[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1005 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 108
105th CONGRESS
  1st Session
                                S. 1005

                          [Report No. 105-45]

Making appropriations for the Department of Defense for the fiscal year 
           ending September 30, 1998, and for other purposes.


Rule___________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 10, 1997

    Mr. Stevens from the Committee on Appropriations, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL


 
Making appropriations for the Department of Defense for the fiscal year 
           ending September 30, 1998, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
That the following sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 1998, for military functions administered by the 
Department of Defense, and for other purposes, namely:

                                TITLE I

                           MILITARY PERSONNEL

                        Military Personnel, Army

    For pay, allowances, individual clothing, subsistence, interest on 
deposits, gratuities, permanent change of station travel (including all 
expenses thereof for organizational movements), and expenses of 
temporary duty travel between permanent duty stations, for members of 
the Army on active duty (except members of reserve components provided 
for elsewhere), cadets, and aviation cadets; and for payments pursuant 
to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note), 
to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), and to 
the Department of Defense Military Retirement Fund; $20,426,457,000.

                        Military Personnel, Navy

    For pay, allowances, individual clothing, subsistence, interest on 
deposits, gratuities, permanent change of station travel (including all 
expenses thereof for organizational movements), and expenses of 
temporary duty travel between permanent duty stations, for members of 
the Navy on active duty (except members of the Reserve provided for 
elsewhere), midshipmen, and aviation cadets; and for payments pursuant 
to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note), 
to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), and to 
the Department of Defense Military Retirement Fund; $16,508,218,000.

                    Military Personnel, Marine Corps

    For pay, allowances, individual clothing, subsistence, interest on 
deposits, gratuities, permanent change of station travel (including all 
expenses thereof for organizational movements), and expenses of 
temporary duty travel between permanent duty stations, for members of 
the Marine Corps on active duty (except members of the Reserve provided 
for elsewhere); and for payments pursuant to section 156 of Public Law 
97-377, as amended (42 U.S.C. 402 note), to section 229(b) of the 
Social Security Act (42 U.S.C. 429(b)), and to the Department of 
Defense Military Retirement Fund; $6,148,899,000.

                     Military Personnel, Air Force

    For pay, allowances, individual clothing, subsistence, interest on 
deposits, gratuities, permanent change of station travel (including all 
expenses thereof for organizational movements), and expenses of 
temporary duty travel between permanent duty stations, for members of 
the Air Force on active duty (except members of reserve components 
provided for elsewhere), cadets, and aviation cadets; and for payments 
pursuant to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
note), to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), 
and to the Department of Defense Military Retirement Fund; 
$17,206,056,000.

                        Reserve Personnel, Army

    For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Army Reserve on active duty under 
sections 10211, 10302, and 3038 of title 10, United States Code, or 
while serving on active duty under section 12301(d) of title 10, United 
States Code, in connection with performing duty specified in section 
12310(a) of title 10, United States Code, or while undergoing reserve 
training, or while performing drills or equivalent duty or other duty, 
and for members of the Reserve Officers' Training Corps, and expenses 
authorized by section 16131 of title 10, United States Code; and for 
payments to the Department of Defense Military Retirement Fund; 
$2,037,046,000.

                        Reserve Personnel, Navy

    For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Navy Reserve on active duty under 
section 10211 of title 10, United States Code, or while serving on 
active duty under section 12301(d) of title 10, United States Code, in 
connection with performing duty specified in section 12310(a) of title 
10, United States Code, or while undergoing reserve training, or while 
performing drills or equivalent duty, and for members of the Reserve 
Officers' Training Corps, and expenses authorized by section 16131 of 
title 10, United States Code; and for payments to the Department of 
Defense Military Retirement Fund; $1,374,901,000.

                    Reserve Personnel, Marine Corps

    For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Marine Corps Reserve on active 
duty under section 10211 of title 10, United States Code, or while 
serving on active duty under section 12301(d) of title 10, United 
States Code, in connection with performing duty specified in section 
12310(a) of title 10, United States Code, or while undergoing reserve 
training, or while performing drills or equivalent duty, and for 
members of the Marine Corps platoon leaders class, and expenses 
authorized by section 16131 of title 10, United States Code; and for 
payments to the Department of Defense Military Retirement Fund; 
$384,770,000.

                      Reserve Personnel, Air Force

    For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Air Force Reserve on active duty 
under sections 10211, 10305, and 8038 of title 10, United States Code, 
or while serving on active duty under section 12301(d) of title 10, 
United States Code, in connection with performing duty specified in 
section 12310(a) of title 10, United States Code, or while undergoing 
reserve training, or while performing drills or equivalent duty or 
other duty, and for members of the Air Reserve Officers' Training 
Corps, and expenses authorized by section 16131 of title 10, United 
States Code; and for payments to the Department of Defense Military 
Retirement Fund; $815,745,000.

                     National Guard Personnel, Army

    For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Army National Guard while on duty 
under section 10211, 10302, or 12402 of title 10 or section 708 of 
title 32, United States Code, or while serving on duty under section 
12301(d) of title 10 or section 502(f) of title 32, United States Code, 
in connection with performing duty specified in section 12310(a) of 
title 10, United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and expenses 
authorized by section 16131 of title 10, United States Code; and for 
payments to the Department of Defense Military Retirement Fund; 
$3,446,867,000.

                  National Guard Personnel, Air Force

    For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Air National Guard on duty under 
section 10211, 10305, or 12402 of title 10 or section 708 of title 32, 
United States Code, or while serving on duty under section 12301(d) of 
title 10 or section 502(f) of title 32, United States Code, in 
connection with performing duty specified in section 12310(a) of title 
10, United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and expenses 
authorized by section 16131 of title 10, United States Code; and for 
payments to the Department of Defense Military Retirement Fund; 
$1,334,712,000.

                                TITLE II

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

                     (including transfer of funds)

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Army, as authorized by law; and not to 
exceed $11,437,000 can be used for emergencies and extraordinary 
expenses, to be expended on the approval or authority of the Secretary 
of the Army, and payments may be made on his certificate of necessity 
for confidential military purposes, as follows:
            Budget Activity 1, Operating Forces, $8,394,122,000;
            Budget Activity 2, Mobilization, $566,444,000;
            Budget Activity 3, Training and Recruiting, $3,280,148,000; 
        and
            Budget Activity 4, Administration and Servicewide 
        Activities, $5,029,759,000:
Provided, That a reduction of $357,000,000 shall be made to the total 
of these budget activities; in all; $16,913,473,000 and, in addition, 
$50,000,000 shall be derived by transfer from the National Defense 
Stockpile Transaction Fund.

                    Operation and Maintenance, Navy

                     (including transfer of funds)

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Navy and the Marine Corps, as 
authorized by law; and not to exceed $5,500,000, can be used for 
emergencies and extraordinary expenses, to be expended on the approval 
or authority of the Secretary of the Navy, and payments may be made on 
his certificate of necessity for confidential military purposes, as 
follows:
            Budget Activity 1, Operating Forces, $15,345,257,000, of 
        which not less than $2,040,690,000 shall be obligated for ship 
        depot maintenance;
            Budget Activity 2, Mobilization, $1,226,985,000;
            Budget Activity 3, Training and Recruiting, $1,681,931,000; 
        and
            Budget Activity 4, Administration and Servicewide 
        Activities, $3,568,246,000:
Provided, That a reduction of $246,000,000 shall be made to the total 
of these budget activities; in all; $21,576,419,000 and, in addition, 
$50,000,000 shall be derived by transfer from the National Defense 
Stockpile Transaction Fund.

                Operation and Maintenance, Marine Corps

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Marine Corps, as authorized by law, as 
follows:
            Budget Activity 1, Operating Forces, $1,670,747,000;
            Budget Activity 3, Training and Recruiting, $388,282,000; 
        and
            Budget Activity 4, Administration and Servicewide 
        Activities, $278,506,000:
Provided, That a reduction of $9,000,000 shall be made to the total of 
these budget activities; in all; $2,328,535,000.

                  Operation and Maintenance, Air Force

                     (including transfer of funds)

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Air Force, as authorized by law; and 
not to exceed $8,362,000 can be used for emergencies and extraordinary 
expenses, to be expended on the approval or authority of the Secretary 
of the Air Force, and payments may be made on her certificate of 
necessity for confidential military purposes, as follows:
            Budget Activity 1, Operating Forces, $9,877,438,000;
            Budget Activity 2, Mobilization, $3,122,848,000;
            Budget Activity 3, Training and Recruiting, $1,613,047,000; 
        and
            Budget Activity 4, Administration and Servicewide 
        Activities, $4,210,052,000:
Provided, That a reduction of $231,000,000 shall be made to the total 
of these budget activities; in all; $18,592,385,000 and, in addition, 
$50,000,000 shall be derived by transfer from the National Defense 
Stockpile Transaction Fund.

                Operation and Maintenance, Defense-Wide

                     (including transfer of funds)

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of activities and agencies of the Department 
of Defense (other than the military departments), as authorized by law; 
and not to exceed $28,850,000 can be used for emergencies and 
extraordinary expenses, to be expended on the approval or authority of 
the Secretary of Defense, and payments may be made on his certificate 
of necessity for confidential military purposes, as follows:
            Budget Activity 1, Operating Forces, $454,007,000, of which 
        not to exceed $25,000,000 may be available for the CINC 
        initiative fund account;
            Budget Activity 2, Mobilization, $27,260,000;
            Budget Activity 3, Training and Recruiting, $159,155,000;
            Budget Activity 4, Administration and Servicewide 
        Activities, $8,716,689,000; and
            Budget Activity 5, Special Operations, $1,123,527,000:
Provided, That a reduction of $81,000,000 shall be made to the total of 
these budget activities; in all; $10,399,638,000.

                Operation and Maintenance, Army Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, and 
administration, of the Army Reserve; repair of facilities and 
equipment; hire of passenger motor vehicles; travel and transportation; 
care of the dead; recruiting; procurement of services, supplies, and 
equipment; and communications; $1,212,891,000.

                Operation and Maintenance, Navy Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, and 
administration, of the Navy Reserve; repair of facilities and 
equipment; hire of passenger motor vehicles; travel and transportation; 
care of the dead; recruiting; procurement of services, supplies, and 
equipment; and communications; $834,211,000.

            Operation and Maintenance, Marine Corps Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, and 
administration, of the Marine Corps Reserve; repair of facilities and 
equipment; hire of passenger motor vehicles; travel and transportation; 
care of the dead; recruiting; procurement of services, supplies, and 
equipment; and communications; $110,366,000.

              Operation and Maintenance, Air Force Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, and 
administration, of the Air Force Reserve; repair of facilities and 
equipment; hire of passenger motor vehicles; travel and transportation; 
care of the dead; recruiting; procurement of services, supplies, and 
equipment; and communications; $1,631,200,000.

             Operation and Maintenance, Army National Guard

    For expenses of training, organizing, and administering the Army 
National Guard, including medical and hospital treatment and related 
expenses in non-Federal hospitals; maintenance, operation, and repairs 
to structures and facilities; hire of passenger motor vehicles; 
personnel services in the National Guard Bureau; travel expenses (other 
than mileage), as authorized by law for Army personnel on active duty, 
for Army National Guard division, regimental, and battalion commanders 
while inspecting units in compliance with National Guard Bureau 
regulations when specifically authorized by the Chief, National Guard 
Bureau; supplying and equipping the Army National Guard as authorized 
by law; and expenses of repair, modification, maintenance, and issue of 
supplies and equipment (including aircraft); $2,449,932,000: Provided, 
That not later than March 15, 1998, the Director of the Army National 
Guard shall provide a report to the congressional defense committees 
identifying the allocation, by installation and activity, of all base 
operations funds appropriated under this heading.

