATION SERVICE AND CUSTOMS 
              SERVICE.

    (a) Assignment Authority of Secretary of Defense.--Chapter 18 of 
title 10, United States Code, is amended by inserting after section 374 
the following new section:
``Sec. 374a. Assignment of members to assist border patrol and control
    ``(a) Assignment Authorized.--The Secretary of Defense may assign 
members of the armed forces to assist--
            ``(1) the Immigration and Naturalization Service in 
        preventing the entry of terrorists, drug traffickers, and 
        illegal aliens into the United States; and
            ``(2) the United States Customs Service in the inspection 
        of cargo, vehicles, and aircraft at points of entry into the 
        United States.
    ``(b) Request for Assignment.--The assignment of members of the 
armed forces under subsection (a) may only occur--
            ``(1) at the request of the Attorney General, in the case 
        of an assignment to the Immigration and Naturalization Service; 
        and
            ``(2) at the request of the Secretary of the Treasury, in 
        the case of an assignment to the United States Customs Service.
    ``(c) Training Program.--If the assignment of members of the armed 
forces is requested by the Attorney General or the Secretary of the 
Treasury, the Attorney General or the Secretary of the Treasury (as the 
case may be), together with the Secretary of Defense, shall establish a 
training program to ensure that members to be assigned receive general 
instruction regarding issues affecting law enforcement in the border 
areas in which the members will perform duties under the assignment. A 
member may not be deployed at a border location pursuant to an 
assignment under subsection (a) until the member has successfully 
completed the training program.
    ``(d) Conditions on Use.--(1) Whenever a member of the armed forces 
who is assigned under subsection (a) to assist the Immigration and 
Naturalization Service or the United States Customs Service is 
performing duties at a border location pursuant to the assignment, a 
civilian law enforcement officer from the agency concerned shall 
accompany the member.
    ``(2) Nothing in this section shall be construed to--
            ``(A) authorize a member assigned under subsection (a) to 
        conduct a search, seizure, or other similar law enforcement 
        activity or to make an arrest; and
            ``(B) supersede section 1385 of title 18 (popularly known 
        as the `Posse Comitatus Act').
    ``(e) Notification Requirements.--The Attorney General or the 
Secretary of the Treasury (as the case may be) shall notify the 
Governor of the State in which members of the armed forces are to be 
deployed pursuant to an assignment under subsection (a), and local 
governments in the deployment area, of the deployment of the members to 
assist the Immigration and Naturalization Service or the United States 
Customs Service (as the case may be) and the types of tasks to be 
performed by the members.
    ``(f) Reimbursement Requirement.--Section 377 of this title shall 
apply in the case of members of the armed forces assigned under 
subsection (a).
    ``(g) Termination of Authority.--No assignment may be made or 
continued under subsection (a) after September 30, 2001.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
374 the following new item:

``374a. Assignment of members to assist border patrol and control.''.

SEC. 1025. RANDOM DRUG TESTING OF DEPARTMENT OF DEFENSE EMPLOYEES.

    (a) Expansion of Existing Program.--(1) Chapter 81 of title 10, 
United States Code, is amended by inserting after section 1581 the 
following new section:
``Sec. 1582. Random testing of employees for use of illegal drugs
    ``(a) Program Required.--The Secretary of Defense shall expand the 
drug testing program required for civilian employees of the Department 
of Defense by Executive Order 12564 (51 Fed. Reg. 32889; September 15, 
1986) to include the random testing on a controlled and monitored basis 
of all such employees for the use of illegal drugs.
    ``(b) Testing Procedures and Personnel Actions.--The requirements 
of Executive Order 12564 regarding drug testing procedures and the 
personnel actions to be taken with respect to any employee who is found 
to use illegal drugs shall apply to the expanded drug testing program 
required by this section.
    ``(c) Notification to New Employees.--The Secretary of Defense 
shall notify persons employed after the date of the enactment of this 
section that, as a condition of employment by the Department of 
Defense, the person may be required to submit to mandatory random drug 
testing under the expanded drug testing program required by this 
section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1581 the 
following new item:

``1582. Random testing of employees for use of illegal drugs.''.
    (b) Funding.--No additional funds are authorized to be appropriated 
on account of the amendment made by subsection (a). The Secretary of 
Defense shall carry out the expanded drug testing program for civilian 
employees of the Department of Defense under section 1582 of title 10, 
United States Code, as added by subsection (a), using amounts otherwise 
provided for the program.

       Subtitle D--Miscellaneous Report Requirements and Repeals

SEC. 1031. ANNUAL REPORT ON RESOURCES ALLOCATED TO SUPPORT AND MISSION 
              ACTIVITIES.

    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 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 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 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 10 years.''.

SEC. 1032. 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 Congress 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, including the Joint Compliance and Inspection 
Commission, the Joint Verification Commission, the Open Skies 
Consultative Commission, the Standing Consultative Commission, and the 
Joint Consultative Group.

SEC. 1033. 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.

                       Subtitle E--Other Matters

SEC. 1041. CLARIFICATION OF LAND CONVEYANCE AUTHORITY, ARMED FORCES 
              RETIREMENT HOME, DISTRICT OF COLUMBIA.

    (a) Sale Required.--Subsection (a) of section 1053 of the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2650) is amended--
            (1) by striking out ``, by sale or otherwise,''; and
            (2) by adding at the end the following new sentence: ``The 
        conveyance of the real property shall be made by sale to the 
        highest bidder, except that the purchase price may not be less 
        than the fair market value of the parcel.''.
    (b) Conforming Amendment.--Subsection (b)(1) of such section is 
amended by striking out ``the disposal'' and inserting in lieu thereof 
``the sale''.

SEC. 1042. CONTENT OF NOTICE REQUIRED TO BE PROVIDED GARNISHEES BEFORE 
              GARNISHMENT OF PAY OR BENEFITS.

    (a) Authorization of Alternative To Providing Copy of Notice or 
Service Received by the Secretary.--(1) 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 (c) 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) 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 (c) in lieu of sending with that notice a copy 
(otherwise required pursuant to the second parenthetical phrase in 
section 5520a(c) of the title 5, United States Code) of the legal 
process received by the DOD section 5520a agent with respect to that 
individual.
    (b) 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.
    (c) Alternative Requirements.--The information referred to in 
subsection (a) 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 contact for the purpose of obtaining such a 
        copy.
    (d) Report.--Not later than April 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. 1043. TRAINING OF SPECIAL OPERATIONS FORCES WITH FRIENDLY FOREIGN 
              FORCES.

    (a) Training Expenses for Which Payment May Be Made.--Subsection 
(a)(1) of section 2011 of title 10, United States Code, is amended by 
striking out ``and other security forces''.
    (b) Purpose of Training.--Subsection (b) of such section is amended 
by striking out ``primary''.
    (c) Regulations.--Subsection (c) of such section 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.''.
    (d) 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. 1044. PROHIBITION ON ASSIGNMENT OF UNITED STATES FORCES TO UNITED 
              NATIONS RAPIDLY DEPLOYABLE MISSION HEADQUARTERS.

    No funds available to the Department of Defense may be used to 
assign or detail any member of the Armed Forces to duty with the United 
Nations Rapidly Deployable Mission Headquarters (or any similar United 
Nations military operations headquarters).

SEC. 1045. 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.

SEC. 1046. REQUIREMENT TO PROVIDE BURIAL FLAGS WHOLLY PRODUCED IN THE 
              UNITED STATES.

    (a) Requirement.--Section 2301 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
    ``(f)(1) Any flag furnished pursuant to this section shall be 
wholly produced in the United States.
    ``(2) For the purpose of paragraph (1), the term `wholly produced' 
means--
            ``(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.--The amendment made by subsection (a) shall 
apply to flags furnished by the Secretary of Veterans Affairs under 
section 2301 of title 38, United States Code, after September 30, 1998.

SEC. 1047. 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 investigate the grounding of the 174th Fighter Wing of 
the New York Air National Guard and the subsequent dismissal, demotion, 
or reassignment of 12 decorated combat pilots of that wing.
    (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. 1048. FACILITATION OF OPERATIONS AT EDWARDS AIR FORCE BASE, 
              CALIFORNIA.

    (a) Facilitation of Operations.--The Secretary of the Air Force 
may, in order to facilitate implementation of the Edwards Air Force 
Base Alliance Agreement, authorize equipment, facilities, personnel, 
and other resources available to the Air Force at Edwards Air Force 
Base to be used in such manner as the Secretary considers appropriate 
for the efficient operation and support of either or both of the 
organizations that are parties to that agreement without regard to the 
provisions of section 1535 of title 31, United States Code (and any 
regulations of the Department of Defense prescribed under that 
section).
    (b) Preservation of Financial Integrity of Funds.--The Secretary 
shall carry out subsection (a) so as to preserve the financial 
integrity of funds appropriated to the Department of the Air Force and 
the National Aeronautics and Space Administration.
    (c) Edwards Air Force Base Alliance Agreement.--For purposes of 
this section, the term ``Edwards Air Force Base Alliance Agreement'' 
means the agreement entered into in May 1995, between the commander of 
the Air Force Flight Test Center and the director of the Dryden Flight 
Research Center of the National Aeronautics and Space Administration, 
both of which are located at Edwards Air Force Base, California, to 
develop and sustain a working relationship between the two 
organizations to improve the efficiency of the operations of both 
organizations while preserving the unique missions of both 
organizations.
    (d) Delegation.--The authority of the Secretary under this section 
may be delegated, at the Secretary's discretion, to the commander of 
the Air Force Flight Test Center, Edwards Air Force Base, California.
    (e) Report.--Not later than May 1, 1999, the Secretary of Defense 
and the Administrator of the National Aeronautics and Space 
Administration shall submit to Congress a joint report on the 
implementation of this section.

SEC. 1049. SENSE OF THE CONGRESS CONCERNING TAX TREATMENT OF PRINCIPAL 
              RESIDENCE OF MEMBERS OF ARMED FORCES WHILE AWAY FROM HOME 
              ON ACTIVE DUTY.

    It is the sense of the Congress that a member of the Armed Forces 
should be treated as using property as a principal residence during any 
period that the member (or the member's spouse) is serving on extended 
active duty with the Armed Forces, but only if the member used the 
property as a principal residence for any period during or before the 
period of extended active duty.

SEC. 1050. OPERATION, MAINTENANCE, AND UPGRADE OF AIR FORCE SPACE 
              LAUNCH FACILITIES.

    Funds appropriated pursuant to the authorizations of appropriations 
in this Act for the operation, maintenance, or upgrade of the Western 
Space Launch Facilities of the Department of the Air Force (Program 
Element 35181F) and the Eastern Space Launch Facilities of the 
Department of the Air Force (Program Element 351821F) may not be 
obligated for any other purpose.

SEC. 1051. SENSE OF THE CONGRESS CONCERNING NEW PARENT SUPPORT PROGRAM 
              AND MILITARY FAMILIES.

    (a) Sense of the Congress.--It is the sense of the 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 programs throughout 
        the Marine Corps, the Navy, and the Army; and
            (3) in light of the pressures and strains placed upon 
        military families and the benefits of the New Parent Support 
        Program in helping these high ``at-risk'' families, the 
        Department of Defense should seek ways to ensure that in future 
        fiscal years funds are made available for those programs for 
        each of the Armed Forces 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 each service has 
        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 services for each of fiscal years 1994 through 1998 and 
        the amount projected to be provided for those programs for 
        fiscal year 1999 and, if the amount provided for any of those 
        programs for any such year is less that the amount needed to 
        fully fund for that program for that year, an explanation of 
        the reasons for the shortfall.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

SEC. 1101. 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. 1102. 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. 1103. 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. 1104. 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. 1105. ELIMINATION OF RETAINED PAY AS BASIS FOR DETERMINING 
              LOCALITY-BASED ADJUSTMENTS.