             Operation and Maintenance, Air National Guard

    For operation and maintenance of the Air National Guard, including 
medical and hospital treatment and related expenses in non-Federal 
hospitals; maintenance, operation, repair, and other necessary expenses 
of facilities for the training and administration of the Air National 
Guard, including repair of facilities, maintenance, operation, and 
modification of aircraft; transportation of things, hire of passenger 
motor vehicles; supplies, materials, and equipment, as authorized by 
law for the Air National Guard; and expenses incident to the 
maintenance and use of supplies, materials, and equipment, including 
such as may be furnished from stocks under the control of agencies of 
the Department of Defense; travel expenses (other than mileage) on the 
same basis as authorized by law for Air National Guard personnel on 
active Federal duty, for Air National Guard commanders while inspecting 
units in compliance with National Guard Bureau regulations when 
specifically authorized by the Chief, National Guard Bureau; 
$3,010,282,000.

             Overseas Contingency Operations Transfer Fund

                     (including transfer of funds)

    For expenses directly relating to Overseas Contingency Operations 
by United States military forces; $1,889,000,000: Provided, That the 
Secretary of Defense may transfer these funds only to operation and 
maintenance accounts within this title: Provided further, That the 
funds transferred shall be merged with and shall be available for the 
same purposes and for the same time period, as the appropriation to 
which transferred: Provided further, That the transfer authority 
provided in this paragraph is in addition to any other transfer 
authority contained elsewhere in this Act.

          United States Court of Appeals for the Armed Forces

    For salaries and expenses necessary for the United States Court of 
Appeals for the Armed Forces; $6,952,000, of which not to exceed $2,500 
can be used for official representation purposes.

                    Environmental Restoration, Army

                     (including transfer of funds)

    For the Department of the Army, $375,337,000, to remain available 
until transferred: Provided, That the Secretary of the Army shall, upon 
determining that such funds are required for environmental restoration, 
reduction and recycling of hazardous waste, removal of unsafe buildings 
and debris of the Department of the Army, or for similar purposes, 
transfer the funds made available by this appropriation to other 
appropriations made available to the Department of the Army, to be 
merged with and to be available for the same purposes and for the same 
time period as the appropriations to which transferred: Provided 
further, That upon a determination that all or part of the funds 
transferred from this appropriation are not necessary for the purposes 
provided herein, such amounts may be transferred back to this 
appropriation: Provided further, That not more than twenty-five per 
centum of funds provided under this heading may be obligated for 
environmental remediation by the Corps of Engineers under total 
environmental remediation contracts.

                    Environmental Restoration, Navy

                     (including transfer of funds)

    For the Department of the Navy, $275,500,000, to remain available 
until transferred: Provided, That the Secretary of the Navy shall, upon 
determining that such funds are required for environmental restoration, 
reduction and recycling of hazardous waste, removal of unsafe buildings 
and debris of the Department of the Navy, or for similar purposes, 
transfer the funds made available by this appropriation to other 
appropriations made available to the Department of the Navy, to be 
merged with and to be available for the same purposes and for the same 
time period as the appropriations to which transferred: Provided 
further, That upon a determination that all or part of the funds 
transferred from this appropriation are not necessary for the purposes 
provided herein, such amounts may be transferred back to this 
appropriation.

                  Environmental Restoration, Air Force

                     (including transfer of funds)

    For the Department of the Air Force, $376,900,000, to remain 
available until transferred: Provided, That the Secretary of the Air 
Force shall, upon determining that such funds are required for 
environmental restoration, reduction and recycling of hazardous waste, 
removal of unsafe buildings and debris of the Department of the Air 
Force, or for similar purposes, transfer the funds made available by 
this appropriation to other appropriations made available to the 
Department of the Air Force, to be merged with and to be available for 
the same purposes and for the same time period as the appropriations to 
which transferred: Provided further, That upon a determination that all 
or part of the funds transferred from this appropriation are not 
necessary for the purposes provided herein, such amounts may be 
transferred back to this appropriation.

                Environmental Restoration, Defense-Wide

                     (including transfer of funds)

    For the Department of the Defense, $26,900,000, to remain available 
until transferred: Provided, That the Secretary of Defense shall, upon 
determining that such funds are required for environmental restoration, 
reduction and recycling of hazardous waste, removal of unsafe buildings 
and debris of the Department of Defense, or for similar purposes, 
transfer the funds made available by this appropriation to other 
appropriations made available to the Department of Defense, to be 
merged with and to be available for the same purposes and for the same 
time period as the appropriations to which transferred: Provided 
further, That upon a determination that all or part of the funds 
transferred from this appropriation are not necessary for the purposes 
provided herein, such amounts may be transferred back to this 
appropriation.

         Environmental Restoration, Formerly Used Defense Sites

                     (including transfer of funds)

    For the Department of the Army, $242,300,000, to remain available 
until transferred: Provided, That the Secretary of the Army shall, upon 
determining that such funds are required for environmental restoration, 
reduction and recycling of hazardous waste, removal of unsafe buildings 
and debris at sites formerly used by the Department of Defense, 
transfer the funds made available by this appropriation to other 
appropriations made available to the Department of the Army, to be 
merged with and to be available for the same purposes and for the same 
time period as the appropriations to which transferred: Provided 
further, That upon a determination that all or part of the funds 
transferred from this appropriation are not necessary for the purposes 
provided herein, such amounts may be transferred back to this 
appropriation.

             Overseas Humanitarian, Disaster, and Civic Aid

    For expenses relating to the Overseas Humanitarian, Disaster, and 
Civic Aid programs of the Department of Defense (consisting of the 
programs provided under sections 401, 402, 404, 2547, and 2551 of title 
10, United States Code); $40,130,000, to remain available until 
September 30, 1999.

                  Former Soviet Union Threat Reduction

    For assistance to the republics of the former Soviet Union, 
including assistance provided by contract or by grants, for 
facilitating the elimination and the safe and secure transportation and 
storage of nuclear, chemical and other weapons; for establishing 
programs to prevent the proliferation of weapons, weapons components, 
and weapon-related technology and expertise; for programs relating to 
the training and support of defense and military personnel for 
demilitarization and protection of weapons, weapons components and 
weapons technology and expertise; $322,200,000, to remain available 
until expended: Provided, That of the amounts provided under this 
heading, $35,000,000 shall be available only to support the dismantling 
and disposal of nuclear submarines and submarine reactor components in 
the Russian Far East.

                 Quality of Life Enhancements, Defense

          For expenses, not otherwise provided for, resulting from 
unfunded shortfalls in the repair and maintenance of real property of 
the Department of Defense (including military housing and barracks); 
$100,000,000, for the maintenance of real property of the Department of 
Defense (including minor construction and major maintenance and 
repair), which shall remain available for obligation until September 
30, 1998, as follows:
            Army, $100,000,000.

                               TITLE III

                              PROCUREMENT

                       Aircraft Procurement, Army

    For construction, procurement, production, modification, and 
modernization of aircraft, equipment, including ordnance, ground 
handling equipment, spare parts, and accessories therefor; specialized 
equipment and training devices; expansion of public and private plants, 
including the land necessary therefor, for the foregoing purposes, and 
such lands and interests therein, may be acquired, and construction 
prosecuted thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in public and 
private plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the foregoing 
purposes; $1,356,959,000, to remain available for obligation until 
September 30, 2000.

                       Missile Procurement, Army

    For construction, procurement, production, modification, and 
modernization of missiles, equipment, including ordnance, ground 
handling equipment, spare parts, and accessories therefor; specialized 
equipment and training devices; expansion of public and private plants, 
including the land necessary therefor, for the foregoing purposes, and 
such lands and interests therein, may be acquired, and construction 
prosecuted thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in public and 
private plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the foregoing 
purposes; $1,173,081,000, to remain available for obligation until 
September 30, 2000.

        Procurement of Weapons and Tracked Combat Vehicles, Army

    For construction, procurement, production, and modification of 
weapons and tracked combat vehicles, equipment, including ordnance, 
spare parts, and accessories therefor; specialized equipment and 
training devices; expansion of public and private plants, including the 
land necessary therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private plants; 
reserve plant and Government and contractor-owned equipment layaway; 
and other expenses necessary for the foregoing purposes; 
$1,156,506,000, to remain available for obligation until September 30, 
2000.

                    Procurement of Ammunition, Army

    For construction, procurement, production, and modification of 
ammunition, and accessories therefor; specialized equipment and 
training devices; expansion of public and private plants, including 
ammunition facilities authorized by section 2854, title 10, United 
States Code, and the land necessary therefor, for the foregoing 
purposes, and such lands and interests therein, may be acquired, and 
construction prosecuted thereon prior to approval of title; and 
procurement and installation of equipment, appliances, and machine 
tools in public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses necessary for 
the foregoing purposes; $1,042,602,000, to remain available for 
obligation until September 30, 2000.

                        Other Procurement, Army

    For construction, procurement, production, and modification of 
vehicles, including tactical, support, and non-tracked combat vehicles; 
communications and electronic equipment; other support equipment; spare 
parts, ordnance, and accessories therefor; specialized equipment and 
training devices; expansion of public and private plants, including the 
land necessary therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private plants; 
reserve plant and Government and contractor-owned equipment layaway; 
and other expenses necessary for the foregoing purposes; 
$2,783,735,000, to remain available for obligation until September 30, 
2000.

                       Aircraft Procurement, Navy

    For construction, procurement, production, modification, and 
modernization of aircraft, equipment, including ordnance, spare parts, 
and accessories therefor; specialized equipment; expansion of public 
and private plants, including the land necessary therefor, and such 
lands and interests therein, may be acquired, and construction 
prosecuted thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in public and 
private plants; reserve plant and Government and contractor-owned 
equipment layaway; $6,312,937,000, to remain available for obligation 
until September 30, 2000.

                       Weapons Procurement, Navy

    For construction, procurement, production, modification, and 
modernization of missiles, torpedoes, other weapons, and related 
support equipment including spare parts, and accessories therefor; 
expansion of public and private plants, including the land necessary 
therefor, and such lands and interests therein, may be acquired, and 
construction prosecuted thereon prior to approval of title; and 
procurement and installation of equipment, appliances, and machine 
tools in public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; $1,138,393,000, to remain available 
for obligation until September 30, 2000.

            Procurement of Ammunition, Navy and Marine Corps

    For construction, procurement, production, and modification of 
ammunition, and accessories therefor; specialized equipment and 
training devices; expansion of public and private plants, including 
ammunition facilities authorized by section 2854, title 10, United 
States Code, and the land necessary therefor, for the foregoing 
purposes, and such lands and interests therein, may be acquired, and 
construction prosecuted thereon prior to approval of title; and 
procurement and installation of equipment, appliances, and machine 
tools in public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses necessary for 
the foregoing purposes; $344,797,000, to remain available for 
obligation until September 30, 2000.

                   Shipbuilding and Conversion, Navy

    For expenses necessary for the construction, acquisition, or 
conversion of vessels as authorized by law, including armor and 
armament thereof, plant equipment, appliances, and machine tools and 
installation thereof in public and private plants; reserve plant and 
Government and contractor-owned equipment layaway; procurement of 
critical, long leadtime components and designs for vessels to be 
constructed or converted in the future; and expansion of public and 
private plants, including land necessary therefor, and such lands and 
interests therein, may be acquired, and construction prosecuted thereon 
prior to approval of title, as follows:
            For continuation of the SSN-21 attack submarine program, 
        $153,440,000;
            NSSN, $2,314,903,000;
            NSSN (AP), $284,859,000;
            CVN-77 (AP), $345,000,000;
            CVN Refuelings, $1,615,003,000;
            CVN Refuelings (AP), $92,855,000;
            DDG-51 destroyer program, $3,385,767,000;
            DDG-51 destroyer program (AP), $157,806,000;
            Oceanographic ship program, $73,000,000;
            LCAC landing craft air cushion program, $17,300,000; and
            For craft, outfitting, post delivery, conversions, and 
        first destination transportation, $83,177,000;
In all: $8,510,458,000, to remain available for obligation until 
September 30, 2004: Provided, That additional obligations may be 
incurred after September 30, 2004, for engineering services, tests, 
evaluations, and other such budgeted work that must be performed in the 
final stage of ship construction.
    None of the funds provided under this heading for the construction 
or conversion of any naval vessel to be constructed in shipyards in the 
United States shall be expended in foreign facilities for the 
construction of major components of such vessel: Provided, That none of 
the funds provided under this heading shall be used for the 
construction of any naval vessel in foreign shipyards.