    Section 5302(8)(B) of title 5, United States Code, is amended by 
inserting ``(except a rate retained under subsection (a)(2) of that 
section)'' after ``section 5363''.

SEC. 1106. 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.''.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

SEC. 1201. LIMITATION ON FUNDS FOR PEACEKEEPING IN THE REPUBLIC OF 
              BOSNIA AND HERZEGOVINA.

    (a) Limitation.--The Secretary of Defense may not expend from funds 
appropriated to the Department of Defense for fiscal year 1999 more 
than $1,858,600,000 for the purpose of providing for United States 
participation in Bosnia peacekeeping operations.
    (b) Emergency Exception.--The Secretary may increase the amount 
under subsection (a) by not more than $100,000,000 for the sole purpose 
of safeguarding United States forces in the event of hostilities, 
imminent hostilities, or other grave danger to their well-being. Such 
an increase may become effective only upon submission by the Secretary 
to Congress of a certification that such grave danger exists and that 
such additional funds are required to meet immediate security threats.
    (c) Report.--Not later than April 1, 1999, the Secretary of Defense 
shall submit to Congress a report with respect to United States 
participation in Bosnia peacekeeping operations. The report shall 
provide a detailed projection of any additional funding that will be 
required by the Department of Defense to meet mission requirements for 
such operations for the remainder of fiscal year 1999.
    (d) Presidential Authority.--Nothing in this section shall be 
deemed to restrict the authority of the President under the 
Constitution to protect the lives of United States citizens.
    (e) Bosnia Peacekeeping Operations.--For purposes of subsection 
(a), the term ``Bosnia peacekeeping operations'' means the operation 
designated as Operation Joint Force, the operation designated as 
Operation Joint Endeavor, and any other operation under which United 
States military forces participate in peacekeeping or peace enforcement 
activities in the Republic of Bosnia and Herzegovina and any activity 
that is directly related to the support of any such operation.

SEC. 1202. REPORTS ON THE MISSION OF UNITED STATES FORCES IN REPUBLIC 
              OF BOSNIA AND HERZEGOVINA.

    (a) Findings.--Congress finds the following:
            (1) In section 1202(1) of the National Defense 
        Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
        Stat. 1929; approved November 18, 1997), it was stated to be 
        the sense of the Congress that United States ground combat 
        forces should not participate in a follow-on force in the 
        Republic of Bosnia and Herzegovina after June 1998.
            (2) On December 16, 1997, the President announced his 
        support for the continued deployment of United States ground 
        combat forces in the Republic of Bosnia and Herzegovina after 
        June 30, 1998, as part of a multinational peacekeeping force 
        led by the North Atlantic Treaty Organization (NATO).
            (3) The President's decision to extend the presence of 
        United States ground combat forces in the Republic of Bosnia 
        and Herzegovina has changed the mission of those forces in a 
        fundamental manner.
            (4) The President has in effect committed United States 
        ground combat forces in the Republic of Bosnia and Herzegovina 
        to providing a secure environment for complete implementation 
        of the civilian provisions of the Dayton Accords.
            (5) The Administration has not specified how long such an 
        achievement will take and, therefore, the mission of United 
        States ground combat forces in the Republic of Bosnia and 
        Herzegovina is of indefinite duration.
    (b) Annual Presidential Report.--(1) The President shall submit to 
Congress an annual report on the presence of United States ground 
combat forces in the Republic of Bosnia and Herzegovina. Each such 
report shall include the following:
            (A) The President's assessment of progress toward the full 
        implementation of the civilian goals of the Dayton Accord, as 
        specified in subsection (c).
            (B) The expected duration of the deployment of United 
        States ground combat forces in the Republic of Bosnia and 
        Herzegovina in support of implementation of those goals.
            (C) The percentage of those goals 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.
    (2) The first report under this subsection shall be submitted not 
later than 90 days after the date of the enactment of this Act, and 
subsequent reports shall be submitted at yearly intervals thereafter. 
The requirement to submit an annual report under this subsection 
terminates upon the withdrawal of all United States ground combat 
forces from the Republic of Bosnia and Herzegovina.
    (c) Basis for Assessment of Progress.--For purposes of subsection 
(b)(1)(A), the President shall assess whether progress is being made 
toward implementation of the civilian goals of the Dayton Accords based 
upon assessment of the following goals and associated matters:
            (1) Accomplishment of military stability, as measured by--
                    (A) the maintenance of the cease-fire between the 
                former warring parties;
                    (B) the continued cantonment of heavy weapons and 
                the observance of arms limitations;
                    (C) the disbanding of special police;
                    (D) the termination of covert support to the Srpska 
                Demokratska Stranka party by the Federal Republic of 
                Yugoslavia; and
                    (E) similar measures.
            (2) Police and judicial reform, as measured by--
                    (A) the restructuring and ethnic integration of 
                local police;
                    (B) completion of human rights training by local 
                police forces;
                    (C) the demonstrated ability of local police to 
                deal effectively and impartially with civil 
                disturbances and disorder;
                    (D) the implementation of an effective judicial 
                reform program; and
                    (E) similar measures.
            (3) Creation and implementation of effective national 
        institutions untainted by ethnic separatism, as measured by--
                    (A) the dissolution of previously outlawed 
                institutions;
                    (B) a functioning customs service with national 
                control over customs revenues;
                    (C) transparency in national budgets and 
                disbursements; and
                    (D) similar measures.
            (4) Media reform, as measured by--
                    (A) the divestiture of control of broadcast 
                networks from the control of political parties;
                    (B) opposition party access to media;
                    (C) the availability of alternative and independent 
                media throughout the Republic of Bosnia and 
                Herzegovina; and
                    (D) similar measures.
            (5) Democratization and reform of the electoral process, as 
        measured by--
                    (A) transparent functioning of local, entity, and 
                national governments;
                    (B) acceptance of binding arbitration for the 
                implementation of results in contested local elections;
                    (C) modification of electoral laws to meet 
                international and Organization for Security and 
                Cooperation in Europe (OSCE) standards;
                    (D) the free and fair conduct of the September 1998 
                national elections and subsequent elections; and
                    (E) similar measures.
            (6) Return of refugees, as measured by--
                    (A) compliance of entity property laws with the 
                Dayton Accords;
                    (B) participation by entity governments in orderly 
                cross-ethnic returns;
                    (C) protection by local police of returnees;
                    (D) acceptance of substantial numbers of returned 
                refugees in major cities; and
                    (E) similar measures.
            (7) Resolution of the status of Brcko, as measured by--
                    (A) the implementation of local election results;
                    (B) the functioning of an ethnically integrated 
                police force;
                    (C) ethnic reintegration of Brcko and the 
                surrounding region; and
                    (D) similar measures.
            (8) Compliance of persons indicted for war crimes by the 
        International Tribunal for the Former Yugoslavia, as measured 
        by--
                    (A) the termination of political, military, and 
                media control by war criminals;
                    (B) the assistance of local authorities in 
                apprehension of indictees;
                    (C) the cooperation of entity justice 
                establishments in cooperating with the Tribunal; and
                    (D) similar measures.
            (9) The ability of international organizations to carry out 
        their functions within the Republic of Bosnia and Herzegovina 
        without military support, as measured by--
                    (A) the ability of local authorities to carry out 
                demining programs;
                    (B) the ability of the Office of the High 
                Representative to enforce inter-entity agreements 
                without accompanying military shows of force; and
                    (C) similar measures.
            (10) Economic reconstruction and recovery, as measured by--
                    (A) local currency circulating freely and its use 
                in official transactions;
                    (B) an agreement reached on a permanent national 
                currency in use in all entities;
                    (C) the creation of privatization laws consistent 
                with the Dayton Accords;
                    (D) government control over sources of revenue;
                    (E) substantial repair and functioning of major 
                infrastructure elements;
                    (F) an in-place International Monetary Fund 
                program; and
                    (G) similar measures.
    (d) Secretary of Defense Report.--(1) 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 
the Republic of Bosnia and Herzegovina and the Balkans region on the 
capabilities of United States military forces and, in particular, 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 unified 
combatant commands.
    (2) Whenever the number of United States ground combat forces in 
the Republic of Bosnia and Herzegovina increases or decreases by 10 
percent or more compared to the number of such forces as of the most 
recent previous report under this subsection, the Secretary shall 
submit an additional report as specified in paragraph (1). 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.
    (3) The Secretary shall include in each report under this 
subsection information with respect to the effects of military 
operations in the Republic of 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 unified 
combatant commands. Such information shall include information on the 
effects of those operations upon anticipated deployment plans for major 
theater wars in Southwest Asia or on the Korean peninsula including the 
following:
            (A) 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.
            (B) Additional planned reserve component mobilization, 
        including specific units to be ordered to active duty and 
        required dates for activation of presidential call-up 
        authority.
            (C) Specific plans and timelines for redeployment of United 
        States forces from the Republic of Bosnia and Herzegovina, the 
        Balkans region, or supporting forces in the region, to both the 
        first and second major theater war.
            (D) Preventative actions or deployments involving United 
        States forces in the Republic of 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.
            (E) Specific plans and timelines to replace forces deployed 
        to the Republic of Bosnia and Herzegovina, the Balkans region, 
        or the surrounding region to maintain United States military 
        presence.
            (F) 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 the Republic of 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.
    (e) Definition of Dayton Accords.--For purposes of this section, 
the term ``Dayton 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.

SEC. 1203. 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) in light 
of the proposed inclusion of Poland, the Czech Republic, and Hungary in 
the NATO alliance. The report shall set forth--
            (1) the tactical, operational, and strategic issues that 
        would be raised by the inclusion of Poland, the Czech Republic, 
        and Hungary in the NATO alliance;
            (2) the required improvements to common alliance military 
        assets that would result from the inclusion of those nations in 
        the alliance;
            (3) the planned improvements to national capabilities of 
        current NATO members that would be required by reason of the 
        inclusion of those nations in the alliance;
            (4) the planned improvements to national capabilities of 
        the military forces of those candidate member nations; and
            (5) the additional requirements that would be imposed on 
        the United States by NATO expansion.
    (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 each of the candidate 
        member nations.
            (2) An assessment of the capability of each candidate 
        member 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 candidate 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 current and candidate 
        alliance members to deploy and sustain combat forces in 
        alliance defense missions conducted in the territory of any of 
        the candidate 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 candidate alliance member nation, including planned 
        investments in capabilities relevant to Article V alliance 
        defense and potential alliance contingency operations and 
        showing both planned national efforts as well as planned 
        alliance common efforts and describing any disparities in 
        investments by current or candidate alliance member nations.
            (5) A detailed comparison and description of any 
        disparities in scope, methodology, 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. 1204. 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 in the form of funds, including 
funds used 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. 1205. REPEAL OF LANDMINE MORATORIUM.

    Section 580 of the Foreign Operations Appropriations Act, 1996 
(Public Law 104-107; 110 Sat 751), is repealed.

SEC. 1206. SENSE OF THE CONGRESS.

    It is the sense of the Congress that--
            (1) United States business interests must not be placed 
        above United States national security interests;
            (2) at the Presidential summit meeting to be held in the 
        People's Republic of China in June of 1998, the United States 
        should not--
                    (A) support membership of the People's Republic of 
                China in the Missile Technology Control Regime;
                    (B) agree to 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;
                    (C) agree to increase the number of launches of 
                satellites to geosynchronous orbit by the People's 
                Republic of China above the number contained in Article 
                II(B)(ii) of the 1995 Memorandum of Agreement Between 
                the Government of the United States of America and the 
                Government of the People's Republic of China Regarding 
                International Trade in Commercial Launch Services;
                    (D) support any cooperative project with the 
                People's Republic of China to design or manufacture 
                satellites;
                    (E) enter into any new scientific, technical, or 
                other agreements, or amend any existing scientific, 
                technical, or other agreements, with the People's 
                Republic of China involving space or missile-related 
                technology;
                    (F) agree to any arms control initiative that 
                cannot be effectively verified, including any 
                initiative relating to detargeting of strategic 
                offensive missiles; or
                    (G) support any increase in the number or frequency 
                of military-to-military contacts between the United 
                States and the People's Republic of China;
            (3) the decision of the executive branch in 1998 to issue a 
        waiver allowing the export of satellite technology to the 
        People's Republic of China was not in the national interest of 
        the United States, given the ongoing criminal investigation by 
        the Justice Department of the transfer in 1996 of satellite 
        technology to that country;
            (4) the executive branch should ensure that United States 
        law regarding the export of satellites to the Peoples Republic 
        of China is enforced and that the criminal investigation 
        described in paragraph (3) proceeds with all due dispatch; and
            (5) the President should indefinitely suspend the export of 
        satellites of United States origin to the People's Republic of 
        China, including those satellites licensed in February 1998 as 
        part of the Chinasat-8 program.

SEC. 1207. INVESTIGATIONS OF SATELLITE LAUNCH FAILURES.

    (a) Participation in Investigations.--In the event of the failure 
of a launch from the People's Republic of China of a satellite of 
United States origin, no United States person may participate in any 
subsequent investigation of the failure.
    (b) Definition.--As used in this section, the term ``United States 
person'' has the meaning given that term in section 16 of the Export 
Administration Act of 1979, and includes any officer or employee of the 
Federal Government or of any other government.

SEC. 1208. PROHIBITION ON EXPORTS OF MISSILE EQUIPMENT AND TECHNOLOGY 
              TO CHINA.

    No missile equipment or technology (as defined in section 74 of the 
Arms Export Control Act (22 U.S.C. 2797c)) may be exported to the 
People's Republic of China.

SEC. 1209. PROHIBITION ON EXPORTS AND REEXPORTS OF SATELLITES TO CHINA.

    (a) In General.--No satellites of United States origin (including 
commercial satellites and satellite components) may be exported or 
reexported to the People's Republic of China.
    (b) Prohibition With Respect to Information, Equipment, and 
Technology.--No information, equipment, or technology that could be 
used in the acquisition, design, development (including codevelopment), 
or production (including coproduction) of any satellite or launch 
vehicle may be exported or reexported to the People's Republic of 
China.
    (c) Applicability.--Subsections (a) and (b) apply to any satellite, 
information, equipment, or technology that as of the date of the 
enactment of this Act has not been exported or reexported to the 
People's Republic of China, whether or not an export license for such 
export or reexport has been approved as of such date.

SEC. 1210. 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 procurement, training, or operation and 
maintenance of 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.

SEC. 1211. LIMITATION ON PAYMENTS FOR COST OF NATO EXPANSION.

    (a) The amount spent by the United States as its share of the total 
cost to North Atlantic Treaty Organization member nations of the 
admission of new member nations to the North American Treaty 
Organization may not exceed 10 percent of the cost of expansion or a 
total of $2,000,000,000, whichever is less, for fiscal years 1999 
through 2011.
    (b) If at any time during the period specified in subsection (a), 
the United States' share of the total cost of expanding the North 
Atlantic Treaty Organization exceeds 10 percent, no further United 
States funds may be expended for the costs of such expansion until that 
percentage is reduced to below 10 percent.

SEC. 1212. COMMODITY JURISDICTION FOR SATELLITE EXPORTS.

    (a) Control on Munitions List.--All satellites of United States 
origin, including commercial satellites and satellite components, shall 
be placed on the United States Munitions List, and the export of such 
satellites shall be controlled under the Arms Export Control Act, 
effective 60 days after the date of the enactment of this Act.
    (b) Regulations.--Regulations to carry out subsection (a) shall be 
issued within 60 days after the date of the enactment of this Act.

SEC. 1213. RELEASE OF EXPORT INFORMATION HELD BY THE DEPARTMENT OF 
              COMMERCE FOR PURPOSE OF NATIONAL SECURITY ASSESSMENTS.

    (a) Release of Export Information.--The Secretary of Commerce shall 
transmit any information relating to exports that is held by the 
Department of Commerce and is requested by the officials designated in 
subsection (b) for the purpose of assessing national security risks. 
The Secretary of Commerce shall transmit such information within 5 days 
after receiving a written request for such information. Information 
referred to in this section includes--
            (1) export licenses, and information on exports that were 
        carried out under an export license issued by the Department of 
        Commerce; and
            (2) information collected by the Department of Commerce on 
        exports from the United States that were carried out without an 
        export license.
    (b) Requesting Officials.--The officials referred to in subsection 
(a) are the Director of Central Intelligence, the Secretary of Defense, 
and the Secretary of Energy. The Director of Central Intelligence, the 
Secretary of Defense, and the Secretary of Energy may delegate to other 
officials within their respective agency and departments the authority 
to request information under subsection (b).

SEC. 1214. 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 individual 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).''.

SEC. 1215. TRANSFER OF EXCESS UH-1 HUEY HELICOPTERS AND AH-1 COBRA 
              HELICOPTERS TO FOREIGN COUNTRIES.

    (a) In General.--(1) Chapter 153 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 2581. Transfer of excess UH-1 Huey helicopters and AH-1 Cobra 
              helicopters to foreign countries
    ``(a) Requirements.--The Secretary of Defense shall make all 
reasonable efforts to ensure that any excess UH-1 Huey helicopter or 
AH-1 Cobra helicopter that is to be transferred on a grant or sales 
basis to a foreign country for the purpose of flight operations for 
such country shall meet the following requirements:
            ``(1) Prior to such transfer, 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 such helicopter would need were the 
        helicopter to remain in operational use with the armed forces 
        of the United States.
            ``(2) Maintenance and repair described in paragraph (1) is 
        performed in the United States.
    ``(b) Exception.--The requirements of subsection (a) shall not 
apply with respect to salvage helicopters provided to the foreign 
country solely as a source for spare parts.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2581. Transfer of excess UH-1 Huey helicopters and AH-1 Cobra 
                            helicopters to foreign countries.''.
    (b) Effective Date.--Section 2581 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to the transfer of 
a UH-1 Huey helicopter or AH-1 Cobra helicopter on or after the date of 
the enactment of this Act.

SEC. 1216. NUCLEAR EXPORT REPORTING REQUIREMENT.

    The Arms Export Control Act (22 U.S.C. 2751 et seq.) is amended by 
adding at the end the following new chapter:

                 ``CHAPTER 11-NUCLEAR EXPORT REPORTING

``SEC. 111. REPORTS ON EXPORTS.

    ``(a) Actions Requiring Reporting.--Unless and until the conditions 
set forth in subsection (b) are met--
            ``(1) no license may be issued for the export of--
                    ``(A) any production facility or utilization 
                facility;
                    ``(B) any source material or special nuclear 
                material; or
                    ``(C) any component, substance, or item that has 
                been determined under section 109b. of the Atomic 
                Energy Act of 1954 to be especially relevant from the 
                standpoint of export control because of its 
                significance for nuclear explosive purposes;
            ``(2) the United States shall not approve the retransfer of 
        any facility, material, item, technical data, component, or 
        substance described in paragraph (1); and
            ``(3) no authorization may be given under section 57b.(2) 
        of the Atomic Energy Act of 1954 for any person to engage, 
        directly or indirectly, in the production of special nuclear 
        material.
    ``(b) Conditions.--
            ``(1) In general.--The conditions referred to in subsection 
        (a) are the following:
                    ``(A) Before the export, retransfer, or activity is 
                approved, the appropriate agency shall transmit to the 
                Committee on International Relations of the House of 
                Representatives and the Committee on Foreign Relations 
                of the Senate a report describing such export, 
                retransfer, or activity and the basis for any proposed 
                approval thereof, and, in the case of an authorization 
                described in subsection (a)(3), the appropriate agency 
                shall transmit to the Committee on Commerce of the 
                House of Representatives a report describing the 
                activity for which authorization is sought and the 
                basis for any proposed approval thereof. Each report 
                under this subparagraph report shall contain--
                            ``(i) a detailed description of the 
                        proposed export, retransfer, or activity, as 
                        the case may be, including a brief description 
                        of the quantity, value, and capabilities of the 
                        export, retransfer, or activity;
                            ``(ii) the name of each contractor expected 
                        to provide the proposed export, retransfer, or 
                        activity;
                            ``(iii) an estimate of the number of 
                        officers and employees of the United States 
                        Government and of United States civilian 
                        contract personnel expected to be needed in the 
                        recipient country to carry out the proposed 
                        export, retransfer, or activity; and
                            ``(iv) a description, including estimated 
                        value, from each contractor described in clause 
                        (ii) of any offset agreements proposed to be 
                        entered into in connection with such proposed 
                        export, retransfer, or activity (if known on 
                        the date of transmittal of the report), and the 
                        projected delivery dates and end user of the 
                        proposed export, retransfer, or activity; and
                            ``(v) the extent to which the recipient 
                        country is in compliance with the conditions 
                        specified in paragraph (2) of section 129 of 
                        the Atomic Energy Act of 1954.
                The report transmitted under this subparagraph shall be 
                unclassified, unless the public disclosure thereof 
                would be clearly detrimental to the security of the 
                United States.
            ``(B) Unless the President determines that an emergency 
        exists which requires immediate approval of the proposed 
        export, retransfer, or activity in the national security 
        interests of the United States, no such approval shall be given 
        until at least 30 calendar days after Congress receives the 
        report described in subparagraph (A), and shall not be approved 
        then if Congress, within that 30-day period, enacts a joint 
        resolution prohibiting the proposed export, retransfer, or 
        activity. If the President determines that an emergency exists 
        that requires immediate approval of the proposed export, 
        retransfer, or activity in the national security interests of 
        the United States, thus waiving the requirements of this 
        paragraph, he shall submit in writing to the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate a detailed 
        justification for his determination, including a description of 
        the emergency circumstances that necessitate the immediate 
        approval of the export, retransfer, or activity, and a 
        discussion of the national security interests involved.
            ``(2) Consideration of joint resolutions in the senate.--
        Any joint resolution under paragraph (1)(B) shall be considered 
        in the Senate in accordance with the provisions of section 
        601(b) of the International Security Assistance and Arms Export 
        Control Act of 1976.
    ``(c) Publication of Unclassified Text of Reports.--The appropriate 
agency shall cause to be published in the Federal Register, upon 
transmittal to the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate, 
the full unclassified text of each report submitted pursuant to 
subsection (b)(1)(A).
    ``(d) Exceptions.--The requirements of this section shall not apply 
to--
            ``(1) any export, retransfer, or activity for which a 
        general license or general authorization is granted by the 
        appropriate agency; or
            ``(2) any export or retransfer to, or activity in, a 
        country that is a member of the Organization for Economic 
        Cooperation and Development.
    ``(e) Definitions.--As used in this section, the terms `production 
facility', `utilization facility', `source material', and `special 
nuclear material', have the meanings given those terms in section 11 of 
the Atomic Energy Act of 1954.''.

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

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
              FUNDS.

    (a) Specification of CTR Programs.--For purposes of section 301 and 
other provisions of this Act, Cooperative Threat Reduction programs are 
the programs specified in subsection (b) of section 406 of title 10, 
United States Code (as added by section 1305).
    (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.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) In General.--Of the fiscal year 1999 Cooperative Threat 
Reduction funds, not more than the following amounts may be obligated 
for the purposes specified:
            (1) Except as provided in paragraph (11), for strategic 
        offensive arms elimination in Russia, $142,400,000.
            (2) Except as provided in paragraph (11), 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, $35,000,000.
            (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 $7,000,000.
            (11) For strategic arms elimination in Russia or Ukraine, 
        $31,400,000.
    (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.
            (5) Programs other than the programs specified in 
        subsection (b) of section 406 of title 10, United States Code 
        (as added by section 1305).
    (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 
              FACILITY.