                        Other Procurement, Navy

    For procurement, production, and modernization of support equipment 
and materials not otherwise provided for, Navy ordnance (except 
ordnance for new aircraft, new ships, and ships authorized for 
conversion); the purchase of not to exceed 194 passenger motor vehicles 
for replacement only; and the purchase of one vehicle required for 
physical security of personnel, notwithstanding price limitations 
applicable to passenger vehicles but not to exceed $232,340 per 
vehicle; expansion of public and private plants, including the land 
necessary therefor, and such lands and interests therein, may be 
acquired, and construction prosecuted thereon prior to approval of 
title; and procurement and installation of equipment, appliances, and 
machine tools in public and private plants; reserve plant and 
Government and contractor-owned equipment layaway; $2,865,800,000, to 
remain available for obligation until September 30, 2000.

                       Procurement, Marine Corps

    For expenses necessary for the procurement, manufacture, and 
modification of missiles, armament, military equipment, spare parts, 
and accessories therefor; plant equipment, appliances, and machine 
tools, and installation thereof in public and private plants; reserve 
plant and Government and contractor-owned equipment layaway; vehicles 
for the Marine Corps, including the purchase of not to exceed 40 
passenger motor vehicles for replacement only; and expansion of public 
and private plants, including land necessary therefor, and such lands 
and interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; $440,106,000, to remain available 
for obligation until September 30, 2000.

                    Aircraft Procurement, Air Force

    For construction, procurement, and modification of aircraft and 
equipment, including armor and armament, specialized ground handling 
equipment, and training devices, spare parts, and accessories therefor; 
specialized equipment; expansion of public and private plants, 
Government-owned equipment and installation thereof in such plants, 
erection of structures, and acquisition of land, for the foregoing 
purposes, and such lands and interests therein, may be acquired, and 
construction prosecuted thereon prior to approval of title; reserve 
plant and Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes including rents and 
transportation of things; $6,375,847,000 to remain available for 
obligation until September 30, 2000.

                     Missile Procurement, Air Force

    For construction, procurement, and modification of missiles, 
spacecraft, rockets, and related equipment, including spare parts and 
accessories therefor, ground handling equipment, and training devices; 
expansion of public and private plants, Government-owned equipment and 
installation thereof in such plants, erection of structures, and 
acquisition of land, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses necessary for 
the foregoing purposes including rents and transportation of things; 
$2,431,741,000, to remain available for obligation until September 30, 
2000.

                  Procurement of Ammunition, Air Force

    For construction, procurement, production, and modification of 
ammunition, and accessories therefor; specialized equipment and 
training devices; expansion of public and private plants, including 
ammunition facilities authorized by section 2854, title 10, United 
States Code, and the land necessary therefor, for the foregoing 
purposes, and such lands and interests therein, may be acquired, and 
construction prosecuted thereon prior to approval of title; and 
procurement and installation of equipment, appliances, and machine 
tools in public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses necessary for 
the foregoing purposes; $400,984,000, to remain available for 
obligation until September 30, 2000.

                      Other Procurement, Air Force

    For procurement and modification of equipment (including ground 
guidance and electronic control equipment, and ground electronic and 
communication equipment), and supplies, materials, and spare parts 
therefor, not otherwise provided for; the purchase of not to exceed 196 
passenger motor vehicles for replacement only; the purchase of one 
vehicle required for physical security of personnel, notwithstanding 
price limitations applicable to passenger vehicles but not to exceed 
$232,340 per vehicle; and expansion of public and private plants, 
Government-owned equipment and installation thereof in such plants, 
erection of structures, and acquisition of land, for the foregoing 
purposes, and such lands and interests therein, may be acquired, and 
construction prosecuted thereon, prior to approval of title; reserve 
plant and Government and contractor-owned equipment layaway; 
$6,653,053,000, to remain available for obligation until September 30, 
2000.

                       Procurement, Defense-Wide

    For expenses of activities and agencies of the Department of 
Defense (other than the military departments) necessary for 
procurement, production, and modification of equipment, supplies, 
materials, and spare parts therefor, not otherwise provided for; the 
purchase of not to exceed 381 passenger motor vehicles for replacement 
only; expansion of public and private plants, equipment, and 
installation thereof in such plants, erection of structures, and 
acquisition of land for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; reserve plant and Government and 
contractor-owned equipment layaway; $1,753,285,000, to remain available 
for obligation until September 30, 2000.

                  National Guard and Reserve Equipment

    For procurement of aircraft, missiles, tracked combat vehicles, 
ammunition, other weapons, and other procurement for the reserve 
components of the Armed Forces; $653,000,000, to remain available for 
obligation until September 30, 2000: Provided, That the Chiefs of the 
Reserve and National Guard components shall, not later than 30 days 
after the enactment of this Act, individually submit to the 
congressional defense committees the modernization priority assessment 
for their respective Reserve or National Guard component.

                                TITLE IV

              RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

           Research, Development, Test, and Evaluation, Army

    For expenses necessary for basic and applied scientific research, 
development, test and evaluation, including maintenance, 
rehabilitation, lease, and operation of facilities and equipment; 
$4,984,083,000 to remain available for obligation until September 30, 
1999.

           Research, Development, Test, and Evaluation, Navy

    For expenses necessary for basic and applied scientific research, 
development, test and evaluation, including maintenance, 
rehabilitation, lease, and operation of facilities and equipment; 
$7,532,846,000, to remain available for obligation until September 30, 
1999: Provided, That funds appropriated in this paragraph which are 
available for the V-22 may be used to meet unique requirements of the 
Special Operations Forces.

         Research, Development, Test, and Evaluation, Air Force

    For expenses necessary for basic and applied scientific research, 
development, test and evaluation, including maintenance, 
rehabilitation, lease, and operation of facilities and equipment; 
$14,142,873,000, to remain available for obligation until September 30, 
1999.

       Research, Development, Test, and Evaluation, Defense-Wide

    For expenses of activities and agencies of the Department of 
Defense (other than the military departments), necessary for basic and 
applied scientific research, development, test and evaluation; advanced 
research projects as may be designated and determined by the Secretary 
of Defense, pursuant to law; maintenance, rehabilitation, lease, and 
operation of facilities and equipment; $9,608,689,000, to remain 
available for obligation until September 30, 1999.

               Developmental Test and Evaluation, Defense

    For expenses, not otherwise provided for, of independent activities 
of the Director, Test and Evaluation in the direction and supervision 
of developmental test and evaluation, including performance and joint 
developmental testing and evaluation; and administrative expenses in 
connection therewith; $251,183,000, to remain available for obligation 
until September 30, 1999.

                Operational Test and Evaluation, Defense

    For expenses, not otherwise provided for, necessary for the 
independent activities of the Director, Operational Test and Evaluation 
in the direction and supervision of operational test and evaluation, 
including initial operational test and evaluation which is conducted 
prior to, and in support of, production decisions; joint operational 
testing and evaluation; and administrative expenses in connection 
therewith; $31,384,000, to remain available for obligation until 
September 30, 1999.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

    For the Defense Working Capital Funds; $871,952,000.

                     National Defense Sealift Fund

    For National Defense Sealift Fund programs, projects, and 
activities, and for expenses of the National Defense Reserve Fleet, as 
established by section 11 of the Merchant Ship Sales Act of 1946 (50 
U.S.C. App. 1744); $516,126,000, to remain available until expended: 
Provided, That none of the funds provided in this paragraph shall be 
used to award a new contract that provides for the acquisition of any 
of the following major components unless such components are 
manufactured in the United States: auxiliary equipment, including 
pumps, for all ship-board services; propulsion system components (that 
is; engines, reduction gears, and propellers); shipboard cranes; and 
spreaders for shipboard cranes: Provided further, That the exercise of 
an option in a contract awarded through the obligation of previously 
appropriated funds shall not be considered to be the award of a new 
contract: Provided further, That the Secretary of the military 
department responsible for such procurement may waive these 
restrictions on a case-by-case basis by certifying in writing to the 
Committees on Appropriations of the House of Representatives and the 
Senate, that adequate domestic supplies are not available to meet 
Department of Defense requirements on a timely basis and that such an 
acquisition must be made in order to acquire capability for national 
security purposes.

                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

    For expenses, not otherwise provided for, for medical and health 
care programs of the Department of Defense, as authorized by law; 
$10,317,675,000, of which $10,043,607,000 shall be for Operation and 
maintenance, of which not to exceed one per centum shall remain 
available until September 30, 1999, and of which $274,068,000, to 
remain available for obligation until September 30, 2000, shall be for 
Procurement.

           Chemical Agents and Munitions Destruction, Defense

    For expenses, not otherwise provided for, necessary for the 
destruction of the United States stockpile of lethal chemical agents 
and munitions in accordance with the provisions of section 1412 of the 
Department of Defense Authorization Act, 1986 (50 U.S.C. 1521), and for 
the destruction of other chemical warfare materials that are not in the 
chemical weapon stockpile, $609,700,000, of which $467,200,000 shall be 
for Operation and maintenance, $73,200,000 shall be for Procurement to 
remain available until September 30, 2000, and $69,300,000 shall be for 
Research, development, test and evaluation to remain available until 
September 30, 1999: Provided, That of the funds available under this 
heading, $1,000,000 shall be available until expended each year only 
for a Johnston Atoll off-island leave program: Provided further, That 
the Secretaries concerned shall, pursuant to uniform regulations, 
prescribe travel and transportation allowances for travel by 
participants in the off-island leave program.

         Drug Interdiction and Counter-Drug Activities, Defense

                     (including transfer of funds)

    For drug interdiction and counter-drug activities of the Department 
of Defense, for transfer to appropriations available to the Department 
of Defense for military personnel of the reserve components serving 
under the provisions of title 10 and title 32, United States Code; for 
Operation and maintenance; for Procurement; and for Research, 
development, test and evaluation; $691,482,000: Provided, That the 
funds appropriated under this head shall be available for obligation 
for the same time period and for the same purpose as the appropriation 
to which transferred: Provided further, That the transfer authority 
provided in this paragraph is in addition to any transfer authority 
contained elsewhere in this Act.

                    Office of the Inspector General

    For expenses and activities of the Office of the Inspector General 
in carrying out the provisions of the Inspector General Act of 1978, as 
amended; $135,380,000, of which $133,380,000 shall be for Operation and 
maintenance, of which not to exceed $500,000, is available for 
emergencies and extraordinary expenses to be expended on the approval 
or authority of the Inspector General, and payments may be made on his 
certificate of necessity for confidential military purposes; and of 
which $2,000,000, to remain available until September 30, 2000, shall 
be for Procurement.

                               TITLE VII

                            RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

    For payment to the Central Intelligence Agency Retirement and 
Disability System Fund, to maintain proper funding level for continuing 
the operation of the Central Intelligence Agency Retirement and 
Disability System; $196,900,000.

               Intelligence Community Management Account

    For necessary expenses of the Intelligence Community Management 
Account; $122,580,000.

Payment to Kaho'olawe Island Conveyance, Remediation, and Environmental 
                            Restoration Fund

    For payment to Kaho'olawe Island Conveyance, Remediation, and 
Environmental Restoration Fund, as authorized by law; $35,000,000, to 
remain available until expended.

                 National Security Education Trust Fund

    For the purposes of title VIII of Public Law 102-183, $2,000,000, 
to be derived from the National Security Education Trust Fund, to 
remain available until expended.