    No fiscal year 1999 Cooperative Threat Reduction funds authorized 
to be obligated in section 1302(a)(4) for activities associated with 
chemical weapons destruction in Russia, and no funds appropriated for 
Cooperative Threat Reduction programs for any prior fiscal year and 
remaining available for obligation, may be used for construction of a 
chemical weapons destruction facility.

SEC. 1305. LIMITATION ON OBLIGATION OF FUNDS FOR A SPECIFIED PERIOD.

    (a) In General.--(1) Chapter 20 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 406. Use of Cooperative Threat Reduction program funds: 
              limitation
    ``(a) In General.--In carrying out Cooperative Threat Reduction 
programs during any fiscal year, the Secretary of Defense may use funds 
appropriated for those programs only to the extent that those funds 
were appropriated for that fiscal year or for either of the 2 preceding 
fiscal years.
    ``(b) Definition of Cooperative Threat Reduction Programs.--In this 
section, the term `Cooperative Threat Reduction programs' means the 
following programs with respect to states of the former Soviet Union:
            ``(1) Programs to facilitate the elimination, and the safe 
        and secure transportation and storage, of nuclear, chemical, 
        and other weapons of mass destruction and their delivery 
        vehicles.
            ``(2) Programs to facilitate the safe and secure storage of 
        fissile materials derived from the elimination of nuclear 
        weapons.
            ``(3) Programs to prevent the proliferation of weapons of 
        mass destruction, components, and technology and expertise 
        related to such weapons.
            ``(4) Programs to expand military-to-military and defense 
        contacts.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``406. Use of Cooperative Threat Reduction program funds: 
                            limitation.''.
    (b) Effective Date.--The limitation described in section 406 of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to fiscal years beginning with fiscal year 1999.

SEC. 1306. REQUIREMENT TO SUBMIT BREAKDOWN OF AMOUNTS REQUESTED BY 
              PROJECT CATEGORY.

    The Secretary of Defense shall submit to Congress on an annual 
basis, not later than 30 days after the date that the President submits 
to Congress the budget of the United States Government for the 
following fiscal year--
            (1) a breakdown, with respect to the appropriations 
        requested for Cooperative Threat Reduction programs for the 
        fiscal year after the fiscal year in which the breakdown is 
        submitted, of the amounts requested for each project category 
        under each Cooperative Threat Reduction program element; and
            (2) a breakdown, with respect to appropriations for 
        Cooperative Threat Reduction programs for the fiscal year in 
        which the breakdown is submitted, of the amounts obligated or 
        expended, or planned to be obligated or expended, for each 
        project category under each Cooperative Threat Reduction 
        program element.

SEC. 1307. LIMITATION ON USE OF FUNDS UNTIL COMPLETION OF FISCAL YEAR 
              1998 REQUIREMENTS.

    (a) Use of Funds for Programs Related to Start II Treaty.--No 
fiscal year 1999 Cooperative Threat Reduction funds may be obligated or 
expended for strategic offensive arms elimination projects in Russia 
related to the START II Treaty (as defined in section 1302(f) of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1948)) until 30 days after the date on which the 
Secretary of Defense submits to Congress the certification described in 
section 1404 of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85; 111 Stat. 1960).
    (b) Use of Funds for Chemical Weapons Destruction Facility.--No 
fiscal year 1999 Cooperative Threat Reduction funds may be obligated or 
expended for activities relating to a chemical weapons destruction 
facility until 15 days after the date that is the later of the dates 
described in section 1405 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1960).
    (c) Use of Funds for Destruction of Chemical Weapons.--No funds 
authorized to be appropriated under this or any other Act for fiscal 
year 1999 for Cooperative Threat Reduction programs may be obligated or 
expended for chemical weapons destruction activities until the 
President submits to Congress the written certification described in 
section 1406(b) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1961).
    (d) Use of Funds for Storage Facility for Russian Fissile 
Material.--No fiscal year 1999 Cooperative Threat Reduction funds may 
be obligated or expended for planning, design, or construction of a 
storage facility for Russian fissile material until 15 days after the 
date that is the later of the dates described in section 1407 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1962).
    (e) Use of Funds for Weapons Storage Security.--No fiscal year 1999 
Cooperative Threat Reduction funds intended for weapons storage 
security activities in Russia may be obligated or expended until 15 
days after the date that the Secretary of Defense submits to Congress 
the report on the status of negotiations between the United States and 
Russia described in section 1408 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1962).

SEC. 1308. REPORT ON BIOLOGICAL WEAPONS PROGRAMS IN RUSSIA.

    (a) Report.--Not later than December 31, 1998, 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. 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 that is the later of 
the following:
            (1) The date on which the Secretary of Defense submits to 
        Congress a certification that no Cooperative Threat Reduction 
        funds provided for cooperative research activities at 
        biological research institutes in Russia have been used--
                    (A) to support activities that have resulted in the 
                development of a new strain of anthrax; or
                    (B) for any purpose inconsistent with the 
                objectives of providing such assistance.
            (2) The date on which the Secretary submits to the 
        congressional defense committees notification that the United 
        States has examined and tested the new strain of anthrax 
        reportedly developed at the State Research Center for Applied 
        Microbiology in Obolensk, Russia.

SEC. 1310. LIMITATION ON USE OF CERTAIN FUNDS FOR STRATEGIC ARMS 
              ELIMINATION IN RUSSIA OR UKRAINE.

    No fiscal year 1999 Cooperative Threat Reduction funds authorized 
to be obligated in section 1302(a)(11) for strategic arms elimination 
in Russia or Ukraine may be obligated or expended until 30 days after 
the date that the Secretary of Defense submits to the congressional 
defense committees notification on how the Secretary plans to use such 
funds.

SEC. 1311. AVAILABILITY OF FUNDS.

    Funds appropriated pursuant to the authorization of appropriations 
in section 301 for Cooperative Threat Reduction programs shall be 
available for obligation for three fiscal years.

         TITLE XIV--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. FINDINGS.

    The Congress finds the following:
            (1) Many nations currently possess weapons of mass 
        destruction and related materials and technologies, and such 
        weapons are increasingly available to a variety of sources 
        through legitimate and illegitimate means.
            (2) The proliferation of weapons of mass destruction is 
        growing, and will likely continue despite the best efforts of 
        the international community to limit their flow.
            (3) The increased availability, relative affordability, and 
        ease of use of weapons of mass destruction may make the use of 
        such weapons an increasingly attractive option to potential 
        adversaries who are not otherwise capable of countering United 
        States military superiority.
            (4) On November 12, 1997, President Clinton issued an 
        Executive Order stating that ``the proliferation of nuclear, 
        biological, and chemical weapons (``weapons of mass 
        destruction'') and the means of delivering such weapons 
        constitutes an unusual and extraordinary threat to the national 
        security, foreign policy, and economy of the United States'' 
        and declaring a national emergency to deal with that threat.
            (5) The Quadrennial Defense Review concluded that the 
        threat or use of weapons of mass destruction is a likely 
        condition of future warfare and poses a potential threat to the 
        United States.
            (6) The United States lacks adequate preparedness at the 
        Federal, State, and local levels to respond to a potential 
        attack on the United States involving weapons of mass 
        destruction.
            (7) The United States has initiated an effort to enhance 
        the capability of Federal, State, and local governments as well 
        as local emergency response personnel to prevent and respond to 
        a domestic terrorist incident involving weapons of mass 
        destruction.
            (8) More than 40 Federal departments, agencies, and bureaus 
        are involved in combating terrorism, and many, including the 
        Department of Defense, the Department of Justice, the 
        Department of Energy, the Department of Health and Human 
        Services, and the Federal Emergency Management Agency, are 
        executing programs to provide civilian personnel at the 
        Federal, State, and local levels with training and assistance 
        to prevent and respond to incidents involving weapons of mass 
        destruction.
            (9) The Department of Energy has established a Nuclear 
        Emergency Response Team which is available to respond to 
        incidents involving nuclear or radiological emergencies.
            (10) The Department of Defense has begun to implement a 
        program to train local emergency responders in major cities 
        throughout the United States to prevent and respond to 
        incidents involving weapons of mass destruction.
            (11) The Department of Justice has established a National 
        Center for Domestic Preparedness at Fort McClellan, Alabama, to 
        conduct nuclear, biological, and chemical preparedness training 
        for Federal, State, and local officials to enhance emergency 
        response to incidents involving weapons of mass destruction.
            (12) Despite these activities, Federal agency initiatives 
        to enhance domestic preparedness to respond to an incident 
        involving weapons of mass destruction are hampered by 
        incomplete interagency coordination and overlapping 
        jurisdiction of agency missions, for example:
                    (A) The Secretary of Defense has proposed the 
                establishment of 10 Rapid Assessment and Initial 
                Detection elements, composed of 22 National Guard 
                personnel, to provide timely regional assistance to 
                local emergency responders during an incident involving 
                chemical or biological weapons of mass destruction. 
                However, the precise working relationship between these 
                National Guard elements, the Federal Emergency 
                Management Agency regional offices, and State and local 
                emergency response agencies has not yet been 
                determined.
                    (B) The Federal Emergency Management Agency, the 
                lead Federal agency for consequence management in 
                response to a terrorist incident involving weapons of 
                mass destruction, has withdrawn from the role of chair 
                of the Senior Interagency Coordination Group for 
                domestic emergency preparedness, and a successor agency 
                to chair the Senior Interagency Coordinator has not yet 
                been determined.
                    (C) In order to ensure effective local response 
                capabilities to incidents involving weapons of mass 
                destruction, the Federal Government, in addition to 
                providing training, must concurrently address the need 
                for--
                            (i) compatible communications capabilities 
                        for all Federal, State, and local emergency 
                        responders, which often use different radio 
                        systems and operate on different radio 
                        frequencies;
                            (ii) adequate equipment necessary for 
                        response to an incident involving weapons of 
                        mass destruction, and a means to ensure that 
                        financially lacking localities have access to 
                        such equipment;
                            (iii) local and regional planning efforts 
                        to ensure the effective execution of emergency 
                        response in the event of an incident involving 
                        a weapon of mass destruction; and
                            (iv) increased planning and training to 
                        prepare for emergency response capabilities in 
                        port areas and littoral waters.
                    (D) The Congress is aware that Presidential 
                Decision Directives relating to domestic emergency 
                preparedness for response to terrorist incidents 
                involving weapons of mass destruction are being 
                considered, but agreement has not been reached within 
                the executive branch.

                   Subtitle A--Domestic Preparedness

SEC. 1411. 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 developing an integrated program that builds upon the 
program established under title XIV of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2714).
    (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. 1412. REPORT ON DOMESTIC EMERGENCY PREPAREDNESS.

    Section 1051 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1889) is amended by adding at 
the end the following new subsection:
            ``(c) Annex on Domestic Emergency Preparedness Program.--As 
        part of the 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 title XIV and section 
        1411 of the National Defense Authorization Act for Fiscal Year 
        1999):
                    ``(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 Commission on Domestic 
                Response Capabilities for Terrorism Involving Weapons 
                of Mass Destruction (as established under section 1421 
                of the National Defense Authorization Act for Fiscal 
                Year 1999), and actions taken as a result of such 
                recommendations; and
                    ``(7) requirements regarding additional program 
                measures and legislative authority for which 
                congressional action may be recommended.''.

SEC. 1413. PERFORMANCE OF THREAT AND RISK ASSESSMENTS.

    (a) Threat and Risk Assessments.--(1) Assistance to Federal, State, 
and local agencies provided under the program under section 1411 shall 
include the performance of assessments of the threat and risk of 
terrorist employment of weapons of mass destruction against cities and 
other local areas. Such assessments shall be used by Federal, State, 
and local agencies to determine the training and equipment requirements 
under this program and shall be performed as a collaborative effort 
with State and local agencies.
    (2) The Department of Justice, as lead Federal agency for crisis 
management in response to terrorism involving weapons of mass 
destruction, shall, through the Federal Bureau of Investigation, 
conduct any threat and risk assessment performed under paragraph (1) in 
coordination with appropriate Federal, State, and local agencies, and 
shall develop procedures and guidance for conduct of the threat and 
risk assessment in consultation with officials from the intelligence 
community.
    (3) The President shall identify and make available the funds 
necessary to carry out this section.
    (b) Pilot Test.--(1) Before prescribing final procedures and 
guidance for the performance of threat and risk assessments under this 
section, the Attorney General, through the Federal Bureau of 
Investigation may, in coordination with appropriate Federal, State, and 
local agencies, conduct a pilot test of any proposed method or model by 
which such assessments are to be performed.
    (2) The pilot test shall be performed in cities or local areas 
selected by the Department of Justice, through the Federal Bureau of 
Investigation, in consultation with appropriate Federal, State, and 
local agencies.
    (3) The pilot test shall be completed not later than 4 months after 
the date of the enactment of this Act.

      Subtitle B--Advisory Commission to Assess Domestic Response 
    Capabilities For Terrorism Involving Weapons of Mass Destruction

SEC. 1421. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``Advisory Commission on Domestic Response Capabilities 
for Terrorism Involving Weapons of Mass Destruction'' (hereinafter 
referred to as the ``Commission'').
    (b) Composition.--The Commission shall be composed of 15 members, 
appointed as follows:
            (1) four members appointed by the Speaker of the House of 
        Representatives;
            (2) four members appointed by the majority leader of the 
        Senate;
            (3) two members appointed by the minority leader of the 
        House of Representatives;
            (4) two members appointed by the minority leader of the 
        Senate;
            (5) three members appointed by the President.
    (c) Qualifications.--Members shall be appointed from among 
individuals with knowledge and expertise in emergency response matters.
    (d) Deadline for Appointments.--Appointments shall be made not 
later than the date that is 30 days after the date of the enactment of 
this Act.
    (e) Initial Meeting.--The Commission shall conduct its first 
meeting not later than the date that is 30 days after the date that 
appointments to the Commission have been made.
    (f) Chairman.--A Chairman of the Commission shall be elected by a 
majority of the members.

SEC. 1422. DUTIES OF COMMISSION.

    The Commission 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 training programs for responses 
        to incidents involving weapons of mass destruction, including a 
        review of unfunded communications, equipment, and planning and 
        maritime region needs;
            (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 role of State and local 
        governments in funding effective local response capabilities.

SEC. 1423. REPORT.

    Not later than the date that is 6 months after the date of the 
first meeting of the Commission, the Commission shall submit a report 
to the President and to Congress on its findings under section 1422 and 
recommendations for improving Federal, State, and local domestic 
emergency preparedness to respond to incidents involving weapons of 
mass destruction.

SEC. 1424. POWERS.

    (a) Hearings.--The Commission or, at its direction, any panel or 
member of the Commission, may, for the purpose of carrying out this 
Act, hold such hearings, sit and act at times and places, take 
testimony, receive evidence, and administer oaths to the extent that 
the Commission or any panel member considers advisable.
    (b) Information.--The Commission may secure directly from any 
department or agency of the United States information that the 
Commission considers necessary to enable the Commission to carry out 
its responsibilities under this Act.

SEC. 1425. COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet at the call of a majority 
of the members.
    (b) Quorum.--Eight members of the Commission shall constitute a 
quorum other than for the purpose of holding hearings.
    (c) Commission.--The Commission may establish panels composed of 
less than full membership of the Commission for the purpose of carrying 
out the Commission's duties. The actions of each such panel shall be 
subject to the review and control of the Commission. Any findings and 
determinations made by such panel shall not be considered the findings 
and determinations of the Commission unless approved by the Commission.
    (d) Authority of Individuals To Act for Commission.--Any member or 
agent of the Commission may, if authorized by the Commission, take any 
action which the Commission is authorized to take by this Act.

SEC. 1426. PERSONNEL MATTERS.

    (a) Pay of Members.--Members of the Commission shall serve without 
pay by reason of their work on the Commission.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--(1) The Commission may, without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, appoint a staff director and such additional 
personnel as may be necessary to enable the Commission to perform its 
duties.
    (2) The Commission may fix the pay of the staff director and other 
personnel without regard to the provisions of chapter 51 and subchapter 
III of chapter 53 of title 5, United States Code, relating to 
classification of positions and General Schedule pay rates, except that 
the rate of pay fixed under this paragraph for the staff director may 
not exceed the rate payable for level V of the Executive Schedule under 
section 5316 of such title and the rate of pay for other personnel may 
not exceed the maximum rate payable for grade GS-15 of the General 
Schedule.
    (d) Detail of Government Employees.--Upon request of the 
Commission, the head of any Federal department or agency may detail, on 
a nonreimbursable basis, any personnel of that department or agency to 
the Commission to assist it in carrying out its duties.
    (e) Procurement of Temporary and Intermittent Services.--The 
Commission may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code, at rates for 
individuals which do not exceed the daily equivalent of the annual rate 
of pay payable for level V of the Executive Schedule under section 5316 
of such title.

SEC. 1427. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

    (a) Postal and Printing Services.--The Commission may use the 
United States mails and obtain printing and binding services in the 
same manner and under the same conditions as other departments and 
agencies of the United States.
    (b) Miscellaneous Administrative and Support Services.--Upon the 
request of the Commission, the Administrator of General Services shall 
provide to the Commission, on a reimbursable basis, the administrative 
support services necessary for the Commission to carry out its duties 
under this title.
    (c) Experts and Consultants.--The Commission may procure temporary 
and intermittent services under section 3109(b) of title 5, United 
States Code.

SEC. 1428. TERMINATION OF COMMISSION.

    The Commission shall terminate not later than 60 days after the 
date that the Commission submits its report under section 1423.

SEC. 1429. FUNDING.

    Funds for activities of the Commission shall be provided from 
amounts appropriated for the Department of Defense for operation and 
maintenance for Defense-wide activities for fiscal year 1999.

            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:
      

                     Army: Inside the United States                     
------------------------------------------------------------------------
            State               Installation or location      Amount    
------------------------------------------------------------------------
Alabama......................  Anniston Army Depot......      $3,550,000
                               Fort Rucker..............      $4,300,000
                               Redstone Arsenal.........      $1,550,000
California...................  Fort Irwin...............     $14,800,000
Georgia......................  Fort Benning.............     $28,600,000
Hawaii.......................  Schofield Barracks.......     $67,500,000
Illinois.....................  Rock Island Arsenal......      $5,300,000
Indiana......................  Crane Army Ammunition                    
                                Activity................      $7,100,000
Kansas.......................  Fort Riley...............      $3,600,000
Kentucky.....................  Blue Grass Army Depot....      $5,300,000
                               Fort Campbell............     $41,000,000
                               Fort Knox................     $23,000,000
Louisiana....................  Fort Polk................      $8,300,000
Maryland.....................  Fort Detrick.............      $3,550,000
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.........     $21,800,000
Utah.........................  Tooele Army Depot........      $3,900,000
Virginia.....................  National Ground                          
                                Intelligence Center,                    
                                Charlottesville.........     $46,200,000
                               Fort Eustis..............     $36,531,000
Washington...................  Fort Lewis...............     $18,200,000
CONUS Classified.............  Classified Location......      $4,600,000
                                                         ---------------
                                       Total............    $639,631,000
------------------------------------------------------------------------

    (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.............     $13,400,000
                                 Camp Castle............     $18,226,000
                                 Camp Humphreys.........      $8,500,000
                                 Camp Stanley...........      $5,800,000
Kwajalein......................  Kwajalein Atoll........     $48,600,000
                                                         ---------------
                                         Total..........    $123,076,000
------------------------------------------------------------------------

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 $37,429,000.

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 $2,010,036,000 as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $535,631,000.
            (2) For military construction projects outside the United 
        States authorized by section 2101(b), $87,076,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $5,000,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $63,792,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $126,879,000.
                    (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 Homeowners Assistance Program as authorized by 
        section 2832 of title 10, United States Code, $7,500,000.
            (7) 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.
            (8) 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.
            (9) 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.
            (10) 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.
            (11) 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); and
            (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).
    (c) Adjustments.--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--
            (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; and
            (2) $6,000,000, which represents the combination of project 
        savings in military construction resulting from favorable bids, 
        reduced overhead costs, and cancellations due to force 
        structure changes.

SEC. 2105. INCREASE IN FISCAL YEAR 1998 AUTHORIZATION FOR MILITARY 
              CONSTRUCTION PROJECTS AT FORT DRUM, NEW YORK, AND FORT 
              SILL, OKLAHOMA.

    (a) Increase.--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 Amendment.--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.                            
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..     $27,410,000
                                 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...........     $20,280,000
Indiana........................  Naval Surface Warfare                  
                                  Center, Crane.........     $11,110,000
Maryland.......................  Naval Surface Warfare                  
                                  Center, Indian Head                   
                                  Division, Indian Head.     $13,270,000
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
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..........    $484,047,000
------------------------------------------------------------------------

    (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 $221,991,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1998, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Navy in the total amount of $1,776,726,000 as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $470,547,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $35,850,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $8,900,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $60,346,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $297,113,000.
                    (B) For support of military housing (including 
                functions described in section 2833 of title 10, United 
                States Code), $915,293,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2201 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a); and
            (2) $13,500,000 (the balance of the amount authorized under 
        section 2202(a) for the construction of a berthing pier at 
        Naval Station, Norfolk, Virginia.
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (5) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--
            (1) $6,323,000 which represents the combination of project 
        savings in military family housing construction resulting from 
        favorable bids, reduced overhead costs, and cancellations due 
        to force structure changes; and
            (2) $5,000,000 which represents the combination of project 
        savings in military construction resulting from favorable bids, 
        reduced overhead costs, and cancellations due to force 
        structure changes.

SEC. 2205. AUTHORIZATION TO ACCEPT ROAD CONSTRUCTION PROJECT, MARINE 
              CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA.

    The Secretary of the Navy may accept from the State of North 
Carolina, a road construction project valued at approximately 
$2,000,000, which is to be constructed at Marine Corps Base, Camp 
Lejeune, North Carolina, in accordance with plans and specifications 
acceptable to the Secretary of the Navy.

                         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
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..................     $16,397,000
Kansas.........................  McConnell Air Force          $4,450,000
                                  Base.                                 
Maryland.......................  Andrews Air Force Base.      $4,448,000
Mississippi....................  Keesler Air Force Base.     $35,526,000
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      $1,774,000
North Carolina.................  Seymour Johnson Air                    
                                  Force Base............      $6,100,000
North Dakota...................  Grand Forks Air Force        $2,686,000
                                  Base.                                 
Ohio...........................  Wright-Patterson Air                   
                                  Force Base............     $22,000,000
Oklahoma.......................  Altus Air Force Base...      $5,300,000
                                 Tinker Air Force Base..     $25,385,000
                                 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..........................  Brooks Air Force Base..      $7,000,000
                                 Dyess Air Force Base...      $3,350,000
                                 Lackland Air Force Base     $14,930,000
                                 Laughlin Air Force Base      $7,315,000
                                 Randolph Air Force Base      $3,166,000
Washington.....................  Fairchild Air Force         $13,820,000
                                  Base.                                 
                                 McChord Air Force Base.     $51,847,000
                                                         ---------------
                                       Total............    $445,580,000
------------------------------------------------------------------------

    (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...     $13,967,000
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............     $71,168,000
------------------------------------------------------------------------

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
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....  60 Units.....................     $10,550,000
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....................    $158,049,000
----------------------------------------------------------------------------------------------------------------

    (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 
$81,778,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1998, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Air Force in the total amount of 
$1,577,264,000 as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $445,580,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $71,168,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $7,135,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $37,592,000.
            (5) For military housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $251,169,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $785,204,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2301 of this 
Act may not exceed the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (5) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--
            (1) $9,584,000 which represents the combination of project 
        savings in military family housing construction resulting from 
        favorable bids, reduced overhead costs, and cancellations due 
        to force structure changes; and
            (2) $11,000,000 which represents the combination of project 
        savings in military construction resulting from favorable bids, 
        reduced overhead costs, and cancellations due to force 
        structure changes.