                               TITLE VIII

                           GENERAL PROVISIONS

    Sec. 8001. No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes not authorized by the 
Congress.
    Sec. 8002. During the current fiscal year, provisions of law 
prohibiting the payment of compensation to, or employment of, any 
person not a citizen of the United States shall not apply to personnel 
of the Department of Defense: Provided, That salary increases granted 
to direct and indirect hire foreign national employees of the 
Department of Defense funded by this Act shall not be at a rate in 
excess of the percentage increase authorized by law for civilian 
employees of the Department of Defense whose pay is computed under the 
provisions of section 5332 of title 5, United States Code, or at a rate 
in excess of the percentage increase provided by the appropriate host 
nation to its own employees, whichever is higher: Provided further, 
That this section shall not apply to Department of Defense foreign 
service national employees serving at United States diplomatic missions 
whose pay is set by the Department of State under the Foreign Service 
Act of 1980: Provided further, That the limitations of this provision 
shall not apply to foreign national employees of the Department of 
Defense in the Republic of Turkey.
    Sec. 8003. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year, unless 
expressly so provided herein.
    Sec. 8004. No more than 20 per centum of the appropriations in this 
Act which are limited for obligation during a single fiscal year shall 
be obligated during the last two months of such fiscal year: Provided, 
That this section shall not apply to obligations for support of active 
duty training of reserve components or summer camp training of the 
Reserve Officers' Training Corps.

                          (transfer of funds)

    Sec. 8005. Upon determination by the Secretary of Defense that such 
action is necessary in the national interest, he may, with the approval 
of the Office of Management and Budget, transfer not to exceed 
$2,000,000,000 of working capital funds of the Department of Defense or 
funds made available in this Act to the Department of Defense for 
military functions (except military construction) between such 
appropriations or funds or any subdivision thereof, to be merged with 
and to be available for the same purposes, and for the same time 
period, as the appropriation or fund to which transferred: Provided, 
That such authority to transfer may not be used unless for higher 
priority items, based on unforeseen military requirements, than those 
for which originally appropriated and in no case where the item for 
which funds are requested has been denied by Congress: Provided 
further, That the Secretary of Defense shall notify the Congress 
promptly of all transfers made pursuant to this authority or any other 
authority in this Act: Provided further, That no part of the funds in 
this Act shall be available to prepare or present a request to the 
Committees on Appropriations for reprogramming of funds, unless for 
higher priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where the item 
for which reprogramming is requested has been denied by the Congress: 
Provided further, That of the authority provided under this section, 
not to exceed $20,000,000 shall be available to meet requirements for 
termination of the Reserve Mobilization Insurance Program, 
notwithstanding Chapter 1214 of Title 10 of the United States Code.

                          (transfer of funds)

    Sec. 8006. During the current fiscal year, cash balances in working 
capital funds of the Department of Defense established pursuant to 
section 2208 of title 10, United States Code, may be maintained in only 
such amounts as are necessary at any time for cash disbursements to be 
made from such funds: Provided, That transfers may be made between such 
funds: Provided further, That transfers may be made between working 
capital funds and the ``Foreign Currency Fluctuations, Defense'' 
appropriation and the ``Operation and Maintenance'' appropriation 
accounts in such amounts as may be determined by the Secretary of 
Defense, with the approval of the Office of Management and Budget, 
except that such transfers may not be made unless the Secretary of 
Defense has notified the Congress of the proposed transfer. Except in 
amounts equal to the amounts appropriated to working capital funds in 
this Act, no obligations may be made against a working capital fund to 
procure or increase the value of war reserve material inventory, unless 
the Secretary of Defense has notified the Congress prior to any such 
obligation.
    Sec. 8007. Funds appropriated by this Act may not be used to 
initiate a special access program without prior notification 30 
calendar days in session in advance to the congressional defense 
committees.
    Sec. 8008. None of the funds contained in this Act available for 
the Civilian Health and Medical Program of the Uniformed Services shall 
be available for payments to physicians and other non-institutional 
health care providers in excess of the amounts allowed in fiscal year 
1996 for similar services, except that: (a) for services for which the 
Secretary of Defense determines an increase is justified by economic 
circumstances, the allowable amounts may be increased in accordance 
with appropriate economic index data similar to that used pursuant to 
title XVIII of the Social Security Act; and (b) for services the 
Secretary determines are overpriced based on allowable payments under 
title XVIII of the Social Security Act, the allowable amounts shall be 
reduced by not more than 15 per centum (except that the reduction may 
be waived if the Secretary determines that it would impair adequate 
access to health care services for beneficiaries). The Secretary shall 
solicit public comment prior to promulgating regulations to implement 
this section. Such regulations shall include a limitation, similar to 
that used under title XVIII of the Social Security Act, on the extent 
to which a provider may bill a beneficiary an actual charge in excess 
of the allowable amount.
    Sec. 8009. None of the funds provided in this Act shall be 
available to initiate (1) a multiyear contract that employs economic 
order quantity procurement in excess of $20,000,000 in any one year of 
the contract or that includes an unfunded contingent liability in 
excess of $20,000,000, or (2) a contract for advance procurement 
leading to a multiyear contract that employs economic order quantity 
procurement in excess of $20,000,000 in any one year, unless the 
congressional defense committees have been notified at least thirty 
days in advance of the proposed contract award: Provided, That no part 
of any appropriation contained in this Act shall be available to 
initiate a multiyear contract for which the economic order quantity 
advance procurement is not funded at least to the limits of the 
Government's liability: Provided further, That no part of any 
appropriation contained in this Act shall be available to initiate 
multiyear procurement contracts for any systems or component thereof if 
the value of the multiyear contract would exceed $500,000,000 unless 
specifically provided in this Act: Provided further, That no multiyear 
procurement contract can be terminated without 10-day prior 
notification to the congressional defense committees: Provided further, 
That the execution of multiyear authority shall require the use of a 
present value analysis to determine lowest cost compared to an annual 
procurement.
    Funds appropriated in title III of this Act may be used for 
multiyear procurement contracts as follows:
            Apache Longbow radar;
            T-45 aircraft; and
            AV-8B aircraft.
    Sec. 8010. Within the funds appropriated for the operation and 
maintenance of the Armed Forces, funds are hereby appropriated pursuant 
to section 401 of title 10, United States Code, for humanitarian and 
civic assistance costs under chapter 20 of title 10, United States 
Code. Such funds may also be obligated for humanitarian and civic 
assistance costs incidental to authorized operations and pursuant to 
authority granted in section 401 of chapter 20 of title 10, United 
States Code, and these obligations shall be reported to Congress on 
September 30 of each year: Provided, That funds available for operation 
and maintenance shall be available for providing humanitarian and 
similar assistance by using Civic Action Teams in the Trust Territories 
of the Pacific Islands and freely associated states of Micronesia, 
pursuant to the Compact of Free Association as authorized by Public Law 
99-239: Provided further, That upon a determination by the Secretary of 
the Army that such action is beneficial for graduate medical education 
programs conducted at Army medical facilities located in Hawaii, the 
Secretary of the Army may authorize the provision of medical services 
at such facilities and transportation to such facilities, on a 
nonreimbursable basis, for civilian patients from American Samoa, the 
Commonwealth of the Northern Mariana Islands, the Marshall Islands, the 
Federated States of Micronesia, Palau, and Guam.
    Sec. 8011. (a) During fiscal year 1998, the civilian personnel of 
the Department of Defense may not be managed on the basis of any end-
strength, and the management of such personnel during that fiscal year 
shall not be subject to any constraint or limitation (known as an end-
strength) on the number of such personnel who may be employed on the 
last day of such fiscal year.
    (b) The fiscal year 1999 budget request for the Department of 
Defense as well as all justification material and other documentation 
supporting the fiscal year 1999 Department of Defense budget request 
shall be prepared and submitted to the Congress as if subsections (a) 
and (b) of this provision were effective with regard to fiscal year 
1999.
    (c) Nothing in this section shall be construed to apply to military 
(civilian) technicians.
    Sec. 8012. Notwithstanding any other provision of law, none of the 
funds made available by this Act shall be used by the Department of 
Defense to exceed, outside the fifty United States, its territories, 
and the District of Columbia, 125,000 civilian workyears: Provided, 
That workyears shall be applied as defined in the Federal Personnel 
Manual: Provided further, That workyears expended in dependent student 
hiring programs for disadvantaged youths shall not be included in this 
workyear limitation.
    Sec. 8013. None of the funds made available by this Act shall be 
used in any way, directly or indirectly, to influence congressional 
action on any legislation or appropriation matters pending before the 
Congress.
    Sec. 8014. (a) None of the funds appropriated by this Act shall be 
used to make contributions to the Department of Defense Education 
Benefits Fund pursuant to section 2006(g) of title 10, United States 
Code, representing the normal cost for future benefits under section 
3015(c) of title 38, United States Code, for any member of the armed 
services who, on or after the date of enactment of this Act--
            (1) enlists in the armed services for a period of active 
        duty of less than three years; or
            (2) receives an enlistment bonus under section 308a or 308f 
        of title 37, United States Code,
nor shall any amounts representing the normal cost of such future 
benefits be transferred from the Fund by the Secretary of the Treasury 
to the Secretary of Veterans Affairs pursuant to section 2006(d) of 
title 10, United States Code; nor shall the Secretary of Veterans 
Affairs pay such benefits to any such member: Provided, That in the 
case of a member covered by clause (1), these limitations shall not 
apply to members in combat arms skills or to members who enlist in the 
armed services on or after July 1, 1989, under a program continued or 
established by the Secretary of Defense in fiscal year 1991 to test the 
cost-effective use of special recruiting incentives involving not more 
than nineteen noncombat arms skills approved in advance by the 
Secretary of Defense: Provided further, That this subsection applies 
only to active components of the Army.
    (b) None of the funds appropriated by this Act shall be available 
for the basic pay and allowances of any member of the Army 
participating as a full-time student and receiving benefits paid by the 
Secretary of Veterans Affairs from the Department of Defense Education 
Benefits Fund when time spent as a full-time student is credited toward 
completion of a service commitment: Provided, That this subsection 
shall not apply to those members who have reenlisted with this option 
prior to October 1, 1987: Provided further, That this subsection 
applies only to active components of the Army.
    Sec. 8015. None of the funds appropriated by this Act shall be 
available to convert to contractor performance an activity or function 
of the Department of Defense that, on or after the date of enactment of 
this Act, is performed by more than ten Department of Defense civilian 
employees until a most efficient and cost-effective organization 
analysis is completed on such activity or function and certification of 
the analysis is made to the Committees on Appropriations of the House 
of Representatives and the Senate: Provided, That this section shall 
not apply to a commercial or industrial type function of the Department 
of Defense that: (1) is included on the procurement list established 
pursuant to section 2 of the Act of June 25, 1938 (41 U.S.C. 47), 
popularly referred to as the Javits-Wagner-O'Day Act; (2) is planned to 
be converted to performance by a qualified nonprofit agency for the 
blind or by a qualified nonprofit agency for other severely handicapped 
individuals in accordance with that Act; or (3) is planned to be 
converted to performance by a qualified firm under 51 per centum Native 
American ownership.