                      TITLE XXIV--DEFENSE AGENCIES

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

    (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 Fuels Supply                   
                                  Center, Camp Shelby,                  
                                  Mississippi...........      $5,300,000
                                 Defense Fuels Supply                   
                                  Center, Elmendorf Air                 
                                  Force Base, Alaska....     $19,500,000
                                 Defense Fuels 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
                                 Elgin 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.....  Elgin Auxiliary Field                  
                                  3, Florida............      $7,310,000
                                 Elgin 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    
------------------------------------------------------------------------
Ballistic Missile Defense                                               
 Organization..................  Kwajalein Atoll,                       
                                  Kwajalein.............      $4,600,000
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..........     $59,905,000
------------------------------------------------------------------------

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 appropriation 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 $2,386,023,000 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), $59,905,000.
            (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 2405 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 2405 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 2406 of this Act, 
        $17,954,000.
            (6) For unspecified minor construction projects under 
        section 2805 of title 10, United States Code, $16,094,000.
            (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, $39,866,000.
            (9) For energy conservation projects authorized by section 
        2404, $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), $1,730,704,000.
            (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, $7,000,000.
    (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 variations authorized by 
law, the total cost of all projects carried out under section 2401 of 
this Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a);
            (2) $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 $12,000,000, which represents the combination of project savings in 
military construction resulting from favorable bids, reduced overhead 
costs, and cancellations due to force structure changes.

SEC. 2405. INCREASE IN FISCAL YEAR 1995 AUTHORIZATION FOR MILITARY 
              CONSTRUCTION PROJECTS AT PINE BLUFF ARSENAL, ARKANSAS, 
              AND UMATILLA ARMY DEPOT, OREGON.

    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. 2406. INCREASE IN FISCAL YEAR 1990 AUTHORIZATION FOR MILITARY 
              CONSTRUCTION PROJECT AT PORTSMOUTH NAVAL HOSPITAL, 
              VIRGINIA.

    (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.

    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 $169,000,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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, $70,338,000; and
                    (B) for the Army Reserve, $84,608,000.
            (2) For the Department of the Navy, for the Naval and 
        Marine Corps Reserve, $33,721,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United 
                States, $97,701,000; and
                    (B) for the Air Force Reserve, $35,371,000.
    (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. ARMY RESERVE CONSTRUCTION PROJECT, SALT LAKE CITY, UTAH.

    (a) Cost Share Requirement.--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.
    (b) Repeal of Superseded Authority.--(1) Section 2603 of the 
Military Construction Authorization Act for Fiscal Year 1998 (division 
B of Public Law 105-85; 111 Stat. 1983) is repealed.
    (2) Section 2601(a)(1)(B) of such Act is amended by striking out 
``$66,267,000'' and inserting in lieu thereof ``$53,553,000''.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
              SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization 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 sections 2201, 
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 Authorization                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Puerto Rico...........................  Naval Station Roosevelt                                                 
                                         Roads...................  Housing Office...............        $710,000
----------------------------------------------------------------------------------------------------------------

      

                               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 Authorization                          
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Mississippi...........................  Camp Shelby..............  Multipurpose Range Complex                   
                                                                    (Phase I)...................      $5,000,000
----------------------------------------------------------------------------------------------------------------

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 enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

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

SEC. 2801. DEFINITION OF ANCILLARY SUPPORTING FACILITIES UNDER THE 
              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,''.

        Subtitle B--Real Property and Facilities Administration

SEC. 2811. RESTORATION OF DEPARTMENT OF DEFENSE LANDS USED BY ANOTHER 
              FEDERAL AGENCY.

    (a) Inclusion of Restoration as Contract Term.--Section 2691 of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(c) 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 other agency to use lands under 
the control of the Secretary, the Secretary may require the other 
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 the condition the land was in before its use by the 
agency. In lieu of performing the work itself, the Federal agency may 
elect, with the consent of the Secretary, to reimburse the Secretary 
for the costs incurred by the military department to perform the 
removal and 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. 2812. 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 money or property, whether real, 
        personal, mixed, tangible, or intangible.
    ``(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. 2813. REPORT ON USE OF UTILITY SYSTEM CONVEYANCE AUTHORITY.

    (a) Report Required.--Not later than March 1, 1999, the Secretary 
of each military department shall submit to Congress a report 
containing--
            (1) the criteria to be used by the Secretary to select 
        utility systems, and related real property, 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; and
            (2) a description of the manner in which the Secretary will 
        ensure that any such conveyance does not adversely affect the 
        national security of the United States.
    (b) List of Likely Systems for Conveyance.--The report submitted by 
the Secretary of a military department under subsection (a) shall also 
contain a list of the utility systems, including the locations of the 
utility systems, that, as of the date of the submission of the report, 
the Secretary considers are likely to be conveyed under the authority 
of section 2688 of title 10, United States Code.

            Subtitle C--Defense Base Closure and Realignment

SEC. 2821. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER THE 
              COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND 
              LIABILITY ACT OF 1980 IN CONNECTION WITH MCCLELLAN AIR 
              FORCE BASE, CALIFORNIA.

    (a) Source of Payment.--Notwithstanding subsection (b) of section 
2906(a) of the Defense Base Closure and Realignment Act of 1990 (part A 
of Title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), 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 (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.

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).

                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2831. 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) 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. 2832. 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) 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. 2833. 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 excess Federal real property, including improvements 
thereon, that is located at 5693 Plymouth Road in Jamestown, Ohio, and 
contains an Army Reserve Center.
    (b) Purpose of Conveyance.--The purpose of the conveyance under 
subsection (a) is to permit the Greeneview Local School District to 
retain and use the conveyed property for the benefit of the students of 
Greeneview schools.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Greeneview Local School District.
    (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. 2834. 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 any 
improvements thereon, consisting of approximately 291 acres at the 
Stewart Army Sub-Post in New Windsor, New York.
    (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) 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.
    (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. 2835. 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 4660 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 
and shall be available, to the extent provided in appropriation Acts, 
for the same purposes and subject to the same limitations as other 
funds in such appropriation, fund, or account.
    (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 National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 571), as amended by section 2838 of the 
National Defense Authorization Act for Fiscal Year 1998 (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. 2836. 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 1033 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, during the 10-year 
period specified in subsection (c), the County reconveys all or any 
part of the property conveyed under subsection (a), 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 and 
shall be available, to the extent provided in appropriation Acts, for 
the same purposes and subject to the same limitations as other funds in 
such appropriation, fund, or account.
    (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. 2837. RELEASE OF REVERSIONARY INTEREST OF UNITED STATES IN FORMER 
              REDSTONE ARMY ARSENAL PROPERTY CONVEYED TO ALABAMA SPACE 
              SCIENCE EXHIBIT COMMISSION.

    (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 conveyed or released 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, and the land use of such conveyed property may not be 
changed without the approval of the Secretary.

SEC. 2838. 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) 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. 2841. 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 conveyance of the 
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 Beach 
        under the I-5 interstate highway 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 conveyed 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 easement 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2842. LAND CONVEYANCE, NAVAL RESERVE READINESS CENTER, PORTLAND, 
              MAINE.

    (a) Conveyance Authorized.--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 and any appurtenant interest in 
submerged lands thereon, consisting of approximately 3.72 acres in 
Portland, Maine, which is the site of the Naval Reserve Readiness 
Center, Portland, Maine.
    (b) Purpose.--The purpose of the conveyance under subsection (a) is 
to facilitate economic development in accordance with the plan of the 
Corporation for the construction of an aquarium and marine research 
facility in Portland, Maine.
    (c) Consideration.--(1) As consideration for the conveyance 
authorized by subsection (a), the Corporation shall provide for such 
facilities as the Secretary determines appropriate for the Naval 
Reserve to replace the facilities conveyed under that subsection.
    (2) To provide the replacement facilities, the Corporation may--
            (A) convey to the United States a parcel of real property 
        determined by the Secretary to be an appropriate location for 
        the facilities and design and construct the facilities on the 
        conveyed parcel; or
            (B) design and construct the facilities on such parcel of 
        real property under the jurisdiction of the Secretary as the 
        Secretary shall specify.
    (3) The Secretary shall select the form in which the consideration 
under paragraph (2) will be provided.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a), 
and of the real property, if any, to be conveyed under subsection (c), 
shall be determined by surveys satisfactory to the Secretary. The cost 
of the surveys shall be borne by the Corporation.
    (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 interest of the United States.

SEC. 2843. 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 excess 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.
    (b) Purpose.--The purpose of the conveyance under subsection (a) is 
to permit the City to use the parcel for educational purposes.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the City.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

                    PART III--AIR FORCE CONVEYANCES

SEC. 2851. LAND CONVEYANCE, LAKE CHARLES AIR FORCE STATION, LOUISIANA.

    (a) Conveyances 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 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) 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. 2852. LAND CONVEYANCE, AIR FORCE HOUSING FACILITY, LA JUNTA, 
              COLORADO.

    (a) Conveyance Required.--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.
    (b) Purpose of Conveyance.--The purpose of the conveyance under 
subsection (a) is to permit the city to develop the conveyed property 
for housing and educational purposes.
    (c) 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.
    (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. 2861. 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. 2862. 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''.

SEC. 2863. EXPANSION OF ARLINGTON NATIONAL CEMETERY.