                          (transfer of funds)

    Sec. 8016. Funds appropriated in title III of this Act for the 
Department of Defense Pilot Mentor-Protege Program may be transferred 
to any other appropriation contained in this Act solely for the purpose 
of implementing a Mentor-Protege Program developmental assistance 
agreement pursuant to section 831 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 note), as 
amended, under the authority of this provision or any other transfer 
authority contained in this Act.
    Sec. 8017. None of the funds in this Act may be available for the 
purchase by the Department of Defense (and its departments and 
agencies) of welded shipboard anchor and mooring chain 4 inches in 
diameter and under unless the anchor and mooring chain are manufactured 
in the United States from components which are substantially 
manufactured in the United States: Provided, That for the purpose of 
this section manufactured will include cutting, heat treating, quality 
control, testing of chain and welding (including the forging and shot 
blasting process): Provided further, That for the purpose of this 
section substantially all of the components of anchor and mooring chain 
shall be considered to be produced or manufactured in the United States 
if the aggregate cost of the components produced or manufactured in the 
United States exceeds the aggregate cost of the components produced or 
manufactured outside the United States: Provided further, That when 
adequate domestic supplies are not available to meet Department of 
Defense requirements on a timely basis, the Secretary of the service 
responsible for the procurement may waive this restriction on a case-
by-case basis by certifying in writing to the Committees on 
Appropriations that such an acquisition must be made in order to 
acquire capability for national security purposes.
    Sec. 8018. None of the funds appropriated by this Act available for 
the Civilian Health and Medical Program of the Uniformed Services 
(CHAMPUS) shall be available for the reimbursement of any health care 
provider for inpatient mental health service for care received when a 
patient is referred to a provider of inpatient mental health care or 
residential treatment care by a medical or health care professional 
having an economic interest in the facility to which the patient is 
referred: Provided, That this limitation does not apply in the case of 
inpatient mental health services provided under the program for the 
handicapped under subsection (d) of section 1079 of title 10, United 
States Code, provided as partial hospital care, or provided pursuant to 
a waiver authorized by the Secretary of Defense because of medical or 
psychological circumstances of the patient that are confirmed by a 
health professional who is not a Federal employee after a review, 
pursuant to rules prescribed by the Secretary, which takes into account 
the appropriate level of care for the patient, the intensity of 
services required by the patient, and the availability of that care.
    Sec. 8019. Funds available in this Act may be used to provide 
transportation for the next-of-kin of individuals who have been 
prisoners of war or missing in action from the Vietnam era to an annual 
meeting in the United States, under such regulations as the Secretary 
of Defense may prescribe.
    Sec. 8020. Notwithstanding any other provision of law, during the 
current fiscal year, the Secretary of Defense may, by Executive 
Agreement, establish with host nation governments in NATO member states 
a separate account into which such residual value amounts negotiated in 
the return of United States military installations in NATO member 
states may be deposited, in the currency of the host nation, in lieu of 
direct monetary transfers to the United States Treasury: Provided, That 
such credits may be utilized only for the construction of facilities to 
support United States military forces in that host nation, or such real 
property maintenance and base operating costs that are currently 
executed through monetary transfers to such host nations: Provided 
further, That the Department of Defense's budget submission for fiscal 
year 1999 shall identify such sums anticipated in residual value 
settlements, and identify such construction, real property maintenance 
or base operating costs that shall be funded by the host nation through 
such credits: Provided further, That all military construction projects 
to be executed from such accounts must be previously approved in a 
prior Act of Congress: Provided further, That each such Executive 
Agreement with a NATO member host nation shall be reported to the 
congressional defense committees, the Committee on International 
Relations of the House of Representatives and the Committee on Foreign 
Relations of the Senate thirty days prior to the conclusion and 
endorsement of any such agreement established under this provision.
    Sec. 8021. None of the funds available to the Department of Defense 
may be used to demilitarize or dispose of M-1 Carbines, M-1 Garand 
rifles, M-14 rifles, .22 caliber rifles, .30 caliber rifles, or M-1911 
pistols.
    Sec. 8022. Notwithstanding any other provision of law, none of the 
funds appropriated by this Act shall be available to pay more than 50 
per centum of an amount paid to any person under section 308 of title 
37, United States Code, in a lump sum.
    Sec. 8023. A member of a reserve component whose unit or whose 
residence is located in a state which is not contiguous with another 
state is authorized to travel in a space required status on aircraft of 
the Armed Forces between home and place of inactive duty training, or 
place of duty in lieu of unit training assembly, when there is no road 
or railroad transportation (or combination of road and railroad 
transportation between those locations: Provided, That a member 
traveling in that status on a military aircraft pursuant to the 
authority provided in this section is not authorized to receive travel, 
transportation, or per diem allowances in connection with that travel.
    Sec. 8024. In addition to funds provided elsewhere in this Act, 
$8,000,000 is appropriated only for incentive payments authorized by 
section 504 of the Indian Financing Act of 1974, 25 U.S.C. 1544: 
Provided, That these payments shall be available only to contractors 
which have submitted subcontracting plans pursuant to 15 U.S.C. 637(d), 
and according to regulations which shall be promulgated by the 
Secretary of Defense within 90 days of the passage of this Act.
    Sec. 8025. Notwithstanding any other provision of law, of the 
revenue collected by the Department of Defense Working Capital Funds, 
such amounts as may be required shall be made available for obligation 
and expenditure for indemnification of the leasing entity or entities 
to accomplish the lease of aircraft for the VC-137 mission: Provided, 
That the funds made available pursuant to this section shall remain 
available until expended.
    Sec. 8026. During the current fiscal year, none of the funds 
available to the Department of Defense may be used to procure or 
acquire (1) defensive handguns unless such handguns are the M-9 or M-11 
9mm Department of Defense standard handguns, or (2) offensive handguns 
except for the Special Operations Forces: Provided, That the foregoing 
shall not apply to handguns and ammunition for marksmanship 
competitions.
    Sec. 8027. No more than $500,000 of the funds appropriated or made 
available in this Act shall be used during a single fiscal year for any 
single relocation of an organization, unit, activity or function of the 
Department of Defense into or within the National Capital Region: 
Provided, That the Secretary of Defense may waive this restriction on a 
case-by-case basis by certifying in writing to the congressional 
defense committees that such a relocation is required in the best 
interest of the Government.
    Sec. 8028. During the current fiscal year, funds appropriated or 
otherwise available for any Federal agency, the Congress, the judicial 
branch, or the District of Columbia may be used for the pay, 
allowances, and benefits of an employee as defined by section 2105 of 
title 5 or an individual employed by the government of the District of 
Columbia, permanent or temporary indefinite, who--
            (1) is a member of a Reserve component of the Armed Forces, 
        as described in section 261 of title 10, or the National Guard, 
        as described in section 101 of title 32;
            (2) performs, for the purpose of providing military aid to 
        enforce the law or providing assistance to civil authorities in 
        the protection or saving of life or property or prevention of 
        injury--
                    (A) Federal service under sections 331, 332, 333, 
                or 12406 of title 10, or other provision of law, as 
                applicable, or
                    (B) full-time military service for his or her 
                State, the District of Columbia, the Commonwealth of 
                Puerto Rico, or a territory of the United States; and
            (3) requests and is granted--
                    (A) leave under the authority of this section; or
                    (B) annual leave, which may be granted without 
                regard to the provisions of sections 5519 and 6323(b) 
                of title 5, if such employee is otherwise entitled to 
                such annual leave:
Provided, That any employee who requests leave under subsection (3)(A) 
for service described in subsection (2) of this section is entitled to 
such leave, subject to the provisions of this section and of the last 
sentence of section 6323(b) of title 5, and such leave shall be 
considered leave under section 6323(b) of title 5.
    Sec. 8029. None of the funds appropriated by this Act shall be 
available to perform any cost study pursuant to the provisions of OMB 
Circular A-76 if the study being performed exceeds a period of twenty-
four months after initiation of such study with respect to a single 
function activity or forty-eight months after initiation of such study 
for a multi-function activity.
    Sec. 8030. Funds appropriated by this Act for the American Forces 
Information Service shall not be used for any national or international 
political or psychological activities.
    Sec. 8031. Notwithstanding any other provision of law or 
regulation, the Secretary of Defense may adjust wage rates for civilian 
employees hired for certain health care occupations as authorized for 
the Secretary of Veterans Affairs by section 7455 of title 38, United 
States Code.
    Sec. 8032. None of the funds appropriated or made available in this 
Act shall be used to reduce or disestablish the operation of the 53rd 
Weather Reconnaissance Squadron of the Air Force Reserve, if such 
action would reduce the WC-130 Weather Reconnaissance mission below the 
levels funded in this Act.
    Sec. 8033. (a) Of the funds for the procurement of supplies or 
services appropriated by this Act, qualified nonprofit agencies for the 
blind or other severely handicapped shall be afforded the maximum 
practicable opportunity to participate as subcontractors and supplies 
in the performance of contracts let by the Department of Defense.
    (b) During the current fiscal year, a business concern which has 
negotiated with a military service or defense agency a subcontracting 
plan for the participation by small business concerns pursuant to 
section 8(d) of the Small Business Act (15 U.S.C. 637(d)) shall be 
given credit toward meeting that subcontracting goal for any purchases 
made from qualified nonprofit agencies for the blind or other severely 
handicapped.
    (c) For the purpose of this section, the phrase ``qualified 
nonprofit agency for the blind or other severely handicapped'' means a 
nonprofit agency for the blind or other severely handicapped that has 
been approved by the Committee for the Purchase from the Blind and 
Other Severely Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 
46-48).
    Sec. 8034. During the current fiscal year, net receipts pursuant to 
collections from third party payers pursuant to section 1095 of title 
10, United States Code, shall be made available to the local facility 
of the uniformed services responsible for the collections and shall be 
over and above the facility's direct budget amount.
    Sec. 8035. During the current fiscal year, the Department of 
Defense is authorized to incur obligations of not to exceed 
$350,000,000 for purposes specified in section 2350j(c) of title 10, 
United States Code, in anticipation of receipt of contributions, only 
from the Government of Kuwait, under that section: Provided, That, upon 
receipt, such contributions from the Government of Kuwait shall be 
credited to the appropriations or fund which incurred such obligations.
    Sec. 8036. Of the funds made available in this Act, not less than 
$27,200,000 shall be available for the Civil Air Patrol, of which 
$22,600,000 shall be available for Operation and maintenance.
    Sec. 8037. (a) None of the funds appropriated in this Act are 
available to establish a new Department of Defense (department) 
federally funded research and development center (FFRDC), either as a 
new entity, or as a separate entity administrated by an organization 
managing another FFRDC, or as a nonprofit membership corporation 
consisting of a consortium of other FFRDCs and other non-profit 
entities.
    (b) Limitation on Compensation--Federally Funded Research and 
Development Center (FFRDC).--No member of a Board of Directors, 
Trustees, Overseers, Advisory Group, Special Issues Panel, Visiting 
Committee, or any similar entity of a defense FFRDC, and no paid 
consultant to any defense FFRDC, may be compensated for his or her 
services as a member of such entity, or as a paid consultant, except 
under the same conditions, and to the same extent, as members of the 
Defense Science Board: Provided, That a member of any such entity 
referred to previously in this subsection shall be allowed travel 
expenses and per diem as authorized under the Federal Joint Travel 
Regulations, when engaged in the performance of membership duties.
    (c) Notwithstanding any other provision of law, none of the funds 
available to the department from any source during fiscal year 1998 may 
be used by a defense FFRDC, through a fee or other payment mechanism, 
for charitable contributions, for construction of new buildings, for 
payment of cost sharing for projects funded by government grants, or 
for absorption of contract overruns.
    (d) Notwithstanding any other provision of law, of the funds 
available to the department during fiscal year 1998, not more than 
6,206 staff years of technical effort (staff years) may be funded for 
defense FFRDCs: Provided, That of the specific amount referred to 
previously in this subsection, not more than 1,105 staff years may be 
funded for the defense studies and analysis FFRDCs.
    (e) Notwithstanding any other provision of law, the Secretary of 
Defense shall control the total number of staff years to be performed 
by defense FFRDCs during fiscal year 1998 so as to reduce the total 
amounts appropriated in titles II, III, and IV of this Act by 
$71,800,000: Provided, That the total amounts appropriated in titles 
II, III, and IV of this Act are hereby reduced by $71,800,000 to 
reflect savings from the use of defense FFRDCs by the department.
    (f) Within 60 days after enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense committees a report 
presenting the specific amounts of staff years of technical effort to 
be allocated by the department for each defense FFRDC during fiscal 
year 1998: Provided, That, after the submission of the report required 
by this subsection, the department may not reallocate more than five 
per centum of an FFRDC's staff years among other defense FFRDCs until 
30 days after a detailed justification for any such reallocation is 
submitted to the congressional defense committees.
    (g) The Secretary of Defense shall, with the submission of the 
department's fiscal year 1999 budget request, submit a report 
presenting the specific amounts of staff years of technical effort to 
be allocated for each defense FFRDC during that fiscal year.
    (h) The reductions specified in subsection (e) of this section 
shall be applied only to funds budgeted to purchase defense FFRDC 
activities and shall be applied on a pro-rata basis to each program, 
project and activity which included budget funds for defense FFRDC 
activities.
    (i) Not later than 90 days after enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report listing the specific funding reductions allocated 
to each category listed in subsection (h) above pursuant to this 
section.
    Sec. 8038. None of the funds in this or any other Act shall be 
available for the preparation of studies on--
            (a) the cost effectiveness or feasibility of removal and 
        transportation of unitary chemical weapons or agents from the 
        eight chemical storage sites within the continental United 
        States to Johnston Atoll: Provided, That this prohibition shall 
        not apply to General Accounting Office studies requested by a 
        Member of Congress or a Congressional Committee; and
            (b) the potential future uses of the nine chemical disposal 
        facilities other than for the destruction of stockpile chemical 
        munitions and as limited by section 1412(c)(2), Public Law 99-
        145: Provided, That this prohibition does not apply to future 
        use studies for the CAMDS facility at Tooele, Utah.
    Sec. 8039. None of the funds appropriated or made available in this 
Act shall be used to procure carbon, alloy or armor steel plate for use 
in any Government-owned facility or property under the control of the 
Department of Defense which were not melted and rolled in the United 
States or Canada: Provided, That these procurement restrictions shall 
apply to any and all Federal Supply Class 9515, American Society of 
Testing and Materials (ASTM) or American Iron and Steel Institute 
(AISI) specifications of carbon, alloy or armor steel plate: Provided 
further, That the Secretary of the military department responsible for 
the procurement may waive this restriction on a case-by-case basis by 
certifying in writing to the Committees on Appropriations of the House 
of Representatives and the Senate that adequate domestic supplies are 
not available to meet Department of Defense requirements on a timely 
basis and that such an acquisition must be made in order to acquire 
capability for national security purposes: Provided further, That these 
restrictions shall not apply to contracts which are in being as of the 
date of enactment of this Act.
    Sec. 8040. For the purposes of this Act, the term ``congressional 
defense committees'' means the National Security Committee of the House 
of Representatives, the Armed Services Committee of the Senate, the 
Subcommittee on Defense of the Committee on Appropriations of the 
Senate, and the Subcommittee on National Security of the Committee on 
Appropriations of the House of Representatives.
    Sec. 8041. During the current fiscal year, the Department of 
Defense may acquire the modification, depot maintenance and repair of 
aircraft, vehicles and vessels as well as the production of components 
and other Defense-related articles, through competition between 
Department of Defense depot maintenance activities and private firms: 
Provided, That the Senior Acquisition Executive of the military 
department or defense agency concerned, with power of delegation, shall 
certify that successful bids include comparable estimates of all direct 
and indirect costs for both public and private bids: Provided further, 
That Office of Management and Budget Circular A-76 shall not apply to 
competitions conducted under this section.
    Sec. 8042. The total amounts appropriated in titles II, III, and IV 
of this Act are hereby reduced by $300,000,000 to reflect savings from 
the use of advisory and assistance services by the Department of 
Defense: Provided, That the savings shall be applied to the following 
titles in the following amounts:
            Title II, Operation and Maintenance, $112,000,000;
            Title III, Procurement, $62,000,000; and
            Title IV, Research, Development, Test and Evaluation, 
        $126,000,000:
Provided further, That the savings specified shall be applied only to 
funds budgeted to purchase advisory and assistance services: Provided 
further, That the savings shall be applied on a pro-rata basis to each 
program, project and activity which included budget funds for advisory 
and assistance services.
    Sec. 8043. Appropriations contained in this Act that remain 
available at the end of the current fiscal year as a result of energy 
cost savings realized by the Department of Defense shall remain 
available for obligation for the next fiscal year to the extent, and 
for the purposes, provided in section 2865 of title 10, United States 
Code.
    Sec. 8044. To provide funds for additional required aviation depot 
level repairables in the Air Force Operation and Maintenance account, 
the amounts appropriated elsewhere in this Act for the following 
appropriation accounts are reduced by 1.0 per centum: Aircraft 
Procurement, Air Force; Missile Procurement, Air Force; Procurement of 
Ammunition, Air Force; Other Procurement, Air Force; and Research, 
Development, Test and Evaluation, Air Force. These reductions shall be 
applied on a pro-rata basis to each line item, program element, 
program, project, subproject, and activity within each appropriation 
account.

                     (including transfer of funds)

    Sec. 8045. Amounts deposited during the current fiscal year to the 
special account established under 40 U.S.C. 485(h)(2) and to the 
special account established under 10 U.S.C. 2667(d)(1) are appropriated 
and shall be available until transferred by the Secretary of Defense to 
current applicable appropriations or funds of the Department of Defense 
under the terms and conditions specified by 40 U.S.C. 485(h)(2) (A) and 
(B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be available 
for the same time period and the same purposes as the appropriation to 
which transferred.
    Sec. 8046. During the current fiscal year, appropriations available 
to the Department of Defense may be used to reimburse a member of a 
reserve component of the Armed Forces who is not otherwise entitled to 
travel and transportation allowances and who occupies transient 
government housing while performing active duty for training or 
inactive duty training: Provided, That such members may be provided 
lodging in kind if transient government quarters are unavailable as if 
the member was entitled to such allowances under subsection (a) of 
section 404 of title 37, United States Code: Provided further, That if 
lodging in kind is provided, any authorized service charge or cost of 
such lodging may be paid directly from funds appropriated for operation 
and maintenance of the reserve component of the member concerned.
    Sec. 8047. The President shall include with each budget for a 
fiscal year submitted to the Congress under section 1105 of title 31, 
United States Code, materials that shall identify clearly and 
separately the amounts requested in the budget for appropriation for 
that fiscal year for salaries and expenses related to administrative 
activities of the Department of Defense, the military departments, and 
the Defense Agencies.
    Sec. 8048. To provide funds for additional required aviation depot 
level repairables in the Navy Operation and Maintenance account, the 
amounts appropriated elsewhere in this Act for the following 
appropriation accounts are reduced by 1.1 per centum: Aircraft 
Procurement, Navy; Weapons Procurement, Navy; Procurement of 
Ammunition, Navy and Marine Corps; Shipbuilding and Conversion, Navy; 
Other Procurement, Navy; Procurement, Marine Corps; and Research, 
Development, Test and Evaluation, Navy. These reductions shall be 
applied on a pro-rata basis to each line item, program element, 
program, project, subproject, and activity within each appropriation 
account.
    Sec. 8049. During the current fiscal year, amounts contained in the 
Department of Defense Overseas Military Facility Investment Recovery 
Account established by section 2921(c)(1) of the National Defense 
Authorization Act of 1991 (Public Law 101-510; 10 U.S.C. 2687 note) 
shall be available until expended for the payments specified by section 
2921(c)(2) of that Act.
    Sec. 8050. Of the funds appropriated or otherwise made available by 
this Act, not more than $119,200,000 shall be available for payment of 
the operating costs of NATO Headquarters: Provided, That the Secretary 
of Defense may waive this section for Department of Defense support 
provided to NATO forces in and around the former Yugoslavia.
    Sec. 8051. During the current fiscal year, appropriations which are 
available to the Department of Defense for operation and maintenance 
may be used to purchase items having an investment item unit cost of 
not more than $100,000.
    Sec. 8052. (a) During the current fiscal year, none of the 
appropriations or funds available to the Department of Defense Working 
Capital Funds shall be used for the purchase of an investment item for 
the purpose of acquiring a new inventory item for sale or anticipated 
sale during the current fiscal year or a subsequent fiscal year to 
customers of the Department of Defense Working Capital Funds if such an 
item would not have been chargeable to the Department of Defense 
Working Capital Funds during fiscal year 1994 and if the purchase of 
such an investment item would be chargeable during the current fiscal 
year to appropriations made to the Department of Defense for 
procurement.
    (b) The fiscal year 1999 budget request for the Department of 
Defense as well as all justification material and other documentation 
supporting the fiscal year 1999 Department of Defense budget shall be 
prepared and submitted to the Congress on the basis that any equipment 
which was classified as an end item and funded in a procurement 
appropriation contained in this Act shall be budgeted for in a proposed 
fiscal year 1999 procurement appropriation and not in the supply 
management business area or any other area or category of the 
Department of Defense Working Capital Funds.
    Sec. 8053. None of the funds provided in this Act shall be 
available for use by a Military Department to modify an aircraft, 
weapon, ship or other item of equipment, that the Military Department 
concerned plans to retire or otherwise dispose of within five years 
after completion of the modification: Provided, That this prohibition 
shall not apply to safety modifications: Provided further, That this 
prohibition may be waived by the Secretary of a Military Department if 
the Secretary determines it is in the best national security interest 
of the United States to provide such waiver and so notifies the 
congressional defense committees in writing.
    Sec. 8054. None of the funds appropriated by this Act for programs 
of the Central Intelligence Agency shall remain available for 
obligation beyond the current fiscal year, except for funds 
appropriated for the Reserve for Contingencies, which shall remain 
available until September 30, 1999.
    Sec. 8055. Notwithstanding any other provision of law, funds made 
available in this Act for the Defense Intelligence Agency may be used 
for the design, development, and deployment of General Defense 
Intelligence Program intelligence communications and intelligence 
information systems for the Services, the Unified and Specified 
Commands, and the component commands.
    Sec. 8056. Of the funds appropriated by the Department of Defense 
under the heading ``Operation and Maintenance, Defense-Wide'', not less 
than $8,000,000 shall be made available only for the mitigation of 
environmental impacts, including training and technical assistance to 
tribes, related administrative support, the gathering of information, 
documenting of environmental damage, and developing a system for 
prioritization of mitigation, on Indian lands resulting from Department 
of Defense activities.
    Sec. 8057. Amounts collected for the use of the facilities of the 
National Science Center for Communications and Electronics during the 
current fiscal year pursuant to section 1459(g) of the Department of 
Defense Authorization Act, 1986, and deposited to the special account 
established under subsection 1459(g)(2) of that Act are appropriated 
and shall be available until expended for the operation and maintenance 
of the Center as provided for in subsection 1459(g)(2).
    Sec. 8058. None of the funds appropriated in this Act may be used 
to fill the commander's position at any military medical facility with 
a health care professional unless the prospective candidate can 
demonstrate professional administrative skills.
    Sec. 8059. (a) None of the funds appropriated in this Act may be 
expended by an entity of the Department of Defense unless the entity, 
in expending the funds, complies with the Buy American Act. For 
purposes of this subsection, the term ``Buy American Act'' means title 
III of the Act entitled ``An Act making appropriations for the Treasury 
and Post Office Departments for the fiscal year ending June 30, 1934, 
and for other purposes'', approved March 3, 1933 (41 U.S.C. 10a et 
seq.).
    (b) If the Secretary of Defense determines that a person has been 
convicted of intentionally affixing a label bearing a ``Made in 
America'' inscription to any product sold in or shipped to the United 
States that is not made in America, the Secretary shall determine, in 
accordance with section 2410f of title 10, United States Code, whether 
the person should be debarred from contracting with the Department of 
Defense.
    (c) In the case of any equipment or products purchased with 
appropriations provided under this Act, it is the sense of the Congress 
that any entity of the Department of Defense, in expending the 
appropriation, purchase only American-made equipment and products, 
provided that American-made equipment and products are cost-
competitive, quality-competitive, and available in a timely fashion.
    Sec. 8060. None of the funds appropriated by this Act shall be 
available for a contract for studies, analysis, or consulting services 
entered into without competition on the basis of an unsolicited 
proposal unless the head of the activity responsible for the 
procurement determines--
            (1) as a result of thorough technical evaluation, only one 
        source is found fully qualified to perform the proposed work, 
        or
            (2) the purpose of the contract is to explore an 
        unsolicited proposal which offers significant scientific or 
        technological promise, represents the product of original 
        thinking, and was submitted in confidence by one source, or
            (3) the purpose of the contract is to take advantage of 
        unique and significant industrial accomplishment by a specific 
        concern, or to insure that a new product or idea of a specific 
        concern is given financial support:
Provided, That this limitation shall not apply to contracts in an 
amount of less than $25,000, contracts related to improvements of 
equipment that is in development or production, or contracts as to 
which a civilian official of the Department of Defense, who has been 
confirmed by the Senate, determines that the award of such contract is 
in the interest of the national defense.
    Sec. 8061. Funds appropriated by this Act for intelligence 
activities are deemed to be specifically authorized by the Congress for 
purposes of section 504 of the National Security Act of 1947 (50 U.S.C. 
414).
    Sec. 8062. None of the funds available to the Department of Defense 
in this Act may be used to establish additional field operating 
agencies of any element of the Department during fiscal year 1998, 
except for field operating agencies funded within the National Foreign 
Intelligence Program: Provided, That the Secretary of Defense may waive 
this section by certifying to the House and Senate Committees on 
Appropriations that the creation of such field operating agencies will 
reduce either the personnel and/or financial requirements of the 
Department of Defense.
    Sec. 8063. Notwithstanding section 303 of Public Law 96-487 or any 
other provision of law, the Secretary of the Navy is authorized to 
lease real and personal property at Naval Air Facility, Adak, Alaska, 
pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other 
purposes.