    (a) Land Transfer, Navy Annex, Arlington, Virginia.--
            (1) In general.--The Secretary of Defense shall provide for 
        the transfer to the Secretary of the Army of administrative 
        jurisdiction over the following parcels of land situated in 
        Arlington, Virginia:
                    (A) Certain lands which comprise approximately 26 
                acres bounded by Columbia Pike to the south and east, 
                Oak Street to the west, and the boundary wall of 
                Arlington National Cemetery to the north including 
                Southgate Road.
                    (B) Certain lands which comprise approximately 8 
                acres bounded by Shirley Memorial Boulevard (Interstate 
                395) to the south, property of the Virginia Department 
                of Transportation to the west, Columbia Pike to the 
                north, and Joyce Street to the east.
                    (C) Certain lands which comprise approximately 2.5 
                acres bounded by Shirley Memorial Boulevard (Interstate 
                395) to the south, Joyce Street to the west, Columbia 
                Pike to the north, and the cloverleaf interchange of 
                Route 100 and Columbia Pike to the east.
            (2) Use of land.--The Secretary of the Army shall 
        incorporate the parcels of land transferred under paragraph (1) 
        into Arlington National Cemetery.
            (3) Remediation of land for cemetery use.--Before the 
        transfer of administrative jurisdiction over the parcels of 
        land under paragraph (1), the Secretary of Defense shall 
        provide for the removal of any improvements on the parcels of 
        land and, in consultation with the Superintendent of Arlington 
        National Cemetery, the preparation of the land for use for 
        interment of remains of individuals in Arlington National 
        Cemetery.
            (4) Report.--Not later than 180 days after the date of the 
        enactment of this Act, the Secretary of Defense shall submit to 
        Congress a report explaining in detail the measures required to 
        prepare the land for use as a part of Arlington National 
        Cemetery.
            (5) Deadline.--The Secretary of Defense shall complete the 
        transfer of administrative jurisdiction over the parcels of 
        land under this subsection not later than the earlier of--
                    (A) January 1, 2010; or
                    (B) the date when those parcels are no longer 
                required (as determined by the Secretary) for use as 
                temporary office space due to the renovation of the 
                Pentagon.
    (b) Modification of Boundary of Arlington National Cemetery.--
            (1) In general.--The Secretary of the Army shall modify the 
        boundary of Arlington National Cemetery to include the 
        following parcels of land situated in Fort Myer, Arlington, 
        Virginia:
                    (A) Certain lands which comprise approximately 5 
                acres bounded by the Fort Myer Post Traditional Chapel 
                to the southwest, McNair Road to the northwest, the 
                Vehicle Maintenance Complex to the northeast, and the 
                masonry wall of Arlington National Cemetery to the 
                southeast.
                    (B) Certain lands which comprise approximately 3 
                acres bounded by the Vehicle Maintenance Complex to the 
                southwest, Jackson Avenue to the northwest, the water 
                pumping station to the northeast, and the masonry wall 
                of Arlington National Cemetery to the southeast.
            (2) Report.--Not later than 180 days after the date of the 
        enactment of this Act, the Secretary of the Army shall submit 
        to Congress a report describing additional parcels of land 
        located in Fort Myer, Arlington, Virginia, that may be suitable 
        for use to expand Arlington National Cemetery.
            (3) Survey.--The Secretary of the Army may determine the 
        exact acreage and legal description of the parcels of land 
        described in paragraph (1) by a survey.

SEC. 2864. REPORTING REQUIREMENTS UNDER DEMONSTRATION PROJECT FOR 
              PURCHASE OF FIRE, SECURITY, POLICE, PUBLIC WORKS, AND 
              UTILITY SERVICES FROM LOCAL GOVERNMENT AGENCIES.

    Section 816(b) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2820) is amended by striking 
out ``and 1998'' and inserting in lieu thereof ``through 2000''.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

    (a) 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 
$4,142,100,000, 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 $2,138,375,000, 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 
                                facility, 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, 
                $49,000,000, to be allocated as follows:
                            (i) For technology partnership, 
                        $40,000,000.
                            (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 $2,134,625,000, to be allocated as follows:
                    (A) For operation and maintenance, $2,019,303,000.
                    (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), $115,322,000, 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, 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 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 factory 
                        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, $9,164,000.
                            Project 97-D-123, structural upgrades, 
                        Kansas City Plant, Kansas City, Missouri, 
                        $6,400,000.
                            Project 96-D-122, sewage treatment quality 
                        upgrade (STQU), Pantex Plant, Amarillo, Texas, 
                        $3,700,000.
                            Project 95-D-102, chemistry and metallurgy 
                        research (CMR) upgrades project, Los Alamos 
                        National Laboratory, Los Alamos, New Mexico, 
                        $16,000,000.
                            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 
        $240,000,000.
    (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 the sum of 
        $30,000,000.
            (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 the sum of $340,900,000, 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 $5,706,650,000, 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 $1,046,240,000.
            (2) Privatization.--For privatization projects in carrying 
        out environmental restoration and waste management activities 
        necessary for national security programs in the amount of 
        $286,857,000.
            (3) 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 $1,085,253,000, to be allocated as follows:
                    (A) For operation and maintenance, $886,090,000.
                    (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.
            (4) 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 $2,765,451,000, to be allocated as follows:
                    (A) For operation and maintenance, $2,684,195,000.
                    (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.
            (5) 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 $270,750,000.
            (6) 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), (3)(A), (4)(A), (5), and (6) of subsection 
(a) is the sum of the amounts authorized to be appropriated in those 
paragraphs, reduced by the sum of $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 $1,720,760,000, to be allocated as follows:
            (1) Nonproliferation and national security.--For 
        nonproliferation and national security, $693,900,000, to be 
        allocated as follows:
                    (A) For verification and control technology, 
                $500,500,000, 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, $33,600,000.
                    (B) For nuclear safeguards and security, 
                $53,200,000.
                    (C) For security investigations, $30,000,000.
                    (D) For emergency management, $21,300,000.
                    (E) For program direction, $88,900,000.
            (2) Worker and community transition assistance.--For worker 
        and community transition assistance, $45,000,000, to be 
        allocated as follows:
                    (A) For worker and community transition, 
                $41,000,000.
                    (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, $94,000,000, to be allocated as 
        follows:
                    (A) For the Office of Environment, Safety, and 
                Health (Defense), $89,231,000.
                    (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.--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 
the sum of $20,000,000.

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.

                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 five percent of any such authorization may be 
transferred between authorizations under paragraph (1). No such 
authorization may be increased or decreased by more than five percent 
by a transfer under such paragraph.
    (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 2000.

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 project listed in paragraph (3) or (4) of 
                section 3102.
                    (B) A program referred to in paragraph (3), (4), or 
                (5) of section 3102.
                    (C) A project or program not described in 
                subparagraph (A) or (B) that is for environmental 
                restoration or waste management activities necessary 
                for national security programs of the Department, that 
                is being carried out by the office, and for which 
                defense environmental management funds have been 
                authorized and appropriated before the date of 
                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. PROHIBITION ON FEDERAL LOAN GUARANTEES FOR DEFENSE 
              ENVIRONMENTAL MANAGEMENT PRIVATIZATION PROJECTS.

    Section 3132 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 2034) is amended by adding at 
the end the following new subsection:
    ``(g) Prohibition on Loan Guarantees.--The Secretary of Energy may 
not guarantee any loan made by a private sector entity to a contractor 
to pay for any costs (including costs described in subsection (a)(3)) 
borne by the contractor to carry out a contract entered into under this 
section.''.

SEC. 3132. 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. 3133. USE OF CERTAIN FUNDS FOR MISSILE DEFENSE TECHNOLOGY 
              DEVELOPMENT.

    Of the funds authorized to be appropriated pursuant to section 
3101, the Secretary of Energy shall make available not less than 
$60,000,000 for the purpose of developing, demonstrating, and testing 
hit-to-kill interceptor vehicles for theater missile defense systems. 
The Secretary shall carry out this section in cooperation with the 
Ballistic Missile Defense Organization of the Department of Defense.

SEC. 3134. SELECTION OF TECHNOLOGY FOR TRITIUM PRODUCTION.

    (a) Selection of Technology.--(1) Subject to paragraph (2), the 
Secretary of Energy shall select a primary technology for the 
production of tritium not later than December 31, 1999.
    (2) The Secretary may not select a primary technology for the 
production of tritium until the date that is the later of the 
following:
            (A) The date occurring 30 days after the completion of the 
        test program at the Watts Bar Nuclear Station, Tennessee.
            (B) The date on which the report required by subsection (b) 
        is submitted.
    (b) Report.--The Secretary of Energy shall submit to Congress a 
report on the results of the test program at the Watts Bar Nuclear 
Station. The report shall include--
            (1) data on any leakage of tritium from the test rods;
            (2) the amount of tritium produced during the test; and
            (3) any other technical findings resulting from the test.

SEC. 3135. LIMITATION ON USE OF CERTAIN FUNDS AT HANFORD SITE.

    (a) Limitation.--(1) None of the funds described in subsection (b) 
may be used unless the Secretary of Energy certifies to Congress not 
later than 90 days after the date of the enactment of this Act that the 
Department of Energy does not intend to pay overhead costs that exceed 
more than 33 percent of total contract costs during fiscal year 1999 
for the Project Hanford Management Contractors (at the Hanford Site, 
Richland, Washington), including the prime contractor and 
subcontractors at any tier (including Enterprise Company contractors).
    (2) For purposes of paragraph (1), overhead costs include--
            (A) indirect overhead costs, which include all activities 
        whose costs are spread across other accounts of the contractor 
        or site;
            (B) support service overhead costs, which include 
        activities or services for which programs pay per unit used;
            (C) all fee, awards, and other profit on indirect and 
        support service overhead costs, or fees that are not 
        attributable to performance on a single project;
            (D) any portion of Enterprise Company costs for which there 
        is no competitive bid and which, under the prior contract, had 
        been an indirect or service function; and
            (E) all computer service and information management costs 
        that had previously been reported in indirect overhead or 
        service center pool accounts.
    (b) Funds.--The funds referred to in subsection (a) are the 
following:
            (1) $12,000,000 for reactor decontamination and 
        decommissioning, as authorized to be appropriated by section 
        3102 and allocated under subsection (a)(4)(A).
            (2) $18,000,000 for single-shell tank drainage, as 
        authorized to be appropriated by section 3102 and allocated 
        under subsection (a)(4)(A).
    (c) Use of Savings.--The expected savings during fiscal year 1999 
from compliance with subsection (a) shall be used at the Hanford Site 
for ensuring full compliance with the Hanford Federal Facility 
Agreement and Consent Order and recommendations of the Defense Nuclear 
Facilities Safety Board.
    (d) Sense of the Congress.--It is the sense of the Congress that--
            (1) overhead costs for contractors performing environmental 
        cleanup work at defense nuclear facilities are out of control;
            (2) some of the increase in overhead costs can be 
        attributed to unnecessary regulation by the Department of 
        Energy; and
            (3) the Department of Energy should take whatever actions 
        possible to minimize any increased costs of contractor overhead 
        that are attributable to unnecessary regulation by the 
        Department.

SEC. 3136. HANFORD 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''.
    (b) Management.--The Office shall be headed by a senior official of 
the Department of Energy, who 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 the Hanford 
Reservation. The Office shall be responsible for developing the 
integrated management plan under subsection (d).
    (c) Department of Energy Responsibilities.--The Secretary of Energy 
shall--
            (1) provide the manager of the Office of River Protection 
        with the resources and personnel necessary to manage the tank 
        waste privatization program in an efficient and streamlined 
        manner; and
            (2) establish a five-member advisory committee, including 
        the manager of the Richland operations office and a 
        representative of the Office of Privatization and Contract 
        Reform, to advise the Office.
    (d) Integrated Management Plan.--Not later than 90 days after the 
date of the enactment of this Act, 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 an integrated 
management plan for all aspects of the Hanford Tank Farm operations, 
including the roles, responsibilities, and reporting relationships of 
the Office of River Protection. In developing the plan, the Secretary 
shall consider the extent to which the Office should be physically and 
administratively separate from the Richland operations office.
    (e) Report.--After the Office of River Protection has been in 
operation for two years, the Secretary of Energy shall submit to 
Congress a report on the success of the Tank Waste Remediation System 
and the Office in improving the management structure of the Department 
of Energy.
    (f) Termination.--The Office of River Protection shall terminate 
after it has been in operation for five years, unless the Secretary of 
Energy determines that such termination would disrupt effective 
management of Hanford Tank Farm operations. The Secretary shall inform 
the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives of this determination 
in writing.

                       Subtitle D--Other Matters

SEC. 3151. TERMINATION OF WORKER AND COMMUNITY TRANSITION ASSISTANCE.