                             (rescissions)

    Sec. 8064. Of the funds provided in Department of Defense 
Appropriations Acts, the following funds are hereby rescinded from the 
following accounts in the specified amounts:
            ``Aircraft Procurement, Navy, 1997/1999'', $40,000,000;
            ``Research, Development, Test and Evaluation, Defense-Wide, 
        1997/1998'', $29,700,000;
            ``Research, Development, Test and Evaluation, Air Force, 
        1997/1998'', $25,000,000.
    Sec. 8065. None of the funds available in this Act may be used to 
reduce the authorized positions for military (civilian) technicians of 
the Army National Guard, the Air National Guard, Army Reserve and Air 
Force Reserve for the purpose of applying any administratively imposed 
civilian personnel ceiling, freeze, or reduction on military (civilian) 
technicians, unless such reductions are a direct result of a reduction 
in military force structure.
    Sec. 8066. None of the funds appropriated or otherwise made 
available in this Act may be obligated or expended for assistance to 
the Democratic People's Republic of North Korea unless specifically 
appropriated for that purpose.
    Sec. 8067. During the current fiscal year, funds appropriated in 
this Act are available to compensate members of the National Guard for 
duty performed pursuant to a plan submitted by a Governor of a State 
and approved by the Secretary of Defense under section 112 of title 32, 
United States Code: Provided, That during the performance of such duty, 
the members of the National Guard shall be under State command and 
control: Provided further, That such duty shall be treated as full-time 
National Guard duty for purposes of sections 12602 (a)(2) and (b)(2) of 
title 10, United States Code.
    Sec. 8068. Funds appropriated in this Act for operation and 
maintenance of the Military Departments, Unified and Specified Commands 
and Defense Agencies shall be available for reimbursement of pay, 
allowances and other expenses which would otherwise be incurred against 
appropriations for the National Guard and Reserve when members of the 
National Guard and Reserve provide intelligence support to Unified 
Commands, Defense Agencies and Joint Intelligence Activities, including 
the activities and programs included within the General Defense 
Intelligence Program and the Consolidated Cryptologic Program: 
Provided, That nothing in this section authorizes deviation from 
established Reserve and National Guard personnel and training 
procedures.
    Sec. 8069. During the current fiscal year, none of the funds 
appropriated in this Act may be used to reduce the civilian medical and 
medical support personnel assigned to military treatment facilities 
below the September 30, 1996 level: Provided, That the Service Surgeons 
General may waive this section by certifying to the congressional 
defense committees that the beneficiary population is declining in some 
catchment areas and civilian strength reductions may be consistent with 
responsible resource stewardship and capitation-based budgeting.
    Sec. 8070. All refunds or other amounts collected in the 
administration of the Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS) shall be credited to current year 
appropriations.

                     (including transfer of funds)

    Sec. 8071. None of the funds appropriated in this Act may be 
transferred to or obligated from the Pentagon Reservation Maintenance 
Revolving Fund, unless the Secretary of Defense certifies that the 
total cost for the planning, design, construction and installation of 
equipment for the renovation of the Pentagon Reservation will not 
exceed $1,118,000,000.

                          (transfer of funds)

    Sec. 8072. Appropriations available in this Act under the heading 
``Operation and Maintenance, Defense-Wide'' for increasing energy and 
water efficiency in Federal buildings may, during their period of 
availability, be transferred to other appropriations or funds of the 
Department of Defense for projects related to increasing energy and 
water efficiency, to be merged with and to be available for the same 
general purposes, and for the same time period, as the appropriation or 
fund to which transferred.
    Sec. 8073. None of the funds appropriated by this Act may be used 
for the procurement of ball and roller bearings other than those 
produced by a domestic source and of domestic origin: Provided, That 
the Secretary of the military department responsible for such 
procurement may waive this restriction on a case-by-case basis by 
certifying in writing to the Committees on Appropriations of the House 
of Representatives and the Senate, that adequate domestic supplies are 
not available to meet Department of Defense requirements on a timely 
basis and that such an acquisition must be made in order to acquire 
capability for national security purposes.
    Sec. 8074. Notwithstanding any other provision of law, funds 
available to the Department of Defense shall be made available to 
provide transportation of medical supplies and equipment, on a 
nonreimbursable basis, to American Samoa: Provided, That 
notwithstanding any other provision of law, funds available to the 
Department of Defense shall be made available to provide transportation 
of medical supplies and equipment, on a nonreimbursable basis, to the 
Indian Health Service when it is in conjunction with a civil-military 
project.
    Sec. 8075. None of the funds in this Act may be used to purchase 
any supercomputer which is not manufactured in the United States, 
unless the Secretary of Defense certifies to the congressional defense 
committees that such an acquisition must be made in order to acquire 
capability for national security purposes that is not available from 
United States manufacturers.

                          (transfer of funds)

    Sec. 8076. In addition to amounts appropriated or otherwise made 
available by this Act, $300,000,000 is hereby appropriated to the 
Department of Defense and shall be available only for transfer to the 
United States Coast Guard.
    Sec. 8077. Notwithstanding any other provision of law, each 
contract awarded by the Department of Defense during the current fiscal 
year for construction or service performed in whole or in part in a 
State which is not contiguous with another State and has an 
unemployment rate in excess of the national average rate of 
unemployment as determined by the Secretary of Labor, shall include a 
provision requiring the contractor to employ, for the purpose of 
performing that portion of the contract in such State that is not 
contiguous with another State, individuals who are residents of such 
State and who, in the case of any craft or trade, possess or would be 
able to acquire promptly the necessary skills: Provided, That the 
Secretary of Defense may waive the requirements of this section, on a 
case-by-case basis, in the interest of national security.
    Sec. 8078. (a) The Secretary of Defense shall submit, on a 
quarterly basis, a report to the congressional defense committees, the 
Committee on International Relations of the House of Representatives 
and the Committee on Foreign Relations of the Senate setting forth all 
costs (including incremental costs) incurred by the Department of 
Defense during the preceding quarter in implementing or supporting 
resolutions of the United Nations Security Council, including any such 
resolution calling for international sanctions, international 
peacekeeping operations, and humanitarian missions undertaken by the 
Department of Defense. The quarterly report shall include an aggregate 
of all such Department of Defense costs by operation or mission.
    (b) The Secretary of Defense shall detail in the quarterly reports 
all efforts made to seek credit against past United Nations 
expenditures and all efforts made to seek compensation from the United 
Nations for costs incurred by the Department of Defense in implementing 
and supporting United Nations activities.
    Sec. 8079. (a) Limitation on Transfer of Defense Articles and 
Services.--Notwithstanding any other provision of law, none of the 
funds available to the Department of Defense for the current fiscal 
year may be obligated or expended to transfer to another nation or an 
international organization any defense articles or services (other than 
intelligence services) for use in the activities described in 
subsection (b) unless the congressional defense committees, the 
Committee on International Relations of the House of Representatives, 
and the Committee on Foreign Relations of the Senate are notified 15 
days in advance of such transfer.
    (b) Covered Activities.--(1) This section applies to--
            (A) any international peacekeeping or peace-enforcement 
        operation under the authority of chapter VI or chapter VII of 
        the United Nations Charter under the authority of a United 
        Nations Security Council resolution; and
            (B) any other international peacekeeping, peace-
        enforcement, or humanitarian assistance operation.
    (c) Required Notice.--A notice under subsection (a) shall include 
the following:
            (1) A description of the equipment, supplies, or services 
        to be transferred.
            (2) A statement of the value of the equipment, supplies, or 
        services to be transferred.
            (3) In the case of a proposed transfer of equipment or 
        supplies--
                    (A) a statement of whether the inventory 
                requirements of all elements of the Armed Forces 
                (including the reserve components) for the type of 
                equipment or supplies to be transferred have been met; 
                and
                    (B) a statement of whether the items proposed to be 
                transferred will have to be replaced and, if so, how 
                the President proposes to provide funds for such 
                replacement.
    Sec. 8080. To the extent authorized by subchapter VI of Chapter 148 
of title 10, United States Code, the Secretary of Defense shall issue 
loan guarantees in support of U.S. defense exports not otherwise 
provided for: Provided, That the total contingent liability of the 
United States for guarantees issued under the authority of this section 
may not exceed $15,000,000,000: Provided further, That the exposure 
fees charged and collected by the Secretary for each guarantee, shall 
be paid by the country involved and shall not be financed as part of a 
loan guaranteed by the United States: Provided further, That the 
Secretary shall provide quarterly reports to the Committees on 
Appropriations, Armed Services and Foreign Relations of the Senate and 
the Committees on Appropriations, National Security and International 
Relations in the House of Representatives on the implementation of this 
program: Provided further, That amounts charged for administrative fees 
and deposited to the special account provided for under section 
2540c(d) of title 10, shall be available for paying the costs of 
administrative expenses of the Department of Defense that are 
attributable to the loan guarantee program under subchapter VI of 
Chapter 148 of title 10.
    Sec. 8081. None of the funds available to the Department of Defense 
shall be obligated or expended to make a financial contribution to the 
United Nations for the cost of an United Nations peacekeeping activity 
(whether pursuant to assessment or a voluntary contribution) or for 
payment of any United States arrearage to the United Nations.
    Sec. 8082. None of the funds available to the Department of Defense 
under this Act shall be obligated or expended to pay a contractor under 
a contract with the Department of Defense for costs of any amount paid 
by the contractor to an employee when--
            (1) such costs are for a bonus or otherwise in excess of 
        the normal salary paid by the contractor to the employee; and
            (2) such bonus is part of restructuring costs associated 
        with a business combination.
    Sec. 8083. (a) None of the funds appropriated or otherwise made 
available in this Act may be used to transport or provide for the 
transportation of chemical munitions or agents to the Johnston Atoll 
for the purpose of storing or demilitarizing such munitions or agents.
    (b) The prohibition in subsection (a) shall not apply to any 
obsolete World War II chemical munition or agent of the United States 
found in the World War II Pacific Theater of Operations.
    (c) The President may suspend the application of subsection (a) 
during a period of war in which the United States is a party.
    Sec. 8084. None of the funds provided in title II of this Act for 
``Former Soviet Union Threat Reduction'' may be obligated or expended 
to finance housing for any individual who was a member of the military 
forces of the Soviet Union or for any individual who is or was a member 
of the military forces of the Russian Federation.
    Sec. 8085. During the current fiscal year, no more than $15,000,000 
of appropriations made in this Act under the heading ``Operation and 
Maintenance, Defense-Wide'' may be transferred to appropriations 
available for the pay of military personnel, to be merged with, and to 
be available for the same time period as the appropriations to which 
transferred, to be used in support of such personnel in connection with 
support and services for eligible organizations and activities outside 
the Department of Defense pursuant to section 2012 of title 10, United 
States Code.
    Sec. 8086. For purposes of section 1553(b) of title 31, United 
States Code, any subdivision of appropriations made in this Act under 
the heading ``Shipbuilding and Conversion, Navy'' shall be considered 
to be for the same purpose as any subdivision under the heading 
``Shipbuilding and Conversion, Navy'' appropriations in any prior year, 
and the one per centum limitation shall apply to the total amount of 
the appropriation.
    Sec. 8087. Notwithstanding 31 U.S.C. 1552(a), not more than 
$14,000,000 appropriated under the heading ``Aircraft Procurement, Air 
Force'' in Public Law 102-396 which was available and obligated for the 
B-2 Aircraft Program shall remain available for expenditure and for 
adjusting obligations for such program until September 30, 2003.
    Sec. 8088. During the current fiscal year, in the case of an 
appropriation account of the Department of Defense for which the period 
of availability for obligation has expired or which has closed under 
the provisions of section 1552 of title 31, United States Code, and 
which has a negative unliquidated or unexpended balance, an obligation 
or an adjustment of an obligation may be charged to any current 
appropriation account for the same purpose as the expired or closed 
account if--
            (1) the obligation would have been properly chargeable 
        (except as to amount) to the expired or closed account before 
        the end of the period of availability or closing of that 
        account;
            (2) the obligation is not otherwise properly chargeable to 
        any current appropriation account of the Department of Defense; 
        and
            (3) in the case of an expired account, the obligation is 
        not chargeable to a current appropriation of the Department of 
        Defense under the provisions of section 1405(b)(8) of the 
        National Defense Authorization Act for Fiscal Year 1991, Public 
        Law 101-510, as amended (31 U.S.C. 1551 note): Provided, That 
        in the case of an expired account, if subsequent review or 
        investigation discloses that there was not in fact a negative 
        unliquidated or unexpended balance in the account, any charge 
        to a current account under the authority of this section shall 
        be reversed and recorded against the expired account: Provided 
        further, That the total amount charged to a current 
        appropriation under this section may not exceed an amount equal 
        to one per centum of the total appropriation for that account.

                          (transfer of funds)

    Sec. 8089. Upon enactment of this Act, the Secretary of Defense 
shall make the following transfers of funds: Provided, That the amounts 
transferred shall be available for the same purposes as the 
appropriations to which transferred, and for the same time period as 
the appropriation from which transferred: Provided further, That the 
amounts shall be transferred between the following appropriations in 
the amount specified:
            From:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy 1989/2000'':
                            SSN-688 attack submarine program, 
                        $3,000,000;
                            DDG-51 destroyer program, $1,500,000;
                            LHD-1 amphibious assault ship program, 
                        $8,000,000;
                            T-AO fleet oiler program, $3,453,000;
                            AOE combat support ship program, 
                        $3,600,000;
                            For craft, outfitting, and post delivery, 
                        $2,019,000;
            To:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy 1989/2000'':
                            SSN-21 attack submarine program, $21,572;
            From:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy 1991/2001'':
                            DDG-51 destroyer program, $1,060,000;
                            LHD-1 amphibious assault ship program, 
                        $1,600,000;
                            LSD-41 cargo variant ship program, 
                        $2,666,000;
                            AOE combat support ship program, 
                        $7,307,000;
                            For craft, outfitting, and post delivery, 
                        $12,000,000;
            To:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy 1991/2001'':
                            SSN-21 attack submarine program, 
                        $24,633,000;
            From:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy 1996/2000'':
                            LHD-1 amphibious assault ship program, 
                        $10,654,000;
            To:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy 1996/2000'':
                            SSN-21 attack submarine program, 
                        $6,907,000;
                            DDG-51 destroyer program, $3,747,000;
            From:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy 1994/1998'':
                            LHD-1 amphibious assault ship program, 
                        $400,000;
                            DDG-51 destroyer program, $1,054,000;
            From:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy 1995/1999'':
                            For craft, outfitting, and post delivery, 
                        conversions, and first destination 
                        transportation, $715,000;
            From:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy 1996/2000'':
                            LHD-1 amphibious assault ship program, 
                        $12,451,000;
                            LPD amphibious transport dock ship program, 
                        $5,062,000;
                            For craft, outfitting, and post delivery, 
                        conversions, and first destination 
                        transportation, $878,000;
            From:
    Under the heading, ``Shipbuilding and Conversion, Navy 1997/2001'':
                            For craft, outfitting, and post delivery, 
                        conversions, and first destination 
                        transportation, $3,600,000;
            To:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy 1997/2001'':
                            DDG-51 destroyer program, $24,160,000.
    Sec. 8090. None of the funds available to the Department of Defense 
under this Act may be obligated or expended to reimburse a defense 
contractor for restructuring costs associated with a business 
combination of the defense contractor that occurs after the date of 
enactment of this Act unless:
            (1) the auditable savings for the Department of Defense 
        resulting from the restructuring will exceed the costs allowed 
        by a factor of at least two to one, or
            (2) the savings for the Department of Defense resulting 
        from the restructuring will exceed the costs allowed and the 
        Secretary of Defense determines that the business combination 
        will result in the preservation of a critical capability that 
        might otherwise be lost to the Department, and
            (3) the report required by Section 818(e) of Public Law 
        103-337 to be submitted to Congress in 1996 is submitted.
    Sec. 8091. Notwithstanding any other provision of law, none of the 
funds appropriated in this Act may be used to purchase, install, 
replace, or otherwise repair any lock on a safe or security container 
which protects information critical to national security or any other 
classified materials and which has not been certified as passing the 
security lock specifications contained in regulation FF-L-2740 dated 
October 12, 1989, and has not passed all testing criteria and 
procedures established through February 28, 1992: Provided, That the 
Director of Central Intelligence may waive this provision, on a case-
by-case basis only, upon certification that the above cited locks are 
not adequate for the protection of sensitive intelligence information.
    Sec. 8092. Funds appropriated in title II of this Act for 
supervision and administration costs for facilities maintenance and 
repair, minor construction, or design projects may be obligated at the 
time the reimbursable order is accepted by the performing activity: 
Provided, That for the purpose of this section, supervision and 
administration costs includes all in-house Government cost.
    Sec. 8093. The Secretary of Defense may waive reimbursement of the 
cost of conferences, seminars, courses of instruction, or similar 
educational activities of the Asia-Pacific Center for Security Studies 
for military officers and civilian officials of foreign nations if the 
Secretary determines that attendance by such personnel, without 
reimbursement, is in the national security interest of the United 
States: Provided, That costs for which reimbursement is waived pursuant 
to this subsection shall be paid from appropriations available for the 
Asia-Pacific Center.
    Sec. 8094. (a) Notwithstanding any other provision of law, the 
Chief of the National Guard Bureau may permit the use of equipment of 
the National Guard Distance Learning Project by any person or entity on 
a space-available, reimbursable basis. The Chief of the National Guard 
Bureau shall establish the amount of reimbursement for such use on a 
case-by-case basis.
    (b) Amounts collected under subsection (a) shall be credited to 
funds available for the National Guard Distance Learning Project and be 
available to defray the costs associated with the use of equipment of 
the project under that subsection. Such funds shall be available for 
such purposes without fiscal year limitation.
    Sec. 8095. Notwithstanding 31 U.S.C. 3902, during the current 
fiscal year, interest penalties may be paid by the Department of 
Defense from funds financing the operation of the military department 
or defense agency with which the invoice or contract payment is 
associated.
    Sec. 8096. The Secretary of the Army may exchange or sell one Army 
C-20 aircraft and may apply the exchange allowance or sale proceeds in 
whole or in part payment for the acquisition of one C-37 aircraft: 
Provided, That in addition to such exchange allowance or sale proceeds, 
of the amount appropriated for fiscal year 1998 for Aircraft 
Procurement, Air Force, not more than $6,000,000 shall be made 
available for acquisition of the C-37 for the United States Army: 
Provided further, That in addition to such exchange allowance or sale 
proceeds, of the amount appropriated for fiscal year 1997 for Aircraft 
Procurement, Air Force, not more than $27,100,000 shall be made 
available for acquisition of the C-37 for the United States Army.
    Sec. 8097. From funds made available by this Act for the Maritime 
Technology Program up to $250,000 shall be made available to assist 
with a pilot project that will facilitate the transfer of commercial 
cruise ship shipbuilding technology and expertise to U.S. yards, 
utilize the experience and expertise of existing U.S.-flag cruise ship 
operators, and enable the operation of a U.S.-flag foreign-built cruise 
ship, and two newly-constructed U.S.-flag cruise ships: Provided, That 
a person (including a related person with respect to that person) who, 
within 18 months after the date of enactment, enters into a binding 
contract for construction in the United States of two cruise ships, 
which contract shall provide for the construction of two cruise ships 
of equal or greater size than the cruise ship being operated by such 
person on the date of enactment and shall require the delivery of the 
first cruise ship no later than January 1, 2005 and the second cruise 
ship no later than January 1, 2008, may document with a coastwise 
endorsement a foreign-built cruise ship otherwise in compliance with 46 
U.S.C. Sections 289, 883 and 12106 until such date which is twenty-four 
(24) months after the delivery of the second cruise ship or any 
subsequently delivered cruise ship: Provided further, That a person 
(including a related person with respect to that person) within the 
meaning of 46 U.S.C. Section 801 may not operate a U.S.-flag foreign-
built cruise ship, or any other cruise ship, in coastwise trade between 
or among the islands of Hawaii, upon execution of the contract referred 
to in this section and continuing throughout the life expectancy (as 
that term is used in 46 U.S.C. App 1125) of a newly constructed U.S. 
flag cruise ship referred to in this section, unless the cruise ship is 
operated by a person (including a related person with respect to that 
person) that is operating a cruise ship in coastwise trade between or 
among the islands of Hawaii on the date of enactment, except if any 
cruise ship constructed pursuant to this section operates in regular 
service other than between or among the islands of Hawaii: Provided 
further, That for purposes of this section the term ``cruise ship'' 
means a vessel that is at least 10,000 gross tons (as measured under 
Chapter 143 of Title 46, United States Code) and has berth or stateroom 
accommodations for at least 275 passengers: Provided further, That for 
purposes of this section, unless otherwise defined in this section, the 
term ``person'' means a corporation, partnership or association the 
controlling interest of which is owned by citizens of the United States 
within the meaning of 46 U.S.C. Section 802(b): Provided further, That 
for purposes of this section the term ``related person'' means with 
respect to a person (i) a holding company, subsidiary, affiliate or 
association of the person and (ii) an officer, director, or agent of 
the person or of an entity referred to in (i).
    Sec. 8098. Notwithstanding any other provision of law, the 
Secretary of Defense shall obligate the funds provided for University 
Research Initiatives in the Department of Defense Appropriations Act, 
1997 (titles I through VIII under section 101(b) of Public Law 104-208) 
for the projects and in the amounts provided for in House Report 104-
863 of the House of Representatives, 104th Congress, second session.
    This Act may be cited as the ``Department of Defense Appropriations 
Act, 1998''.
                                                       Calendar No. 108

105th CONGRESS

  1st Session

                                S. 1005

                          [Report No. 105-45]

_______________________________________________________________________

                                 A BILL

Making appropriations for the Department of Defense for the fiscal year 
           ending September 30, 1998, and for other purposes.

_______________________________________________________________________

                             July 10, 1997

                 Read twice and placed on the calendar