    (a) Prohibition.--No funds may be used by the Secretary of Energy 
after September 30, 2000, to provide worker or community transition 
assistance with respect to defense nuclear facilities, including 
assistance provided under section 3161 of the National Defense 
Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h).
    (b) Repeal.--Effective October 1, 2000, section 3161 of the 
National Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 
7274h) is repealed.
    (c) 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 two-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).
    (d) Effect on USEC Privatization Act.--(1) Section 3110(a)(5) of 
the USEC Privatization Act (Public Law 104-134; 110 Stat. 1321-341; 42 
U.S.C. 2297h-8(a)(5)) is amended by adding at the end the following: 
``With respect to such section 3161, the Secretary shall, on and after 
the effective date of the repeal of such section, provide assistance to 
any such employee in accordance with the terms of such section as in 
effect on the day before the effective date of its repeal.''.
    (2) After the effective date of the repeal of section 3161 of the 
National Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 
7274h), no funds appropriated to the Department of Energy for atomic 
energy defense activities may be used to provide assistance under that 
section (by reason of the amendment made by paragraph (1)) to the 
adversely affected employees described in section 3110(a)(5) of the 
USEC Privatization Act (Public Law 104-134; 110 Stat. 1321-341; 42 
U.S.C. 2297h-8(a)(5)).

SEC. 3152. REQUIREMENT FOR PLAN TO MODIFY EMPLOYMENT SYSTEM USED BY 
              DEPARTMENT OF ENERGY IN DEFENSE ENVIRONMENTAL MANAGEMENT 
              PROGRAMS.

    (a) Plan Requirement.--(1) The Secretary of Energy shall develop 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.
    (2) The plan shall address strategies to recruit and hire--
            (A) individuals with a high degree of scientific and 
        technical competence in the areas of nuclear and toxic waste 
        remediation and environmental restoration; and
            (B) individuals with the necessary skills to manage large 
        construction and environmental remediation projects.
    (3) 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 paragraph (2), 
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.
    (b) Report.--The Secretary shall submit to Congress a report on the 
plan developed under subsection (a).
    (c) Limitation on Use of Certain Funds.--The Secretary of Energy 
may not use more than 75 percent of the funds available to the 
Secretary pursuant to the authorization of appropriations in section 
3102(a)(6) (relating to program direction) until the Secretary submits 
the report required by subsection (b).

SEC. 3153. 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) Report.--Not later than March 1, 1999, 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 defined as of the date of the 
        submission of the report.

SEC. 3154. PROHIBITION ON USE OF TRITIUM PRODUCED IN FACLITIES LICENSED 
              UNDER THE ATOMIC ENERGY ACT FOR NUCLEAR EXPLOSIVE 
              PURPOSES.

    (a) Prohibition.--Section 57(e) of the Atomic Energy Act of 1954 
(42 U.S.C. 2077(e)) is amended by inserting after ``section 11,'' the 
following: ``or tritium''.
    (b) Conforming Amendment.--Section 108 of such Act (42 U.S.C. 2138) 
is amended by inserting ``or tritium'' after ``special nuclear 
material'' in the second and third sentences each place it appears.

SEC. 3155. 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. 3156. ADVANCED TECHNOLOGY RESEARCH PROJECT.

    (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.
            (4) The Advanced Technology Research Project facilitates an 
        international clearinghouse and marketplace for advanced 
        nuclear technologies.
    (b) Sense of the Congress.--It is the sense of the Congress that 
the President should instruct 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, to consider the Advanced Technology Research 
Project 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 advanced 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) Recommendations for any legislation that the Secretary 
        of Energy believes would be required to enable such a project 
        to be undertaken.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

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 $82,647,000 of 
the funds in the National Defense Stockpile Transaction Fund for the 
authorized uses of such funds under section 9(b)(2) of the Strategic 
and Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)).
    (b) Additional Obligations.--The National Defense Stockpile Manager 
may obligate amounts in excess of the amount specified in subsection 
(a) if the National Defense Stockpile Manager notifies Congress that 
extraordinary or emergency conditions necessitate the additional 
obligations. The National Defense Stockpile Manager may make the 
additional obligations described in the notification after the end of 
the 45-day period beginning on the date Congress receives the 
notification.
    (c) Limitations.--The authorities provided by this section shall be 
subject to such limitations as may be provided in appropriations Acts.

                 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'' means 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 ``general land laws'' includes the Mineral 
        Leasing Act (30 U.S.C. 181 et seq.) and the Materials Act of 
        1947 (30 U.S.C. 601 et seq.), but excludes the Mining Law of 
        1872 (30 U.S.C. 22 et seq.).
            (7) 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) Authorization of Appropriations.--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) Availability of Appropriations.--Funds appropriated pursuant to 
the authorization of appropriations in subsection (a) shall remain 
available until expended.

SEC. 3403. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM DURING FISCAL 
              YEAR 1999.

    Notwithstanding section 7430(b)(2) of title 10, United States Code, 
during fiscal year 1999, any sale of any part of the United States 
share of petroleum produced from Naval Petroleum Reserve Numbered 2 or 
Naval Petroleum Reserve Numbered 3, shall be made at a price not less 
than 90 percent of the current sales price, as estimated by the 
Secretary of Energy, of comparable petroleum in the same area.

SEC. 3404. DISPOSAL OF NAVAL PETROLEUM RESERVE NUMBERED 2.

    (a) Disposal of Ford City Lots.--(1) Subject to section 3407, the 
Secretary of Energy shall dispose of that portion of Naval Petroleum 
Reserve Numbered 2 located within the town lots in Ford City, 
California, as generally depicted on the map of Naval Petroleum Reserve 
Numbered 2 that accompanies the report of the Secretary entitled 
``Report and Recommendations on the Management and Disposition of the 
Naval Petroleum and Oil Shale Reserves (Excluding Elk Hills)'', dated 
March 1997.
    (2) The Secretary of Energy may carry out the disposal of that 
portion of Naval Petroleum Reserve Numbered 2 described in 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 any other means. 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 that portion of Naval Petroleum Reserve 
Numbered 2 described in paragraph (1).
    (3) The Secretary of Energy may extend to a purchaser or other 
transferee of property under this subsection such indemnities and 
warranties as the Secretary considers reasonable and necessary to 
protect the purchaser or transferee from claims arising from the 
ownership of the property by the United States or the administration of 
the property by the Secretary of Energy.
    (b) Eventual Transfer of Administrative Jurisdiction.--(1) The 
Secretary of Energy shall continue to administer Naval Petroleum 
Reserve Numbered 2 (other than the portion of the reserve subject to 
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 under paragraph (1), the Secretary of Energy shall 
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 
subject to 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. 3405. DISPOSAL OF NAVAL PETROLEUM RESERVE NUMBERED 3.

    (a) Continued 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 Authority.--(1) After oil and gas operations are 
abandoned in Naval Petroleum Reserve Numbered 3, the Secretary of 
Energy may dispose of, subject to section 3407, the reserve by sale, 
lease, transfer, or other means. 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 of Energy.
    (2) The Secretary of Energy may extend to a purchaser or other 
transferee of property under this subsection such indemnities and 
warranties as the Secretary considers reasonable and necessary to 
protect the purchaser or transferee from claims arising from the 
ownership of the property by the United States or the administration of 
the property by the Secretary of Energy.
    (c) Relationship to Antitrust Laws.--This section does not modify, 
impair, or supersede the operation of the antitrust laws.

SEC. 3406. DISPOSAL OF OIL SHALE RESERVE NUMBERED 2.

    (a) Transfer of Administrative Jurisdiction.--Subject to section 
3407, effective September 30, 1999, the Secretary of Energy shall 
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. 3407. ADMINISTRATION.

    (a) Contract Authority.--Using the authority provided by section 
303(c)(7) of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 253(c)(7)), the Secretary of Energy and the Secretary 
of the Interior may separately enter into contracts for the acquisition 
of such services as the Secretary considers necessary to carry out the 
requirements of this title, except that the notification required under 
subparagraph (B) of such section for each such contract shall be 
submitted to Congress not less than seven days before the award of the 
contract.
    (b) 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.
    (c) Deposit of Receipts.--Notwithstanding any other law, all monies 
received by the United States from the disposal of property under this 
title or under section 7439 of title 10, United States Code, including 
monies received from a lease entered into under this title or such 
section, shall be deposited in the general fund of the Treasury.
    (d) Treatment of Royalties.--Any petroleum accruing to the United 
States as royalty from any lease of lands transferred under this title 
or under section 7439 of title 10, United States Code, shall be 
delivered to the United States, or shall be paid for in money, as the 
Secretary of the Interior may elect.
    (e) 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.
    (f) Relationship to Current Law.--Except as otherwise provided in 
this title, chapter 641 of title 10, United States Code, does not apply 
to the disposal of property under this title and ceases to apply to 
property in Naval Petroleum Reserve Numbered 2, Naval Petroleum Reserve 
Numbered 3, and Oil Shale Reserve Numbered 2, upon the final disposal 
of the property.

SEC. 3408. TREATMENT OF STATE OF CALIFORNIA CLAIM REGARDING NAVAL 
              PETROLEUM RESERVE NUMBERED 1.

    Section 3415(b) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 7420 note) is amended 
by striking out the first sentence and inserting in lieu thereof the 
following: ``Amounts in the contingent fund shall be available for 
paying a claim described in subsection (a) in accordance with the terms 
of, and the payment schedule contained in, the Settlement Agreement 
entered into between the State of California and the Department of 
Energy, dated October 11, 1996, and supplemented on December 10, 1997. 
The Secretary shall modify the Settlement Agreement to negate the 
requirements of the Settlement Agreement with respect to the request 
for and appropriation of funds.''.

                  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 
$90,000 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 $48,000 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 built in the 
United States, 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. 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 p.m., 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. 3507. CENTRAL EXAMINING OFFICE.

    Section 1223 (22 U.S.C. 3663) is repealed.

SEC. 3508. 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) Limitation on Liability.--Section 1419 (22 U.S.C. 3779) is 
amended by designating the text as subsection (a) and by adding at the 
end the following:
    ``(b) The Commission may not consider or pay any claim under 
section 1411 or 1412 of this Act, nor may an action for damages lie 
thereon, unless the claimant is covered by one or more valid policies 
of insurance totalling at least $1,000,000 against the injuries 
specified in those sections. The Commission's liability on any such 
claim shall be limited to damages in excess of all amounts recovered or 
recoverable by the claimant from its insurers. The Commission may not 
consider or pay any claim by an insurer or subrogee of a claimant under 
section 1411 or 1412 of this Act.''.

SEC. 3509. 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, except that 
such compensation may not be reduced during a member's term of office 
from the level established at the time of the appointment.''.
    (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. 3510. 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''.
    (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. CONVEYANCE OF NDRF VESSEL M/V BAYAMON.

    (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 the Trade Fair Ship Company, a corporation established under the 
laws of the State of Deleware and having its principal offices located 
in New York, New York (in this section referred to as the 
``recipient''), for use as 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) the recipient pays consideration equal to the 
                domestic fair market value of the vessel as determined 
                by the Secretary;
                    (B) the recipient agrees that any repair, 
                restoration, or reconstruction work for the vessel will 
                be performed in the United States;
                    (C) 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
                    (D) 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 the Act of June 2, 1951 
(chapter 121; 46 App. U.S.C. 1241a).

SEC. 3603. CONVEYANCE OF NDRF VESSELS BENJAMIN ISHERWOOD AND HENRY 
              ECKFORD.

    (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 purpose of reconstruction of those 
vessels for sale or charter.
    (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) the recipient pays consideration equal to the 
                domestic fair market value of the vessel, as determined 
                by the Secretary;
                    (B) the recipient agrees to sell or charter the 
                vessel to a member nation of the North Atlantic Treaty 
                Organization for use as an oiler;
                    (C) 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;
                    (D) the recipient agrees that any repair, 
                restoration, or reconstruction work for the vessel will 
                be performed in the United States; and
                    (E) 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.
            (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 the 
Act of June 2, 1951 (chapter 121; 46 App. U.S.C. 1241a).
    (d) Duration of Authority.--The authority of the Secretary under 
this section may only be exercised during the one-year period beginning 
on the date of the enactment of this Act.

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 shall 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.

            Passed the House of Representatives May 21, 1998.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.